CURRENT INTELLIGENCE BULLETIN - 1956/08/02

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185129
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 2, 1956

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CURRENT
INTELLIGENCE
BULLETIN
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DOCUMENT NO. -
Copy No. 105
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EVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. SHEPILOV EXPLAINS TO EGYPTIAN AMBASSADOR
SOVIET POSITION ON SUEZ NATIONALIZATION
(page 3).
2. SUEZ DEVELOPMENTS
(page 4).
3. GREECE AND YUGOSLAVIA HINT AT DISSOLUTION OF
BALKAN ALLIANCE (page 5).
4. INDONESIAN 7A_Tin7L PARTY ELECTS MODERATE
LEADERSHIP (page 6).
5. ATTEMPTED REVOLT IN HONDURAS
(page 7).
6. PROLONGED ASSEMBLY CRISIS POSSIBLE IN SOUTH
KOREA (page 8).
7. PATHET LAO TO DEMAND CONTINUED CONTROL OF
NORTHERN LAOS (page 9).
8. TURKS CONVINCED AFGHAN PREMIER MUST BE OUSTED
OR FORCED TO CHANGE POLICY (page 10).
2 Aug 56
THE ARAB-ISRAELI SITUATION
(page 11)
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1. SHEPILOV EXPLAINS TO EGYPTIAN AMBASSADOR
SOVIET POSITION ON SUEZ NATIONALIZATION
Prime Minister Nehru of India told his
parliament on 31 July that he did not discuss the subject of
Suez with the Egyptian prime minister at Brioni, and that his
first knowledge of nationalization of the canal came from the
press. Nehru later told a public gathering, "What is happen-
ing with the Suez Canal is only a symptom of a historic fact...
the gradual lessening of European influence in Asia and Africar
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2. SUEZ DEVELOPMENTS
The nationalization of the Suez Canal
has gained more support for Nasr within
Egypt than any previous step he has taken,
according to the American embassy in
Cairo. Expressions of strong support
for the action have come not only from
street demonstrators but from some pro-
fessional and business leaders who have
been critical of the regime.
Despite this general support, however, the
embassy notes that the business community
in Cairo is becoming concerned about the effects of Western
retaliatory economic measures,
military meas-
ures for the defense of Alexandria, begun on 29 July, include
placing machine guns and antiaircraft batteries with radar in the
harbor area.
The American embassy in Colombo believes
that a statement on 30 July by Prime Minister Bandaranaike and
alleged Indian government interest in participating in any discus-
sions regarding the Suez problem suggest these countries might
favor a wider internationalization nf thp rana 1 int...hi/lino' 117 most
interested Asian nations.
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Niov Nerf
3,. GREECE AND YUGOSLAVIA HINT AT DISSOLUTION
OF BALKAN ALLIANCE
Greece and Yugoslavia agree that the
Balkan alliance cannot continue many
more weeks in its present inactivity,
according to Greek foreign ministei
v r roff said that Yugoslav president Tito and
Greek officials concluded at Corfu that, if the situation
remains unchanged, it would be preferable for their two
countries to reach a "bilateral understanding:' Averoff
reaffirmed Greece's firm attachment to the West and said
such an arrangement would provide the West with a useful
link with Yugoslavia.
Comment The Balkan alliance has been ineffective
for the past year, owing primarily to
Greek-Turkish animosities aroused by the Cyprus dispute
and anti-Greek riots in Istanbul last September.
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4. INDONESIAN NATIONAL PARTY ELECTS
MODERATE LEADERSHIP
The election of Suwirjo as chairman of
the Indonesian National Party, which
heads the coalition cabinet, appears to
reflect the moderation recently voiced
by President Sukarno. The National
Party, with which Sukarno has been
closely identified, has been dominated
for several years by its left wing, which
has advocated co-operation with the Communists. The mod-
erates, led by Suwirjo, have frequently expressed alarm
over growing Communist strength.
The National Party council advised party
members on 1 August to "act wisely and withdraw" from the
Communist-dominated All-Indonesian People's Congress. The
National Party itself withdrew from the congress in June 1955.
Sukarno stated in his closing address to the
convention that he wanted to see more than one party in Indo-
nesia. He then named Indonesia's principal parties, omitting
the Communist Party.
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Nay�
5. ATTEMPTED REVOLT IN HONDURAS
The Honduran government appears in
control of the situation following police
and army action against rebels who at-
tacked an army barracks near the Amer-
ican embassy in Tegucigalpa early on 1 August.
there was no sign of similar disturb-
ances elsewhere in the country.
planned attacks in San Pedro Sula and Puerto Cortes
on the north coast.
Honduran foreign minister Mendoza is
reported to have said that the rebel group was comprised of
supporters of Liberal party chief Villeda Morales. He also
stated that ex-dictator Carias was not involved and that a
group of his followers had offered Chief of State Lozano their
complete support.
Political tension in the country has been
mounting in anticipation of constituent assembly elections
which Lozano has announced would be held on 7 October or
earlier unless public disturbances forced a postponement.
Lozano failed to attend the meeting of presidents in Panama
because of unsettled conditions in his country.
The Liberal Party, with Villeda as its
presidential candidate, won a plurality in the nullified 1954
elections. Villeda, who heads the Communist-influenced
faction of the party, was exiled by Lozano on 9 July.
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,Ur/ NT WE,/ I' 1
Nts."
6. PROLONGED ASSEMBLY CRISIS POSSIBLE IN
SOUTH KOREA
The attempt of South Korea's Public
Security Bureau to serve summons on
four opposition assemblymen is the
latest move in what may become a pro-
oiigeapoiitiar crisis. Tension continues in the assembly,
and legislative activity has been at a standstill since 27 July,
when opposition assemblymen clashed with police in demon-
strations protesting the administration's harassment of oppo-
sition candidates for local office.
The four assemblymen are expected to
ignore the police summons, and attempts to detain them
forcibly would probably meet with considerable resistance.
Antiadministration groups in the assembly have been joined
by about 30 Liberals in demanding the release of an assem-
blyman jailed following the demonstrations on 27 July, and
opposition assemblymen have stated their willingness to stim-
ulate popular demonstrations "even at the cost of bloodshed"
if their demands are not met.
An opposition legislator who conferred with
Rhee on 31 July has stated that he was probably the first per-
son to apprise Rhee of the gravity of the situation in the assem-
bly. The speaker of the assembly, Yi Ki-pung, has stated that
the minister of interior appears to be acting with a free hand.
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4romoi
7. PATHET LAO TO DEMAND CONTINUED CONTROL
OF NORTHERN LAOS
Comment
The Pathets will probably be willing to
modify these terms in the interest of a
settlement, but not to the extent of jeopardizing their ac-
tual control of the two provinces.
The Laotian premier, highly optimistic
over the prospect of a settlement, has told American offi-
cials in Vientiane that they will be "agreeably surprised" by
the terms he will conclude with the Pathet Lao,
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8. TURKS CONVINCED AFGHAN PREMIER MUST BE
OUSTED OR FORCED TO CHANGE POLICY
Turkish officials concluded during
Prime Minister Menderes' visit to
Kabul between 27 and 30 July that
Afghan premier Daud must be ousted
or compelled to change his policy.
Secretary General Birgi of the Turkish
Foreign Ministry, who accompanied Menderes on the visit,
based this conclusion on Daud's rejection of Menderes' sug-
gestions for modification of Kabul's Pushtoonistan campaign
against Pakistan and the Afghan premier's disregard of Turk-
ish warnings against Soviet penetration. Daud's apparent re-
jection of a Turkish offer of military assistance probably also
alienated Menderes and his party.
The Turks, on the other hand, were
favorably impressed with King Zahir Shah, Foreign Minis-
ter Naim, and ex-prime minister Shah Mahmud. Menderes
believes he was able to convince the king of the dangers of
Soviet penetration.
Turkish-Afghan relations are traditionally
close. If Menderes is convinced of the dangers of Daud's pol-
icies, Ankara may in the future become more interested in
consorting with Pakistan and Iran to bring about a change in
the Afghan government.
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Nue
THE ARAB-ISRAELI SITUATION
(Uormation as of 1700, 1 August)
ccorcting
o an investigation o
tivities in Jordan there
are three general groups. There is a unit of approximately 200
trained commandos incorporated in the Jordanian army which is
under full military discipline, organized for a special purpose,
and not believed to have been used in Israel. Secondly, there is
a semimilitary group of 1502 recruited and trained by Egypt in
Jordan in 1955. A considerable number of this group are believed
to have seen service in Israel and some of them may be still in op-
eration. Thirdly, there is an undetermined number of infiltrators
ranging from smugglers and thieves to persons with personal
grudges against individuals across the line. Some of these are
for sale to the highest bidder. The Jordanian army is in indirect
control of the fedayeen, but has virtually no control over the third
group other than by military and police supervision on the border.
Eavritian ambassador Hussein,
advised his government to
reassure the West regarding the Suez Canal, added that every ef-
fort should be made to prevent incidents along the Israeli-Egyptian
borders "in order to preclude giving the occasion for starting mili-
tary action in which there would be no advantage to us especially
at the present time:'
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