CURRENT INTELLIGENCE BULLETIN - 1955/01/05

Document Type: 
Document Number (FOIA) /ESDN (CREST): 
02989039
Release Decision: 
RIPPUB
Original Classification: 
U
Document Page Count: 
10
Document Creation Date: 
September 20, 2019
Document Release Date: 
September 26, 2019
Sequence Number: 
Case Number: 
Publication Date: 
January 5, 1955
File: 
AttachmentSize
PDF icon CURRENT INTELLIGENCE BULL[15722659].pdf322.76 KB
Body: 
V/717:07,4 Approved for Release: 2019/09/17 CO2989039 , �,4 3.3(h)(2) 3.5(c) rf./ // E_D 5 January 1955 79 Copy No. CURRENT INTELLIGENCE BULLETIN DOCUMENT NO. NO CHANGE IN CLASS. J DECLASSFIED CLASS. CHANGED TO: TS S C NEXT REVIEW DATE: AUTH: HR 70-2 . DATE: _CS/ile.C... REVIEWER: Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY z .(2P--Er-ECIFET-' Approved for Release: 2019/09/17 CO2989039 40/74 Approved for Release: 2019/09/17 CO2989039 'NNW Nee SUMMARY GENERAL I. Invitees initially wary of Asian-African conference (page 3). 2. Indians said to have dominated Colombo powers conference (page 3). 3. Yugoslav USSR trade talks reported having difficulties (page 4). 4. Trilateral arrangement may supplant Sino-Ceylonese rice rubber deal (page 5). FAR EAST 5. Japan outlines measures for increasing Orbit trade (page 5). 6. Increased military need for oil in East China indicated (page 6). SOUTHEAST ASIA 7. Vietnamese premier approaches showdown with Binh Xuyen (page 8). EASTERN EUROPE 8. Heightened public tension in Poland reported (page 9). LATIN AMERICA 9. Remon assassination seen prelude to "Central American flare-up" (page 9). * * * * 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 2 TOP ?ET Approved for Release: 2019/09/17 CO2989039 7'11 D Cr...G14-EL4r- Approved for Release: 2019/09/17 CO2989039 Nave GENERAL 1. Invitees initially wary of Asian-African conference: 'dal reactions of several of the rincipal invitees to the proposed ian-African conference show they re predominantly wary, according to eports from American embassies. Egypt and the other Arab states will probably attend, although they had been led to believe Peiping would not be invited. Jordan apparently fears the expense of Darticioation. however I22,11, while preferring that no confer- ence be held, will find it cllificult to refuse if other Near East- ern states accept. Cambodia is likely to be pressed by India to accept. Thailand has already indicated hostility to the Asian-African meeting, while Japan is seeking American guidance, The Philippines is noncommittal, but there are indica- tions that it will attend with reluctance. These reactions are not definitive, but they indicate a feeling among a number of the in- vitees that acceptance of the invitationmight be the lesser of two evils. 2. Indians said to have dominated Colombo powers conference: Nehru and his principal adviser on foreign affairs, Krishna Menon, domi- nated the recent Colombo powers confer- ence in Indonesia, since they were the only delegates who seemed to know what they wanted, according to the British embassy in Djakarta. Of the 17 points made in the final communiqu�13 were adopted from Nehru's brief. Pakistan's Mohammed Ali "did well" in obtaining an invitation for Japan and in blocking Nehru's desire to make some official reference to "peaceful coexistence." The other 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 3 1-11 Approved for Release: 2019/09/17 CO2989039 Approved for Release: 2019/09/17 CO2989039 �ter three premiers, however, contributed little or nothing. The conference ended in a generally friendly atmosphere, although Nehru appeared somewhat disappointed with the results and Kotelawala of Ceylon indicated that the meeting only "made the best of a bad job." Comment: The most important result of this meeting was the inviTarron to Communist China to attend the Asian African conference scheduled to be held in Indonesia next April. Unless other countries, particularly those friendly to the West, are represented by dynamic personalities bearing concrete proposals, Peiping is likely to steal the show. 3. Yugoslav-USSR trade talks reported having difficulties: The trade talks in Moscow between representatives of the USSR and Yugo- slavia are not going well, according to Yugoslav counselor of state Kopcok. He told the American embassy that this was no surprise, as it was clear from the beginning that the USSR would insist on cer- tain strategic materials, and that, in the face of repeated Soviet demands for copper, the Yugoslav delegation had been advised by its government that "not one gram" would be made available. The Yugoslav government considers Soviet attempts to dislodge Belgrade from its earlier position on strategic goods as politically motivated, and not related to eco- nomic considerations. Comment: Kopcok's statements probably represent in part an attempt to allay any suspicions regarding Yugoslavia's Western alignment. It is quite possible that Moscow has attempted for political reasons to take advantage of the criti- cal Yugoslav economic situation to force Belgrade to abandon its policy of co-operation with Western strategic export controls. Belgrade, however, has in general complied with Western export controls. If satisfactory terms can be negotiated, the Yugoslays are undoubtedly willing to conclude a one-year gov- ernment trade agreement substantially in excess of the 1 October arrangement, which called for a total exchange of 0,000,000 dur- ing the last three months of 1954. 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 4 rrn Approved for Release: 2019/09/17 CO2989039 Approved for Release: 2019/09/17 CO2989039 *re 4,, Trilateral arrangement may supplant Sino-Ceylonese rice-rubber deal: Burmese premier U Nu has proposed a trilateral trade agreement to supersede the five-year Sino-Ceylonese rice-rubber agreement under which Ceylon supplies Peiping with 50,000 tons of rubber for 2702000 tons of Chinese rice annually, according to the Ceylonese prime minister. Under the proposed procedure, Burma would purchase Ceylonese rubber and resell it to Communist China, while the Burmese would supply rice to Ceylon. The Ceylonese minister of agriculture will go to Rangoon shortly to negotiate details of the agreement. U Nu is reported to have said that Chou En-lai informed him Peiping was willing to cancel the Ceylon agreement if Burma would be responsible for delivery of the rub- ber. Comment: All three countries would appear to gain from this arrangement: Burma hopes to sell a larger amount of rice than under its current contracts with China and Ceylon; the latter two countries would save a little on trans- portation costs. Ceylon also presumably hopes to become eligi- ble again for American aid under the terms of the Battle Act. Peiping would further one of its objec- tives in southern Asia by implicating Burma in a large-scale violation of the UN embargo against Communist China. (Con- curred in by ORB) FAR EAST 5. Japan outlines measures for increasing Orbit trade: The new Japanese government will "not betray its obligations to the United States," but will maximize trade with the Orbit 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 5 ___Top-sEenr-r Approved for Release: 2019/09/17 CO2989039 Approved for Release: 2019/09/17 CO2989039 woe Comment: The Hatoyama government has begun to effect its policy for expanding trade by giving its unofficial blessing to and facilitating the travel of a delegation from the fishing industry and a trade mission to Peiping this month. Shozo Murata, chief of the influential International Trade Promotion Association, heads the trade mission which will nego- tiate the exchange of trade representatives as well as trade agree- ments. He is reported to have the government's approval to in- vite a Chinese trade mission to Japan. 6. Increased military need for oil in East China indicated: Comment: Oil products to be shipped by road in Communist China are usually put up in 53-gallon drums, owing to the shortage of tank trucks. Empty oil drums shipped down the Yangtze to Shanghai are normally filled there by the oil- distributing agency and returned to Central or Southwest China. 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 6 Appro7iorlielca;e72.-619/09/17 CO2989039 n fIL.Jc.4PicA'17tri;."1 Approved for Release: 2019/09/17 CO2989039 Nqiw4 Approved for Release: 2019/09/17 CO2989039 Iry 4-� 1-� r�r, I Approved for Release: 2019/09/17 CO2989039 ',ewe 'Noe The recent consignments to the East China Military District indicate an increased military need to transport oil in areas of East China not served by railroads, or to stockpile oil there for future operations. One such area is the coast opposite Formosa and the offshore islands. (Concurred in by ORR) SOUTHEAST ASIA 7. Vietnamese premier approaches showdown with Binh Xuyen: The gambling concession of the Binh Xuyen gangster organization expires on 15 January and Premier Diem does not intend to renew it. This may re- sult in the sabotage of Saigon's public utilities by the Binh Xuyen, according to reports reaching the American embassy. The acting French commissioner gen- eral has expressed concern over these reports, especially since an atmosphere of unrest already exists as a result of the pro- longed strike of 14,000 Vietnamese civil employees of the French army in the Saigon area. General Collins believes there is some basis for French concern over the Vietnamese army's ability to handle both the strikers and the Binh Xuyen at the same time. Comment: The Binh Xuyen's control of the Saigon police has severely handicapped Diem in his program to eliminate corruption. He is apparently determined, however, to make an issue of the notorious Saigon gambling concession. The French high commissioner and Gen- eral Ely have recommended that Paris grant 800,000,000 francs to settle the civil employees' strike. 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 8 rrnn Cri",1:31.-"r Approved for Release: 2019/09/17 CO2989039 Approved fOr Release: 2879/09/17 CO2989039 Noe EASTERN EUROPE 8. Heightened public tension in Poland reported: Evidence of heightened public tension in Poland is shown in an unusual spate of rumors on the likelihood or even imminence of war, the possibility of a governmental shake-up, and the probability of a currency de- valuation, according to the American embassy in Warsaw. Comment: Orbit threats to take drastic countermeasures in retaliation for the rearming of West Germany have also brought public tension to a high point in Czechoslovakia and Rumania. These governments are taking no steps to calm public opinion, and it is even likely that such rumors were offi- cially inspired as part of the Orbit campaign against French and German ratification of the Paris accords. These rumors also may have been launched to condition the public for measures to be taken follow ing the ratification of the accords and the rearming of West Germany. On 30 December, representatives of the parliaments of Poland, East Germany and Czechoslovakia reiterated their determination to "take all steps considered necessary for safe- guarding their independence and the integrit of their frontiers." LATIN AMERICA 9. Remon assassination seen prelude to "Central American flare-up": infqrmed the American embassy in Caracas on 3 January that he considers the assassina- tion of Panamanian president Remon the prelude to a "Central American flare-up." He also stated that Remon had reported to Venezuelan president Perez Jimenez two weeks ago that Cuban gunmen were planning to kill both Perez and Somoza. Nicaraguan dictator Somoza also had had a report of a planned at- tempt on Remon. 5 Jan 55 CURRENT INTELLIGENCE BULLETIN' Page 9 ISIP---SEeFfrr Approved for Release: 2019/09/17 CO2989039 Approved for Release: 2019/09/17 CO2989039 Nor/ Nal Comment: The Venezuelan and Nicara- guan dictators may use Remon's murder to Justify intensified efforts to eliminate Costa Rican president Figueres. Travel of Venezuelan military personnel to Nicaragua has increased re- cently and a shipment of Venezuelan arms is expected to arrive in Nicaragua this month. 5 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 10 71 0 P- r E Approved for Release: 2019/09/17 CO2989039