CURRENT INTELLIGENCE BULLETIN - 1956/07/15

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185120
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: July 15, 1956

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CURRENT
INTELLIGENCE
BULLETIN
C03185120
r(11,
.3(h)(2)
15 July 1956
Copy No. 105
DOCUMENT NO.
1- I (
DECLASSIFIED 00,
NO CHANGE IN CLASS
CLASS. CHANGED TO: IS
C
NEXT REVIEW DATE: -4046-
ADUTFElliH,)710.*
AT
REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
i�d REVOLT REPORTEDLY PLANNED IN PERU FOR
16 JUL* (page 3).
2. FRANCE MAY SEEK TO SCHEDULE TRADE CONTROL
TALKS FOR AUGUST (page 4).
3. AMERICAN LEGATION COMMENTS ON HUNGARIAN
FACTIONALISM (page 5).
4. BURMESE LEADER DISCUSSES RELATIONS WITH SINO-
SOVIET BLOC (page 6).
5. JAPANESE PROPOSE MISSION TO INVESTIGATE OKINAWA
LAND PROBLEM (page 7).
6. STUDENT DISORDERS IN HONDURAS
* * *
THE ARAB-ISRAELI SITUATION
(page 9)
15 July 56
page 8).
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Noe Numv4
1. REVOLT REPORTEDLY PLANNED IN PERU FOR
16 JULY
military
1 and civilian elements there are plan-
ning to stage a revolt on 16 July to nullify the results of
last month's presidential and congressional elections, ac-
cording to the American armed forces attaches in Lima.
The attaches note that the military commander in Arequipa
-is known to be close to Minister of War Indacochea who was
scheduled to arrive in Arequipa on 15 July, purportedly to
dedicate a new army barracks.
The attaches believe that any attempted
revolt is not likely to receive widespread support.
Comment Success of a revolt at this time prob-
ably depends on the attitude of Peru's
all-military cabinet. These officers have reportedly been
in control of the government for the past three to four weeks
while hospitalized President Odria has become a mere figure-
head.
Many senior military officers, includ-
ing at least some cabinet members, are currently concerned
over the apparent good relations between conservative presi-
dent-elect Manuel Prado and the outlawed leftist but non-
Communist APRA party which gained significant strength in
the recent congressional election. Consequently, the cabi-
net may be fomenting a revolt as an excuse for continuing in
power. Recent reports have suggested, however, that the
present cabinet intends to permit the installation of the new
government, as scheduled,on 28 July and that the military will
act only in the event of subsequent unfavorable developments.
15 July 56
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,tme CONFIDENTIAL
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2. FRANCE MAY SEEK TO SCHEDULE TRADE CONTROL
TALKS FOR AUGUST
The French COCOM delegate told Ameri-
can officials in Paris that Foreign Minis-
ter Pineau is pressing him strongly to
arrange talks among the US, UK and France
on e re uc ion of COCOM controls as well as the elimination
of CHINCOM differentials. The delegate suggested late August
as the earliest possible time for a meeting.
He indicated that the recent visit to Wash-
ington had encouraged Pineau to push for such talks. At
Pineau's insistence, the delegate has drawn up a list of pos-
sible deletions in COCOM controls.
Comment France has been seeking revision of CHIN-
COM controls for about a year, but is op-
posed by the US and, in principle, the UK. The UK, by using
the exceptions procedure, has greatly expanded its trade with
Communist China.
A press announcement that the US has ap-
proved shipment of 7,800 tons of sheet metal for autos to the
USSR--the first such shipment to a Sino-Soviet country since
1947--may further encourage France and other countries to
press for less restrictive East-West trade controls.
15 July 56
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3. AMERICAN LEGATION COMMENTS ON
HUNGARIAN FACTIONALISM
The American legation in Budapest
believes that dissension within the
Hungarian Communist Party is not
settled, despite a strong counterat-
y e pro-Rakosi group which sponsored a 30 June
central committee resolution condemning an antiparty
movement. On the contrary, strife within the party has
reached a new peak.
The legation speculates that Rakosi
may have returned from Moscow with sufficient support
to maintain his position temporarily. The USSR, however,
must consider his limited following within the party a lia-
bility, and his removal as first secretary is a "distinct
possibility before too long:'
Comment Developments of the past five months
have undoubtedly shaken Rakosi's posi-
tion in Hungary, but he apparently continues to be viewed
by Moscow as "indispensible:'
Following Soviet presidium member Suslov's
"fact finding mission" to Hungary in mid-June, Rakosi re-
portedly went to Moscow, presumably to obtain new instruc-
tions. Rakosi subsequently initiated his first major effort to
check the "moderate" faction and whip the party rank and file
into line. This was the central committee resolution on 30
June which sharply condemned a "malignant antiparty move-
ment which has launched an attack gradually increasing in
strength against the policy and leadership of our party!' Mos-
cow's approval of this action was indicated by Pravda's re-
print of the resolution on 8 July.
Current Soviet policy for Hungary appears
to be to encourage adoption of the reforms called for by the
20th CPSU Congress through a series of carefully planned re-
laxations under the firm control of party strong-man Rakosi.
15 July 56
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4. BURMESE LEADER DISCUSSES RELATIONS WITH
SINO-SOVIET BLOC
Comment
Kyaw Nyein may have overstated his lack
of enthusiasm for economic aid from the
bloc in order to improve the prospects for an American loan.
There have been other indications, however, of a desire on
the part of the new government under Premier Ba Swe to re-
verse the trend toward closer ties with Moscow and Peiping.
This is the first report revealing Peiping's
offer of arms and trgining to the army. Burma's strongly anti-
Communist military leadership would be likely to oppose such
aid.
Chou En-lai's equivocation on the Sino-
Burmese boundary issue and his refusal to extradite the ICachin
renegade Naw Seng have heightened Burmese concern over the
subversive threat posed by Peiping.
15 July 56
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5. JAPANESE PROPOSE MISSION TO INVESTIGATE
OKINAWA LAND PROBLEM
The Japanese Liberal-Democratic
and Socialist Parties agreed on 13 July
to send a mission composed of five
lower house members to Okinawa "to
stion of the United States purchase of land
for military bases, according to Ambassador Allison. In
response to Allison's request that the Japanese government
head off the proposed mission, Chief Cabinet Secretary
Nemoto maintained the government should not intervene in
what was regarded as Diet action.
Liberal-Democratic party secretary
Kishi has indicated that he fears an American rejection of
the proposed mission might inflame Japanese popular opin-
ion, which is beginning to take a more reasonable attitude
toward the Okinawan controversy. Kishi also stressed that
the Diet steering committee action, in limiting the mission
to five members, was in itself a compromise and he is seek-
ing an arrangement which might permit the Japanese group to
go to Okinawa.
Comment The Japanese government and the Liberal-
Democratic Party have been under heavy
domestic criticism over what has been characterized as a
"weak-kneed" attitude toward the United States in the Okinawa
land issue.
Socialist gains in the recent upper house
election have been credited to exploitation of this controversy.
The conservatives"desire to send a. mission to Okinawa probably
is aimed at convincing the public that the government is making
a positive effort to assert Japan's interests.
15 July 56
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*we
6. STUDENT DISORDERS IN HONDURAS
strike on 9 July.
Press reports indicate that student riots
in Tegucigalpa, which began on 10 July, are
still in progress after three major clashes
with police. The disorders followed the
exile on 9 July of three prominent Liberals,
including party chief Villeda Morales, and
the arrest of several students after the uni-
versity students voted to begin a three-day
The students are also demanding the ouster of
the university rector.
On 10 July,
the Communists were attempting to take control of the
student disorders, and had drafted a handbill asking the work-
ers to unite with the students.
The government, which thus far appears to
control the situation, has charged that the opposition and Com-
munists are behind the student moves in an effort to overthrow
the regime of Chief of State Lozano.
15 July 56
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 15 July)
Israeli sources report that an Israeli
civilian was killed near Lydda airport on the night of 13 July.
Israel charges the attack was made by four Arab infiltrators.
(Press)
The Israeli cabinet decided at its special
session on 11 July to take no reprisal for recent incidents in=
volving Jordan, but authorized Prime Minister Ben- Gurion to
take necessary action without further cabinet approval in the
event of a future serious incident attributable to Jordan.
the possibility of Israeli
retaliatory action must not be discounted. there
has been some movement of the Israeli army toward strategic
locations and some call up of civilian transport.
Jordan is increasing the number of its "fedayeenr The
recruits are to be under overall Jordanian army control but direct
civilian supervision. the Druze tribes in
Syria were providing substantial numbers of recruits. He added
that a "fedayeen" leader in Lebanon, will be provided with Jor-
danian "fedaveen" personnel for incursions into Israel.
15 July 56 Current Intelligence Bulletin
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