CURRENT INTELLIGENCE BULLETIN - 1954/05/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02026941
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: May 4, 1954

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4 May 1954
Copy No,
76
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO, NO CHANGE IN CLASS, (e"
Fl DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEVI DATE: _.2,0 0.9
AUTH: HR 70-2
DATE:8.602/49_ REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
SOUTHEAST ASIA
1.
2.
3.
4.
Direct supply of Soviet vehicles to Viet Minh indicated (page 3)..
Viet Minh seeks data on French investments in Indochina (page 4).
Dejean fears Paris will seek immediate cease-fire to save Dien
Bien Phu (page 4).
SOUTH ASIA
5. USSR to finance construction of gasoline storage facilities in
Afghanistan (page 5).
NEAR EAST - AFRICA
6. Comment on Jordanian cabinet changes (page 6).
7. Moroccan terrorists reported shifting attacks to Europeans
(page 7).
WESTERN EUROPE
8. West German Bundestag debate reveals waning support for
Adenauer's policies (page 7).
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SOUTHEAST ASIA
1. Direct supply of Soviet vehicles to Wet Minh indicated:
Comment: This is the firmest indication to
date of direct supply shipments from the USSR to the Indochinese Commu-
nists. The Viet Minh has long used Soviet trucks, weapons and ammuni-
tion supplied by the Chinese Communists,
2.
3
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3. Viet Minh seeks data on French investments in Indochina:
Comment: Viet Minh diplomatic traffic related
to the Geneva conference has revealed much interest in economic documen-
tation. Such documentation may be intended only for propaganda purposes,
but the reference to French investments suggests that the Viet Minh may
expect a settlement at Geneva that will provide for the disposition of these
assets.
4. Dejean fears Paris will seek immediate cease-fire to save Dien Bien Phu:
Commissioner General Dejean told an Ameri-
can diplomat in Indochina on 2 May that he
feared "certain ministers" in the Paris govern-
ment will press for an immediate cease-fire
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In order to save Dien Bien Phu. Dejean
expected General Navarre to conclude after
the 3-4 May council of war in Hanoi that a
political agreement is the only way to save
the fortress.
At the same meeting the new French ambassa-
dor to Thailand, Offroy, who had just arrived from Genera, expressed the
view that the British, "whether unintentionally or by design," seemed
almost certain to sabotage the Geneva conference. He stated that the
British are actively pushing partition of Vietnam.
Comment: When the French National Assembly
reconvenes on 4 May, the Laniel government is expected to be attacked
for not pressing hard enough for a solution at Geneva.
The British government apparently has not
arrived at any firm policy respecting Indochina. It seems doubtful that
London would accept any form of partition that increased either its risks
or military commitment in Southeast Asia.
SOUTH ASIA
5. USSR to finance construction of gasoline storage facilities in Afghanistan:
The USSR has signed an agreement with the
fghan Ministry of Finance for the construction
of a half-million-gallon gasoline storage instal-
lation at Kabul, according to the American
m ebassy there. has extended a $600,000 credit to Afghanistan,
which is to be repaid in dollars or Afghan products.
The embassy commented that Afghan business
circles believe this to be the first of a series of agreements whereby the
USSR, at exorbitant prices, intends to send its technicians south of the
Hindu Kush Mountains and "obtain a mortgage on the economic future of
Afghanistan,"
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Comment: This agreement is probably
the result of Soviet efforts reported in early April to get Afghanistan
to accept economic and technical assistance from the USSR. It is in ad-
dition to the renewal in December of the annual Soviet-Afghan trade
agreement and the extension of a $3,500,000 credit in January providing
for the construction of grain-processing facilities by Soviet technicians.
Afghanistan's acceptance of Soviet economic
and technical assistance south of the Hindu Kush range may be a device
to forestall Soviet protests if Afghanistan succeeds in attempts,
to obtain Swiss technicians to operate in the
northern part of the country, particularly to exploit the oil resources
there. In view of the alleged high cost of proposed installations, Afghan-
istan may have difficulty in repaying the credits, but the fear of "mort-
gaging" the country's economic future appears to be exaggerated.
NEAR EAST - AFRICA
6. Comment on Jordanian cabinet changes:
The appointment of Tawfiq Abul Huda as the
new Jordanian prime minister to replace Fawzi
al-Mulqi, who resigned suddenly on 1 May, re-
stores the premiership for the fourth time to
this able, pro-British and strongly anti-Communist leader.
American relations with the Amman government
may be improved by the replacement of the Palestinian extremist, Hussain
Khalidi, in the Foreign Ministry by lama" Tuqan, a capable, Western-
educated Jordanian, Abul Hula is not likely, however, to make any sig-
nificant change in Jordan's policy, toward Israel. It is doubtful that Hip:la,
a strong supporter of Aralb unity, will take any unilateral action opposed
by the Arab League.
The new premier will be faced with continued
tension between East and West Jordanians, and with serious economic
problems. In his relations with the other Arab states, he is likely to be
more favorable toward Saudi Arabia than toward Iraq.
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7.. Moroccan terrorists reported shifting attacks to Europeans:
The American consul in Rabat believes that
the recent killing of three Europeans and
the wounding of ten others, plus attacks on
European cafes, clearly indicate that terror-
ists in Morocco have shifted their attacks from pro-French Moroccans
to Europeans, despite the remarks of a high French Foreign Ministry
official to the contrary.
The consul states that--also contrary to
Paris views�tribal police reinforcements recently brought into Casa-
blanca are poorly disciplined and have been involved in shootings of
bystanders, looting and molesting.
Comment: Attacks on Europeans, if main-
tained, would further inflame the serious situation in Morocco.
The proponents of force among the local
French population are apparently still in the majority. The French
civil controller in Casablanca is severely criticized locally for being
"too soft"; the French military commander of the area favors a strong
show of military power and, if necessary, the use of troops. Pro-French
Moroccans are beginning to demand drastic changes in this tough French
WESTERN EUROPE
8. West German Bundestag debate reveals waning support for Adenaueres
policies:
In the opinion of American officials in Bonn,
the 29-30 April Bundestag debate on European
integration and Saar policies demonstrated a
decline in the prestige of Chancellor Adenauer's
coalition. Most of Adenauer's supporters shared the doubts of the coali-
tion Free Democrats, who argued that European military and political
integration will never be achieved.
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According to unconfirmed reports, the
chancellor had to threaten dissolution of the cabinet in order to get the
rightist coalition parties to approve the compromise resolution support-
ing the government's European policies.
The American officials also say that the argu-
ments used by the opposition Social Democratic Party suggest that it
now considers it politically advantageous to step up opposition to Ameri-
can policies.
Comment: It is becoming increasingly appar-
ent that Bundestag patience is wearing thin regarding French delays on
EDC. Although Adenauer had trouble getting coalition agreement on a
resolution, the position finally adopted on the Saar gives him more lati-
tude for negotiation than the Bundestag resolution of July 1953.
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