CURRENT INTELLIGENCE BULLETIN - 1954/03/23

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02058865
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: March 23, 1954

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CURRENT INTELLIGENCE BULLETIN
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
I. Atomic test incident stirs up anti-Americanism in Japan (page 3).
SOUTHEAST ASIA
2. Vietnamese insisting French grant unqualified independence (page 3).
3. Pessimism increases among Vietnamese in Tonkin (page 4).
4. American embassy reports on Indonesian Communist congress
(page 5).
NEAR EAST - AFRICA
5. AIOC provisionally accepts compromise plan on compensation
(page 5).
6. Israel presses for speedy UN action against Jordan (page 6).
EASTERN EUROPE
7. Bulgaria complains to Moscow of Rumanian rail restrictions
(page 7).
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FAR EAST
1. Atomic test incident stirs up anti-Americanism in Japan:
Foreign Minister Okazaki fears that the recent
radiation incident may harm Japanese relations
with the United States, according to Ambassador
Allison. He told Allison on 21 March that his
government aces �i icu ties in the Diet because of opposition demands for
assurances that Japan's fishing areas, as well as coastal currents from the
central Pacific, will not become contaminated. He said questions are also
being raised about America's right under international law to block off large
areas of the Pacific.
Okazaki said that unless authoritative and satis-
factory answers could be given, he feared the Japanese government would
have to request that any future tests be postponed.
Comment: Voluminous press coverage of the
incident has incited considerable anti-American sentiment by suggesting
American irresponsibility and disregard for the victims. In some news-
papers the victims have been described as "guinea pigs." Press coverage
also emphasizes that this is the third occasion on which the Japanese have
been made "victims of A-bombs." The Communists are exploiting the in-
cident with even more violent anti-American propaganda and with promises
of relief for the injured.
It has not yet been determined whether or not
the Japanese fishing vessel involved in the incident was inside the desig-
nated danger area.
SOUTHEAST ASIA
2. Vietnamese insisting French grant unqualified independence:
The Vietnamese delegation in Paris will not
retreat from its position that France must
sign a treaty affirming the unconditional
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independence of Vietnam before the latter will conclude a treaty of
association within the French union, according to an official of the
Vietnamese Foreign Ministry. The Buu Loc government is firmly
convinced that this procedure is needed to eradicate its stigma as a
puppet and win the psychological battle against the Viet Minh.
Meanwhile, Commissioner Dejean's deputy
points out that resistance by Bidault and President Coty, on legalistic
grounds, to the Vietnamese position is the "worst possible psychologi-
cal preparation for the Geneva conference."
Comment: In conferences over the past
several years, the French have gradually yielded to Vietnamese de-
mands. They have usually done so, however, in a manner which
destroys the propaganda value of these concessions.
The French government's maneuverability
on this question is limited by the National Assembly resolution on 9
March, which linked France's obligations to the Associated States
with maintenance of the French Union as defined in the constitution.
3. Pessimism increases among Vietnamese in Tonkin:
Pessimism is greater in Tonkin than at
any time since 1950,
Many wealthy Vietnamese
are liquidating their assets and preparing to
move south. Viet Minh raids on Tonkin airfields and on Hanoi-Haiphong
communications have had a profound psychological impact on the local
population, who contrast the capabilities of the Viet Minh with the in-
effectual attempts at "pacification" by the French-Vietnamese forces.
the key
Hanoi-Haiphong highway is now so heavily mined by the Viet Minh
each night that it is not opened to traffic until noon the following day.
Comment: A further worsening of the
situation would facilitate Viet Minh recruiting within the delta, heighten
the possibility of an uprising in Hanoi, and would make the French mili-
tary position precarious.
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The Viet Minh capture of the French posts
along the northeast section of the Sino-Tonkin border in 1950 marked
the lowest previous point of French-Vietnamese morale in the Indochina
war.
4. American embassy reports on Indonesian Communist congress:
The American embassy in Djakarta reports
that the recently concluded fifth congress of
the Indonesian Communist Party reflected the
Influence of the Chinese Communists in the
Indonesian Party's agrarian program. In other contexts, however,
Moscow was clearly placed above Peiping. Three youthful party officials,
including Secretary General Aidit, were built up as leaders of the Lenin-
Stalin type.
The leaders of the opposition Masjumi and
Socialists--as well as Vice President Hatta--were branded as virtual
traitors. The extension of Communist influence over the peasantry was
cited as the party's chief task because of the need to develop a stronger
base in anticipation of an eventual break with the "national bourgeoisie."
Comment: The "national bourgeoisie" may
be taken to mean the National Party, whose cooperation with the Commu-
nists has enabled it to continue in control of the government. The mutual
benefits derived from this cooperation appear to preclude any break in
the near future.
NEAR EAST - AFRICA
5. AIOC provisionally accepts compromise plan on compensation:
The Anglo-Iranian Oil Company has agreed
that the British and American governments
should determine the amount of compensation
payable to it by Iran. The British government
feels strongly that Iran should make some payment to the company for
loss and damages during the periodfrom nationalization to the coming
into force of the consortium agreement.
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The AIOC AIOC has provisionally accepted the
billion-dollar offer of the other consortium partners for their share
in the consortium. The company considers this sum too low, however,
and has conditioned its acceptance on a satisfactory arrangement for
compensation from Iran�
Comment: New, difficulties in the consortium
talks are likely, since the British government is considering an Iranian
payment much lower than that envisaged by the company. One reason why
the payment proposed by the British government is lower is that the Foreign
Office is refusing to consider the loss of future AIOC profits in determining
the amount of compensation.
The Iranians have stated that they will make
_ counterclaims if the final agreement necessitates their paying compensa-
tion to the company.
6. Israel presses for speedy UN action against Jordan:
Israel is putting "intolerable pressure" on
the UN chairman of the Israeli-Jordan Mixed
Armistice Commission to call an immediate
meeting to consider the 17 March bus massacre
in the Negev desert, according to Consul General
Tyler in Jerusalem. He says that Israel has prejudged the incident by
practically telling the chairman how to vote.
On 19 March Prime Minister Sharett told
General Bennike, UN truce supervisor, that the Jordanian government
was responsible for this "warlike act." Sharett warned that if the com-
mission did not give immediate consideration to the bus incident, "he
would not like to see the press the following day." According to Tyler,
there is no concrete evidence whether the Negev killing was committed
by Jordanians, Egyptians from Gaza, or even Israeli bedouins.
Comment: Sharett has been forced by
popular as well as government pressure to demand drastic UN action
even though there is no evidence as to who is guilty. Failure to achieve
a clear-cut condemnation of Jordan may weaken Sharett's shaky position
as prime minister or force him to accede to army demands for retaliation.
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EASTERN EUROPE
7. Bulgaria complains to Moscow of Rumanian rail restrictions:
recent restrictions imposed by Rumania
on international rail traffic destined for
ous difficulties" for the Bulgarian economy.
the Bulgarian railways "insist" on the abolition
ons.
The Rumanian regulations, announced on
7 January, limited to 50 a day the number of cars for Bulgaria accepted
at the Hungarian border. According to Rumania, the severe limitation
was imposed in order to reduce a backlog of 2,100 cars already being
held for Bulgaria.
Comment: The Rumanian restrictions
probably resulted from the temporary blocking of rail routes by heavy
snowfalls. Bulgaria's direct appeal to Moscow indicates that friction
continues to exist between the two Satellites. Further friction between
Satellites was revealed threatening
Hungary and Rumania littn retaliation for nonfulfillment of meat shipments.
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