CURRENT INTELLIGENCE BULLETIN - 1957/05/10

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03150420
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: May 10, 1957

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10 May 1957
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CENTRAL INTELLIGENCE AGENCY
TOP SECRET #0:000,0100,
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CONTENTS
,10 1. BRITISif REACH DRAFT AGREEMENT WITH EGYPT ON
V TOLLS (page 3).
,N 2. EGYPTIANS EXPECT FRICTION IN JORDANIAN ARMY
(page 4).
ST ANY HONDURAN
OK� CEASE-FIRE VIOLATIONS (page 5).
3. NICARAGUA TO RETALIAT
4. DJAKARTA GOVERNMENT ARRESTS SUMATRAN OFFICIALS
(page 6).
01L5. GHANA FINANCE MINISTER GBEDEMAH SUBMITS RESIG-
NATION (page 7).
ANNEX--Conclusions of the Watch Report of the Intelligence
Advisory Committee
(Page 8),
10 May 57
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I. BRITISH REACH DRAFT AGREEMENT WITH EGYPT
ON TOLLS
Discussions in Basel between British
and Egyptian banking representatives
on payment of canal tolls in sterling
have terminated successfully, Assist-
ant Under Secretary Seeley of the British Foreign Office
informed the American embassy on 8 May. The British
hope that the Egyptian representatives, now returning to
Cairo, will soon obtain Nases approval.
Comment The British have maintained that suc-
cessful conclusion of the negotiations,
begun on 5 May, must precede their public acceptance of
the Egyptian canal declaration. Details of the agreement
were not given. Earlier in the negotiations the British
were reported unwilling to release the Egyptian sterling,
estimated at $73,000,000, which they blocked when the canal
was nationalized. Cairo, on the other hand, might hold out
for the release of additional sterling balances of about
$230,000,000 blocked since World War II.
British shipowners are scheduling nunier-
ous tra.nsits in the, expectation that toll payments in ster-
ling will be sanctioned shortly.
10 May 57
Current Intelligence Bulletin
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2. EGYPTIANS EXPECT FRICTION IN JORDANIAN ARMY
King Hussain's attempts to strengthen
the political reliability of the Jordanian
army by increasing the proportion of
Bedouin troops could lead to serious fric-
tion between the Bedouin and the Palestinian
Arabs in the army,
a large number of Bedouin tribesmen had been recruited for the
army recently. this would in time "lead the Pal-
estinian troops to declare their nationalistic feeling" before the
Bedouins "have infiltrated all units of the army:'
The Bedouin tribes of East Jordan number
about 300,000 out of Jordan's total population of 1,500,000.
Their men originally formed the backbone of the fighting units
of the Arab Legion, and are generally loyal to the monarchy.
In addition, most Bedouin tribesmen not incorporated in the
army are armed and have been a useful auxiliary source of
strength to the king.
Although Bedouin troops predominate in
certain key units, they remain in the minority in the 25,000-
man army. the Bedouins dom-
inate both armored car regiments, half of the armored regi-
ment, and five out of the ten infantry battalions. The Pales-
tinians, including non-Bedouin East Jordanians, man the other
half of the,arrnor and the infantry, all of the artillery and
service units, and provide most of the staff officers. The
18,000-man national guard is, by virtue of its existence in the
most populated areas, largely Palestinian.
10 May 57
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3, NICARAGUA TO RETALIATE AGAINST ANY HONDURAN
CEASE-FIRE VIOLATIONS
Comment on:
The American army attache in Managua
believes Nicaraguan forces will retaliate
against any Honduran breaches of the
cease-fire arranged by the special com-
mittee of the Organization of American
States (OAS). General Anastasio Somoza,
chief of the Nicaraguan national guard,
told him on 8 May that Honduran troops
along the border have been foraging for
food inside Nicaragua. Somoza complained
of the slow OAS action to halt these forays
and of the "dictatorial" manner in which
the chief of the team of military observers
ttached to the OAS committee has been attempting to enforce
ertain cease-fire terms to which Nicaragua has not agreed.
An investigation at the border on 8 May,
y the OAS military team reportedly did not substantiate Hon-
duran allegations of a 7 May cease-fire violation by Nicaraguan
troops. Meanwhile, the OAS committee has submitted its plan
for troop withdrawals to each government.
Communists in Honduras and Nicaragua have
jumped on the patriotic bandwagons in their respective coun-
tries. Nicaraguan president Somoza recently expressed con-
cern at the part Communists have been playing in arousing pub-
lic opinion on the dispute with Honduras. In Honduras, the
Communists are giving full support to the military junta, hop-
ing thus to consolidate their recent gains,
10 May 57
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4. DJAKARTA GOVERNMENT ARRESTS
SUMATRAN OFFICIALS
Comment on:
The Indonesian government's arrest in
Djakarta on 9 May of the Central Sumatran
representative there and the reported ear-
lier arrest of 11 visiting members of the
South Sumatran governing council are the boldest moves yet
taken by the central government against the provinces. The
arrests are expected to intensify provincial resentment, al-
ready aggravated by Sukarno's decree on 8 May imposing rule
by a national council. They probably will further stimulate
the desire of Central and South Sumatra for a final break with
Djakarta.
This action will probably preclude any fur-
ther friendly negotiations between Djakarta and the disaffected
provinces. As recently as 29 April, army commanders and
governors from the outer islands consulted in Djakarta with-
out being molested.
10 May 57
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5. GHANA FINANCE MINISTER GBEDEMA/I
SUBMITS RESIGNATION
Ghana's conservative finance minister
Gbedemah has submitted his resignation
to Prime Minister Nkrumah,
If the dif-
ferences over economic policies between the two leading
members of the government result in an open break, the
Nkrumah government would probably fall.
Gbedemah has resisted Nkrumah's deci-
sion to lower the price paid to the influential cocoa growers.
Gbedemah, who reportedly has strong popular and party sup-
port, might form a loose coalition with the hinterland opposi-
tion groups, and create a new government.
In any event, Nkrumah is likely to rely
increasingly on extremist elements, with a consequent rise
in instability in Ghana.
10 May 57
Current Intelligence Bulletin
CONFIDENTIAL
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ANNEX
Watch Report 353, 9 May 1957
of the
Intelligence Advisory Committee
Conclusions on Indications of Hostilities
On the basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that:
A. No Sino-Soviet bloc country intends to initiate hostil-
ities against the continental US or its possessions in
the immediate future.
B. No Sino-Soviet bloc country intends to initiate hostil-
ities against US forces abroad, US allies or areas
peripheral to the Orbit in the immediate future.
C. Early deliberate initiation of hostilities by Israel or
the Arab states is not probable. Although incidents
continue between the Arab states, within certain Arab
states, and between Arab states and Israel, these are
not likely to lead to serious conflict in the immediate
future.
10 May 57
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