CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000300020001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: November 5, 2003
• Sequence Number: 1
• Publication Date: June 29, 1951
• Content Type: REPORT

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29.June 1951
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Copy No. C_ -'
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
L I DECLASSIFIF0
NLASS, CHANGED TO:
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NEXT REVIEWVIEwDATE:
AUTH: HR
DATE' REVIEWER:
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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State Department review completed
TOP SECRET
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S U M MAR Y
01-5
GENERAL
Yugoslav UN Delegate views Malik proposal as indication of
Soviet readiness for Korean settlement (page $),
PAR EAST
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Status of foreign oil companies In Indonesia discussed (page 4)
NEAR EAST
Iran allegedly aiming sabotage flaw at Communists?
WESTERN EUROPE
Jr
Berlin trade agreements bogged down (page 6)n
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GENERAL
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1. Y
el.~~ate views Malik prol2gsal as indication of bovi
readiness for Korean settlement,.
In a 27 June conversation with the US dele-
gation, Yugoslav UN Delegate rler
declared that Soviet readiness for a settle-
ment in Korea was indicated by the fact
that the Malik proposal had been made at all,
and by subsequent Soviet press treatment accorded the proposal.
Bebler warned, however, that any Korean settlement would only be
a move to relieve the Kremlin from an awkward position in Korea and
to free the USSR for further operations against the West in another
area such as Iran or Indochina. Bebler did not think Yugoslavia had
been chosen as the next tart of Soviet aggression,
Comment As reported by the authoritative
Yugosla ewspaper Borba, th~Oe Ministry suggests the possi-
bility that 'Malik? s offer is a "peace" propaganda maneuver intended
to justify further Soviet participation in the Korean conflict. The
Foreign Ministry consider however, that if the proposal is based on
a sincere desire to stop the Korean war, it affords proof of the
failure of the entire policy supported and. organnized. by the Soviet
Government during the past year.
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Status offorei.gu oil comnannies in Indonesia discuss
paanxes, each discussion has focused on
the means of increasing the govermneht's income from oil oiler ?
Although the Iranian oil controversy has
provoked much discussion in Indonesia
regarding the status of foreign aril com-
s rather than on nationalization itself. To this end, the
'Sconomic Minister reportedly has agreed to a parliamentary pro
p?sal that a national, committee be formed to examine all matters
affecting oil operations in Indonesia and to reconsider present
mining ,awso The C"ommittee will reportedly consider.- (a) a
requirement that oil companies be domiciled in Indonesia .so that
they will subject to additional taxation, (b) the appointment of
Indonesians as managing directors, and (c) a very substantial
increase in exploration and. exploitation lease rates. The major
Indonesian dissatisfaction with existing contracts, however,
centers on provisions exempting oil companies from foreign
exchange regulations.
Comment o Although the Communist
Party and its affiliated organizations will continue to urge
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nationalization of the oil dustry in Indonesia -- which is com-
pletely foreign controlled m? there is little likelihood that the
present government will adopt such a policy.
NEAR EAST
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4,a In allegedly aiming sabotage law at Communniets?
pointed out further that the law had not been passed. Ambassador
Grady says other Iranians have made statements along similar
lines, and sees evidence of a more conciliatory attitude on the part
of Mossadeq and his group.
The Iranian Foreign Minister has told the
US Ambassador that the contemplated oil
sabotage law is aimed at Communn sts, not
at the Anglo- Irrania.nn Oil Company He
Comment., Since Abadan refinery manager
Drake has already been publicly accused of sabotage by a member of
the Iranian commission taking over the oil installations, it seems
unlikely that the sabotage law is being contemplated solely as a
damper for CommunOt a6tivities, Furthermore, whatever the
prig l motives may have been, the Iranians could always use ft
against Anngiom4ran lan Oil Company employees i they so desired.
While the Iranian Prime Minister and his followers may
to fear the consequences of their recent actions, there are f ;w
concrete indications that this fear is being translated Into a more
conciliatory attitude. Even if Iran should modify or -withdraw Its.
anti=sabotage law, such action would hardly allay British cusp i?n
The Prime Minister?s message of 28 June
to President Truman restates at lennghhn. the Iranian position and
makes a- bid for US support. The message does not, however,
show any sign that Iran is willing tt modify its demands.
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WESTERN EUROPE
Berlin trade aueements bog eddown.-
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Soviet and Western experts meet on 5 July to discuss measures for
preventing illegal trade and for ensuring the no ,flow of BerlitFs
legal. trade. The letter would express the hope that by that date
Soviet authorities will have approved all outstanding West Berlin
exp t permits, of which six thousand are now backlogged.
Meanwhile, according to the US High
Commissioner, the interzonal trade negotiations became deadlocked
The Western deputy commandants in Berlin
have requested the approval of the Allied
High Commission to write the chief Soviet
representative in Berlin pro sung that
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on 25 June when the East German representative stated that he would
refuse to tie the agreement on interzonal trade to that on the movement
of goods out of West Berlin. The commandants advise that the, 'West
should be prepared to impose effective countermeasures, if they are
required.
Co m to When the USSR relaxed As
restrictions on West Berlin exports on8 June, it apparently did so
In the hope of coming to an early agreement on interzonal trade. Now
that the trade talks suspended by.the West during the height of the Ber-
lin dispute have been reopened, the USSR appears to be less ready to
allow Berlin exports to flow freely.
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