CURRENT INTELLIGENCE BULLETIN - 1957/05/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169423
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: May 28, 1957

r ..Approved for Release: 2019/12/04 C03169423
11,7/1
CURRENT
INTELLIGENCE
BULLETIN
frzez
3.3(h)(2)
28 May 1957 3.5(c)
Copy No. 134
DOCUMENT NO,
NO CHANCE IN CLASS.
0 DECLASSIFIED
CLASS. CHANGT:0 TO: TS
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AUTH: 70-2
DATE: YrEVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP-SECRET
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CONTENTS
THE TAIWAN SITUATION
(page 3).
A 2. JAPAN SEEKS COMPROMISE BETWEEN ir AND BRITISH
POSITIONS ON CHINA TRADE CONTROLS
(page 4).
Lk) 3. GUATEMALAN PRESIDENT REPORTEDLY ENCOURAG-
/- ING REVOLT ATTEMPT TO ELIMINATE OPPONENTS
(page 5).
�v_4. PLAN REPORTED TO OVERTHROW LAOTIAN PREMIER
(page 6).
5. GREECE TO PRESS FOR GUARANTEED INDEPENDENCE
FOR CYPRUS (page 7).
28 May 57
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1. THE TAIWAN SITUATION
Comment on
Calm continues on Taiwan with martial
law in effect in the four major cities.
Local security authorities in Taichung
canceled a parade protesting the acquit-
tal decision in the Reynolds case.
The official Central News Agency has de-
manded editorially that the government
reconsider the "diplomatic immunity"
given to American military personnel on
Taiwan.
the police have
"complete evidence" that three of ten per-
sons arrested at the scene of the embassy
riot are "Communists!' He added that
the "files" of 75 other rin .ricpts reveal "Com-
munist backgrounds!'
this claim of Communist involvement is "almost inevitable'
and without basis.
In the Philippines, a small number of
Chinese "hotheads" reportedly met on the night of 25 May to
organize a demonstration against local American installations.
No demonstration took place, however, and it is not believed
the local Kuomintang approved of the plan.
In Bangkok, the newspaper controlled by
Minister of Defense Sarit, in commenting on the Taipei riots,
warned the government against the danger of allowing more
American military personnel into Thailand.
A Japanese court is continuing proceedings
to try an American serviceman, charged with accidentally kill-
ing a Japanese woman on the rifle range, who is still in Amer-
ican custody.
28 May 57
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2. JAPAN SEEKS COMPROMISE BETWEEN US AND BRITISH
POSITIONS ON CHINA TRADE CONTROLS
The Japanese
government to
"make every effort possible" to dis-
cover some points of compromise be-
tween the American and British posi-
tions on China trade controls.
Japan was prepared, if necessary,
to call a Consultative Group meeting to forestall a reported
British plan to abolish unilaterally the China differential trade
controls. If Britain, went' ahead with its plant the final Jap-
anese decision would have to await Prime Minister Kishi's
return from a Southeast Asian tour on 4 June.
Comment The China Committee has been unable
to work out a plan for trade controls ac-
ceptable to all participating countries, and the Macmillan
government reportedly was drafting a statement for delivery
in Parliament this week announcing that Britain would unilat-
erally abolish the differential trade controls.
Japan is eager to obtain China Committee
agreement on modified controls which would satisfy Japanese
domestic demands for increased trade with China and still not
jeopardize relations with the United States, especially now that
Kishi is about to visit Washington.
28 May 57
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3. GUATEMALAN PRESIDENT REPORTEDLY ENCOURAGING
REVOLT ATTEMPT TO ELIMINATE OPPONENTS
In an effort to expose opposition elements
in Guatemala, President Castillo Armas,
is covertly encouraging Guate-
malan exiles in Mexico to prepare a revolt against his gov-
ernment on 25 June. Castillo was
even providing the exiles with limited quantities of weapons
and was being kept advised as to their plans. He believes
the revolt attempt, which he expects to control, will give
him the opportunity to "eradicate" his political opposition.
Colonel Enrique Oliva, a close army associate,
is involved in the plotting.
Comment
In the past, Castillo has used real or man--
ufactured plots against his regime to justify action against his
opponents and others not in his trust. Recent reports allege
that Colonel Oliva and other high officers are plotting against
Castillo. It is possible, however, that these officers, who
have long been considered loyal to the president, are either
acting as decoys to attract true opponents of the regime, or
are the victims of a campaign to discredit them by ambitious
colleagues.
28 May 57
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AaltEd 1--
Now
4. PLAN REPORTED TO OVERTHROW LAOTIAN PREMIER
Comment on:
Deputy Premier Katay and Independent
Party leader Phoui Sananikone plan to
overthrow Laotian premier Souvanna
Phouma and install a government with
Katay as premier and Phoui as his dep-
uty,
They have effected
a rapprochement which will lead to a
coalition of Nationalist and Independent Party members in the
National Assembly. They are counting on approximately 20
votes in the 39-man assembly and hope to enlist additional
support.
Reconciliation of differences between
these two leaders could alter, at least for the immediate fu-
ture, the drift of their country toward accommodation with
the Communist Pathet Lao. Souvanna Phouma is now before
the assembly in an attempt to push through a coalition with
the Pathets under terms reported to be of considerable advan-
tage to the Communists.
The efficacy of a Katay-Phoui coalition
would appear to depend not only on the success of the two men
in keeping bitter personal rivalries buried but also on Souvanna's
skill in presenting his case to the assembly. In this connection;
press reports state that Souvanna on 27 May read to the assembly
a letter from Pathet Lao chief Souphannouvon.g promising to turn
over to the royal government his army and the two disputed north-
ern provinces immediately after the formation of a coalition gov-
ernment. Souvanna's reiteration of Pathet "guarantees" may have
been prompted in part by his growing awareness of efforts by
Katay and Phoui to prevent such a settlement.
28 May 57
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5. GREECE TO PRESS FOR GUARANTEED INDEPENDENCE
FOR CYPRUS
Greek prilne minister Karamanlis has
decided to press for independence for
Cyprus under a 20-year guarantee, ac-
cording to Ambassador Allen in Athens.
Karamanlis hopes NATO's Secretary General Spook will ex-
plore this proposal in NATO capitals soon. If a solution on
this basis cannot be achieved, Greece will present the issue
again to the UN.
While Greece would base its UN applica-
tion on self-determination, Karamanlis plans to have a group
of other delegations present a resolution calling for independ-
ence under a 20-year guarantee. Foreign Minister Averoff
believes such a resolution could win a two-thirds majority in
the General Assembly unless the United States actively op-
posed it.
Comment Karamanlis is evidently impatient with the
absence of any British moves to break the
Cyprus stalemate and also fears a resumption of violence on
the island if some progress is not apparent soon. Averoff told
Ambassador Allen on 25 May that Archbishop Makarios would
go to London now to seek talks with British officials but fears
that EOKA extremists would renew violence in order to wreck
his efforts.
Turkey will almost certainly reject the in-
dependence proposal, and the British, while favoring the idea
in principle, will be reluctant to endorse it for fear of antago-
nizin.g Ankara.
28 May 57
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