CURRENT INTELLIGENCE BULLETIN - 1955/06/25

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03448317
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: June 25, 1955

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25 June 1955
Copy No. 99
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. NO CHANGE CHANGE IN CLASS.
L I DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: .4CW/
AUTH: H11,70-2
DATE: 120/15_0 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1.
2. Soviet diplomat says USSR ready to accept free German elec-
tions (page 3).
FAR EAST
3.
SOUTHEAST ASIA
4. Burmese leader fears economic pressure may lead to depend-
ence on Sino-Soviet bloc (page 5).
NEAR EAST - AFRICA
5. Cyprus government planning for "full state of emergency"
(page 6).
LATIN AMERICA
6. Argentine junta reported seeking to conceal its power (page 7).
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GENERAL
2.
Soviet diplomat says USSR ready to accept free German elections:
man after-dinner conversation which took
place on 22 June in the presence of a num-
ber of French guests, Soviet ambassador
25 June 55
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Vinogradov in Paris told Ambassador Dillon that the USSR was
now prepared to accept free all-German elections subject to
strict international control, provided only that foreign troops
were withdrawn prior to the vote.
Vinogradov also said that it would be
very difficult to reach any agreement on disarmament controls,
since any really effective inspection might involve an unaccept-
able invasion of national "privacy rights." He said that, as an
alternative, an agreement that no nation would make use of nu-
clear weapons would be satisfactory to the Soviet Union, which
would be willing on this basis to move ahead with conventional
disarmament along the lines of the 10 May Soviet proposaL
Comment: Vinogradov's statement may
indicate that the USSR has decided to take the calculated risk of
making a proposal for free all-German elections, attaching con-
ditions likely to cause the West to reject it. The reference to
troop withdrawal as the only condition for free elections does
not mean that the USSR has abandoned its insistence on a neu-
tralized Germany, which still remains a Soviet prerequisite to
unificatiop. The ambassador's statement may be intended only
to tebt Western reaction to a package offer of neutrality and
free elections and to encourage the hopes of neutralists that such
a proposal will be made.
Should such a package offer actually be
made, West German public opinion would very likely support the
Adenauer government's opposition to this unity formula. Few
West Germans would advocate the withdrawal of Allied forces
from their country before a German army is in being. In the
last two months press opinion reflects growing public awareness
that neutrality is too high a price for German unity under present
conditions.
Vinogradov's statement, as reported,
reversed the sequence of disarmament measures as outlined by
the 10 May Soviet proposal, which calls for measures designed
to prohibit nuclear weapons to follow an agreement on armed
force strength and conventional weapons. His remarks on con-
trols again reflect the USSR's unwillingness to accept a far-
reaching system such as that advocated by the West.
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FAR EAST
SOUTHEAST ASIA
4. Burmese leader fears economic pressure may lead to dependence
on Sino-Soviet bloc:
25 June 55
Acting Foreign Minister Kyaw Nyein told
Senator Dirksen on 22 June that Burmat
wooing of Communist China with barter
CURRENT INTELLIGENCE BULLETIN
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agreements, cultural exchanges and requests for technical as-
sistance was "leading to consequences which may be fatal." He
said he feared Burma might be "completely sucked into the
Soviet Orbit" within five years.
The fundamental cause of Burma's in-
creasing dependence on the Communist world, he said, was its
extensive loss of foreign exchange over the past two years as a
result of lowered rice prices and loss of rice markets. The
minister suggested that the United States could help Burma by
locating markets for Burmese rice and withholding American
rice from Asian markets.
Comment: Burma's rice export prob-
lem is serious, and by contracting for nearly a third of its sur-
plus, the Orbit has obtained important leverage over its internal
economy.
Kyaw Nyein probably exaggerated the
gravity of the situation in order to prepare the way for Premier
Nu's anticipated request for assistance when he visits Washington
next week.
N.EAR EAST - AFRICA
5. Cyprus government planning for "full state of emergency":
The Cyprus government believes that
order can be restored on the island
only by immediate forceful action, ac-
cording to the American consul in Nicosia.
It has therefore recommended to London
a u s e o emergency be declared and that terrorism be
halted by whatever steps are necessary.
The local population is increasingly
apprehensive that the violence will spread, and the government
believes that firm action would be welcomed by "a large number"
of Cypriots. There are also increasing possibilities of serious
trouble between the Greek and Turkish Cypriots.
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The Cyprus government has indirectly
approached Archbishop Makarios, leader of the movement seek-
ing union of Cyprus with Greece, who is reported to have said he
would support a liberalconstitutional proposal with recognition of
the right to eventual self-determination for Cyprus.
Comment: Acceptance by Makarios of
such a constitutional prop-al-a-friar& be a step toward settlement
of the Cyprus problem. The situation has deteriorated so far,
however, that Greek public and official opinion, as well as Greek
Cypriot opinion, may tolerate no less than immediate self-
determination, which would result in union with Greece.
Continuation of the Cyprus issue at its
present peak seriously damages Greek-British relations, creates
strong Greek-Turkish antagonism, impairs the effectiveness of
the Balkan pact, and is an irritant in Greek-American relations.
LATIN AMERICA
6. Argentine junta reported seeking to conceal its power:
President Peron is still acting un-
der the "guidance" of a military junta,
although the army, in an effort to placate both military and civil-
ian factions, is making every effort to avoid official disclosure
that a junta is in power.
The junta is reported to include Minister
of the Army Lucero, Army Commander Jose Sosa Molina, Minis-
ter of National Defense Humberto Sosa Molina, Army Chief of
Staff Carlos Wirth, and six others unnamed.
The junta is said to fear that the imme-
diate removal of Peron might lead to civil war, and to have in-
structed him to govern his words and actions in a manner to avoid
disturbances. Specifically, Peron has been told to order the Gen-
eral Confederation of Labor to drop the church fight and limit its
activities to labor matters.
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has lost prestige and followers but is regarded as a more able
political strategist than Lucero.
Comment: The previously reported
junta is evidently being enlarged in order to include the most
powerful military commanders and exert better control over a
still tense situation. In addition to its difficulties in Buenos
Aires, the junta still faces the problem of a settlement with the
rebel naval forces.
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