CURRENT INTELLIGENCE BULLETIN - 1956/05/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185114
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: May 22, 1956

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CURRENT
INTELLIGENCE
BULLETIN
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22 May 1956
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
3.5(c)
3.3(h)(2)
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ITO
CONTENTS
1. FRENCH-SOVIET TALKS CONCLUDE
(page 3).
2. ELECTION RESULTS OPEN PERIOD OF INSTABILITY
IN SOUTH KOREA -](page 4).
3. LAOTIAN PREMIER MAY BE MEETING REBEL LEADER
(page 5).
4. RESIGNATION OF JORDANIAN CABINET
(page 6).
5. BURMESE IMPRESSED BY SOVIET TECHNICAL PERSONNEL
(page 7).
6. MOSCOW REPORTEDLY OFFERS $4,000,000 CREDIT TO
TURKEY (page 8).
22 May 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 8)
Current Intelligence Bulletin Page 2
-T-012--SEGR&T
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1. FRENCH-SOVIET TALKS CONCLUDE
Sharp differences between the French and
Soviet negotiators at the talks in Moscow
forced omission of several controversial
points from the joint communique. It was
agreed in principle to expand both cultural and commercial
relations.
The USSR rejected as premature or inap-
propriate a French proposal approving UN secretary general
Hammarskjold's efforts for Near Eastern peace. It refused to
insert a statement approving any future UN measures to put an
end to the arms race, such as an embargo on shipment of arms
to the Near East, unless specific mention was made of Iran and
Pakistan. This suggests that the USSR will insist on including
Middle East members of SEATO and the Baghdad pact in a Mid-
dle East arms embargo.
The French say they expect the communiqu�
reference to France's Algerian policy to have a sobering effect
on both the French Communist Party and such Arab countries as
Egypt. They believe the statement makes it clear that Algerian
policy is a Paris responsibility. This effect may be nullified,
however, by the Soviet version of the communiqu�and by Knru-
shchev's toast at a reception to "the Arabs and all others who are
struggling for national independence."
The American embassy in Moscow considers
that Mollet was firm with the Russians throughout the conversa-
tions, particularly on the point of France's allegiance to NATO.
The Russians bluntly rejected French efforts to include some
reference to German unification and to Paris' loyalty to its inter-
national alliances.
22 May 56
Current Intelligence Bulletin Page 3
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2. ELECTION RESULTS OPEN PERIOD OF INSTABILITY
IN SOUTH KOREA
President Rhee's 19 May acknowledg-
ment of Chang Myon's election as vice
president, together with opposition ac-
tion in postponing the funeral of Demo-
cratic leader Sin lk-hui, appears to
have averted large-scale violence in
South Korea. Rhee's cabinet has sub-
mitted its resignation, however, and
this may open a period of political instability as the Rhee
administration attempts to cope with a degree of opposition
unprecedented in South Korea.
Defense Minister Son has stated to
American charg�trom that the present situation is danger-
ous for both Rhee and Chang, with the possibility of assas-
sination.
President Rhee will probably accept the
resignations of certain of his ministers, and may offer cer-
tain government posts to members of Chang Myon's Demo-
cratic Party. Chang, however, while indicating a willing-
ness to co-operate with Rhee, has stated that he does not
desire a coalition government at this time.
22 May 56
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JELKE I
3. LAOTIAN PREMIER MAY BE MEETING REBEL LEADER
Comment
Souvanna Phouma has always indicated
to American officials that he intends
to deal firmly with the Pathet Lao. /
In a recent interview with Wilfred Burchett
of the London Daily Worker, Souvanna Phouma indicated that
in return for the restoration of government control over the
disputed northern provinces, he was prepared to welcome Pathet
Lao personnel into the administration and national army, "with-
out discrimination." He also declared that Laos would observe
the "five principles of coexistence."
22 May 56
Current Intelligence Bulletin Page 5
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L.J.C11-4.1111-1:4
4. RESIGNATION OF JORDANIAN CABINET
The resignation of the Jordanian
cabinet of Prime Minister Rifai on
20 May clears the way for a govern-
ment more responsive to Arab na-
tionalism and will probably result in
oser co-ordination of the external policies of Jordan and
gypt. For some months Rifai has not enjoyed the confi-
ence of King Hussain, who has shown a tendency to exer-
cise increasing authority. Rifai, who has attempted to
resist the spread of Egyptian influence in Jordan, has been
attacked by Egypt for failing to end his country's friendly
relations with Britain.
Said al-Mufti, who has been invited
to form a new government, has been prime minister three
times previously. He last resigned the premiership in
December 1955 during Britain's attempts to draw Jordan
into the Baghdad pact. One of his first acts in his new ca-
pacity was to announce his intention to amend the Anglo-
Jordanian treaty to make it "more compatible with Jorda-
nian interests."
He has also emphasized his plans for
a "purely Arab" cabinet. Some of the new cabinet mem-
bers will be chosen from outside parliament, according to
Arab press releases.
22 May 56
Current Intelligence Bulletin Page 6
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5. BURMESE IMPRESSED BY SOVIET TECHNICAL PERSONNEL
Initial skepticism in Burma regarding the
desirability of the technological institute
which the USSR has offered to build has
been overcome by eight Soviet experts
who have been in Burma for three weeks, according to the
American embassy in Rangoon. The embassy quotes one Bur-
mese government official as saying he has been impressed
by the Russians' excellent technical qualifications and their
understanding of the Burmese viewpoint.
The USSR reportedly plans to staff the pro-
posed institute with English-speaking instructors and is ready
to begin construction as soon as the Burmese government gives
its formal approval.
Comment The scope of the proposed institute had
aroused reservations among some Bur-
mese officials regarding its practicality, and they were also
concerned over its subversive possibilities.
The technological institute is the first
large project to be undertaken by the USSR in Burma. Soviet
success in gaining Burmese confidence in this project would
facilitate Moscow's entire assistance program in Burma.
22 May 56
Current Intelligence Bulletin Page 7
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6. MOSCOW REPORTEDLY OFFERS $4,000,000 CREDIT
TO TURKEY
Moscow has offered a $4,000,000 credit
to Turkey to finance imports of Soviet
goods. This offer, if confirmed, would
be the latest in a series of Soviet efforts to gain an economic
foothold in Turkey. The Turkish government has repeatedly
rejected all previous direct Soviet aid offers and, although
there is growing economic pressure within Turkey, the basic
Turkish suspicion of Russian intentions toward the Middle
East makes acceptance of any major Soviet economic aid of-
fer unlikely. The reported $4,000,000 credit might be ap-
proved, however, since it would facilitate Turkish imports
of goods which now require the expenditure of scarce foreign
exchange.
Ankara's refusal to date to accept a Soviet
credit has not prevented a sharp increase in Soviet bloc-
Turkish trade. Turkish-bloc trade turnover which in 1954
represented 12 percent of total Turkish trade had increased
in 1955 to about 20 percent. In 1955 Turkish imports from
the Soviet bloc amounted to about $20,000,000 more than ex-
ports to*the bloc. (Prepared by ORR)
22 May 56
Current Intelligence Bulletin Page 8
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* 1 3r,t,Itr, 1
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 21 May)
Former prime minister Rifai of Jordan, who
has just returned from the Arab League political committee meet-
ing in Damascus, said that at Syrian and Egyptian insistence, the
committee agreed to make formal protests to countries furnish-
ing arms to Israel. Rifai said he had been able "to inject enough
sense into the meeting" to prevent prior judgment regarding UN
Security Council action on the Hammarskj old mission until the
council acted.
An Egyptian foreign Ministry official has
told a UN truce official that Egypt insists on early implementa-
tion of the cease-fire agreement, and that if the UN Security Coun-
cil does not see it is complied with, Egypt will "take steps" to
make sure that it is implemented. The official reportedly said
"there will be no more fedayeen; from now on the armed forces
will be involved." The UN official and Ambassador Byroade be-
lieve these statements do not indicate that Egypt plans to launch
an attack, but that the statement reflects a "loss of patience."
Byroade comments that this attitude, taken together with Prime
Minister Nasr's recent speeches and the steady pressure in favor
of a "showdown," make it more probable that there will be an
Egyptian military response in force to any Israeli move which is
interpreted as an act of aggression, especially the diversion of
th7 Jordan waters at Banat Yacov.
American officials in Egypt commented re-
cently that while there are no grounds to believe Nasr has changed
his views in the direction of picking a fight with Israel, the atmos-
phere in Egypt appears somewhat more dangerous, with an increased
voicing of belligerent views in the army and in some business cir-
cles.
the
Soviet passenger-freighter Krim left Alexandria on 6 May.
with 68 Soviet men, women, and children, 12 Egyptian civilianS,
and 301 officers and men of the Egyptian armed forces. Of the
22 May 56
Current Intelligence Bulletin
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La LA 1
111.1 '400
Egyptian military personnel, 101 were army, 160 navy, and
40 air force. This report, in conjunction with the recent re-
port that 66 Soviet technicians had arrived in Egypt, suggests
that there may be a rotation of various Soviet bloc technicians.
The number a Egyptian naval personnel on the Krim suggests
the possibility that they are to undergo training in the Soviet
Union prior to Egypt's acquisition of submarines or possibly
destroyers.
A Yugoslav iressel, believed to be the Celik,
arrived in Alexandria on 17 May under heavy security precautions,
and carried an un-
determined number of motor torpedo boats on its deck. Yugo-
slavia Dreviouslv delivered 12 motor torpedo boats to Egypt.
the Soviet freighter Smela, which had loaded at Odessa on
7 May, unloaded six tanks, 18 assault guns (probably 100-mm),
12 antiaircraft guns (probably 8.5-mm), three fire-control com-
puters with spare parts, 9,000 submachine guns, 14 military
vehicles, and 400 tons of ammunition at the Syrian port of Latakia.
In addition, training planes (presumably the MIG trainers ordered
from the Soviet bloc by Syria) arrived in Alexandria on 8 May.
They will probably be used by Syrian pilots currently training in
,Egypt.
the Czech chief of staff had agreed to undertake a
complete study of Syria's air defense and recommend necessary
equipment. The increasing bloc interest in Syria's air defense,
Including the construction of a new military airfield at Aleppo,
also raises a security problem for nearby NATO military installa-
tions in Turkey and Cyprus.
22 May 56
Current Intelligence Bulletin Page 10
t OP _SECrET
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