CURRENT INTELLIGENCE BULLETIN - 1953/12/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03003763
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: December 16, 1953

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16 December 1953
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO 2
NO CHANGE IN CLASS.
Li DECLASSIFIED
CLASS. CHANGED TO: TS S 0
NEXT REVIEW DATE. �o so 9 .
AUTH: HR 70-2
DATE: .e61/4/..r9. REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. Reported Soviet offer to discuss military sales to India
(page 3).
FAR EAST
. Chinese Nationalists favor Magsaysay as leader of Pacific alliance
(page 3).
SOUTHEAST ASIA
3. Bao Dai reportedly has asked Vietnamese premier to resign
(Page 4).
4.
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NEAR EAST - AFRICA
5. French in Iran antagonistic toward 4ahedi (page 5).
6. Egyptian decision to adopt neutralist' program reportedly imminent
(page 5).
WESTERN EUROPE
7. Adenauer fears proposed Berlin conference may delay EDC action
(page 6).
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GENERAL
1. Reported Soviet offer to discuss military sales to India:
Soviet ambassador Menshikov's reported
offer to discuss the sale of military equipment to India should the
United States decide to arm Pakistan is probably a Soviet propaganda
maneuver. The Soviet ambassador reportedly indicated that the
materiel could be imported under the terms of the Indo-Soviet agree-
ment of 2 December.
This offer is unlikely to be seriously con-
sidered by India, which can foresee the obvious problems of continued
replacement, maintenance, and training, as well as the effect accept-
ance would have on its policy of neutrality.
FAR EAST
2. Chinese Nationalists favor Magsaysay as leader of Pacific alliance
Taipei believes that an anti-Communist
Pacific alliance must be formed within the
next six months to meet increasing Com-
munist activity, according to the Chinese
Nationalist ambassa or o Manila. He told an American embassy
officer that Philippine president-elect Ramon Magsaysay "can and
must" provide the necessary leadership.
The Nationalist ambassador thought it
essential for Magsaysay to visit Formosa, Korea and Japan early
in 1954, and said that Chiang Kai-shek would invite him to Formosa
If assured of his acceptance.
Comment Following their talks in Taipei
last month, Chiang and Syngman Rhee appealed to the governments and
peoples of non-Communist Asia to "organize a united anti-Communist
front." A South Korean delegation touring Southeast Asia is now being
advised by Seoul to suggest an anti-Communist Asian conference in
January.
3.
TC)1) SECRET
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This is the first suggestion that Taipei
and Seoul regard Magsaysay as the anti-Communist leader in the
Far East most likely to gain wide popular support.
SOUTHEAST ASIA
3. Bao Dai reportedly has asked Vietnamese premier to resign:
Bao Dai's principal aide told the American
charg�n Saigon on 13 December that Premier
Tam has been asked to resign in favor of the
Vietnamese representative in Paris, Buu Loc.
4.
Later Tam told the charg�hat he would re-
fuse to resign. The charg�omments, however, that after some face-
saving agreement, Tam will probably be replaced.
Comment: Buu Loc is respected in Vietnam
as a nationalist and is loyal to Bao Dai. A number of reports state that
the next premier will be the defense minister, Phan Huy Qua, who would
also give Bao Dai a government free of the charge of being pro-French.
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TOP SECRET
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NEAR EAST - AFRICA
5. French in Iran antagonistic toward Zahedi:
Ambassador Henderson reported on 14
December that he is troubled by the French
attitude toward the Zahedi government. The
French embassy has shown dissatisfaction
and "sneering cynicism" since the formation of the new government last
August and during the past week, under the leadership of the ambassador,
has more actively criticized and ridiculed the Zahedi regime.
Comment: France has traditionally exer-
cised considerable cultural influence in Iran, where it has many friends.
Accordingly, French antipathy toward the Zahedi regime may become
another factor tending to weaken it.
The present French attitude may be partly
due to annoyance at the recent award of a contract for a major Iranian
dam and power project to an American firm.
6. Egyptian decision to adopt neutralist program reportedly imminent:
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the Egyptian Revolutionary Command
will probably formally adopt before 19 Decem-
ber a neutralist, "anti-imperialist program"
as a result of Britain's refusal to make additional concessions on a
Suez settlement.
The proposed program includes a declaration
of neutrality, withdrawal of Egypt's offer to make the Suez base available
to the West, and a propaganda campaign designed to block Western mili-
tary agreements with other Arab states. Egypt would also reportedly
undertake "harassing action" against British troops in the canal zone and
impose an economic boycott against Britain.
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Comment: The military regime's frustra-
tion over its inability to obtain a Suez settlement on its terms or Ameri-
can economic aid has resulted in increasing discussion of neutralism.
Egypt's leaders may feel forced to turn to such a policy if economic aid
is not received. The present publicity that Egypt is giving to the possi-
bility of its future neutrality, however, still probably reflects in part a
desire to influence US action.
According to a 14 December report from
London, British officials have indicated that Britain intends to maintain
its position on the questions of uniforms and availability of the base.
WESTERN EUROPE
7. Adenauer fears proposed Berlin conference may delay EDC action:
In a discussion with Secretary Dulles on
13 December of the factors delaying French
EDC ratification, Chancellor Adenauer ex-
pressed confidence that the Saar problem
would be solved. He expressed concern, however, over the opportunity
for delay presented by the projected four-power meeting in Berlin, fear-
ing that the French would succumb to Soviet stalling tactics.
Adenauer added that if the meeting could be
terminated in four to five weeks, the West would "be well out of it."
If the meeting should result in an impasse, he said, it would be very
important that public opinion, especially in France, should see the
failure as the result of Soviet obstructionism.
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