CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003100370001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: December 14, 2016
• Document Release Date: October 17, 2002
• Sequence Number: 1
• Publication Date: June 7, 1957
• Content Type: REPORT

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7 June 1957
copy NO. ;,
CURRENT
INTELLIGENCE
BULLETIN
~
DOCUMENT NO. -
NO CHANGE IN CLASS. `7~'_
^ DECLAS:;IFILD
CLASS. CHANGED TO: TS S
NEXT REVIEW DATE:
DATE' ems-
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
State Department review completed
TOP SECRET
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CONTENTS 25X1A
1. JAPANESE LEFTISTS PLAN ANTI-US RALLY
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f 3. INDONESIAN GOVERNMENT REPORTEDLY MAY USE AIR
FORCE AGAINST SUMUAL
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4. WEST GERMAN OPINION INCREASINGLY FAVORS FIRST-
STEP EUROPEAN INSPECTION ZONE
5. BRITISH STATEMENT REGARDING BRITISH SHIPS TRADING
WITH COMMUNIST CHINA
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. GOMULKA DISCUSSES AMERICAN LOAN
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8. INDONESIAN GOVERNMENT REPORTEDLY FACES SERIOUS
FINANCIAL CRISIS
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ANNEX--Conclusions of the Watch Re ort of the Intelligence
Advisor Committee
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7 June 57 Current Intelligence Bulletin Page 2
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1. JAPANESE LEFTISTS PLAN ANTI-US RALLY
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The Japan Socialist Party, in co-opera-
tion with the leading leftist organizations
in Ja an lans a large-scale demonstra-
on 15 June to demand the
abolition o the "unequal treaties" with the
United States. Socialist sources have told
the embassy that the Communist rank and
file will probably participate in the demon-
str tions, which will be held on the eve of Prime Minister
Kishi's departure for Washington. The timing of the rally is
designed to put the Socialists in a position to attack Kishi on
his return for the "failure" of his mission to realize popular
aspirations.
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Comment Leftists in Japan have refrained from vio-
lence since the 1952 May Day incident, which
caused a severe loss in popular support for the Communist Party.
Lessening of the furor over the Girard case, which the rally orig-
inally intended to exploit, has eliminated some of the danger of
violence, but the Communists reportedly intend to keep the issue
alive by demanding severe punishment.
7 June 57 Current Intelligence Bulletin Page 3
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3. INDONESIAN GOVERNMENT REPORTEDLY MAY USE
AIR FORCE AGAINST SUMUAL
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The Djakarta government may resort
to bombing in an effort to depose Lt.
Col. ? Sumual, territorial commander
in East Indonesia, if current negotia-
recent changes within Sumual's command effected
by Nasution had so far failed to solve the problem since
Sumual. stated he will not leave his post unless forced to do
soo F7 I
Comment Sumual has shown no disposition to sur-
render his command, although recent
talks in Makassar between Nasution and East Indonesian
commanders appear to be aimed at achieving a peaceful
settlement.
Continued efforts by the central govern-
ment.toward a bloodless coup in East Indonesia, using any
resources at its command, can be anticipated. Force, how-
ever, may be employed as ..final alternative. The air force
and the navy, both quite small, are loyal to the government.
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tionswith army Chief of staff General Nasution fail,
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4. WEST GERMAN OPINION INCREASINGLY FAVORS
FIRST-STEP EUROPEAN INSPECTION ZONE
Adenauer's apparent resistance to this proposal. In his
statements on the subject to date, Adenauer has indicated
a fear that any approval by Bonn of an inspection zone in-
cluding German territory would be viewed by West Germans
in an election year as abandoning Bonn's pressure for progress
on reunification.
a first-step disarmament agreement, despite Chancellor
The American embassy in Bonn re-
ports that majority sentiment in West
Germany is increasingly receptive to
a European inspection zone as part of
Many influential West German politicians
and newspapers--including some of the opposition- -have re-
cently stressed that even though such a first-stage agreement
assumes the continuing partition of Germany, Bonn should do
nothing to disturb the London negotiations, since the only road
to reunification leads through a general detente and agreement
on disarmament.
The embassy feels that public opinion in an
election year may bring Adenauer to endorse a first-step agree-
ment even if it is limited to Europe, while at the same time
stressing its importance in creating a better atmosphere for
reunification.
7 June 57 Current Intelligence Bulletin
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5. BRITISH STATEMENT REGARDING BRITISH SHIPS
TRADING WITH COMMUNIST CHINA
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A British. Admiralty spokesman has
declined specific comment on recent
Chinese Nationalist warnings that
British merchant ships trading with
Communist China will be fired upon, but stated that the
Royal Navy will "afford protection" to such ships. He
stated that British ships can always call for protection
"on the high seas:."
Comment Britain has used similar language to
state its policy on numerous previous
occasions, but presumably still wishes to avoid involve-
ment with the Nationalists on this issue. In the past, Royal
Navy commanders have exercised great caution in contacts
with Nationalist units, and Britain has at no time maintained
a systematic naval patrol in the Taiwan area.
The Royal.Navy now has two cruisers,
three destroyers, and three frigates in the Far East.
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60 GOMULKA DISCUSSES AMERICAN LOAN
the East and West. He endorsed acceptance of an American
loan, although he disabused those who expected miracles from
Western economic aid. He assured the workers that the US
credit of $95,000,000 would be approved, but complained that
it was too small and the interest rate higher than that charged
by Communist nations. He emphasized, however, that the. aid
was important since it would not only help to alleviate Poland's
present economic difficulties, but could pave the way to a relax-
ation of international tensions.
Goinulka's speech of 5 June to Poznan
workers of the Cegielski factory, where
last year's riots started, reaffirms
Poland's intention to follow a course de-
signed to reap economic benefits from both
Gomulka promised Poland would continue
to seek such aid from the West. While he is known to be sus-
picious of the West, he nonetheless probably sees Western ties
as advantageous for his economy and a form of insurance against
Soviet domination.
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8, INDONESIAN GOVERNMENT REPORTEDLY FACES
SERIOUS FINANCIAL CRISIS
The value of government export permits for April and May is
40 to 50 percent below the average. He attributed the situa-
tion to the increase in barter arrangements and smuggling in
the disaffected provinces. The bank official stated that unless
the government can come to terms with the provinces without
delay, the financial situation will be "virtually hopeless."
An official of the Bank of Indonesia has
expressed serious concern to American
embassy officers over the effect of the
sharp decrease in legal exports on the
country's budget and balance of payments.
Comment Indonesian national income is largely de-
pendent on the export of a limited variety
of agricultural products., petroleum and tin. The bulk of these
exports is produced in the non-Javanese provinces, currently
engaged in a bloodless revolution with the central government
over the issue of regional autonomy. ? Revenue derived from
the production of foreign companies in Indonesia still goes to
Djakarta, but agricultural produce in the hands of Indonesians?
particularly copra in East Indonesia and rubber in Sumatra--is
increasingly being diverted into direct barter trade with foreign
ports, with the result that the central government cannot col-
lect import and export charges.
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ANNEX
3q
Watch Report 357, 5 June 1957
of the
Intelligence Advisory Committee
Conclusions on Indications of Hostilities
On the basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that:
A. No Sino-Soviet bloc country intends to initiate hostili-
ties against the continental US or its possessions in the
immediate future.
B. No Sino-Soviet bloc country intends to initiate hostili-
ties against US forces abroad, US allies or areas periph-
eral to the Orbit in the immediate future.
C. Early deliberate initiation of hostilities by Israel or the
Arab states is not probable. Although tensions continue
between the Arab states and Israel and among certain
Arab states themselves, these are not likely to lead to
serious conflict in the immediate futre.
7 June .57
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