CURRENT INTELLIGENCE BULLETIN - 1954/12/29

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03009192
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: December 29, 1954

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DATE: ,Zajc5W._ REVIEWER:
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29 December
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Copy No. 80
CURRENT INTELLIGENCE BULLETIN
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
Cired:Oldierai T� C R E T /7/././1/
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SUMMARY
GENERAL
I. Chou En-lai reported planning to visit Djakarta in March (page 3).
FAR EAST
2. Japan plans no specific moves for Orbit relations (page 3).
3. Peiping continues drive to divide West on trade issues (page 4).
SOUTHEAST ASIA
SOUTH ASIA
5. Afghan prime minister Daud rumored about to resign (page 5).
EASTERN EUROPE
6. Rakosi appears to remain leading Hungarian Communist (page 6).
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GENERAL
I. Chou En-lai reported planning to visit Djakarta in March:
Chinese Communist premier Chou
En-lai will visit Djakarta in March
to sign the recently concluded agree-
ment on the dual nationality problem
of Chinese residents in Indonesia,
Further discussions on the agreement--
which thus far requires that persons born in Indonesia of Chinese
parents choose one nationality or the other--are to take place in
Djakarta in January, with one of Chou's deputies representing
Peiping.
Comment: Peiping has devoted less
attention to Indonesia thaiTITEe---aher two principal Asian "neu-
trals," India and Burma, which Chou visited last summer. The
Chinese Communists have since feted the Indian and Burmese
premiers in Peiping.
Increased interest in Indonesia was
Indicated in the appointment of a new and abler Chinese Commu-
nist ambassador to Indonesia last September. A visit by Chou
En-lai, who has proved extremely effective in exploiting "neu-
tralist" sentiments in other countries, will improve Communist
China's already friendly relations with Indonesia.
FAR EAST
2. Japan plans no specific moves for Orbit relations:
Japanese foreign minister Shigemitsu
told Ambassador Allison on 27 Decem-
ber that his government had no specific
plans for establishing diplomatic rela-
tions with the Communist bloc and would definitely consult the
United States before considering any such arrangements withl Com-
munist China.
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Shigemitsu asserted that much anti-
American sentiment is based on the belief that the United States
is preventing Japan from having normal trade and diplomatic
contacts with "an important Asian neighbor." He said his govern-
ment's action in easing restrictions on travel and trade with the
Orbit would permit the Japanese to see for themselves the diffi-
culties involved in dealing with the Chinese Communists and at
the same time would remove one of the basic causes of anti-
Americanism.
Comment: Dealing with the Commu-
nists may dispel some poi:CM:I�. Japanese illusions that Commu-
nist trade will provide a panacea for Japan's economic ills.
3. Peiping continues drive to divide West on trade issues:
Peiping is anxious to expand trade with
Britain and the United States in order to
lessen Chinese dependence on Eastern Europe.
China would
discontinue ordering Czechoslovak trucks if Britain would guar-
antee delivery of large orders for heavy-duty trucks.
Comment: The remarks of the Chinese
foreign trade official are a continuation of Peipingb propaganda
trade drive aimed at dividing the West by implying China's will-
ingness to trade while the United States prevents "normalization."
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SOUTHEAST ASIA
4,
SOUTH ASIA
5. Afghan prime minister Daud rumored about to resign:
Afghan prime minister Daud is to re-
sign and to be replaced by his brother,
Foreign Minister Nairn. The embassy discounts the reports but
states the possibility cannot be ruled out since Shah Wali Khan,
the king's uncle, has warned the king of the dangers of Daud's
present policy of accepting Soviet economic aid.
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Comment: Twice before Daud has been sent
abroad or temporarily retired from politics when his actions be-
came embarrassing to the ruling Afghan oligarchy.
The king and the elder members of the
royal family may now feel that Daud's dealings with the USSR and
his outspoken support of Pushtoonistan will hinder foreign policy
planning with respect Lo the United States and Pakistan.
EASTERN EUROPE
6. Rakosi appears to remain leading Hungarian Communist:
he acclaim accorded First Secretary
tyas Rakosi at the tenth anniversary
elebration of the Hungarian parliament
n 21 December testifies to his continu-
n" in the Hungarian party hierarchy.
According to the American minister, who was present at the cere-
mony, Rakosi was greeted by the parliamentary deputies with
stormy applause which made the reception accorded Premier
Nagy and other speakers appear "exceedingly small."
Comment: Ftakosi's failure to appear in
public in October and November, during which time a party cau-
cus re-emphasized support for the conciliatory new course poli-
cies and criticized "left-wing" opposition to this program, appeared
at the time to represent a diminution in his power in the Hungarian
Workers Party. His activities since his reappearance on 29 No-
vember, however, suggest that he remains "first among equals"
in the collective leadership of the Hungarian regime.
Rakosi's resumption of public activity
probably does not signify any change in the regime's present poli-
cies. He has publicly supported the new course and called for an
end to all opposition to it.
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