CURRENT INTELLIGENCE BULLETIN - 1957/10/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03153725
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: October 3, 1957

Approved for Release: 2019/12/10 C03153725
� CURRENT
INTELLIGENCE
BULLETIN
TOP SECRET
3 October 1957
Copy No. 13 s
DOCUMENT NO.
NO CHANCE IN CLASS.
Ti): TS 3 C
1-VENN DATE: _-
REVIEWER:
AUTH: FiR 70-2
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
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CONTENTS
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1. ADDITIONAL SOVIET JET AIRCRAFT TO BE
DELIVERED TO SYRIA (page 3).
2. SAUD REPORTEDLY WARNS SYRIA TO STOP
CAMPAIGN AGAINST JORDAN (page 4).
DETAILS OF NASIR'S PLAN TO SECURE FROZEN
FUNDS IN THE UNITED STATES REPORTED
(page 5).
4. RISING RACIAL CONFLICT THREATENS KEBREAU
REGIME IN HAITI (page 6).
5. DE GAULLE REPORTEDLY BELIEVES TIME IS
RIPE FOR HIS RETURN (page 7).
6. LEADING FRENCH WEST AFRICAN PARTY ADOPTS
ANTI-FRENCH POLICY (page 8).
7. PONOMARENKU AS SOVIET AMBASSADOR
TO POLAND (page 9).
8. JAPANESE LOAN TO INDIA RECOMMENDED
(page 10).
6-12.� 10.
BURMA MAKES NEW APPROACH TO COMMUNIST
CHINA ON BORDER PROBLEM
(page 11).
BELGRADE CONCERNED OVER WEST'S REACTION
TO ITS CURRENT POSITION (page 12).
3 Oct 57
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1. ADDITIONAL SOVIET JET AIRCRAFT TO BE
DELIVERED TO SYRIA
Comment
This would be the first delivery of
jet bomber aircraft to SyriaAnd was
presumably arranged during the visit of the Syrian mission
to Moscow in early August. Other reports suggest that
Syria has ordered as many as 30 to 40 IL-28 aircraft.
The Syrians have, under Soviet su-
pervision, conducted a jet fighter night flying training
course. The delivery of another squadron of MIG-17 air-
craft would increase from 30 to 45 the number of Soviet
jet fighters in Syria. When these aircraft and the 30 YAK
training planes which Damascus recently ordered arrive,
the Syrian air force, like that of Egypt, will be equipped
preponderantly with Soviet bloc aircraft.
3 Oct 57
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2. SAUD REPORTEDLY WARNS SYRIA TO STOP CAMPAIGN
AGAINST JORDAN
Reference:
King Saud's visit to Damascus was
motivated by his great concern over
trends affecting Arab unity in general
and particu rl S ria's relations
with Jordan
Saud emphasized to the Syrians ins
opposition to their "vicious" propa,-
galida campaign agtdrist Jordan and he deplored reports of
assassins being sent to Jordan. Kuhaymi has been dele-
gated by Saud to mediate the propaganda war between the
two countries. Saud is to have
told the Syrians that, if they did not stop activities against
Jordan, he would "cut off" Syria.
Saud left
feeling that the Syrian situation was "terrible," but that
the King also felt a change by the Syrians themselves is
possible "before too long."
the King took
deliberate pains to demonstrate his alignment with the West,
particularly the United States. the King's friendly
farewell to the American charg�fTh�mascus airport in
the presence of a large number of Syrian officials.
3 Oct 57
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3. DETAILS OF NASIR'S PLAN TO SECURE FROZEN
FUNDS IN THE UNITED STATES REPORTED
President Nasir intends to use the
Saudi Arabian government and Ameri-
can companies in Egypt as instruments
for carrying out his plan to secure re-
lease of Egypt's frozen funds in the United States1
Nasir reportedly will ask
the Saudis to collect a debt Egypt owes them by seeking a
transfer of funds from the blocked accounts. Nasir be-
lieves that the United States will make the transfer rather
than antagonize King Saud.
The second part of the plan calls for
Egypt to confiscate profits earned by American firms in
Egypt and to authorize the American government to reim-
burse these companies by transferring to them dollars
from the frozen funds.
Comment The first part of Nasies plan might
possibly gain the acquiescence of
King Saud, who has openly criticized the continued block-
ing of Egyptian funds amounting to more than $409 0009 -
000. Egypt's debt to Saudi Arabia is approximately $15, -
000, 000.
American business activity in Egypt
has been rapidly decreasing since the Suez crisis; the
amount that could be confiscated from profits is unknown.
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4. RISING RACIAL CONFLICT THREATENS KEBREAU
REGIME IN HAITI
Comment on:
A complete breakdown of public or-
der, stemming from mounting politi-
cal tension and a resurgence of bitter
racial conflict, appears imminent in
Haiti.
Persecution of mulattoes, many of
them followers of defeated presidential
candidate Louis Dejoie, has increased sharply since Francois
Duvalier, administration-backed Negro candidate, won the
election on 22 September. The rising incidence of brutality,
including the killing of a US citizen during police interrogation,
has created so much alarm that residents of Port-au-Prince
reportedly "flocked" to the US embassy seeking permission to
go to the United States.
A decree issued by the military govern-
ment on 1 October authorizing Haitian citizens to arrest or
shoot on sight anyone listed by the government as an enemy
of the state has created further panic by paving the way for
indiscriminate mob violence.
Political plotting both in and out of the
army has gained momentum during the past few days, and a
report that key air force officers are threatening to resign is
the most serious indication of disunity in the armed forces
since the military government of Brig. Gen. Antonio Kebreau
assumed power last June. This apparent weakening of mili-
tary unity seriously jeopardizes the government's chances of
retaining political control.
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5. DE GAULLE REPORTEDLY BELIEVES TIME IS
RIPE FOR HIS RETURN
Comment on:
General Charles de Gaulle reportedly
believes that the "moment of crisis"
has arrived in France and expects to
be called to head the government in
the near futures according to a usually reliable source.
His conditions for assuming power, however, probably
remain unacceptable to a majority of the National Assem-
bly. the general, if re-
quested to take o ice y resi n Coty, will insist on
full power for a three- or four-year period while assembly
deputies are placed on "paid vacation" status, Political
parties would be charged with responsibility for drawing
up a new constitution based on De Gaulle's concept of a
strong executive.
De Gaulle's reported intentions are
believed in Paris to explain the activities of Jacques
Soustelle, a leader of the ex-Gaullist Social Republican
party, who took a leading role in overthrowing Premier
Bourge-Maunoury. Senator Roger Duchet, an influ-
ential Independent party leader, reportedly was offered
a post in De Gaulle's government if he would cooperate
In overthrowing Bourges-Maunoury, but in the 30 Sep-
tember confidence vote Duchet supported the premier.
France's worsening economic crisis,
growing labor unrest, and political fragmentation may
lead President Coty again to consider consultations with
the general, as he thre e ed to last June, particularly
if the crisis continues.
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6. LEADING FRENCH WEST AFRICAN PARTY ADOPTS
ANTI-FRENCH POLICY
Comment on:
The African Democratic Rally, the
largest African party in French West
Africa, has repudiated the pro-French
moderate leadership of Houphouet-
Boigny in favor of that of extremist
leader Sekou Toure. At the party's annual conference
in late September, the delegates favored establishment of
a republic of French West Africa attached to France only
through a "loose confederation."
The conference placed the party in sup-
port of the growing popular demand for increased self-gov-
ernment leading to independence. Within the past year,
several of the territories of French West Africa have de-
manded drastic revision of the laws governing their rela-
tionship with France to reduce French power and to set
up a strong federal executive in Dakar.
Friction will probably grow between
Dakar and Paris because of the inevitability of greater de-
mands from African politicians. Since French funds are
essential for the area's economic development, Paris re-
tains a strong bargaining position over African nationalists.
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7. PONOMARENKO REMOVED AS SOVIET AMBASSADOR
TO POLAND
Comment on:
Panteleimon Ponomarenko has been
replaced as Soviet ambassador to Po-
land by Pyotr Abrasimov. In his fare-
well call on the Finnish ambassador in
Warsaw�Ponomarenko appeared despond-
ent and indicated that he had no new posi-
tion in the USSR. A TASS announcement
on 2 October, however, stated that he had
been transferred "to other work." Pono-
marenko has been losing status progressively for several
years and was removed from the party presidium at the 20th
party congress. In the past he has been closely associated
with Malenkov.
Ponomarenko has been unpopular in Po-
land ever since his appointment to Warsaw in May 1955. He
is said to have interfered in Polish internal affairs and has
been associated with the Stalinist (Natolin) faction in the Pol-
ish United Workers' party. It has been reported that Gomulka
has been trying to secure his replacement as ambassador.
The new ambassador to Warsaw, Abrasimov,
has long been a top-level official in the Belorussian SSR both
as first deputy premier and party secretary. In January 1957,
he was transferred to Peiping as counselor of the Soviet embas-
sy under Ambassador Pavel Yudin. The experience he gained
in dealing with the independent-minded Chinese has presumably
prepared him for the task of regaining diplomatic rapport with
the Poles.
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8. JAPANESE LOAN TO INDIA RECOMMENDED
Tokyo offer India up to $59, 000, 000
in long-term credit to further friend-
ly relations between the two countries.
the improvement of relations with India is impor-
tant for t e promotion of Japanese economic policy in South-
east Asia. To achieve maximum political benefits
Prime. Minister Kishi make the credit offer
directly to Prime Minister Nehru when the latter visits Ja-
pan in early October and that there be no quibbling over de-
tails.
the loan
would increase the market for Japanese capital goods, while
failure to act would drastically reduce exports to India. He
noted that international loan agencies have no doubts regard-
ing India's ability to repay, and that requests by other coun-
tries for credit can be refused on the grounds that Japan now
lacks foreign exchange.
Comment India has been cool toward Japanese pro-
posals for an Asian Development Fund and
for a long-term exchange of Indian iron ore for Japanese steel.
India would also hesitate to contribute to an expansion of the in-
fluence of its natural trade rival in Southeast Asia. However,
the most critical period of India's economic crisis will occur
during the next twelve months.
Japanese backers for the loan to India
apparently believe such an arrangement with India would set
a precedent for Japanese economic relations with Southeast
Asian nations which heretofore have been fearful of a resur-
gence of Japanese imperialism.
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9. BURMA MAKES NEW APPROACH TO COMMUNIST
CHINA ON BORDER PROBLEM
Comment on:
In talks held in Peiping on 28 Sep-
tember between Chou En-lai and
Burmese Chief Justice U Myint
Thein concerning the Sino-Bur-
mese border issue, Chou observed
that he would have to take time to study Burmese pro-
posals. Rangoon had dispatched Myint Thein to Peiping
in the hope of ending Chinese stalling on a border agree-
ment.
Myint Thein declared the Burmese could�
not accept Peiping's latest demands for more territory in
the border area. In reply, Chou professed to believe he
could find solutions to the points in dispute. He asserted
that the 1941 line in the Wa States area was "unjust" but
that Peiping would accept it "out of feelings of friendship."
The Burmese in Peiping, however, were not optimistic
over the prospect for reaching early agreement,
U Nu has to a large extent staked his
position as prime minister on his promise to obtain a border
settlement favorable to Burma. While the Chinese Commu-
nists have avoided a settlement, they have continued their
protestations of friendship and have made it difficult for Nu
to accuse them publicly of outright intransigence.
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3 Oct 57 �Current Intelligence Bulletin
10. BELGRADE CONCERNED OVER WEST'S REACTION
TO ITS CURRENT POSITION
Yugoslav Under Secretary for For-
eign Affairs Ivekovic summoned the
US charg�n Belgrade on 30 Septem-
ber to express concern over the
Western view that Belgrade and Moscow have estab-
lished closer relations. Ivekovic was worried over an
American press "campaign" against Yugoslav policies
and feared that it might prejudice US-Yugoslav econom-
ic assistance talks in Washington.
Ivekovic agreed with the charg�hat
his government must find a way to manifest publicly its
continued "adherence to the middle of the road." He
"vehemently" denied that there was any basis to rumors
that Soviet Defense Minister Zhukov would offer military
assistance during his visit to Yugoslavia next week.
Comment �Belgrade has consistently balanced its
moves toward the USSR with gestures
to reassure the West. The Yugoslays announced on 1 Oc-
tober that Vice President Kardelj would leave on 21 Octo-
ber for an official visit to Greece.
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