CURRENT INTELLIGENCE BULLETIN - 1954/09/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03000911
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: September 22, 1954

Approved for Release: 2019/08/13 C03000911,
e
it UP SECRET
22 September 1954
Copy No. 80
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO Gig
NO CHANGE IN CLASS 311(
DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE: 242,11)
AUTH: HR 70-2
DATE: 1 to REveKR:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
3.3(h)(2)
3.5(c)
Approved for Release: 2019/08/13 C03000911
Approved for Release: 2019/08/13 C03000911
Nue
SUMMARY
FAR EAST
1. Yoshida seen likely to survive threat from new conservative
alliance (page 3).
2. South Korean army chief not consulted on anti-US statement
issued in his name (page 4).
SOUTHEAST ASIA
3. Viet Minh rebuffing French bid for privileges in north (page 5).
WESTERN EUROPE
4. France seen trying to build case of American connivance with
German militarists (page 5).
LATIN AMERICA
5. Comment on Chilean president's declaration of state of siege
(page 6).
LATE ITEM
6. Chou and Nehru reported as reaching "oral nonaggression
agreement" (page 7).
* * * *
22 Sept CURRENT INTELLIGENCE BULLETIN Page 2
Tor SECRET
Approved for Release: 2019/08/13 C03000911
_Approved for Release: 2019/08/13 C03000911
J. '4.-J 1. X A...0
Nal
FAR EAST
1. Yoshida seen likely to survive threat from new conservative
alliance:
mbassador Allison believes that the
19 September agreement between con-
servative leader Hatoyama and Pro-
gressive Party president Shigemitsu to
form a new conservative party will not result in a sudden shift
of power prior to Yoshida's forthcoming world tour or during
his absence.
Hatoyama's "defection" has been a
blow to Yoshida, but there has been no upsurge of press or popu-
lar support for the Hatoyama-Shigemitsu combine. Fear is
already being expressed among the Japanese that the alliance
will result in further splintering of the conservative forces.
Allison notes that the new development
appears to be part of a three-way struggle for control of Japan's
conservative forces among the pro-Yoshida Liberals, the advo-
cates of a single conservative party, and the Progressives and
Yoshida-hating Japan Liberals.
Comment: Yoshida and his associates
are counting heavily on his visit th the United States and other
Western nations to restore his and the party's declining prestige.
His conservative opponents are reviving the shipbuilding scandals
in an effort to embarrass him and possibly block his trip in much
the same manner the Socialists did early last summer.
Foreign Minister Okazaki informed
Allison on 16 September that, while Yoshida was beginning to
think of retirement, he would do so only if it could be arranged
"peacefully," and would resist any attempt to force him out pre-
maturely. The extreme factionalism among the conservatives
suggests that Yoshida's elimination would bring no more than
temporary political stability.
Hatoyama brought most of his dissident
Japan Liberal Party back into Yoshida's Liberal Party in
November 1953 and it is still uncertain whether he will again
22 Sept 54 CURRENT INTELLIGENCE BULLETIN Page 3
Tor SECRET
Approved for Release: 2019/08/13 C03000911
Approved for Release: 2019/08/13 CO3000911
'L.,L ...1 IL
NOW
lead his 27 followers in the Diet out of the party, thereby seri-
ously weakening Yoshida's position in the Diet.
2. South Korean army chief not consulted on anti-US statement
issued in his name:
Two top South Korean army officers in
whose names a statement criticizing
American Far Eastern policies was
issued on 17 September. have stated
they were unaware of its contents bcfore the press published it.
The statement criticized the Neutral Nations Supervisory Com-
mission, the redeployment of American forces, and American
policies toward Japan.
Army chief of staff General Chong told
an American embassy officer that he and First Army commander
General Paek were informed several days before that some sort
of statement might be made, but were not told of its contents or
date of release. Ambassador Briggs believes that General Yi,
chairman of the Joint Chiefs of Staff and the third "signatory,"
may have known about it in view of his willingness to be a mouth-
piece for the Rhee government.
The ambassador comments that the
incident is another example of the way Seoul's current anti-
American campaign is being conducted by President Rhee and
his immediate supporters.
Comment: The Chong-Paek-Yi release
was apparently issued in answer to a 17 September American
embassy statement pointing out that future American aid was con-
tingent on "wholehearted" South Korean co-operation, and is part
of Rhee's campaign to influence the forthcoming United States-
South Korean economic and military talks in Seoul.
22 Sept 54 CURRENT INTELLIGENCE BULLETIN Page 4
TOP SECRET
Approved for Release: 2019/08/13 C03000911
_Approved for Release: 2019/08/13 C03000911
I. 0-/ 1 A.
Nair
SOUTHEAST ASIA
3. Viet Minh rebuffing French bid for privileges in north:
Jean Sainteny, French representative to
the Viet Minh, has been making little
headway in his efforts to obtain guaran-
tees for French economic and cultural
tnam, the American consulate in Hanoi
reports. The Viet Minh authorities have made it clear that
French businessmen would be able to make only limited, if any,
transfers of profits to France, a,ndas a result most of these
businessmen are leaving, the consulate understands.
On cultural matters, the Viet Minh
position is equally unpromising. The Viet Minh is apparently
unwilling to permit French government-supported hospitals to
function in the north, and will not agree to the use of French as
the primary language in French-supported schools.
The one concession the Communist
regime appears willing to make is to accord special status to
French employees and technicians of essential public services.
Comment: The French authorities
have attached considerable TEportance to what they understood
to be a Viet Minh willingness to accord France a special status
in the north, and have been at some pains not to antagonize the
Viet Minh. Paris has encouraged French businessmen to remain
In Hanoi and has resisted American efforts to apply strategic con-
trols to trade with the Viet Minh zone.
WESTERN EUROPE
4. France seen trying to build case of American connivance with
German militarists:
22 Sept 54 CURRENT INTELLIGENCE BULLETIN Page 5
TOP SECRET
Approved for Release: 2019/08/13 C03000911
Approved for Release: 2019)08/13 003000911
-11111
Comment: Mendes- France may be
planning to use reports of American contacts with German
"militarists" to arouse French nationalism and to justify French
pressure for East-West talks if the London discussions on Ger-
man rearmament break down.
French assembly approval of any pro-
posal for German rearmament will be almost impossible with-
out substantial Socialist backing. Those French Socialists who
oppose any German rearmament can be expected to seek help
from the West German and other Socialist parties in influencing
their party colleagues in the National Assembly.
LATIN AMERICA
5. Comment on Chilean president's declaration of state of siege:
"Prekdent Ibanez' declaration of a six-
olonth state of siege in Chile on 20
September may be a move toward dic-
tatorship. Under the constitution, his
acuon may tie challenged by the Congress only at its next regu-
lar session, in May 1955, or at a special session called by the
head of the Senate at the request of a majority of the members
of either house. The special session of Congress called by
22 Sept 54 CURRENT INTELLIGENCE BULLETIN Page 6
TOP SECRET
Approved for Release: 2019/08/13 003000911
Approved for Release: 2019/08/13 C03000911
J. 1..-/ J. 1
IOW
Ibanez for 23 September is not constitutionally authorized to
consider the state of siege, since a special session called by
the president mayconsider only subjects specified in the call.
Ibanez, who lacks majority support in
either house of Congress, told Ambassador Beaulac on 31 July
that if Congress refused a request for special powers, he would
dissolve it and rule by decree.
Stronger personal rule by Ibanez would
probably be supported by the army and national police, at least
temporarily. Minister of Interior Parra, the number-two man
in the government and a staunch supporter of Ibanez, commands
the national Dance and is also the ranking general in the army.
LATE ITEM
6. Chou and Nehru reported as reaching "oral nonp,ggression
agreement":
Comment: During their talks in New
Delhi in late June, the only time-Thou and Nehru have been in
personal contact, they evidently discussed the 29 April Sino-
Indian agreement on Tibet. The communiq46 they issued after
these talks heavily stressed the five principles contained in the
preamble of that agreement as an example for other nations to
follow in conducting their foreign relations. The publicity given
the Tibetan agreement suggests that India at that time considered
it an adequate statement of nonaggressive intentions. It is un-
likely that India now desires to go further than it did in June.
22 Sept 54 CURRENT INTELLIGENCE BULLETIN Page 7
Approved for Release: 2019/08/13 C03000911