CURRENT INTELLIGENCE BULLETIN - 1957/07/26

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169396
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: July 26, 1957

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CURRENT
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26 July 1957
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REVIEWER.:
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.
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CONTENTS
REBEL-
V-712. SYRIAN MISSION TO MOSCOW
"iiVi (page 4).
TITO
t) � EJECTS KHRUSHCHEV INVITATION TO MOSCOW
(page 5).
44. COMPANIES ARGENTINA r.TTT,F,S AGAINST TWO EUROPEAN ELECTRIC
(page 6).
POSSIBLE REVOLUTIONARY ATTEMPT IN CUBA
1� (page 7).
011
FRENCH FOREIGN MINISTRY OFFICIAL SEES EUROPEAN
SECURITY MAIN ISSUE IN LONDON TALKS (page 8).
AA 7. JAPAN FEARS INVOLVEMENT IN POSSIBLE MILITARY
ACTION IN KOREA (page 9)0
BURMA REPORTEDLY RECEIVES CZECH ARMS OFFER
(page 10).
-0.9. NEW CONSIGNMENT OF SYRIAN AMMUNITION AWAITING
t" SHIPMENT TO ALGERIA (page 11)0
.\1.0. PEIPING PROTESTS BRITISH MOVES IN HONG KONG
(page 12).
ANNEX--Conclusions of the Watch Report of the Intelligence
Advisory Committee
(page 13).
26 July 57
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1.
REBELLION IN OMAN
the Sultan of Muscat's field force,
the 400-man Oman Regiment, had been out-
maneuvered by the rebel leaders in Inner
Oman; some of the Sultan's men had deserted
and presumably defected to the rebels. The remainder of the
Sultan's force could not be committed to a serious engagement
without complete reindoctrination. The Sultan thus was said
to have no effective force which could be used in the interior.
The rebel military commander, Talib ibn Ali, brother of the
rebellious Imam of Inner Oman, has reportedly shown unex-
pected tactical skill and is said to be moving about the interior
rousing the tribes.
Comment
26 July 57
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2. SYRIAN MISSION TO MOSCOW
The Syrian mission to Moscow headed
by Minister of Defense Azm and Chief
of Staff Nizam ad-Din is there to con-
duct economic talks, according to Mos-
cow Radio. Another Moscow broadcast
in Arabic said Public Works Minister
Kayyali is a member of the delegation.
An official of the Syrian Foreign Min-
istry informed the American embassy
on 22 July that the mission would seek a "stretch-out" on
arms payments.
the Syrian budgetary situation is critical.
40 percent of the budget cannot be covered
by revenue and within three months the government will be
unable to pay its employees. In light of these circumstances
Syrian leftists might well ask the Soviet Union for some kind
of financial help.
26 July 57
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3. TITO REJECTS KHRUSHCHEV INVITATION TO MOSCOW
Marshal Tito, declaring that he will not
"join the parade" to the Kremlin, has
flatly rejected an invitation extended last
week by Khrushchev to visit Moscow,
he does not expect more than outwardly normal
state relations with Moscow and anticipates a continuation of
Soviet ideological attacks against the Yugoslav party.
Tito said he intends to be cautious with Khru-
shchev since there is still more than one faction in the presid-
ium and stability of the present ruling group is not entirely
certain. In any event, Tito stated, Khrushchev is impulsive
and must be carefully watched.
The return to Yugoslavia on 23 July of
Micunovic, the Yugoslav ambassador to Moscow, for a three-
or four-week vacation also suggests that Belgrade does not
foresee any immediate startling developments in Yugoslav-
Soviet relations.
26 July 57
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4. ARGENTINA RULES AGAINST TWO EUROPEAN
ELECTRIC COMPANIES
Argentina on 24 July nullified two
municipal ordinances extending the
concessions of two European-owned
electric power companies. As a re-
sult, the Belgian-controlled conces-
sion (CADE) will expire on 31 Decem-
er l97, and the Italian-Swiss concession (ITALO) will
expire on 31 December 1962.
The decree also provides for imme-
diate government control of CADE, which is charged with
inefficient service and with violating its 1907 concession.
According to the Ministry of Industry and Commerce, the
decree was based on the report of a national advisory com-
mission appointed last April to investigate the legitimacy
of the extensions of these concessions.
Comment The 'concession extensions have been
under sharp attack for over 16 years,
with objective observers inclined to believe that graft was
involved. The government apparently timed the announce-
ment to gain political advantage in the 28 July constituent
assembly elections--as suggested by concurrent praise in
the press for the state's own operation of the oil fields. The
government apparently hopes that adverse foreign reaction
will be diluted by its declarations favorable to foreign invest-
ment in power development, as well as by its announcement
that the dispute over private versus public power will be set-
tled by the constituent assembly and the next elected govern-
ment.
26 July 57
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5. POSSIBLE REVOLUTIONARY ATTEMPT IN CUBA
Comment on:
Fidel Castro is rumored to be planning
action against the government of Cuban
President Fulgencio Batista, and some
spokesmen for the rebels have predicted
26 July as the target date. Castro has
urged a 15-minute "general strike" on
that day.
Castro has said that his plan of action calls
for the capture of an important city in Oriente Province--pos-
sibly Santiago de Cuba--with the hope that such an action will
spark an island-wide revolt. The possibility that Castro will
strike 'soon was strengthened on 20 July by his publication of a
manifesto calling for the ousting of Batista. by a civilian provi-
sional president charged with holding general elections as soon
as possible.
Support for Castro's movement is widespread
throughout Oriente Province, where he has maintained revolu-
tionary headquarters since last November. Although not all the
political opposition supports Castro, some political leaders and
respected business and civic figures throughout Cuba are known
to sympathize with his movement. He has little, if any, back-
ing among the military, however, and Batista can weather al-
most any storm with the support of the army.
26 July 57
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6. FRENCH FOREIGN MINISTRY OFFICIAL SEES EUROPEAN
SECURITY MAIN ISSUE IN LONDON TALKS
A high-ranking French Foreign Ministry
official, commenting on differences in
opinion on disarmament between the min-
istry and French UN Disarmament Sub-
committee D le ate Jules Moch, described European secu-
rity as "the issue actually at stake" in the London disarma-
ment talks. He also stated that the French regarded as un-
satisfactory a situation in which France would be completely
dependent on another nation for atomic capability, but ad-
mitted the NATO stockpile idea went far to meet this concern.
Comment The Foreign Ministry official's comments
suggest that French efforts in the London
talks will henceforth be directed at avoiding any development
which could embarrass Chancellor Adenauer's electoral pros-
pects. French-West German relations are now unusually cor-
dial, but France fears that a future German government might
make a deal with the Soviet Union.
Moch differs with the Bourges-Maunoury
government and the Foreign Ministry not only in his willing-
ness to accept a partial disarmament agreement excluding
French manufacture of atomic weapons but also in his approach
to European security, particularly the German problem.
26 July 57
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A
7. JAPAN FEARS INV T.ATVAAW.hirr ThT13CISCHAT.F. NITETTARIT
itpaufse Prime Minister Kishi, as a
esult of talks in Washington on the mil-
tary situation in Korea, fears that res-
toration of friendly relations with Seoul
could lead to Japanese involvement in future military activ-
ity in Korea,
the Foreign Relations
Committee of the Japanese Diet to re-examine the advisability
of seeking an early agreement with South Korea. The com-
mittee reportedly shares that an "arm's-length"
policy toward Korea is best for the time being. It is expected
to give its final recommendation early in August�
Comment The Japanese are extremely fearful that
the US-Japanese security treaty, which
permits the use of US forces and bases in Japan for military
purposes in other FarEs1ern areas, will involve them in hos-
tilities involuntarily. may intend to use this argument to
continue his criticismLortne security treaty as well as to lend
emphasis to his previous assertion that Japan will not make
further concessions to achieve agreement with South Korea.
In any event, Rhee will probably continue
to obstruct any move toward friendly relations between Japan
and South Korea.
26 July 57
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8. BURMA REPORTEDLY RECEIVES CZECH ARMS OFFER
Comment on:
Czech trade representatives in Burma
have offered to deliver Soviet-type mil-
itary equipment to Burma to be paid for
in rice at an "advantageous price," ac-
cording to press reports. The equipment
offered includes jet aircraft, artillery, light arms, and per-
haps even a small-arms factory. Burma might be allowed to
use its $17,500,000 trade balance with the USSR, and pay the
rest through a long-term credit arrangement.
As reported, the Czech terms would be
highly attractive to the Burmese, who need additional arms
to implement Prime Minister U Nu's intention to place in-
creased emphasis on the restoration of law and order in the
new Four-Year Plan.
26 July 57
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9� NEW CONSIGNMENT OF SYRIAN AMMUNITION
AWAITING SHIPMENT TO ALGERIA
Comment
Syria last summer promised and ap-
parently dispatched to Egypt twelve
tons of munitions for the Algerian rebels. Another ship-
ment, consisting of 4,000,000 rounds of ammunition and
75 machine guns, reportedly cleared Latakia en route to
Alexandria on 17 April of this year.
26 July 57
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10. PEIPING PROTESTS BRITISH MOVES IN .
HONG KONG
Comment on:
In its third official protest in a month
involving Hong Kong, Peiping delivered
a note to the British charg�n Peiping
on 24 July protesting the action of the
Hong Kong government in evicting some
200,000 Chinese residents from areas near Kaitak airfield.
The note states that the "forcible evictions" and destruction
of homes in ten villages north of Kaitak violate the "tradi-
tional rights" of Chinese, and that Hong Kong authorities will
be held accountable for all consequences.
The recent protests suggest the Chinese
Communists are intent on compiling a record to use in some
future campaign against the British that shows Peiping as
champion of Chinese residents in Hong Kong. They also could
be aimed at supporting Chinese Communist suggestions that
Peiping be represented in Hong Kong by a commissioner.
The Hong Kong government is engaged in
an extensive resettlement and development program to provide
improved housing for the more than 300,000 Chinese slum
dwellers. The Communists have exploited the temporary dis-
ruption caused by this program, and probably will make sim-
ilar use of the plan to enlarge Kaitak airfield, to fan uneasiness
among Chinese residents and, perhaps, to create incidents.
26 July 57
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01140, I 111� NECKET mak
ANNEX
Watch Report 364, 25 July 1957
of the
Intelligence Advisory Committee
Conclusions on Indications of Hostilities
On the basis of findings by its Watch Committee, the Intel-
ligence Advisory Committee concludes that:
A. No Sino-Soviet bloc country intends to initiate hostilities
against the continental US or its possessions in the imme-
diate future.
B. No Sino-Soviet bloc country intends to initiate hostilities
against US forces abroad, US allies or areas peripheral
to the orbit in the immediate future.
Co Early deliberate initiation of hostilities by Israel or the
Arab states is not probable. Although tensions continue
between the Arab states and Israel and among certain
Arab states themselves, these are not likely to lead to
serious conflict in the immediate future.
26 July 57
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