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'CURRENT
INTELLIGENCE
BULLETIN
1 November
Copy No.i
CIAPNCIE CLASS.
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CL.NSS. CIAANGED -TO: TS S C
64E0 fekitENN DME: ----
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3.5(c) /
1956 .1
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OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
II
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orik
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CONTENTS
1. HOSTILITIES IN EGYPT
2. THE SITUATION IN HUNGARY
(page 6).
(page 3).
3. SOVIET STATEMENT CONDEMNS WESTERN AGGRESSION
AGAINST EGYPT (page 9).
40 INDIAN REACTION TO SUEZ DEVELOPMENTS
(page 10).
5. LIBERALIZATION TREND TO CONTINUE IN SOVIET POLICY
TOWARD EASTERN EUROPE (page 11).
6.
PEIPING TAKING CONCILIATORY LINE IN
BURMA BORDER TALKS (page 12).
7. SOUTH KOREA STEPS UP PROPAGANDA AGAINST NORTH
KOREA (page 14).
1 Nov 56
THE ARAB-ISRAELI SITUATION
(page 15)
THE TAIWAN STRAIT
(page 17)
Current Intelligence Bulletin Page 2
,rvai-ipi�gumnrir
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�..,r1
Noe
1. HOSTILITIES IN EGYPT (information as of 2400, 31 October)
A major battle is in progress in the Sinai
Peninsula between the main Egyptian and
Israeli forces on the ..oad to Ismailia
west of Abu Aweigla.
very heavy ground fight-
ing and tactical air activity.
According to an Israeli military spokes-
man at noon on 31 October, Israeli troops
have advanced through central Sinai to
the Jebel Hayman area, while the main
Israeli force, operating from the El Auja
area, has broken through Egyptian posi-
tions at Abu Aweigla. A government
spokesman announced that Israeli forces
have encountered two Egyptian divisions
at full strength, about 209000 men. About
36,000 Egyptian forces were in the Sinai area at the time of the
Israeli attack.
Israeli forces operating in Sinai are re-
ported to consist of one armored infantry division, '"plus other
elements:' Another armored infantry division and other in-
fantry elements are believed to be deployed along the Gaza
strip. Part of this force may be available to reinforce the
division operating in Sinai.
Egyptian armor in Sinai has attacked
Israeli armored units advancing on the road to Ismailia, but
apparently was unable to prevent an Israeli advance to the
Mediterranean coast near El Arish. Egypt is reported to have
reinforced its forces in Sinai with at least one regiment of
T-34 medium tanks. On 30 October at least one armored group,
1 Nov 56 Current Intelligence Bulletin
Page 3
TOP SECRET
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',we" Noe
including medium and heavy Soviet-built tanks, armored
infantry, and artillery, moved through Cairo en route to
the Suez Canal zone.
The anticipated An lo-French land-
ings in Egypt have not occurred.
* * * * * * * *
The Watch Committee of the IAC met in
regular session at 1030 on 31 October. It published a con-
clusion and note on the Middle East as follows:
"The USSR has repeatedly declared its
serious and continuing interest in the Middle East and is sup-
porting the Arabs politically in the present conflict. No firm
evidence is available bearing on Soviet intentions to inter-
vene militarily in Middle East hostilities. The presence of
Soviet military technicians in Egypt and Syria, Soviet ma-
teriel and logistic support of certain Arab states and the
probable presence of Soviet submarines in the area are evi-
dence of prior Soviet indirect involvement in this situation.
This indirect support probably will be furnished on an in-
creasing scale.
NOTE: "Hostilities are now in progress involv-
ing Israel, Egypt, the UK and France. It is probable that
fighting will spread to other Arab states. The Watch Com-
mittee, in accordance with its Charter and with the Chair-
man's understanding of instructions from the LAC on 30 Octo-
ber will concentrate its attention in particular on indications
of Soviet intent to participate militarily, either directly or
indirectly, in the area,"
1 Nov 56
Current Intelligence Bulletin Page 4
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Noe
CYPRUS
(U.K.)
Trip�li
04-0
[E] Infantry
fig Airborne Infantry
EDI Armored Infantry
(21 Cavalry
LE Armored Cavalry
CI Armored
CI Field Artillery
M Antiaircraft Artillery
t�l National Guard
P Palestine Home Guard
FC Frontier Corps
SG Security and Guard
xxxx Army
xxx Corps
xx Division
X Brigade
ii Regiment
I I Battalion
Company or Battery
exandrd
FC
SG
10441011
400111
:OW
110
FC Cg3SG
12ISG
lgISG Suez
MOST
MOST
SG
SG
SG
CD
ort Said
ISRAELI MOVES 29-31 OCT.
SELECTED ROADS
EGYPTIAN MOVES 310CT.
POSSIBLE SYRIAN MOVEMENT
E
!
SVF.2
ANA1
201 40 60 80 100
N UTICAL MILES
sh
NAKHL
SINAI PENINSULA
NLOCATED
SUC, )
,.OSG
1,0 SG
LEBANON
BEIRUT
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rgi
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ISRAEL
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National Guard
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� Maan
SAUDI ARABIA
Tabuk � Cgl
1 Nov 56
Current Intelligence Bulletin
=Mak
Page 5
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IN 1",
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'NS
2. THE SITUATION IN HUNGARY (information as of 1700 EST
31 October)
The American legation in Budapest re-
ported on 31 October at 1300 Budapest
time that "it became virtually certain
in Budapest this morning that the Hun-
garian revolution was now a fact of
history:' The legation said that per-
sonal observations, newspaper stories,
and radio broadcasts tended to confirm
the complete withdrawal of Soviet troops
y. There is no indication, however, that these
Soviet forces have as yet returned to their garrisons
Apparently in direct response to the de-
mands of the increasingly powerful Revolutionary Military
Council of the Hungarian army, Premier Nagy told a crowd
gathered in Kossuth Square in midafternoon of the 31st that
not he but his predecessors had asked for Soviet military
aid, and that his government is demanding not only the im-
mediate withdrawal of all Soviet troops from Hungary, but
also withdrawal of Hungary from the Warsaw pact.
The Military Council was established on
30 October by army and police units, insurgent workers,
and youth groups. It includes a rebel leader, Colonel Pal
Maleter, who led the insurgents in their defense of Ulloi Ut
barracks. The council, officially recognized by the Nagy
regime, apparently is backed by major elements of the
Hungarian army and air force, and appears strong enough
to maintain order in Budapest. In addition, it has probably
gained wide popular support by threatening on the 30th to
attack Soviet units if they did not leave Budapest "within 12
hours," and withdraw from Hungary by 31 December.
Strenuous efforts are being made by one
major "free" regional government--the Transdanubian
National Council located at Gyoer--to line up support from
insurgents elsewhere in the provinces in order to unify "na-
tional interests" and withhold recognition of the Nagy regime
1 Nov 56
Current Intelligence Bulletin Page 6
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until their demands are met. There is no firm evidence to
indicate a relationship between the two seemingly most
powerful revolutionary units, the Revolutionary Military
Council--recognized by Nagy--and the Transdanubian
National Council. They both appear to include Communists
and non-Communists. Both seem willing, if Nagy will ac-
cede to their basic demands, to recognize his government,
at least until peace can be restored and free elections held.
The Transdanubian Council claims the
support of the national councils of several West Hungarian
counties and military units in the western part of the coun-
try, as well as the Hungarian army's 9th Division. It
enunciated its demands in a special session on 31 October.
These include: (1) the proclamation of Hungarian neutrality
at the UN; (2) a free and general election, at the latest by
the end of January 1957; (3) the naming of a national coun-
cil for the interim period with the right to appoint ranking
military officers; (4) changes in the national government to
ensure adequate representation of "freedom fighters" in the
government; and (5) guarantee of the freedom of speech,
press, assembly and religion. This regional council, which
is now apparently supported by the insurgents at Miskolc,
also expressed the view that the rebel demands should be
met by the government before individual parties are recon-
stituted, possibly in fear that the Nagy government would
utilize the cover of a mock coalition to hold back on the
granting of further demands.
Following Nagy's call for a multiparty
system on 30 October, the Smallholders and Peasant Parties
were reorganized. However, the Budapest radio reported
on 31 October that Bela Kovacs, strongly anti-Communist
Smallholder leader, informed a meeting of his party in Pecs
that he had not accepted his appointment to the government
as minister of agriculture; he now planned to go to Budapest
to discuss the political situation with Premier Nagy. Mean-
while, the Social Democratic Party, which continues to re-
frain from joining the Nagy coalition, announced on the same
day its reorganization and the election of Anna Kethely as
president.
To maintain his leadership, Nagy continues
to work feverishly for an accommodation with the rebels--a
1 Nov 56
Current Intelligence Bulletin Page 7
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9
difficult task without a guarantee of a Soviet troop with-
drawal. Apparently making a virtue of necessity, the re-
gime has restored all civil and ecclesiastical rights to
Cardinal Mindszenty, who had already been freed by the
rebels. All proceedings and allegations against him were
branded false. In addition, Nagy continues to shuffle gov-
ernment figures. Hungary's chief delegate to the UN, Peter
�Kos, was recalled on 30 October; Laszlo Hay, president of
the National Bank, was fired, and Prosecutor General
Gyorgy Non--allegedly guilty of criminal activity in the
past few days�was ousted. Nagy may also yield to popu-
lar demands for the removal of Ferenc Muennich, newly
appointed minister of interior.
1 Nov 56
Current Intelligence Bulletin Page 8
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3. SOVIET STATEMENT CONDEMNS WESTERN
AGGRESSION AGAINST EGYPT
The Soviet statement of 31 October
charged the Israeli attack was de=
signed to provide a pretext for
Western powers, particularly Britain
and France, to re-establish their po-
sition in the Arab states and Suez. The
statement called for immediate Security
Council action.
In a conversation with Ambassador
Bohlen at a Moscow reception on 30 October, former for-
eign minister Molotov repeated the line taken by Soviet
propaganda media that the US had been in collusion with
Britain and France in the Israeli attack. During the dis-
cussion Molotov modified this to state that Israel had the
support of Britain and France, who wished to punish Nasr
for nationalizing the Suez Canal. Khrushchev and Bulganin
also expressed their concern to foreign diplomats.
According to a press report from London
on 31 October, Communist diplomats who have accurately
reflected the thinking of Soviet leaders stated that "volun-
teers from the Soviet Union and other countries" could be
expected to pour into the Middle East to aid Egypt in any
Anglo-French attack. The diplomats expressed their hope
that the United States would "exert its influence" on Britain
and France against the use of force.
During the Suez crisis, Moscow limited
itself to promises of equipment and volunteers in the event
of Western military action. There is no indication that the
USSR will make any further commitment at this time.
1 Nov 56
Current Intelligence Bulletin Page 9
-SECRET
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4, INDIAN REACTION TO SUEZ DEVELOPMENTS
The Indian UN delegate in New York told
Ambassador Lodge that the United States
has the full support of India in the Middle
East crisis. India announced on 31 Octo-
ber that it considered the Anglo-French
"invasion of Egyptian territory" a "fla-
grant violation of the UN charter?'
Comment India appears pre-
pared to condemn
"aggression" in the Suez Canal area and to take appropriate
action in co-operation with the Colombo powers, the Bandung
powers, or in the United Nations.
India probably feels that the US is the only
power in a position to influence Britain, France and Israel at
this time, and seems to be looking to the US for leadership.
Pakistani president Mirza has assured the
American ambassador in Karachi that the United States can
count on Pakistan's support. Thailand and Indonesia have also
voiced their willingness to back American efforts for a peace-
ful settlement.
The 23-member Arab-Asian bloc, of which
India considers itself the leader, on 31 October formally con-
demned the British-French ultimatum, calling it a blow to the
UN. The group also supports the convening of a special ses-
sion of the General Assembly.
1 Nov 56
Current Intelligence Bulletin Page 10
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IMP"
5. LIBERALIZATION TREND TO CONTINUE IN SOVIET
POLICY TOWARD EASTERN EUROPE
e possibility that the Soviet leaders
re contemplating even greater liberali-
ation in their policies toward the Satel-
ites was indicated by Khrushchev on
nversation with Ambassador Bohlen,
Ithrushchev, referring to recent Polish and Hungarian devel-
opments, said that the "Soviet government would continue
without deviation along its present course as laid down at
the 20th party congress!' He added that in the future there
would be "changes which would surprise everyone."
1 Nov 56
Current Intelligence Bulletin Page 11
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1 1-4,1
Neve *se
6.
PEIPING TAKING CONCILIATORY LINE IN
BURMA BORDER TALKS
CHINA
PAK
Discussions on
the Burma border
problem are making
"good progress" and
Chou En-lai has
agreed to accept the
1941 boundary in the
Wa States,
the Chi-
nese, contrary to
expectations,
have raised no diffi-
culties regarding the ICachin State frontier, although they have
nn,11 fryt� nrkinnr Rimmese concessions in the vicinity of Hpimava.
INDIA
Rangoon
KACHIN
STATE �
Myitkyina �
�
Na mk ham
Lashio � i
� Mandalay 4.�k
1 NOVEMBER 1956
100 200
miles
pimaw
WA STATES
CHINA
60608
1 Nov 56
Current Intelligence Bulletin
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Ngoil
representatives of the Kachin mi-
nority adamantly refused to endorse concessions by Burma
in the Hpimaw area. Burma therefore was prepared if neces-
sary to make a minor concession of territory near Namkhain
instead.
Burmese officials told
the American embassy in Rangoon that they look forward to
successful termination of the negotiations during U Nuts stay
in Peiping.
Comment Peiping has apparently now decided to
make a quick border settlement gener-
ally on Burmese terms in order to prevent further damage
to Communist China's pose as a "peaceful power." Such a
settlement would be hailed by other neutralist powers, par-
ticularly India, as vindication of the "five principles of co-
existence."
If necessary, Burma would probably make
a concession in the Hpimaw area, but at the cost of possibly
serious dissatisfaction among the Kachins.
1 Nov 56
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Noe *ftri
7. SOUTH KOREA STEPS UP PROPAGANDA AGAINST
NORTH KOREA
In a series of special broadcasts to
North Korea, Seoul radio has been
calling on the people to "rise against
Communist rule in response to the up-
risings in East European countries."
Seoul radio announced on 30 October that all university,
high school and primary students are expected to join in
a movement calling for the North to rebel.
President Rhee reportedly told officials
of the Asian Peoples Anti-Communist League that he might
"do something" following the American elections if the Com-
munists do not disarm themselves and surrender now.
Comment President Rhee is probably hopeful that
the present situation will give him an op-
portunity to gain his objectives of recovering Communist-
held territory south of the 38th parallel and unifying Korea
by force. Last August, he ordered the armed forces to pre-
pare mobilization plans in case "the West" committed troops
to Suez.
While Rhee's threats are probably intended
as propaganda, any indication that the North Korean people
would support him might encourage him to provoke fighting.
Organized opposition to the regime in North Korea, however,
is lacking or insignificant�
1 Nov 56
Current Intelligence Bulletin Page 14
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THE ARAB-ISRAELI SITUATION
(Information as of 2400, 31 October)
A press report ascribed to a military source
in Tel Aviv a statement that a Soviet-built MIG-17 was among the
nine Egyptian aircraft shot down by the Israeli air force to date.
The presence of MIGL17's in Egypt has been reported on several
occasions during the past fewub-
stantiation of these reports.
Israeli tanks had infiltrated and bypassed the key
road junction of Abu Aweigla in eastern Sinai�cutting the roads
to Ismailia in the canal zone and El Arish on the Mediterranean
coast
1 Nov 56
Current Intelligence Bulletin
Page 15
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Nor '�wor'
The Greek Foreign Ministry has
granted Egypt authorization to fly aircraft from Bulgaria south-
ward over Greece on an unspecified date up to 4 November, ac-
cording to The type of
aircraft and the nature of the passengers are not known.
(For another article bearing on the situation, see
1 Nov 56
Current Intelligence Bulletin Page 16
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Noire
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*V/
BIWEEKLY SUMMARY
(18 October-31 October 1956)
THE TAIWAN STRAIT
Report of the IAC Current Intelligence Group
for the Taiwan Strait Problem
1. There were no significant combat operations in the
area during the period.
2. The Chinese Communists have announced that track-
laying on the trans Fukien railroad has been completed as far
as Changping, about 183 track kilometers from Amoy. Com-,
pletion of tracklaying by the end of 1956 or shortly thereafter
seems likely, but the railway will probably not be in full opera-
tion until early next year.
1 Nov 56
Current Intelligence Bulletin Page 17
CONFIDENiabth--
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Nei
TAIWAN STRAIT SITUATION
31 OCTOBER 1956
4=1.11I
CHINESE COMMUNIST AIRFIELD LEGEND:
DESIGNATIONS
PRIMARY AIRFIELD
CONSIDERED MOST IMPORTANT IN
AREA WITH PREPARED RUNWAY
GENERALLY 5000 FEET OR LONGER.
SECONDARY AIRFIELD
AUXILIARY OR EMERGENCY BASES
OR FIELDS OF LESSER IMPORTANCE.
RUNWAYS GENERALLY LESS THAN
5000 FEET.
ACTIVE RASE FOR MILITARY & CIVIUAN AIR�
CRAFT. SOME BASES USED BY PISTON TYPES
MAY BE USABLE BY JETS
OPERATIONAL
INACTIVE BASES CAPABLE OF USE BY AIRCRAFT
SERVICEABLE
CURRENT STATUS UNDETERMINED
UNKNOWN
USABILITY
?
MIG-15
MIG-17
TU-4
IL-28
TU-2,
IL-10
LA-9 /11
L1-2
ETC.
UNKNOWN
* FIELDS NOT CONSIDERED CAPABLE
OF SUPPORTING SUSTAINED OPER-
ATIONS AT PRESENT.
H U
ANKOW
( HuAININ%
/- �
15.
:
NANCI-IAN
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NGYANG
26
24
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NAUTICAL IAILES
5t0 100
170
100
� STATUTE MILES
1- Railroad
+ Under construction or projected
*NATIONALIST AIRFIELD
Primary roads
Secondary roads
imimmee,
--StelftErf
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