CURRENT INTELLIGENCE BULLETIN - 1953/07/10

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02872233
• 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 10, 1953

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10 July 1953
Copy No. G
CURRENT INTELLIGENCE BULLETIN
DOCUMENT No. � 1
NO CH:,NEIE HA OLASS.
CLA, CHAr7ED TO: TS S
NEXT REVIEW DATE: _
AUTH: Nil 70iou
DATEVAfrel... REVIEWER
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
SOVIET UNION
1. Pravda reports extent of new Soviet emphasis on production of
consumer goods (page 3).
FAR EAST
ZRelease of Chinese prisoners by Rhee feared if Robertson talks
/fail (oage 3).
5.
SOUTHEAST ASIA
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Burmese reportedly suspect US embassy of supplying arms to
Chinese Nationalists (page 5).
EASTERN EUROPE
6. Yugoslav diplomat believes Satellite discontent responsible for
Soviet peace moves (page 6).
WESTERN EUROPE
7. Dutch diplomat believes France will never ratify EDC treaty
(page 6).
French government leaders stress need for prompt Indochina
solution (page 7).
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SOVIET UNION
1. Pravda reports extent of new Soviet emphasis on production of consumer
goods:
In an editorial on 8 July Pravda stated that
this year "additional reserves have been
found for an increased output of consumer
goods amounting to over twenty billion rubles
in excess of the envisaged annual plan for consumer goods turnover."
3.3(h)(2)
Comment: Such an allocation of additional
reserves by the government to expand the amount of consumer goods
available on the market represents an increase of about 3-1/2 percent
above the 11 percent planned annual increase specified in the fifth Five-
Year Plan. It could probably be met without cutbacks from the 1952
level of armaments and capital goods production but would involve some
decrease in their previously planned production growth.
FAR EAST
2. Release of Chinese prisoners by Rhee feared if Robertson talks fail:
The American embassy in Pusan is concerned 3.3(h)(2)
over indications, which are still inconclusive,
that South Korea may be considering a uni-
lateral release of the Chinese anti-Communist
prisoners in the event the Rhee-Robertson talks fail.
The embassy notes that the prisoners are
still guarded primarily by South Koreans, and quotes the American
commander of the prison camps as stating that their release could
not be prevented and their recapture would be difficult or impossible.
3.
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3.
3.
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SOUTHEAST ASIA
4.
5. Burmese reportedly suspect US embassy of supplying arms to Chinese
Nationalists:
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)(2)
The Burmese suspect the American embassy 3.3(h)(2)
in Rangoon of supplying Chinese Nationalist
troops with small arms. and have placed it
under surveillance,
a high governme13.3(h)(2)
official was concerned by the repeated flights of the air attache's plane
to Bangkok over territory in which the Chinese Nationalists are operating
with the Karens.
Comment: While the Burmese have suspected
the United States of supporting Li Mi's troops in the past, the embassy
in Rangoon has not been under suspicion.
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The Burmese ambassador in Thailand has
maintained friendly relations with the American embassy there,
particularly in connection with the negotiations for the evacuation
of the Chinese troops.
EASTERN EUROPE
6. Yugoslav diplomat believes Satellite discontent responsible for
Soviet peace moves:
Yugoslav under secretary for foreign
affairs Bebler stated on 8 Iuly that the
current Soviet peace offensive has been
orcect upon the isremLin by widespread and growing discontent
among the Satellites. Bebler noted serious unrest in Rumania,
interpreted the change in Hungarian leadership as an effort to
avoid a potentially explosive situationl
Comment: There are no reliable signs
that increased popular discontent has become explosive in Rumania,
Hungary or Albania. Recent Soviet-sponsored reforms and con-
ciliatory tactics appear to be calculated efforts to cope with long-
standing internal and foreign policy problems rather than a response
to a crisis situation.
On 8 July, Tito publicly cautioned that
hopes for the accomplishment of any extraordinary change in
Soviet aims would be "unrealistic" and strategically unsound.
WESTERN EUROPE
7. Dutch diplomat believes France will never ratify EDC treaty:
The Dutch ambassador in London, Dirk
Stikker, believes France will never
ratify the EDC treaty. In his opinion,
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expressed to American officials in The Hague, the Soviet Union
will be able to delay French action indefinitely because of the
"leaks amounting to a pipeline" from the French Foreign Ministry
to Moscow.
Stikker considers that West Germany's
admission to NATO is the only "correct solution," but favors
prompt EDC ratification by the smaller EDC countries in order
to show up France as the holdout.
Comment: The Laniel government
has already indicated that French EDC ratification is out of the
question until the Saar issue is settled, the treaty protocols signed,
and British association with the defense community clearly defined.
8. French government leaders stress need for prompt Indochina
solution:
Defense Minister Pleven told Ambassador 3.3(h)(2)
Hughes on 7 July that it will be difficult to
withstand popular pressure for withdrawal
of French troops if no other solution to the
Indochina problem is found shortly. He said that France's best hope
is that the "promise and fact" of greater independence for the Asso-
ciated States would pull non-Communist nationalist elements away
from the Viet Minh.
Both Premier Laniel and Deputy Premier
Reynaud agreed with Pleven that General Navarre's plan for a stepped-
up war effort by the French is out of the question. If the present
French government cannot negotiate "some relatively satisfactory
arrangement," they warned, Mendes-France will come to power and
negotiate something far worse. Reynaud implied that American per-
sonnel experienced in training Koreans would be useful.
Comment: In recent conversations with
American off icials French government spokesmen have repeatedly
used this implied threat of an early withdrawal from Indochina to
buttress their requests for greater assistance.
While the French earlier decided against the
mass-production training methods used in Korea, events will probably
force an appeal for more than financial aid.
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