CURRENT INTELLIGENCE BULLETIN - 1955/03/31

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03017440
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: March 31, 1955

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31 March 1955
Copy No. 88
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
-4101,
NO CHANGE IN CLASS
El DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 2-0 ( 0
AUTH: HR 70-2
DATE. I 7;w g0 REVIEWER
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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',Nee
SUMMARY
GENERAL
1. Hammarskjold believes India and Burma will intervene on behalf
of American prisoners in China (page 3).
SOUTHEAST ASIA
2. U Nu invites Ho to stop off in Rangoon on way to Afro-Asian
conference (page 3).
3. Comment on Vietnamese government clash with Binh Xuyen
(page 4).
4. British continue opposition to forceful suppression of Patliet Lao
(page 5).
SOUTH ASIA
5. Nehru reported "considerably disturbed" by New Delhi confer-
ence (page 5).
NEAR EAST - AFRICA
6. Minister of Court Ala reported slated for Iranian premiership
(page 6).
WESTERN EUROPE
7. Italian view of British policy reported (page 7),
THE FORMOSA STRAITS
(page 8)
* * * *
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GENERAL
Hammarskjold believes India and Burma will intervene on behalf
of American prisoners in China:
UN secretary general Hammarskjold has
informed Ambassador Lodge that he has
"solid reason to believe" Indian prime
minister Nehru will intervene on behalf
of American prisoners in Communist
Hammarskjold said he also believes he will be able to
"activate" Burma.
Comment: Hammarskj old apparently
foresees Indian and Burmese intervention directly with Chou En-lai
at the Afro-Asian conference which is tO open on 18 April�
The Chinese Communists have been ex-
pected to release some of the 55 imprisoned or detained Americans
during 1955 for propaganda purposes. In order to make such Asian
neutrals as India and Burma more amenable to Communist purposes,
Peiping may choose to co-ordinate the releases of some prisoners
with representations from those governments:
SOUTHEAST ASIA
U Nu invites Ho to stop off in Rangoon on way to Afro-Asian con-
ference:
Comment: Reports from the Burmese
embassy in Peiping indicate that Chou will accept Nu's invitation.
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Noe'
political
questions would be more important than economic and cultural mat-
ters at the Bandung conference. A pre-conference meeting as pro-
posed by Nu would provide an opportunity to find common ground
on such political matters as Formosa, the Manila pact, and the
banning of nuclear arms tests.
Premier Nasr, however, has indicated
that the performance of his delegation would be satisfactory to the
United States
3. Comment on Vietnamese government clash with Binh Xuyen:
An uneasy truce between government
forces and the Binh Xuyen has been
reached in Saigon. With at least 17
battalions of troops �approximately
13,000 men--in Saigon and environs
against Binh Xuyen forces of some
3,000, the government appears to be
in control following the outbreak on the
night of 29-30 March. The bulk of the antigovernment Hoa Hao
forces are still in western Cochinchina, and Diem claims to
have won over two previously opposing generals, one from the
Cao Dai sect and one from the Hoa Hao.
A serious threat to Diem's positiom
however, is the certain displeasure of Bao Dai with Diem's re-
moval of the Saigon police from the control of the Binh Xuyen
The Binh Xuyen's armed attacks were in response to this act
The Binh Xuyen was awarded control of the police by Bao Dai a
year ago--for a price--and it has since made itself the watchdog
of Bao Dal's interests in Vietnam
Meanwhile, French officials have ex-
pressed their concern with what they consider Diem's rashness
in dealing with the sects. A high Paris official has proposed the
formation of a new policy-making body which would in effect termi-
nate Diem's influence and permit the entry into the government of
some of Vietnam's foremost opportunists and fellow travelers,
31 Mar 55
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4. British continue opposition to forceful suppression of Pathet Lao:
In commenting on the present situation
in Laos, the British point out that the
Laotian government may either forfeit
"world opinion" by resorting to force to
restore its authority over the provinces held by the Pathet Lao,
or it may open the way to Communist domination of the whole coun-
try by making vital concessions in an attempt to secure a peace-
ful settlement.
A spokesman of the embassy in Washing-
ton stressed on 22 March the Foreign Office view that military
action might be condemned by the International Control Commis-
sion, a development which Foreign Secretary Eden wants avoided
"at all costs."
Comment: The British are anxious to
avoid any situation which would appear to violate the spirit of the
Geneva agreement. They are particularly concerned lest India
be forced to align itself publicly against the Laotian government.
London's long-range hopes for checking
the spread of Communism in Southeast Asia are based in large part
on efforts to induce India to assume the major foreign influence role
in the area.
SOUTH ASIA
5. Nehru reported "considerably disturbed" by New Delhi conference:
The British Foreign Office has informed
the American embassy in London
that Prime Minister Nehru was
ignorant of the background of the "Asian
Conference for the Relaxation of International Tension" when he gave
his offhand assent for the holding of the Communist-sponsored
meeting in New Delhi beginning 6 April. When Nehru recently
learned the facts about the conference, he was reportedly "con-
siderably disturbed,"
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According to the Foreign Office, Nehru
has now ordered his government not to have any official contact
with the leftist meeting, although he is permitting minimum courte-
sies to delegates who are also government officials.
Comment: This confirms earlier re-
ports that India does not look with favor on the forthcoming left-
ist conference at New Delhi, though it has done nothing so far to
restrict attendance.
Nehru's reported reaction might lead
the government to curtail the activities of the delegates if it feels
the meeting is likely to hurt Indian political objectives, particu-
larly in reference to the Afro-Asian conference two weeks later
In Indonesia.
NEAR EAST - AFRICA
6. Minister of Court Ala reported slated for Iranian premiership:
The Shah is ready to replace Prime
Minister Zahedi with Minister of Court
AlaLl
The Shah has requested Zahedi to resign
if he cannot resolve his differences with Abol Hassan Ebtehaj,
director of the Seven-Year Plan.
Comment: The antipathies between
Zahedi and Ebtehaj are probably too great to be reconciled, and
the Shah apparently expects the prime minister to resign.
Ala is devoted to the Shah but is ill and
ineffectual. His appointment would result in intensive political
activity which would be likely to promote government instability.
Ala was prime minister for about six
weeks in 1951. He was replaced by Mossadeq, who had out-
maneuvered him during his premiership.
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`14.11 Nirie
WESTERN EUROPE
7. Italian view of British policy reported:
Europe
Italian premier Scelba and Foreign
Minister Martino believe that the funda-
mental objective of British policy is to
take the place of the United States in
and to re-establish British leadership around the world,
Martino is said to favor the alleged
British view of bilateral European alliances and a soft policy
toward the Soviet Union. Scelba, however, favors further Euro-
pean integration and desires close American support for this
policy.
Comment: Despite frequent reports
of Martino's "pro-British" leanings, the Scelba government is
determined to maintain close ties with the United States.
This reported version of British policy
ignores the cardinal importance to Britain of the Anglo-American
alliance and the strenuous British efforts to ensure continued
American involvement on the Continent. London has always pre-
ferred intergovernmental co-operation to supranational institu-
tions.
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THE FORMOSA STRAITS
Report of the IAC Current Intelligence Group
for the Formosa Straits Problem
This report is based on information received in Washington
up to 1100 hours 30 March 1955.
1. The lull in Formosan combat air operations was broken
by Nationalist air attacks on nine Chinese Communist patrol boats
in the Min River near Foochow on 30 March. Damage to three
craft was claimed after a strafing attack. Although ten to twelve
patrol boats have been known to be operating in the Foochow-Wenchow
area, this is the first such concentration observed in the southern
part of this area. The vessels are considered to have been engaged
in logistic activity.
Except for this action, Chinese Nationalist air operations
for the past week have been confined largely to patrols and recon-
naissance. Chinese Communist air activity also has been at a low
level. There have been no reports of Communist aircraft in the
Formosa Strait area since 17 March.
2. During the past week the volume of Peiping propaganda
dealing with Formosa showed a further decline from six to 205 per-
cent of all internal broadcasts, equalling a previous low in November
1954.
The week's major Chinese Communist statement on Formosa
was contained in a 25 March article by Mme. Sun Yat-sen, on the sub-
ject of coexistence. Mme. Sun restated the Chinese Communist posi-
tion that the "liberation" of Formosa was a purely domestic matter
except in so far as it involved "US aggression." She stated that pro-
posals for "neutralization" of Formosa were totally unacceptable to
Communist China. However, Mme. Sun's article was presumably
designed to set the tone for propaganda preparatory to the Bandung
Asian-Africa conference, at which the Chinese Communists are ex-
pected to stress strongly the theme of "peaceful coexistence."
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