CURRENT INTELLIGENCE BULLETIN - 1955/09/03

Document Type: 
Document Number (FOIA) /ESDN (CREST): 
03000943
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: 
September 3, 1955
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PDF icon CURRENT INTELLIGENCE BULL[15722014].pdf260.18 KB
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/S71.0IA Approved for Release: 2019/09/16 Top SECRET C03000943 -�D / 3.3(h)(2) co73000943 ff.. 3 September 1955 Copy No. J9 CURRENT INTELLIGENCE BULLETIN DOCUMENT NO 3 vi.V NO CHANGE IN CLASS. DECLASSIFIED CLASS. CHANGED TO: IS S C NEXtfiraltW DATE: 4v1e mint 44M D-? nos\ ONfriii.4.41170214EVILYMR:L__._ Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY TOP SECRET 'Approved for Release: 2019/09/16 3.5(c) Approved for Release: 2019/09/16 C03000943 4 � Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019%09/16 C03000943 � *gar. CONTENTS 1. BELGIAN FOREIGN MINISTER SAYS rr's TIME TO RECOGNIZE COMMUNIST CHINA (page 3). 2. AFGHANISTAN REPORTEDLY BUYING CZECH ARMS (page 4). 3. COMMENT ON THE YUGOSLAV-SOVIET ECONOMIC AGREEMENT (page 5). 4. NASR SEEKS INVITATION TO VISIT US (page 6). 5. GREEK-TURKISH FRICTION OVER CYPRUS THREATENS BALKAN ALLIANCE (page 7). 6. ARGENTINE ARMY ULTIMATUM TO PERON REPORTED LIKELY (page 8). 7. GENERAL STRIKE THREATENED IN CHILE (page 9). 3 Sept 55 Current Intelligence Bulletin Page 2 Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 Nor' '410 1. BELGIAN FOREIGN MINISTER SAYS IT'S TIME TO RECOGNIZE COMMUNIST CHINA Belgian foreign minister Spaak told an American embassy official in Brussels on 1 September that "the time has come to recognize the Corn- sr cn1nesegime." Later the same day the em- bassy was informed that Spaak envisaged action on this question within a week to ten days. Spaak told the embassy official he had already discussed the recognition problem with Prime Minister Van Acker and other cabinet members, but had not yet broached it to other governments. He Is convinced, however, that other governments which have not yet recognized Peiping, particularly Canada, are coming to the same conclusion. Spaak argued that the United States has "in effect extended de facto recognition" through the current talks with the Chinese Communists at Geneva. He added that he has not yet decided on the Belgian po- sition with respect to admitting Communist China to the United Nations. He feels that it might be desirable to establish a UN commission to look into the whole question. Comment Several other governments�notably France, Canada, Austria and Egypt-- are believed to be considering early recognition. Belgium is likely to support, along with the British, deferral of a substantive vote on the Chinese representation question at this fall's UN General Assembly. A large number of the UN members who support the eventual admission of Peiping would probably support any Belgian move to establish a UN study com- mission on the problem. 3 Sept 55 Current Intelligence Bulletin Page 3 TOP SECRET Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 - _ Irappie Nimr 2. AFGHANISTAN REPORTEDLY BUYING CZECH ARMS Comment Since May 1955 there have been several rumors that Czech arms were being sent to. Afghanistan. Since Pakistan is unlikely to allow an arms shipment to pass through its territory, the Czech arms will presumably have to be sent through the USSR under the terms of the recent Afghan-Soviet transit agree- ment. 3 Sept 55 Current Intelligence Bulletin Page 4 TOP SECRET Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 Nis pr. 3. COMMENT ON THE YUGOSLAV-SOVIET ECONOMIC AGREEMENT The Yugoslav-Soviet agreement an- nounced on 1 September at the con- clusion of the economic talks in for the USSR to become Yugoslavia's largest creditor and one of its four principal trading partners. Yugoslavia does not appear to have made any commitments which would subject its economy to Soviet control or require the shipment of critical strategic com- modities. If arrangements under the agreement are put into effect, trade will more than double to a level of $35,000,000 each way annually for the three years be- ginning next January. The goods exchanged would be "within the framework of the existing trade agreement" and, therefore, would consist primarily of raw materials. � The Soviet Union is interested particularly in bauxite, tobacco, lead and hemp. The USSR has agreed to grant approxi- mately $100,000,000 in ten-year credits at 2 percent. Of this total, $54,000,000 is earmarked for raw materials and $30,000,000 as a loan in gold or Western currency. These funds are to be drawn within two or three years beginning in January 1956. The rest of the loans are to be in the form of credits for industrial construction. It appears that this agreement does not reduce Belgrade's dependence on the West for grain. The $30,000,000 loan, even if spent for wheat on the open market, would buy only about 300-400,000 tons. Yugo- slavia claims to need up to 1,000,000 tons to cover its annual needs. Concurred in by ORR) 3 Sept 55 Current Intelligence Bulletin Page 5 TOP SECRET Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 Norse 4. NASH SEEKS INVITATION TO VISIT US Egyptian foreign minister Fawzi believes it very important that Prime Minister Nasr be invited soon to visit the United States. zi tow m assador Byroade on 30 August that the timing of the invitation was more important than the time of the actual visit. He did not explain why he feels an invitation is urgent. Comment Fawzi's approach is probably Con- nected mainly with }lases domestic political position. There is some indication that Nasr is still uncertain over possible repercussions from the ousting last week of Salah Salim, his principal political opponent. Nasr may feel that an invitation from the United States, like his trip to Bandung in April and the invitation from the USSR last July, would enhance his prestige with the Egyptian public. 3 Sept 55 Current Intelligence Bulletin Page 6 TOP SECRET Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 5. GREEK-TURKISH FRICTION OVER CYPRUS THREATENS BALKAN ALLIANCE Greek foreign minister Stepha- nopoulos has sent word to the American embassy in London, where the Cyprus issue is under scussion, that the Greeks are particularly shocked by a Turkish warning that anyone who suggested a transfer of sovereignty over Cyprus could no longer expect to enjoy the friendship of Turkey. Stepha- nopoulos' emissary said Greece would do nothing more to further its alliances with Turkey--in NATO and the Balkan pact--since it regards its past efforts as having been in vain. Comment Unless the British can moderate the Turkish attitude or negotiate with the Greeks in spite of Turkish objections, the Greeks will probably walk out of the conference soon after it reconvenes on 6 September. Stephanopoulos would probably prefer to obtain a wider hearing of the Cyprus case in the UN. 3 Sept 55 Current Intelligence Bulletin Page 7 TOP SECRET Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 Nor 6. ARGENTINE ARMY ULTIMATUM TO PERON REPORTED LIKELY The Argentine army "reacted violently" against President Peron's speech of 31 August and is likely to give him an ulti- matum within the near future, Comment Peron's 31 August speech, in which he withdrew his earlier offer to re- sign, and called on his followers to prepare to fight opposition violence with even greater violence, may have led army leaders to reconsider their support of him. The top military leadership, which holds the dominant power position in the government, has thus far been supporting Peron on the condition that he follow moderate policies. This support of Peron by the army leaders has been strongly diElliked in the lower military echellans nrfrirn1r1v in thp nrrivinePc 3 Sept 55 Current Intelligence Bulletin Page 8 TOP SECRET Approved for Release: 2019/09/16 C03000943 Approved for Release: 2019/09/16 C03000943 Nee' 7. GENERAL STRIKE THREATENED IN CHILE The directorate of CUTCH, Chilean labor confederation which claims to represent all organized workers in Chile, on 30 August adopted plans to support some 50,000 public employees now on strike by calling further strikes which would culminate in a general strike on 5 September The general strike reportedly would continue until (a) labor leaders now under arrest are re- leased, (b) Congress rejects President Ibanez' request for special powers, (c) current labor conflicts are set- tled, and (d) a controversial internal security law is re- pealed. Comment A majority of the members of the 24- man CUTCH directorate, which in- cludes at least five known Communists, advocate creation of a left-wing government. A general strike call now would presumably be intended to exploit the general labor unrest stirred up by the uncontrolled inflation of the past several years. Widespread strikes were instrumental in bringing about President Ibanez' downfall in 1931. 3 Sept 55 Current Intelligence Bulletin Page 9 TOP SECRET Approved for Release: 2019/09/16 C03000943