CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001600550001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: November 13, 2003
• Sequence Number: 1
• Publication Date: July 28, 1954
• Content Type: REPORT

00,0041(WW.' (Sf0 0975
28 July 1954
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/ CURRENT INTELLIGENCE BULLETIN
/ DOCUMENT NO / NO CHANGE IN CLASS.
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/ NEXT REVIEW DATE: 22LO_ - - --
AUTH: HR 70-2
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/ Office of Current Intelligence
/ CENTRAL INTELLIGENCE AGENCY
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State Department review completed
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SUMMARY
GENERAL
1.. French premier admits vulnerability to any conciliatory
Soviet offer (page 3).
FAIL EAST
2. Two Soviet bloc vessels escorted past Hainan island (page 3).
SOUTHEAST ASIA
3. Burma reported considering recognition of Laos and Cambodia
(page 4).
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NEAR EAST - AFRICA
5. Comment on.Suez base settlement (page 5).
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GENERAL
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1. French premier admits vulnerability to any conciliatory Soviet offer:
Premier Mendes- France told Ambassador
Dillon on 26 July that he had expected and
feared a Soviet proposal for a European
security system that "would have required
serious consideration:' He said he had not had time to study the latest
Soviet note thoroughly, but that he was surprised the proposal for a
.European conference was so devoid of new ideas.
A Foreign Ministry official told Dillon on the
same day that the offer should not be flatly rejected since the subject
was of "prime interest, at least to France." He agreed with other
officials and the premier, however, that the note would give little
encouragement to neutralist circles and that France must go ahead
with plans to reach a decision on EDCO
Comment: Mendes-France has told Dillon
that his talk with Molotov on 21 July was inconclusive. He said
Molotov simply repeated cliches and his standard attack on EDC and
did not mention the proposal- -put forward since- -for a European
conference,
While French press comment on the Soviet
security proposal agrees with Mendes-France's views, the premier's
statements to Dillon clearly indicate his realization that he cannot
flatly reject four-power talks. A Soviet offer involving some con-
cession such as free all-German elections would considerably
strengthen the hand of those hoping to block German rearmament.
FAR EAST
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2. Two Soviet bloc vessels escorted past Hainan Island:
On 26 July American planes sighted the
Polish cargo ship Braterstwo and an un-
identified merchant ship being escorted by
a Chinese Communist gunboat just off the
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northeast coast of Hainan, heading for the Pearl River. The merchant
ships are believed to have picked up the gunboat escort at Yulin on the
southern coast of Hainan.
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Comment: The Chinese.Communists are now
apparently giving Orbit shipping combined air-sea escort over the
entire 400 miles between the southern tip of Hainan and Whampoa.
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The arrva
of these two vessels will make a totai o at eas -- uding two 25X1
Russian tankers--with European cargoes to have crowded into the
small port of Whampoa since :10 July.
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SOUT'HEAST ASIA
25X1 A 3. Burma reported considering recognition of Laos and Cambodia:
The Burmese government is considering
recognition of the governments of Laos and
Cambodia as a step toward stemming
Communist advances in Southeast Asia,
according to the British Foreign Office. The British are discreetly
encouraging this line of thinking and believe it is a good indication
that Chou En-lai's recent visit to Rangoon was harmful to Communist
interests
. Comment: Burmese leaders have become
well aware that Communist control of Indochina would threaten Burma' s
security and have been seeking means of strengthening their country's
position without antagonizing Communist China. They probably feel
that the de facto recognition given by the Communists at Geneva to
the royal governments of Laos and Cambodia makes it safe for
Burma to recognize them also.
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The Philippine government announced publicly
on 24 July that it is considering recognition of Laos and Cambodia-
Thailand is the.only Southeast Asian country which now recognizes these
two Associated States.
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NEAR EAST - AFRICA
5. Comment on .Suez base settlement:
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Formal settlement of the Suez base question
marks the beginning of a new era in Egyptian
relations with the West. Agreement on the
present terms will have the immediate result
of strengthening the position of the Nasr regime, both domestically
and among the other Arab states
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Egypt may now adopt a more constructive
.attitude on such issues as alignments within the Arab League, regional
defense, and co-operation with the West. As the recognized Arab
leader, Egypt is in a position to influence other Arab states.
Domestically the regime must now face up
to the problem of implementing its much-publicized economic
development program. Here, at. best, only limited achievements
are possible because of Eevpt's basic problems of overpopulation
and lack of resources.
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