CURRENT INTELLIGENCE BULLETIN - 1955/07/23

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03448342
• 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 23, 1955

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T-60-P-SEC-R-ET-
23 July 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO
NO CHANGE IN CLASS.
LI DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: U /
AUTH: HR 70-2
DATE: 10/80 _ REVIEWER: _
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
99
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TOP SECRET V /
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SUMMARY
SOVIET UNION
I. New light cruiser added to Soviet Northern Fleet (page 3).
SOUTHEAST ASIA
2. Sino-Viet Minh propaganda on Indochina becomes more belligerent
(page 3).
3. Viet Minh said to be giving clandestine aid to Hoa Hao dissidents
(page 4).
SOUTH ASIA
4. Comment on reported increase in Soviet-Afghan trade activity
(page 5).
NEAR EAST - AFRICA
5. Liberal program for Morocco seen gaining decisive support in
France (page 6).
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SOVIET UNION
1. New light cruiser added to Soviet Northern Fleet:
a new light cruiser oi tne
Sverdlov class has been delivered to the
Sdviet navy by the Molotovsk shipyard and that the new vessel is
undergoing shakedown operations in the Archangel area.
Comment: The addition of this cruiser
and two others transferred from the Baltic in May brings cruiser
strength in the Archangel area to seven; in 1950, when the build-
up of the Northern Fleet began, there were none. The growth of
cruiser strength in the only Soviet European fleet with access to
the Atlantic has been accompanied by the addition of at least 20
new long-range submarines and at least 26 destroyers in the same
period of time.
The first cruisers of the Sverdlov class
were laid down in 1949 at Leningrad. A total of 14 have been built
thus far--ten at Leningrad, two at Molotovsk and two at Nikolaev.
At least two more probably are under construction at Leningrad,
one at Molotovsk and two at Nikolaev.
SOUTHEAST ASIA
2. 81n0-Viet Minh propaganda on Indochina becomes more belligerent:
Chinese Communist and Viet Minh propa-
ganda on developments in Indochina has
become more ominous in the past few days.
The United States is accused by Peiping of creating a "serious threat"
by obstructing implementation of the Geneva accords, mastermind-
ing the Saigon riots, and of "sparing no effort to dismember Vietnam
and turn South Vietnam into an American military base." Peace in
Indochina, therefore, is facing a "crisis," this propaganda asserts,
and the United States "will be responsible for the grave consequences."
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Viet Minh propaganda has been even more
vehement. Hanoi broadcasts claim that the United States is plan-
ning to attack both North Vietnam and Communist China.
Considerable attention has been focused
on Laos. The United States is accused of sabotaging negotiations
between the royal government and the Pathet Lao and of instigat-
ing the recent fighting at Muong Peun. On 19 July, Peiping noted
that China and Laos were neighbors and warned that unless "sinis-
ter American maneuvers" to promote aggression in Laos through
the Manila pact were frustrated, "the flames of war in Indochina
would be rekindled."
The Communists may follow this propa-
ganda attack with acts of violence intended to spur diplomatic
activity toward a solution in Vietnam. (SECRET)
3. Viet Minh said to be giving clandestine aid to Hoa liao dissidents:
Comment: Ba Cut is said to be violently
anti-Communist. However, in view of his present logistic and fi-
nancial difficulties, he may feel constrained to accept Viet Minh
aid.
The Vietnamese army, in the second�
phase of its operation against Ba Cut's forces, has largely succeeded
In containing them, but is unlikely to suppress them completely in
the foreseeable future.
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SOUTH ASIA
4. Comment on reported increase in Soviet-Afghan trade activity:
The Soviet Union, in what appears to be
an attempt to increase the tempo of eco-
nomic penetration of Afghanistan, is
reported to have greatly increased motor
and aviation gasoline shipments. The
USSR also has offered to fill all Afghan
requirements for diesel oil, purchase one
third of the cotton crop, and buy the en-
tire annual supply of karakul skins.
Soviet
offers to provide the Afg ans wan ZD million meters oi cotton
cloth within the next two months. Such large imports from the
USSR would probably result in a comparable reduction of Afghan
imports from India.
In an apparent effort to make its pro-
posals for a transit agreement more attractive to Afghanistan, the
Soviet Union is reported to have offered to transport Afghan cotton
from the Oxus River on the Soviet-Afghan border to Batumi on the
Black Sea for the same price as Afghanistan now pays to transport
cotton from Peshawar to Karachi.
There appear to be no transport or eco-
nomic problems which would place a significant obstacle in the way
of completely reorienting Afghan foreign trade both to and through
the USSR. In view of the present attitude of the Afghan government
in resisting Pakistani pressure, estimates
that the Afghans would consider additional costs a minor factor.
It le
doubtful that a major reorientation of Afghan trade, as opposed to
emergency shipments, would be considered before another round of
mediation negotiation is attempted and fails. The Afghan government,
however, will probably use Soviet economic offers to bring new pres-
sure to bear on Pakistan. (Prepared by ORR)
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NEAR EAST - AFRICA
5. Liberal program for Morocco seen gaining decisive support in
France:
Well-informed Paris sources see a trend
in France in favor of a liberal policy in
Morocco, according to the American em-
bassy. The recent activities of French
extremists in Casablanca have evoked a strongly unfavorable re-
action in Paris, and in Morocco Resident General Grandval's ac-
tions have gained him prestige with liberal French and moderate
Moslems.
Premier Faure seems assured of suffi-
cient support from the Socialists and from Mendes- France sup-
porters in the National Assembly to compensate for the loss of
votes on the right over a conciliatory North African policy. Re-
liable sources, including certain members of parliament, expect
Sultan Ben Arafa to be replaced,probably by a regency council,
some time in August.
Comment: Appointment of a regency
council, unsupported by former sultan Mohamed ben Youssef,
would still leave the nationalists unsatisfied. They insist on the
return of the former sultan. France may therefore reinstate him
outright in order to dramatize its announced policy of reducing
direct French control of Morocco.
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