CURRENT INTELLIGENCE BULLETIN - 1957/01/09

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03161971
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: January 9, 1957

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CURRENT
INTELLIGENCE
BULLETIN
9 January 1957 /A
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DOCUMENT NO.
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AOFFICE OF CURRENT INTELLIGENCE
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CENTRAL INTELLIGENCE AGENCY
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Copy No. 131
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CONTENTS
I. YEMEN ACTS ON SOVIET SUGGESTION TO BR
"AGGRESSION" BEFORE SECURITY COUNCIL
(page 3).
2. INDONESIAN GOVERNMENT PL NCESSIONS TO
PROVINCIAL GOVERNMENTS (page 4).
3. SOVIET-EAST GERMAN AGREEMENTS
(page 5).
4. BONN CONCERNED OVER INVOLVEMENT IN ANY EAST
GERMAN REVOLT (page 6)0
5. EGYPT AND SYRIA STEP UP CAMPAIGN TO GAIN ISRAELI
WITHDRAWAL FROM GAZA (page 7).
6. LAOTIAN PREMIER REPORT TION AGAINST
NEW COMMUNIST ACTIVITY (page 8).
9 Jan 57
Current Intelligence Bulletin Page 2
TOP SECRET
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L YEMEN ACTS ON SOVIET SUGGESTION TO BRING BRITISH
"AGGRESSION" BEFORE SECURITY COUNCIL
9 Jan 57
Current Intelligence Bulletin Page 3
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2. INDONESIAN GOVERNMENT PLANNING CONCESSIONS
TO PROVINCIAL GOVERNMENTS
The Indonesian government is making a be-
lated effort to eliminate the chief sources
of Sumatran disaffection. As a prelude to
granting greater autonomy, the Home Affairs
minister has announced that legislation is
being drafted to set up six Sumatran prov-
inces to replace the present three. A law
has already been passed by parliament, and
is awaiting Sukarno's signature, providing
rnors be locally elected rather than gov-
ernment-appointed as they are now. Djakarta has also indi-
cated a willingness to make additional funds available to out-
lying provinces. It is likely that other provinces will seek to
take advantage of the central government's conciliatory atti-
tude.
The government is also continuing its ef-
forts to avoid bloodshed. The government radio in Medan,
North Sumatra, has announced the suspension of all licenses
permitting civilians to carry arms in the Siantar area. The
order presumably is an effort to disarm Communists who had
been armed by the local regimental commander. It is highly
unlikely, however, that the government can reclaim these arms,
and the possibility of conflict between the Communists and the
dissident forces of Colonel Simbolon remains.
9 Jan 57
Current Intelligence Bulletin Page 4
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3. SOVIET-EAST GERMAN AGREEMENTS
Comment on:
In an effort to boost the prestige of the
East German regime, Soviet and East
German leaders announced on 7 January
their intention to work out an agreement
"which will regulate the questions de-
riving from the presence of Soviet troops on the territory
of the German Democratic Republic:' This agreement, ex-
pected to be patterned on the one recently concluded by the
Soviet Union and Poland, would cover legal jurisdiction over
Soviet forces and the cost of their maintenance during their
"temporary" stationing in East Germany. It would pkobably
give East Germany a nominal voice in the disposition of Rus-
sian troops.
Reaffirming East Germany's sovereign
right to control its air space, the communique termed the
existing quadripartite agreements on the use of air corri-
dors between West Germany and Berlin by aircraft of the
Western Allies "of a temporary and restricted nature" not
affecting East Germany's sovereignty. Although it did not
deny the validity of these agreements, the statement sug-
gests that East Germany may attempt to exert control over
Western commercial air travel to Berlin.
Soviet economic assistance to East Ger-
many will take several forms. Most important is a credit
of 340,000,000 rubles ($85,000,000 at the official rate) to be
given East Germany in gold and free currency for the pur-
chase of goods on the world market. This credit may be ex-
tended as part of the ,10-year loan, possibly amounting to
$250,000,000, which the USSR granted East Germany last
July, Both countries will also undertake in 1957 to increase
trade with each other by 30 percent. The USSR will increase
its exports to East Germany of coke, oil, ferrous rolled metal,
timber, and other industrial raw materials and foodstuffs all
desperately needed by East Germany.
9 Jan 57 Current Intelligence Bulletin
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4. BONN CONCERNED OVER INVOLVEMENT IN ANY EAST
GERMAN REVOLT
West German defense minister Strauss
and two top generals, Heusinger and
Speidel, told members of the Fairless
Committee that although a serious up-
rising in East Germany would present
Bonn's army with a difficult problem,
only NATO action could be considered,
since independent action by German
forces would be suicidal.
Strauss told one member of the com-
mittee, however, that in the event of a Hungarian-type up-
rising, Bonn would give "all possible help" to those seeking
to overthrow the Communist regime. He added that the gov-
arnment would not be satisfied with merely reuniting Germany
but would seek to re-establish Polish boundaries at the Curzon
line.
Comment Strauss frequently makes extreme state-
ments without official backing. The Curzon
line was the 1919 boundary between Russia and Poland. Strauss
apparently wants Germany to regain all the territory it lost to
Poland after World War II and to compensate Poland by re-
storing its territory taken by the Soviet Union.
The Bonn Foreign Ministry expert on East
Germany does not believe a revolt is likely to occur at this time.
Should it occur, Bonn would probably not intervene openly and
would attempt to check irresponsible elements of the West
German population.
9 Jan 57
Current Intelligence Bulletin Page 6
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Av. CONEWEIN11AL Aft
5, EGYPT AND SYRIA STEP UP CAMPAIGN TO GAIN
ISRAELI WITHDRAWAL FROM GAZA
Comment on:
Egypt and Syria are increasing their
efforts to force an Israeli withdrawal
from the Gaza strip. Cairo radio on
6 January quoted Nasr as stating that
if Israel refused to return Gaza to
Egypt, British and French vessels
would not be permitted to transit the
Suez Canal,
The Egyptian ambassador in Damascus
said on 4 January that Egypt might suspend clearance of
the canal if Israel remained in Gaza "unreasonably long!'
He said Cairo had no objection to Syria's position that re-
pair of the sabotaged Iraq Petroleum Company pumping
stations and a resumption of the flow of oil are dependent
on Israeli compliance with UN resolutions.
Ambassador Moose reports that Syria
intends to use the oil issue to create difficulties for the
United States and for Iraq. In answer to the ambassador's
question whether Syria is using the issue to exert pressure
on the United States, Prime Minister Asali stated that Syria
wants the United States to be "impartial" between the Arabs
and Israel. Asali asserted that the United States -could put
"irresistible" pressure on Israel to withdraw promptly. He
added that the pumping stations, even if repaired, could be
stopped later "if necessary!'
9 Jan 57
Current Intelligence Bulletin Page 7
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6. LAOTIAN PREMIER REPORTED TAKING ACTION AGAINST
ACTIVITY
Prime MinistSouvanna Phouma is dis-
turbed over reports of subversive activity
by Communists among the Chinese and
Vietnamese communities in Laos, and has
ordered Laotian police to suppress it,
The prime minister has
given orders to reorganize the Chinese school in Vientiane,
a base for Chinese Communist activity, under Laotian teach-
ers .
Comment
Many of the Chinese teachers in Vientiane
are Communist sympathizers, and several
groups of young Chinese students are reported to have left Laos
since June 1956 for study in Communist China.
The Laotian government's accommodation
of the Pathet Lao and Souvanna Phourna's visit to Peiping and
Hanoi in August have probably stimulated Communist activity
among the Overseas Chinese and Vietnamese. The new South
Vietnamese legation in Vientiane is atteznptilig to cOunter this
actiVity among the Vietnamese.
9 Jan 57
Current Intelligence Bulletin Page 8
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