CURRENT INTELLIGENCE BULLETIN - 1954/08/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02020913
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: August 20, 2019
• Document Release Date: August 30, 2019
• Publication Date: August 1, 1954

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1 August 1954
Copy No.
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. ft:5-
NO CHANGE IN CLASS.
1.1 DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE: 2o/
AUTH: HR 70-2
DATE:..//8O I=IEVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
7073--SEGREZ
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SUMMARY
FAR EAST
1.
2.
Japan proposes defense budget cuts (page 3).
3. Peiping offers to buy 5-0,600 ions of Burmese rice (page 4
SOUTHEAST ASIA
4. Viet Minh reported planning to press for early elections in
Vietnam (page 4).
LATIN AMERICA
5. Pro-Prio elements in Cuba reported ready to oust Batista
(page 5).
1 Aug 54
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FAR EAST
1. Japan proposes defense budget cuts:
2.
Japan's precarious economic situation
has forced a 10 percent cut in the 1954
defense budget and will probably necessi-
tate further reduction in military expend-
ures according to Defense Agency Vice-director Masuhara.
He also told a high ranldng US Army officer on 21 July that unless
the United States turned over to Japan 17 combat naval vessels, fur-
ther cuts would be made in funds, for naval personnel.
Ambassador Allison views the defense cut
as a violation of the spirit of defense commitments made to him by
Foreign Minister Okazaki. Allison is also disturbed by a series of
recent un-co -ordinated and even contradictory Japanese approaches
for Americah aid which to him indicate the unwillingness of the
present weak government to impose a realistic austerity program.
1 Aug 54 CURRENT INTELLIGENCE BULLETIN
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3. Peiping offers to buy 50,000 tons of Burmese rice:
Peiping has expressed interest in buying
50,000 tons of rice from Burma during
1954,
that this quantity Wert sub-
sequently be increased.
Comment: This appears to be the first
transaction under the Sino-Burmese trade agreement signed last
November.
China, which under the Communist regime
has become a 1..12,0r exporter of rice, is probably buying for resale
elsewhere in the Communist bloc. It already ships 200,000 tons a
year to the USSR.
Such a rice purchase may have similar
motivations as Chinese rubber buying activities in Asia. Much of
the rubber also goes to the USSR. Transactions of this type permit
Peiping to take the lead in furthering both Communist economic
relations and political objectives in Asia.
SOUTHEAST ASIA
Viet Minh reported planning to press for early elections in Vietnam:
According to Jean Cousseau, a French
political expert on Indochina, the Viet Minh
during the past four months has sent 800-
900 of its most experienced political agents
1 Aug 54
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into southern Vietnam to prepare the way for early elections.
He predicted the Viet Minh would seek to have national elections
within the next few months and expressed the belief that a care-
fully phrased rn. appeal for sudh elections would not be easy to
turn down.
Cousseau further reported that villagers
throughout Vietnam were already being required to 'inscribe their names
on one of two political registers--one in support of Ho Chi Minh and
the other in support of Bao Dai. In view of Ho's greater popularity
and the de facto Viet Minh control of some areas of southern Viet-
nam, Cousseau said that the majority were signing up for Ho.
Comment: The Geneva agreement provides
for national elections in Vietnalicio take place in July 1956. During
the negotiations, however, the Wet Minh sought elections within six
months and may now be attempting to speed up the process in order
to exploit its present psychological and military advantages.
LATIN AMERICA
5. Pro-Prio elements in Cuba reported ready to oust Batista:
Fifty thousand revolutionists directed by
300 former military men are now equipped
with small arms and ready for an attempt
to oust the Batista regime and restore the
former Prio government,
Prio has spent $4,600,000 purchasing arms
and, in order to recoup his expenditures, he is now willing to give
full support to other elements working toward Batista% overthrow.
Comment: Should an attempt be made, it
will probably take place before the scheduled 1 November elections.
Prio is known to have spent sizeable sums for arms in the United
States and elsewhere, and,
he will probably not change his plans after two years of prepara-
1 Aug 54 CURRENT INTELLIGENCE BULLETIN
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The fact that Batista granted a safe
conduct out of Cuba recently to Sanchez Arango, leader of the
Prio forces, indicates his lack of concern about any attempt
against him by pro-Prio elements.
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