CURRENT INTELLIGENCE BULLETIN - 1955/05/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03181203
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: May 1, 1955

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1 May 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO
NO CHANGE N CLASS.
DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE E 0
AUTH: HR 70-2
DATE. -MAW REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
94
3.3(h)(2)
3.5(c)
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SUMMARY
GENERAL
1. Comment on India's acceptance of active role in Formosa crisis
(page 3).
SOVIET UNION
2. Soviet cruisers may leave Baltic (page 3).
SOUTHEAST ASIA
3. Cambodia to seek rectification of border with Cochinchina
(page 4).
WESTERN EUROPE
4. Comment.on the formation of new state government in Lower
Saxony (page 5).
5. Adenauer proposes West include Moscow in a security system
(page 6).
6. The Situation in Saigon (as of 2000 EDST, 1 May) (page 7).
THE FORMOSA STRAITS
(Page 13)
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GENERAL
1. Comment on India's acceptance of active role in Formosa crisis:
In accepting Chou En-lai's request to
send Krishna Menon to Peiping for fur-
ther consultations on Formosa, Prime
Minister Nehru has again seized an op ,
portunity to assume an active role in
promoting peace in Asia and to recoup
some of the prestige he lost at the re-
cent Afro-Asian conference.
Chou's invitation to India's best-known
diplomat, whose anti-American bias is well established, suggests
that Peiping is prepared for a protracted period of maneuvering on
negotiations over the Formosa issue. In accepting the invitation,
Nehru publicly proclaimed India's friendliness and lack of preju-
dice toward both sides.
Nehru's public proclamation that India
and "other parties concerned" had "known for some time that
China was willing to enter into direct talks," and his statement
that Chou's offer "can lead to an approach toward a peaceful set-
tlement," suggest that the Indian premier may be prepared to
blame the United States if Menon's mission fails to bring positive
results.
SOVIET UNION
2. Soviet cruisers may leave Baltic:
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Comment: Movements of cruisers out of
the Baltic in recent years have been preceded bv apparent surveys
of the narrow waters leading out of the Baltic.I
several cruisers have been active in
the southern Baltic area but have not revealed preparations for
their departure.
The cruisers would probably be trans-
ferred to another fleet, as no impending Soviet naval visits have
been reported. The present total of 13 cruisers in the Baltic,
primary location of Sverdlov-class cruiser construction, is con-
sidered more than adequate for requirements there and the re-
deployment of units to either the Northern or Pacific Ocean Fleets
is expected.
The last interfleet cruiser transfer oc-
curred in August 1953 when the Sverdlov-class Alexander Nevsky
was shifted to the Northern Fleet. There are now four light
cruisers in he Northern Fleet and two heavy cruisers in the Pa-
cific Fleet.
SOUTHEAST ASIA
3. Cambodia to seek rectification of border with Cochinchina:
Ambassador McClintock has learned
that a major purpose of Prince Sihanouk's
trip to Paris next month will be to nego-
tiate rectification of Cambodia's boundary
with Cochinchina, now the major part of South Vietnam. Accord-
ing to Privy Councilor Penn Nouth, the Cambodian government con-
siders the regaining of certain territory ceded to Cochinchina by
the French an urgent matter in view of the "inevitability" of a
Communist election victory in South Vietnam. Penn Nouth empha-
sized that Cambodia would look to the United States and Britain
for help in securing these border changes.
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McClintock comments that obviously a
thorny problem is building up.
Comment: The Cambodia -Cochinchina
frontier was demarcated in the MTh century by the French and
early in the 20th century the French made certain minor changes
in favor of Cochinchina. The Cambodians have been traditionally
resentful of the encroachment of Vietnamese along their south-
eastern border. Cambodia and Vietnam do not maintain direct
diplomatic relations.
WESTERN EUROPE
4. Comment on the formation of new state government in Lower
Saxony:
�The formation in Lower Saxony on
30 April of a coalition government, con-
sisting of the Christian Democratic, the
German, the Refugee, and the Free Demo-
cratic parties, will assure Chancellor Adenauer's control of the
Bundesrat for the passage of constitutional amendments.
The new coalition, formed as a result
of last week's elections, forces the opposition Social Democrats
from power. Adenauer's two-thirds Bundesrat majority, which
was jeopardized by last November's state elections in Bavaria,
will be necessary whenever the government requests parlia-
mentary ratification of those amendments which will facilitate
German rearmament.
The "surprise" government probably
came about as a result of sizable concessions to the Refugee
Party, which holds the balance of political power in the state.
Prospects are that Heinrich Hellwege, leader of the coalition
German Party and a loyal Adenauer supporter, will be minister
president.
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5. Adenauer proposes West include Moscow in a security system:
Chancellor Adenauer, through a personal
envoy, Herbert Blankenhorn, has pro-
posed to the Allied four-power conference
working group in London that the West
o er nc u e e e Union and its Satellites in a new secu-
rity system consisting of all the European states, Canada and the
United States. The proposal provides for over-all limits on arms,
inspection of defense establishments, and a system of nonaggres-
sion and mutual assistance arrangements. The German arms
build-up under the Paris accords would not be affected nor would
NATO force goals, since the arms limits would be set high enough
so as not to interfere.
Simultaneously, the West should also
offer to re-unite Germany under the Eden plan�which called for
free all-German elections and freedom of alliance. Blankenhorn
feels, however, that the Eden plan will continue to be rejected
by the Soviet Union. Nevertheless, he states that German pub-
lic opinion expects the West to adopt a more advanced position on
East-West problems than that taken at Berlin in February 1954.
Such a proposal, he believes, may enable the West to regain the
initiative.
Comment: While Adenaueris proposal
would stand little chance of being accepted by the Soviet Union,
he believes these arrangements are the only safe basis for German
unity. In his opinion' unity will be possible only following a gen-
eral detente between the USSR and the United States.
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6. The Situation in Saigon (as of 2000 EDST, 1 May):
By the evening of 1 May in Saigon the
forces loyal to Premier Diem were
clearly in the ascendancy. An attempted
coup d'etat by General Vy, Bao Dal's des-
ignated military plenipotentiary, had failed.
A press report from Cannes of 1 May
stated that Bao Dal had "reaffirmed" his
faith in Premier Diem and had issued a third invitation to the pre-
mier to come to France. Bao :Dai had described his last previous
invitation as the "second and last."
Early in the morning of 1 May, Vy had
issued a communiqu�tating that there was no constitutional gov-
ernment in Vietnam and that he was the sole legal power. Vy's
attempts to win the support of General Ty and other key officers
in Saigon failed and Vy reportedly enplaned for Dalat at 1500.
Shortly before Vy's flight the French radio in Saigon quoted Gen-
eral Ely as urging the population to "give all necessary help to
the armed forces of Vietnam."
Vy's attempt to overthrow Diem, like
that of the Binh Xuyen, had virtually no chance of success unless
it had the active backing of the French Expeditionary Corps. De-
spite the statements of French government spokesmen in Paris
and General Ely that the action "deposing" Bao Dal, taken by a
"Revolutionary Council" supporting Diem on 30 April, was "ille-
gal," the French command in Saigon apparently made no overt
move to intervene.
The "Revolutionary Council," which first
appeased on 30 April, is a group of extremists supporting the pre-
mier. It has Diem's unofficial sanction but its statements go be-
yond official government policy. Those sect leaders who have been
in Diem's camp during the dispute with the Binh Xuyen--Cao Dal
generals Phuong and .The and Hoa Hao general Ngo--have played
an important, if not dominant, part in the current revolutionary
activity. Corroboration of the strong feeling in the army and�
among the population against Bao Dai's attempted elevation of
General Vy and his dispatch of General Hinh on a "survey mission"
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somewhat cool
toward Diem. the Cao Dai pope--
long an ally of the Binh Xuyen�and certain lesser Hoa Hao warlords
issued anti-l3ao Dai proclamations on the 29th and 30th.
At 1500 hours (Saigon time) Binh Xuyen
forces were reportedly concentrated approximately 12 miles south
of Saigon. Binh Xuyen morale was said to be low; 100 troops
had defected during the day.
Several days
prior to
28 April
26 April
28 April
1215 Hours
28 April
1245 Hours
28 April
1315 Hours
28 April
CHRONOLOGY
Ba Cut liaison reportedly tells Vietnamese
source United Front expects major conflict
with National Army within few days, proba-
bly 1 May.
Diem establishes new National Police
headquarters, with Colonel Le as chief,
on Blvd. Gillieni.
Le tells press that, effective 1430 hours,
he will stop movement mobile Binh Xuyen
patrols.
Mortar shells land in Y Bridge area from
unknown point of origin, according to Ely.
Embassy notes official French briefing
made no mention of this but stated shell-
ing began at 1315 with attack on palace.
Conflict begins when Binh Xuyen report-
edly opens fire on truckload of National
Army troops in front of police headquarters
on Blvd. Gallieni.
Serious battle begins as Binh Xuyen lobs
nine mortar hells on or near palace. Diem
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informs Ely that more shelling will bring
VNA retaliation. Attack continues, and
Diem orders fire returned.
Afternoon, Heavy fighting, largely concentrated in Y
Evening Bridge area and along Arroyo Chinois.
28 April Large area between Arroyo Chinois and
Blvd.Gallieni in flames.
28 April
28 April
Bao Dai cables Diem, appointing General
Nguyen Van Vy army commander and order-
ing Diem and others to Cannes for talks.
Diem told to arrive 3 May for conference
beginning 5 May. (Press)
Kidder sees Ely; latter holds Diem respon-
sible for bloodshed, implies US largely to
blame.
Morning Cabinet meeting reportedly produces unani-
29 April mous approval of strong cable from Diem to
Bao Dai rejecting latter's instructions. Pre-
mier's communique says cabinet decided
presence of premier indispensable and that
Vy's assumption of command would have
"baneful consequences" for country.
29 April
National Army succeeds in gaining
of banks of Arroyo Chinois after
most Binh Xuven strongpoints
objective
overcoming
in city.
29 April
Dai pope Pham
leader Tu Day
Cao
Cong Tac and Hoa Hao military
today issued anti-Bao Dai, anti
-French state-
ments.
29 April
Bao Dai orders General Nguyen
leave for Vietnam to "survey"
Van Hinh to
situation.
(Press)
1430 Hours
French start deploying heavily armed troops
29 April
along principal boundaries of Saigon's
European sector.
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CURRENT
INTELLIGENCE BULLETIN Page 9
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29 April
29 April
29 April
1800 Hours
29 April
29 April
30 April
30 April
Ely tells Kidder and British ambassador
that Diem's refusal to obey Bao Dai puts
him in illegal position. Kidder believes
Ely had hoped to get American and British
support in demarche to Diem for cease-
fire.
Colonel Thai
Hoang Minh, Binh Xuyen chief of staff, is
now suspicious of French intentions, and is
negotiating rallying to the government of
three Binh Xuyen battalions.
VNA has total
of 80 French prisoners.
VNA reportedly flanks and forces Y Bridge.
Binh ,Zuyen falls back to point two miles
south of Saigon. VNA attempting envelop-
ment.
Provisional assembly, called "The Revolu-
tionary Democratic Forces of the Nation,"
"fires" Bao Dai, orders Diem to dissolve
cabinet and form a new one. Assembly,
� which has cabinet backing, adopts resolu-
tion assailing Bao Dai as puppet of French
colonialists. Bao Dai portrait on city hall
torn down at instigation of sect loyalists,
smashed by crowd. (Press)
General Vy, after conference with Diem,
reads statement under duress, saying he
agrees with assembly's action deposing Bao
Dal, and adds: "I place myself at disposal
of Premier Diem." (Press)
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30 April
30 April
30 April
30 April
30 April
0030 Hours
1 May
0900-1000 Hours
1 May
1200 Hours
1 May
1 May
Hoa Hao colonel
Nhuyen Van Hue issued anti-Bao Dai procla-
mation.
Cabinet reportedly sends cable to Bao Dai
protesting latter's decision to send Hinh on
"survey" mission as "serious insult" to
government and army. (Press)
Some members of imperial family in Saigon
said to have decided to urge Bao Dai to re-
tain Diem.
General Ty given additional star, Colonels
Don (AC/S) and Minh (Comdr First Mil
Region) raised to generals.
VNA reports supply situation satisfactory.
Binh Xuyen reported low on ammunition
and down to strength of 2,000. Believed
tired and ready to quit. Some evidence
internal dissension. Binh Xuyen may find
means to improve supply situation.
General Vy released from palace. Issues
statement that he is "sole legal power."
(Press) (Vy later told Emb his release
followed threat by comdr of a paratroop
battalion to attack palace unless Vy freed.)
Bloodless struggle between VNA units and
Imperial Guard units under Vy for control
of national bank, national radio, and PTT
(last two in French sector). Army gains
control of radio and PTT.
People's Revolutionary Council and VNA
representatives, including Ty and Don,
meet at palace. Adopt resolution of full
support for Ty. (Press)
Cannes--Bao Dai reportedly "reaffirms"
support for Diem and renews order to Diem
to proceed to Cannes. (Press)
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1 May
1400 Hours
1 May
1500 Hours
1 May
1 May
1 May
1 May
1 May
1600 Hours
1 May
French military source says Hoa Mao forces
allied with Binh Xuyen marching on Saigon.
(Press)
French radio in Saigon quotes Ely as urging
population to support Vietnamese army.
Comment: Ely may have made statement un-
der impression General Vy in command.
General Vy reportedly enplanes for Dalat.
His residence, crowded with officers a few
hours earlier, now deserted.
Diem's
decision not to go to Cannes is final.
General Hinh will not be permitted to enter
Vietnam.
People's Revolutionary Council authorizes
Diem to form new government which will
organize elected assembly and ask complete
withdrawal of French troops. Demands full-
scale revolution to wipe out colonialist
regime.
Vietnamese defense minister says referendum
will decide issue of monarchy or republic
within a few months.
Paris radio says all observers agree situa-
tion turning in favor of Diem.
Binh
Xuyen concentrated 12 miles south of Saigon,
with French blocking approaches to them.
Binh Xuyen morale bad. Over 100 defected
during day. Government expects 3 battalrs
to rally in near future.
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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 1 May 1955.
1. No significant developments have been reported.
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