CURRENT INTELLIGENCE BULLETIN - 1951/06/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02003072
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: March 18, 2019
• Document Release Date: March 28, 2019
• Publication Date: June 16, 1951

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-14d-1-1--ZECtira 1 N-1
16 June 1951
Copy No. ci
CURRENT INTELLIGENCE BULLETIN
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NO CHANGE IN C-TAS9,�""7"
LI DECLASSIFIED
CLASS. CHANGED TO: TS 5 ,20A 4
NEXT REVIEW DATE�
AUTH: HA 7.0-ioi,
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMAR Y
GENERAL
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3. Current outlook for Iranian oil negotiations -unfavorable (page 4).
EASTERN EUROPE
4. US Embassy in Prague recommends retaliation in plane incident (page 4).
5. Yugoslav opposition to Balkan Peace Observation Commission continues (page 4).
WESTERN EUROPE
6, British Cabinet defers decision on Chinese embargo (page'5)
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GENERAL
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US Ambassador Grady reports that he has
pointed out to Iranian Prime Minister Mossadeq
that the presentation of ultimat*ms to the
British will make effective discussion with
them impossible. He urged Mossadeq
reconsider his present course pf action, to
halt the provocative acts of gov'ernrnent re-
presentatives at Abadan and to 'attempt to seek
an agreement with the British within the principle
of nationalization. Mossadeq replied that he had
never contemplated talks with the British except
within the framework of the nationalization law.
The Department of State, in suggesting that Ambassador Grady stress to the Shah
the dangers-jnhbrent in the current Iranian attitude, characterizes the present Iranian
position as not only u feasonable but designed to remove all hope of negotiation
except on terms of c4npiete cap lation.
According to the British Embassy in Tehran,
the Iranians have demanded the company's funds deposited in Iran, amounting to
approximately 300 million rials (roughly $8 to 9 million), and have announced that
the several thousand British, Indian and Pakistani Contract laborers of the "ex-AIOC"
are now on Contract tO the Itramian Government. The UK Foreign Office is drawing
up a request to the International Court of Justice for "interim measures of protection"
against these and other Iranian interferences.
Comment The Iranian attempt to implement the
section oft ;he nationalization law calling for the transfer to the Iranian Government of
75 percent of AIOC revenue earned since 20 March can hardly be acceptable to the
British, who have recognized the principle of nationalization but consider the Iranian
nationalization law both "illeigal and unworkable." The Iranians, having refused to
submit the oil dispute to the International Court of Justice, will not be dissuaded from
action by UK requests to the Court for protection. A further unfavorable factor is
the possibility that the tensions being created in the oil area by anti-British propaganda
might result in violence, and thus close the door to a negotiated settlement.
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4, US Embass in Pra ue recommends retaliation in plane incident:
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US Ambassador Briggs in Prague notes that
repeated Embassy efforts have failed to obtain
information from the Czechoslovak Government
regarding the two US planes that presumably
landed in Czechoslovakia last week, and recommends early retaliatory action.
Briggs fears that the pilots are being subjected to pressure tactics and may even
be tried fav;espionage. In order to demonstrate the seriousness with which the
US views this incident, he recommends that (a) US authorities in Germany inter-
cept and impound two Czechoslovak commercial planes overflying the US Zone,
or (b) the up immediately cancel Czechoslovak civil overflights of the American Zone.
5. Ligi/5.1taLiZual
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In a recent conversation with a member of the
US UN delegation, YugoslaV delegate Bebler
reiterated his government's present opposition
to the establishment of a Peace Observation
Commission limited to the Balkans. He stated
that such action might alarm the Yugoslav people and would seem unnecessary since
Satellite pressures on YugoslaVia have not increased significantly during recent
months. Bebler expressed interest, however, in a US suggestion to expedite
rapid UN action in case a menacing situation should develop. He will seek
instructions on this from Belgrade and also will inquire into Belgrade's latest
views on a-Peace Observation. Comtnission limited to the Balkans. During the
conversatnm, Bebler indicated that Yugoslavia, in the event of Satellite aggression,
intends immediately to: (a) call upon foreign military attaches in Belgrade to conduct
an inquiry into the cause and nature of the Satellite aggression, and (b) request UN
action in accordance with the procedure established by the General Assembly
resolution of 1.7 November 1950.
Comment:, Bebler's views indicate that there
has been no change in Yugoslav plans in the past two months and that the Yugoslav
Government has no intention of bringing its case before the UN prior to the autumn
session of the General. Assembly
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6. 13_1_: ..iti�1.Cet defers decision on Chinese embargo:
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The British Cabinet has deferred action to
prohibit at this time the transport to Communist
China in British ships of items embargoed under
the 18 May UN Resolution. The Foreign Office
states, however, that the Cabinet will be willing to consider such a shipping pro-
hibition if a plan for concerted action is proposed in the Additional Measures
Committee of the UN.
QL:9=01,1; The Foreign Office statement
suggests that the UK may be willing to implement the UN shipping embargo policy,
tt is wary of putting the extensive British shipping-in Far Eastern waters at a
competitive disadvantage by -proceeding unilaterally. The UK may also believe
that too ready acceptance .of .the minimal action contemplated under the UN Resolution
would tend to commit thelIK to a general shipping embargo; such' as the-one the US
has informally urged and officials in the British Admiralty have reporteclry re-
commended.
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