CURRENT INTELLIGENCE BULLETIN - 1956/07/17

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185121
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: July 17, 1956

"171 /#Approved
for Release:
CURRENT
INTELLIGENCE
BULLETIN
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C03185121, 34)(24
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17 July 1956
Copy No. 105
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CONTENTS
1. BRITAIN PROPOSES FURTHER RELAXATION OF CHINCOM
CONTROLS (page 3).
2. CHOU EN-LAI SEES PRACTICAL CO-OPERATION AS PREL-
UDE TO JAPANESE RECOGNITION (page 4).
3. FINNISH-SOVIET BORDER TALKS REPORTED
(page 5).
THE ARAB-ISRAELI SITUATION
(page 6)
17 July 56 Current Intelligence Bulletin
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MCRLIL
1. BRITAIN PROPOSES FURTHER RELAXATION OF
CHINCOM CONTROLS
The vigorous British policy statement
to CHINCOM on 13 July is an evident
move toward a substantive discussion
of the China trade control differential,
probably in late August or September. The British dele-
gate considered the existing differential no longer "logical
or defensible," and cited the general CHINCOM approval of
increasing numbers of exceptions to support his view.
The British proposal that CHINCOM be
kept as a "co-ordinating body for control of those exports
to China that are now considered of strategic importance"
seems an attempt to maintain the agreement with the US
not to revise formally the China lists this year.
In the meantime, Britain evidently will
increasingly license "exceptional" shipments to China where
the US is the only objector. British shipment of 350 Land
Rover jeeps and 50 heavy tractors to China was approved in
CHINCOM discussions on 13 July with only the United States
expressing opposition. A number of the other delegates in-
dicated that they would regard the action as a precedent for
their own trade with China.
The depressed state of the automotive in-
dustry in Britain has led to rising parliamentary criticism
of the government's adherence to CHINCOM controls.
1'7 July 56
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2. CHOU EN-LAI SEES PRACTICAL CO-OPERATION AS
PRELUDE TO JAPANESE RECOGNITION
Chou En-lai's suggestion during a press
conference on 15 July that Tokyo and Peiping
strive for "actual co-operation" in practi-
cal matters is in line with Peiping's recent
efforts to increase the number of unofficial
contacts with Japanese business and professional groups. Last
spring the Chinese renewed an informal fisheries agreement
with Japanese fishing interests and an exchange of unofficial
trade missions is now under consideration.
Chou commented that such "formal matters"
as resumption of diplomatic relations or a treaty could be left
in abeyance "for the moment" while practical problems were
solved at a lower level. Peiping took the initiative in one such
problem late last month by releasing some 300 Japanese "war
criminals." The Chinese have promised that additional pris -
oners will be freed soon.
Peiping's confidence in the eventual success
of these tactics in achieving formal recognition is reflected in
Chou's comment that he did not believe Premier Hatoyama was
entirely opposed to the resumption of diplomatic relations but
was "closing one of his eyes" to the problem at present. Chou
added that such matters could be settled at a personal meeting
with Japanese foreign minister Shigemitsu and pointed out that
� the Peiping airport was ready for either Shigemitsu or Hatoyama
"at any time;'
17 July 56 Current Intelligence Bulletin
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3. FINNISH-SOVIET BORDER TALKS REPORTED
The American embassy in Helskinki has
been informed that President Keldamen is
personally directing talks with the Soviet
ambassador regarding border adjustments
witnout trie Foreign Ministry's participation. A high Foreign
Ministry official has commented that he does not expect the
subject to be discussed during Voroshilov's official visit to
Finland in mid-August.
Finnish public reaction to the changed sta-
tus of the ICarelo-Finnish .SSR has thus far been slight, with
only one paper cautiously commenting that it had some "inter-
esting features:'
Comment The Izvestia article of 13 July attacking
"those who agitate for a revision of the
Soviet-Finnish border" is likely to dampen Finnish hopes that
a border alteration is imminent. However, the forthcoming
talks with the USSR over the status of the Saimaa Canal will
provide the Finns with an opportunity to present their case for
a broader border adjustment.
17 July 56
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Ned ,Quir
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 16 July)
Ambassador Lawson in Tel Aviv, noting
that the two most prominent Egyptian "fedayeen" terrorist lead-
ers, Colonel Hafez in Gaza and Colonel Mustafa in Jordan, have
been victims of explosions during the last week, comments that
a comprehensive Israeli plan to cope with the marauder problem
may be unfolding. He believes that Secretary General Hammar-
skjold, upon his arrival in the area at the end of the week, may
be confronted with a more serious and complex situation than pre-
viously anticipated.
Jordan has charged, meanwhile, that during
the night of 14 July an Israeli force estimated at one company of
infantry crossed the Jordan-Israel border south of the Dead Sea
and reconnoitered Jordanian territory.
The British Foreign Office is disturbed over
the Israeli attitude toward incidents along the Jordan-Israel border,
and is inclined to believe that Israel may again be in process of
creating an atmosphere in which to undertake reprisals. Accord-
ingly, the Foreign Office expects to caution Israel anew on the
danger of reprisal raids--re-emphasizing Britain's treaty obliga-
tions to support Jordan if it is attacked.
17 July 56
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