CURRENT INTELLIGENCE BULLETIN - 1956/09/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03178362
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: September 3, 1956

V pproved for Release: 2019/10/23 C03178362
Cl.t' 4.N.ILUICE
CURRENT
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INTELLIGENCE
BULLETIN
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3 3(h)(2)
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3 September 1956 r
Copy No (15
DOCUMENT NO.
NO CHANCE IN CLASS. 1;t
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CLASS. CHANGED TO.:IFS2.4ceit_
NEXT REVIEW DATE:
P.T,Z4v-,,EviEwER,_
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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IMF
CONTENTS
1. CHANGE OF EMI:TARTS IN FRENCH ALGERIAN POLICY
SEEN PROBABLE
(page 3).
2. HATOYAMA CABINET FACES CRISIS OVER POLICY ON
JAPAN-USSR TREATY (page 4).
3. CYPRIOT OFFICIAL TERMS GRIVAS DIARY �COMPLETETT
AUTHENTIC'
(page 5).
4. PATHET LAO STALLING FINAL SETTLEMENT IN LAOS
(page 6).
5. SOVIET PARTY MEETING REPORTED SCHEDULED FOR
EARLY SEPTEMBER (page 7).
3 Sept 56
7TE ARAR-TRRAFTJ 7TUATION
(page 8)
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1. CHANGE OF EMPHASIS IN FRENCH ALGERIAN POLICY
SEEN PROBABLE
A change of emphasis in the French gov-
ernment's Algerian policy is probable
"now that pacification has reached an
advanced stage,"
The source thinks the gov-
ernment will soon undertake discussions, possible includ-
ing the offer of a federation status to Algeria, followed by
elections. Popular Republican support for such
a change, as well as Marshal Juin's speech on 27 August
calling for a federative solution.
it is unlikely
that ailing Robert Lacoste, French minister residing in
Algeria, will be replaced, despite his advocacy of "pacifi-
cation first:'
Comment
Juin's speech was the first open indica-
tion that the hitherto adamant rightist
position on Algeria might be modified, and thus enable
Mollet to consider a policy change.
the premier in mid-August as
being extremely concerned over the economic drain on
France and as expressing interest in a meeting in Belgium
between some of his trusted advisers and Algerian labor
union leaders to explore the possibilities of a truce. Fur-
thermore, the French military effort apparently has not
been progressing according to schedule and the degree of
success which the government hoped to secure by October--
when the National Assembly reconvenes--is probably be-
yond reach.
Lacoste will probably continue to in-
sist, when the premier confers with him this week, that
the real key to the maintenance of France's position in
Algeria lies in deaiingadamaginglow to Egyptian pre-
mier Nasr's prestige.
&Sept 56
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2. HATOYAMA CABINET FACES CRISIS OVER POLICY ON
JAPAN-USSR TREATY
Foreign Minister Shigemitsu's return to
Tokyo to report on the Moscow peace
treaty negotiations has initiated a politi-
cal storm which gives every indication
ro-f becoming a 'full-scale crisis" for the Hatoyama cabinet.
debate over
the policy to be followed has aroused deep-seated rivalries
among the various conservative factions, and has caused a
bitter struggle for leadership. While the possibility of a
split in the Liberal-Democratic Party cannot be ruled out,
a cabinet reshuffle is more likely.
a de-
cision will be made whether to send Prime Minister Hatoyama
to Moscow in an attempt to reach a compromise with the Rus-
sians. Such a trip would necessitate the selection of an act-
ing prime minister and probably new cabinet appointments--
the prospect of which has brought political maneuvering to
a fever pitch.
Comment Conservative leaders for several months
have acknowledged that Hatoyama's weak
and inept leadership has become a political liability, but they
have been unable to agree on a successor. Hatoyama has often
asserted that the restoration of relations with the USSR would
crown his career, after which he would be willing to retire.
There is increasing speculation in Tokyo
that Foreign Minister Shigemitsu will be among those dropped
in any cabinet reshuffle.
3 Sept 56
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3. CYPRIOT OFFICIAL TERMS GRIVAS DIARY
"COMPLETELY AUTHENTIC"
Comment
Grivas' diary and other captured EOKA
documents also allegedly implicate other
Cypriot and Greek officials in the widespread terrorist cam-
paign on Cyprus. Included among these is the highest rank-
ing Greek Orthodox Church official on Cyprus who became
the clerical and political successor to Archbishop Makarios
after his exile.
Disclosure of these documents has strength-
ened the British case against Makarios and the Greek govern-
ment. Makarios is open to charges of treason and Greek gov-
ernment officials to charges of inciting rebellion in the terri-
tory of another sovereign country. The British may use these
themes if the Cyprus issue reaches open debate in the North
Atlantic Council or the UN General Assembly.
3 Sept 56
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4� PATHET LAO STALLING FINAL SETTLEMENT IN LAOS
The Pathet Lao has not yet sent repre-
sentatives to the mixed civilian and
military commissions to work out a de-
tailed settlement implementing the
agreements in principle reached be-
ween remier. Souvanna Phouma and Prince Souphan-
nouvong earlier this month. Moreover, the Pathets have
frequently violated the cease-fire agreement in the two
disputed northern provinces of Sam Neua and Phong Saly,
Souvanna reportedly told the French charge on 31 August.
Souvanna Phouma said he was "most
disturbed" by this turn in government- Pathet relations.
He was, however, determined to have the mixed commis-
sions begin their work, and has "summoned" Souphannouvong
to come at once to Vientiane with his negotiating teams.
Comment Souvanna, who has returned generally
pleased with the success of his trip to
Peiping and Hanoi, has gone to great lengths to reach a
settlement with the Pathet Lao and bring about the reunifi-
cation of Laos. A final settlement, however, is dependent
on the negotiations of the mixed commissions.
The Pathets, who are tightly controlled
by the Viet Minh, have been reluctant to discuss the details
of such vital matters as the restoration of the government's
control over the disputed provinces and the integration of
Pathet troops into the royal army. With the support of
Peiping and Hanoi, they are apparently stalling for terms
which would leave them in control of both their troops and
their territory.
3 Sept 56
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5, SOVIET PARTY MEETING REPORTED SCHEDULED FOR
EARLY SEPTEMBER
Ralph Parker, former London Daily
Worker correspondent in Moscow, told
an American correspondent there re-
cently that a central committee plenum
is scheduled for the first part of September. Parker, who
has a number of Soviet contacts and has from time to time
accurately reported on party matters, understood the ple-
num would consider measures to raise the wages of the
lowest-paid workers.
Comment a plenum
scheduled for "sometime in June" had
been postponed. The party's statutes call for at least one
plenum every six months and the last known plenum was
held on 27 February following the 20th Party Congress.
A discussion of wage matters might re-
late to the "resignation" of Lazar Kaganovich on 6 June as
chairman of the State Committee on Wages and Labor. If
so, there may be some clarification of his present position
in the top leadership. Khrushchev at the party congress
had called for raising the wages of the lowest-paid workers.
A month later -Mikoyan indicated they would be raised by
one third this year. The plenum could also discuss the
Suez = Canal crisis and harvest difficulties in the New Lands.
3 Sept 56
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 3 September)
the UN truce supervisory
organization in the Gaza area reports that Israeli forces have
resumed close-in patrols of the border by units of platoon
strength, according to the American army attach�n Tel Aviv,
Increased clashes with Egyptian forces are probable as a re-
sult of this type of activity, which in turn is probably the result
of some renewal of Ezvptian terrorist depredations.
3 Sept 56
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