CURRENT INTELLIGENCE BULLETIN - 1954/06/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03001361
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: June 16, 1954

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16 June 1954
Copy No.
80
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
.F1 DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE'
AUTH: HR 70-2
DATE: REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
1. South Korea resumes embargo against Japan by subterfuge (page 3).
SOUTHEAST ASIA
2.
3.
4.
Tri disturbed over Ely's evasiveness on Tonkin plans (page 4).
American charg�eports strong feeling against return of Bao Dal
to Vietnam (page 5).
WESTERN EUROPE
Comment on the founding of All-German People's Movement (page 6).
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Noe
FAR EAST
1. South Korea resumes embargo against Japan by subterfugeg
South Korean firms have been threatened
with a denial of credit facilities at the
Bank of Korea and blacklisting by the
Korean procurement agency if they pur-
chase in Japan, according to the American embassy in Tokyo.
Japanese manufacturers and traders are receiving letters from
Korean agents stating that they cannot make contracts with them
whether FOA -financed or otherwise.
The embassy comments that the Rhee
government gives only lip service to competitive bidding. This
increases the cost of the Korean aid program, and prevents
American aid dollars from supporting the Japanese economy as
well as rehabilitating Korea.
Comment In March, President Rhee
imposed a complete boycott on purchases from Japan, including
those utilizing American aid funds. He later ostensibly abandoned
the embargo when American officials pointed out that such discrimi-
nation was contrary to the United States' aid legislation and can-
celed a contract on which japan was not allowed to bid.
It has been anticipated that Rhee's objection
to the American "build-up" of Japan would lead him covertly to cir-
cumvent American policy.
SOUTHEAST ASIA.
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3. Tri disturbed over Ely's evasiveness on Tonkin plans:
Governor Tri of North Vietnam told the
American consul in Hanoi that he has
obtained little satisfaction from General
Ely on French plans for regroup ment in
the delta, particularly in the southern
area. Tri is considerably disturbed over
the possibility that any delta sector may
be abandoned or that Hanoi may be evacu-
ated.
Meanwhile the American army attach�n
Saigon has received reports the
desertion rate among Vietnamese army units and militia in the
Tonkin delta has never been higher. In addition,
the French can now count on the loyalty of only
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three percent of the delta villages.
Comment: Previously reported French
plans, which envisage concentrating French units in the north of the
delta and giving Vietnamese troops responsibility in the south, would
be tantamount to abandoning the southern delta area to the Viet Minh.
The Viet Minh may be expected to take advantage of any. Frendh with-
drawal by increasing its subversive activities among the Vietnamese
populace and military and intensifying its attacks against local units.
4. American ,charge reports strong feeling against return of Bao Dai
to ,Vietnam:
American charge McClintock in Saigon
reports that General Alessandri, military
adviser to Bao Dai, and General de Langlade,
a high French staff officer, both expressed
opposition to the return of Bao Dai to Vietnam. The British ambassador
echoed the view of General de Langlade that Bao Dal's return "would do
more harm than good."
The charg�mphasizes that all these views
were volunteered, and adds: "The hour has passed when his return
would make any difference except possibly further to complicate our
task."
Comment: Bao Dai is apparently all too
willing to comply with advice that he not return to Vietnam, and has
repeatedly found reasons of his own for not doing so. It is doubtful,
however, that he is willing to forego his powerful and highly profitable
position as chief of state. Unless he is willing to resign, he will be in
a position to cause at least as much damage to the Vietnam government
by sporadic meddling from France as he could if he returned.
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WESTERN EUROPE
5. Comment on the founding of All-German People's Movement:
The founding on 14 June of the All-German
People's Movement on German reunifica-
tion by Jakob Kaiser, a Bonn cabinet minis-
t er, reflects further growth of neutralist
tendencies in West Germany, fed by in-
creasing doubts about the EDC.
For the first time since the inception of
the Federal Republic, such a movement is receiving support from
prominent conservative leaders of West German public opinion.
Influential persons in the press and radio,
who have been favorably disposed toward Adenauer, may be affiliated
with the organization, which has reportedly received contributions from
the nonpartisan West German Federation of Trade Unions. Addi-
tional funds are expected from various industrialists.
The orientation of its supporters suggests
that this new organization is independent of any influence from East
Germany.
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