CURRENT INTELLIGENCE BULLETIN - 1957/06/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03148918
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: June 20, 1957

r757,,y/IMAed for tii Release:
2019/12/04
CURRENT
INTELLIGENCE
BULLETIN
CO3148918
;1 7 1 71 7rS(d4
3.5(c) r
3.3(h)(2)
/
04/
/47
/?//
id
r/.
r VA/
20 June
1957
Copy No.
nOCUMEN-c NC. 4.z.
NO CHANGE N
112 DECT.',LASTE9
CHANGEtY1-0: S
NEXT EVIEVJ CATE:
AUTH: ' 70-2 at
DATE
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
Approved for Release: 2019/12/04 C03148918
Approved for Release: 2019/12/04 C03148918
Auk T '
IIIMINTOTIOSHINP 11110411�44
Approved for Release: 2019/12/04 C03148918
Approved for Release: 2019/12/04 C03148918
I VI" JLA-ti:L 1
,11111a,
CONTENTS
1. SUEZ CANAL COMPANY DIRECTOR REPORTEDLY
SEEKS AN "UNDERSTANDING" WITH EGYPT
(page 3).
2. LEBANESE ELECTION PROBLEMS
(page 4).
3. INDONESIAN AIR FORCE REPORTEDLY CONTRACTS FOR
SOVIET AIRCRAFT (page 5).
' li40 LOCAL DJAKARTA ELECTIONS SCHEDULED FOR 22 JUNE
(page 6).
. KHRUSHCHEV HINTS USSR MAY RETURN SOUTHERN
ICUR1LS TO JAPAN (page 7).
20 June 57
Current Intelligence Bulletin Page 2
Approved for Release: 2019/12/04 C03148918
Approved for Release: 2019/12/04 C031148918
vi IJLJ1Ud 1
I. SUEZ CANAL COMPANY DIRECTOR REPORTEDLY SEEKS
AN "UNDERSTANDING" WITH EGYPT
The French director general of the Suez
Canal Company, Jacques Georges-Picot,
is prepared to reach an "understanding"
with Egypt in hope of obtaining compensa-
tion for Egyptian nationalization of the canal,
He is advancing
proposals which include increasing canal transit tolls.
Comment
Recent reports indicate that the Egyptians,
despite public denials, have been interested
in beginning negotiations with the Suez Canal Company. The
French government's decision on 13 May to permit French ships
to transit the canal opened the way for the canal company to
reach agreement with Cairo.
In the recent Anglo-Egyptian financial talks
in Rome, Britain insisted on Egyptian negotiations with the Suez
Canal Company as one of its preconditions for releasing blocked
Egyptian sterling balances. These talks are expected to resume,
and, in deference to its own shipping interests, London will prob-
ably insist that Cairo compensate the company without raising
tolls.
UN Secretary General Hammarskjold is al-
ready trying to arrange a toll surcharge for repaying canal
clearance costs. He has written to Cairo urging consideration
of the question of compensation to the company, but the reply
was noncommittal.
20 June 57
Current Intelligence Bulletin
TOP SECRET
Approved for Release: 2019/12/04 C03148918
Page 3
Approved for Release: 2019/12/04 C03148918
2. LEBANESE ELECTION PROBLEMS
Comment on:
The success of pro-Western premier
lh in bringing about the election of
his candidates in the first half of the
parliamentary elections has created a
tense political situation in Lebanon. Two cabinet ministers
recently appointed to hear from the apposition on election
procedures resigned on 17 June, stating that while "the con-
duct of elections from an administrative point of view was
correct, the general atmosphere prevalent during the elec-
tions does not encourage us to continue our missiono" The
election developments have apparently alienated the chief ciE
staff, General Chehab, w'ao feels that the opposition must be
allowed to win sufficient seats in parliament to give thi..irk
voice in affairs.
An additional problem has been create.,:.
by Premier Solh's reported threat to resign if President Gila-
moun and General Chehab, who is in direct charge of main-
taining security during the elections, do not allow his son,
Abdur Rahman, to run for parliament,
20 June 57
Current Intelligence Bulletin Page 4
Approved for Release: 2019/12/04 C03148918
Approved for Release: 2019/12/04 C03148918
1,t11-.1.1. TA' 1LFL,tLNI 1.1114.
MININF
3. INDONESIAN AIR FORCE REPORTEDLY CONTRACTS
FOR SOVIET AIRCRAFT
The Indonesian air force has contracted
with the Soviet Union for several jet
fighters and twin-enaine bombers. ac-
These aircraft,
/will be accompanied
by Soviet technicians and pilots who will remain in Indonesia
for maintenance and instruction purposes. In addition, eight
technicians are scheduled to arrive in Indonesia soon for per-
manent assignment to care for President Sukarno's IL-14.
all of the planes
will be stationed at an airfield near Makassar, which has al-
ready been expanded and modernized to accommodate them.
Comment Indonesia has already ordered approximately
500 Soviet jeeps, some of which have been
delivered, and reportedly has an option to purchase a total of
4,000 jeeps. The purchase of the jeeps--for the armed forces--
was undertaken independently of the $100,000,000 Soviet tech-
nical aid agreement, and any contract for aircraft would prob-
ably also be a separate arrangement.
The Mandai airfield near Makassar is one
of the best military airfields in Indonesia and probably is the
only airport other than the busy field near Djakarta capable of
handling jets. The Indonesian air force is loyal to Djakarta.
20 June 57
Current Intelligence Bulletin Page 5
-CONFIDENTIAL
Approved for Release: 2019/12/04 C03148918
Approved for Release: 2019/12/04 C03148918
C,r Cif/ T1' /ILP/La I. /L11.1_A
4. LOCAL DJAKARTA ELECTIONS SCHEDULED FOR
22 JUNE
Comment on:
Election for Djakarta's 45-seat city
council will be held on 22 June, the
first of a series of nationwide pro-
vincial elections scheduled for the
remainder of 1957 and early 1958.
The Communists have been working
hard to improve their showing in
Djakarta over the 1955 national elec-
tions when they finished a poor fourth behind the Masjumi,
National Party and Nandlatul Ulama. They reportedly have
access to large sums of money, and their campaign un-
doubtedly has received additional impetus from President
Sukarno's encouragement of extensive Communist activity
in support of his concept of "guided democracy."
The outcome in Djakarta will probably
influence later elections, particularly those in Central and
East Java.
20 June 57
Current Intelligence Bulletin Page 6
CONFIDENTIAL
Approved for Release: 2019/12/04 C03148918
Approved for Release: 2019/12/04 C03148918
5. KHRUSHCHEV HINTS USSR MAY RETURN SOUTHERN
KUR,ILS TO JAPAN
Comment on:
Soviet first secretary Khrushchev told
a Japanese correspondent on 18 June
that the Soviet Union may agree to return
the southern Kuril islands of Etorufu and
Kunashiri, depending on improvement in
the international situation and the state of relations with Japan.
Except for one informal feeler in February 1956 concerning
return of Kunashiri "under certain conditions," Soviet officials
flatly refused to consider return of either Kunashiri or Etorufu
during the protracted treaty negotiations. Khrushchev's re-
marks are the first high-level hint of a possible change in the
Soviet position. Eventual Soviet conditions for return of the
islands would probably require American return of Okinawa
and withdrawal from Japan,
This statement was obviously timed to coin-
cide with Premier Kishi's visit to the United States,
20 June 57
Current Intelligence Bulletin Page 7
-SEER-ET-
Approved for Release: 2019/12/04 C03148918