CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001800620001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: March 18, 2004
• Sequence Number: 1
• Publication Date: January 12, 1955
• Content Type: REPORT

12 January 1955
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. /
NO CHANGE IN CLASS.
L] DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: _laaLQ
AUTH: HR 70-2
DATE: c'3,1" REVIEWER: -I-.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. review completed
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SUMMARY
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FAR EAST
3. Chinese Nationalist naval task group withdrawn from Tachen area
(page 4)
SOUTHEAST ASIA
4. Indonesian president reported speaker at Communist-controlled
labor congress reception (page 5).
EASTERN EUROPE
5. American legation reports new course failing in Hungary (page 6).
LATIN AMERICA
6. Comment on Costa Rican situation (page 6).
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FAR EAST
3. Chinese Nationalist naval -task-group withdrawn from Tachen area:
bulk of the Tachen task grou nava support. The
vicinity of Nanchishan, an
p is now in the est of the Tachens.
island about 85 miles southw
Communist naval vessels, believed to in-
clude torpedo boats, were apparently lying in wait for the National-
ist ships as they withdrew. A Nationalist gunboat was hit and aban-
doned.
men eaves the Tachen commander without localp 1 s move-
All ships of the Chinese Nationalist naval
task group in the Tachens were withdrawn
from the area on 1.0 January, following
damage to the principal unit from attacks
by Chinese Communist lanes Thi
Comment: Lack naval support the
Tachen area sharply red ces the defensive of
capability of thef island
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garrison.. Defense efforts for the next few days probably would
also be hampered by the confusion accompanying rotation of the
garrison troop units, which is now going ono
Current weather conditions in the Tachen
area pose a serious obstacle, however, to an amphibious attack
on the islands. On 10 January winds in the Tachens were re orted
to be 50 knots, and high winds are expected to continue.
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SOUTHEAST ASIA
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4. Indonesian president reported speaker at Communist-controlled
labor congress reception:
Both President Sukarno and Prime Minis-
ter All Sastroamidjojo spoke at a recep-
tion on 9 January which opened the second
national congress of SOBSI, Indonesia's
largest and completely ommu:nist-controlled. labor federation, ac-
cording to the Communist press in Djakarta, Also reported speak-
ing at the reception was Henri Jourdain, deputy secretary general
of the WFTU. Three members of the Indonesian cabinet, mem-
bers of the Indonesian Communist Party politburos the Soviet am-
bassador, the Czech consul general, and the counselor of the Chi-
nese Communist embassy were also present.
Comment: The Indonesian government's
attitude toward SOBSI's second congress, as reflected in the Com-
munist press story, is different from its attitude toward the first,
which was held in October 1952. At that time the only members of
the government who made an appearance in connection with the
congress were the minister of personnel affairs and the deputy
speaker of parliament.
The American embassy in Djakarta esti-
mates that SOBSI's membership numbers 600,000 and states that
many of itstop leaders are directly affiliated with the Communist
Party.
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EASTERN EUROPE
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American legation reports new course failing in Hungary:
he new course in Hungary has failed
:o bring about more than a nominal in-
crease in agricultural production or to
wild a sound basis for long-range indus-
prove the situation have not been taken.
citing resistance to the new course and demanding a rapid imple-
mentafi.on of the economic changes, anticipated measures to im-
trial development, according to the American legation in Budapest.
In a year-end analysis of the H ingarian economic and political
scene, the legation states that the economy of the country has ac-
tually deteriorated since the inauguration of the new course in July
1953. It has noted only a slight improvement in the standard of
living of the Hungarian people, and states that the nation's economic
contribution to the Soviet bloc has very probably decreased.
Comment: A poor harvest, a shortfall
of over 500,000 tons in coaTmined, and inflation resulting from in-
creasing production costs and falling labor productivity are con-
tributing to Hungary's deteriorating economic position..
Although the October central committee
meeting resulted in numerous high-level policy statements criti-
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LATIN AMERICA
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6. Comment on Costa Rican situation:
The rebel force which early on 11 January
seized control of the Costa Rican town of
Villa Quesada, about 40 miles from San
Jose and an equal distance from the
Nicaraguan border, probably consists
of Costa Rican oppositionists and mer-
cenaries, but the strategy and materiel
support for their movement is believed
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to have come from the Venezuelan and
and Nicaraguan governments. The
rebels are reported to be preparing an
airstrip, and early in the evening of
11 January a clandestine radio warned
the Costa Rican public that military objectives and transporta-
tion facilities would be bombed. The radio also transmitted
sabotage instructions.
The strike against the United Fruit
Company in Costa Rica which was called suddenly by Commu-
nist labor leaders on 11 January may be connected with the re-
volt. Former Costa Rican president Rafael Calderon Guardia,
who has for years been plotting to return 'to power and who is
probably involved in the current revolt, co-operated closely with
the Communists during and after his 194.0-1944 term in the presi-
dency.
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Unless the rebels can maintain control
of an airstrip within Costa Rica and quickly launch an air offen-
sive, they will probably fail. The Venezuelan and. Nicaraguan
regimes are unlikely to become overtly involved. The rebels ap-
pear thus far to be few in number and to be relying for victory on
the psychological effect of their radio broadcasts and expected air
demonstrations, and on what they probably consider strong domes-
tic opposition to Figueres. They may have overestimated the
latter factor and underestimated the ability of the Costa Rican
Civil Guard.
The 1500 man Civil Guard, Costa Rica's
only armed force, is led by men of undoubted loyalty to Figueres
and has been undergoing intensive training in recent months. The
reserves, which number 3,000 and are now being mobilized, showed
high morale and ability during their recent training.
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