CURRENT INTELLIGENCE BULLETIN - 1956/01/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03157472
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: January 20, 1956

Approved for Release: 2019/10/21 C03157472
CURRENT
INTELLIGENCE
BULLETIN
20 January 1956
Copy No. 103
DOCUMENT NO 001
NO CHANGE IN CLASS ja
DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 2-0
AUTH: HR 70-2
DATE: H' KO
REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
Approved for Release: 2019/10/21
3.5(c) e//0
3.3(h(2)
,
�0/
//e/
cor57472 ic/ice%
Approved for Release: 2019/10/21 C03157472
onek
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
a %/a 160/.../14.0A 16aJ
CONTENTS
1. COMMUNIST CHINA STEPS UP PSYCHOLOGICAL WAR-
FARE AGAINST OFFSHORE ISLANDS (page 3
2. USSR OFFERS ECONOMIC AID TO LIBYA
(page 4).
3.� ARGENTINE-CZECH ARMS DISCUSSIONS REPORTED
(page 5).
4. PARTY WITHDRAWALS MAY FORCE INDONESIAN CABINET
CRISIS (page 6).
5. JAPANESE-SOVIET NEGOTIATIONS RESUME
20 Jan 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 8)
(page 7).
Current Intelligence Bulletin Page 2
TOP SECRET
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
1.0 V A NA 11.44 L 1 !MLA
Nve
1. COMMUNIST CHINA STEPS UP PSYCHOLOGICAL
WARFARE AGAINST OFFSHORE ISLANDS
Radio Peiping's broadcast of 18 Jan-
uary urging Nationalist troops on
Quemoy and the Matsus to defect and
the heavy bombardment of Quemoy on
19 January appear to be part of an in-
tensified psychological warfare attack
on the offshore island garrisons.
The broadcast, made on the anniver-
sary of the fall of Ichiang Island, north of the Tachens, a
year ago, reminded the Nationalists that despite strong
fortifications, Ichiang fell "only a few hours" after being
attacked� The Nationalists' positions on Quemoy and the
Matsus were termed "even more dangerous and difficult"
than those on Ichiing. The broadcast scoffed at pronounce-
mentsby Chiang Kai-shek about "absolute defense" of the
offshore islands and warned the garrisons not to expect sup-
port and reinforcement. It added that 500 soldiers on Ichiang
had "accepted liberation" and were now enjoying "magnani-
mous treatment." Troops on Quemoy and the Matsus were
urged to do likewise.
According to press reports, the Chinese
Communists on 19 January fired nearly 3,000 rounds of ar-
tillery against Quemoy, the heaviest bombardment since
September 1954.
20 Jan 56
Current Intelligence Bulletin Page 3
-CONFIDENTIAL�
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
161LIVA %La
-*ale
2. USSR OFFERS ECONOMIC All) TO LIBYA
Soviet ambassador Generalov of-
fered Libya "unlimited" economic
assistance "without strings" when
he presented his credentials to King
Idriss, according to Libyan prime
minister Ben Halim.
Ben Halim told the American embassy
e Sovie o er is "dangerously attractive" to his cab-
inet in view of what he called American inability to give
his aid requests more than "sympathetic consideration."
He also told British ambassador Graham
that unless the United States and Great Britain would help
Libya, he would accept help from the Soviet Union. He
added that the USSR had not requested an oil concession,
nor would it be granted one, and that he would restrict the
activities of the Soviet embassy and prohibit the opening of
a Soviet cultural office.
Comment Generalov
had indicated to the chairman of the
Libyan Petroleum Commission that the USSR desires to
apply for oil concessions in Libya.
Ben Halim is noted for his pro-Egyptian
attitude, and his policy toward Soviet approaches is likely
�to be influenced by Egyptian advice. (Concurred in by ORR)
20 Jan 56
Current Intelligence Bulletin Page 4
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
veer
3. ARGENTINE-CZECH ARMS DISCUSSIONS REPORTED
The Czech and Argentine governments
have renewed conversations regarding
the purchase of Czech arms
Czechoslovakia reportedly is offering Ar-
gentina planes, tanks and artillery at prices considerably
lower than those normally offered by Britain and the United
States. Similar conversations allegedly were initiated by
the Peron regime before the revolution last September.
Czechoslovakia is also offering military
equipment to Brazil and Uruguay,
Comment Argentina, under Peron as well as under
the provisional government, has expressed
a desire to purchase military and naval materiel, preferably
from the United States. Peron last August authorized a mili-
tary mission to visit "industrial plants" in Czechoslovakia.
Argentina, which is short of foreign exchange, may be dis-
posed to consider Czech offers which could be paid for with
its agricultural surplus.
The Czechs have arms available, and this
- offer would be consistent with Soviet bloc policy toward Latin
America. The Satellites and the USSR have accelerated their
efforts to expand their trade and influence in 'Latin America
during the past two years. Last month the USSR reportedly
offered arms to Ecuador on "easy credit terms."
20 Jan 56
Current Intelligence Bulletin Page 5
SECRET
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
..��� NO' � s-,11...e al a �A111.1
Nor'
4. PARTY WITHDRAWALS MAY FORCE INDONESIAN
CABH�TET CRISIS
A cabinet crisis is imminent in
Indonesia as a result of the with-
drawal of the Nandlatul Ulama
(NU) and a smaller Moslem party from the moderate
Masjumi-led coalition government. The cabinet now
has a parliamentary majority of only 11 votes and its
survival will require the unanimous support of the
Masjumi's other small-party allies, some of which
are highly undependable.
The National Party, which leads the
opposition, has previously demanded the cabinet's resig-
nation, and with parliament now in session may call
for a vote of confidence.
The withdrawal of the two parties
from the government over the issue of Indonesian-Dutch
relations is believed to have been brought about by Presi-
dent Sukarno. Isolated as it now is, the Masjumi will
hold a weak position in negotiations for the next cabinet
and may be excluded from the government to be formed
after the new parliament is seated in April. Sukarno ap-
parently would prefer a National Party-NU coalition sup-
ported in parliament by the Communists.
20 Jan 56 Current Intelligence Bulletin
Page 6
CONFIDENTIAL
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
L.s I
Nuir 'NW"
5. JAPANESE-SOVIET NEGOTIATIONS RESUME
At the first session of the resumed
Japanese-Soviet negotiations at
London on 17 January, neither side
gave any indication of willingness
to make early concessions. The meeting was charac-
terized by bitter exchanges and reiterations of previous
positions on the prisoner-of-war issue.
Japanese negotiator Matsumoto, in-
sisting that the prisoners must be returned prior to a
treaty, argued that Japanese detainees merited special
consideration since Japan had meticulously observed the
neutrality pact with the USSR and was considering request-
ing Soviet mediation when the USSR unexpectedly attacked
in August 1945.
Soviet ambassador Malik, angered by
the Japanese statement, reminded Matsumoto that Japan
had surrendered unconditionally. He implied that Matsumoto
was introducing artificial obstacles in the negotiations and
that Japan must make concessions if the talks were to suc-
ceed.
An official of the Japanese embassy in
London has speculated that Malik may break off the talks if
Matsumoto continues to insist on clearing up the POW prob-
lem before discussing other issues. Tokyo is likely, how-
ever, to compromise rather than let the talks fail.
20 Jan 56
Current Intelligence Bulletin Page 7
Approved for Release 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
11-4% 14. 11-�1 A
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 19 January)
No military incidents have been reported.
Gulf of Aqaba forces to prevent the passage of the Dutch
ship Casablanca, which reportedly sailed from Massawa, Eritrea,
on 15 January carrying foodstuffs
to Israel. This appears to be only
an alert in the event that the Casa-
blanca should attempt to run the
Egyptian blockade at the gulf. The
Casablanca left Haifa on 7 January,
passed through the Suez Canal, and
-4.
SUEZ CANAL
\ arrived at Massawa on 13 January.
0 GULF OF AQABA Ships of Dutch registry regularly
carry similar cargoes from Eritrea
to Israel through the Suez canal.
SUDAN
.1)
'�..
ETH
o CONFIDENTIAL
300 �
MI [ES
SAUDI
ARABIA
-YEMEN
19 JANUARY 1956
20 Jan 56
60'20
According to the Cairo radio,
Egypt and Israel have agreed to re-
sume the meetings of the Egyptian-
Israeli Mixed Armistice Commis-
sion discontinued last September.
Current Intelligence Bulletin
Page 8
Approved for Release: 2019/10/21 C03157472
Approved for Release: 2019/10/21 C03157472
%.! I AT-A...� I tl.4
Impr"
political tensions in Israel
are becoming more critical because Prime Minister Ben-Gurion
Is pushing for an early attack on Egypt and that he is becoming
more difficult to restrain. This is, however, not borne out by
other reports. Since the Israeli raid on Tiberias, Ben-Gurion
has exhibited greater caution.
Egyptian naval
personnel were scheduled to arrive on 29 December in Warsaw,
where arrangements would be made for their reception and travel
to a training port.
an initial contingent of Egyptian naval personnel
had departed for training in the Soviet bloc in late December. with
a larger group to follow soon thereafter.
Cairo urged the arms negotiators to hasten the arrival of T-34
tank and MIG experts.
60 additional Soviet bloc techni-
cians had arrived in Egypt in mid-December (80 to 100 arms ex-
perts and technicians had arrived in Egypt by end of November)
and 50 more were scheduled to arrive between 19 and 25 Decem-
ber. fast delivery of 200
sets of MIG tires, apparently as a replacement stock. It also es-
tablished that Egypt had received Bangalore torpedoes from the
Soviet bloc. Bangalore
torpedoes, antip .rsonnel minps ind ha7nnkas were tr, hp g nt nn
the same ship.
20 Jan 56
Current Intelligence Bulletin Page 9
TOP SECRET
Approved for Release: 2019/10/21 C03157472