CURRENT INTELLIGENCE BULLETIN - 1957/03/19

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03160429
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: March 19, 1957

Approved for Release: 2019/12/05 C03160429,
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3.3(h)(2)
3.5(c)
T LLI
LL TI
19 March 1957
opy No. 131
DOCUMENT NO.
NO CHANCE IN CLASS.
I ; DECLASSIFIED
CLASS. CHANCED TO: 15
NEXT REVIEW DATE:
AUTH: HR 7O
�- REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. EGYPT WILL REJECT WESTERN PROPOSALS ON SUEZ
(page 3).
A.q. THE SITUATION IN JO AN
(page 4).
3. ISRAELIS SEND VESSEL THROUGH ST TS OF TIRAN
(page 5)
4. FRENCH DEFENSE MINISTRY BACKS MILITARY CO-
OPERATION WITH ISRAEL (page 6).
5. SITUATION IN SYRIA
(page 7).
RACT TO BUILD OIL REFINERY IN SYRIA
(page 8).
7. PHILIPPINE POLITICAL ACTIVITY
1118, SITUATION IN INDONESIA
(page 10).
(page �
9. CHIANG ICAI-SHEK ADVISES AGAINST EARLY ATTACK
ON CHINA MAINLAND page 11).
19 Mar 57
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TOP SECI?ET
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mik v I 1.211.1.4
1. EGYPT WILL REJECT WESTERN PROPOSALS ON SUEZ
Egypt intends to release shortly a com-
muniqu�n its position regarding a Suez
settlement, according to the American
embassy in Cairo. The draft communiqu�
shown Ambassador Hare by Foreign Minister Fawzi states
that (1) Egypt continues to respect the spirit and letter of the
1888 Convention (2) toll rates will remain as established by
the last agreement between Egypt and the nationalized Suez
Canal company (3) compensation and claims resulting from
nationalization would be settled either by direct agreement
or arbitration (4) canal tolls are to be paid in advance to the
Suez Canal authority and (5) a special fund will be created
for improvement of the canal.
Fawzi stated the communiqu�as not an
answer to the recent Western four-power proposals to place
one half of the tolls in escrow pendirg a settlement, since "it
would be improper to recognize any group of countries to speak
for the users as a whole," and they "constituted pressure on
Egypt which could not be accepted."
Comment The communiqu�s drafted puts the Egyp-
tian position on a Suez settlement back to
that adopted last July when Nasr nationalized the canal com-
pany. It ignores proposals made for a settlement since that
time. It also ignores the "six principles" agreed on last Octo-
ber. The communiqu�gain makes clear that Egypt intends
to remain the sole operator and administrator of the canal and
believes its legal and diplomatic position is strong.
19 Mar 57
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2. THE SITUATION IN JORDAN
Comment on:
Jordan's three-day demonstrations by
armed mobs following formal termina-
tion of the Anglo-Jordanian treaty on 13
March illustrate the force which could
be directed against King Hussain if he should attempt to
implement his reported demands that Prime Minister Nabulsi
dismiss the four principal left-wing members of the cabinet.
National Socialist, Baath, and Communist groups participat-
ing in the demonstrations were well armed, and Jordan's po-
lice, one of Hussain's main sources of support, were ineffec-
tive in controlling the demonstrators. The anti-Western and
anti-American temper of large elements of the crowds was
particularly evident.
Events showed clearly that with the pass-
ing of British power in Jordan, the United States has become
the chief target of Egyptian- and Soviet-inspired extremists.
The left-wing parties which dominate the cabinet, together
with other nationalist groups, are apparently prepared to
prevent Jordanian acceptance of the American proposals on
the Middle East and to frustrate the Richards mission--ten-
tatively scheduled to arrive in Jordan about 22 April. Nabulsi
and Minister of State for Foreign Affairs Rimawi have publicly
rejected the proposals by name, and the Jordanian Commu-
nist Party (JCP) reportedly plans to organize a general strike
and demonstrations upon arrival of the Richards mission.
Coincidentally with this display of the anti-
Western temper of the "street" in support of the Nabulsi gov-
ernment, the illegal JCP has openly flaunted its contempt for
Hussain's personal efforts during February to curb it. The
JCP for the first time paraded under its own banners during
the recent demonstrations, and despite Hussain's personal
order to confiscate all Communist publications and to ban their
import, two Amman bookstores on 8 March had an assortment
of Soviet magazines on public display.
Britain, which is now planning to move its
1,300 remaining troops out of Jordan in the next few months,
appears anxious to discuss Jordan's future at the Bermuda con-
ference.
19 Mar 57 Current Intelligence Bulletin
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3. ISRAELIS SEND VESSEL THROUGH STRAITS OF TIRAN
Comment on:
Israel's action in sending a small
Israeli-flag merchant vessel, the
Malkat Sheva, from Eilat through the
Straits of Tiran on 18 March will not
be accepted by Egypt as a precedent for free and innocent
passage of the Gulf of Aqaba. Cairo will probably use the
vessel's passage as an additional argument for the removal
of the UNEF unit from Sharm al-Shaikh, although Israel's
supporters in the UN could argue that the presence of
Israeli-protected shipping in the straits points up the need
that the UNEF remain in order to keep the Egyptian and
Israeli forces separated.
In sending the Malkat Sheva through
without ostentatious air or naval escort, the Israelis ap-
pear to have followed advice which both the British and
French Foreign Ministries stated they had given. At least
two other ships, not under the Israeli flag but under Israeli
charter, are expected to pass the straits soon.
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Nue
4. FRENCH DEFENSE MINISTRY BACKS MILITARY
CO-OPERATION WITH ISRAEL
Comment on:
French defense minister
Bourges-Maunoury and his entourage are
encouraging Israeli extremists against
Prime Minister Ben-Gurion in order to
push Israel into military action at the
first opportunity. They are said to view
the present situation as an opportunity to settle the French
North African problem.
among me oacicers ot plans tor French-
Israeli military action is Jacques Soustelle, ex-Gaullist and
former governor of Algeria. Soustelle is now reported head-
ing a bloc of 100 deputies who are pressing for an immediate
military alliance with Israel.
19 Mar 57 Current Intelligence Bulletin
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5. SITUATION IN SYRIA
Comment on:
Shifts of loyalty in the Syrian armored
brigades have resulted in postponement
of a showdown between the leaders of
leftist and rightist-controlled formations.
Such a showdown has been predicted for
the near future.
Baathist (leftist) officers have seized con-
rol of a tank battalion and other units.
the chief of staff and the cabinet have
been warned by the Baath not to transfer leftist army officers
from politically strategic positions in the army.
The cabinet has held several emergency
sessions in the past few days on this question but has reached
no decision. Prime Minister Asali has taken a neutral posi-
tion, while Minister of Defense Azm and two other ministers
have refused to pprove the transfers. The chief of staff has
told the president that he will resign unless the orders are
carried out.
19 Mar 57
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6. CZECH CONTRACT TO BUILD OIL REFINERY
IN SYRIA
Comment on:
Czechoslovakia's success in winning a
contract on 17 March to construct an
oil refinery at Horns in Syria resulted
largely from pressure by leftist ele-
ments to accept the favorable terms
offered by Prague. Announcement of
the contract appears timed to show
Syrian hostility to the Richards mis-
sion.
he Czech bid of about $15,000,000 with
repayment over a 10-year period at 3.5 percent interest
was not substantially lower than the closest Western bid.
yrian president Quwatli said, however, that the Czech re-
finery offer had five advantages�low price, low interest
rate, payment in Syrian goods, "guarantees" of quality
equal to that attained by Western processes, and postpone-
ment of payments on arms indebtedness.
The refinery, presumably a thermal
unit with a capacity of about 27,000 barrels a day, or
1,000,000 tons annually, will require the presence of bloc
technicians in Syria for three or four years. The output
of this plant will be considerably in excess of Syria's pe-
troleum needs, a little over 600,000 tons in 1956, and
Damascus may have considerable difficulty in finding cus-
tomers for the plant's surplus.
19 Mar 57
Current Intelligence Bulletin Page 8
CONEIDENTIA t
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Aft
7. PHILIPPINE POLITICAL ACTIVITY
Comment on:
The death of Philippine president Mag-
saysay on 17 March has opened the way
for rapid development of political in-
stability in connection with the race for
the presidency in the November election
Opposition Liberal Party leaders, who
had hoped eventually to endorse Magsaysay's re-election,
are now reportedly at a loss as to where to turn. A party
member told the embassy officer the Liberals might nomi-
nate their own candidate, probably the ambassador to the
United States, Carlos Romulo. Former Liberal senator
Paredes, now affiliated with the administration, informed
an American observer that he had been approached by
Liberal leaders with an offer of the nomination on the eve-
ning following Magsaysay's plane crash.
On 18 March, Senator Recto, a severe
critic of the United States and Magsaysay's major opponent
within the Nacionalista Party, reaffirmed to an American
embassy officer his intention to seek the presidency.
armed forces officials are worried about the ability of cur-
rent political organizations to remain intact and fear that the
election scramble will benefit neutral and leftist elements
They are determined to maintain order and to assure a smooth
take-over by the new president, Carlos Garcia,
19 Mar 57
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8� SITUATION IN INDONESIA
Comment on:
Cabinet formateur Suwirjo has an-
nounced that the parties to be included
in the new Indonesian government have
been determined. He indicated, how-
ever, that the question of who was to
fill the various positions was still un-
der discussion.
The government that Suwirjo will pre-
sent to parliament will undoubtedly be much the same as
that of Ali Sastroamidjojo which it is replacing. Its nu-
cleus of the National Party and the Nandlatul Ulama will
be supported by five or more small parties. Both the
Communists and the anti-Communist Masjumi reportedly
will be excluded. A likely choice for the post of prime
minister is Subandrio, a neutralist and a former ambassa-
dor to the Soviet Union. Now secretary general of the For-
eign Ministry, he apparently has grown in Sukarno's favor
in the past few months.
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CONFIDENTIAL
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9. CHIANG KAI-SHEK ADVISES AGAINST EARLY ATTACK
ON CHINA MAINLAND
Chiang de-
cried the lack of political preparations for a return to the
mainland. He indicated that political reform was a prereq-
quisite and that he could not sacrifice his men while "corrupt
politics, bad manners, and poor methods" exist within the
Nationalist government.
Comment These remarks contrast with recent pub-
lic statements by Chiang and other Na-
tionalist leaders which have hinted at an early return to the
mainland while Nationalist military capabilities are at their
peak. Most observers agree that these were probably in-
tended primarily for morale purposes. A step-up in harass-
ment and raiding activity is, however, likely.
19 Mar 57
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