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December 12, 2019
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December 20, 2019
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March 31, 1957
PDF icon CURRENT INTELLIGENCE BULL[15755702].pdf284.15 KB
Approved for Release: 2019/12/04 CO3160438 11- &- ./W CURRENT INTELLIGENCE BULLETIN 'Z/7 dzr/ 3.3(h)(2) 3.5(c) 31 March 1957 Copy No. 13 DOCLI!,-.E.NT NO. iN CLASS. I : cHANa.D 10: TS IFIOOT NEXT kEVV.:-A'," DATE: OFFICE OF CURRENT INTELLIGENCE CENTRAL INTELLIGENCE AGENCY TOP SECRET dff es/A Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 OR Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 I sue CONTENTS o BRITISH VIEWS ON EGYPTIAN CANAL MEMORANDUM (page 3). 01 COUP POSSIBILITIES GROWING IN JORDAN 4/0 � (page 4). . KHRUSHCHEV'S "THESES" ON ECONOMIC REORGANIZATION PUBLISHED "FOR DISCUSSION" (page 5). p fr)4. NEW GOVERNMENT IN THAILAND (page 6). 45. INDIAN COMMUNISTS ATTEMPT TO ATTRACT PRIVATE CAPITAL TO KERALA STATE (page 7). ()M6. NEW POLITICAL CRISIS IN HAITI 31 Mar 57 (page 8). Current Intelligence Bulletin Page 2 7-S�Ert-RE"� Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 1. BRITISH VIEWS ON EGYPTIAN CANAL MEMORANDUM A British Foreign Office official told the American embassy in London on 29 March that the Egyptian memorandum on the canal, although obviously unacceptable in its pres- ent form, provides a possible basis for negotiation. The For- eign Office believes the Egyptian attitude might allow payment of dues through the Suez Canal Users Association (SCUA), and is seeking an early SCUA meeting to discuss the memorandum along with the conclusions of the Bermuda conference. Comment London appears resigned to its inability to induce Nasr to alter his terms significantly, but is probably hoping to save face by reaching an agreement on some modifications. The recourse to SCUA represents a shift in Britain's position since it had agreed at the Bermuda conference that it would not be useful at this time to involve SCUA, most of whose members preferred to act through the UN on canal matters. In his recent Cairo negotiations, UN Secre- tary General Hammarskjold found Egypt hard to budge on points in the memorandum but persuaded Egypt to consider it as a draft pending comments from other governments. Hammar- skjold concluded that the way had been left open for arrange- ments for co-operation with the users. Egypt would probably refuse to permit toll payments to SCUA itself. 31 Mar 57 Current Intelligence Bulletin Page 3 Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 dAt, Nalf 2. COUP POSSIBILITIES GROWING IN JORDAN Reference: The probabilities of a coup in Jordan in the near future are growing, accord- ing to American ambassador Mallory in Amman. ,He adds there can be no doubt that ultra-nationalist Jordanian prime minister Nabulsi is intent on throwing out King Hussein and seeking some farm of federation with Syria and ggypt. The Jordanian am assaaor to tne US" said after talks with King Hussein that the king, in turn, is determined to change the government soon. Reports as to the specific nature of changes intended by Hussein are conflicting, probably reflecting Hussein's dilemma as to how to retain his position in a situation where anti-Western, anti-American forces are dominant and at the same time ac- tively seek American economic aid. Hussein is variously reported as intend- ing to replace Nabulsi, retain him but bend him to a strong anti-Communist program, or dismiss parliament and es- tablish a military government which would not include Chief of Staff Nuwar. Hussein has repeatedly professed his intent to reduce the influence of anti-Western forces in Jordan, but has backed away from a showdown. He is probably unable at the present time to make more than token changes. 31 Mar 57 Current Intelligence Bulletin Page 4 Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 ink t,t11 V l' 11 ../1'.41� 1 1./11J $14 3. KHRUSHCHEV'S "THESES" ON ECONOMIC REORGANIZATION PUBLISHED "FOR DISC USSION' ' Comment on: The 30 March publication of Khrushchev's "theses" on reorganization of the adminis- tration of Soviet industry provides guide- lines for a nationwide discussion on how to implement the decisions of the February central committee meeting. The discussion is intended to pub- licize the forthcoming governmental reorganization and enlist popular support for it. Khrushchev's outline is an expansion and reaffirmation of information published in the Soviet press and given to US columnist Alsop by IChrushchev and chief long range planner Baibakov. New information on the direction and scope of this most sweeping decentralization since national five-year plans began in 1928 includes transfer of operational authority to regional administrative units. One of Khrushchev's recommen- dations calls for abolition of the State Committee for Current Planning, headed since last December by presidium member AIL G. Pervukhin. He also advocatedthat all 'planning and co- ordinating functions of the central government except major policy matters be concentrated in Gosplan, now responsible for long-range planning. In such an event, Pervukhin and the other top level administrators assigned last December to the State Economic Commission might be transferred to Gosplan. Failure to assign Pervukhin as head of Gosplan or give him another important post would suggest dissatisfaction with his performance in the preparation of the 1957 plan. Ithrushchev also put unusually strong em- phasis on the continued primacy of heavy over light industry, and stated that the nation's future growth would suffer "if we yield to an incorrect, false interpretation" that light industry should have priority. This suggests that the issue may have been the subject of recent debate. Khrushchev said heavy in- dustry will continue to receive the lion's share of investment, thus destroying any illusions that the increased priority of housing in 1957 foreshadows substantial concessions to con- sumers in the final version of the Sixth Five-Year Plan. 31 Mar 57 Current Intelligence Bulletin Page 5 '11 1%.71771-1rVirT.47 Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 .a& J-4 � st "go 4. NEW GOVERNMENT IN THAILAND Comment on: The cabinet announced in Thailand on 30 March shows that Premier Phibun continues to control the country by balancing rival factions in Thailand's ruling oligarchy. Police Director Gen- eral Phao and Army Commander Sarit have not only been retained in the cabi- net but promoted to higher posts. Phao, formerly deputy minister of the interior, has been placed in charge of the ministry, while Sarit has been similarly advanced to the position of minister of defense. With minor changes in personalities and positions, the rest of the cabi- net remains as it was before the 26 February elections. The new government can be expected to maintain Thailand's strong pro-Western orientation. Internal stability also seems assured for the time being, although the Phao-Sarit rivalry will continue to cause trouble for Phibun. Any such difficulty in the near future would probably be in- spired by Sarit in irritation over his inability during the re- cent postelection emergency to destroy Phao's influence. Phao, who reportedly is stepping down as chief of police, will probably act cautiously for the present to deny Sarit any pretext to move against him. 31 Mar 57 Current Intelligence Bulletin Page 6 Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 Alt �W1N1I-Bittil�At 5. INDIAN COMMUNISTS ATTEMPT TO ATTRACT PRIVATE CAPITAL TO KERALA STATE Reference: The Indian Communists, who are ex- pected shortly to be asked to form a government in Kerala State, are invit- ing private capital to the state as one means of improving economic conditions there in an effort to make Kerala a model state under their administration. On 28 March, Kerala Communist leader Namboodripad said that the Communists would not imme- diately attempt to establish a Communist state but would encourage private capital to develop local industry if satis- factory terms could be arranged. Simultaneously, G. D. Birla, one of India's topmost industrialists, reported that he had already been approached by the Communists and asked to start a pulp and rayon factory in Kerala. He was promised that the Communists would do everything he wanted to make the venture attractive, and he said he had decided to accept the offer. Any Communist success in improving conditions in Kerala would reflect adversely on the Congress Party's past record and might have far-reaching effects over the next few years in other states where the Congress Party has lost popularity. Congress leaders hope the Communists will fail but cannot take an overt stand against their efforts to improve the economy. 31 Mar 57 Current Intelligence Bulletin Page 7 Pfet717711r7V7TY A T Approved for Release: 2019/12/04 C03160438 Approved for Release: 2019/12/04 C03160438 N.-4 -,- JE--1.1. � ',moo 6, NEW POLITICAL CRISIS IN HAITI The American embassy in Port-au-Prince states that the current political situation in Haiti is "akin to that of the first week in February" when Provisional President Pierre-Louis was forced out and replaced by Franck Sylvain. The opposition to presidential candidate Duvalier, which includes all other candidates, claims that the scheduled 28 April election is rigged in Duvalier's favor. In a new ultimatum to President Sylvain on 29 March, the candi- dates reiterated, under threat of calling a general strike, their demand that he select a new cabinet representing all political factions. They also demanded that he halt election registrations. Several cabinet ministers have told the American embassy they are uncertain how long they can remain in office. Sylvain has weathered several political storms, however, and, unlike Pierre-Louis, has won popular favor by pushing sequestration proceedings against members of the Mag- loire regime and by setting a definite date for national elections. The position of the army, which could determine Sylvain's fate, is unclear, but the embassy reports that senior army officers are "noticeably active." 31 Mar 57 Current Intelligence Bulletin Page 8 -CLOATP/DENTI-A47 Approved for Release: 2019/12/04 C03160438