CURRENT INTELLIGENCE BULLETIN - 1957/12/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03192690
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: December 8, 1957

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3.5(c) 8 December 1957
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CURRENT
INTELLIGENCE
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Copy No. 13
0/ , BULLETIN
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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REVIEWER
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CONTENTS
YLO
1. SITUATION IN INDONESIA
(page 3).
2. CONTINENTAL NATO MEMBERS NEAR "INTERDE-
PENDENCE" AGREEMENT ON MODERN WEAPONS
(page 4).
3. SPAIN MAY NEGOTIATE WITH MOROCCAN KING ON
IFNI PROBLEM (page 5).
to-t 4. COMMUNISTS AND EGYPTIANS INTENSIFY PREPARA-
TIONS FOR CAIRO SOLIDARITY CONFERENCE
(page 6).
L�it _ t
5. SOttVANNA ATTEMPTS TO UNITE CONSERVATIVE
PARTIES IN LAOS (page 7).
,-12- 6. SOVIET NOTE TO JAPAN ON NUCLEAR TEST BAN
(page 8).
0-42� 7. BRITISH REINFORCE GARRISON IN BRITISH HONDURAS
(page 9).
cl-P? 8. DEFENDANT'S ACQUITTAL IN PANAMANIAN ASSASSI-
NATION TRIAL MAY SPARK DISORDERS page 10).
9. HUNGARIAN REGIME CONTINUING TERROR TACTICS
(page 11)0
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1. SITUATION IN INDONESIA
Comment on:
Indonesian Communists, working
through SOBSI--the Communist-
dominated labor federation--are con-
tinuing to force the pace of the anti-
Dutch campaign in Indonesia.
the Communist objective
apparently is to bring the Indonesian
economy to a complete halt, creating a condition of economic
chaos which could present the party with an opportunity for a
takeover of the government.
the union wished to
take over all Dutch estates.
such action could be undertaken only by the government,
the SOBSI official said that labor, not the government, is in
control and that labor would take over when the present cab-
SOBSI has also appealed to the WFTU and
Australian dockworkers for an international boycott of Dutch
shipping and transportation.
Action against the Dutch has now been ex-
tended outside Java. The commander in North Sumatra, the
only non-Javanese area under direct Djakarta control, an-
nounced on 6 December that all Dutch enterprises were under
his direct supervision. Seizure of other Dutch interest has
also been reported from Palembang in South Sumatra and
Makassar in Celebes, both cities where SOBSI affiliates pre-
dominate among unionized labor. There are indications,
however, that the dissident colonels in Sumatra do not fully
approve of the anti-Dutch drive and will seek to curb the Com-
munists in their jurisdictions.
8 Dec 57
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karari
2. CONTINENTAL NATO MEMBERS NEAR "INTERDE-
PENDENCE" AGREEMENT ON MODERN WEAPONS
Comment on:
General Mancinelli, the Italian chief of
staff, informed the US embassy in Rome
on 5 December that Italy, Germany, and
France are about to conclude an "inter-
dependence" agreement in production and procurement of air-
craft and missiles. Mancinelli's assessment of the agree-
ment's political importance as "in some degree similar" to
that of the European Defense Community raises important
questions concerning the future of European and Atlantic unity.
There are overtones of "European sectionalism" in the agree-
ment, and if implemented, it might pose grave organizational
problems for both NATO and WEU.
Mancinelli said the plan in the missiles
field is to adopt a prototype--probably US--and to develop
original European improvements and innovations. He said
the group is interested only in tactical types and has no pres-
ent intention of experimenting with longer range missiles.
Mancinelli thought the agreement might be
extended to cover the Benelux countries, but he specifically
excluded the UK on grounds of its "traditional obstructionism
toward European unity measures"--thus implying an expansion
of the six-nation integration along the lines of the CSC, EURA-
TOM, and the Common Market, and a rejection of WEU, of
which Britain is a member. He referred to the "somewhat
chauvinistic French attitudes" involved, but thought German
rticipation would provide a stabilizing factor.
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3. SPAIN MAY NEGOTIATE WITH MOROCCAN KING
ON IFNI PROBLEM
Comment on:
Spain may attempt to solve the Ifni
problem through talks with the King
of Morocco as soon as he returns from
-the United States, and is also holding
open its offer to arbitrate the Ifni ques-
tion through the International Court of
Justice.
Madrid is reported willing to turn Span-
ish Southern Morocco over to the Moroc-
can government immediately if Morocco
will assume responsibility for security and
station troops on the Ifni frontier, where the
irregular Army of Liberation is now operat-
ing. Spain would then be willing to negotiate
concerning the frontiers of the enclave, but
in any event is not prepared to surrender
Ifni. The Spanish army's dissatisfaction with the loss of pres-
tige already suffered in Africa may make it difficult for Madrid
to accept any substantial reduction of Spain's holdings in the
Ifni area.
The Spanish fear attacks on Spanish resi-
dents in Morocco itself. Two Spanish cruisers and four de-
stroyers were reported on 7 December to be demonstrating off
the Moroccan port of Agadir, north of the enclave of Ifni.
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40 COMMUNISTS AND EGYPTIANS INTENSIFY PREPARA-
TIONS FOR CAIRO SOLIDARITY CONFERENCE
Comment on:
Egypt and the Communist world are in-
tensifying promotional activity for the
Asian-African Solidarity Conference in
Cairo on 26 December. Members of the
Communist-front Asian Solidarity Com-
mittee and Egyptian representatives are
traveling through Asia and Africa lining
up representation, and some _400 dele-
gates are now expected. The nongovernmental nature of the
conference is being used to obtain representation from col-
onies and from opposition groups in countries such as Iraq
and Jordan.
Some friction may have developed between
Anup Singh, secretary of the Asian Solidarity Committee, and
the Egyptian committee which has taken over much of the ini-
tiative in preconference work. Singh indicated that the Egyptian
government was undermining the nongovernmental status of the
conference, while the conference secretariat press officer--an
Egyptian--told American embassy sources in Cairo that Singh
"made himself unpopular" in the October preparatory meeting
in Cairo.
Meanwhile the USSR has begun a widespread
propaganda build-up in connection with the celebration of Asian-
African Solidarity Week. Pravda on 1 December rejected West-
ern assertions that the USSR was penetrating Asia and stated
that by virtue of its territorial distribution the Soviet Union is
equally a European and an Asian country.
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5. SOUVANNA ATTEMPTS TO UNITE
CONSERVATIVE PARTIES IN LAOS
Comment on:
Laotian Prime Minister Souvanna
Phouma is pressing for a merger of
the Nationalist, Independent, and
Democratic parties into a single con-
servative bloc in order to minimize Pathet Lao gains in
the national supplementary elections set for next spring.
Souvanna may also be motivated by a desire to consolidate
his ascendency within the Nationalist party over his long-
time rival, pro-Western Interior Minister Katay, by form-
ing a bloc from which the latter's supporters might be ex-
cluded.
Souvanna, who took the lead in promoting
the settlement with the Pathet Lao and the establishment of a
coalition government, has emerged as the dominant political
figure in Laos. He nevertheless will probably be inclined, as
leader of a conservative coalition, to be guarded and gradual
in implementing the neutral foreign policy which he enunciated
last August. In opposition will be the left-wing National Union
party and the Pathets' Neo Lao Hak Zat party, which will cam-
paign for the immediate adoption of a policy highly favorable to
the Communist bloc.
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6. SOVIET NOTE TO JAPAN ON NUCLEAR TEST BAN
Comment on:
Soviet note delivered in Tokyo on
December again sought Japanese sup-
ort for the Soviet demand that a nu-
lear weapons test ban be considered
apart from other disarmament ques-
tions. The note offered no new proposals, but expressed
"regret" that the Japanese UN delegation, like the West,
had tied the test ban to a ban on production of fissionable
materials, "which fact has undoubtedly affected adversely
the chances of a decision on this question being adopted by
the General Assembly!'
By placing some of the responsibility for
breakdown of the disarmament talks on the Japanese, the
USSR may intend to exploit the concern which the new Soviet
weapons and Soviet withdrawal from the negotiations have pro-
duced in Japan. Moscow had previously tried to use the strong
Japanese desire for a cessation of tests to maneuver the Kishi
government into a public identification with the Soviet formula.
The note is also part of a continuing Soviet
propaganda campaign on the test ban issue which will probably
be intensified,now that disarmament talks are disrupted, in the
belief that neutralist pressure will eventually force the West to
yield.
8 Dec 57
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7. BRITISH REINFORCE GARRISON IN
BRITISH HONDURAS
Comment on:
Britain has reinforced its military
strength in British Honduras, prob-
ably to forestall any public violence
in British Honduras following the re-
moval of Minister for Natural Re-
sources George Price from the col-
ony's Executive Council on 6 December.
Price was removed for allegedly plot-
ting with the Guatemalan minister in
London to throw off British control of the colony. The
British action also appears to be a warning to Guatemala
to keep hands off British Honduras, although Guatemala
at present is in no position to become involved,
Price received a vociferous welcome
last week upon his return from London, where negotiations
for a loan and for a ministerial government for the colony
were broken off when the British secretary of state for col-
onies accused Price of "lack of candor and good faith," Mil-
itary intervention in Belize would provide new anti-British
propaganda for Caribbean Communists such as Cheddi Jagan
of British Guiana, and could also reduce the prestige of the
West Indies Federation to be inaugurated in early 1958 even
though British Honduras is not a part of the federation,
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8. DEFENDANT'S ACQUITTAL IN PANAMANIAN ASSASSI-
NATION TRIAL MAY SPARK DISORDERS
Comment on:
The atmosphere in Panama is tense and
conducive to disorders as the result of
the acquittal on 6 December of Ruben
Miro, accused assassin of former Pres-
ident Jose Remon, Alejandro Remon,
politically powerful brother of the slain
president, is strongly opposed to the ac-
quittal
The
American embassy believes, however, that
the national guard will continue to maintain
control.
The politically charged trial, which
opened on 21 October, had been delayed almost three years
by the maneuvering of powerful politicians, who apparently
were attempting to prevent the revelation of possible incrim-
inating facts related to the assassination.
The verdict will require a review of the
impeachment and prison sentence of former President Guizado,
Remon's successor. Guizado was convicted as an accomplice
in the murder solely on the basis of Miro's confession, which
was later retracted.
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9. HUNGARIAN REGIME CONTINUING TERROR TACTICS
Fairly reliable reports are circulating
in Budapest that at least 20 persons in
university and literary circles have been
arrested in Hungary during the last two
weeks, according to the American legation.
American officials believe this information,
if confirmed, would indicate that the Kadar regime is continu-
ing its course of oppression in a "relentless attack" on section
after section of the Hungarian populace, with cultural figures
as the current targets.
Comment The Stalinist wing of the Hungarian party
has become increasingly bold in the past
month in demanding harsher cultural policies. These demands,
combined with the reports of arrests of literary figures, prob-
ably presage more repressive tactics in this field, where there
has been some relaxation in the past few months, and a continu-
ation of the regime's hard-line domestic policies.
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