CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001600590001-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: October 15, 2003
• Sequence Number: 1
• Publication Date: August 1, 1954
• Content Type: REPORT

1 August 1954 C-:: T
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. Z
NO CHANGE IN CLASS.
f:l DECLAS SIFTED
CLASS. CHANGED TO: TS S C
NEX REVIEW DATE: 20/Q_____
AUTH: HR 70-2
DATE:-.&. ~.~7.__ REVIEWER:
80
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
0
/
Army and State Department review(s)
100 10
 Approve?Cl14el -me 219193i4110-41 .- GIA 00590001-9
SUMMARY
FAR EAST
1. Japan proposes defense budget cuts (page 3).
2.
3. Peiping offers to buy 50,000 tons of Burmese rice page
SOUTHEAST ASIA
4. . Viet Minh reported planning to press for early elections in
Vietnam (page 4).
LATIN AMERICA
5. Pro-Prio elements in Cuba reported ready to oust Batista
(page 5).
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FAR EAST
1. Japan proposes defense budget cuts:
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Japan's precarious economic situation
has forced a.10 percent cut in the .1954
defense budget and will probably necessi-
tate further reduction in military expend-
itures for.1955 according to Defense Agency Vice-director Masuhara.
He -also told a high ranking US Army officer on 21 July that unless
the United States turned over to Japan 17 combat naval vessels, fur-
ther cuts would be made in funds for naval personnel.
Ambassador Allison views the defense cut
as a violation of the spirit of defense commitments made to him by
Foreign Minister Okazaki. Allison is also disturbed by a series of
recentun-co-ordinatedand even contradictory Japanese approaches
for American aid which to him indicate the unwillingness of the
present weak government to impose a realistic austerity program.
2.
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1 Aug 54
CURRENT INTELLIGENCE BULLETIN
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3. Peiping offers to buy 50,000 tons of Burmese rice:
Peiping; has expressed interest in buying
50,000 tons of rice from Burma during
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this quantity might sub-
sequently be increased.
Comment: This appears to be the first
transaction under the-Sino-Burmese trade agreement signed last
November.
China, which under the Communist regime
has become a i?iajor exporter of rice, is probably buying for resale
elsewhere in the Communist bloc. It already ships 200,000 tons a
year to the USSR.
.Such a rice purchase may have similar
motivations as Chinese rubber buying activities in Asia. Much of
the rubber also goes to the USSR. . firansactions of this .type permit
Peiping to take the lead in furthering both Communist economic
relations and political. objectives in Asia.
SOUTHEAST ASIA
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Viet Minh reported planning to press for early elections in Vietnam:
According to Jean Cousseau, a French
political expert on Indochina, the Viet :Minh
during the past four months has sent 800-
900 of its most experienced political agents
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into southern Vietnam to prepare the way for early elections.
He predicted the Viet Minh would seek to have national elections
within the next few months and expressed the belief that a .care-
fullypLhr ,sec rr~ ~c appeal -2 ? sudh elections would not be easy to
turn down.
Cousseau further reported that villagers
throughout Vietnam were already being required to inscribe 'their names
on one of two political registers--one in support of Ho Chi Minh and
the other in support of Bao Dai. In view of Ho's greater popularity
and the de -facto Viet Minh control of some areas of southern Viet-
nam, Cousseau said that the majority were signing up for Ho.
Comment. The Geneva agreement provides
for national elections in Vie ,mho take place .in July 1956. During
the negotiations, however, the Viet Minh sought elections within six
months and may now be attempting to speed up the process in order
to exploit its present psychological and military advantages.
LATIN AMERICA
25X1A5? Pro--Prig elements in.Cuba reported ready to oust Batista:
Fifty thousand revolutionists directed by
300 former military men are now equipped
with small arms and ready for an attempt
to oust the Batista.regime and restore the
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former -Pr'io government,
Prio has spent $4,600,000 purchasing arms
and, in order -to recoup his expenditures, he .is now willing to give
full support to other elements working toward Batista'soverthrow.
Comment. Should an attempt be made, it
will probably take place be ore ie scheduled 1 November elections.
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tion.
he will probably not change his plans after two years of prepara-
.1 Aug 54 CURRENT INTELLIGENCE BULLETIN
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The fact that Batista granted a :safe
conduct out of Cuba recently to.Sanchez Arango, leader of the
Prio forces, indicates his lack of concern about any attempt
against him. by pro- Prio elements.
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