CURRENT INTELLIGENCE BULLETIN - 1956/08/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185128
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 1, 1956

Approved for Release: 2019/10/23 C03185128,
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CURRENT
INTELLIGENCE
BULLETIN
1 August 1956
Copy No.1()
DOCUMENT NO.
NO CHANGE IN CLASS.
I DECLASSIFIED
CLASS. CHANGED TO: 15
NEXT REVIEW DATE:
AUT.Ret
REVIEWER: _
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
3.5(c)
3.3(h)(2)
/e.". em, ema s t u LF 3/05
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TO! SLCJLT
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CONTENTS
1. NASR EMPHASIZES FREEDOM OF SUEZ NAVIGATION
page 3).
2. KHRUSHCHEV COUNSELS MODERATION BY WEST IN
SUEZ DISPUTE (page 4).
3. BURMESE PRESS ACCUSES CHINA OF VIOLATING BURMA
BORDER (page 5)�
TIBETAN
REBELI
(page 7).
5. BRITISH CONTINUING TO OBSTRUCT SEATO'S DEVELOP-
MENT (page 8).
6. INDONESIAN PRESIDENT LAUDS UNITED STATES
(page 9).
7� INDONESIA DISSATISFIED WITH PRESENT TRADE AGREE-
MENTS WITH EAST EUROPE (page 10).
1 Aug 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 11),
Current Intelligence Bulletin Page 2
TOP SECRET
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1. NASR EMPHASIZES FREEDOM OF SUEZ NAVIGATION
Egypt's statement on 31 July that it intends
to abide by the 1888 international conven-
tion on freedom of navigation of the Suez
Canal and all other "international obliga-
tions" is designed to cut the ground from
under reported Western moves to call a
conference to deal with this problem. The
announcement that Egypt will not force canal
company employees to stay on the job if they
give notice and resign in a regular manner is an effort to avoid
accusations that Egypt is violating human rights in holding com-
pany personnel "prisoner:'
The Egyptian government appears anxious
to avoid any action which it feels could reasonably be construed
as violating international agreements on the use of the canal.
At the same time, however, the Egyptians are vigorously insist-
ing on their right to nationalize the company, maintaining that
nationalization involves only a change in the control of the ad-
ministration of the canal, not in its operation.
Meanwhile, London's efforts to avoid provok
ing Egypt are indicated by the order to four troopships to bypass
Suez by going around Africa, and by the announcement that the
two Egyptian destroyers being fitted out in Britain will be released.
1 Aug 56
Current Intelligence Bulletin Page 3
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CONFIDENTIAL
2. KHRUSHCHEV COUNSELS MODERATION BY WEST IN
SUEZ DISPUTE
Khrushchev in a speech at a builders'
rally on 31 July advised the British and
French governments to use "common
sense, experience and political soberness" in adjusting to
Egyptian nationalization of the Suez Canal. He played down
the cause for tension and warned that "unwise voices" are
heard in Britain and France asking for the application of
"some unspecified means of oppression, almost of military
operations." He reaffirmed Soviet support for the legality
of the Egyptian position.
Comment The USSR has made clear its desire for a
peaceful solution of the canal dispute.
Press dispatches quote an unidentified Soviet bloc spokesman
in London to the effect that Moscow recognizes Egyptian sov-
ereignty over the canal, but would be willing to join in discus-
sions for an "international solution" that would permit unre-
stricted passage by foreign ships.
1 Aug 56
Current Intelligence Bulletin Page 4
TONFIDENTIAL-
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--reff"SEC�R-E-T-
Noe
3. BURMESE PRESS ACCUSES CHINA OF VIOLATING
BURMA BORDER
A leading Rangoon newspaper has published
information9 apparently obtained from the
Burmese government, that several hundred
Chinese Communist troops have "invaded"
northern Burma.
CHINA
the Burmese govern-
ment learned of the Chinese
incursions on 29 July and
has lodged several protests 2
with Peiping.
the Communist sol-
diers are "sitting tight,"
claiming that the border
is undemarcated and that
they are in Chinese terri-
tory.
Although there have
been numerous instances
of Chinese Communist in-
cursions into areas of
Burma adjacent to the
portions of the border
that are undemarcated,
the current incident ap-
pears to be considerably
more serious. There
have as yet been no re-
ports of actual fighting,
but Chinese forces are
reported to have estab-
lished themselves as
far as 60 miles within
territory claimed by Burma.
PA K
IND IA
Rangoon
� %I
�
Kunlong
Lashio �
25�30'
CHINA
� Mandalay
WA STATES
BURMA
31 JULY 1956
' Area claimed by China
UNCLASSIFIED
100 200
miles
1 Aug 56 Current Intelligence Bulletin
TOP SECRET
LAOS
THAILAND
Bangkok
�
60608
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Nmer
It is probable that the government is
using the press to induce Peiping to negotiate a settlement
of the border problem. Sino-Soviet bloc strategy has been
to court such neutral countries as Burma, and Chinese Com-
munist embarrassment over the current Burmese publicity
campaign may persuade Peiping to negotiate despite its pre-
vious refusal to do so.
A Burmese communique issued on 31
July played down the seriousness of the situation and stated
that negotiations for a withdrawal are in progress. If these
negotiations fail, Burma may seek international support for
its position, probably through the UN.
1 Aug 56
Current Intelligence Bulletin
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.777P�SEeRFT No'
TIBETAN REBELS
suggest that the fighting is confined to areas
on the Tibet Szechwan border where the tribal population is
traditionally hostile to central control and that it probably does
not extend to Lhasa or other localities of Tibet proper.
There are indications that Peiping has recently trans-
fered troops from Yunnan Province to western Szechwan to help put
down the rebellious Tibetans. The Chinese appear to be in gen-
eral command of the situation despite press reports from India
that they have suffered major setbacks.
1 Aug 56
Current Intelligence Bulletin
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Niter,
5. BRITISH CONTINUING TO OBSTRUCT
SEATO'S DEVELOPMENT
Reports from Bangkok indicate that
British obstructionism continues to
be the primary obstacle to American
efforts to maintain momentum in the
EATO as an effective organization. Am-
bassador Bishop, the American representative on the SEATO
council, points out that Britain has opposed and delayed adop-
tion of practically every important American proposal, in-
cluding the establishment of a public relations office and a
research center. It has also sought to limit the scope of
both classified and public reports on SEATO activities.
Bishop reports that Britain is currently
delaying discussions on a projected report of the council's
activities because of a "fundamental opposition" to the Amer-
ican concept that the entire range of the treaty's implementation
should be covered.
The most serious effect of London's atti-
tude has been the damage to SEATO's stature in the eyes of
its three Asian members--Pakistan, Thailand and the Philip-
pines. They have all expressed considerable dissatisfaction
over SEATO's slow development and lack of results.
1 Aug 56
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CONFIDENTIAL
No"
6. INDONESIAN PRESIDENT LAUDS UNITED STATES
In an "extraordinary" speech in praise
of the United States at an Indonesian
National Party congress held in Sema-
rang, a Communist stronghold in Java,
resident Sukarno, according to Ambassador Cumming,
demonstrated publicly the very favorable impressions re-
ceived during his recent visit to the United States. Sukarno
declared that he had found in America full freedom of ex-
pression and an amazing freedom from want. He indicated
that the first of these elements was lacking in the Soviet
Union.
Cumming comments that the speech may
produce pressures from the left. The Indonesian news agency
Antara omitted all pro-American references in its summary of
the speech. The requirements of courtesy in connection with
his trip to the USSR and Communist China may prompt some
"balancing" speech. Cumming believes, nevertheless, that
the fact that Sukarno is now on record as enthusiastically en-
dorsing the American way of life is bound to have "an incal-
culable influence on both the Indonesian elite and masses."
Comment The Semarang speech is in marked con-
trast to the attitude of Sukarno and the
National Party prior to his trip to the United States.
1 Aug 56
Current Intelligence Bulletin Page 9
CONFIDENTIAL
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GUIVFIDENTIAL
Ire
7. INDONESIA DISSATISFIED WITH PRESENT TRADE
AGREEMENTS WITH EAST EUROPE
Trade officials of the Indonesian For-
eign Ministry have stated that the barter
agreements with East European coun-
tries had been unprofitable and that the
conclusion and renewal of such agreements in the past was
"just a political gesture," since their provisions were never
fulfilled. They said Indonesia henceforth will trade with
countries offering the "most favorable conditions," accord-
ing to the American embassy in Djakarta.
Comment A Foreign Ministry official had previously
announced that trade agreements with
Soviet bloc countries would be renewed under normal commer-
cial payments practice, indicating dissatisfaction with the
clearing arrangements on which they were originally nego-
tiated. The trade officials' statement indicates that the agree-
ments were sought by the first Ali government more to demon-
strate its "independent foreign policy" than in the expectation
of greatly expanded trade. Indonesia has been satisfied with
its trade with Communist China.
1 Aug 56
Current Intelligence Bulletin
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 31 July)
The Jordanian newspaper Addifaa, pro-
claiming Arab support of Egypt against Western intervention
over the Suez Canal nationalization, asserts that "if the cat's-
paw of the West (Israel) starts to move, we must annihilate her
as well as all Western intrusions such as petroleum concessions
and military bases:' (Press) 7.Z, e
v
V
UN headquarters has announced that Andrew
Cordier, executive assistant to Secretary General Hammarskj old,
will visit the Near East between 21 and 24 August for discussions
with Jordan, Israel, Lebanon, and Egypt.
Meanwhile, Arab sources at the UN discounted
press reports that their governments were attempting to obtain re-
moval of chief truce supervisor General Burns of Canada for alleged
bias in favor of Israel. These sources pointed out that if the Arab
governments were planning to call for Burns' removal, information
would have been sent to their UN delegations. (Press)
The Egyptian army has halted transfers of
personnel from active duty into the reserves until further notice,
The Egyptian frigate Tank left Malta for Alex-
andria on 28 July. The frigate Ibrahim is still undergoing overhaul
at Malta and will not be ready for sea for several weeks.
the Syrians
aining properly for making use of Soviet equipment.
no tank exercises had been held using more than 18 T-34
tanks, and that the SU-100 assault guns had not been fired since their
arrival. the Syrians would become cocky because
of the new equipment, but that they could not use it properly without
considerable practice.
1 Aug 56
Current Intelligence Bulletin
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