CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001300050001-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: March 9, 2004
• Sequence Number: 1
• Publication Date: September 17, 1953
• Content Type: REPORT

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17 September 1953
Copy No. ~j (
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. 3--
NO CHANGE IN CLASS.
El DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: ?0 0-9
AUTH: HR 7Q-2
DATE; 41.2 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
0111
00
State Dept. review completed
TOP SECRET
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SUMMARY
GENERAL
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i Britain outlines terms for Iranian oil settlement (page 3).
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SOUTH ASIA
4. Pakistani army chief wants defense agreement with United States
(page 4).
NEAR EAST - AFRICA
Comment on "state of emergency" in Egypt (page 5).
WESTERN EUROPE
6. Austrians refuse to revise text of new note to Moscow (page 6).
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GENERAL
2. Britain outlines terms for Iranian oil settlement:
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tain any Iranian suggestions for modifications in presentation of the
proposals and would also consider an interim arrangement permitting
an early resumption of oil exports.
Britain has informed the United States
that the proposals of last February repre-
sent its ultimate concessions to Iran in the
oil dispute. Britain would, however, enter-
Britain still insists that any settlement
must provide the Anglo-Iranian Oil Company fair compensation for
its losses in Iran, and must not give Iran any better financial return
from its oil than its neighbors receive.
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Comment., Despite this present reference
to "ultimate concessions," British spokesmen have indicated a desire
to strengthen Iranian premier Zahedi through an oil settlement.
Zahedi has not yet revealed his views on
the oil question, However, he can be expected to object to those
parts of the February proposals which appear to prevent Iran from
freely exploiting its oil resources and place it heavily in debt to
Britain over a long period of time.
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SOUTH ASIA
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4. Pakistani army chief wants defense agreement with United States.,
On 13 September General Mohammed
Ayub Khan, Pakistani army commander
in chief, told an American embassy
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official that the concept of MEDO was impractical and that he wants
to discuss a bilateral defense agreement with "top policy people"
from the Departments of State and Defense when he arrives in Wash-
ington on 27 September. Ayub implied that Pakistan was prepared to
make military bases available to the United States.
Comment: It is not clear whether the
Pakistani government is prepared to seek such a pact or whether
Ayub's mission is purely exploratory. Such a pact would be acceptable
to the majority of Pakistanis, though it would subject the government
to opposition charges that it was subservient to the United States.
India probably would vociferously attack
such an agreement as endangering the peace of the subcontinent by
bringing the "cold war" to India's borders.
NEAR EAST - AFRICA
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5. Comment on "state of emergency" in Egypt:
The Nagib government's proclamation of
a state o emergency and the public announcement that it had unearthed
a conspiracy, allegedly supported by "a foreign power" which aimed at
restoring the monarchy, indicate that the military regime is increas-
ingly uncertain of its position.
During the past several days, government
spokesmen have been charging that disloyal Egyptians were involved
in "imperialistic" plots. While former Wafd Party leaders and some
army officers may be involved in a conspiracy, the preliminary pub-
licity given the present situation suggests that the military regime is
primarily engaged in generating more support for itself among the
people, including the large numbers of ultranationalistic students,
who are now returning to the universities.
Government officials are aware that the
continuing stalemate in the Suez base talks is weakening their posi-
tion with the people. They have privately hinted in past months that
they might ultimately feel impelled to yield to public clamor for
intemperate action against Britain.
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WESTERN EUROPE
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6. Austrians refuse to revise text of new note to Moscow,
by the inclusion of specific suggestions for revision of the old draft
treaty. According to Foreign Minister Gruber, such explicit pro-
posals would give the Soviet Union an excuse for postponing nego-
tiations and in any case could be raised later "if the conclusion of
a treaty would not thereby be jeopardized:'
Austrian government officials have
rejected American and British requests
that the draft of a proposed new note
from Vienna to Moscow be strengthened
Ambassador Thompson believes that
Gruber's attitude is accounted for by his "sole concern" with
showing the Austrian public that the government is removing
every obstacle to the resumption of treaty discussions.
Comment: The Austrian government's
draft note includes only a general appeal to the USSR for an easing
of the burden which would be imposed by the treaty.
Gruber's attitude again demonstrates the
unlikelihood of Austrian support for Western efforts to revise the
treaty terms.
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