CURRENT INTELLIGENCE BULLETIN - 1956/10/09

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03183785
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: October 9, 1956

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CURRENT
/ INTELLIGENCE
� BULLETIN
(4/
/ /
/4
/
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II ,4
9 October 1956
Copy No.
DOCUMENT NO.
NO CHANGE IN CLASS,
o DECLASSiFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
AUTH: HR 70-2
DATEI f EVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
3.5(c)
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3.3(h)(2)
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1/4
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CONTENTS
1. BRITISH-EGYPTIAN COMPROMISE REPORTED ON SUEZ
(page 3).
2. ISRAEL MOBILIZING ON "SUBSTANTIAL" SCALIE
(page 4).
3, YUGOSLAV PRESS TREATMENT OF TITO-SOVIET TALKS
(page 5).
4. HUNGARIAN "SILENT DEMONSTRATION" DURING RE-
BURIAL OF EX-"TITOLST" RAJK (page 6).
5. WEST GERMAN GOVERNMENT SEEN STABLE DESPITE
CABINET RESIGNATIONS ( ) (page 7).
6, INDIA TO RAISE QUESTION OF CHINESE REPRESENTATION
AT UN GENERAL ASSEMBLY ( (page 3).
7. SUKARNO'S VISIT TO PEIPING
(page 9).
8. BURMESE AMBASSADOR FORESEES PEIPING YIELDING
ON BORDER DISPUTE (page 10)0
9. CHINESE COMMUNISTS MAKE ECONOMIC GRANT TO NEPAL
(page 11).
9 Oct 56
* * * *
THE A - LI SITUATION
(page 12)
Current Intelligence Bulletin Page 2
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1. BRITISH-EGYPTIAN COMPROMISE REPORTED ON SUEZ
A "compromise" plan on the Suez
Canal which,
has been worked out between
Nasr and Krishna Menon and agreed
to by Britain, does not impair Egypt's
basic position despite the plan's flavor
of internationalization.
It appears questionable that Britain can
have agreed to this plan, and Nasr has repeatedly expressed
his belief that Britain does not want to settle, but desires to
"get rid" of him. India and Egypt probably are primarily at-
tempting to find a formula acceptable to the US.
The plan, which
is Nasr's final position, calls for joint monthly meet-
ings of the representatives of the users' association and
the Egyptian canal authority "to discuss mutual problems:'
The joint board would establish an annual ceiling on canal
toll charges, discuss toll changes, and consider, or pass
on for arbitration, complaints by users of the canal. Ac-
cording to the plan, Egypt would accept three UN technicians
to assist the Egyptian canal authority in navigation, mechan-
ical and marine engineering. Disagreements on Egyptian
compensation to the Suez Canal Company shareholders and
other questions would be arbitrated. Egypt would sign sep-
arate free-passage treaties with user nations and carry out
improvements of the canal.
9 Oct 56
Current Intelligence Bulletin Page 3
TOP SECRET
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2. ISRAEL MOBILIZING ON "SUBSTANTIAL" SCALE
The American army attach�n Tel Aviv
believes that the Israeli defense force
is in the initial stages of a "substantial"
mobilization preparatory to an overt
hostile act. He reports that an Israeli
as mobilized on the night of 4-5 October,
that an artillery battalion left for an unknown destination
on 7 October, that troops were headed north by train on
the same date, that an armored brigade was mobilizing
and tanks were being removed from storage on the 8th.
Comment
Israel may be preparing to retaliate
against Jordan for the 4 October am-
bush killing of five Israeli civilians. Israel has not, how-
ever, mobilized on the current scale for any of the three
recent retaliatory raids. Israel may therefore be prepar-
ing for possible unfavorable developments in Jordan as a
result of the entry of Iraqi troops into Jordan or a further
deterioration there in the internal situation,
the first elements of the
Iraqi contingent scheduled to be stationed in East Jordan
are to arrive on 9 October,
9 Oct 56
Current Intelligence Bulletin Page 4
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3, YUGOSLAV PRESS TREATMENT OF TITO-
SOVIE T TALKS
Comment on:
Commenting on the Tito- Khrushchev
visits, the Belgrade government news-
paper Borba on 7 October stated that
there "exist naturally certain differ-
ences of views on the contemporary
world, above all differences of an
ideological character!' Borba added
that "there are also certain unsolved
problems in mutual relations!' It stated, however, that
a "guarantee" that Yugoslav-Soviet relations would develop
successfully was the fact that the existing differences are
being discussed sincerely and openly.
Borba re-emphasized the validity of
the agreements already worked out with the Soviet leaders
in June 1955 and June 19560 It selected for particular em-
phasis the principles of equality and noninterference in re-
lations, condemnation of the policy of blocs, and complete
adherence to the view that the paths of socialist develop-
ment are different in different countries.
The Yugoslav press also reportedly
has stated that these last principles will be emphasized
in the forthcoming Yugoslav talks with the Italian, Rumanian,
and French party delegations. Similar matters presumably
will be discussed with the Hungarian delegation which will
visit Belgrade beginning 15 October.
Tito apparently has not been swayed
by his talks with Khrushchev from his independent posi-
tion, and does not intend to lessen his pressure for Satel-
lite change.
9 Oct 56
Current Intelligence Bulletin Page 5
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4 HUNGARIAN "SILENT DEMONSTRATION" DURING
REBURIAL OF EX-"TITOIST" RAJK
Comment on:
The attendance of 200,000 Hungarians
at the reburial ceremony of Laszlo Rajk
on 6 October was acclaimed by Budapest
radio as a "silent demonstration" reveal-
ing an."inextinguishable hatred" for
despotism and the personality cult.
Szabad Nep, the Communist Party daily,
interpreted the demonstration as public
support for de-Stalinization and liberalization policies and
repledged itself to the new policies of moderation.
The Rajk reinterment apparently was
designed to stimulate popular support for theL a policies
and to help improve relations with Yugoslavia. Hungarian
regime spokesmen, in condemning charges against Yugo-
slavia in the Rajk trial and other past slanders, have shown
increasing admiration of Yugoslavia's independence
Yugoslav editorial comment on the Rajk
funeral is similar in tone to that of the Hungarian state-
ments. Belgrade radio claimed on 7 October that the funeral
revealed that the "new fresh tendencies" in Hungary are gain-
ing ground and that it represents an additional obstacle to
"any attempt to return to the old ways!" Belgrade also indi-
cated that some additional measures may be pending against
Ftakosi. According to the Belgrade editorial, the Hungarian
assertion that "the guilty ones should be nailed to the column
of shame" was aimed primarily at Rakosi.
9 Oct 56
Current Intelligence Bulletin Page 6
�CON-PIDESTIAL
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5, WEST GERMAN GOVERNMENT SEEN STABLE DESPITE
CABINET RESIGNATIONS
The resignation from the cabinet of the
four ministers from the Free People's
Party (FVP) on 6 October "constitutes
no basic threat to the stability of the gov-
ernment,"
There has been dissension within the coali-
tion over the disproportionate representation of the FVP, and
rumors of a reshuffle have been current since last spring,
when the Free Democratic Party (FDP) left the government.
A splinter group of 14 FDP deputies became the FVP and re-
tained the four FDP cabinet seats.
Chancellor Adenauer
may not accept the resignation of Vice Chancellor Bluecher
and at least one of the other ministers. The resignation of-
fers may force Adenauer to an early decision on a reshuffle
of his cabinet to improve relations between the coalition par-
ties.
Adenauer has probably deferred reorgan-
izing his cabinet partly because he hopes to win back the FDP,
but recent negotiations have failed. If the FVP leaves the
coalition, the chancellor's Christian Democrats will still have
a governing majority in the Bundestag.
9 Oct 56
Current Intelligence Bulletin Page 7
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6. INDIA TO RAISE QUESTION OF CHINESE REPRESENTATION
AT UN GENERAL ASSEMBLY
Prime Minister Nehru has decided to
request inscription of the question of
Chinese representation on the agenda
of the forthcoming General Assembly,
The request
is to be given to the UN secretary general
after the US election'
Comment
When the USSR made a similar formal
request of the General Assembly in 1951,
the issue was disposed of by the customary procedure of de-
ferring discussion, thereby rejecting inclusion of the item.
9 Oct 56
Current Intelligence Bulletin Page 8
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7. SUKARNO'S VISIT TO PEIPING
Comment on:
Indonesian president Sukarno left Peiping
on 6 October for a week's tour of Commu-
nist China, The Indonesian leader thus
far has responded warmly to the reception
arranged for him by the Chinese.
In numerous speeches, Sukarno empha-
sized the common aspirations of the Chinese and Indonesian
people. He endorsed Peiping's goal of annexing Taiwan,
told university students that Sino-Indonesian friendship was
"indestructible," and invited Mao Tse-tung to visit Indonesia.
It is doubtful that Mao will visit Indonesia,
since the official Chinese Communist news agency advised
all editors not to use the heading "Chairman Mao accepts in-
vitation to visit Indonesia" for stories on Sukarno's departure
from Peiping. Mao has never visited a non-Communist coun-
try.
9 Oct 56
Current Intelligence Bulletin Page 9
CONFIDENTIAL
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8. BURMESE AMBASSADOR FORESEES PEIPING YIELDING
ON BORDER DISPUTE
Mao Tse-tung apologized to Burmese
ambassador Hla Maung at a state din-
ner in honor of Indonesian president
Sukarno on 2 October for the "bureau-
cratic" attitude he and other Chinese
Communist leaders had taken in leaving the Sino-Burmese
border problem "unsettled for seven long years." When
Chou En-lai said that only two meetings need be devoted to
the border dispute during U Nu's visit to Peiping late this
month, Mao replied that "two meetings are too many!'
Comment
Optimism has been growing in Rangoon
over the prospects of a favorable bound-
ary settlement. Anything less than virtual capitulation to
Burma's position on the border will prove a severe disappoint-
ment to Rangoon and lead to even greater bitterness against
Peiping than has been manifested heretofore.
Despite the Burmese ambassador's op-
timism, the Chinese have not specifically indicated that they
are agreeable to a settlement of the border problem on Bur-
- ma's terms. Peiping remains evasive on the issue, although
Chou En- lai may suggest a compromise settlement during
U Nu's visit or his own visit to Rangoon in December.
9 Oct 56
Current Intelligence Bulletin Page 10
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9.. CHINESE COMMUNISTS MAKE ECONOMIC GRANT
TO NEPAL
Comment on:
Under an economic aid agreement
signed on 7 October, Communist China
will provide Nepal with rupees to the
value of approximately $12,600,000 dur-
ing the next three years as a gift to help carry out Katman-
du's first five-year plan. This agreement follows the treaty
of friendship signed on 20 September between Nepal and
Communist China and advances Peiping's effort to estab-
lish closer ties with Nepal.
No Chinese technicians will be sent to
Nepal in connection with the aid grant, probably out of def-
erence to Indian sensitivity to Chinese influence in Nepal.
New Delhi is considering a $21,000,000 aid program for
NepaL
The agreement to aid Nepal is Peiping's
second grant of economic assistance to a non-Communist
country. The first was made to Cambodia last June and
provided for $22,400,000 to be advanced over a two-year
period.
9 Oct 56
Current Intelligence Bulletin Page 11
CONFIDENH-AL
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 8 October)
See item 2, p.4 for an article bearing
on the Arab-Israeli situation.
9 Oct 56
Current Intelligence Bulletin Page 12
�MeRtgr-
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