1 2 PUBLIC RECORD OFFICE mi I «./ ay i Please note that this copy is supplied subject to the Public Record Office's tejms and conditions and that your use of it may be subject to copyright restrictions. Further information is given in the enclosed Terms and Conditions of supply of Public Records' leaflet

!-. U0> nut ( ictt BRITISH EMBASSY, CONFIDENTIAL FT" BBIKUT. (10217/5/57) January 31 > 1957.

This is our weekly letter on conditions in and ; as before, we are reporting on the trials separately. The information on Syria comes mostly from the Syrian press (mainly as reported in the Lebanese papers, since the ban on Syrian papers entering has been extended. AS for the Egyptian press, however, which the Foreign Office do receive (via this Embassy) we shall in future only refer to it in this series when we get local confirmation of reports in it, presumably the ample evidence in it on matters like Egyptian reorganisation of foreign trade and (under the "Five "fear plan") of domestic industry is collated in London.

2. With reference to paragraph 8 of last week's letter, the Lebanese Press widely reports that the populist party has elected its new executive. Its Chairman is still Rushdi Kekhi*, but he is expected to resign shortly and retire from active politics. Adnan Atassi, Nazim Qudsi, Rashad Jabri and Shaker el Aas, of the right wing of the party, are said to be excluded. The party has announced a new policy condemning the Bagdad pact, denouncing the alleged authors of the "Plot", and supporting the policy of "positive neutrality", 3* A Lebanese working for I. C. I. » who some time ago told us that the Syrian Government had made it practically impossible to obtain import licences for British and French goods, now says there are signs that they are making this easier. k» A leading lawyer tells an ex-member (Syrian) of our Vice-Consulate there that the economic situation there is bad, and payment of debts is b^ing delayed. He thought the Baath Socialists were not sufficiently confident of their support - particularly in the Army - to risk elections yet. He also said that though he had no knowledge of a "Russian base" at SBSAFB (the story carried recently by the British press) he had been firmly discouraged by the local authorities from visiting the place. 5* The Inspector of the British Bank of the Kiddle East has been told by the Syrian Government that he must "gyrianise" his bank within two months (i.e. put in Syrian managers) or close it in Syria, MO» was he allowed to visit Syria to make the necessary arrangements. He expects that the Bank will comply and that nationalisation will follow. The Bank is doing no business. 6, The stories of the arrival of Russian technicians, to the number of 250, seem well authenticated. 7» The Director-General of the Lebanese Ministry of Defence and another high official were agreed in saying that the real power in Syria rested with Akram Hpurani and Michel Aflak; and that in two or three months one could J. H. A, Watson, Esq., /expect FOBEIGH OFFICE. -2- expect a coup within the Army whereby Sarraj would oust Nizamuddin. 81 An I. p. C, official here, who is normally very we