CURRENT INTELLIGENCE BULLETIN - 1956/08/29

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03178358
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 29, 1956

2te
X.7 pproved for Release: 2019/10/23 C03178358
A ! A 4-1.:4 .
29 August 1956
Zo
CURRENT
INTELLIGENCE
BULLETIN
Copy No. 0 5
DOCUMENT NO. Lir_
NO CHANUE IN CLASS. ilk
0 DECLASSIFIED
CLASS. CFIANGED TO: TS ;41Crilil___
NEXT REVIEW DATE:
AUTFI: FIRZI2Snit
DATE:21REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
3.3(h)(2)'
3.5(
�//
f�4
�*;�
f);//
Approved for Release: 2019/10/23 C03178358
Approved for Release: 2019/10/23 C03178358
%owl 'No*
AlMi.
ir
Approved for Release: 2019/10/23 C03178358
Approved for Release: 2019/10/23 C03178358
Nue 4ftrair
CONTENTS
I. SHEPILOV ADVISES EGYPT THAT SUEZ DISPUTE SHOULD
BE "SPUN OUT" (page 3).
2. PANAMANIAN LEADERS TO ENCOURAGE STUDY OF
CANAL NATIONALIZATION (page 4).
3. LEADER OF CHILE'S ANTI-INFLATION DRIVE OUSTED
FROM CABINET (page 5).
4. AFGHAN PRIME MINISTER PUBLICLY CONFIRMS ARMS
DEALS WITH USSR AND CZECHOSLOVAKIA
(page 6).
29 Aug 56
THE ARAB-ISRAELI SITUATION
(page 7)
Current Intelligence Bulletin Page 2
-TOP-SECRET-
Approved for Release: 2019/10/23 C03178358
�-� T1 T4
Approved for Release: 2019/10/23 C03178358
*Awe'
Ntrif
SHE PILOV ADVISES EGYPT THAT SUEZ DISPUTE
SHOULD BE "SPUN OUT"
29 Aug 56
Current Intelligence Bulletin Page 3
TOP�SfeRET
Approved for Release: 2019/10/23 C03178358
Approved for Release: 2019/10/23 C03178358
�2. PANAMANIAN LEADERS TO ENCOURAGE STUDY OF
CANAL NATIONALIZATION
Panama's President Ricardo Arias and
President-elect Ernesto de la Guardia
agreed at a recent meeting that the
next administration will "harp con-
stantly, through the press, radio, and official circles, on
the theme of Panama's irrevocable sovereignty over the
Panama Canal" and the similarities between the Panama
and Suez Canals,
They reportedly also agreed to encourage the National
Assembly to study "nationalization or internationaliza-
tion" of the Panama CanaL
Comment Such a campaign would be designed to
step up Panama's long-time efforts to
weaken United States treaty rights and gain ultimate par-
ticipation in the operation and profits of the canal. It
would also serve well as a nationalistic issue distracting
the public from serious domestic problems and thus
strengthening the next administration, which will inherit
the corruption and internal factional struggles which have
weakened the Arias administration.
De la Guardia is to be inaugurated on
1 October. He is basically friendly to the United States,
but will be obliged to appear to the public as an energetic
defender of Panama's "rights" with respect to the canaL
One of his personal advisers is a pro-Communist who can
be expected to encourage this nationalistic approach.
29 Aug 56
Current Intelligence Bulletin Page 4
Approved for Release: 2019/10/23 C03178358
Approved for Release: 2019/10/23 C03178358
Nue
3. LEADER OF CHILE'S ANTI-INFLATION DRIVE OUSTED
FROM CABINET
Comment on:
The replacement on 27 August of Oscar
Herrera as head of Chile's ministries
of finance and economy threatens the
continuance of his austerity program,
launched ten months ago, which has
a rea y ame iorated Chile's long-continued inflation.
This improvement in Chile's economic
stability has appeared to modify the government's concept
of Chile's role as leader of the opposition to United States
economic policy at inter-American meetings. This modi-
fication was indicated by President Ibanez' co-operation
at the Panama meeting of presidents in July. Should Chile's
domestic economic situation again deteriorate, Chile may
revert to its espousal of "share-the-wealth" policies at
inter-American gatherings such as the meeting on 17-19
September of high-ranking representatives of the American
republics. This meeting is scheduled to discuss President
Eisenhower's Panama proposal for improving inter-American
economic co-operation.
American ambassador Lyon believes
that Herrera's ouster was motivated by political rather than
economic policy considerations, but that it does not bode
well for the future of the fight against inflation. Neither
the new minister of finance nor the new minister of econ-
omy is a man of recognized public stature and both are
likely to be more concerned with pleasing President Ibanez
than with stabilizing the country's economy.
29 Aug 56
Current Intelligence Bulletin Page 5
-CONFIDENTIAL-
Approved for Release: 2019/10/23 C03178358
Approved for Release: 2-67.95-0723 C03178358
Nirmlue
4. AFGHAN PRIME MINISTER PUBLICLY CONFIRMS
ARMS DEALS WITH USSR AND CZECHOSLOVAKIA
Afghan arms deals with the USSR and
Czechoslovakia which were announced
on 26 August by Prime Minister Daud
probably are for small arms and ar-
tillery, and possibly tanks and aircraft.
Daud announced that he had made the
deals in accordance with the decision of the Grand Assem-
bly of Tribes (Loe Jirga) last November. The Loe Jirga
approved strengthening Afghanistan's military forces in
order to support the Pushtoonistan campaign against
Pakistan. Daud's announcement included a statement
that he hoped Pakistani president Mirza's recent visit to
Afghanistan would lead to "an understanding satisfying
the Pushtoon people," (Concurred in
by ORR)
29 Aug 56
Current Intelligence Bulletin Page 6
Approved for Release: 2019/10/23 C03178358
Approved for Release: 2016717/23 C03178358
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 28 August)
Egypt's crude oil requirements will be met
� on a day-to-day basis for some time, since Soviet bloc crude
oil deliveries during the year beginning July 1955 were
considerably below the amount promised,
The main reason for the slow
deliveries was said to be the overtaxed Egyptian refinery and
storage capacities.
A joint Syrian-Egyptian command message
of 27 August indicates that a Syrian MIG "flight" (or possibly
squadron) plans to begin operational flying the week of 3 Septem-
ber. Syria has purchased 20 MIG's from Czechoslovakia. These,
according to intercepted messages,--were to be shipped in July.
29 Aug 56
Current Intelligence Bulletin Page 7
TOP SECRET
Approved for Release: 2019/10/23 C03178358