CURRENT INTELLIGENCE BULLETIN - 1956/08/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03161868
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 4, 1956

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CURRENT
INTELLIGENCE
BULLETIN
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4 August 1956 4
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Copy No. 105
DOCUMENT NO �
NO CHANGE IN CLASS.
; DECLASSTIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE�
ADUATT31.1*1-** REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELL*ENCE AGENCY
EqW///73:47/0/74,
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Noe �T-etr-SE(RET
CONTENTS
1. SUEZ DEVELOPMENTS
2
(page 3).
(page 4).
3. 7 NA-BURMA BORDER SITUATION (page 5).
4. LAOTIAN GOVERNMENT- PATHET LAO NEGOTIATIONS
(page 7).
5. COMMUNIST CRITICISM OF INDONESIAN GOVERNMENT
(page 8).
6. TEST OF STRENGTH MAY BE SHAPING UP IN SYRIA
(page 9).
* * * *
THE ARAB-ISRAELI SITUATION
(page 10)
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1. SUEZ DEVELOPMENTS
Comment on:
The Egyptian statement commenting
on the Western communiqu�n the
Suez situation suggests that Nasr's
tactic now is to play for time until
there are clearer-cut indications of
the amount of support Egypt will re-
ceive from other Arab states, such
countries as India and Ceylon, and
the USSR. The principal point of in-
terest in the statement is a cautious
assertion that "a compromise between
Egypt's interests and use of the canal
as an international waterway should
not be ruled out." This phrasing still
leaves open the question as to how the compromise should be
reached.
Nasr appeared to
be "wavering slightly" in the face of continued bellicose re-
ports from London and Paris there is
now some chance that Nasr might accept an international com-
mission, including the USSR and Egypt, to oversee the free-
dom of transit of the canal.
Arab support will be rallied at a meet-
ing of the Arab League scheduled for 7 August. Saudi Arabia,
which because its oil moves through Suez is one of the most
interested Arab parties, has not issued a public statement,
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Nue
3. THE CHINA-BURMA BORDER SITUATION
There are, moreover, strong grounds
for suspicion that the clashes referred to by the press ac-
tually took place some time ago.
The Burmese government clearly is not
displeased with the extensive play the "invasion" story is re-
ceiving in the Western press. This is indicated by its care-
fully worded communiqu�f 31 July which, while stating that
the Rangoon Nation's article was overdrawn, admitted the gov-
ernment's serious concern over Chinese Communist incursions.
In the past, Rangoon has dealt far more severely with the press
for far less provocative journalism.
Thus far, Peiping has maintained complete
silence on the issue. The publicity in the Burmese press has
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Nor
undoubtedly discomfited Peiping, which has made special ef-
forts to win Burma's good will. Communist China, however,
will insist strongly on its own claims in any discussion with
the Burmese.
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Noy Nftio
4. LAOTIAN GOVERNMENT-PATHET LAO NEGOTIATIONS
In negotiations between the Laotian gov-
ernment and the Pathet Lao, which began
in Vientiane on 1 August, Prime Minister
Souvanna Phouma has proposed an agenda
calling for cessation of hostilities, restora-
tion of royal control in Phong Saly and Sam
Neua Provinces, and integration of the
Pathets into the national community with-
out discrimination. Prince Souphannouvong,
leader of the six-man Pathet delegation, has advanced a broader
agenda including the formation of a coalition government, guar-
antees of the rights of the Pathet troops, and the "question of
neutrality."
In his opening statement, Souvanna reas-
sured the Pathet delegation of Laos' "strict adherence" to the
five principles of peaceful coexistence, and emphasized that
the Laotian people must not be disappointed in their hopes for
a settlement at this time. Souvanna stated this settlement must
be based, in general, on the Geneva accords and the recommen-
dations of the International Truce Commission,
The American ambassador in Vientiane notes
the absence of the pro-American Deputy Premier Katay from the
delegation. Souvanna has said he feared ICatay's pro-Western
reputation would increase Pathet Lao suspicions of the validity
of Laotian independence.
Souvanna has indicated that negotiations will
be conducted by subordinate officials for "three or four days,"
after which he and Souphannouvong would hold a final meeting to
close out the negotiations.
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---CONTTDENT47412-
5. COMMUNIST CRITICISM OF INDONESIAN GOVERNMENT
The Indonesian Communist newspaper
Harian Ra,kjat printed an editorial on
2 August which probably constitutes the
strongest criticism that the Communists
have yet leveled against the coalition gov-
ernment ot Premier Ali Sastroamidjojo. Although the strongly
anti-Communist Masjumi received its usual slaps, the editorial
was apparently also aimed at the new moderate leadership of
the National Party, which heads the coalition government.
Heretofore, the Communists have been
pressing for a united_ front , and have sought to promote rela-
tions with the National Party at the expense of the Masjumi.
Because of the apparent shift toward moderation in Indonesian
national politics, as indicated by President Sukarno's recent
praise of the US and the emergence of the National Party's right
wing as its dominant faction, the Communist Party may be find-
ing itself forced into an opposition role.
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6. TEST OF STRENGTH MAY BE SHAPING, UP IN SYRIA
, a test of strength between rightist
and leftist elements may be shaping up in
Syria. Two cabinet ministers, members
of the leftist Arab Socialist Resurrection
Party (ASRP), have reportedly threatened
to resign if President Quwatli does not
sign the death sentences passed on mem-
bers of the rightist Syrian Social National-.
ist Party involved in the assassination of an
ASRP army leader in April 1955.
The rightists--conservative politicians sup-
ported by a group of senior army officers--moved to eliminate
leftist influence in the army on 7 July when they forced the resig-
nation of Chief of Staff Shuqayr. Since then, they have moved
slowly and the leftists have had time to organize. Either the
rightist or leftist faction in the army may be seeking a political
issue on which to base the use of force to establish itself in
power.
The American army attach�eport.Ji on
1 August that there was more than the usual number of army
officers in Damascus. He suggested that they might be there
to assess the situation and to align their forces
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TQt Srertf
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 3 August)
Israeli press reaction to the Suez Canal
nationalization now reflects a fear that big-power determina-
tion to achieve an orderly settlement within an international
framework will only enhance Nasr's prestige and shake the re-
maining Western positions in the area, with further impairment
to Israel's security. While Egypt has prevented Israeli ships
from using the Suez Canal since the beginning of the Arab-Israeli
war in 1948, it does permit passage through Suez of non-Israeli
vessels carrying "nonmilitary goods" of Israeli origin if they
are not destined for an Israeli port. Vessels trading with Israel
are blacklisted and are not permitted to refuel or reprovision in
Egypt has ordered the transfer of two three-
inch coast defense guns from El Arish near the Israeli front to
Port Said in the canal zone,
This is the first firm indication of
withdrawal of equipment from the Israeli front to the canal zone.
News of the Suez Canal natidnalization has taken
some of the tension off the Israeli-Syrian border,
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