CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003400240001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: December 17, 2002
• Sequence Number: 1
• Publication Date: November 30, 1957
• Content Type: REPORT

TOP SECRET
2003/02/27: CIA-RDP79
30 November 1957
C opy No o
CURRENT
INTELLIGENCE
BULLETIN
AUTHI t i
REVIEWER:
CLASS. CHANG;`) TO: 1
NEXT I1EVIEV- DATE:
NO CHANGE ,N CLASS.
[)ECLAT i, ILD
DOCUMENT NO.
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
O
s
State Dept review completed
TOP SECRET
2003/02/27: CIA-RDP79T
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CONTENTS
1. USSR WILLING TO SUPPLY "LATEST WEAPONS" TO CHINA
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3. OUTLOOK FOR FRANCES ALGERIAN POLICY
(page 5).
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4. THE SITUATION IN IFNI
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7. LAOTIAN GOVERNMENT ACTS TO CHECK SUBVERSION
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h 8. DEMAND DEVELOPING FOR NEW INDONESIAN CABINET
&.,t- 10. KISHI VISIT TO INDONESIA ACHIEVES REPARATIONS
AGREEMENT
A-Ot_ 11. MALAYAN FEDERATION GOVERNMENT SUFFERS SIGNIF-
ICANT DEFEAT IN BY-ELECTION
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1. USSR WILLING TO SUPPLY "LATEST WEAPONS"
TO CHINA
Indications that the USSR has agreed
to supply the Chinese with some of its
"latest weapons" are contained in So-
viet Defense Minister Malinovsky'S
speech on 27 November to the Chinese
military mission now concluding its
three-week stay in the USSR. He spoke
of "our armies. . . armed with modern
dfirst-clas weapons," and proclaimed
willingness to r xperience in the building up
if armed forces to our Chinese friends."
On 29 November, Malinovsky told re-
porters that the Chinese "can make all the weapons they
want themselves:'
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While it is unclear what kinds of weapons
might be involved, supplying advanced weapons whether nu-
clear or not would. require the presence in China of consid-
erable numbers of Soviet advisers and technicians. Chinese
Defense Minister Peng Te-huai's reply to Malinovsky, how-
ever, suggests that Peiping does not want to depend for an
indefinite period on Soviet advisers and may insist on its
right to ultimate control of the new weapons. Peng declared
that the Soviet military "example" will be applied "in accord-
ance with the concrete conditions of the Chinese army."
:Deng has invited Malinovsky to make a
visit to Communist China.
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3. OUTLOOK FOR FRANCE'S ALGERIAN POLICY
The French National Assembly's ap-
proval of the basic statute for the
administration of Algeria gives
Premier Gaillard a breathing spell,
but is unlikely to resolve any of the
fundamental issues of the conflict.
The basic law itself has been delayed
and watered down at the expense of the
advantageous effect it might have had on the French public
as well as the Algerian Moslems,
The French public has recently become
convinced that the military situation in Algeria has defi-
nitely developed in France's favor. Once the UN debate on
Algeria is over, the government will probably be under re-
newed pressure to stiffen its position and to step up the drive
for a complete military victory.
If French military control of the situa-
tion becomes clearly evident, France will be obliged to be-
gin implementing the basic statute by holding elections,
which subsequently would raise the question of discussions
with "elected representatives" of the Algerians. In any case
the existence of the basic statute may serve to move Paris
to take some steps toward negotiations with the Algerian na-
tionalists in the next few months. If hopes for a complete
military victory lead Paris to postpone application of the
basic statute, however, the government will be increasingly
vulnerable to attack by the growing minority, symbolized by
Mendes-France, which favors a more liberal solution, A
prolonged military stalemate would strengthen proponents
of negotiations with the rebels.
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4. THE SITUATION IN IFNI
Fighting between Moroccan Army of
Liberation irregulars and reinforced
Spanish forces apparently continues in
the area of Ifni, Spain's 741-square-
mile enclave along Morocco's Atlantic coast. Reports
from Madrid and Rabat present widely varying accounts
of developments in the region, but Spanish troops appear
to be generally in control within the enclave. Some vio-
lations of Moroccan territory by Spanish aircraft operat-
ing in support of ground units have been reported out of
Rabat. This suggests the possibility of future clashes with
Moroccan regulars who have been instructed to oppose any
Spanish incursions.
Moroccan officials deny the Spanish ver-
sion which attributes the trouble to Army of Liberation ele-
ments beyond Rabat's control and insist that the events in
Ifni represent a local popular uprising precipitated by Span-
ish "Provocations."
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LAOTIAN GOVERNMENT ACTS TO CHECK SUBVERSION
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The Laotian government is taking some
steps to meet the threat of increased
Pathet subversion and to check on Pathet
efforts to evade fulfillment of commit-
ments made under the recent settlement
accords. Prime Minister Souvanna. Phouma
has ordered an anti-Communist propaganda
campaign', throughout Laos and the infiltra-
tion of 200 police into each of the two northern provinces to
man frontier access posts and other key spots.
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However, there are indications that the
Pathet representatives in the Laotian cabinet, Prince Souphan-
nouvong and Phoumi Vongvichit, are already wielding influence
approximating a veto over some government decisions relat-
ing to the implementation of the settlement accords. At a
cabinet meeting on 25 November, they succeeded in blocking
the appointment of two apparently well-qualified leaders as
governor of Sam Neua Province, finally agreeing to the selec-
tion of a nonpolitical technician who is allegedly related to
Phoumi and may, therefore, be susceptible to Pathet influence.
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8. DEMAND DEVELOPING FOR NEW INDONESIAN CABINET
ressure for a new Indonesian cabinet
appears to be building up in the National
Reconstruction Conference now meeting
in Djakarta, Non-Javanese elements are
supporting a resolution, presented by the
West Borneo delegation, for the formation
of a new cabinet either jointly led by Pres-
ident Sukarno and former Vice President
Hatta or by Hatta alone. Important civil
and military elements in West Java appar-
ently also favor such a step. Hatta, who
is cochairman of the conference, has ruled
that the resolution will be discussed after
the current general debates are concluded.
Although regional leaders have been disap-
pointed in Hatta in recent months, they still believe that as a
top government leader he would represent regional interests
and obstruct Communist influence in the government. Most
Javanese army elements, while they do not share the dissident
leaders' enthusiasm, would support Hatta as a cabinet leader.
Javanese army commanders seem to want a new cabinet in or-
der to prevent the implementation of a bill which would limit
the army's emergency powers,
Premier Djuanda has indicated that he is
prepared to resign at any time in the interest of promoting na-
tional unity, and Sukarno's acceptance of Hatta as head of a
non-Communist cabinet would constitute his first significant
concession to the disaffected provincial leaders. The pre-
ponderance of recent reporting, however, indicates that Sukarno
and Hatta are still far apart on such matters as Communist par-
ticipation in the. government.
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10. IUSHI VISIT TO INDONESIA ACHIEVES
REPARATIONS AGREEMENT
Japanese Prime Minister Kishi and
Indonesian Premier Djuanda an-
nounced upon Kishi's departure for
Australia that they had reached basic
agreement for settling the long-pending reparations prob-
lem. Such an agreement was the major objective of Kishi's
current Asian tour and is an important element in Japan's
drive to establish closer economic relations with Asian
countries.
The final agreement, which Djuanda
said would probably be announced after two or three meet-
ings, is expected to cancel Indonesia's $170,000,000 trade
debt to Japan and commit Tokyo to reparations grants of
$230,000,000. The Japanese also would extend long-term
loans. All provisions are subject to approval by the respec-
tive parliaments.
Kishi and Djuanda impressed each other
favorably during their discussions, and Ambassador Allison.
believes that normal diplomatic relations between Tokyo and
Djakarta can be expected as a result. The two heads of gov-
ernment apparently did not discuss the possibilities of an
Asian development fund.
Japan already has reached reparations
settlements with Burma and the Philippines and requires only
an agreement with South Vietnam to end its major reparations
problems.
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The ruling Alliance party in Malaya
was decisively defeated by the left-
wing People's Progressive Party
candidate on 23 November in a federal
legislative council by-election in the tin-mining center of
Ipoh. The results probably forecast the development of an
increasingly effective left-wing opposition in Malaya and
represent a serious threat to the carefully developed Malay-
Chinese political cooperation on which the Alliance is built
and political stability in Malaya depends.
The victorious candidate, D. R. Seenivas-
a ,gam, secretary general of the People's Progressive Party,
is a London-educated lawyer of Ceylonese extraction who ex-
ploited Chinese fears of Malay domination and interpreted gov-
ernment efforts to control subversion in Chinese schools as
an attack upon Chinese culture. The weak showing of the gov-
ernment candidate, a Chinese, in a predominantly Chinese
district demonstrates the appeal of this type of attack and in-
dicates increasing distrust of the government on the part of
the Chinese population.
Continuing Chinese student demonstra-
tions against the government suggest that further and possibly
more serious interracial friction can be expected. Chinese
suspicion of government actions will greatly complicate the
federation's efforts to control subversion among Malaya's large
11. MALAYAN. FEDERATION GOVERNMENT SUFFERS
SIGNIFICANT DEFEAT IN BY-ELECTION
Chinese minority.
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