CURRENT INTELLIGENCE BULLETIN - 1954/07/27

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02026950
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: July 27, 1954

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27 July 1954
Copy No. 80
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO ....1741-
NO CHANGE IN CLASS.
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AUTH: HR 70-2
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
1. Japanese official suggests economic co-operation with SEATO
(page 3).
2. Comment on aggressive Chinese Communist air activity near
Hainan (page 3).
SOUTHEAST ASIA
3. Viet Minh to maintain 'solidarity" with groups in Laos and
Cambodia (page 4).
4. Comment on Peiping's e:ntertainment of former That premier
Pridi (page 6).
NEAR EAST - AFRICA
5. Iranian negotiators consider all points at issue with consortium
resolved (page 6).
6. New Iraqi cabinet likely to be formed shortly (page 7).
WESTERN EUROPE
7. Rome voices conditional support of Balkan pact (page 8).
8. Ambassador Matthews foresees worsening Dutch-American
relations (page 9).
LATIN AMERICA
9. Castillo Armas reports friction developing in Guatemalan
junta (page 9).
27 July 54 CURRENT INTELLIGENCE BULLETIN Page 2
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FAR EAST
1.
Japanese official suggests economic co-operation with SEATO:
Vice Foreign Minister Okp.mura suggested
to Ambassador Allison on 23 July that Japan
could aid a Southeast Asian collective secu-
rity organization by helping to raise living
standards in the area. Okumura hopes Tokyo will be informed of
plans and progress in developing a treaty organization, even though
constitutional restrictions prevent Japan from assuming an active
military role in such a grouping.
Ambassador Allison believes Okumura's
offer should be used to associate .Japan with plans for combating Com-
munism in Asia and to offset the prestige the Communists gained in
Japan as a result of the Indochina settlement.
Comment: The Communist success at
Geneva has encouraged many Japanese conservatives to favor a policy
of accommodation with Communist China.
2. Comment on aggressive Chinese Communist air activity near Hainan:
It now seems quite possible that the apparent
movement of piston-engine bomber and
fighter planes to the new air base at Suichi
on or about 20 July, and the 23 July attack
on a British airliner near Hainan, were
both related to attempts to provide pro-
tective air cover for Communist merchant
shipping in the area.
27 July 54
CURRENT INTELLIGENCE BULLETIN
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On 23 July, at the approximate time of the
attack on the British airliner, the Soviet tanker Batumi was estimated
to be close to Hainan and may even have alerted the attacking aircraft
to the airliner's presence. The Batumi was en route to Whampoa, a
port now frequently used by Soviet bloc vessels denied regular access
to Shanghai by the Chinese Nationalist coastal blockade.
With the basing of aircr ft at Suichi, Peiping
would be able to provide some degree of air defense throughout all
coastal regions, from the west coast of Korea to the Indochina border
(see map, p. 5).
SOUTHEAST ASIA
3. Viet Minh to maintain "solidarity" with Froups in Laos and Cambodia:
the Viet Minh announcement
ai Geneva ordering the withdrawal of volunteers operating alongside
the liberation forces in those states was made in order to get a simul-
taneous cease-fire throughout Indothtna. It was pointed out, however,
that the "three brother nations have rights which are closely linked"
and "the three nations must maintain close solidarity and carry on
the struggle against the French warmongers and American interven-
tionists."
This struggle,
was to be "carried out in the_same way, irrespective of what changes
might occur." "At no time can we relax in our
assistance to Cambodia and Laos. On the contrary, it is necessary
to increase our assistance."
Comment:
let Minh had no intention of maintaining a hands-
off policy toward Laos and Cambodia, regardless of the outcome at.
27 July 54
CURRENT INTELLIGENCE BULLETIN Page 4
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