CURRENT INTELLIGENCE BULLETIN - 1957/11/30

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03177766
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: November 30, 1957

rrW Release 2019/
12/10
CURRENT
INTELLIGENCE
BULLETIN
/
30 November 1957
Copy No. 3
DOCUMENT NO.
NO CHANGE IN CLASS,
NCI FILD
CLASS. CHANGED TO: Ilbto
NEXT REVIEV:, DATE:
REVIEWER:
4
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP ET
3.5(c)
w,ff.dr,r/A,
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CONTENTS
CONTENTS
Nme
1. USSR WILLING TO SUPPLY "LATEST WEAPONS" TO CHINA
(page 3).
2. PEIPING TO PERMIT AERIAL SURVEY OF SINO-BURMESE
BORDER ARE. (page 4).
. 3. OUTLOOK FOR FRANCE'S ALGERIAN POLICY
(page 5).
4. THE SITUATION IN IFNI
5. YUGOSLAV SUPPORT OF YEMEN
(page 6).
(page 7
6. RENEWED ANTI-AMERICAN TERRORISM IN SOUTH WET-
NAM ANTICIPATED (page 8).
7. LAOTIAN GOVERNMENT ACTS TO CHECK SUBVERSION
(page 9).
8. DEMAND DEVELOPING FOR NEW INDONESIAN CABINET
(page 10).
6L-42_ 9. INDONESIA MAY DISCUSS ARMS PURCHASES WITH
CZECHOSLOVAKIA page 11).
10. KISHI VISIT TO INDONESIA ACHIEVES REPARATIONS
AGREEMENT page 12).
11. MALAYAN FEDERATION GOVERNMENT SUFFERS SIGNIF-
ICANT DEFEAT IN BY-ELECTION (page 13).
30 Nov 57 Current Intelligence Bulletin
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1. USSR WILLING TO SUPPLY "LATEST WEAPONS"
TO CHINA
Indications that the USSR has agreed
to supply the Chinese with some of its
"latest weapons" are contained in So-
viet Defense Minister Malinovsky'
speech on 27 November to the Chinese
military mission now concluding its
three-week stay in the USSR. He spoke
of "our armies. . . armed with modern
-f-j-r--Q-f--r--17s weapons," and proclaimed
rwiningness to "transmit oul experience in the building up
of armed forces to our Chinese friends."
On 29 November, Malinovsky told re-
porters that the Chinese "can make all the weapons they
want themselves!'
While it is unclear what kinds of weapons
might be involved, supplying advanced weapons whether nu-
clear or not would require the presence in China of consid-
erable numbers of Soviet advisers and technicians. Chinese
Defense Minister Peng Te-huai's reply to Malinovsky, how-
ever, suggests that Peiping does not want to depend for an
indefinite period on Soviet advisers and may insist on its
right to ultimate control of the new weapons. Peng declared
that the Soviet military "example" will be applied "in accord-
ance with the concrete conditions of the Chinese army."
:Peng has invited Malinovsky to make a
visit to Communist China.
30 Nov 57
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2. PEIPING TO PERMIT AERIAL SURVEY OF
SINO-BURMESE BORDER AREA
Comment on:
Communist China has agreed to per-
mit aircraft operated by British and
Indian personnel to overfly Chinese
territOry up to a depth of ten miles
between 20 November and 27 Decem-
ber while making an aerial survey for the Burmese gov-
ernment along the Sino-Burma frontier, While this is a
reversal of Peiping's earlier stand, it does not indicate
that the Chinese now are agreeable to an early settlement
of the long-standing Sino-Burmese border delineation prob-
lem.
Last summer Peiping Foreign Ministry
officials had declared they could not permit aerial surveys
along Chinese territory if they were made by foreign air-
craft and personnel. To minimize the offense to Peiping,
the Burmese refused the low bid made by an American firm
to conduct the survey, but accepted the tender made jointly
by a British firm and its Indian affiliate,
China's strategy is based on the view
that continued stalling on a final settlement of the border
issue would be advantageous, but Peiping seems to be will-
ing to adopt a conciliatory pose when the stakes are small
in order to keep Rangoon in the neutralist camp. The Chi-
nese have no important facilities along the border, the secu-
rity of which might be jeopardized by overflights.
30 Nov 57
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3. OUTLOOK FOR FRANCE'S ALGERIAN POLICY
Comment on:
he French National Assembly's ap-
royal of the basic statute for the
dministration of Algeria gives
remier Gaillard a breathing spell,
ut is unlikely to resolve any of the
undamental issues of the conflict.
he basic law itself has been delayed
nd watered down at the expense of the
advantageous effect it might have had on the French public
as well as the Algerian Moslems,
The French public has recently become
convinced that the military situation in Algeria has defi-
nitely developed in France's favor. Once the UN debate on
Algeria is over, the government will probably be under re-
newed pressure to stiffen its position and to step up the drive
for a complete military victory.
If French military control of the situa-
tion becomes clearly evident, France will be obliged to be-
gin implementing the basic statute by holding elections,
which subsequently would raise the question of discussions
with "elected representatives" of the Algerians. In any case
the existence of the basic statute may serve to move Paris
to take ,some steps toward negotiations with the Algerian na-
tionalists in the next few months. If hopes for a complete
military victory lead Paris to postpone application of the
basic statute, however, the government will be increasingly
vulnerable to attack by the growing minority, symbolized by
Mendes-France, which favors a more liberal solution. A
prolonged military stalemate would strengthen proponents
of negotiations with the rebels.
30 Nov 57
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4. THE SITUATION IN IFNI
Comment on:
Fighting between Moroccan Army of
Liberation irregulars and reinforced
Spanish forces apparently continues in
the area of Ifni, Spain's 741-square-
mile enclave along Morocco's Atlantic coast. Reports
from Madrid and Rabat present widely varying accounts
of developments in the region, but Spanish troops appear
to be generally in control within the enclave. Some vio-
lations of Moroccan territory by Spanish aircraft operat-
ing in support of ground units have been reported out of
Rabat. This suggests the possibility of future clashes with
Moroccan regulars who have been instructed to oppose any
Spanish incursions.
Moroccan officials deny the Spanish ver-
sion which attributes the trouble to Army of Liberation ele-
ments beyond Rabat's control and insist that the events in
Ifni represent a local popular uprising precipitated by Span-
ish "provocations."
30 Nov 57
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5. YUGOSLAV SUPPORT OF YEMEN
Comment on:
Five Yugoslav aircraft pilots were ex-
pected to arrive in Cairo this week en
route for service in Yemen,
Arrival of the pilots, three of whom are Moslem,
stems trom an effort undertaken by the Imam early in 1957
to obtain the services of Yugoslav Moslem pilots�probably
to operate or instruct in military aircraft from the Soviet
bloc,
Yemen is believed to have received 38
bloc aircraft, including 30 I1-10 piston ground attack aircraft,
6 trainers, and two helicopters. Five Yemeni nationals who
received flight training in Italy may by now have returned to
Yemen. Among Soviet bloc military personnel in Yemen is
a group of 10-12 Soviet air personnel engaged primarily in
operating the helicopters, assisting Swedish contract pilots
of Yemeni Airlines, and test-flying assembled aircraft. No
training program is known to be under way as yet in Yemen.
A persistent search by the Imam for foreign personnel to op-
erate or instruct in the use of bloc equipment
Yugoslavia
has sought to develop good relations with Yemen
Belgrade
was fully prepared to support Yemen both in and out of the UN
in its boundary disputes with the British.
30 Nov 57
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6. RENEWED ANTI-AMERICAN TERRORISM IN SOUTH
VIETNAM ANTICIPATED
The Viet Minh underground in South
Vietnam has been directed by Hanoi
to prepare for additional attacks on
American personnel
This information is rated "prob-
ably true" by both the Vietnamese and by the US MAAG
mission.
Comment
These
called for the launching of a terrorist campaign in the
South and emphasized the assassination of Americans,
particularly MAAG personnel. Communist-attributed
assassinations of Vietnamese provincial officials have
increased in recent months.
Major Viet Minh objectives are to fos-
ter the impression that anti-American sentiment is wide-
spread in South Vietnam and to disrupt MAAG training of
the Vietnamese armed forces. Following the Communist
bombings on 22 October in Saigon which injured 13 Amer-
ican servicemen, Radio Hanoi claimed this was a clear
manifestation of "discontent" in the South toward the "in-
solent behavior" of American military personnel.
30 Nov 57
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. LAOTIAN GOVERNMENT ACTS TO CHECK SUBVERSION
Comment on:
The Laotian government is taking some
steps to meet the threat of increased
Pathet subversion and to check on Pathet
efforts to evade fulfillment of commit-
ments made under the recent settlement
accords. Prime Minister Souvanna. Phouma
has ordered an anti-Communist propaganda
campaign throughout Laos and the infiltra-
tion of 200 police into each of the two northern provinces to
man frontier access posts and other key spots.
However, there are indications that the
Pathet representatives in the Laotian cabinet, Prince Souphan-
nouvong and Phoumi Vongvichit, are already wielding influence
approximating a veto over some government decisions relat-
ing to the implementation of the settlement accords. At a
cabinet meeting on 25 November, they succeeded in blocking
the appointment of two apparently well-qualified leaders as
governor of Sam Neua Province, finally agreeing to the selec-
tion of a nonpolitical technician who is allegedly related to
Phonmi and may therefore be susceotib e to Pathet influence.
30 Nov 57
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8. DEMAND DEVELOPING FOR NEW INDONESIAN CABINET
Comment on:
ressure for a new Indonesian cabinet
ppears to be building up in the National
econstruction Conference now meeting
n Djakarta. Non-Javanese elements are
upporting a resolution, presented by the
est Borneo delegation, for the formation
f a new cabinet either jointly led by Pres-
dent Sukarno and former Vice President
atta or by Hatta alone. Important civil
nd military elements in West Java appar-
ntly also favor such a step. Hatta, who
s cochairman of the conference, has ruled
hat the resolution will be discussed after
the current general debates are concluded.
Although regional leaders have been disap-
pointed in Hatta in recent months, they still believe that as a
top government leader he would represent regional interests
and obstruct Communist influence in the government. Most
Javanese army elements, while they do not share the dissident
leaders' enthusiasm, would support Hatta as a cabinet leader.
Javanese army commanders seem to want a new cabinet in or-
der to prevent the implementation of a bill which would limit
the army's emergency powers.
Premier Djuanda has indicated that he is
prepared to resign at any time in the interest of promoting na-
tional unity, and Sukarno's acceptance of Hatta as head of a
non-Communist cabinet would constitute his first significant
concession to the disaffected provincial leaders. The pre-
ponderance of recent reporting, however, indicates that Sukarno
and Hatta are still far apart on such matters as Communist par-
ticipation in the government.
30 Nov 57
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9. INDONESIA MAY DISCUSS ARMS PURCHASES
WITH CZECHOSLOVAKIA
Comment on:
The Indonesian army is eager to pur-
chase new arms and equipment and apparently is sounding
out all sources as to prices and availability. Negotiations
with the United States for arms have the approval of Pres-
ident Sukarno, but he is alleged to have stated recently that
"the Americans are just playing with us; we will get nothing."
Moderate Indonesian officials insist that if Indonesia loses
its Netherlands New Guinea claim at the UN, Sukarno will
be so outraged that he is likely to take the advice of his left-
ist advisers and accept arms from bloc sources.
30 Nov 57
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10. KISHI VISIT TO INDONESIA ACHIEVES
REPARATIONS AGREEMENT
Comment on:
Japanese Prime Minister Kishi and
Indonesian Premier Djuanda an-
nounced upon Kishi's departure for
Australia that they had reached basic
agreement for settling the long-pending reparations prob-
lem. Such an agreement was the major objective of Kishi's
current Asian tour and is an important element in Japan's
drive to establish closer economic relations with Asian
countries.
The final agreement, which Djuanda
said would probably be announced after two or three meet-
ings, is expected to cancel Indonesia's $170,000,000 trade
debt to Japan and commit Tokyo to reparations grants of
$230,000,000. The Japanese also would extend long-term
loans. All provisions are subject to approval by the respec-
tive parliaments.
Kishi and Djuanda impressed each other
favorably during their discussions, and Ambassador Allison
believes that normal diplomatic relations between Tokyo and
Djakarta can be expected as a result. The two heads of gov-
ernment apparently did not discuss the possibilities of an
Asian development fund.
Japan already has reached reparations
settlements with Burma and the Philippines and requires only
an agreement with South Vietnam to end its major reparations
problems.
30 Nov 57
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11. MALAYAN FEDERATION GOVERNMENT SUFFERS
SIGNIFICANT DEFEAT IN BY-ELECTION
Comment on:
The ruling Alliance party in Malaya
was decisively defeated by the left-
wing People's Progressive Party
candidate on 23 November in a federal
legislative council by-election in the tin-mining center of
Ipoh. The results probably forecast the development of an
increasingly effective left-wing opposition in Malaya and
represent a serious threat to the carefully developed Malay-
Chinese political cooperation on which the Alliance is built
and political stability in Malaya depends.
The victorious candidate, D. R. Seenivas-
agam, secretary general of the People's Progressive Party,
is a London-educated lawyer of Ceylonese extraction who ex-
ploited Chinese fears of Malay domination and interpreted gov-
ernment efforts to control subversion in Chinese schools as
an attack upon Chinese culture. The weak showing of the gov-
ernment candidate, a Chinese, in a predominantly Chinese
district demonstrates the appeal of this type of attack and in-
dicates increasing distrust of the government on the part of
the Chinese population.
Continuing Chinese student demonstra-
tions against the government suggest that further and possibly
more serious interracial friction can be expected. Chinese
suspicion of government actions will greatly complicate the
federation's efforts to control subversion among Malaya's large
Chinese minority.
30 Nov 57
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