CURRENT INTELLIGENCE BULLETIN - 1954/07/29

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02026951
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: July 29, 1954

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29 July 1954 E
e
Copy No.
80
3.5(c)
3.3(h)(2)
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. -.5-6
NO CHANGE IN CLASS.
) DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: C)/10
AUTH: HR 70-2
DATE: ///Q REVIEWER
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOISE4RET V
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SUMMARY
GENERAL
1. Soviet-Burmese trade negotiations suspended (page 3).
SOUTHEAST ASIA
2, Vietnamese reported to believe United States abandoning them
(page 3).
NEAR EAST - AFRICA
3. Egyptian forces alerted for Israeli attack as tension increases
(page 4).
WESTERN EUROPE
4.
5.
French likely to propose formula tor aeiayea Imptementation
of EDC (page 5).
6. France preparing new basic program for Tunisia (page 6).
29 July 54
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GENERAL
1. Soviet-Burmese trade negotiations suspended:
in 4ade with the Soviet Union.
Soviet-Burmese trade agreement negotia-
tions have been suspended because of
Burma's refusal to accept a clause in
the draft treaty permitting private firms,
as well as government agencies, to engage
an alternative Soviet proposal that
such an arrangement be provided for in the exchange of notes,
rather than in the treaty, was also rejected.
Comment: Trade negotiations with Moscow
were initiated by the Rangoon government at a time when it was
seriously concerned over its suddenly discovered inability to market
Burma's large rice surplus. A subsequent agreement with India
substantially reduced pressure to find new rice markets.
The negotiations have been stalled since
last May because of Moscow's insistence on dealing directly with
private traders, by means of which it apparently hoped to facilitate
local Communist activity in Burma,
SOUTHEAST ASIA
2. Vietnamese reported to believe United States abandoning them:
According to Ambassador Heath in
Saigon, there is an "almost nationwide"
belief that the United States is "abandoning"
Vietnam, This feeling, he reports, is ad-
versely affecting the government's program for evacuating anti-
Communist refugees from the north.
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Comment: The French have estimated the
total number of persons that might move to the southern zone at
about 150,000. Vietnamese estimates have been considerably higher.
General Ely observed recently that a
dramatic propaganda campaign by the Diem government might
persuade a million or more persons to go south. He said that in
such an event, Diem would win the eventual elections.
NEAR EAST - AFRICA
3. Egyptian forces alerted for Israeli attack as tension increases:
Walter Eytan, director general of the
Israeli Ministry of Foreign Affairs,
announced in a broadcast on 25 July
that British withdrawal from the Suez
base would constitute a "serious threat"
to Israel. Eytan strongly objected to
the imminent grant of American arms
to EgyYt, saying it would encourage a "second round" unless
Israel received equal arms. Referring to the guarantee of
boundaries, he declared that "paper guarantees or a new tri-
partite declaration will be pointless."
Comment: The Israeli government and
unofficial circles have become increasingly outspoken concerning
� the consequences of British evacuation of the Suez base and the
grant of American arms to Egypt. Eytanis statement reflects the
anxiety of the more moderate faction of the government. The ex-
tremist press has long advocated war as a solution to the Arab
threat.
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The Egyptian army apparently fears that
Israel may resort to attacks similar to the Gaza incident of 10 July.
There are some 5,000 Egyptian troops in the frontier sector; Israeli
forces in the area are estimated at approximately 9,000.
WESTERN EUROPE
4.
5. French likely to propose formula for delayed implementation of EDC:
29 July 54
A French embassy official in Rome is quoted
by the Italian Foreign Ministry as stating
Paris desires an informal understanding
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slow
among the six EDC powers that full imple-
mentation of the EDC treaty will take place
over a longer period than presently speci-
fied. The French also allegedly want to soft-
haracter of EDC and to adopt a unanimity
rule for all voting in the EDC Council.
The Italian Foreign Ministry sees no great
difficulty for an informal understanding on the points raised by the
French, but admits that the t.inaniinity proposal "will present problems."
Premier Mendes- France told Ambassador
Dillon in Paris on 26 July that delayed implementation of the treaty
would be one of the most necessary changes.
Co.mment: Delayed implementation need
not require renegotiation�oTthe treaty, but a unanimity rule would
require changes in the text of the treaty. Acceptance by the EDC
powers at the proposed Brussels meeting on 10 August of an in-
formal understanding to delay implementation of the treaty could
provide Mendes-France the formula he considers necessary to ob-
tain ratification.
. France preparing new basic program for Tunisia:
The French government is readying a
program for Tunisia which the American
embassy in Paris believes will sub-
stantially meet the nationalists' demands
eminent responsible to an all-Tunisian
assembly, for an all-Tunisian civil service, and for an eventual
French-Tunisian association to replace the present protectorate
relationship.
A spokesman for the Ministry for Tunisia
and Morocco told Ambassador Dillon on 27 July that France will
retain control over foreign affairs, defense, and finances. He
added that the rights and status of Frenchmen in the protectorate
will have to be protected.
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The embassy believes that the cabinet
will consider Tunisian policy on 31 July and that it does not plan
. to hold assembly debate.
Comment: This program will antagonize
French settlers in Tunisia and their conservative supporters in the
French cabinet and assembly. Avoidance of an early debate might
permit the government to rally much needed support.
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