CURRENT INTELLIGENCE BULLETIN - 1956/07/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03166567
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: July 22, 1956

APPr"ed for Release: 2019/10/23 C0317567
TO-P-SEGRE,
CURRENT
INTELLIGENCE
4 BULLETIN
//4
rif).
3.3(h)(2)
22 July 1956
/
SS.
Copy No, 105
DOCUMENT NO.
NO CHANGE IN CL
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CHANGED TO:
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VIEW
DATE:
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4�IILVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. INITIAL EGYPTIAN REACTION TO US STATEMENT ON
HIGH DAM (page 3).
2. COMMUNISTS CONTROL TWO POSTS IN NEW ICELANDIC
GOVERNMENT (page 4).
3. BRITISH FOREIGN OFFICE FAVORS CONTINUING MORA-
TORIUM ON CHINESE UN REPRESENTATION
(page 5).
4. JAPANESE FOREIGN MINISTER REQUESTS INFORMATION
rON_UST PHILIPPINES BASES ARRANGEMENT
(page 6).
5. NEW ARMS SHIPMENTS TO ALGERIA
(page 7).
6, MOSCOW ALLEGEDLY CONSIDERS GRANTING SATEL- �
LITES GREATER INDEPENDENCE (page 8).
THE ARAB-ISRAELI SITUATION
(page 9)
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1. INITIAL EGYPTIAN REACTION TO US STATEMENT
ON HIGH DAM
Comment on:
Egyptian
spokesmen in Cairo state that replies to the American and
British withdrawal of offers on the dam will be made after the
government studies reports from its ambassadors in Washing-
ton and London.
The Egyptian press, which will be followed
by the Arab press generally, has taken a bitter line toward the
US and Britain over the withdrawal of the offer to help build the
dam and asserts that the dam will be built whether the "imperial-
ists" help or not. Radio Cairo, meanwhile, is broadcasting re-
ports that Soviet news releases are commenting favorably on
Egypt's "new and independent policy" and quoting Soviet press
criticism of the American action.
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2. COMMUNISTS CONTROL TWO POSTS IN NEW
ICELANDIC GOVERNMENT
The new six-man Icelandic govern-
ment as reported on 21 July gives
the Communist-dominated Labor
Alliance two important cabinet posts,
but does not immediately threaten
the American-manned NATO base at Keflavik or Iceland's
continued adherence to NATO. The new government will,
however, probably press for some face-saving revisions in
the status of the base along the lines of the parliamentary
resolution of 28 March calling for the withdrawal of Ameri-
can troops.
The Progressives (agrarians), the Social
Democrats and the Labor Alliance each received two seats
in the cabinet. The ministries going to the Labor. Alliance,
which consists of dissident left-wing Socialists and Commu-
nists, reportedly include Commerce, Fisheries and Social
Welfare. Through their administration of these ministries
the Communists hope to acquire a stranglehold on the nation's
economy and build up a strong political machine.
The new prime minister is the oppor-
tunistic chairman of the Progressive Party, Herman
Jonasson. The Foreign Ministry went to Gudmundur
Gudmundsson, a strong right-wing Social Democrat who
was reportedly opposed for this post by the Labor Alliance.
The Labor. Alliance also presumably accepted the Social
Democrats' condition that the new government issue a
declaration of Iceland's continued adherence to NATO.
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3. BRITISH FOREIGN OFFICE FAVORS CONTINUING
MORATORIUM ON CHINESE UN REPRESENTATION
The British Foreign Office
has
recommended to the cabinet a con-
tinuation through the next session of
the General Assembly of the moratorium on discussion of
seating the Chinese Communists in the UN. He hoped for
a cabinet decision within the next few days, but pointed out
that the cabinet may wish to support the moratorium only
until the end of the calendar year.
Comment During his talks in Washington last
January, Prime Minister Eden was
noncommittal on the question of continuing the moratorium
for the duration of the General Assembly session, which
opens 12 November and continues until about March. The
line he took at the Commonwealth prime ministers conference
in late June, however, suggests that he may now be ready to
agree to further postponement of the China question.
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4 JAPANESE FOREIGN MINISTER REQUESTS INFORMATION
ON US-PHILIPPINES BASES ARRANGEMENT
Comment
The details of the transfer of American
ownership of bases in the Philippines
have yet to be negotiated. The Japanese may be expected to
follow these negotiations closely and to use any agreement as
a precedent in the future for opposing American ownership of
bases on Okinawa.
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5. NEW ARMS SHIPMENTS TO ALGERIA REPORTED
Ten loads of arms, possibly light
antitank guns, destined for the
Algerian rebels were to be shipped
from Belgium to Libya by a Belgian
airline beginning 12 July,
Moroccan
government now supplying the Algerians
with small arms being turned over to the Moroccans by the
Spanish army as part of the general transfer of authority in
the northern zone. arrangements
have been made with Spain to understate in official records
the number of arms turned over and that weapons "lost" in
this fashion have already been channeled to the Algerian re-
sistance. the Moroccans have also made a
deal with Spain to purchase other arms ostensibly for their
own army but actually for the Algerians who have already
made the money available for this transaction.
Comment
The direct complicity of the Moroccan
government in the traffic had been suspected but not previously
confirmed. This complicity, probably encouraged by Spain,
may be expected to increase in the light of the avowed determ-
ination of the sultan's government to support Algerian independ-
ence "to the limit P The Algerian nationalists continue to stiffer
from a general shortage of weapons and munitions.
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6. MOSCOW ALLEGEDLY CONSIDERS GRANTING
SATELLITES GREATER INDEPENDENCE
the USSR intends at an unspecified
date to request a summit conference with the United States
to discuss granting "Titoist" type independence to the
Eastern European Satellites.
East Germany would be
excluded from the negotiations because there is no solu-
tion for the German reunification problem, and that Poland
would also be excluded because it borders on divided Ger=
�many.
Comment Moscow may have passed such informa-
tion to in an effort to
appeal to the Socialists and others who would view it as an
indication the USSR aims ultimately at loosening its control
over the Satellites.
It is highly unlikely, however, that the USSR--
if it decided to give the Satellites greater independence--would
request a summit conference to deal with a matter Moscow has
insisted concerns only itself and the Satellite governments.
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 22 July)
UN secretary general Hammarskj old
made an unexpected change in his itinerary to include a stop
in Amman on 21 July for discussions with Jordanian officials
before proceeding as planned to Cairo. American officials in
Jerusalem suggest that discussions between Hammarskjold and
Israeli officials may have included other issues besides cease-
fire arrangements on the Israeli-Arab borders. The presence
of the president of the Bank of Israel at one of the functions
given for Hammarskjold is considered an indication that in-
demnity for the Palestine rpfnweps who lost nronertv in Israel
might have been discussed.
The American army attache in Tel Aviv
reports a reshuffling of high Israeli army officers, including
replacement of the chief of the Israeli armored forces. The
attache believes these changes indicate the armored forces.
may be having organizational and operational difficulties and
that the new chief has been assigned as a trouble shooter. The
attache also has received unconfirmed reports that armored
exercises will be held for four days next week in the Negev area.
Recent maneuvers in Israel's northern command have apparently
been concluded and the roads have been opened to the public. The
attache believes, however, that a new cycle of training, probably
the 30-day annual training of reserves, has started. If this fol-
lows last years' pattern, it will end in mid-August with field ex-
ercises in the northern command.
The American navy attach�n London has
received information that Egypt is getting or has ordered four
regular submarines and has already received three midget sub:-
marine4 which will have the primary mission of blockading Israeli
ports. Egypt reportedly is to receive submarines as part of the
Soviet bloc arms deal but there is no firm information that any have
been delivered.
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