CURRENT INTELLIGENCE BULLETIN - 1955/10/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03002335
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: October 22, 1955

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CURRENT INTELLIGENCE BULLETIN
NO CHANGE IN CLASS
DOCUMENT NO
OE0LAS8IFIED
CLASS, CHANGED TO: TS S C
NEXT REViEW DATE: a- 0.10
AUTH: HR 70-24,010
DATE. 30- REvtEwEF
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
3.
3.5(c)
3(h)(2
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CONTENTS
1. NEW THREAT OF AFGHAN-PAKISTANI CLASH
REPORTED (page 3).
2. BRITAIN URGES US AID TO EGYPT IN ASWAN DAM
PROJECT (page 4).
3.
4. DELAY IN FORMATION OF MOROCCAN GOVERNMENT
(page 6).
5. INDONESIAN NATIONAL PARTY MAY ACCEPT
COMMUNIST SUPPORT (page 7).
6. JAPAN DETERMINED TO PROPOSE REDUCTION IN
CHINA EMBARGO LIST (page 8).
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Current Intelligence Bulletin Page 2
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1. NEW THREAT OF AFGHAN-PAKISTANI CLASH
REPORTED
claim to have evidence that Afghan-
istan is attempting to incite the
Pushtoon tribes to an outburst against
Pakistan. The tribes live along both
sides of the border, is on his
way to the frontier area to take charge
of countexpreparation.
Afghanistan has the capability of pro-
voking a small-scale tribal uprising and, stung by recent
diplomatic defeats in its dispute with Pakistan, it may
attempt such action. Kabul is reported to have ordered
on 18 October resumption of the Pushtoonistan propa-
ganda which it had agreed to curtail in its settlement
with Pakistan on 15 September.
A local disturbance could be handled
easily by Pakistan's quasi-military security forces and
loyal tribes without involving either country in war. It
is not likely that Kabul will order regular Afghan forces
to violate Pakistan's border.
22 Oct 55
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2. BRITAIN URGES US AID TO EGYPT IN ASWAN DAM
PROJECT
Foreign Secretary Macmillan has
instructed the British embassy in
Washington to explore on an urgent
basis prospects for getting American
aid in financing Egypt's Aswan high
dam project. Macmillan emphasized
the necessity of early action to fore-
stall Soviet moves. Britain, he in-
dicated, cannot supply all of the needed funds because of
its precarious balance of payments position.
Prime Minister Eden has informed
the American embassy in London that he regards this
proposal as of major importance. He stated that a
British-French-German consortium and Nasr were ready
to enter into a contract immediately and he felt that if
possible this should be done within the coming week.
Eden said the Russian arms offers con-
stituted the "most sinister" event in the East-West con-
flict "since the Soviets took over Czechoslovakia," and
that a Soviet deal with Egypt on the Aswan project would
be a "major blow" to the entire Western position in the
Middle East.
Comment As part of its intensified effort to in-
crease influence in the Near East, the
USSR recently offered to help Egypt finance the Aswan high
dam by means of a 30-year loan for an unspecified amount
at 2-percent interest payable in Egyptian rice and cotton.
Nasr has continuously been pushing for
Western financing of the Nile development project and, in
view of his acceptance of Soviet arms, would probably like
to counterbalance Soviet influence by obtaining the loan from
Western sources.
22 Oct 55 Current Intelligence Bulletin
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4. DELAY IN FORMATION OF MOROCCAN GOVERNMENT
Fathmi ben Slimane, Moroccan premier-
designate, agreed to consider forming
a Moroccan government only because
he believed Resident General Boyer de
Latour would be replaced,
as o � e American consul general in Rabat.
Ben Slimane is reported to believe it would be impossi-
ble for anyone to make a government function with Boyer
de Latour as resident general.
much of the difficulty in forming a govern-
ment arises from France's insistence on some ministers
being French, Such a plan would have no chance of popu-
lar acceptance.
Comment The designation of Ben Slimane as pre-
mier followed by several days the an-
nouncement that he was Paris' choice to head the Moroc-
can government. This maneuver, together with the obvious
French attempt now being made to isolate the nationalist
Istiqlal party, apparently is backfiring. Both the Lstiqlal and
the extremists are increasing their agitation against France's
present policy, and terrorism has substantially increased
in the past week.
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5. INDONESIAN NATIONAL PARTY MAY ACCEPT
COMMUNIST SUPPORT
Although National Party leaders have
rejected Communist participation in a
new cabinet, they apparently are not
excluding the possibility of Communist
support, according to the American embassy in Djakarta.
The embassy believes the main line of Nationalist think-
ing is to negotiate with the anti-Communist Masjumi while
leaving the door open for a coalition with the Nandlatul
Ulama with Communist parliamentary support.
There appear to be three factions in
the National Party which are struggling for leadership.
The main differences among them seem to be their atti-
tude toward Communism and the extent to which they are
willing to co-operate with the Masjumi.
Comment If final official returns show the National
Party retaining its slight lead, one of its
members probably will be given the first opportunity to form
a new cabinet. His identity, however, and hence the success
of negotiations with the Masjumi, will be determined by the
outcome of the struggle for party leadership.
The All cabinet, which held office from
1953 until July 1955 and was led by the left wing of the
National Party, included members of the Nandlatul Ulama
(NU), and had strong Communist support. The NU, although
a conservative Moslem party, appears less concerned over
Communism than the Masjumi.
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6. JAPAN DETERMINED TO PROPOSE REDUCTION IN
CHINA EMBARGO LIST
Japan appears determined to propose
some relaxation of China trade con-
trols at the next meeting of the Con-
sultative Group of COCOM in Paris
in December. A high Japanese official informed the
American embassy on 19 October that Japan was obliged
to take this position because of domestic pressure. Great
Britain, France, and most of the other COCOM members
are also pressing for a relaxation of trade controls.
Japan feels that the China trade is
potentially more important to it than to any other COCOM
member, and that the government would lose face domes-
tically and internationally if Britain and France were
allowed to Stake the lead. The Japanese have shown
willingness to delay final action for several months pend-
ing a re-examination of the problem in CHINCOM. Such
re-examination would aim at adopting a single embargo
list for the entire Sib-Soviet bloc. (Concurred in by ORR)
22 Oct 55 Current Intelligence Bulletin
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