CURRENT INTELLIGENCE BULLETIN - 1952/12/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02018020
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: June 6, 2019
• Document Release Date: June 27, 2019
• Publication Date: December 20, 1952

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INFORMATION
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20 December 1952
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Copy No.
5T
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. SI?
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. British attitude toward Communist China seen hardening (page 3).
NEAR EAST - AFRICA
2. Comment on Mossadeq's report to the nation (page 3).
3. Majority of German officers in Syria will leave in Sa.nuary (page 4).
WESTERN EUROPE
4. Czechs threaten to break off trade negotiations with Austrians (page 4).
5. East German five-year plan reportedly suspended for rearmament
drive (page 5).
6. Interest grows in American-West German bilateral arms pact (pftge 6).
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GENERAL
1. British attitude toward Communist China seen hardening:
The American Consul General at Hong Kong 3.3(h)(2)
sees the closure last week of the British Con-
sulate General in Tientsin as a further acknowl-
edgement of inability to establish normal relations
with Peiping. He also cites evidence of a "grow-
ing realization" by the British that their hopes for doing business with the
Chinese Communists will not be fulfilled. He predicts a "stiffer attitude"
toward the Chinese Communist regime on the part of the Hong Kong Govern-
ment.
Comment: The policy of the Hong Kong Govern-
ment,reflecting disillusionment in London, has been stiffening toward
Peiping this year. The colony has tightened export controls on goods to
China, deported Communist agents, sentenced two Communist propa-
gandists for sedition, compelled the Communist news agency to register,
and decided against Peiping in the dispute over the ownership of 71 com-
mercial aircraft.
NEAR EAST - AFRICA
2. Comment on Mossadeq's report to the nation:
Prime Minister Mossadeq's 14 December report
to the Majlis on the progress made by his government since he was granted
special powers in mid-August shows extensive attempts at reform in nearly
all phases of Iranian social and political life.
Presumably, in deference to the basic national
opposition to devaluing the currency, the measures enumerated did not
include expansion of the note issue, the most important step the govern-
ment has taken toward alleviating its financial crisis. Opposition to other
important measures, such as the land reform bill, has necessitated their
being strengthened. The lack of administrative machinery has impeded
implementation of many reforms.
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The Prime Minister appears to be sincerely
interested in reform, and the government will continue these attempts
In the two remaining months during which he has special powers. Sim-
ilar inconclusive results may be expected.
3. Majority of German officers in Syria will leave in January:
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According to an American official in Damascus,
only three of the approximately 20 former Ger-
man army officers engaged by the Syrian Govern-
ment will renew their contracts. The others
are leaving in January because of failure to receive salary increases
and because of exasperation over Syrian "stupidity" and "false pride."
Comment: Syria's dictator, Colonel Shishakli,
has clearly indicated to the American Ambassador in Damascus that he
would like a US military aid program similar to that in Turkey. Turkey,
Britain and France would probably like to replace the German group with
their own officers.
WESTERN EUROPE
4. Czechs threaten to break off trade negotiations with Austrians:
An Austrian Foreign Ministry official has told
the American Embassy in Vienna that the
Czech delegation has threatened to break off
the current trade negotiations if an agreement
is not reached by Christmas. Although the Czechs have increased coal
offers to meet Austrian requests, there seems to be a concerted threat
on the part of Czechoslovakia and Poland to cut off all coal shipments if
the Austrians do not agree to their terms.
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Comment: The A ustrians desire to obtain
Czech coal to conserve dollar funds. They may be overestimating
the Czech threats, however, due to their fear that a collapse in ne-
gotiations would endanger their export market in Czechoslovakia.
The Czech delegation continues to demand
Increased Austrian aluminum exports and the renewal of last year's
agreement to export one million dollars' worth of ball bearings.
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5. East German five-year plan reportedly suspended for rearmament
drive:
the East German Economic
ed and a new plan to concentrate factory production
on rearmament substituted.
Comment: The report that the Soviet Union
.ordered a suspension of th�e�E-TsTrerman five-year Economic Plan
in favor of a new plan that concentrates on rearmament is probably a
somewhat distorted account of an actual development.
The original f ive -year plan has probably been
extensively revised to increase production of heavy machinery, machine
tOols, electronics and railroad equipment as well as armaments. A re-
ported recent secret directive by the East German Ministry of Finance
listed "financing of the National Armed Forces" as one of the primary
objectives of the 1953 budget.
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6. interest grows in American-West German bilateral arms pact:
means for
An American official in Munich, reporting
on the chances for ratification of the EDC
treaty, states that an increasing number
of West Germans favor a bilateral defense
treaty with the United States as the only
securing the formation of German defense forces.
re -
sistance to such an arrangement might be overcome by reducing the
number of German divisions to six from the twelve projected under
EDC.
Comment: Should the members of the We st
German Constitutional Court believe that rearmament can be effected
outside EDC, they may be more inclined to declare the Bonn and Paris
treaties unconstitutional. There is considerable sentiment in West
Germany for the adoption of a bilateral treaty in preference to the pro-
jected arrangement.
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