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October 25, 2019
Document Release Date: 
October 31, 2019
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Publication Date: 
April 1, 1956
PDF icon CURRENT INTELLIGENCE BULL[15740137].pdf321.18 KB
Appr oed 0 CURRENT INTELLIGENCE BULLETIN for Release: 2019/10/21 CO2995591 TO RET 1 April 1956 ,47/4 3.5(c) .,0/1, 3.3(h)(2) DOCUMENT NO. NO CHANGE IN CLASS. )ig I I DECLASSIFIED CLASS. CHANGED TO: TS S 100 NEXT REVIEW DATE: AUTH: 0- DA* 0 � REVIEWER - OFFICE OF CURRENT INTELLIGENCE CENTRAL INTELLIGENCE AGENCY Approved for Release: 2019/10/21 c 0 2W/7, 07/1074, Approved for Release: 2019/10/21 CO2995591 4001* Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 CONTENTS MIKOYAN DISCUSSES SOVIET ECONOMIC PROBLEMS (page 3). 2, CAMBODIAN CROWN PRINCE'S POWER SEEN THREATENED (page 4). 3. GREEK OPPOSITION SEEKS ALL-PARTY GOVERNMENT (page 5). 4. BRITAIN PREPARED TO GIVE SINGAPORE QUALIFIED SELF-GOVERNMENT page 6). 5. EAST GERMANY OFFERS AUSTRIAN INDUSTRY ROLE IN CHINA CONTRACT age 7). 1 Apr 56 THE ARAB-ISRAELI SITUATION (page 8) Current Intelligence Bulletin Page 2 TOP SECRET Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 CON1i1DEIV IIAL g 1. 1VIIKOYAN DISCUSSES SOVIET ECONOMIC PROBLEMS In talks with Indian planning officials and press representatives, Soviet first deputy premier Mikoyan is re- ported to have discussed Soviet eco- nomic problems and offered objective advice on Indian problems. In discussing agriculture, Mikoyan stressed the post-1953 Soviet policy of providing higher incomes for farmers. He advised the Indians against heavy mechanization of agriculture, hitherto a cardinal point in Soviet farm policy, because of India's large sur- plus of manpower. Mikoyan said the minimum wage for urban workers would be raised this year by nearly one third, con- firming indications that the coming wage reform will attempt to reduce the extreme spread of the present system, as well as to sharpen its incentive features. Assistance to the lowest- income group is particularly necessary at this time, when the practice of annual retail price cuts has given way to unpubli- cized increases in state prices of a number of goods. In disclaiming Soviet perfection and deny- ing that Soviet methods are universally applicable, Mikoyan appears to have impressed his hearers with his frankness, his avoidance of dogma and the USSR's willingness to grant that there are "many roads to socialism." (Concurred in by ORR) 1 Apr 56 Current Intelligence Bulletin Page 3 1."'F-A Arum 1..1 A Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 VT" .*10� 2. CAMBODIAN CROWN PRINCE'S POWER SEEN THREATENED Dap Chhuon, a powerful provincial com- mander in Cambodia, in a confidential letter, informed Ambassador McClintock he was "awaiting a favorable opportunity o Irustrate me policy" of the present Cambodian government and "declare a diplomatic rupture with Communist countries." McClintock, who describes Chhuon as a key figure in Cambodia, comments that he regards the letter as evidence that Sihanouk's power is being seriously threatened for the first time. The ambassador says there is other evi- dence that, for varying reasons, certain party stalwarts are now challenging Sihanouk. Comment Dap Chhuon, who led a rebel force when the French were in control, is now a colonel in the royal army and controls the palace guard. He has a rep- utation for both ruthlessness and probity and has hitherto been regarded as devoted to Sihanouk and the royal family. The explanation given for Sihanouk's most recent resignation from the premiership, which referred to pressures from Thailand, South Vietnam and the United States, was apparently designed to rally support for his neutralism. He is believed to have widespread popular support but has prob- ably alienated some powerful politicians--not only by his neu- tralism but by his one-man rule and political maneuvering. 1 Apr 56 Current Intelligence Bulletin Page 4 Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 CRE 3, GREEK OPPOSITION SEEKS ALL-PARTY GOVERNMENT J. Ile new lifeelt. piud.IneuL WIllell LAM- venes on 2 April will probably bog down immediately in a dispute over whether Prime Minister Karamanlis should form an all-party government to demonstrate na- tional solidarity on the Cyprus issue. Karamanlis report- edly has invited only Sophocles Venizelos Liberal Demo- cratic Union, the largest opposition party, to participate with his National Radical Union in the government, but Venizelos has declined on the ground that all parties should be invited. Venizelos is reported, however, to be impressed by the attitude of the Communists, who appear ready to accept almost any terms for parliamentary co- operation with the center parties. Spokesmen for the Communist-front EDA, which has 18 deputies and perhaps 26 leftist allies in the 300-seat parliament, have offered to adopt "a most reasonable and moderate" program, A refusal by Karamanlis to widen his present government is likely to bring about united opposition from the center and the left and persistent efforts to whittle away his parliamentary margin of 30 seats. The parliamentary session is also likely to degenerate quickly into demagogic competition for primacy in devotion to the cause of Cyprus, thereby inviting strong reactions from Britain and Turkey. 1 Apr 56 Current Intelligence Bulletin Page 5 07me-fro rifr Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 CAE ,10 4. BRITAIN PREPARED TO GIVE SINGAPORE QUALIFIED SELF-GOVERNMENT The British Colonial Office has indicated that in the negotiations beginning 23 April Britain will concede as much as possible to Singapore chief minister Marshall's expected demand for virtual independence within the Common- wealth without prejudicing essential British strategic require- ments. According to the American embassy in London, Britain will insist that the Singapore governor have continued access to local security information and have un- qualified authority to "step in" whenever he believes the situ- ation warrants. Britain will also insist on retaining control of defense and foreign relations. On the other hand, the British would, if necessary, agree to a fully elective execu- tive council and an enlarged legislative council, so Marshall can return home with what he can call "self-government." In any event the British feel they cannot withdraw completely from Singapore, for fear that the colony would almost automatically become a Communist outpost. Comment Britain's immediate concern is apparently to avoid a collapse of the forthcoming nego- tiations that might force the reimposition of direct British rule in Singapore. The British are likely to have difficulty, however, in persuading Marshall that their proposals are not a retreat from their previous moral commitment to him to grant Singapore complete sell-government in 1956. 1 Apr 56 Current Intelligence Bulletin Page 6 VT Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 7,4 5. EAST GERMANY OFFERS AUSTRIAN INDUSTRY ROLE IN CHINA CONTRACTS Five Austrian industrialists and business- men, visiting Leipzig on 27 February, received proposals from East German of- ficials that Austria assist East Germany In fulfilling large industrial cOntracts, mainly -with Communist China. the East Germans said their country could not spare enough industrial capacity to produce all the goods on order. The Austrians said they would check with government officials. One of the businessmen reportedly feels the proposed orders would guarantee a high level of Austrian industrial activity for some years. The East Germans made clear that Austrian deliveries would be handled through Austro-East German clear- ing facilities. East Germanys orders reportedly include com- plete power, chemical, iron and steel, and other plants, elec- trical goods, power lines, and mining equipment. Comment Many Austrian businessmen have looked forward to an expansion of Orbit trade. While the Austrian government is sympathetic, it has declared its intention to continue COCOM controls. (Concurred in by ORR) 1 Apr 56 Current Intelligence Bulletin Page 7 Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 \SO THE ARAB-ISRAELI SITUATION (Information as of 1700, - 1 April) Egypt has called for an urgent meeting of the Egyptian-Israeli Mixed Armistice Commission over a charge that an Israeli patrol killed two Arabs and captured an Arab child in the Gaza area. Israel claims that Jordanian in- filtrators ambushed a police car and wounded a civilian. (Press) The American ambassador in Israel be- lieves the position of the leftist coalition party members on seeking arms from the USSR has been seriously undermined by a recent Izvestia article mentioning "war hysteria in Israel" and "open threats" of Israeli leaders to initiate military opera- tions against the Arabs. 3e.: arrangements are being made for the return to �tbIoc of most of the bloc's MIG-15 and YAK experts and technicians. As in the case of the 45 IL-28's, this suggests that all of the 80 MIG-15 jet fighters and 25 YAK training planes initially ordered by Egypt have been delivered and assembled. Egypt is, however, nego- tiating for at least 40 more MiG's and 20 more jet bomber air- craft as part of its "extended" requirements for Soviet bloc military eauipment the Syrian battalion opposite the site of the Israeli Jordan River diversion operations has standing orders to fire on anyone entering the demilitarized zone in its sector. In addition, it has specific instructions to open fire if Israel re- sumes we.w.i, ri itha dixrprqinn eanal at Banat Yacov bridge in the zone. Syrian prime ministefGh�dIdAibaa- dor Moose on 28 March that Syria would consider it had been 1 Apr 56 Current Intelligence Bulletin Page 8 -71771-5TritE-F Approved for Release: 2019/10/21 CO2995591 Approved for Release: 2019/10/21 CO2995591 NM/CET 314 attacked if Israel resumed work on the Jordan River diversion ranrtni 1iii ticrtinrenc. rvr +hem 1TAT Tv. Q 'frt. ����,vote. The American ambassador in Jordan be- lieves that not only may Jordan soon be lost to the West, but that its entry into the Egyptian-Syrian-Saudi camp can influence the future of Lebanon and as well as Iraq's adherence to the Baghdad pact. The ambassador also suggests that King Hussain may be dethroned by the end of the year. The Jordanian National Guard has received 1,000 Czech submachine guns from Syria as the first result of the recent border_meetings between .Tordanian and Syrian mili- tary leaders, troops from neighboring Arab countries would be permitted free transit across Jordan in the event of hostilities have not been con- firmed. Recently mobilized Israeli vehicles and per- sonnel may have been dispatched as reinforcements to the North- ern Command, The gradual mobilization in Israel may have brought Israeli forces, including the paramilitary Nahal groups, to ap- proximately 120,000 by the end of March. Approximately 19 air crew members are to join Colonel Weizmann, commander of Israel's fighter wing, who is in France in connection with the forthcoming delivery of Mvstere jet fighters to Israel, the two Israeli destroyers purchased from Britain are tenta- tively scheduled to depart British waters for Israel on 8 June, The two destroyers purchased from Britain by Egypt are estimated to be as much as three and one half months behind the Israeli ships in completing overhaul. 1 Apr 56 Current Intelligence Bulletin Page 9 3.5(c) _ Approved for Release: 2019/10/21 CO2995591