CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001700540001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: March 18, 2004
• Sequence Number: 1
• Publication Date: August 17, 1954
• Content Type: REPORT

17 August 1954
Copy No.
CURRENT INTELLIGENCE BULLETIN
/r
CENTRAL INTELLIGENCE AGENCY
4100
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: Z01
AUTH: HR 70.2
DATE: REVIEWER:
NO CHANGE IN CLASS
E DECLASSIFIED
DOCUMENT NO.
Office of Current Intelligence
State Dept. review completed
2004TOB S CRB MT009
0 /Z 0, 0
 25X1A
Approved For ReIb"e 2004/07/08 : CIA-RDP79T00975A004P00540001-3
SUMMARY
GENERAL
1. Comment on Chou En-lai's call for "liberation" of Formosa (page 3
WESTERN EUROPE
3. Paris embassy believes changes in EDC necessary for ratification
in France (page 4).
25X1A
17 Aug 54 CURRENT INTELLIGENCE BULLETIN
Page 2
25X1
25X1
Approved For Release2&4167/08 : CIA-RDP79T00975A001700540001-3
 25X1A
Approved For Release 0540001-3
GENERAL
1. Comment on Chou En-lai's call for "liberation" of FormosaA
25X1A
Chinese Communist premier Chou En-lai
concluded his review of foreign policy be-
fore the Central People's Government Coun-
cil in Peiping on 11 August. with a call for the "liberation" of Formosa
as the final step in "complete victory." Chou's speech is the most
aggressive in a series of anti.-American propaganda blasts about
Formosa which began on 9 July.
The speech has since been supported by
declarations from government, military and party leaders and from
alleged representatives of the people. This is Peiping's normal way
of underlining major pronouncements, and was used, for example,
immediately prior to China's intervention in Korea in 1950.
Chou charged the United States with a
"consistent position of hostility" against Communist China and with
encouraging the Chinese Nationalists in an increasing "war of har-
assment and destruction" against.the mainland and coastal areas.
He specified for the first time that the Nationalists are conducting
a "blockade" of the coast.
Chou also said that the United States and
Nationalist China are negotiating a "so-called bilateral treaty of
mutual security:' Denouncing any American-Nationalist treaty as
illegal, Chou warned that interference in Chinese "internal affairs
by foreign aggressors" would have grave consequences. With a
truce achieved in Indochina, Formosa is now the ideal issue for
stimulating morale in Communist China and for widening differences
between the United States and its allies and the Asian neutrals.
Peiping's tough line on Formosa also has
certain immediate aims. The Chinese Communists clearly hope
to frighten weak Far Eastern governments from joining any regional
security arrangement. They also hope to deter the United States
from supporting Nationalist harassing actions and from signing a
bilateral security pact with Taipei. Peiping seems to be particu-
larly concerned over Nationalist seizures of Orbit shipping, as the
disruption of this trade since June'has cost Peiping and the rest of
the Orbit at least $2,000,000,
17 Aug 54 CURRENT INTELLIGENCE BULLETIN Page 3
Approved For Release2 /&7/08 : CIA-RDP79T00975AO01700540001-3
 25X1A
. Approved For Release 2004/07/08: CIA-RDP79T00975A0&00540001-3
Since 1950, the Chinese Communists
have avoided committing themselves to any deadline for,a Formosa
operation, and even Chou's speech implies that further preparations
are necessary. The weather will remain favorable for some weeks
for an invasion of Formosa, but it is doubtful Peiping has the capa-
bility for an amphibious assault at. this time. The Chinese Commu-
nists definitely have the capability, however, for air attacks on the
island and for am hibious assaults on any of the Nationalist-occupied
offshore islands.
25X1A
25X1
WESTERN EUROPE
25X1A
3. Paris embassy believes changes in EDC necessary for ratification
in France:
1.7 Aug 54 CURRENT INTELLIGENCE BULLETIN Page 4
Approved For Releas~~6/e`7/08 : CIA-RDP79T00975AO01700540001-3
The American embassy in Paris now
believes that EDC will not command a
majority in the French National Assembly
 25X1A
Approved For Rise 2
without changes. The changes proposed
by Premier Mendes-France, however,
will not be accepted by either supporters
or opponents of EDC, in the opinion of the
embassy, which also considers them "unacceptable beyond our worst
expectation
Although the premier is willing to negotiate
on his proposals, the Belgian representative on the EDC Interim
Commission doubts that enough. of the proposals can be salvaged at
the Brussels meeting scheduled for 19 Au.gu.st. to prevent the appear-
ance of serious defeat for Mendes-France.
Comment. The changes proposed by Mendes-
France reveal the hand o ED opponents in his entourage and can be
expected to exasperate France's partners, who have spent, two years in
delicate negotiations on these and similar issues. While many of the
proposals could be handled under the treaty as it stands, several of
them, specifically those aimed at giving France special privileges and
discriminating against Germany, will require textual alterations in
the treaty and in any event will not be acceptable to the other EDC coun-
tries.
In view of Mendes-France's conviction that
an early French decision on EDC is imperative, he can be expected to
modify his proposed changes at Brussels.
17 Aug 54
CURRENT INTELLIGENCE BULLETIN Page 5
Approved For Release 2 108 : CIA-RDP79T00975AO01700540001-3
 25X1 Approved For Release 2004/07/08 : CIA-RDP79T00975AO01700540001-3
Approved For Release 2004/07/08 : CIA-RDP79T00975AO01700540001-3