CURRENT INTELLIGENCE BULLETIN - 1957/03/05

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03162006
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: March 5, 1957

r/ e Approved for Release: 2019/12/04 C03162006
CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2) 4
3.5(c) r/
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5 March 1957 Irf
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Copy No..131
DOCUMENT NO -I
NO CHANGE IN CLASS. )0
I I DECLASSIFIED
CLASS. CHANGED TO: TS S
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ADUTH
ATE
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
'REVIEWER:
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CONTENTS
SAUDIS FEAR COMPETITION FROM ISRAELI PIPELINE
(page 3).
\A (
2. SUKARN077 INDONESIAN COMMUNIST TIES WITH
MOSCOW page 4).
\V
3. ISRAELI GOVERNMENT CRISIS
(page 5).
4. BRITAIN WILL GIVE IRAQ FIVE HUNTER MARK VI JET
FIGHTERS (page 6).
5. BULGANIN COMMENTS ON ADENAUER LETTER
(page 7).
5 Mar 57
Current Intelligence Bulletin Page 2
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404
1. SAUDIS FEAR COMPETITION FROM ISRAELI PIPELINE
Comment on:
An important consideration behind King
Saudis recent firm opposition to free
transit through the Gulf of Aqaba is fear
that oil passing through the pipeline
planned by Israel from Eilat to the Mediterranean would
have a competitive advantage over Saudi oil carried through
the Suez Canal,
The Saudi finance minister is said to
fear that such a pipeline might deliver oil to the Mediter-
ranean at a price below that of oil carried through the canal.
Since Saudi Arabia could not allow its oil to use an Israeli
pipeline, competitive oil producers such as Kuwait and Iran
would be placed at an advantage. Such competition from Israel
could force Egypt to reduce canal tolls. Should an Israeli pipe-
line become established, moreover, the Saudis fear it would
become a political weapon which Israel could use to assure in-
ternational support of Israel.
5 Mar 57
Current Intelligence Bulletin Page 3
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2. SUKARNO DOUBTS INDONESIAN COMMUNIST TIES
WITH MOSCOW
President Sukarno told the American
ambassador on 2 March that he believed
he could convince the Indonesian Commu-
nists--"by bringing them to the Indo-
nesian family table"--that in the long run they must be Indo-
nesians first and break any connection "they might have" with
Moscow and Peiping. He referred to the public statement of
the Indonesian Communist Party (PKI) secretary general on
28 February that the Comintern had been abolished and that
the party sought nationalism "in its purpose and aim:' In this
connection Sukarno cited Mao Tse-tung, whom he considers
free of Moscow's influence.
Sukarno said that if at any time he had evi-
dence that the PI I was taking orders from Moscow or working
for Soviet and Chinese rather than Indonesian interests, he
would crush it as he had at IvI:adiun in 1948. Speaking of for-
eign connections, he said he regarded the Darul Islam, a fa-
natical Moslem organization, as much a foreign-controlled
movement as the American ambassador regards the Commu-
nist Party.
Comment Sukarno continues to insist that Indonesia's
domestic problems can be solved only by his
own direction of a government in which all major parties par-
ticipate. He thus continues to demand Communist participa-
tion in the government in the interest of Indonesian "unity:'
Former vice president Hatta stated on 2
March that Sukarno's concept of government is "a view of a
dream world" and will only lead to further conflict. Sukarno
believes that the Darul Islam is manipulated and materially
supported by the Dutch with a view to undermining the Indone-
sian revolution.
5 Mar 57
Current Intelligence Bulletin Page 4
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3. ISRAELI GOVERNMENT CRISIS
"Activist" elements inside and outside
the present coalition cabinet are attempt-
ing to make political capital from the
announcement that Israeli forces will
withdraw from Gaza and Sharm al-Shaikh.
Even should the left-wing parties, Achdut Haavoda and Mapam,
leave the coalition, Ben-Gurion would still command a bare
majority of 61 of the 120 members of parliament, although he
would have to rely on five Arab members affiliated with his
own party. The prime minister might raise his majority by
making a deal with the Agudat religious group which is rela-
tively uninterested in foreign affairs, or even with the eco-
nomically conservative General Zionists.
The pressures on Ben-Gurion indicate,
however, that in announcing a withdrawal based on "assump-
tions" regarding the future actions of other powers rather
than on ironclad public guarantees, he has probably stretched
his domestic political credit to the limit. While earlier "mass
demonstrations" against withdrawal almost certainly were in-
spired by the government, the student rioting reported on 4
March and the demonstrations organized by the "activist" Herut
and Achdut Haavoda partisans probably are genuine expressions
of intense disappointment and frustration.
5 Mar 57
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V
4. BRITAIN WILL GIVE IRAQ FIVE HUNTER MARK VI
JET FIGHTERS
Britain will glye Iraq five Hunter Mark VI
jet fightersragether with spare parts
worth approximately $2,000,000.
Iraq wants Britain to assume responsibility for
the improvements at Habbaniyah airfield required for these
planes, which are expected to be ready for delivery about April.
The British are seeking an arrangement for bringing additional
technical personnel into Iraq for maintenance and instruction
for a two-year period.
Comment The gift of these planes, which follows
nearly a year of unsuccessful negotiations
for sale of Hunters to Iraq, closely follows Britain's agree-
ment to guarantee a $56,000,000 Iraq Petroleum Company loan
to Baghdad and is evidently a further move in Britain's effort
to mend its ties with Iraq.
These planes will be the first up-to-date
high-performance jet aircraft to be added to Iraq's 28-jet air
force made up of Venoms and Vampires. There is already a
British training mission in Iraq.
5 Mar 57
Current Intelligence Bulletin Page 6
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5. BULGANIN COMMENTS ON ADENAUER LETTER
Soviet premier Bulganines reaction to
Chancellor Adenauer's reply to the
Bulganin letter of 5 February clearly
indicates that there has been no modifi-
cation of Soviet policy on the basic issues between the two
countries. According to the West German ambassador in
Moscow, Bulganin maintained the Soviet position on the ex-
istence of two German states and the necessity for direct
negotiations between the two on the question of reunification.
Bulganin ignored the German position
that progress on expansion of trade relations was intimately
connected with the satisfactory solution of the problem of
repatriation of German citizens still in the USSR The Soviet
premier stated that the solution of the repatriation problem
depended to a large degree on the development of "normal
and friendly" relations between Bonn and Moscow. Bulganin
emphasized that what was needed was a "decisive turn" in
Soviet-West German relations, although he did not elaborate
on how this was to be brought about beyond the statements in
his 5 February message to Adenauer.
Bulganin's avoidance of references to
West German remilitarization, NATO membership, or the
European Common Market reflects the Soviet line during the
German election year of stressing the favorable prospects
for improving West German-Soviet relations
Pravda on 3 March criticized Chancellor
Adenauerts note, charging that Adenauer was still ignoring
the existence of East Germany, Pravda stated that "the re-
patriation of German war prisoners from the Soviet Union has
been fully completed;' and that regular contacts are continuing
between the two countries on the repatriation of Soviet and
German civilians.
5 Mar 57
Current Intelligence Bulletin Page 7
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