CURRENT INTELLIGENCE BULLETIN - 1956/08/24

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03155132
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 24, 1956

CURRENT
INTELLIGENCE
BULLETIN
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24 August 1956
Copy No,
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0 DECLASSIREA
CLASS. CHANGED TO: TS
NEXT RE-VIEW DATE:
AUTH:HF..72
DATE.
105
REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
LOP SECRE
3.5(c)
3.3(h)(2)
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CONTENTS
1. BURMA SENDS STRONG NOTE TO CHOU EN-LAI ON
BOUNDARY DISPUTE page 3).
2. SOVIET ARMY DEMOBILIZATION MEASURES REPORTED
(page 5).
3. KRISHNA MENON'S ROLE IN THE SUEZ CONTROVERSY
(page 6).
4. EGYPTIRRO' RIST ACTIVITIES MAY BE STEPPED UP
(page 8).
5. TURKEY'S FINANCE MINISTER RESIGNS
(page 9).
6. ALGERIAN REBELS REPORTEDLY HAVE ENOUGH SMALL
ARMS (page 10).
24 Aug 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 11)
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I. BURMA SENDS STRONG NOTE TO CHOU EN-LAI ON
BOUNDARY DISPUTE
Ba Swe declared
that Burma could not
accept Chou's char-
acterization of this
portion of the fron-
tier as "the south-
ern undetermined
section," He insisted
that the boundary drawn
24 Aug 56
Myitkyina �
Lashio �
� Mandalay
WA STATES
Rangoon
24-AUGLI
z u t b n _eMarca ound r
e ini te boundary
StE18
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In 1941 by Nationalist China and Britain should be accepted
by both parties and requested that a joint commission be es-
tablished to set up boundary markers.
Comment
Chou's plans for a personal visit to
Rangoon and a border conference--presumably similar to
the inconclusive good-will gathering of tribal leaders held
on the Burma side of the border last February--reflect
growing concern in Peiping that continued publicity over
the boundary controversy may be adverse to China's inter-
ests. These actions appear designed to placate the Burmese
without granting any concessions along the Sino-Burmese
frontier. Chinese Communist troops are still in the dis-
puted territory.
24 Aug 56
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2. SOVIET ARMY DEMOBILIZATION
MEASURES REPORTED
'Since' the announcement last May that
the Soviet Union would reduce its forces
by 1.2 million men by May 1957, Mar-
shal Zhukov has reportedly ordered the
release of officers and enlisted men who have completed
25 years of service, those with family problems, and those
guilty of misconduct.
Reductions are also to be made in the
numbers of political officers and personnel in auxiliary
military installations.
These steps are reported as being in
il)reparation for a demobilization of military units this fall.
Comment It is believed that a number of officers
were retired--some against their will--
after the announcement in August 1955 of a 640,000-man
reduction in the armed forces. Also, some undesirables
were weeded out of the Group of Soviet Forces in Germany
last fall.
There have been several indications that
the number of political officers has been reduced over the
past two years, although not necessarily in connection with
the announced reduction of forces.
24 Aug 56
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SW'
3� KRISHNA MENONS ROLE IN THE SUEZ CONTROVERSY
Krishna Menon's activities as "mid-
dleman" at the London conference have
probably ensured him an important
role in any subsequent attempts to ne-
gotiate the Suez controversy. How-
ever, his insistence that Egypt, as
well as the West, must make some
concessions appear, to have irritated
the Egyptians.
rhe provision for an international "advisory council" for the
Egyptian canal company included in his plan was probably
cleared with Nasr.
Menon's proposal originally had an additional provision for
representation of foreign maritime companies on the canal
company's board of directors. This was eliminated only as
a result of the USSR's threat to satisfy Cairo's objections to
it by submitting another proposal excluding this item.
Menon has from the beginning aimed at
a second and possibly a third Suez conference in which Egypt
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would participate and which would almost certainly have to
take into account the Indian proposal. Ceylonese prime min-
ister Bandaranaike reportedly announced on 23 August that
Ceylon has suggested to Cairo that Colombo be the site for
a second Suez conference. Bandaranaike has been in close
touch with Nehru on the Suez problem and his proposal may
be aimed at� providing Menon with a more effective platform
to continue his mediation.
24 Aug 56
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4. EGYPTIAN TERRORIST ACTIVITIES MAY BE
STEPPED UP
24 Aug 56
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Nine 'fter
5. TURKEY'S FINANCE MINISTER RESIGNS
Comment on:
The sudden resignation of Turkey's
Minister of Finance Nedim Okmen on
22 August and the assumption of the
finance portfolio by Prime Minister
Menderes suggest an approaching finan-
cial crisis. Okmen's resignation probably springs from
the basic conflict over economic policy in the government.
Last January Okm.en threatened to re-
sign if Menderes opposed his economic stabilization pro-
gram; Menderes reluctantly approved the plan, but its im-
plementation has been slovv. Menderes' strict price con-
trol program and his refusal to devalue the currency ac-
cording to the International Monetary Fund's recommendations
probably convinced Okmen that he should follow the example
of former minister, of economy Ulas and resign in protest.
Turkey faces a major financial crisis.
Its exports are lagging, and despite the temporary benefits
of the new price controls, domestic industry is suffering
from a severe shortage of raw materials and spare parts,
unemployment is increasing, and there is a serious shortage
of many consumer goods including food items.
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6. ALGERIAN REBELS REPORTEDLY HAVE ENOUGH
SMALL ARMS
the rebels now
have an adequa e supp y of all types of
small arms currently needed,
This new situation is reportedly due to an im-
proved supply from foreign sources, an increasing number
of desertions among both Foreign Legionnaires and Mos-
lem troops from tropical Africa, and the unexpectedly
large quantity of weapons captured from the French army.
The main problem facing the Algerian
rebels now, is to obtain suffi-
cient ammunition to make use of the weapons and men now
available. As a result, the rebel leaders are now urging
potential deserters to "come over" without arms but with
as much ammunition as they can carry.
Comment
the Algerian resistance
Is now well supplied with small arms and lacks only cer-
tain types of ammunition and heavy weapons.
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 23 August)
According to an Israeli spokesman, three
Egyptian positions opened mortar and machine gun fire on an
Israeli army patrol in the Kissufim area near the Gaza strip.
The Israeli patrol returned the fire. No casualties were re-
ported. (Press)
A Jewish Agency official who is responsi-
ble for agricultural settlements in the �Negev district told an
American embassy official that his agency has established five
settlements in the El Auja demilitarized zone manned by the
paramilitary "Nahal" group. He said these settlements are
not bona fide farming projects but "uneconomic defense proj-
ects:' Nahal forces possess the military training to make these
villages strong border fortifications. The official said the
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Syrian minister of defense Raslan an-
nounced on 23 August that Syria and Jordan have formed a,
joint military command to implement their recent military
agreement. He gave no further details. The new command,
however, is probably on the pattern of the joint Egyptian-
Saudi Arabian and Egyptian-Syrian commands. Syria and
Jordan had already established a joint military policy com-
mittee and a joint operations staff which is believed to have
functioned generally under the Egyptian-Syrian-Saudi com-
mand system. The formation of this command indicates close
military association of Jordan with the Egypt-Saudi-Syrian bloc
and suezests that Jordan will receive arms as a quid pro quo.
24 Aug 56
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