CURRENT INTELLIGENCE BULLETIN - 1957/02/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03162002
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: February 28, 1957

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CURRENT
INTELLIGENCE
BULLETIN
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3.3(h)(2)
3.5(c) ,;;'
28 February 1957
Copy No. 131
DOCUMENT NO. ------
NO CHANGFIN CLASS
I DECLASSIPIP,')
CLASS. CHANCE'D TO: -
NEXT RD:n[7W fiATE: C
REVIEWER;
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
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CONTENTS
1. ARAB "SUMMIT" COMMUNIQUE
(page 3).
2. SUKARNO AND COMMUNISTS CALL ON MOBS TO
v- INTIMIDATE OPPONENTS (page 4).
3. CONTINENTAL OPPOSITION TO BRITISH FORCE CUTS
HARDENS (page 6).
4. HUNGARY CLAMPS DOWN ON ACCESS TO WESTERN
LEGATIONS (page 7).
. CONFIDENCE VOTE THREATENS ITALIAN GOVERNMENT
(page 8).
6. PRESSURE GROWS FOR DEVALUATION OF FRENCH FRANC
(page 9).
7. EGYPT PLANS BROADCASTS TO FRENCH AFRICA (Top
(page 10).
8. SOUTH VIETNAM INCENSED OVER ANTI-DIEM FORCES
IN CAMBODIA (page 11).
9. BRITISH VIEWS ON CYPRUS ISSUE
(page 12).
28 Feb 57
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. ARAB "SUMMIT' COMMUNIQUE
Comment on:
The communiqu�ssued following the
conclusion of the meetings of the four
Arab chiefs of state in Cairo glosses
over serious differences of opinion which
arose during later stages of the talks.
The statement gives some details on King
Saud's report of his talks in the United
States, The four leaders reaffirm, how-
ever, their "determination" to "abide by
the policy of constructive neutrality' The remainder of the
communiqu�s a reiteration of Arab grievances against Israel and
a protest against the actions of the British in Yemen and the
French in Algeria.
On 26 February a dispute reportedly arose
between Nasr and Syrian president Quwatli on one side and
King Saud on the other over Saud's insistence that the commu-
niqu�tate clearly that the Arab leaders appreciate the friendly
stand of the American government toward problems facing the
Arabs. Nasr and Quwatli ar-
gued that the Arabs should save such outspoken pro-Western
statements as a bargaining point to obtain further American
concessions and at one point Saud threatened to leave Cairo
in a huff.
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2. SUKARNO AND COMMUNISTS CALL ON MOBS TO
INTIMIDATE OPPONENTS
President Sukarno and Indonesian Com-
munists have called for another mass
rally in Djakarta on the morning of 28
February, when all party leaders are
to announce their stands on the president's new concept of
government, In an
effort to intimidate the opposition leaders, loudspeakers
have been set up so that their decisions can be heard pub-
licly by the mobs outside the palace, and those who reject
Sukarno's plans will have to pass through crowds of angry
demonstrators upon leaving the palace.
The Mobile Brigade, an anti-Communist
police force whose strength in Djakarta has recently been
reduced from ten to six companies, is uncertain of its capa-
bilities in the face of possible mob violence and unpredictable
army action, the brigade has been
confined to barracks in order to avoid a possible clash with
Djakarta army units.
SOBSI--the
Communist labor federation �is making preparations to
launch a general strike throughout Indonesia if the Commu-
nists are not permitted to participate in the next cabinet, or
if former vice president Hatta becomes a member of either
the council or the cabinet. A Communist veterans' organi-
zation, PERBEPSI, is forming armed units to protect strik-
ing workers and intimidate nonstrikers.
Sukarno's adamant stand for inclusion
of Communists in a new cabinet is indicated by a report of
his violent rage when a political leader criticized his concept,
28 Feb 57
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40
specifically the participation of Communists in the new cabi-
net. Sukarno allegedly pounded the table, knocked files off
his desk, and ordered the visitor never to return to the palace.
Comment All reports indicate that law and order in
the capital has deteriorated to an alarming
extent. The council, and Communist participation in it, ap-
pear now to have been accepted by the opposition, although some
resistance continues on the issue of Communist inclusion in the
cabinet.
:28 Feb 57
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3. CONTINENTAL OPPOSITION TO BRITISH FORCE
CUTS HARDENS
Allied disagreement with the British troop
reduction plans in Germany was even
stronger in the Western European Union
council meeting on 26 February than at
the North Atlantic Council meeting last week, Britain's NATO
representative told an American embassy official. London's
insistence on a time schedule calling for NATO and WEU de-
cisions within two weeks was also criticized as leaving little
time for working out a compromise. The embassy notes, how-
ever, that the opposition has riot yet implied an intention of re-
jecting the British proposal under the terms of the Paris agree-
ments.
The embassy believes, from Foreign Secre-
tary Lloyd's remarks on 26 February to an American official,
that Britain will "at the right time" agree to phase the force
reductions into 1959. This would meet one of SACEUR's rec-
ommendations, but leave unsatisfied his wish to have part of the
British strategic reserve stationed in Germany rather than in the
United Kingdom.
The embassy gained the impression of a
general preference for the North Atlantic Council as a forum,
where American participation might provide some policy guid-
ance.
Comment Both London and the opposition are prov-
ing more unyielding than anticipated--as
suggested also by the suspension of the WEU session after
only one of the scheduled two days of meetings. London's in-
sistence on a tight time schedule is largely determined by
Britain's budgetary planning requirements for the fiscal year
that begins on 1 April.
28 Feb 57
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4. HUNGARY CLAMPS DOWN ON ACCESS TO
WESTERN LEGATIONS
A barrier of police and plain-clothes
men has been thrown around the Ameri-
can, Austrian, French and British lega-
tions in Budapest. All Hungarians visit-
ing these missions are being stopped and questioned. Offi-
cials of the British legation have been followed by plain-
clothes men and asked by the uniformed police to produce
credentials.
The first anti-American poster seen in
Budapest since the spring of 1955 has appeared, and a
Hungarian reported that upon leaving the American lega-
tion, he was searched for weapons and "pressed to admit"
that the legation was handing out firearms.
Comment This all-out campaign coincides with
security precautions against possible
demonstrations against the regime on the national holiday
on 15 March, It is designed to isolate and discredit the
Western missions, to demonstrate that the regime has con-
trol of the internal situation, and to force the West to deal
with the Kadar government.
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5. CONFIDENCE VOTE THREATENS ITALIAN GOVERNMENT
Comment on:
The confidence vote tentatively sched-
uled for 28 February in the Italian par-
liament is an attempt by Christian Demo-
cratic premier Segni to test his majority
following the Republican Party's announcement on 24 Febru-
ary that he can no longer count on its support. The Republi-
cans are not represented in the cabinet, but their five votes
in the Chamber of Deputies have constituted part of the coal-
ition's 16-vote majority. A vote of no confidence could result
in new national elections.
The Republicans object to various govern-
ment policies, including pending land reform legislation as
now drafted, an objection shared by the Democratic Social-
ists and the Christian Democratic left wing. The American
embassy in Rome believes that chances of a crisis are in-
creased by Segni's reluctance to compromise and the Social
Democrats' fear of becoming the only left-center party sup-
porting the government. On the other hand, most coalition
parties will wish to avoid being blamed for hastening national
elections or delaying ratification of the Common Market and
EURATOM.
28 Feb 57
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6. PRESSURE GROWS FOR DEVALUATION OF
FRENCH FRANC
Comment on:
essimism in Paris over France's
ailing foreign exchange reserves is re-
lected in the growing pressure from the
owerful French employers' organization,
the Patronat, for devaluation of the franc. A spokesman for
the organization has told the American embassy that the
Patronat strongly favors devaluation to solve France's bal-
ance of payments problem, provided such a move is accom-
panied by real cuts in government spending.
The government publicly warned on 22
February that France faces exhaustion of its normal foreign
exchange reserves within one month if the January record
trade deficit of $174,000,000 is continued. The American
embassy in Paris points out that the January deficit was swol-
len by deferred purchases of oil and other items resulting
from the Suez crisis, but agrees that the foreign exchange
situation is increasingly serious.
28 Feb 57
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7. EGYPT PLANS BROADCASTS TO FRENCH AFRICA
Comment on:
Egypt's plans to increase its propaganda
efforts in Africa indicate that Cairo seeks
to increase pressures on Britain and
France in the area. In addition to pre-
vious reports of stepped-up propaganda
broadcasts to British East Africa,
The attach�n Rabat was ordered on
12 February to keep Cairo notified in detail concerning the
"revolt" in the Mauritania area of French West Africa, On
6 February. Cairo had requested its attach�n Madrid to
send continuous information by� "priority" means concern-
ing French Equatorial Africa so that broadcasts might be
directed to the area.
The "revolt" in Mauritania refers to
several incursions by elements of the irregular Moroccan
Army of Liberation to further Morocco's claim to extensive
desert areas of French West Africa.
gypt may be seeking to encourage further Moroccan
rai s as a diversionary tactic to draw off French troops
from the conflict in Algeria.
28 Feb 57 Current Intelligence Bulletin
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411*
8, SOUTH VIETNAM INCENSED OVER ANTI-DIEM FORCES
IN CAMBODIA
Comment on:
The apparent conviction of Saigon lead-
ers that the recent attempted assassina-
tion of President Diem is attributable to
anti-Diem Vietnamese in Phnom Penh
may provoke reprisals against Cambodia.
Diem himself believes that the growing
Communist influence in Cambodia as a
result of Prince Sihanouk's policies fos-
ters the activities of these elements and
poses a serious subversive threat to South
Vietnam In this connection.
he ar-
rest of two Vietnamese army officers and
two French civilians for allegedly plot-
ting to organize an army "coup" in concert with anti-Diem
elements in Cambodia.
Saigon has long been frustrated by its
inability to suppress harassing attacks by dissident sects
and Viet Minh bands using Cambodian territory as a base
of operations. Last August, Diem suggested to the anti-
Communist Cambodian war lord Dap Chhuon
a punitive raid across the Cambodian
border against "Viet Minh guerrillas." Although nothing
materialized, the two men have continued secret liaison
which the American embassy in Saigon suspects may be
aimed at removing Sihanouk from power. A direct meet-
ing between Diem and Dap Chhuon, now Cambodian minister
for national security, was scheduled for last week.
28 Feb 57
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9, BRITISH VIEWS ON CYPRUS ISSUE
Comment on:
The British apparently do not intend to
take the initiative under the 26 February
UN General Assembly resolution toward
serious negotiations for a Cyprus settle-
inent." As a tactical maneuver, London may suggest that
the North Atlantic Council discuss Cyprus, but
that the terms of reference should
not "permit NATO to move too far into substance!' In any
case, British officials appear unreceptive to any modifica-
tion of their Cyprus policy.
Despite growing criticism by the British
press of the government's policy--echoed by some officials
below the cabinet level--London evidently intends to limit it-
self to eliminating terrorism and then implementing the Rad-
cliffe constitution providing for some self-government.
28 Feb 57
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PIINTLITIFIE'Vrry A r
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