CURRENT INTELLIGENCE BULLETIN - 1957/07/18

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169386
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: July 18, 1957

0/4
.050,
CURRENT
INTELLIGENCE
//,�; BULLETIN
/1/4,4 �
/rf
(00/
co,
../7z
//07/7/0007 A �
4APPmved for Releae: 2019/12/10 CO3169386
/4/
///
/4000;
-*04
18 July 1957
Copy No.
13C
3.5(c)
3.3(h)(2)
ISeic51.15
1%0TH: 1-11 70-2
DATE.
FiZVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
This document contains classified information affecting
the national security of the United States within the
meaning of the espionage laws, US Code Title 18, Sections
793, 794, and 798. The law prohibits its transmission
or the revelation of its contents in any manner to an un-
authorized person, as well as its use in any manner
prejudicial to the safety or interest of the United States
or for the benefit of any foreign government to the detri-
ment of the United States.
TOP ' ET
-4
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
V
11(
CONTENTS
. HEAVIEST SOVIET ARMS SHIPMENT TO DATE ARRIVES
IN YEMEN (page 3).
NASR REPORTEDLY PLANNING STATE OIL MONOPOLY
USING SOVIET AID (page 4).
. SAUDI ARABIA SEEKS PREFERENTIAL OIL AGREEMENT
FROM JAPAN (page 5).
111. PRAVDA GIVES LIMITED APPROVAL TO MAO'S TENETS
(page 6).
065. KADAR GOVERNMENT REMAINS FIRM AFTER MOSCOW
PURGES (page 7).
6, ATTEMPT TO KILL SUICARNO REPORTED SET FOR 20 JULY
(page 8).
6).7. MALAYAN CHIEF MINISTER MAKES NEW BID TO END
COMMUNIST TERRORISM page 9).
18 July 57
Current Intelligence Bulletin Page 2
TOP RET
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
IikRI1 A
1, HEAVIEST SOVIET ARMS SHIPMENT TO DATE
ARRIVES IN YEMEN
Comment on:
The two Soviet freighters which ar-
rived at the Yemeni port of Salif on
9 July have, like their predecessors
in May and June, unloaded heavy arms.
the deliveries ap-
parently comprise the largest Soviet arms shipment to date.
Major items observed include at least
20 sell-propelled guns presumed to be 100-mm. , twelve
T-34 medium tanks, at least fifty 76-mm. artillery pieces,
at least six armored personnel carriers, eight 122-mm.
artillery pieces, and 30 large trucks. Eleven very large
crates presumed to contain aircraft were seen on deck on
9 July, and on 11 July a total of 16 such crates
a battery of antiaircraft guns has been mounted on the ridge
behind Salif.
Most of the items are believed to be in
addition to the medium tanks, artillery, and seven IL-10
ground attack aircraft which were delivered previously. If
the installed antiaircraft battery is manned by trained per-
sonnel, who at this time would almost certainly have to be
non-Yemeni
18 July 57
Current Intelligence Bulletin Page 3
S ECK .T
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
ILI
2. NASR REPORTEDLY PLANNING STATE OIL MONOPOLY
USING SOVIET
President Nasr stated on 12 July that the
Egyptian government is planning to estab-
lish a new state-owned oil company which
is to have exclusive rights in Egypt for the
exploration, production, refining and marketing of oil,
The USSR has report�l3
agreed to supply technicians and machinery for the new com-
pany and will invest capital to supplement the proposed Egyp-
tian contribution of $2,800,000. Nasr also hopes to get a fleet
of tankers from the USSR to transport Egyptian and other Arab
oil. Nasr believes American com-
panies exploring existing concessions have located oil reserves
in Egypt without telling him, and added that American companies
will be excluded from all phases of Egyptian oil production.
Comment
The USSR has sought to play a larger role
in Middle East oil development over the
past year, and would welcome a foothold in Egypt, although the
oil-producing potential there is considered small and probably
capable of satisfying ortly Egypt's domestic needs.
18 July 57
Current Intelligence Bulletin Page 4
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
3, SAUDI ARABIA SEEKS PREFERENTIAL OIL
AGREEMENT FROM JAPAN
Comment on:
The representatives of a new Japa-
nese company which will undertake
petroleum exploration in Saudi Arabia
have been informed that Saudi Arabia
wants 55 rather than the customary 50
percent of the profits,
The Saudis have urged the Japanese
to conclude the agreement quickly.
18 July 57
Current Intelligence Bulletin
Page 5
TO1JECRET
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
Lj$J4511.IViiJ1L
4. PRAVDA GIVES LIMITED APPROVAL TO MAO'S TENETS
Comment on:
Pravda's editorial of 16 July is the first
authoritative Soviet endorsement of Mao
Tse-tung's "secret" speech of 27 Febru-
ary. Pravda admitted that Mao's speech
was "of great significance for Marxist-
Leninist theory in general," but accorded only limited recog-
nition to the validity of Mao's thesis on contradictions within
other countries of the bloc.
Pravda emphasized the applicability of
Mao's speech to China itself, calling it a "tremendous event
in the political life of China." Scattered Soviet references to
Mao's willingness to permit limited debate and criticism in
China have so far been designed to discourage emulation by
Soviet intellectuals and have attempted to avoid its application
to Soviet life by placing the USSR on a different level of his-
torical development.
Prior to its publication late last month,
Mao amended his speech to define the limits of debate in China.
This amendment, together with the regime's crackdown on
"rightist" critics, may have offset any Soviet concern that
Mao had gone too far. Khrushchev may now be attempting to
move the USSR to a closer accommodation of Chinese ideo
logical innovations following the purge of Molotov, who is be-
lieved to have been hostile to them. During his recent trip to
Czechoslovakia, Khrushchev said of China that it "never copies
or repeats anything and does everything on the basis of Marx-
ist-Leninist teaching, but everything in China is done in a
Chinese way."
18 July 57
Current Intelligence Bulletin Page 6
CON}WKNTL4L
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
COAT AL �11�
5. KADAR GOVERNMENT REMAINS FIRM AFTER
MOSCOW PURGES
The American legation in Budapest be-
lieves the primary short-term effect
of the Moscow shift will be to strengthen
the Kadar elements of the Hungarian So-
cialist Workers' (Communist) Party.
Kadar and his cohorts quickly recovered from their confu-
sion and issued assurances that there would be no immediate
policy shift in Hungary. Subsequent attacks on Jozsef Revai,
the Stalinist ideologist who was reinstated4On the central com-
mittee at the national party conference held 27-29 June, sug-
gest that some high Stalinists may be removed. The embassy
believes, however, that Kadar will continue to restrain the
more liberal wing of the party.
Comment In a statement reported in Budapest news-
papers on 13 July, Soviet Party First Sec-
retary Khrushchev declared that he had "recently" met Kadar
and "saw with pleasure that he is in good health," which sug-
gests that Kadar may have conferred with Khrushchev in Czecho-
slovakia. A 4 July announcement stated that Kadar was "on vaca-
tion" but did not specify the locale. These remarks and Khru-
shchev's recent commendation of Kadar for restoring order in
Hungary are obviously designed to reassure Hungarian party
members that Kadar is in no danger as a result of the Kremlin
shake-up.
18 July 57 Current Intelligence Bulletin
Page 7
CON1LI7cTTAL
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
LItL I
6. ATTEMPT TO KILL SUKARNO REPORTED SET
FOR 20 JULY
Reference
plans have now been tentatively set to am-
bush President Sukarno on 20 July when he
is due to return from a trip to Borneo.
assassination
of Sukarno would lead to a breakdown of law and order, in which
leftist elements would play a prominent role, since,according to
to the source,the would-be assassins have no clear idea of who
would replace Sukarno,
Colonel Lubis, the former acting chief of staff and instigator
of an abortive coup in November 1956, as the leading figure in
a plot to assassinate the President.
18 July 57
Current Intelligence Bulletin
Page 8
S T
Approved for Release: 2019/12/10 C03169386
Approved for Release: 2019/12/10 C03169386
E t
7. MALAYAN CHIEF MINISTER MAKES NEW BID TO END
COMMUNIST TERRORISM
Comment on:
conce'rtecreffort to bring about an early
end of Communist terrorism in Malaya ap-
pears to have been touched off by a 14 July
speech by Chief Minister Rahman in which
he declared that all available resources would
be used to end the emergency by the close of 1958. So far the
effort has been mostly psychological. Two small new areas have
been declared free of terrorists, and a renewed offer of amnesty
has been extended to one small group of terrorists still operat-
ing near Kuala Lumpur.
Of considerably greater significance is Rah-
man's public statement on 15 July that he is willing to have another
meeting with Communist leader Chin Peng and that he believes
Chin will contact him in the near future. Rahman feels that,
with independence virtually achieved, he is in a strong position
to negotiate a settlement with a minimum of concessions to the
increasingly hard-pressed and isolated terrorists, who now num-
ber less than 2,000. For their part, the Communists have indi-
cated a growing desire to leave the jungle and concentrate on
"peaceful" subversion.
The most propitious time for another meet-
ing would seem to be soon after Malaya achieves independence
next month. There is still, however, a wide divergence between
Rahman% insistence on "complete surrender" and Chin Peng's
demands for recognition of the Malayan Communist Party and
guarantees against detention or investigation of those terrorists
who lay down their arms.
18 July 57
Current Intelligence Bulletin
Page 9
ET
Approved for Release: 2019/12/10 C03169386