CURRENT INTELLIGENCE BULLETIN - 1953/05/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02901108
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: July 15, 2019
• Document Release Date: July 22, 2019
• Publication Date: May 12, 1953

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12 May 1953
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SECU INFORMATION
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SEC ITY INFORMA 1 ION
SUMMARY
GENERAL
1. France willing to resume trade talks with USSR (page 3).
SOVIET UNION
2.
3.3(h)(2)
WESTERN EUROPE
High Commissioner Conant warns of political effect of cutting aid
o Berlin (page 4).
\..,�,ea.1�.1French modify views on Austrian treaty (page 4).
5. France presses for US statement on nonintervention in North Africa
page 5).
i064,'AFranco reported ready to sign US-Spanish agreements (page 5).
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GENERAL
I. France willing to resume trade talks with USSR:
Comment: The French delegate to the
Geneva talks informed American officials that a tentative agreement
was reached whereby France would build cargo ships in exchange for
Soviet grains. French business circles have recently shown renewed
interest in an expansion of trade with the USSR to give a boost to
lagging French industry and to help solve France's foreign exchange
difficulties.
Trade talks between the two countries over
a proposed exchange of ships for wheat broke down last summer.
SOVIET UNION
2.
3.3(h)(2)
3.3
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RITY INFORMATION
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WESTERN EUROPE
3. High Commissioner Conant warns of political effect of cutting aid to
Berlin:
3.3(h)(2)
Any drastic reduction in American financial 3.3(h)(2)
aid to Berlin for fiscal year 1954 could have
serious political and economic consequences,
according to US High Commissioner Conant.
He believes that a termination of financial aid would be interpreted as
a decline in American interest.
Conant considers it contradictory to assure
a physical position in Berlin by stockpiling and at the same time to
risk weakening the moral strength of Berliners by the elimination of
fiscal aid, on which their "remarkable" morale greatly depends.
4. French modify views on Austrian treaty:
The French representative to tripartite 3.3(h)(2)
discussions on the Austrian treaty question
has been instructed to agree to reconsidera-
tion of Article 35 by the Western powers,
but only if the Russians have previously reopened other articles of
the treaty. American Embassy officials in Paris expect that con-
tinued French pressure for acceptance of the article as it now stands
must be anticipated, even though the French position will now permit
the West to propose a four-power conference for 27 May.
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Comment: Continued French opposition
to revision of Article 35 would constitute a real danger to Western
unity in four-power negotiations only in the unlikely event that no
other obstacles to a conclusion of the treaty are created by the
Russians. The French, however, have feared that the question of
Article 35 might be raised in the initial stages of negotiations by
the Soviet Union in the expectation of further dividing the Western
powers and of shifting blame to them for delaying the treaty.
5. France presses for US statement on nonintervention in North Africa:
The French Foreign Ministry has again
approached the American Embassy in Paris
for a statement from Washington opposing
intervention by a third party in North Africa.
The French Government considers such a statement necessary to
answer the criticism of French extremists seeking to embarrass it
over the Moroccan base agreement.
Comment: Since early 1951 when American
bases were established in Morocco, France has wanted an American
statement of confidence in its North African policy.
The Foreign Ministry indicated last month
that the reply to this request would have an important bearing on the
French attitude toward the American requests for a privileged posi-
tion for American personnel and equipment in Morocco.
6. Franco reported ready to sign US-Spanish agreements:
3.3(h)(2)
General Franco 3.3(h)(2)
would sign the US-Spanish base agree-
ments when Ambassador Dunn returned to
Madrid,
Franco's primary concern during tne negotiations was repo' LeuLy uie
number of American troops to be stationed in Spain.
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Comment The question of the number and
function of American troops in Spain was settled early in the negotia-
tions. The biggest obstacle to the agreements until last month was
Spain's insistence on large-scale military assistance while the bases
were under construction.
The Spaniards now concede that American
military aid, while related to their minimum defense needs, must
nevertheless be conditioned by the limitations of the United States'
foreign aid budget and prior NATO commitments.
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