CURRENT INTELLIGENCE BULLETIN - 1956/08/25

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03193806
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: August 25, 1956

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CURRENT
INTELLIGENCE
BULLETIN
1/7
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DOCUMENT NO./ .)
NO CHANCE IN CUSS.
DATE:
EJ DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
25 August 1956
Copy No.
AUTH: HR 70-2
105 3.5(c)
3.3(h)(2)
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
REVIEWEF
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CONTENTS
1. CAIRO REPORTEDLY REVISES OPINION OF US ROLE
IN SUEZ CRISIS (page 3).
2. PARTY MODERATES MAY REPLACE GERO IN HUNGARY
(page 4).
3. THAI PREMIER MAKES STRONG PLEA FOR INCREASED
US AID (page 5).
4. JAPAN THREATENS ACTION WHICH WOULD WEAKEN
CHINA EMBARGO (page 6).
25 Aug 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 7)
Current Intelligence Bulletin Page 2
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Now Now
I. CAIRO REPORTEDLY REVISES OPINION OF US ROLE
IN SUEZ CRISIS
The Egyptian government within the
past three days has revised its opinion
regarding the role being played by the
United States in the Suez situation and
has concluded that American leadership
in the London conference established
the basis for future French and British
military action,
Egyptian source. The Egyptians still believe the United
States would not participate in such action, but they now
feel American material and moral support would be given.
a
tendency in Cairo as of 23 August to blame the United States
for what the Egyptians consider an unfavorable turn in devel-
opments at the London conference. There were indications
that the regime was about to give the signal for a press at-
tack on the United States to replace the relatively friendly
treatment accorded previously.
Comment
The United States had been
portrayed since the crisis began as the major restralhing
force on the British and French.
25 Aug 56
Current Intelligence Bulletin Page 3
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2. PARTY MODERATES MAY REPLACE GERO
IN HUNGARY
The position of Erno Gero as leader of
the Hungarian Communist Party is "tran-
sitory,"
Nagy would re-
join the party on the oasis oi a compromise, in which the
party will admit that Rakosi, in 1955, was guilty of injus-
tice against Nagy, while Nagy will agree to revise his "ex-
tremist" views.
Comment A recent article in the Yugoslav news-
paper Borba implied that Nagy already
has been readmitted to the party, and added that the process
developing in Hungary demands his complete rehabilitation.
The return of Nagy to public life would be viewed by the
moderates as favorable to their efforts to speed liberaliza-
tion, and welcomed by the local population who remember
Nagy's milder economic policies.
The appointment of the doctrinaire Gero
�to replace Rakosi in July probably was designed to restrain
moderate elements within the party during the initial stages
of policy transformation. A more popular leadership, pre-
sumably formed from the moderate elements within the
party, would be essential for a lasting solution of the prob-
lem of party factionalism and in order to gain some popular
support for the regime.
25 Aug 56
Current Intelligence Bulletin Page 4
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3. THAI PREMIER MAKES STRONG PLEA FOR
INCREASED US AID
Premier Phibun, on the occasion of a
courtesy call of Ambassador Bishop and
American aid officials in Bangkok on
20 August, said that Thailand must have
increased AIerican economic assistance in the training of
skilled labor, in the development of communications facili-
ties, and in the development of electric power.
Bishop points out that Phibun previously
had always left to his subordinates the discussion of aid
problems. In the ambassador's opinion, Phibun's vigorous
and detailed presentation of Thailand's aid requirements on
this occasion indicates the Thai government is now deter-
mined to test American intentions regarding increased as-
sistance.
Comment During the past six months, Thai offi-
cials and the press have complained that
the American aid program has placed too much emphasis
on military assistance. Thai officials, moreover, have
complained that America gives more aid to neutrals than
to Thailand.
25 Aug 56
Current Intelligence Bulletin Page 5
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4. JAPAN THREATENS ACTION WHICH WOULD WEAKEN
CHINA EMBARGO
Japan will soon follow the British lead
in liberal use of the exceptions pro-
cedure for trade with Communist
China unless immediate action is
ain uniform observance of the embargo.
Shigeto Nikai, chief of the COCOM section in the Japanese
Foreign Ministry, has told American officials that Japan
recognizes this move would probably lead to the elimina-
tion of the embargo.
Nikai said that Japanese trade repre-
sentatives in China had recently informed the Foreign
Ministry that British and French commercial agents are
offering to sell China a wide range of commodities on the
China differential list. Nikai saifi that his government
might not long be able to maintain a firm line on the
China embargo.
Comment Peiping is pressuring Japan to dis-
sociate itself from the American
position on the China embargo and is trying to dr4w Tokyo
Into closer trade relations. Although Chinats ability to
obtain embargoed items from Britain and France may be
exaggerated, the argument will have a telling effect on the
Japanese business community.
25 Aug 56
Current Intelligence Bulletin Page 6
�eOAT'F'IDFA-TIAL
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TOP SECRET
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 24 August)
Two Israeli soldiers were wounded in a
clash with Egyptian forces near Kissufim in the Gaza strip. This
follows another clash on 23 August in the same area. (Press)
The American air attach�n Cairo reports
that 19 IL-28 Soviet light bombers, purchased by Egypt from the
Soviet bloc, were observed at Luxor airport, about 350 miles
south of Cairo. The attach�tates that the bombers were prob-
ably moved from Cairo West airport.
The American embassy in Amman reports
that previous Jordanian claims regarding Israeli mobilization
and preparations for war have been partly based on reports ac-
quired by a new intelligence net set up after the ouster of General
Glubb. The net is headed by inexperienced officers who, under
pressure to supply information, are in contact with a very large
number of new sources, many unreliable and discredited by older
intelligence networks. The embassy comments that one result
of this will probably be continued alarmist reports from Jordan
regarding Israeli preparations for war.
According to the American air attache in
Baghdad, Iraq is trying to obtain 10 Mark VI Hunter fighter air-
craft for its air force. Iraq has also selected 10 jet-trained pi-
lots to go to the United Kingdom for several months' training
the Hunters. Iraq now has 23 jet fighters.
25 Aug 56
Current Intelligence Bulletin Page 7
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