CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000200200001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: June 30, 2003
• Sequence Number: 1
• Publication Date: May 11, 1951
• Content Type: REPORT

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CURRENT INTELLIGENCE BULLETIN
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. India and Ceylon favor Communist participation in Japanese peace
treaty negotiations (page 3).
2. Comments by US Embassy Moscow on Soviet note concerning Japanese
peace treaty (page 1).
3. Comment on recent developments regarding Soviet and American
wheat for India (page 4).
FAR EAST
5. Communist China seeks rubber from Indonesia page
NEAR EAST
7. Syria appeals to Egypt for aid in Syrian-Israeli or er aispute
(page 7).
8a. Some improvement noted in Egypt's attitude toward Anglo-Egyptian
defense issue (page 7).
WESTERN EUROPE
11. Schuman Plan ratification delayed by French political situation
(page 10).
Approve
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GENERAL
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1. India. and Ceylon favor Communist participation in Ja anese eace
treaty negotiations:
According to various diplomatic sources, India
and Ceylon feel that, in order to ensure a
lasting settlement, every effort should be made
to obtain Soviet and Communist Chinese par-
ticipation in Japanese peace treaty negotia-
tions. India is opposed to Japanese rearma-
ment, believing that Japan's security should
be guaranteed by the UN. On the other hand,
Ceylon thinks that Japan, as a sovereign
nation, has the right to look to its self-defense
individually as well as collectively. Both
countries are opposed to any treatment which
will leave bitterness amongst the Ja anese
and neither objects to the development of normal Japanese commercial
relations.
2. Comments by US Embassy Moscow on Soviet note concerning Japanese
peace treaty:
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The US Embassy in Moscow believes that the
Soviet Foreign Office felt obliged to come
forth with comment in response to the draft
Japanese peace treaty presented by the ITS
on 29 March, The timing of the Soviet note is largely due, in the Em-
bassy's opinion, to a desire to place the USSR's position on record
before further developments occur. The Embassy considers that (a)
the Soviet demand for a Four-Power Council of Foreign Ministers in
June or July may be designed to "keep the Council of Foreign Ministers
pot boiling for propaganda purposes" in anticipation of a possible failure
of the Paris .negotiations, and (b) the omission of France from the pro-
posed meeting is noteworthy. Of the five specific proposals concerning
the peace treaty contained in the note, two are devoted to the Japanese
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economy and trade. The Embassy reels that aside from the propaganda
aspects of these proposals, it is also possible that the USSR, con-
sciously or unconsciously, is betraying its concern over the economic
situation of Red China if traditional Japanese economic relationships
in Asia are not re-established.
Comment: Although in the past the Soviet
position regarding the inclusion of France in a Council of Foreign
Ministers on a Japanese peace treaty has been ambiguous, it appears
that the USSR has never specifically proposed that France should join
the US, USSR, Great Britain and China in drafting the treaty. On the
other hand, the USSR has on several occasions made specific refer-
ences to the other four powers in this regard. Its latest note makes
it clear that the Soviet Union believes France is not entitled to a major
role in the preparation of the peace treaty on the grounds that it did
not formally declare war on Japan and was not a signatory of the
Japanese surrender document. (A Free French representative actually
signed the surrender document).
3. Comment on recent developments regarding Soviet and American wheat
for India:
According to the New Delhi radio, Prime
Minister Nehru told an applauding Parliament on 10 May that Soviet
vessels were already on their way to India with the first shipments
of a total of 50, 000 tons of wheat recently purchased from the USSR
for cash. Deliveries of the full amount were to be completed by the
end of June. At the same time, Nehru announced to Parliament that,
in his opinion, the two food bills now before the US Congress had no
political or discriminatory conditions attached to them and that "on
these grounds" there should be no objection to accepting either of
them. He added that he preferred the terms of the House bill because
they were simpler.
Stro;.ig representations were necessary to get
Nehru to make the above statement on the US food bills. It is note-
worthy 'that, in making the statement, Nehru maintained his independence
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of US favors by supporting the House bill, which provides wheat to
India solely on a loan basis. The final terms of a US loan may be the
determining factor governing an Indian decision to,accept US or Com-
munist offers.
FAR EAST
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5. Communist China seeks rubber from Indonesia:
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The Government of Indonesia is considering
Communist China?s offer to purchase 50, 000
tons of rubber. In conversations with the
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 US Ambassador in Djakarta, Indonesian Foreign Minister Subardjo
stated that the Chinese were offering rice and tungsten in payment for
the rubbe ra
Comment: This approach to Indonesia, to- .
gether with a similar offer to Ceylon, is. testimony to the strong efforts
of the Chinese Communists to find new sources of rubber supplies as
an alternative to Malcyan supplies. In view of Indonesia's declared
willingness to sell rubber to Orbit as well as non-Orbit countries,
Indonesia is more likely to accept the Chinese Communist offer than
Ceylon. In any case, Indonesia lacks the administrative machinery
to prevent Orbit purchases of. privately-owned rubber, which consti-
tutes the overwhelming bulk of its rubber output.
NEAR EAST
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7. Syria appeals to Egypt for aid in Syrian-Israeli border dispute:
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US Ambassador Caffery in Cairo has been
informed by the Egyptian Foreign Minister
that Syria has appealed to Egypt for aid in
connection with the current Syrian-Israeli
border troubles, and that Egypt is "on the spot" and must do something
about the appeal. The Foreign Minister stated that since the UN is not
taken seriously in his part of the world, he was requesting Ambassador
Caffery to submit an urgent appeal to the US to take some positive
action. The Foreign Minister indicated that he was taking the matter
up personally with Caffery so as not "to throw monkey wrenches into
the machinery. "
Comment: The type of aid Syria has requested
from Egypt is not defined. Syria would logically turn to Egypt, the most
influential of the Arab countries, since Egypt has long supported an
indepen ria ap:ainst proposals for incorporating it with Iraq and
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25X1 The serious concern e y e Arab States generally
over the current Syrian-Israeli border incidents is underlined by the
fact that a special meeting of the Arab League Political Committee is
scheduled to meet in Damascus on 14 May to discuss the border situation.
8. Some improvement noted in E
defense issue:
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is attitude toward Anglo-E
The US Ambassador in Cairo reports that the
situation involving the Anglo-Egyptian treaty
negotiations has taken "a momentary turn for
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the better. " Egyptian Foreign Minister Salaheddin recently told the
US Ambassador that if the forthcoming British reply allows Egypt "to
save some face, " the Egyptian public will be told that the door to
further discussions is still open and Salaheddin will then go to London
for subsequent negotiations. Salaheddin indicated that Egypt would be
prepared for discussions throughout the summer but that if no progress
had been made by November, Egypt would denounce the 1936 Treaty.
The US Ambassador believes that the King's desire to prevent a break-
down in negotiations at this time is the main reason for the present
change in the Egyptian attitude toward the treaty problem.
Comment,. King Farouk's opposition to a
break in Anglo-Egyptian treaty discussions, coupled with Salaheddin's
more moderate attitude toward the defense problem, should help con-
siderably in bringing about a continuation of the talks. Nevertheless,
a wide gap remains between British and Egyptian thinking on the defense
issue.
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WESTERN EUROPE
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 11. Schuman Plan ratification delayed by French political situation:
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Assembly at the end of this week, parliamentary action will be post-
poned until sometime after the June elections and the organization of
the new Parliament -- that is, until at least mid-August. The delegates
of the six participating countries have informally exchanged ratification
documents, but the submission of the Schuman Plan to the German
Bundestag in early June is doubtful in view of the delay in French action.
The Netherlands plans ratification before the end of Parliament's session
on 20 July; the ratifications of the other Benelux countries are being
held up by technical difficulties. As yet, the Embassy has received no
indication of the action to be taken by Italy.
Comment; The opposition in France can be
expected to pose a serious threat regardless of the composition of the
next Assembly. German ratification now appears probable in view of
recent trade union approval of the Plan and the failure of the Socialists
to gain appreciably in recent provincial elections. However, undue
delay elsewhere may prejudice the present favorable outlook in Germany.
According to the US Embassy in Paris, al-
though the bill for French ratification of
the Schuman Plan was submitted to the Cabinet
on 9 May prior to presentation to the National
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