CURRENT INTELLIGENCE BULLETIN - 1954/04/28
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
03006377
Release Decision:
RIPPUB
Original Classification:
U
Document Page Count:
7
Document Creation Date:
August 20, 2019
Document Release Date:
August 30, 2019
Sequence Number:
Case Number:
Publication Date:
April 28, 1954
File:
Attachment | Size |
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CURRENT INTELLIGENCE BULL[15689663].pdf | 245.3 KB |
Body:
Sfi7t,
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1JA 11.
28 April 1954
Copy No, 7 6
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. 4/ _
NO CHANGE IN CLASS.
0 DECLASSIFIED
CLASS. CHANGED TO: TS 3 C
NEXT REVIEW DATE: .,P0.0 9
AUTH: 1-19 70-2
DATE:26/18.279 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
SOVIET UNION
I. Soviet boycott on Western purchases may apply only to
American goods (page 3).
FAR EAST
2. South Korea may reject American economic aid (page 3).
SOUTHEAST ASIA
3. French column near Dien Bien Phu has only diversionary
purpose (page 4).
4.
5.
Chinese advisers at Dien 13ien
Phu (page 4).
Viet Minh stresses propaganda value of successes at Dien
Bien Phu (page 5).
NEAR EAST-AFRICA
6. Comment on selection of Nun i Said to form Iraqi cabinet
(page 5).
7. Comment on Saudi tanker agreement threatening American
interests (page 6).
WESTERN EUROPE
8. New Belgian cabinet less favorable toward European
integration (page 7).
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SOVIET UNION
. Soviet boycott on Western purchases may apply only to American goods:
states that the Soviet boycott on pur-
chases through Western brokers until after
eneva con erence applies only to A!.merican goods, and not,
I to "all commodities from all
western countries.
Comment: The Soviet government may have
stopped negotiations through brokers for American goods in the belief
that prospects are good for the procurement of agricultural surpluses
directly from the American government in exchange for such commodi-
ties as manganese and chrome ore.
FAR EAST
2. South Korea may reject American economic aid:
South Korean prime minister Paek informed
American aid officials on 25 April that if the
United States continues to insist on Japan as
a source of supply for aid goods, South Korea
will have no alternative but to make a public statement rejecting any
further American economic aid. The prime minister charged that the
United States was attempting to build up Japan at Korea's evense.
Comment: South Korea imposed a complete
embargo on purchases from Japan in March, and attempted to apply it
to an FOA-financed contract. This is part of a current "hate Japan"
campaign which has the primary purpose of forcing Japan to accede to
South Korea's demands on property claims and fishing rights.
A public rejection of American aid would be
in line with recent efforts of South Korea to show its independence of
the United States.
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SOUTHEAST ASIA
3. French column near Dien Bien Phu has only diversionary purpose:
A French Union column, consisting of two
Laotian infantry battalions, a Laotian
parachute battalion, and a mixed Laotian-
French Foreign Legion battalion, was
astricfe the Nam Ou River 35 miles southwest of Dien Bien Phu on
25 April, according to the US army attach�n Saigon. The mission
of this column is to divert four Viet Minh battalions from joining the
forces surrounding Dien Bien Phu.
The attach�eports the column will be
unable to influence the action at the beleaguered post unless it is re-
inforced to several times its present size and given adequate air
support.
Comment: The two Laotian infantry
battalions are not of high combat efficiency. The usefulness of this
column is further reduced by the extremely difficult terrain between
It and Dien Bien Phu which prevents the movement of heavy equip-
ment. The force has no armor and no artillery other than light
mortars.
Chinese advisers at Dien Bien Phu:
each Viet Minh 37mm artillery piece is
served by a Viet Minh crew and a Chinese
adviser.
the supply problem was
serious and that morale was low in the 312th Division, particularly
among the new recruits, who make up half the division.
all recently captured Viet
Minh troops had reported great difficulty in the supplying of rice to
their units.
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Comment: This statement on Chinese
advisers for 37mm crews is the most direct evidence yet received
of the presence of Chinese Communists at Dien Bien Phu.
The difficulty in supplying its forces at
Dien Bien Phu provides a strong incentive for the Viet Minh to finish
off the battle within the next two or three weeks before the supply
routes are seriously softened by heavy rains.
5. Viet Minh stresses propaganda value of successes at Dien Bien Phu:
a captured Viet Minh propaganda direc-
tive states: "We must profit from Dien Bien
:Phu victories and make use of the confused
political situation in France to break down the morale of the French
Union forces." A new psychological warfare campaign was ordered,
to be coordinated with the current battles and the discussions at
Geneva.
The reporting office comments that if Dien
Bien Phu falls, the Viet Minh may make some spectacular "humane"
gesture aimed at the French home front, such as offering to release
some of the captured garrison.
NEAR EAST-AFRICA
Comment on selection of Nun i Said to form Iraqi cabinet:
King Faisal's request that Nun i Said,
dominant member of parliament, form a
new cabinet indicates that Iraq will con-
tinue to have a pro-Western government.
Nun i Said, who has been prime minister
11 times in the 33 years of modern Iraq's history, strongly favors
Iraqi adherence to the Turkish-Pakistani pact.
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His recent suggestion that the pact be
given an anti-Israeli twist to satisfy Arab popular opinion shows that
he will drive as hard a bargain on the pact as retiring prime minister
Jamali did on the recently concluded American-Iraqi arms aid agree-
ment.
7. Comment on Saudi tanker agreement threatening American interests:
The tanker agreement recently signed by
Saudi Arabia and wealthy Greek shipowner
A. S. Onassis, who is now under indictment
by the United States for fraud, threatens
American commercial and strategic interests in the Middle East.
The agreement is reliably reported to grant
a tanker company organized by Onassis the exclusive right to trans-
portI all Saudi oil beyond that carried in tankers which were in the
service of the four American parent companies of the Arabian-Ameri-
can Oil Company (ARAMCO) at the close of 1953. At present this
amounts to approximately 10 percent of Saudi exports and includes
that now transported by the US navy in its own or chartered tankers.
Thus virtual control of this source of oil for the American armed ser-
vices would be placed in the hands of a foreign shipping enterprise.
The agreement violates the oil concession
in which Saudi Arabia granted ARAMCO the exclusive right to market
Saudi oil, and is considered likely to have a disastrous effect on
established sale outlets for Saudi Arabian oil.
British embassy representatives in Wash-
ington have advised the United States that they believe Onassis is
trying to negotiate a contract with Iraq, and possibly Iran, under which
he would be given the right to transnnrf 11 n part of the crude oil
produced by those countries.
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r JE.L.IN.E,
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WESTERN EUROPE
8. New Belgian cabinet less favorable toward European integration:
The attitude of the new Socialist-Liberal
coalition cabinet in Belgium toward Euro-
pean integration, NATO policies� and general
American objectives is "somewhat less favor-
able" than that of the previous Social Christian government, according
to Ambassador Alger. He notes, however, that the cabinet contains
three outstanding advocates of European integration, including Foreign
Minister Paul-Henri Spook.
Communications Minister Anseele, a Social-
ist, is the only cabinet member outspokenly opposed to integration.
Premier van Acker voted against the Coal-Steel Community treaty and
is lukewarm toward Benelux economic union, but voted for the EDC.
Foreign Commerce Minister Larock, also a Socialist, favors East-
West trade expansion.
Comment: Former prime minister Spook,
a persuasive advocate of European integration, will probably be able
to prevent any major shift in Belgium's role in the Atlantic alliance.
At present he, together with the Dutch and Luxembourg foreign minis-
ters, is seeking a formula to satisfy the French Socialist Party's
objections to EDC.
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