‘ . : | og ‘eT R ah . a Se, He - 2 i B ache sr ot ODETTE the ai - a 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. ' 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. ‘ Iceland's first quarter net foreign axchangs deficit rose fran 3300,000 in 1955 to 3e $9,700,000 in 1956, wee wee ee RT Tee ee en ceeeeeenr mee penoaesvnaeceaee ae enre i ' aeeeee USSR - Khrushchew and Tito Speeches \ 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 q Indonesian Government reportedly is awaiting President Sukarno's return | i | 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. Use Only} - a | (FBIS, 19-20 June DECLASSIFIED WITH DELETIONS CONFIDENTIAL £.0, 12356, SEC. 3.4{b} Agency Case NLE Case : t Ry = NLE Date BEST COPYAVAILABLE nerositoRykehottbmfooa) conection USC -OC8 G7 C LE, BOX Ne. / Cf rower OC 350), xe Fete FZ) LS‘} Feat. ~ Oct . 145% in on vssnsitiinienapantanmmndasaiiiatetinats } i /