CURRENT INTELLIGENCE BULLETIN - 1956/05/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03161861
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: May 16, 1956

Approved for Release: 2019/10/21 C03161861
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CURRENT
INTELLIGENCE
BULLETIN
16 May 1956
Copy No.
DOCUMENT NO.._
NO CHANGE IN CLAS.
f 1 DECLASSIFIED
CLASS. CHANGED TO: IS
NAEuXTT REVIEW DATE: _ Htl
DAT
REVIEWER:
3.3(h)(2)
1)3 3.5(c)
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
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Amik oak
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--W
CONTENTS
1. BRITISH PROPOSE EFFORT TO GET SOVIET SUPPORT
FOR UN MOVES TOWARD ARAB-ISRAELI SETTLEMENT
(page 3).
2, CAMBODIA LIKELY TO ACCEPT CHINESE COMMUNIST
AID OFFER (page 4).
3. HUNGARIAN FACTIONALISM LEADS TO SPECIAL CENTRAL
COMMITTEE MEETING (page 5).
4. USSR REPORTEDLY OFFERS TO SUPPLY JET TRANSPORTS
TO INDIA (page 6).
5. STRIKE SITUATION COULD LEAD TO COUP IN URUGUAY
(page 7).
6. ECUADORAN-CZECH ARMS NEGOTIATIONS
(page 8).
16 May 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 9)
Current Intelligence Bulletin Page 2
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01,4
1. BRITISH PROPOSE EFFORT TO GET SOVIET SUPPORT
FOR UN MOVES TOWARD ARAB-ISRAELI SETTLEMENT
British UN chief delegate Dixon has pro-
posed to the French and American dele-
gates that the Soviet delegation be sounded
out on its willingness to support UN moves
toward a Middle East settlement during
the next two or three months.
Dixon implied that Prime Minister Eden
envisages consultation on an early Security Council resolu-
tion congratulating Secretary General Hammarskj old. The
Russians should be asked at the same time to support diplo-
matically Hammarskjold's plan under which troops would be
withdrawn from the El Auja-Sinai area and Egypt would lift
its blockade of the Suez Canal. Dixon indicated the British
were prepared to go further and ask the Russians if they are
willing to support a "full settlement" of Palestine problems.
According to Dixon, London believes the
Soviet government is now "more manageable," and that the
West should now "cash in." He expressed his view that the
only way to solve the Palestine problem is to bring Soviet
pressure to bear on the Arabs.
Comment The British evidently consider that they
were moderately successful in getting
Khrushchev and Bulganin to comprehend the gravity of the
situation in the Middle East during their recent visit to the
United Kingdom, and want an early test of the professed
Soviet willingness to co-operate in the UN to relieve tension.
16 May 56
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2. CAMBODIA LIKELY TO ACCEPT CHINESE COMMUNIST
AID OFFER
Under the terms of an economic aid
agreement initialed by Communist
Cbina and Cambodia, Peiping will ex-
pend about $23,000,000 in Cambodia
years in the fields of irrigation, hy-
draulic engineering, light industry, transportation and
communications, schools and hospitals, and electric power.
The program is to be supervised by mixed commissions
operating in Peiping and Phnom Penh. Cambodia will prob-
ably ratify the agreement.
Comment There is no doubt of Peiping's ability
to meet its commitments under this
aid agreement, which is the first made by the Chinese with
a non-Communist country.
Peiping has made repeated offers dur-
ing the past several months to give Cambodia aid "without
strings!' The type of aid offered fits in with Cambodia's
two-year economic development program.
The aid program would give the Chinese
Communists an opportunity to establish themselves firmly in
Cambodia and to develop contacts in South Vietnam, Laos and
Thailand.
16 May 56
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SECHEll
3. HUNGARIAN FACTIONALISM LEADS TO SPECIAL
CENTRAL COMMITTEE MEETING
issension within the Hungarian central
ommittee has reached such proportions
hat a special meeting has been scheduled
or this week, according to well-qualified
s.ource of the American legation in Budapest. One source
reports that party leader Rakosies tactics will be to make a
show of yielding to mounting pressure, but he "will continue to
maintain control without giving too much ground."
The latest in a series of public displays
of Soviet support for Rakosi appeared in a 9 May Szabad Nep
article which quoted Voroshilov's message of "ardent and
best greetings to his dear friend Rakosi."
Comment Several recent reports indicate that oppo-
sition to Rakosi is centering in a group of
younger nationalistic Communists, headed by politburo mem-
bers Kovacs and Szalai, Colonel General Nogradi, and Janos
Kadar, now a local party secretary. Kadar was ousted from
the politburo in 1950 in the wake of the Rajk Titoist trial.
In the face of increased opposition to Rakosi,
Soviet leaders, including Bulganin and Khrushchev, have en-
dorsed Rakosi three times in the past six weeks. The USSR
probably fears that his removal now would only worsen the
Hungarian political situation.
16 May 56
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SMALL__
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4. USSR REPORTEDLY OFFERS TO SUPPLY JET
TRANSPORTS TO INDIA
The USSR has made an offer to Prime
Minister Nehru of TU-104 jet trans-
ports for the government-owned Air
Indi[a International,
This type of aircraft, three of which
flew to London during the Bulganin-Khrushchev visit, only
recently went into production.
Until commercial aviation has had more
experience with jet transports, India is unlikely to accept
either this offer or another reported Soviet offer to India
Air Corporation, also government-owned, of an unspecified
jet transport for its internal airways.
India, however, is considering� British
and Soviet offers of jet light bombers. (Con-
curred in by ORR)
16 May 56
Current Intelligence Bulletin Page 6
SaltET
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S
5. STRIKE SITUATION COULD LEAD TO COUP IN URUGUAY
/the serious Uruguayan political
crisis precipitated by a strike in the
important meat packing industry might
eventually lead to a declaration of mar-
tial law and a coup by General Juan Ribas,
then heading the Defense Ministry. Such
developments would have the support of
former council president Luis Bathe Berres.
An unconfirmed press report late on 15
May announced a new cabinet in which Gamarra was shifted
to the Foreign Ministry post and a new defense minister ap-
pointed. This cabinet shuffle was necessitated by the resig-
nation last week of three ministers over a minor issue.
Uruguay is ruled by a nine-man council
wielding the authority of the chief of state, with the title of
president rotating on an annual basis. Both Bathe, who was
president of the council until 1 March, and the opposition
Nationalist Party have been reported working for the past
six months toward abolition of the council. The present coun-
cil was established in 1952, largely to prevent Batlle from
becoming too powerful under a presidential system.
The composition of the new cabinet, drawn
exclusively from Battle's faction of the majority party, further
narrows the government's already slim congressional base and
could prolong the present stalemate over important legislation.
Although Uruguayan politics are chronically
turbulent, the last coup took place in 1933 under similar cir-
cumstances, when economic conditions were difficult and there
was a split in the executive.
16 May 56
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6, ECUADORAN-CZECH ARMS NEGOTIATIONS
Because of Ecuador's foreign exchange
shortage, Czechoslovakia is reported willing to allow credit.
Old armaments held by Ecuador would be acceptable as part
payment while rice, coffee, cocoa, and possibly a small
amount of crude oil would make up the balance.
Comment Arms negotiations between Ecuador and
Czechoslovakia have been under way for
about a year and a half.
Ecuador has been engaged in an arms race
with Peru and has turned to the Soviet bloc countries for arms
because of its inability to secure arms from free world sources
on the terms it desires. (Concurred in
by ORR)
16 May 56
Current Intelligence Bulletin Page 8
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LS ET
THE ARAB -LSRAE LI SITUATION
(Information as of 1700, 15 May)
Israel charged that two Israeli workers
were wounded by gunfire from a Syrian position in upper Galilee.
(Press)
/ There has been no previous indi-
cation that the Arab states are thinking in terms of such a con-
ference, which would presumably be outside the United Nations.
A conference in which the Arab states would sit down with Israel
to discuss the Palestine problem would be unprecedented, and
the assortment of countries supposedly to be invited appears to
be an unlikely combinatio
16 May 56
Current Intelligence Bulletin Page 9
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