CURRENT INTELLIGENCE BULLETIN - 1955/02/17

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03157420
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: February 17, 1955

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17 February 1955
Copy No, 88
CURRENT INTELLIGENCE BULLETIN
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DOCUMENT NO.
NO CHANGE IN CLASS 5t,
L DECLASSIFIED
CLASS. CHANGED TO: IS S G
NEXT REVIEW DATE:
AUTH: HR 10-2
DATE: 1..rin.10-REVIEVVE
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOP CRET P
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3.5(c)
3.3(h)(2)
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SUMMARY
SOVIET UNION
1. Soviet trade with several Western European countries reported
declining (page 3).
2. Hints of purge emerging in USSR (page 3).
FAR EAST
3. Rhee to seek review of United States foreign policy (page 4).
SOUTHEAST ASIA
4. Viet Minh concerned over famine conditions (page 5).
5. Comment on neutralist speech of Laotian king (page 6).
NEAR EAST - AFRICA
6. Comment on foreign intrigue in Syria (page 7).
WESTERN EUROPE
7. Adenauer still sees Bundestag approval of Paris accords next
week (page 7).
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SOVIET UNION
1. Soviet trade with several Western European countries reported
declining:
According to a prominent French trade
official, the USSR has cut its trade with
Britain, France, Sweden and Switzerland
since December. He believes that since
e aecnne in trade atl�ed Sweden and Switzerland it was not re-
lated to the Paris accords, but reflects a new Russian commercial
policy.
Comment: Since definitive trade figures
for January would not yet be avairible to the Western governments,
the judgment that a meaningful drop has taken place is probably
based primarily on indications from trading firms that there has
been a decline in Soviet orders. A drop would be a logical result
of a reappraisal of foreign trade policy in connection with the
shift of emphasis in Soviet domestic economic policy.
No dramatic change in Soviet trade policy
or the level of Soviet trade with the West is expected in 1955, but
the USSR will probably procure from non-Communist countries a
higher proportion of the capital goods and raw materials needed
for industrial development and a lower proportion of consumers'
goods than in 1954. (Concurred in by ORR)
2. Hints of purg9 emerging in USSR:
The American embassy in Moscow reports
that the editor of Izvestia was not listed
as being present at the 14 February recep-
tion at the Chinese embassy attended by
tixe editors of Pravda, Trud, and Red Star. The Soviet government
newspaper IziEgia�c�arrTir on 15 freBruary for the first time a lead
editorial directly-Eriticizing the economists who were attacked re-
cently by party publications and by party secretary Khrushchev.
The editorial echoed Khrushchev's statement to the central com-
mittee regarding their "belching up of right deviation."
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The embassy noted also that a Moscow
party official at a meeting on 12 February criticized the party
secretary of the Institute of Economics for failing to give correct
"political evaluation" to the economic views of members of the
institute.
Comment: The absence of the chief
editor of Izvestia from the reception may mean that he has been
dismissed for permitting the appearance in that paper during
December of the "consumers' goods" point of view', in opposi-
tion to the party line as developed in Pravda.
These developments suggest that
Khrushchev's diatribe at the central committee plenum has set
in motion the familiar process of criticism and denunciation
which in Stalin's day were precursors of an ultimate purge. A
purge at this time, however, would be inconsistent with the pres-
ent efforts of the Soviet leaders to convey to the world an impres-
sion of stability in the "collective leadership."
FAR EAST
3. Rhee to seek review of United States foreign policy:
Rhee noted that the United States-Formosa
defense treaty and the Manila, pact exclude Korea, and expressed
concern that the Afro-Asian conference in April--to which Korea
has not been invited--would have a detrimental effect on Korea's
interest. He stated that an attempt should be made to counteract
some of the effects of the conference.
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Comment: This report appears to reflect
a belated recognition by Rhee of his country's increasing isolation
in matters bearing upon future developments in the Far East, which
may also account for his recent initiative toward resolving his dis-
putes with Japan.
Rhee may feel new concern that his coun-
try's interests will be sacrificed in the general impulse to find peace
in Asia. He may therefore believe that he must take steps to con-
vince United States public and congressional opinion that there should
be no world settlement which does not achieve Korean unification
on terms acceptable to him.
SOUTHEAST ASIA
4. Viet Minh concerned over famine conditions:
the Communist regime in North Viet-
nam is encountering considerable difficulty
combating famine.
people have died of starvation,
To remedy the situation, local authorities in
areas of extreme famine were instructed to give direct aid to people
who are starving. In areas where famine was less severe, the peo-
ple were to be mobilized to deal with the problem themselves by
"intensifying self-help."
Comment:
Despite strenuous efforts to alleviate the
situation from internal resources, the Viet Minh will have to import
large quantities of rice to meet minimal requirements in the next
few months. Although Communist China can be expected to make
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every effort to provide enough rice to prevent the development of a
� situation which would threaten the stability of the Ho regime, the
10,000 tons supplied since late December represent only a small
part of the existing need.
5. Comment on neutralist speech of Laotian king:
The speech of King Sisavong Vong before
the National Assembly of Laos on 14
February confirmed the earlier predic-
tion of Crown Prince Savang that the speech would "breathe neu-
tralism and coexistence." Specifically, the king looked forward
to Laos' becoming a "small peace zone within the great peace zone
which some Asian nations are endeavoring to promote." He pledged
Laos' "full adherence to the five principles defined by the great
Indian republic," while omitting mention of Communist China's joint
authorship. With respect to the Communist-backed Pathet Lao, he
favored "the return to the great Laotian family of those who have
erred in the past strife."
In an earlier conversation with the Ameri-
can minister in Vientiane, Savang had placed the blame for this
speech squarely on Premier Katay Sasorith, whose vacillating policy
toward the Pathet Lao is, the prince charges, playing into the hands
of the Communists.
In his conversations with American officials
the prince has taken a strongly anti-Communist, antinoitralist line,
but his argument, on constitutional grounds, that the king had no
alternative but to act as the mouthpiece for Katay's neutralist views
hardly rings true. Savang himself was probably in a position to
change the tone of the kings speech, and his failure to do so may
have been deliberate. His motive may have been to discredit Katay
further in Western eyes or perhaps, in view of his weak country's
inability to defend itself, to retain for the Laotian government a
greater degree of maneuverability in East-West matters.
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NEAR EAST - AFRICA
6. Comment on foreign intrigue in Syria:
Egyptian, Saudi Arabian and French in-
trigue in Syria--aimed at isolating that
country from Iraq, Britain and the United
States--coincides with the Soviet interest
and strengthens the local Communist Party.
Egypt, Saudi
Arabia and France played a major role in
the recent downfall of pro-Western Syrian
prime minister Khuri. His replacement
by the anti-Western cabinet formed by Premier Asali was largely
engineered by Chief of Staff Shuqayr under the inspiration of those
countries.
The political situation in Syria has steadily
deteriorated during the past year. At the same time, the influence
of anti-Western elements has grown to such an extent that, at a
critical moment in the development of a Middle East defense sys-
tem, Syria is being effectively isolated from the West,
WESTERN EUROPE
7. Adenauer still sees Bundestag approval of Paris accords next week:
Chancellor Adenauer anticipates no serious
opposition in the Bonn coalition to his deci-
sion to go ahead with final Bundestag action
on the Paris accords on 24-26 February as
scheduled, even if there are further delays in the formation of a French
government, according to West German deputy foreign minister Hall-
stein. American officials gained the impression from Hallstein that
the chancellor is confident the Bundestag will approve the accords.
Comment: Adenauer will probably be able
to maintain the present Bundestag schedule, although pressure is
growing within the coalition to pass the accords on the second vote,
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vgler,
and defer the third and final vote until the ratification picture clears
in France, Bundestag deputies are particularly reluctant to approve
that part of the accords dealing with the Saar.
Sentiment in the Bundesrat, which has been
expected to complete action on the accords in mid-March, will also
probably be influenced by developments in France,
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