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otal U "11.t-1-
29 May 1951
Copy No. a
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. /5
NO CHANGE IN CLASS.
Li DECLASSIFIED
CLASS CI lAt';IGED TO: TS
NEXT REVIEW DATE: "WY
AUTH: HR 7 -16f
LATE4.. I REVIEWER: ,
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1.. Return of German scientists from the USSR (page 3).
FAR EAST
Two Manchurian airfields closed for repairs (page 3).
Main body of Kuomintang forces reported to be still
in Burma (page 4),
NEAR EAST
4. Nehru anxious to have US economic aid (page 5),
5. Syria concerned by Israel's failure to halt Lake INle
drainage project (page 5).
EASTERN EUROPE
Differences in Yugoslav Politburo over socialist develop.
ment (page 6).
WESTERN EUROPE
7. UK Conservative leaders press for strong action against
Egyptian Suez Canal restrictions (page 7),
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GENERAITJ
1. Return of German scientists from the USSR,.
Information dated November 1950
has been received which states
that the group of German scientists
working on atomic energy develop,
ment at Sukhumi will ndt leave the USSR for at least another
two and one half years.
Comment: This group of scientists
in the Sukhumi area is engaged in research on "peripheral"
problems connected with Soviet affifiiic energy development.
According to present Information German scientists have
been taken into the heart of the Sbviet atomic energy pro-
'
gram.
It is considered that the retention
of these German scientists in the USSR for two and a half
years more indicates that they are still making a contribu-
tion to the Soviet effort. It is probably also true that they
currently and for at least another year have information
which the USSR cannot at this time afford to make available
in as vulnerable a spot as the Soviet Zone of Germany.
FAR EAST
2. Two Manchurian airfields closed for repairs:
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Comment: The nature of the re-
ported repair or construction is not known, but.i.t.may be
necessitated by the intense air activity of the past six months
in Manchuria. Another possibility is that the Chinese are
expanding the capacity of certain airfields in Manchuria,
although Kungchuling was only recently expanded to handle
YAK-15 and YAK-17 jet fighters.
3. Main body Kuomintang forces reported to be still in Burma:
the -Main
body of Chinese. Nationalist troops
in Burma, about 4, 000 strong, has
not re-entered. Yunnan, :but has
been mewing., into_ the Northern Shan'
and Wa States of ;tirma� where it
may join forces with an additional 4, 000. anti-Communist
guerrillas that have been. collected by the local chieftains:
also reports that the KuomintaLrhg force is still in Burma,
doubts that these troops would risk destruction by mOving
Into Yunnan. The US Embassy in :Rangoon comments that
it is still possible that the Nationalist objective is Kengma,
Yunnan,
Comment: While the Chinese �
Nationalists in Burma are Apparently Ohl the move, there
Is no reliable evidence that 'they have made any serious
effort to. return to Chinese territory..
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T�.PSIECRET
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. Nehru anxious to have US,econornic aid:
Prime Minister Nehru of India
has told US Ambassador Henderson
that India needs US economic as-
sistance, that he (Nehru) is most
anxious to have it, and that he would be willing to accept
such aid on existing ECA terms and conditions, Nehru did
not object to any of these terms or conditions, but he did
attempt to assure himself that acceptance Of US aid would
not be taken by the US Gdvernment or by the Indian people
to imply that India there4y committed itself directly or in-
directly to follow the US lead in matters of domestic or
foreign policy.
. Syria concerned by Israel's failure to halt Lake Hule
drainage Project:
The Syrian Prime Minister has
asked US Charge Clark in Damascus
to inform the State Department that
Syria takes a serious view of
Israel's non-compliance with the
18 May. UN Security Council resolu-
tion, which provided that the Israeli
drainage work in the Lake Hule de,.
militarized zone be suspended. The Premier stated that
while Arab hopes were initially raised by the firm tgsT resolution
the newly-found Arab confidence in the UN was tast ebbing
away. Clark also reports that the concern of the Syrian
Army was indicated when the Syrian Army Chief of Staff
telephoned the Us Military Attache that Israeli tractors were
continuing the Lake Hule drainage project. According to
Clark, UN officials have reported that the Israelis recently
moved large calibre guns into their defensive zone and re-
fused to let observers inspect them,
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Comment: Initial Arab satisfaction
with the terms of the 18 May UN Security Council resolution
has been reflected in reports from several Arab capitals.
The possibility gists, however, that Arab confidence in the
UN will again be Shaken by Israel's failure to comply in
full with the Security Council measure and that criticism
of the US and UK will reappear in the Arab press.
EASTERN EUROPE
6. Differences in Yugoslav Politburo over socialist development:
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a difference of opinion has developed
In the Yugoslav Politburo over the
speed with which Yugoslavia should change its Soviet-based
pattern of political economy to a new indigenous type of
socialism. The more theoretical and idealistic group, led
by Djilas and Pijade, favors drastic decentralization and
the withering away of the bureaucratic state. The second
group, headed by Kardelj and Rankovic, favors a. slower
evolution of Yugoslav socialism. Tito, who has been in-
active in recent debates on this issue, is said to lean toward
the latter group. Ambassador Allen believes that a com-
promise solution will be reached, with Tito casting the de-
ciding vote whenever he decides to show his hand.
Comment: The evolution of a new
type of Yugoslav socialism, evidenced by recent changes
In the governmental apparatus and increasing Yugoslav
contacts with Western socialists, may well have resulted
in differences within the Politburo; In recent months the
Yugoslav Government has introduced several reforms which
ostensibly strengthen the power of the local governments at
the expense of the central authority. Yugoslav leaders
probably hope in this manner to abolish much duplication
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and bureaucracy. Under the Yugoslav Communism two lines
.of control have actually existed -- the Federal Government
and the Communist Party. None of the reforms to date,
however, has weakened the authority of the Party.
WESTERN EUROPE
7. UK Conservative leaders press for strong action against
Egyptian
u�ah�res r ctions:
Anthony Eden, deputy leader of
the UK Conservative Party, is
reported by US Ambassador
Gifford to favor the adoption of
strong measures' against Egypt if it continues to restrict
the passage through the Suez Canal of British oil tankers
_bound for Haifa. Pointing out that Eden is not given to
urging such courses of action without careful consideration,
the Ambassador indicates his belief that Churchill agrees
with Eden and that other influential Conservatives would be
inclined to go along on the matter.
Comment: The views expressed
by Eden on this subject suggest that a Conservative govern-
ment might even attempt coercive measures to reopen the
Suez Canal to Haifa-bound British tankers. The present
government,� concerned about the currently delicate state
of the defense treaty negotiations, is unlikely to adopt any
such measures as urged by Eden; but it is well aware of
both this Conservative pressure for a tougher line toward
Egypt and of similar pressure from among some of its own
supporters. It will therefore be particularly cautious about
concluding any Anglo-Egyptian defense arrangements which
would appear to make concessions to Egypt
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