THE SITUATION IN BURMA*

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00937A000500030046-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: February 12, 1999
• Sequence Number: 46
• Publication Date: March 18, 1957
• Content Type: MEMO

Approved Fo%elease 2000/08/07 : CIA-RDP7 0937A000500030046-5
15 March 1957
STAFF ) MORA1 t NO. 14_57
SUBJECT: The situation in Burma's
1. The political situation in Buren is relatively calm and
stable at the present. Prime Minister U Nu has returned to office with
less freedom of action than he enjoyed before his resignation and has
promised to consult fully with the BSP faction of the AFM before
every major policy decision. The disagreement between U Nu and Kyaw
Nyein, which threatened the unity of the governing A PPL coalition,
apparently has been patched up for the time being.
2. The Chinese-Burmese border situation is still unresolved, but
the tension the issue generated last fall has largely subsided. U Nu
recently stated that the Kachin State Council has agreed In principle
to the succession of the Hpimav area territories and that the Chinese
Communists are now studying Burmese proposals. U Nu preportedly plans
a "friendly, relaxed visit" with Chou En-lai at KIlux ing later this month.
Although the reports stress the unofficial nature of this proposed
visit, U Nu will probably attempt to expedite a border settlement at
that time.
3. There has been some slight modification in the government's
general policies and international orientation in the direction of a
stiffer attitude toward the Bloc and internal C iem. Before
U Nu returned to office, the government announced its decision to cut
rice shipments under the barter agreements with the Bloc to about one--
fourth of last year. This would reduce Burma's increasing economic depend-
ence on the Bloc. As a counterpart to this decision the government is
still negotiating, with some hope of success, for a resumption of
US foreign aid. In a major policy speech, U Nu has promised that the
AFPFL will not negotiate with the Communists in Bwmm- He promised the
% is memorandum has been discussed with /P and OCI.
rq
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but eartimatea, rim as high as 14$OOQ. They have fanned out over north and
central Buxm, settling down and opening businesses in the tom and
villages. Some have settled in Rangoon where the Bank of Chita is
reportedly advancing them money to buy up real estate and rice mills,
and to open businesses. The Burmese government has not been able to cope
with this illegal it .gration, and even a satisfactory settlement of the
border dispute viii probably not end the problem. In addition,
Chinese diplomatic miasio, in Rengoonn and Lashio have been effectively
reorganizing the overseas Chinese Commm =fists .
7. Over the post several years there has been a etea4 y increaeJ
infiltration of Chinese Into Hum, many of them agents carrying forged
doct nta. There is no accurate count of these illegal entrants
25X1A9a
Approved For Release 2000/08/07 : CIA-RDP79T00937A000500030046-5