CURRENT INTELLIGENCE BULLETIN - 1955/02/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03149174
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: February 19, 1955

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3.3(h)(2)
3.5(c)
19 February 1955
Copy No. 88
CURRENT INTELLIGENCE BULLETIN
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DOCUMENT NO
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DECLASSIFIED
CLASS. CHANGED TO; IS -0
NEXT REVIEW DATE: AO& '
AUTH: HR 70-2
DATE. no. TO. REviEwE
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. Moscow offers to receive Indonesians for atomic energy study
(page 3).
FAR EAST
2. Chinese Communists occupy several islands near Nanchishan
(page 3).
3. Clarification of Chiang Kai-shelc's reported statement on Nanchishan
(page 4).
SOUTHEAST ASIA
4, Paris states intention to maintain ties with North Vietnam (page 6).
NEAR EAST - AFRICA
5. Britain plans to replace Anglo-Iraqi treaty (page 6).
6. Comment on Ben-Gurion's return to Israeli cabinet (page 7).
7. Papagos government threatened by strengthened opposition (page 8
LATIN AMERICA
8. Military coup in Paraguay seen increasing possibility (page 8).
* * * *
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GENERAL
Moscow offers to receive Indonesians for atomic energy study:
Comment: This is the first known offer
by the USSR to provide atomic energy training to non-Orbit per-
sonnel as a part of a Soviet campaign designed to counter Presi-
dent Eisenhower's "atoms for peace" plan. This campaign may
include within the relatively near future a Soviet offer of a small
output power *reactor to a non-Orbit country.
In the underdeveloped Asian countries,
the propaganda campaign comparing an alleged US plan for
"atomic aggression" with the Soviet program of peaceful uses
would be facilitated by publicizing such an offer.
The present Indonesian government
may be expected to respond favorably to a specific Soviet offer.
Several official and unofficial Indonesian technical delegations
have accepted invitations to visit the Soviet Union during the past
year.
FAR EAST
2. Chinese Communists occupy several islands near Nanchishan:
19 'Feb 55
Chinese Communist forces on 18 February
began to occupy four islands near Nanchi-
shan in an apparent effort to isolate that
island outpost, according to the American
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naval attach�t Taipei. Three of the
islands are located about 12 miles north,
and another, Taishan, is about 42 miles
south (see map, p. 5).
The Nationalist Defense Ministry also
reports that four Chinese Communist planes bombed Tungyin
Island, 40 miles south of Taishan, on 18 February. Tungyin is
occupied by 64 Nationalist troops who man an air force commu-
nications and early warning station.
Comment: The Communist occupation
of these islands may have touched off the naval clash reported by
the Nationalists as occurring near Taishan.
General Chase, MAAG chief on Formosa,
reports the Nationalists are planning to retaliate by attacking
Taishan with naval and air action and an early amphibious raid
to capture prisoners.
With occupation of the smaller islands
north of Nanchishan, the Communists will be able to use long-range
artillery against the island. Island bases south of Nanchishan could
be used to launch harassing attacks on Nationalist supply ships en
route from Formosa.
3. Clarification of Chiang Kai-shek's reported statement on Nanchishan:
Chiang Kai-shek, in an interview on
16 February in which he repeated earlier
statements that he considers the United
States to be committed to the defense of the Matsu and Quemoy
groups, said further, according to the International News Service,
that he regards Nanchishan Island as one of the Matsu group. The
statement regarding Nanchishan has not been confirmed by any
other source.
Comment: Chiang's remarks, if accu-
rately reported, would appear to-Fe a bid for American defense
of Nanchishan, an is nd about 100 miles north of the Matsus and
particularly vulnerable to a Chinese Communist attack.
19 Feb 55
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CHINA
MAINLAND
FUKIEN
PROVINCE
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4 -1 -
Nanchishan
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.OFFSHORE ISLANDS
NANCHISHAN-MATSU AREA
18 February 1955
0 10 20 30 40 50
Statute Miles
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PRESENTATIONS DIVISION 18 FEBRUARY 1955 50218
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SOUTHEAST ASIA
4. Paris states intention to maintain ties with North Vietnam:
French Foreign Ministry spokesmen
have made it "abundantly clear" to
American officials in Paris that the
maintenance of French economic and
cultural influence in North Vietnam is an established policy
objective.
The head of the Foreign Ministry's
economic section states that he anticipates "hard bargaining"
will be required to get Viet Minh acceptance of joint control of
these interests.
The American embassy concludes, on
the basis of its contacts with French officials and members of
parliaments that this policy of "coexistence" with the Viet Minh
has broad support.
Comment: This is the most positive
delineation of policy on this issue. The French have heretofore
been equivocal about accommodation with the Viet Minh.
Although the proposal for joint control
of enterprises in North Vietnam embodies large concessions to
the Viet Minh, it is doubtful the French firms would be permitted
for long to retain any real voice in the management of the enter-
prises in question.
NEAR EAST - AFRICA
5. Britain plans to replace Anglo-Iraqi treaty:
Replacement of the Anglo-Iraqi treaty
with special arrangements for meeting
British military requirements in Iraq
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within the framework of the planned Turkish-Iraqi pact will be
discussed at Anglo-Iraqi military staff meetings beginning on
23 February. According to the British Foreign Office, Britain
will join the Turkish-Iraqi pact when these meetings have been
completed.
Comment: Britain has been searching
for a formula by which it could retain rights at the two air bases
in Iraq after the Anglo-Iraqi treaty expires in 1957. Iraq, which
opposes any extension of that treaty, also favors handling the
problem by some such arrangement as expansion of the Turkish-
Iraqi pact.
Replacement of the Anglo-Iraqi treaty
by arrangements under the Turkish-Iraqi treaty would facilitate
plans for Middle East defense.
6. Comment on Ben,Gurion's return to Israeli cabinet:
Former prime minister Ben-Gurion's
return as Israeli defense minister to
the cabinet on 17 February suggests
that the dominant Mapai party has
closed ranks in the face of increasing tension in the area.
Although the immediate effect of these
moves is to associate Ben-Gurion officially with Sharett's policy
of moderation� it also is a direct warning to the Arabs, who are
aware of Ben-Gurion's tough approach. The move, bringing to-
gether Mapai's two top figures, improves opportunities of secur-
ing a maximum vote in the parliamentary elections in July.
The return of Ben-Gurion will instill
new confidence in large segments of the population and will in-
duce the army to hope that Sharett's policy of moderation will be
revised. In the long run, Ben-Gurion's predilection for action
and the continuing pressure of military leaders on him are likely
to result in a tougher military policy toward the Arab states.
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Papagos government threatened by strengthened opposition:
Dimitrios Lambrakis, influential Athenian
newspaper publisher and long-time sup-
porter of Prime Minister Papagos, has
arranged an alliance between the Liberal
Party and the new Progressive Party of former minister of co-
ordination Markezinis,
Lambrakis promises the support of about 40 Rally deputies he
controls, and the new alliance awaits only the proper issue on
which to display its unity in parliament.
Comment: During the past year the Rally
has lost by defection almost 40 of its original 237 supporters in
parliament. Loss of another 40 members, with probable additional
attrition, could leave the government with less than a bare majority
of the 300 seats, thus making its early fall likely.
Lambrakis, long influential in Greek
politics, has close ties with both Markezinis and Sophocles
Venizelos, ex-Liberal chief who commands strong support in anti-
Rally circles. Lambrakis now appears to be planning on the re-
placement of the Rally by a new government based on a Markezinis-
Venizelos alliance.
LATIN AMERICA
8. Military coup in Paraguay seen increasing possibility:
The political situation in Paraguay has
deteriorated seriously since 13 February
as a result of growing discontent amon
ry and government leaders,
The military leaders seek to oust
President Stroessner if he does not dismiss two controversial
Colorado Party leaders--Central Bank president Epifanio Mendez
Fleitas and Interior Minister Romero Pereira. A group believed
to be anti-Mendez made an unsuccessful attempt on 14 February
to seize the air force headquarters near Asuncion.
19 Feb 55
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Comment: A showdown over Mendez
Fleitas appears imminent. General Stroessner, who has not
made his position clear, is under attack from both sides in the
controversy. There have been three attempts against the gov-
ernment since last November.
Mendez' strongest challengers appear
to be rightist military elements and others who charge that he
is pro-Communist, too pro-Argentine, and stands in the way of
party unity. Although Mendez denies any Communist affinity,
the Communists actively back him.
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