CENTRAL INTELLIGENCE BULLETIN
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T
Document Page Count:
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December 21, 2016
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TOP SECRET j/
et /C- jo
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9 July 1955
7/
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Co
No
2'
py
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99
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. NO CHANGE IN CLASS.
C; DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE: -,2.UI-Q -
AUTH: HR/ 70-2
DATE: Uti/i-/-6a- REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. review
completed
OF, 0001Z
TOP SECRET
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SUMMARY
GENERAL
Comment on Sino-Viet Minh Communique of 7 July (page 3).
EASTERN EUROPE
4. Pre-Geneva optimism reported among Satellite populations (page 5).
WESTERN EUROPE
Early passage now seen for West German interim arms bill (page 6).
****
6. Indonesia
(page 7).
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GENERAL
Comment on. Sino-Viet Minh communique of 7 July:
The Sino-Viet Minh communique signed
in Peiping on 7 July on the eve of Ho Chi
Minh's departure for Moscow has the im-
t of demonstrating Sino-Viet Minh solidarity and may
serve to prepare the way for Soviet representations on Indochina
at the summit talks,
To ensure rapid restoration of the North
Vietnam economy and to improve the Viet Minh's prospects in any all-
Vietnam elections, Peiping has agreed, "without compensation," to
an aid program totaling 800, 000, 000 yuan, about $326,000,000 in the
recently revalued Chinese Communist currency. The figure men-
tioned probably covers some aid already given under an agreement
concluded last December.
Most of the 7 July communique is an offi-
cial reiteration of the main lines of recent Communist propaganda
on Indochina. This communique is likely to be followed by a Soviet-
Viet Minh communique from Moscow, before or during the summit
talks, making the same political points and announcing the value of
the Soviet aid program.
The USSR at Geneva may call for a reaf-
firmation of the 1954 Geneva agreements on Indochina, and is ex-
pected in any case to press for a five-, six- or ten-power confer-
ence to deal with Far Eastern questions.
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%W 1WMW
EASTERN EUROPE
Pre-Geneva optimism reported among Satellite populations:
Hopeful expectations for the outcome of
the Geneva conference are widespread in
the capitals of Eastern Europe., accord-
ing to American officials in the Satellites.
Initially set off by the signing of the Aus-
trian state treaty and the Soviet-Yugoslav
talks in Belgrade, wild rumors reflect
the popular excitement. Some of the
American observers point out that opti-
mism is so high that some disillusion-
ment is certain.
In Prague there is speculation that the
Geneva conference will result in a special
neutral status for Czechoslovakia along
Austrian lines. There is also speculation among the Polish popu-
lace that Poland and the other Satellites may be permitted to assume
a neutral status in return for a neutral Germany.
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The East German populace is believed to
be pinning its hopes for improved internal conditions and even
Germany's reunification on the summit meetings and the Adenauer
visit to Moscow.
In Rumania there are rumors that polit-
ical prisoners are being released, that the government base will
be broadened, and that free elections will be held.
WESTERN EUROPE
5. Early passage now seen for West German interim arms bill:
Chancellor AdenauerI interim arms bill
now stands a good chance of securing
Bundestag approval late next week, ac-
cording to American officials in Bonn.
to an earlier version of the bill have been
activity in various Bundestag committees.
Final parliamentary approval of the bill
may yet be deferred until October, however, since the Bundesrat
is threatening to pigeonhole it unless certain conditions are met.
Coalition leaders, who say the bill requires the express approval
of the upper house, are somewhat worried over the Bundesrat's
attitude because of the chancellor's highhanded methods in intro-
ducing the bill in that body.
Comment: If the bill clears the Bundestag
as expected, prospects aret Bundesrat will act on it before
adjournment, provided the government makes certain concessions
on states' rights and patronage. The Bundesrat is tentatively plan-
ning to adjourn on 22 July.
The bill involved provides for the recruit-
ment of 6,000 volunteers to get West German rearmament under way.
It is an interim measure designed to serve only until permanent arms
legislation is passed.
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. Indonesi
Comment: The All cabinet, apparently
at the insistence of President Sukarno, installed General Utoyo
as the new chief of staff on 27 June in spite of its knowledge of
the army's united opposition to Utoyo's appointment. The army
has refused to recognize Utoyo, and army-cabinet relations are
at a complete impasse.
Indonesia's leading opposition party, the
Masjumi--an anti-Communist, Moslem organization, is reported
prepared either to join a cabinet appointed by and responsible to
President Sukarno or to assume responsibility for forming a new
government should the Ali cabinet fall. The Masjumi secretary
general has stated that the elections now scheduled for 29 Septem-
ber would not be delayed by a change of government.
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