CURRENT INTELLIGENCE BULLETIN - 1954/09/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03000910
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: September 21, 1954

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21 September 1954 3.5(c)
Copy No.
CURRENT INTELLIGENCE BULLETIN
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IN CLASS S.
LASSIFIED
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AUTH: HR 70-2
DATE: ei REVIEWM:
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SUMMARY
SOVIET UNION
1. Comment on purge of high Soviet trade official from Communist
Party (page 3).
SOUTH ASIA
2. Afghanistan turns down Czech military aid offer (page 3).
EASTERN EUROPE
3. Preliminary Yugoslav-Soviet trade talks unproductive (page 4).
4. Tito makes significant Trieste concession (page 5).
WESTERN EUROPE
5. French assembly seen hopeful American elections will delay
German rearmament (page 6).
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N.-, I. LI Ls
SOVIET UNION
10 Comment on purge of high Soviet trade official from Communist
Party:
The expulsion from the Communist
Party of A. D. Krutikov, deputy minis-
ter of trade, appears to reflect upon
Minister of Trade A. I. Mikoyan, one
of the six leading figures in the Soviet Union today.
ICrutikov has been closely allied with
Mikoyan since at least 1939 when he was deputy people's commis-
sar of foreign trade. From this position he rose to deputy chair-
man of the council of ministers in July 1948. After December
1948, however, he disappeared, failing to be re-elected to the
central committee in October 1952 and remaining unmentioned in
the Soviet press until after Stalin's death.
Krutikov's reappointment as a deputy
minister under Mikoyan,
and the ominous men-
tion in the article disclosing the expulsion that "unidentified per-
sons had protected" him, calls into question Mikoyan's current
status. This appears to be the case despite the fact there has
been no other indication that his position may be in jeopardy.
Mikoyan has been active recently in
the topmost party and government circles. Along with Malenkov,
Ithrushchev, Molotov, and other leaders, he attended the 11
August dinner at the British embassy in honor of Mr. Attlee's
visit, and there displayed the vivacity and sharpness of wit
which characterize him. Since then he has been rumored on
vacation in the Black Sea area with these other leaders
SOUTH ASIA
2. Afghanistan turns down Czech military aid offer:
that Afghanistan recently turned down
a Czech trade mission offer of military
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supplies supposedly worth $5,000,000. The official said the
price was excessive and that full payment was required in three
years.
/the Afghans are now
negotiating with a Belgian firm.
Comment: Both Czech and Soviet
negotiations regarding military iipplies are apparently being
confused with the Czech economic aid agreement signed on
22 August, and it is uncertain whether either. Czechoslovakia or
the USSR has seriously approached Afghanistan with an arms
deal.
Despite the fact that Czechoslovakia sup-
plied Afghanistan with arms before World War II, the latter now
prefers to obtain the bulk of its military supplies from the West.
EASTERN EUROPE
3. Preliminary Yugoslav-Soviet trade talks unproductive:
Only one meeting has been held so far
between the Soviet trade delegation and
Yugoslav officials in Belgrade, and it
accomplished nothing, according to
American embassy there. The USSR
reportedly is prepared to offer 100,000 tons of wheat, and is
asking in return lead, tin and copper, which the Yugoslays have
refused to supply.
Comment: The Yugoslav attitude in
these negotiations, which began two weeks ago, supports Tito's
public statement on 19 September that Yugoslavia would wel-
come any Orbit gestures toward "normalization" but that it
would always receive them "with a grain of salt" and not allow
them to change Yugoslavia's relations with the West.
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A. V A. A. N. A-0, A.
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In view of expanded Soviet domestic
requirements and the poor prospects for this year's harvest, it
Is doubtful that the USSR will be willing to increase its offer
enough to satisfy an estimated Yugoslav need for approximately
400,000 to 500,000 tons of wheat. Moreover, Yugoslavia's non-
ferrous metals. may be traded more advantageously with the West,
either in barter deals or for hard currency. It appears, there-
fore, that any agreement reached will be for no more than a
token exchange of goods.
4. Tito makes significant Trieste concession:
In conversation with Under Secretary
of State Murphy on 17 September,
President Tito agreed in principle to
a small Yugoslav concession along the
western end of the proposed demarcation line between Zone A
and Zone B of Trieste in exchange for a "reasonably proportion-
ate" Italian concession on the eastern end of the line. Tito said
he would have to consult his advisers about details, but that he
would not ask for compensation in the Basovizza area.
Murphy sees in Tito's attitude an
"unconcealed desire" to conclude a settlement of the Trieste
issue.
Tito's careful avoidance of any refer-
ence to Trieste in his speech on 19 September was a striking
departure from his usual practice and was probably intended
to prevent upsetting the current negotiations.
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WESTERN EUROPE
5. French assembly seen hopeful American elections will delay
German rearmament:
Comment: Despite Premier Mendes-
France's public avowals of support for NATO membership for
West Germany, he is preoccupied with internal political problems
and will be more inclined to defer to National Assembly sentiment
than to induce the deputies to make concessions. Other evidence
indicates that Mendes-France is still interested in discussing the
German problem in new East-West talks.
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