CURRENT INTELLIGENCE BULLETIN - 1957/06/11

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03150422
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: June 11, 1957

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CURRENT
INTELLIGENCE
BULLETIN
11 June 1957
Copy No.
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CLASS. CHANGE.D TO: 15 S C
NEXT REVIEW DATE:
RUTH: HR 70-2
DATE;
EV1EWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TO SECRET /MA
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' TOP SECRET
ftruir Nome
CONTENTS
x 1. NEW ITALIAN GOVERNMENT CRISIS
- (page 3).
IL_ 2. POLISH PRESS COMMENT ON POLISH-US ECONOMIC
AGREEMENT (page 4).
(page 5).
/(-- 4. IRANIAN PRIME MINISTER THREATENS RESIGNATION
(page 6).
a g. 5. SITUATION IN EAST INDONESIA
OA 6. THAI RULING CLIQUE DEEPLY SPLIT
(page 7).
(page 8).
)/- 7. JAPAN TEMPORARILY TO MAINTAIN DIFFERENTIAL
ON CHINA TRADE (page 9).
14) b 8. PLANS TO ASSASSINATE VENEZUELAN PRESIDENT RE-
PORTED (page 10).
11 June 57
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�ttntit1DENI-17ffr
1. NEW ITALIAN GOVERNMENT CRISIS
Comment on:
Premier Zoli's decision to resign fol-
lowing a recount of the 8 June confidence
vote in the Italian Chamber of Deputies
may increase the political bitterness
generated in the past few weeks. Zoli actually received a
majority of the votes, but refused to accept the votes cast for
him by the neo-fascists. Another Christian Democrat might
obtain the support of the small center parties for a new coali-
tion but formation of a caretaker government without a par-
liamentary majority is more likely.
Such a government would be free to pre-
pare for new elections as soon as it had made provisional
appropriations for the new fiscal year starting 1 July. Pres-
ident Gronchi could dissolve the chamber at any time, but
he would probably delay such action for about a month so that
elections would not need to be held until early fall. The consti-
tution requires elections within 70 days of dissolution.
11 June 57
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AL USE ONL
2. POLISH PRESS COMMENT ON POLISH-US
ECONOMIC AGREEMENT
Signature of the US-Polish economic
agreement in Washington on 7 June
is front page news in Warsaw news-
paper; which have gone beyond the
cautious optimism expressed by Go-
mulka in his 5 June speech at Poznan. Trybuna Ludu
official party organ, and Zycie Warszawy, government
daily, printed the full text of the joint declaration an-
nouncing the agreement. PAP, official news agency,
cited the total aid figure of $95,000,000 before explaining
that the agreement consisted of $48,900,000 in credi,t8
with the balance dependent upon US congressional action
expected within the next ten days.
While warning that neither the Amer-
ican agreement nor recent credits from Soviet bloc and
non-bloc countries will immediately influence living con-
ditions or agricultural productivity, Trybuna Ludu still
found the arrangement to be "... exactly as we wished it
to be and as we from the first moment suggested it to be
to our American partners." Trybuna emphasized that it was
a "typical economic and trade financial agreement free of any
political conditions or obligations."
Noting that the US grant was a third of what
Poland had asked for, Trybuna nonetheless expressed the be-
lief that "possibilities for further development of economic
and financial relations with capitalist countries on a basis of
mutual benefit have been laid." Zycie Warszawy went even
further in expressing the hope that future US-Polish talks
?twill be shorter and easier than the recent negotiations in
Washington." Both Warsaw papers considered the aid agree-
ment a step toward relaxation of international tensions, and a
columnist in Trybuna said that the accord would help break down
East-West trade barriers.
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i (Jr 5ECKE 1
Numeiv.
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Nape
4. IRANIAN PRIME MINISTER THREATENS RESIGNATION
Prime Minister Eqbal told Ambassador
Chapin on 8 June that he will resign within
two months unless the Shah backs him in
his efforts to correct some of the basic de-
iciencies and lack of discipline in his administration. Eqbal
is becoming increasingly discouraged over the inefficiencies,
political machinations, and petty details of government that are
preventing him from getting ahead with his program.
Comment Eqbal tends to view Iran's problems some-
what more realistically and more conscien-
tiously than his predecessors and may attempt unpopular meas-
ures designed to correct the inefficiencies and lack of co-ordi-
nation in his government. If the Shah fails to support him in
these efforts and continues to interfere in the daily operations
of the government, he will probably resign. The Shah's inten-
tions will not become apparent until his return from Europe, but
Eqbal apparently has no intention of being relegated to the status
of a figurehead with no authority.
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5. SITUATION IN EMT INDONESIA
Comment on:
Lt Col. Sumual, commander in East
Indonesia, has agreed to a "mutual un-
erstandinr for normalization of mil-
itary, financial and economic relations
with the central government, according
to an official announcement in Djakarta
on 10 June. The agreement resulted
from talks with army chief of staff Gen-
eral Nasution, who has just returned
from a 10-day visit to SumuaPs command.
Sumual reportedly has also consented to
his transfer and to the division of his command into four mil-
itary regions, each of which would be directly responsible to
the army chief of staff. The announcement, however, gave
no indication when Sumual's transfer would occur nor did it
identify the officers who would take over the new commands.
Moreover, as yet there is no direct word from Colonel Sumual
confirming any of these arrangements.
The central government apparently plans
to use foreign aid from both the West and the Sino-Soviet bloc
to meet the demands of non-Javanese areas for economic de-
velopment programs. At the same time, it is trying to reduce
illegal trade, which has flourished particularly in East Indo-
nesia and has significantly reduced the government's income.
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6. THAI RULING CLIQUE DEEPLY SPLIT
�Utica' observers in Bangkok--both
merican and Thai--are unanimous in
heir belief that there is a wide split in
he Thai ruling clique, according to the
merican air attache in Bangkok. Ele-
ments o s governing elite are said to be rallying
around Defense Minister Sarit on the one hand and Premier
Phibun and Interior Minister Phao on the other.
Comment
Sarit and his followers have been in-
creasingly active in politics during the
past three months, and there have been reports that a pro-
Sarit party is being organized. In a confidence vote, Sarit
might well be able to muster enough votes in the National
Assembly to unseat the government.
In the event Sarit would decide to risk
such a vote, he might first take steps which would be tanta-
mount to a bloodless coup d'etat such as imposing martial law
in the Bangkok area. In this way he might protect himself and
members of his faction from violent countermeasures which
Phao, in particular, would probably not hesitate to take.
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7. JAPAN TEMPORARILY TO MAINTAIN DIFFERENTIAL
ON CHINA TRADE
Japan temporarily will not follow Britain's
action in abolishing the China differential
trade controls but intends to adhere to the
general lines of the China Committee's
compromise Plan A, the American embassy in Tokyo reports.
Kenzo Yoshida chief of the Japanese Foreign Ministry's trade
controls section, told embassy officers that Japan would ex-
port freely 157 items proposed by the US for decontrol and
would follow existing exceptions procedures when possible.
Yoshida emphasized, however, that this
policy could be considered an interim arrangement only. He
expressed pessimism over the length of time this policy could
be maintained.
Comment This Japanese decision almost certainly
derives from concern for US-Japanese
relations on the eve of Kishi's visit to Washington. In the face
of heavy domestic pressure, Kishi's government cannot long main-
tain China trade controls not observed by a major competitor.
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Nair,
a. PLANS TO ASSASSINATE VENEZUELAN
PRESIDENT REPORTED
Comment
The Venezuelan regime participated with
Nicaragua in the abortive attempt to oust
Figueres in January 1955. In November of that year,
Venezuelan underground strongly sug-
gested that Figueres was personally providing funds to the
Venezuelan opposition for revolutionary planning.
The Venezuelan air force, which includes
jet bombers, has previously dropped anti-Figueres leaflets
over the Costa Rican capital. U Venezuela decided to take ac-
tion, its jet bombers could seriously damage San Jose
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