CURRENT INTELLIGENCE BULLETIN - 1956/07/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185124
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: July 21, 1956

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CURRENT
INTELLIGENCE
BULLETIN
C03185124,
r7/
21 July 1956
Copy Noo 105
DOCUMENT NO. _
NO CHANGE IN CLAS
; DECLASSIFIED
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NEXT REVIEW DATE
D4'�REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. SHAH COMMENTS ON VISIT TO USSR
(page 3).
2. FRENCH GOVERNMENT THREATENED BY STRONG
ASSEMBLY OPPOSITION TO NEW TAXES
(page 4).
3. SHISHAKLI REPORTEDLY DEPARTS FROM MIDDLE EAST
(page 5).
4. RIOTS REPORTED IMMINENT IN CZECHOSLOVAKIA
(page 6).
5, TITO-NEHRU-NASR COMMUNIQUE
(page 7).
6 JAPAN LIBERAL-DEMOCRATS_Sill' My PROBLEM OF
SUCCESSOR FOR HATOYAMA (page 8).
7. BRAZILIAN OFFICIAL WARNS OF POLITICAL AND
ECONOMIC DETERIORATION (page 9).
21 July 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 10)
Current Intelligence Bulletin Page 2
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1. SHAH COMMENTS ON VISIT TO USSR
Khrushchev "more than once" told the
Shah of Iran during the latter's recent
trip to Moscow that the Soviet Union did
not want war but that it was prepared, if
war were a certainty, to take the offensive, according to a
conversation between the Shah and Ambassador Chapin in
Tehran.
Khrushchev said that England could be
put out of war with seven of the latest nuclear bombs and
Turkey with eleven. He added that the USSR would not have
to use conventional forces in Turkey. The Shah said he sup-
posed these remarks were indirectly addressed to Iran, though
he was convinced that the USSR did not want war. The Soviet
leaders said their policy toward Turkey and Iran in the past
had been faulty and blamed it on "that damn crowd of Georgians!'
The Shah was also told that as an indica-
tion of the USSR's "new policy of friendship" toward Iran, the
Soviet ambassador would be replaced. Foreign Minister Shepi-
loy said he was confident that no other Arab state "under any
circumstances" would ever join the Baghdad pact.
Soviet leaders told the Shah they were making
no specific offers of assistance at this time "lest they embarrass"
him, but they assured him they were prepared to "give assistance
of any kind and in any amount should the Iranian government so
desire." The Shah said that the only economic aid that he had ac-
cepted was for the common development of resources along the
Iranian frontier, including power and irrigation works.
21 July 56 Current Intelligence Bulletin
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2., FRENCH GOVERNMENT THREATENED BY STRONG
ASSEMBLY OPPOSITION TO NEW TAXES
Premier Mollet will face his strongest
opposition to date in the assembly de-
bate on 24 July on his tax proposals to
finance the Algerian campaign, in the
opinion of the American embassy in
Paris, and the outcome seems highly
iincertain even if he makes the issue a vote of confidence.
In addition to expected Poujadist and Communist opposi-
tion, there is general dissatisfaction in the assembly with
the new tax proposals on top of those for increased old-
age benefits and much uncertainty as to the government's
over-all economic and financial policy.
The assembly finance committee is ex-
pected to recommend rejection of the proposed direct tax
increases on income and corporate profits, which are also
strongly opposed by the employers' association and criti-
cized by the labor unions.
Comment The mounting inflationary spiral in
France has increased the importance
of financial issues as a threat to the government.
The cabinet has authorized Mollet to
declare the tax proposals an issue of confidence and he is
likely to make a patriotic appeal for support. Unwilling-
ness to upset Mollet at this juncture of the Algerian cam-
paign continues to be a strong factor in the National Assem-
bly. The opposition may therefore try to employ delaying
tactics on tax legislation until after the summer recess,
when the situation in AlReria may have become clarified.
21 July 56
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Nr.
3. SHISHAKLI REPORTEDLY DEPARTS FROM
MIDDLE EAST
21 July 56
Current Intelligence Bulletin Page 5
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Nolo
4 RIOTS REPORTED IMMINENT IN CZECHOSLOVAKIA
a tense situation in Czechoslovakia is
"capable of developing into serious,
Poznan-type riots:' Public dissatisfac-
tion is described as increasing, with
Prague University becoming a center of antigovernment
ferment.
The government allegedly is intensify-
ing public security measures, but serious conflicts report-
edly exist within party headquarters, and in the present state
of affairs "responsible authorities are unable to make impor-
tant decisions for fear of possible repercussions:' Presi-
dent Zapotocky's status is said to be increasingly insecure
because of his connections with the Stalin era and because he
is not now in Khrushchev's favor.
Comment This report appears to exaggerate current
dangers to the Czech government. There
is little doubt, however, that the party high command is seri-
ously concerned with the possibility of labor demonstrations
and further student unrest.
Since last month, when the regime admitted
that considerable ferment existed within the party and among
university students and announced that a counteroffensive had
been mounted against all threats to party unity, the Czecho-
slovak scene has been characterized by outward calm. The re-
gime presumably has taken precautions against open displays
of dissidence and will probably attempt to present an appear-
ance of complete unity at the top party level at least until the
possibility of serious unrest diminishes.
21 July 56
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v 5. TITO-NEHRU-NASR COMMUNIQUE
The vagueness of the Tito-Nehru-Nasr
communique of 20 July reflected the
desire of all three leaders to avoid
antagonizing either the West or the Sino-
Soviet bloc. It stressed the need to work
through the United Nations ,and personal diplomacy to relax
world tension.
Nasr's acceptance of Nehru's proposals
for a cease-fire in Algeria to be followed by direct nego-
tiations is a departure from the Arabs' previous stand that
the issue should be brought to the UN.
The direct reference to the "great impor-
tance of removing embargoes and obstacles to the normal
flow and extension of international trade" is an obvious slap
at Western strategic trade controls. Nasr presumably does
not intend his statement to refer to the Arab boycott of Israel,
however.
21 July 56
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6, JAPAN LIBERAL-DEMOCRATS STUDY PROBLEM OF
SUCCESSOR FOR HATOYAMA
Agriculture and Forestry Minister Kono
has informed Ambassador Allison that
Liberal-Democratic Party Waders intend
to select a successor to Prime Minister
Hatoyama during August. He said party secretary general
Kishi is a likely choice, but that there is considerable oppo-
sition to his selection which would require time to overcome.
He added that in any event there would be
a cabinet reshuffle in the next few months, with Kishi enter-
ing the cabinet. Kono himself would resign to take over Kishi's
present post.
Comment Government party leaders have become in-
creasingly aware that Hatoyama's failing
health and enfeebled leadership have created a pressing need
to designate his successor, and the retirement of the prime
minister prior to the next regular Diet session in December
is more and more likely. Kishi, who is a prominent contender
for the prime ministership, has often asserted that he favors
co-operation with the United States but on a basis of greater
"mutuality." Many conservatives, however, consider him too
inexperienced for the post, and the contending party factions
may agree as an interim measure on some older and less con=
troversial conservative.
21 July 56
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7. BRAZILIAN OFFICIAL WARNS OF POLITICAL AND
ECONOMIC DETERIORATION
Secretary General Souza Gomes ,of '
the Brazilian Foreign Ministry told
American charg�rimble on 19 July
that if Brazil's economic and political
situation continues to deteriorate, there
that either the military with their "narrow
nationalist outlook" will become the dominating force or
that Communist influence will assume threatening propor-
tions. He referred to the Communists' intensive efforts
to control Brazil's atomic energy policy just as they had
joined with ultranationalists to establish the national petro-
leum monopoly.
President Kubitschek has recently adopted
firmer anti-Communist measures because of growing concern
over Communist exploitation of economic difficulties and na-
tionalist attitudes, especially among the opposition. Extreme
nationalist tendencies also extend into Kubitschek's Social
Democratic Party but have been openly denounced by Kubit-
schek and the dominant faction of the party.
Trimble comments that while the political
situation is confused and the economy increasingly threatened
by growing inflation, Souza Gomes' views are colored by the
fact that the Foreign Ministry has been losing influence in re-
cent months.
21 July 56
Current Intelligence Bulletin Page 9
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 20 July)
An Israeli military spokesman charged
that Syrian gunners fired on two Israeli fishing boats and a
police launch on Lake Tiberias. No casualties were reported.
(Press) j//5e
21 July 56
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