CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002700320001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 18
• Document Creation Date: December 19, 2016
• Document Release Date: January 27, 2006
• Sequence Number: 1
• Publication Date: September 15, 1956
• Content Type: REPORT

el' / 06/U2f37:'CTi4=RDP79 TOO
25X1
CURRENT
INTELLIGENCE
BULLETIN
15 September
1956 25X1
Copy No. 105
DOCUMENT NO. -3X1
NO CHANGE iN CLASS-^^
u ~rECLA
CLASS. CHANGED TO: TS S C
AUTH: _ I t70
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
Dt 9,DQv% SRMt@ FqP ) completed.
00
OF
TOP SECRET
J4 6/02/07: CIA-RDP79T00WXe/xxx//xx////,,
25X1
 25X1 Approved For Release 2006/02/07 : CIA-RDP79T00975AO02700320001-6
Approved For Release 2006/02/07 : CIA-RDP79T00975AO02700320001-6
 25X1A
25X1
25X1
6. SOVIET CANAL PILOTS REPORTED IN EGYPT
10. SOVIET-INDONESIAN'AID AGREEMENT SIGNED
(page 13).
FIELD AGREEMENT
9. SAUD REDUCES PRICE FOR EXTENSION OF DHAHRAN AIR-
25X1A
11. USSR WARNS SATELLITES AGAINST YUGOSLAV INFLUENCE
12. EMPLOYMENT OF SOVIET TECHNICIANS IN EGYPTIAN OIL
EXPLORATIONS
1. NEW SOVIET MOVES IN SUEZ CRISIS
Approved For Felgase 2006/02/07 : CIA-RDP79T00975AW2700320001-6
CONTENTS
25X1A
2. EGYPT APPEARS STILL SEEKING TO AVOID PROVOCATION IN
SUEZ CRISIS 25X1A
3. EUROPEAN REACTIONS TO PROPOSED SUEZ USERS' ASSOCIA-
25X1 A TION
5. NEHRU CALLS A COLOMBO POWERS' MEETING ON SUEZ
25X1A ISH SUEZ PROPOSAL
4. NASR REPORTED READY TO NEGOTIATE ON BASIS OF SPAN-
25X1
25X1A
25X1A
THE ARAB-ISRAELI SITUATION
25X1A
15 Sept 56 Current Intelligence Bulletin
Approved For Release 2 06/02/07 : CIA-RDP79T00975AO02 00320001-6
Page 2
25X1
25X1A
25X1A
 Approved For R IIi ase 2 - X700320001-6
25X1A
25X1A
L NEW SOVIET MOVES IN SUEZ CRISIS
Moscow's first official demarche to the
Western powers on the Suez problem
since the London conference was con-
tained in. notes delivered to London and
Paris on.12 September. The notes warn
again that the use of force against Egypt
would carry the inherent risk of an ex-
panded war and encourage the British
and the French to undertake new nego-
tiations either in a conference or at the
United Nations. The notes will reassure
Cairo of Moscow's good faith in carry-
ing out its promise to give Egypt active
political support during the crisis.
According to a source in the British
Foreign.Office, the note to London dealt
largely with the dangers of using force in the present age, the
lasting effect the use of force would have on Western interests
in the Middle East, and an appeal for a peaceful settlement of
the problem based on the United Nations charter. According
to the French, Foreign Ministry, the note to Paris adds an in-
sinuation that the United States is attempting to replace France
in Algeria and gain ascendancy in the. Middle East, The note
asserts that the USSR had no prior knowledge that Nasr was
going to nationalize the Suez Canal and that Moscow has con-
sistently urged Nasr to settle the matter peaceably.
25X1
15 Sept 56 Current Intelligence. Bulletin Page 3
25X1A
Approved For Release
- 002700320001-6
lwlll~~ I
 25X1A
Approved For RBI ase 2006/02/07 : CIA-RDP79T00975AQp2700320001-6
25X1
Meanwhile, TASS in London has termed
the creation of the canal users' association a "signal for the
intensification of a campaign of blackmail and threats in re-
spect to Egypt" Moscow radio on.13.September charged. it
runs counter. to the United Nations charter. Western press
reports state that Soviet diplomats in London have harshly
criticized the users' association and have stated that while
the USSR wants to avoid a conflict over 'Suez, the USSR would
be among those nations providing Egypt with both volunteers
and arms should there be an attempt to force solution on
Egypt.
15 Sept 56 Current Intelligence Bulletin Page 4
25X1A
Approved For Release T777 - 02700320001-6
 Approved For Releasel 2006tO2tO:7 . - 700320001-6
NW01 MW
____]while the Egyptian government's
initial reaction to the announcement
of the formation of a Suez Canal users'
association was one of outrage and determination to :resist
with all available means, soberer second thoughts appear
to have produced a renewed determination to avoid any ac-
tion which could be interpreted as provocation or as Obstruc-
tion of canal traffic.
2. EGYPT APPEARS STILL SEEKING TO AVOID
25X1A 25X1A PROVOCATION IN SUEZ CRISIS
25X1
25X1
25X1A
25X1A
seems to be to ridicule the users' asso-
The Nasr regime's tactic,
ciation plan while trying to marshal world opinion against
it.
Comment
Strong Egyptian statements opposing
the users' association plan, even con-
sidering they were made in the heat of the initial reaction,
seem to have closed off any possibility that Cairo might
come to terms with this plan.
15 Sept 56 Current Intelligence Bulletin Page 5
25X1A
Approved For Release
25X1
25X1
 Approved For Re ase 2006/02 xt 4-RDP79T00975AQD2700320001-6
25X1A
3. EUROPEAN REACTIONS TO PROPOSED SUEZ
USERS' ASSOCIATION
Premier Mollet and Foreign Minister
Pineau during a conversation on .13 Sep-
tember gave Ambassador Dillon the
impression that the proposed users' asso-
ciation fully satisfied British and French
needs for action and contributed to avoid-
ing the danger of armed hostilities with
Egypt. Once the association was organ-
ized, Paris would be willing to undertake
serious negotiations with President Nasr
for a permanent settlement along the gen-
eral lines of the 18-power proposal.
Pineau believes there is a good possibil-
ity of avoiding hostilities unless Nasr commits another grave
act, but he did not indicate whether rendering transit impos-
sible for vessels of the proposed users' association would,
if carried out peacefully, be the type of grave action which
might bring on hostilities.
Italian foreign minister Martino on.13
September told Ambassador Dillon in Paris that he did not
see how the proposed association would be successful in get-
ting shipping through the canal and said that Italy, for geo-
graphical and financial reasons, could not undertake to route
its shipping around the Cape of Good Hope. Martino said he
felt the only way to make further progress would be to call
another conference of the 18 nations. The Italian cabinet,
on the other hand, issued a communique on.12 September ad-
vocating recourse to the United Nations.
The Danish, Norwegian and Swedish for-
eign ministers meet in Stockholm Sunday to seek a common
Scandinavian position toward the proposed users' associa-
tion. The reaction.of the Scandinavian governments to the
proposal has been strongly negative and..Foreign Minister
Unden of Sweden is convinced the matter must be referred
to the UN.
15 Sept 56 Current Intelligence Bulletin Page 6
25X1A
Approved For Rele
se 2006/02/07 : CIA-RDP79T00975A0027003
 Approved For Fe ase 2006/02/07: CIA-RDP79T00975AZ2700320001-6
25X1A
25X1 A 4. NASR REPORTED READY TO NEGOTIATE ON BASIS OF
SPANISH SUEZ PROPOSAL 25X1A
The Egyptian. ambassador in Madrid has
informed Spain that Nasr would accept
Spain's proposed formula of an interna-
tional consultative body for the Suez
ana 9 eaving Egypt full operating control, as a basis' for
negotiations in a new 4.5-power conference sought by Egypt.
Spanish foreign minister Martin. Artajo informed Ambassa-
dor Lodge on.13 September that Spain had promised to in-
form Egypt of its intentions with regard to the proposal by
15 September, but desired to know the US position first.
Martin Artajo also expressed concern lest the West find
itself at war without having explored this new development.
The Egyptian ambassador prefaced his
announcement of Nasr's offer with.the statement, "Spain's
hour had now come" to save the peace.
Comment At the London conference, Spain re-
served its right to suggest a consulta-
tive form of international participation for the Suez Canal
similar to the Indian plan should the 18-power proposal be
rejected by Egypt.
The Spanish government and the con-
trolled press have taken the view that the Spanish amend-
ment was. the only approach to the issue that had a good
chance of effecting a prompt solution. The Egyptian press
has claimed the support of twenty. nations-'--inclndi;ng,..Iiidia
and the Soviet bloc members--for the new conference pro-
posal, but no official acceptances have been reported..
15 Sept 56 Current Intelligence Bulletin Page 7
25X1A
Approved For Rele
 25X1A
25X1A
5. NEHRU CALLS A COLOMBO POWERS' MEETING ON SUEZ
Nehru has called for a meeting on.15
September of representatives of the
Colombo powers in New Delhi to dis-
cuss the Suez Canal question, accord-
ing to an.Indian government announce-
ment.
India's move--which reportedly surprised
Pakistan, Ceylon, Burma and Indonesia--
is probably to seek 'approval for a new approach to the dis-
puting nations. This approach seems likely to take the form
of a call for postponement of any proposed Western action
and for further peaceful negotiations on the basis of mutual
recognition of Egypt's sovereignty and of international in-
terest in the canal.
25X1A
Pakistan, which supported the West at
the -London conference, may under mounting public pressure
associate itself with any mediation move by the Colombo
powers. Britain would deplore such a move by a group in-
cluding the three Commonwealth nations of India9 Pakistan
and Ceylon, but would be unlikely to be deterred by Pakistan's
defection from the 18-nation group at the o don conference.
15 Sept 56 Current Intelligence Bulletin Page 8
Approved For Re
25X1A
 Approved F6rise J006FO-M7 - e1A Q700320001-6
25X1A
25X1
6. SOVIET CANAL PILOTS REPORTED IN EGYPT
An unspecified number of Soviet ship
pilots have arrived in Egypt and are
prepared to enter on duty on the Suez
Canal, according to a press report quot-
ing the Soviet consul in Port Said.
15 Sept 56 Current Intelligence Bulletin
Approved For Relea
25X1A
Page, 9
 25X1 Approved For Release 2006/02/07 : CIA-RDP79T00975AO02700320001-6
Next 1 Page(s) In Document Exempt
Approved For Release 2006/02/07 : CIA-RDP79T00975AO02700320001-6
 Approved For Fel - 700320001-6
25X1A
9.. SAUD REDUCES PRICE FOR EXTENSION OF. DHAHRAN
AIRFIELD AGREEMENT
25X1A
if the United a
of military equip
worth of other ai
King Saud,as his "last offer," expressed
willingness to Ambassador Wadsworth
on 13 September to extend the Dhahran
airfield agreement for five more years
es would agree to grant $85,000,000 worth
ment in addition to furnishing $25,000,000
d.
W 25X1 A The king added that if the United States
ou d agree to sell an additional $35,000,000 worth of arms,
previously sought by him, he would desire to retain the
American military advisory mission.
25X1A
Comment
Saud's proposal contrasts with his pre-
Suez offer to extend the agreement for
five years in return for $250,000,000 worth of arms.
The previous five-year agreement ex-
pired in June of this year, but was provisionally extended
by the king pending conclusion of a new agreement.
15 Sept 56 Current Intelligence Bulletin Page .12
25X1A
Approved For Rele CIA-REM
002- 1 001-6
 Approved For
25X1A
25X1A
10. SOVIET-INDONESIAN AID AGREEMENT SIGNED
An agreement for $100,000,000 in Soviet
aid for Indonesia will be signed in. Djakarta
on 15 September, according to an announce-
ment by the Indonesian Foreign Ministry.
The announcement. stated that the aid would
be used to help develop asphalt and hydro-
electric plants as well as coal and nickel
mines.
The aid probably has been set up as a line
of credit on which Indonesia can draw as its economic plans
progress under a five-year plan, now in final stages of prep-
aration. The Indonesian press reported on 12 September that
the credit would be at 2.5=-,percent interest repayable in 12
years.
The decision on the amount of aid may have
resulted from talks held by President Sukarno and Foreign
Minister Abdulgani during their recently concluded visit to
Moscow. Indonesian officials may argue--in defense of their
neutrality-that the Soviet credit:. balances the $100,0009000
granted by the Export-Import Bank in 1950, which has been
exhausted only this year.
25X1A
15 Sept 56 Current Intelligence Bulletin .Page .13
25X1A
Approved For Rel - 01-6
 Approved For Release - 700320001-6
25X1A
25X1A
25X1A
11. USSR WARNS SATELLITES AGAINST
YUGOSLAV INFLUENCE
25X1A
The Soviet Communist Party warned
the Hungarian and other Satellite par-
ties on 3-September against Yugoslav
influence in regard to the "separate
roads to s.ocia ism' concept, explicitly criticizing Com-
munist statements too commendatory of Yugoslavia and
saying that the USSR remains the model to follow. The
Soviet party also criticized Yugoslav foreign policy as be-
ing "too pro-Western" according to information received
by the American embassy in Belgrade.
. Comment
The recent press exchange between
Yugoslavia and the Soviet bloc on the
"Cominformist" trials indicated that the question of "na-
tional Communism" was still unresolved. Although Yugo-
slavia adopted a "conservative" attitude toward changes in
Eastern Europe up through the period ending with Tito's
June visit to the USSR, the Yugoslavs have again resumed
the initiative in influencing developments in the Satellites
and have accorded public support to "moderate" Polish and
Hungarian Communist elements.
Although this Soviet move may compel
"moderate" Communist forces to adopt more cautious tac-
tics, previous warnings such as Bulganin's speech in Warsaw
last July were apparently largely ignored by those Satellite
Communists intent on more independent, liberal policies.
15 Sept 56 Current Intelligence Bulletin Page. 14
Approved For Releas
25X1
25X1
 Approved For Release - 2700320001-6
25X1A
25X1A
12. EMPLOYMENT OF SOVIET TECHNICIANS IN
EGYPTIAN OIL EXPLORATIONS
-Cairo
Soviet technicians are to assist Egypt
in the oil explorations for which Amer-
ican and British companies had been
seeking leases for several months, ac-
purt by the American embassy in
American companies had been assured
they would be awarded the leases. The reasons for the re-
ported decision are said to have been hostility to Britain
and fear that concessions to American firms would be in-
terpreted as a sign of weakness.
The USSR has unsuccessfully attempted
to secure rights to oil exploration elsewhere in North Africa
and the Middle East. The embassy speculates that similar
arrangements may be extended to other planned oil explora-
tion activities in Egypt, but there have been no indications
that concessions already operated by British and American
companies will be affected.
15 Sept 56
Current Intelligence Bulletin
25X1A
Approved For Releas
Page 15
25X1
 25X1 Approved For Release 2006/02/07 : CIA-RDP79T00975AO02700320001-6
Approved For Release 2006/02/07 : CIA-RDP79T00975AO02700320001-6
 Approved For-Release 2006/02/07 : CIA-RDP79T00975A002
25X1A
25X1
25X1A
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 14. September)
A new serious incident took place along the
Israeli-Jordanian border during the night of. 13-14 September. A
Jordanian military spokesman charged that a large Israeli mobile
force raided a police post 12 miles inside the border in South Jor-
dan, killing at least 21 Jordanians. The Israeli press claimed
that there were no survivors among the 50-man garrison of the
post. None of the recent raids has been acknowledged by the Is-
raeli government. Tension mounted as Jordanian troops were
placed on. the alert and officers' week-end leaves were reported
canceled. Meanwhile, Jordan's King Hussain flew to Habbaniya in
Iraq for an. emergency conference with Iraq's King Faisal, Prime
Minister Nuri Said andArmy Chief bf Staff Rafiq, in a reported effort
to obtain Iraqi aid.
The new Israeli raids will promote instability
in Jordan by further weakening the influence of the king and the gov-
ernment in -West Jordan, where the National Guard and former resi-
dents of Palestine have borne the brunt of the pressure. The Amer-
ican embassy in Amman reports indications that both the National
Guard and .the civilians are becoming more difficult to control.
Reports from Cairo indicate the possibility of
exhaustion. of refugee relief food supplies in the Gaza strip by the
15 Sept 56 25X1ACurrent Intelligence Bulletin
Approved For
Page .17
 25X1A
Approved For
25X1A
00320001-6
end of September. The American embassy reports that the
Gaza refugees are already aware of the shortage of food sup-
plies and are beginning to show discontent. American and
Egyptian relief officials expect that unless the refugees can
hp assured that more food is coming, riots may occur.
25X1A
15 Sept 56 Current Intelligence Bulletin Page 18
Approved For Rel - 001-6