CURRENT INTELLIGENCE BULLETIN - 1954/04/13

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02870934
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: April 13, 1954

./,/APPrOved for Release: 2019/08/02 CO2870934, /3
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13 April 1954
Copy No. 76
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO 2,s_
NO CHANGE IN CLASS. IX'
CI DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: P. 0 9_
AUTH: HR 70-2
DATE:er94 ,/r_,9 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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3.5(c)
3.3(h)(2)
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SUMMARY
FAR EAST
1. South Korea places embargo on Japanese products (page 3).
SOUTHEAST ASIA
2. Dien Bien Phu position retaken by French will be difficult to hold
(page 3).
NEAR EAST - AFRICA
3. Saudi king may not renew Dhahran Air Base Agreement (page 5).
WESTERN EUROPE
4. Monnet's tenure as CSC president seen threatened (page 5).
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FAR EAST
1. South Korea places embargo on Japanese products:
South Korea, apparently on direct orders
from President Rhee, has imposed a vir-
tually complete embargo on imports from
Japan, according to Ambassador Briggs.
Korean officials assert that the primary reason is the need for freeing
the nation from economic dependence on Japan, but Briggs believes
that Rhee is also motivated by a belief that Japan is attempting to
influence the elections on 20 May.
Restrictions were progressively applied
to expenditure of South Korea's own foreign exchange holdings during
March, and have now been extended to the use of American FOA funds
to pay for imports of Japanese cotton cloth.
Comment: Rhee may be testing the Ameri-
can reaction to a South Korean attempt to control the source of supply
of goods purchased with American funds.
Rhee's unilateral action violates basic
American legislation requiring that aid funds be spent in markets
where goods can be purchased most advantageously. It is further
contrary to an American-South Korean agreement providing for
joint consultation on use of South Korean foreign exchange holdings.
SOUTHEAST ASIA
2. Dien Bien Phu position retaken by French will be difficult-to hold:
Dien Bien Phu position Eliane 1, which
the French retook on 10 April, has been
the object of sharp attacks and counter-
attacks during the past two days (see map,
p. 4). At 1700 on 12 April, the French
still field the position, but the American army attach�n Saigon be-
lieves It will be difficult to hold indefinitely. Eliane 1 affords a
close-in view of most of the northern defense positions, but is dom-
inated by Dominique 2, which is held by the Viet Minh.
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Nape
HUGUEra
DIEN BIEN PHU
12 APRIL 1954
meters
X
Overrun by
iN Viet Minh
aTNON
ISABETAI,
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Nape
indications that
the Chinese Communists are planning to supply the Viet Minh with
105mm recoilless rifles and with rocket launchers for use at Dien
Bien Phu,
NEAR EAST - AFRICA
3. Saudi king may not renew Dhahran Air Base Agreement:
Comment: The Dhahran agreement is
operative until June 1956 and is scheduled to continue thereafter for
five more years unless six months' notice is given by either country
of an intention to terminate or modify the agreement.
This is the first indication that Saud, who
has been king only since last November, does not plan to :renew the
agreement. As yet the Saudi government has not intimated its inten-
tions on the matter.
WESTERN EUROPE
4. Monnet's tenure as CSC president seen threatened:
Jean Monnet is "on his way out' as presi-
dent of the High Authority of the European
Coal-Steel Community,
told an American embassy official in
Rome on 7 April that Monnet is "completely opposed" by the French
government, and his capabilities are now being questioned by West
Germans. He added that Monnet has lost his former drive.
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4.00.
NINO
Comment: The High Authority president
Is selected by the six CSC member governments for a two-year term.
Although opposition to Monnet's policies has increased somewhat in
recent months, his chances for re-election this summer still appear
good.
Monnet, who has in large part been per-
sonally responsible for the achievements of the CSC thus far, is cur-
rently in Washington negotiating for a substantial loan to the community.
TOP STICRFT
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13 Apr 54