CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001200450001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: September 30, 2003
• Sequence Number: 1
• Publication Date: August 13, 1953
• Content Type: REPORT

ease 2~6?1~/1~~~.F~`l9TOR~1
13 August 1953
Copy Noo
DOS REVIEW
COMPLETED
CURRENT INTELLIGENCE BULLETIN
Aug,-: ~,-~ ~ ~
D +~ i ~~ ~~~~ __._ REVIEW ER; _-~ ;
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
SOVIET UNION
Ambassador Bohlen comments on Malenkov speech (page 3)0
SOUTHEAST ASIA
2e Viet Minh success in subverting Laotians indicated (page 3).
SOUTH ASIA
I,'~e~ Pakistan indignant over shift in government of Indian-held
Kashmir (page 4)0
NEAR EAST -AFRICA
4, Iranian ambassador in Moscow asserts Soviet-Iranian disputes
already settled (page 5)0
5e French recall resident general to discuss Moroccan crisis (page 5)0
Comment
on d
ange
WESTERN EUROPE
r to French government from strikes (page 6)a
LATIN AMERICA
7o
Chile may
sel
l cop
per to Orbit agents (page 6)0
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SOVIET UNION
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1. Ambassador Bohlen comments on Malenkov speecho
ably the dominant figure in the present Soviet leaderships The clear
and forceful reaffirmation of the post-Stalin policies supports the view
that "these changes stem from sources deeper than simple maneuvers
or even palace intrigueso"
a e upreme Soviet proceedings show that Malenkov is unquestion-
Ambassador Bohlen describes Malenkov's
speech to the Supreme Soviet as the most
imporkant and realistic statement of Soviet
policy since Stalin's death, He believes
Bohlen believes it particularly significant
that Malenkov commits the Soviet government to a rapid and radical
increase of consumer ;goodsp: ~ While the concessions to the farmers
do not presage abandonment of collectivization, the ambassador sug-
gests that the new encouragement of private agriculture-might cause
the regime future difficultieso
On foreign affairs, Malenkov seemed to be
"expressing a dictatorship's chronic fear" of appearing vulnerable to
foreign pressure, The brevity and vagueness of Malenkov's remarks
on "negotiations between the great powers" strengthens Bohlen's be-
lief that the USSl~, at this time favors other forms of diplomatic nego-
tiations than a highly publicized four-power conferenceo
SOUTHEAST ASIA
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20 Viet Minh success in subverting Laotians indicatedo 25X1
25X1 The Viet Minh,
is using several pro-
Communist company-st~ze Laotian tanits_in
its stepped-up activities in Laoso These
units are charged with eliminating ''traitors," gaining the support.
of the local population, and conducting intensive intelligence opera-
tions against French units in the areao
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the
utilization of Laotian units may indicate that the Communist puppet
government in Laos is gaining more support than had been expected.
Cammento This is the first indication that
_._. _
the "Free Laos" movement o~~rince Souphanouvong~ts attracting sup-
port among the Laotianso His "government" was established last
April at Sam Neua. in northeast Laos during the Viet Minh's spring
ILLEGIB
offensiveo
SOUTH ASIA
3o Pakistan indignant over shift in government of Indian-held Kashmir:
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issue in several years,
The American embassy in Karachi has ob-
served more popular agitation and indigna-
tion over the changes in the government of
Indian-held Kashmir than ?ver any other
It notes general concern that communal dis-
turbances may cause a renewed flow of refugees into Pakistan,
Pakistani prime minister Mohammad Ali
informed the American ambassador on 11 August that Karachi,
fearing tribal incursions into Indian-held Kashmir, has ordered the
army to prevent any breach of the cease-fire linen Defense Secretary
Mirza told an embassy official that any further meeting between the
Indian and Pakistani prime ministers would be fruitlesso
Commento The Karachi government, which
may have encouraged some of the public reaction, nevertheless ap-
pears both able and determined to prevent a breach of the cease-fire
linen
Kashmir prime minister Bakshi's reported
public statement that he would ask the Kashmir Constituent Assembly
in early October to ratify immediate accession to India further aggra-
vates the situation, It is unlikely that the Indian government can afford
to agree to Bakshi's proposal at this time since such action would
jeopa~?dize its international positions
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NEAR EAST -AFRICA
4o Iranian ambassador in Moscow asserts Soviet-Iranian disputes
alrea y settle o ',
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Iranian ambassador Arasteh in Moscow
told Ambassador Bohlen on 10 August
that the frontier and financial problems
between Iran and the USSR had already
been settled. through diplomatic channelso
Arasteh said that the USSR had withdrawn
certain financial counterclaims after Iran had rejected them and
that Moscow had agreed to turn over "without compensation" the
gold- claimed by Irano
He also stated that the Soviet government
had agreed to a frontier settlement satisfactory to Iran and that
delimitation of the actual line was all that remained to be decided
at the Iranian-Soviet commission meeting in Tehrane
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Commento Ambassador Arasteh appears
to be giving an overoptimistic picture
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ormal discussion on border problems and the financial
claims an counterclaims are only beginning ~.n Tei~rano
5, French recall resident general to discuss Moroccan crisisa
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Resident General Guillaume was recalled
from vacation on 11 August for consultation
with the French Foreign Ministry regarding
El Glaoui's alleged plan to stage a eoup to
depose the sultan, according to an official spokesman an Pa.riso The
Foreign Ministry expects to be able to control El Glaoui, but is aware
that serious repercussions would result from any coup attempto
The problem is complicated, according to
the French spokesman, by the support given El Glaoui by French
residents in Moroccaa
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Commento
t e seriousness of the present tensions.
Although El Glaoui main atns absolute authority in the southern tribal
areas, the vast majority of natives support the sultan. Previous at-
tempts by the Foreign Ministry to control El Glaoui's maneuvers have
been ineffective, largely because local French officials have abetted
his various schemeso
WESTERN EUROPE
6. Comment on danger to French gov?ernment from strikesa
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There is a g~?owing possibility that the
Laniel, government will fall as a result of the current strike wave
in Frans~e., Its collapse under existing labor pressures would
greatly increase the likelihood of aleft-center government with
a program of drastic defense reductions and foreign policy revisions.
The strike movement began as a rank-and-
file protest against Laniel's civil services economies, and is now being
supported by the Communistso The National Assembly may be subject
to an early recall, which would precipitate a showdown between the
right and the left.
If Laniel remains firm on civil service
reform, the first part of his economy program, he may lose the
support of the Popular Republicans who are under sharp labor
pressure. Concessions to labor now, however9 would mean defeat
for the rest of his program..
LATIN AMERICA
7. Chile may sell copper to Orbit agentso
Chilean finance minister Herrera told
25X1 A ~ ~ Ambassador Bowers on 1Q August that
his country has offers of 35 cents a pound
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for most of its copper from agents who are in free countries but who,
in his opinion, are acting for the Orbito When reminded of the Battle
Act,- Herrera replied that if Chile sold its copper in Italy and Switzer-
land, it would not be selling behind the iron curtain despite knowledge
of the metal's ultimate destinationo
Meanwhile,- an agent of a Chilean steel com-
pany partly owned by the government is reportedly in Argentina to con-
fer with the Soviet economic mission theree His objective allegedly is
to find out how much copper the USSR would take at 3 5 cents a pound and
what else it would buy in the event of a trade treatyo
Commento Chile faces a grave financial
crisis because of its inability to sell its copper stocks, now estimated
at 70,09 tons, at the fixed price of 35 cents a pound, which is about
six cents a pound above the world market4
Chile has had no direct trade with the USSR
since relations were broken in October 19470
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