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HOT ROY
OPERATIONS COORDINATING BOARD
Washington 25, D. C.
20 June 1956
INTELLIGENGE
1.
Brazil ~ Request for PL 480 Aid
President Xubitschek of Brazil has requested that the US consider
immediately his request for 1,800,000 tons of PL 460 wheat over a period
of three yaars. The Brazilian President said his government faces
strong opposition to the US requirement that any now negotiations include
a stipulated exchange rate.
exchanges rataa.
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The previous PL 480 agreement did not set
Kubitschek fears that bis government will be severely
criticized if it can not receive terma as favorable as those given the
previous regime, (US Embassy Rio de Janeiro 1571, 18 June, Confidential)
2.
Iceland ~ Economic Situation
US Embassy Reykjavik reports that Icelamd's economic situation is
progressively worsening.
The Icelandic public is reportedly unawarse
of the urgent need for early remedial action.
\
Difficultiee requiring
’
immediate attention are the lifting of British restrictions on Icelandic
fish exporta, the curbing of inflation, and the elimination of the foreign
exchange deficit. An attractive trade offer by the USSR would further
increase Iceland's growing economic dependence on the bloc. GIA ccanments that Iceland's cost-of-living index rose by 10 percent in 1955
and will probably increass during 1956 by an equal amount.
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Iceland's
first quarter net foreign axchangs deficit rose fran 3300,000 in 1955
to
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$9,700,000
in
1956,
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USSR - Khrushchew and Tito Speeches
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The 19 June celebration in Moscow's Dynamo Stadium, according to
US Ambassador Bohlen, went very much as expected.
Khrushchev laid heavy
emphasis on the growing strength of socialism, the united front concept,
and tha struggle against colonialism in Afro-Asian countries. Tito
emphasized that Yugoslav friendship with the USSR would not impair its
friendship with Western countries, called for recognition of two
Germanies, and praised the recent Soviet disarmament move, Hohlen noted
that the applause, which was controlled by signals, was heavily weighted
in Tito's favor.
h.,
(US Embassy Moscow 2872, 19 June, Confidential)
Indonesia = USSR Loan Offer
The USSR hes offered Indonesia a five-year loan for the purchase of
indgvatrial equipment, This offer is in conjunction with previous Soviet
offers of technical assistance and the expansion of trade relations. Ths
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Indonesian Government reportedly is awaiting President Sukarno's return
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before deciding whether to accept the offer. However, authoritative
sources believe the offer will be accepted and that trade (including
rubber) with the USSR will be developed.
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(FBIS, 19-20 June
DECLASSIFIED WITH DELETIONS
CONFIDENTIAL
£.0, 12356, SEC. 3.4{b}
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