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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
SOVIET UNION
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1. Ambassador Kennan believes Soviet policy still based on imminent
collapse of capitalist world (page 3).
FAR EAST
2. Soviet tactical units reportedly moving towards Korean front
(page 4).
3. Thailand threatens to change sides in case of Chinese aggression
(page 4).
4.
NEAR EAST - AFRICA
5. Iranian Chief of Staff warns of possible Tudeh coup d' etat (page 6).
EASTERN EUROPE
6. Increased work quotas in Hungary apparently due to Soviet pressure
(page 6).
WESTERN EUROPE
7. Director of French police says Communist Party seriously weakened,
(page 7).
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SOVIET UNION
1. Ambassador Kennan believes Soviet policy still based on imminent
collapse of capitalist world.,
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Ambassador Kennan considers that the most
important and effective blow which can be
dealt the USSR at this time would be a psy-
chological attack designed to shake the
Kremlin's confidence in t e basic thesis that the capitalist world is
unstable, upon which he feels Soviet policy is still based.
The Ambassador says that Soviet behavior
towards the West is predicated on the persistent hope that the present
structure of the Western world will prove increasingly inadequate to
withstand the steady attacks of the world Communist movement. The
Kremlin, therefore, considers a war against the West as unnecessary
as well as dangerous, but at the same time is also unwilling to have
any "real, as distinct from demonstrative," negotiations with these
Western governments which it considers short-lived.
In the present, shrill exaggerations of
Soviet propaganda, the Ambassador reads an extreme nervousness
and perhaps even an advanced degree of inner doubt about the sound-
ness of this thesis.
The idea that the Communists are wrong
in their analysis of the trend of Western society, and that in the for-
seeable future they will continue to be faced by those governments
they now strive to undermine, s!houi.J, in the Ambassador's opinion,
"be thrown out against the Communist world in every conceivable
variation, with unremitting reiteration and persistence, and with all
possible factual support."
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FAR EAST
20 Soviet tactical units reportedly moving towards Korean front:
Soviet infantry and artillery units moved
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ern Korea in early May,
Allegedly the artillery units are destined for front line serviced
An expansion of facilities and an increase
in personnel, particularly armored specialists, began in. early May
at North Korean General Headquarters,
25X1 At the same time, beginning 20 May, round-
the- coc z co erences have been scheduled at combined Chinese-
Korean Headquarters.
Comment: The presence of Soviet air and
antiaircraft artillery units a avisory personnel in. Korea has been
previously accepted, but the existence of other Soviet ground combat
units has not been confirmed. Since commitment of Soviet ground
units at the front would increase the danger that Soviet involvement
could be proved, such a move seems unlikely.
3. Thailand threatens to change sides in case of Chinese aggression:
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The government-controlled paper in Bangkok
on 11 June commented at length on Thai
fears of a Chinese Communist invasion
through Burma. While stating that Thai-
land would fight aggression, the article included a thinly-veiled
threat of quick capitulation if the United States did not soon send more
arms.
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The American Embassy in Bangkok
comments that this newspaper is frequently used to express unof-
ficially the government's views, and that the article in question
lends credence to increasing reports that Thai leaders feel insecure
in the absence of an American guarantee to defend their country.
The embassy adds that they may some day use this reasoning to
justify "changing sides in the cold war."
Comment. There have been other recent
indications that the Thai Government is questioning the wisdom of its
extremely pro-Western policies and is preparing to adapt itself ulti-
mately to possible Chinese domination of the Far East.
40
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NEAR EAST - AFRICA
5. Iranian Chief of Staff warns of possible Tudeh coup d'etat:
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The Iranian Army Chief of Staff on 6 dune
warned his staff of the possibility of a
Tudeh coup d' etato He stated that Tudeh
cells, which include senior officers, exist
throughout the army,but he said action against them was too dangerous.
Comma:
There is no evidence, wavers o any organization capable o carrying
out a successful coup. There are no senior officers prominent among
the suspects, the majority of whom are enlisted personnel or junior
officers, often conscripts.
EASTERN EUROPE
6. Increased work quotas in Hungary apparently due to Soviet pressure.,
Higher production quotas for workers were
introduced in Hungary early this month after
25X1 A a six weeks study had demonstrated laxness
and disorganization in important plants.
Comment: The higher quotas apparently
result from direct Soviet ins erver,7on to speed up Hungarian production
for the USSR. Sharp Soviet-inspired . criticism has recently struck
the Hungarian bauxite, locomotive and shipbuilding industries, and
apparently has led to an investigation of accounting methods to discover
concealment of underproduction.
The chief of the Hungarian National Economic
Planning Office went to Moscow in February and returned in March with
a demand for a 25 percent rise in industrial production and a 502 per-
cent reduction in costs.
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WESTERN EUROPE
74 Director of French police says Communist Party seriously weakened:
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The director of the French National Police
believes that the French Communist Party
is now disorganized. and demoralized, and
that it will have difficulty recruiting.
The ma in Communist threat for the future,
he fears, lies in the possibility that Benoit Frachon, Secretary General
of the Communist-led General Labor Confederation, will be given free
rein to concentrate on labor's economic demands.
Comment.- Despite Frachon's past success
in staging effective strikes on economic issues, as in the Paris trans-
port workers' walkout of March 1951, he has, until now, been generally
overruled by top party leaders who have insisted on political strikes,
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