CURRENT INTELLIGENCE BULLETIN - 1957/02/27

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03162001
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: February 27, 1957

rj7/7/#/010).A.M for Release:
3.3(h)(2)
3.5(c)
CURRENT
INTELLIGENCE
BULLETIN
27
February
1957
Copy No.
'
DATE'
AU 1:4-,
DAT REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
131
Tar SECRET
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CONTENTS
1. ARAB "SUMMIT' MEETING REPORTED PROCEEDING
SMOOTHLY (page 3).
h. EGYPTIAN FOREIGN MINISTER DEPRESSED OVER UN
DEVELOPMENTS (page 4).
93. ATTEMPTED SOVIET "SABOTAGE" OF POLISH ECONOMIC
MISSION TO US REPORTED (page 5).
/4. PEIPING PRUNES MILITARY SPENDING
(page 6).
411(5. HUNGARY INCREASES PRESSURE ON US LEGATION
(page 7).
O r6. ARRESTS OF INDONESIAN OPPOSITION LEADERS REPORTED
SCHEDULED FOR 28 FEBRUARY (page 8).
1'7. YEMEN PLANS GUERRILLA WARFARE IN ADEN PROTECTO-
RATE (page 9).
jV 8. EGYPT QUERIES COMMUNIST CHINA ON MILITARY EQUIP-
MENT (page 10)0
9. BONN CONSIDERING EARLIER ELECTIONS BECAUSE OF
CHRISTIAN DEMOCRATS' GROWING POPULARITY
(page 11)0
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1. ARAB "SUMMIT' MEETING REPORTED PROCEEDING
SMOOTHLY
The meetings of the four Arab chiefs of
state in Cairo on 25 February were con-
cerned mainly with the question of Israeli
withdrawal and the United States' reply
to the memorandum requesting clarifica-
tion of the American proposals on the
Middle East,
The talks reportedly were dominated by
King Saud, who made a full presentation of the discussions he
held with American officials, and by Nasr, who questioned
the king closely on the American attitude toward Israel.
"considerable unanimity" had been achieved, and
it was hoped to Issue a concluding communiqu�n 27 February.
the general tenor of the communiqu�o
be moderate and "favorable to the West."
King Saud himself informed Ambassador
Hare earlier that the initial two-hour meeting had been "very
successful," and that the outcome of the conference "looked
very favorable." Nasr has
said, 'We sent Saud as the Arabs` ambassador th Eisenhower;
he has returned as Eisenhower's ambassador to the Arabs."
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2. EGYPTIAN FOREIGN MINISTER DEPRESSED OVER
UN DEVELOPMENTS
Egyptian foreign minister Fawzi in-
formed Ambassador Hussein on 25
February that he had made reserva-
tions to leave the United States in the
next few days "if nothing new develops."
In reply to Hussein's suggestion that Nasr might not let 'him
leave, Fawzi said, "What am I going to say or do? I have
finished, I am tired, I am not able, I haven't vigor... one's
endeavors are like writing on water:'
In answer to Hussein's query over
developments in the UN, Fawzi stated, "They are trying
to find a legitimate way out so they do not have to under-
take sanctions." He added that even if a resolution benefi-
cial to Egypt were obtained, "immediately thereafter they
will issue resolutions, or will try to, on Aqaba, on Gaza...
they will start the squeeze one after the other."
Comment Fawzi seems particularly depressed
over his inability to obtain better rela-
tions with the United States. His pessimistic analysis of
the possible trend of developments, probably shared in Cairo,
is likely to increase Nasr's opposition to any compromise.
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3. ATTEMPTED SOVIET "SABOTAGE" OF POLISH
TO US REPORTED
Poland has had great difficulty circum-
venting "indirect Soviet sabotage" of its efforts to obtain
economic assistance from the United States.
The USSR hopes that the mis-
sion will fail, counting on a persistent belief in the United
States that Gomulka is still an uncompromising Communist.
American reaction to Titots planned visit,
has reinforced this hope.
Comment This is the first direct referenc
to Soviet "sabotage" in
connection with Western aid to Poland. Like other state-
ments by regime spokesmen stressing the critical need
for credits and supplies from the West, these remarks are
doubtless intended to encourage a responsive attitude in the
United States.
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4. PEIPING PRUNES MILITARY SPENDING
The director of the Rear Service Depart-
ment of the Chinese Communist armed
forces has announced that, in accord-
ance with the policy of reducing military
expenditures to provide funds for eco-
nomic c ns ruction, the 1957 operational fund for his depart-
ment would be cut by one third.
Comment This announcement does not establish
an across-the-board reduction for the
military forces, but may indicate that one will be made.
The Rear Service Department is the central supply organ
of the Chinese armed forces. A cut in military appropria-
tions for the year would be in keeping with a general paring
of Chinese Communist appropriations for 1957, except in
industrial construction projects, where Peiping hopes to
maintain last year's level of investment.
Last December party units in various
of the armed services launched austerity campaigns. The
party committee in the navy suggested that it was both
necessary and possible to reduce naval expenses, postpone
some naval construction prnipotq and gavp rnnney in support
of economic construction.
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5. HUNGARY INCREASES PRESSURE ON US LEGATION
Comment on:
The Hungarian government's demand
for the recall of American minister
Edward T. Wailes unless he immediately
presents his credentials to the Kadar re-
gime presumably is part of an increased
effort to isolate and discredit the Amer-
ican legation in Budapest. The arrest of
Hungarians leaving Western missions, at-
tacks on Cardinal Mindszenty now in asylum in the American
legation, and the continued attempt by regime newspapers to
connect American officials with the Hungarian revolution sug-
gest the possibility of a Stalinist-type show trial involving the
United States.
The request for Wailes' recall, in the form
of a note presented to American officials on 22 February,
termed his failure to present credentials since his arrival in
early November a "delay untenable in international law," and
asserted that Mr. Wailes was carrying on official activities
which "in their present form" were "irreconcilable with inter-
national practice!'
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6. ARRESTS OF INDONESIAN OPPOSITION LEADERS REPORTED
SCHEDULED FOR 28 FEBRUARY
The arrest of Indonesian leaders op-
posed to Sukarno's new concept of gov-
ernment is scheduled for 28 February,
according to Masjumi and Socialist
Party sources. Masjumi chairman
Natsir is ill and, without his leadership, the party is re-
ported confused and demoralized. The offices of the Mas-
jumi daily Abadi have been stoned.
The American ambassador in Djakarta
comments that whether the arrests are made or not, a
campaign to instill fear in the opposition is obviously al-
ready under way. It apparently began with the recent ar-
rest of rank-and-file Masjumi members by the government
and has now been taken over by student and guerrilla groups
under the direction of the Communist Party and other left-
ist elements. The campaign is having the effect of cowing
Moslem leaders, but it runs the risk of provoking retalia-
tory violence.
Comment Political parties opposed to Sukarno's
concept appear unlikely to attempt strong
resistance and Sukarno may not feel the necessity for wider-
spread arrests. Should the arrests be made, however,
counteraction probably would be limited to spontaneous and
isolated violence by anti-Communist youth and veteran groups.
Since the recent arrests and reassignments of its key anti-
Communist personnel, the army is not likely to take inde-
pendent action.
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7. YEMEN PLANS GUERRILLA WARFARE IN
ADEN PROTECTORATE
Comment on:
The Imam of Yemen recently outlined
his design for in-
creasing harassment of British authority
in Aden Protectorate. In the opinion of
the Imam, "guerrilla warfare is truly
more harmful to Aden than anything else:'
The Imam envisages a program of am-
bushes, hit-and-run raids, and terror which the British,
even with reinforcements, will be hard-pressed to combat
effectively. Such a terror campaign would probably also
aim at winning over restless tribesmen and intimidating
protectorate rulers who have treaty relations with Britain.
Against this background, Yemeni-
British contacts in London over possible talks to settle the
boundary dispute appear a Yemeni maneuver to gain time
and mislead the British.
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8, EGYPT QUERIES COMMUNIST CHINA ON
MILITARY EQUIPMENT
Comment
Egypt asked
for "further details"
on the performance and price of 57-
and 75-mm, recoilless rifles.
China manufactures such artillery
and probably has new and used stocks
which could be furnished to Egypt.
Egypt's diplomatic recognition of
Peiping last May stemmed largely from Noises desire to
keep an arms channel open in case of a UN arms embargo
to the Middle East. Last December China affirmed its
readiness to give "all possible aid and to supply Egypt with
equipment except for tanks and heavy arms."
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9. BONN CONSIDERING EARLIER ELECTIONS BECAUSE OF
CHRISTIAN DEMOCRATS' GROWING POPULARITY
The election for the West German
Bundestag may be held in July rather
than on 15 September, according to
Christian Democratic Union (CDU)
floor leader Rasner. He told the American embassy in
Bonn that a continuation of the rise in CDU popularity in
the next public opinion poll would favor the early date.
The final decision will be made by Chancellor Adenauer
on his return from his vacation about 17 March.
Comment The Federal Republic's constitution
empowers the government to hold these
elections on any Sunday or holiday between 9 July and 9 Oc-
tober.
The Social Democratic Party (SPD)
registered gains in opinion polls and local elections last
fall, but has now fallen behind the CDU. SPD leaders fear
the government's social legislation and Strauss' modified re-
armament program will leave the party no distinctive policy
with which to appeal to the voters.
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