CURRENT INTELLIGENCE BULLETIN - 1957/02/24

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03162000
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: February 24, 1957

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CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2)
24 February 1957 3.5(c) //;
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Copy No. 131
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. EGYPTIAN FOREIGN MINISTER FEARS PRESSURE ON
EGYPT TO MATCH ANY CONCESSIONS BY ISRAEL
(page 3).
2. SHEPILOV ADVISES EGYPT ON KEEPING THE INITIATIVE
(page 5).
KHRUSHCHEV COMMENTS ON EUROPEAN INTEGRATION
(page 6).
SPANISH CABINET SHAKE-UP
24 Feb 57
(page 7).
Current Intelligence Bulletin Page 2
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1. EGYPTIAN FOREIGN MINISTER FEARS PRESSURE ON
EGYPT TO MATCH ANY CONCESSIONS BY ISRAEL
Comment on:
Egypt's Foreign Minister Fawzi and
Ambassador Hussain
expressed misgivings that President
Eisenhower's speech on 20 February
presaged increasing difficulties for
Egypt and increasing pressure for concessions by Egypt,
once Israel has withdrawn from occupied territory.
Fawzi indicated concern that when such
withdrawal had been completed "a series of pressure opera-
tions are going to be started against Egypt" for the purpose of
assuring unrestricted use of the Gulf of Aqaba and the Suez
Canal by ships of all nations. He also foresaw efforts to in-
crease the UN force in Egypt and extend its jurisdiction; to
establish a special regime for the Gaza strip; to reach agree-
ments on the matter of Suez Canal tolls; and to separate the
canal and the area around it from Egypt.
Hussain also admitted having the impres-
sion that the United States had lost patience with Egypt's tac-
tics of delaying settlement of the canal issue. Fawzi summed
up by observing that Egypt was confronted with a more serious
problem than in the past and "would have a portion of the UN
that is not small" --including those now on the sidelines�work-
ing against it. lie added "the battle is going to be more diffi-
cult not easier!'
Fawzi stated that Washington was aware
its position would be easier if Egypt committed any blunders,
and was watching carefully for any Egyptian mistake. He
added "we can depend on ourselves to make mistakes--if we
don't open our eyes we are going to get whipped!'
Fawzi and Hussain are diplomats of the
old school in Egypt and do not have a place in the inner circle
24 Feb 57
Current Intelligence Bulletin Page 3
vrIn c lE" ri E�r
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of Nasr's government. They have frequently expressed dis-
approval of measures taken by the �Nasr regime. Their
suspicion of American intentions, however, is probably also
reflected in Cairo.
24 Feb 57
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_ _ _ _
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2. SHEPILOV ADVISES EGYPT ON KEEPING THE INITIATIVE
Comment on:
Former Soviet foreign minister
Shepilov has warned
that Egypt must not
lose the initiative in the Middle East.
He suggested that Cairo explore pros-
pects for support from "friendly Asian and Socialist coun-
tries" for a conference of all canal users "to reaffirm the
1888 convention, amend it, or work out a new convention."
He stated that it was up to Egypt to decide when the canal
should be opened in accordance with the 1888 convention and
stressed that there is no reason for compromise with the
West although Egypt should act with caution.
Shepilov said that "even now the ag-
gressors are still hatching plans against Egyptian sovereignty
and the Arab countries!' He predicted that Britain, France
and the United States plan to isolate Egypt from the Arab coun-
tries and then bring pressure to bear on Saudi Arabia and Jor-
dan.
nepuov sougni to
arouse suspicion that the Western powers are attempting to
use the UN Emergency Force to impose settlements of the
Suez and Arab-Israeli conflicts. He noted that new functions
have been devised for the UN force, "about which he always
had suspicions;' which, he said, exceed its mission as
originally defined by the General Assembly and which run
counter to Egyptian and Arab interests. He said the West-
ern proposal that Suez Canal tolls be paid to the World Bank
is a "flagrant violation of Egyptian sovereignty" and rep-
resents another attempt "to impose the Menzies or Dulles
plan" for international control.
He also told the ambassador that his
new post--as one of the eight secretaries of the central com�
-
mittee of the Soviet party�will keep him in close touch with
foreign policy, "especially Egyptian affairs!'
24 Feb 57
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KHRUSHCHEV COMMENTS ON EUROPEAN INTEGRATION
Soviet party boss Khrushchev told Chester
Bowles on 20 February that the USSR did
not like the idea of a "European federation"
since Germany was certain eventually to
controI such a grouping. Britain and France, Khrushchev
said, could only be losers. He said that if the federation were
only a loose agreement on "economic and similar problems,"
the USSR had no objections. Khrushchev stressed, however,
that Germany could not be permitted to dominate Europe and
that in order to prevent such a development, a disarmament
agreement including arms control by the principal powers was
needed.
Comment Khrushchev's opposition to European inte-
gration is in line with Moscow's long-
standing claim that it would pave the way for German aggres-
sion. The USSR proposed at the meeting of the Economic Com-
mission for Europe last April that there should be an all-
European agreement on economic co-operation and that the
peaceful uses of atomic energy should be explored within the
framework of ECE.
In commenting on the six-nation agreement
on EURATOM and the common market, reached on 20 Febru-
ary, Moscow radio has emphasized the differences among the
participants, and has played on French fears of Germany.
Pointing out that West Germany already produces more iron
and steel than France and Great Britain, Moscow predicted
that the new plan will allow West German industry to manufac-
ture atomic bombs with French uranium and that French mar-
kets will be flooded with West German goods.
24 Feb 57
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4. THE SPANISH CABINET SHAKE-UP
Comment on:
Franco's present cabinet shake-up, like
the last major reshuffle in mid-1951,
follows a period of growing criticism of
his regime and extensive transportation
boycotts in Spain's major cities. The
working populace has used the boycott,
one of the few legal means by which it
can protest, to express its dissatisfac-
tion with the deteriorating economic condition of Spain.
In naming a new cabinet; Franco seems
to have used the device of choosing "technicians" to head a
number of ministries as a way of avoiding a showdown be-
tween the Falange and its opponents --the mona.rchiSts and
army, church and business groups.
Lodge, however, feels that the replacement of Foreign Min-
ister Artajo by Fernando Maria Castiella "would not seem
encouraging!'
Castiella, Spanish ambassador to the
Vatican since 1951, has been described as a former Falan-
gist and former member of Spain's World War II Blue Divi-
sion, but now a monarchist. The reported replacement of
Commerce Minister Arburua suggests that the austerity
measures he has favored for combatting Spain's growing in-
flation will be brushed aside in favor of deficit spending for
public works and other construction projects as recommended
by other members of the government.
24 Feb 57
Current Intelligence Bulletin Page 7
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