CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001700070001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: January 6, 2004
• Sequence Number: 1
• Publication Date: August 26, 1954
• Content Type: REPORT

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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. -
NO CHANGE IN CLASS
C i DECLASOfRED
CLASS. CHANGED TO: TS 8
AUTH: HR 70-2
DATE: 1-M&SA REVIEWER:
NEXT REVIEW DATE:. O
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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DIA and DOS review(s) completed.
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SUMMARY
GENERAL
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1. Japan to establish diplomatic relations with Vietnam (page 3).
SOUTHEAST ASIA
3. Indonesian defense minister plans shifts in army commands before
elections (page 4).
NEAR EAST -- AFRICA
4. Nasr counting on extensive American aid (page 5).
WESTERN EUROPE
5. Defeatism and anti-Americanism reported growing in West. Germany
(page 6.
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LATIN AMERICA
8. Guatemalan situation reported worsening (page 8).
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GENERAL
1. Japan to establish diplomatic relations with Vietnam:
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The Japanese government has decided to
accept Vietnam's offer to establish formal
diplomatic relations, according to Ambas-
sador Allison, A Foreign Ministry official
told the American embassy in Tokyo on 24 August that a note an-
nouncing Tokyo's readiness to exchange ministers had been sent to
Saigon.
Since the Japanese acted on their own
initiative and from a desire to contribute to ?'rleeping Vietnam on
our side," Allison feels Tokyo would be receptive to suggestions re-
garding assistance to the Vietnamese government.
Comment. The action indicates Tokyo's
willingness to incur the displeasure of Peiping, which seems likely
to claim that Japanese recognition of Vietnam, like rehittions with the
Chinese Nationalists, is a major obstacle to better Sino-Japanese
relations, Japanese recognition should add to the prestige of Vietnam
and encourage Southeast Asian nations to recognize the new regime.
The Vietnamese prime minister has close
personal ties with Japan. Like many Vietnamese nationalists he
probably looks on the development of Japan-Vietnam trade as a means
of reducing Vietnam's dependence on the artificial trade pattern with
France. Vietnam is sorely in need of technical aid which Japan could
presumably provide.
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SOUTHEAST ASIA
3. Indonesian defense minister plans shifts in army commands before
elections:
Air Marshal Suryadarma told the American
air attache in Djakarta on 25 August that
Defense Minister.Iwa plans to transfer sev-
eral army territorial commanders who he
feels have remained too long in their present
area and need- experience in other parts of Indonesia.
The American army attache comments that
Iwa's real reason for the proposed shift is his desire to weaken the
control of the present commanders over the troops before the elec-
tions in 1955. In the most critical area, West Java,. it is reported
that a strong anti-Communist leader--Colonel Kawilarang--will be re-
placed by a comparative unknown.
. Comment: The army attache has also re-
ported rumors in Djakarta, wilarang would resist any order for
his transfer. The anti-Communist army commanders, particularly
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Colonel Kawilarang, have provided the principal retarding influence
on the government's leftist tendencies.
A report of 17 August, however, stated that
inertia pervaded the Indonesian army and that anti-Communist ele-
ments in it were capable of only token resistance to the disruptive
moves of pro-Communist Defense :Minister Iwae
NEAR EAST -- AFRICA
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Nasr counting on extensive American aide
Egyptian prime minister Nasr is counting
on receiving at least $50,000,000 in
American economic aid this year and an
equal amount of military aid, 1 =_4 25X1
Comment: According to present alloca-
tions, Egypt will be offerer 0,000 in economic assistance and
an equal amount of military aids
Nasr's disappointment in the extent of
American aid, after two years of anticipation, together with extrem-
ist opposition to the Suez settlement, may lead him again to threaten
to adopt a neutralist position as a lever in bargaining with the West.
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WESTERN EUROPE
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5. Defeatism and anti--Americanism reported growing in West Germany:
the
Germans that a totalitarian system will eventually defeat democracy.
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there is a definite anti-
American and antidemocratic trend in the Federal Republic, particu-
larly among student groups, which proclaim that the Germans must
deal with Moscow. The Germans are rapidly losing faith in European-
ization, and the Christian Democratic Party fears it will lose sub-
stantially to rightist parties in the forthcoming state elections.
EDC impasse, plus the defections of Otto
John and Schmidt-Wittmack to the East, is
bolstering a latent belief of many West
Comment. Barring French acceptance of
EDC, the sentiments describeed-will persist and deepen until. Chancel-
lorAdenauer is able to devise a new and workable pro-Western policy.
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8. Guatemalan situation reported worsening:
LATIN AMERICA
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Guatemalan junta president Castillo Armas
is showing "little political sense," is ignor-
ing his collaborators of previous days, and
is surrounded by "highly sus icious opportu-
nistic persons," Castillo re-
portedly still distrusts Colonel Monzon, believing that he was respon-
sible for the revolutionary attempt of 2 August.
I Icertain government
figures and other anti-Communists are facing a c'alemma. They feel
they can support Castillo up to a certain point, but that a break with
him might play into the hands of the army or possibly the Communists.
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Comment: Castillo possesses popular
appeal but little organize support of unquestioned loyalty. He is
seeking to establish his personal control of the army, through the re-
assignment of officers and the integration of his loyal followers, and
thereby reduce his dependence on Monzon, the only regular army
representative on the three-man junta.
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