CURRENT INTELLIGENCE BULLETIN - 1956/02/09

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03179140
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: February 9, 1956

F17
0 CURRENT
INTELLIGENCE
BULLETIN
Approved for Release: 2019/10/21 C03179140
�T-19P SECRET
DOCUMENT NO.
9 February 1956
Copy No.
103
NO CHANGE IN CLASS
LI DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 1.440
AUTH: HR 70-2
DATE t nft to REVIEWEA
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
z
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
AM,
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
CONTENTS
1. SOVIET BLOC FOLLOWS UP DIPLOMATIC AND ECO-
NOMIC OVERTURES TO BRAZIL (page 3).
2. ARGENTINE PURCHASE OF CZECH PLANES REPORTED
(page 4).
3. WET MINH CONCLUDES BARTER AGREEMENT WITH
4.
JAPANESE FIRM (page 5).
PEIPING OFFERS ECONOMIC ASSISTANCE TO NEPAL
(page 6).
COMMENT ON GRANT OF SELF-GOVERNMENT TO�
MALAYA (page 7).
PRIME MINISTER OUTLINES INDEPENDENT FOREIGN
POLICY FOR JORDAN (page 8).
USSR OFFERS PARTY TIES TO DANISH AND DUTCH
SOCIALISTS page 9).
DOMESTIC POLITICS PROMPTS AUSTRIAN EXPULSION
OF WFTU (page 10).
BONN OFFICIAL FORESEES NEED FOR GERMAN CONTROL
OF BALLOON OPERATIONS (page 11).
PANAMANIAN OPPOSITION REPORTEDLY PLANS VIO-
LENCE AFTER 10 FEBRUARY (page 12).
5,
6.
8.
9.
10,
9 Feb 56
* * * *
THE ARAB-ISRAELI SIT UATIO.N
(page 13)
THE TAIWAN STRAIT
(page 14)
Current Intelligence Bulletin Page 2
TOP StCRtir
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
4-
1. SOVIET BLOC FOLLOWS UP DIPLOMATIC AND
ECONOMIC OVERTURES TO BRAZIL
On 30 January the Polish ambassador
in London invited the Brazilian ambas-
sador to lunch with a Soviet colleague
who wished to "clear up any misunder-
standings that might have existed in
the past," according to an official in the Brazilian Foreign
Ministry.
The same official reports that the Bul-
garians have requested negotiations to conclude a trade
agreement and that Czechoslovakia and Poland have men-
tioned a desire to increase substantially the present volume
of trade with Brazil.
The American embassy in Rio de Janeiro
reports that Brazil intends to revise present trade agree-
ments with Czechoslovakia, Poland and Yugoslavia with
respect to applicable exchange rates, which have remained
far below the level prevailing for major foreign currencies
and have given these countries discriminatory import ad-
vantages.
Comment The Soviet bloc is moving quickly to sup-
port the overture made by Soviet premier
Bulganin for expanded diplomatic and economic relations
with Latin America.
The Brazilian government may feel that
the present Soviet bloc campaign provides a convenient op-
portunity to press for a revision in Brazil's favor of the pres-
ent trade agreements with certain East European countries.
In his news conference of 7 February,
newly inaugurated President Kubitschek stated that Brazil
"will probably enter into trade relations with the Soviet
Union," but added that diplomatic ties will depend upon Con-
gress and would constitute "a step which I will not be the one
to initiate." (Concurred in by ORR)
9 Feb 56
Current Intelligence Bulletin Page 3
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
2. ARGENTINE PURCHASE OF CZECH PLANES REPORTED
Argentina has ordered from Czechoslo-
vakia 60 small twin-engine aircraft,
described as intended for transport but
suitable for "rapid conversion to war
purposes,"
The Czechs also offered jet aircraft
which they are willing to demonstrate in Argentina,
Comment
9 Feb 56
The 60 planes referred to might be Czech
Aero 45's which Czechoslovakia has been
trying to sell in various Western countries.
Current Intelligence Bulletin Page 4
SECRET
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
ILtUI
3. VIET MINH CONCLUDES BARTER AGREEMENT WITH
JAPANESE FIRM
A Japanese news agency reported on
2 February that Meiwa Sangyo, a
Mitsubishi subsidiary, had recently
concluded a barter agreement with the Viet Minh to im-
port 250,000 tons of anthracite This is the most impor-
tant trade agreement yet concluded by the Viet Minh with
a non-Communist country and establishes Japan as its
major non-Communist trading partner.
The agreement reportedly provides for
Japanese exports to the Viet Minh of such commodities as
dust coal, coal pitch, briquettes and gas coke. The Viet
Minh does not have the facilities for manufacturing these
items.
Mitsubishi is influential in the forma-
tion of Japanese economic policy, and formal approval of
the transaction by Tokyo seems likely. A number of other
Japanese firms are negotiating with the Viet Minh.
Through this agreement, the Viet Minh
will acquire badly needed commodities of high volume and
low value which are uneconomical for the Sino-Soviet bloc
to ship to North Vietnam. At the same time, the Viet Minh
has taken a major step to re-establish the export market
for its coal. (Prepared by ORR)
9 Feb 56
Current Intelligence Bulletin Page 5
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
4. PEIPING OFFERS ECONOMIC ASSISTANCE TO NEPAL
Peiping's recent offer of economic
assistance to Nepal within eight days
of Prime Minister Prasad's announce-
iflJthat the Nepalese government would welcome aid
from all friendly countries shoWs that Communist China
is prepared to move energetically into an area previously
considered almost exclusively under India's influence. In
the event of a rejection, China may hope that Indian-Nepalese
relations would be irritated, since it might appear to the peo-
ple of Nepal that India had blocked Nepalese hopes.
India, which will probably control the
nature of Nepal's reply to China, tacitly approved the estab-
lishment of Sino-Nepalese relations last August and would
find it difficult to urge Nepal to refuse all Chinese assistance.
New Delhi, however, is aware of the security problems which
would arise through such aid.
For prestige purposes, India also strongly
desires to appear responsible for the majority of economic de-
velopment work in Nepal. India, therefore, will probably ad-
vise Nepal to accept some Chinese assistance but to restrict
its nature and size as well as the location of specific projects.
Last November, New Delhi officials
stressed to the American embassy that both India and the
United States should plan their aid programs so as to keep
China's influence in Nepal at a minimum and strengthen Nepal
to resist pressure from the north. (Con-
curred in by ORR)
9 Feb 56
Current Intelligence Bulletin Page 6
eeefffffEN-T-f-A-L--
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
:Inurcr,
COMMENT ON GRANT OF SELF-GOVERNMENT
TO MALAYA
The successful outcome of the London
talks on self-government for Malaya
has undercut to a considerable extent
the demands of Communist and Corn-
s. Chief Minister Rahman had prom-
ised last July that his administration would attain self-
government in two years, but he has now virtually achieved
it in seven months,
The 8 February agreement grants a high
degree of self-government which will be expanded during
the next 18 months and is planned to culminate in independ-
ence by approximately August 1957. The agreement satis-
fies an important Rahman objective by providing for a large
measure of Malayan control over the security forces.
Rahman plans to use his London victory
as the basis of an appeal for popular support in the fight
against the Communists. He hopes to succeed, where the
British failed, in enlisting the sympathies of Malaya's large
Chinese population against the Malayan Communist Party,
whose membership is 95 percent Chinese.
Rahman is likely to be able to counter
the appeal of a budding pro-Communist Malay organization,
but there is little possibility that he will achieve any notable
success with the Chinese population. The combination of
Communist coercion and the politico-emotional appeal of
Communist China will probably continue to work effectively
against him.
9 Feb 56
Current Intelligence Bulletin Page 7
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
V A A IV 1.-i .1 1 1 1-71 L.
� . _
6. PRIME MINISTER OUTLINES INDEPENDENT FOREIGN
POLICY FOR JORDAN
Prime Minister Samir, Rifai has told
Ambassador Mallory that since Jordan
has become a member of the United
Nations, it now has a new basis for a
policy of independence. Rifai said that
e e personally was convinced of the necessity of Anglo-
Jordanian friendship and saw many desirable features in
the Baghdad pact, he felt the best course for Jordan is to
remain neutral.
Comment Rifai's reference to Jordan's newly ac-
quired UN membership suggests that he
and other Jordanians regard this step as a symbol of their
emergence from British tutelage and their entrance into
the company of the Asian-African "neutralist" bloc. Such
a change in the psychology of Jordan's leaders would rein-
force their reluctance to offend domestic opinion by taking
pro-Western positions on important issues.
9 Feb 56
Current Intelligence Bulletin Page 8
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
7. USSR OFFERS PARTY TIES TO DANISH AND DUTCH
SOCIALISTS
Comment The Norwegian, Austrian, and Finnish
Socialists have all refused invitations
to visit the USSR, while the French Socialists have accepted.
The long-term objective of these overtures to Scandinavian
Socialists is indicated by the prediction of the Swedish Com-
munist Party leader in late December that Denmark and
Norway would eventually leave NATO to join a neutral Nor-
dic bloc guaranteed by the great powers.
The chairman of the Dutch Socialist
Party has publicly denied British press stories that his
party had received an invitation through the Netherlands
Peace Council for an official visit to Moscow.
9 Feb 56
Current Intelligence BUlletin Page 9
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
� a - �
8. DOMESTIC POLITICS PROMPTS AUSTRIAN EXPULSION
OF WFTU
American officials in Vienna regard the
expulsion of the Communist World Fed-
eration of Trade Unions from Austria
as a thrust by the Socialist Party in its
struggle with the People's Party, its coali-
4k,r n partner, ocialist minister of interior Oscar Helmer
fold American officials he took the action without consulting
Chancellor Raab of the People's Party. According to Helmer,
Raab is furious over the move, but is unable to criticize it
publicly.
Comment The two parties have been quarreling
over the date of the next parliamentary
elections. The People's Party wants elections deferred,
probably until fall, to give �Raab an opportunity to make an
appeal in Moscow for concessions with regard to the eco-
nomic obligations imposed upon Austria by the state treaty.
The Socialists, who are agitating for spring elections, are
fearful of the prestige which would accrue to the People's
Party if such a trip were successful. Helmer's action in
ousting the WFTU appears to have been taken to obstruct
Raab's plans.
The fact that the WFTU has directed that
its correspondence be sent to Rome suggests that the Com-
munists will seek to locate there or elsewhere in Western
Europe rather t1 7,n in Prague, as some reports have indicated.
9 Feb 56 Current Intelligence Bulletin
Page 10
� SE:GRP:dr
.Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
9. BONN BONN OFFICIAL FORESEES NEED FOR GERMAN
CONTROL OF BALLOON OPERATIONS
A West German Foreign Ministry
official told the American embassy
in Bonn on 7 February that probably
some form of control by the West
ern:tan fcter�or state governments would be needed
over the launching of balloons from West Germany. He
felt, however, that Bonn would be in no hurry to answer
Moscow's "routiiie" protest of 5 February.
Comment The Soviet note stated that the USSR
holds the Bonn government responsible
for the use of West German territory for balloon launch-
ings "by US military agencies."
Although top Soviet leaders raised the
issue of propaganda balloons with Chan-
cellor Adenauer lin Moscow last September, he does not
seem to have promised more than "to take up the matter
with the United States."
Recently, Austrian interior minister
Helmer, in emphasizing his country's neutrality, publicly
objected to the passage over Austria of "propaganda bal-
loons destined fcir other countries."
9 Feb 56
Current Intelligence Bulletin . Page 11
-SECRET
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
10. PANAMANIAN OPPOSITION REPORTEDLY PLANS
VIOLENCE AFTER 10 FEBRUARY
Opponents of Panamanian president
Ricardo Arias have a supply of arms
in Panama and plan to incite disorders
during the carnival preriodbetween 11
and 14 February_
The National Guard
is on alert status.
The American embassy notes that an up-
rising wOlild probably fail unless a part of the National Guard
defected. There is no evidence that such a defection is immi-
nent.
Comment The political situation in Panama is ex-
pected to become increasingly tense with
the approach of the presidential election scheduled for 13 May.
There is reported to be considerable strife within the govern-
ment coalition and friction within the National Guard, Panama's
only armed fOrce.
he family of ousted president
Guizado-has allied itself with opposition leader Arnulfo Arias
in the smuggling of arms into Panama. Arias, who was over-
thrown as president in 1951 and is still denied civil rights,
cannot be a candidate in the May election. However, he is be-
lieved to retain considerable popular appeal and is a potential
source of revolutionary action.
Among the individuals now maneuvering
for power or spoils are believed to be some influential politi-
cians who were involved in the assassination of President
Remon a year ago. Many Panamanians are convinced that
the ousted Guizado, now imprisoned as an accessory to the
crime, was the victim of a gross miscarriage of justice for
political purposes.
9 Feb 56
Current Intelligence Bulletin Page 12
SECRET
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
-I /I 4.31.:A.AVE. 1
THE ARAB-ISRAEL! SITUATION
(Information as of 1700, 8 February)
An Israeli army spokesman reports that
on 3, 4, and 5 February the Egyptians opened fire on Israeli
patrols at Gaza, and that twice on 6 February the Israelis
drove Eg ntian solcliprs anci "infiltrators" haek aeross the
border.
UN secretary general Hammarskjold has
notified the Western tripartite powers of his belief that the
three-power talks now in process in Washington "with attend-
ant publicity" might inflame the Palestine situation. He believes
there is no need for any quick action and holds that it is vital to
take the necessary time for careful consideration of the issues.
He said the strengthening of the observer teams can be done
through the UN and does not call for three-power negotiations.
Hammarskj old said that it would be unfortunate if a false im-
pression were developed in the area that United Nations truce
supervisor General Burns acts for the three guarantor powers
rather than the UN.
9 Feb 56
Current Intelligence Bulletin Page 13
TOP SECRET
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
� A A�, 1� � Is., I 1.1.� �
� BIWEEKLY SUMMARY
26 Jan-8 Feb 1956
THE TAIWAN STRAIT
Report of the IAC Current Intelligence Group
for the Taiwan Strait Problem
1. Chinese Communi� st and Nationalist forces con-
tinued their artillery duels in the Quemoy area, but with
less frequency and intensity. No particular significance is
attached to these artillery duels nor to the Communist firing
against the Matsu Islands. There has been no significant air
activity. Chinese Communist jet fighter sweeps to the imme-
diate Matsu area have continued and are now regarded as rou-
tine.
2. The Chinese Nationalists have intensified their
'naval operations in the Matsu area. A naval patrol including
two frigates has been posted nightly near the Min River es-
tuary. Night action against small Chinese Communist naval
units was reported on 3 and 5 February. The navy has also
shelled Chinese Communist positions on the Peiling 'Peninsula,
and continues to capture Chinese Communist fishermen for in-
terrogation.
Peiping radio, on several occasions during the period,
has complained about such action, claiming the Nationalists "have
resumed destructive disturbing and provocative" activities in
the coastal area.
3. President Chiang Kai-shek is believed to have con-
curred with Nationalist planners in a decision to evacuate the
Wuchiu Islands, which lie midway between Matsu and Quemoy
and are garrisoned by 480 guerrillas. The Wuchius are of little
military value to the Nationalists, but a withdrawal can be exploited
by Communist propaganda.
� 4. Unconfirmed reports continue to suggest the arrival
of additional Chinese Communist troops in areas opposite the
9 Feb 56 Current Intelligence Bulletin �Page 14
TOP SECRET
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
1 1.1r ...11.7.L.11.Li I
Quemoys. Army Intelligence, however, is unable to
accept any increase in Communist ground force strength
in this area. Due to the limited amount of reliable infor-
mation now being received on the Chinese Communist
ground forces, it is possible that additional units have
moved into the Taiwan Strait area unknown to Army Intel-
ligence. To date, the location of three of the four Chinese
Communist armies that withdrew from Korea during 1955
has not been determined. Furthermore, it has not been possi-
ble to confirm about one third of the 37 Chinese Communist
armies i currently accepted locations for over six
months.
5. During the past two weeks, Chou En-lai and other
prominent Chinese have made the strongest appeal yet noted
for "peaceful liberation" of Taiwan, but have threatened
"liberation by war if necessary." Peiping's propaganda has
stressed appeals to the Chinese Nationalists to make "peace-
ful liberation" possible through defection. Chou promised
amnesty and jobs to all defectors "no matter who they may be
or how serious their past crimes were."
6. Comments in Peiping broadcasts on the Sino-Ameri-
can ambassadorial talks in Geneva stressed the need for a
foreign ministers' meeting, while attacking US proposals for
a renunciation of force in the Taiwan area as aimed at denying
Peiping's sovereign "freedom to take action for the liberation
of Taiwan."
9 Feb 56
Current Intelligence Bulletin Page 15
TOP SECRET
Approved for Release: 2019/10/21 C03179140
Approved for Release: 2019/10/21 C03179140
TAIWAN STRAIT STRAIT SITUATION
FEE3RUAR1_956 _
CHINESE COMMUNIST AIRFIELD LEGEND:
DESIGNATIONS
--,- .
PRIMARY AIRFIELD ' SECONDARY AIRFIELD
L:K. I: :,,,, Ok EMERGENCY VASES '
CONSIDERED . MOST IMPOR! A NI ,E.5 : OR E559N OF I ESSR IMPORTANCE.
AREA WITH PREPAREL 1,../4�A'A., , N,.)W...,��.'!, C,ENERALLY I.I.SS TKAI-I
GENERALLY 2000 FEET OP LONC,EP. j 2004:1 FIT:
111 OPERATIONAL
A
7
ACTIVE BASE FOR MILITARY 8, CIVILIAN AIR�
CRAFT. SOME BASES USED BY PISTON TYPES
MAY BE USABLE BY JETS
INACTIVE BASES CAPABLE OF USE BY AIRCRAFT
CURRENT STATUS UNDETERMINED
OOPS
CH I UC
SERVICEABLE
UNKNOWN
NANKIN
CHUHSIEN_
SHANGJAcy
,Yingtan .
;SABI!. 11
I'
AVG .5 I 11L2.
MI6!, 1; ! '10 7
f
1.2
ETC
* CONf...iDERLD CAFASLE
OF OPER-
KIA.NGS
+ � \
A0CHIENOU*
Nahping
A�k-
P'Yungan
�-�:) -- --
-
CHAN6 TING
j LIEN6,HENG\
"--1 k
_55
--/\
v AVOY.
1 89,060
f
N JG TU NGCHENGRAI-
NI
SW59. A
ong Kong
(GB.)
NAUT ICAL MILES
510 1110
50 100 1
STATUTE MILES
150
113
RAILROAD
PROPOSED RAILROAD
IMAMIEAMANLAMAYASSAASAM NANYMMMAISSNMEACAMMANNAMAVAIMANS- MOVIESSAMAAVALUMME,ESNC.C.ANNI. INAPISMIZIALMAN
60103-2 E
is AT r RESENT.
Ningte
MATSUS
NANTAI 18,000
LUNGTIEN
/
WUCHIU
46 -
HUIAN
CHINGYANG
MACHIANG*
QUEMOY
77,000
SHANGHAI
TAOYUAN
AICHUNG
*NATIONALIST AIRFIELD
A CI
PRIMARY roADs
� SECONDARY ROADS
�SE�RELT�
Approved for Release: 2019/10/21 C03179140