Document Number (FOIA) /ESDN (CREST):
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DOCUMENT NO ,37
NO CHANGE IN CLASS.
0 DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE: � (;)
AUTH: HR 70-2
DATE: ed0e.a.2. REVIEWER
07
for Release: 2019/07/10 CO200905
TOP SET
SJYiNFORMATI0N
24 October 1953
Copy No. S 4
CURRENT INTELLIGENCE BULLETIN
3.5(c)
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
CRET
INFORMATION
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UR1TY INFORMATION
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SUMMARY
SOVIET UNION
2. Soviet goals for retail trade raised sharply (page 3).
NEAR EAST - AFRICA
WESTERN EUROPE
4. Neo-fascist party may attempt to provoke Trieste clash (page 4).
ritain and France threaten to renege on Austrian treaty policy
(page 5).
Conant believes US intervention may be necessary for early Saar
settlement (page 6).
LATIN AMERICA
3.3(h)(2)
7. Brazil willing to resume diplomatic relations with Hungary (page 6).
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SOVIET UNION
3.
3(h)(2)
2. Soviet goals for retail trade raised sharply:
A Soviet decree of 23 October outlines
specific measures for fulfilling Malenkov's promise in March of addi-
tional consumer goods this year and for equally large absolute additions
In the following two years. In place of the increase in retail sales from
roughly 300 billion rubles in 1950 to about 510 billion in 1955 under the
original Five-Year Plan, the government now calls for sales of some
600 billion by that year.
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3.
The new plan also calls for an intensified
program for construction of retail outlets. In 1954, department stores
in many towns and industrial communities are to be opened, and between
1954 and 195E, 23,000 new retail establishments are to be put into opera-
tion in the rural areas.
The effort involved in constructing and staff-
ing the new trade establishments, in conjunction with that already re-
quired by the programs for sharp increases in agricultural and consumer
goods production, necessitates a substantial reallocation of resources
within the Soviet economy.
NEAR EAST - AFRICA
3.3(h)(2)
WESTERN EUROPE
4. Neo-fascist party may attempt to provoke Trieste clash
The police have been alerted to the possi-
bility of serious trouble in Zone A of Trieste
around 3 November, the anniversary of the
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entry of Italian troops into Trieste in 1918. The neo-fascist
Italian Social Movement (MSI) is reportedly collecting arms and
organizing action squads for attacks on Slovenes in an effort to
incite Yugoslav military intervention and cause clashes between
the Yugoslays and Anglo-American occupation forces.
Comment: The MSI and other
Italophile parties fear that implementation of the Anglo-American
decision of 8 October might lead to a permanent split of Trieste,
thus jeopardizing Italy's other territorial ambitions in Zone B.
The MSI is in a strong position to create
disturbances because of its infiltration of the Trieste police, and
has in the past demonstrated its ability to foment disorders and riots.
1.,ZBritain and France threaten to renege on Austrian treaty policy:
At a tripartite meeting in Paris on the
proposed Lugano conference, Britain and
France indicated that they are "disinclined"
to support a determined Western effort to
revise Article 35 of the long draft Austrian
treaty.
The British delegate stated that London
would nevertheless abide by the previous agreement on this question
if the US would agree to formal withdrawal of the short treaty proposal.
The French delegate argued that the West must try to block any Soviet
proposal for Austrian neutralization and should therefore offer to sign
the long draft treaty as it now stands.
Comment: American agreement to dis-
cuss the long rather than the short draft has been based on British
and French willingness to support efforts to revise it. The Austrians,
however, have stated that they would prefer even an onerous treaty to
additional delay, and the British and French fear that Vienna would
regard further insistence on better terms as obstructionist.
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A". Conant believes US intervention may be necessary for early Saar
settlement:
e next wee .
tions are further
the United States
Saar.
Ambassador Conant reports that the
French-West German discussions pre-
liminary to Adenauer-Biclault negotiations
on the Saar will be deferred at least until
e feari that new problems may arise if the negotia-
delayed and believes that "more vigorous steps" by
may be necessary to effect an early agreement on the
Comment: Chancellor Adenauer was unable
to proceed with the negotiations until his new cabinet was established on
20 October. Recent statements by him suggest that he feels the French
government may be under greater pressure to compromise early next
year than in November.
LATIN AMERICA
7. Brazil willinff to resume diplomatic relations with Hungary:
Brazil is ready to renew relations with
Hungary as soon as it receives a formal
request,
the request for such a renewal
should come from Hungary since the latter, like Rumania, took the
Initiative in breaking relations.
Comment: Brazil currently maintains
diplomatic relations with only Poland and Czechoslovakia of the
Orbit countries. During the past three months, however, there has
been a marked increase in domestic pressure for renewed diplomatic
and commercial relations with the other Satellites and the USSR.
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