CURRENT INTELLIGENCE BULLETIN - 1955/05/18

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03194444
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: May 18, 1955

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CO3 1 c:%/ 107,1ff
18 May 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. -16
NO CHANGE IN CLASS.
El DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE. 0
AUTH: HR 70-2
DATE: 9///e0 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
94
3.3(h)(2)
3.5(c)
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SUMMARY
GENERAL
1. Chinese Communist trade delegation to visit Egypt (page 3).
SOVIET UNION
2. Bulganin calls for higher productivity and reorganization of
economic planning (page 3).
FAR EAST
3. Comment on North Korean bombardment of South Korean fish-
ing fleet (page 4).
SOUTHEAST ASIA
4. Sect forces still a problem to Vietnamese government (page 6).
NEAR EAST - AFRICA
5. Iraq reported seeking Syrian coalition to upset Damascus gov-
ernment (page 7).
EASTERN EUROPE
6. Yugoslays reportedly will refuse party ties with USSR (page 8).
7. Britain sees Soviet visit to Belgrade as triumph for Tito (page 8).
8. Hammarskj old prods Chou En-lal on American airmen (page 9).
9. Comment on resignation of Dutch cabinet (page 10).
* * * *
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GENERAL
1. Chinese Communist trade delegation to visit Egypt:
ii,omment: reipmg nopes 'or ponucat
reasons to establish formal trade ties at the government level,
but Cairo has not yet recognized the Chinese Communist regime,
and at the Bandung conference in April discouraged Chinese ef-
forts to arrange a formal trade deal.
Peiping is expected to buy more cotton
from Egypt than it did last year, in view of greater needs in
China and large exportable surpluses in Egypt.
Peiping has shown increased eagerness
to inaugurate formal trade relations with countries of the Near
East, An Israeli delegation was received earlier this yo.ar, al-
though no agreement was consummated.
SOVIET UNION
2. Bulganin calls for higher productivity and reorganization of eco-
nomic planning:
In a speech delivered at the opening of a
large conference of industrial workers
in Moscow on 16 May, Premier Bulganin
praised the rapid growth of the Soviet economy, but scored numer-
ous industrial defects which, he said, must be eliminated in or-
der to "vanquish capitalism in economic competition."
The premier stated that the State Plan-
ning Committee (GOSPLAN) was being split into two bodies, one
to be responsible for long-range economic planning, the other for
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current planning. In addition, a new committee is being estab-
lished to ensure the incorporation of new technical processes into
the Soviet economy.
Bulganin demanded greater labor produc-
tivity through increased use of new technology, more industrial
specialization, and additional reductions of administrative bureauc-
racy.
Comment: Continued failure to attain
goals in labor productivity has caused increasing concern to Soviet
leaders. Industrial output plans have been attained only by expand-
ing the urban labor force more rapidly than scheduled.
The present drive to increase agricul-
tural production precludes further increases of the urban working
force and makes the need for higher output per worker more press-
ing.
The establishment of separate bodies for
long- and short-range economic planning resembles the division
of these functions which existed in the USSR from 1948 to 1953, and
which resulted in a significant improvement in production during
that period.
FAR EAST
3. Comment on North Korean bombardment of South Korean fishing
fleet:
The North Korean bombardment of a
South Korean fishing fleet operating well
within North Korean waters in Haeju Bay
on the west_coast with 870 rounds of ar-
tillery on 10 May would appear to be a
reaction against trespassing by South
Korean fishermen (see map, p. 5). The
incident may, however, have been a calculated retaliation for a
South Korean attack on a North Korean fishing fleet 20 miles north-
west of Pyongyang
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SOUTHEAST ASIA
4. Sect forces still a problem to Vietnamese government:
The Cao Dai pope wants to form his own
army and is being encouraged in this
course by the French,
The pope is said to be able to count on tWo c-ao uai
battalions now and is seeking the support of the troops commanded
by the late General The.
Meanwhile, Diem has protested to Gen-
eral Ely over alleeed French liaison with Hoa Hao forces under
General Soai.
Comment: The Cao Dai pope continued
to denounce Diem long after the Cao Dai armed forces, under
Generals Phuong and The, had lined up with the government. Re-
cently, however, the pope has come out against Bao Dai and in
support of the Revolutionary Committee, whidh supports Diem.
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Noe
It is doubtful that the pope could muster
any effective armed group without the support of Phuong, whose
present allegiance to Diem may prove temporary or require con-
siderable cash subsidy.
Diem :is using a joint French-American
plan as the basis for further study regarding the integration of
sect forces into the army. Two major Hoa) Hao commanders re-
main bitterly anti-Diem and a solution to the sect problem will
require considerable time, talk, and cash.
NEAR EAST - AFRICA
5. Iraq reported seeking Syrian coalition to upset Damascus govern-
ment:
Baghdad has decided to send two former
Iraqi prime ministers to Syria to try to
persuade the Populist and Nationalist
Parties there to organize a coalition
which could bring about the fall of the present Syrian government.
This decision was taken at a meeting on
12 May of numerous former and present high Iraqi officials, in-
cluding King Faisal and Prime Minister Nun i Said, and was re-
ported to the American ambassador by Khalil Kenna, a trusted
confidant of the prime minister.
Comment: This report indicates that
the Baghdad government is emphasizing political rather than
military subversion as a method of overthrowing the Damascus
government.
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Naire
EASTERN EUROPE
6. Yugoslays reportedly will refuse party ties with USSR:
A Yugoslav newspaperman has told an
American official in Belgrade that he
has definite information the initiative
for high-level Soviet-Yugoslav talks
came from Moscow. He said he was sure Soviet leaders would
try to re-establish party relations with the aim of drawing Yugo-
slavia back into the Soviet bloc, but that the Russians would fail,
because Belgrade wants to keep relations on a government-to-
government basis. Although he expects the USSR to try to reac-
tivate the old mutual assistance agreement, he does not believe
Belgrade is willing to enter into any kind of treaty with the USSR
"just now."
Ambassador Riddleberger is inclined to
think the Yugoslays do not want to re-establish party ties. He be-
lieves they are hoping, however, to establish complete rapport in
Yugoslav-Soviet state relations in the belief that this would be a
major step toward relaxing international tensions. To this end,
the Yugoslays may seek a settlement of pre= 1948 economic claims,
the repatriation of Yugoslays held in the USSR, and the expansion
of trade and cultural relations. Riddleberger feels that the sub-
jects covered in conversations on how to reduce world tensions
will include disarmament, Germany, and European security.
Comment: In public statements the
Yugoslays have consistently denied any desire to re-establish
ties with the Soviet Communist Party. They have, however, shown
considerable satisfaction with private statements to them by Soviet
officials allegedly indicating acceptance of Yugoslav party develo
ments as a legitimate interpretation of Marxism.
7. Britain sees Soviet, visit to Belgrade as triumph for Tito:
The British Foreign Office considers the
forthcoming visit of Soviet leaders to
Belgrade as a triumph for Tito, who is
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described as an old Communist who will know how to take care of
himself. The Soviet move is also regarded as another step in an
attempt to establish a neutral belt including Germany.
London believes that in return for a Yugo-
slav declaration of neutrality, the USSR might offer further "normal-
ization" of relations, economic concessions, restraint on military
deployments in nearby Satellite nations, and even arms aid.
Comment: British officials have not
directly discouraged the concept oi a neutral belt as such, but
they have insisted that any understanding with the USSR must not
impair NATO's strength, which depends on German participation,
or lead to a slackening of American interest in maintaining its
commitment in Europe.
British officials have recently indicated
that they are satisfied with Tito's present relations with the West.
* * * *
8. Hammarskjold prods Chou En-Jai on American airmen:
UN secretary general Hammarskjold re-
minded Chou En-lai in a telegram on
16 May that he had received no reply to
his query of 23 April as to what he could
do to facilitate the release of American
'airmen imprisoned in Communist China. The telegram empha-
sized the importance of early action on this matter.
Comment: HammarsW old told Ambassa-
dor Lodge two weeks ago 11�w-Eitird-s oon tell Chou that, if there were
no reply by 1 June, he would report to the UN that his mission had
been a failure. Hammarskjold's 16 May telegram apparently did
not set any such deadline.
Peiping, in the interest of improving the
atmosphere for Sino-American negotiations on current Chinese
issues, has been expected to release some of the at least 55 Amer-
icans detained in China.
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9. Comment on resignation of Dutch cabinet:
The Dutch parliament is likely to be
dissolved and new elections scheduled
as a result of the resignation of the
Catholic-Labor coalition cabinet follow-
ing its defeat on the controversial rentbill. Although some at-
tempt may be made to form another coalition to avoid new elec-
tions�which no party desires this year--the controversy over the
rent bill comes at the end of a long series of disagreements be-
tween the coalition members.
The queen is empowered to dissolve
either one or both of the two chambers, with elections following
within 40 days. The present cabinet would continue as a care-
taker government.
New elections would probably have little
effect on the present political alignment. The two major parties,
the Catholic and Labor Parties, are represented almost equally,
but neither is likely to gain a parliamentary majority. However,
as after the 1952 general elections, the process of forming a new
government might be long drawn out.
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