CURRENT INTELLIGENCE BULLETIN - 1957/01/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03161972
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: January 8, 1957

,Approved for Release: 2019/12/04 C03161972.
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CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2)
3.5(c) 8 January 1957
Copy No,
131
1 DOCUMENT NO.
NO CHANGE IN CLASS.
I I DECLASSIFIED
CLASS. CHANGED TO: IS S 4:44
NEXT REVIEW DATE:
"'TNT
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AUTH: HR 70-2
D ATIVZ .11, REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
07, , 719P SECRET
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CONTENTS
1. SOVIET-SATELLITE COMMUNIQUE AFFIRMS TOUGHER
SOVIET POLICY TOWARD EASTERN EUROPE
(page 3).
2. SUPREME SOVIET TO MEET SOON IN MOSCOW
(page 5).
3. SITUATION IN INDONESIA
(page 6).
4. PEIPING RENEWS OFFER OF ECONOMIC AID TO LAOS
(page 8).
5. COMMUNIST INFLUENCE GAINS AMONG CHINESE IN
CAMBODIA (page 9).
6, NEW PHILIPPINE POLITICAL PARTY PLANNED BY RECTO
(page 10).
7. TURKEYS WHEAT FAMINE TO BECOME WORSE IN 1957
(page 11).
8 Jan 57
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1. SOVIET-SATELLITE COMMUNIQUE AFFIRMS TOUGHER
SOVIET POLICY TOWARD EASTERN EUROPE
The communiqu�igned by leaders of
the USSR, Hungary, Czechoslovakia,
Rumania and Bulgaria and published by
Moscow on 6 January reflects the Soviet
Union's intent to strengthen its control
over its Eastern European Satellites. Together with the
subsequent declaration of the Hungarian government, the
communiqu�lso indicates that Soviet policy toward Hun-
gary will now be based on the principles which govern its
relations with all of the orthodox Satellite states, leaving
Poland in a unique category.
The Hungarian government statement of
6 January introduced a tough internal policy under the firm
control of the "proletarian dictatorship" and a foreign policy
which calls for closer economic and political allegiance to
the USSR. Prospects for a coalition government, worker
council industrial management and full national sovereignty
have disappeared; domestic policy as a whole now does not
appear to differ in principle from the policies of the other
Satellite states.
The Hungarian government's pronounce-
ment and the Communist communiqu�ollowed three days of
conversations in Budapest concerning Hungary but including
questions dealing with the international situation and the alleged
efforts of the West to renew the cold war. This high-level meet-
ing with several Soviet Satellites is a departure from previous
post-Stalin practices and is a direct slap at the announced Yugo-
slav-Polish position that relations between Communist parties
should be conducted on a bilateral basis. Polish circles al-
ready feat possible Soviet attempts to isolate Warsaw from its
contacts with Yugoslavia.
The omission of representatives from na-
tional Communist Poland and from highly orthodox East Germany
8 Jan 57
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N. -CONFIDENTIAL-
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and Albania was not explained. Poland, however, is known
to disagree both with general Soviet policy toward the Satel-
lites and specifically with Soviet policy toward Hungary.
Malenkov'F.; participation in the meeting
reflects an improvement in his status
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2. SUPREME SOVIET TO MEET SOON IN MOSCOW
The Supreme Soviet is expected to meet
at the end of January or beginning of
February, when it will consider the 1957
budget, according to recent statements
made to Western ambassadors by Foreign
Minister Shepilov and Alexander Gorkin,
secretary of the Supreme Soviet's Presidium.
Shepilov stated that the session would also
deal with "changes" in the Sixth Five-Year
Plan 1 � 5 forecast by the recent central committee plenum.
premiers
vukhin, on
powers in
functions.
Comment
Gorkin explained the assignment of deputy
to the planning commission, headed by Mikhail Per-
the ground that the commission would have executive
allocating funds and resources as well as planning
Apparently the Pervukhin committee is ex-
pected to have made the broad decisions
regarding the Sixth Five-Year Plan necessary to permit draft-
ing a 1957 budget by the end of this month. The budget itself
will show any major changes being made in the Sixth Plan in
housing and consumer goods, investment, and overt military
spending.
The extraordinary powers granted the plan-
ning commission, together with the assignment of high-level
administrators as deputies, confirm earlier indications of
Pervukhin's increasing authority. He may now be the fourth
or fifth ranking member in the top leadership.
8 Jan 57
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3. SITUATION IN INDONESIA
Rebel commander Colonel Simbolon,
who ignored a government ultimatum
for his surrender on 5 January, re-
portedly has set up headquarters and
is strengthening his position at the
village of Balige in the interior of
North Sumatra.
MEDAN�
BALIGE.
PADANG
SUMATRA
UNCLASSIFIED
7 JANUARY 1957
0 1?0 210 300 400
MILES
DJAMBI e
PALEMBANG �
DJAKARTA
7 0107 -4
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Major Samosir, a regimental com-
mander believed loyal to Simbolon, is reported en route
to Djakarta, possibly to try to arrange a meeting between
Colonel Simbolon and President Sukarno. Meanwhile, fight-
ing between Simbolon and government units now appears less
likely than between Simbolon's forces and Communist groups
armed by the regimental commander at Siantar.
The problem of federalism versus cen-
tralism lies at the root of the dissidence in Sumatra, and a
prominent member of the Masjumi has told an American em-
bassy official that Sumatran events indicate that a unitary
state can no longer be maintained in Indonesia. He further
stated that the Masjumi was 'working for a form of federalism
"like that in the United States!'
8 Jan 57
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CONFID-ENTIAL
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4. PEIPING RENEWS OFFER OF ECONOMIC AID TO LAOS
During the first week in January, the
Chinese Communists offered to provide
economic aid to Laos,
The Chinese are said
to prefer that Laotian premier Souvanna Phouma request such
aid officially through the Indian embassy in Peiping.
Comment The Chinese Communists offered Souvanna
economic aid when he was in Peiping last
summer. Although Souvanna side-stepped the issue, he left
the door open for acceptance of such aid in the future.
Peiping's renewal of its offer at this time
is probably intended to assure Souvanna that Communist aid
will be forthcoming should the US withdraw its economic as-
sistance as a result of the Laotian premier's determination to
implement his policy of co-operation with the Pathet Lao.
8 Jan 57
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5. COMMUNIST INFLUENCE GAINS AMONG CHINESE
IN CAMBODIA
The Communist take-over of powerful
Overseas Chinese social organizations
as well as Chinese schools in Cambodia
has accelerated in recent weeks, the
American embassy in Phnom Penh re-
ports. E lections held recently by several of these groups
throughout Cambodia have resulted in Communist control,
usually by landslide votes. The influence of Chinese Nation-
alist adherents in Cambodia has declined to a new low, al-
though a leader of the anti-Communist groups believes that
approximately 30 percent of the local Chinese students
could still be denied to Communist control if appropriate
textbooks were made available.
Comment The Communists are exploiting Prince
Sihanouk's deference toward Peiping in
order to circumvent the Cambodian government's attempt to
suppress political activity among the Overseas Chinese.
The "hero"s welcome" accorded Chou
En-lai last November gave strong impetus to the pro-Peiping
drift among the approximately 250,000 Overseas Chinese in
Cambodia. The increasing economic ties between Phnom
Penh and Peiping are also a significant factor in the drift
toward the Communists.
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6. NEW PHILIPPINE POLITICAL PARTY PLANNED
BY RECTO
Comment on:
Senator Claro Recto's announcement
that he has completed plans for the
formation of a new Philippine political
party to contest the 1957 presidential
elections would appear to foreshadow a
general political realignment which will more clearly sep-
arate Recto's supporters from the backers of President
Magsaysay.
A new party is necessary, according
to Recto, because present leaders of the ruling Nacion-
alista Party have "forsaken" the party's "original princi-
ples:' The senator's party will probably be advertised as
standing for sovereignty, independence and pride of race.
It can be expected to attract support from extreme nation-
alist and "old-guard" forces in the Nacionalista Party, the
"sugar bloc" interests opposing Magsaysay's economic
policies, and such other antiadministration forces as Sena-
tor Tanada's Citizens' Party.
President Magsaysay, meanwhile, is known
to be working for a coalition between his own Nacionalista sup-
porters and the opposition Liberal Party. He has informed the
American charge in Manila that he expects a declaration of
support from the Liberals within two weeks.
8 Jan 57
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7. TURKEY'S WHEAT FAMINE To BECOME WORSE IN 1957
Turkey's wheat crop this year will prob-
ably be the worst in many years, accord-
ing to American agricultural specialists
in Turkey. Because of continuing seri-
ous drought conditions in the Central
elt, only half the normal acreage in wheat
has been planted, much of which will probably be unproduc-
tive. The poor cereal crops during the past three years have
raised questions concerning Turkey's ability to grow wheat on
the scale the government has planned.
American officials estimate that Turkey
will have to import nearly 1,000,000 tons of wheat on an emer-
gency basis between July 1957 and July 1958. This amount will
be in addition to the 600,000 tons already requested from the
�United States during the first half of 1957.
8 Jan 57
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