CURRENT INTELLIGENCE BULLETIN - 1955/05/24

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03194453
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: May 24, 1955

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24 May 1955
Copy No. 94
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. 4/
NO CHANGE IN CLASS.
El DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: ,a0/C7
AUTH: HR 70-2
DATE: REVIEWER
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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3.3(h)(2)
3.5(c)
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FAR EAST
1. Japan reported abandoning efforts to get into GATT:
Comment: Japan has been attempting un-
successfully for several years; American assistance, to become
a full member of GATT.- Only last week the Foreign Ministry told
the embassy that the cabinet would probably approve tariff agree-
ments negotiated with the United States and other countries in con-
nection with Japan's accession to GATT.
The Japanese, however, have felt discrim-
inated against and may now feel that the disadvantages of member-
ship in GATT outweigh the advantages. Much of Japan's favorable
export trade of last year is attributable to subsidies and other pro-
motional schemes which would be prohibited under GATT.
SOUTHEAST ASIA
2.
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EASTERN EUROPE
3. Comment on announced reduction in Yugoslav army:
President Tito disclosed in a speech on
21 May that "a certain number" of Yugo-
slav army personnel are to be trans-
ferred to other work " ause the situation such that it is
unnecerytcr1� so many men in the army." Wadde�that
if pee is lasting, releases will be even greater.
ugoslav leaders have repeatally held
that world tensions are lessening, but this is the first statement
disclosing that Belgrade feels the situation permits a reduction
in its military strength. Maintenance of a 300,000-man army
has been justified in the past primarily on the grounds of a con-
tinued threat of aggression from the East.
Tito b statements may also indicate
that Yugoslavia intends to accept a "nonaggression" pact, which
the USSR may offer during the Belgrade talks.
While it is very unlikely that the Yugo-
slays would accept an invitation to adhere to the Eastern European
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defense pact, Belgrade may believe that a "nonaggression" pact
with the USSR and eventually with the Satellites could be rational-
ized to the satisfaction of the West and would go a long way toward
relaxing world tensions.
4. Turks uneasy over forthcoming Yugoslav-Soviet meeting:
The Turkish ambassador in Belgrade
told the Yugoslav foreign minister on
20 May that Ankara is concerned over
the effect of the approaching Soviet-
Yugoslav conference in the light of present Soviet policy and
the divergence of Yugoslav-Turkish views on the development
of the Balkan alliance.
According to the American embassy in
Belgrade, the Turkish ambassador warned that these divergencies
could have a bad effect, and that Belgrade's desire to probe Soviet
intentions and relax tension should not shake Balkan military co-
operation.
The ambassador pointed out that Moscow
sought high-level contacts for their maximum propaganda value
and to create the impression that Yugoslavia was returning to the
Soviet system. He emphasized that Belgrade should recognize
the danger of associating with Soviet policy and warned that the
communiqud after the meeting must not become a trump card for
Moscow.
Comment: Despite Tito's assurances to
Premier Menderes during his visit to Belgrade, Turkey continues
to fear that Yugoslavia might sacrifice the Balkan military alli-
ance for Soviet promises. Tito's recently announced intention to
decrease Yugoslaviab military strength will also increase Turkish
apprehensions.
American officials in Athens report the
Greek reaction to the Yugoslav-Soviet meeting to be calm but
guarded. In contrast to Ankara, Athens has been relatively satis-
fied with Yugoslavia's co-operation in the Balkan alliance.
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WESTERN EUROPE
5. Gronchi criticizes present Italian government coalition:
Italian president Gronchi told Ambassa-
dor Luce on 21 May that a government
"opening to the left" is necessary now,
but that he meant the "economic" rather
t n the "po ca e t. He said that the time has not come to
bring the Nenni Socialists into the government, but that it is
desirable to create conditions in which the Nenni Socialists and
those who voted for them could join the democratic forces.
Gronchi said that the present govern-,
ment coalition is not suited to the goals he has in mind, since
the Liberals are blocking the reform program which was the
only basis on which to fight Communism. He said that if his
views are not accepted by the Christian Democratic Party in
June, there would then be "a new government situation."
� Comment: Gronchi apparently wants
the parliament to be presented with a sweeping economic reform
program which the Nenni Socialists would be forced to support
or belie their claims that they are defenders of the underprivi-
leged. The Nenni Socialists have more than four times the rep-
resentation of the Liberals in the Chamber of Deputies, and their
support could give the Christian Democrats a majority big enough
to carry out long overdue reforms.
As president, Gronchi's own powers to
push through such a program are limited. His views, however,
reflect the increasing sentiment in the country, and especially
within the Christian Democratic Party, that such a program is
needed. Christian Democratic Budget Minister Vanoni, author
of an ambitious ten-year economic plan, which the Nenni Social-
ists support, is Gronchi's most likely candidate for premier if
the Scelba government falls.
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