CURRENT INTELLIGENCE BULLETIN - 1955/05/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03194448
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: May 21, 1955

Approved for Release: 2019/09/17 CO3194448,
TOP SECRET
/
�
�%/
gefffcee -Top-sEcRET
21 May 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO
NO CHANGE IN CLASS.
I.-I DECLASSIFIED
CLASS. CHANGED TO: TS S 0
NEXT REVIEW DATE: 201.0
AUTH: HR 70-2
DATE: .911/(50._ REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
94
Approved for Release: 2019/09/17 C03194448
Approved for Release: 2019/09/17 C03194448
%./ b., Lek.. 7"1.5.4 I
SUMMARY
GENERAL
1. USSR may offer Yugoslavia "atomic energy" and seek joint state-
ment on German neutrality and disarmament (page 3).
2. USSR apparently made large purchases of copper in Western
Europe recently (page 3).
3.
SOUTHEAST ASIA
4. Burmese defense minister reportedly providing arms to Commu-
nists (page 5).
SOUTH ASIA
5. Pakistan conditionally agrees to five-nation investigation of Pesha-
war incident (page 5).
WESTERN EUROPE
6. Italy concerned over possibility of Austria's admission to UN
(page 6).
7. Bonn diplomat suggests bluffing Moscow on German neutrality
(page 7).
LATIN AMERICA
8. Ouster of Ecuadoran president reported imminent (page 7).
* * * *
21 May 55
CURRENT INTELLIGENCE BULLETIN Page 2
Trip .cFCR6T
Approved for Release: 2019/09/17 C03194448
DtITcrrnPT
Approved for Release: 2019/09/17 C03194448
Noire
GENERAL
1. USSR may offer Yugoslavia "atomic energy" and seek joint state-
ment on German neutrality and disarmament:
The USSR will offer Yugoslavia "atomic
energy" for peaceful purposes during the
Belgrade conference and will endeavor to
obtain Yugoslav approval in principle for
a neutral Germany and for the latest Soviet disarmament proposals.
Comment: In addition to the announced
Soviet intention of building atomic reactors in countries of the
&no-Soviet bloc, the USSR has hinted willingness to lend similar
assistance to non-Orbit countries� Such an offer would appeal to
the Yugoslays, who, claiming that atomic energy will usher in the
age of Socialism, strongly subscribe to the principle of interna-
tional co-operation on atomic matters as an aid to their own pro-
gram.
Belgrade, while never fully explicit on
the subject, has in recent months strongly favored a reunified, un-
committed Germany. Likewise, it has reacted favorably to the
latest Soviet moves on disarmament. The Soviet and Yugoslav
leaders can probably find enough common ground on both subjects
to issue statements of agreement on basic principles.
(Concurred in by OSI)
2. USSR apparently made large purchases of copper in Western
Europe recently:
T. T. Ivanov, a leading official of a
Soviet foreign trade agency, told
that the
USSR no longer had any interest in buy-
ing copper because of purchases "this past week" in Europe.
21 May 55 CURRENT INTELLIGENCE BULLETIN Page 3
Approved for Release: 2019/09/17 C03194448
Approved for Release: 2019/019/17 C03194448
Comment: This information suggests
that Soviet trade officials, fearing a tightening of Western export
controls, have contracted for large quantities of copper very re-
cently. The Soviet Union has taken advantage of the relaxation
in controls last August to make substantial purchases of copper
wire in Western Europe. (Concurred in by ORR)
3,
21 May 55 CURRENT INTELLIGENCE BULLETIN Page 4
;cal:L.4==z
Approved for Release: 2019/09/17 C03194448
Approved�for Rerease: 2019/09/17 C03194448
SOUTHEAST ASIA
4. Burmese defense minister reportedly providing arms to Commu-
nists:
Comment: Ba Swe exhibited strong pro-
Communist inclinations before he-became a cabinet minister in
April 1952, but since his assumption of the defense post, the
army has continued its campaign against the Communists. The
defense minister and his family have often been rumored to be
engaged in various profitable transactions with the insurgents,
and this report would appear to lend substance to these charges.
SOUTH ASIA
5. Pakistan conditionally agrees to five-nation investigation of Pesha-
war, Incident:
A senior official of the Pakistani Foreign
Ministry told Ambassador Hildreth on
19 May that although Pakistan had rejected
Saudi mediation efforts, it would neverthe-
less agree to investigation of the Peshawar incident of 1 April by
Egypt, Saudi Arabia, Turkey, Iraq and Iran if Afghanistan would
first make adequate amends for the Kabul outrages of 30 March.
'The official, who said Pakistan would abide
by the recommendations of this group, said Egypt and probably
Saudi Arabia would favor Afghanistan while Turkey, Iraq, and
maybe Iran would side with Pakistan.
21 May 55 CURRENT INTELLIGENCE BULLETIN Page 5
Approved for Release: /019/09/17 C03194448
Approved for Release: 2019/09/17 C03194448
Comment: The Pakistanis are apparently
confident that Turkey) Iraq, and Iran will produce a three-to-two
decision in their favor on the Peshawar incident. Such a decision
would serve to re-emphasize whatever prior Afghan admission of
guilt might have been made regarding the Kabul affair and to inten-
sify the pressure on the Afghan government to remove Prime
Minister Daud or give up agitation on the Pushtoonistan issue.
WESTERN EUROPE
6. Italy concerned over possibility of Austria admission to UN:
The Italian UN observer told Ambassador
Lodge on 18 May that he believed it would
create a very bad impression in Italy if
Austria were admitted to the United Na-
tions and Italy were not.
Lodge comments that there would be a
setback to Communism in Italy if the USSR vetoed Italy b admission
to the UN after approving that of Austria.
Comment: The Italian peace treaty and
the new Austrian state treaty both affirm the desirability of UN
membership for these countries. UN membership for each has
been vetoed by the USSR.
Ambassador Thompson in Vienna re-
ported on 18 May that Soviet officials had indicated to the Austrians
that they would not treat Austria b application for UN membership
any differently from other applications�that is, only as part of
a "package" deal. The USSR may propose Austrian UN member-
ship as part of a package similar to its 1953 proposal which called
for the simultaneous admission to the UN of five countries whose
peace treaties favored such admission, namely, Bulgaria, Hungary,
Rumania) Finland, and Italy.
21 May 55 CURRENT INTELLIGENCE BULLETIN' Page 6
Tep-sEERET
Approved for Release: 2019/09/17 C03194448
Approved for Release: 2019/09/17 C03194448
Anse
7. Bonn diplomat suggest bluffing Moscow on German neutrality:
The newly arrived West German am-
bassador in London, Hans von Herwarth,
told the American embassy on 18 May
that in his opinion the West, confronted
by more flexible Soviet tactics, should seize the initiative and
run the risk of offering German unification even on an alliance-
free basis. He considered that such a bold proposal would stump
Moscow, which would "never" accept it, lest a unified Germany
be as much tied to the West as Sweden, if not more so.
Herwarth, an expert on Soviet affairs,
also said that West Germany should proceed at "full steam" to
create its 12 army divisions, because Soviet objectives remain
unchanged.
He maintained that the Germans must
be made to realize that the real issue is not the division of
Germany, but of Europe. He thought that Soviet demands for
the withdrawal of American forces from Germany should be met
with insistence that the USSR withdraw its troops from the Satel-
lites.
Comment: Chancellor Adenauer too
has been talking of the necessity for more "flexibility" in dealing
with the USSR. The "flexibility" Bonn has in mind, however, ap-
parently would not go beyond an offer to set up a collective security
system to which the Soviet bloc countries could belong. Adenauer
reportedly is telling his ambassadors to take a rigid position
against German neutrality.
LATIN AMERICA
8. Ouster of Ecuadoran president reported imminent:
Supporters of former Ecuadoran defense
minister Varea Donoso are planning to
overthrow President Velasco in the next
few weeks and have the support of virtually
oran army unit,
every Ecua
21 May 55
CURRENT INTELLIGENCE BULLETIN Page 7
�T�t9P-AXP-i=2"
Approved for Release: 2019/09/17 C03194448
rr,r CI ri Art ill I-1'T
Approved for Release: 2019/09/17 C03194448
vue
The plotters allegedly' are waiting for the president to discredit
himself by assuming dictatorial powers but will not wait beyond
5 June.
Comment: Other reports have suggested
that Velasco plans either to set up a dictatorship or to hold a
rigged plebiscite to extend his term. Should Velasco attempt such
action, a coup to oust him would be probable. He has twice be-
fore been forced from the presidency and into exile because of
dictatorial methods.
During his current term, however, which
would normally expire in September 1956, Velasco has conditioned
virtually every move on the consent of the military and apparently
has kept most of the armed forces on his side.
21 May 55 CURRENT INTELLIGENCE BULLETIN Page 8
Approved for Release: 2019/09/17 C03194448