CURRENT INTELLIGENCE BULLETIN - 1956/09/14

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03178370
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: September 14, 1956

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OFFICE OF CURRENT INTELLIGENCE
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14 September 1956
Copy No. 105
3.5(c)
3.3(h)(2)
TOP SECRET
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CONTENTS
1. EGYPT REJECTS OPPORTUNITY TO BARGAIN OVER
WESTERN SUEZ PROPOSALS (page 3).
2. NEHRU OPPOSES PLAN FOR SUEZ CANAL "USERS'
ASSOCIATION" (page 4).
3. EGYPTIAN CANAL AUTHORITY CONSIDERING REDUC-
TION IN CONVOY SYSTEM page 5).
4� USSR SEEKS POSITION REPORTS FROM ITS MERCHANT
SHIPS (page 6).
5. SYRIAN INTELLIGENCE CHIEF THREATENS SABOTAGE
OF OIL PIPELINES (page 7).
6. HUNGARIAN WRITER CALLS FOR COMPLETE FREEDOM
OF EXPRESSION (page 8).
7. INDONESIAN PRESIDENT CONCLUDES SOVIET TOUR
(page 9).
8. PATHET LAO TROOPS
LAOTIAN CEASE- FIRE
14 Sept 56
* * * *
TO OBSERVE
(page 10).
THE ARAB-ISRAELI SITUATION
(page 11)
Current Intelligence Bulletin Page 2
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1. EGYPT REJECTS OPPORTUNITY TO BARGAIN OVER
WESTERN SUEZ PROPOSALS
Egyptian official statements since Eden's
announcement of the formation of a Suez
Canal "users' association" indicate that
the Cairo regime intends to stand pat on
Its earlier refusal to bargain with the West over the ques-
tion of control of the operations of the canal. The state-
ment handed out by the Egyptian embassy in Washington on
13 September, that implementation of the Western "scheme"
means war, would appear to bar any possibility of an Egyp-
tian retreat on this issue.
Cairo is probably counting on action by
other parties, such as India or the Soviet Union, to put a
brake on forceful Western action. However, all reports
from Egypt agree that the Nasr regime is prepared in the
end to go down fighting rather than suffer a serious diplo-
matic defeat over Suez.
14 Sept 56
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2. NEHRU OPPOSES PLAN FOR SUEZ CANAL
"USERS' ASSOCIATION"
Nehru opposes formation of a Suez Canal
"users' association" and withdrawal of
non-Egyptian pilots as an attempt to im-
pose a solution on Egypt. Speaking to
the Indian parliament on 13 September, Nehru stated that
the "surprising" actions apparently contemplated by the
Western nations carried with them the "grave risk of con- �
filet!' Nehru said that Nases proposal for a new negotiat-
ing body "opened the way to settlement," and he appealed
to Britain and the United States to permit the development
of further negotiations.
Despite his personal opposition to pro-
posed Western moves, Nehru will almost certainly step up
his attempts at mediation rather than take sides with Egypt.
14 Sept 56
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3. EGYPTIAN CANAL AUTHORITY CONSIDERING
REDUCTION IN CONVOY SYSTEM
The Egyptian canal authority is con-
sidering reducing the traffic on the
Suez Canal to a single convoy per day,
one day northbound, the next southbound,
following the expected departure of
practically all the non-Egyptian em-
p oyees o the Suez Canal Company between 14 and 16 Sep-
tember, according to the American consulate in Port
Said. While such a system would delay vessels an ab-
normally long time, it would permit maximum utilization
of the approximately 33 experienced canal pilots who are
expected to stay on. Only two of these pilots, however,
are experienced in handling supertankers.
Comment The normal complement of canal pilots
was over 200 before nationalization.
In addition to the 33 experienced pilots, some 20 more with
less experience are believed available. While Cairo has
received numerous offers, official and private, of the
services of pilots, there have been as yet no firm reports
that any significant number of new pilots have arrived in
Egypt.
14 Sept 56
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4. USSR SEEKS POSITION REPORTS FROM ITS
MERCHANT SHIPS
On 13 September, the deputy head of
the Black Sea State Steamship Agency
at Odessa, which controls dry cargo
vessels sailing from the Black Sea to
foreign ports, ordered all ships to report their position im-
mediately. Such special orders are normally issued only in
cases of emergency. The order probably reflects a desire
to control the movements of all Soviet merchant ships in
the Suez area to assure their safety and noninvolvement in
the explosive Suez situation. The immediate occasion for
this action is probably the announced intention of the ma-
jority of non-Egyptian Suez pilots to terminate their duties
this week end.
14 Sept 56
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5. SYRIAN INTELLIGENCE CHIEF THREATENS SABOTAGE
OF OIL PIPELINES
/if the British entered
Suez, both the Iraq Petroleum Company's lines and the
American-owned Tapline pipes from Saudi Arabia would
be sabotaged.
The embassy notes that land mines have
long been in position on the Tapline pipes near the Syrian-
Israeli border, and it believes that sabotage there would
release a quantity of crude oil under high pressure which
presumably would flow into the Jordan River headwaters
toward the Israeli border.
Comment Top Syrian officials are on record as
fully supporting Egypt, but none of their
previous statements have been as specific as this one.
The intelligence chief is one of the leading pro-Egyptian
officers in the Syrian army, and there is little doubt that
he would abet, if he did not himself instigate, plans to
sabotage the pipelines under the conditions he describes.
14 Sept 56
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6. HUNGARIAN WRITER CALLS FOR COMPLETE
FREEDOM OF EXPRESSION
The recently published article of
Gyula Hay, spokesman for liberally
inclined Hungarian intellectuals, con-
stitutes in effect an open call for a
writers' revolt during a meeting of the Hungarian Writers
Federation scheduled to convene on:17 September. The
article, appearing on 8 September in a Hungarian literary
journal noted for its frank opposition to the former
Rakosi regime, called for absolute freedom of expression
for both Mand.stS and non-Marxists, the right to believe
in God or deny God, the right to criticize anybody or any-
thing, and the right to like or not to like any of Hungary's
leaders.
Hay further demanded that the system
of censorship of books, radio talks, theaters and films
be halted. He called on the writers to continue their
political activities even in the face of threats and urged
that 17 September mark the beginning of a "new literary
epoch in Hungary."
A sizable group of party moderates,
who have supported Imre Nagy in the past, including
activists as well as intellectuals, would be in favor of
such intellectual freedom. However, some "moderate"
elements in the party who are basically sympathetic
to many of the aims of the literary group may be expected
to oppose at least some of Hay's demands. Although
resisting a call for full freedom of expression, moderates
such as politburo member Kadar may advocate additional
concessions to the writers.
14 Sept 56
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7. INDONESIAN PRESIDENT CONCLUDES SOVIET TOUR
The public statements of Indonesia's
President Sukarno during his two-week
tour of the Soviet Union, concluded on
12 September, amounted to a generous
overfulfi lment of normal Asian forms of courtesy, the
American embassy in Moscow reports. In his series of
speeches, Sukarno emphasized the identity of Soviet and
Indonesian peoples in their love of freedom, peace and
social justice. In one instance, he commented that the
Soviet people, like the people of other countries he had
visited recently, did not want war; nevertheless, leaders
of "capitalism, fascism and supporters of feudalism" were
working toward war. The joint statement signed prior to
his departure anticipated increased cultural and economic
relations.
Sukarno's constant protestations of
friendship for the Soviet people and his praise of the
Soviet Union for its support of Indonesia's anticolonialist
struggle probably will have the effect in Indonesia of de-
creasing suspicion of Soviet motives. The Indonesian press
to date, however, has given less publicity to Sukarno's cur-
rent trip than to his recent tour of the United States.
Sukarno was undoubtedly impressed by
what he saw of Soviet economic accomplishments, par-
ticularly since he was already highly sympathetic to a
socialized economy. He indicated before he left on his
Orbit trip that in developing a political philosophy, Indo-
nesia could borrow profitably from the socio-political
freedoms of the West and the government-controlled econ-
omy of the Orbit.
14 Sept 56
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8. PATHET LAO TROOPS
LAOTIAN CEASE-FIRE
OBSERVE
The Path ets to
propagandize among the government troops to make them
understand that "we are no longer against them, but wish
to join them in resisting the Americans and in making Laos
independent and free."
Comment Laotian premier Souvanna Phouma,
prior to his departure for France on
8 September, expressed concern over numerous "shooting
incidents" which were undermining Vientiane's faith in
Pathet Lao good intentions.
the Communists are anxious to avoid a breakdown of the
royal government-Pathet Lao negotiations. The Pathets,
after some delay, have finally announced the composition
of their political and military negotiating committees and
have scheduled their arrival in Vientiane around 15 Septem-
ber.
14 Sept 56
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THE ARAB-ISRAELI SITUATION
Information as of 1700, 13 September)
Two Israeli watchmen were reported
killed by infiltrators from Jordan in a new incident about 20
miles south of the Dead Sea. A third watchman was reported
missing. An extraordinary session of the Israeli-Jordan
Mixed Armistice Commission was scheduled to meet on 13
September to consider the outbreak of new incidents, and UN
truce chief. General Burns appealed to both sides to end the
series of clashes which have occurred in the past four days.
(Press) /3.4d.
In connection with the 11 September Israeli
attack on the Jordanian police post, resulting in 23 Jordanian
dead, the American embassy in Tel Aviv notes that this is the
first clearly identifiable retaliation against Jordan since Ham-
marskj old's visit last spring, with the possible exception of the
Israeli mortar attack on three Jordanian villages in July. The
embassy said the Israeli attack conformed to the pattern of two
against the Egyptians on 16 and 30 August, the salient features
being immediacy of reprisal, selection of military targets, and
Israeli government disclaimers of any knowledge.
King Hussain of Jordan called in the Brit-
ish,. French, and American ambassadors in Amman and asked
that strong representations be made to Israel. He said Israel
appeared to be deliberately trying to provoke a Jordanian at-
tack. He suggested that "certain Western Dowers" were en-
couraging Israel.
14 Sept 56
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