CURRENT INTELLIGENCE BULLETIN - 1956/12/30

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03160577
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: December 30, 1956

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CURRENT
INTELLIGENCE
BULLETIN
30 December 1956
Copy No.
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DATE.Ftrw�r7 REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
OF VIOLENCE LIICELY IN ALGERIA
(page 3).
2. INDONESIAN PRESIDENT THREATENS TO ffCCEPT COM-
MUNISTS IN CABINET (page 4).
3. ISRAELINEWSPAPET CHARGES US IS UNFRIENDLY TO
ISRAEL (page 5).
4. SYRIAN CABINET CRISIS
(page 6).
5. NAS.R SAID TO FEAR ARMS ACQUIRED BY EGYPTIAN
COMMUNISTS (page 7).
6. COUP REPQRTEDLY PLANNED IN PANAMA FOR 1 JANU-
ARY (page 8).
7. U NU VICTORY AVERTS OPEN POLITICAL SHOWDOWN
IN BURMA I (page 9).
8. REPORTED PLOT TO ASSASSINATE PRO-EGYPTIAN
POLITICIANS IN JORDAN (page 10).
9. LIBYAN PREMIER TO PROMOTE NORTH AFRICAN BLOC
DURING TUNISIAN VISIT (page 11).
M. MOSCOW NAMES AMBASSADOR TO JAPAN
(page 12).
30 Dec 56 Current Intelligence Bulletin
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ANON
1. NEW UPSURGE OF VIOLENCE LIKELY IN ALGERIA
Violence in Algeria, where urban ter-
rorism rose sharply last week, may
reach a new peak on or about 1 January
as a result of mw incidents perpetrated
by nationalist extremists and European counterterrorists.
The anticipated upsurge is likely to be felt most severely in
the cities and espedially in the capital, Algiers, where a
new record of over 30 incidents was recorded last week.
Indications that the rebels intend to step
up their terrorist acts, including indiscriminate street bomb-
ings and selected political assassinations, have been noted
Two members of the Algiers diplomatic
corps were reportedly warned by rebel contacts recently to
remain at home on 31 December and 1 January. A rebel pam-
phlet distributed in Paris proclaims that a "new phase" of the
rebellion is about to begin. A strike by Moslem trade unions
and business associations expected in several cities over the
New Year holiday contributes a further element of uncertainty.
Prospects for widespread reprisals by
European counterterrorists are also increasing. Inflamed by
a long series of provocations culminating in the assassination
on 28 December of a prominent right-wing local French official,
European extremists leaders used his funeral the following day
to stage a massive and disorderly demonstration of anti-Moslem
and, to some extent anti-American, settler solidarity. These
developments appear to support persistent but unconfirmed re-
ports that European extremists have been organizing militarily
and are prepared to use force to prevent the government from
instituting basic political reforms which would undermine the
dominant position long enjoyed by the resident Europeans.
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2. INDONESIAN PRESIDENT THREATENS TO ACCEPT
COMMUNISTS IN CABINET
Prime Minister Ali and his National
Party (PNI) intend to remain in the
cabinet "at all costs," and in this they
have the full support of President Sukarno,
Acting on Sukarno's instruc-
tions, Ali has advised the Ma,sjumi party that if it withdraws
from the cabinet, a coalition government including the Com-
munist Party will be formed. The Nandlatul Ulama (NU), the
key to the cabinet situation, is divided on the subject of co-
operation with the Communists.
A presidential cabinet headed by former
vice president Hatta, who is strongly anti-Communist, would
be, completely unacceptable to Sukarno
except as a last resort to preserve Indonesian unity.
Comment
The major parties in the coalition gov-
ernment appear reluctant to force a show-
down which would result in a dissolution of the present cabinet.
The opportunistic NU has indicated its intention to remain in
the coalition for the time being, probably as the result of strong
pressures from Sukarno and the PNI. The Masjumi, without NU
support, would be reluctant to isolate itself politically by a with-
drawal, which also would facilitate the establishment of a Com-
munist-influenced government. There are indications, however,
that the PM is strengthening its ties with the Communists in or-
der to better its position for any eventuality.
30 Dec 56
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CONFIDENTIAL
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CONFIDENTIAL
3. ISRAELI NEWSPAPER CHARGES US IS UNFRIENDLY
TO ISRAEL
The Jerusalem Post, a newspaper which
usually reflects the views of the Israeli
Foreign Ministry, said in a front-page
article on 28 December that American
cently become "singularly unfriendly to Israel:'
The article asserted that these officials "derided" Israel's re-
cent note on fedayeen activity as an excuse for Israel to remain
in Gaza, and that the American reaction to Israel's position
portends a "crystallization of a policy against Israel and has
given rise to speculation that the United States is about to em-
bark on another massive effort to win over Nasr and the Arabs!'
Comment This article may be the beginning of a full-
scale Israeli campaign to elicit an Ameri-
can policy statement in advance of the date when Israel will be
faced with the necessity of deciding whether to complete the
evacuation of Sinai and the Gaza strip. Prime Minister Ben-
Gurion recently said such a decision would have to be made by
his government early in January.
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4. SYRIAN CABINET CRISIS
Comment on:
Syrian prime minister Asali appears to
be blocked at least temporarily in his ef-
forts to form a new, more "harmonious"
cabinet. Asa main obstacle is the con-
servative Populist Party, which has re-
fused to provide more than nominal repre-
sentation unless given specific portfolios
in a new cabinet, while President Quwatli
a g � y as vetoed the appointment of at least two leading
leftists. The Egyptian embassy in Damascus is playing an ac-
tive role in the attempt to form a new government and to intro-
duce leftist influence into it, but so far has been unable to over-
come the president's opposition.
A continued impasse of this kind, while by
no means unusual in Syrian politics, might under present con-
ditions lead leftist or rightist army factions to try to imrose a
solution.
some recent troop movements inside Syria may have
'aeen maae for political purposes.
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5. NASR SAID TO FEAR ARMS ACQUIRED BY
EGYPTIAN COMMUNISTS
Egyptian president Nasr has revised his
former opinion that he could handle the
Communist problem in Egypt by routine
police action, according to an Egyptian
y acting as Nases emissary to the Amer-
ican embassy. Nasr allegedly feels the new element in the
situation is the arms distributed to the Egyptian populace dur-
ing the hostilities. The Communists, who received arms at
that time, are now refusing to give them up and are conduct-
ing training in their use with manuals obtained "from some-
where."
Nasr hopes the United States will press
Israel to withdraw promptly and completely, since he feels
he cannot take strong measures to get the arms back while
foreign troops are on Egyptian soil.
Ambassador Hare observes that this ap-
proach should probably be regarded as a "classic example"
of the use of the Communist issue to influence the United States,
although there is evidence that Communists are becoming more
active and are taking an ultranationalistic line to keep emotions
aroused.
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6. COUP REPORTEDLY PLANNED IN PANAMA FOR
1 JANUARY
Comment on:
A coup to oust Panama's President
De la Guardia on 1 January is planned
by First Vice President "Temi" Diaz,
Bolivar Vallarino, commandant of the
National Guard, and former cabinet min-
ister Eric del Valle,
The plotters will give as
the reasons for their coup the presence of
too many Communists in the government and the fradulent elec-
tion of De la Guardia. Several Communists and pro-Commu-
nists have gained influential positions within the administra-
tion since De la Guardia's inauguration last October.
While a successful coup is not considered
likely at this time, an attempt may be made because of the un-
settled political situation. Deteriorating relations between the
president and Diaz have recently come into the open, and De la
Guardia is reportedly studying means of replacing Vallarino
and Diaz. The still-unsolved assassination of President Remon
on 2 January 1955, in which some influential politicians were
probably implicated, continues to complicate the political scene.
The American embassy in Panama City
does not believe Vallarino is dissatisfied with the present gov-
ernment, and the National Guard, Panama's only armed force
and a determining factor in political stability, appears to be
loyal to the administration. There has been evidence, however,
of friction in the guard's top leadership, and serious opposition
may exist within the guard to a proposed reorganization.
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7. U NU VICTORY AVERTS OPEN POLITICAL SHOWDOWN
IN BURMA
Comment on:
The announcement on 29 December by
the Anti-Fascist Peoples' Freedom
League (AFPFL), Burma's ruling party,
that U Nu will soon return to office as
premier indicates that a serious politi-
cal crisis has been at least temporarily averted. The AFPFL
action, which represents a rebuff to such powerful leaders as
Premier Ba Swe and Deputy Premier Kyaw Nyein, was prob-
ably taken to avoid an open showdown between the Socialist
faction of the AFPFL and Nu, who threatened to bring down
the government when parliament meets if he was not returned
to office. Nu still commands a wide popularity throughout the
country and strong support in parliament.
The Socialists, however, will continue to
exert a strong, if not dominant influence on the day-to-day
operation of the government, as they did before Nu resigned
last June. Moreover, at least two Socialists, one of them Ba
Swe, will serve as deputy premiers under Nu, and several others
will undoubtedly be included in the cabinet.
The chief loser in the reshuffle would appear
to be Kyaw Nyein, who led the fight against Nu's return to power.
Kyaw Nyein has been widely regarded as the real "brain" of the
government and has in the past felt that Nu should serve primar-
ily as a front man for the AFPFL. Whether or not he remains
in the government, Kyaw Nyein is likely to take advantage of any
future opportunity to undermine U Nu.
Major changes in Burmese policies are un-
likely to result from the switch in premiers. Nu may incline,
however, toward a stricter neutrality in foreign relations than
Ba Swe, who recently took the lead among the Asian neutralists
in denouncing Soviet intervention in Hungary.
30 Dec 56 Current Intelligence Bulletin
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B., REPORTED PLOT TO ASSASSINATE PRO-EGYPTIAN
POLITICIANS IN JORDAN
"Extreme reactionary elements" in
Jordan have organized a movement to
assassinate several of the "free politi-
cians" in Jordan,
One of
the plotters, a former cabinet minister, reportedly has been
arrested�
Comment
Charges of a foreign-inspired, rightist
plot to assassinate Jordanian nationalist leaders might be
used by the ultranationalists to intimidate and weaken con-
servative influence. This would parallel developments in
Syria, where the ultranationalists have exploited charges
of plotting for the overthrow of the government to imprison
and intimidate rightist politicians. Action to discredit con-
servative politicians in Jordan suspected of pro-Western
sympathies would be in line with the recent purge of such
elements in the ministries and the civil administration.
30 Dec 56 Current Intelligence Bulletin
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9. LIBYAN PREMIER TO PROMOTE NORTH AFRICAN BLOC
DURING TUNISIAN VISIT
Libyan prime minister Ben Halim
purpose of his visit
to Tunisia next week is "to confer with
Tunisian premier Bourghiba regarding
tne estarmsnment ui a bloc of North African nations aimed
at opposing the Communist danger and promoti7 co-opera-
tion among its members." Ben Halim indicated,
that he
was prompted to pursue this course by the "proved failure
of the policy of co-operation with Egypt:'
pen Halim
aspired to have Morocco and Algeria join the bloc "eventually"
and that he thought it "not unlikely" the bloc would be extended
to other nations, including possibly the Sudan, Saudi Arabia
and Iraq.
Comment Overtures by Ben Halim in behalf of a
North African bloc which could serve as
an effective counterpoise to Egyptian influence in the area
would probably be welcomed, at least in principle, by nation-
alist leaders in Tunisia, Morocco and Algeria. Talk of such
a grouping, and perhaps an eventual federation, has been in-
creasingly prevalent in all three countries in recent months
and was further stimulated by the formation on 22 December
of a politically oriented federation of North African trade
unions.
In a 21 December broadcast to the Tunisian
people, Bourghiba expressed the hope that Libya would one day
be part of a "unified" northwest Africa.
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10. MOSCOW NAMES AMBASSADOR TO JAPAN
Comment on:
Ivan F. Tevosyan, newly appointed
Soviet ambassador to Tokyo, has been
a deputy premier since December 1953
and is regarded as the outstanding Soviet
metallurgical expert.
Ambassador Bohlen believes Tevosyan's
assignment abroad probably results from
e res u e o deputy premiers and the reorganization of
the Soviet economic planning by the recent central committee
plenum. Bohlen doubts that the appointment is motivated by
considerations of relations with Japan.
Failure of the metallurgical industry to
fulfill its plans may have been a factor in Tevosyan's appoint-
ment, as well as the possibility that he opposed the cutback
in capital investment announced by the plenum.
The removal of Tevosyan as a deputy
premier, following that of Kosygin, Kucherenko, Matskevich,
Malyshev, and Khrunichev on 25 December, leaves only
two deputy prime ministers, Malenkov and Zavenyagin. While
the other five were appointed to the new high-level State Com-
mission for Short-Range Planning where they will presumably
concentrate on their special fields, Tevosyan's appointment as
ambassador represents .;a cOnsiderable demotion for him4
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