Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
October 25, 2019
Document Release Date: 
October 31, 2019
Sequence Number: 
Case Number: 
Publication Date: 
June 10, 1956
PDF icon CURRENT INTELLIGENCE BULL[15740264].pdf341.75 KB
Approved for Release: 2019/10/21 C03015159 TOP SECRET V; 0 CURRENT INTELLIGENCE BULLETIN 0 10 June 1956 Copy No. 103 JOCUMENT NO. 1.1 :0 CHANGE IN CLASS. 1.:VC:LASSiFIZD CLASS. CHANGED TO: IS NEXT REVIEW DATE AUTH: HR 70-2 OATFtskill REVIEWER: OFFICE OF CURRENT INTELLIGENCE CENTRAL INTELLIGENCE AGENCY TOP SECRET 3.3(h)(2) 3.5(c) Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 01% Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 1 LW ,JLUHL I NIS CONTENTS 1. CHINESE COMMUNIST LANDING PARTY THREATENS VIETNAMESE-HELD ISLAND IN PARACEL GROUP (page 3). 2. RESIGNATION OF KAGANOVICH (page 5). 3. CHINA AND EAST EUROPEAN SATELLITES PUT ECONOMIC PRESSURE ON JAPAN (page 6)0 4. NEW BURMESE CABINET (page 7). 5. BRITAIN MAY RENEW EFFORTS TOWARD POLITICAL SETTLEMENT FOR CYPRUS (page 8). 6. ARGENTINE REBELLION QUELLED 10 June 56 THE ARAB-ISRAELI SITUATION (page 10) (page 9). Current Intelligence Bulletin Page 2 7'OP SECRET Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 7.5751ritUE Noie Nue 1. CHINESE COMMUNIST LANDING PARTY THREATENS VIETNAMESE HELD ISLAND IN PARACEL GROUP According to reports from a small Viet- namese weather unit on Pattle Island in the Paracel Group, just below the 17th Parallel in the South China Sea, Chi- nese Communist troops on 10 June landed on Robert Island, three miles away. The weather unit, fear- ing for the safety of the 20-man garrison, asked Saigon for permission to evacuate. South Vietnamese foreign minister Mau; however, is urging immediate reinforcement of the garrison, 0 200 MILES � �,4) NORTH L... VIETNAM r. I.\ t5.1 ) ma. � � -4 I 4 CAMBODIA Lti 0 10 JUNE 1956 CHINA PARACEL MIDDLE GROUP ,r-=----- S�UTH :..., SOUTH SAND ROBERT � ' 7:-.:��:::;N"----- ROCKY \ DUNCAN TRITON SOUTH CHINA SEA TAIW0AN 10 June 56 Current Intelligence Bulletin Page 3 SECRET Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 aritiPLEM Nue *id and President Diem is anxious to determine whether this Chinese Communist "aggression" would result in "action under the SEATO treaty." Comment The Paracel Group, which lies about 200 miles southeast of Hainan Island, is claimed by South Vietnam, Communist China and Nation- alist China. Though strategically located astride the main shipping lane through the South China Sea, the islands are of little potential military value. None is large enough for airfields, and the islands' waters are not suitable for naval bases. If Chinese Communist troops are actually involved in the occupation of Robert Island, they may have been sent there in anticipation of a possible Chinese Nation- alist move in the Paracels, as well as to establish their "sovereignty" overtly. Two Nationalist destroyer escorts, which are now visiting the Spratly Islands, 500 miles to the south, to give substance to Nationalist claims of sovereignty over the Spratlys, may be ordered to the Paracels to dis- lodge the Communists there, according to reports from Taipei on 7 June. The Communist landing party may have involved civilians rather than troops, however. Some 200 Communist workers have been processing guano deposits on one or two islands in the Paracels for the past nine months. South Vietnam can be expected to offer token resistance to any Communist effort to dislodge the Pat- tie garrison. Saigon would undoubtedly utilize the incident to support its claims that current Communist "reasonable- ness" and professed desires for a peaceful reunification of Vietnam are essentially a facade hiding aggressive intentions. 10 June 56 Current Intelligence Bulletin Page 4 Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 Nair 2. RESIGNATION OF KAGANOVICH The resignation of Lazar M. Kaganovich as chairman of the State Committee on Labor and Wages continues the pattern of relieving members of the party presid- ium and first deputy premiers from direct administrative responsibilities. Of the five first deputy premiers--Kaga- novich, Mikoyan, Molotov, Pervukhin, and Saburov�only Saburov retains a specific post, that of chairman of the State Commission for Current Planning. This policy is probably intended to permit top members of the party hierarchy to de- vote themselves to policy formulation and special problems. Kaganovich was named chairman of the State Committee on Labor and Wages when that body was cre- ated in May 1955. As the USSR's foremost economic trouble- shooter, with long experience in transport and heavy industry, Kaganovich apparently was charged with increasing labor pro- ductivity by revising labor norms and wage scales to conform with technological advances and a more rational distribution of manpower in industry and agriculture. Although Kaganovich was one of Stalin's most trusted henchmen and, like Molotov, has been rumored to have opposed the recent stepping up of the anti-Stalin campaign, he does not appear to have resigned in disfavor. Kaganovich 's successor, Alexander P. Volkov, appears to be a protege of Khrushchev, since he rose through the party ranks to become a secretary of the Moscow Oblast party committee under Khrushchev in 1950 and was trans- ferred to government work as chairman of the executive com- mittee of the Moscow Oblast soviet in 1952. He was not elected to the party central committee until February 1956 at the 20th Party Congress. (Concurred in by ORR) 10 June 56 Current Intelligence Bulletin Page 5 -CONFIDENTIAL- Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 Niue10? SECKEI. 3. CHINA AND EAST EUROPEAN SATELLITES PUT ECONOMIC PRESSURE ON JAPAN he European Satellites are co-operating with Com- munist China to exercise economic pressure on the Japanese. Japan is currently running an unfavor= able balance of trade with China exceeding $50,0009000. East European Sate lites have agreed not to pay for imports f mei Japan with foreign exchange which Japan could use to reduce its debt to China. By this strategy and the refusal to ac- cept additional commodities which Japan has offered to China, Peiping is attempting to prevent Japan from paying its debt. Peiping probably hopes to use Japan's increasing indebtedness to force it to establish official economic relations with Commu- nist China, a first step toward diplomatic recognition. (Prepared jointly with ORR) 10 June 56 Current Intelligence Bulletin TOP SECRET Approved for Release: 2019/10/21 C03015159 Page 6 Approved for Release: 2019/10/21 C03015159 Nr1_,CICET r. NNW 4. NEW BURMESE CABINET he make=up of the new Burmese cabinet eaded by U Ba .Swe reveals that the So- ialist Party, which heretofore has done ost of its ruling from behind the scenes, as greatly eniia�its direct control of the Burmese gov- ernment. It also suggests that the present government lead- ers do not actually want U Nu to return to the premiership after a year's retirement. Not only have the Socialists increased their representation in the cabinet, but those ministers who are close- ly identified with Nu have been relegated to relatively unimpor- tant posts. The retention of Foreign Minister Hkun Hkio, a Shan, is a sop to the ethnic minorities, as foreign policy will undoubtedly continue to be formulated by the Socialist hierarchy, possibly with the advice of U Nu. Premier Ba Swe, who is also secretary gen- eral of the Socialists, is retaining the portfolio of defense min- ister and assuming control of national planning. His chief rival in the Socialist Party, U Kyaw Nyein, will serve as min- ister of the national economy and as a deputy premier, and their apparently overlapping responsibilities could produce serious friction. The other posts held by Socialists appear to be about equally divided between the supporters of the two leaders. 10 June 56 Current Intelligence Bulletin deRET Approved for Release: 2019/10/21 C03015159 Page.? Approved for Release: 2019/10/21 C03015159 L'Yis."(AliK1 NI" %Of 5. BRITAIN MAY RENEW EFFORTS TOWARD POLITICAL SETTLEMENT FOR CYPRUS Amid increasing public criticism, the British government is preparing a new attempt to get a political settlement re- garding Cyprus while continuing its ef- orts to pacify the island, according to the American em- bassy in London. In current British policy discussions, the Colonial Office evidently is proposing resumption of negotiations with Greece and Turkey on the basis of a "liberal" constitution, to be drafted by a special British committee, and a new formula that might go as far as set- ting a date for the exercise of Cypriot self-determination. Archbishop Makarios would not be brought into the negotia- tions until "a later stage." The embassy concludes that the ground is laid for a difficult and embarrassing British policy shift, and that at least some high officials are now prepared to contem- plate eventual British withdrawal from political control of the colony. Comment This is the clearest indication yet received that the British government has lost confi- dence in the purely military approach to the Cyprus problem it adopted on exiling Makarios on 9 March. The Greek govern- ment would probably insist that Makarios participate in any negotiations from the outset, and many British observers be- lieve it is too late to obtain a political settlement short of granting outright union of Cyprus with Greece. 10 June 56 Current Intelligence Bulletin Page 8 9 Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 SECKEI. 6. ARGENTINE REBELLION QUELLED The Argentine provisional govern- ment's drastic measures to put down the brief rebellion of "Peronista= Nationalist" elements on 9-10 June demonstrated a determination to deal swiftly and severely with any armed op- position. Further violence could result, however, if the regime prolongs rigorous enforcement of the severe martial law regulations it has announced and fails to consider some of the complaints stated in the rebel communiqu�There is considerable dissatisfaction among influential army groups over the continuing atmosphere of political turmoil. The rebels, reportedly led by retired generals Raul Tanco and Juan Jose Valle, included parts of army units in Buenos Aires and La Plata as well as retired military and Peronista civilians. The government also charged that Communist elements participated. General Valle was reported in mid-May planning a rebellion�possibly in two stages and including high army officers on active duty--which had objectives sim- ilar to those cited in the rebel manifesto. The manifesto called for immediate release of all political and trade union prisoners, returning control of the trade unions to the workers, measures to fight "the enormous price increases," and general elections within 180 days with no political party excluded. Political tension in Argentina will proba- bly increase with the approach of 16 June, the anniversary of the first phase of the anti-Peron revolution of 1955, which ended in overthrow of the government in September. 10 June 56 Current Intelligence Bulletin Page 9 -SECRET Approved for Release: 2019/10/21 C03015159 Approved for Release: 2019/10/21 C03015159 1-177-6644.C...1 vim" 'ewe THE ARAB-ISRAELI SITUATION (Information as of 17002 10 June) UN truce observers on the Israeli-Syrian border have reported that the Israelis appear to be constructing tactical defensive positions, probably bunkers, in the demilitar- ized zone near Banat Yacov. The observers, who have hereto- fore had free access to the area where the construction is taking place, have been forcibly prevented from approaching the area on two occasions since 7 June. The chairman of the Israeli-Syrian mixed armistice commission believes the Israelis eventually will allow an investigation, but that they will not heed a UN request to . demolish the construction. The chairman noted that the Israeli attitude toward the UN truce teams has stiffened since the 4 June Security Council resolution, which produced a very unfavorable reaction in Israel. The American military attache in Caro be� lieves that a previous report of cancellation of army leaves begin- ning 5 June is true, although the Egyptian army foreign liaison officer has said it is only a rumor. The attach�urther believes, however, that the cancellation is connected with the political cele- brations which begin 18 June and culminate in the plebiscite on 23 June, 10 June 56 Current Intelligence Bulletin Page 10 TOP SECRET Approved for Release: 2019/10/21 C03015159