CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003100120001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: March 18, 2003
• Sequence Number: 1
• Publication Date: May 8, 1957
• Content Type: REPORT

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8 May 1957
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CURRENT
INTELLIGENCE
BULLETIN
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
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5; 003100120001-3
10 .HONDURAN-NICARAGUAN DISPUTE STILL DANGEROUS
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4o HAMMARSKJOLD TO VISIT ISRAEL DESPITE BEN-GURION'S
r~~ REBUFFS
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~~ 5~ DETAILS OF MAO TSE-TUNE?S SECRET SPEECH REPORTED
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~~~', 6o CUBA WILL KEEP SOVIET MERCHANT SHIPS AWAY FROM
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~3~ 7~ EL SALVADOR AND POLAND DISCUSS COMMERCIAL AGREE-
! TAL~T~TT
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~~~ 8u KHRUSHCHEV PRESENTS PLAN FOR SOVIET ECONOMIC
REORGANIZATION
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8 May 57 .Current Intelligence Bulletin Page 2
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1. HONDURAN-hTICARAGUAN DISPUTE STILL DANGEROUS
Comment on?
The general feeling in Nicaragua is that
the dispute with Honduras is still dan-
gerous, despite the temporary cease-
fire agreement negotiated by the special
committee of the Organization of Amer-
ican- States (OAS) on 5 Mayo The pub-
licity being given unconfirmed reports
of violations of the cease-fire by both
sides is aggravating the situation and
making more difficult the committee's
efforts to work out a plan for troop with-
drawals acceptable to both sides. The
.
OAS has called on the five countries represented on the spe-
cial committee to provide military personnel to act as border
observers. The American military group arrived in Hon-
duras on 6 May.
Members of the Honduran military junta,
who signed the cease-fire with great reluctance, informed
the. American ambassador early on 6 May that they feared
public reaction to the agreement might lead to an upheaval
and possibly their overthrown
Press reports from Honduras claiming
that Nicaraguan troops had crossed into Honduras near the
Inter-American Highway on 7 May were denied in Nicaragua.
8 May 57 Current Intelligence Bulletin Page 3
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~. HAMMARSKJOLD TO VISIT ISRAEL DESPITE BEN-
GURION'S REBUFFS
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sec a ary general Hammarskjold
plans to visit Israeli prime minister
Ben-Gurion in Jerusalem the latter part
of this week, even though he doubts any
good result will come from the trip. In
a recent exchange of correspondence, the Israeli leader re-
iterated his refusal to discuss the future of the UN Emergency
Force or .implementation of the armistice agreement before
Israel has been advised by Hammarskjold "and the relevant UN
bodies that the implementation by Egypt of its obligations un-
der the charter. of the UN and the decisions of the Security Coun-
cil" was assured..
Hammarskjold believes Ben-Gurion's lat-
est letter proves that the Israelis do not want him to make the
visit but would prefer the refusal to come from the UN rather
than from Tel Aviv. The secretary general is going ahead with
his plans in order to maintain a UN record of readiness to nego-
tiate .
Comment During Hammarskjold's last visit to the
Near East, the Israelis covered the fact
that they had not invited him to Israel by issuing, on the eve
of hls departure from the area, a statement that he would of
course be "welcome:' Other recent reports on the Israeli at-
titude have suggested that Tel Aviv is again engaged in one of
its periodic campaigns to reduce the UNQs prestige and the ef-
fectiveness of its efforts to keep the peace. The present cam-
paign is probably related to the Israelis' fear of further UN
resolutions pressing them to accept the UNE F on their side of
the armistice line.
$ May 57
Current Intelligence Bulletin
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5. DETAILS OF MAO TSE-TUNG'S SECRET
SPEECH REPORTED
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In a secret speec o Fe ruary at t ie
Supreme State Conference, Mao Tse-tong
stressed that current problems arising
etween the Peiping regime and the Chinese
eo le s ou be solved throu h discussions "not b force:'
these problems were said by Mao to include popular hostility
to urban and rural socialization, counterrevolutionary activi-
ties, strikes, other forms of unrest among students and
workers, and demands for freedom of the press and arts.
Noting that 700, 000 people had been liquidated in the agrarian
and other campaigns of 1950-1952, Mao said that violence
"would not now be tolerated by the people:'
Mao called for learning "all that is good"
from all countries without "mechanical copying of experiences:'
He recommended learning "even" from the United States, es-
pecially in the fields of science and technology. Mao dis-
counted the ossibilit of a third world war in the near future.
Comment While Mao's speech remains unpublished,
Chinese .Communist leaders have made
similar .points in authoritative statements, indicating Peiping
is having some of the same problems as the USSR in seek~,ng
to stimulate greater enthusiasm for the regime's program with-
out sacrificing totalitarian controls.
Mao's advice to learn "all that is good" from
all countries is apparently being implemented. The outgoing
counselor of the British embassy in Peiping recently observed
that technical publications from the United States, Britain,
France and Germany are available in increasing numbers in
Communist China,
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6, CUBA WILL KEEP SOVIET MERCHANT SHIPS AWAY
FROM US NAVAL BASE
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The general manager of the Cuban
Sugar Institute has promised the Amer-
ican agricultural attache in Havana
that Soviet merchant ships will not in
the future be scheduled to load sugar at Guantanamo Bay
in the vicinity of the mayor US naval base in southeastern
Cuban
Comment The navy reported on 3 May that a So-
viet merchant ship delayed its departure
after loading sugar at Guantanamo Bay in order to monitor
electronic emissions. Each of three. Soviet -ships loading at
Guantanamo in recent- weeks has experienced an unusual and
unexplained delay.
Almost half of all the ships transporting
the 150,000 tons of Cuban sugar purchased by the USSR in
February have been of Soviet registry During the two pre-
ceding years, only one Soviet ship was involved in shipments
of Cuban sugar to the USSRa
The U5SR has purchased a total of 350,000
Spanish long tons of Cuban sugar at below-market prices dur-
ing 19570 Delivery is to be completed by Julyo
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7. EL SALVADOR AND POLAND DISCUSS
COMMERCIAL AGREEMENT
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Preliminary talks between Salvadoran
and Polish officials resulted in com-
plete accord on a commercial. agreement
under which Salvadoran coffee and cotton
would be exchanged for Polish machinery,
titie s .
El Salvador, which does not maintain
diplomatic relations with any Sina-
Soviet bloc country, has heretofore had only negligible trade
with Poland. No Central American country now has any trade
agreements with the. Soviet bloc.
There has been growing pressure over
the past year from Salvadoran coffee growers to expand the
country's coffee markets to include Soviet bloc countries.
-Coffee makes up about 85 percent of Salvadoran exports, and
many Salvadorans fear that overdependence on the US market
would result in lower prices for their chief export About
half of the 1956-1957 coffee crop went to countries other than
the United States, with West Germany taking substantial quan-
Comment
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8? KHRUSHCHEV PRESENTS PLAN F'JFt SOVIET
ECONOMIC REORGANIZATION
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Comment on?
Khrushchev's proposals to the USSR
Supreme Soviet on 7 May for the reor-
ganization of Soviet industrial adminis-
tration confor:!x~ .an general to his 'theses"
published 30 March 1957a
He proposed, however, retaining more
ministries in Moscow than had previously been indicated,
which suggests that he was premature and overly ambitious
in proposing in his "theses" that all industrial ministries be
abolished. The ministries responsible for producing mili-
tary end items, operating the atomic energy program, pro-
ducing electric power, and constructing transport facilities
.will be retained for planning functions and general technical
control, but Khrushchev proposed that they should be reor-
ganized to divest them of responsibility for direct manage-
ment of their enterprisese
Some other ministries, mainly extractive,
are to be transferred to the jurisdiction of appropriate union
republics and located in cities nearest the principal centers
of their activity. This proximity to production centers is in-
tended to foster efficiency of direction and stimulate local
initiative in the industries concerned.
The remaining industrial and construction
ministries (some 20) are to be abolished. Khrushchev calls
for the creation of 92 economic administrative districts, 68 of
which will be located in the huge, sprawling Russian. republic
(RSFSR), to manage the enterprises of the abolished ministries.
Khrushchev urged that the reorganizat~.on
should be completed during May and June 1957, thus seemingly
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branding Kaganovich's earlier "by winter" estimate as too
conservativeo The speed with which Khrushchev would have
the plan carried out will intensify the confusion and disrup-
tions inherent in any reorganizatii?n as sweeping as this one,
but he probably- feels that a progressive weakening of indus-
trial administration will take lace if the reorganization is
delayed or drawn outo
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