CURRENT INTELLIGENCE BULLETIN - 1953/10/10

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02869427
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: October 10, 1953

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CURRENT INTELLIGENCE BULLETIN
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NO CHANGE R4 CLASS. er
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CLASS. CHANGED TO: TS S
t'OCT REVIEW DATE- 2.0 o 9
MTH: MR 70-2
DATE REVIEWER:
REVIEWER:
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10 October 1953
Copy No.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOPS- RE
SECU INFORMATION
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ECURITY INFORMATION
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SUMMARY
GENERAL
ti;e Sweden breaks off trade talks with Czechoslovakia (page 3).
British to propose study of tactics for Korean conference (page 3).
SOVIET UNION
3. Rubber coating may reduce vulnerability of Soviet submarines
(page 4).
NEAR EAST - AFRICA
. 4. Iran unable to solve critical currency shortage (page 4).
5., Iraqi foreign minister urges ban on French air traffic (page 5).
'IX Anglo-Egyptian talks face new delays (page 5).
EASTERN EUROPE
7. Hungarian peasants' struggle against collectives may be intensified
(page 6).
WESTERN EUROPE
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SECURITY INFORMATION
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GENERAL
1. Sweden breaks off trade talks with Czechoslovakia:
Sweden broke off trade negotiations with
Czechoslovakia on 7 October, with no
provision for their resumption.
The Swedish government considers that
since Czechoslovakia and Poland have apparently found an alternate
source of iron ore in Brazil, the Swedish bargaining position will be
weakened, and that in any further negotiations the Orbit may increase
Its demands for strategic commodities.
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Comment: The question of Czech com-
pensation for nationalized Swedish property has been a key issue in
the negotiations, which began on 1 May.
Czechoslovakia is negotiating for about
120,000 tons of high-grade iron ore from Brazil. Sweden contracted
to ship 500,000 tons to Czechoslovakia last year, but suspended ship-
ments of iron ore to both Czechoslovakia and Poland in October 1952
because of their difficulties in making payment.
2. British to propose study of tactics for Korean conference:
The British Foreign Office is preparing
to suggest to the United States that a
conference be held immediately to develop
tactics for a Korean political conference
In case the Communists make a surprise announcement that they will
attend. The British feel that such agreement might come just before
the 28 October deadline for the political conference and that it should
not catch the UN napping.
The British believe that the tactics should
be worked out by the United States, Britain, France, Australia and
one Asian nation, and that their findings should be submitted to an
early meeting of all 16 members of the United Nations Command.
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TOP CRET
CURITY INFORMATION
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SOVIET UNION
3. Rubber coating may reduce vulnerability of Soviet submarines:
Comment: Rubber coating can reduce up
to 60 percent the effective range of American sonar submarine detec-
tion equipment and thereby seriously hamper antisubmarine operations.
The coating of a large number of submarines
could be taken as an indication of the imminence of submarine warfare,
since the life of such a coating is limited. German experiments during
World War II were based on a life of one year.
NEAR EAST - AFRICA
. Iran unable to solve critical currency shortage:
Iranian finance officials are unable to
suggest a solution of Iran's critical rial
shortage, according to Point IV director
Warne, unless the proposed new notes are
backed by an additional American loan.
Comment: The stability of Zahedt's
government is seriously threatened by the rtal shortage, which
prevents it from meeting Its financtal commitments. The American
government has informed Iran that the use of dollars as a backing .for
the currency is financially unsound. Minister of Finance Amini, how-
ever, in an apparent attempt to spur more aid, announced on 5 October
that the government wanted to issue a billion rials against dollar
security. The next day the "rump" Majlis approved this plan.
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SECURITY INFOR
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5. Iraqi foreign minister urges ban on French air traffic:
Bakr believes this would refute the
charges of other Arab delegations that Iraq is not sufficiently
Interested in Arab problems because it supported Turkey's
membership for the Security Council against the wishes of most
Arab countries.
Comment: The suggested move seems
more closely connected with an to strengthen Iraq's position
in the Arab League than with any recent French action. While the
other Arab states would probably be slow to act on such a proposal,
the League's Political Committee,
appointed a subcommittee to study the effect on
the Arabs of a boycott against France.
6. Anglo-Egyptian talks face new delays:
Egyptian spokesmen feel that it may take
six months to draft a definitive Suez
agreement.
Egypt has agreed to consider a British
memorandum covering such points as the time at which British
technicians are to be replaced by inspectors, and RAF staging
facilities. They believe that these points must be considered in
detail before an Anglo-Egyptian agreement is possible.
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Comment: In view of Egyptian impatience,
any delay in reaching agreement offers serious problems. Ambassador
Caffery has observed that the Egyptian representatives do not share the
British "poker game" concept of the negotiations and might impulsively
throw down their cards and walk out.
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CURITY INFORMATION
EASTERN EUROPE
7. Hungarian peasants' struggle against collectives may be intensified:
8.
The American legation in Budapest ex-
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pects the Hungarian decree of 3 October,
under which peasants may leave collectives,
to intensify the struggle between peasants
and government. The decree gives farmers a legal basis for resisting
government and party pressure but is sufficiently ambiguous to permit
the use of terror methods by party bosses to prevent withdrawals.
Comment: Evidence is mounting that the
government will be forced to lake coercive measures to prevent large-
scale withdrawals from cooperatives this fall. This situation may well
result in physical violence and mass arrests this winter.
In order to prevent similar difficulties, the
other Satellites have carefully avoided promising peasants the right to
withdraw.
WESTERN EUROPE
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SECURITY INFORMATION
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