CURRENT INTELLIGENCE BULLETIN - 1954/10/05

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02008414
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: October 5, 1954

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SUMMARY
GENERAL
1. Peiping reported to have proposed diplomatic relations with
Nepal (page 3).
2. Afghanistan grants agrement for West German minister to
Kabul (page 3).
FAR EAST
3. Threat of Communist attacks in Quemoy area reported (page 4).
SOUTHEAST ASIA
4. Requisitioning of American consular residence in Hanoi antici-
pated (page 5).
* * * *
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GENERAL
1. Peiping reported to have proposed diplomatic relations with
Nepal:
epal has received a communication
ram Peiping via the Chinese Commu-
ist and Nepalese ambassadors in New
elhi proposing establishment of "nor-
mal diplomatic relations" between the two governments, accord-
ing to press reports from Katmandu published in New Delhi on
2 October. The reports state that the Nepalese government's
reply to Peiping indicates willingiess to sign a treaty of friend-
ship.
Comment: India has been anxious to
prevent Chinese diplomats from operating in Nepal, but recent
reports suggest that its opposition to the establishment of diplo-
matic relations between China and Nepal is weakening. If ear-
lier reports are reliable, the Chinese and Nepalese ambassadors
in New Delhi will be accredited to Katmandu and Peiping respec-
tively. Establishment of relations would not necessarily mean
the immediate opening of a Chinese chancery in Katmandu.
Peiping probably considers Nepal the
best target among the Indian border states for greater Commu-
nist pressure.
2. Afghanistan grants agrement for West German minister to Kabul:
Comment: Afghan relations with
Germany were broken off in 1945, following the German defeat
in World War IL
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The re-establishment of diplomatic
relations at this time is presumably designed to support German
efforts made in the Near East and South Asia over the past 18
months to increase the opportunities for capital investment and
for the marketing of German goods in the area. German techni-
cians are already employed on some industrial and hydroelectric
development projects in ,Afghanistan.
As many of the technically trained
Afghans received their training in Germany and as the country's
largest semiprivate business concern has close ties with German
firms, there are good prospects for a significant increase of
German economic activities and influence in Afghanistan.
FAR EAST
3. Threat of Communist attacks in Quemoy area reported:
The Chinese Nationalist commander
on the Quemoys reports an increase in
the number of Chinese Communist ar-
tillery positions on the mainland south
oy , an says troops are concentrating in the same
area,. Be also reports that the Communists have been using 20
motorized junks to carry out landing exercises on Wuhsu Island,
six miles south of Amoy.
These developments lead American
observers to believe there is a "distinct possibility" of a Commu-
nist invasion of smaller Nationalist-held islands in the area--
Little Quemoy and Tatan and Erhtan, two very small islands to
the southwest.
Comment: Capture of the lightly
defended Tatan and Erhtan Islands would be of little strategic
value to the Communists, but would enable Peiping to gain face
in the current Quemoy operations� As it would be difficult for
the Communists to hold Little Quemoy in the face of Nationalist
air attacks and artillery fire from Big Quemoy, any attack on
Little Quemoy might be followed quickly by an assault on Big
Quemoy.
5 Oct 54
CURRENT INTELLIGENCE BULLETIN
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Chiang Ching-kuo, son of the Nation-
alist generalissimo, believes the current threat to the Quemoys
Is a Communist feint, and that the real Communist intent is to
attack and seize the Tachen Islands. Peiping, however, has the
capability of mounting major attacks on any or all of the larger
Nationalist islands, and could strike simultaneously against more
than one.
SOUTHEAST ASIA
4. Requisitioning of American consular residence in Hanoi anticipated:
The Viet Minh authorities will eventually
oust the American consul in Hanoi from
the consular residence, a French official
in Hanoi believes. The Viet Minh has al-
Yeady refused French officials permission to retain a residence
they own in the vicinity of the American consular residence on the
ground that all French officials should be housed in an area where
they will be "easy to protect."
Comment: Viet Minh treatment of
American officials may reflect the position that United States'
representation in Hanoi is unnecessary because of the absence
of tangible American interests.
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