CURRENT INTELLIGENCE BULLETIN - 1957/12/31

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015189
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: December 31, 1957

/ CURRENT
/ INTELLIGENCE
BULLETIN
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DOCUMENT NO
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NEXT REVIEW DATE
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REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
3.3(h)(2)
zo/A
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CONTENTS
1. EAST GERMAN REGIME ASSUMES VISA AUTHORI
OVER ALLIED OFFICIALS (page 3).
4 p 2. INDONESIAN CABINET AGREES TO SEEK SOVIET AID IN
CAMPAIGN AGAINST DUTCH (page 5).
A-0
3. ISRAELI PRIME MINISTER RESIGNS
4. THE AFRO-ASIAN SOLIDARITY CONFERENCE
(page 7).
(page 6).
5. IRAQ PLANS TO INCREASE FINANCIAL Al]) TO ALGERIAN
NATIONALISTS (page 8).
i.vo 6. YEMEN FURTHER TIGHTENING TIES WITH SOVIET BLOC
(page 9).
A-9
)14)
7. USSR OFFERS NUCLEAR AID TO BURMA
(page 10).
8. NEW THAI GOVERNMENT FACES UNCERTAIN FUTURE
Lge 11).
9. KISHI LETTER MAY IMPERIL FUTURE OF JAPANESE-
SOUTH KOREAN TALKS
(page 12).
- 10. AMERICAN OIL COMPANIES BECOMING AN ISS
rBITTERrATEMALAN ELECTION CAMPAIGN
age 13).
11. CRISIS IN THE NETHERLANDS COMMUNIST PARTY
(page 14).
31 Dec 57
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1, EAST GERMAN REGIME ASSUMES VISA AUTHORITY
OVER ALLIED OFFICIALS
omment on:
In a direct challenge to Allied rights of
access to Berlin, the government of the
German Democratic Republic (GDR) sent
notes to Allied officials on 28 December
that, effective 1 January 1958, Allied holders of diplomatic
and special passports must obtain GDR visas for travel in
East Germany. The Soviet charg�n East Berlin, in a let-
ter to US Ambassador Bruce on 30 December, supported
the East German position and stated that after 1 January
1958, "the issuance of visas to citizens of the USA for en-
tering or transiting the territory of the GDR will not be
handled by Soviet consular offices!' These moves are in-
tended to compel the Allies to recognize the GDR as a sov-
ereign state and comply with its laws.
The East German note left at the US mis-
sion in Berlin stated that "traffic between the German Federal
Republic and West Berlin of troop personnel and goods of the
garrison stationed in West Berlin is excepted from this regu-
lation!' The construction the Communists will place on the
exception of "troop personnel" of the Berlin garrisons cannot
yet be determined.
Possibly indicating some Soviet circum-
spection in interfering with Allied access to Berlin, the press
attache of the Soviet Embassy in East Berlin told an American
newspaperman on 30 December that the new visa regulations
would not apply to "diplomats attached to Allied military mis-
sions in West Berlin"--presumably the Allies' diplomatic mis-
sions in West Berlin--who are proceding by autobahn and wish
to travel to West Germany. Members of the military missions
will be able to travel as before, he said, but diplomats and other
31 Dec 57
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4. I 414-0.{. I M. 1.4,
vele NEW
official travelers not attached to the West Berlin military
con mands will have to obtain visas from the East Germans.
In any event the new procedures will ap-
ply to rnall American, British, and French diplomatic and
special passport holders who pass through East Germany in
transit to or from Moscow and Warsaw, or who travel within
East Germany. The aircraft that serves the American Em-
bassy in Moscow, which normally flies to and from West
Berlin, will probably also be affected. The Communists thus
are attempting to force the United States to deal with the East
Germans on an issue where the right of free access to Berlin
does not apply.
31 Dec 57
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wage
2. INDONESIAN CABINET AGREES TO SEEK SOVIET AID
IN CAMPAIGN AGAINST DUTCH
Comment on:
the entire Indonesian cabinet, in-
cluding all non-Communist ministers,
has agreed to seek Soviet assistance in the "struggle against
the Dutch." in the face of
Western opposition to Indonesia's claim to Netherlands New
Guinea, Indonesia has no choice but to turn to the Soviet
Union.
the statements
with the tone of recent speeches by Prime Minister Djuanda
and Foreign Minister Subandrio on the necessity for closer
Indonesian relations with the Communist bloc. The cabinet's
reported decision, the recent speeches, and official statements
on Indonesia's unsuccessful efforts to obtain arms from the
United States, have all the earmarks of the government's final
step in justifying arms acquisitions from the Soviet Union.
The American embassy comments that
The Soviet credit for $100,000,000 negotiated
in September 1956 for technical assistance probably could be
diverted for arms and other military equipment. The cabinet's
decision confirms other information, heretofore
that Indonesia has decided to turn to
the bloc for arms.
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3. ISRAELI PRIME MINISTER RESIGNS
Israeli Prime Minister Ben-Gurion's
resignation is a political maneuver
which will have no significant effect
on Israel's policies. The prime minis-
ter was forced to take this action in
order to oust from his coalition cabinet two representa-
tives of the left-wing Achdut Haavoda party who, in his
view, had breached cabinet "discipline" by revealing pre-
maturely plans to send an Israeli defense mission to West
Germany.
Negotiations to form a new cabinet
coalition, made necessary by the fact that Ben-Gurion's
Mapai party has only 40 of the 120 seats in the Israeli par-
liament, may be prolonged. However, similar situations
in the past have not seriously impeded the conduct of gov-
ernment business, and Ben-Gurion will meanwhile remain
as head of a caretaker cabinet.
31 Dec 57
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%No?
4, THE AFRO-ASIAN SOLIDARITY CONFERENCE
Comment on:
The strong anti-Western economic and
political proposals emerging from the
Afro-Asian Solidarity Conference will
probably set the lines for Communist
and ultranationalist agitation in Africa
and Asia during 1958. Liberation of
the world's colonial areas emerged as
a major conference theme on which
African delegates were especially
vociferous. Aside from the relatively
moderate delegates from Ghana and
Ethiopia, African representation is gen-
erally drawn from illegal ultranationalists
or political unknowns. An international trusteeship for all
colonies as a first step to independence was also proposed.
The quasi-governmental offer of Soviet
economic aid to any country in the area was couched in
familiar terms of benevolent Soviet assistance free of po-
litical strings. The USSR is probably capable of extending
large quantities of additional aid under its economic rela-
tions offensive, but this would involve revision of present
economic resource allocations. The priority the USSR
places on extending its influence in Asia and Africa may
be sufficiently great to warrant such an adjustment. The
Soviet delegation also urged nationalization of Western
economic interests as "the most rapid and effective path
to industrialization:' The Syrian delegation called for im-
mediate confiscation of Middle Eastern oil interests.
Communist domination of the conference
appears complete, with the Soviet delegation overshadowing
other delegations.
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5. IRAQ PLANS TO INCREASE FINANCIAL AID TO
ALGERIAN NATIONALISTS
Comment on:
The Iraqi Government plans to increase
its financial support of the Algerian na-
tionalists from the $210,000 already con-
tributed,
An "Algerian Relief Fund" of
$700,000 to ,000 will be included in the Iraqi budget for
parliamentary approval. This extensive financial aid to the
Algerians is in marked contrast to Baghdad's refusal to make
a significant contribution to Jordan and reflects the general
Arab interest in the Algerian rebellion.
An Algerian delegation recently arrived
in Cairo with a budget of its annual financial requirements and
appealed for regular annual financial aid at a meeting of the
Arab League. The Arab states are now considering the appeal.
In the past they have given consistent political support, and
Egypt and Syria have supplied considerable military aid to the
nationalists.
31 Dec 57
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6. YEMEN FURTHER TIGHTENING TIES WITH
SOVIET BLOC
Comment on:
- �
Yemen's Crown Prince Badr, who ar-
rived in Moscow on 30 December, has
concluded additional diplomatic, eco-
nomic, and military aid agreements
during visits to Rumania, Poland, and
Yugoslavia in recent weeks, after in-
conclusive visits to London, Rome, and
Paris. Meanwhile Bath's father, the
ailing Imam of Yemen, on 25 December
in effect rejected new American aid of-
fers presented by Ambassador Wadsworth.
The Imam's growing collaboration with
the Soviet bloc has aroused the concern of King Saud, who on
24 December warned the Imam against this "partiality for the
Communist side." Pointing out that the presence of Commu-
nist missions in Yemen would create a threat to Saudi Arabia,
Saud gave veiled warning of possible punitive measures against
Yemen.
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'L USSR OFFERS NUCLEAR AID TO BURMA
Comment on:
The USSR has offered to build a nuclear
laboratory and eventually a nuclear re-
actor in Burma in exchange for exclusive
purchase rights to any exportable surplus
of fissionable raw materials produced in Burma,
It seems unlikely that such an offer would
appeal to the Burmese. The exclusive purchase feature would
contravene Rangoon's neutral foreign policy. The Burmese,
moreover, are already proceeding with long-standing plans to
construct a nuclear laboratory center under the technical
guidance of an American research corporation, and have for-
mally requested that this project be financed out of the
$25,000,000 loan recently granted to Burma by the United
States.
The Soviet Union has also during the last
six months been promoting ties with Indonesia in the atomic
energy field. In attempts to implement the atomic energy
provisions of the Soviet-Indonesian economic agreement, So-
viet officials in Djakarta offered in August and again in No-
vember to survey fissionable material resources in Indonesia.
The USSR recently gained permission to hold an atomic ex-
hibit in Indonesia in 1958,
31 Dec 57
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v...) '1 .1 T ALL JI.A./
Noe Nur'
8. NEW THAI GOVERNMENT FACES UNCERTAIN FUTURE
Comment on:
Despite the orderly manner in which
the new Thai Government is being or-
ganized under Premier-designate
General Thanom, its future prospects
have been c ou e y Marshal Sarit's critical illness and in-
tensified political maneuvering.
Sarit, the armed forces commander,
is the individual most capable of maintaining unity within
the ruling military group which came to power by coup
d'etat last September. His illness is likely to cause some
of his more ambitious subordinates to think in terms of al-
ternatives to his leadership, and his death would probably
cause a wide-open struggle for power.
General Thanom would seem to be in
the best position to succeed Sarit as Thailand's "strong man."
His real power within the military group may be weakened,
however, as his assumption of the premiership may deprive
him of direct command of the key First Army located in the
Bangkok area. Thanom's engrossment in politics would par-
ticularly benefit General Prapat, the present minister of in-
terior, who is expected to succeed him in command of the
First Army. The dynamic Prapat is ambitious to become
Thailand's leader.
In parliament, the ruling group has en-
countered unanticipated difficulties in forming a new govern-
ment party. Although the middle-of-the-road Unionist party
has apparently agreed to join the new party, many of its mem-
bers are dissatisfied with this arrangement and may not be
counted on to support the government on all issues. The gov-
ernment's parliamentary problems may be aggravated if it
fulfills a promise to conduct by-elections next March for 26
seats in the assembly to replace present appointed members.
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9. KISHI LETTER MAY IMPERIL FUTURE OF JAPANESE-
SOUTH KOREAN TALKS
Comment on:
This threat to future negotiations over-
shadows a preliminary agreement expected to be signed on
31 December which provides for the immediate release of
all Japanese fishermen held in Korea except those who have
not completed their prison sentences for violation of the
"Rhee line." Japan is to release all incarcerated Koreans
who entered Japan prior to 1945 and repatriate all those who
subsequently entered the country illegally.
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Nftior Node
10. AMERICAN OIL COMPANIES BECOMING AN ISSUE IN
BITTER GUATEMALAN ELECTION CAMPAIGN
Comment on:
By making American oil companies a
political issue, Guatemala's rightist
presidential candidate Ydigoras is at-
tempting to exploit nationalistic and
anti-American feeling in his bid for
election on 19 January. Ydigoras
charged on 26 December that Ameri-
can oil companies were supporting
center presidential candidate Cruz
Salazar. He implied that if Cruz is
elected, Guatemala will have been "purchased" by an
American consortium and that Guatemalan soil will give
up its riches to the foreigners and will cease to be Guate-
malan. He conceded, however, that Cruz is probably not
receiving the direct support of the United States Govern-
ment.
Ydigoras' speech, which parrots the
leftist and Communist lines, seems to reflect his need for
a strong new issue in his contest with Cruz and the leftist
presidential candidate, Mario Mendez Montenegro, who
have been gaining strength at his expense. If Cruz wins
the election, it may also presage a new tactical alliance
between Ydigoras and the leftists. Such an alliance existed
during the disturbances last October which ended in the
annulment of the 20 October election.
The 19 oil companies active in Guatemala,
most of them American, spent over $10,000,000 in exploration
there this year. Actual drilling is just beginning.
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11_ CRISIS IN THE NETHERLANDS COMMUNIST PARTY
Comment on:
Clashes between the Netherlands Corns -
munist party and its trade union affiliate,
the EVC, have led three more prominent
Communists�who are also members of
parliament �to resign from the party's central committee, ac-
cording to the Dutch press. Further losses in party prestige
and membership seem imminent, and a party split is a distinct
possibility.
The present difficulties largely result
from the EVC's determination to maintain some independence
of action despite the efforts of Secretary General Paul De Groot
to reassert his absolute control over all Communist activities
in the Netherlands. De Groot's expulsion of one prominent
party member in November led two central committee members
to resign their posts earlier this month, and since then, the
party's leaders have been taking sides for a showdown.
The strength of the Dutch Communist party
has declined steadily since its early postwar peak when it had
an estimated 53,000 members, polled as high as 10 percent of
the vote, and presumably exercised some influence over the
400,000 readers of the party newspaper. An official Dutch serv-
ice has recently estimated the party and EVC membership at
18,000 and 35,000 respectively.
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