CURRENT INTELLIGENCE BULLETIN - 1955/05/18

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03194444
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RIPPUB
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U
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10
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September 20, 2019
Document Release Date: 
September 26, 2019
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Publication Date: 
May 18, 1955
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Fie 07 iApproved for Release: 2019/09/17 TOP SECRET CO3 1 c:%/ 107,1ff 18 May 1955 Copy No. CURRENT INTELLIGENCE BULLETIN DOCUMENT NO. -16 NO CHANGE IN CLASS. El DECLASSIFIED CLASS. CHANGED TO: TS S C NEXT REVIEW DATE. 0 AUTH: HR 70-2 DATE: 9///e0 REVIEWER: Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY 94 3.3(h)(2) 3.5(c) /7Ar TOP SECRET Approved for Release: 2019/09/17 C03194444 Approved for Release: 2019/09/17 C03194444 _ SUMMARY GENERAL 1. Chinese Communist trade delegation to visit Egypt (page 3). SOVIET UNION 2. Bulganin calls for higher productivity and reorganization of economic planning (page 3). FAR EAST 3. Comment on North Korean bombardment of South Korean fish- ing fleet (page 4). SOUTHEAST ASIA 4. Sect forces still a problem to Vietnamese government (page 6). NEAR EAST - AFRICA 5. Iraq reported seeking Syrian coalition to upset Damascus gov- ernment (page 7). EASTERN EUROPE 6. Yugoslays reportedly will refuse party ties with USSR (page 8). 7. Britain sees Soviet visit to Belgrade as triumph for Tito (page 8). 8. Hammarskj old prods Chou En-lal on American airmen (page 9). 9. Comment on resignation of Dutch cabinet (page 10). * * * * 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 2 TOP SECRET Approved for Release: 2019/09/17 C03194444 _ Approved for Release: 2019/09/17 C03194444 GENERAL 1. Chinese Communist trade delegation to visit Egypt: ii,omment: reipmg nopes 'or ponucat reasons to establish formal trade ties at the government level, but Cairo has not yet recognized the Chinese Communist regime, and at the Bandung conference in April discouraged Chinese ef- forts to arrange a formal trade deal. Peiping is expected to buy more cotton from Egypt than it did last year, in view of greater needs in China and large exportable surpluses in Egypt. Peiping has shown increased eagerness to inaugurate formal trade relations with countries of the Near East, An Israeli delegation was received earlier this yo.ar, al- though no agreement was consummated. SOVIET UNION 2. Bulganin calls for higher productivity and reorganization of eco- nomic planning: In a speech delivered at the opening of a large conference of industrial workers in Moscow on 16 May, Premier Bulganin praised the rapid growth of the Soviet economy, but scored numer- ous industrial defects which, he said, must be eliminated in or- der to "vanquish capitalism in economic competition." The premier stated that the State Plan- ning Committee (GOSPLAN) was being split into two bodies, one to be responsible for long-range economic planning, the other for :18 May 55 CURRENT INTELLIGENCE BULLETIN Page 3 TOP SECRET Approved for Release: 2019/09/17 C03194444 Approved for Release: 2019/09/17 C03194444 current planning. In addition, a new committee is being estab- lished to ensure the incorporation of new technical processes into the Soviet economy. Bulganin demanded greater labor produc- tivity through increased use of new technology, more industrial specialization, and additional reductions of administrative bureauc- racy. Comment: Continued failure to attain goals in labor productivity has caused increasing concern to Soviet leaders. Industrial output plans have been attained only by expand- ing the urban labor force more rapidly than scheduled. The present drive to increase agricul- tural production precludes further increases of the urban working force and makes the need for higher output per worker more press- ing. The establishment of separate bodies for long- and short-range economic planning resembles the division of these functions which existed in the USSR from 1948 to 1953, and which resulted in a significant improvement in production during that period. FAR EAST 3. Comment on North Korean bombardment of South Korean fishing fleet: The North Korean bombardment of a South Korean fishing fleet operating well within North Korean waters in Haeju Bay on the west_coast with 870 rounds of ar- tillery on 10 May would appear to be a reaction against trespassing by South Korean fishermen (see map, p. 5). The incident may, however, have been a calculated retaliation for a South Korean attack on a North Korean fishing fleet 20 miles north- west of Pyongyang 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 4 T-er SECRET Approved for Release: 2019/09/17 C03194444 Approved for Release: 2019/09/17 C03194444 1 4 12 128 13011101, TUNG.FENGel ........, 2 (- ,i, I N, .,./ C H IN A a-ch'uan. ,_o-yng , ---, ,P1 V ) c�... , Musan ajin e �4 KOREA 1, NORTH KOREA 40 ig n'DEN PEN , AN-TUNG : INCIDENT , I ,� ,---i-io-,,-- Pi-SHUN T'UNG-HUAs ' 1 .71' or� CH'I l' ...".1 .1 �'- .,t '/ 1 ' SINCIIJU ,. Chang/. ..-'' ,.- ,5". �1-- ( >fro *Sinan , . 4 MAY ., ,,, �.e.4 ' ,PY� YANG , ChinnamP:io Ky.:5m iwo , Vl ' Sanwono *Changy6n 7-e --9 a \ - Lin-chiang . \ Nit ..."77-7::: 77411 C- s� Manp'oinz 2 Hamhung,,, s HONGNAM u YonghOng. i -..6 ( , : Wonsan N__ _1;-0-,.._ '' '4��:` Ch'arwan Ka ng ------ _.e.b Nanam . i i i l to / r.o/ip ; � ,-----, ^ 0,-/- (Songlin ,r'-i Pukch'ong ' � ,,--� _ E A f-," ;'' Yangyang �.� 'oNGJIN k 1 4� , 1 -� SOUTH KOREA FISHING INCIDENTS t0- Ingjim,,' Ch'unch'en% 10 MAY 0000W0 00 SEOUL i ACTION NGDUNGP9 i ) mukizoiin-o; -},, CY 6,0mch'ok 36 . _Wonju �Suwon �-..7.��),,Yaiu . "--_, I ���:', '\ tr oCh'Onan i 1 I k L L () Pt- ,..y ,-, I...�?Taejon I ,�.;.?.( --4--- siS 1 ..1 Um .p :, �' Togye-ri. � --).' .\_/- \._7( C ' Pyanghae-ri ,:;j , 71 I ( 1 Andong i 1 I ,., \ 1 P'ohang-dongo\..,,, hT6n 1 34 i 1 S 1: A ,,, � Kunsan 7 ghonjui . - i , -r. 'I ' KWANGJU ... 'f' sunch'Onc,�, ,._,,,,,./k,/,. - _ r --:'-i k,,. ,. '3 11 t(P.0 - ''O*Ps.)'/ ,�,;.k 17 , 45C ,,,....)0 �,$.3 ,::------; 1 . ,4 kf -,,, ,71.,' '7,. -,,,,` Z) o 1--- , irw--- ,11-.- u r.';',. - 4 T@AEGU 1 7 -,� o 11 \._s.,� Y -ydn ,-- ----,--,� Y , ) 1- .--- 14'2' ',1.-,16-' t7s,PUSAN _ ,go\idyl E- DO / ----' ' r''' 4 � %,g.� ,.,,,, ,,.1 � E.-,5) '' / .. d'y, -'24. / is s4SUSH IMA / 1 Li Th j international on this e do not bounderies shown mit Cheju. r. ' QUELPART H---- '41/- l K :APA ' HI SN, CIB 18 MAY 1955 Scale 1:4,750,000 0 0 25 5 7p Miles nece serily correspond in ,/1 0000 loth. houndenes recop- ISLAND th Intro by e U. 5. Governm .....* ent. 0 25 50 75 Kilometers 1248AsE 12115.1 2-52 126 128 ----- i. ci 50517 3 TOP ET Approved for Release: 2019/09/17 C03194444 Approved for Release: 2019/09/17 C03194444 lar NMI SOUTHEAST ASIA 4. Sect forces still a problem to Vietnamese government: The Cao Dai pope wants to form his own army and is being encouraged in this course by the French, The pope is said to be able to count on tWo c-ao uai battalions now and is seeking the support of the troops commanded by the late General The. Meanwhile, Diem has protested to Gen- eral Ely over alleeed French liaison with Hoa Hao forces under General Soai. Comment: The Cao Dai pope continued to denounce Diem long after the Cao Dai armed forces, under Generals Phuong and The, had lined up with the government. Re- cently, however, the pope has come out against Bao Dai and in support of the Revolutionary Committee, whidh supports Diem. 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 6 TOP SECRET Approved for Release: 2019/09/17 C03194444 Approved for Release: 2019/09%17 C03194444 _ _ _ Noe It is doubtful that the pope could muster any effective armed group without the support of Phuong, whose present allegiance to Diem may prove temporary or require con- siderable cash subsidy. Diem :is using a joint French-American plan as the basis for further study regarding the integration of sect forces into the army. Two major Hoa) Hao commanders re- main bitterly anti-Diem and a solution to the sect problem will require considerable time, talk, and cash. NEAR EAST - AFRICA 5. Iraq reported seeking Syrian coalition to upset Damascus govern- ment: Baghdad has decided to send two former Iraqi prime ministers to Syria to try to persuade the Populist and Nationalist Parties there to organize a coalition which could bring about the fall of the present Syrian government. This decision was taken at a meeting on 12 May of numerous former and present high Iraqi officials, in- cluding King Faisal and Prime Minister Nun i Said, and was re- ported to the American ambassador by Khalil Kenna, a trusted confidant of the prime minister. Comment: This report indicates that the Baghdad government is emphasizing political rather than military subversion as a method of overthrowing the Damascus government. 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 7 Approved for Release: 2019/09/17 C03194444 Approved for Release: 2019/09/17 C031941444 Naire EASTERN EUROPE 6. Yugoslays reportedly will refuse party ties with USSR: A Yugoslav newspaperman has told an American official in Belgrade that he has definite information the initiative for high-level Soviet-Yugoslav talks came from Moscow. He said he was sure Soviet leaders would try to re-establish party relations with the aim of drawing Yugo- slavia back into the Soviet bloc, but that the Russians would fail, because Belgrade wants to keep relations on a government-to- government basis. Although he expects the USSR to try to reac- tivate the old mutual assistance agreement, he does not believe Belgrade is willing to enter into any kind of treaty with the USSR "just now." Ambassador Riddleberger is inclined to think the Yugoslays do not want to re-establish party ties. He be- lieves they are hoping, however, to establish complete rapport in Yugoslav-Soviet state relations in the belief that this would be a major step toward relaxing international tensions. To this end, the Yugoslays may seek a settlement of pre= 1948 economic claims, the repatriation of Yugoslays held in the USSR, and the expansion of trade and cultural relations. Riddleberger feels that the sub- jects covered in conversations on how to reduce world tensions will include disarmament, Germany, and European security. Comment: In public statements the Yugoslays have consistently denied any desire to re-establish ties with the Soviet Communist Party. They have, however, shown considerable satisfaction with private statements to them by Soviet officials allegedly indicating acceptance of Yugoslav party develo ments as a legitimate interpretation of Marxism. 7. Britain sees Soviet, visit to Belgrade as triumph for Tito: The British Foreign Office considers the forthcoming visit of Soviet leaders to Belgrade as a triumph for Tito, who is 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 8 SECRETTP Approved for Release: 2019/09/17 C03194444 Approved s Ts for Release:rv2079709/17 C03194444 described as an old Communist who will know how to take care of himself. The Soviet move is also regarded as another step in an attempt to establish a neutral belt including Germany. London believes that in return for a Yugo- slav declaration of neutrality, the USSR might offer further "normal- ization" of relations, economic concessions, restraint on military deployments in nearby Satellite nations, and even arms aid. Comment: British officials have not directly discouraged the concept oi a neutral belt as such, but they have insisted that any understanding with the USSR must not impair NATO's strength, which depends on German participation, or lead to a slackening of American interest in maintaining its commitment in Europe. British officials have recently indicated that they are satisfied with Tito's present relations with the West. * * * * 8. Hammarskjold prods Chou En-Jai on American airmen: UN secretary general Hammarskjold re- minded Chou En-lai in a telegram on 16 May that he had received no reply to his query of 23 April as to what he could do to facilitate the release of American 'airmen imprisoned in Communist China. The telegram empha- sized the importance of early action on this matter. Comment: HammarsW old told Ambassa- dor Lodge two weeks ago 11�w-Eitird-s oon tell Chou that, if there were no reply by 1 June, he would report to the UN that his mission had been a failure. Hammarskjold's 16 May telegram apparently did not set any such deadline. Peiping, in the interest of improving the atmosphere for Sino-American negotiations on current Chinese issues, has been expected to release some of the at least 55 Amer- icans detained in China. 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 9 TOP SECRET Approved for Release: 2019/09/17 C03194444 PI, .01 1, f, 11, ���� Approved for Release: 2019/09/17 C03194444 9. Comment on resignation of Dutch cabinet: The Dutch parliament is likely to be dissolved and new elections scheduled as a result of the resignation of the Catholic-Labor coalition cabinet follow- ing its defeat on the controversial rentbill. Although some at- tempt may be made to form another coalition to avoid new elec- tions�which no party desires this year--the controversy over the rent bill comes at the end of a long series of disagreements be- tween the coalition members. The queen is empowered to dissolve either one or both of the two chambers, with elections following within 40 days. The present cabinet would continue as a care- taker government. New elections would probably have little effect on the present political alignment. The two major parties, the Catholic and Labor Parties, are represented almost equally, but neither is likely to gain a parliamentary majority. However, as after the 1952 general elections, the process of forming a new government might be long drawn out. 18 May 55 CURRENT INTELLIGENCE BULLETIN Page 10 TOP SECRET Approved for Release: 2019/09/17 C03194444