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priff "OA
CURRENT
INTELLIGENCE
BULLETIN
TOP SECRET
Copy No.
DOCUMENT NO.
NO CHANGE IN CLASS cet
H DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 20
AUTH; HR 70-2
DATE: IIV4 g6 REVIEWER;
ei9/do
10 February 1A6
o/f
A,
103
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
3.3(h)(2)
3.5(c)
z
TOP SECRET
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Asmi
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CONTENTS
1, PAKISTAN REACTING FAVORABLY TO SOVIET TRADE
OVERTURE (page 3).
2. MOVE TO EXPEL POUJADIST DEPUTIES MAY CAUSE
VIOLENCE (page 4).
3. SOUTH KOREA REPORTEDLY TO DIVERT US AID FUNDS
TO PRESIDENTIAL CAMPAIGN (page 5).
4. BURMESE INSURGENTS SEEK THAI CLEARANCE FOR ARMS
FROM TAIWAN (page 6).
5. KHRUSHCHEV DEFINES DETENTE AS IMPOSSIBILITY OF
MAKING WAR (page 7).
6. EGYPTIAN POLICE ARREST CAIRO COMMUNIST LEADERS
(page 8).
7. TURKISH MINORITY REPORTEDLY INSTRUCTED TO VOTE
AGAINST GREEK PREMIER (page 9).
10 Feb 56
THE ARAB-ISRAELI SITUATION
(pap. 10)
Current Intelligence Bulletin Page 2
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LAJD11- tLIE,1,4 1.6-1L,
1. PAKISTAN REACTING FAVORABLY TO SOVIET
TRADE OVERTURE
Pakistan is responding favorably to
Soviet premier Bulganin's suggestion
of a trade pact to improve Pakistani-
Soviet relations�
Following a statement by the Pakistani
foreign minister on 7 February that
Pakistan's policy aimed at friendship
and co-operation with as many nations as possible, press
reports from Karachi said on 9 February that a cabinet
decision had been reached to open trade negotiations with
the USSR.
Although Bulganin also indicated that
technical assistance could be made available, Karachi will
probably confine its initial relationship with the USSR to ex-
changing agricultural exports such as jute and cotton for
machinery and manufactured goods. (Concurred in by ,ORR)
10 Feb 56
Current Intelligence Bulletin Page 3
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2. MOVE TO EXPEL POUJADIST DEPUTIES MAY
CAUSE VIOLENCE
The move to invalidate credentials
of 12 of the 52 Poujadist deputies by
the French National Assembly may
lead to violent demonstrations in the
districts where they were elected, according to ex-premier
Antoine Pinay.
Pinay thinks that the Poujadists may
get veterans' support and try to emulate the veterans in
Algeria, whose demonstrations have forced the resigna-
tion of General Catroux as minister resident in Algeria.
(NOFORN)
Comment The invalidation move is probably a
political effort by the Republican Front,
since the credentials of the Poujadist candidates were ac-
cepted by the Ministry of Interior before the eleCtion. The
Republican Front stands to gain some seats if the action is
carried out.
The Communists, who support the repub-
lican Front in this effort, have considerable veteran support
of their own. The government can be expected to make a
strong effort to block any mass Poujadist demonstration or
counter-action by the Communists.
10 Feb 56
Current Intelligence Bulletin Page 4
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tir acurtn
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3. SOUTH KOREA REPORTEDLY TO DIVERT US AID
FUNDS TO PRESIDENTIAL CAMPAIGN
South Korea's Liberal Party was plan-
ning in late January to raise some
$4,000,000 by diverting funds received
from the sale of US aid goods,
much Ameri-
can aid is wasted 'because of diversions to South Korean
� nd the theft of construction materials.
Comment Other reports suggest that the close
identification of the Liberal Party with
the administration has permitted revenue from the sale of
aid goods to be channeled into party coffers. An American
official in Korea has estimated that 22 percent of imported
coal, for example, is pilfered or otherwise diverted.
10 Feb 56
Current Intelligence Bulletin Page 5
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A \..'L 1-1�... \LI
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4, BURMESE INSURGENTS SEEK THAI CLEARANCE
FOR ARMS FROM TAIWAN
Comment
he ICarens have sought arms from
Taiwan and that Chinese Nationalist officials are willing to
provide them--"if a way can be found to get around the
Americans." Although one boatload of arms will do little
to improve the Karens' limited military capabilities, the
Burmese would almost certainly learn of it and would sus-
pect that Thailand and the United States are involved.
a Burmese official, act-
ing under urgent instructions from Premier Nu, informed
the American ambassador of his government's certain knowl-
edge that the Karen insurgents maintained important contacts
in both Taipei and Bangkok. The Burmese asked for reme-
dial action by Thailand and the United States.
10 Feb 56
Current Intelligence Bulletin Page 6
TOP SECREi
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Stettti"-
5. KHRUSHCHEV DEFINES DETENTE AS IMPOSSIBILITY
OF MAKING WAR
Comment
The Soviet party chief's vigorous reaf-
firmation of Communist faith recalls his
statement to an East German delegation last September that
those "who expect us to forget" Marxist doctrine "will have
to wait until a shrimp learns to whistle:'
10 Feb 56
Current Intelligence Bulletin Page 7
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6. EGYPTIAN POLICE ARREST CAIRO COMMUNIST
LEADERS
Between 5 and 7 February the Egyp-
tian police arrested 39 leaders of
the illegal Communist party and seized
printing equipment of new and excellent
these raids have "broken the back" of the Commu-
nist leadership in Egypt.
the indications
of substantial financing and advanced organization found in
these raids shocked Interior Minister Muhieddin and Prime
Minister Nasr, who now realize they have badly underesti-
mated the subversivnotential inherent in close relations
with the Soviet bloc.
Comment
Muhieddin
believed earlier
that the USSR would not risk antagonizing the regime by sup-
porting subversive activity while the arms deal was being
carried out. While the regime may be more alert to the pos-
sibility of such activity in the future, its attitude on internal
subversion is not likely to have a significant effect on its deal-
ings with Soviet bloc governments.
10 Feb 56
Current Intelligence Bulletin Page 8
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t
. SLCULI
�
7. TURKISH MINORITY REPORTEDLY INSTRUCTED TO
VOTE AGAINST GREEK PREMIER
Comment
In the close election race, the 13 seats
in northern Greece controlled by the
Turkish minority's vote might spell the difference between
victory and defeat for Karamanlis. Karamanlis reportedly
has been seeking a way to persuade Ankara to encourage
this Turkish minority to vote for him.
Ankara, however, in using its influence
against Karamanlis, may be trying to promote Greek politi-
cal instability and thus prevent the formation of a government
strong enough to put across a compromise settlement with
Britain on the Cyprus issue. The Turks have shown extreme
concern over a possible compromise settlement.
10 Feb 56
Current Intelligence Bulletin Page 9
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_ _
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 9 February)
The Israeli minister in Washington told
American officials on 6 February that Israel might start work
at Banat Yacov on the proposed diversion canal project while
making a simultaneous public declaration that it would divert
only the quantity of water, which would be assigned to it under
the Johnston plan. He felt this course would give Israel a
strong legal case if it renewed work inside the demilitarized
zone. In the same conversation,Israeli ambassador Eban em-
phasized that Israel had not necessarily indicated it would re-
sume the work on 1 March, the "deadline" given last fall for
Arab acceptance of ihe JohAston plan.
Proposed Diversion Canal
/
Derfctlltesize
Z011e
Proposed
Reservoir
BANAT YACOV
International
. boundary
� � � Armistice line
Proposed canal
MILES
C14311�FleirN440.6
9 FEBRUARY 1956
24031
11.1 rev Do
L.urrent int lligence Bulletin
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10 Feb 56
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