CURRENT INTELLIGENCE BULLETIN - 1956/12/25

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03178390
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: December 25, 1956

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CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2)
3.5(c)
4/4
/".
V17.1027/7/14
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25 December 1956
Copy No. 112
DOCUMENT NO. _.
NO CHANGE IN CLANS. r
F.1 DECLASSIFIED
CLASS. CHANGED TO: TS
NEXT FIEV3EW DATE:
AUTHI NH 70opj
-
_REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
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Am,
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0.., 1
CONTENTS
1. SOVIET CENTRAL COMMITTEE DECISIONS
(page 3).
2, OFFICIAL SAYS POLAND NEEDS PROMPT US AID
(page 4).
3. ISRAEL FACES FINAL POLICY DECISION ON FURTHER
SINAI WITHDRAWALS (page 5).
4. ARMY REVOLT IN INDONESIA
(page 6),,
5. CHOU EN-LAS FORTHCOMING VISIT TO MOSCOW
(page 7).
6. ISHIBASHI FORMS NEW JAPANESE CABINET
(page 8).
7. PRAVDA ATTACKS POLISH CONCEPT OF NATIONAL
COMMUNISM (page 9).
8. TURKEY AND GREECE APPARENTLY SHIFTING TACTICS
ON CYPRUS (page 10)-
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SECR FT
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CONFIDENTIAL
1. SOVIET CENTRAL COMMITTEE DECISIONS
Comment on:
On 25 December the Presidium of the
Supreme Soviet, following strong criti-
cism of the economic planning organiza-
tions by the party central committee at
its recent plenum, announced a broad
revision in the composition of the State Economic Commis-
sion for Short Range Planning. In a move intended to in-
crease its authority and efficiency Mo G. Pervukhin, a mem-
ber of the party presidium and first deputy premier, replaced
M. Z. Saburov as chairman of the commission. Five other
high-ranking officials, Kosygin, Malyshev, Khrunichev,
Kucherenko and Matskevich, were named to assist Pervukhin,
at the same time relinquishing their duties as deputy chair-
men of the Council of Ministers.
The communiqu�ssued by the central com-
mittee following its plenary meeting was confined almost en-
tirely to a report on the domestic economy. The reports on
state planning indicated that the over-all 1956 economic plan
for industrial production would be overfulfilled and that the out-
put of consumer goods would be more than nine percent greater
than in 1955. The communiqu�mphasized the improvement
of the "material well-being" of the people and lauded the advan-
tages of a planned economy over the capitalist system. The re-
port, however, attacked the economic planners for their "short-
comings" and specifically criticized the coal, metal, cement
and timber industries for underfulfillment of production plans
even though 1956 production exceeded that of 1955. It noted that
the plans for housing "have been only partially fulfilled" and in-
dicated that construction would be more tightly controlled than
in the past.
The central committee decreed that the Sixth
Five-Year Plan (1956-1960) be drawn up and submitted to the
USSR Supreme Soviet during the first half of 1957. The decree
indicated that the plan would not differ radically from that en
visaged when the Sixth Five-Year Plan directives were presented
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to the 20th party congress last February. Priority for
development of heavy industry was retained and the main
economic task of the USSR was said to be "to catch up with
and outstrip in the shortest historical time possible the
more highly developed capitalist countries with regard to
production per capita:'
The central committee announced that
D. T. Shepilov had been released as a party secretary be-
cause of his earlier aprointment as foreign minister.
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2. OFFICIAL SAYS POLAND NEEDS PROMPT US AID
Polish ambassador Gajewski in Paris on
19 December told Ambassador Dillon that
Poland has great need of prompt economic
aid from the United States so that it will
be in a position to show its people that it
is making progress in improving conditions. He said that
Poland's principal needs are machinery for modernization of
the coal mines and agricultural products, including wheat,
cotton and fats. He also said that the Soviet Union's grant of
1,4002000 tons of grain to Poland next year will not be enough
and that additional help in the form of grain will be needed for
another five to seven years, after which he expects Polish pro-
duction to be adequate
Gajewski thought that mining machinery
might be financed through a World Bank or Export-Import
Bank loan, which would be self-liquidating since the resultant
increase in coal production could be used to pay off the loan.
He said that while it was important that no political conditions
be attached to American aid, the Polish government would be
very flexible and would try to meet any requirements of US
legislation.
Comment Several other Western countries are also
being approached by the Poles for govern-
ment and private loans, as well as more favorable trade ar-
rangements.
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3. ISRAEL FACES FINAL POLICY DECISION ON FURTHER
SINAI WITHDRAWALS
Prime Minister Ben-Gurion told Am-
bassador Lawson that Israel must make
a vital policy decision by early January
on final withdrawal of its forces. By
that time, Israeli forces will have been withdrawn to El
Arish in eastern Sinai, and to a belt of territory adjacent
to the Gulf of Aqaba.
Ben-Gurion expressed a desire to "co-
ordinate Israel's policy with that of the United States if
possible;' and asked for information about the American
position on free Israeli transit of the Suez Canal and the
Gulf of Aqaba, possible Egyptian re-establishment of mil-
itary bases in eastern Sinai, and elimination of continuing
Egyptian-directed terrorist incursions from Jordan,
Ben-Gurion commented that opposition
to further Israeli withdrawals was developing rapidly within
the government and among the public. He attributed this to
increased terrorist activity and to Egypt's insistence on main-
taining a state of war.
Comment Israeli policy appears hardening on the
question of withdrawal from positions
controlling the Gulf of Aqaba, and on re-establishment of
Egyptian forces on Israel's borders, It is likely, therefore,
that Israel will not willingly undertake further withdrawals
from the lines reached by early January, pending guarantees
on matters which it considers vital to its security.
Israel's policy on the Gaza strip was ex-
pressed in Ben-Gurion's statement on 19 December that "in
no event and in no manner would Israel agree to return of
the Egyptian invader to the Gaza strip:'
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4. ARMY REVOLT IN INDONESIA
Comment on:
The bloodless Indonesian army coup on
Sumatra, which began on 20 December,
is increasingly shaping up as a move to
bring about the replacement of the Ali
government in Djakarta.
Colonel Simbolon, the army commander
of north and central Sumatra, who as-
sumed power in that area as a result of
the coup, has called on all Indonesians to obey President
Sukarno and former vice president Hatta "until the new cab-
inet is formed!' He has pledged his allegiance to Sukarno
and stated that normal relations between his command and
Djakarta would be resumed when an "honest" government has
been installed at the capital.
The shakiness of the Indonesian govern-
ment is revealed by its equivocal response to the challenge
with which it is confronted. It has "temporarily" relieved
Simbolon of his command and declared a state of emergency
in limited areas of Sumatra. However, it is sending a dele-
gation to Sumatra to study the situation and to seek a "tactful"
solution. Beyond that, military and civilian authorities are
merely "reminded to observe their oaths of office!' Under
the circumstances, there is a growing belief in Djakarta that
Premier Ali will have to resign in the near future.
Although violence has thus far been
avoided, there is concern that the Communists may stir
up trouble, particularly in Western-owned installations in
Sumatra. The Communist Party has issued a statement
accusing the Masjumi and Socialist Party of supporting the
army move in Sumatra, and has called on all members to
resist these "illegal and undemocratic actions."
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ILAL A' .11.15.11241. I ..ILE-JULi
5. CHOU EN-LAI'S FORTHCOMING VISIT TO MOSCOW
Comme t on:
The desire to work out a common Sino-
Soviet position on Eastern European
developments may be the main consid-
eration in the decision to interrupt
Premier Chou En-laits Asian tour and
send him to Moscow and Warsaw. Chou is scheduled to re-
turn to Peiping, probably for consultation with other party
leaders, and then to go to Moscow on 7 January and to War-
saw some ten days later.
The Soviet leaders almost certainly will
attempt to get from Chou a less equivocal statement of sup-
port for Soviet policies in Eastern Europe than Peiping has
thus far offered. Chinese commentaries have indirectly
criticized Soviet actions to a degree unprecedented for Peiping,
and have described "great-nation chauvinism" as the "main
thing" to be avoided in relationships among bloc countries. The
trip to Moscow will give Chou a chance to tell the Russians
how unsympathetic he found Asian opinion to the Soviet inter-
vention in Hungary.
While the Chinese have shown clearly that
they favor a relatively liberal and flexible Soviet policy in
Eastern Europe, they also have demonstrated that they wish
to avoid a public quarrel on the question. Recent Peiping com-
ment, like Moscow's, has emphasized the need for unity within
the bloc.
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6, ISHIBASHI FORMS NEW JAPANESE CABINET
Comment on:
Japanese prime minister Ishibashrs
formation of a cabinet on 23 December,
after four days of bitter factional
wrangling, was achieved only by as -
suming three disputed cabinet posts himself. Most Japa-
nese observers believe that the wide diversity of views
among the new ministers, appointed in order to placate
all party factions, will hamper the cabinet's efficiency and
force early general elections. Most of the new cabinet's
members are assuming top government posts for the first
time, although they appear to have considerable experience
in their fields.
Foreign Minister Kishi, like the prime
minister, advocates continuing close co-operation with the
United States after certain "adjustments" to provide greater
equality in relationships. Finance Minister Ikeda, who
served in the Yoshida cabinet and who advocates a "tight
money" policy, was evidently appointed in an effort to re-
assure financial circles who fear Ishibashi's inflationary
fiscal policies.
Following his initial cabinet meeting on
24 December, Ishibashi stated that his policies will in-
clude strong economic co-operation with the Asian-African
bloc, an "independent" foreign policy, full co-operation with
the free nations in the UN, and improvement of relations with
Communist China through trade and a relaxation of the stra-
tegic goods embargo. He asserted, however, that Japan will
not seek diplomatic relations with Communist China.
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7. PRAVDA ATTACKS POLISH CONCEPT OF
NATIONAL COMMUNISM
Comment on:
Pravda's attack of 23 December on the
"individual roads to socialism" followed
in Poland and Yugoslavia shows Moscow's
continued uneasiness over developments
in these countries, particularly in Poland.
The Pravda article rejected the concept of the "correct rela-
tions" between Communist parties which a Polish writer re-
cently said were based on "the principles of co-existence
with the absence of any tendencies toward hegemony:' It
quoted with approval the statement in a joint Czech-East Ger-
man communiqu�hat "all this talk about alleged national Com-
munism contradicts Marxism- Leninism'
Though the article paid deference to the
principle of full equality among Communist nations, it defended
the concept of Soviet leadership with the statement that "the
policy of proletarian internationalism presupposes on the part
of the workers of all lands the support and defense of countries
�which have already entered the path of socialism!'
Poland and Yugoslavia can be expected to
react with firm reassertions of their view that they are en-
titled to pursue individual courses of development without in-
terference and that co-operation among Communist countries
does not presuppose domination of one by the other.
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SECRET
8. TURKEY AND GREECE APPARENTLY SHIFTING
TACTICS ON CYPRUS
Comment on:
Greece and Turkey appear to be shifting
their tactics in seeking a solution to the
Cyprus problem. There have been some
indications that Greece will direct its UN
appeal toward independence for the island, and Turkey is
pressing for partition as the only solution which would elimi-
nate the possibility of Cyprus' eventual union with Greece.
Ankara stated in a memorandum on 20
December that agreement in principle was reached with Lon-
don during the recent visit of British colonial secretary Lennox-
Boyd. Turkey promised a favorable reaction to the latest Brit-
ish constitutional proposals for Cyprus in return for Britain's
acceptance of the concept of partition on the basis of "integral
self-determination." Athens, on the other hand, appears to be
veering toward independence for Cyprus to counteract the im-
pression in some UN delegations that "self-determination" is
merely a euphemism for annexation.
The British government has indicated no in-
tention of surrendering sovereignty over Cyprus in the foresee-
able future and apparently plans to continue its present policy.
The cabinet has already considered and rejected partition, and
Lennox-Boyd probably raised the subject in Parliament only to
placate the Turks.
Athens and the Greek Cypriots have con-
demned the suggestion that Cyprus be partitioned.
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