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September 20, 2019
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September 26, 2019
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May 24, 1955
PDF icon CURRENT INTELLIGENCE BULL[15722759].pdf187.48 KB
FM/ tie Approved for Release: 2019/09/17 C03194453, :4 TOP SECRET 24 May 1955 Copy No. 94 CURRENT INTELLIGENCE BULLETIN DOCUMENT NO. 4/ NO CHANGE IN CLASS. El DECLASSIFIED CLASS. CHANGED TO: TS S C NEXT REVIEW DATE: ,a0/C7 AUTH: HR 70-2 DATE: REVIEWER Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY to7,3# z TOP SECRET 3.3(h)(2) 3.5(c) Approved for Release: 2019/09/17 C03194453 TOP RIT � Approved for Release: 2019/09/17 C03194453 Nmpol FAR EAST 1. Japan reported abandoning efforts to get into GATT: Comment: Japan has been attempting un- successfully for several years; American assistance, to become a full member of GATT.- Only last week the Foreign Ministry told the embassy that the cabinet would probably approve tariff agree- ments negotiated with the United States and other countries in con- nection with Japan's accession to GATT. The Japanese, however, have felt discrim- inated against and may now feel that the disadvantages of member- ship in GATT outweigh the advantages. Much of Japan's favorable export trade of last year is attributable to subsidies and other pro- motional schemes which would be prohibited under GATT. SOUTHEAST ASIA 2. 24 May 55 CURRENT INTELLIGENCE BULLETIN Page s.drt /-8 rs Approved for Release: 2019/09/17 C03194453 Approved for Release: 2019/09/17 C03194453 EASTERN EUROPE 3. Comment on announced reduction in Yugoslav army: President Tito disclosed in a speech on 21 May that "a certain number" of Yugo- slav army personnel are to be trans- ferred to other work " ause the situation such that it is unnecerytcr1� so many men in the army." Wadde�that if pee is lasting, releases will be even greater. ugoslav leaders have repeatally held that world tensions are lessening, but this is the first statement disclosing that Belgrade feels the situation permits a reduction in its military strength. Maintenance of a 300,000-man army has been justified in the past primarily on the grounds of a con- tinued threat of aggression from the East. Tito b statements may also indicate that Yugoslavia intends to accept a "nonaggression" pact, which the USSR may offer during the Belgrade talks. While it is very unlikely that the Yugo- slays would accept an invitation to adhere to the Eastern European 24 May 55 CURRENT INTELLIGENCE BULLETIN Page 4 TOP SECRET Approved for Release: 2019/09/17 C03194453 Approved for Release: 2019/09/17 C03194453 defense pact, Belgrade may believe that a "nonaggression" pact with the USSR and eventually with the Satellites could be rational- ized to the satisfaction of the West and would go a long way toward relaxing world tensions. 4. Turks uneasy over forthcoming Yugoslav-Soviet meeting: The Turkish ambassador in Belgrade told the Yugoslav foreign minister on 20 May that Ankara is concerned over the effect of the approaching Soviet- Yugoslav conference in the light of present Soviet policy and the divergence of Yugoslav-Turkish views on the development of the Balkan alliance. According to the American embassy in Belgrade, the Turkish ambassador warned that these divergencies could have a bad effect, and that Belgrade's desire to probe Soviet intentions and relax tension should not shake Balkan military co- operation. The ambassador pointed out that Moscow sought high-level contacts for their maximum propaganda value and to create the impression that Yugoslavia was returning to the Soviet system. He emphasized that Belgrade should recognize the danger of associating with Soviet policy and warned that the communiqud after the meeting must not become a trump card for Moscow. Comment: Despite Tito's assurances to Premier Menderes during his visit to Belgrade, Turkey continues to fear that Yugoslavia might sacrifice the Balkan military alli- ance for Soviet promises. Tito's recently announced intention to decrease Yugoslaviab military strength will also increase Turkish apprehensions. American officials in Athens report the Greek reaction to the Yugoslav-Soviet meeting to be calm but guarded. In contrast to Ankara, Athens has been relatively satis- fied with Yugoslavia's co-operation in the Balkan alliance. 24 May 55 CURRENT INTELLIGENCE BULLETIN Page 5 TOP SECRET Approved for Release: 2019/09/17 C03194453 TnP SPeRFT Approved for Release: 2019/09/17 C03194453 4100, IP* WESTERN EUROPE 5. Gronchi criticizes present Italian government coalition: Italian president Gronchi told Ambassa- dor Luce on 21 May that a government "opening to the left" is necessary now, but that he meant the "economic" rather t n the "po ca e t. He said that the time has not come to bring the Nenni Socialists into the government, but that it is desirable to create conditions in which the Nenni Socialists and those who voted for them could join the democratic forces. Gronchi said that the present govern-, ment coalition is not suited to the goals he has in mind, since the Liberals are blocking the reform program which was the only basis on which to fight Communism. He said that if his views are not accepted by the Christian Democratic Party in June, there would then be "a new government situation." � Comment: Gronchi apparently wants the parliament to be presented with a sweeping economic reform program which the Nenni Socialists would be forced to support or belie their claims that they are defenders of the underprivi- leged. The Nenni Socialists have more than four times the rep- resentation of the Liberals in the Chamber of Deputies, and their support could give the Christian Democrats a majority big enough to carry out long overdue reforms. As president, Gronchi's own powers to push through such a program are limited. His views, however, reflect the increasing sentiment in the country, and especially within the Christian Democratic Party, that such a program is needed. Christian Democratic Budget Minister Vanoni, author of an ambitious ten-year economic plan, which the Nenni Social- ists support, is Gronchi's most likely candidate for premier if the Scelba government falls. 24 May 55 CURRENT INTELLIGENCE BULLETIN Page 6 nirv,rirb rirt, Approved for Release: 2019/09/17 C03194453