CURRENT INTELLIGENCE BULLETIN - 1957/07/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03189011
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: July 3, 1957

Approved for Release: 2019/12/10 C03189011
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CURRENT
INTELLIGENCE
BULLETIN
3 July 1957
Copy No.
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7
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136
3.5(c)
3.3(h)(2)
REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
st.61
This document contains classified information affecting
the national security of the United States within the.
meaning of the espionage laws, US Code Title 18, Sections
793, 794, and 798. The law prohibits its transmission
or the revelation of its contents in any manner to an un-
authorized person, as well as its use in any manner
prejudicial to the safety or interest of the United States
or for the benefit of any foreign government to the detri-
ment of the United States.
TOPS ET
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CONTENTS
KISHI'S TRIP TO ITS NOW VIEWED MORE FAVORABLY
IN JAPAN (page 3).
CIA'S POSITION AS PHILIPPINE PRESIDENTIAL
CONTENDER WEAKENING (page 4).
3. INDIAN ECONOMIC SITUATION DETERIORATING RAPIDLY
(page 5).
4. PLAN TO ASSASSINATE GUATEMALAN PRESIDENT
REPORTED page 6),
3 July 57
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Art. -CONFIDENT-ME
1. KISHI'S TRIP TO US NOW VIEWED MORE FAVORABLY
IN JAPAN
Reference:
Japanese prime minister Kishi was met
at the Tokyo airport by the largest crowd
ever to graet a returning Japanese digni-
tary. The general Japanese reaction is
considerably more favorable than indicated by the newspapers.
Influential political commentators are in nearly unanimous
agreement that Kishi achieved a moderate but nevertheless
real success; that the public as a whole recognizes this; and
that Kishi's own prestige has been enhanced greatly by the trip.
The press continues to express doubts and
reservations as to what Kishi actually accomplished, but seems
to agree that he performed a difficult and trying task very well.
The embassy comments that the defensive tone of the papers sug-
gests that they are somewhat embarrassed by their earlier ex-
cessive criticism and also sense that they have not been in line
with "national sentiment" on the trip. The embassy notes that
even Kishi's critics have recognized that he probably has no peer
among present-day Japanese leaders in the complicated business
of "getting along with Americans."
3 July 57
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2. GARCIA'S POSITION AS PHILIPPINE PRESIDENTIAL
CONTEND
Comment on:
There are increasing signs that Phil-
ippine president Garcia is running into
serious difficulties in his fight to gain
the Nacionalista Party's nomination to
succeed himself. Party chairman Rodri-
guez reportedly is encouraging other
Nacionalista aspirants to run in the hope
of improving his own prospects for candi-
dacy by splitting party ranks at the convention scheduled for
27-28 July. Party leaders are said to be concerned over the
lack of popular enthusiasm for Garcia evident during recent
campaign tours.
Influential senator Laurel, whose son ap-
pears the strongest contender for the vice-presidential nom-
ination, states he is pessimistic over Garcia's chances for
election in November against the probable Liberal Party slate
of Yulo and Macapagal. Laurel, who asserts that the Nacion-
alistas now have less than 50 percent of their vote-drawing
power in 1953, says that his son will withdraw as a vice-pres-
idential candidate and that he himself will announce his candi-
dacy for the presidential nomination on the Nacionalista ticket
if it appears at the convention that Garcia cannot win the nom-
ination. Rejection of Garcia would deepen the party's cleavages
and probably cause him to run as an independent.
Meanwhile, leaders of the Liberal Party,
which is now scheduled to convene on 20-21 July, are consid-
erably heartened by the Nacionalistas' internal difficulties,
and their optimism is reflected in increasing predictions of
success in November.
3 July 57
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3. INDIAN ECONOMIC SITUATION DETERIORATING RAPIDLY
Comment on:
The Indian economic situation is deteri-
orating rapidly and the country is facing
a crisis which will test its political sta-
bility to the utmost, according to Ambas-
sador Bunker. He states that the tension caused by this de-
velopment has recently become noticeable among government
leaders in New Delhi.
Despite import restrictions imposed late
in 1956, which have reduced consumer goods imports sharply,
the foreign exchange reserves--which are falling by nearly
$20,000,000 a week--are only about $155,000,000 above the
$840,000,000 required for currency backing. The government
fears that any reduction below this level will start a financial
panic and cause a flight of capital. However, it apparently has
decided it must take this risk, as the value of outstanding let-
ters of credit will cause a continued foreign exchange drain
for six to ten months.
In a further attempt to stem the foreign ex-
change decline, the government on 1 July slashed imports even
more drastically. While New Delhi recognizes that these new
restrictions will cause unemployment as well as further infla-
tion, it believes it must continue its program of rapid industri-
alization if India is eventually to overcome its economic prob-
lems. Therefore, Finance Minister Krishnamachari will
probably try, during his planned trip to the United States this
autumn, to fill a large part of India's $1.2-1.3 billion foreign
exchange gap.
3 July 57
Current Intelligence Bulletin Page 5
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4. PLAN TO ASSASSINATE GUATEMALAN
PRESIDENT REPORTED
Comment on:
An attempt to assassinate Guatemalan
president Carlos Castiln Arms has
been planned for 3 July,
The attempt
is planned to coincide with the liberation
celebration commemorating Castillo's
entry into Guatemala City following the
overthrow of the pro-Communist Arbenz
regime in 1954.
The government reportedly has been ad-
vised of the plan but does not know the identities of the plotters,
except that one is believed to be from outside the country.
Discontent among air force officers has re-
portedly increased considerably since the death of Colonel
Carlos Sarti in the abortive 24 June coup.
Sarti was to have assumed the temporary pres-
idency of Guatemala if the coup had been successful0
air force elements believe
that the situation is delicate and that the government could be
overthrown at any minute.
Castillo was able to thwart the 23-24 June
attempt partly because he had prior knowledge of the plans,
and it is probable that foreknowledge will also enable him to
control events on 3 July.
3 July 57
Current Intelligence Bulletin Page 6
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