CURRENT INTELLIGENCE BULLETIN - 1956/08/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03193803
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 21, 1956

for Release: 2019/10/23 C03193803 - 0.
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21 August 1956
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CONTENTS
L USSR PROMISES EGYPT TO 7FFER ALTERNATIVE TO
INDIAN PROPOSAL ON SUEZ (page 3).
2. NASR REPORTEDLY wfirmn ACCEPT 12-NATION OVER-
SEER BOARD ON SUEZ (page 4).
3. PANAMA SEEKS VOICE IN CANAL OPERATIONS (Top
(page 5).
4. MOLLET MAY RESIGN IF SUEZ OUTCOME UNSATISFACToRY
(Confidential) (page 7).
5.� SOVIET I CRAFT DEPLOY TO EASTERN EUROPE
page 8).
6. TERRORISTS ON CYPRUS ASK FOR TRUCE
(page 10).
7. LAOTIAN GOVERNMENT OUTLINES TERMS FOR MILITARY
SETTLEMENT WITH PATHET LAO
(page 11).
8. CZECH COMMUNIST PARTY REJECTS POLISH TYPE OF
"LIBERATION" (page 12).
21 Aug 56
THE ARAB-ISRAE SITUATION
(page 13)
Current Intelligence Bulletin Page 2
TOP-SE-eR&T
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1. USSR PROMISES EGYPT TO OFFER ALTERNATIVE TO
INDIAN PROPOSAL ON SUEZ
Egyptian officials in London and Soviet
representatives at the London confer-
ence decided, following submission of
the Indian compromise proposal on the
Suez, that it would be necessary for the
USSR to "present a plan on the basis of the ElYvntian nnint nf
view,"
Comment Menon's plan proposed revision of the
Convention of 1888 and establishment of
an advisory council of user nations which the Egyptian canal
company would be obliged to consult. The company's annual
report would also be transmitted to the United Nations.
Despite the fact that the concept of a con-,
sultative council appears agreeable to Nasr, the council's role
under the Indian plan may have seemed dangerously undefined.
to the Egyptians in London.
A Soviet plan drawn up in agreement withl
the Egyptians probably would incorporate the main features of
the Indian proposal, but with a special eye to Noses requirements
for limiting international participation in Suez affairs. The USSR,
in presenting its proposal would be on record as acting directly on
Egypt's behalf.
21 Aug 56
Current Intelligence Bulletin Page 3
TOP SECR-E-7
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2. NASR REPORTEDLY WOULD ACCEPT 12-NATION
OVERSEER BOARD ON SUEZ
Nasr is willing to accept a compromise
�on the Suez Canal issue which would in-
clude a 12-nation commission to oversee
operation of the canal, but which would
have no direct operating responsibility,
The suggested commission would be corn-
posed of six permanent members chosen from the major mari-
time powers and six members chosen in rotation from among '
the "lesser powers!'
21 Aug 56
Current Intelligence Bulletin Page 4
-steittur
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30 PANAMA SEEKS VOICE IN CANAL OPERATIONS
Comment What appears to be Panama's ultimate ob-
jective of achieving participation in the
operation of the canal is demonstrated in the current protracted
negotiations on the United States proposal to establish radar sites
in Panama to assist in the defense of the canal. Panama has balked
at fulfilling treaty commitments which permit the establishment
of defense sites in Panamanian territory and wants an entirely new
agreement for the sites. The immediate Panamanian objective
appears to be to weaken US treaty rights and establish the basis
for future Panamanian claims to "partnership" in the operation
of the canal.
Panama has shown an intense interest in the
Egyptian nationalization of the Suez Canal and undoubtedly hopes
the Suez crisis will result in an international agreement which 1
Panama could later use in asserting its "rights" in the operation
of the Panama Canal.
21 Aug 56
Current Intelligence Bulletin
Page 5
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21 Aug 56
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Tefl�SEeRET
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�140.0
MOLLET MAY RESIGN IF SUEZ
OUTCOME UNSATISFACTORY
Premier Mollet's personal spokesman
told American officials in Paris on
16 August that Mollet feels he would
have to resign if the Suez crisis were
not resolved to France's satisfaction0
jThe spokesman said Mollet believes an unsatisfactory out-
come of the London conference would undermine France's
determination to fight in Algeria and that twin defeats on
Suez and Algeria would lead to a real crisis for the Fourth
Republic.
The American embassy cautions that while'
this interpretation may be unduly pessimistic, it reflects the
views of many responsible Frenchmen. The embassy be-
lieves the growing dissatisfaction with the Algerian campaign
in France is apt to increase sharply if prospects for an end
to the fighting become worse.
Comment France reacted strongly to the Suez crisis,
fearing that another boost to Nasr's leader-
ship would markedly stiffen Moslem resistance to France in
Algeria,, Should the outcome heighten Mazes prestige, those
who favor an early end to the war in Algeria might gain the
upper hand in the National Assembly.
21 Aug 56
Current Intelligence Bulletin Page 7
CONFIDENTIAL
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5. SOVIET AIRCRAFT DEPLOY TO EASTERN EUROPE
A large-scale deployment of Soviet
bombers to airfields in Hungary and
Poland began in the early morning of
18 August with the movement of as
many �60 medium bombers and transports of the Long
Range Air Force. On the following day, several Long
Range aircraft
presumably en route to East Ger-
many. Although most of the aircraft appear to be subordi-
nate to the First Long Range Air Army, aircraft of several
other Long Range Air Force organizations and other com-
mands are involved. Several of the aircraft apparently re-
turned to the USSR on 20 August.
At least 35 IL-28 jet light bombers of
the 15th Air Army and the IL-28 unit based at Shchuchin also
participated in the movement to Poland on 18 August.
Comment The unprecedented deployment to east-
ern Europe of Long Range Air Force
aircraft and the associated light bomber moves suggest the
commencement of a joint Long Range-Tactical Air. Force
Berlin
Schoenfeld4 Briesen� P ON
11.-26 :Shchuctin
Poznan
-)Guben
iwOVEI'AS
Area
Warsaw
Prague
\ � Lodz
Area
-\;
�
'rOstov
'GA
Y
A�RBudapest
\ HUNG
Debrecen,
U. S. S. R.
LRAA
�Moscow
21 Aug 56
Current Intelligence Bulletin
Page 8
TOP SECRET
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NuerT,
exercise which may involve the entire forward area. Prep-
aration for this exercise probably began as early as 1 June
when Long Range Air Force transport aircraft began visiting
eastern Europe with increasing frequency. Almost daily flights
to Briesen and Schoenfeld by Long Range Air Force TU-4's and
headquarters transports since 6 August suggest there may be
further deployment of Long Range aircraft to East Germany.
21 Aug 56
Current Intelligence Bulletin Page 9
_T�DP�SEeRET
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6. TERRORISTS ON CYPRUS ASK FOR TRUCE
The American consulate general in
Nicosia reports that the Cypriot
nationalist organization EOKA, which
asked for a truce on 16 August "to test
the sincerity" of Britain, has not con-
demned violence and is ready to resume
operations if the British response is not
favorable.
The consul general says EOKA may be
asking for a truce because the security forces have been
making progress against its members and many Cypriots
are beginning to be disillusioned with its methods.
Greek officials in Athens were taken by
urprise by EOKAs action, and the Cyprus ethnarchy repre-
sentative in Athens also claims to have had no prior knowledge
that a truce was to be called. Prime Minister Karamanlis,
although pleased at the improved prospects for settling the dis-
pute, has complained that his government should have been
consulted so it could have laid the diplomatic groundwork for
American support of compromise attempts.
Cypriot nationalists still maintain that
Makarios must be consulted in any planning for the future of
the island and probably hope that the British will now return
him from exile.
21 Aug 56
Current Intelligence Bulletin Page 10
-3reiRE-T-
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7, LAOTIAN GOVERNMENT OUTLINES TERMS FOR
MILITARY SETTLEMENT WITH PATHET LAO
Royal government- Pathet Lao military
commissions are scheduled to begin de-
tailed negotiations on 22 August regarding
the integration of Pathet troops into the
The gov-
ernment's plan is to relate the number of Pathets to be inte-
grated to the number of modern weapons they turn in and,
after selective screening, form them into one or two battal-
ions0 once under
royal government control, the battalions would be broken up
by reassignment to other units.
Comment
ment "treachery,"
that leave them in
tory.
The Pathets, have
revealed concern over possioie govern-
and are likely to insist on settlement terms
effective control of their forces and tern-
21 Aug 56 Current Intelligence Bulletin
Page 11
-TOP-SEC-REF
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8., CZECH COMMUNIST PARTY REJECTS POLISH
TYPE OF "LIBERATION"
The central committee of the Czecho-
slovak Communist Party,
recently instructed
editors that an incorrect interpretation
of the Soviet 20th Party Congress had led to serious mistakes
in Poland and Hungary which, it implied, must be corrected.
The central committee warned that the Poznan riots and other
events in Poland "teach us a lesson" as to how the "class
enemy" exploits weaknesses, such as Poland's "reckless am-
nesty."
According to the central committee's in-
structions, Yugoslavia is not to be taken as a model; wage
questions must be handled cautiously, as improvements evoke
pressure for more concessions; the bureaucracy should not
be attacked in general but only in concrete terms; decentraliza-
tion is not a panacea and centralization is not bad per se; agri-
cultural collectivization must be speeded up; and the press must
weed out numerous "incompetents."
Comment
� The regime in Prague is still concerned
over dissidence, and these instructions
support earlier indications that concessions will be kept to a
minimum. The Czech implication that the Polish and Hungarian
parties must rectify their post-congress "errors" gains interest
from the fact that both parties have continued, and possibly ac-
celerated, their liberalization programs.
21 Aug 56
Current Intelligence Bulletin Page 12
:�ECREZ
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-CONFIDENTIAL
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 20 August)
The Syrian defense minister has publicly
stated that King Hussain has accepted an offer from Syria, Egypt
and Saudi Arabia to help equip the Jordanian National Guard in
building up its defense against Israel. According to the Syrian
official, this is separate from a previous offer to replace the Brit-
ish subsidy and provides for aid on a permanent and unconditional
basis. (Press)
Israel has doubled and in some cases tripled
its production of "military items," according to an official public
announcement. (Press)
21 Aug 56
Current Intelligence Bulletin Page 13
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