CURRENT INTELLIGENCE BULLETIN - 1957/06/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169425
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: June 1, 1957

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CURRENT
INTELLIGENCE
BULLETIN
1 June 1957
DOCUMENT NO.
NO CHANGE IN CLASS.
0 DECLASSIFIED
CLASS. CHANGED TO: IS
NEXT REVIEW DATE:
AUTH: 70-201
DATE: EVIEWER:
3.5(c)
3.3(h)(2)
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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. FURTHER DELAY IN FORMATION OF FRENCH GOVERN-
MENT SEEN (page 3).
CONTENTS
2. SITUATION ON TAIWAN
to 3. LEBANESE ELECTION SITUATION
(page 4).
(page 5).
4. SYRIA NEGOTIATING COMPRTIENSIVE ARMS RE-EQUIP -
IV() MENT CONTRACT WITH USSR (page 6).
5. SOVIET VESSEL OFF-LOADING ARMS IN YEME
11) (page 7).
6. PROSPECT OF RENEWED VIOLENCE ON CYPRUS INCREASES
(page 8).
. A
/177tSSR INSTRUCTS SATELLITES TO IMPROVE RELATIONS
WTTH PTT() (narrp 9)
048.
COMMENTS ON INTERNAL SITUATION
(page 10).
IdA 9. OTHER COUNTRIES EXPECTED TO FOLLOW BRITAIN'S
V DECISION ON CHINA TRADE CONTROLS
(page 11).
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Npre *Of
L FURTHER DELAY IN FORMATION OF FRENCH
GOVERNMENT SEEN
Comment on:
n ma y n Paris esti-
mated on 29 May that the current French
political crisis would last another week
or more, with a minority government
more likely to result than one includihg
either Socialists or Independents. Social-
ist spokesmen told the embassy on 30 May
that they would prefer a coalition led by
the Popular Republicans, including the Independents, but they
do not completely exclude the possibility of Socialist rather
than Independent participation. The Socialist National Council
meeting to decide this question is likely to be held on 2 June.
A Paris press report of 30 May stated
President Coty, reportedly "bitter" over the political parties'
inability to agree on a new government, fears for the future of
workable democracy in France and is considering a call to
General De Gaulle "for consultations" if the crisis continues
another two or three weeks. This reported attitude may at
least have the effect of leading intransigent factions to modify
their current positions.
The embassy points out that underlying fac-
tors not yet fully recognized by most deputies and certainly
not by the general public are operating to force "radical treat-
ment" in the near future. The embassy cites (1) the urgent
need for new fiscal measures which would sharply undercut
industrial expansion and could have early and explosive reac-
tions in both labor and political fields; and (2) dawning aware-
ness among some moderate leaders that France must make po-
litical concessions on its North African problems despite the
unyielding nationalist attitude of many influential Frenchmen.
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2. SITUATION ON TAIWAN
Ambassador Rankin reports that on the
evening of 27 May two minor incidents
ook place in Taipei. In one, a crowd of
Aibout 200 stoned the house of an American
official; in the other, a crowd of 50 to 60
stood in front of the house of an American
shouting and making critical comments,
but no damage was done. On 30 May an
American IV/RAU sergeant, driving his car in the rain, struck
and killed a Chinese woman pedestrian in Taipei. The case is
under joint Sino-American investigation and attempts are being
made to prevent wide publicity.
American officials on Taiwan agree that the
situation remains serious, but that a recurrence of serious riot-
ing is unlikely.
Chiang Kai-shek has requested Foreign Min-
ister Yeh to express his personal concern to Ambassador Rankin
over public suggestions that an influential agency or person was
behind the riots. Chiang stated that the intimation was shocking
and inconceivable. He assumed Chiang Ching-kuo was believed
the person responsible, and asserted that if this were the case,
Ching-kuo would have been acting against the interests of the state
and himself,
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3. LEBANESE ELECTION SITUATION
Comment on
Despite an opposition call for a gen=
eral strike in Beirut on 31 May, most
shops were open and quiet prevailed
thrpughout the city following the bloody
political riots of 30 May. Army units
are patrolling the streets0
authorities have
closed five pro-Egyptian opposition
newspapers. Ex-prime minister Saib
Salam, who is under arrest in the hos-
pital, has declared a hunger strike until the Solh govern-
ment resigns. Approximately 100 parsons, including many
Syrians and Palestinians, have been arrested following the
rioting. The large number of Syrians and Palestinians in-
volved strengthens suspicions of Egyptian complicity. The
riots were against the Chamoun-Solh government, but were
not anti-Western.
Reports are circulating in Beirut that
the commander of the Lebanese army and main prop of the
present government, General Chehab, is wavering in his
loyalty toward President Chamoun. Such rumors may be
inspired in an effort to cause dissension among government
supporters. There is no evidence to support these rumors and,
in fact, Chehabis forcefulness in suppressing the rioting indi-
cates that he is strongly on the side of law and order.
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Nov' veer
4. SYRIA NEGOTIATING COMPREHENSIVE ARMS
RE-EQUIPMENT CONTRACT WITH USSR
Comment on:
The USSR may have agreed to pro-
vide sufficient military goods to
re-equip Syria's armed forces com-
pletely, as it did in the case of Egypt
last January.
the USSR has agreed to this in
principle, and on 23 May the Syrian government was requested
by its arms mission in Moscow to furnish for submission to
the USSR a "final list" of Syrian army requirements for the
remainder of this year. The Syrian negotiators in Moscow re-
ported that they planned to "submit a complete order for all
our needs" in the second half of July.
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5. SOVIET VESSEL OFF-LOADING ARMS IN YEMEN
Reference:
A Soviet vessel, carrying 3,600 tons
of bloc arms, arrived in the Yemeni
port of Salif on 25 May. Unloading is
to be completed by 1 June0
this cargo for the most part was
"light materials" =presumably small arms and ammunition.
He recommended that it be off-loaded at night to avoid the
"taking of pictures from ICamaran"--a British-occupied island
opposite the port.
"heavy arms" should now
also be sent inasmuch as the Czech mission which arrived
during the first week of May to prepare the port for arms de-
liveries had completed its work.
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a.,L.11.../
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6. PROSPECT OF RENEWED VIOLENCE ON
CYPRUS INCREASES
Rejection by Great Britain of Archbishop
Makarios' request for bilateral negotia-
tions on the Cyprus issue may lead to a
new anti-British campaign on the island,
including a resumption of violence by un-
derground EOKA. The American consul
at Nicosia reports that propaganda activ-
ities have been stepped up by EOKA's polit-
ical branch, by the Greek-Cypriot press
and by Athens radio, and that slogan-painters
are again at work.
In rejecting the archbishop's offer, London
stated it was always willing to discuss the
Cyprus problem "with Cypriot representatives of whom Makar-
los might be one."
According to Ambassador Allen, the British
attitude is based on a belief that Makariosi prestige is dimin-
ishing, a view with which Allen disagrees completely.
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X....XL 'I-Ail-N-4 J.
Niire
7. USSR INSTRUCTS SATELLITES TO IMPROVE
RELATIONS WITH TITO
Moscow
advised the Satellite Communist parties to
attempt "for the time being" to improve re-
lations with Yugoslavia and the Yugoslav
communist Party "in spite of ideological differences,"
Moscow will continue from time to time to express its ideo-
logical differences with Belgrade but that the campaign against
Yugoslavia will be moderate in tone. They interpret the new in-
structions as reflecting Khrushchev's absorption in internal eco-
lomic problems and "consolidation of his power!'
comment Tito may have been referring to such instruc-
tions when he stated on 25 May that the Soviet
leaders had insisted that the Satellite parties "treat Yugoslavia
a little differently and give up their unprincipled attacks," in spite
of unresolved ideological issues. Further signs of such a new
policy are the planned visit to Belgrade of Czechoslovak premier
Siroky in the second half of June and the recent moderation of
Albania's propaganda attacks on Tito, despite the recent defec-
tion of an Albanian party central committee member to Yugo-
slavia.
The Yugoslays probably still believe that there
are differences within the Soviet leadership on the tactics to be
used in Eastern Europe, with Khrushchev standing for a more con-
ciliatory approach. A Yugoslav journalist recently remarked
that Khrushchev with all his faults is still "the most positive man
in the USSR."
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8.
COMMENTS ON INTERNAL SITUATION
described the Polish
situation as a "form of stabilized chaos"
wherein "a little flare-up in some small place can lead to a
big explosion in a big place." the crux of the Po-
lish problem is the economic situation.
Gomulka was
having some difficulties in asserting his control over the party
and that local functionaries were ineffective against worker ac -
tions such as the many strikes
feared that government failure immediately to improve the
consumer goods supply after an announcement of American
aid would further anger the populace.
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9. OTHER COUNTRIES EXPECTED TO FOLLOW BRITAIN'S
DECISION ON CHINA TRADE CONTROLS
Reference:
Britain's abandonment on 30 May of the
China differential in strategic trade con-
trols is likely to be followed in the near
future by similar action on the part of
'West Germany, Italy, Portugal, Denmark
and Norway. Japan and France may fol-
low suit but at a later date for political
reasons.
Belgium and
Luxembourg "reserve the right of freedom
of action if a new situation arises as a re-
sult of Britain's action:'
1 June 57
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