CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000500090001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: July 15, 2003
• Sequence Number: 1
• Publication Date: December 22, 1951
• Content Type: REPORT

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1951
DOS REVIEW
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Co
py No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. --
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NEXT REVIEW DATE: --!'
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DAI REVIEWER:
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
T?P SECRET
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SUMMARY
FAR EAST
1. Satisfactory settlement of Dutch-Indonesian problems appears
difficult (page 3).
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WESTERN EUROPE
5. West German ratification of Schuman P1 an seen (page 6).
6. West Germans may reduce demands for equal status in arms
production (page 6).
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wed
FAR EAST
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1. Satisfactory settlement of Dutch-Indonesian problems appears
difficult:
was last week, when he considered it possible to "find a satis-
factory basis for discussions. " He told the chairman of the Indo-
nesian delegation that the Dutch would find it difficult to continue
formal negotiations if there are more incidents such as the recent
seizure in Javaof? arms on a Dutch ship destined for West Neiv
Guinea and the temporary arrest of Dutch nationals and Indonesian
employees of the shipping company.
Negotiations are temporarily stale-
mated pending the formal Dutch reply to the Indonesian note
requesting that New Guinea also be included on the conference's
agenda.
The co-chairman of the Netherlands
delegation to the Dutch-Indonesian
talks at The Hague has stated that the
atmosphere is less favorable than it
Comment: Dutch-Indonesian relations
are now being discussed irtormally at The Hague, and negotiations
are expected to be finished by the end of January. Indonesia is
insisting that it be given sovereignty over West New Guinea, but
there is as yet no indication of a change in the Dutch policy to
retain interim control over the area. The Dutch will be extremely
reluctant to grant Indonesia's financial and economic demands.
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WESTERN EUROPE
5. West German ratification of Schuman Plan seen:
Local officials feel that ratification
of the Schuman Plan by the West Ger-
man Bundestag is now "virtually en-
sured by a considerable margin. "
Approval of the Plan by the Foreign Affairs Committee on 18
December has cleared the way for final parliamentary action
early next month.
Comment: The action of the committee
followed a rebuff to the Chancellor from the Lower House on the
issue last week. A steering committee, aroused at the Chancellor's
high-handed attempts to force consideration of the Plan before
Christmas, voted to postpone floor debate until after the Christ-
mas recess. This committee vote had, according to local US
representatives, the "somewhat sheepish concurrence" of members
of the government coalition, who broke ranks after a member of
Adenauer's party supported the opposition's plan to postpone con-
sideration.
6. West Germans may reduce demands for .equal status in arms pro-
uction:
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In discussing German security controls
with the US High Commissioner, Chan-
cellor Adenauer stated that he still
wants all German arms production re-
gulated by the European Defense Community, since this arrange-
ment precludes discrimination against West Germany. The US
High Commissioner proposed, however, that the Federal Republic
enact legislation prohibiting the manufacture of atomic, biological
and chemical weapons, guided missiles, airplanes and certain
naval craft, with all other German arms production being ex-
clusively controlled by the European Defense Community.
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Adenauer reacted favorably to this by
indicating that if other Community nations persisted in rejecting
his view, he would consider the proposal, provided that German
scientists be permitted to participate in atomic research in other
countries, and that the aircraft restriction be withdrawn.
The US High Commissioner feels that
these two conditions are reasonable in the light of the German
political situation and that Adenauer will negotiate on this basis.
Comment. The current negotiations
over German arms restriction have bogged down on French de-
mands for stringent controls of German arms manufacture. The
American proposal could break this deadlock since it may offer
French negotiators enough restrictions to placate public opinion.
The French are particularly concerned
about the revival of a German heavy weapons industry. American
officials in Germany would like to see such a revival, with some
restrictions, because they feel full use must be made of German
industry if. Europe is to be adequately rearmed. Since under
this proposal the European Defense Community would control all
German arms manufacture, that body might later work out a com-
promise between these two positions.
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