CURRENT INTELLIGENCE BULLETIN - 1956/12/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03161778
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: December 22, 1956

Approved for Release:
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for Release: 2019/10/23 CO3161778
CURRENT
INTELLIGENCE
BULLETIN
t)OCUMENT NO.
NO CHANGE IN CLAaJ. 7C-
Li DECLAEFIED
CLASS. CHANGED TO: 13 j C
NEXT REViEW ()ATE: elei 7
ALITH:
DATEr. rgr REVIEWER:
3.3(h)(2) 3.5(c)
22 December 1956
Copy No.
112
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
CrW7doeffirA
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2019110123
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CONTENTS
'1. ARABS BEGINNING TO EMPHASIZE GAZA PROBLEM
(page 3).
2. LABOR OPPOSITION TO BOLIVIAN STABILIZATION
PROGRAM MAY TOUCH OFF WIDESPREAD VIOLENCE
(page 4).
3. CHANGES IN SOVIET ECONOMIC PLAN
(page 5).
4. ARMY COUP REPORTED IN INDONESIA
(page 7).
5. GREECE TO PRESS FOR IMMEDIATE UN DEBATE ON
CYPRUS (page 8).
6. PAKISTAN TO REQUEST UN FORCE FOR KASHMIR
(page 9).
7. PLOT TO PROVOKE DISORDER IN TUNISIA REPORTED
(page 10).
8. BRITISH MAY DEVELOP NEW AIR BASE ON MALDIVE
ISLANDS (page 11).
9. INTELLECTUALS RESTIVE IN NORTH VIETNAM
(page 12).
22 Dec 56
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CONFIDENTIAL
1. ARABS BEGINNING TO EMPHASIZE GAZA PROBLEM
Comment on:
With the Anglo-French evacuation near-
ing completion, Arab leaders and their
propaganda machines are beginning to
concentrate on Israel's occupation of
portions of Sinai, and particularly on
its announced determination to bar the
return of Egyptian control to the Gaza
strip.
Jordan's prime minister has told the
press that his government is preparing notes to other Arab
states insisting that the Suez Canal should not be cleared
and that oil pipelines remain shut down until Israel withdraws
from Gaza and from the islands at the mouth of the Gulf of
Aqaba. On 21 December Jordan's UN delegate called for a
report on the progress of the Israeli withdrawal. A similar
position was implied in the previously reported Syrian sug-
gestion that the United States fix a date for the Israeli evacu-
ation of Gaza in return for a resumption of the flow of oil.
Arab emotionalism on this subject is
likely to be aggravated by the Israeli attitude. A UN offi-
cial stated on 20 December that the question of the Israeli
withdrawal now looms as a major problem, since Israel is
continuing to "drag its feet" and is even consolidating its po-
sitions in the Gaza strip and the gulf islands.
22 Dec 56
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2. LABOR OPPOSITION TO BOLIVIAN STABILIZATION
PROGRAM MAY TOUCH OFF WIDESPREAD VIOLENCE
Comment on:
Increasing labor opposition to the Bolivian
monetary stabilization program, promul-
gated 15 December, may lead to widespread
violence and the possible overthrow of the
Bolivian government. Mario Torres, influential labor leader
of the Bolivian Worker. Central (COB), made an urgent visit to
a mining district on 20 December in an effort to quell labor vi-
olence in protest against the program,
Torres telegraphed labor militia units in the mining dis-
trictS on 19 December that the program was a "criminal act"
forced upon them by the US head of the stabilization council.
The COB leaders reportedly were scheduled to meet in La Paz
on 21 December, apparently to discuss the future attitude of
the organization toward the program.
The stabilization plan, which initially had
the substantial backing of key labor leaders, is a fundamental
economic reform supported by credits of the International Mon-
etary. Fund and US government aimed at checking inflation. It
involves price and wage adjustments which will bear most heav-
ily on the laboring classes during the early phases of implemen-
tation. President Siles Zuazo has considered resigning, and the
cabinet reportedly has tendered its resignation, as a result of
wavering labor support, other leftist opposition, and sporadic
public rioting.
22 Dec 56
Current Intelligence Bulletin Page 4
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3. CHANGES IN SOVIET ECONOMIC PLAN
Comment
"All ministries" in the USSR "are
changing their plans" in order to per-
mit increased emphasis on housing
construction,
plans for housing and consumer goods
are being revised upward n A 12 December Izvestia article
said the 1960 housing goal would be increased significantly,
but Pravda on 16 December still cited the original 1960 goal.
This discrepancy suggests that the revisions were still not
definite as late as 16 December,
the plans as of mid-December were to
increase housing construction and output of consumer goods
with funds made available by some reduction in production of
conventional weapons and cutbacks in construction of cultural
and communal facilities � In addition, there was to be in-
creased utilization of heavy industrial facilities for produc-
tion of consumer goods.
According to other recent information,
a plenum of the Central Committee, reportedly set for
22 Dec 56
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I yr orA,...L.,
Nov
17 December but apparently postponed until 20 December,
was to discuss changes in economic plans. The apparent
postponement may have stemmed in part from disagreements
within the hierarchy over the future course of economic pol-
icy, and may also be connected with recent rumors that
changes in the leadership would be approved by the plenum.
The changes in economic plans im-
plied by these reports would have the effect of increasing
labor productivity by increasing incentives, and do not neces-
sitate abandonment of the major economic goal of the Sixth
Five,-Year Plan--a high rate of overall economic growth with
continued emphasis on heavy industry.
22 Dec 56
Current Intelligence Bulletin Page 6
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4. ARMY COUP REPORTED IN INDONESIA
Comment on:
The reported army coup in central
Sumatra probably will stimulate Pres-
ident Sukarno to accelerate his efforts
to assert his personal authority over
the government. It will also encourage other disgruntled
army elements in Indonesia to take direct action.
the coup was led by
Lt. col. Aciimaa Hussein, a iocai regimental commander.
He reportedly has deposed the provincial governor because
of "dissatisfaction among all strata of the population" and
established a "citizens' council" to rule in his stead.
Although he commands no more than 5,000
troops, Hussein would be in a fairly strong position if he is
acting with or receives the backing of his chief, Col. Simbolon,
the popular territorial commander of North Sumatra, who has
long been a leading critic of the inefficiency of the central gov-
ernment.
There is considerable sentiment through-
out Sumatra for a federal government rather than the central-
ized system desired by President Sukarno and other national-
ist politicians. Similar sentiment exists in other non-Javanese
areas.
President Sukarno has been reported as
planning to declare a state of emergency whereby he could ac-
tively assume command of the armed forces. He is said to
have sought a justification from a prominent constitutional
authority.
22 Dec 56
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3.C.1.2/11:
5� GREECE TO PRESS FOR IMMEDIATE UN DEBATE
ryhT rvpp I TR
Comment on:
The Greek decision to press for imme-
diate UN debate on the Cyprus issue when
the political committee reconvenes on
3 January indicates that Athens has aban-
doned hope of negotiations with Britain and intends to seek a
showdown as quickly as possible. Discussion of Cyprus is
now scheduled for late in the General Assembly session. The
decision is also designed to counteract the effect on Greek
public opinion of the visit of Colonial Secretary Lennox Boyd.
Prime Minister Karamanlis apparently
hopes the General Assembly will appoint a commission of na-
tions not directly involved to make recommendations for a
Cyprus solution. Greece, according to Karamanlis, could
accept any UN-approved solution.
Ambassador Allen believes Karamanlis
would "very probably" resign if the United States were to sup-
port publicly the British proposals. Karamanlis told Foreign
Minister Averoff he would "feel it his duty" to resign in such
a case. While this threat is intended to influence US action,
Karamanlis might find it necessary under certain conditions
to resign to avoid being forced out of office and to protect his
political future.
22 Dec 56
Current Intelligence Bulletin Page 8
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�ettAtititlYtlAtt
6. PAKISTAN TO REQUEST UN FORCE FOR KASHMIR
The Pakistani government on 20 Decem-
ber gave the American embassy an aide-
memoire stating its intention to ask the
Security Council to send a UN force into
Kashmir. Karachi also wants the Security Council to define
the obligations of both Pakistan and India under the UN-spon-
sored plebiscite agreement of 1948 and to appoint a plebis-
cite administrator. Karachi has requested a Security Coun-
cil hearing by 15 January.
Comment The Pakistanis want to take advantage of
the precedent created by the UN Emergency
Force in Egypt. Foreign Minister Noon's recent hints that a
similar move would solve the Kashmir problem have been de-
rided by Prime Minister Nehru. Nehru has maintained sev-
eral times during the past year that "changed conditions"--
including US military aid to Pakistan--have eliminated India's
obligations for a plebiscite.
Since Bulganin and Khrushchev, during
their visit to India in December of 1955, supported India's
claims to Kashmir, the USSR may be expected to oppose the
Pakistani proposal in the Security Council. The proposal
will present a major problem to Britain, a fellow member
of the Commonwealth. London has in the past attempted to
avoid taking sides in the Kashmir dispute, but there have been
recent indications that Britain will give at least limited sup-
port to Pakistan in the UN.
22 Dec 56
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7. PLOT TO PROVOKE DISORDER IN TUNISIA REPORTED
The Tunisian deputy prime minister has
told the American ambassador of a plot
by French "Special Services" in Algeria
to assassinate an important Tunisian of-
ficial in order to provoke disturbances in Tunisia. The plot,
which was discovered through the arrest of a Special Service
agent, was designed as a pretext to bring intervention by the
French army to quell the disorders and resume control of
Tunisia.
The Tunisian government believes that
top French officials were not involved in the plot and that
it probably was planned by junior elements similar to those
responsible for the seizure of the five Algerian nationalist
leaders in October. The Tunisian government and the senior
French representative there are negotiating to withdraw with-
out publicity the French officers who were involved. Tunis
wishes to avoid public knowledge of the incident, so that the
Tunisian public will not force it to take a stronger line a-
gainst the French army.
Comment Such activity by the Algerian intelligence
service is counter to Paris' policy of im-
proving relations with both Tunisia and Morocco. It would in-
flame public opinion in these states to violence against French
nationals and interests and encourage greatly increased aid
for the Algerian rebels from Morocco and Tunisia.
22 Dec 56
Current Intelligence Bulletin Page 10
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8. BRITISH MAY DEVELOP NEW AIR BASE ON
British officials have drawn up a 100-
year lease with the sultan of the Maldive
Islands for an air base there and plan to
start construction almost immediately.
An abandoned World War. II air-
strip will be greatly enlarged and an aviation gas storage
depot will be built. The agreement has not yet been approved
by London.
Comment For some
months
London has been con-
sidering developing the
existing airstrip on Ad-
du Atoll in the Maldives
to replace the base at Ne-
gombo, Ceylon. A stag-
ing post in the Indian
Ocean is considered es-
sential to British air
communications with
Singapore and the Far
East.
22 Dec 56
UNCLASSIFIED.
22. DECEMBER 1956
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9., INTELLECTUALS RESTIVE IN NORTH VIETNAM
Comment on:
The Hanoi decree of 15 December sus-
pending publication of the new periodical
Nhan Van reveals the determination of
the Via-Minh leadership to keep popular
criticism of the regime within bounds.
Apparently the disorders last month, as
well as events in Eastern Europe, have given the authorities
second thoughts on the extent to which they should implement
their earlier promises to allow greater freedom of expres-
sion. In recent broadcasts, Hanoi has warned the people
against an "excess of democracy."
Nhan Van which published only five is-
sues, addressed itself mainly to intellectuals with such ap-
peals as "Arts and letters demand freedom." The Communist
bureaucracy was pictured as stifling creative accomplishment
by individuals. In announcing suspension of the periodical,
Hanoi declared that some 33 of its articles had the effect of
"causing the readers to become discouraged, pessimistic,
and dubious of our regime and leadership... and had a disas-
trous effect on the consolidation of North Vietnam:"
Although the disorders last month were
apparently confined to the rural areas of North Vietnam, the
suspension of Nhan Van lends credence to reports of intellec-
tual ferment in the cities. Some dissatisfaction among in-
tellectuals was in fact acknowledged in several Hanoi broad-
casts. According to still unconfirmed reports, students at
Hanoi University have staged protest meetings to criticize
certain regime policies.
22 Dec 56
Current Intelligence Bulletin Page 12
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