CURRENT INTELLIGENCE BULLETIN - 1956/05/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185113
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: May 20, 1956

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CURRENT
INTELLIGENCE
BULLETIN
�rsor-p-s=rET-
2,0
May
1956
Copy No,
DOCUMENT NO.
NO CHANGE IN CLASS.
1 DECLASSIFIED
CLASS. CHANGED TO: TS S
NEXT REVIEW DA1 E:
AUT H 7
DAT
REVIEWER
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
3.3(h)(2)
3.5(c)
03
#1141
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CONTENTS
1. MOSCOW RENEWS OFFER 'TO BUILD ASWAN HIGH DAM
(page 3).
2. SHAKE-UP REPORTED IMMINENT IN CZECH COMMUNIST
PART (page 4).
3. RAKOSI'S SPEECH TO HUNGARIAN PARTY ACTIVISTS
(page 5).
20 May 56
THE ARAB-ISRAELI SITUATION
(page 6)
Current Intelligence Bulletin Page 2
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10 MOSCOW RENEWS OFFER TO BUILD ASWAN HIGH DAM
In a meeting with Egyptian prime minis-
ter Nasr on 17 May, Soviet ambassador
Kiselev reportedly renewed the standing
Soviet offer to build the Aswan High Dam.
Il�
Major Hasan Ibrahim, Egyptian minister
of national production, had told a press conference several
days earlier that the Soviet offer to finance the dam still held,
and that Egypt could "accept it at any time." Noting that the
preliminary work on the dam was proceeding, Ibrahim said
that the International Bank for Reconstruction and Develop-
ment had not made a final decision and was "waiting for the
US Senate to declare itself."
Comment The International Bank and the govern-
ments of the United Kingdom and the
United States have approved in principle and in some detail
the financing of the Aswan High Dam. Final action has been
delayed while Egypt negotiates with the Sudan over diversion
of the Nile waters and compensation for Sudanese lands which
will be inundated by the lake formed by the dam. (Prepared
by ORR)
20 May 56
Current Intelligence Bulletin Page 3
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2. SHAKE-UP REPORTED IMMINENT IN CZECH
COMMUNIST PARTY
Comment
Criticism of government policies has in-
creased rapidly since the removal of
Defense Minister Cepicka in late April. The party leader-
ship, however, has not been publicly attacked and the regime
has appeared capable of controlling the dissident elements.
Criticism, while fairly extensive, has not been so 'outspoken
as in Poland.
This discontent probably has been in-
creased by the confusion which developed in the party fol-
lowing first secretary Novotny's report to the central com-
mittee on Khrushchev's secret speech.
A number of recent reports that the re-
moval of Deputy Premier Kopecky, Minister of Culture Stoll
and Slovak Party first secretary Bacilek is imminent indicate
that their positions are insecure.
20 May 56
Current Intelligence Bulletin Page 4
�SECRET�
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RAKOSI'S SPEECH TO HUNGARIAN PARTY ACTIVISTS
Hungarian party first secretary Rakosi's
speech on 18 May in Budapest to 5,000
party activists made a show of bowing to
mounting party opposition to his leader-
ship, without, however, significantly modifying his policies.
Rakosi admitted that he too was personally
guilty of tolerating, and often supporting, the cult of personal-
ity. He also admitted that he, like other party leaders, was
to blame for ex-police chief Gabor Peter's illegal practices in
violation of socialist legality, because poor party controls at
that time made possible the malpractices of the security forces.
These statements are in contrast to Rakosi's early comments,
following the 20th Soviet Party Congress, virtually absolving
himself of these crimes.
Although opposition party elements may
make further demands for Rakosi's removal, his political po-
sition will probably remain secure as long as he has the en-
dorsement of the Soviet leaders, which he received as re-
cently as 11 May. The USSR presumably fears that his removal
now would only worsen the Hungarian political situation. Prob-
ably Soviet leaders suggested that he deliver a defensive speech
of this type in order to attempt to placate various elements in
the party.
20 May 56
Current Intelligence Bulletin Page 5
CONFTI
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 20 May)
UN secretary general Hammarskj old told
Ambassador Lodge on 17 May that he did not think there could
be war in the Middle East for at least another year. He said he
was absolutely convinced that Egypt was strongly opposed to war.
He believed the Egyptians had suggested to the Soviet Union that
it make its 17 April statement about support of a solution through
the UN because they feared war might break out. Hammarskjold
added that Egypt was the only country which had been 100-per-
cent co-operative with him and he thought it might lift the Suez
blockade if it could be done without fanfare and without Israel
testing the blockade in a public way. (Comment: These state-
ments contrast sharply with Hammarskjold's views on his return
that his mission had achieved at best only a two- or three-months'
extension of the truce.)
United Nations truce supervisory officials
in Jerusalem report that a deadlock regarding a meeting of the
Egyptian-Israeli Military Armistice Commission to implement
agreements on the establishment of observer posts on the Gaza
demarcation line continues with no indication it may be broken at
an early date. One of the officials expressed the view, which the
American consul general believes correct, that although the
Israelis were not in a position to refuse Hammarskjold's proposals
while he was there, they appear to be seizing upon various sub-
terfuges to avid Irrm1Pmentincr thp accrepments
66
Soviet air technicians arrived in Egypt on 9 May. Prior to this
report at least 100, and possibly 200, Soviet and Czech techni-
cians were believed to be in Egvot in connection with the arms
deal.
20 May 56
Current Intelligence Bulletin Page 6
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20 May 56
Current Intelligence Bulletin Page 7
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