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30 August 1955
Copy No. �
99
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. I-9
NO CHANGE IN CLASS.
I DECLASSIFIED
CLASS CHANGED TO: TS S C
NEXT REVIEW DATE: ____24:2id
AUTH: HR 70-2
DATE: Ati /ea REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1.
2. COMMENT ON PROPOSED FRENCH SOLUTION OF
MOROCCAN PROBLEM (page 4).
3. YUGOSLAV POSITION ON BATTLE ACT RESTATED
(page 5).
4. ANTI-WESTERN LEADER MAY HAVE BEEN OUSTED
BY EGYPTIAN REGIME (page 6).
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2. COMMENT ON PROPOSED FRENCH SOLUTION OF
MOROCCAN PROBLEM
The French cabinet's announced acceptr
ance of the "package deal" for Morocco
whereby both Resident General Grand-
val and Sultan Mohamed ben Arafa are
to be removed is not likely to relieve the serious situation
in Morocco.
The Presence Francaise
and other French settler groups have been distributing
tracts opposing concessions to the nationalists. The na-
tionalists' understanding with Premier Faure 5r probably
at best only tenuous, and any suspension of agitation by
the Arabs will probably bebrief unless former sultan
Mohamed ben Youssef is soon brought to France and ap-
proves the understanding.
The arming of French settlers which
has occurred since 20 August makes reprisals against
Moroccan groups and the minority of French residents
who favor genuine reforms for Morocco even more likely
than in the past. Selection of General Roger Boyer de la
Tour, now resident general in Tunisia, as Grandval's re-
placement is not likely to satisfy the French settlers,
among whom Boyer is discredited through his association
with the "sellout of Tunisia!'
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3. YUGOSLAV POSITION ON BATTLE ACT RESTATED
Reiterating his government's strong
desire for continued US economic
aid, Yugoslav ambassador Vidic
told Ambassador Bohlen in Moscow
on 28 August that Vice President Vukmanovic-Tempo
did not mean to imply to Ambassador Riddleberger that
the Yugoslays could no longer accept the terms of the
Battle Act. According to Vidic, the vice president had
been only putting forth his government's view that be-
cause of the improved international atmosphere, trade
restrictions no longer appeared as necessary as in the
past
Vidic confirmed that the USSR had of-
fered Yugoslavia a gold loan at 2-percent interest. He
said he did not know whether the Soviet Union was en-
deavoring in the current Moscow talks to get strategic
goods from the Yugoslays.
Comment Several Yugoslav officials have at-
tempted to modify Vukmanovic-Tempo's
statement, made just prior to his trip to Moscow, that
the Yugoslays would renounce further American economic
aid if it were conditioned on continued observance of the
Battle Act. This apparent retreat shows that Belgrade,
pending talks with the USSR, does not wish to risk termi-
nation of American aid, which this fiscal year is scheduled
to include a grant of $34,000,000 as well as possible ship-
ments of surplus wheat and cotton.
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4. ANTI-WESTERN LEADER MAY HAVE BEEN OUSTED
BY ELirPTIAN REGIME
Press reports that Major Salah Salim,
Egyptian minister for national guidance
and Sudan affairs, has been given "leave
of absence" suggest that the contest for
power within uieriflng Revolutionary Command Council
has reached a decisive point. �
, Salim has long been reputed to be Prime
Minister Nasr's principal opponent and leader of an ex-
treme anti-Western faction in the RCC. Although the ap-
parent failure of Salim's campaign to unite the Sudan with
Egypt is cited in the press as the reason for his eclipse at
this time, there have been numerous reports that Nasr in-
tended to oust Salim whenever he felt strong enough to do so.
There may be a connection between
Salim's present status and the Cairo regime's acts of provo-
cation against Israel during the past few days. By such
actions, Nasr might seek to assure himself of support from
the army if a purge of the Salim faction were under way.
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