CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002600540001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: November 18, 2002
• Sequence Number: 1
• Publication Date: August 1, 1956
• Content Type: REPORT

10
25X 1 August 1956
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Copy No-105
CURRENT
INTELLIGENCE
BULLETIN
DOCUMENT NO. _------
NO CHANGE IN CLASS.
DECLASSIFIED
C LASS. CHANGED TO:
NEXT REVIEW DATE:
AUTVjw f
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
State Dept. review completed
TOP SECRET
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CONTENTS
1. NASR EMPHASIZES FREEDOM OF SUEZ NAVIGATION
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2. KHRUSHCHEV QOUNSE MODERATION WEST IN
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5. BRITISH CONTINUING TO OBSTRUCT SEATO'S DEVELOP-
MENT
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6. INDONESIAN PRESIDENT LAUDS UNITED STATES
(page 9).
MENTS WITH EAST EUROPE
7. INDONESIA DISSATISFIED WITH PRESENT TRADE AGREE-
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1..NASR EMPHASIZES FREEDOM OF SUEZ NAVIGATION
gypt's statement on 31. July that it intends
o abide by the 1888 international convent-
ion on freedom of navigation of the Suez
Canal and all other "international obliga-
tions" is designed to cut the ground from
under reported Western moves to call a
conference to deal with this problem. The
announcement that Egypt will not force canal
company employees to stay on the job if they
ministration of the canal, not in its operation.
give notice and resign in a regular manner is an effort to avoid
accusations that Egypt is violating human rights in holding com-
pany personnel "prisoner:'
The Egyptian government appears anxious
to avoid any action which it feels could reasonably be construed
as violating international agreements on the use of the canal.
At the same time, however, the Egyptians are vigorously insist-
ing on their right to nationalize the company, maintaining that
nationalization involves only a change in the control of the ad-
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Meanwhile, London's efforts to avoid provok.
ing Egypt are indicated by the order to four troopships to bypass
Suez by going around Africa, and by the announcement that the
two Egyptian destroyers being fitted out in Britain will be released.
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2. KHRUSHCHEV COUNSELS MODERATION BY WEST IN
SUEZ DISPUTE
Khrushchev in a speech at a builders'
rally on 31 July advised the British and
French governments to use "common
sense, experience and political soberness" in adjusting to
Egyptian nationalization of the Suez Canal. He played down
the cause for tension and warned that "unwise voices" are
heard in Britain and France asking for the application of
"some unspecified means of oppression, almost of military
operations." He reaffirmed Soviet support for the legality
of the Egyptian position.
Comment The USSR has made clear its desire for a
peaceful solution of the canal dispute.
Press dispatches quote an unidentified Soviet bloc spokesman
in London to the effect that Moscow recognizes Egyptian sov-
ereignty over the canal, but would be willing to join in discus-
sions for an "international solution" that would permit unre-
stricted passage by foreign ships.
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5. BRITISH CONTINUING TO OBSTRUCT
SEATO'S DEVELOPMENT
bassador Bishop, the American representative on the SEATO
council, points out that Britain has opposed and delayed adop-
tion of practically every important American proposal, in-
cluding the establishment of a public relations office and a
research center. It has also sought to limit the scope of
both classified and public reports on SEATO activities
aeveiopment o SEATO as an effective organization. Am-
Reports from Bangkok indicate that
British obstructionism continues to
be the primary obstacle to American
efforts to maintain momentum in .the
Bishop reports that Britain is currently
delaying discussions on a projected report of the council's
activities because of a "fundamental opposition" to the Amer-
ican concept that the entire range of the treaty's implementation
should be covered.
The most serious effect of London's atti-
tude has been the damage to SEATO's stature in the eyes of
its three Asian members--Pakistan, Thailand and the Philip-
pines. They have all expressed considerable dissatisfaction
over 'SEATO's slow development and lack of results.
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6. INDONESIAN PRESIDENT LAUDS UNITED STATES
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In an "extraordinary" speech in praise
of the United States at an Indonesian
National Party congress held in Sema-
rang, a Communist stronghold in Java,
President Sukarno, according to Ambassador Cumming,
demonstrated publicly the very favorable impressions re-
ceived during his recent visit to the United.States. Sukarno
declared that he had found in America full freedom of ex-
pression and an amazing freedom from want. He indicated
that the first of these elements was lacking in the Soviet
Union.
Cumming comments that the speech may
produce pressures from the left. The Indonesian news agency
Antara omitted all pro-American references in its summary of
the speech.. The requirements of courtesy in connection with
his trip to the USSR and Communist China may prompt some
"balancing" speech. Cumming believes, nevertheless, that
the fact that Sukarno is now on record as enthusiastically en-
dorsing the American way of life is bound to have "an incal-
culable influence on both the Indonesian elite and masses:'
Comment The Semarang speech is in marked con-
trast to the attitude of Sukarno and the
National Party prior to his trip to the United States.
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7. INDONESIA DISSATISFIED WITH PRESENT TRADE
AGREEMENTS WITH EAST EUROPE
Trade officials of the Indonesian For-
eign Ministry have stated that the barter
agreements with East European coun-
tries had been unprofitable and that the
onclusion and r
'just a political
fulfilled.
They
enewal of such agreements in the past was
gesture.' since their provisions were never
said Indonesia henceforth will trade. with
countries offering the "most favorable conditions;" accord-
ing to the American embassy in Djakarta.
Comment A Foreign Ministry official had previously
announced that trade agreements with
Soviet bloc countries would be renewed under normal commer-
cial payments practice, indicating dissatisfaction with the
clearing arrangements on which they were originally nego-
tiated. The trade officials' statement indicates that the agree-
ments were sought by the first Ali government more to demon-
strate its "independent foreign policy" than in the expectation
of greatly expanded trade. Indonesia has been satisfied with
its trade with Communist China.
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