CURRENT INTELLIGENCE BULLETIN - 1953/01/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02026912
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: January 28, 1953

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28 January 1953
Copy No,
CURRENT INTELLIGENCE BULLETIN
Office of Current Intelligence
59
DOCUMENT NO.
NO CHANGE IN
tl DECLASSIFIED
CLASS. ED TO T.,
NEXT REVIEW DATE:
AUTH:
CENTRAL INTELLIGENCE AGENCY
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RITY INFORMATION
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SUMMARY
GENERAL
1. Comment on obstacles to extension of strategic trade controls
(page 3).
2. Pakistan to discuss MEDO with Egypt (page 3).
FAR EAST
3. Possible merger of Japanese Liberal and Progressive Parties
seen (page 4).
4. Chiang Kai-shek reported strongly opposed to using Nationalist
troops in Korea (page 5).
SOUTHEAST ASIA
5. Indonesia may order bunkering of Polish vessel (page 5).
SOUTH ASIA
6. Comment on shifts in Afghan Cabinet (page 5).
EASTERN EUROPE
7. Hungarian Minister of Justice reported under arrest (page 6).
WESTERN EUROPE
8. Report of concession may hurt American position on Austrian
treaty (page 6).
9. Pleven reassures United States on blocked military funds
(page 7).
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GENERAL
1: Comment on obstacles to extension of strategic trade controls:
Recent reports indicate that although
some progress is being made in extending the coverage of COCOM
Lists land II, the more comprehensive US proposals to tighten
strategic trade controls are not likely to be accepted. Conse-
quently a large volume of strategic materials will continue to
reach the Soviet Orbit.
In fact, as pointed out by the US Ambas-
sador to Sweden, Western European countries are likely to press
for an easing of strategic trade controls as a result of the shift
from a sellers' to a buyers' market in international trade and
the less favorable bargaining position in which the United States
finds itself as it reduces aid funds. The two neutrals, Sweden
and Switzerland, whose controls somewhat parallel those of
COCOM, are also strongly resisting US pressure for an expan-
sion of the scope of their controls.
The most serious defects in the trade
control program, such as the lack of a uniform program of con-
trols over transit shipments, free ports, financial transactions,
shipping, and bunkering, will therefore remain uncorrected for
the present.
2. Pakistan to discuss MEDO with Egypt:
The Pakistani Defense Secretary has
informed the American Embassy in
Karachi that his government has in-
vited an Egyptian military mission to
Karachi to discuss MEDO. During
the discussions, Pakistan intends to
point out the desirability of Egyptian
participation.
According to the Defense Secretary,
the talks are scheduled ar early February. A 25 January Cairo
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radio broadcast in Arabic stated, however, that the Egyptian
mission would leave for Pakistan early in March.
Comment: vakistan's active promotion
of MEDO at this time is probably motivated by the urgent necessity
for its government to demonstrate some concrete signs of strength
to counteract internal weaknesses.
FAR EAST
3. Possible merger of Japanese Liberal and Progressive .rarties
seen:
Foreign Minister Okazaki told Ambas-
sador Murphy on 25 January that pre-
liminary conversations are undOr way
to merge the Liberal and Progressive
les betore the spring elections. He stated that the negotia-
tions are especially delicate since they involve dropping from
party membership "disaffected or unwanted" Liberals and left-
wing Progressives.
He said this strategy appeared safer
than to try to form a Liberal-Progressive coalition government.
He doubts that the Liberals alone would return even a slender
majority.
Comment: Strong pressures exist in
both parties for purging dissidents and uniting Japanese con-
servative forces into a single strong party to restore parliamen-
tary stability.
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4. Chiang Kai-shek reported strongly opposed to using Nationalist
troops in Korea:
The Iapanese Ambassador to Nationalist
China, now in Tokyo for consultation,
states that Chiang Kai-shek's government
is "ardently opposed" to using Nationalist
troops in Korea.
Comment: Chiang has stated privately
on several occasions in recent imonths that he would be willing to
contribute troops to UN forces in Korea under certain conditions,
but would prefer to preserve them for an eventual operation against
the China mainland.
SOUTHEAST ASIA
5. Indonesia may order bunkering of Polish vessel:
The Indonesian Government may order
the Shell Oil Company in Djakarta to
bunker the Polish vessel Irulaski which
has been in the port for several days.
The company has refused the ship's request for fuel on orders
from the British Government which believes that the vessel may
be carrying strategic goods. The British are uncertain of their
ability to maintain their position if the Indonesian Government
forces the issue.
Comment: In conformance with its
policy of neutrality, I�doiii11 probably insist that the
Pulaski be supplied fuel by Shell or some other foreign oil com-
pany in Djakarta.
SOUTH ASIA
6. Comment on shifts in Afghan Cabinet:
The shifts in Afghan cabinet personnel
.approved by the King and announced by the Afghan press on 26
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January indicate in every case that Prime Minister Shah Mahmoud's
conservative faction in the government is being strengthened at the
expense of Prince Daud's less temperate followers who are the
strongest proponents of an independent Pushtoonistan.
The cabinet moves may therefore result
from an Afghan Government decision to soften its campaign for an
independent tribal area between Afghanistan and Pakistan.
EASTERN EUROPE
7. Hungarian Minister of Justice reported under arrest:
has reported to
the United States Legation in Budapest
the arrest of the Hungarian Minister of
Justice, Gyula Decsi. Before his appoint-
ment to the Justice Ministry, Decsi, who is of Jewish origin, was
the security police officer in charge of interrogation and reportedly
headed the squad that arrested Cardinal Mindszenty.
Comment: This is the first reliable
report of the arrest of a high government official in Hungary.
Rumors that Gabor Peter, chief of the security police, and
Sandor Nogradi, chief deputy Minister of Defense, have been
arrested remain unconfirmed.
WESTERN EUROPE
8. Report of concession may hurt American position on Austrian
treaty:
The American Embassy in Vienna reports
indications that Foreign Minister Gruber
may have been the "authoritative source"
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for a local paper's report that the West is prepared now to drop
the abbreviated treaty proposal. Gruber may have authorized
the story in an effort to encourage the Russians to attend the
meeting of Austrian treaty deputies scheduled for 30 January.
Comment: The Austrian Government
would consider any resum-iitioriOrnegotiations on the treaty prior
to the February elections a very favorable development.
Soviet acceptance of this newspaper
story as representative of official Austrian views could embar-
ramthe United States in its efforts to support the short treaty
draft.
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9. Pleven reassures United States on blocked military funds
French Defense Minister rleven has
advised the American Embassy in raris
that the government's action in blocking
until 1 April $100,000,000 of the
$4,057,000,000 military budget for 1953 will retard arms pro-
duction and infrastructure projects, but will not affect troop
strength, support of NATO, or the Indochina effort. Pleven
further specified that this step is distinct from the budget law's
"conditional" section, which provides for $125,000,000 of additional
military expenditures in the event France receives an equivalent
supplementary commitment of American aid.
Comment: This information serves
to correct earlier press reports�that release of the $100,000,000
of blocked funds depended on receipt of additional American aid.
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