CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A000700050001-1
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December 15, 1955
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SUMMARY
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Approved F Release 2005/02/10: CIA-RDP79-00-000700 OQJ-1 SEQET CURRENT INTELLIGENCE WEEKLY SUMMARY I I ' COIdr11010441A COPY NO. 1 OCI NO. 9429/55 15 December 1955 DOCUMENT NO. NO CHANGE IN CLASS. L I ~ DECLASSIFIED CLASS. CHANGED TO: TS S NEXT REVIEW DATE: AUTH PAT !4 ! REVIEWER. CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE DIA, USAF and DOS review(s) completed. C~Di ENTIA RET 25X1 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 Approved For Fase 2005/02/10: CIA-RDP79-00927A700050001-1 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 Approved F elease 2005Ib CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST the divided city is unchanged. BERLIN SITUATION . . . . . . . . . . . . . . . . . . . . Page 1 The USSR is permitting the East German -government to. continue its public claims of authority over East Berlin, but apparently will not authorize at this time direct East German interference with the position of the Allies in West Berlin. Tension and pres- sure are being maintained by recurrent Soviet emphasis on:East German sovereignty over East Ber;Lin, alternating with statements by Soviet and East German officials that the four-power status of THE BULGANIN-KHRUSHCHEV TOUR . . including arms shipments. GITRDP79-009 f 000700050001-1 . Page 2 In their joint communique of 13 December, the Soviet leaders and Prime Minister Nehru went on record as being in agreement on a number of international issues. Moscow, for 'its part, will use the communique to show India's support for the Soviet Union's policies. A new trade agreement announced at the conclusion of Bulganin's and Khrushchev's''visit to India commits Moscow to supply India with 1,000,000 tons of steel over the next three years and sets the stage for considerably expanded Soviet-Indian economic relations. In Burma, the Soviet leaders' visit may have had-the effect of adding impetus to the trend toward closer relations with the Sino-Soviet bloc. During their stay in Afghanistan, the Soviet leaders undoubtedly will also make favorable economic offers, FRENCH ELECTION PROSPECTS . . . . . . . . . . . . . . . Page 4 The large number of party slates in the 2 January elections for the French National Assembly and the restricted scope of party alliances rule out the possibility of achieving a stable majority. The Communists are almost certain to increase their representation-- possibly by?as much as 30 to a total of about 125. Mendes-France admits privately that his alliance, including the Socialists and part of the Radicals, can win only about 150 of the 596 seats. The support of the Gaullist groups will probably be spread from the Socialists to the extreme right, the bulk going to Pinay's Independent bloc which may obtain about 150 seats. With little change anticipated in the strength of the Popular Republicans and Faure's Radicals the present government coalition could muster' 25X1 about 275. to- 25X1 25X1 Approved For Releasp 2 /110- IQ FP79-00927A000700050001-1 Approved Fo ,Release 2005/02/10: c iRDP79-009$ 1000700050001-1 CU! REL?T INTELLIGENCE WEEKLY SUMMARY NATIONALIST CHINA'S VETO IN THE UNITED NATIONS . . . . . . . . . . . . . . . . . . . Page Nationalist China's veto on 13 December of Outer Mongolia'-s application for UN membership was cast in full knowledge that such action might lead to moves in the UN to unseat it. Brazil, Colombia, and Sweden had previously said they would move for Taipei's ouster if it used the veto on the issue. The admission of the 16 nations on 14 December, however, removes much of the pressure behind any movement to exclude the Chinese Nationalists at this session. The rejection of Japan's membership application may have extensive political repercussions in Japan 25X1 JORDAN AND THE BAGHDAD PACT. . . . . . . . . . . . . . Page 7 Jordanian political leaders are split sharply over the issue of the country's adherence.to the Baghdad pact. While King Hussain and leaders from East Jordan favor adherence, representatives from the western area where Palestine refugees are concentrated are strongly opposed. There is a possibility of serious agitation and rioting in West Jordan should the government announce adherence. NOTES AND COMMENTS Arab-Israeli Situation: Israeli troops raided Syrian positions near the shore of Lake Tiberias on 11 December. The latest round of talks between UN truce chief, General Burns, and the Egyptian and Israeli leaders has resulted in no appreci- able progress toward adoption of the UN proposals for main- taining peace in the El Auja demilitarized zone. . . . . . . . . . . . . . . . . . .. Page 1 French North Africa: The movement for complete independence is gat ering strength in French North Africa. Encouraged by the gains the nationalists have made in Tunisia and by French- Moroccan negotiations, the Algerians are preparing to seek a new relationship with France. The French government has indefinitely postponed parliamentary elections in the four Algerian departments. . . . . . . . Page 2 25X1 SECRET Approved For Release 2005/02/11: CIA-RDP79-00927A000700050001-1 THE WEEK IN BRIEF Approved F elease 2005/ D71Q'?N-RDP79-009g 000700050001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 Cyprus: The prospects for renewed discussions of the Cyprus problem between the British governor of the colony and Cypriot archbishop Makarios appear to have improved since the British on 9 December suggested.to Athens a revised formula for settling the dispute.. Athens is likely to urge Makarios to resume negotiations on the basis of the British proposal. The archbishop stated publicly on 11 De- cember that his talks with Governor Harding might soon.be resumed. I I . . . . . . . . . . . . . Page 4 Turkey: The new Turkish cabinet has been approved by the Dem- ocratic Party caucus and should have no major difficulty winning a vote of confidence in the Grand National'Assembly, probably on 16 December. The vote in the assembly, where party loyalties are reflected, is not likely to indicate the extent and intensity of the opposition to Prime Minister Menderes or his policies. Unless Menderes proves his.will- ingness and ability to cope with Turkey's basic economic problems, the cabinet may fall again within a few months. . . . . . . . . . . . . . .. Page 5 Plans for Egyptian Parliament: Egyptian prime minister Nasr has set January as t e date on which he will announce plans for re-establishing a national parliament. The narrow range of powers which the regime intends to. allow the parliament makes it unlikely that the move will arouse much popular enthusiasm. F__ 7 Page 5 Electrification of Soviet Railways: According to recent an- nouncements, the USSR ntends to electrify the Trans- Siberian railway from Moscow to Irkutsk during the sixth Five-Year Plan (1956-1960). Mainline steam locomotives are to go out of production during 1957, and the percentage of total freight hauled by diesel and electric locomotives is to increase from about 10 percent to 40-45 percent by 1960. .. . . . . . . . . . . . Page 6 South Vietnam: Communist propaganda from Hanoi is denouncing the forthcoming election of a national assembly in South Vietnam, and according to President Diem, the Viet Minh has intensified subversive activities in the country. Diem is seeking to counter Communist influence by estab- lishing a village defense force and resettling anti-Commu- nist refugees from the north in areas where Communist cadres are active. . .. . . . . . . . . . . Page 8 Laos: The Pathet Lao attack against royal government troops southeast of Muong Peun on 5 December appears to have been a localized skirmish rather than the signal for military action throughout northern Laos. The government forces repulsed the attempt to cut their line of communications and have forced the enemy's retreat. F_ 1. Page 8 SECRET Approved For Release 2005/02/ TD iCIA-RDP79-00927A000700050001-1 THE WEEK IN BRIEF 25X1 25X1 Approved For Release 2005tOg11 CIA-RDP79-009 A000700050001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 25X1 Satellites Move to Improve Relations With United States: Ex- pressions of interest by East European countres n improv- ing relations with the United States have now been followed by action. On 28 November, negotiations on outstanding economic problems began in Prague between the United States and Czechoslovakia, and on 7 December, Rumania granted 13 long-denied exit visas requested by the United States, Polish and Hungarian officials have also expressed interest in negotiating outstanding problems with the United States. USSR Returning Satellite Prisoners: A former anti-Communist Hungarian political leader w o had been imprisoned in the USSR for more than eight years is reported to have been returned to his homeland and to be under detention there. This is the first indication that Soviet authorities may have begun to return Satellite nationals accused of polit- inal crimes as as those sentenced for war crimes. 25X1 . . . . . . . . . . . . Page 10 Hungary's Relations With Yugoslavia: Recent reports indicate that the Hungarian regime may be falling in line with the, other Satellites in improving relations with Yugoslavia. Hungary apparently is prepared to begin payments on Yugoslav economic claims and to repudiate the anti-Tito Rajk trial 25X1 held in 1949. . . . . . . . . . . Page 11 Argentina: The Aramburu government is continuing efforts to reduce Peronista strength and placate divergent political elements among its own supporters. No substantial threat to the regime has materialized to date. Page 12 PATTERNS AND PERSPECTIVES port of his own Radical Socialists. MENDES-FRANCE AND THE FRENCH ELECTION. . . . . . . . . . Page 1 Much of ex-premier Mendes-France's effort in the French election on 2 January will be directed toward those Frenchmen who have traditionally voted against the government in power in protest against the established order. He feels that this protest vote, which has been a major part of Communist strength, must be won over to a new and dynamic non-Communist program if France is to achieve political stability. He is counting heavily on the Socialists for the base of his "Republican Front," but his success will depend to a large extent on retaining the sup- SECRET Approved For Release 2005/02/1': CIA-RDP79-00927A000700050001-1 THE WEEK IN BRIEF 25X1 25X1 SECRET Approved Fo elease 2005/02/10 : CIA-RDP79-0092000700050001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 REVOLUTIONARY PLOTTING IN CENTRAL AMERICA. . . . . . . . . Page 4 Central America is again being shaken by rumors of impending revolutions. High officials of the Venezuelan and Nicaraguan governments claim to have evidence that Costa Rica is the center of an international conspiracy aimed at ousting various anti- Communist governments in the area, including that of Nicaragua._ The Costa Rican government, on the other hand, gives credence to 25X1 rumors that is is about to be attacked from Venezuela and/or Nicaragua. Internal pressures are building up in Nicaragua and El Salvador which may lead to violence in these countries. SHORTAGES OF KEY RESOURCES SLOW WESTERN EUROPEAN BOOM. . . Page 6 Western Europe's three-year economic boom is being slowed down by shortages of skilled manpower and coal and steel. These shortages have generated inflationary pressures and contributed to trade deficits. There will probably be a further slowdown in the rate of economic expansion in 1956, but improved basic c?n ditions and the financial policies of the governments make the recurrence of an economic crisis unlikely at this time. STRAINED RELATIONS BETWEEN GREECE AND TURKEY INTERFERE WITH REGIONAL CO-OPERATION . . . . . . . . . . . . . . . . Page 12 25X1 The continuing diplomatic "cold war" between Greece and Turkey makes unlikely the resumption of full Greek participation in the Balkan pact and NATO until Athens can present some semblance of a diplomatic victory over Turkey to the Greek people. The jockeying between the two countries over issues arising from the anti-Greek riots in Istanbul and Izmir last September reflects their traditional competition for prestige in the eastern Mediterranean and more recently for American favors. Athens apparently feels that the riots and the Greek defeat in the UN on the Cyprus issue seriously damaged Greek prestige and is seeking a way to redress the balance. 25X1 SECRET Approved For Release 2005/02/113 : CIA-RDP79-00927A000700050001-1 THE WEEK IN BRIEF Approved Foelease 2005/OS~'LGI~.MLAIRDP79-0092,700700050001-1 15 December 1955 OF IMMEDIATE INTEREST The USSR is permitting the East German government to con- tinue its public claims of au- thority over East Berlin, but apparently will not authorize at this time direct East German interference with the position of the Allies in West Berlin. Tension and pressure are being maintained by recurrent Soviet emphasis on East German sover- eignty over East Berlin, al- ternating with statements by Soviet and East German officials that the four-power status of the divided city is unchanged. A Soviet protocol officer told several correspondents on 8 December that the USSR had no intention of tearing up any four- power agreements and would con- tinue to respect Allied rights in East Berlin. He said that nothing had been changed, de- spite Soviet commandant Dibrova's statements on the incident in- volving American congressmen. He repeated Dibrova's assertion, however, that East Berlin is no longer occupied territory and is the capital of a sovereign East Germany. Soviet ambassador to East Germany Pushkin, in a formal note of 14 December to the three Western ambassadors, reiterated completely Dibrova's position that East German au- thoritj extends o East Berlin. As long as Soviet authori- ties act as intermediaries for American nationals on duty in Germany, the USSR will argue that the four-power status of Berlin remains unchanged. The West considers, however, this concept to have been narrowed by the Soviet assertion of East German sovereign authority J.n East Berlin. East German ieputy premier Nuschke told a correspondent that the Allies had uncontested freedom of movement in East Ber- lin, and that there would prob- ably be no further arrests like that of the congressmen on ;67 November, which he said was made by a "simple-minded" policeman. He argued, however, that inci- dents would be less likely if American authorities provided the East Germans with advance notice of such trips. He ruled out the possibility of a new blockade of Berlin. It appears that the Soviet Union, desiring to build up the prestige of the East German gov- ernment, is permitting it to as- sert authority in East Berlin, and that Soviet authorities will step in to prevent any serious inte,~-ference with Allied travel to West Berlin or in East Berlin. East 3ermany will probably be given more latitude to exploit every opportunity to press the West Germans to negotiate and submit to East German authority on such matters as visas, per- mits and police regulations. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART I OF IMMEDIATE INTEREST Page 1 of 8 Approved Fcelease 2005/02/10 : CIA-RDP79-00927000700050001-1 SECRET Bonn ministries are cur- rently studying what reply should be sent to East German transport minister Kramer, who in November sent a letter to his West German counterpart, Seebohm, proposing the joint issuance of permits for new India The Soviet leaders ended their visit in India on 13 De- cember with another denuncia- tion of the West and colonial- ism, with special emphasis on the status of Goa and Kashmir. Their speeches continued to be strikingly indicative of the differences in the personali- ties and positions of the two men. Khrushchev has been out- spoken and taken stands on specific issues while Bulganin, on the other hand, has been much more conservative and general in his approach. In their joint communique of 13 December, the Soviet lead- ers and Prime Minister Nehru sought to go on record as being in agreement on a number of international issues. Moscow, for its part, has tried to use the communique to show India's support for the Soviet Union's policies. The absence of any statement on anticolonialism was probably the result of the restraining influence of Prime Minister Nehru, who reportedly was pressed by the Soviet leaders to include statements on Goa and Kashmir. The declaration supported the Nehru-Chou "five principles," Communist China's claims to Tai- wan and a UN seat, and elevation I barges using interzonal water- ways. Bonn is aware that to act on Kramer's proposal would lead to a joint meeting of min- isters, which would be unprec- edented and might convey an impression of GDR legitimacy. of the Geneva ambassadorial talks between the United States and Communist China to a higher level. The declaration also condemned the formation of mil- itary blocs--a statement not contained in the declaration issued at the conclusion of Nehru's visit to Moscow in June and apparently aimed pri- marily at the Baghdad pact. A supplementary communique on Soviet-Indian economic rela- tions suggested that for prac- tical purposes New Delhi has accepted the formal Soviet pro- posal to construct a steel works at Bhilai. The $95,000,- 000 project, the largest ever undertaken by Moscow in a non- Communist country, will prob- ably become a central theme in the USSR's current drive to im- press underdeveloped countries with the sincerity of its offers and its ability to deliver. Although no other specific projects are mentioned-in the communique, earlier reports indicate that Moscow is inter- ested in many phases of the forthcoming Indian second Five- Year Plan, particularly in the electrification program. While the agreement sets the stage for considerably ex- panded economic relations and calls for an exchange of delegations to work on further SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART I OF IMMEDIATE INTEREST Page 2 of 8 Approved F-or elease 2005I& R&IRDP79-00991000700050001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY contracts, there is no state- ment on the extent to which trade will play in the picture. The communique announced, how- ever, that Moscow will "con- siderably" increase its pur- chases of Indian goods in the next year in an effort to cover the cost of the Soviet ship- ments of plants and equipment. To assure a smooth flow of goods, Moscow and New Delhi will or- ganize a shipping route be- tween Indian and Soviet ports using ships of both countries. The new trade agreement announced at the same time as the communique commits Moscow to supply India with 1,000,000 tons of steel over the next three years. Moscow's willing- ness to alleviate the severe Indian steel shortage at the expense of Soviet domestic re- quirements underlines the Krem- lin's desire for Indian good will. The USSR apparently plans, as part of its new assistance program, to use increased num- bers of Communist technicians to construct industrial installa- tions in foreign countries. In this connection the decision to supply India with equipment for oil and mining activities is obviously tied to the pres- ence of Soviet technicians now investigating the possibilities of developing these industries in India. In addition to the Soviet- Burmese declaration at the end of the leaders' visit, new a- greements were reached under which the USSR apparently will take additional quantities of surplus Burmese rice in exchange for Soviet agricultural and indus- trial assistance. The Soviet Union's willingness to permit deferred payment in rice for the goods and services it will provide indicates that it en- visions a program considerably larger in scope than could be arranged under the existing three-year barter agreement. In an initial analysis of the Khrushchev-Bulga.nin visit, the American embassy commented that it provided added impetus to the trend toward closer re- lations between the Sino-Soviet bloc and Burma. The embassy believes the trend can be checked, however, especially if markets can be found in friendly non- Communist countries for Burmese rice. Local Communist tactics in Burma--particularly the surrender offer--appear to be aimed at influencing the Burmese govern- ment, rather than overthrowing it, according to the American embassy. The Soviet Union and Communist China are believed to have convinced most Burmese that they support the present government and that local. Com- munists are no longer a threat. Bulganin and Khrushchev ar- rived in Kabul on 15 December after a day's delay because of bad weather. Soviet efforts to extend the stay of Bulganin and Khrushchev in Afghanistan from three days--as preferred by the afghans--to five days apparently have been successful. Invita- tions for a. reception on the fifth day of their visit have been sent out by the Afghan gov- ernment. In view of the length of the visit, original Afghan plans will have to be consider- ably expanded. Soviet repre- sentatives in Kabul have been busily preparing for the visit SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 OF IMMEDIATE INTEREST Page 3 of 8 Approved Fo elease 2005/ '9RE1 RDP79-009200700050001-1 CU .IZENT INTELLIGENCE WEEKLY SUMMARY but, according to Foreign. Min- ister Naim, their requests for mass rallies to greet the Soviet leaders have been de- nied because of "bad weather." Na.im believes the visit of the Soviet leaders will be "less triumphal" than was the case in India and Burma, with only a minimum of speeches sched- uled. In view of Khrushchev's informal behavior in India and Burma., however, there appears to be only an outside chance that he can be restrained from addressing the Afghan populace. The Soviet leaders are al- most certain to take a. stand on supporting the Afghans and denouncing the Pakistanis on the Pushtoonistan issue, just as they supported India. on the status of Kashmir. In view of the widely publicized con- cern in non-Communist countries FRENCH ELECTION PROSPECTS The large number of party slates in the 2 January elec- tions for the French National Assembly and the restricted scope of party alliances rule out the possibility of achiev- ing a stable majority. The Communists are almost certain to increase their rep- resentation.--=possibly by as much as 30 to a. total of about 125. Mendes-France admits pri- vately that his- alliance, in- cluding the Socialists and part of the Radicals, can win only about 150 of the 596 seats. The support of the Gaullist groups will probably be spread over Afghanistan's increasing economic dependence on the So- viet bloc, the Soviet ]...e.Aders proba ;ly will. make a special e:s_ ort to convince the Afg pan ~ that the USSR has no designs cn A 'ghani ;tan and that MM4oscow's :rimary wish is to conduct its relations along the lines of good-neighbor lines and the "five principles." The American embassy be- lieves the Soviet leaders will make the most headway in further economic agreements, possibly including deals for Soviet bloc arms. According to press re- ports of 13 December, the USSR plans to facilitate Afghani- stan's trade with the Far East by shipping Japanese goods des- tined for the Afghans via So- vietSiberia,thereby avoiding the delays that have been en- countered by sending these ship- ments through Pakistan. (Concurred in by ORR) from the Socialists to the ex- treme right, the bulk going; to Pinay's Independent bloc which may obtain about 150 seats. lith little change anticipated in the strength of the Popular -Repub- licans and Fa.ure's Radicals, tae present government coalition could muster about 275. (For an analysis of Mendes-France's role in the elections, see Part III, p. 1.) With elections for the 30 Algerian deputies indefinitely postponed because of the local situation,, the l03 districts of metropolitan France have nearly 1,000 party lists and over 5,000 candidates--25 percent SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 OF IMMEDIATE INTEREST Page 4 of 8 25X1 Approved Fo Release 2005/cSJ RDP79-009_000700050001-1 CURRENT INTELLIGENCE WEE],= SUMMARY more than in 1951. Many of these lists have only nuisance value, but local issues may com- plicate the situation for most of the national parties to the advantage of the better disc i- plined Communists. The Communist Party's im- proved prospects, despite its lack of alliances, stems mostly from dissension among the mid- dle-of-the road parties. Un- like 1951, when the center groups combined forces in 83 election districts to block both Communists and Gaullists, major non-Com- munist alliances are competing with each other in 56 of the 95 constituencies where af- filiation of party lists is permitted. In 28 other dis- tricts, a single alliance in- volving some of the non-Com- munist parties has been made, and only in 11 constituencies have no alliances been reached. The chances of any one af- filiation winning a majority of the votes in a given district are considerably reduced in coin- parison with 1951, when 38 al- liances got all the seats in their respective districts on that basis. An increase in the number of Communist deputies is practically assured because the percentage of Communist votes is not expected to drop appreciably, and in 1951 the party's popular vote warranted about 50 more deputies if pro- portional representation had applied generally, as it will this time. Mendes-France has split the Radical Socialist Party in an effort to build a, non-Com- munist left-wing majority. His "Republican Front" is based pri- marily on the Socialists, with minority Gaullist support. The government coalition has formed less extensive lisp,-; than had PA" tT I been anticipated, partly because the Popular Republicans, re- luctant to widen their drift from the Socialists, with whom they had 51 affiliations in 1951, rejected alliances with LuIe In- dependents in a number of districts. The major factor which will be difficult to assess is the remarkable increase in regis- tration, which boosts the number of those eligible to vote to over 26,000,000--some press reports give 30,000,000 compared to 24,500,000 in 1951. An increase of over 1,000,000 -voters in the 17 November social security e- lections was distributed evenly over all the major party lists, and there is little evidence of a stampede to any one party now, despite the efforts of the Merides- Fra.nce group to play up the large registration as evidence of op- position to the Faure coalition. Many late registrants seem to be under the impression that voting is now compulsory, be- cause the assembly had approved such a measure on first reading; in November. Moveover, there will be an unusually high pro- portion of young voters. Both Pinay and Mendes-France opened their campaigns on 13 December by direct appeals to this group, stressing the desirability of reduced compulsory military service. danger. Another uncertain factor is the strength of the Poujade antitax candidates. They may be able to whittle away enough support from moderate rightist candidates to bring proportional representation into play and thus help the Communists in some districts where Communist rep- resentation would have otherwise been effectively excluded. Lead- ers of the Independent-Peasant- ex-Gaullist bloc have already ex- pressed some concern over this SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 OF IMMEDIATE INTEREST Page 5 of 8 25X1 Approved For, Release 2005/Q2 p~RDP79-00000700050001-1 CUR ,ENT INTELLIGENCE WEEKL.k SUMMARY 15 December 1955 NATIONALIST CHINA'S VETO IN THE UNITED NATIONS Effect on Taiwan's Position Nationalist China's veto on 13 December of Outer Mongo- lia's application for UN member- ship was cast in full knowledge of threats that such action might lead to moves in the UN to unseat Taipei. China's veto was followed by the Soviet veto of the 13 free world applica- tions, thus defeating the 18-na- tion membership proposal. Brazil, Colombia, and Sweden had pre- viously threatened to move for Taipei's ouster if it used the veto on the issue. The admissirn of 16 nations on 14 December, however, removed much of the ires- sure behind any movement to ex- clude the Chinese Nationalists at this session. If the General Assembly concludes its session as sched- uled on 16 December, the motion to oust Taipei from its permanent seat could be originated in the Security Council. Any attempt by one of the five permanent mem- bers to use the veto would prob- ably result in the referral of the issue to the International Court of Justice for a ruling on whether the veto could legally be applied to such a motion. The imminence of this ses-- sion's closing and the need for UN members to get instructions from their ,overnments make it more .iicely that the Chinese rep- resentation issue will arise at a possible spring session of the General Assembly and in any event at the regularly scheduled fall session. At that time, a residue of ill will over the sacrifice of Japan and the increase in. stragth of the Arab-Asian bloc, added to the growing N desire to settle the Chinese representation issue, may result in a defeat for the Chinese Nationalists. In a 1950 resolution, the General Assembly reserved to itself the power to decide which membership credentials are valid. It further requested the other organs of the UN to abide by the will of the ass;mbly. Any General Assembly action pre- sumably would not legally en- danger Taipei's permanent seat on the Security Council. Taipei, however, may fore- stall attempts to remove it from the UN by walking outtoof the the international body.. On 8 December Chiang informed Ambassador Rankin that Nation- alist China would remain in the UN only as a symbol of anti-Com- munism. Except for this con- sideration, Chiang said, the Nationalists would be better off outside the UN because their continued presence could bring "more shame and disgrace to China." Effect in Japan In Japan, where support for the Chiang Kai-shek regime has never been strong, criticism is being directed primarily against Taiwan., but also against the SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART I OF IMMEDIATE INTEREST Page 6 of 8 Approved Fo~5lease 2005/0 I - DP79-0092700700050001-1 C CURRENT INTELLIGENCE WEEKLY SUMMARY United States and the USSR. Japan's rejection is likely to further weaken Japanese support for continued recognition of the Nationalist regime, and increase the already strong pressure for widening relations with the main- land. The government is also being attacked by the Socialists and even some members of the gov- ernment party for its overde- pendence on the United States and for its refusal to conclude an early agreement with the USSR on normalization of relations. Foreign Minister Shigemit- 5u, who is the greatest Japanese axponent for continued close co- operation with the United States, has told Ambassador Allison he JORDAN AND THE BAGHDAD PACT Jordanian political lead- ers are split sharply over the issue of the country's adherence to the Baghdad pact. While King Hussain and leaders from East Jordan favor adherence, repre- sentatives from the western area, where Palestine refugees are concentrated, are strongly op- posed. There is a possibility of serious agitation and rioting in West Jordan should the gov- ernment announce adherence. The British offer to re- vise the Anglo-Jordanian treaty of 1948 and to increase equip- ment and financial aid to the Jordanian Arab Legion in return for adherence to the pact ap- parently won the support of the king and those members of the previous government who come from the eastern part of the country--"old Jordan" as it was called before the Palestine war. may be forced to assume respon- sibility for Japan's UN defeat and resign. The Socialists are plannin:,je a no-confidence vote against Shigemitsu in the Diet, and although it will probably fail, Prime Minister Hatoyama may take the opportunity to shelve the foreign minister for differing with his own more con- ciliatory policy toward the USSR. Hatoyama has told the Japa- nese press that the only way now to ensure Japan's entry into the UN is to bring about an early normalization of relations with the USSR. He indicated he would be willing if necessary to visit the Soviet Union. Leaders from west Jordan, the area. annexed after the Palestine war which contains the bulk of the half million Ara.b refugees who fled to Jor-? dan from what is now Israel, see in the Baghdad pact a de- vice which at least tends to distract attention from the Arab-Israeli dispute and which may limit Jordan's freedom of action in regard to Israel. The west Jordan outlook was manifest in the hostile public attitude toward the visit of Turkish president Bayar to Jordan in November. It was also responsible for the fall of the Jordanian cabinet on 13 December, when four west Jor- dan ministers who refused to approve adherence to the pact resigned. For these reasons King Hussain asked General Templer, SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 OF IMMEDIATE INTEREST Page 7 of 8 25X1 Approved Forlease 2005/02/10 : CIA-RDP79-0092WA -- 00700050001-1 SECRET . CURRENT INTELLIGENCE WEEKLY SUMMARY chief of the British Imperial General Staff and Michael Rose, head of the Levant Department of the Foreign Office, who brought the British offers to Jordan, for time to prepare public opinion for the step. Templer was scheduled to leave for London on 15 December, but he is prepared to return to Jordan should further talks with the new government be needed. #- The British Foreign Office is inclined to believe that the new government will be stronger than the last and will not hesitate to join the pact. Egyptian intrigue and Saudi Arabian money will be brought to bear against a.fa- vorable decision. The memory of the assassination in 1951 of King Abdullah, who also was accused of softness toward Israel, is likely to be evoked. Rigorous security measures will therefore be necessary if Jor- dan does join the pact, and the decision, whichever way it goes, will probably continue to be an issue dividing the country frr some time to come. 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART I OF IMMEDIATE INTEREST Page 8 of 8 Approved Fo R lease 2005/02/10 : CIA-RDP79-0092 A 00700050001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 NOTES AND COMMENTS Arab-Israeli Situation Israel raided Syrian posi- tions near the shore of Lake Tiberias on 11 December. The latest round of talks between UN truce chief General Burns and the Egyptian and Israeli leaders has resulted, in no appreciable progress toward adoption of the UN proposals for maintaining peace in the El Auja demilitarized zone. An Israeli official told the American embassy in Tel Aviv that the raid was really "preventive" rather than "re- taliatory," since the Israelis wished to teach the Syrians that they could not interfere with Israeli activities on Lake Tiberias. Israel claims the lake and all its shores are in Israeli territory. The action may also have been intended to test the newly created Syrian-Egyptian joint command. If Tel Aviv's object is to discredit the effectiveness of this alliance, it may well have had initial success; the joint command headquarters re- portedly refused to make any comment on the attack. Should the Israelis pursue these tac- tics further, however, Egyptian prime minister Nasr will be under considerable pressure to take some counteraction, since his failure to do so could result in a serious loss of Egyptian influence in Syria. Egyptian recognition of this possibility is presumably behind Nasr's announcement on 15 December that Egypt and Syria will attack Israel on two fronts if there is "any further Israeli aggression." Both the Israeli action and General Burns' conspicuous lack of success in bringing Egypt and Israel closer to a solution of the El Auja problem suggest that neither side any longer considers the UN a seri- out factor in the situation. The Israelis have shown for some time that this was their attitude by their tactic of calling the truce organization's attention to border violations and shooting incidents while neglecting to ask for formal investigations. Reports from Cairo and Tel Aviv indicate that basic deci- sions on future policy are being held up pending the return of Israeli foreign minister Sharett from his trip to the United States and some announcement of the Western attitude toward Israel's request for arms. SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART II NOTES AND COMMENTS Page 1 of 1- Approved ForpIease 2005/02/t(-; ~P79-00927A400700050001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY The movement for complete independence is gathering strength in French North Africa. Encouraged by the gains the nationalists have made in Tuni- sia and by French-Moroccan ne- gotiations, the Algerians are preparing to seek a new rela- tionship with France. The French government has indefi- nitely postponed parliamentary elections in the four Algerian departments. Rabat .Casablanca t t F R E N C H M 0 R 0 C C O SPANISH SAHARA TAP ?Tetuan ~;,'4N/S1{ ~M 1,y Mokocco ? lilla dujda Berber tribal attacks con- tinue in northeastern Morocco. French authorities fear that the rebellion may spread to the Beni Snassen tribe in the fer- tile Oujda area. Moroccan prime minister Si Bekkai, a mem- ber and former chieftain of this tribe, probably is being pressed by the French to exert his in- fluence to prevent such a devel- opment. American air force offi- cials in Morocco believe the tribesmen are supplied by two major routes, one extending south through Spanish Morocco from Melilla and the other across the Algerian border. Should the Spanish authorities tighten existing controls, the tribes would probably be supplied from Algeria. In an apparent effort to force the Spanish high commis- sioner to proceed with his re- ported plan to establish an . Algiers Constantine. Medenine TU N I S 1?A autonomous Moroccan government in Tetuan subordinate to the sultan in Rabat, Istiglal leader Allal el Fassi and Islah (Span- ish Morocco) leader Abdelkhalek Torres issued a joint communique on 10 December requesting Spain to free and unite its protector- ate with the rest of Morocco. The eventual unification of Morocco, including the inter- nationalized zone of Tangier, is a basic policy of all Moroc- can nationalist groups. 25X1 25X1 SECRET PART I I Approved For Relea*81?5/RY~0- fffg9-00927A0007000500a0g1e 1 2 of 12 Approved ForReeR lease 2005/02/10 : CIA-RDP79-00927A 00700050001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 Meanwhile, the Moroccan Communist Party has stepped up its propaganda activities.. Al- legations by the French resident general that the Communists are involved in the tribal rebellion in the Rif have not been sub- stantiated. The Moroccan Com- munist Party, however, is at- tempting to take credit for participation in the independ- ence movement. The French government has indefinitely postponed the 2 January parliamentary elections in the four Algerian departments because of deteriorating public safety and indications of a widespread boycott by potential Algerian Moslem candidates as well as the voters. Sixty-on6.of the:`91_.Alger- ian Moslem members of various national elected bodies, known as the "61,?" appear to have so- lidified their organization formed in September. An "Action Committee of the 61" recently issued a communique calling for immediate negotiations by all' representative political groups aimed at establishing a new Al- gerian Charter. This group may ally itself with the organization of liberal French settlers now being formed by Jacques Cheval- lier, mayor of Algiers. TUNISIA The French high commissioner announced on 8 December that France had turned over several internal security police units to the Tunisian government. Other units will be transferred gradually to Tunisian authori- ties. This development should strengthen the hand of the Ben Amar government, which is strongly criticized by sympathiz- ers of extremist nationalist Salah ben Youssef as being too conciliatory toward the French. Under the French-Tunisian con- ventions, transfer of control over internal security forces was not scheduled until late 1957. Ben Youssef is continuing his campaign both to discredit moderate leader Habib Bourghiba and to undermine the Tunisian government. On 10 December, sev- eral hundred demonstrators, probably followers of Ben Youssef, clashed with French troops while attempting to loot the Neo- Destour party headquarters in Medenine, southern Tunisial. Such clashes will probably continue unless the government soon acts to suppress Ben Youssef's activities. 25X1 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART II NOTES AND COMMENTS Page 3 of 12 Approved For Release 2005/02/10: CIA-RDP79-009270700050001-1 SECRET Cyprus The prospects for renewed discussions of the Cyprus prob- lem between the British governor of the colony and Cypriot arch- bishop Makarios appear to have improved since the British de- livery in Athens on 9 December of a revised formula for set- tling the dispute. Athens is exerting pressure on Makarios to ensure that their positions are co-ordinated, and the arch- bishop stated publicly on 11 December that his talks with Governor Harding might soon be resumed. Although the British am- bassador in Athens was not en- couraged by the initial reaction of the Greek foreign minister to the latest British revised formula, Athens is nevertheless likely to urge Makarios to re- sume negotiations on the basis of that proposal. Prime Minis- ter Karamanlis evidently wants to continue his bargaining, and he would probably like to see new Makarios-Harding ne- gotiations protracted until after Greek elections early next year in order to minimize the Cyprus issue during the election campaign. Since the prime minister is now primarily concerned with avoiding Cyprus as an election issue, he will probably soft- pedal the controversy to avoid further incitement of popular emotions in Greece. King Paul, who reportedly favored support of London's original formula, and Foreign Minister Theotokis are probably reconciled to Britain's refusal to guarantee a time limit for self-determina- tion. In any new talks with Harding, Makarios will probably continue the moderate approach he took in the talks last month. Although Makarios has been crit- icized by the Communists and terrorist groups for his moder- ate stand, his position has probably been strengthened as a result of several recent develop- ments. The British military operation in the Troodos Moun- tains on 11 December, for ex- ample, resulted in what appears to have been the first signifi- cant success of the British security forces to date against guerrillas of the terrorist organization EOKA. Moreover,:the Nicosia newspaper controlled by the Cyprus ethnarchy recently began warning the Cypriots against Communist intrigue to undermine Nationalist unity and destroy the gains already achieved under Makarios' leadership. The outlawing of the Cypriot Communist Party on 14 December and the arrest of 135 party leaders in an island-wide roundup by the British may also have the effect of easing the pressure of the extremists on Makarios and further strength- ening his position. In general, the circum- stances appear favorable for an interim settlement at an early date. Although some extremists will probably persist in terror- ist activities, gradual pacifi- cation of the island may follow as Makarios' followers in the countryside discontinue support of EOKA guerrillas. 25X1 25X1 SECRET PART I I Approved For Releaq~5/f10 CC Page gf S79-00927A000700050001-1 4 of 12 Approved F r R ase 2005/02/10: CIA-RDP79-009270700050001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Turkey The new Turkish cabinet has been approved by the Demo- cratic Party caucus and should have no major difficulty win- ning a vote of confidence in the Grand National Assembly, proba- bly on 16 December. The vote in the assembly, where party loyalties are reflected, is not likely to indicate the extent and intensity of the opposition to Prime Minister Menderes or his policies. Menderes' decision to keep the national defense portfolio suggests his intention to con- tinue personal domination of the government. When the previous cabinet was forced to resign on 29 No- vember, Menderes was able to obtain a narrow vote of "per- sonal confidence." The party caucus agreed to give him an- other chance. Unless he proves Plans for Egyptian Parliament Egyptian prime minister Nasr has set 16 January as the date on which he will announce plans re-establishing a nation- al parliament. This action will fulfill one of the long-stand- ing promises made by Nasr's military regime. However, the narrow range of powers which the regime intends to allow the parliament makes it unlikely that the move will arouse much popular enthusiasm. Ever since they overthrew the monarchy in 1952, the army officers who led the revolution have considered ways and means of returning Egypt to. at least his willingness and ability to handle Turkey's economic problems, the cabinet may fall again within a few months. Menderes' new program pro- vides several administrative and judicial reforms but ap- parently includes no major economic reforms. A second cabinet crisis, possibly when the budget is debated in March, might end Menderes' political career. If he were dropped from the premiership, President Bayar would probably assume a more active leadership of the Demo- cratic Party and of government affairs. In a policy statement to the assembly on 14 December, the new government confirmed its position on the Cyprus question and its intention to continue working for the de- velopment of the Balkan pact. F__ I ostensible civil control. A constitutional committee, named in January 1953, has produced drafts, but none of these seems to have found much favor with Nasr, in whose hands the decision rests. Nasr's prob- lem is to institute consti- tutional arrangements which will preserve his own power against possible opponents both in and outside the present governing body, the Revolution- ary Command Council (RCC), and which, at the same time, will not be too patently rubber- stamp in nature. The solution Nasr and his close advisers have chosen SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 NOTES AND COMMENTS Page 5 of 12 25X1 Approved F r Re ase 2005/02/10 : CIA-RDP79-00927A040700050001-1 SECRET % - OF CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 is a strong executive, with Nasr as president and with the pres- ent members of the RCC--minus any who may be purged in the interim--as cabinet officers. The proposed parliament is usually envisaged as a largely appointed one in which interest groups, such as industrial and agricultural labor, industry, etc., rather than geographic constituencies will be repre- sented. Such a constitutional struc- ture closely resembles the cor-- porate state outlined in Ital- ian Fascist theory. The proto- type of the Cairo regime's con- ception, however, is reportedly Portugal under Salazar, whose example presumably is more pal- atable than Mussolini's. A parliament composed on these lines has the advantage of avoiding popular elections. Such a parliament of interest groups also practically ensures the political anonymity of its members, who, if known to the Electrification U ov~et a ways According to recent an- nouncements, the USSR intends to electrify the Trans-Siberian from Moscow to Irkutsk. Main- line steam locomotives are to go out of production during 1957, and the percentage of total freight hauled by diesel and electric locomotives is to in- crease from about 10 percent to 40-45 percent by 1960. public at all, are identified with the groups they represent rather than as individual lead- ers. The RCC has indicated that a considerable share in a new parliament would be given to organized industrial labor, a group which the regime has sought to use to develop the mass base of support which it lacks. During the last six months, however, this still relatively small group has shown little interest in the RCC's proposals, regarding with indifference the jussihi_LxL;y of representation in a powerless parliament whose members would be hand-picked. Regardless of how adroit the constitutional arrangements are, this indif- ference is likely to be the re- action of the Egyptian public as well, and the regime may find that in instituting a parlia- ment of this kind it will lose rather than popularity. .Flans for electrification after 19.60 include the remain- ing stretch of the Trans-Sibe- rian from Irkutsk to Vladivostok, a Moscow-Flack Sea-Sochi line, a Moscow-.Sverdlovsk line, a Moscow-Leningrad line, and several important shorter stretches. By 1965 diesel and electric loco- motive f r.,,ight haulage is sched- uled to rise to 30-85 percent of total haulage. SECRET Approved For Rele 220054 /1 0 : CIA-RDP79-00927A000700050001-1 jT S AI. C01,5MENTS Page r : c_z 1"", 25X1 Approved For Re ase 2005/02/10: CIA-RDP79-00 27A 00700050001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Advantages of railway electrification over steam location are higher speeds, heavier loads, lower mainte- nance costs, higher degree of readiness for operation, and savings of high-quality coal. Diesel engines have, in general, similar advantages over steam locomotion. Dieselization.costs less than electrification, and is therefore preferred in areas of relatively lower traffic densities and longer hauls. Less than one fourth of the 3,320-mile stretch from Moscow to Irkutsk is now elec- trified, and the remaining dis- tance is about equal to the 2,500 miles of line electrified in the Soviet Union in the past quarter century. When this project is com- pleted, the electrified por- tion of the Trans-Siberian, with a sizable increase in capacity, will not only serve the rapidly developing Irkutsk area but will also reach almost to Ulan Ude, the junction with the new Mongolian railway to China. Electrification to this junction, including a difficult stretch around the southern tip of Lake Baikal with many tun- nels, will probably soon follow. The intention to end steam locomotive production in 1957 indicates that plans have been radically revised since May 1954, when First Deputy Premier Kaganovich announced that during the 1956-60 plan, 6,000 steam, 2,000 diesel-electric, and 2,000 electric locomotives would be needed. If steam loco- motive production ends in 1957, only 2,000 or 2,500 will prob- ably be built during the coming plan period. 25X1 pared by ORR IHlll _ - - ` JJi \ ~ . r it P LJ ~? 7' C j fi0 LECT IF S y1g, I 4 AD Ilion ~' rm sk and I sha .., ~~ lQO e El ifi t d il d ec r e ra roa ~ / o iJJod i~ I ~ I Railroad, to be electrified by 1960 ? p l 1l ----- Railroad, to be electrified after 1960 Kiev (L Moscow Krivoy Ro Gorki '" i y g Ryo , an Solikask IDeboltsevo -Molotov Serov 0f ~ {r l I.- I . Sverdlovsk 0 QD Sochi Abd ulino KI910VOd5k Chelyabinsk `". 5 a s Magnitogorsk 7 Tbilisi _ Omsk Yerev n Novosibirsk B. /-~ Khabaro// .' fix., Stalinsk r ggg~ t 40 VI ivostok rr yA I 18 DECEMBER 195 9 1000 11q 149]0 6D eD 100 12D SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700050001-1 PART II NOTES AND COMMENTS Page 7 of 12 25X1 Approved F r Re ase 2005/02/10 : CIA-RDP79-00 7AOA0 700050001-1 SECRET South Vietnam Viet Minh propaganda is devoting considerable attention to the forthcoming elections for a national assembly in South Vietnam, which will probably be held sometime before mid- February. It describes them as an integral part of a plot to "wreck the Geneva agreement, integrate South Vietnam into the SEATO bloc, and rekindle the war." One broadcast noted that the experiences gained in struggling against the October referendum on Bao Dai's future provides "ample means of op- posing the American-Diem plot for wrecking peace and unifi- cation." Recent reports credit the Viet Minh with an increased capacity for infiltration, sabotage and terrorism at the village level in South Vietnam, The Pathet Lao attack a- gainst royal government troops southeast of Muong Peun on 5 December now appears to have been a localized skirmish rather than the signal for military action throughout northern Laos. The government forces repulsed the attempt to cut their line of communications and have forced the enemy's retreat. The American army attache in Vientiane reports that the government troops demonstrated a reasonably good degree of com- bat effectiveness. French air supply, on which the troops especially in the area west of Saigon. Viet Minh infiltration of the Hoa Hao dissidents in this area is apparently making headway and President Diem has described the situation as critical. The Viet Minh may hope to utilize the Hoa Hao rebels as a front to harass the Diem government, and thus avoid open violation of the Geneva terms. To counter Viet Minh in- fluence in rural areas, Diem has inaugurated a village self- defense corps. In addition, he has decided to resettle ap- proximately 100,000 northern refugees in western South Viet- nam. The presence of these anti-Communist refugees will ultimately aid greatly in eliminating the security prob- lem in that region. involved were totally dependent, continued during the operation. Government commando units reportedly have also retaliated in other areas, attacking Pathet Lao munitions depots. Reports on the extent of this activity, which could provoke a strong enemy reaction and expand the present hostilities, are frag- mentary. Premier Katay, how- ever, has told the American am- bassador that the government does not wish to press a counter- offensive prior to the National Assembly elections on 25 Decem- ber. SECRET Approved For ReI a 005/02/10: CIA-RDP79-00927A000700050001-1 AND COMMENTS Page 8 of 12 25X1 Approved F r Re ase 2005/02/ i P79-00 7A0 .0700050001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 15 December 1955 Satellites Move to Improve Relations With United a es Expressions of interest by East European countries in improving relations with the United States have now been followed by action. On 28 No- vember negotiations on outstand- ing economic problems began in Prague between the United States and Czechoslovakia, and since 7 December Rumania has granted 13 long-denied exit visas requested by the United States. Polish and Hungarian officials have also expressed interest in negotiating out- standing problems with the US, but no'formal action has yet been taken by either government comparable to the Czech and Rumanian initiatives. CZECHOSLOVAKIA The announced objective of the talks in Prague is to normalize economic relations be- tween the United States and Czechoslovakia insofar as pos- sible under existing political circumstances. The current series of meetings caps several years of efforts to establish some mutual basis of discussion. Czechoslovakia's approach however, makes it improbable that any quick settlement will be reached. Czechoslovakia has included in its agenda, proposals for a general discussion of all outstanding economic issues, in- cluding the problem of "economic discrimination" against Czecho- slovakia, which is very important "since the United States had dis- criminated unscrupulously against Czechoslovakia