CURRENT INTELLIGENCE BULLETIN - 1955/07/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03448321
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: July 20, 1955

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3.3(h)(2)
3.5(c)
4/7/31/1:71/
20 July 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. '47
NO CHANGE IN CLASS.
[ I DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
AUTH: HR 70-2
DATE: ii,b1.41:[Q__ REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
103/47 /1/
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SUMMARY
GENERAL
1. Peiping willing to accept bilateral talks with US on ambassadorial
level (page 3).
2. Comment on Soviet-Viet Minh communiqu�page 4).
3. Portuguese prime minister incensed at Nehru's policy toward Goa
(page 5).
EASTERN E'UROPE
4. Additional Soviet jet bombers moved to East Germany (page 5).
SOUTHEAST ASIA
5. Concern over possible Communist disturbances in South Vietnam
reported (page 6).
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GENERAL
1. Peiping willing to accept bilateral talks with US on ambassadorial
I atm1.
The Peiping regime has agreed to a meet-
ing of American and Chinese Communist
representatives on the ambassadorial level
in Geneva and has proposed 21 July for the
9arst meeting,
These Geneva talks are to be held
with a view to facilitating the settlement of "the question of civil-
ian detainees" in Communist China and the United States "and to
discuss other questions at issue."
Comment: Chou's willingness to raise the
level and expand the scope of the consular-level talks under way in
Geneva for the past year reflects his hope of gaining prestige, of
obtaining a more comprehensive statement of the American posi-
tion on Chinese issues, and of persuading the Asian "neutrals"
and the major Western powprs that he is continuing to seek a peace-
ful settlement of those issues.
These talks may quickly run into trouble
on the question of their scope. Peiping has frequently indicated
that it wishes to take up major matters, such as the American com-
mitment to the defense of Formosa, rather than to confine the talks
to lesser questions. Chou may plan to take a conciliatory line on
the smaller matters in the hope of arranging formal negotiations
on the larger.
The Chinese Communists have recently
been calling for an international conference on Far Eastern issues
as well as for direct talks with the United States. Peiping may well
believe that such a conference would offer the best opportunity for
bringing political pressure to bear on the American position.
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2. Comment on Soviet-Viet Minh communique:
The Soviet-Viet Minh communiqu�s-
sued on 18 July just prior to the depar-
ture of Ho CM Minh from Moscow gen-
erally toilows the f�mat of the Sino-Viet Minh communique of
7 July. Emphasis is placed on the happy state of Sino-Soviet-
Viet Minh solidarity and the importance of unifying Vietnam "with-
in the time limit provided for in the Geneva agreement."
The communiqu�ncludes the announce-
ment of a Soviet economic aid program amounting to 400,000,000
rubles--$100,000,000 at the official rate--which is less than a
third of the aid promised by the Chinese on 7 July.
The new aid is to be used to raise the
standard of living and rehabilitate the economy of North Vietnam,
including the development of 25 "industrial and public utilities,� and
for. the training of technical specialists in the USSR. The Chinese
program is aimed primarily at improving Vietnamese transporta-
tion and communications facilities. As in the case of North Korea,
the Soviet Union has thus assumed responsibility for handling the
more complex problems of rehabilitating the economy of North
Vietnam.
The communiqu�in contrast with the
Sino-Viet Minh declaration, does not contain any virulent attacks
on the United States.
Although one paragraph is devoted to a
denunciation of the Manila pact and criticizes "some foreign powers"
for interfering in the internal affairs of South Vietnam, Laos and
Cambodia, the United States is not specifically mentioned. This
difference in attitude, also reflected in recent propaganda, appar-
ently springs from the USSR's desire to appear conciliatory during
the summit conference. -Concurred in by ORR)
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,4100,
3. Portuguese prime minister incensed at Nehru's policy toward Goa:
Prime Minister Salazar informed Ambassa-
dor Bonb right on 16 July that although he
would do his best to avoid using force to
repel Indian agitators entering Goa, For-
ugue e roops wou fire on the Indian passive resistance intruders
If necessary. He said Nehru wanted martyrs in order to justify
Indian police action.
Salazar spoke bitterly of the way many
people encouraged the false impression of Nehru as an "impartial
mediator" in the East-West struggle. He hoped that as a result
of Portugal's firm stand "the mask of peace would be torn from
Nehru," leaving him "exposed for what he is, a living lie."
Comment: Public pressure is mounting
in India for more forceful action against Goa. There are plans
for a passive resistance march on 15 August, the anniversary of
Indian independence. While India is unlikely at this time to try
to take over Goa, a major incident might jeopardize its aspirations
to mediate on such international questions as Formosa and Indo-
china.
Nehru's recent talk with Pope Pius on
the Goan issue is being successfully used in the Indian press as
anti-Portuguese propaganda.
EASTERN EUROPE
4. Additional Soviet jet bombers moved to East Germany:
The transfer of a Soviet jet light bomber
unit from the western USSR to the Soviet
zone of Germany has been indicated by
incoming rail shipments and the arrival
of a minimum of 24 aircraft at Welzow
in southeastern Germany on 18 July.
'The number of aircraft involved to date
and the scale of logistical support indi-
cate that a move of at least regi
proportions is now in progress.
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Other evidence suggests that the 18 July
flights are a permanent reinforcement. This increase in bomber
strength, together with the continued improvement and construc-
tion of airfields, the recent replacement of FAGOTS' (MIG-15's)
with VITFACIIS (1/1117,-171s),
indicate continuation of a program to increase
the size and capabilities of the Soviet air force in East Germany.
SOUTHEAST ASIA
5. Concern over possible Communist disturbances in South Vietnam
reported:
The American embassy in Saigon reports
that local French and BritiJh circles are
exhibiting nervousness regarding possible
Communist reaction to Premier Diem's
on a ietnam elections. The counselor of the British
embassy is of the opinion that while it is still highly unlikely, an
all-out Viet Minh attack cannot be completely discounted. The
French claim to have evidence that the Viet Minh is effectively
stirring up the countryside and cited a recent instance when a French
army patrol came across an encamped Viet Minh armed unit, "with
flag raised," not far from Saigon.
The American embassy takes the view that
the prospects for north-south negotiations regarding elections are
"more theoretical than real" as a result of Diem's statement. It
feels, therefore, that Communist disturbances in South Vietnam
are now "within the realm of imminent popsibilities�"
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Comment: There have been Commu-
nist threats of trouble in South Vietnam if pre-election consul-
ta,tions did not get under way on 20 July. Diem's declaration
has been strongly denounced in a broadcast from Hanoi on 18
July which accused the United States and France as well as Diem
of sabotaging the Geneva agreement and of planning to use force
to unite Vietnam.
The Viet Minh is believed to have as
many as 10,000 troops scattered in small bands throughout South
Vietnam as well as a considerable number of sympathizers. These
forces could conduct widespread guerrilla warfare, but could, not
overthrow the Diem regime by their own efforts.
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