CURRENT INTELLIGENCE BULLETIN - 1954/11/27

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03009171
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: November 27, 1954

01/1"firfA
Approved for Release: 2019/08/13
�226-P�SEeREF
C�3fr:/17;172://Wir,ez
ftl�
eft
3.3(h)(2)
3.5(c)
//##
(00
CURRENT INTELLIGENC BULLETIN
rto CHANGE IN CLASS. (#/�
DOCUMENT NO 26
0 DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 20/0
AUTH: HR 70-2
DATE: 1/1/80 _ REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
27 November 1954
Copy No, 80
74'
'1,4f#1 i7A
Approved for Release: 2019/08/13 C03009171
Approved for Release: 2019/08/13 C03009171
Neovl rsurN...c
SUMMARY
GENERAL
1. Greece discussing resumption of diplomatic relations with Poland
and Rumania (page 3).
2.
SOUTHEAST ASIA
3, Viet Minh gains in provincial areas of South Vietnam noted (page 5).
40 Britain favors international supervision of Cambodian elections
(page 5).
SOUTH ASIA
50 Soviet truck convoy reported entering southern Afghanistan
(page 6).
6� India may get British-financed steel mill (page 7).
WESTERN EUROPE
7. Renewed pressure in France for early talks with USSR foreseen
(page 8).
'lc lif Nit
27 Nov 54 CURRENT INTELLIGENCE BULLETIN Page 2
TOP SECRET
Approved for Release: 2019/08/13 C03009171
Approved for Release: 2019/08/13 C03009171
GENERAL
Greece discussing resumption of diplomatic relations with Poland
and Rumania:
Poland and Rumania have joined the list
of Satellites seeking to re-establish diplo-
matic relations with Athens.
The Foreign Ministry is reported to antici-
pate the speedy resumption of relations with Poland because there
are no outstanding differences between the two countries
Comment: In the current Orbit campaign
to woo Greece, all the European Satellites except Albania have made
overtures to re-establish diplomatic relations. Bucharest may have
special reasons for wishing to renew relations, such as an interest
in Greek shipping to help move Rumanian exports, and might there-
fore accept the Greek demands in principle as a basis for negotia-
tion.
Although Greece, after long hesitation,
agreed last May to resume relations with Bulgaria, negotiations
over financial problems are still dragging on.
This move by Poland and Rumania appears
to be part of a general Orbit campaign to establish normal diplo-
matic relations with countries other than the United States
27 Nov 4 CURRENT INTELLIGENCE BULLETIN Page 3
TOP SECRET
Approved for Release: 2019/08/13 C03009171
nryerriar.q,T,
Approved for Release: 2019/08/13 C03009171
Ituri Niue
27 Nov 54 CURRENT INTELLIGENCE BULLETIN Page 4
TOP SECRET
Approved for Release: 2019/08/13 C03009171
Approved for Release: 2019/08/13 C03009171
Ulf 1
Num"
SOUTHEAST ASIA
3. Viet Minh gains in provincial areas of South Vietnam noted:
tinue,
months c"
Rear Admiral Cabanier, French fleet
commander in south Indochina, told an
American embassy officer in Saigon
recently that if present conditions con-
"free Vietnam will be lost to the Communists within three
He said that in the area west of Saigon,
which he has visited frequently in connection with the removal of
Viet Minh troops by his naval units, provincial officials seemingly
govern the towns and cities but admit that the Viet Minh actually
runs things, even in the cities. He attributed this condition to
the widespread expectation that the Viet Minh will eventually take
over and to the central government's failure to support local author-
ities with a co-ordinated military and civilian policy.
Cabanier said Viet Minh troops had origi-
nally objected to their removal but soon had been brought into line
by assurances from their superiors that their evacuation was only
temporary. They were apparently convinced, since none requested
evacuation of their dependents.
4. Britain favors international supervision of Cambodian elections:
27 Nov 54
The British ambassador in Phnom Penh
told Ambassador McClintock on 24 Novem-
ber that his government interpreted Article 6
CURRENT INTELLIGENCE BULLETIN
Page 5
TOP SECRET
Approved for Release: 2019/08/13 C03009171
Approved for Release: 2019/08/13 C03009171
L)1" 3r,Lt\r,
of the Geneva agreement as providing for supervision of the forth-
coming Cambodian elections by the International Control Commis-
sion. He said that the outgoing Canadian truce commissioner was
of the same opinion.
Comment: The Cambodian government
hopes to hold the elections, which-are scheduled for March 1955,
without foreign supervision. Article 6 of the Cambodian cease-
fire agreement provides for the reintegration of former Communist-
sponsored dissidents into the national community and for the hold-
ing of general elections.
Although the article is silent on the ques-
tion of supervision, it has been interpreted by all the members of
the truce commission to imply supervision of the elections by that
commission.
British policy in supporting international
supervision appears to be motivated by a desire to blunt Commu-
nist charges that the Western powers are imposing an anti-Communist
policy on the Cambodian government contrary to the spirit of the
Geneva agreement.
The Indians and the Poles have ulterior
motives in insisting on this interpretation. The Indian aim appears
to be a neutralist Cambodia within the Indian sphere of influence.
The Poles are attempting to further Viet Minh objectives.
SOUTH ASIA
5. Soviet truck convoy reported entering southern Afghanistan:
A convoy of 140 Soviet trucks carrying
heavy road construction and maintenance
equipment crossed into western Afghani-
stan at Herat prior to 15 November and
was heading for Kabul via Farah and
har in the southern part of the country,
informed the American army attache in Kabul.
Kan
Comment: The bulldozers, graders,
cement spreaders, snow-removal equipment and maintenance
27 Nov 54 CURRENT INTELLIGENCE BULLETIN Page 6
TOP SECRET
Approved for Release: 2019/08/13 C03009171
Approved for Release: 2019/08/13 C03009171
I.J.1" tLtUl
workshops said to be carried by the convoy are presumably to be
used in paving Kabul streets as provided for in the Soviet-Afghan
loan agreement of 5 October.
It would be extremely difficult, if not
impossible, to move such heavy equipment along the more direct
but tortuous mountain route from Mazar-i-sharif to Kabul. South-
ern Afghanistan has long been open to Soviet diplomats to at least
the same limited extent that the northern part of the country has
been open to American representatives.
6. India may get British-financed steel mill:
London has offered B. M. Birla, Indian
Industrialist, a financial arrangement
roviding for a credit of 45,000,000 pounds
sterling ($126,000,000) to construct a
steel plant in India with a 650,000-ton capacity, according to the
British trade commissioner in New Delhi. The repayment period
is ten years and the interest rate "slightly more than that for gilt-
edged securities." There has as yet been no discussion as to
whether the plant would be operated as a government or private
enterprise.
Comment: There has been considerable
discussion in Indian government circles of a Soviet offer to build
a steel mill in India with a 300,000-ton annual capacity. Conserva-
tive members of the Indian cabinet have been making strenuous
efforts to obtain a steel mill from sources other than Russian.
They are apparently pinning their hopes on Britain, as private in-
vestors in the United States were not interested.
Even though its terms appear less attrac-
tive than those of the Soviet offer, the British proposal will strength-
en Finance Minister Deshmukh and Commerce Minister Krishnama-
chari in their attempts to prevent Indian acceptance of the Soviet
offer. In view of the death of former food minister Kidwai, who
sponsored the Soviet steel mill project, Deshmukh and Krishnama-
chari may be able to convince Nehru that acceptance of the Soviet
offer would be unwise. It is unlikely that the Indian government
will accept both the British and Soviet offers at this time.
27 Nov 54 CURRENT INTELLIGENCE BULLET lN Page 7
Tor SECRET
Approved for Release: 2019/08/13 C03009171
Approved for Release: 2019/08/13 C03009171
I I.J.L" L1U1
WESTERN EUROPE
7. Renewed pressure in France for early talks with USSR foreseen:
A high French Foreign Ministry official
has expressed fear to the American em-
bassy in Paris that the USSR may accept
the "Eden plan" for unification of Germany
rough free elections "subject to minor amendments!' In such an
event, he believes there would be some utility in the earlier French
suggestion that talks with the USSR take place while ratification of
the Paris agreements is in process, He stated that an "apparently
forthcoming Soviet move" on Germany might make it impossible
for the French government to resist "public and parliamentary
clamor for early talks."
Meanwhile, according to a member of the
staff of the National Assembly Foreign Affairs Committee, the par-
liamentary situation has deteriorated insofar as the Paris agree-
ments are concerned, but it is still "universally believed" they will
pass,
Comment: Growing opposition to Mendes-
France on the budget and North African issues, as well as accusa-
tions from some of his original supporters that he is becoming too
"pro-American," will probably narrow his majority on the Paris
accords more than had hitherto been anticipated.
The influential Paris daily Le Monde,
which has heretofore strongly backed Mendes-France, attacked
the premier on 23 November for failing to keep his promise to the
assembly that East-West talks would be held during the process of
ratification of the Paris agreements. The paper expressed regret
that Mendes-France's talks in Washington did little to encourage
Soviet conciliation.
27 Nov 54 CURRENT INTELLIGENCE BULLETIN Page 8
TOP SECRET
Approved for Release: 2019/08/13 C03009171