CURRENT INTELLIGENCE BULLETIN - 1951/10/26

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02020557
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: October 26, 1951

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RITY INFORMATION
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26 October 1951
Copy No.
47
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CI4AN3E 4N CLASS.
I ; DECLASSIFIED
CLASS. CHANGED TO; IS G
NEXT RE VISW DATE:
AUDI: HP ase
DAT'. _MTIEVIEWER.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TOE-SECRET
cumin INFORMATION
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SUMMARY
FAR EAST
1. Russian proriosal strengthens China's position in Sinkiang (page 3).
2. Rift develops between De La,ttre and Vietnamese Premier (page 3).
NEAR EAST
5. Egyptian King pessimistic over developments in Egypt (page 5).
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EASTERN EUROPE
7. Yugoslav Politburo member may be dropped (page 6).
WESTERN EUROPE
8. Allies to suspend interzonal trade if Berlin harassing continues (page 7).
9. French more amenable to German NATO membership (page 7).
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11. Swiss may reconsider their neutrality in event of war (page 8).
12. Portugal views Egyptian crisis with alarm (page 9).
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FAR EAST
1. Russian proposal strengthens China's position in Sinkiang:
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Comment: The central government in China has
traditionally held only nominal control over Sinkiang, which is considered
within the Soviet sphere of influence. Recent developments, however, indicate
that Peiping is trying to extend its authority in the area. Customs offices in
Sinkiang have been brought under Peiping's direct jurisdiction, and the special
currency which circulated in the province is being exchanged for regular
Chinese currency. The clearing of trade transactions through Peiping will
further strengthen the Chinese position in this border area.
2. Rift develops between De Lattre and Vietnamese Premier:
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General de Lattre told US Minister Heath that
Premier Huu has been financing an anti-De Lattre
campaign among French politicians, has arro-
gated too much power to himself, and has failed
f the Vietnamese army. De Lattre clearly indicated
that he would seek, at Hull's expense, to strengthen the position of Bao Dai as
the dominant Vietnamese political figure.
Comment: This situation illustrates the com-
plexity and instability of Vietnamese politics. There are three "chiefs" --
Bao Dai, Huu, and De Lattre -- none of whose responsibilities has been clearly
defined. De Lattre is the real repository of power but must maneuver behind
the scenes to avoid offending Vietnamese sensibilities.
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NEAR EAST
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5. Egyptian King pessimistic over developments in Egypt: 3.3(h)(2)
The Egyptian King informed the US Ambassador
on 24 October that he was extremely pessimistic
over developments and that it looked as if Egypt
was "headed for real trouble from which only
1 s wou pro it." The King was bitter over British actions in
the Suez canal zone, stating that the UK was making it impossible for him or
any Egyptian government to accept a satisfactory solution of either the
defense problem or the Sudan question. He stated that only the US was in a
position to find reasonable solutions to the difficulties, and he tLrged that the
United States and Britain do nothing to worsen the situation.
The King further advised the Ambassador that he
had ordered Egyptian soldiers to resist any move to force them out of the
canal zone. He also stated that, in a recent secret meeting, members of the
fanatic Moslem Brotherhood had sworn to assassinate thirteen men, including
himself and the Prime Minister. The King intimated that, while he favored
Egypt's participation in an Eastern Mediterranean defense scheme, inflamed
sentiment did not permit optimism.
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EASTERN EUROPE
7. Yugoslav Politburo member may be dropped:
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A Yugoslav Politburo member, Franc Leskovsek,
who was recently removed from his governmental
post, may soon be dropped from the Politburo.
According to US Embassy sources in Belgrade, two
ose co ors of Leskovsek have been arrested, one for criticizing Yugo-
slavia's eco mic policies and the other on charges of Cominforrnism. These
arrests suggest that Leskovsek's removal from his governmental post was partly
inspired by security considerations. The Embassy believes that he and his col-
laborators are guilty of violating discipline by refusing to accept party decisions.
Comment: The removal of Leskovsek from the
Politburo would mark the first break in the top party leadership since the Tito-
Cominform rift, and would be tangible evidence to substantiate recent reports of
differences within the Politburo over the government's policies on internal
reforms and aid from the West. There is no evidence, however, that Leskovsek's
removal would seriously disrupt the unity of the party.
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WESTERN EUROPE
8. Allies to suspend interzonal trade if Berlin harassing continues:
The Allied High Commission has decided to sus-
pend interzonal German trade if Soviet and East
German authorities do not within a week satis-
factorily carry out previous assurances that
r in would cease. Meeting with West German Eco-
nomics Minister Erhard, the High Commission pointed out that the Allies, in
permitting signature of the trade pact on 20 September, had demonstrated good
faith which has not been reciprocated by the USSR.
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Erhard stated that, since East and West Germans
had on 23 October reached agreement on schedules for deliveries of the iron
and steel shipments urgently needed by East Germany, there would now be
greater inducement for the East Germans to fulfill their oral promises. He
therefore urged the Allies to give the East Germans a week before applying
countermeasures.
Meanwhile, shipments of steel to East Germany
were suspended as of 24 October.
Comment: Although French and British authorities
had earlier been unwilling to Tso far as to suspend interzonal trade, they
appear to have been persuaded to change their stand because of recent more
flagrant violations of the oral agreement to cease certain interferences with
Berlin trade. The recent East German seizure of Steinstuecken, the small
outlying community of the American sector of Berlin, has further demonstrated
the Soviet intention to continue harassing tactics in the vulnerable city.
9. French more amenable to German NATO membership:
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he attitude of the French NATO Deputy Alphand
nd his counselor on the question of German
embership in NATO has "softened" considerably
n recent weeks. They feel nevertheless that
ar y raising of this question might swing the balance against French ratification
of the European Defense Forces treaty, which will be difficult to obtain in any
event. .Alphand expects the Germans to demand NATO representation soon, and he
sees no logical basis on which to refuse the demand.
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Comment: In early September for the first time
a French Foreign Office spokesman predicted that France would accept German
participation in NATO, possibly in the summer of 1952, or some six months
after the Germans agree to a defense contribution. Timing now seems to be
the most important consideration and, since the Germans will probably accept
unofficial assurances on eventual NATO membership, it is unlikely that they
will adopt a stand which would threaten French ratification of the European
Defense Forces treaty.
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11. Swiss ma reconsider neutrality in event of war:
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The American Minister to Switzerland reports
that the Swiss Undersecretary of State told him
that "Swiss neutrality today means only that,
immediately in the event of outbreak of war in
urope, e Federal Council would have to consider whether such neutrality
was any longer possible."
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Comment: This Swiss intimation that their
neutrality is not what it seems is the second approach made to US officials on
this subject within the last three months, and may in part stem from an anxiety
to obtain adequate equipment from the West to overcome military deficiencies.
Some of the Swiss military favor closer liaison with the Western powers. In
addition, the Swiss have shown themselves to be increasingly in favor of the
West in recent months. On the other hand, the Swiss public still appears firmly
dedicated to the principle of neutrality.
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12. Portugal views Egyptian crisis with alarm:
A spokesman for the Portuguese F'oreign Ministry
has officially informed the US Embassy that his
government envisages the complete collapse of
Britain's prestige in all of Africa if the British
are compelled to withdraw from Egypt and the Sudan as a result of the "uni-
lateral Egyptian action." He stated that a British withdrawal would have ex-
tremely harmful effects in strategic French North Africa.
Comment: The Lisbon government views each
fresh outbreak of African nationalism is a threat to Portugal's rule over the
third largest colonial empire in Africa. There is, at present, no appreciable
independence movement in the major Portuguese possessions of Angola and
Mozambique. The Portuguese fear, however, that a retrenchment of British
and French interests would automatically set the stage for an eventual attack on
Portugal's position by various critics throughout Africa.
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