CURRENT INTELLIGENCE BULLETIN - 1956/11/02

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03179161
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: November 2, 1956

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CURRENT
INTELLIGENCE
BULLETIN
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2 November 1956
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. HOSTILITIES IN EGYPT
(page 3).
2, NASR ASKS AMERICAN MILITARY SUPPORT
3. THE HUNGARIAN SITUATION
(page 6).
(page 7).
4. EAST GERMAN REGIME DETERMINED TO MAKE NO CON-
CESSIONS NOW (page 9).
5. PEIPI STATEMNT ON SOVIET-SATELLITE RELA-
TIONS (page 10).
6. FIRST NATO REACTION TO ANGLO-FRENCH INTERVEN-
TION IN EGYPT (page 11).
7. BRITISH TESTING SAUDI HOLD ON DISPUTED PERSIAN
GULF ISLAND (page 12)0
8. SUKARNO ADMIRES MAO TSE-TUNGPS LEADERSHIP
(page 14).
2 Nov 56
* * * *
THE ARAB=ISRAEL1 SITUATION
(page 15)
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1. HOSTILITIES IN EGYPT
Israel appears to have won a decisive
battle for control of the Sinai Penin-
sula after three days of heavy fighting.
Israeli armored columns, with effec-
tive air support, have advanced into
western Sinai, bypassing points of
Egyptian resistance. British and
French air attacks on Egyptian air-
fields contributed significantly to the
process of neutralizing the Egyptian
air force. The Gaza strip has been
cut off at its base near Rafah, and in
the vicinity of El Arish. Other Egyp-
tian forces have been cut off or en-
circled. The Israelis claim that an
Israeli armored force on 1 November
routed Egyptian armored reinforcements
south of Bir Gifgafa, 45 miles from the
canal, capturing T-34 tanks, armored
cars and other weapons. Israeli mobile
units may therefore have cut the main
road between eastern Sinai and the Suez
Canal crossing-at Firdan Bridge, west of Bir Gifgafa, seal-
ing the only good escape route from Sinai.
Although the Egyptians did reinforce
their forces in Sinai, it is apparent that their main force,
including most of their armor, has not yet been committed
and is being held for defense of the delta and the canal zone
against the Anglo-French landing, whichhas not yet occurred.
The Egyptian commander in chief's de-
cision on 30 October to attempt to broaden the scope of Arab-
Israeli hostilities was abruptly reversed
2Nov 56
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Egypt has apparently launched its cam-
paign against Western oil installations. An oil pipeline in
the British-protected sheikdom of Qatar, and an off-shore
delivery line furnishing oil to the British military in Tripoli,
Libya, have been reported sabotaged. A general strike of
oil wor
17 in the sheikdom of Bahrein has also been re-
norted.
British and French naval and amphibious
forces are moving toward assault positions in Egyptian waters.
A Paris spokesman announced on 1 November that Anglo-French
naval forces were approaching Port Said from the north and the
city of Suez from the south.
A communiqu�rom the Anglo-French
headquarters on Cyprus state,s that British and French air
operations over Egypt are being shifted from bombing mili-
tary airfields to attacks on individual aircraft and airfield in-
stallations. The communiqu�laims that since 31 October
British and French raids have destroyed 90 Egyptian aircraft.
French foreign minister Pineau told the
American embassy in Paris on 1 November that the Anglo-
French move against Egypt has "long" been planned with Israel.
2 Nov 56
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2 Nov 56
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2. NASR ASKS AMERICAN MILITARY SUPPORT
the time
place.
President Nasr told Ambassador Hare
on 31 October Egypt had decided to ask
for United States support against Anglo-
French aggression. Nasr explained he
port in case of military aggression. At
the Anglo-French air assault had not yet taken
In reply to a question as to whether Egypt
would turn to the USSR if this request were refused, Nasr
appeared taken aback, but regained his composure and said
there had been no discussion of turning to the Soviet Union.
He asserted that Khrushchev in the past had suggested fur-
nishing volunteers but Egypt had never replied.
Nasr concluded by saying he would not
surrender but neither would he run away.
2 Nov 56
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3. THE HUNGARIAN SITUATION (information as of 2400,1 November)
Comment on:
Although Soviet troops have withdrawn from
Budapest, they remain in bivouac areas
near the Hungarian capital. Soviet tanks
reportedly have surrounded the Budapest
airfield, apparently for the purpose of main-
taining control of the field while wounded
Soviet troops are evacuated. No military
action has taken place in Budapest between
Soviet and Hungarian army units,
At 1800 (local time) on 1 November, Buda-
pest radio announced that Premier Nagy
had officially protested to Soviet ambassa-
dor Andropov that he had received "author-
itative information about the entry into
Hungarian territory of new Soviet military
formations," and had demanded that these forces be withdrawn
at once. Budapest radio stated at 2300 that all airfields of the
�Hungarian air force had been surrounded by Soviet armored
units in order to permit the departure of Soviet wounded. There
is no firm evidence to confirm these assertions by Nagy, which
may have been made in an effort to hasten the Soviet departure
and to shore up his present government. There are indications
of a small-scale Soviet troop redeployment within Hungary and
Soviet supply trans-
ports have been flying into Hungary daily.
Nagy, acting in a dual role as premier and
foreign minister, also reportedly informed Andropov that the
Hungarian government was withdrawing immediately from the
Warsaw pact. At the same time he declared Hungary's neu-
trality, which, he added, should be guaranteed by the UN and
the four major powers. Andropov, in response to the accusa-
tion that new troops were coming into Hungary, reportedly
said that it was merely a regrouping of troops and not a new
attempt on the part of the Soviet Union to smash the Hungarian
revolution. During the afternoon of 1 November, Nagy said
2 Nov 56
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in an appeal to the United Nations that "new Soviet troop units
are entering Hungary:' Secretary General Hammarskjold has
reportedly added this question to the provisional agenda of the
11th General Assembly which opens on 12 November.
Politically, the day was consumed in fever-
ish activity by diverse groups presenting their demands and
attempting to build up their popular following, but no real po-
litical unity was achieved.
First Secretary Janos ICadar of the Hun-
garian Workers (Communist) Party announced at 2200 on
1 November that a new party would be formed which would
make a complete break with the Stalinist past and serve as
a rallying point for all workers. The establishment of the
new party--known as the Socialist Workers Party--is an ob-
vious effort to increase national support for the Communists,
particularly from left-wing Social Democratic Party members.
Efforts to enlist Social Democrats in the
new coalition continue to be fruitless. Ana Kethely, provi-
sional president of the newly re-formed Social Democratic
Party, who arrived in Vienna for the Socialist International,
stated that until free elections had taken place there
cou1d Ino thought of "real" Social Democrats becoming mem-
bers of the government.
Cardinal Mindszenty in his first public state-
ment since his release said that "all conditions for the continu-
ation of life are lacking' He withheld his support for any po-
litical group and indicated that in two days he would clarify his
position.
2 Nov 56
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4, EAST GERMAN REGIME DETERMINED TO MAKE
NO CONCESSIONS NOW
High East German officials say that
despite widespread internal demands
for changes, East German party first
secretary Walter Ulbricht will not be
removed from his post nor will any concessions be made
until the unrest in the other Satellites calms down,
Ulbricht's removal or any other reform now would
be interpreted by the restive East German populace as an
indication of weakness, and could lead to revolution. When
it comes, Ulbricht's ouster will be explained on grounds
of health and will not be accompanied by significant changes
in government or party policies.
East German Communists have been assured of continued
Soviet support and need not fear they will be sacrificed in
a reunification deal.
According to the alert plan now in effect
�
in East Germany, the Kampfgruppen�recently reported
purged of unreliable elements--are to go into action first,
with the police, the secret police, the army, and Soviet
troops to be called on successively if a situation threatens
to get out of hand.
Students at East German universities
are protesting the regime's failure to give factual news coy.-
erage to the upheavals in Poland and Hungary. Party func-
tionaries blame student restlessness on the Western press
and radio, and maintain that the developments were adequately
explained by Ulbricht and Premier Grotewohl in their 27 Octo-
ber radio and television broadcast.
East German leaders apparently accept the
Soviet policy to allow liberalization in the Satellites except
East Germany. Pressures for change, however, may develop
to such an extent that they will be forced to adopt a more lib-
eral internal program, particularly in the event that the USSR
withdraws its troops from other Satellites.
2 Nov 56
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5. PEIPING'S STATEMENT ON SOVIET-
SATELLITE RELATIONS
The Peiping regime has endorsed the
Soviet declaration of 30 October on re-
lations with the Satellites, and at the
same time has rebuked the USSR for
its earlier mishandling of Poland and
Hungary. This first Chinese Communist statement on the
question supports the view that Peiping wishes to see a
relationship between the Soviet Union and Eastern Euro-
pean states of approximately the kind Peiping itself enjoys.
' In terms similar to those of the Soviet
declaration, the Chinese statement describes as "com-
pletely proper" recent Polish and Hungarian demands for
"democracy, independence, and equality' as well as for
economic improvements.� The Chinese went beyond the
Soviet statement in a sharp criticism of "great-nation
chauvinism" as the cause of "serious damage" to inter-
national Communist solidarity. At the same time, they
cautioned the European Satellites against "reactionary
elements who attempt to undermine the people's democratic
system and unity among socialist countries."
2 Nov 56
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6- FIRST NATO REACTION TO ANGLO-FRENCH
INTERVENTION IN EGYPT
trong opposition to Anglo-French
intervention in Egypt was expressed
t a special North Atlantic Council
meeting called on 31 October to dis-
cuss east situation. There was particular
concern over the effect the developments might have on
the NATO alliance.
Council representatives deplored the
fact that action had been taken without prior consultation
with other NATO partners. Most of the representatives
at the meeting expressed support for the position pre-
sented by the United States. The Canadian representa-
tive regretted the British-French move because the sub-
ject was under consideration in the UN Security Council
and in view of the current developments in Eastern Europe.
He was supported by other members.
Apparently Britain does not envisage
invocation of the North Atlantic treaty. In answer to an
Italian question as to the effect from the treaty standpoint
of an Egyptian attack on British or French naval vessels
and aircraft in the Mediterranean, the British representa-
tive stated that the treaty was not intended to cover this
particular case.
2 Nov 56
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7. BRITISH TESTING SAUDI HOLD ON DISPUTED PERSIAN
GULF ISLAND
The British ambassador in Tehran in-
formed the American ambassador on
31 October that an armed British de-,
tachment was to land temporarily on
ra
s an
m
the Persian Gulf on 30 or 31 October to
check on the reported occupation by Saudi Arabia and to
test the determination of Saudi personnel to remain. The
detachment had instructions to fire only if necessary to
cover its withdrawal.
Comment As recently as 12 October, British offi-
cials. had indicated that Britain could
probably do no more than protest the Saudi occupation. The
decision to move onto Arabi may be designed both to dis-
tract Saudi Arabia's attention from the Egyptian situation
and to demonstrate Britain's determination to maintain all
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2 Nov 56
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Stel '190
its Middle: Eastern interests vigorously. London supports
Kuwait's sovereignty over Arabi, as well as over nearby
Farsi, recently occupied by Iran. These islands are im-
portapt nrineinallv for offshore oil operations in the Persian
Gulf.
2 Nov 56
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8. SUKARNO ADMIRES MAO TSE-T IJNG'S LEADERSHIP
in
The director of the Indonesian presi-
dent's personal cabinet, Pringgodigdo,
told the American ambassador in Djakarta
that Sukarno is "in love with the system
ma, is ee mg expansive and "braver" since his return
to Indonesia, and wants to pattern his leadership on that of
Mao Tse-tung. He said Sukarno has not thought through the
ramifications of such a role, however.
Pringgodigdo stated that he himself felt
the Chinese people were happy and well fed, and that the Chi-
nese leaders were close to the people and popular since they,
had brought "victory, unity, freedom, and progress:'
Comment Sukarno reportedly stated in a speech on
30 October that he had been more im-
pressed by his recent tour to the Soviet Union and Commu-
nist China than by his earlier visit to the United States and
Western Europe because in the former areas he had seen a
greater vitality in social and economic progress. Although
most members of Sukarno's entourage were highly impressed
with China, Pringgodigdo's opinion is the most enthusiastic
yet expressed by any anti-Communist who accompanied the
president.
Sukarno's favorable impression of the Chi-
nese system probably accounts for his suggestion on 28 Octo-
ber that political parties be abolished--an idea which has been
denounced by the press and all parties except the Communists.
2 Nov 56
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 1 November)
The Egyptian-dominated Arab confedera-
tion of labor has called on Arab workers to blow up Western
oil installations if necessary to stop the flow of petroleum.
The federation also called for destruction of foreign military
bases in Arab countries which could be used for aggression,
and for an immediate halt to loading and supplying of ships
and planes of "aggressive nations:' (Press)
An announcement from Baghdad states
that a meeting of all Baghdad pact powers except Britain will
be held "soon:' The Shah of Iran allegedly will chair the meet-
ing, which may also be attended by the president of Pakistan
(who is now visiting Tehran), and the Iraqi, Pakistani, Iranian
and Turkish foreign ministers. (Press)
Reports from Syria and Jordan indicate the
governments of these countries, while they feel obliged to sup-
port Egypt, are pessimistic over their capabilities. According
to one report, the Syrian army staff was reluctant to order mo-
bilization because neither the necessary materiel nor money
were available. The new Jordanian prime minister told Ambas-
sador Mallory on 31 October that his government was in a "terri-
ble position" and that the only thing which could save Jordan
Iraq, however, has proclaimed martial law
and partial mobilization. The Iraqi chief of staff stated on 1
November that the Iraqi 1st Division began concentrating at pump-
ing station H-3 near the Jordan border on 31 October, prepara-
tory to a move into Jordan as soon as a Jordanian request was
received. TIEP�ehIP-LaL icsta,ffhe ex ected the request later
in the day.
The Libyan government announced on 31
October that it would use all means in its power to prevent the
use of British forces in Libya against Egypt. According to the
press, Libya has declared martial law. British units in Libya
are reported on a precautionary a1prt: 12 tanks have been moved
to the vicinity of Benghazi.
2 Nov 56
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