CURRENT INTELLIGENCE BULLETIN - 1951/09/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02745268
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: September 1, 1951

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*110� 11U1:7�Z-Belt1.c
1 September 1951
Copy No. CI-
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO,
NO CHANGE IN CLASS,
t DECLASSIFIED
CLAS. CHANGED TO: TS S C 200
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AUTH: FIR 701_
DATEnli 7w7g REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
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Attitudes of Latin American delegations to the Japanese treaty conference
(page 3).
USSR
3. East-West trade meeting concludes with few prospects (page 4).
FAR EAST
Japan reluctant to discuss bilateral treaty with Chinese Nationalists
(page 5).
NEAR EAST
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6. Iranian army morale may face test (page 6).
WESTERN EUROPE
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7. Italy objects to conditions for postponement of Trieste elections (page 7).
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GENERAL
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2. \Attitudes� of Latin American delegations to the Japanese treaty conference:
Each a the twenty Latin American republics
plans to send a delegation to sign the Japanese treaty at San Francisco, ac-
cording to Department of State cables. Each supports the US in principle
although some, particularly Peru and Venezuela, have expressed concern
that the wording of the treaty does not make absolutely clear their right to
retain Japanese property which was seized during World War Ii
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Following the Department of Stat is assurances
that all points raised are covered by the treaty, the Peruvian Foreign Minis-
ter told the U$ Ambassador in. ima that he had instructed the Peruvian
delegate to sign "'with no reservations." The US Embassy in Caracas re-
ports that the Venezuelan Foreign Office seems satisfied with the
Department's comments, although the possibility of a declaration of inter-
pretation at the conference still exists. Until specific assurance to the
contrary is received, it must be considered that Peru also might make such
a declaration.
USSR
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According to US observers at the recent East-
West trade meetings in Geneva, Western Euro-
pean delegations did not receive any firm indi-
cation of a Soviet desire to trade on a mutually
a vantageous basis. Consequently, no Western delegation would agree to
another multilateral meeting. None is optimistic about future bilateral
talks with the Soviet Orbit, with the exception of the UK, which is currently
negotiating a new bilateral agreement
In the opinion of the Western European dele-
gations, the motivations of the USSR were both commercial and propagan-
distic. Many delegations believe that the USSR is seriously interested in
promoting increased trade or at least in maintaining the present level, which
is already jeopardized by the general rearmament program and Western
trade controls. Soviet participation also obviously bolstered the current
peaceful coexistence line and may generate pressure against East-West
trade controls.. At no point did the Communist representatives launch into
the usual diatribe against Western European trade restrictions or the US.
A US observer concluded that the Soviet dele-
gation had instructions to press for a broader trade meeting. The Soviet
delegation, however, would not specify any details or indicate willingness
to reach ultimate agreement on increased East-West trade.
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.NOF SEUL-it i
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Comment: The USSR has not reduced its de-
mands for strategic materials in exchange for Orbit grain, timber or coal,
in order to obtain new trade arrangements� The Soviet delegation had, how-
ever, obtained information about Western European needs which may im-
prove the USSR's bargaining position in future bilateral talks.
FAR EAST
ant to kiuss bi ater I hin Nationalists:
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The Department of State considers it highly
desirable that Isao Kawada, prewar Japanese
Minister f Finance, or some other suitable
person proceed to Formosa for exploratory
talks with the Chinese Nationalists regarding
a bilateral treaty of peace.
When approached on this matter, a Japanese
Foreign Office official told the US Political Adviser in Tokyo that the Japa-
nese Government would not be willing to entrust discussions of a possible
bilateral treaty to Kawada, who has been invited by the Nationalist Govern-
ment to become its financial adviser. The Political Adviser comments that
it is apparent the Japanese Government is intent on postponing any action
toward a bilateral treaty until after the signing of the multilateral treaty at
San Francisco. 3.3(h)(2)
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� � . .
NEAR EAST
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6. Ltaala j,Bm. may face es
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An Iranian spokesman has
told the US Military Attache in Tehran that while
the Iranian Army is still being paid promptly,
there is a possibility that pay may have to be sus-
pended if Iran's critical financial condition does not improve. The spokesman
believes that such a suspension would impair the army's morale and efficiency,
but not to the point where mutiny or other disloyal activities would be likely.
Comment: Although Iran's financial situation is
serious, current estimates indicate that the government will be able to main-
tain its current rate of expenditures for several months.
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WESTERN EUROPE
Italy objects to conditions for postponement of Trieste elections
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Italy objects to making the two-month postpone-
ment of the Trieste elections conditional on the
assurance that Italy will take the initiative with
Yu!*slavia regarding the disposition of the Free
Territory. This objection was voiced by the
Italian Charge in Washington in response to the
US and UK decision to permit the postponement
until December. Italy feels that such a provi-
sion constitutes pressure on Italy with no equ,Lvalert pressure on Yugoslavia.
Previously the British had urgcd evc.11 1-17,zrures, i. e, that postpone-
ment be permitted only after assurance that �L ilt,..1f7m and Yugoslav Govern-
ments had already agreed to resume negotiatio,..
Callialealt The Italians feel their bargaining
position vis-a-vis Yugoslavia is deteriorating in the face of Yugoslavia's
Increased strategic importance to the W stern powers. There has been a
recent rise in the ever present a.nti-British feeling in Italy due to the impres-
sion that the UK is championing Tito at Italy's expense.
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