CURRENT INTELLIGENCE BULLETIN - 1957/06/06

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03153695
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: June 6, 1957

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for Rease: 2019/12/04
s CURRENT
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7 BULLETIN
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6 June
1957
Copy No. 134
3.5(c)
3.3(h)(2)
DOCUMENT NOICI-1-P--
NO CHANGE IN CLASS.
CLASS. CHANGED TO: TS S C
C.3 DECLASSIFIED
AUTH: HR 70-2
NEXT REVIEW DATE: --
DATE: EVEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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eas
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CONTENTS
I. BRITAIN BELIEVED INTENT UPON REVISING CONTROLS
, ON TRADE WITH USSR (page 3).
/12. INDONESIA REPORTEDLY TO ACCEPT LARGE CASH
LOAN FROM USSR (page 4).
. THE ALGERIAN SITUATION
(page 5).
(page 6).
C4. POLITICAL STRIFE OVER SUCCESSION TO RHEE EXPECTED
(page 7).
0/16. PAKISTANI PRIME MINISTER TO VISIT AFGHANISTAN
FROM 8 TO 10 JUNE age 8).
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1. BRITAIN BELIEVED INTENT UPON REVISING CONTROLS
ON TRADE WITH USSR
The American embassy in London believes
Britain still plans to relax controls on trade
with the Soviet bloc and will make proposals
to this end "in the not too distant future."
In view of the persistence of some adverse
reaction to London's decision on the China
controls, the embassy believes the time is
not ripe for a British move in COCOM. The government told
Parliament on 4 June that it would not now "feel justified" in re--
sorting to some form of exceptions procedure to bring about
relaxation of the COCOM controls.
Comment Britain has taken the position for over a year
that revision of the COCOM system is neces-
sary because of the development of new weapons systems and the
inequities and difficulties involved in administering the present
system. Britain's drive for increased exports and its desire to
demonstrate its independent role in the Anglo-American alliance
will make it loath to compromise on this matter<
6 June 57
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� 2, INDONESIA REPORTEDLY TO ACCEPT LARGE CASH
LOAN FROM USSR
Indonesia's decision to accept $362000,000
of the proposed Soviet $100,000,000 loan in
order to strengthen the country's currency
was acknowledged by the Soviet embassy in
Djakarta
Comment The only aid agreement known to have been
reached between Indonesia and the Soviet
Union was for $100,000,000 in technical aid and was signed in
September 1956. Indonesia thus far has refused to negotiate
specific projects under this agreement because parliament has
not yet ratified it.
Moscow generally prefers to apply its
credits to development projects, and the present agreement
with Djakarta contains no provision for foreign currency or
gold credits. In the present situation in Indonesia, however,
Moscow probably perceives sufficient political advantage to
warrant extending credits in cash or gold.
Indonesia's financial position has deteri-
orated seriously in recent months, and there have been rumors
of an impending currency devaluation. The government is un-
able to make more than token gestures toward meeting the eco-
nomic demands of the disaffected provinces.
Djakarta
expect to rely on foreign aid to
help solve their pressing political and economic problems, and
have recently agreed to accept a $15,000,000 loan from the
United States. j a Soviet cash
loan can be negotiated more rapidly than aid projects, and can
be used with more immediate effect.
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3. THE ALGERIAN SITUATION
The American consul general in Algiers,
in reappraising the Algerian situation,
believes France may have delayed too
l'ong and lost control over the course of
events.
The rebels, capitalizing on the govern-
ment crisis in Paris, are stepping up their activities. Min-
ister Robert Lacoste reportedly realizes that his reform
program has failed and is seeking a graceful way out. If a
new approach is sought by Paris, the consequent demonstra-
tion by European residents in Algeria is expected to be violent.
It is impossible to predict the reaction of French military com-
manders, who are unhappy over the present situation and re-
member the precedent of Indochina, Tunisia and Morocco.
Comment The American embassy in Paris expects
that the unabated terror in Algeria, to-
gether with the dawning sense of futility of continuing the paci-
fication effort, will force Paris to reappraise its Algerian
policy by this fall when the UN General Assembly reconvenes.
6 June 57
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I LJI�J-EL�TCM�
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mrime very
5. POLITICAL STRIFE OVER SUCCESSION TO
RHEE EXPECTED
South Korea's Vice President Chang
Myon informed the American embassy
in Seoul that the ruling Liberal Party
was determined to force through the
National Assembly a constitutional amendment which would
deprive the vice president of the right of succession. He said
the struggle between the opposition and the Liberals would be-
come more intense.
The embassy agrees that the intensity of
the political struggle will increase because the Liberals re-
gard the situation as one of survival, while the opposition is
fighting to preserve its avenue to power after Rhee's death.
Comment
The Liberals are also planning amend-
ments to the election law which are de-
signed to ensure an administration victory in the National
Assembly election next spring. The opposition Democrats
have reportedly decided to resort to violence if necessary in
an effort to prevent passage of the controversial bills.
6 June 57
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6. PAKISTANI PRIME MINISTER TO VISIT AFGHANISTAN
FROM 8 TO 10 JUNE
Reference:
Pakistani prime minister Suhrawardy,
who is to visit Kabul from 8 to 10 June,
is moderately optimistic about securing
some further improvement in Afghan-
Pakistani relations. He is probably Pakistan's most adroit
politician, and he will find the Afghans more inclined than in
the past to seek some measure of agreement. The Afghans
are now actively exploring the potential benefits of the Richards
mission and of continued collaboration with the West through
Pakistan.
Suhrawardy apparently is limiting the ob-
jectives of his mission and not seeking any over-all settlement.
He proposes to try once more to exchange ambassadors, both
countries having been represented by charges since 1955. He
hopes to sign an air transport agreement and improve economic
ties. He also hopes to seek a lessening of Pushtoonistan prop-
aganda, though he considers this a less serious problem than
heretofore.
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