CURRENT INTELLIGENCE BULLETIN - 1952/12/09

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02018016
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: June 6, 2019
• Document Release Date: June 27, 2019
• Publication Date: December 9, 1952

� Approved for Release: 2019/05/28 CO2018016.
TOP Si RET
SECUR INFORMATION
9 December 1952
Copy No.
57
CURRENT INTELLIGENCE BULLETIN
Office
of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
"Riff/ TOP S RET
S
EC INFORMATION
DOCUMENT NO
NO CHANGE IN LASS. K,
DECLASSIFIED
3.5(c)
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: Pole C 9
ADUATTE/H: 70-2
REVIEWER
3.5(C)
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#0.4/
3.5(c)
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SUMMARY
FAR EAST
Communists buying American dollars in Hong Kong (page 4).
SOUTHEAST ASIA
French official urges reassessment of Indochina problem (page 4).
NEAR EAST - AFRICA
5. Israelis reported pessimistic over prospects for peace with Arabs
(page 5).
6. Egyptian Ambassador to London reportedly to become foreign
minister (page 5).
EASTERN EUROPE
7. Hungarian officials fear anti-Zionist purge (page 6).
WESTERN EUROPE
8. Social Democrats reportedly favor West German national army
within NATO (page 7).
LATIN AMERICA
9.
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3. Communists buying American dollars in Hong Kong:
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3.3(h)(2)
Chinese Communist agents have been buying 3.3(h)(2)
American currency at the rate of $2,000,000
weekly for the past several weeks, 3.3(h)(2)
The dollars
thus acquired are apparently used to finance
Chinese imports.
The American Consul General in Hong Kong
points out that Communists prefer to acquire their dollar exchange in
currency form, since other dollar holdings could be more readily
frozen by American authorities.
SOUTHEAST ASIA
4. French official urges reassessment of Indochina problem:
A high French Foreign Ministry official
believes that the American, British, and
French Goimrnmmts should now restudy
Indochina's military and political value
in preventing uommunist domination of Southeast Asia. He bases
the need for such a reassessment on the current "particularly acute
public and parliamentary heart-searching" in France on the Indochina
problem and on the prospect that crucial decisions will face these
governments at the next tripartite meeting in the sprig on Southeast
Asia.
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1t)P SECET
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According to the American Embassy in Paris,
this official suggested that consideration be given not only to ways of
assisting the French effort but also to the possibilities of a new defense
line either in southern Indochina or on the offshore islands. The Embassy
believes the suggestion was motivated by sincere conviction.
Comment: This is the first French approach
for a tripartite study of specific alternatives to the present French defense
effort in Southeast Asia, as distinct from previous emphasis on obtaining
more American military aid.
NEAR EAST - AFRICA
5. Israelis reported pessimistic over prospects for peace with Arabs:
3.3(h)(2)
There is "some evidence of discouragement"
among the Israelis over the prospects of an
Arab-Israeli peace in the near future, accord-
ing to Ambassador Davis in Tel Aviv. He
reports that Arab opposition to the German restitution agreement and
hositility toward the latest UN proposals for direct peace talks, and a
fear in Israel that the West may arm the Arab states prematurely are
the chief reasons for Israeli uneasiness.
Comment: Continuing Israeli peace
efforts--including recent direct approaches in Paris and Washington
to Egyptian diplomats and discussions with US officials--make it appear
doubtful that Israel is basically discouraged about achieving an ultimate
settlement.
6. Egyptian Ambassador to London reportedly to become foreign minister:
The Egyptian army inner circle has decided
to appoint Mahmoud Fawzi, present Egyptian
Ambassador to London, as foreign minister,
according to Colonel Abdul Moneim Amin,
a member of the Nagib regime.
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Comment Mahmoud Fawzi, formerly
Egyptian representative to the United Nations, is respected by the
army group and is considered to be moderate and pro-West in his
views.
Previous reports have indicated that the
military are not satisfied with Foreign Minister Farrag and that his
dismissal is imminent.
EASTERN EUROPE
7. Hungarian officials fear anti-Zionist purge
Several top-level Hungarian Foreign Ministr33.3(h)(2)
officials fear an anti-Zionist purge, accord-
ing to Three 3.3(h)(2)
top officials in the Foreign Ministry, as well
nited States, are of Jewish background. In a
one of these officials appeared "extremely
c ear at he regretted he could not emigrate to
as tne Minister to
conversation with
worried" and made
Israel.
Comment The Hungarian Communist
regime contains a high proportion of Jews, including Premier Rakosi,
Deputy Premiers Gero and Hidas, and Defense Minister Farkas. Gero
has frequently been mentioned as a likely target because of the failures
of the Hungarian Five-Year Plan with which he has been closely con-
cerned.
Detailed coverage of the Prague trial in the
Hungarian press emphasized its anti-Zionist aspects and noted that
certain of the accused had confessed to activities in Hungary.
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WESTERN EUROPE
8. Social Democrats reportedly favor West German national army within�
NATO:
3.5(c)
West, German Social Democratic leaders, 3.3(h)(2)
including the chairman of the party, now favor
the formation of an independent German
national army within the North Atlantic Treaty
Organization, and believe that such a proposal
would find eventual support in America.
An important Social Democrat, who has just
returned from the United States, told American officials in Bonn that
"Washington has already written off the European army" because the
new administration "knows that such an army would be militarily inef-
fective.
According to US officials in Bonn, the Social
Democrats therefore continue to believe that they can oppose the Eur-
opean Defense Community Treaty without endangering West German
security.
9.
LATIN AMERICA
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