CURRENT INTELLIGENCE BULLETIN - 1957/04/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 06813998
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: April 4, 1957

Approved for Release: 2019/12/04 C06813998
'70
CURRENT
INTELLIGENCE
BULLETIN
ET 70/
TOP S
3.3(h)(2)
3.5(c)
4 April 1957
Copy No. 134
DOCUMENT NO.
NO CHANGE IN CLASS.
F I DECLASSIFIED
CLASS. CHANCED TO:
NEXT REVIEW DATE TS souru5
1AIALTTit
'EHA
)OKEVIEW.ER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
. THE SITUATION IN JORDAN
�
(page 3).
pla 2. NASR EXPECTED TO ISSUE DECLARATION ON SUEZ
(page 4).
� 403. BRITAIN TO ANNOUNCE DRASTIC CHANGES IN DEFENSE
PROGRAM (page 5).
Oh 4. USSR THREATENS GREECE WITH ATOMIC RETALIATION
(page 6).
5. KING SAUD SAYS AQABA GULF ISSUE "MATTER OF LIFE
OR DEATff' FOR SAUDI ARABIA Xpage 7).
Pb6. MOROCCO AND TUNISIA REPORTEDLY AGREE TO RECOG-
NIZE INDEPENDENT ALGERIA (Page 8).
147. STATE OF SIEGE DECLARED IN CHILE
4 Apr 57 Current Intelligence Bulletin
(page 9).
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1. THE SITUATION IN JORDAN
Comment on:
�
Jordan's leftist-dominated cabinet of
Prime Minister Nabulsi appears to be
winning its test of strength with King
Hussain, in which the army's unwilling-
ness to support the king may be decisive.
the ultranationalist
I I
"free officers" and Chief of Staff Nuwar planned to tell the
king that "the army would not stand against the people" in
the event of government-inspired demonstrations which were
certain to follow any resignation of the cabinet.
in ensuing negotiations, the government intended to
demand that the king permit a reorganization of the govern-
men which would further weaken his position, and recognize
the government's right to approve any proposed changes in
the cabinet.
The cabinet, in what is probably a calcu-
lated gesture of defiance to Hussain, announced on 2 April
that it would establish diplomatic relations with the Soviet
Union.
Nuwar returned from Damascus on 1 April with an offer of
Soviet aid "at low prices."
4 Apr 57
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2. NASR EXPECTED TO ISSUE DECLARATION ON SUEZ
Reference:
Egypt has rejected suggestions for changes
in its proposed declaration on Suez, and
Foreign Minister Fawzi has stated that fol-
lowing its publication,the declaration will
not be subject to further negotiations "but would lend itself to
elaboration in implementation." Ambassador Hare reports
that Egypt now seems to have decided to "take the bit in its
teeth" and take final action.
Nasr told John McCloy, Hammarskjold's
financial adviser, that the American proposals appeared to be
made primarily "to make a case for Israel." He said he "just
didn't want to talk about the six principles any more." They
were subject to varying interpretations, were the product of
negotiations with the British and French who were dealing in
bad faith, and would be quickly seized on by Israel "to put
�Egypt on the spot." Nasr said he could not agree to the adher-
ence of other states to the declaration because Israel would be
'the first "to take advantage." Foreign Minister Fawzi said also
that "helpful advice on canal improvements was welcome" but
Egypt could not be bound by "outside decisions."
With the release of the Egyptian declaration,
Britain and France are likely to call an early Security Council
meeting to discuss the Suez Canal.issue.
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3. BRITAIN TO ANNOUNCE DRASTIC CHANGES IN
DEFENSE PROGRAM
A British white paper on defense, pre-
pared for issuance in two parts on 4 and
5 April, will announce increasing reli-
ance on atomic weapons and the reduc-
tion of the armed forces by about half, with the aim of abol-
ishing conscription between 1960 and 1962. The defense
budget of about $4 billion for the fiscal year ending 31 March
1958 will be $220,000,000 below actual fiscal 1957 expendi-
tures. The American embassy notes that the severity of the
cuts is also apparent in the planned manpower reduction of
70,000 for fiscal 1958.
The embassy reports that in an effort to
counter the possible disturbing effect of the white paper on
Britain's allies, the North Atlantic Council is to be given an
advance statement lust before publication time.
mment The unusual procedure of postponing the
"Statement on Defense" from mid-February
to April, and then of issuing it in two sections, reflects the
'dilemma confronting the British government. The drastic
measures indicated here suggest that internal political and
economic pressures have won out over concern for relations
with Britain's Western European allies.
It is possible that London has again under-
estimated the extent of the allied reaction. The new defense
program is likely not only to reopen the problem of conscrip-
tion periods for Continental NATO members, but to confirm
the often-expressed fears that Britain's initial troop reduc-
tion is only the first step in total withdrawal from the Conti-
nent.
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4. USSR THREATENS GREECE WITH ATOMIC RETALIATION
'Reference: :
if Greece were not
weapons.
Following hard on similar warnings to
Norway, Denmark and Great Britain,
Soviet ambassador �Sergeev, acting on
instructions from his government, warned
Greek foreign minister Averoff on 2 April
that if Greece were used as a base for
atomic weapons, it would suffer devastating
retaliation by the same means. Furthermore,
uld not be attacked by atomic
Ave o ec re a t rea s a never
een a successful instrument of diplomacy in dealing with
Greece and that today NATO membership provided it with the
strongest defensive support it ever had. Sergeev accused him
of speaking irresponsibly and not understanding the annihilat-
ing effect of atomic warfare.
An official of the Soviet embassy in Athens
reportedly said on 28 March thatl Moscow hopes to alarm the
populations in Greece, Turkey, Iran and Japan. and thus make
such bases political anathema.
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5. KING SAUD SAYS AQABA GULF ISSUE "MATTER OF
LIFE OR DEATH" FOR SAUDI ARABIA
King. Saud told US charg�enkins on
30 March that he considers the problem
of Israel's freedom to use the Gulf of
Aqaba "a matter'of life or death to us
and to our country." The king said Saudi
Arabia would defend its territorial waters "no matter how
much it costs us." On the previous evening royal counselor
Yasuf�Yasin stated that "we would consider Israeli free pas-
sage of the gulf as a spear thrust into our vitals."
Comment Despite King Saud's unyielding attitude;_
his troops stationed at the entrance to-the
gulf have again been ordered not to fire on the Israelis unless
first fired on, whatever the provocation. �Saudi Arabia has
been trying to obtain longer-range artillery to put in posi-
tion there. The present 25-pounder guns would not be effec-
tive against shipping passing through the normally used west-
ern channel of the straits.
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6. MOROCCO AND TUNISIA REPORTEDLY AGREE TO
RECOGNIZE INDEPENDENT ALGERIA
Comment on:
The Moroccan and Tunisian governments
reportedly have secretly agreed to recog-
nize an independent Algerian government
composed of leaders of the Algerian Na-
tional Liberation Front (FLN) "at an appropriate time" be-
fore the next UN discussion of the Algerian question, which
is expected in the fall. This decision, according to an Alge-
rian Nationalist leader, was reached during Tunisian premier
Bourghiba's visit to Rabat last week. The Libyan government
is to be informed of this decision.
Presumably Morocco and Tunisia would
recognize an Algerian government created within Algeria
rather than the government-in-exile
the Algerian Army of Liberation, military arm of
the FLN, has for some months exercised civil functions in
various areas under its control.
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7, STATE OF SIEGE DECLARED IN CHILE
Comment on:
�
Serious rioting and looting has con-
tinued in Santiago despite President
Ibanez' declaration of a state of siege
and annulment of a widely resented bus
fare increase.
the situation is
extremely delicate and all observers con-
sider the demonstrations similar to those
that swept Ibanez from office in 1931. The protests, which
sprang from economic hardships connected with inflation,
are now directed against the US-backed stabilization plan.
Leaders of the Communist-dominated
Single Center of Chilean Workers and individual Commu-
nists reportedly have been active in the disturbances, but
Communist Party leaders have not openly participated be-
cause of fear of government repression. At least six per-
sons reportedly had been killed and 158 wounded prior to the
declaration of a state of siege.
The rise in the. cost of living was held to 37 .
percent in 1956, as compared. with,over .80 perCent in .1955, :but
real income for workers is declining, since the government
has limited compensating wage increases to less than 31 percent.
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