CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002000040001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: April 29, 2002
• Sequence Number: 1
• Publication Date: April 10, 1955
• Content Type: REPORT

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10 April 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
C) DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT RE`vIEWDATE: ---, a / --
AU1 H: HR 70-2
DATE: /& Q . E3 :VJF,0I F.Ft;
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. review completed
94
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SUMMARY
GENERAL
Comment on Soviet declaration on Austria (page 3).
FAR EAST
2. Hatoyama pleads for lower Japanese defense costs (page 4).
NEAR EAST - AFRICA
3. Israeli prime minister seen given "last chance" for peaceful
settlement on Gaza border (page 5).
WESTERN EUROPE
4. Gaullist control of French defense matters expected to hamper
American base program (page 5).
THE FORMOSA STRAITS
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GENERAL
1. Comment on Soviet declaration on Austria:
Ambassador Bohlen characterized the
statement on Austria which was read
by Molotov to American, British, and
French representatives in Moscow on
9 April. as "atmospheric preparation"
for Chancellor Raab's visit. The state-
ment contained no new proposals for
an Austrian settlement nor any specific reference to a four-power
conference. Its principal purpose apparently was to forestall any
Western charge that the USSR was attempting to go behind the
backs of the three Western powers.
The declaration asserted that these talks
will "assist in advancing" an Austrian settlement and noted that
the Soviet-Austrian exchange of views preceding the trip showed
there are "possibilities for speeding up" an agreement "between
the four powers and Austria."
There are several indications that the
USSR hopes to use the discussions with the Austrian leaders as
bait for a four-power foreign ministers' conference. The Soviet
minister in Vienna expressed disappointment to the American
ambassador on 6 April that the Western statement on the Raab
visit did not welcome such a conference and declared that all the
Soviet government wants is a four-power guarantee of Austria's
independence and integrity.
Moscow Radio on 6 April suggested that
the Western powers could hardly ignore it if Austria should demand
a four-power meeting and that "steps be taken on the German prob-
lem to protect Austria." This suggests that the USSR is still try-
ing to ensure that an Austrian settlement will include "correspond-
ing and agreed measures by the four powers on the German question,"
as Molotov insisted in his 8 February speech.
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FAR EAST
2. Hatoyama pleads for lower Japanese defense costs:
Prime Minister Hatoyama told American
officials in Tokyo on 7 April that his gov-
ernment would probably fall unless the
United States agreed to reductions in
Japan's contribution to the support of American security forces.
He asserted if the United States failed to do so, it would be im-
possible to get the 1955-56 budget through the Diet which recon-
venes on 15 April.
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I Ithe opposition Liberals will not join with the Social-
ists to bring down the government over the budget, since they
are in no position to undertake another costly election campaign.
They may, however, harass the government over the budget issue
and join with the Socialists in individual nonconfidence motions
against certain cabinet ministers including Foreign Minister
Shigemitsu.
Hatoyama is in effect asking the United
States to finance social benefits which he promised during his
campaign by accepting a reduction in support contributions. The
United States has insisted that any reduction must be accompanied by
an effective increase in Japan's own defense effort.
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lw~
NEAR EAST - AFRICA
3. Israeli prime minister seen given "last chance" for peaceful settle-
mmenn on Gaza bo-rTe-r:
American ambassador Lawson believes
that the Israeli cabinet has given Prime
Minister Sharett a last chance to achieve
a peaceful settlement with Egypt by means
of his current efforts to obtain a high-level meeting with Cairo of-
ficials or by a UN Security Council condemnation against Egypt.
Lawson gained the impression from his conversation with Sharett
on 4 April that if these efforts fail, Israeli military operations
may be used to settle what Tel Aviv considers an "intolerable" sit-
uation along the Egyptian border.
Lawson reports that current official and
popular feeling in Israel would support military action on the grounds
that if there has to be a second :round it would be better now than
later, when the military power of the Arab states has increased.
WESTERN EUROPE
Gaullist control of French defense matters expected to hamper
American base program:
Ambassador Dillon in Paris foresees a
more troublesome attitude than has yet
been encountered in dealing with France
on military installations, because French
national defense matters have been taken
over by Gaullists who will be "a tough team to deal with."
A Foreign Ministry spokesman told
Dillon his government believes the United States is "moving in"
on the French position in North Africa by expanding its bases there.
He added that no French government would permit "foreign meddling"
in that area, and that the large majority of Frenchmen consider the
presence of United States troops as the first step toward such
"meddling" and possible loss of French face.
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Comment. Many Frenchmen are con-
vinced that France has been forced to swallow American objectives
in approving German rearmament,, and they can be expected to
seek to limit the size and activity of United States bases in France
and North Africa. They will also continue to demand American
political support against North African nationalist aspirations.
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THE FORMOSA STRAITS
Report of the IAC Current Intelligence Group
for the Formosa Straits Problem
This report is based on information received in Washington
up to 1100 hours 9 April 1955,
1. No significant activity has been reported. Bad weather
continues.
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