CURRENT INTELLIGENCE BULLETIN - 1956/11/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03180485
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 21
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: November 3, 1956

Approved for Release: 2019/10/23 C03180485
CURRENT
INTELLIGENCE
BULLETIN
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3 November 1956
Copy No.
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. THE SITUATION IN HUNGARY
2. HOSTILITIES IN EGYPT (
(page 3).
) (page 5).
3, USSR TELLS EGYPT FURTHER AID DELIVERY IS IMPOS-
SIBLE (page 8).
4. NEW DEVELOPMENTS IN JORDAN AND SYRIA
page 9).
ICISM OF EDEN INCREASING IN BRITAIN
(page 11).
6. PINE
CRISIS
7. FRA/sT
LIBYA
LINES FRENCH-BRITISH OBJECTIVES IN SUEZ
(page 13).
XPECTED TO WITHDRAW TROOPS FROM
(page 14).
SITUATION IN POLAND, EAST GERMANY AND CZECHO-
SLOVAKIA ) (page 15).
9. SOUTH KOREAN DEMONSTRATIONS TO PROMOTE
"FORCEFUL" UNIFICATION page 17).
10. HANOI ANNOUNCES "LIBERALIZATION" PROGRAM
(page 18).
* * * *
THE ARAB-ISRAELI SITUATION
(page 19)
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CONFIDENTIAL -.4mormo
1. THE SITUATION IN HUNGARY (information as of 0100,
3 November)
The reinforcement of Soviet units in
Hungary during the past three days,
coincident with the movement of Soviet
troops already within the country and
a recent switch in the USSR's propaganda
line concerning Hungarian political devel-
opments, indicate an imminent Soviet
move to block Hungarian efforts to sever
virtually all ties with Moscow. These
developments also suggest that the USSR
is now prepared to resume hostilities if the present show-
of-force fails to "correct" what Moscow has already called
an alarming situation.
that the USSR is sending heavy Soviet troop reinforcement
into Hungary. t least
600 Soviet tanks have recently enterea Lne COWILI from the
USSR and Rumania. The USSR, probably reacting to Hun-
gary's sudden and unilateral withdrawal from the Warsaw
pact and its request to the United Nations to guarantee Hun-
gary's neutrality, has apparently deployed Soviet forces
throughout the country in strategic areas and has surrounded
or occupied key urban centers.
According to the American army attache
in Budapest, Soviet troops in western Hungary have in effect
sealed Hungary's border with Austria and thus have severed
all contacts with the West except for existing electrical com-
munications facilities, The attache also reported the begin-
ning of sporadic firing by machine guns and heavier weapons
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CONFIDENTIAL
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Noe Nasormoe
in Budapest, beginning at 1830 hours (Budapest time), and
noted that present Soviet troop dispositions in the area
render the situation "critical for the nationalists:*
Hungarian forces under control of the
Nagy regime and insurgent forces in the provinces are
reportedly preparing for action, but indications of hostil-
ities have been limited to the attach6's report of firing in
Budapest. The Nagy regime has pressed its fight for United
Nations action--sending three notes to that body on 1 and
2 November--but is not yet ready to assume that the USSR
has committed "an act of provocation." Hoping for the best�
the new first deputy minister of defense; insurgent hero
Major General Pal Maleter, informed the press on 2 Novem-
ber that Soviet first deputy premier Mikoyan promised in
Budapest on 31 October that Soviet troops other than those
stationed in Hungary under the Warsaw pact would be with-
drawn from the country.
Possibly in preparation for a new Soviet
move in Hungary, broadcasts from Moscow during the eve-
ning Of 2 November stated, in thinly-veiled language, that
the USSR views with alarm the present "tense" and "chaotic"
situation in Hungary and warned Budapest "against a wrong
step:* Condemning Hungarian declarations of neutrality and
asserting that "reactionary counterrevolutionaries" �
strengthened by reinforcements arriving from Austria with
American connivance--have scored at least partial successes,
the broadcasts pointed out that such events are not questions
which concern "only a single socialist country."
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2. HOSTILITIES IN EGYPT (information as of 0200, 3 November)
The Israeli victory in eastern binai has
been consolidated by the surrender of
Egyptian garrisons at Gaza, El Arish
and at several other major points of re-
sistance bypassed earlier in the drive
toward the Suez Canal. Israel has claimed
capture of 15,000 Egyptian troops, 100
tanks and 500 "guns," and announced that
its advance units are now within 10 miles
of the southern end of the Suez Canal.
The Israeli advance is moving toward
the three key Suez Canal cities of Suez,
Ismailia, and Port Said. An Israeli
spokesman has declared that there will
be no Israeli activities west of the canal.
He expressed the belief, however, that
Israel would hold the conquered territory
in Sinai until "peaceful relations" were reached with the Arab
world, and until Israel was free to use the canal.
A new Israeli move to seize control of the
shore along, and entrance to, the Gulf of_e_n_ahn_ixtmeh_leads
tn the Israeli port of Eilat, is indicated
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Egyp-
tian naval vessels were warned to be vigilant, and to explode
charges under the surface of the water periodically.
On 2 November Syria announced through
its embassy in Washington that it had "decided to implement
the joint Syrian-Egyptian defense pact" and that all of Syria's
forces would be placed under Egyptian command, as a result
of the government's decision to help Egypt against Israel. If
Syrian troops enter Jordan in order to attack Israel, Israel
may attack West Jordan with strong armored formations,
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16...A. 1.A...4 A
V1,0' \mitiMUe
, f CYPRUS
(U.K.
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VoeS, ISRAELI MOVES 2 NOV.
SELECTED ROAD
4.:�*0 REPORTED SYRIAN TROOP MOVEMENT
/Th POSSIBLE EGYPTIAN HOLDING :POSITIONS-
CAIRO
20
3 Nov 56
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Suez,
ISRAEL CLAIMS
15,000 CAPTURED
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Current Intelligence Bulletin
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SAUDI ARABIA
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3. USSR TELLS EGYPT FURTHER AID DELIVERY
IS IMPOSSIBLE
F-4 was impossible for the Mit in
present circumstances to send any
further arms, fuel, or experts to Egypt
because of the Ando-French air-sea
blockade.
The USSR apparently desires to mini-
mize the risk to itself of direct military involvement in the
Middle East. Despite rumors of the imminent arrival of
Soviet war materiel and "volunteers," there has been no
firm evidence that the USSR is preparing to take an active
part in the fighting, and Soviet statements of support for
Egypt have been noncommittal.
Despite the absence of any new Soviet
promises, some Arab leaders had expected the USSR to come
tel their. aid
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4. NEW DEVELOPMENTS IN JORDAN AND SYRIA
tf,
Israeli radio announcements that Syrian
and Iraqi forces have entered Jordan,
and other fragmentary evidence
suggest that moves to involve Jordan
in the hostilities with Israel and to
partition the country are under way.
the consensus was that Iraqi troops
were being moved to various frontiers
rather than across the border into
Jordan. Iraq is reported to have de-
ployed one division about 40 miles
from the Jordan border in western
Iraq.
British troops were
evacuating their bases at Aqaba and
Mafraq in Jordan, and that Saudi
Arabian troops were expected to oc-
cupy Aqaba.
an airlift of Saudi troops to a point near the
Jordan border may be underway. The Syrians expected
the � to cm_Iract.tern Jordan.
the British
;urned over to the Jordanian army the supply base at
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Aqaba, together with all British items required for complete
mobilization of the Jordanian forces. All British personnel
of the Aqaba base and British military advisers with the Jor-
dan army have been evacuated to Mafraq. (See map, page 1.)
the French had
agreea to attempt to persuaae grime minister Eden to ap-
prove the partition of Jordan, with Israel to occupy all terri-
tory west of the Jordan River. Under the plan, the British
were to occupy the rest of the country, probably through the
Iraqis. If the proposal were turned down by Eden, the French
were reported to have agreed that Israel would occupy the
west bank unilaterally.
been raised
the situation in Syria might deteriorate during
the next 24 hours to the benefit of Egypt.
Ph p nnssihilitv nf a ntin in Syria hag
Turkey was
concentrating forces against Syria, and was preparing to
begin operations against Alenno
Turkey had joined
with Britain, France and Israel in joint planning against
the Arabs. Reports for the past several months have in-
dicated that both leftist and rightist groups were preparing
for coup action in Syria; Turkey, among others, has indi-
cated its conviction that something would have to be done
to counter the leftist drift there.
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5. CRITICISM OF EDEN INCREASING IN BRITAIN
The American embassy in London has
the impression that the average Briton is
"not at all happy" over British interven-
tion in Egypt. It is not even clear whether
the Conservative Party as a whole supports
the government's action, according to the
embassy.
The Express, a firm government supporter,,
reported on 2 November that some 30 "discontented Tories"'
could probably not be held in check over the week end. A
Conservative member of the House of Lords reported a definite
move in the party to replace Eden.
A member of the Labor Party's shadow
cabinet expressed disappointment to American embassy offi-
cials because no Conservatives deserted the government in
the House of Commons' policy vote on 1 November. He thought,
however, that "not a few" older Tory members who are dis-
turbed by the government's actions are probably awaiting de-
velopments.
The Labor Party will immediately launch
mass protest meetings to be addressed by top party leaders.
Some trade union members are urging protest strikes, but
union leaders have announced that the Trades Union Congress
will not countenance unauthorized strikes.
Labor Party leaders, including Gaitskell
and Bevan, expressed appreciation to the embassy for Amer-
ican action at the UN and strongly urged that Washington main-
tain its firm opposition to the "Eden-Monet folly" in the Middle
East. Gaitskell scoffed at the idea that strong American action
in the UN would strain the Anglo-American alliance. He insisted
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that continued firmness on the part of the United States is
the only way to heal the injury being inflicted on the alli-
ance by Eden.
The British government's formal posi-
tion is that the UN cease-fire resolution represents an im-
proper application of the Uniting For Peace resolution of
1950.
According to the American embassy,
� Eden's personal spokesman told a "selected group" of
American reporters off-the-record on 31 October that
despite the "great damage" done to the Anglo-American
alliance, Britain belieyes the situation can eventually be
restored. Categorically denying any collusion between
Britain and Israel, the British spokesman indicated that
quick action was necessary because of imminent Egyptian
plans to "knock off" Jordan and then Iraq. The spokesman
implied that the "actual decision" to use force was reached
in talks with French premier Mollet and foreign minister
Pineau the afternoon of 30 October.
a
A well-informed British diplomatic cor-
respondent told the American embassy on 2 November that
the Israeli embassy had told him "as background" that
Israel, before attacking Egypt, had been assured of Anglo-
French "protection" in the Security Council and additional
"hardware" from France.
if action in
the Middle East continues for several weeks, the USSR
might attempt to furnish Egypt pilots, technical advisers.
additional armament, and ammunition.
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PINEAU OUTLINES FRENCH-BRITISH OBJECTIVES
IN SUEZ CRISIS
French foreign minister Pineau told
Ambassador Dillon on 1 November that
the ultimate French-British objective
in Egypt is the convocation of a confer-
ence with a carefully picked membership including the
Soviet Union. He felt that the conference might arrive at
an Arab-Israeli peace treaty, and settle the status of the
Suez Canal, and the future status of Jordan.
According to Pineau, the immediate
Israeli objective is the total destruction or capture of all
Egyptian forces east of Suez, and the immediate French-
British goal is the occupation of the canal zone Pineau
said France and Britain would leave the question of Nasr's
future to the Egyptian people and hoped they would get rid
of him.
Pineau said that following the 13 October
UN Security Council meeting, the Israelis approached the
French and expressed their determination to move against
Egypt in self-defense. The matter was then taken up with
the British government and final decisions regarding the
present course of action were taken during the 17 October
Eden Lloyd visit to Paris. Pineau added that discussion of
the proposed entry of Iraqi troops into Jordan served pri-
marily as a smoke screen.
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7. FRANCE NOT EXPECTED TO WITHDRAW TROOPS
FROM LIBYA
Ambassador Tappin in Tripoli, follow-
ing his three-day tour of the Fezzan in
western Libya, has concluded that France
has no intention of withdrawing its troops
rom e ezzan by the 30 November deadline provided for
by the French-Libyan treaty of 1955. Tappin noted that the
French instead are reinforcing their garrisons, increasing
ammunition supplies, stringing barbed wire, and generally
"digging in."
Prime Minister Ben Halim told Tappin
on 31 October that British-French reoccupation of the Suez
would create an "impossible situation" for Libya. He said
his government might not be able to maintain law and order,
or the security of the American air base and other installa-
tions in Libya.
Comment France has been determined to keep its
1,500 troops in the Fezzan to combat the
smuggling of arms through Libya to Algeria. Anti-British-
French demonstrations and sabotage have already occurred
in Libya as a result of British and French action in Egypt.
An oil installation serving the US air base at Wheelus Field
was blown up on 1 November.
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8: SITUATION IN POLAND, EAST GERMANY, AND
CZECHOSLOVAKIA
Renewed popular pressures are caus-
ing fear among Satellite leaders that
further demonstrations and riots will
occur.
.PQ1ancl� On 2 November, Warsaw radio
broadcast an appeal of the party central
committee to maintain calm and disci-
pline. The party stressed that the situ-
ation with regard to the presence in
Poland of Soviet troops is different than
that in Hungary, since Soviet troops are
in Poland to protect the country's west-
ern frontier against German militarism,
and added that the USSR is the only ma-
jor power which has recognized the pres-
ent Oder-Neisse line.
Cardinal Wyszynski appealed to the peo-
ple for "national unity and calm" in a
letter read in all churches on 1 November. The appeal closely
followed an accord between the regime and Wyszynski which
specifies that the state will in theory hold ultimate control over
church appointments; but not exercise it, and that a number
of Catholic social groups--but no Catholic political party--will
be allowed to organize.
East Germany: Student unrest in East
Germany appears to be mounting, with some professors re-
ported joining students in their demands for "a free intellec-
tual life." Students also are demanding a new youth organiza-
tion, claiming that the Communist-dominated Freie Deutsche
Jugend no longer has anything in common with German students.
Although one leading Communist functionary has reportedly
threatened to "break the students' heads if they start any trou-
ble," other leaders fear that some concessions to student
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demands will have to be made. Early this week, university
and local authorities were warned to be alert for any signs
of overt student demonstrations, since the Hungarian troulble
started with the students. Premier Grotewohl told the East
German parliament on 2 November that he would no longer
"tolerate unrest"inthe universities.
Czechoslovakia:
barring a drastic change in the world situation, no
radical shifts are to be expected in Czechoslovakia, in view
of loyalty of the entire top leadership to Moscow, the higher
standard of living, the departure of Soviet troops in early
1946, and the absence of a liberalization campaign in Czecho-
slovakia. Unusual security precautions, particularly in
�Slovakia, indicate fear of disturbances in that area, possi-
bly among the large Hungarian minority of 400,000.
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41.01
9. SOUTH KOREAN DEMONSTRATIONS TO PROMOTE
"FORCEFUL" UNIFICATION
nationwide demonstrations are planned
aver the next few days "to free the
North Korean people and obtain the forceful unification
of Korea the "South Korean
people feel that the anti-Communist movements elsewhere
."
offer an opportunity to rise up and rescue the people of
North Korea from the yoke of Communism:'
Comment In the past, President Fthee has indi-
cated an appreciation of the imprac-
ticality of military action without American support.
Several of his military commanders have recently noted,
however, that he is becoming impatient on the unifica-
tion issue, and he might attempt to take advantage of the
present international tensions to instigate renewed fight-
ing in Korea.
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Noirel." vearimo,"
10. HANOI ANNOUNCES "LIBERALIZATION" PROGRAM
A communiqu�ssued by the Viet Minh
Council of Ministers on 2 November
announces major changes in the regime's
Internal policies, apparently in response
to growing discontent. Acknowledging
that mistakes in land reform had created "many difficulties"
for the regime, the communiqu�rders all land reform com-
mittees deprived of the "rights of leadership" and the spe-
cial people's tribunals abolished. Participation of the popu-
lace in the "management of the state and control of the ad-
ministration" is to be carried out by people's council elections
In 1957, and "democratic rights" are to be ensured by im-
provements in the regime's legal system.
Hanoi has admitted that peasant dissatis-
faction in North Vietnam culminated recently in open violence.
Although Viet Minh leaders have previously endorsed the Com-
munist bloc's "liberalization" policies, this is the first an-
nOuncement of a program of their own. The example of East
Europe may have been a factor prompting the Viet Minh to
adopt a "liberalization" policy at this time. In addition, the
Viet Minh, which has held no elections since 1945, would
like to counter the propaganda advantage enjoyed by the South
Vietnamese, who held popular elections earlier this year.
The communiqu�isclosed that the vice
minister of agriculture and forestry and the vice minister of
interior--whose powers in the party were recently reduced--
have now been deprived of their government positions. The
position of Premier Pham Van Dong, director of the now dis-
credited National Agrarian Reform Committee, may also be
threatened. He did not preside over the last meeting of the
Council of Ministers.
3 Nov 56
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THE ARAB-ISRAELI SITUATION
(Information as of 0200, 3 November)
The Egyptians have sunk at least seven
ships in the Suez Canal and appear to have successfully blocked
the waterway. Anglo-French headquarters on Cyprus reported
that the Egyptians had sunk five additional vessels in the canal
on 2 November after partially blocking it with two ships on the
previous day. The American consul in Port Said reported on
2 November that the Egyptians had sunk two large floating cranes,
one salvage vessel, and one dredge, directly in front of the con-
sulate, in a position to block the canal.
Oil sabotage operations by Egyptian agents
appear to be faltering.
Banrein rennery's native employees are on
strike, but the plant is being operated by non-Arabs. The British
Foreign Office has stated Bahrein was quiet on 2 November, and
that some troops may have gone ashore under normal rotation.
Oil movement by pipeline from Saudi Arabia to Lebanon, via jor-
dan and Syria, was normal as of 2 November. Saudi Arabia it-
self was reported quiet.
Indian prime minister Nehru is considering
flying to New York for meetings on the situation in Egypt
Approximately 14 American-built F-84Fjet
fighters of the French air force with French markings are operating
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out of Lydda airfield in Israel, according to Ambassador
Lawson in Tel Aviv. Investigation by the American air at-
tach�ndicates that other F-8411's may have been repainted
with Israeli insignia. The Israelis are reported to be very
careful to prevent contact between Americans and French
air force pilots and ground crews at Lydda.
the USSR, was at present
waiting to come out with "the most suitable means of assist-
ance and that which would do the least harm."
the USSR. would assist Eavut.
"even if it should lead to war."
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