CURRENT INTELLIGENCE BULLETIN - 1955/09/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03000943
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: September 3, 1955

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3 September 1955
Copy No. J9
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO 3 vi.V
NO CHANGE IN CLASS.
DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXtfiraltW DATE: 4v1e
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ONfriii.4.41170214EVILYMR:L__._
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. BELGIAN FOREIGN MINISTER SAYS rr's TIME TO
RECOGNIZE COMMUNIST CHINA (page 3).
2. AFGHANISTAN REPORTEDLY BUYING CZECH ARMS
(page 4).
3. COMMENT ON THE YUGOSLAV-SOVIET ECONOMIC
AGREEMENT (page 5).
4. NASR SEEKS INVITATION TO VISIT US (page 6).
5. GREEK-TURKISH FRICTION OVER CYPRUS
THREATENS BALKAN ALLIANCE (page 7).
6. ARGENTINE ARMY ULTIMATUM TO PERON
REPORTED LIKELY (page 8).
7. GENERAL STRIKE THREATENED IN CHILE (page 9).
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1. BELGIAN FOREIGN MINISTER SAYS IT'S TIME TO
RECOGNIZE COMMUNIST CHINA
Belgian foreign minister Spaak told
an American embassy official in
Brussels on 1 September that "the
time has come to recognize the Corn-
sr cn1nesegime." Later the same day the em-
bassy was informed that Spaak envisaged action on this
question within a week to ten days.
Spaak told the embassy official he
had already discussed the recognition problem with
Prime Minister Van Acker and other cabinet members,
but had not yet broached it to other governments. He
Is convinced, however, that other governments which
have not yet recognized Peiping, particularly Canada,
are coming to the same conclusion.
Spaak argued that the United States
has "in effect extended de facto recognition" through
the current talks with the Chinese Communists at Geneva.
He added that he has not yet decided on the Belgian po-
sition with respect to admitting Communist China to the
United Nations. He feels that it might be desirable to
establish a UN commission to look into the whole question.
Comment Several other governments�notably
France, Canada, Austria and Egypt--
are believed to be considering early recognition.
Belgium is likely to support, along
with the British, deferral of a substantive vote on the
Chinese representation question at this fall's UN General
Assembly. A large number of the UN members who
support the eventual admission of Peiping would probably
support any Belgian move to establish a UN study com-
mission on the problem.
3 Sept 55
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Irappie Nimr
2. AFGHANISTAN REPORTEDLY BUYING CZECH ARMS
Comment
Since May 1955
there have been several rumors that Czech arms were being
sent to. Afghanistan.
Since Pakistan is unlikely to allow an
arms shipment to pass through its territory, the Czech
arms will presumably have to be sent through the USSR
under the terms of the recent Afghan-Soviet transit agree-
ment.
3 Sept 55
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Nis pr.
3. COMMENT ON THE YUGOSLAV-SOVIET ECONOMIC
AGREEMENT
The Yugoslav-Soviet agreement an-
nounced on 1 September at the con-
clusion of the economic talks in
for the USSR to become Yugoslavia's
largest creditor and one of its four principal trading
partners. Yugoslavia does not appear to have made any
commitments which would subject its economy to Soviet
control or require the shipment of critical strategic com-
modities.
If arrangements under the agreement
are put into effect, trade will more than double to a level
of $35,000,000 each way annually for the three years be-
ginning next January. The goods exchanged would be
"within the framework of the existing trade agreement"
and, therefore, would consist primarily of raw materials.
� The Soviet Union is interested particularly in bauxite,
tobacco, lead and hemp.
The USSR has agreed to grant approxi-
mately $100,000,000 in ten-year credits at 2 percent.
Of this total, $54,000,000 is earmarked for raw materials
and $30,000,000 as a loan in gold or Western currency.
These funds are to be drawn within two or three years
beginning in January 1956. The rest of the loans are to
be in the form of credits for industrial construction.
It appears that this agreement does
not reduce Belgrade's dependence on the West for grain.
The $30,000,000 loan, even if spent for wheat on the open
market, would buy only about 300-400,000 tons. Yugo-
slavia claims to need up to 1,000,000 tons to cover its
annual needs. Concurred in by ORR)
3 Sept 55
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4. NASH SEEKS INVITATION TO VISIT US
Egyptian foreign minister Fawzi
believes it very important that
Prime Minister Nasr be invited
soon to visit the United States.
zi tow m assador Byroade on 30 August that
the timing of the invitation was more important than
the time of the actual visit. He did not explain why
he feels an invitation is urgent.
Comment Fawzi's approach is probably Con-
nected mainly with }lases domestic
political position. There is some indication that Nasr
is still uncertain over possible repercussions from the
ousting last week of Salah Salim, his principal political
opponent. Nasr may feel that an invitation from the
United States, like his trip to Bandung in April and
the invitation from the USSR last July, would enhance
his prestige with the Egyptian public.
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5. GREEK-TURKISH FRICTION OVER CYPRUS
THREATENS BALKAN ALLIANCE
Greek foreign minister Stepha-
nopoulos has sent word to the
American embassy in London,
where the Cyprus issue is under
scussion, that the Greeks are particularly shocked
by a Turkish warning that anyone who suggested a
transfer of sovereignty over Cyprus could no longer
expect to enjoy the friendship of Turkey. Stepha-
nopoulos' emissary said Greece would do nothing
more to further its alliances with Turkey--in NATO
and the Balkan pact--since it regards its past efforts
as having been in vain.
Comment Unless the British can moderate
the Turkish attitude or negotiate
with the Greeks in spite of Turkish objections, the
Greeks will probably walk out of the conference soon
after it reconvenes on 6 September. Stephanopoulos
would probably prefer to obtain a wider hearing of the
Cyprus case in the UN.
3 Sept 55
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6. ARGENTINE ARMY ULTIMATUM TO PERON
REPORTED LIKELY
The Argentine army "reacted
violently" against President
Peron's speech of 31 August
and is likely to give him an ulti-
matum within the near future,
Comment Peron's 31 August speech, in which
he withdrew his earlier offer to re-
sign, and called on his followers to prepare to fight
opposition violence with even greater violence, may
have led army leaders to reconsider their support of
him.
The top military leadership, which
holds the dominant power position in the government,
has thus far been supporting Peron on the condition
that he follow moderate policies. This support of Peron
by the army leaders has been strongly diElliked in the
lower military echellans nrfrirn1r1v in thp nrrivinePc
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7. GENERAL STRIKE THREATENED IN CHILE
The directorate of CUTCH, Chilean
labor confederation which claims
to represent all organized workers
in Chile, on 30 August adopted plans
to support some 50,000 public employees now on strike
by calling further strikes which would culminate in a
general strike on 5 September
The general strike reportedly would
continue until (a) labor leaders now under arrest are re-
leased, (b) Congress rejects President Ibanez' request
for special powers, (c) current labor conflicts are set-
tled, and (d) a controversial internal security law is re-
pealed.
Comment A majority of the members of the 24-
man CUTCH directorate, which in-
cludes at least five known Communists, advocate creation
of a left-wing government. A general strike call now
would presumably be intended to exploit the general labor
unrest stirred up by the uncontrolled inflation of the past
several years. Widespread strikes were instrumental
in bringing about President Ibanez' downfall in 1931.
3 Sept 55
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