CURRENT INTELLIGENCE BULLETIN - 1953/07/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02872231
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: July 8, 1953

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8 July 1953
Copy No.
87
CURRENT INTELLIGENCE BULLETIN
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SEC INFORMATION
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SECURITY INFORMATION
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3,
SUMMARY
GENERAL
Spanish interests reportedly negotiating oil contract with Iran
(page 3).
SOVIET UNION
Moscow embassy reports rumor of Beria disgrace (page 3).
NEAR EAST - AFRICA
3.3(h)(2)
Britain reportedly considering five-year agreement with Egypt
(page 4).
WESTERN EUROPE
k-VRevival of UN commission on German elections seen likely to
te/4eaken Allied position (page 5).
. Reynaud presses for far-reaching changes in Indochina policy
(page 6).
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GENERAL
1. Spanish interests reportedly negotiating oil contract with Iran:
A Liechtenstein firm, the Tracosa Trading
Company, Ltd., reportedly is acting as a go-between and "Huguenin,"
described as a watchmaker, has made an initial deposit of $175,000.
Comment: This is the first indication that
Spanish interests are trying to buy Iranian oil. The contract may al-
ready be in the process of implementation, 3.3(h)(2)
a tanker had just left Italy for Abadan
As more tankers are now available and as
the preliminary Italian and Japanese court decisions have been favor-
able, more oil may leave Iran.
SOVIET UNION
2. Moscow embassy reports rumor of Berta disgrace:
Ambassador Bohlen reports that a rumor � 3.3(h)(2)
has been circulating in Moscow to the effect
that L, P. Beria is in difficulty if not in dis-
grace because of the recent security break-
down in East Germany.
Bohlen was informed of this rumor by a
"very reliable diplomat who still has occasional Soviet contacts,"
but comments that it may have arisen solely from Beria's absence
on 27 June when all other top Soviet officials attended the opera.
3.5(c)
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Comment: The absence of a top Soviet
leader on even an occasion of state has not in the past been unusual.
As chief of intelligence and security, Berta might be blamed for the
riots in East Germany,
NEAR EAST - AFRICA
3.
4. Britain reportedly considering five-year agreement with Egypt:
The British Foreign Office is reportedly c0n3.3(h)(2)
sidering limiting the proposed Anglo-Egyptian
defense agreement to five years. This limita-
tion would be proposed in the hope that after
ye years Egypt would feel able to join a regional defense arrangement
which would secure Western defense needs at the Suez base.
3.3(h)(2
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The American embassy in London believes that
such a limitation might also pave the way for agreement over the main-
tenance of British technicians at the base. Prime Minister Churchill
and Acting Foreign Secretary Salisbury are understood to feel strongly
that the number of technicians must remain constant for the duration of
the agreement, rather than be progressively reduced as Egypt desires.
WESTERN EUROPE
5. Revival of UN commission on German elections seen likely to weaken
Allied position:
3.3(h)
2)
High Commissioner Conant believes that any3.3(h)(2)
Allied attempt to revive the UN commission
for investigating election conditions in Germany
would be a "political mistake." A mere repeti-
tion of past moves on the German unity question would fail to retain the
confidence of the West German populace and would be seized on by West
German opposition parties as "proof" of the bankruptcy of Allied policies
and of Western opposition to unification.
Comment: The UN commission was formed in
December 1951 at Chancellor Adenauer's instigation to demonstrate the
insincerity of East German unity proposals advanced several months
earlier. Soviet refusal to admit the commission to East Germany was
cited by the Allies as one of the reasons for not participating in a four-
power conference.
A French Foreign Ministry official last week
declared that the French populace would interpret the restoration of
the commission as a Western "subterfuge."
procRET
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6. Reynaud presses for far-reaching changes in Indochina policy:
While the latest French policy declaration 3.3(h)(2)
on Indochina was an adjustment between the
views of Deputy Premier Reynaud and For-
eign Minister Bidault, the American embassy
was the moving force behind the position taken.
Reynaudlold the press that the entire basis of French-Associated States
relations will be discussed if the Associated States so wish. He had
earlier told a representative of the US embassy in the presence of
Premier Laniel that each state would have the choice of remaining in
or withdrawing from the French Union.
The embassy sees the forward-looking "
approach of Reynaud and the appointment of Dejean as commissioner
general for the Associated States as presaging a new French attitude
In future discussions.
Comment: The cabinet split over Indochina
policy and Reynaud's political stature make it difficult for Bidault to
command the support he had under the Mayer government for keeping
all discussion within the 1949 accords. Reynaud's position is further
strengthened by the apparent support of Laniel, and in the appointment
of Dejean as high commissioner he has someone he can depend on.
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