CURRENT INTELLIGENCE BULLETIN - 1953/07/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02020584
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: July 22, 1953

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22 July 1953
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Copy No, 67
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANCii:: 1;',1 CLASS.
CLAL TO: TS S C
NEXT DATE;
L.171-1: NH � 7
LAT riavIEWER
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
1 . South Korean foreign minister threatens to prevent armistice
(page 3).
. Negotiations for Japanese conservative coalition government
under way (page 4).
SOUTHEAST ASIA
V. Viet Minh possibly planning surprise attack in Laos (page 4).
5.
NEAR EAST - AFRICA
6� Israel and USSR reportedly to raise their legations to
embassies (page 5)
7. Sordan objects to official Greeti. ,..ontact with Israeli official
/ in Ierusalem (page C).
V. Resumption of Anglo-Egyptian talks faces further delay (page 7).
WESTERN EUROPE
9. France prepared to answer on Saar issue during German election
campaign (page 7).
LATIN AMERICA
I.P American copper companies in Chile may face new difficulties
(page 8).
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South Korean foreign minister threatens to prevent armistice
Ambassador Briggs reports that South Korean
foreign minister Pyun on 21 July made an
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"unequivocal, reckless and last-minute" threat
to torpedo" the armistice by demanding "clar-
assurances which UN chief negotiator Harrison
ifications" on two of the
made to the Communists on 19 july. Specifically, Pyun and Prime
745:lister Paek Tu-chin wanted to know what Harrison meant when he
said that the UN would "maintain the armistice" if it were violated by
South Korea, and would "protect" neutral nation personnel authorized
to enter South Korea,
Implying that Robertson had shown bad faith
In his conversations, Pyun and Paek also demanded to know whether
the United States would give "moral and material support" in case of
unilateral South Korean military action, and whether it would grant
Rhee the type of mutual defense pact he requested on 9 July.
2.
In the past Rhee's opposition to the truce has
risen whenever it seemed imminent. It is possible that Rhee plans to
exploit the unsettled issues in the Rhee-Robertson agreement in a
last-minute effort to block a truce or gain further concessions from
the United States.
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3. Negotiations for Japanese conservative coalition government under
way:
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Hayato Ikeda, an influential Liberal leader, 3.3(h)(2)
is negotiating with the Progressive Party
for the formation of a coalition government
following adjournment of the Japanese Diet
scheduled for mid-August. Ikeda has intimated to American embassy
officers that should the coalition emerge, he would urge Premier
Yoshida to visit the United States and Great Britain and then grace-
fully retire as an elder statesman. The embassy notes that Ikeda
seems to be successfully effecting a liaison between the Liberals
and Progressives.
Comment: Several recent moves, apparently
made in deference to the Progressive Party,probably enhance the pros-
pects for an eventual conservative coalition. Prominent leaders of
important factions within the conservative opposition parties have
indicated that Yoshida's retirement is an essential prerequisite for
any conservative amalgamation.
Japan's political situation probably will remain
unstable until a conservative coalition or merger is accomplished.
SOUTHEAST ASIA
4. Viet Minh possibly planning surprise attack in Laos:
The US army attache in Saigon reports that
French intelligence headquarters suspects
hat the Viet Minh is planning a surprise
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5.
attack on Luang Prabang, the royal capital of Laos. This suspicion
Is based on information that a Viet Minh regular battalion has been
ordered to reconnoiteridefenses there.
Comment: French pilots reportedly sighted
an enemy force of possibly three battalions moving toward Luang
Prabang from upper Laos in early July.
French defenses in northern Laos have
been weakened in recent weeks by the redeployment of the bulk
of the units southward and to the TonkinLdelta. There are now three
French battalions at Luang Prabang, one of which is in poor condi-
tion, while the Viet Minh is believed to have at least two and possibly
four in that area.
NEAR EAST - AFRICA
6. Israel and USSR reportedly to raise their legations to embassies:
The Turkish minister in Tel Aviv has
Informed American charge Russell that
Israel and the USSR have agreed to raise
their respective diplomatic missions from
legations to embassies.
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The minister stated that the Soviet embassy
would be located in Tel Aviv. Russell comments, however, that other
sources believe the question of its location will be held in abeyance.
Comment: This is the first report that the
level of representation may be raised. The United States has main-
tained an embassy in Tel Aviv since the Jewish state was established
in May 1948.
7. Jordan objects to official Greek contact with Israeli official in
Jerusalem:
Jordan has sharply criticized Greek diplo-
matic representative Alto for calling on
an Israeli foreign ministry official in
Jerusalem. According to American consul
general Tyler, the Jordanians are thinking of barring Alto from their
section of the city.
Tyler points out that the reaction of Jor-
danians indicates the strength of Arab feeling. He believes that if
an American embassy official from Tel Aviv should call on the
Israeli Foreign Office in Jerusalem, the advantage gained from
the new American approach to the Arab states would be lost.
Comment: This is the first report of an
official contact with the Israelis in Jerusalem by a Wsn
tp-
lomat since Israel moved its foreign ministry on 13 July. The
Foreign Ministry is now represented in Tel Aviv 3nly by a small
liaison office.
Contact with the Israelis in Jerusalem by
Western diplomats now in Tel Aviv is likely to increase the bitter-
ness of the Arabs. On 16 July they officially protested to the UN
and are likely to demand UN countermeasures against Israel at
the next seF�aion of the General Assembly.
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. Resumption of Anglo-Egyptian talks faces further delay:
General Robertson, British military dele-
gate for the Anglo-Egyptian talks, on his
return to Cairo from the Washington con-
ference, told Ambassador Caffery on 20
uy a e � g new to.offer on theformula for the future of
the Suez base "aside from some slight flexibility."
Robertson, however, asked Caffery to try
to arrange a casual meeting with the Egyptian military group in the
hope of promoting a reopening of the talks.
On the same day, Egyptian foreign min-
ister Fawzi indicated to Caffery that unless Robertson had "some-
thing new" to suggest, there would be no object tn.restming-negotia-
tions.
WESTERN EUROPE
� France prepared to answer on Saar issue during German election
campaign:
French high commissioner Francois-
Poncet states that no reply to Chancellor
Adenauer's 25 June letter objecting to the
revised French-Saar conventions signed
in May is planned before the West German September elections.
France does, however, intend to keep a reply on file for use in
the event it is attacked on the Saar issue during the German elec-
tion, campaigning.
Francois-Poncet also told a US high
commission official that he was at a loss as to the real intentions
of Adenauer, who had previously shown a willingness to seek a
Europeanization solution after the election.
Comment: The West German opposition
Social Democratic Party can be expected to exploit the Saar issue
fully in the election campaign.
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LATIN AMERICA
10. American copper companies in Chile may face new difficulties:
The Chilean minister of finance has pre-
sented for President Ibanez' approval
a decree creating a new copper sales
corporation. The corporation's council,
with six of its nine members to be appointed by the president,
would purchase copper from the producers at a price fixed by
the Chilean Central Bank and would set the selling price. The
copper companies have not been consulted about the decree.
The minister of economy and commerce
has hinted that if the United States does not purchase Chile's un-
sold copper, now about 50, 000 tons, public pressure might force
sales to Orbit countries.
Comment: Copper sales have been a
government monopoly since May 1952. The creation of a copper
sales corporation, however, would formalize government control
of the copper industry and might be another step leading to com-
plete nationalization of the American companies which produce
90 percent of Chile's output.
It seems unlikely that Chile would forego
the benefits of United States aid by initiating direct trade with the
Orbit at this time.
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