CURRENT INTELLIGENCE BULLETIN - 1957/08/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169405
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: August 1, 1957

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1 August 1957
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CURRENT
INTELLIGENCE
BULLETIN
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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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
KEY MAY EXPAND ECONOMIC RELATIONS WITH
USSR
(page 3).
r .2� LATEST REMARKS BY ZHUKOV REPORTED
(page 4).
-;3. NEW INTERNATIONAL COMMUNIST ORGANIZATION RE-
I
PORTEDLY BEING ESTABLISHED (page 5).
04. USSR REPORTEDLY OFFERS SYRIA LARGE LOAN
(page 6).
5. USSR TO PROVIDE FURTHER TECHNICAL AID TO AFGHANI-
STAN (page 7).
6. IRANIAN PRIME MINISTER LOSES SHAH'S CONFIDENCE
(page 8).
m/ 7. CZECHOSLOVAKIA OFFERS INVESTMENT TO PREVENT
CLOSING OF LEGATION IN LIMA (page 9).
)4. OUSTER OF PRO-COMMUNIST OKINAWAN MAYOR SEEN IN
- DOUBT (page 10).
1 Aug 57
Current Intelligence Bulletin Page 2
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1. TURKEY MAY EXPAND ECONOMIC RELATIONS
WITH USSR
Comment on:
The Turkish official in charge of
.Soviet affairs in the Foreign Ministry
reportedly stated on 27 July that his
government has embarked on a pro-
gram leading to more extensive
economic relations with the USSR.
coincides with the return to
Istanbul of a bank delegation which
spent nearly two months in the USSR
visiting induistrial centers. The delegation reportedly
negotiated an agreement under which the USSR will in-
stall a glass factory in Turkey and initiated discus-
sions which may also lead to the building of a chemical
factory by Russian technicians.
In a recent conversation with the
American ambassador in Ankara, Prime Minister
Menderes implied that Turkey's coolness toward the
USSR might be modified. Menderes may be attempt-
ing to increase his bargaining position with the
United States regarding both Turkey's demands for
settlement of the Cyprus problem and requests for
additional economic aid.
The prime minister would probably
approve limited commercial deals with the USSR if
they provided some relief for Turkey's economic
difficulties.
1 Aug 57
Current Intelligence Bulletin Page 3
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2. LATEST REMARKS BY ZHUKOV REPORTED
at the 29 July reception for
the Afghan King, Soviet Defense Minister
Zhukov expressed great pessimism as
to the outcome of the disarmament discussions. He said the
greatest difficulty lay in the Western concept that to counter-
balance greater Soviet manpower the Western powers had to
keep atomic weapons. On the subject of inspection, Zhukov
declared he was prepared to open up the entire Soviet Union.
Zhukov's
price appeared to be opening up all the rest of the world to
Soviet inspection.
Zhukov ap-
peared extremely sell -confident and seemed to desire to give
the impression that he was second only to Khrushchev.
1 Aug 57
Current Intelligence Bulletin Page 4
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3. NEW INTERNATIONAL COMMUNIST ORGANIZATION
REPORTEDLY BEING ESTABLISHED
a "bureau of
coordination of ties with Communist
parties" has been organized by presidium
member Suslov in Prague. It will issue
a publication, which may be called the
International Herald of Politics and Eco-
nomics. Mme. Yekaterina
Furtseva had recently explained the need for such a bureau
to Moscow University students.
Comment
There have been frequent rumors that some
new international Communist organization
will be formed and that it may publish a journal, as proposed by
the Czechoslovak Communists. Until now the project appears to
have been blocked by other parties, such as the Polish and Ital-
ian.
1 Aug 57
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4. USSR REPORTEDLY OFFERS SYRIA LARGE LOAN
The USSR has agreed to lend Syria
$112,000,000 including funds for Syrian
development projects, according to the
authoritative leftist newspaper Rai al-Am
in Damascus on 31 July. The Syrian dele-
gation headed by Defense Minister Khalid
al-Azm which is now in Moscow reportedly
will sign the agreement on 3 August. The
loan will be repayable within 10 years.
Azm said that "Syria is confident that its economy is sound.
It sought no grants but purchased without conditions." The
agreement reportedly will include a reduction or cancellation
of arm.i payments. '
Comment A report the same day by another Syrian
newspaper that the projects included chem-
ical plants, railway equipment, and a radio station may be in-
tended to camouflage cash loans, which Syria badly needs but
would be reluctant to see publicized.
1 Aug 57
Current Intelligence Bulletin Page 6
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5. USSR TO PROVIDE FURTHER TECHNICAL AID
TO AFGHANISTAN
While the communiqu�ssued on 30 July
at the end of King Zahir Shah's visit to the
USSR was confined to generalities, a sep-
arate announcement the same day reveals
that the USSR will extend further economic
aid to Afghanistan. The USSR will assist Afghanistan with oil
prospecting in the northern regions and will also train Afghan
technical personnel. The two sides agree to cooperate in ex-
ploitation of frontier waterways and, in principle, to conclude
a treaty for administration of the Soviet-Afghan border.
The USSR made every effort to convince the
King of the sincerity of Soviet support for Afghan neutrality. The
border agreements are comparable to those offered by the USSR
to Iran. They may be part of the USSR's general effort to develop
closer relations with countries on its southern border.
In his speeches in the USSR, Zahir Shah
stressed Afghanistan's neutral status and avoided specific men-
tion of economic aid. Afghan wariness is also indicated by the
emphasis in the communique thatno political strings are attached
to the aid. Although some Afghan technical personnel may be
sent to the USSR for training, Kabul will probably attempt, as in
the case of military training, to have as much as possible con-
ducted in Afghanistan.
Failure of a Swedish company to strike oil in
commercial quantities after a year of exploration may have led
Afghanistan to turn to the USSR, which has long professed an in-
terest in developing Afghan oil. There is a small operating So-
viet field and refinery at Termez close to the Soviet-Afghan border
on terrain similar to that found in northern Afghanistan.
1 Aug 57
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6. IRANIAN PRIME MINISTER LOSES
SHAH'S CONFIDENCE
Kia claims that Eqbal
has lost the confidence of the Shah as well as that of
his own supporters.
Comment There is ample evidence that the
Shah and Eqbal do not agree on the
conduct of 'government. When Eqbal was appointed
prime minister in April, he said he would remain in
office only as long as he was allowed to conduct affairs
without interference from the Shah. The Shah gives no
indication of intending to support the existing govern-
ment or to tolerate it beyond the period necessary to
make other arrangements. Since the Shah's return
from Europe on 12 July, he has said it has taken him
12 years to gather all reins of power into his own hands.
1 Aug 57
Current Intelligence Bulletin Page 8
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7, CZECHOSLOVAKIA OFFERS INVESTMENT TO
PREVENT CLOSING OF LEGATION IN LIMA
The Czechoslovak charg�n Lima
has offered the Peruvian government
a Czechoslovak investment equaling
$3,000,000 on the condition that Peru
withdraw its request that Czechoslovakia close its
legation in Lima,
A departure date for the Czechoslovaks
has not yet been announced.
Comment The Peruvian foreign minister asked
the charg�n 25 July to close the
Czechoslovak legation in Lima, the only orbit mission
in Peru. Lima is unlikely to rescind its decision for
the sake of a $3,000,000 investment, a relatively small
amount in comparison with total foreign investment
there of over $700,000,000.
The Peruvian Communist Party lately
has shown considerable potential, particularly in organ-
ized labor, and apparently the Czechoslovaks, who have the
only bloc mission in Peru, are reluctant to lose the opportuni-
ty to exploit the situation.
1 Aug 57
Current Intelligence Bulletin Page 9
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8. OUSTER OF PRO-COMMUNIST 01UNAWAN MAYOR
SEEN IN DOUBT
The ouster of pro-Communist Mayor
Kamejiro Senaga of Naha, Okinawa,
which depends on the results of the
4 August city assembly election, ap-
ars uncertain,
The prospects of the pro-Senaga forces have
been enhanced by the formation of a cohesive front group.
The conservative opposition's effectiveness is being ham-
pered by factionalism, particularly the independent posi-
tion taken by a former conservative mayoral candidate.
Comment Senaga dissolved the Naha City assembly
after he lost a confidence vote in June.
His conservative opponents must win at least 20 of the 30 as-
sembly seats to meet quorum requirements for a second no-
confidence vote, which can be carried by a simple majority
and would force the mayor to resign.
Senaga has said he will run in the ensuing
mayoral campaign if the new assembly forces him to resign.
1 Aug 57
Current Intelligence Bulletin Page 10
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