CURRENT INTELLIGENCE BULLETIN - 1957/07/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03155135
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: July 12, 1957

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La, V
CURRENT
INTELLIGENCE
BULLETIN
12 July 1957
Copy No.
REViEWER:
3.5(c)
3.3(h)(2)
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
This document contains classified information affecting
the national security of the United States within the
meaning of the espionage laws, US Code Title 18, Sections
793, 794, and 798. The law prohibits its transmission
or the revelation of its contents in any manner to an un-
authorized person, as well as its use in any manner
prejudicial to the safety or interest of the United States
or for the benefit of any foreign government to the detri-
ment of the United States.
ET
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CONTENTS
. BRITAIN RECONSIDERING EXTENSION OF DISARMAMENT
AGREEMENT TO COMMUNIST CHINA (page 3).
4)2
h 4.
hids.
ON. SITUATION IN INDONESIA
FRENCH LEGISLATIVE COMMITTEE MOVES TOWARD
RECOGNITION OF COMMUNIST CHINA (page 4).
CANADIAN OFFICIALS CONSIDERING RECOGNITION OF
COMMUNIST CHINA (page 5).
SOVIET UN OFFICIAL CLAIMS PURGE MAKES POSSIBLE
BETTER US-SOVIET RELATIONS (page 6).
ITALIAN COMMUNIST REACTION TO SOVIET PURGE
(page 7).
SHAH RETURNS TO IRAN AHEAD OF SCHEDULE
(page 8).
(page 9).
ANNEX--Conclusions of the Watch Report of the Intelligence
Advisory Committee
(page 10).
12 July 57
Current Intelligence Bulletin Page 2
TOP RET
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LT./1111'1 I II 111114 Au
1. BRITAIN RECONSIDERING EXTENSION OF DISARMAMENT
AGREEMENT TO COMMUNIST CHINA
Comment on:
Britain is reconsidering its position on
the question of Communist China's ad-
herence to any first-step partial disarm-
ament agreement. According to a Foreign
Office official, the vigorous dissent expressed by Australia and
New Zealand at the Commonwealth prime ministers' conference
to Britain's "reluctant" agreement with the United States that
Communist China need not be included in the first phase has af-
fected London's views on this subject.
Australian Prime Minister Menzies took
the position that Peiping's present expansionist policy makes it
imperative that Communist China should in some way be bound
by a first-phase disarmament agreement. New Zealand and
India voiced the same opinion.
At the close of their conference, the Com-
monwealth leaders issued a generalized statement calling for
Communist China's eventual pp,rticipation in disarmament nego-
tiations.
London has agreed to support the moratorium
formula on Chinese representation at the UN General Assembly
this fall, but any such international recognition of Peiping as its
adherence to a first-step disarmament agreement would further
jeopardize Taipei's position in the UN, particularly its claim to a
permanent seat on the Security CounciL
12 July 57
Current Intelligence Bulletin Page 3
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111__OC.F. I. � A' 11 I ILI11U
28 FRENCH LEGISLATIVE COMMITTEE MOVES TOWARD
RECOGNITION OF COMMUNIST CHINA
The foreign affairs committee of the
French Natioaal Assembly met on 10
July to consider a resolution urging the
government to proceed toward recogni-
tion of Communist China, and plans to
vote on the question on 17 July. If the vote is favorable,
committee chairman Daniel Mayer may decide to bring up
the resolution in the assembly before the summer recess.
Comment The committee secretary believes the
resolution will receive a favorable vote
in committee. There is a likelihood, however, that
the assembly will postpone debate until fall in view of its
heavy schedule and the deputies' desire for early recess.
Important business interests, particularly
those seeking expanded trade with the Far East, favor recog-
nition. Former premier Edgar Faure, who has just returned
from Peiping. is one of several influential deputies who urge
such a step.
12 July 57
Current Intelligence Bulletin
Page 4
7�7711T AT
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3, CANADIAN OFFICIALS CONSIDERING RECOGNITION
OF COMMUNIST CHINA
Comment on:
The Canadian Department of External
Affairs
to recommend recog-
nition of the Chinese Communist regime
to its government and believes it would be helpful for like-
minded governments to take a similar stand.
Conservative Prime Minister Diefenbaker is actively en-
gaged in implementing his pre-election claim that under his
leadership Canada would take a more independent position vis-
a-vis the United States than it did under the former Liberal
government. The Conservatives may wish to demonstrate this
position by independently enlisting other governments' support,
inasmuch as the Liberal government itself since 1953 had fa-
vored eventual recognition of Communist China.
In his first month as prime minister, Diefen-
baker has publicly taken an increasingly critical position on sev-
eral issues such as Canada's imbalance of trade with the United
States and the latter's surplus wheat program, which is adverse-
ly affecting the Canadian export position. The result has been an
active press campaign supporting the government and charging
the United States with "unfair" policies. American Ambassador
Merchant has warned that it would be a mistake to minimize the
determination of the new Canadian government "to do something"
about these problems.
12 July 57
Current Intelligence Bulletin Page 5
C. irr r-por
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4.,� SOVIET UN OFFICIAL CLAIMS PURGE MAKES
POSSIBLE BETTER US-SOVIET RELATIONS
Comment on:
A member of the Soviet UN delegation,
Igor Vasilyevich Chechyetkin, told
Ambassador Wadsworth on 10 July that
the top-level changes in the Soviet lead-
ership would mean an improvement of
relations with e United States if the United States really
wanted an improvement. He warned, however, that the changes
would not mean any modification of basic Soviet principles and
objectives, and that the United States would be greatly mistaken
if it expected a wholesale retreat from previous Soviet positions.
He said the United States could expect a
more flexible Soviet approach to existing problems which would
make it possible to settle "little by little" some of the outstand-
ing issues. He stressed that agreement would be item by item
and that the United States should not expect to settle all differ-
ences at one time.
Chechyetkin's remarks are similar to those
made to American officials by members of the Soviet disarma-
ment delegation in London on 4 July. Soviet broadcasts since
the purge also have warned the West against expecting far-reach-
ing changes in Soviet foreign policy.
12 July 57
Current Intelligence Bulletin
Page 6
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5. ITALIAN COMMUNIST REACTION TO SOVIET PURGE
Comment on:
The Italian Communist Party is on the
defensive to some extent over the purge
in Soviet leadership, and Togliatti ad-
mitted in a 7 July Unita editorial that it
"had shocked certain comrades."
this development had pro-
duced great confusion within the party.
The official party reaction, however, had
been calm approval. Togliatti's initial Unita editorial on 5 July
stated that the condemnations were absolutely necessary and
fully justified and that they were a safeguard against a repeti-
tion of the errors of the Stalin era.
A Communist delegation, headed by Vice
Secretary General Luigi Longo, reportedly will leave soon for
the Soviet Union to spend a few weeks studying "how the deci-
sions of the 20th congress have been carried out."
12 July 57
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6. SHAH RETURNS TO IRAN AHEAD OF SCHEDULE
Comment on:
The Shah's abrupt return to Tehran from
his European vacation on 12 July rather
than in August or. September may precipi-
tate an early decision by Prime Minister
Eqbal on his repeated threat to resign if
the Shah continues to "meddle" in the daily
business of the government. Eqbal report-
edly feels his hands are tied by the Shah,
making the implementation of a constructive
program impossible.
The Iranian foreign minister told the Amer-
ican ambassador he believes the Shah decided on an early return
in response to strong representations from Minister of Court
Ala. Ala has kept the Shah
informed in detail on political developments in Iran, particularly
on the discouragement and frustration of the prime minister. The
Shah also is probably aware of the increasing criticism of his direct
rule among other high-ranking government officials and army and
police officers.
12 July 57
Current Intelligence Bulletin Page 8
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7. SITUATION IN INDONESIA
Comment on.
President Sukarno will install his pre-
dominantly leftist national council on
12 July even though seven of the 45 seats
are still vacant. It will hold its first
meeting on 13 July.
Sukarno on 9 July called for the establish-
ment of a "new-life movement" to promote
both "sell-correction" and a "mental revo-
lution oug out Indonesia. The American embassy suggests
that Sukarno's latest proposal appears to be designed as a new
rallying cry to arouse popular emotion and support in his scheme
to "uplift" the nation.
Despite Sukarno's maneuvers, no progress
is being made toward the solution of Indonesia's most pressing
problems. Prime Minister Djuanda stated on 9 July that it was
impossible for the government to meet the economic demands
of the disaffected provinces� He announced, however, that the
$100,000,000 Soviet technical aid agreement--initialed last Sep-
tember--has been approved by the cabinet and submitted to
parliament for discussion. Djuanda said the loan would be used
primarily for capital goods and equipment and for the services
of experts who would train Indonesians in technical and managerial
matters. The agreement will probably be ratified in view of the
increasingly acute need for funds to carry out the government's
long-promised development program.
The deputy chief of staff went to Celebes on
10 July in a new attempt to end the disaffection of Lt. Col. Sumual
in East Indonesia.
12 July 57
Current Intelligence Bulletin Page 9
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ANNEX
Watch Report 362, 11 July 1957
of the
Intelligence Advisory Committee
Conclusions on Indications of Hostilities
On the basis of findings by its Watch Committee, the Intel-
ligence Advisory Committee concludes that:
A. No Sino-Soviet bloc country intends to initiate hostilities
against the continental US or its possessions in the imme-
diate future.
B. No Sino-Soviet bloc country intends to initiate hostilities
against US forces abroad, US allies or areas peripheral
to the orbit in the immediate future.
C. Early deliberate initiation of hostilities by Israel or the
Arab states is not probable. Although tensions continue
� between the Arab states and Israel and among certain Arab
states themselves, these are not likely to lead to serious
conflict in the immediate future.
12 July 57
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