CURRENT INTELLIGENCE BULLETIN - 1956/11/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03180486
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 21
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: November 4, 1956

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4 November 195
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CURRENT
INTELLIGENCE
BULLETIN
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. THE SITUATION IN HUNGARY
2. HOSTILITIES IN EGYPT
3-077 AND IRAQI TROOPS ENTER JORDAN
(page 9).
. OTAGE OF MIDDLE EAST OIL FACILITIES
(page 11).
(page 3).
5. INDIAN REACTION TO THE MIDDLE EAST CRISIS
(page 14).
(page 6).
6. PEIPING'S PROTEST AG41NSTBRITISH AND FRENCH
"WANTON AGGRESSION" (page 16).
7. REACTIONS TO SUEZ POLICY IN BRITISH AND FRENCH
PARLIAMENTS (page 17).
8. SOVIET MERCHANT SHIPS ORDERED OUT OF SUEZ AREA
(page 18).
9. SUBMARINE DESTINED FOR EGYPT RETURNING TO. POLAND
(page 19).
10. INDONESIAN ARMY AND POLICE CONSIDERING MILITARY
DICTATORSHIP (page 20).
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1. THE SITUATION IN HUNGARY (Information as of 2400,
4 November)
Fighting continues in Budapest and in
certain isolated areas in the provinces,
although Soviet troops and their collab-
orators in the new Hungarian "Workers
and Peasants Revolutionary Government"
established the morning of 4 November
appear to be in control of all border
areas and almost all key urban areas.
The premier of the new Communist re-
gime, Janos Kadar, reportedly de-
clared late in the day on 4 November
that "armed gangs of rebels are still
murdering" and that there was still
danger that they might get the upper
hand. In midafternoon of the same day,
Soviet aircraft reportedly bombed the
western part of Budapest, some hours
after Moscow radio had hailed the "crushing" of the "counter-
revolutionary and Fascist" forces.
At least seven Soviet divisions are be-
lieved to be engaged in the fighting�two normally stationed
in Hungary, two that had been brought in during the fight-
ing on 24-25 October and three that apparently moved in dur-
inz the oast several days.
some estimates place the incre-
ment since 24 October as high as twelve divisions. In an-
swer to Ambassador Bohlen's remark on the evening of
3 November that the USSR was still putting troops into Hun-
gary, Khrushchev answered that the Soviet Union had enough
troops there, but if not, "We will add more and more if
necessary!'
Fighting continued throughout the day on
4 November and reports of clashes between Soviet and Hun-
pwian military units are confirmed.
the two Soviet divisions normally stationed in Hungary
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to cap-
ture ana disarm the Hungarian troops without violence, but
in the event of opposition the order appears to be to destroy
them. the Soviet com-
manders are under orders not to conduct negotiations, to
break opposition ruthlessly, and to disperse the population.
Resistance to the Soviet attack, launched
throughout the country at about 0500 hours on 4 November, ap-
parently was disorganized and conducted largely by irregular
forces, including armed workers and students. The Hungarian
defense minister and the chief of staff were arrested before
the attack began by Soviet officers who had been engaged in
negotiations--begun the previous day--with them concern-
ing Soviet troop withdrawal. Premier Nagy and most of the
ministers in his short-lived coalition government were ar-
rested in the morning when Soviet troops captured the Par-
liament building in central Budapest. Nagy had time only to
announce the attack over Budapest radio at 0515 and to appeal
desperately for help from the outside world. Virtually all
free Hungarian radio stations in the country were in Soviet
hands by noon.
The USSR's decision to resume military
action against the Hungarian revolt apparently was made on
31 October after it had become clear that the program of the
Nagy regime would result in the severance of close Hungarian
ties with Moscow. Mikoyan and Suslov, the two Soviet lead-
ers most closely concerned with Hungarian developments :in
the past, arrived in Budapest on 31 October, perhaps to an-
nounce this decision to Kadar.
The new Communist government headed
by Kadar was formed coincidentally with the Soviet attack
on 4 November; one of its first acts was to appeal for Soviet
armed assistance to put down the "counterrevolution" of the
"sinister forces of reaction' Nevertheless Kadar, in a
speech at 0810, assailed the "Rakosi-Gero clique" for vio-
lations of legality, promised to carry out a national Commu-
nist, Gomulka-like program and, after calm is restored,
to negotiate with the USSR and other Warsaw pact states for
the withdrawal of Soviet troops from Hungary.
The fate of Hungarian political leaders
who during the past week had declared themselves in open
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opposition to both the USSR and to Communism at home is un-
certain. Cardinal Mindszenty, however, has received
political asylum in the American legation in Budapest and
Social Democratic leader Ana Kethely was safe in Austria
when the Soviet forces attacked.
Reaction to the Soviet move elsewhere
In the Soviet bloc has included echoes of the Moscow line
from all Satellite capitals and from Peiping. Yugoslavia
has also accepted the USSR's interpretation of Hungarian
developments with virtually no reservations. Socialist
party leader Nermi in Italy, however, has condemned the
Soviet move. According to a Rome broadcast, Nenni stated
on 4 November that the USSR's substitution of force and
power for proletarian internationalism is unacceptable and
expressed the hope that the Soviet Union will reconsider its
Z.C.love, withdraw its troops, and recognize Hungary's neu-
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2. HOSTILITIES IN EGYPT (information as of 2400,
4 November)
The Anglo-French invasion of Egypt
began with an airborne assault at
dawn on 5 November, according to
a communique of the allied command.
The objectives of the attack were not
immediately confirmed. Anglo-French
airborne forces on Cyprus prior to the
attack numbered at least 7,400. Addi-
tional troops and supporting weapons and
equipment may be airlifted in as soon as
an airfield is secured. Seaborne as-
sault forces en route from Cyprus,
Malta and the western Mediterranean
will probably begin arriving within 24
hours. Additionally, the British Third
Infantry Division, consisting of 17,000
men, left Southampton for the Mediter-
ranean on 1 and 2 November. The plan-
ners of the Anglo-trench operation against Egypt calculate
that the Suez Canal zone can be occupied and controlled within
10 days.
Egypt has completed the withdrawal of
its troops across the Suez Canal, and was not lured into com-
mitting its main force in Sinai. With military installations
and transportation under heavy Anglo-French air attack,
Egypt is attempting to disperse military vehicles, equip-
ment and supplies among the villages in the Nile delta and
on the approaches to the canal. Nasr's plan appears to be
to confront the Anglo-French governments with the prospect
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stimor
of a long, expensive, unorthodox campaign involving war
against the Egyptian civilian population. The canal has,
meanwhile, been blocked by scuttling at least seven ships,
including major canal maintenance vessels, and by demo-
lition of the Firdan Bridge. the canal's only highway cross-
ing.
"the destruction oi Port Said has as-
sumed impressive proportions."
Egyptian troop strength in the canal
zone at the beginning of hostilities is believed to have been
at least 15,000, including an armored group and three in-
fantry brigades. These forces have by this time probably
been increased to at least 30,000 by reinforcements, largely
armor and artillery, from Cairo and Sinai. The Israelis
claim to have killed, wounded or captured about half of the
36,000 Egyptian troops in Sinai at the beginning of the fight-
ing.
Israeli forces have virtually completed
mopping up the Sinai Peninsula with the seizure of the town
and airfield at Tor on the Gulf of Suez, coast defense posi-
tions at Sharm al-Shaikh, and the islands of Tiran and
Sanafir guarding the entrance to the Gulf of Aqaba. Israeli
forces are operating in the vicinity of the canal opposite
uez and Ismailia, and are closing toward Port Said.
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3. SYRIAN AND IRAQI TROOPS ENTER JORDAN
The recent entry of Syrian and Iraqi
troops into Jordan raises the immediate
prospect of Israeli counteraction by an
attack toward the Jordan River. For
several days Israel has been shifting
troops to the Jordanian and Syrian bor-
ders and laying field communication
wire. Heavy movements of tanks toward
Jordan have been observed by American
officials in Tel Aviv,
The Syrians probably entered Jordan on
1 or 2 November. According to previous
plans of the Arab joint command in Cairo
which were later canceled, Syria was to
prepare one armored brigade and one in-
fantry brigade to enter Jordan for an at-
tack on Israel. The location of Syrian
troops in Jordan is unclear, although
some are probably in the area immediately south of Lake
Tiberias along the Jordan River. Observers of the UN truce
supervisory organization on 3 November reported seeing a
truckload of Syrian troops in the Nablus area in West Jordan.
Arrival of Syrian troops on the west bank of the Jordan River
would probably be regarded by the Israelis as a severe provo-
cation.
Elements of Iraq's 1st Division, which
had been concentrated in the vicinity of H-3 pumping station
40 miles east of the Jordan border, entered Jordan on the
night of 3 November. One brigade of this division will re-
portedly take up positions in the vicinity of Mafraq and Salt,
north and west of Amman, in east Jordan. Two Iraqi air
force squadrons, one of Sea Fury piston attack aircraft and
possibly one of Vampire jet fighters, may accompany the move.
Following the redeployment of British
forces from the Aqaba area, Jordan requested the entry of .a
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Saudi Arabian regiment into south Jordan to prevent Israeli
seizure of Aqaba.
Saudi forces in the Gulf of Aqaba area have been reinforced
and that a Saudi force may enter Jordan shortly. After be-
ing cut off by the Israeli drive across Sinai, Egyptian forces
stationed at the entrance to the gulf escaped across the straits
to join the Saudi garrison. Israel has, meanwhile, informed
the United States that it has reliable information that Egypt
has transferred 20 IL-28 jet bombers and an unknown number
of MIG-15 jet fighters to Saudi Arabia, where Israel fears
they are regrouping for an attack.
13 Egyptian aircraft had arrived at Saudi
airfields on the previous day, and the American embassy in
Jidda reported the arrival and departure of five IL-28 jet
bombers.
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4. SABOTAGE OF MIDDLE EAST OIL FACE
Egyptian agents have sabotaged the
Iraq Petroleum Company (IPC) pipe-
lines which run from Kirkuk to the
Mediterranean, and possibly the Amer-
ican-owned Tapline Company pipeline
from Saudi Arabia. Ambassador
Moose in Damascus on 4 November
reported "heavy damage or destruc-
tion" of IPC pumping stations. Syrian
officials disclaimed knowledge of
where the damage was done or who had
done it. A large fire has been reported
at the IPC terminal at Baniyas, Syria,
and three fires have been observed at
pumping stations.
IPC stopped pumping oil to the Mediter-
ranean as of 0300 on 3 November, following a Syrian cut of
IPC communications with the pumping stations. Other IPC
operations are reported normal. A Cairo broadcast stated there
has been damage to Tapline, but no shutdown has been reported.
Authorities in Beirut and Damascus
have given the American embassies there definite assur-
ances that they are determined to do their best to protect
the pipelines.
cesses in Libya.
Egyptian saboteurs have had new sue-
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the "demolition" of Barclay's Bank in Tripoli
and "explosions and fires" set off at "encampments and the
chief fuel dumps:' Eliritish soldiers
had been assassinated,
Libyan prime minister Ben Halim
has stated his determination to act against sabotage, but
said that the British were complicating his problems by their
"militaristic displays."
Qatar,, the Trucial Coast and Muscat
are quiet following the sabotage of the sipeline in Qatar,
Rioting was still going on in Bahrein, however, including
looting and arson in, foreign residences. Bahrein Petroleum
Company officials say that about 85 percent production can
be maintained under strike conditions provided there is no
sabotage and tanker loadings remain normal. Kuwait is also
auiet
Egyptian agents were nav-
ing difficulty obtaining demolition equipment for sabotage of
Kuwait oil installations.
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5, INDIAN REACTION TO THE MIDDLE EAST CRISIS
India approves American actions to
date in the Middle East crisis, and
through various sources such as Vice
President Radhakrishnan and elder
statesman Raj agopalachari is urging
that the United States continue to pro--
vide strong leadership. Prime Minister Nehru reportedly
the
"world's two largest democracies,'
India and the United States, must work
LuguLliez 40 a 1, Ce3,111. Nehru is also reportedly considering
a trip to New York to address the UN General Assembly.
Nehru is apparently more disturbed
than he was after the Korean invasion in 1950, and seems
inclined to take firmer action than he did at that time.
Radhakrishnan told the American consul general in Madras
that he felt India would be willing to guarantee Israeli terri-
torial integrity as part of a package deal involving removal
of British, French, and Israeli troops from Egypt. He said
that the United States should spearhead a UN force to occupy
the Suez area and that he was confident India would be will-
ing to participate in such a force, Rajagopalachari echoed
these views.
India's affirmative vote for the Cana-
dian "police force" resolution passed by the UN General
Assembly on 4 November bears out Ratthakrishnan's re-
marks, and a subsequent press report names India among
five nations tentatively offering men. In view of events in
Hungary on 4 November, India is unlikely to support the
use of Soviet troops for this purpose.
The Indian government is reportedly
considering withdrawal from the Commonwealth, apparently
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initially with the idea of using this as a threat against
Britain. The matter may be discussed at a Colombo pow-
ers premiers' meeting, announced on 3 November as
scheduled to be held in New Delhi shortly. Pakistan might
join India in threatening to withdraw since, according to
Prime Minister Suhrawardy, sentiment from the cabinet
on down favors severing Pakistan's tie with the Common-
wealth.
India has announced that it does not
consider a meeting of the Bandung powers, so t b the
USSR and Indonesia, as desirable at this time.
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6. PEIPING'S PROTEST AGAINST BRITISH AND FRENCH
"WANTON AGGRESSION"
Peiping's official protest of 3 November
over the "wanton aggression" of Britain
and France against Egypt concludes with
the warning that persistence in this
course will entail "inestimably grave
consequences."
Previous statements had suggested that
Chinese Communist leaders were considering what action
they might take in the Suez crisis in order to increase the
bloc's influence in the Asian-African countries. The Anglo-
French action creates an opportunity for Peiping to threaten
retaliation against Hong Kong in order to bring pressure to
bear on the British.
There have been indications of increases
in Chinese Communist ground force strength near Hong
Kong in recent weeks. Some 65,000 Chinese troops are
within 50 miles of Hong Kong, which could probably not be
held long by British forces alone. There are approximately
14,000 troops in Hong Kong.
Peiping's various statements about Egypt
have been similar to but not so violent in tone as its pro-
nouncements prior to intervention in Korea in autumn 1950.
Further and stronger denunciations of the British would
probably precede an attack on Hong Kong
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7. REACTIONS TO SUEZ POLICY IN BRITISH AND
FRENCH PARLIAMENT'S
The resignation of Anthony Nutting, a
protege of Prime Minister Eden, as
minister of state in the Foreign Office--
announced on 4 November--provides a
potential rallying point for any spread
of Conservative disaffection with Prime
Minister Eden's Middle East policies.
Nutting, however, does not have a large
personal following, and most other Con-
servatives with misgivings have so far
refrained from expressing them publicly.
The American embassy estimated on
2 November that although some 30 Conservative members,
of Parliament are distressed at the government's actions,
Eden will continue to command a majority provided Britain's
military intervention in Egypt is short and decisive. The
government's margin in the vote of confidence on 1 Novem-
ber was 59.
In France, too, there is a strong feeling
that speed is essential. Premier Mollet still has the solid
support of all non-Communist elements for his Suez policy,
but worry over the possible repercussions in North Africa
continues.
The non-Communist press continues to
back Mollet, but some editors have indicated privately their
concern over the government's policy. Embassy contacts in the
working level of the Foreign Ministry have expressed strong
disapproval of Mollet's action, and some Socialist leaders,
though withholding their criticism, are known to be opposed.
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8. SOVIET MERCHANT SHIPS ORDERED OUT OF
SUEZ AREA
Comment The USSR is obviously seeking to avoid
direct involvement of Soviet-flag ships
in hostilities. At least one of these ships was probably car-
rying arms.
As of 3 November, six other Soviet
merchant vessels were in the Red Sea, apparently lying to
and awaiting additional instructions. In the Mediterranean,
two Soviet tankers were last noted lying off Port Said with
a canal convoy.
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9. SUBMARINE DESTINED FOR EGYPT RETURNING
TO POLAND
the Polish submarine M-1Oi�dIth
Polish merchant ship escort reversed
course on 1 November after passing through
the Straits of Gibraltar en route to Egypt.
These vessels had left the Mediterranean
by 2 November, presumably to return to
Polish naval headquarters at Gdynia.
The M-107. a Soviet-built coastal sub-
marine, left the Baltic and apparently was the
first of two submarines scheduled for delivery to Egypt under
the Soviet-Egyptian arms deal. It is apparently manned by
Soviet and Polish crewmen.
it was impossible
for the USSR to deliver further aid to Egypt at present be-
cause of the Anglo-French air-sea blockade.
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Name"
10. INDONESIAN ARMY AND POLICE CONSIDERING
MILITARY DICTATORSHIP
Indonesian
army leaders and the chiei o
police have agreed that the only way
out of the country's "present unhealthy
situation" is to have a military dictatorship. They have not
decided whether the junta should use President Sukarno and
Vice President Hatta for a front.
Army and police circles believe Sukarno
wants to set himself up as a dictator, a development they
oppose. They also believe all parties except the Commu-
nist party would oppose it.
Comment Certain top Indonesian army leaders,
angered at corruption in the govern-
ment, have been considering a coup for several months.
This is the first report that the police force is involved in
the plotting.
Following his return from China re-
cently, Sukarno suggested the abolition of all political par-
ties and indicated he would like to assume a role like that
of Mao Tse-tung or Tito.
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