CURRENT INTELLIGENCE BULLETIN - 1957/07/31

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169404
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 12, 2019
• Document Release Date: December 20, 2019
• Publication Date: July 31, 1957

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CURRENT
INTELLIGENCE
BULLETIN
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AUTH: HR 70-2
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DATE: .
31 July 1957
Copy No.
NO CL.1,723.
/36
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
This document contains classified information affecting
the national security of the United States within the
meaning of the espionage laws, US Code Title 18, Sections
793, 794, and 798. The law prohibits its transmission
or the revelation of its contents in any manner to an un-
authorized person, as well as its use in any manner
prejudicial to the safety or interest of the United States
or for the benefit of any foreign government to the detri-
ment of the United States.
TOP
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CONTENTS
J. MOSCOW LAYS ECONOMIC BASIS TO IMPROVE RELA-
TIONS WITH YUGOSLAVIA (page 3).
6 r) 2. CZECHOSLOVAKIA TO EXPAND AIR SERVICE IN MIDDLE
EAST (page 4).
(;
3. THE SITUATION IN GUATEMALA
(page 5).
CHOU EN-LAI ATTACKS KISHI'S ATTITUDES ON CHINA
(page 6).
5. NEW NEPALESE PRIME MINISTER DENIES HE IS A
COMMUNIST (page 7).
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6. U NU INDICATES INTEREST IN COMMUNIST ARMS OFFERS
TO BURMA (page 8).
31 July 57
Current Intelligence Bulletin Page 2
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1. MOSCOW LAYS ECONOMIC BASIS TO IMPROVE
RELATIONS WITH YUGOSLAVIA
The USSR and East Germany signed a
protocol on 29 July with Yugoslavia
relating to the terms for the construc-
tion of the aluminum factory which had
been promised the Yugoslays last
summer. The Yugoslays have announced that this agree-
ment was accompanied by one "relating to the completion
dates" for other projects in which the USSR had agreed
in 1956 to participate.
Comment While the details remain to be
announced, Belgrade presumably will
regard the agreements as a major step toward the
restoration of good government relations with the USSR
Tito indicated last week that the outcome of the economic
negotiations then under way in Moscow would be the "acid
test" of Soviet intentions.
Moscow had earlier claimed that
"economic difficulties" had necessitated the postpone-
ment of a $175,000,000 credit for the aluminum project
until 1962.
31 July 57
Current Intelligence Bulletin Page 3
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2. CZECHOSLOVAKIA TO EXPAND AIR SERVICE IN
MIDDLE EAST
Comment on:
On 27 July, Czechoslovakia concluded
a civil air agreement with Lebanon.
The agreement grants reciprocal
service between Prague and Beirut
and follows the conclusion of a
similar agreement with Syria on
24 July for flights between Prague
and Damascus.
Czech flights en route to either
Beirut or Cairo will be made via Greece, where.the
Czechs have landing rights, and will probably use
Soviet TU-104 jet transports which Czechoslovakia
has recently purchased.
The agreement for service to
Beirut, the most active international air terminal
in the area, gives Czechoslovakia access to
major Middle East commercial air center.
31 July 57
Current Intelligence Bulletin Page 4
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3. THE SITUATION IN GUATEMALA
Comment on:
Guatemala is outwardly calni under tight
military control,but reports of plotting
and impending violence are increasing and
trouble may break out within the next few
days.
Government officials, members of the Na-
tional Democratic Movement, the party of former president
Carlos Castillo Armas, fear that army officers are planning
to oust Castillo supporters from the government and that some
top officials may be murdered,
If a coup occurs, jealousies existing within army and
civilian groups will come out in the open and may result in vio-
lence.
In the struggle for power, strong man De-
fense Minister Col. Juan Francisco Oliva is eliminating from
the political scene his major rival,Ambassador to the United
States Col. Jose Luis Cruz Salazar, by directing President
Gonzalez to send Cruz Salazar back to Washington.
31 July 57
Current Intelligence Bulletin Page 5
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4. CHOU EN-LAI ATTACKS KLSHIS ATTITUDES ON CHINA
Comment on:
Chou En-lai's biting criticism of Japanese
Prime Minister Kishi, made in an interview
with visiting Japanese news correspondents
in Peiping on 25 July, reflects Peiping's
concern that a strong anti-Communist policy
might emerge under Kishi's leadership. Chou's comments were
aimed at arousing Japanese public opinion to forestall such a
development.
Chou declared that the Japanese Socialist
�Party and members of Kishi's Liberal Democratic Party favor
early recognition of Peiping, and suggested that Kishi has adopted
an unfriendly attitude in order to "seek trouble" with China, ali-
enate other Asian nations from Peiping, and seek the favor of
the US. Chou singled out for heaviest criticism Kishi's recent
trip to Taiwan, alleging that Kishi declared his support for Chiang
Kai-shek's efforts to regain the mainland, and his trip to the US,
where Kishi repeated his "slanders" against the Chinese Commu-
nists.
In restating his long-sought objectives, Chou
called for continued cultural contacts and an exchange of official
trade missions as forerunners to full diplomatic relations between
the two countries. Kishi has stated that he will not recognize
Peiping until it enters the UN, even though he is working toward
expanded trade with the mainland.
Chou repeated his promise that the Sino-
Soviet treaty of 1950, which guarantees Sino-Soviet collabora-
tion in defense against attacks from Japan, would be "revised"
if Japan abrogates its security treaty with the US and brings
about the withdrawal of American forces.
31 July 57
Current Intelligence Bulletin Page 6
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5. NEW NEPALESE PRIME MINISTER DENIES
HE IS A COMMUNIST
Reference:
K. I. Singh, the new Nepalese prime
minister, told an American embassy
representative on 25 July that he was
distressed at the American news accounts
of him as a leftist. He asked the representative to assure the
American ambassador in New Delhi of his friendship for the
United States. He said he is not a Communist but that during
his three years in Communist China, where he was in exile
following an abortive coup in 1952, he had to behave in a man-
ner pleasing to his hosts.
Singh asked that he be judged by his deeds,
not his words. He said he was anxious to keep the Russians
and Chinese out of Nepal. He expressed an interest in dis-
cussing the American aid agreement after he had studied it.
The Indian ambassador is unwilling to guess
the degree of Communist influence on Singh. A member of the
Nepali congress and a US news correspondent have concluded
that Singh is a Communist. The King, however, appears to have
accepted his disclaimers at face value.
31 July 57
Current Intelligence Bulletin Page 7
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6. U NU INDICATES INTEREST IN COMMUNIST ARMS
OFFERS TO BURMA
Comment on:
Prime Minister U Nu told the press on
30 July that Burma is studying "with
sympathy" offers made by Czechoslovakia
and Yugoslavia to sell military equipment
to Burma. Nu added that it was the policy
of his government to purchase arms from any source without
regard to "ideological considerations," provided it is within
Burma's means to do so.
Nu's remarks would appear to confirm press
reports originating in Rangoon last week that the Czechs had of-
fered to sell Burma a wide range of weapons to be paid for in
rice at an "advantageous price."
31 July 57
Current Intelligence Bulletin Page 8
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