RECOMMEND THAT AT THE OVERSEAS WRITERS YOU GIVE A BRIEF ONCE-OVER OF THE WORLD SITUATION, STRESSING MEXICO, GUATEMALA, PARAGUAY, PERU, AND THE REST OF CENTRAL AND SOUTH AMERICA, THEN THE U.S.S.R. AND EASTERN EUROPE, FOLLOWED BY WESTERN EURO

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73-00475R000400750011-0
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: May 20, 2014
• Sequence Number: 11
• Publication Date: May 11, 1954
• Content Type: MEMO

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,ft.Noti.t. 6,
11 May 1954
MEMORANDUM FOR THE DIRECTOR:
Recommend that at the Over a Wri ere you give a brief once-over
of the world situation, stressing Me co, Guatemala, Paraguay, Peru, and
the rest of Central And South America, then the U.S.S.R. and Eastern
Europe, followed by Western Europe and the Near East, and then the Far
East.
Indochina, of course, is the most interesting and hottest situation
and the one on which you will receive most questioning, particularly as to
whether there are in fact Chinese Communist forces engaged in combat in
Indochina and whether there were any at Dien Bien Phu; also the Navarre
plan, the political and psychological effect of the loss of Dien Bien Phu,
the possibility of a ten-nation Southeast Asian pact with the United States
the strongest member, and whether or not our intelligence on Dien Bien Phu
was inaccurate, particularly in view of the statement of General Smith
several weeks ago that while the Communists were gaining real estate, Dien
Bien Phu would stand.
Russia, of course, continues the over-all nation of particular interest;
and its difficulties regarding consumer goods, the lure of its East-West
trade offers, its agriculture' difficulties, the growing importance of
KhrushcheT, the howing list of defectors, and the whereabouts of Burgess
and MacLean are of particular interest, coming from you as the head of CIA.
The question of newspapers being subject to the penalties of th
Espionage Act came up at the A.S.N.E. meeting in Washington on Friday:,
April 16. The EDITOR AND PUBLISHER has given it editorial comment baeanse
no newspaper published anything on it. I think it a vital thing for you
to take up because I am sure you are as much opposed to censorship as is
anyone connected with the press; and yet there is no individual or office
in the government now that is manned by one of newspaper and security
training who could give guidance to the press when requested on matters
regarding security that worry them. A nice balance is needed in such a
case so the public interest gets a break as well as public security. I
am attaching hereto a report by Robert Brown in the EDITOR AND PUBLISHER
with a quotation from the law, and also the editorial for your informa-
tion. Also attached are some ideas on Indochina, Russia, etc.
Enclosures
,ST2C?17.
STANLEY J. GROGAN
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MEMORANDUM
INDO-CHINA
may 1954
Indo.China is, in President Eisenhoweris words, the cork in the bottle.
Should it fall to the Communists they will have a large opportunity to.
overrun the whole of Southeast Asia, eviving the insurrection in Malaya,
spreading into Indonesia and the Indian Oeean area right on to the shores
of Anstral4e:4in such case there ie no queetion as to what Great Britain
would have to do to protect Malaya.ihritain would have to fight..4Vthe '
lerv
free pomrs then would undoubtedly be unitedAnd the Chinese Communiets
in all probability would be involved against us.cftuch a condition would
not necessarily mean a third World War any more than Korea did. The threat
? .
of a world war, however, would be there:4'1f Geneva does not produce a
compromise for Indo-China between ltctory and defeat a most serious situation
will confront the free powers as well as the Communist aggressors. In such
a case you do not resist and you lose the war or you do resist and by victory
you win the war.
Wt4.41.44.41.-.
1 -Rua eta is always the enigma. What will she ? It appears right now
that she will go to the very brink of a World, War but she will not
deliberately provoke one as she is not rea4y right now for such a conflao.
gration.40ver the years the Russians regardless of their type of government
have followed the same line. Lord Palmereten in 1839 made a remark about
Russia which is as true of the Soviet Government today as it was over 100
years ego of the Czarist Government. Let me read to you Palmerston's remarki
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"Russia does not, I believe, wish to go to war with us, but
is always trying to push on just to the extrane point of encroach-
ment and aggression to which she may be allowed to go without war.
Sho then halts to take breath and waits till people are looking
another way to make another step or two forward."
Soviet tactics change but the Soviet long-term policy does not change.
a-Right now the Russians are having a propaganda sprat? offering :Improved trade
1;2, 444.4
between East and West. AThere is at shortage oain and timber in
Russia today. Russia has a
-A
to dividethe Allies is epeaking of increased trade not only with the Soviet
on the Genova Conterence;asean an effort
but with its European satellites.IChina is rarely mentioned and that brings
up the first error in discussing Soviet.European trade The Soviet-Chinese
bloc Ix A monolithic integration. It is a closed economy society and when
you trade with any part of it you are trading with the whole Communist bloc.
It is not just a commercial matter, it is a politicaltpatter as well and
touches on the security of the free world. Russia is trying hard to improve
7taed.?0--
its internal supply og goods and food. Communist ChinaiP--4-4-"-*,gQtkeaatesd
heavy equipment and industry to modernize its armed forces and equip these
forces. Three-fourths of China's trade is toward the Soviet bloc. The
coal and raw materials that China formerly exported to Japan are now being
used in Chinale own growing 5rcuetry. Trade with totalitarian nations
can-never be separated from pities because the totalitarian nation is a
major political weapon.
Russia does not have a-Battle act.becetec it does not need one. Tho
Russians do not need to impose -embargo or controls for the very factual
reason that the entire trade iti controlled by the State and anything that
is exported to the West gets a specific approval.
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. 3 .
So any4magWmmmmft-trade that is done with the Soviet Union is also
being done with the Chinese Communist government indirectly if not directly.
The battle for grain is very important in Russia today. The Kremlin
is =:=Lver the poor state of agricultural production and is offering
a new policy of incentives to the peasants through tax relief and higher
prices. No loner does Khrtknev say that the bread problem has been
solved. He now urges the peasants to improve their acreage Sox grain and
other fodder so that the livestock
eZege...dorie,iL
In talking -with a newspaper 3oup as important as this one I believe
it my duty to state that through the American press--by this I mean all media
of_public communication-.through Congressional hearings and through govern.
mental press releases we tell the Russians too nuch, I stand with Thomas
Jefferson that the freedom of the press is the great bulwark of an. liberty
and if there is restraint all liberty fai3a
For more than 160 years our people have enjoyed a free press. We have
not been under a government controlled press or a Church controlled press and
have had the liberty to worship God as we see fit and to express our views
on any subject orally or in writing as we see fit.
But while most of the press mAy be blameless ihdreinlstaya oneae,..
security level the possibility that some owners and publishers might abuse
the freedom. iiiiie-are I am sure disreputable newspapers just as there are
dishonest merchants, grafting public officers and traitors in aid out of
cued_
Govermment. But the great great majority of our people es.,the great great
majority of our neeepapere, rodioe, etc. are hcnest and do not abuse the
privileges granted under the American ecnetitution,
be better,? Yn-01-4=
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1 noted in the Editor and Publisher of April 24 this year that the American
Society of liewspaper Ed' tcrs Freedom of Information Committee pointed vat
the possible application of the Espionage Apt to newspapers to those who
atd
receive classtfied informttion improperly as well as those who 4dmemirep.it
improperly and warn that newspapers in general feels "an enormous challenge
to protect national security while at the same time protect peoples right
4c12:44b
to know." The Editor and Publisher which is your trade journal paiated_out
that the Committee's report received no notice in the daily press. It then
went on to
thlt there have been breaches of important security
information in some columns out of Washington and that some news syndicates
yre passle!lis on. to their aleilibout chgimzerifying the material.
r'n'-d1 not know a singl Editor who would endanger the security of our
country, I an sure that no newspaperman regardless of how exclusive the
information he may have is would transmit vital security information to our
enemy. jtor. Ott1/41
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I4i