CURRENT INTELLIGENCE BULLETIN - 1955/12/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03020467
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: December 21, 1955

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CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2)
3.5(c)
21 December 1955
Copy No. 103
DOCUMENT NO
NO CHANGE IN CLASS. V/
U DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE. 2' 0
AUTH: HR 70-2
DATE: REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. CHINESE COMMUNIST TRADE TALKS WITH URUGUAY
2. PRESIDENT SUKARNO_APPARENTLY_SREAKTIqr,FALT�C)F
HAFtAHAP CABINET
* * * *
THE ARAB-ISRAELI SITUATION
21 Dec 55
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1. CHINESE COMMUNIST TRADE TALKS WITH URUGUAY
The honorary Uruguayan consul in
Hong Kong, who has just returned
from Peiping, says preliminary trade
talks with Chinese Communist officials have resulted in
contracts worth several hundred thousand pounds sterling,
a Chinese proposal for the exchange of permanent trade
representatives, and a call for a formal Sino-Uruguayan
trade agreement.
The participation of Premier Chou
En-lai in the talks emphasizes the political interest the
Chinese have in establishing closer trade ties with Latin
American countries. Peiping apparently hopes to pave
the way for eventual recognition by Uruguay and possibly
other Latin American states. Chou told the Uruguayan
consul that he would like to "visit the American continent
next year."
Trade between Communist China and
Latin American countries has hitherto been small, prin-
cipally with Argentina and Brazil. The negotiations with
Uruguay may, however, stimulate a general Latin Ameri-
can interest in broadening trade with China. Earlier this
month Uruguay designated a "commercial agent" to East
Germany and Poland while announcing that this in no way
implied diplomatic recognition of these regimes.
The Latin American states can be ex-
pected to follow the majority of the Western powers on the
question of recognizing Peiping. (Concurred in
by ORR)
21 Dec 55
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2. PRESIDENT SUKARNO APPARENTLY SEEKING FALL OF
HARAHAP CABINET
Opposition newspapers in Indonesia are
calling for the resignation of Prime
Minister Harahap's pro-Western gov-
ernment over the air force crisis.
President Sukarno seems also to be
seeking the cabinet's fall. He has op-
posed Harahap's proposals to discipline
the high-ranking air force officers involved in mutinous
conduct on 14 December. If the government fails to reas-
sert its authority, its position may become untenable.
Sukarno would like a leftist government
to supervise the returns from the elections on 15 December
for a constituent assembly. He would also like to make his
own selection of some 20 members to represent national
minority groups, who may hold a balance of power in the
new parliament. At present both Sukarno and Harahap are
claiming the constitutional privilege of making the selections.
Hara,hap will resist pressure to force his
resignation, but in a contest with Sukarno may not be able to
count on full support from the small-party members of his
coalition when parliament reconvenes on 10 January.
21 Dec 55
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CONFIDENTIAL
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Noe � Niarr
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 20 December)
Egypt has charged that four Israelis and
an Egyptian were killed when an Israeli patrol crossed the de-
marcation line near Gaza on 20 December. An Israeli spokes-
man charged that the Egyptians fired on an Israeli patrol in
the Kissufim area of the Gaza strip. He added that this area
appeared to be growing restive since the Israeli raid against
the Syrians at Lake Tiberias.
The American embassy in Tel Aviv be-
lieves that Israeli public opinion has reached such an emo-
tional state that the overwhelming majority would approve pre-
ventive war. According to the embassy, the Israeli government
in late October considered but rejected preventive military ac-
tion, choosing an arms procurement program as the alternative.
The embassy feels that Israel's fear of Egypt's potential air power
is such that if arms are not forthcoming, the Israelis will prob-
ably take preventive military action against Egypt.
According to a Jerusalem broadcast, the
Syrian minister of defense has refused to exchange four Israeli
prisoners who have been in Syrian hands for over a year for
the nearly 30 Syrian prisoners taken in the recent Israeli at-
tack at Lake Tiberias.
21 Dec 55
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