CURRENT INTELLIGENCE BULLETIN - 1955/07/31

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03436119
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: July 31, 1955

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3.5(c)
3.3(h)(2)
31 July 1955
Copy No. 99
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
ri DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE: 2010
AUTH: HR 70-2
DATE: /049_0_ REVIEWER:
Office of Current Intelligence
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C03436119
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
1. Comment on Chou En-lai's speech on foreign affairs (page 3).
SOUTHEAST ASIA
2. Vietnamese believe French official implicated in Saigon bomb-
ings (page 4).
3. Premier Nu opposed Burmese cabinet on US aid issue (page 5).
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FAR EAST
1. Comment on Chou En-lai's speech on foreign affairs:
Chou En-lai's 30 July speech on foreign
affairs before the National People's Con-
gress supports previous indications that
the Chinese Communists at Geneva will attempt to set up negoti-
ations with the United States on larger issues and that Moscow and
Peiping are holding in reserve a proposal for an international con-
ference on Far Eastern questions,
Chou said explicitly that Peiping will try
to th Geneva talks Vave,4e way" for further negotiations
with Washington. Chou retterated that the basic topic for such ne-
gotiations should be the American "occupation" of Formosa and
American "interference with the liberation" of Nationalist-held off-
shore islands* He identified as related issues the "extremely un-
just policy of blockade and embargo" and American "air intrusions,
war maneuvers, and subversive activities."
Chou reaffirmed the long-standing Chinese
Communist position that the United States should withdraw its armed
forces from the China area, that there is no need for a cease-fire,
and that the "liberation" of Formosa is an "internal" affair to be ar-
ranged if possible through negotiations between Peiping and the
"local authorities" on Formosa.
Chou's generally conciliatory speech in-
dicates that the Chinese Communists in the Geneva talks will avoid
making proposals obviously unacceptable to the United States, such
as the exchange of thousands of anti-Communist _Chinese students
in the United States for the few Americans detained in China. Chou
suggested that the United States and Communist China each formally
entrust a third party to look after the interests of its nationals, prima-
rily their repatriation.
Resuming the line the Chinese Communists
followed just prior to the summit talks, Chou stated that "we support
the proposal" of various Asian leaders for an international conference
on Far Eastern issues. In addition to the Formosa problem, "the
most tense" in the Far East, Chou again identified the outstanding
31 July 55 CURRENT INTELLIGENCE BULLETIN Page 3
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issues as the "threat" to the Geneva agreements on Indochina and
the failure to achieve "peaceful unification" of Korea.
Chou for the first time explicitly stated
that Peiping desires "a pact of collective peace" among Pacific
powers, including the United States, "to replace antagonistic mili-
tary blocs...
SOUTHEAST ASIA
2. Vietnamese believe French official implicated in Saigon bombings:
South Vietnam government officials are
convinced that the French Deuxieme Bu-
reau, under Colonel Savanni, was responsi-
ble for the 22 and 24 July bomb attacks on
Saigon telephone and power installations, as well as the rerent gre-
nade and bomb incidents aimed at American
They believe that the French service, rather than
acting directly, has been conducting these terrorist acts through
other organizations, such as the Binh Xuyen.
A Paris official now in Saigon, who is
close to Premier Faure, has been informed of Savannits activity
and may act to effect his removal. The Diem government is taking
no steps against Savanni pending possible French action to remove
him.
Comment: There is other information to
suggest that this report may be true.
Such acts would be intended to aid the in-
terests of French elements favoring "coexistence" with the Viet Minh.
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3. Premier Nu opposed Burmese cabinet on US aid issue:
Premier U Nu
per-
sonally had decided against requesting
aid from the United States when he was
in Washington although the Burmese cabinet had asked him to
make appropriate overtures. U Nu also revealed that he was
solely responsible for Burma's decision in 1953 to request the
cessation of American aid.
Nu feels that at the present stgge of in-
ternational developments neither Ba Swe nor Kyaw Nyein--his
possible successors as premier--is capable of filling the post.
he now considers himself a world statesman,
equal to or surpassing Nehru as the voice of Asia.
Comment: U Nu apparently believes that
Burma's international position as a neutral is such that a loan from
the World Bank is preferable to direct aid from the United States.
U Nu's domestic position is believed to
be firm, certainly until the 1956 elections, despite indications of
deteriorating relations between him and other government leaders.
He will probably try to play an increasingly important role in the so-
lution of East-West problems.
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