CURRENT INTELLIGENCE BULLETIN - 1955/03/26

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03017439
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: March 26, 1955

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I.
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3.3(h)(2)
3.5(c)
26 March 1955
Copy No. 88
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO 5s
NO CHANGE IN CLASS OR
DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE. 0 10
AUTH: HR 70-2
DATE: 2 3;"So REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
/ /4
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Noe
SUMMARY
GENERAL
1. Comment on publication of Soviet proposals in secret London
disarmament talks (page 3).
SOUTHEAST ASIA
2. Burmese operation against Chinese Nationalist guerrillas held
endangered (page 3).
3. Ceylon may raise UN membership problem at Bandung (page 4).
EASTERN EUROPE
4. Yugoslays see no advantage in Balkan pact link with NATO (page 5).
5. Disunity in Hungarian Communist Party reportedly threatens
Rakosi's control (page 5).
WESTERN EUROPE
6.
THE FORMOSA STRAITS
(page 8)
* * * *
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GENERAL
1. Comment on publication of Soviet proposals in secret London
disarmament talks:
Soviet publication of complicated and
detailed accounts of the latest Soviet
proposals in the UN Disarmament Sub-
committee meetings apparently is in-
tended to establish a Soviet propaganda
position in anticipation of a breakoff of
the talks.
While this clear violation of the secrecy
agreement was undoubtedly timed to influence the final debates on
the Paris agreements in the French Council of the Republic, Mos-
cow's principal motive probably was to demonstrate a contrast be-
tween the "sincere purposes" of the Soviet Union and what it charges
are Western efforts to use the talks to conceal war preparations.
The resolution introduced by Gromyko on
18 March apparently will be the USSR's final position in the current
talks. It is actually a synthesis of Vyshinsky's proposals to the UN
General Assembly of 30 September 1954 and the 18 February Soviet
statement which formed the basis of Gromyko's initial position at
the London talks.
This latter proposal was unacceptable to
the West. Gromyko abandoned it on 11 March and suggested that
the conference should return to the Soviet proposals of last Septem-
ber which accepted the French-British proposals of June 1954 as
the basis for discussion.
SOUTHEAST ASIA
2. Burmese operation against Chinese Nationalist guerrillas held
endangered:
26 Mar 55
The Burmese army has suffered initial
setbacks severe enough to endanger its
entire operation against the Chinese
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`+.0.1 '41rie
Nationalist guerrillas along the Thai border, according to informa-
tion from the American consulate in Chiengmai. Guerrilla agents,
who are said still to have free access to northern Thailand, are
openly jubilant and even boast that they will take Kengtung, about
75 miles north of the current fighting.
The American embassy in Bangkok be-
lieves that at best Burmese forces can now win face-saving victo-
ries. It fears the Burmese may blame their lack of success on
Thai duplicity.
Comment: For the past three years the
Burmese government has regarded the Chinese irregulars as the
chief threat to its security and has committed approximately a
fourth of the Burmese army to the current operations.
Failure of the campaign would probably
lead to a reversal of the trend toward improved Thai-Burmese
relations and might even result in a renewal of Burmese charges
of American responsibility for the presence of the armed guer-
rillas in Burma.
3. Ceylon may raise UN membership problem at Bandung:
Comment: Ceylon is not a member of
the United Nations. Other nonmembers invited to Bandung are
Communist China, Japan, North and South Vietnam, Jordan,
Nepal, Libya, Cambodia, and Laos.
All but Communist China and the two
Vietnams have been endorsed for membership by the General
Assembly but vetoed by the Soviet Union.
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'sque Noire
EASTERN EUROPE
4. Yugoslays see no advantage in Balkan pact link with NATO:
The Yugoslav ambassador in Ankara
has informed the Turkish Foreign
Ministry that his government sees no
advantage in linking the Balkan pact
and NATO. Belgrade believes such a link would accomplish
nothing because Greece and Turkey already belong to NATO,
and because Yugoslav relations with the large powers are devel-
oping satisfactorily outside of NATO.
Secretary General Birgi of the Turkish
Foreign Ministry observed to the Yugoslav ambassador that this
seemed to constitute a change from previous Yugoslav agreement
to develop a modus operandi with NATO. Birgi told the American
embassy, however, that he was encouraged by the invitation to
Premier Menderes to visit Yugoslavia on 4 May, which presuma-
bly indicated Belgrade's willingness to discuss the matter.
Comment: During negotiations for the
Balkan alliance last summer Belgrade suggested to the Greeks
and Turks that it would agree to some informal arrangement for
further co-operation and planning in conjunction with NATO.
Belgrade's opposition to becoming linked
with NATO is probably motivated by the belief that its independent
position, which has enabled it to do business with both East and
West, would be damaged.
5. Disunity in Hungarian Communist Party reportedly threatens
Rakosi's control:
Serious disunity in the Hungarian Work-
ers' Party leadership is making it diffi-
cult for party leader Rakosi to remove
Premier Nagy from office, according to
a re la e source o e merican legation in Budapest. Nagy re-
portedly refused to appear before the central committee meeting
in early March to defend himself against accusations of "anti-Marxist
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rightist deviation," or to recant. In this he is said to have the
support of a majority of party members.
The legation believes the factors behind
the regime's failure to remove Nagy are his strong stand, his
popularity, and Moscow's desire to avoid the impression that a
struggle for position is being waged.
The Yugoslav minister to Hungary re-
ports that party committee elections are being held in the prov-
inces to try to wed out Nagy's supporters.
Comment: The same leaders who unani-
mously supported Rakosi's denunciation of Nagy on 4 March had
last October enthusiastically endorsed Nagy's liberal program
while Rakosi remained silent. The long delay in replacing Premier
'Nagy, who has made no public appearances since 23 January, lends
support to the reports of serious differences in the party.
Although Soviet leaders are reported to
have prevented Rakosi from taking severe measures against Nagy,
it is unlikely that Rakosi's control of the party will be successfully
challenged since he is apparently backed by Moscow.
WESTERN EUROPE
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Some ,impor
THE FORMOSA STRAITS
Report of the LAC Current Intelligence Group
for the Formosa Straits Problem
This report is based on information received in Washington
up to 1100 hours 25 March 1955.
1. No significant military activity has been reported.
2. The shipment of approximately 13,000 Chinese Nation-
alist filler personnel--predominantly native Formosans--to the
Quemoy group during March has brought the units there to full
strength of 68,000 troops, thus considerably increasing the Nation-
alist capability for defense of these islands. The morale of these
fillers, who have had four months of basic training, is reported as
good. This movement, along with the movement of 2,400 troops
recently sent to the Matsu group, represents the first use of Formo-
sans away from their home.
3. A possible reflection of Chinese Communist difficulty
in distributing POL products within China, especially in the Formosa
Straits area, is the modification now in progress in Shanghai of an
LSM to transport bulk kerosene. Although China has been receiv-
ing large quantities of kerosene, which may be jet fuel, the lack of
a railroad to the coastal region of the Fukien province and the danger
of capture of large tankers has precluded the movement of significant
amounts of POL into the Formosa Straits area.
4.
jet fighter aircraft
are operating there. Liuchou is the base of the 26th Air Division, which
is composed of two regiments of LA-11 piston fighters. Any reequip-
/nerd of this division with jet fighters would enhance Chinese Commu-
nist defensive capabilities in southern China, but would have little ef-
fect on Chinese Communist capabilities in the Formosa Stts. MIG's
from Liuchou would have to stage through at least one other field to
carry out attacks against the Matsus or Quemoy.
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'tow'
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