CURRENT INTELLIGENCE BULLETIN - 1958/01/06

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03192203
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 6, 1958

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3.3(h)(2)
3.5(c)
CURRENT
INTELLIGENCE
BULLETIN
DOCUMENT NO.
6 January 1958
te/
NO CHANCE IN CLASS. I?
(.;;-1".,ED TO: IS S C
:Y:EV'I DATE C)
AU ID:
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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793, 794, and 798. The law prohibits its transmission
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CONTENTS
1. MACMILLAN'S CALL FOR A NON-AGGRESSION PACT
(page 3).
Z. BUNN STUDYING POLISH PROPOSAL FOR ATOM-FHP.;h,
ZONE (page 4).
3. INDONESIAN LOAN REPAYMENT SUSPENSION MAY
PROVOKE DUTCH RETALIATION (page 5
E 4. E IR,AQI CABINET AND ARMY SHAKE-UP
7117(page 6).
6 Jan 58
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1. MACMILLAN'S CALL FOR A NON-AGGRESSION PACT
Comment on:
Prime Minister Macmillan's radio speech
of 4 January, advocating a non-aggression
pact with the Soviet Union and an eventual
summit meeting, reflects the sensitivity
of the Conservative government to public demands for efforts--
beyond the moves outlined in the 19 December NATO communique--
to achieve a reconciliation of major disputes with Moscow. Mac-
millan seems to anticipate that by such an initiative he can in-
crease public support for a defense program. Macmillan re-
stricted and hedged his proposals to reduce any alarm of fellow
NATO members over not being consulted. The British govern-
ment presumably intends to incorporate the ideas in Macmillan's
formal response to Bulganin's note of 10 December now being
prepared. The reply is to be discussed at the North Atlantic
Council meeting on 8 January.
The Soviet news agency TASS on 4 January
reported Macmillan's proposal, criticizing his "rude anti-Soviet
attacks" and his defense of British foreign policy. The Soviet
leaders probably will assert that only the United States now stands
in the way of an East-West accommodation. Moscow is also likely
to contend that an East-West heads of government conference would
be the best forum for discussing Macmillan's ideas and that favor-
able reaction in Europe and Asia has improved the prospects for
holding such a conference.
Free world reaction to the Macmillan proposal
was nearly unanimously favorable. French Foreign Ministry
sources were quoted as hailing Macmillan's "bold initiative;" in
Rome, authoritative sources welcomed the proposals for a non-
aggression pact but emphasized the need for adequate guarantees.
Bonn's favorable comment was more restrained, reflecting the
government's fear of any new steps toward an over-all settlement
not hinged on German reunification--a topic which Macmillan's
speech ignored. Enthusiastic approval came from the press in
Cairo, Tokyo, and New Delhi.
6 Jan 58
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2, BONN STUDYING POLISH PROPOSAL FOR
ATOM-FREE ZONE
Comment on:
Bonn is "studying" the proposal made by
Polish Foreign Minister Rapacki on 9 De-
cember for an atom free zone in Central
Europe.
While Chancellor
Adenauer has publicly described the plan
as an "illusion," it is
now being examined in connection with the
West German reply to Bulganin's note of
10 December, which included similar pro-
posals. The Bonn Foreign Ministry is re-
ported to prefer the Rapacki plan if such a
topic is discussed in East-West talks, since
it feels this is less directly linked with a West German agree-
ment with East Germany than the Bulganin proposal.
Bonn's answer, expected to be sent in mid-
January, will present a detailed explanation of the West German
position on the points raised by Bulganin, in an attempt to nar-
row differences between East and West, according to the West
German ambassador to Tokyo.
Bonn's more favorable attitude toward the
Rapacki plan is a reflection of mounting public pressure for
East-West talks on specific issues rather than on generalities.
President Heuss' New Year's message supporting George Ken-
non% call for a return to secret diplomacy was well received.
The American Embassy in Bonn comments that Heuss' remarks
are symptomatic of increased enthusiasm in intellectual circles
for a way out of the current impasse.
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3. INDONESIAN LOAN REPAYMENT SUSPENSION MAY
pnnvarm. T1TTTrH PRTALTATION
sc (=mem on:
protesting an
Indonesian government decision to
suspend payments of redemptions
1-"Allialinteta on a large Dutch loan.
the $74,000,000
loan made by the Netherlands was not part of the 1949 round-
table agreements. while annulment of the
round-table agreements column justified as retaliation over
the West Irian issue, Indonesia's suspension of its obliga-
tions under this separate loan would impair the country's
international standing and its efforts to enlist foreign sup-
port for its economic and financial measures against the
Dutch. the Dutch are considering counter-
measures.
the Dutch
need only to modify their guarantee to back up Indonesian
purchases abroad to create great difficulties for Indonesia,
and that "it would be even worse if they annul it."
Sjarfuddin, governor of the tsanx oI
Indonesia, does not approve of the government's decision to
renege on its loan obligations but was forced to go along.
Sjarfuddin� a prominent Masjumi party leader who recently
denounced the government's economic excesses against the
Dutch, might be chosen to form a new cabinet.
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4. POSSIBLE IRAQI CABINET AND ARMY SHAKE-UP
Comment
Authoritative Iraqi sources expect the
)month-old Mirjan cabinet to fall about
10 January,
The person-
alities involved in an anticipated simul-
taneous shake-up of the top army com-
mand indicate that pro-Western influence
will remain dominant.
�The changes, if they occur, probably
would be the product of disagreements
within the cabinet between hold-overs from
the previous All Jawdat cabinet and new members brought in
by Mirjan. Iraqi strong-man Nun i Said is planning to absent
himself from the country during the shake-p in order not to
give the impression that he is behind it.
6 Jan 58
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