CURRENT INTELLIGENCE BULLETIN - 1956/04/26

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02995609
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: April 26, 1956

, Approved for Release: 2019/10/21 CO2995609
CURRENT
INTELLIGENCE
BULLETIN
715P-SEC-R-E-T--
3.3(h)(2)
26 April 1956 3.5(c) ,A
Copy No.
103
Eiv )CUMENT No. _
NO CHANGE IN CLASS.
' DECLASSIFIED
GLASS. CHANCLD 10: 13 .;.;
NiiX1 REVIEW C.)AiE: -
AU I N Ni 7
REVIEWER
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. KHRUSHCHEV ATTACKS AERIAL INSPECTION AND
QUESTIONS US INTENTIONS (page 3).
2. LABORITE REBUFF TO SOVIET LEADERS
(page 5).
3. FRANCE SEEN WILLING TO NEUTRALIZE GERMA
RETURN FOR DISARMAMENT AGREEMENT
(page 6).
4.
BAGHDAD PACT WARNING TO KABUL LIKELY TO
STRENGTHEN AFGHAN TIES WITH USSR (
) (page 7).
5. NEHRU REPORTEDLY URGES CEYLON TO END BRITISH
BASE RIGHTS ( ) (page 8).
6. GUATEMALAN PRESIDENT FEARS COMMUNIST DOMINA-
TION OF HONDURAS page 9).
7. JAPAN-PHILIPPINE REPARATIONS AGREEMEN11
(page 10).
8. STRIKE SITUATION DETERIORATING IN NORTHERN SPAIN
page 11).
26 Apr 56
* * * *
THE ARAB-ISRAELI SITUATION
page 12)
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SEC
1. KHRUSHCHEV ATTACKS AERIAL INSPECTION AND
QUESTIONS US INTENTIONS
In a conversation with Governor Stassen
on 24 April in London, Khrushchev made
a vigorous attack on the American aerial
inspection proposal and stated that the
ade the work of the UN Disarmament Sub-
committee hopeless. Both Bulganin and Khrushchev ex-
pressed doubt that the United States really had any intention
of reaching a disarmament agreement.
Khrushchev said the Soviet leaders could
not understand why the United States insisted on aerial in-
spection and that they had refrained from flatly and openly
rejecting it only because of their regard for President Eisen-
hower. He added that Marshal Zhukov was also against the
proposal. The Soviet party chief insisted that the USSR did
not wish photographs of the United States or of any other na-
tion and that the United States should not try to look in every-
body's bedroom and garden or treat the USSR the way Guate-
mala had been handled.
After suggesting that the time did not seem
ripe for disarmament, Khrushchev asked if the United States
would reduce its armed forces if the USSR would cut it forces
by 1,000,000 men and make a corresponding reduction in arm-
aments. In reply to Stassen's question, he said no inspection
of such reductions would be needed.
Khrushchev also declared that the USSR
was ready to make a beginning by reducing its armed forces
in Germany without waiting for a solution of the German ques-
tion.
Comment In talks with both British government lead-
ers and Labor Party chiefs, the Soviet
leaders have made the American aerial inspection proposal
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their chief target. They have made no effort to resolve
differences between the Soviet and Western approaches to
disarmament and have given no sign of any serious interest
in an arms agreement.
Khrushchev's query regarding United
States willingness to match a Soviet force reduction suggests
that the USSR may soon issue a public challenge to the United
States along these lines. Moscow may also attempt to place
the Western powers on the defensive by making a unilateral
reduction in its forces in East Germany� The Soviet disarm-
ament proposal of 27 March called upon the four powers to re-
duce their forces in Germany "to a figure to be determined
by each of them at its own discretion."
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LAC"! 11 1,1517,717-1-1-J1L-1.4--_
2. LABORITE REBUFF TO SOVIET LEADERS
The Soviet leaders' hopes of wooing
British Laborites have obviously
foundered, the American embassy
in London concludes. At the Labor
Party dinner for Bulganin and Khrushchev on 23 April,
Khrushchev's belligerent speech evoked general hostility.
Party leader Hugh Gaitskell and left-wing spokesman
Aneurin Bevan presented a united front in pressing the
guests to release imprisoned Social Democrats and trade
unionists in Communist countries. Khrushchev's dis-
claimer of responsibility for actions by the Satellites
evoked hilarious laughter.
Khrushchev was overheard to remark,
"I found it much easier to talk to the Conservatives than
to the British Labor Party."
Although Bulganin informally asked
Labor leader Gaitskell to visit Moscow, no formal invita-
tion for an official Labor delegation was extended. The
embassy believes Labor's rebuff, in addition to strengthen-
ing Eden's hand in his concluding talks with the Russians,
may cause Moscow to change its tactics toward Western
European Socialists. The embassy also believes Khru-
shchev's performance at the dinner will have a considerable
impact on Socialist leaders in Western Europe.
In the opinion of USIS in -London, only
some dramatic twist at the end of the visit could reverse
the Russians' unfavorable impact on the British public.
Comment Khrushchev's performance, which has
widely offended the British public, should
virtually eliminate any expectations the public may have had
for a real change in basic Soviet objectives under the collec-
tive leadership.
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3. FRANCE SEEN WILLING TO NEUTRALIZE GERMANY
IN RETURN FOR DISARMAMENT AGREEMENT
Socialist leaders now heading the French
government are prepared to accept a re-
unified, neutralized Germany which would
have no exclusive ties to the West, in the
mbassador Dillon. He believes that the
Mollet government would link such a status for Germany to
a general disarmament agreement with the USSR which would
reduce the forces of the US, USSR, and Communist China to
a figure between 1,000,000 and 1,500,000 men and leave France
and Britain with 650,000 each.
Dillon points out that Premier Mollet ad-
mits the French government's disarmament policy is now based
on the views of Jules Moch, French delegate to the UN Disarm-
ament Commission, who has always favored severe restric-
tions on German rearmament.
Comment 1Chrushchev's surliness on his British
tour and his rigid, stand on disarmament
in talks with British officials will probably shake French
Socialist hopes for a disarmament agreement with the USSR.
Nevertheless, the general French yearning for a detente and
for some way to avoid actually rearming Germany lends great
appeal to such a solution.
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4. BAGHDAD PACT WARNING TO KABUL LIKELY TO
STRENGTHEN AFGHAN TIES WITH USSR
the Baghdad
pact council meeting in Tehran de-
Zcided to support the Durand Line as
in erna lona oundary between Pakistan and Afghan-
istan and would consider any Afghan aggression against
Pakistan in the Pushtoonistan area as aggression against
all the pact members,
The ambassador was told to inform
Afghanistan that the decision had not been made public be-
cause Pakistan was desirous of "maintaining the friendly
relations which the pact countries were fostering with
Afghanistan."
Comment The decision ascribed to the pact
council is stronger than the SEATO
council's declaration of 8 March supporting the Durand
Line and it is almost certain to enrage the Afghans. The
Afghan foreign minister, in advance of the Tehran meet-
ing, had reportedly expressed understanding of the pact's
aims to the Iraqis and asked them not to allow the Push-
toonistan issue to be raised. Pakistan's condescension in
not insisting that the decision be made public will add to
Kabul's bitterness.
The Tehran decision will further re-
duce the chances of a rapprochement at a meeting between
Pakistani president Mirza and Afghan king Zahir Shah which
is tentatively scheduled for June. It will probably also re-
sult in Kabul's co-operating more closely with the USSR in
its moves against the Baghdad pact and SEATO.
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5. NEHRU REPORTEDLY URGES CEYLON TO END
BRITISH BASE RIGHTS
Indian prime minister Nehru urged
Ceylonese prime minister. Bandara-
naike
to stand fast in his position
that British mer bases inLC.evionmust be abandoned,
In return, Nehru
reportedly offered to repatriate a considerable number of
Indians whom the Ceylonese government has been trying
to expel. He also offered to support a loan for Ceylon if
that country suffered finapeIaLdiffilties as a result of
closing down the bases.
Comment Despite his association with the Com-
monwealth, Nehru may well have made
such a plea in an effort to expand the area of Asian neu-
tralism and to reduce the remaining elements of "colonial-
ism" in South Asia. Simultaneously, however, he was
probably aware of the opportunity that might be provided
for India to assume responsibility for the defense of Ceylon,
mtich as it has done in Sikkim, Nepal, and Bhutan, and to
seek rights for itself in former British base areas.
Since many Ceylonese fear just such an
Indian maneuver, such an initiative from Nehru, coming
within a fortnight after the Ceylonese elections, might delay,
rather than hasten, the government's decision on the bases.
At the moment, however, it appears likely that Bandaranaike
will eventually cancel British base rights but retain Ceylon's
membership in the Commonwealth for the sake of its eco-
nomic and defense advantages and to avoid being isolated in
the Indian sphere of influence,
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6. GUATEMALAN PRESIDENT FEARS COMMUNIST
DOMINATION OF HONDURAS
Guatemalan president Castillo, in a
conversation with American ambassador
Sparks on 23 April, showed "genuine
fear" of possible serious political de-
velopments in Honduras. He said that
aIthouth Honduran Liberal Party leader Villeda Morales
is not a Communist, his accession to the presidency would
lead to a Communist-dominated government in Honduras.
Castillo said he will meet with Honduran
chief of state Lozano and ex-dictator Tiburcio Carias at their
request, probably on 30 April.
Comment
The political situation in Honduras is dis-
turbed but probably not so ominous as
Castillo sees it.
Lozano is encountering opposition from
both the right and the left in his efforts to line up support for
his election as head of a "national union" government after
the restoration of constitutional government, probably late
this year. On the right are followers of Carias and on the
left the radical faction of the Liberal Party headed by Villeda
Morales. Villeda, who has a record of Communist associa-
tions, received 48 percent of the votes for president in the
1954 elections. Since that time, however, many prominent
Liberals have deserted Villeda in favor of Lozano.
Lozano, who has dictatorial powers and
enjoys the loyalty of the army, is expected to make every ef-
fort to prevent Villeda from coming to power. He would pre-
fer, however, to achieve his goal by democratic methods.
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Li' a. 'I AL -IL JL1.11-14. V AL AL 114
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7 . JAPAN-PHILIPPINE REPARATIONS AGREEMENT
Comment on:
�The announcement by Japanese
negotiator Aiichiro Fujiyama that
complete agreement has been reached
with the Philippines on reparations of
$800,000,000 for World War II damages means the removal
of a major obstacle to Japanese trade expansion in South-
east Asia. Parliaments of both countries are expected to
ratify the agreement, which provides for $550,000,000 direct
reparations, mostly capital goods and services, and for
$250,000,000 in long-term loans and investments over a
period of about 20 years.
These Japanese reparations will be a
major source of aid for the future economic development of
�the Philippines. At the same time,Philippine restrictions
against Japan will probably be eased as a result of this agree-
ment, and trade will increase substantially between the two
nations. Such a development should help to offset the loss by
Japan of its prewar China market.
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CONFIDENTIAL
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dik tAJlvrilJl!d!liiLL"
8. STRIKE SITUATION DETERIORATING IN NORTHERN SPAIN
Comment on:
workers,
ments has
The strikes in the town of Bilbao in north-
ern Spain have become more serious as a
result of both the government's tougher at-
titude and the workers' determination to
carry on the fight for better wages and work-
ing conditions, the American consul in
Bilbao reports The local authorities' ac-
tion in closing plants and dismissing the
employees has now affected nearly 25,000
The government's disapproval of recent wage agree-
aroused additional worker antagonism.
The increase in security precautions at
the closed plants will not preclude incidents, particularly since
another strike is rumored brewing at Pamplona, where the work-
ers feel they were tricked into returning to their jobs. The gov-
ernment's apprehension that strikes and demonstrations may
spread is indicated by General Franco's speech of 24 April, which
assailed critics of his regime and declared that the Falange
"would rise again" as it did during the civil war if it became
necessary. (CONFIDENTIAL)
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 25 April)
UN secretary general Hammarskjold is
expected to announce on 26 or 27 April that new arrangements
regarding the activities of UN truce. observers have been con-
cluded with Egypt and Israel, according to UN officials in New
York. The officials said these arrangements merely reaffirm
existing rights, but will permit greater freedom of movement
and patrolling by the observers. Hammarskjold will also ask
for 20 more observers to be provided by Sweden, Norway,
Canada, Australia and New Zealand. UN officials said that
Hammarskjold, in view of strong Israeli feeling, was planning
to ask Egypt to discuss Egyptian restrictions on the Suez Canal
on a "personal basis." Egypt has previously maintained that
questions other than those connected with an immediate cease-
fire were beyond the scone of HammarskinkM misginn
has informed
the American embassy in Cairo that considerable friction in the
Revolutionary Command Council (RCC) has arisen as a result of
Prime Minister Nasr's virtually unreserved co-operation with
the Hammarskjold mission and his failure to work out an agreed
position with his RCC colleagues beforehand.
that Hammarskjold, because of this reaction, wiii ima .Nasr less
amenable when he revisits Cairo during the entirqp a his mission.
Lebanon has announced that it has accepted
"in principle" UN secretary general Hammarskjoldis proposals
on the implementation of the Security Council resolution concern-
ing the relaxation of tension betw 1.
Hammarskjold is now in Jordan.
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Lebanon would try to remain neutral in an Arab-Israeli war
but that he would work to have it replaced to reassure the
Syrians of the sincerity of Lebanese intentions
Yafi told Quwatli that Lebanon
would not sit idly by in the event of war and would follow the
path of the other Arab nations. A Lebanese-Syrian military
pact has been under intermittent discussion for the past five
months.
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