CURRENT INTELLIGENCE BULLETIN - 1954/04/28

Document Type: 
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: 
Body: 
Sfi7t, pproved for Release: 2019/08/02 C03006377, 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 460P .5.ECRET Approved for Release: 2019/08/02 C03006377 Approved for Release: 2019/08/02 C03006377 \-� ,��.� t �Nor 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). * * * * 2 TOP SECRET Approved for Release: 2019/08/02 C03006377-1 28 Arsr 54 Approved for Release: 2019/08/02 C03006377 LA...n.L, I Now Nor 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. 3 TOP SECRET Approved for Release: 2019/08/02 003006377 28 Apr 54 Approved for Release: 2019/08/02 C03006377 ocA.1-:,I. 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. - 4-. -TOP-SEC-R-E4 Approved for Release: 2019/08/02 C03006377 20 Apr 54 Approved for Release: 2019/08/02 C03006377 c.L.rct, 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. - 5 - -TOP-SEeRE-T Approved for Release: 2019/08/02 C03006377 28 Apr 54 Approved for Release: 2019/08/02 C03006377 inora.J I. 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. -6 --T-91I-SEeRET Approved for Release: 2019/08/02 C03006377 28 Apr 54 Approved for Release: 2019/08/02 C03006377 r JE.L.IN.E, lume) 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. 7 TOP SECRET Approved for Release: 2019/08/02 C03006377- 28 Apr 54