CURRENT INTELLIGENCE BULLETIN - 1955/06/26

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03448316
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: June 26, 1955

.Approved for Release.: 19/09/,17
26 June 1955
Copy No. 99
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO v
NO CHANGE IN CLASS.
E DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 2 01_0
AUTH: HR 70-2
DATE: Wi: 12_ REVIEWER: _
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
,
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i Lit ELACC, 1
New N.409
SUMMARY
FAR EAST
1. South Korean defense minister being promoted as successor to
Rhee (page 3).
SOUTHEAST ASIA
2. Chou En-lai urges Nehru to throw weight against US-Cambodian
military aid agreement (page 3).
3. British concerned over impact of Malayan Communists' peace
proposal (page 4).
NEAR EAST - AFRICA
4. Syrian army officers plan action against anti-Western elements
(page 5).
EASTERN EUROPE
5. Anti-American trial in Hungary appears imminent (page 6).
WESTERN EUROPE
6. Embassy Paris sees Morocco as only issue likely to overthrow
Faure (page 7).
LATIN AMERICA
7. Peron apparently accepting army's demands (page 7).
* * * *
8. France ahead of schedule in withdrawing troops from Indochina
(page 8).
AL NI. le Ile
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NO,
FAR EAST
1. South Korean defense minister being promoted as successor to
Rhee:
Plans are in operation to promote the
selection of South Korean minister of
defense Sohn Won-il as President Rhee's
unning mate in the 1956 election, ac-
cor o Army Chief of Staff Chong Il-kwon. The plans, which
were developed by Sohn, Chong, and Yi Ki-pung, head of Rhee's
Liberal Party, have been presented to Rhee, whose reaction
was "not unfavorable."
Comment: Rhee's age and physical
condition make it likely that the vice president elected in 1956
for the next four years will be called on to serve out Rhee's term.
Rhee's past behavior suggests that he may choose someone like
the aged incumbent, Ham Tae-yong, who would not be in a posi-
tion to challenge his authority.
Army Chief of Staff Chong has strong
presidential aspirations, and Yi Ki-pung is probably the leading
political contender. They may have decided to support Sohn,
who has been out of favor with Rhee for several months, in or-
der to avoid too open a bid for power at this stage.
Sohn, now in Washington for aid dis-
cussions, has been generally co-operative with American offi-
cials. He is an able administrator, but has little personal polit-
ical following.
SOUTHEAST ASIA
2. Chou En-lai urges Nehru to throw weight against US-Cambodian
military aid agreement:
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Comment: The Indian chairman of
the commission is now awaiting New Delhi's instructions on how
his deciding vote should be cast in the commission's current
discussion of the aid agreement. Chou's demarche to Nehru will
serve to buttress Indian opposition to the agreement, which is
based more on general principle than on the grounds of a Geneva
violation.
In addition, it appears likely that U Nu
will cite the agreement� during his Washington visit, as an im-
portant source of international tension.
3. British concerned over impact of Malayan Communists' peace
proposal:
The British authorities in Malaya are
publicly treating the Communists' re-
cent offer to negotiate a settlement of
the seven-year-old terrorist campaign
as a sign of weakness, but privately
they are dismayed by it. The British consider the proposal,
which would appeal to a large number of Malayans, admirably
timed to promote the Communists' objective of dividing the coun-
try before its first elections, on 27 July, and recognize that
their rebuff of the bid can be used by the Communists to promote
anti-British sentiment.
Comment: The Communists' proposal
was contained in a letter sent to several Malayan organizations
from the outlawed Malayan Communist Party's headquarters in
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southern Thailand. It asked for an end to the war and the emer-
gency regulations, to be followed by a round-table conference
of all parties and general elections in a "democratic peaceful
atmosphere!'
The British secured consent for their
rejection of the offer from a representative of the Alliance, a
combined Malay-Chinese party which is the Malaya Federation's
largest and is expected to win the July elections.. Since then,
leaders of the Alliance--apparently sensing popular reaction
have announced that they would be willing to work out peace
terms with the Communists.
NEAR EAST - AFRICA
4. Syrian army officers plan action against anti-Western elements:
10V lay11411 41 my UiiiCtIS p1411 111 dIJOUL
a week to give Prime Minister Asali an
ultimatum to remove Foreign Minister
Azm and certain other ministers from the cabinet. The offi-
cers, ranging in rank from captain through brigadier general,
also plan to demand the dismissal of Chief of Staff Shawkat Shuqayr.
Should Asali refuse, they would assume temporary control of the
country.
The group is said to oppose the pro-
jected pact with Egypt and Saudi Arabia, and to wish to strip the
leftist Arab Socialist-Resurrectionist Party of its power in favor
of closer relations with the West and Iraq. Ambassador Moose
believes that these plans may be the cause of recent indications
that the chief of staff is considering withdrawing his support from
Foreign Minister Azm,
Comment: A coup of this kind, if at-
tempted, would appear to have a fair chance of success. Azm,
the real leader of the cabinet, has been out of the country since
12 June, and there are indications that the Arab Socialist fac-
tion in the army has not recovered from the assassination of its
leader last April. These factors, together with the apparent
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Noir
defection of the opportunistic chief of staff and the decreasing
warmth in Cairo's attitude, toward the Asali cabinet, leave it in
a seriously weakened position.
While such a coup would orient Syria
more toward the West, there is little prospect that the country's
internal stability would be much enhanced.
EASTERN EUROPE
5. Anti-American trial in Hungary appears imminent:
The American legation in Budapest is
convinced that a "show trial" of a
Hungarian employee of the Associated
Press in Budapest is imminent, and
at it win involve the legation. Recently arrested local em-
ployees of the legation will provide the "supporting cast" for such
an action. The legation reports that the last regular Hungarian
employee of the USIS news bulletin section was arrested on
23 June.
Comment: A trial implicating the le-
gation, while obviously designerio warn the Hungarian people of
the dangers of contacting American representatives, would be
aimed primarily at justifying the retention of Soviet troops in
Hungary because of the danger of American interference in in-
ternal affairs.
In late May the legation reported that
there had been a sharp increase in the general use of terror
and intimidation tactics by the Hungarian security police, par-
ticularly against those local citizens who visited the legation to
receive news bulletins. Both the terror tactics and an intense
anti-American campaign which has been in effect for several
months are also probably considered necessary by the regime
to strengthen its internal control in the face of widespread pop-
ular and party disaffection.
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*two'
WESTERN EUROPE
6. Embassy Paris sees Morocco as only issue likely to overthrow
Faure:
The American embassy in Paris be-
lieves that Morocco is the only issue
which might cause Premier Faure's
downfall before the French assembly
recesses on 15 August. The embassy
points out, however, that Faure is unlikely to present any Moroc-
can program this summer that would cause the overthrow of his
government. A slight additional delay in instituting reforms in
Morocco could be justified on the grounds that Resident General
Grandval will be new at the post when he takes over in about two
weeks.
Comment: The situation in Morocco
may deteriorate to such an extent as to force Faure to take
stronger steps than he now intends, thus precipitating an attack
on him from Socialist and other left-of-center forces in the
assembly. Failure by Faure to gain command of the Algerian
situation might also provoke sharp parliamentary criticism.
LATIN AMERICA
7. Peron apparently accepting army's demands:
The military junta was dissolved on
22 June following President Peron's
agreement to demands resulting from
army-navy negotiations.
Army offi-
cials agreed to allow Peron time to pro-
ceed alone in fulfilling these demands
but do not trust him fully and continue
in control of the state of siege
The reported demands require Peron to:
(1) obtain the resignations of all cabinet ministers; (2) prosecute
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legally all criminals; (3) see that no punishment is meted out to
navy men; (4) purge the General Confederation of Labor; (5) drop
the church-state issue. and 6 rovide the nay with m r mmu-
nition and petroleum. he
resignation of all cabine minis ers on une in.ica es that
Peron is responding to army pressure.
Former foreign minister Remorino de-
nied to Ambassador Nufer on 23 June that the army had demanded
cabinet changes and said that any impending changes would re-
flect merely an intracabinet struggle. He added that Minister of
the Army Lucero's influence over Peron was no greater than his
and that rumors of a military junta were unfounded. Nufer com-
ments that this is obviously an underestimate of the army's in-
fluence.
Comment: Remorino's remarks reflect
the same line stressed in government communiqu�designed to
convince the public that the situation has returned to normal and
that the army has returned to its regular duties.
the military is trying to conceal its
power over Peron in order to avoid protests from pro-Peron
civilian and/or military elements.
8. France ahead of schedule in withdrawing troops from Indochina:
General Guillaume, who has just com-
pleted a four-day inspection tour of
the French military establishment in
Vietnam, told Ambassador Reinhardt
in Saigon that French forces in Indochina have been reduced to
55,000 men. He also stated the sentiment of many French offi-
cials in favor of complete and immediate evacuation of all French
troops from Indochina was being strengthened by France's re-
quirements in North Africa. The cost of maintaining the French
Expeditionary Corps would also be an important factor in deter-
mining the government's final decision.
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Nor
Ambassador Reinhardt points out that
the general gave him the impression that he was inclined to
recommend that about 50,000 men be retained for the next 18
months.
Comment: The French have been .
threatening for some time to withdraw their expeditionary force.
This is the first indication, however, that their strength is be-
low the 75,000 men the French government had planned to main-
tain in Indochina until 1 July.
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