CURRENT INTELLIGENCE BULLETIN - 1955/01/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02989043
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: January 12, 1955

13,311079A
II
ffi/die/e/AS, TOP SEPRET
Approved for Release: 2019/09/17 CO2989043
Approved for Release: 2019/09/17 CO2989043
T-043---SECRET
3.3(h)(2)
3.5(c)
12 January 1955
Copy No. 79
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
Ll DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE 20/0
AUTH: liR 70-2
DATE: Zilijee, _ REVIEWER
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
V7i//73A311///A
Approved for Release: 2019/09/17 CO2989043
1.0 ILJ La
"4111.911�'
SUMMARY
GENERAL
FAR EAST
3. Chinese Nationalist naval task group withdrawn from Tachen area
(page 4)0
SOUTHEAST ASIA
4. Indonesian president reported speaker at Communist-controlled
labor congress reception (page 5).
EASTERN EUROPE
5. American legation reports new course failing in Hungary (page 6).
LATIN AMERICA
60 Comment on Costa Rican situation (page 6).
12 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 2
Tnic' cr'R T
Approved for Release: 2019/09/17 CO2989043
Approved for Release: 2019/09/17 CO2989043
� 1 %La I
*AINV"411�
GENERAL
1� Resumption of Polish-Japanese relations under discussion:
Comment: The Warsaw government has
evidently decided to take advantage of the stated intention of the
new Japanese government to regularize relations with the Orbit.
An earlier Polish approach was made last spring. Warsaw's pro-
fessed willingness to overlook the San Francisco treaty, which the
USSR refused to sign, is in accord with the USSR's recent policy
of playing down its previous objection to this treaty as an obstacle
to the resumption of diplomatic relations. Moscow may hope that
the resumption of relations with Poland will encourage Tokyo to
take the initiative in resuming relations with Moscow.
Japanese prime minister Hatoyama stated
Japan should take the initiative in calling on the
USSR and Communist China to terminate the state of war with Japan.
2. West German Socialist leader reported scheduled to meet Nehru:
12 Jan 55
CURRENT INTELLIGENCE BULLETIN
Page 3
�Top-stivirr
Approved for Release: 2019/09/17 CO2989043
Approved for Release: 2019/09/17 CO2989043
WM
IIuupfI
Comment: Nehru will be in Europe
for the Commonwealth conference which opens in London on 31
January. West German Socialists have been talking about "third
force" discussions with him for many months. The fact that a
meeting seems about to materialize testifies to the rising influ-
ence of the all-out neutralist faction in the SPD.
The SPD neutralists believe that present
plans for rearmament will preclude German unification. They
urge that Germany be united and rearmed in a "third force" bloc
comprising India, Egypt, and the European Continental powers,
which together would form a cordon sanitaire between the United
States and the Soviet Union.
FAR EAST
3. Chinese Nationalist naval task group withdrawn from Tachen area:
All ships of the Chinese Nationalist naval
task group in the Tachens were withdrawn
from the area on 10 January, following
damage to the principal unit from attacks
by Chinese Communist planes. This move-
ih�chen commander without local naval support. The
bulk of the Tachen task group is now in the vicinity of Nanchishan, an
island about 85 miles southwest of the Tachens.
Communist naval vessels, believed to in-
clude torpedo boats, were apparently lying in wait for the National-
ist ships as they withdrew. A Nationalist gunboat was hit and aban-
doned.
Comment: Lack of naval support for the
Tachen area sharply reduces the defensive capability of the island
12 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 4
Approved for Release: 2019/09/17 CO2989043
_
Approved for Release: 2019/09/17 CO2989043
%mem� Nome'
garrison. Defense efforts for the next few days probably would
also be hampered by the confusion acbompanying rotation of the
garrison troop units, which is now going on.
Current weather conditions in the Tachen
area pose a serious obstacle, however, to an amphibious attack
on the islands. On 10 January winds in the Tachens were reported
to be 50 knots, and high winds are expected to continue.
SOUTHEAST ASIA
4. Indonesian president reported speaker at Communist-controlled
labor congress reception:
Both President Sukarno and Prime Minis-
ter AU Sastroamidjojo spoke at a recep-
tion on 9 January which opened the second
national congress of SOBS!, Indonesia's
largest and completely Communist-controlled labor federation, ac-
cording to the Communist press in Djakarta. Also reported speak-
ing at the reception was Henri Jourdain, deputy secretary general
of the WFTU. Three members of the Indonesian cabinet, mem-
bers of the Indonesian Communist Party politburo, the Soviet am-
bassador, the Czech consul general, and the counselor of the Chi-
nese Communist embassy were also present.
Comment: The Indonesian government's
attitude toward SOBSI's second congress, as reflected in the Com-
munist press story, is different from its attitude toward the first,
which was held in October 1952. At that time the only members of
the government who made an appearance in connection with the
congress were the minister of personnel affairs and the deputy
speaker of parliament.
The American embassy in Djakarta esti-
mates that SOBSI's membership numbers 6002000 and states that
many of its top leaders are directly affiliated with the Communist
Party,
12 Jan 55 CURRENT INTELLIGENCE BULLETIN Page 5
"rfl __Q-Eitle,i1V7-1^
Approved for Release: 2019/09/17 CO2989043
Approved for Release: 2019/09/17 CO2989043
Aviri .:`,...."--=-4"�`""-"""� *we
*sr
EASTERN EUROPE
5. American legation reports new course failing in Hungary:
The new course in Hungary has failed
to bring about more than a nominal in-
crease in agricultural production or to
build a sound basis for long-range indus-
ng to the American legation in Budapest.
In a year-end analysis of the Hungarian economic and political
scene, the legation states that the economy of the country has ac-
tually deteriorated since the inauguration of the new course in July
1953. It has noted only a slight improvement in the standard of
living of the Hungarian people, and states that the nation's economic
contribution to the Soviet bloc has very probably decreased.
Comment: A poor harvest, a shortfall
of over 500,000 tons in coir-min�e-d; and inflation resulting from in-
creasing production costs and falling labor productivity are con-
tributing to Hungary's deteriorating economic position.
Although the October central committee
meeting resulted in numerous high-level policy statements criti-
cizing resistance to the new course and demanding a rapid imple-
mentation of the economic changes, anticipated measures to im-
prove the situation have not been taken.
LATIN AMERICA
6� Comment on Costa Rican situation:
12 Jan 55
The rebel force which early on 11 January
seized control of the Costa Rican town of
Villa Quesada, about 40 miles from San
Jose and an equal distance from the
Nicaraguan border, probably consists
of Costa Rican oppositionists and mer-
cenaries, but the strategy and materiel
support for their movement is believed
CURRENT INTELLIGENCE BULLETIN Page 6
_TOP-SECRET
Approved for Release: 2019/09/17 CO2989043
Approved for Release: 2019)09/17 CO2989043
I
_me ,60.1 %L
to have come from the Venezuelan and
and Nicaraguan governments. The
rebels are reported to be preparing an
airstrip, and early in the evening of
11 January a clandestine radio warned
the Costa Rican public that military objectives and transporta-
tion facilities would be bombed. The radio also transmitted
sabotage instructions.
The strike against the United Fruit
Company in Costa Rica which was called suddenly by Commu-
nist labor leaders on 11 January may be connected with the re-
volt. Former Costa Rican president Rafael Calderon Guardia,
who has for years been plotting to return to power and who is
probably involved in the current revolt, co-operated closely with
the Communists during and after his 1940-1944 term in the presi-
dency.
The government of President Jose
Figueres was planning to attack
the rebels at Villa Quesadawith a company-size force early the
following morning. The government had already commandeered
commercial planes and was expected to use them for strafing the
rebel airstrip.
Unless the rebels can maintain control
of an airstrip within Costa Rica and quickly launch an air offen-
sive, they will probably fail. The Venezuelan and Nicaraguan
regimes are unlikely to become overtly involved. The rebels ap-
pear thus far to be few in number and to be relying for victory on
the psychological effect of their radio broadcasts and expected air
demonstrations, and on what they probably consider strong domes-
tic opposition to Figueres. They may have overestimated the
latter factor and underestimated the ability of the Costa Rican
Civil Guard.
The 1500-man Civil Guard, Costa Rica's
only armed force, is led by men of undoubted loyalty to Figueres
and has been undergoing intensive training in recent months. The
reserves, which number 3,000 and are now being mobilized, showed
high morale and ability during their recent training.
12 Jan 55
CURRENT INTELLIGENCE BULLETIN Page 7
jj1P--SEeR1-
Approved for Release: 2019/09/17 CO2989043
Approved for Release: 2019/09/17 CO2989043
Le
IOW
12 Jan 55
CURRENT INT:ELLIGENCE BULLETIN Page 8
TOR-SEeRET
Approved for Release: 2019/09/17 CO2989043