CURRENT INTELLIGENCE BULLETIN - 1955/01/15
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02989046
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Publication Date:
January 15, 1955
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15 January 1955
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Copy No. 79
CURRENT INTELLIGENCE BULLETIN
QOCUMEN I NO. _66
NO CHANGE IN CLASS. F
1:1 DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE� e. 0/0
AUTH: HR 70-2
DATE: e;t7h_e(6_0__ REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
TO-12-9ECRET
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SUMMARY
GENERAL
1. USSR attempting to use POW issue to undermine Adenauer (page 3).
2. Soviet harassments in Austria expected to increase (page 3).
3. Comment on British attitude toward Afro-Asian conference (page 4).
S
SOVIET UNION
4. USSR offers to "report" on its atomic power station (page 5).
FAR EAST
. North Korean units may replace Chinese on front line (page 6).
6. Chinese Nationalist commander on Taehens "resigned to defeat"
(page 6).
7. Chinese Communists reported resurfacing airfields in Fukien
Province (page 7)0
WESTERN EUROPE
8. Luxembourg fearful of French-West German economic agreement
(page 9). �
9. Soviet ambassador reported supporting Togliatti against party
rivals (page 9).
LATIN AMERICA
p. Costa Rican rebels appear to be slowing down (page 10).
Jr', Comment on oubtc of Panamanian President Guizado (page 11).
* * * *
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GENERAL
1. USSR attempting to use POW issue to undermine Adenauer:
The Soviet Union is reported to have of-
fered to repatriate 40,000 West German
prisoners of war if negotiations could be
undertaken, on the German side, by mem-
bers of the Social Democratic Party and the Free Democratic Par-
ty. The offer was made through a West German businessman who
had raised the question with Soviet officials at East-West trade
talks last year. Chancellor Adenauer has been informed through
Free Democratic Party leaders.
The Soviet officials emphasized that
Moscow wanted Adenauer's opposition to receive credit for the
negotiations and flatly rejected talks with representatives of his
Christian Democratic Party. HICOG believes Moscow is hoping
to use the POW issue to delay ratification of the Paris agreements
as well as to sow dissension among the political parties by enhanc-
ing Socialist prestige at the expense of the Christian Democrats.
Comment: This Soviet attempt to under-
mine the Adenauer government is not likely to be successful. The
West Germans are likely to give much more credit to the individuals
involved in the negotiations than to the party. Adenauer would run
the risk of serious public disapproval, however, if he should attempt
to interfere with such an opportunity to repatriate imprisoned Ger-
mans.
Moscow for years has insisted it held only
13,500 POW's and has recently said a majority of these were returned
in 1953. The 40,000 figure--if accurate�may include many civilians.
German officials believe it is impossible to estimate the number still
held,
2. Soviet harassments in Austria expected to increase:
15 Jan 55
The American embassy in Vienna expects
increasing Soviet harassment of the Austrians.
It believes, however, that the USSR is un-
likely to take actual moves toward partition,
CURRENT INTELLIGENCE BULLETIN Page 3
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even immediately after ratification of the Paris accords, because
the resulting international crisis would conflict with over-all
Soviet policy. The Soviet Union appears to be laying the ground-
work for dramatic moves which would give the impression of an
intention to partition Austria if the accords are ratified.
To this end, Soviet authorities have set up
facilities for check points around Vienna, and may reimpose the
zonal border controls and check points abandoned in June 1953, even
to the extent of interfering with freight traffic. They may also in-
crease their interference with the Austrian police.
The embassy expects the Soviet propaganda
campaign to reach a new pitch of intensity in coming weeks, further
emphasizing the Soviet threat first made at the Allied Council meet-
ing on 21 December concerning the "danger to the integrity of the
Austrian state" from American actions in western Austria. Commu-
nist propaganda on the threat to Austrian unity has been highlighted
by a Communist-front call for a congress in Vienna on 13 March
dedicated to Austrian "unity and independence."
3. Comment on British attitude toward Afro-Asian conference:
15 Jan 55
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These views on the Afro-Asian conference
are in accord with the British campaign to rebuild good will on the
Asian and African continents. Efforts along these lines, which will
be aimed primarily at Nehru, will be continued at the Common-
wealth conference later this month, as well as on Eden's extensive
tour, after the Manila pact conference in Bangkok in February, of
certain Southeast Asian and other capitals where British influence
is strong.
SOVIET UNION
4. USSR offers to "report" on its atomic power station:
The USSR has offered to submit a "re-
port" to the forthcoming world confer-
ence on peaceful uses of atomic energy
On the knowledge it has gained from the atomic power station it
put into operation last summer, according to a TASS announce-
ment. The Soviet representative, D. V. Skobeltsyn, has been
Instructed to present a proposal for the inclusion of this item on
the agenda of the conference.
Comment: Moscow may hope through
this announcement to regain the propaganda initiative it lost last
fall when the UN supported the American "atoms-for-peace" plan.
The conference of scientists which will
discuss peaceful uses of atomic energy is scheduled to meet in
August. Moscow's move suggests that the Soviet delegation may
introduce its own plan for "atoms for peace," which--unlike the
US plan�would be subject to the Security Council veto and would
include the participation of Communist China.
D. V. Skobeltsyn, scheduled to arrive
in the United States on 15 January to prepare for the August con-
ference, is a prominent atomic physicist and served as adviser
to the Soviet delegation to the UN Commission on Atomic Energy
from 1945 to 1949.
15 Jan 55
CURRENT INTELLIGENCE BULLETIN Page 5
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FAR EAST
5. North Korean units may replace Chinese on front line:
North Korean units may be preparing
to relieve the three Chinese Commu-
nist armies which remain along the
demilitarized zone in Korea.
Replacement of front-line Chinese
troops with Koreans would be consistent with the current North
Korean political offensive which insists that peaceful unification
can be achieved by negotiations among Koreans themselves.
The North Korean army could assume
responsibility for the entire front by considerably weakening its
reserve and coastal security positions.
6. Chinese Nationalist commander on Tachens "resigned to defeat":
Nationalist naval commander in the area had refused to obey sev-
eral orders, with the result that casualties and losses of materiel,
including urgently needed ammunition, were greatly increased.
Comment: General Liu, who is well
regarded by American military advisers, has usually accepted
reverses in good spirit.
:15 Jan 55
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disgust with rear area inefficiency and anger over repeated insub-
ordination from Nationalist navy commanders�could be quickly
communicated to his entire command.
Meanwhile, American military observers
on Formosa have a report that a concentration of Communist land-
ing craft and other vessels was sighted on 12 January near Communist-
held islands north of the Tachens (see map, p. 8). The lift-capacity
of these vessels is estimated at about 23,000 troops, whereas Na-
tionalist forces in the Tachens number about 10,000 regulars and
2,700 guerrillas.
A successful Chinese Communist inva-
sion of the Tachens is possible at any time.
7. Chinese Communists reported resurfacing airfields in Fukien
Province:
as
many as six airfields may be under repair
in the coastal areas directly opposite
Formosa (see map, p.8).
Ka,ochi airfield on Amoy Island is being
resurfaced and the field at Machiang, 12 miles northeast of Amoy,
appears to be under repair. Shell craters in the runway of the
field at Swatow, just south of the Kwangtung-Fukien border, are
being filled and there is some evidence that work on three other
fields in Fukien�at Chienou, Changting and Foochow--may be
about to begin.
� Comment: This is the first report of
recent improvements at any of the Fukien fields. Runways of
these fields, except the one at Swatow, are already long enough
for jet fighters and jet light bombers, but improved surfaces are
necessary before jets can be based at these sites for prolonged
operations.
15 Jan 55
CURRENT INTELLIGENCE BULLETIN Page 7
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KEELUNG
PRESENTATIONS DIVISION
14 JANUARY 1955
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WESTERN EUROPE
8. Luxembourg fearful of French-West German economic agreement:
Luxembourg foreign minister Bech fears
that West German chancellor Adenauer
and French premier Mendes-France may
reach an economic agreement which would
have adverse effects on the Benelux countries, according to the
Belgian minister in Luxembourg. Bech has repeatedly urged Bel-
gian foreign minister Spaak to discourage the Germans from mak-
ing final agreements with the French without consulting the Bene-
lux countries.
The Belgian diplomat said that West
Germany had asked his country, Luxembourg, and presumably
the Netherlands to make a demarche to France to permit Benelux
representatives to sit in on the final economic discussions result-
ing from the 14 January meeting of Adenauer and Mendes-France.
Comment Belgian industrial circles fear
adverse effects from the French-German economic collaboration
which is already, evident in the metallurgical field. They also sus-
pect that the French proposal for an arms production pool is aimed
at establishing armament industries in the south of France and in
North Africa to the exclusion of the Benelux countries.
The Netherlands has likewise expressed
strong opposition to the French arms pool proposal, negotiations
on which are scheduled to start on 17 January.
9. Soviet ambassador reported supporting Togliatti against party
rivals:
15 Jan 55
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Comment: Togliatti has for some time
been reported under attack by militants, including Longo, for his
conciliatory tactics. However, Longo allegedly delivered a speech
at the CPI conference supporting the present line of the party. It
has been rumored that party vice secretary Secchia, who has been
reported absent from the Senate and party activities, would be
dropped from the party after the conference. According to the
latest press dispatches from Rome, however, Togliatti is retain-
ing Secchia for the time being.
The Communist parties of Western Europe
have in general been using conciliatory tactics as part of the united
front strategy of combating West German rearmament. The re-
ported instructions suggest that for the present the strategy will
not be changed, but that following ratification the possibility of a
change is being held open.
LATIN AMERICA
10. Costa Rican rebels appear to be slowing down:
A Costa Rican government patrol pene-
trated to withiT. 20 miles of the Nicara-
guan frontier on 13 January but was
unable to contact the rebel force which
had invaded the extreme northwest section of Costa Rica late on
12 January, The invading
force, part of which came by land and part by sea, is estimated
to number 550 men and reportedly has heavy ma,chiltie guns and
mortars.
15 Jan 55
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The government is reported to have
approximately 1,000 men of its Civil Guard in this sector, based
at Liberia about 40 miles from the border.
Costa
Rica believe that rebel planes have been operating from Nicaragua,
although the F-47's observed over Costa Rica on 12 January may
be based in Guatemala or Honduras.
Comment: The rebels appear to have
Lost the initiative upon which they probably depended for quick
victory. They seem to have attempted to emulate the successful
revolution last summer in Guatemala, where wide domestic un-
rest permitted a relatively few men to achieve victory.
In Costa Rica, however, the rebels'
psychological weapons are weakened by government jamming of
their clandestine radio and by their inability to use air bases in
Nicaragua without danger of detection by the Organization of
American States committee now in Costa Rica. Furthermore,
the Costa Rican armed forces are loyal and the people have been
angered by the "invasion" of their country.
The recapture by government forces of
the airstrip at Villa Quesada appears to have been a serious blow
to rebel plans. There is, however, an airport in the small area
under rebel control near the Nicaraguan border, on which rebel
planes are now reported to be based.
it Comment on ouster of Panamanian president Guizado:
Panamanian president Guizado was
ousted -early on 1-5 Jan4ary. He__11-iad been
implicated in the 2 January assassina-
tion of President Remon/
Guizado earlier in the day
was confined to his residence by the Na-
tional Guard, which announced that a
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solution to the murder was near. Also
arrested were Guizado's son, one of his
business associates, his minister of
agriculture and commerce, and many
followers of former president Arnulfo Arias.
Guizado's removal because of implica-
tion in the crime would not necessarily involve a break in the con-
stitutional order. Ricardo Arias, vice president and foreign min-
ister, would legally become president.
certain National Guard
officials distrusted Guizado because of his previous association
with ex-president Arnulfo Arias and would place Ricardo Arias,
whom they considered their friend, in the presidency should they
deem it necessary to oust the president.
Ricardo Arias, a member of one of
Panama's wealthiest and most influential families, has been con-
sidered friendly toward the United States. He has not distinguished
himself in politics, but is reportedly a capable administrator.
Colonel Saturnino Flores, second com-
mandant of the National Guard, is apparently assuming control of
the situation and is emerging as the "strong man" of Panama.
15 Jan 55
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