CURRENT INTELLIGENCE BULLETIN - 1953/03/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02900528
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: March 4, 1953

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SECURI 1FORMATION
4 March 1953
Copy No. 59
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO,
O
NO Co HANGE IN CSS.
DEO-PSSIVIED
CLASS. 0-WAGED TO; TB
NEXT 'REVIEW DATE'.
AUTH: 70-
DXTE: VIEWER
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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sEcLffY INFORMATION
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SUMMARY
SOUTHEAST ASIA
1. American and Thai attaches excluded from observing Burmese
military operation (page 3).
2.
NEAR EAST - AFRICA
3. Mossadeq opponent declines Shah's offer of Iranian premiership
(page 4).
4. Israel reportedly makes compensation of Arab refugees a
national policy (page 5).
5. Indian Ambassador to Cairo actively promoting Egyptian
"neutralism" (page 5).
WESTERN EUROPE
6. Comment on dispute over formation of new Austrian government
(page 6).
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SOUTHEAST ASIA
1. American and Thai attaches excluded from observing Burmese military
operation:
2.
The Burmese War Office has invited the Briti(h)(2)
French, and Indian attaches in Rangoon to ob-
serve a military operation against Chinese
Nationalist forces in northeastern Burma which
is to begin in a few days. The American Army
Attaca believes that his exclusion, along with that of the Thai attache,
was an obvious slight intended to convey the Burmese attitude regarding
the Nationalist problem.
Comment: The exclusion of the American
attache is the first indication that relations between Burma and the United
States, which have steadily improved during the last two years, have been
affected by the recent activities of the Nationalists.
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NEAR EAST - AFRICA
3. Mossadeq opponent declines Shah's offer of Iranian premiership:
The Shah, trying in desperation to find a
successor to Prime Minister Mossadeq,
has asked National Front deputy Hossein
Makki to accept the premiership, accord-
ing to Minister of Court Ala. Makki reportedly has refused, consider-
ing it premature to oust Mossadeq now when it could be done a little
later with minimum effort.
According to Ala, the Shah does not wish
to fight and continues to hope for a compromise.
Comment: Reports from Iran have specu-
lated that Makki, who recently joined other old-line National Front
leaders opposing Mossadeq, might be nominated as Prime Minister
by a coalition of Kashani and the conservatives. His refusal suggests
that he fears Mossadeq's strength�
The Shah's continued inability to decide on
a firm course of action indicates that any compromise between
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Mossadeq and the Shah will be at the latter's expense. The Shah's
Inaction will eliminate his conservative pro-Western supporters as
an effective political influence in Iran.
4. Israel reportedly makes compensation of Arab refugees a national
poiicy
The Israeli Government has adopted
compensation of Arab refugees as a
national policy, the secretary general
of the Prime Minister's office advised
the Departmt of State on 27 February. He planned to recommend
that Israel officially announce this policy soon in view of the imminence
of Bonn ratification of the German-Israeli Restitution Agreement, to
which the Arabs are strongly opposed.
Comment Israel previously agreed in
principle to compensation as an integral part of an over-all peace
settlement. This is the first indication that it might consider the
problem separately.
Early implementation of this policy is
unlikely in view of Israel's serious payments difficulties and the
differences which will probably arise over the amount of compensation.
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5. Indian Ambassador to Cairo actively promoting Egyptian "neutralism"%
Indian Ambassador Panikkar in Cairo has 3.3(h)(2)
recently been extremely active in promoting
Egyptian "neutralism," according to Ambas-
sador Caffery. He feels that Panikkar is
capitalizing on the appeal of Arab-Asian "neutralism" as prospects
diminish for an early settlement with Britain.
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Comment: K. M. Panikkar is a former
Indian Ambassador to Peiping and a Communist sympathizer. He can
be expected to exploit existing Egyptian neutralist sentiment in an
effort to prevent the establishment of a regional defense organization
which might extend membership to Pakistan.
WESTERN EUROPE
6. Comment on dispute over formation of new Austrian government:
The Austrian People's Party's proposal
for a three-party "government of concentration" represents a danger-
ous maneuver designed to curb the influence of the Socialists, This
effort, if persisted in, will further delay the formation of a government,
embitter relations between the former coalition partners, and probably
open the government to more effective Soviet attacks.
The Socialists, through their party press,
have declared that they "absolutely reject" the participation of the
Union of Independents in the government. They also warn that a
rightist People's Party-Independents coalition would thwart the will
of the voters and impair Austrian prestige abroad�
A belief by either major party that the US
supports its policies could easily make it impossible to re-form the
old two-party coalition, the preservation of which is considered essen-
tial for a stable government.
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