CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A002100360001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 21, 2016
• Document Release Date: May 1, 2002
• Sequence Number: 1
• Content Type: REPORT

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TO!'SF.CRET
26 July 1955
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. _a,.9-- --
NO CHANGE IN CLASS.
Ll DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: 201
AUTH: HR 70-2
DATE: 1 /aad REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. review completed
TOP SECRET
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00,
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SUMMARY
FAR EAST
1. Communist China about to establish diplomatic relations with
Nepal (page 3),
SOUTHEAST ASIA
2. Fall of Indonesian government analyzed (page 3).
3. Singapore chief minister threatens to resign (page 4).
SOUTH ASIA
4. Comment on India's request to Portugal to close its legation in
New Delhi (page 5).
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FAR EAST
1. Communist China about to establish diplomatic relations with
Nepal:
The Chinese Communist ambassador to
India is reported to have left for Kat-
mandu on 25 July to arrange for the es-
tablishment of diplomatic relations be-
tween ommunis na and Nepal, The Nepalese charge in New
Delhi believes that the question of chanceries in Katmandu and
Peiping will not be raised in these negotiations, which he expects
to last only a few days.
Comment: In the past few months the
Chinese Communists have again been pressing for the establish-
ment of diplomatic relations with Nepal, and they are unlikely to
be satisfied for long without installing a mission in Katmandu.
India, which dominates Nepal's foreign
relations, has in the past been reluctant to permit the Nepalese
to enter into relations with China. Nehru recently indicated to
the Nepalese ambassador that he does not want a Chinese mission
in Katmandu. In the current atmosphere of decreasing world ten-
sion, however, Nehru probably feels he cannot fend off Chinese
requests any longer.
SOUTHEAST ASIA
2. Fall of Indonesian government analyzed:
The American ambassador in Djakarta
sees three major factors in the resig-
nation of Premier All Sastroamidjojo's
government:
(a) the army-cabinet impasse over the
chief-of-staff problem;
(b) the increasing concern over the gov-
ernments neglect of the country's deteriorating economy; and
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(c) the growing dissatisfaction with the
drift toward Communism as seen in Ali's and President Sukarno's
opportunistic collaboration with the Communists.
.The ambassador believes the fall of the
Ali cabinet and the lessons of the army crisis will bring Indonesia
back to an "even keel."
Comment: While there had been signs of
growing discontent with t e government, it would probably not
have fallen if there had been no chief-of-staff problem.
The All cabinet will carry on in a care-
taker capacity until a new cabinet is formed. In the past, forma-
tion of a new cabinet has required from five to ten weeks.
3. Singapore chief minister threatens to resign:
The chief minister of Singapore's first lo-
cally elected government, David Marshall,
has threatened to resign unless London or-
ders the governor of Singapore to accept
Marshall's advice rather than merely "con-
u m, as required by the constitution. A motion to this effect
is now before the Singapore assembly.
The American consul general believes
that if Marshall resigns and a new election is held, the resulting
government would be further to the left than the present one.
Marshall told the consul he advanced the.
motion in an effort to seize the initiative from the Communist-front
People's Action Party, which is capitalizing on the frustrations of
the government ministers.
Comment: The avowed intention of the
People's Action Party is to unsea Marshall's tabor Front govern-
ment and make new elections necessary. The party has provoked
a series of strikes and has used student unrest to keep Marshall off
balance almost continuously since his government was elected last
April.
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Marshall's drastic action apparently is
an effort to maintain his popular appeal and to counter pressure
from the People's Action Party--whether he continues in office
or stands again for election.
SOUTH ASIA
4. Comment on India's request to Portugal to close its legation in
New .
India's request to Portugal to close its
legation in New Delhi by 8 August be-
cause of the Portuguese refusal to nego-
tiate over Goa probably does not fore-
s a ow overt aggression by India against Portuguese enclaves.
Nehru is anxious to maintain his role as peacemaker in the For-
mosa Straits and Indochina.
India's action is aimed at inducing Portu-
gal to cede its territories on the subcontinent, but the closing of
the legation does not mean a break in diplomatic relations. India
closed its legation in Lisbon in June 1953 over this same issue.
In spite of political agitation in India for
more energetic action against Goa, the Congress Party Working
Committee passed a resolution on 23 July emphasizing that all
efforts to bring Goa into the Indian union must be peaceful and
that there should be no mass entry into Goa. This suggests that
the march of thousands of Indians proposed for 15 August may
actually turn out to be an insignificant demonstration.
26 July 55
CURRENT INTELLIGENCE BULLETIN
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