CURRENT INTELLIGENCE BULLETIN - 1955/07/09

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03436118
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: July 9, 1955

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3.3(h)(2)
9 July 1955 3.5(c)
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. /-5-
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NEXT REVIEW DATE: 0
AUTH: HR 70-2
DATE: A/05'0 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. Comment on Sino-Viet Minh communiqu�f 7 July (page 3).
FAR EAST
2. Chou En-lai expresses dissatisfaction with results of freeing four
airmen (page 4).
NEAR EAST - AFRICA
3. British proposal on Cyprus reportedly splits Greek cabinet
(page 4).
EASTERN EUROPE
4. Pre-Qeneva optimism reported among Satellite populations page 5).
WESTERN EUROPE
5. Early passage now seen for West German interim arms bill (page 6).
6. Indonesian vice president urges prime minister to resign, (page 7).
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GENERAL
1. Comment on Sino-Viet Minh communiqu�f 7 July:
The Sino-Viet Minh communiqu�igned
in Peiping on 7 July on the eve of Ho Chi
Minh's departure for Moscow has the im-
a ect of demonstrating Sino-Viet Minh solidarity and may
serve to prepare the way for Soviet representations on Indochina
at the summit talks.
To ensure rapid restoration of the North
Vietnam economy and to improve the Viet Minh's prospects in any all-
Vietnam elections, Peiping has agreed, "without compensation," to
an aid program totaling 800,000,000 yuan, about $326,000,000 in the
recently revalued Chinese Communist currency. The figure men-
tioned probably covers some aid already given under an agreement
concluded last December.
The Chinese grant contrasts with a sched-
uled Soviet gift to the Viet Minh of industrial equipment and commod-
ities worth about $75,000,000, according to messages intercepted
The Chinese grant to North Korea for postwar
reconstruction, also $326,000,000, compared with Soviet aid to
North Korea of $250,000�000.
Most of the 7 July communiqu�s an offi-
cial reiteration of the main lines of recent Communist propaganda
on Indochina. This communiqu�s likely to be followed by a Soviet-
Viet Minh communiqu�rom Moscow, before or during the summit
talks, making the same political points and announcing the value of
the Soviet aid program.
The USSR at Geneva may call for a reaf-
firmation of the 1954 Geneva agreements on Indochina, and is ex-
pected in any case to press for a five-, six- or ten-power confer-
ence to deal with Far Eastern questions. (EIDER�Concurred in
by ORR)
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FAR EAST
Chou En-lai expresses dissatisfaction with results of freeing four
airmen:
Chou En-lai said that Commu-
nist China's release of the four American
pilots did not seem to have contributed in
_ any way to a relaxation of tension,
On the contrary, Chou said, the
unitea btates naa rewarciea tne release as Chinese Communist ac-
quiescence to Western pressure.
Arguing that the United States had become
"even more aggressive" since the release, Chou cited increasing
Chinese Nationalist harassment of the East China coast and the fre-
quent visits of American military and political leaders to Taipei.
Chou added that relaxation of tension depended on "extreme effort"
by both parties.
Comment: Chou has consistently told his
Intermediaries in approaches to Washington for direct Sino-American
talks that it is the United States' turn to make some concession.
Several of these intermediaries have re-
cently advised Chou, however, that progress toward Sino-American
talks seems unlikely until progress is made on the issue of the 51
or more Americans still detained in China.
NEAR EAST - AFRICA
3. British proposal on Cyprus reportedly splits Greek cabinet:
Athens' acceptance of the British invita-
tion to Greece and Turkey for a meeting
to discuss the Cyprus problem has split
fh nrclalr pa hi nal-
Prime
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Minister Papagos wished to reject the invitation, while Foreign
Minister Stephanopoulos and Defense Minister Kanellopoulos
favored accepting it.
Papagos
is thinking of resigning because his illness has become critical.
Stephanopoulos is said to be actively seeking the premiership.
Papagos is believed to have adopted the
campaign for self-determination for Cyprus reluctantly and to
have been seeking a way to modify his stand. His opposition to
accepting the British invitation is surprising, therefore, and may
in part reflect his physical decline.
There is evidence that Papagos is unable
to maintain close supervision over the Rally and that factions
within the group are becoming increasingly competitive.
EASTERN EUROPE
Pre-Geneva optimism reported among Satellite populations:
Hopeful expectations for the outcome of
the Geneva conference are widespread in
the capitals of Eastern Europe, accord-
ing to American officials in the Satellites.
Initially set off by the signing of the Aus-
trian state treaty and the Soviet-Yugoslav
talks in Belgrade, wild rumors reflect
the popular excitement. Some of the
American observers point out that opti-
mism is so high that some disillusion-
ment is certain.
In Prague there is speculation that the
Geneva conference will result in a special
neutral status for Czechoslovakia along
Austrian lines. There is also speculation among the Polish popu-
lace that Poland and the other Satellites may be permitted to assume
a neutral status in return for a neutral Germany.
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The East German populace is believed to
be pinning its hopes for improved internal conditions and even
Germany's reunification on the summit meetings and the Adenauer
visit to Moscow.
In Rumania there are rumors that polit-
ical prisoners are being released, that the government base will
be broadened, and that free elections will be held.
WESTERN EUROPE
5. Early passage now seen for West German interim arms bill:
Chancellor Adenauerb interim arms bill
. now stands a good chance of securing
Bundestag approval late next week, ac-
cording to American officials in Bonn.
The deputies' objections to an earlier version of the bill have been
largely met by "frantic" activity in various Bundestag committees.
Final parliamentary approval of the bill
may yet be deferred until October, however, since the Bundesrat
is threatening to pigeonhole it unless certain conditions are met.
� Coalition leaders, who say the bill requires the express approval
of the upper house, are somewhat worried over the Bundesrat's
attitude because of the chancellor's highhanded methods in intro-
ducing the bill in that body.
Comment: If the bill clears the Bundestag
as expected, prospects are that the Bundesrat will act on it before
adjournment, provided the government makes certain concessions
on states' rights and patronage. The Bundesrat is tentatively plan-
ning to adjourn on 22 July.
The bill involved provides for the recruit-
ment of 6,000 volunteers to get West German rearmament under way.
It is an interim measure designed to serve only until permanent arms
legislation is passed.
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6. Indonesian vice president urges prime minister to resign:
Comment: The All cabinet, apparently
at the insistence of President Sukarno, installed General Utoyo
as the new chief of staff on 27 June in spite of its knowledge of
the army's united opposition to Utoyo's appointment. The army
has refused to recognize Utoyo, and army-cabinet relations are
at a complete impasse. Vice President Hatta's reported request
for Ali's resignation indirectly supports the army's position, and
Is his first open break with Sukarno on a top policy level.
Indonesia's leading opposition party, the
Masjumi�an anti-Communist, Moslem organization, is reported
prepared either to join a cabinet appointed by and responsible to
President Sukarno or to assume responsibility for forming a new
government should the Ali cabinet fall. The Masjumi secretary
general has stated that the elections now scheduled for 29 Septem-
ber would not be delayed by a change of government.
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