CURRENT INTELLIGENCE BULLETIN - 1955/01/23

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03017662
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: January 23, 1955

-pproved for Release: 2019/09/17 C03017662r
3/- v
reThrSEICRET
23 Tanuary 1955 E 1) 3.3(h)(2)
/4
Copy No. ri
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO
NO CHANGE IN CLASS
I DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 2-0 I 0
AUTH: HR 70-2
DATE. ??.vekfO REVIEWE
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
--4
Approved for Release: 2019/09/17 C03017662
aa
Approved for Raeleaas�e72-61-9759/17 C0301662
'Niro? *me
SUMMARY
SOVIET UNION
1. Comment on 1954 Soviet plan results (page 3).
2. British and French officials comment on Soviet leadership
situation (page 4).
FAR EAST
3. Comment on major redeployment of Chinese Communist forces
in Korea (page 4).
NEAR EAST - AFRICA
4.
5.
6.
7.
No death sentences expected in Cairo Zionist spy case (page 6).
WESTERN EUROPE
Comment on reshuffle of the French cabinet (page 6).
LATE ITEM
Chinese Communist invasion of Yushans may be imminent (page 7).
23 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 2
Approved for Release: 2019/09/17 C03017662
Approved for Relea�s7-2171970-9.1/17 C03017662
'Noe
vkage
SOVIET UNION
1. Comment on 1954 Soviet plan �results:
The Soviet annual plan report an-
nounced on 21 January reveals
that the economy in 1.954 grew a
good deal more rapidly than in 1953--a year of transition un-
der the new regime. Most major production goals of the Fifth
Five-Year Plan, which terminates at the end of 19559 will
almost certainly be met or exceeded. Much of this growth is
still being achieved by larger additions to the industrial labor
force than originally planned and by a considerable expansion
of areas under cultivation. Both industrial labor productivity
and crop yields per acre are well behind planned goals.
Industrial output was reported as
13 percent higher than in 1953, and 65 percent higher than in
1950. Since the Five-Year Plan called for a 70-percent increase
over 1950 in industrial output, it is probable that this goal will
be reached by the middle of this year. Significant rises in out-
put of manufactured consumers' goods and in sale of goods
through the state retail trade network made possible the NI=
fillment a year ahead of time of the original state trade turn-
over plan.
Total capital investments increased
by 15 percent over the previous years, indicating a rapid recovery
from the adjustments and shifts undertaken in 1953. Neverthe-
less, the physical plan for new construction and equipment was
not fulfilled, and actual construction costs continue to exceed
planned costs.
The announcement reiterates that the
1954 harvest of grain, the most important crop, was larger than
in 1953 as a result of successes on newly cultivated land. The
increase was probably small, however, since the report gives
no specific figure and admits there was a severe drought in the
Ukraine and Volga regions.
23 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 3
Approved for 2019/09/17 C03017662
Approved for Release: 2019/09/17 C03017662
'Nei/ %or
2. British and French officials comment on Soviet leadership
situation:
The British Foreign Office considers
a contest for power inevitable in the
Soviet system of government, but
does not feel that Khrushchev's in-
creasing eminence is necessarily evi-
dence of a struggle for power. The
Foreign Office does not exclude the
possibility that there is already fric-
tion, and perhaps rivalry, between Khrushchev and Malenkov.
It feels that relations are not as smooth as should be expected
under a collective leadership working in unison with Malenkov
"first among equals."
A somewhat similar view has been
expressed by the leading Soviet specialist in the French Foreign
Ministry, Laloy. He believes that Khrushchev's increasing ar-
rogance may not connote solely a rise in importance, but also
an inclination on Malenkov's part to give him "ample ropeP
Laloy is convinced that there are differences between these two
Soviet leaders on internal policy, but feels that they do not neces-
sarily extend to the foreign policy field.
Laloy believes that if French neutralist
circles become convinced Malenkov represents "reasonableness"
In foreign policy, they will clamor for a favorable Western
response to Soviet overtures, arguing that this would inhibit a
"hard" school of Soviet thinking from gaining control.
FAR EAST
3. Comment on major redeployment of Chinese Communist forces
in Korea:
Chinese Communist forces in North
Korea are undergoing a major rede-
ployment,
RENT INTELLIGENCE BULLETIN Page 4
Approved for 2019/09)17 C03017662
AMY.
Approved for Release: 2019/09/17 C03017662
'4%1 *Nail
The movements involve at least two of the nine
Chinese armies in Korea and two rear area logistical commands.
They may presage further Chinese withdrawals from Korea, and
replacement of Chinese by North Korean troops along the front
line.
Replacement of Chinese with North
Korean troops would be consistent with North Korea's current
political offensive against South Korea. Pyongyang has made
major propaganda efforts to convince the south that peaceful
unification of Korea can be achieved by "Koreans themselves."
The North Korean army has the capa-
bility of assuming all front-line responsibilities, but will pre-
sumably continue to be bolstered by Chinese units in reserve
and coastal security positions.
NEAR EAST - AFRICA
23 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 5
Approved for Release: 2019/09/17 C03017662
Approved f7r-Wele gs7. 9709/17 C03017662
Noss, %Nor
5. No death sentences expected in Cairo Zionist spy ease:
An official of the Egyptian Ministry of
National Guidance is reported to have
stated that those tried in the Zionist
spy case will be given "moderate"
sentences and none will be condemned to death. The verdicts,
he said, have already been decided and will be announced "soon."
Comment: Israel has displayed unusual
concern over the possible execution by Egypt of any of the 13 Jews
on trial in Cairo on charges of espionage for Israel.
Israeli premier
Sharett and Israeli Foreign Ministry officials have expressed
doubts that their government could prevent "armed conflict" with
Egypt if any of the accused were executed.
WESTERN EUROPE
6. Comment on reshuffle of the French cabinet:
The French cabinet reshuffle of 20 Janu-
ary was apparently timed to meet a re-
newed National Assembly threat to the
23 Jan 55
CURRENT INTELLIGENCE BULLETIN
Page 6
Approved for Release: -2019/09/17 C03017662
vligrecft�earfeert rowel
Approved for Release: 2019/09/17 C03017662
'61111 ftiO1
premier's North African policy. Mendes-
France faces a crucial vote of confidence
in connection with the North African de-
bate, now scheduled to begin on 2 February.
The over-all caliber of the cabinet has
been improved, but the six newly created posts are largely super-
fluous and do not strengthen Mendes-Francet position in the
National Assembly. In fact his position was weakened when the
assembly on 21 January elected members of the opposition to im-
portant committee posts.
Marshal Juin reportedly played an active
role in the reorganization of the top defense structure which was
part of the cabinet reshuffle. Most of the new appointees to de-
fense posts are strong proponents of the theme that all of French
North Africa is an integral part of France.
LATE ITEM
7. Chinese Communist invasion of Yushans may be imminent:
Two Chinese Communist LST's, an LCI,
three mine sweepers, a destroyer-type
ship, and three unidentified "warships"
were active in waters between Haimen
and Ichiang Island on 20 January, according to Chinese National-
ist sources (see map, p. 8). Nine Communist motorized junks the
same day approached within one mile of the Nationalist-held Yushan
Islands, 35 miles northeast of the Tachens. The junks are believed
to have been on a reconnaissance mission.
Fsimilar Communist activity preceaea the invasion ot Ichiang
on 18 January. The Nationalist Defense Ministry believes the
present naval activity is a prelude to an assault on the Yushans.
Comment: Since the fall of Ichiang, it
has been expected that th.lCiiii�ies1 Communists would soon
strike at other islands in the Tachen group, most likely at the
23 Jan 55
CURRENT INTELLIGENCE BULLETIN Page 7
Andiark tvria�ertrimic
Approved for Release: 2019/09/17 C03017662
Approved for Release: 2019/09/17 CO3017662
rs,
(
-
Haimen
IM.11014,1111MMI�11.11111110.11mie.alESMINIMNIMIRIW
GIB 22 January 1955
Underlined islands are
held by Nationalist.
Approved for Release: 2019/09/17 CO3017662
Presentations Division
50122
Approved for Release: 2019/09/17 C0301766
Yushans, which are held by 1,000 Nationalist guerrillas, or at
Pishan, which is held by 1,800 guerrillas. It is possible, how-
ever, that the Communists will postpone further assaults pend-
ing clarification of reports that the Nationalists may evacuate
all islands of the Tachen command.
The Communists remain capable of
successfully invading any or all Nationalist-held offshore islands
against Nationalist opposition alone, and in any event will proba-
bly maintain pressure on the Tachens with artillery, air, and
naval action.
23 Jan 55
CURRENT INTELLIGENCE BULLETIN Page 9
ira Approved for Release: 2019/09/17 C03017662