CURRENT INTELLIGENCE BULLETIN - 1956/07/04

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Document Number (FOIA) /ESDN (CREST): 
03015174
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RIPPUB
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U
Document Page Count: 
11
Document Creation Date: 
October 25, 2019
Document Release Date: 
October 31, 2019
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Case Number: 
Publication Date: 
July 4, 1956
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PDF icon CURRENT INTELLIGENCE BULL[15742018].pdf333.96 KB
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�Approved for Release: 2019/10/23 C0 TOP SECRET 307 41/47 3.3(h)(2 3.5(c) CURRENT INTELLIGENCE BULLETIN 4 July 1956 Copy No. 105 , DOCUMENT NO. NO CHANGE IN CLAS ! DECLASSIFIED CLASS. CHANGED TO: TS S C NEXT REVIEW DATE: ,A3u' A;,11:1744iHEVIEwER OFFICE OF CURRENT INTELLIGENCE CENTRAL INTELLIGENCE AGENCY 00' TOP SECRET- Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 AL %we AO 8..4 lo11.� CONTENTS 1. SYRIA RECOGNIZES COMMUNIST CHINA (page 3). 2. YUGOSLAVIA TAKES SOVIET BLOC LINE ON POZNAN OUTBREAK (page 4). 3, GREEK FOREIGN MINISTER COMMENTS ON SHEPILOV'S VISIT (page 5). 4. rMt'NI'S RELATIONS WITH THE COMMUNIST (page 6). 5. FULFILLMENT OF POLISH-BURMESE TRADE AGREEMENT THREATENED page 7). 6. INDONESIA REPORTED DISSATISFIED WITH DELAY IN EAST GERMAN CONSTRUCTION OF SUGAR WLI (page 8). 7. YEMENI-SOVIET AID AGREEMENT (page 9). * * * * THE ARAB-ISRAELI SITUATION (paie 10) 4 July 56 Current Intelligence Bulletin Page 2 --T-OP-SEGRE-T Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 CONFIDENTIAL 1 SYRIA RECOGNIZES COMMUNIST CHINA Syria's recognition of Communist China on 2 July reflects strong anti-Western sentiment and is an expression of Syria's antagonism toward what it considers the "pro-Israeli, pro-Baghdad pact" policy of the United States. It is also an attempt to underscore Syria's endorsement of Egypt's policy of "independence." Egypt has been campaigning to get other Arab states to follow it in its � recognition of Peiping on 16 May. A high Foreign Ministry official told the American embassy in Damascus prior to the visit of Soviet foreign minister Shepilov that Syria did not expect to receive anything concrete as a result of the visit, but if it did, recog- nition of Communist China would be an "appropriate, easy, and inexpensive" quid pro quo. 4 July 56 Current Intelligence Bulletin Page 3 -09N-F-IDENTI1L Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 �COM TDENT1A Nov Nolo 2. YUGOSLAVIA TAKES SOVIET BLOC LINE ON POZNAN OUTBREAK Comment on: The Yugoslav press attack on the Poz- nan rioters as "enemies of democratic socialist Poland" is a measure of the extent to which Yugoslavia is aligning itself with the Soviet bloc. Editorial com- ment directs the blame primarily toward "reactionary" forces. The Yugoslav treat- ment adds the warning that Stalinist ele- ments may be strengthened as a result and "democratization" of the country retarded. Borba, the leading Yugoslav newspaper, calls the outbreaks a "reactionary and destructive gesture which will probably have repercussions beyond the Polish frontiers." According to another commentary, the effective counteraction "shows how unrealistic all plans to hamper the true socialist development of Poland are." Three years ago Yugoslav vice president Edvard Kardelj praised the East German demonstration and the Czech currency riots of June 1953 as workers' actions with- out parallel "except in the struggle of the Yugoslav working class against Soviet pressure' He welcomed them as a pro- test against the stagnant "state-capitalist" relations forced on the workers by the Stalinist Soviet system. 4 July 56 Current Intelligence Bulletin Page 4 CONFIDENT-1217E-- Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 3. GREEK FOREIGN MINISTER COMMENTS ON SHEPILOV'S VISIT Greek foreign minister Averoff told the American ambassador in Athens that Soviet foreign minister Shepilov im- pressed Greek officials as "astute, flex- eana in gent" and that he was "sweetly reasonable and disarming" during the lengthy conversations. Shepilov indicated that Greece could share in the "tremendous resources of the USSR--such as the un- believable riches of the Urals�which must be used for the peaceful development of the world!' He said that Moscow was ready to aid Greece with a large number of projects including electric power development, a sugar refinery and farm mech- anization. The discussions on specific points raised by the Greeks were apparently inconclusive. Shepilov avoided any new endorsement of the Greek position on Cyprus and shied away from Greek proposals that the USSR buy some of the large tobacco surpluses. Athens appears to have been careful to make no commitments which might prejudice its pro-Western position. At the same time, it has not closed the door to any future Soviet approaches and thus has left itself room to maneuver between Western and Soviet offers. Prime Minister ICaramanlis side-stepped a Soviet offer to visit Moscow, saying that he would consider a visit when he sees "demonstrable progress on improving rela- tions:' 4 July 56 Current Intelligence Bulletin SECRET Approved for Release: 2019/10/23 C03015174 Page 5 Approved for Release: 2019/10/23 C03015174 NNW' NENITI'S RELATIONS WITH THE COMMUNISTS Pietro Nenni, chief of the Italian Social- ist Party, has reportedly said that he considers it unnecessary to de- nounce openly his party's unity-of-action pact with the Communists since "the pact just isn't there any more:' He was unsure, however, whether he would be able to get his party to follow him in giving the party a p orm $ own" and in seeking co-operation with "those democratic forces willing to reach a reasonable compromise for the implementation of a joint program:' These remarks are consistent with other hints from Nenni that he now feels it would be profitable to break with the Communists�if by doing so he could form a new alliance with parties in the present government coalition. The American embassy in Rome points out, however, that "assuming he wants to 'go' anywhere," there are a number of important factors tending to restrain him in addition to those pushing him toward a break with the Communists. Re- straining factors include the strength of pro-Communists in Nenni's party, the reported Communist financial support of his party, the Socialists' joint participation in the Communist-led labor and other mass organizations, and the "unity-of-the-work- ing-class" slogan. 4 July 56 Current Intelligence Bulletin Page 6 SECRET Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 NR�01 5. FULFILLMENT OF POLISH-BURMESE TRADE AGREEMENT THREATENED k Polish trade representative in Rangoon have expressed essimism on 13 June regarding the pros- ects for the successful fulfillment of the birter agreement'between Burma and Poland. He said Po- land had been forced to accept a considerably lower grade of rice than called for in the trade agreement. He also stated the Burmese were apprehensive that the goods to be supplied by Poland would be inferior to similar products manufactured In the United Kingdom, the United States, and Japan. The Polish official conceded that these fears were well founded. Comment Burma has been increasingly dissatisfied with its barter agreements with bloc coun- tries and has tended to discriminate against them in favor of cash customers. Poland is slated to take 50,000 tons of Bur- mese rice this year. Actual shipments, however, may not reach that total, as only 11,000 tons have been shipped to date. 4 July 56 Current Intelligence Bulletin Page T Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 (IL 1\11, �we 6. INDONESIA REPORTED DISSATISFIED WITH DELAY IN EAST GERMAN CONSTRUCTION OF SUGAR MILL Reported differences of opinion between Indonesia and East Germany over the building of a badly needed sugar mill in Jogjakarta may induce a more cautious attitude on the part of the Indonesians toward a recent East German offer to supply capital goods on a long-term credit basis. Such an attitude may also be reflected in forthcoming trade and aid negotiations with other European Satellites and the USSR. The mill was scheduled to commence opera- tion in September, but only one third of the Machinery is said to have arrived at the site. Moreover, the plant's foundations and a connecting railway spur were far from being completed as of last April. In this connection, Indonesia reportedly will ask East Germany to speed up deliveries so the project can be completed by the end of 1957. Although the delay may be partially due to the failure of the Indonesians to provide proper financing and transportation facilities for the imported equipment, the East Germans will almost certainly be blamed. 4 July 56 Current Intelligence Bulletin Page 8 CONFIDENTIAL Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 " 7. YEMEN1-SOVIET AID AGREEMENT -The USSR has offered to build a new port at Hodeida on the Red Sea, accord- ing to a spokesman for the Yemeni lega- tion in Cairo. The Soviet offer, which was accepted in principle and is now un- der study, was made in connection with a trade and economic agreement concluded on 23 June in Moscow. The agreement provides also for a number of Yemeni students to study mining and oil research and ex- ploitation at Moscow 415 Saudi Arabia University. In addition, Moscow has offered to supply Yemen with agri- cultural machinery, tractors and well-drill- ing equipment. Comment Yemen has been attempt- ing to get arms and eco- nomic aid from the USSR since early March. It is not yet known whether Badr was successful in getting arms or in persuading the USSR to prospect for oil on the Kamaran Islands, which are now claimed by both Britain and Yemen. 4 July 56 Current Intelligence Bulletin Page 9 TOP SECRET Approved for Release: 2019/10/23 C03015174 Approved for Release: 2019/10/23 C03015174 J LA-1UL 1 Noe NrisiO THE ARAB-ISRAELI SITUATION (Information as of 1700, 4 July) Rumors that Israeli troops are concentrat- ing on Jordan's frontier have caused alarm in Arab capitals. The press in Beirut and Damascus has headlined the rumors, Arab leadie ers are consulting, and Egypt and Jordan reportedly have ordered their frontier troops on special alert. However, UN 'Truce Super- visor Burns told the press on 4 July that he had no infOrm-tion of such Israeli action in the Jerusalem area and had received no offi- cial complaints. The Israeli Foreign Ministry has described the rumors as "pure fabrication." It appears that the current tensions were generated largely by Israeli foreign minister Myerson's re- cent assertion that Israel felt free to resume work on diverting the Jordan River waters. Apparently,Jordan's King Hussain also con- tributed to Arab concern by his statements on 3 July to Arab and Western diplomats in Amman that the Israeli government's present attitude would result in armed aggression against Jordan. Hussain emphasized to the American, British and French ambassadors that If this happened the other Arab states would come to Jordan's aid. According to the Egyptian radio, Jordan has complained to the Mixed Armistice Commission that Israeli flights over Jordan have increased in the last two weeks 4 July 56 Current Intelligence Bulletin Page 10 SECRET Approved for Release: 2019/10/23 C03015174