CURRENT INTELLIGENCE BULLETIN - 1955/05/11

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03192931
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: May 11, 1955

Approved for Release: 2019/09/17 C03192931,
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3.3(h)(2)
3.5(c)
11 May 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. -70
NO CHANGE IN CLASS.
El DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: _2_01.0
AUTH: HR 70-2
AT 9/4/diro REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
ANF TOP SECRET
94
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SUMMARY
SOVIET UNION
1. Bulganin reaffirms desire for four-power meeting (page 3).
FAR EAST
2. Comment on Peiping's 1955 economic goals (page 3
SOUTHEAST ASIA
3. Comment on new Vietnamese cabinet (page 4).
4. Diem wants early withdrawal of French forces (page 5).
NEAR EAST - AFRICA
5. France and Iraq accuse each other of promoting Syrian in-
stability (page 5).
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SOVIET UNION
1. Bulganin reaffirms desire for four-power meeting:
Soviet premier Bulganin told French
ambassador Joxe on 5 May that rati-
fication of the Paris accords must not
prevent the four powers from seeking
"any necessary means of reaching a detente," according to a
report passed by the French Foreign Ministry to the American
embassy in Paris. Bulganin flatly confirmed his previous public
statement in favor of a four-power meeting, but said the agenda
must "make sense." Bulganin said that the division of the world
into two blocs must be recognized as a reality but must not be
allowed to lead to war.
Bulganin said he was sure an acceptable
German solution could be found. He added that France and the USSR
could guarantee a unified, disarmed Germany with a freely elected
government. Ambassador Joxe felt, however, that the USSR was
seeking a new formula for an equalization of forces in Europe and
was ready to permit Germany to rearm to some extent.
Comment: This is the strongest Soviet bid
for four-power talks, which courEinclude the German problem,
since ratification of the Paris accords became certain.
It is not clear whether Joxe believes that
the USSR is interested in fixing an arms limit for the existing two
German states or for a united Germany.
FAR EAST
2. Comment on Peiping 's 1955 economic goals:
The total value of industrial and agricultur-
al output in Communist China during 1955
is to increase about 7 percent over that of
1954, according to a 1 May editorial in the authoritative Peiping
People's Daily, In 1954 the corresponding increase had been planned
at 12. 6 percent; in 1953, a 16-percent increase was attained.
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The 7-percent increase projected for
1955 indicates a further tapering off in the rate of Communist
China's economic growth and reflects a lag in the construction pro-
gram and a recognition of the over-all effects of failures to achieve
planned increases in agricultural output.
The 1955 goal will apparently require a
hard line toward the agricultural sector of the economy. Peiping
Is committed to an expansion of the co-operative movement and
has announced that it intends to continue tightening its rural food
collection and supply policies, despite widespread popular "tension"
and unrest followinR the century's worst floods and an unusually
severe winter.
SOUTHEAST ASIA
3. Comment on new Vietnamese cabinet:
Premier Diem's action in naming a new
cabinet on 10 May appears intended to
undercut any move by Bao Dai to attempt
a reorganization of the government that would have weakened Diem's
position. The cabinet reflects Diem's estimate of his strengthened
position, in that no concessions were made to the sects or other
groups which have opposed him. This will almost certainly draw
complaints from the French, who insist that the situation requires a
cabinet of "broad national union." The new cabinet does, however,
give greater representation to Cochinchinese.
The appointees are for the most part capable
nationalist technicians with views similar to Diem's. The one
member of the Revolutionary Committee appointed�Hoang Co Thuy,
under secretary of state�had been described as one of the key
supporters of Diem on the committee. Thuy's signature appeared on
a petition six years ago calling for the French to negotiate with the
Viet Minh, but other evidence to link him with the Communists is
lacking.
Diem is keeping the defense portfolio himself
but has also retained as under secretary of defense Tran Trung Dung,
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who has been in active direction of that department for the past
several weeks. For the first time, Diem has appointed a full-
time minister to the Interior Ministry, the key post for directing
antisubversive activity.
4. Diem wants early withdrawal of French forces:
Comment: The Diem government has long
favored the withdrawal of Freneh-Torces, but has been reluctant to
press the subject.
The political and economic effects of a
French withdrawal would depend on the manner in which it was
done. An abrupt withdrawal might cause panic in South Vietnam
and would provide maximum opportunity for Viet Minh exploitation.
A phased withdrawal would provide considerable political benefit
to the Vietnamese government.
NEAR EAST - AFRICA
5. France and Iraq accuse each other of promoting Syrian instability:
France is still seriously concerned over
the situation in Syria, according to an aide.
memoire handed to Ambassador Dillon in
Paris on 6 May. France maintains that
Iraq is spending large amounts of money to
promote the overthrow of the Syrian govern-
ment of Prime Minister Asali and the union
of Iraq and Syria.
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Iraq's :Prime Minister Nun i told Ambassa-
dor Gallm.an in Baghdad on 9 May that France is primarily responsi-
ble for Syria's instability and is stirring up Egypt and Saudi Arabia,
as well as pro-French elements inside and outside the Syrian army,
against Iraq.
Nun i did not confirm or deny reports that
Iraqi officials and arms were being infiltrated into Syria. He said,
however, that if the legal government in Syria appealed to Iraq for
help in restoring order, he cud not see how such a request could be
turned down. He pointed out that with the restoration of order,
Iraqi troops would be withdrawn�
Comment Nun's statements suggest that
he is countenancing the reported infiltrations of Syria under the
direction of Iraqi crown prince Abdul Ilah. Under these circum-
stances, the prince's activities constitute a consider'able" threat to
Asali's government.
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