CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003400340001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: December 16, 2002
• Sequence Number: 1
• Publication Date: December 12, 1957
• Content Type: REPORT

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CURRENT
INTELLIGENCE
4 BULLETIN
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NO CNAN3E IN CLASS. A(.
DECLASSF ED
(:LASS. CHANGED TO:
NEXT REVIEW DATE:
AUTH 7 -2
_.i_ !ZpkREVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
19
State Dept. review completed
TOP SECRET
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CONTENTS
25X1 1. USSR OFFERS S'E'ATUS QUO SETTLEMENT AS ALTERNA-
TIVE TO BOLSTERING NATO STRENGTH
1' 2. BULGANIN LETTER TO NEHRU I
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3. LACK OF PROGRESS IN WEST GERMAN MILITARY B ILD
UP CRITICIZED IN NATO
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K4. ANTI-AMERICAN DEMONST IN PARIS
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NEUTRALIST POLICY
r(O 5. IRANIAN PRIME MINISTER SAYS IRAN MAY ADOPT
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t/57. INDONESIAN SITUATION
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12 Dec 57 25X1 A Current Intelligence,Bxilletin Page 2
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1. USSR OFFERS STATUS QUO SETTLEMENT AS ALTERNA-
TIVE TO BOLSTERING NATO STRENGTH
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are intended to un
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West a general po
ures to increase
Soviet Premier Bulganin's letters to
President Eisenhower and to heads of
other NATO governments together with
recent private statements apparently
dermine the rationale of American meas-
NATO's strength and unity by offering the
litical settlement based on the status quo.
In a conversation on 4 December with the
Swiss ambassador, Bulganin elaborated on Khrushchev?s pro-
posal of 3 December to a group of ambassadors for Western
recognition of the status quo in Eastern Europe in exchange for
a Soviet agreement not to attempt to overthrow capitalist re-
gimes. Bulganin stated that the USSR was prepared to give
assurances, on a reciprocal basis, against intervention in
the affairs of capitalist countries. He suggested that such an
agreement might cover a period of 12 or 15 years.
Bulganin denied that the Russians were
engaged in a "sputnik diplomacy." He asserted, however,
that they had achieved technological parity with the West and
that East and West should therefore come to an agreement on
the basis of the status quo. Soviet presidium member Mikoyan
took the same line in a talk with the Swiss ambassador on 7
December, stating that East-West negotiations should be facili-
tate;-now :th'at.`the. USSR has reached parity in the technolog-
ical field. He remarked that the USSR previously had suffered
from an inferiority complex which had made negotiations diffi-
cult.
Although the Soviet leaders evidently be-
lieve their technological achievements will enable them to
gain world recognition of the USSR's strategic parity with the
West, it is unlikely that Moscow considers there has been a
sufficient change in the balance of power to justify any radical
shift in Soviet foreign policy. Bulganin remarked to the Swiss
ambassador that although one side or the other might gain a
temporary lead in some particular field, this could not change
the basic situation.
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2. BULGANIN LETTER TO NEHRU
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oviet Pre
ote to Neh
dd to Asi
vier Bulganin's 10 December
ru probably was designed to
i neutralist pressures on the
ee to immediate suspension
est to agr
f further t
ests and to heighten Asian
suspicions of Western defense moves likely to result from
the NATO conference. As in the Soviet note to Japan deliv-
ered on 5 December, Moscow seeks to exploit Asian desires
for a test ban.
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In replying to Nehru's 28 November appeal
to the USSR and the United States to cease nuclear tests and
disarm, Bulganin asserted that test suspension is "now up to
the governments of the United States and Great Britain" This
emphasis on the USSR's willingness to cease nuclear tests by
1 January 1958 will focus critical Asian attention during the
next two weeks on Western responses. While India, Japan,
and Burma as well as other countries favor control and in-
spection procedures over future nuclear development, they
are willing to see these measures instituted after the cessa-
tion of nuclear testing. Continued Western refusal to agree
to a test suspension independent of other disarmament meas-
ures probably would disappoint many Asian and African nations.
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3. LACK OF PROGRESS IN WEST GERMAN MILITARY
BUILD-UP CRITICIZED IN NATO
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In the course of the NATO Annual Review
examination of West Germany's build-up
plans, NATO representatives criticized
Bonn's pleas of financial difficulties. The
German representative stated that rearmament was unpopular
with the West German public. The Standing, Group representa-
tive pointed out that NATO military authorities were particu-
larly concerned over the serious shortfall in the German army
and air force and over the urgent need to increase the pace of
the build-up.
The German representative expressed
Bonn's firm intention to fulfill its NATO obligations, but
pointed to the economic problems created by absorbing
10,000,000 refugees and increasing the defense budget by
"leaps and bounds." The review committee chairman replied
that refugees had been a net gain for Germany and that Bonn
has large holdings of foreign exchange and gold. He also hoped
that creation of a 12,000-man cadre for home defense would not
impede the build-up of NATO forces.
Bonn has been extremely reluctant to com-
mit itself to a long-range schedule for its NATO forces, and
the considerable hedging during the examination indicates
doubts on the advisability of investing large sums for conven-
tional forces and equipment.
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4. ANTI-AMERICAN DEMONSTRATIONS PLANNED IN PARIS
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J erican demonstrations may be
held in Paris during the 'NATO confer-
ence. Pierre Poujade has called for
"patriots" to gather at war memorials
on 15 December "to protest American
insolence. "
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the Gaillard government has made substantial conces-
sMons to labor which are expected to limit labor's willingness
to go out on strike. Some support may be available however,
from Communist militants in response to the Communist
party `central committee?s: call for "dignified" demonstra-
tions against NATO.
The Paris police will be particularly alert
to forestall hostile demonstrations during the NATO discus-
sions and will effectively curtail any minor manifestations
of anti-Americanism.
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IRANIAN(PRIME MINISTER SAYS IRAN MAY ADOPT
NEUTRALIST POLICY
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Iranian Prime Minister Eqbal as sug-
gested to an American embassy repre-
sentative that Iran is contemplating a
neutralist policy. Apparently continu-
ing Iran's campaign to highlight its need
for additional American aid.9 Eqbal said
that unless there was an increase in such
aid, Iran would have to re-evaluate its
Baghdad pact position, cut down its army, and apply the sav-
ings to interior economic development. He asserted the Rus-
sians were willing to give economic aid and even ships for
the Iranian navy. Tehran, he said, believes it is gaining
nothing from its pact membership and is in an exposed posi-
tion with respect to the USSR. The prime minister also
voiced suspicions regarding the motivation of Iraq and Tur-
key--both Baghdad pact members.
12 Dec 57 25X1A Current Intelligence Bulletin Page 7
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7 . INDONESIAN SITUATION
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Communist gains in Java have convinced
Sumatran leaders that the only sensible
course is to declare Sumatra independent
The military corn-
mander in Central Sumatra, Lt. Colo
Hussein, has already taken steps to protect
foreign business in his area and to see that
revenues, which previously went to Djakarta,
do not fall into Communist or central govern-
ment hands.
Hussein has ordered that Dutch enterprises
be placed under the control of the provincial administration and
that the tax on all exports be turned over to authorities in
Padang, the provincial capital, rather than be remitted to
Djakarta. In South Sumatra, army commander Lt. Col. Bar-
lian has assured the local Stanvac manager that the Dutch in the
province will be protected and that Dutch employees of Stanvac
will not be forced to leave.
In Java, President Sukarno has made his
first statement since the speech following the attempt on his
life on 30 Nove:mj er. In a brief speech in Surabaya he said
there would be no letup in the anti-Dutch campaign and appar-
ently omitted any reference to illegal labor activities. He tied
the campaign to Indonesia's demand for Netherlands New Guinea,
stated that Indonesia faces "many hardships" in its battle to win
the area, and said the country's aims are supported by a major,
itv of the world's population including Communist China.
12 Dec 57 25X1 A Current Intelligence Bulletin Page 9
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