CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000300380001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: December 2, 2003
• Sequence Number: 1
• Content Type: REPORT

Appro? 19c
SUMMARY
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FAR, EAST.
2. Philippines now appear willing to sign Japanese peace treaty (page 4)0
NEAR EAST
Sterner British Middle East policy seen (page 5).
EASTERN EUROPE
Yugoslav Government maintains over-optimistic capital investment
policy (page 6)0
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State Department review completed
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F ' , EAST::
Philippines now appear. willing, to sign. Japa aae_ .ace..tr..e.aty:.,,
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Qf "recognizing. that Japan lacks the capability ... , to. make adequate repara-
tions, " the Allied Powers shall recognize that "the, resources of Japan are
not presently sufficient to make complete reparations . R
The Phlippines..probably will. accept, the, most
recent revision of the Japanese ,pe.ace treaty,
actor ding.. to ,US,,.Ambassador Cowen in.1 anila?
The .principal... mbddificat n,. provides that instead
C ent- The Filipinos. made strong;efforts
until the last moment to leave the door `open for reparations to be paid in
money, goods and services whereas the reparations envisioned above are'to
be supplied from Japanese services alone. 25X1
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NEAR EAST
der British Middle East policy seem:
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countries. The Conservatives would certainly establish a "tougher" policy
were, they to come to power, and the present government, under heavy domes-
tic pressure, is displaying impatience over developments there, as mani-
fested in the current British attitude toward Egypt and Iran.
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Noting strong parliamentary and public dissatis-
faction with the present situation in the Middle
East, US Embassy London forecasts a stiffening
of British policy in dealing with Middle Eastern
The embassy emphasizes further that the British
take seriously their "major responsibility" in the Middle East, but that their
appreciation of their need for US military and economic support was one of
the most significant aspects of the recent House of Commons Middle East.
debate. The embassy adds the. caution, however, that the British "will listen
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to. our advice, but will definitely not want to be displaced or relegated to a
secondary role. in the. Middle E a s t .
ent, Various,. indications, since the onset
Of. t$ ; Iranian. crisis have suggested . the. growing..coucern... of both,, government
circles and informed public opinion over the state of British interests in the
Middle East -- at times excluding consideration of other pressing matters:.
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E,STERN .EUROPE
. .
7~ Yugoslav Q vernment maintains over-optimistic capital investment policy:
US Ambassador Allen in Belgrade believes that
a warning to the Tito government on its over-
ambitious capital investment program should be
deferred until funds have been made available
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for the US-approve,, portion of the investment program-
Allen
suggests the importance of considering
Yugoslav over-optimism regarding its productive capabilities when forma-
Wing US policies for financing Yugoslav investment in strategic materials
projects and economic aid. He believes the Yugoslav Government tends to
minimize its need for production geared for immediate export, expansion
of agricultural and consumer goods production, and completion of existing
investment projects which can be quickly productive. 11
Unless these conditions are met, Allen
believes that Yugoslav economic plans are likely to become unworkable.
Comment- The Yugoslav economy has consis-
tently suffered from the highly theoretical and overambitious economic
schemes of its Marxist planners. This tendency has recently been partially
overcome by the advice of US economists and technicians.
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