CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001700160001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: February 20, 2004
• Sequence Number: 1
• Publication Date: October 12, 1954
• Content Type: REPORT

1'L Vctoper 1:J~`t
Copy No. ~
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.. ..i+^Q" ~ 1
NO CHANGE IN CLASS
C:J DLCIJ~SSiFIED
CLASS. CHANGED TO: TS S G
NEXT REVIEW DATE: 20 (Q
AUTH: HR 70-2
DATE: 7 Sh g~ REVIEW~Ri
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
DIA and DOS review(s) completed.
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SUMMARY
GENERAL
1.. Soviet support seen for Chinese Communist complaint to
UhT (page 3) o
2, USSR makes new loan to Afghanistan .(page 3),
3. Peiping reported bidding for "defense alliance" with India
.and relations with Indian border states (page 4),
FAR EAST
4. ,Japanese becoming antagonistic toward American procure-
ment policies (page 4)0
5. Chinese .Nationalist naval forces .score success near Tachens
(page 5).
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NEAR EAST- -AFRICA
7o Turkey favors indigenous approach to Middle East security
page 7)0
8. Egyptian .regime reported in crackdown on .Moslem Brother-
hood (page 7) o
LATIN AMERICA
9~
Brazilian elections
may
give Communists 14
percent of lower
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house seats (page 8
),
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GENERAL
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Ambassador Bohlen in Moscow expects
the Soviet delegation at the UN to sup-
port Chinese- Communist premier Chou
En-la,i's complaint, made in a cable to
the General Assem y, against ?'the aggressive action of the
United States government in interfering with the Chinese peo-
ple's liberation of Formosan' Chhou asks the General Assembly
?to call on the United States to withdraw all its military personnel
:from Formosa, the Pescadores and PTationalist-held offshore
islandso
Bohlen doubts that Chou's move presages
an early military operation against Formosan He believes the
Sinn-Soviet motive is to introduce a controversial issue into the
UN for its devisive effect among; nations of the free world.
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The Soviet Union and Afghanistan signed
an .agreement on 5 October providing for
a Soviet loan valued at $2,100, 000, ac-
cording to the .Afghan foreign .minister.
The new loan is to be used for the purchase of aroad-testing
laboratory and road-building machinery to pave Kabul streetso
Comment: This is the third Soviet-
Afghan agreement signed ids year providing for economic and
technical assistance A January agreement provided for a
$3,500,. 000 Soviet loan for building grain-processing plants and
in .April a $600,000 loan was made to construct gasoline storage
facilities in Kabula
1. Soviet support seen for Chinese Communist complaint to UN:
2. USSR makes new loan to Afghanistan:
All three projects .apparently are to be
.carried out with the assistance of Soviet technicians The Ameri-
can military attache in Kabul. recently reported .that 45 Soviet
"families" had been flown into Kabul in addition to an unknown
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various Soviet-sponsored projects.
identified the Soviet personnel as technicians to be used on the
number of single -male personnel. Afghan government officials
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Peiping reported ba.dding for ''defense .alliance" with India anal
re tions with Indian border states:
direct relations with the Indian border states of Nepal, Sikkim,
Bhutan .and the- Kashmiri province of Ladakh.
Chinese Communist diplomats in New
Delhi are reported to have proposed
conclusion of a "defensive alliance"
with India and to have been seeking
25X1 the Chinese are pressing for unrestricted trade rights
in the otter three -areas and the settlement of undemarcated
boundaries between India and all the border states
Comment: Peiping and New Delhi
have both indicated that t eye-rega~?d their April 1954 .agreement
an Tibet as the equivalent of a nonaggression treatyo .India
would probably reject any Peiping proposal fora .formal treaty.
. Chou En-lai said on 23 September that
Peiping was prepared to establish diplomatic relations with
Nepal, which is believed to be the primary target for increased
Communist subversion in the bor. der states, and Peiping is ex-
pected to work for footholds in the other areas as welly During.
his forthcoming visit to Peiping, Nehru is unlikely to agree to
increased Chinese Communist ties with any of the border states
other than Nepalo
FAR EAST
4. Japanese- becoming antagonistic toward American procurement
policies:
The exclusion of Japan from bidding on
25X1 A an FOA, contract for rolling stock for
Korea .and FOA's subsequent reduction
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from 100 to 25 of the number of locomotives for India in a
Japanese bid have caused widespread dismay and could affect
Japan's future orientation toward the free world, according to
Ambassador Allison. Japanese editorials and official state-
ments have- treated the- locomotive issue as evidence of Ameri-
can "undependability" and have dismissed press explanations
from V~ashington as neither "fai.r nor convincingo' The conclu-
sion is being drawn that Japan has no alternative but to push
vigorously for more trade with Communist areas,
Comment: The Japanese were de-
Glared the low bidders on the Indian locomotive deal and had
expected to obtain the entire amount. Half of the offering was
awarded, however, to an American firm, and recently the
order for the Japanese was reduced by an additional 25.
Japan counts on American leadership
to Ti.rt, free world restrictions against Japanese trade and to
:,.nom substitutes for Japan's former trade with China Thus,
it is particularly sensitive to American actions which suggest
discrimination.
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5. Chinese Nationalist naval forces score success near Tachens:
Two Chinese Nationalist destroyer
escorts are reported to have sunk two
Communist naval patrol vessels which
were escorting nine motorized junks
rn c ou ay west of the Tachens on the night of 10 October
Several of the junks were reported damaged.
Prior t:o the engagement, the Nation-
alist ships had been patrolling north of Ichiang Island, and had
been fired on by Communist artillery on Toumen .Island, lo-
cated about nine miles northwest of-the main Tachen group,
Comment: Aside from this clash, the
situation in the offshore islands was quiet over the week end.
Communist artillery has fired only 88 rounds at the Quemoys
since 8 Octobr.:^, and Communist air patrols near the Tachens
have been infr _~quent.
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That this may be a lull before further
Communist moves against the offshore islands is suggested by
an 8 October Peiping broadcast that all units "are expected to
inflict heavier blows" against the .Nationalists and "strive for
.greater victories"
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PTEAR EAST -- AFRICA
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7~ Turkey favors indigenous- approach to Middle East security:
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Turkey and Iraq. should move toward a
bilateral security arrangement rather
than revive the Middle East defense
organi7-anon (MEDO~ concept as re-
cen y sugges y Iraqi prime minister Nuri Said in .London
:.and Paris, according to Turkish vice premier Zorluo ~orlu
also told Ambassador ~4'arren he feels strongly that the .indig-
enous character of the Turkish-Pakistani agre+~ment appeals to
Middle East countrieso
Zorlu offered no objection to Iraq's
seeking bilateral agreements with Pakistan and .Turkey, and
.thought that both agreements .could :later be tied in with the
Turkish-Pakistani agreement.
Comment: Nuri's ambiguous .state-
ments about Iraq's intentions ve been a major factor in the con-
tinuance of a .stalemate in Middle -East defense planning.
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Nuri is currently scheduled to meet
P'rrnd .Minister Menderes in .Istanbul to discuss mutual defense
problems. Ankara continues to explore means of strengthening
.Middle -East defense, but. has little hope .that much progress .will
be made in these talks..
$o Egyptian regime .reported in crackdown an Moslem Brotherhood:
Egyptian prime minister Nasr has de-
cided n.ot to delay further in cracking
down on antiregime .Moslem brotherhood
leaders,
Na.sr plans this. as a
preparation for the signing of .the Anglo-Egyptian .agreement and.
the reopening of the uni.versitieso
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on the .night of 8 Oc Ober, Egyptian police began to arrest
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Brotherhood .leaders and to conduct hawse searches of 30
g?vernment etnployeee suspected of being Communists.
Comment: The regime may be in-
creasing its activities against the A~oslern Brotherhood in
preparation for the expected announcement of the .signature of
the final agreement on the Suez basso Reports that over 100
high-ranking police officers have been dismissed during the
past ten .days suggest .an effort to ,purge- dissident and unrelia-
ble elements before-publication of the agreemento
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LATIN AMERICA
90 .Brazilian. elections may give. Communists 14 percent of lower
house seats:
action, I
Fragmentary returns from the S Octo-
ber congressional elections. in .Brazil
indicate that 45 of the 326 seats in the
Chamber of Deputies will go to Comm~~
mists, unless there is preventive court
Comment: Statements from the .Supreme
Electoral Court in the ;fast few days suggest that many victorious
.Communist and pro-Communist candidates may be barred from
taking their seats; even though all of them campaigned under the
~I.bels of other parties including some of the center and righto
'T'he returns suggest a growth of leftist sentiment generally in
Brazil as well as a marked gain in prestige for the Communist
party, which was outlawed in 1948 o In the .1950 elections, only
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one .Communist, who r. an on another party's ticket, was. electedo
In 1947 the Communist Party had won about 10 percent of the
.popular voted
It is unlikely that the two major center
parties and their smaller allies will be outnumbered by any
leftist combination in the new assemblyo The .outlook for a
stable government working coalition remains in question, how-
ever, particularly in view of maneuverin for the 1955 resi-
dential election.
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