CURRENT INTELLIGENCE BULLETIN - 1955/06/30

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03448313
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: June 30, 1955

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TOP SECRET /
30 June 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO 1::9
NO CHANGE IN CLASS.
DECLASSIFIED
CLASS. CHANGED TO: TS S C
NE.XT REVIEW DATE: 20 10
AUTH: HR 70-2
DATE: ii/Vc.50 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
99
3.3(h)(2)
3.5(c)
=FOP SECRET f
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SUMMARY
FAR EAST
1. Chiang Kai-shek agrees to release of Russian tanker crew
(page 3).
SOUTH ASIA
2. Afghan prime ministernaud may be removed (page 3).
3. Pakistan adherence to Turkish-Iraqi pact may be imminent
(page 4),
NEAR EAST - AFRICA
4. Report of North African gunrunning foreshadows new French
pressure for US support (page 4).
EASTERN EUROPE
5. USSR reported prepared to make "unheard-of sacrifices" to
reach agreement with Bonn (page 5).
* * * *
6. Indonesian ambassador impressed by remarks of Soviet leaders
(page 6).
30 June 55
THE FORMOSA STRAITS
(page 7)
* * * *
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FAR EAST
1. Chiang Kai-shek agrees to release of Russian tanker crew:
Chiang Kai-shek told the American
charg�n Taipei on 28 June he would
release the crew of the Soviet tanker
Tuapse in ten days or two weeks
Chiang
would make no commitment regarding release of the ship itself.
Comment: The Tuapse was seized by
the Nationalist navy off southern Formosa on 23 June 1954.
Chiang had previously told Ambassador Rankin that he would
offer to release the 40 crew members who wish to return to the
USSR in exchange for return of American airmen now held pris-
oner by the Chinese Communists. He has refused to release the
ship despite urging by his own Foreign Ministry that he do so.
SOUTH ASIA
2. Afghan prime minister Daud may be removed:�
Afghan prime minister Daud may be re-
moved within a few days as a result of
efforts made by the Afghan royal family
In co-operation with the Pakistani gov-
ernment. Shah Mahmud and Shah Wall,
powerful members of the royal family,
are aroused over the prime minister's
rejection of Pakistan's latest proposal
of 25 June for settlement of the quarrel
between the two countries.
30 June 55.
CURRENT INTELLIGENCE BULLETIN Page 3
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According to press reports of 28 and 29
June, Pakistan, presumably in compliance with Shah Mahmudb
request, is preparing to sever diplomatic relations and institute
a formal economic blockade of Afghanistan. Meanwhile, the Saudi
Arabian mediator announced in Karachi the failure of his media-
tion attempts.
3. Pakistan adherence to Turkish-Iraqi pact may be imminent:
Pakistani defense minister general
Mohammad Ayub Khan, who is now vis-
iting Turkey, has cabled Karachi recom-
mending prompt adherence by Pakistan
u r s raq pact, according to Ambassador Warren in
Ankara. Ayub has also informed Karachi that the Turks, Iraqis,
and British contemplate setting up a council in connection with
the pact immediately following Pakistan's adherence. Ambassa-
dor Warren states that Ayub's decision followed two sessions with
Turkish and Iraqi officials.
Comment: Ayub's action may pave the
way for Pakistan's early adherence to the pact, since the defense
minister was the chief advocate of delay until Karachi could be
sure that the United States would also join.
If, however, the Karachi government fails
to act before 7 July, when the Constituent Assembly is scheduled to
meet, Pakistani action on the pact may be indefinitely delayed.
NEAR EAST - AFRICA
4. Report of North African gunrunning foreshadows new French pres-
sure for US support:
British ambassador Jebb in Paris has
informed Ambassador Dillon that careful
investigation indicates gunrunning from
June 55 CURRENT INTELLIGENCE BULLETIN Page 4
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Libya to Algeria is taking place on a larger scale than the British
had previously supposed. The French government has been in-
formed of the British discovery.
Comment: Paris, which on 20 June sug-
gested high-level talks with Washington on mutual interests in
North Africa, will use such a report to redouble pressure on both
Washington and London for increased support on North African
problems.
In recent months the French government
has repeatedly charged American complicity in North African
nationalist activity. These allegations were largely based on re-
ports of gunrunning which Premier Faure's personal spokesman
admitted on 24 June to American officials were based on very
meager information supplied by anti-American elements.
EASTERN EUROPE
5. USSR reported prepared to make "unheard-of sacrifices" to reach
agreement with Bonn:
A Soviet official in East Berlin recently
stated that the USSR will make "unheard-
of sacrifices" to secure an agreement
with West Germany,
Possible concessions include "political with-
drawal," the sacrifice of top-level East German government offi-
cials, and "even the revision of the Oder-Neisse line." The offi-
cial added that the USSR wants relaxation in Europe "at any price."
Comment: These extr vagant statements
are similar to others oncerning Soviet
intentions toward Germany. The USSR may hope, by creating the
impression that it is willing to make great sacrifices, to convince
West Germans that they should yield on such key issues as elec-
tions and neutralization. There is little prospect, however, that
West Germany will make such concessions.
30 June 55 CURRENT INTELLIGENCE BULLETIN Page 5
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* * * *
6. Indonesian ambassador impressed by remarks of Soviet leaders:
Comment: The Indonesian ambassador,
although anti-Communist, has always tended to view Soviet ac-
tions favorably and is a strong adherent of Indonesia's "independ-
ent" foreign policy.
My statements indicating an apprecia-
tion of the Bandung conference would be most happily received
by the Indonesians, who regard the conference as a national tri-
umph in terms of proving their ability to conduct a major inter-
national gathering. They are eager to believe that Bandung has
genuinely contributed to a decrease in world tension.
30 June 55 CURRENT INTELLIGENCE BULLETIN Page 6
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WEEKLY SUMMARY
(23-29 June 1955)
THE FORMOSA STRAITS
Report of the IAC Current Intelligence Group
for_the Formosa Straits Problem
1. Two Chinese Communist air attacks on Nationalist
planes on 27 June broke the long lull in combat operations in
the area. In one of the attacks, Communist jet fighters made
their first appearance near Matsu.
In the first encounter, two Chinese Nationalist RT-33's
(jet trainers equipped for reconnaissance) on a mission in the Tai-
shan Island area were attacked by four Chinese Communist MIG's.
During the ensuring engagement, one Nationalist plane was shot
down. In the second encounter, two Chinese Communist MIG's
attacked a PBY of a Nationalist civil airline en route from Formosa
to Matsu, The PRY escaped with minor damage.
2. The first attempted night intercept by Chinese Commu-
nist jets in the Formosa Straits area was reported during the per-
iod.
3. The Chinese Communist navy has apparently stepped up
its training activity and logistic support in and around the Peiling
Peninsula area, immediately north of the Matsus, The training
appears to be of the amphibious type, involving minor naval vessels;
while the logistic efforts have involved chiefly junks and steamers
escorted by small patrol craft.
30 June 55 CURRENT INTELLIGENCE BULLETIN Page 7
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4. Completion of a branch line from the Hunan-Kwangsi
railway to Fort Bayard in the Luichou Peninsula, west of Canton,
has made available at least four and possibly five railway engi-
neer divisions, which may move to Fukien to work on the Kueichi-
Foochow railway and its Amoy branch line; one of the five may
already have moved to Fukien. Three such divisions have been
working on the Fukien rail lines, to which the Chinese Commu-
nists appear to have assigned a high priority. In announcing com-
pletion of the line to Fort Bayard, Peiping last week boasted that
it would facilitate the "liberation" of Formosa. The Communists
may intend to use Fort Bayard as a supply port to relieve strain
at Canton the only major port in southern China.
5. In his final interview with General Chase, Chiang
Kai-shek explained his reasons for overruling Chase in regard to
reinforcing Quemoy by one division� Chiang stated that he re-
garded the reinforcement as essential on military grounds in or-
der to sustain troop morale in the event of a Communist attack
against which the US did not intervene. The reinforcement, he
maintained, would convince the troops that they could successfully
defend the island even without adequate air and naval support. In
addition, Chiang stated that, from the political viewpoint, public
knowledge of American 'opposition to the reinforcement would lead
to the conclusion that another Tachen-like withdrawal might take
place. Chiang indicated that he did not propose to transfer the
division immecliately.
6. Soviet and Chinese Communist spokesmen have con-
tinued to endorse Chou En-lai's bid for direct Sino-American
negotiations, Peiping's recent comment has emphasized that
"the question now rests with the United States." Peiping appears
to be awaiting reports on the US attitude from intermediaries
Krishna Menon and U Nu.
7. consistent Soviet attention to the Formosa question
and the related question of Communist China's exclusion from the
United Nations suggests that the USSR will raise these issues at
the BIG Four talks. Soviet and Chinese Communist propaganda
has also identified a number of other outstanding Far Eastern
issues, and Soviet officials have mentioned the possibility of an
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international conference on such issues. The USSR at Geneva
may propose such a conference in addition to, or possibly in-
stead of, bilateral Sino-American talks restricted to Chinese
issues.
8. A summary of military developments in Communist
China during the period 26 May - 29 June is attached.
30 June 55 CURRENT INTELLIGENCE BULLETIN Page 9
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ANNEX
Following is a summary of significant military develop-
ments affecting the Formosa Straits area during the period
26 May - 29 June 1955.
Ground combat activity has continued to be slight and
insignificant in the area opposite Nationalist-held territory.
One and probably two Chinese Communist railway engineer divi-
sions moved into Fukien Province in May to work on the Foochow-
Kueichi rail line and possibly on the Amoy branch line. This
brings total railway engineer divisions in the Fukien area to
three and possibly four. The five Nationalist division in the Que-
moys have been brought to approximately full strength by the
arrival of organic artillery units; this move has increased ar-
tillery strength
The Chinese Communists continue their steady and rapid
progress on development of air facilities in the area immediately
opposite Formosa. Runways at Nantai, Lungtien and Swatow North-
east are now completed. The latter two are considered serviceable.
There has been no evidence yet of their being used, and construc-
tion continues on buildings, taxiways and revetments. Also, initial
evidence of rehabilitation work on the unserviceable World War II
airfield at Swatow has been received. Construction continues at
Lungchi and Chingyang airfields.
Transfer of BEAGLE (IL-28) jet light bombers to Manchuria
from the USSR continued, with 10 more of these aircraft received
in the past month. A total of 55 have been turned over to the Chi-
nese Communists since 26 March. These aircraft have been split
between a naval air unit near Tsingtao, and the air force divisions
at Peiping and Hangchovv. Final disposition of the approximately
100 BEAGLES of Soviet units withdrawing from the Port Arthur/
Dairen area is uncertain, although some, if not all, are believed
to have been turned over to Chinese units.
30 June 55 CURRENT INTELLIGENCE BULLETIN Page 10
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With the egception of the two Communist air attacks on
Chinese Nationalist planes on 27 June, air activity in the area
has been low for the month.
30 June 55
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FORMOSA STRAITS SITUATION
Primary roads
Secondary roads
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COMMUNIST AIRFIELD LEGEND
USABILITY
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* FIELDS NOT CON3IDERED CAPAECE OF
SUPPORTING SUSTAINED OPERATIONS
AT PRESENT
NATIONALIST AIRFIELD
DESIGNATIONS
PRIMARY: CONSIDERED MOST IMPORTANT IN AREA, WITH PREPARED
RUNWAY GENERALLY 5000 FEET OR LONGER.
SECONDARY: AUXILIARY OR EMERGENCY BASES. OR FIELDS OF LESSER
IMPORTANCE. RUNWAYS GENERALLY LESS THAN 5000 FEET.
CPERATIONAL: ACTIVE BASE FOR MILITARY & CIVILIAN AIRCRAFT.
SOME BASES USED BY PISTON TYPES MAY BE 4SABLE BYJETS.
SERVICEABLE: INACTIVE BASES CAPABLE OF USE BY AIRCRAFT
UNKNCMN: CURRENT STATUS UNDETERMINED.
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PRESENTATIONS DIVISION
SECRET
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