CURRENT INTELLIGENCE BULLETIN - 1957/08/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03189013
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: August 21, 1957

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CURRENT
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21 August 1957
UOpy NO. 136
LWER:
3.3(h)(2)
3.5(c)
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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.
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CONTENTS
1. HUNGARIAN REGIME BELIEVED APPREHENSIVE OF
UN CENSURE (page 3).
71,-0
2. THAI PREMIER REPORTEDLY MANEUVERING RESIG-
NATION OF SARIT CLIQUE FROM CABINET
(page 4).
3. BRITISH PLANS FOE FURTHER ASSISTANCE TO MUSCAT
(page 5).
k 4. BONN MAY BREAK OFF TALKS WITH MOSCOW
(page 6).
21 Aug 57
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I_ HUNGARIAN REGIME BELIEVED APPREHENSIVE OF
UN CENSURE
The American legation in Budapest believes
that the Kadar regime is increasingly fear-
ful of strong criticism by the UN General
Assembly due to meet on 10 September.
Strong assembly action would, in the legation's opinion, arouse
new hope and greater unrest and noncooperation among the
Hungarian people.
Recent arrests, trials, and executions of
potentially dangerous elements in Hungary were apparently
dictated by Kadar's consciousness of his weakness and his be-
lief that the status quo can be maintained--if at all--only by
repression.
Comment Recent reports have suggested that Kadar
might resign his post as premier--though
probably not as party leader--in an effort to soften UN discus-
sion and convince the world that changes for the better are com-
ing in Hungary. In the meantime, however, arrests and repres-
sion are continuing throughout the country.
The Kremlin has continued to support the
Kadar regime with its military forces, now estimated to number
six divisions, and Khrushchev during his Czech tour personally
endorsed Kadar for his effective work in restoring order in
Hungary.
Although Soviet propaganda has steadily sup-
ported Hungarian claims that the UN special committee report
consists of "slanders, lies, and nonsense," the Kremlin may be
resigned to the possibility of assembly censure. A Soviet UN
delegate recently stated that his delegation realized the USSR
would be put in the "dock" on this issue and only hoped UN ac-
tion would be completed fairly quickly. At the same time, it is
likely that the USSR will try to offset any UN censure, possibly
by reintroducing last winter's charges of American subversive
activities in the Soviet bloc.
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aLA-ItG
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2. THAI PREMIER REPORTEDLY MANEUVERING
RESIGNATION OF SARIT CLIQUE FROM CABINET
Comment on:
Thai Army Chief and Defense Minister
airit and several other cabinet members
are resigning from the cabinet,
rather
than sever their lucrative associations with
private and governmental commercial cor-
porations. Prime Minister Phibun,
would no longer tol-
erate flagrant corruption within his regime and
gave cabinet members until the end of August
to drop their business interests or resign.
Phibun's move is
directed primarily against the influence of the Sarit clique in the
government. It may, however, merely reflect a government
maneuver to counter growing charges of corruption. Sarit and
his clique presumably could retain their government positions
by turning over their business interests to loyal agents.
In any event, Sarit's resignation from the
cabinet would not materially weaken his power, inasmuch as he
would probably retain his army position.
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3. BRITISH PLANS FOR FURTHER ASSISTANCE TO MUSCAT
Comment on:
The British government has decided to help
the Sultan of Muscat improve his military
forces as a long-range measure to handle
future troubles, according to a high Foreign
Office official. Tentative agreement has been reached to give
him direct military assistance--probably including a few ar-
mored cars--and to develop closer liaison between his forces
and the British-officered Trucial Oman Scouts, thus creating
"an Arab fire brigade." The War Office also favors providing
additional funds and a British training mission, but this plan
has not yet been adopted.
Although a company of British riflemen and
a platoon of armored cars will remain in Oman for the time be-
ing, the British decision suggests that London hopes to avoid
future direct involvement of British forces by improving the
Sultan's troops.
The official stated that since military aid alone
would not necessarily suffice to prevent future rebellions, more
effective administration by the Sultan and provision of useful serv-
ices such as medical care are essential to develop loyalty, The
British government is apparently not considering nonmilitary fi-
nancial assistance to the Sultan, but the Iraq Petroleum Company
is already paying him about $420,000 a year for its concession, and
London hopes the new American oil discovery in Dhofar will in time
prove profitable to the Sultan.
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�414.4
4. BONN MAY BREAK OFF TALKS WITH MOSCOW
The West German Foreign Ministry is
studying means of breaking off the cur-
rent trade and repatriation talks in Mos-
cow and is confident that Chancellor
Adenauer will approve, according to American officials in
Bonn. If he does, Ambassador Lahr will probably return to
Moscow at the end of the week to make a formal break.
Since Soviet Deputy Foreign Minister
Semenov told Lahr that he disagreed with German repatri-
ation proposals and would reject any further proposals on
this subject, Bonn is convinced that talks cannot be resumed
without completely abandoning the principle of repatriation.
The ministry feels that it has convinced the West German pub-
lic that it took a reasonable line in the talks.
Comment
21 Aug 57
It appeared that Bonn would try to drag out
the talks until after the 15 September elec-
tions, and Adenauer may still favor this tactic.,
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