CURRENT INTELLIGENCE BULLETIN - 1956/08/17

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03193800
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 17, 1956

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CURRENT
INTELLIGENCE
BULLETIN
17 August 1956
Copy No.
105 3.5(c)
3.3(h)(2)
DOCUMENT NO. NO CHANGE IN CLASS.
DECLASSIFIED
CLASS. CHANGED TO:
NEXT REVIEW DATE.
AUTH ia. 70-2
DATE:
REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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voile \NW
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CONTENTS
1. SHEPILOV SEFrIrs-ririPERATION OF US AT LONDON
CONFERENCE (page 3).
2. WEST GERMAN 'MDT .CYNTATR RVMDILTHETIC TO EGYP-
TIAN POSITION page 4).
3. BRITISH OFFICIALS_VIEW&ON_TOSSIBLE OVERTHROW
OF NASR (page 5).
4. CAIRO ORDERS PREPARATION FOR SABOTAGE 7F
BRITISH AIRFIELDS IN LIBYA (page 6).
5. PERUVIAN APRA LEADER CALLS FOR "INTE
AMERICANIZATION" OF PANAMA CANAL (page 7).
6. PUBLIC UNREST REPORTED IN KARACHI
(page 8).
7. SOITTE T- INTWINFIR T A7 ECONOMIC NEGOTIATIONS
(page 9).
17 Aug 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 10)
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SJZCRET
Nape
1. SHE PILOV SEEKS CO-OPERATION OF US AT
LONDON CONFERENCE
in a conversation with Secretary Dulles
in London on 15 August, Soviet foreign
minister Shepilov stated that he was not
attempting to split the Western Big Three,
but that if differences did exist between the United States and
the United Kingdom and France, the "US and USSR together
might find a way out of this crisis," according to Ambassador
Bohlen, who served as interpreter. Shepilov agreed on the
necessity of avoiding an outbreak of hostilities in the Middle
East.
Shepilov said that freedom of navigation
of the canal was the primary problem for negotiation at the
conference. He reiterated Egypt's right to nationalize the
Suez Canal Company. He said that the Soviet task was not to
"complicate the work of even a nonrepresentative conference"
and that the conference "would be useful." Shepilov said the
Soviet delegation would use its efforts to obtain fruitful dis-
cussion in a calm atmosphere and added that the United States
also was in a position to take a calm, objective approach.
Comment Shepilov's prompt request to meet with
Secretary Dulles and his restrained approach
suggest that he will attempt to maintain an air of reasonable-
ness before the West while at the same time posing as a cham-
pion of Arab nationalism.
17 Aug 56
Current Intelligence Bulletin Page 3
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TOP SECRE,7'
Nov
2. WEST GERMAN DIPLOMATS SYMPATHETIC TO
EGYPTIAN POSITION
Comment Bonn officials have told American represent-
atives that their government favors an
international agency to guarantee the international character
of the canal and freedom of shipping. At the same time, these
officials have emphasized their opposition to forceful measures
against Egypt and it is unlikely that Bonn would endorse economic
sanctions. The West German press has tended to regard the at-
titude of Britain and France as too belligerent, and has felt that
the canal issue should be referred to the United Nations.
17 Aug 56
Current Intelligence Bulletin
Page 4
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3, BRITISH OFFICIALS VIEWS ON POSSIBLE OVERTHROW
OF NASR
Comment
This attitude seems to dominate British
government thinking about the Suez issue.
In recent public statements, Eden and Lloyd have emphasized
that they are seeking to internationalize the canal by peaceful
means but insisted that "precautionary" military measures are
necessary.
Some government officials in Iraq and Libya
have a desire to curb Nasris power, and Saudi
Arabia is believed to be displeased over not being consulted by
Nasr prior to the Suez nationalization. While �Nasris unilateral
action may have embarrassed Arab governments whose vital in-
terests were affected by the nationalization, Nasr commands
widespread Donular sunnort both in Egypt and in other Arab
states.
17- Aug 56
Current Intelligence Bulletin Page 5
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1.11:
4. CAIRO ORDERS PREPARATION FOR SABOTAGE OF
BRITISH AIRFIELDS IN LIBYA
Comment
Britain has three operational airfields
in Libya--Trinoli. Tobruk and Kufra.
Egypt is clearly preparing for an extensive effort against
British property and personnel throughout the area, as well
as against the oil installations, should Britain resort to mili-
tary force.
17 Aug 56
Current Intelligence Bulletin Page 6
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Niue
5, PERUVIAN APRA LEADER CALLS FOR "INTER-
AMERICANIZATION" OF PANAMA CANAL
aya de la Torre, absentee leader of
eru's recently legalized leftist but non-
ommunist APRA party, reaffirmed
upport for the "inter-Americanization"
f the Panama Canal in the party's news-
aper on 14 Aug st. Haya stated that canals such as Panama
nd Suez should be internationalized and that Egypt wants to
do in Suez what the United States has already done in Panama.
On 15 August the APRA paper carried an
interview with Carlos Zuniga, a Panamanian columnist, who
stated Panama should nationalize the Panama Canal gradually.
He said inter-Americanization was the only step now accept-
able.
Comment This is the first official reaffirmation of
APRA's call for inter-Americanization of
the canal since the Egyptian action on Suez. While the party's
program has always called for a broadening of the Panama
Canal's control, this has not been pushed by party leaders
since the early 1930's.
APRA was founded in Mexico in 1924 as a
revolutionary party for all Latin America. During its early
period, the party's position on the Panama Canal was dissem-
inated throughout the hemisphere and evoked some favorable
reaction. APRA had particular appeal in Mexico, Argentina,
and Chile, as well as Peru, but was established as a domestic
political party only in Peru.
Zuniga is a member of the small pro-
Communist group in Panama which advocates nationalizatiOn
of the Panama Canal,
17 Aug 56
Current Intelligence Bulletin Page 7
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CONFIDENTIAL
6. PUBLIC UNREST REPORTED IN KARACHI
Mass unrest, which appears to be in-
creasing daily in Karachi, is ostensibly
centered on the Suez Canal issue but
seems most likely to be the work of
olitical opposition groups seeking to
marrass or iring down the Pakistani government.
The Pakistani press and public have
been much more vociferous in support of Egypt's nationali-
zation of the Suez Canal than has the government. On 14
August, hecklers whose actions did not appear to be spon-
taneous forced the Pakistani prime minister to cut short
his Independence Day speech by goading him into a state-
ment on Suez and drowning out his remarks on domestic
matters. By 16 August, Karachi suffered an extensive shop-
closing strike in support of Nasr, and mass demonstrations
were scheduled for that same afternoon. Police and troops
were alerted, and mass meetings banned.
The American army attach�n Karachi
believes that if the police have to resort to force, a situa-
tion may develop which can be settled only by use of troops.
17 Aug 56
Current Intelligence Bulletin Page 8
-C-ONHDENTIAL
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CUINFIDEN I 1AL
'sire
7. SOVIET-INDONESIAN ECONOMIC NEGOTIATIONS
The Soviet trade mission negotiating
in Djakarta has offered 12-year indus-
trial credits to Indonesia at two and
one half percent,
n additional
oviet otter oi arms and military vehicles
in any quantity on the basis of a five-year
interest-free loan.
the USSR
wished to apply the industrial credits to complete projects
but reluctantly accepted in principle an Indonesian proposal
that Soviet aid could be limited to one preliminary phase of
any given project, and that the project could then be completed
by the country which makes the lowest bid. No specific
amounts of aid have been decided, because the Indonesian
delegation stated that Indonesia's five-year plan was not yet
firm enough for it to request Soviet aid on a specific basis.
Comment The conclusion of an economic aid agree-
ment on Indonesian terms would reveal the
importance Moscow attaches to its aims. It does not appear
that the agreement will be signed before President Sukarno
leaves for Moscow on 26 August.
The Indonesian government is unlikely to
accept a Soviet military assistance offer, in view of the pro-
Western sympathies of most Indonesian army leaders and the
probability that acceptance would aggravate existing army-
government friction.
17 Aug 56
Current Intelligence Bulletin Page 9
CONFIDENTIAL
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OP MCRET
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 16 August)
According to an Israeli military spokes-
man, an Israeli bus was ambushed in the Negev Desert on 16
August, killing four passengers in the worst border incident
since the latest trip of the UN secretary general. The spokes-
man also reported that several civilians were injured when their
truck hit a mine in the central Negev area. He blamed Egyptian
infiltrators for the truck incident and said a similar incident had
occurred on 14 August but there were no casualties. (Press),/..,, �
A Jordanian spokesman charged that three
Israeli meteor jets flew over Jordan. He stated that one jet may
have been damaged by Jordanian antiaircraft fire. (Press), -
The American air attach�elieves that the
release of the Israeli air force chief of staff from military service
for graduate work in an American university starting in Septem-
ber indicates that Israeli air force officials are not expecting an
Arab-Israeli war. The attach�eports that this officer is "the
brains of the Israeli air force" and is their only "real efficiency
expert," and he would be unlikely to leave if there IX7PrP A thrt361- nf
war.
The Israeli press published a New Yorkfpres
report thatl. Tel Aviv was negotiating with British and American pe-
troleum companies for construction of a pipeline from Eilat to Haif
which would cost about $30,000,000 and would take one year to com-
plete. According to the American embassy, the Israeli petroleum
director said that such a plan was originally discussed in 1951 but
would make no comrnent.on.renartsihat discussions have been re-
sumed.
J. I .C3JAStJV
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