CURRENT INTELLIGENCE BULLETIN - 1956/08/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03193804
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 22, 1956

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/ CURRENT
INTELLIGENCE
BULLETIN
74'
22 August 1956
Copy No.
105
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
3.3(h)(2,
3.5(c);
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DATE' REVIEWER
DOCUMENT NO.
NO CHANGE IN CLASS. 'Xig.
0 DECLASSIFIED
CLASS. CHANGED TO:2,4
NEXT REVIEW DPI:
AUTH: HR 70-2
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CONTENTS
1. MILITARY CO7P REPORTED PLANNED IN INDONESIA
(page 3).
2, INCREASED EGYPTIAN FINANCIAL DIFFICULTIES
(page 4).
3. EGYPT ADJUSTS TO SUEZ PILOT SHORTAGE
(page 5).
4. NEHRU CONCERNED OVER INDIAN NATIONAL ELECTIONS
(page 6),
22 Aug 56
�THE ARAB-ISRAELI SITUATION
(page 7 )
Current Intelligence Bulletin Page 2
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Comment
Increasing army resentment toward the
government has been reported in recent
months, and a territorial commander probably friendly to the
junta attempted unsuccessfully on 13 August to arrest the for-
eign minister on charges of corruption. President Sukarno is
known to be disturbed at the attempted arrest, but there is no
other report as yet that he plans to postpone his departure for
Moscow on 26 August.
Current army resentment arises from trans=
fers of high army officers, corruption among high government
officials, distrust of the National Party, which heads the cabinet,
and the government's failure to implement administrative reforms.
Colonel Lubis, who reportedly has tried to
co-ordinate opposition to the chief of staff and to army trans-
fers, relinquished his post as deputy chief of staff on 20 August,
and has agreed to accept a command in North Sumatra. While
some further demonstration of dissatisfaction by army elements
is probable, it is unlikely that a coup will be attempted in the
near future.
22 Aug 56
Current Intelligence Bulletin Page 3
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2. INCREASED EGYPTIAN FINANCIAL DIFFICULTIES
Comment on:
Government and business circles in
Cairo are beginning to experience
financial problems as a result of the
threat of war over the Suez issue, as
well as the British and French freez-
ing of Egyptian assets.
Ole head
of Egypt's Foreign Exchange Control
Department had pleaded for immediate
settlement of Japanese credits and for
a ment in dollars.
the Egyptians "wouict appear
to be in considerable straits." In addi-
tion, Italian ranks are refusing to exchange Egyptian cur-
rency.
cash withdrawals from banks have continued since
the end of July, particularly from French and British accounts,
thus weakening the cash position of most Egyptian banks.
22 Aug 56
Current Intelligence Bulletin Page 4
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3. EGYPT ADJUSTS TO SUEZ PILOT SHORTAGE
ing through the
The reduction of Suez Canal convoys
on 15 August to one a day in each direc-
tion because of a pilot shortage is reduc-
ing the backlog of vessels awaiting pas-
sage, even though the shift in schedule
added a few hours to the normal transit
time, according to the American am-
bassador in Cairo. He reported on 18
August that the number of vessels pass-
canal was being maintained at a normal level.
The American naval attach�n Cairo
reported on 17 August that eight new Egyptian pilots went
to work the previous day, bringing the total number of Egyp-
tian pilots hired since nationalization to 23 and increasing
their number to 55. Egypt was previously reported as plan-
ning to assign 15 Egyptian naval officers to pilot duty. There
are also reports that Nasr may employ West German pilots
and technicians.
22 Aug 56
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4. NEHRU CONCERNED OVER INDIAN NATIONAL ELECTIONS
Prime Minister Nehru is concerned over
his party's prospects in the 1957 Indian
national elections,
Comment the ruling Congress
Party realizes it probably will have trouble
obtaining a majority in the election. West Bengal, Andhra,
Madras, and Bombay constitute about 40 percent of the total vote
and their loss would threaten the Congress Party's position in
the national government.
India's chronically disorganized leftist parties
have already begun planning a united campaign, but the Congress
Party, preoccupied with the states reorganization problem, has
as yet made little preparation for the elections. However, Nehru's
personal prestige, may be able to regain the allegiance of some
of the doubtful states before the elections.
22 Aug 56
Current Intelligence Bulletin Page 6
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 21 August)
A Jordanian military spokesman said 30 .
Israelis attacked a village near Jenin with mortar and auto-
matic weapons and wounded three Jordanian National Guardsmen.
The spokesman said two Israeli soldiers were killed in the hour-
long clash "inside Jordan." (Press)
Jordan claims that Israel has placed heavy
armament, including tanks armed with 75-mm. guns, near the
armistice line in the Hebron area, and has thus violated the
armistice agreement. Jordan has asked for an emergency meet-
ilia of the Mixed ArmiRtiep Commission to discuss this complaint.
The American air attach�n Rome reported
that 17 Mystere Mark IV jet fighters with Israeli markings landed
at Brindisi, Italy, on 18 Augu8t, destined for France. The attach�
stated that the reason for the return of these aircraft to France
was unknown. Several months aao Israel received 24 Mvstere IV
jet fighters from France.
Israel has canceled its order for excess Meteor
jet aircraft from the Netherlands for lack of funds, according to in-
formation received by the American air attache in The Hague. The
attach�elieves a more likely reason for the cancellation is that
Israel, in anticipation of trouble in the Middle East, believes F-86
jet fighters will become available from other sources. The attach�
had previously reported that the Netherlands had agreed to sell
Israel 10 surplus Meteor jets. which were to be delivered t is sum-
mer.
Cairo press reports on 17 August that two Soviet
vessels had arrived at Alexandria
the vessels are apparently unloading only
22 Aug 56
Current Intelligence Bulletin Page 7
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at night. There is no firm evidence that Soviet deliveries have
been stepped up. These latest arrivals have been widely pub-
licized by the Egyptian government, annarentiv to indicate Soviet
support of Egypt in the Suez crisis.
22 Aug 56 Current Intelligence Bulletin
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