CURRENT INTELLIGENCE BULLETIN - 1957/06/27

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03153705
• 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 27, 1957

for
e d .u.oz04C 003z7
oor
CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2)
27 June 1957
"P"R)* 134 3.5(c) .#;#
DOCUMENTGcHANE ,NNo.
N Istc
[1 DECLASSIFIED
CLASS. CHANGED TO: TS
NEXT REVIEW DATP:
ADUATTEH.: Hd, 0-2
EVIEWE
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
CO/.7/7/ , 'ET JO/
Approved for Release: 2019/12/04 C03153705
Approved for Release: 2019/12/04 C03153705
Approved for Release: 2019/12/04 C03153705
et Ind, irh lam<
Approved for Release: 2019/12/04 C03153705
NIS
CONTENTS
-LAI SPEECH TO NATIONAL PEOPLE'S CONGRESS
page 3).
2 GOVERNMENT REORGANIZATION. POLITICAL CRISIS SEEN
(j" IMMINENT IN SOUTH KOREA (page 5).
INDIA_ 1.E_QIUESTS $700,000,000 LOAN FROM UNITED KING-
() DOM (page 6).
ATTEMPTED ASSASSINATION OF SYRIAN COMMUNIST LEADER
(page 7).
27 June 57
Current Intelligence Bulletin Page 2
Approved for Release: 2019/12/04 C03153705
7-rarraar
Approved for Release: 2019/12/04 C03153705
Nue
1. CHOU EN- LA! SPEECH TO NATIONAL PEOPLE'S CONGRESS
The official Chinese Communist summary
of Chou En-lai's 30,000-word address to
the National People's Congress on 26 June
suggests that Chou's annual report did little
more than reaffirm established positions on
questions of foreign and domestic policy.
Chou declared that during the past year the
international situation has been developing along lines "bene-
ficial to peace" despite constant threats posed by American
"imperialist policy." As major factors in this development,
he cited "reasonable" Soviet proposals for arms limitation,
the growing importance of the Asian-African countries, the in-
creasing Japanese demands for "independence," and the Taiwan
riots.
In line with Peiping's continuing emphasis on
Sino-Soviet bloc unity, Chou asserted that solidarity had grown,
not weakened, following the Hungarian rebellion. Facts, he said,
prove that unity based on "proletarian internationalism and equal-
ity" cannot be destroyed by provocations. He praised Soviet
economic assistance for Communist China, declaring that Pei-
ping's achievements were "inseparable" from Soviet help and
"expert guidance." He expressed "heartfelt thanks" for Russian
aid and promised that Communist China would continue to "learn
seriously" from the Soviet Union and all other Socialist coun-
tries.
On the economic side,Chou revealed that
overspending in 1956 and a poor agricultural showing, which he
blamed on the "worst weather in several decades," had resulted
in a budget deficit of $750,000,000 at the end of that year. Sur-
pluses left over from previous years covered only a part of the
deficit, forcing the regime to borrow and issue currency to cover
the remainder. This is the first year since 1950 that the regime
has admitted the need of a currency issue to cover a deficit. Chou
27 June 57
Current Intelligence Bulletin Page 3
COMIDENTIAL
Approved for Release: 2019/12/04 C03153705
Approved for Release: 2019/12/04 C03153705
Nimp, Nal
said that the Chinese Communists plan to achieve a balance
in the 1957 budget by increasing revenues and reducing ex-
penditures, including a cut of 20 percent for investment in
fixed assets.
On domestic political matters, Chou ad-
mitted that the Communists had executed about one in six
"counterrevolutionatiest! arrestedbefore 1952. Communist
statements at the time indicated a much higher ratio than
this and a total greater than the 800,000 executions reported
in unofficial versions of Mao's "secret" speech. Chou de-
fended the "few cases" which had been mishandled by claim-
ing that Communist achievements were "fundamental," while
errors were "individual."
Chou repeated last year's promise of a
government decentralization program which would encourage
local initiative "under central leadership." He warned that the
regime will not tolerate any efforts to undermine the "people's
democratic dictatorship," the only system, he said,which can
insure the "victory of socialism." He reiterated the standard
Chinese Communist exhortation against "doctrinaire" methods
but asserted the necessity for refuting the views of "revision-
ists" that the "universal truths of Marxism" and Soviet experi-
ence should be repudiated as "mere dogma."
27 June 57
Current Intelligence Bulletin Page 4
CONFIDE AL
Approved for Release: 2019/12/04 C03153705
Approved for Release: 2019/12/04 C03153705
2. GOVERNMENT REORGANIZATION, POLITICAL
CRISIS SEEN IMMINENT IN SOUTH KOREA
Ambassador Dowling reports that
South Korea's Liberal Party is ex-
pected shortly to start action on a
constitutional amendment which will
deprive Vice President Chang Myon of the right to succeed
to the presidency. He states that this could result in the
most serious internal political crisis in Korea since the
presidential election crisis in 1952.
The Liberal Party proposes to establish
a modified parliamentary system by restoring the office of
prime minister and providing that the incumbent would suc-
ceed to the presidency pending a new election within 90 days.
The office of the vice president would be abolished at the end
of the present term. Until that time, Chang would preside
over an upper house to be composed of representatives se-
lected by the lower house and local assemblies. The cabinet
and prime minister would be responsible to the lower house.
Dowling reports that President Rhee ap-
parently has not yet given his final approval, but he believes
this is only a temporary delay. The Liberals hope to announce
the amendment in July, and secure passage in August.
The opposition Democrats are expected to
resist vigorously any attempt to undermine Chang's position,
and may resort to violent demonstrations. They are not com-
pletely united on the issue, however, since many are attracted
by the prospect of a coalition government under a parliamentary
system as opposed to a perhaps futile effort to defend Chang's
right to succeed Rhee. The Liberals also reportedly plan to
withdraw objectionable features of proposed amendments to the
National Election Law if the opposition will not obstruct the con-
stitutional amendment.
27 June 57
Current Intelligence Bulletin Page 5
CO.NFID 'TIAL
Approved for Release: 2019/12/04 C03153705
inn
Approved for Release: 2019/12/04 C03153705
viese
3. INDIA REQUESTS $700,000,000 LOAN FROM
UNITED KINGDOM
Comment
The size of the requested loan indicates
the seriousness of the developing finan-
cial crisis in India. In the past the Indians have taken the
position that while they would discuss offers of aid,they would
not solicit such assistance.
Indian foreign exchange reserves, which
were scheduled to decline by $420,000,000 during the Second
Five-Year Plan (1956-61), have fallen by $571,000,000 in the
first 15 months of the plan, and would have declined even more
if India had not borrowed $200,000,000 from the International
Monetary Fund. To pay for the large amounts of industrial
equipment already contracted for in foreign countries, India
will be forced to reduce drastically the foreign exchange back-
ing for its currency, which might cause a financial panic in
India. Since neither the UK nor Canada is likely to supply the
funds now being requested, India probably will approach the
United States for large-scale assistance in the near future.
27 June 57
Current Intelligence Bulletin Page 6
SK ET
Approved for Release: 2019/12/04 C03153705
erriAri
Approved for Release: 2019/12/04 C03153705
4. ATTEMPTED ASSASSINATION OF SYRIAN
COMMUNIST LEADER, ,
Comment
This is the second attempt on the life of
a leftist leader in Syria to be reported in
the past two weeks. Col. Mustafa Hamdun, an extreme left-
wing supporter of Col. Sarraj, was attacked on 10 June.
27 June 57
Current Intelligence Bulletin Page 7
Approved for Release: 2019/12/04 C03153705