CURRENT INTELLIGENCE BULLETIN - 1956/01/29

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03157476
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: January 29, 1956

. Approved for Release: 2019/10/21 C03157476
CURRENT
INTELLIGENCE
BULLETIN
TOP SECRET
29 January
3.5(c)
1956
Copy No.
103
t7,0CUMENT NO
CHANGE IN CLASS 341000� ��
DECLASSIFIED
CLASS. CHANGED TO: IS S 0 %%�,...�:,�1,-'
NEXT REVIEW DATE; 2*� I
AUTH: HR 70-2
DATE: 11.7;Z 10 REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
�TOP SEC
Approved for Release: 2019/10/21 C03157476
3.3(h)(2)
3,4
Approved for Release: 2019/10/21 CO3157476,,
Approved for Release: 2019/10/21 C03157476
r,
Approved for rRelease: 2019/10/21 C03157476
CONTENTS
1. SOVIET PARTICIPATION IN NEW AFGHAN FIVE-YEAR
PLAN (page 3).
2. ICES NEW OVERTURES TO JAPANESE PREMIER
(page 5).
3. PEIPING REQUESTS ANOTHER GENEVA CONFERENCE
ON INDOCHINA (page 6).
4. KUBITSCHEK'S PROBABLE FINANCE MINISTER LOOKS
TO USSR AS SOURCE OF INDUSTRIAL EQUIPMENT
(page 7)0
29 Jan 56
THE ARAB-ISRAELI SITUATION
(page 8)
Current Intelligence Bulletin Page 2
077" ri v-, r9
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
�-��1........11,1-4
1. SOVIET PARTICIPATION IN NEW AFGHAN FIVE-YEAR
PLAN
The USSR, through projects financed
under the recent $100,000,000 credit
offer to Afghanistan, apparently will
play an important part in the fulfillment
of the new Five-Year Plan announced by
the Afghan government on 22 January.
A high-level, eight-man Soviet delega-
tion, headed by N. A. Smelov, the deputy chief of the USSR's
"36
Farah
Qala-i-Kang
AF
AZAR�SHARIF
GHANISTAN
SPIN BALDAK
�
Stalinabad
Fayza bad
4
Khanabad
K AT AGHAN
ROV INCE
72
horog
z
"(e �
KABU
Pul.i.Khurnri
pm
I
Th
ORKHAM
Peshawar
SECRET
29 JANUARY 1956
All weather road
Railroad (selected)
50 100 200
STATUTE MILES
29 Jan 56
60129
Current Intelligence Bulletin Page 3
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
NIS
Chief Directorate of Economic Relations, arrived in Kabul
on 24 January to negotiate agreements in connection with
the credit offer. Economic arrangements concluded by this
delegation probably will provide for use of only part of the
total credit figure. Smethv is also authorized to sign mili-
tary agreements.
Kabul's first Five-Year Plan, probably
hastily drafted after the IChrushchev-Bulganin visit last
December, includes agricultural development projects;
small dams and canal projects; expansion of air service
and the improvement of airfields at Kabul, Kandahar, Herat,
Mazar-i-sharif, and in Kataghan province; improvement of
main roads in northern Afghanistan and on the Torkham-
Kabul, Kabul-Kandahar, and Kandahar-Spin Baldak routes;
development of mineral resources and industry; banking re-
forms and the establishment of an Industrial Bank; and ex-
pansion of Kabul University.
The USSR is known to be interested in
participating in many of the above projects. The new Afghan
plan probably will utilize Afghan government funds and West-
ern aid as well as Soviet financing. The Morrison Knudsen
company is already at work on Kandahar airport and at pres-
ent seems unlikely to be supplanted by a Soviet organization
either there or in its Helmand Valley project. Morrison
Knudsen, which constructed the Kandahar-Spin Baldak high-
way some years ago and is now at work on roads east and
south of Kabul, may also be requested to undertake much
of the planned roadwork in southern Afghanistan. Certain
projects may also be assigned to West Germans.
(Prepared jointly with ORR)
29 Jan 56
Current Intelligence Bulletin Page 4
SECRET
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
%OLIVA Uri A
'411110" liege
2. USSR MAKES NEW OVERTURES TO JAPANESE PREMIER
The Japanese press on 27 January pub-
lished an informal Soviet proposal to
Premier Hatoyama which included an
expression of intent unilaterally to termi-
nate the state of war with Japan around 30 January. The pro-
posal reflects Khrushchev's views expressed to a Japanese
parliamentary delegation in Moscow last September, when
he said that termination of the state of war, repatriation of
prisoners of war, and establishment of diplomatic relations
would be the initial steps of a Japanese-Soviet settlement
and should occur as a series of related actions.
The USSR will probably insist that repa-
triation of prisoners be made contingent on establishment of
diplomatic relations. The Soviet desire to avoid discussion
of controversial questions at this time has been evident at
the Soviet-Japanese negotiations in London.
The Japanese Foreign Ministry has thus
far remained firm in insisting that the establishment of Soviet-
Japanese diplomatic relations must be preceded by a settle-
ment of the other unresolved issues. Hatoyama and his close
advisers have favored a settlement along the line of the pres-
ent Soviet proposal in the past, however, and they may have
decided to release the proposal to the press in hopes of even-
tually creating a favorable public reaction.
29 Jan 56
Current Intelligence Bulletin Page 5
SECRET
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
JEA...1REt I
3. PEIPING REQUESTS ANOTHER GENEVA
CONFERENCE 01\_INIXICHINA
A note from Chou En-lai sent to
the British embassy in Peiping on
26 January states that Communist
China "strongly condemns the con-
tinued disregard of the Geneva agreements by the Ngo 4
Dinh Diem government" and "deems it necessary that
another Geneva conference on Indochina be convened" to
discuss the question of the implementation of the Geneva
agreements. The Chinese Communists propose that the
three member countries of the International Control Com-
mission�India, Poland, and Canada--be invited to partic-
ipate in this conference.
Comment The British Foreign Office has confi-
dentially informed the American em-
bassy in London that if Moscow should support Peiping's
note, Britain will stall by citing the need to get the views
of all governments concerned.
29 Jan 56
Current Intelligence Bulletin Page 6
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
4. KUBITSCHEK'S PROBABLE FINANCE MINISTER LOOKS
TO USSR AS SOURCE OF INDUSTRIAL EQUIPMENT
Comment
The campaign speeches of President-
elect Kubitschek, whose inauguration
is scheduled for 31 January, included statements favoring
Brazilian relations with the Soviet bloc. Brazil now has
diplomatic relations with Poland and Czechoslovakia and
formal trade relations with Hungary. During the past year
both public and congressional opinion in Brazil has indicated
considerable interest in expanding these relations.
The incoming administration is expected
to rely primarily on the United States for foreign aid in its
extensive economic development plans. Kubitschek's inter-
est in finding supplementary sources for such aid, however,
was indicated during his recent tour of Western Europe.
(Concurred in by ORR)
29 Jan 56
Current Intelligence Bulletin Page 7
SECRET
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
.1 WS h...71-416..,1�1-d
Nome
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 29 January'
Only minor incidents have been reported.
Egypt has moved some 36 Centurion and
30 Valentine tanks during the past few days from the Canal
Zone into the Sinai peninsula,
the movements are probably the result ofEgyptian
army demands for a more balanced force in Sinai.
the move increases the danger of new fighting.
if Egypt now has operational Soviet T-34
tanks on hand, it can gamble on a loss of Centurions to Israeli
forces.
Saudi Arabia has two squadrons of ar-
mored cars in Tebuk near the Jordanian frontier with an esti-
mated strength of 24 armored cars and 100 men.
informed Jordanian
circles believe the Saudi troops are in Tebuk to divert part of
the Jordanian Arab Legion away from internal police duties.
an Israeli request to France for
30 AMX tanks, 50 rocket launchers, 10,000 rockets, 25 75mm
guns and eight 155 mm howitzers will be supported by France
at the 31 January meeting of the Near East Arms Co-ordinating
Committee in Washington.
Egypt
has received 250 T-34 tanks, 150 MIG's, and 40 IL-28 bombers
29 Jan 56
Current Intelligence Bulletin Page 8
+FIP SFCALP-7
Approved for Release: 2019/10/21 C03157476
Approved for Release: 2019/10/21 C03157476
A %Li A
NMI
from the Soviet bloc. These figures are much higher than
those generally accepted.
Syria has recently allotted 54,000,000
Syrian pounds (about $25,000,000 at the official rate of ex-
change) for the purchase of arms
Threettuarters of the money came from a Saudi
Arabian loan. Syria plans to purchase 105 Sherman tanks
from France and to use the balance of the money for the pur-
chase of arms from "the other side," presumably Czechoslo-
vakia.
29 Jan 56
Current Intelligence Bulletin Page 9
-T-t3P-SECRE-T
Approved for Release: 2019/10/21 C03157476