CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A001700110001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Sequence Number: 1
• Content Type: REPORT

a,F
CURRENT INTELLIGENCE BULLETIN
NO CHANGE IN CLASS
CI DECLASSIFIED
CLASS. CHANGED TO, TS S C
NEXT REVIEW DATE: '20 L Q
AUTH: HR 70-2
DATE: N qO REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. review completed
TOP SECRET
TOP SECRET
31 August 1954
Copy Noe
80
Approved For Release 2008/07/17: CIA-RDP79T00975AO01700110001-0
 Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
Nw~ Ir
SUMMARY
FAR EAST
1. Chinese Communist leaders encourage Anglo-American split (page 3).
NEAR EAST - AFRICA
Israeli purchase of tanks from Philippines reported (page 3).
WESTERN EUROPE
3. Adenauer opposes sovereignty without defense arrangement (page 4).
LATIN AMERICA
4. Stability of Guatemalan government threatened (page 5).
31 Aug 54 CURRENT INTELLIGENCE BULLETIN Page 2
25X1
Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
 Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
1. Chinese Communist leaders encourage Anglo-American split:
British Labor Party delegates were told in
their unprecedented three-hour interview
with Mao Tse-tung on 24 August that the
United Kingdom should dissociate itself
from American policies in both Europe and the Far East, according
to the British charge in Peiping. Mao suggested that Britain would
have to decide between friendship with the United States and friend-
ship with China. He appeared to be in good health and mentally
vigorous.
In conversations with members of the
Labor Party delegation at the British's charge's dinner party,
Premier Chou En-lai said it was very necessary to increase friend-
ship between China and the United Kingdom and for this purpose
Peiping would soon propose sending a charge to London, through
whom the Chinese hoped to keep contact with their "Labor Party
friends."
Comment: Peiping has been attempting to
exploit the Labor visit both o in uence British policy in the hope of
further isolating the United States on Asian issues, and to give the
impression of widening divergences between London and Washington.
NEAR EAST - AFRICA
2.o Israeli purchase of tanks from Philippines reported:
Israel has contracted to buy sixty-nine 32-ton 25X1
war surplus tanks from the Philippines
31 Aug 54
CURRENT INTELLIGENCE BULLETIN
Page 3
25X1
Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
 Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
25X1
the tanks are classed as scrap the Israeli government
has had them inspected and plans to recondition them,
WESTERN EUROPE
3. Adenauer opposes sovereignty without defense arrangement:
According to West German deputy foreign
minister Hallstein, Chancellor Adenauer
is firmly opposed to implementation of the
Allied-West German contractual agree-
ments Without or some alternative arrangement providing for
a West German defense contribution,
Comment: The right to rearm is seen
by Adenauer as an essentia c aracteristic of sovereignty. His
position with reference to the contractual agreements, which grant
Bonn virtual sovereignty, is evidently in response to suggestions by
Premier Mendes-France that West Germany be granted sovereignty
without delay except in military matters. Such a step would leave
the Allied Military Security Board in control of German arms produc-
tion until the defense issue is resolved.
Anglo-American plans have envisaged sov-
ereignty for West Germany soon after a refusal by France to accept
EDC, reserving the question of German rearmament. Adenauer
apparently believes that such a formula would enable France to block
indefinitely the German right to rearm.
31 Aug 54 CURRENT INTELLIGENCE BULLETIN Page 4
Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
 Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0
LATIN AMERICA
4. Stability of Guatemalan government threatened:
A widening rift between Guatemalan junta
president Castillo Armas and hitherto
loyal adherents was revealed in a conver-
sation Ambassador Peurifoy had on
26 August with Juan Cordova Cerna, a
leader of Castillo's liberation :movement.
Cordova, who has been conferring with
anti-Communist leaders and army officers, stated that he found a
complete lack of confidence in the government. Reporting the
existence of another army plot, he said he considered that drastic,
sudden measures should be taken to clean out the army. The junta,
he added, should then be reorganized to replace Colonel Monzon and
Major Oliva with two civilians who could "dominate" Castillo.
Although Castillo has rejected the sugges-
tion of immediate action against the army, Cordova is gaining
military backing and said he plans to force Castillo to accept his
guidance or face ouster.
Comment: Castillo, not yet certain of
firm army support, apparently still feels dependent on Colonel
Monzon, whose loyalty, though suspect, was instrumental in main-
taining the junta during the revolutionary attempt on 2 August. Mean-
while, the various anti-Communist elements remain divided, and
Castillo has evidently made no effective contact with the non-Communist
liberals who supported the Arbenz government. His popularity is
threatened by indiscriminate dismissals and the growing disillusion-
ment of anti-Communist labor leaders.
31 Aug 54 CURRENT INTELLIGENCE BULLETIN Page 5
25X1
Approved For Release 2008/07/17: CIA-RDP79T00975A001700110001-0