CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002900050001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: September 26, 2002
• Sequence Number: 1
• Publication Date: December 20, 1956
• Content Type: REPORT

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20 December 1956
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CURRENT
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
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9751002900050001-4
2. BOLIVIAS NEW ECONOMIC STABILIZATION PROGRAM
MAY PROVOKE CRISIS
3. ISHIBASHI COMMENTS ON US-JAPAN RELATIONS
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20 Dec 56 Current Intelligence Bulletin Page 2
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2.. BOLIVIAS NEW ECONOMIC STABILIZATION PROGRAM
MAY PROVOKE CRISIS
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The Bolivian economic stabilization pro-
gram, promulgated on 15 December, has
led to sharp increases in the price of con-
sumer goods and may touch off serious
popular unrest and. a political crisis, including the resigna-
tion of President Siles Zuazo. Siles, on 18 December, asked
Ambassador Drew for the US reaction in the event he stepped
down in favor of Vice President Chavez, who, he explained,
had better relations with Congress and the powerful Bolivian
Workers' Central. Drew comments that "in view of Siles'
unpredictable mystique and the extreme tension he is under-
going, one cannot guess what he will do." The cabinet has al-
ready resigned to avoid further questioning by left-wing dep-
uties who oppose the stabilization program.
The stabilization plan, which is backed by
credits of the International Monetary Fund and US government
agencies, is intended to check inflation. Initially supported by
key labor and political leaders, it will bring about sweeping
changes in the Bolivian wage and price structure, with the
Bolivian worker probably bearing the greatest hardship
in the initial phases of implementation.
Juan Lechin, leftist president of the Senate
and head of the Bolivian Workers' Central, has withdrawn his
support of the program, and other labor leaders may follow
suit on grounds that it is prejudicial to the interests of the la-
boring class.
20 Dec 56 Current Intelligence Bulletin Page 4
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3. ISHIBASHI COMMENTS ON US-JAPAN RELATIONS
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Tanzan Ishibashi, Japan's prime min-
ister-designate, has indicated in press
interviews that he regards the mainte-
nance of "closest ties" between Japan
and the United States as essential. He
stated, owever, that this does not mean "blind subservience"
to the United States, since "occupation" attitudes still persist,
and a lack of understanding of Japanese and Far Eastern condi-
tions has caused many American mistakes. He intends to "ar-
gue heatedly" with Washington until there is mutual understand-
ing and co-operation.
Ishibashi has been cautious in discussing
his policy toward Communist China. The press believes that
he will work for expanded trade, but will not seek early res-
toration of formal diplomatic relations with Peiping. Ishibashi
himself states that he will try to solve the Communist China
issue "with the full co-operation and leadership of the United
States."
Ishibashi's press interviews may have been
designed to allay American suspicion of his
policies, and to correct impressions which resulted from his
"misunderstandings" with the American occupation authorities.
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