CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002100190001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 21, 2016
• Document Release Date: May 3, 2002
• Sequence Number: 1
• Content Type: REPORT

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1955
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Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
Ll DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
AU T H: HR 70-2
DA'3 E:./Q-- REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. review completed
W.,//////
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SUMMARY
SOVIET UNION
2. Comment on inclusion of Khrushchev in Soviet delegation . Q
Geneva (page 4),
3. Soviet central committee decisions suggest role of industry in
Sixth Ftve-Year Plan (page 4).
SOUTHEAST ASIA
4. Malayan government to issue amnesty for terrorists (page 5),
5. Comment on Indonesian government plan to solve army-cabinet
impasse (page 6).
SOUTH, ASIA
6. Afghanistan will not abandon Pushtoonistan campaign (page 7),
WESTERN EUROPE
7. Austrians considering Soviet proposal for civil air link (page 8).
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2. Comment on inclusion of Khrushchev in Soviet delegation to
Geneva.:
The decision for Ihrushchev to at-
tend the Geneva conference may have
sprung from concern that without his
powers would underrate the importance of
the conference and be unwilling to commit themselves on impor-
tant issues, feeling that in. Bulganin they were not dealing with
the actual "summit" of Soviet power. Bulganin may have had
this in mind when he said to reporters at the French embassy
Bastille Day party that the make-up of the Soviet delegation means
"that this will be a parley at the very summit:,
The presence of Khrushchev along with
Bulganin and Molotov will enable the Soviet delegation to make "on
the spot" decisions.
3. Soviet central committee decisions suggest role of industry in
Sixth Five-Year Plan:
The decisions of the central committee
of the Soviet Communist Party indicate
a continuation of the economic policy
set forth in the February 1955 budget, according to incomplete
Soviet radio broadcasts. That budget emphasized the rapid growth
of heavy industry, a high level of military preparedness, and in-
'creasing concern with agricultural.output.
The central committee re-emphasized
the primacy of heavy industry as.the basis for all economic devel-
opment and announced that the total industrial production goal of
the Fifth Five-Year Plan. (1.951-1955) was fulfiller on 1: May 1955,
eight months ahead of schedule.
The Sixth Five-Year Plan (1956-1960),
which will be announced at the 20th Party Congress beginning on
14. February 1956, will apparently be compiled in accord with
these decisions of the central committee. It will probably re-
emphasize utilization of the most modern equipment for greater
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mechanization, automation, and specialization in order to solve
the chronic problems of high production costs and lagging labor
productivity. The decisions strongly suggest new pressure to
meet plans, especially those for technological improvements
and revision of wage rates.
These decisions also indicate that the
USSR will continue to stress the rapid expansion of the metal-
lurgical (especially aluminum), fuel, chemical, electric power,
and other basic industries in the. Sixth Five-Year Plan.
. The reduction in the personnel strength
of the administrative apparatus since Stalin's death and the re-
moval of some administrative offices from Moscow or other pop-
ulation centers to the geographic areas in which their subordinate
economic enterprises are located will continue. The expansion
of the authority of supraministerial administrative bodies such
as the recently formed Committee on Labor and Wages, will cone
tinue as a part of the effort to reduce administrative overhead
and increase industrial efficiency.
The decisions also restate the policy of
moving the industrial center of the USSR eastward and again or-
der closer supervision by local party organizations of economic
enterprises located within their jurisdiction.
Prepared by ORR)
SOUTHEAST ASIA
Malayan government to issue amnesty for terrorists:
The Malayan government plans to is-
sue after the, 27.July.'electtons, ,
an amnesty to "people in the jungle"'
rather than to either the Malayan..Com-
munist Party or the Malayan Races
era on Party, according to the American consul in Kuala
Lumpur.
The amnesty will permit terrorists wish-
ing to leave the country to do so and the remainder to return to
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normal. life after interrogation and "proof of loyalty to Malaya;"
Should.any high-ranking Communists accept the amnesty, they
would .be kept indefinitely in detention, according to the British
director of operations.
Malayan Communist posters found in
Singapore state that the Communist offer for a negotiated peace
is still open and they imply that the Communists are amenable
to any British counter suggestion to end terrorism.
Comment. In view of increasing Com-
munist peace propaganda in Malaya, a substantial number of
terrorists may be ordered to "accept" the amnesty terms. The
Communists' emergence from the jungle will accelerate their
already successful program of subversion in Malaya and Singa-
pore.
British authorities recognize this danger,
but their refusal to offer an amnesty- -favored by the leading po-
litical organization in Malaya--would only stimulate anti-British
feeling which, in turn, could be effectively exploited by the Com-
munists. In view of this, British administrators consider it es-
sential to adopt a more liberal policy toward the insurgents.
5. Comment on Indonesian government plan to solve army-cabinet
impasse:
The resignation of pro- Communist
Defense Minister Iwa from the Indo-
nesian cabinet is only the first step
in a rnment plan to solve army-cabinet difficulties, accord-
ing to an Indonesian news agency. The government is also will,
ing to reinstate Colonel Lubis as deputy chief of staff, as de-
manded by the army, but will ask the army to accept General
Utoyo as chief of staff. Utoyo will then be honorably discharged.
The chances are that the army will accept the government's pro-
posals.
Prime Minister All has taken over the
defense portfolio, but he may have considerable difficulty in pre-
serving his nine-party coalition cabinet. One party has already
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decided .to urge the government to return its mandate, and another
will hold an executive council meeting next week to decide whether
to withdraw from the cabinet.
Although the Ali government would not
necessarily be overthrown as a result of the defection of these
two minor parties, it would be more dependent than.-ever. on .
Communist parliamentary support for survival
SOUTH ASIA
6. .Afghanistan will not abandon Pushtoonistan campaign:
Afghan king Zahir Shah told the Pakistani
ambassador on 12 July that his govern-
ment was willing to make amends for the
30 March riots in Kabul but that it could
not a an on either its interest in the Pushtoon tribesmen or its
propaganda advocating their independence. The king said, how-
ever, that any propaganda should be "dignified" and should not
breed hatred and violence.
The king also said that he is a constitu-
tional monarch and is therefore unable to take direct action in
the present Afghan-Pakistani dispute. He added, however, that
he would talk to Prime Minister Daud about the Pakistani ambas-
sador's long recital of Daud's "misdeeds of commission and
omission."
..Comment. The king's remarks suggest
that he would be willing to work toward an agreement whereby
Daud's activities were curbed and Afghan propaganda toned down
in return for a reopening of Pakistani consulates in Afghanistan.
The king's "most courteous and gra-
cious" manner throughout the interview and some statements he
made during it suggest that he wishes to keep the. door open for
further negotiation.
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 WESTERN EUROPE
7. Austrians considering Soviet proposal for civil air link:
Austrian civil aviation officers have
confirmed that the Soviet embassy has
approached them for the establishment
of regular air services between Austria
and the USSR within several months.
According to Austrian press reports,
Soviet officials mentioned the possibility of a connecting route
via Hungary with Soviet planes flying from Moscow to Budapest
and Austrian planes from Vienna to Budapest. . The Austrian
Civil Aviation Department reportedly replied that the prerequi-
site, for. such a plan would be an Austro-Soviet bilateral air trans-
port agreement. The Austrians hope to capitalize on their coun-
try's geographic position .to make it a vital pivot in East-West air
transportation.
Comment: A People's Party group now
studying plans for a priva a air ne is hoping to attract American
capital and is reported worried thatAmerican investors may be
discouraged. by plans to open services with the Soviet Union and
Satellite areas,
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