CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002600400001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: November 14, 2002
• Sequence Number: 1
• Publication Date: July 15, 1956
• Content Type: REPORT

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15 July 1956
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Copy Noe 105
CURRENT
INTELLIGENCE
BULLETIN
DOCUMENT NO. , U
NO CHANGE IN CLASS. 25X1
f; DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
RUTH: H 70-
REVIEWER: J /
OFFICE OF CURRENT INTELLIGENCE 000
CENTRAL INTELLIGENCE AGENCY
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TOP SECRET
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DIA and DOS review(s) completed.
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CONTENTS
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1a REVOLT REPORTEDLY PLANNED IN PERU FOR
16 JULY
24 FRANCE MAY SEEK TO SCHEDULE TRADE CONTROL
TALKS FOR AUGUST
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3. AMERICAN LEGATION COMMENTS ON HUNGARIAN
FACTIONALISM
5. JAPANESE PROPOSE MISSION TO INVESTIGATE NAWA
LAND PROBLEM F7 f
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6. STUDENT DISORDERS IN HONDURAS
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15 July 56 Current Intelligence Bulletin Page 2
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1. REVOLT REPORTEDLY PLANNED IN PERU FOR
16 JULY
military
and civilian elements there are plan-
ning to stage a revolt on 16 July to nullify the results of
last month's presidential and congressional elections, ac-
cording to the American armed forces attaches in Lima.
The attaches note that the military commander in Arequipa
-is known to be close to Minister of War Inda.cochea who was
scheduled to arrive in Arequipa on 15 July, purportedly to
dedicate a new army barracks.
The attaches believe that any attempted
revolt is not likely to receive widespread support.
Comment Success of a revolt at this time prob-
ably depends on the attitude of Peru's
all-military cabinet. These officers have reportedly been
in control of the government for the past three to four weeks
while hospitalized President Odria has become a mere figure-
head.
Many senior military officers, includ-
ing at least some cabinet members, are currently concerned
.over the apparent good relations between conservative presi-
dent-elect Manuel Prado and the outlawed leftist but non-
Communist APRA party which gained significant strength in
the recent congressional election. Consequently, the cabi-
net may be fomenting a revolt as an excuse for continuing in
power.. Recent reports have suggested, however, that the
present cabinet intends to permit the installation of the new
government, as scheduled,on 28 July and that the military will
act only in the event of subsequent unfavorable developments.
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15 July 56 Current Intelligence Bulletin Page 3
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2. FRANCE MAY SEEK TO SCHEDULE TRADE CONTROL
TALKS FOR AUGUST
The French COCOM delegate told Ameri-
can officials in .Paris that Foreign Minis-
ter Pineau is pressing him strongly to
arrange talks among the US, UK and France
on the reduction of COCOM controls as well as the elimination
of CHINCOM differentials. The delegate suggested late August
as the earliest possible time for a meeting.
He indicated that the recent visit to Wash-
ington had encouraged Pineau to push for such talks. At
Pineau's insistence, the delegate has drawn up a list of pos-
sible deletions in COCOM controls..
Comment France has been seeking revision of CHIN-
COM controls for about a year, but is op-
posed .by the US and, in principle, the UK. The UK, by using
the exceptions procedure, has greatly expanded its trade with
Communist China.
A press announcement that the US has ap-
proved shipment of 7,800 tons .of sheet metal for autos to the
USSR--the first such shipment to a Sino=Soviet country since
1947--may further encourage France and other countries to
press for less restrictive East-West trade controls.
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3. AMERICAN LEGATION COMMENTS ON
HUNGARIAN FACTIONALISM
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The American legation in Budapest
believes that dissension within the
Hungarian Communist Party is not
settled, despite a strong counterat-
tacK e pro-Rakosi group which sponsored a 30 June
central committee resolution condemning an antiparty
movement. On the contrary, strife within the party has
reached a new peak.
The legation speculates that Rakosi
may have returned from Moscow with sufficient support
to maintain his position temporarily. The USSR, however,
must consider his limited following within the party a lia-
bility, and his removal as first secretary is a ."distinct
possibility before too long."
Comment Developments of the past five months
have undoubtedly shaken Rakosi's posi-
tion in Hungary, but he apparently continues to be viewed
by Moscow as "indispensiblee'
Following Soviet presidium member Suslov's
"fact finding mission" to Hungary in mid-June, Rakosi re-
portedly went to Moscow, presumably to obtain new instruc-
tions. Rakosi subsequently initiated his first major effort to
check the "moderate" faction and whip the party rank and file
into line. This was the central committee resolution on 30
June which sharply condemned a "malignant antiparty move-
ment which has launched an attack gradually increasing in
strength against the policy and leadership of.our party!' Mos-
cow's approval of this action was indicated by Pravda's re-
print of the resolution on 8 July.
Current Soviet policy for Hungary appears
to be to encourage adoption of the reforms called for by the
20th CPSU Congress through a series of carefully planned re-
laxations under the firm control of party strong-man Rakosi.
15 July 56 Current Intelligence Bulletin Page 5
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5. JAPANESE PROPOSE MISSION TO INVESTIGATE
OKINAWA LAND PROBLEM
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The Japanese Liberal-Democratic
and Socialist Parties agreed on 13 July
to send a mission.composed of five
lower house members to Okinawa "to
0o into- e question of the United States purchase of land
for military.bases, according to Ambassador Allison. In
response to Allison's request that the Japanese government
head off the proposed mission, Chief Cabinet Secretary
Nemoto maintained the government should not intervene in
what was regarded as Diet action.
Liberal-Democratic party secretary
Kishi has indicated that he fears an American rejection of
the proposed mission might inflame Japanese popular opin-
ion, which is beginning to take a more reasonable attitude
toward the Okinawan controversy. Kishi also stressed that
the Diet steering committee action., in limiting the mission
to five members, was in itself a compromise and he is seek-
ing an arrangement which might permit the Japanese group to
go to Okinawa.
Comment The Japanese government and the Liberal-
Democratic Party have been under heavy
domestic criticism over what has been characterized as a
"weak-kneed" attitude toward the United States in the Okinawa
land issue.
Socialist gains in the recent upper house
election have been credited to exploitation of this controversy.
The cons ervatives'desireto send a. mission to Okinawa probably
is aimed at convincing the public that the government is making
a positive effort to assert Japan's interests.
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6. STUDENT DISORDERS IN HONDURAS
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Press reports indicate that student riots
in Tegucigalpa, which began on 10 July, are
still in progress after three major clashes
with police. The disorders followed the
exile on 9 July of three prominent Liberals,
including party chief. Villeda Morales, and
the arrest of several students after the uni-
versity students voted to begin a three-day
strike on 9 July. The students are also demanding the ouster of
the university rector.
On 10 July,
the Communists were attempting to take control of the
student disorders, and had drafted a handbill asking the work-
ers to unite with the students.
The government, which thus far appears to
control the situation, has charged that the opposition and Com-
munists are behind the student moves in an effort to overthrow
the regime of Chief of State Lozano.
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