CURRENT INTELLIGENCE BULLETIN - 1952/07/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02064600
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: June 6, 2019
• Document Release Date: June 27, 2019
• Publication Date: July 1, 1952

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SECURIfrtFORMATION
July 1952
Copy No,
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO
NO CHANGE IN CLASS.
0 DECLASSIFIED
CLASS, CHANGED TO! IS $
NEXT REVIEW DATE-
AUTH:
Office of Current Intelligence DATE:
CENTRAL INTELLIGENCE AGENCY
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SECUfY INFORMATION
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SUMMARY
SOVIET UNION
1. USSR moves to terminate lease on US Embassy building (page 3).
FAR EAST
2. France may seek American help in withdrawing nationals from
China (page 3).
3. Chinese battalions in Indochina reportedly repulsed (page 4).
4.
5.
NEAR EAST - AFRICA
rnmmpnt nn thp onvernmPnt ehaTIVA in Egypt (naee 4).
WESTERN EUROPE
6. Termination of US aid seen as likely to nullify Danish participation
in NATO (page 5).
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SOVIET :UNION
1. USSR moves to terminate lease on US Embassy building:
The United States Embassy in Moscow reports 3.3(h)(2)
that its administrative officer has been informed
by Soviet administrative officials that the Em-
bassy cannot extend its lease for the chancery
building on MokhavayaStreet beyond 1 January 1953. The Russians
claim that this building is needed by Moscow State University and that
measures are being taken to find a new building as a replacement.
The Embassy points outthat the USSR has
boasted for some time that the new university building on Vnukova air-
port highway would take care of some 6,500 students, and that this action
is therefore one of harassment rather than necessityl.
Pending return of Ambassador Kennan, the
Charge intends merely to send a formal notice of a desire to renew the
lease.
FAR EAST
2. France may seek American help in withdrawing nationals from China:
The French Foreign Office is considering an 3.3(h)(2)
informal appeal for American cooperation in
facilitating the departure of all Frenchnation-
als from Communist China. The source of
this report, a top Foreign Office official, points out that, according to
French bankers, the Chinese probably will not. consent to a withdrawal
unless their dollar assets in the United States are unblocked.
Comment:
France planned to close its last three
consular offices in China, and that French businessmen agreed that
there was no future for them there.
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3. Chinese battalions in Indochina reportedly repulsed:
The ten Chinese Communist battalions
which recently crossed into northwestern
Tonkin are reported by the American
Charge in Saigon to have returned to
China after suffering heavy losses.
The mission of the force was to cooperate
with the Viet Minh against French-supported guerrillas and in cut-
ting river communications. The Sino-Viet Minh units are said to
have suffered nearly 400 casualties, and a French official has stated
that eight Chinese prisoners were taken.
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Comment: The Chinese force, estimated at
between 2,000 and 3,000 men, is the largest yet reported to have
crossed into Tonkin, and is the first known to have suffered casualties
there.
NEAR EAST - AFRICA
4. Comment on the government change in Egypt:
The appointment on 29 June of Sirry Pasha
as Egypt's new Prime Minister, following the resignation on the
previous day of Hilali Pasha, brings into office another moderate,
independent leader with a pro-Western outlook. Hilali's resigna-
tion after only four months in office, however, serves to emphasize
the serious obstacles which any Egyptian Prime Minister must face.
The new government will be under great
pressure to achieve Egypt's aspirations in regard to the Suez and
the Sudan. Nationalist anti-British activities, which were at a mini-
mum under martial law, may at any time increase and lead to serious
disorders.
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In domestic affairs, the new Prime Minister
Inherits the problem of corruption in the government, against which
Hilali made no progress. The country's economy has deteriorated
this year, not only because of Egypt's dispute with Great Britain, but
also because of the diminished world demand for cotton. Moreover,
the new Prime Minister is likely to be hampered by the same palace politi-
cal maneuvering which is said to have been mainly responsible for
s resignation.
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5.
WESTERN EUROPE
6. Termination of US aid seen as likely to nullify Danish participation in NATO:
he American Ambassador in Copenhagen 3.3(h)(2)
stimates that the termination of aid because
enmark is delivering a tanker to the USSR
ould cause the government to fall and would
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drastically reduce Danish cooperation within NATO. Although
Denmark might not formally withdraw from NATO, a cessation of
American aid would "make effective participation impossible as a
practical matter."
The Ambassador further believes that
neutrality sentiment would be strengthened, and a feeling of futility
would mark Danish defense efforts. American efforts to obtain
facilities and operating rights in Denmark would be nullified.
Operations in Greenland would be impeded, and Danish participation
in COCOM terminated.
Comment: Danish Foreign Minister Kraft
has previously warned that his government would fall If aid were
terminated, and that no succeeding government could in such cir-
cumstances support NATO and still remain in power,.
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