CURRENT INTELLIGENCE BULLETIN - 1956/06/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03020486
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: June 1, 1956

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CURRENT
INTELLIGENCE
BULLETIN
TOP SECRET V
3.3(h)(2)
tid
3.5(c)
1 June 1956
Copy No. 103
DOCUMENT NO.
NO CHANGE IN CLASS. ry
cECLACSFlED
CLASS. CHANGED TO: TS S C soo
NEa REVIEW SATE�
AUTH: HR 70-2
DAT EQe-74-4-i--- REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP
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#FIN
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Ur" JELIN.E, I
CONTENTS
1. U NU TO TAKE ONE-YEAR LEAVE OF ABSENCE AS
BURMESE PREMIER (page 3).
2. USSR OFFERS MILITARY AIRCRAFT TO URUGUAY
(page 4).
3. NORTH KOREA ANNOUNCES PROSPECTIVE TROOP REDUC-
TION (page 5).
4. LAOS PREMIER INVITED TO VISIT COMMUNIST CHINA
(page 6).
5. COUP BY ANTI-SIHANOUK FACTION IN CAMBODIA
RUMORED (page 7).
6. SYRIA REPORTED ABOUT TO RECOGNIZE COMMUNIST
CHINA (page 8).
7. HUNGARY AND YUGOSLAVIA SETTLE FINANCIAL CLAIMS
(page 9).
8. ARGENTINA AND MEXICO IRRITATED WITH PREPARA-
TIONS FOR PRESIDENTS' MEETING IN PANAMA
(page 10).
1 June 56
THE ARAB-ISRAELI SITUATION
(page 11)
THE TAIWAN STRAIT
(page 12)
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1. U NU TO TAKE ONE-YEAR LEAVE OF ABSENCE AS
BURMESE PREMIER
Comment on:
Nu, a devout Buddhist, has frequently
professed a desire to leave the government in order to devote
hiriiself to religious matters. His period of retirement coin-
cides with the observation of the 2,500th year of Buddhism.
Nu
will be succeeded by Defense Minister Ba Swe, an able but op-
portunistic politician who once considered joining the pro-Com-
munist Burma Workers and Peasants Party. A Burmese gov-
ernment under Ba Swe may be inclined to negotiate a settlement
with insurgent Communists and to cultivate closer relations with
the Communist bloc.
The stipulation that Nu return within a year
could be a face-saving gesture. In view of the political ambi-
tions of Ba Swe and other Burmese leaders, Nut actual return
to the premiership is doubtful.
1 June 56 Current Intelligence Bulletin
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Noir
2. USSR OFFERS MILITARY AIRCRAFT TO URUGUAY
The Soviet minister to Uruguay last
week offered to supply Uruguay with
any type of military aircraft desired,
"from trainers to jets,"
Payment may be made
in soft currency, surplus agricultural products, or as de-
sired, believes that acceptance is remote at
this time, although Uruguay has a serious shortage of usable
primary trainers.
Comment Uruguay's small air force apparently has
no need for additional combat planes, but
21 primary trainers have been requested from the United
States. The USSR, in January, expressed an interest in "buy-
ing all products of the Uruguayan economy" and providing in
return "all the products Uruguay needs." Negotiations between
the two countries for a new trade agreement have been under
way in Montevideo since last December.
In February, the USSR reportedly offered
MIG aircraft to Argentina for wheat or agricultural products,
but there has been no indication of a firm commitment, and the
offer has aroused little Argentine interest. The USSR offered
arms of other types to Ecuador lastl December, but was turned
down. (Concurred in by ORR)
1 June 56
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Noe NSF
3. NORTH KOREA ANNOUNCES PROSPECTIVE
TROOP REDUCTION
The North Korean regime announced on
31 May that its armed forces will be re-
duced by 80,000 men by 30 August 1956.
No other Communist regime has announced
troop cuts since Moscow said it would reduce its forces by
1,200,000 men. This statement is part of the regime's effort
to persuade other Asian nations to accept the view that forces
in South Korea can be reduced without danger of an attack. The
Communists may also hope to pave the way for a rapproche-
ment with anti-Rhee South Koreans.
There continue to be at least six Chinese
armies stationed in North and Northeast China. Troop strength
in North Korea is estimated at about 650,0009 of which 300,000
are Chinese Communists. UN and South Korean ground forces
total approximately 700,000. The North Korean air force, which
includes 230 jet fighters and 65 jet light bombers, is far superior
to the South Korean air force.
In the event these men are demobilized, they
would provide a considerable addition of manpower to help solve
North Korea's severe labor shortage.
(Concurred in by ORR)
1 June 56
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4. LAOS PREMIER INVITED TO VISIT COMMUNIST CHINA
Laotian premier Souvanna Phouma in-
formed the American charg�n Vientiane
on 29 May that he had received, via New
Delhi, an invitation from Chou En- lai to
visit Peiping. The premier is obviously flattered and eager
to go. He indicated that if the trip developed--and the charg�
has little doubt but that it will--it would take place in August
or September and might include a stop in Hanoi.
Souvanna assured the charg�hat he was
aware of the dangers of accepting any economic aid that might
be extended by Peiping, and stated that he would not permit
Chinese technicians to enter Laos or allow his country to be
"CoMmunized." He indicated, however, that he was amenable
to a "good-will" offer of money or goods, in return for con-
tinued nonalignment with SEATO.
Comment This invitation is intended to give additional
punch to the Communist propaganda campaign
that was launched early this year with the object of neutralizing
Laos.
The Communists hope to arrange a deal where-
by the government will regain control over the disputed northern
provinces, now held by the Communist-controlled Pathet Lao, in
return for guarantees that Laos will renounce any military con-
nections with the West and permit "reintegration" of the Pathets
into Laotian society. Souvanna is attracted by the recent Commu-
nist proposals. He plans to meet his half-brother, leader of the
Pathet Lao, later in June in the hope of achieving a "private" set-
tlement. If agreement is reached, a major obstacle to a Peiping
visit would thereby be removed.
1 June 56
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14.1
5. COUP BY ANTI-SIHANOUK FACTION IN
CAMBODIA RUMORED
A Cambodian army clique, composed of
influential leaders, is plotting to install
General Tioulong, now ambassador to
Japan, as dictator of Cambodia, accord-
ing to rumors reaching the American
army atahinFhnom Penh. The queen, who is more influ-
ential than the king, is reported backing the plot.
The attach�omments that there is "no
factual confirmation" of an impending coup, but notes that
Tioulong is a personal enemy of Sihanouk as well as a "strong-
man type" who believes Cambodia needs a dictatorship instead
of a Sihanouk-style "democracy."
Comment Colonel Dap Chhuon, a powerful provincial
commander who is reported to be impli-
cated in the plot, has frequently criticized Sihanouk's neutral-
ist policies and recently reiterated to Ambassador McClintock
his determination to "take action" if Sihanouk persisted in being
a "Communist dupe." Other leaders of the plot, including the
defense minister and army chief of staff as well as the palace,
are reported to have indicated concern over the possible conse-
quences of Cambodia's present foreign policies.
Sihanouk, who has the support of strong
political groups, is presently on an extended tour of Europe
which is to include visits to Moscow, Warsaw and Prague.
1 June 56
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6. SYRIA REPORTED. ABOUT TO RECOGNIZE
COMMUNIST CHINA
Syrian newspapers quoting an "official
source" have stated that the Syrian gov-
ernment has decided to recognize Com-
munist China. The official announcement
reportedly will be made after Syria's leaders return from their
three-day visit to Jordan which began on 29 May.
Comment There is no official confirmation of these
press reports. Syria is, however, expected
to be the first Arab state to follow Egypt's lead.
Egyptian recognition of Communist China
was enthusiastically greeted by the public and by many Syrian
officials.
1 June 56
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7. HUNGARY AND YUGOSLAVIA SETTLE FINANCIAL CLAIMS
The Hungarian-Yugoslav agreement of
29 May to settle outstanding Yugoslav fi-
nancial claims removes a major block to
improved relations between the two countries.
According to the Yugoslav press, this opens
the way for a substantial expansion of economic ties and trade
and also "co-operation in other fields."
The basis for settlement of these claims,
which have been the subject of negotiation for about nine months,
was presumably proposed by Hungarian party leader Rakosi, who
is believed to have been under considerable Soviet pressure to
foster a Hungarian-Yugoslav rapprochement. Because of Hun-
gary's serious trade imbalance with the non-Communist world
and the Soviet Union, Moscow may have had to assure Budapest
of some form of aid.
The agreement calls for Hungarian capital
and consumer goods in the amount of $85,000,000 to be deliv-
ered to Yugoslavia in equal installments during the next five
years. Yugoslav claims formerly totaled $120,000,000 plus an
unspecified amount of Yugoslavia's loss of trade after the 1948
break. The Hungarians acknowledged that the $85,000,000 was
only "two thirds" of their debt and cited the agreement as proof
of Yugoslavia's good will.
All economic claims presently in dispute be-
tween Yugoslavia and the Soviet bloc have now been settled.
1 June 56
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Nor' Nit"'
8. ARGENTINA AND MEXICO IRRITATED WITH PREPARATIONS
FOR PRESIDENTS' MEETING IN PANAMA
The chief of the American section of the
Argentine Foreign Ministry believes that
the presidents' meeting in Panama has
been badly prepared and that previous un-
derstanding at the diplomatic level should
have been reached before formal invitations
were sent out by Panama, according to the
American embassy in Buenos Aires.
Meanwhile, Mexico's acting foreign .minister
told the American ambassador to Mexico that his government
had not been consulted about the program for the Panama meet-
ing, and that if other governments had been, he would be in an
embarrassing position.
Comment
To date,neither the Argentine nor the Mexi-
can president has accepted the Panamanian
invitation.
The unprecedented meeting of the chief execu-
tives of the American republics now scheduled for 25-26 June was
formally suggested by the Panamanians in early May. The meet-
ing is to be part of the commemorative ceremonies honoring the
130th anniversary of the Congress of Panama, which is generally
considered to have been the first step in inter-American organi-
zation.
No previous discussion of a meeting of the
presidents had been held in the Organization of American States,
although a Mexican proposal for a meeting of OAS delegates in
Panama had been under consideration for several months.
1 June 56
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 31 May)
The Iraqi ambassador to Egypt told Am-
bassador Byroade on 29 May that he was almost certain that
Egypt had made an additional arms deal with Czechoslovakia
"within the last few days" and that it involved mostly aircraft.
Byroade commented that this would fit with reports that Nasr
has been "fretting" that the MIG-15's were not a match for the
Mystere �IV's sold to Israel and that he was getting MIG-17's.
Byroade added that Nasr reportedly said that for every plane he
heard of being provided Israel he would obtain four for Egypt.
the
Soviet merchant ship Kaliningrad between 19 and 25 May dis-
charged at Alexandria 120 artillery pieces, "each with a 20-foot
barrel with a muzzle brake and rounded shield"; two crated
MIG's and cases of spare parts. Prior to its arrival in Alex-
andria, the Kaliningrad unloaded a shipment of arms for Syria
at the Syrian port of Latakia.
1 June 56
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BIWEEKLY SUMMARY
17-31 May 1956
THE TAIWAN STRAIT
Report of the IAC Current Intelligence Group
for the Taiwan Strait Problem
There were no significant developments in-the area
during the period.
1 June 56
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