CURRENT INTELLIGENCE BULLETIN - 1952/07/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02020565
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: June 6, 2019
• Document Release Date: June 27, 2019
• Publication Date: July 8, 1952

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SEC INFORMATION
8 July 1952
Copy No.53
CURRENT INTELLIGENCE BULLETIN
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SECURE FORMATION
REVIEWER;
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SUMMARY
FAR EAST
1. Moslem revolt in northwestern China reported (page 3).
2. Burmese seeking to repatriate Chinese Nationalists (page 3).
NEAR EAST - AFRICA
3. Satellites offer to purchase Iranian oil reported (page 4).
4. New oil field reported near Tehran (page 5).
EASTERN EUROPE
5. Yugoslays reported ready for military talks with Turks and
Greeks (page 5).
WESTERN EUROPE
6. Plans for stepped-up Sovietization of East Germany partially
confirmed (page 6).
7. Swiss offer East German Government de facto recognition (page 6).
8. Britain opposes newest plan for European federation (page 7).
9. France denies plans for shipment of steel rails to East Germany
(page 7).
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FAR EAST
1. Moslem revolt in northwestern China reported:
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who reached Hong 3.3(h)(h)(2)
Kong from China's northwestern Kansu Prov-
ince report that 10,000 Moslems rebelled
about two months ago. The uprising was
crushed in approximately four weeks.
The American Consulate General reports
that according tb a local Moslem contact, the rebels are merely in-
active now, and were not completely defeated by the Chinese Commu-
nists,
Comment: This is the first confirmation of
previous reports in the gong Kong press that there is unrest among__
the Mosleins of northwestern China. r
The difficult terrain of northwestern China is
favorable for guerrilla operations. This area, however, is almost
inaccessible, and insurgents could expect little or no outside assistance.
2. Burmese seeking to repatriate Chinese Nationalists:
An official of thd Burmese Foreign Office
informed the US Embassy in Rangoon that
Defense Minister Ba Swe, while expecting
that insurgency in Burma will be largely
eliminated by fall, fears that public pressure will then force him to
attack the Chinese Nationalists in Kengtung. Ba Swe says he is
anxious to avoid such action and is willing to repatriate the National-
ist troops through Rangoon.
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The Foreign Office official asked for Ameri-
can aid in arranging a mission to Formosa to discuss the matter.
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Comment: While the Burmese armed forces
have recently achieved some local successes against the insurgent
Communists, there are no indications of a victory by the end of this
summer.
The Burmese Government has rejected all
previous proposals to repatriate the Chinese Nationalists. Reversal
of this policy probably resulted from a realization that a major offensive
against the Nationalists in Kengtung to assuage public opinion would
leave the way open for successful insurgent operations in central Burma.
NEAR EAST - AFRICA
3. Satellites offer to purchase Iranian oil reported:
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The Iranian Ambassador in Moscow has in-
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formed that Czechoslo- 3.3(h)(2)
vakia, Poland, and Hungary have offered to
buy up to 3,000,000 tons of oil from Iran, and
that the Czech and Polish Governments have already deposited dollars
in New York to cover the transaction. The Iranian Government was
Informed that the necessary transportation "would be taken care of."
The Tehran government allegedly has stated
that it wants time to think the matter over as it does not wish to "injure
old established customers."
Comment:
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a Polish-Iranian agreement including oil is pending, but Czech negoti-
ations appear to have stalled over the problem of transportation.
Hungary reportedly has signed an agreement to purchase Iranian oil,
=le of Which is known to have been shipped yet.
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4. New oil field reported near Tehran:
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the oil drilling
operations of the Iranian Oil Company at
Qum in north-central Iran ninety miles
south of Tehran,
struck what appears to be a sizeable deposit of oil on 2 July. He
says that all signs indicate that the strike is in or close to new oil
fields, the extent of which cannot yet be determined.
Comment: Discovery of oil by the Iranian
Oil Company would furnish Prime Minister Mossadeq with a lever in
his dispute with the Anglo-Iranian Oil Company.
Because of Qum's location, such a dIscovery
would certainly interest the Russians, both as a possible future
source of oil and as a means of penetrating the Iranian economy.
EASTERN EUROPE
5. Yugoslays reported ready for military talks with Turks and Greeks:
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The Yugoslav Government is ready to engag3.3(h)(2)e
in military talks with Turkey and presumably
Greece, if those countries commit themselves
to a strong defense of Thrace. The Turkish
Foreign Minister says he was so informed during the last week in June by
the Yugoslav Ambassador. The Foreign Minister stated that he was
doing all in his power to impress Turkey's allies with the importance
of defending Thrace.
Comment: A military planning agreement
with Greece and Turkey would be of considerable advantage to Yugo-
slavia, but the Yugoslays have not hitherto shown a willingness to
begin such talks.
While Greece and Turkey want to provide for
the defense of Thrace, a difficult military problem, the latter is pro-
ceeding cautiously, and obviolisly desires a NATO commitment promis-
ing additional sea and air support before it negotiates with Yugoslavia.
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WESTERN EUROPE
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6. Plans for stepped-up Sovietization of East Germany partially confirmed:
The Socialist Unity Party congress, scheduled
for 9 to 12 July, reportedly will move to in-
troduce the Kolkhoz system in agriculture, to
begin a neW party purge, and to replace the
five state governments with 14 new districts.
Party leaders allegedly plan also to approve
the "eventual" resignation of East German Premier Otto Grotewohl,
probably on grounds of ill health.
Comment: Party leaders had earlier been
reported to be planning action rat the July congress to strengthen their
control Over East Germany. Gradual curtailment of the functions and
authority of the state governments has already begun, and American
observers in Frankfurt believe these governments may ultimately be
eliminated. This, however, is not expected to occur before the rati-
fication of the Allied-West German contractual agreement.
The probable eclipse of Grotewohl, ostensibly
on grounds of ill health, has been previously predicted.
7. Swiss offer East German Government de facto recognition:
Switzerland has offered the East German
Government de facto recognition, through
the exchange of trade missions, instead of
the formal recognition it demands in return
for concessions on nationalized Swiss prop-
erty. The Swiss have assured Britain they
will not grant de jure recognition.
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France intends to support American protests
against any such action but the British For-
eign Office states it will take no action as
long as Switzerland withholds full recognition.
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Comment: East Germany will probably
accept the de facto recognition, which would be a substantial political
victory, since no other Western nation has yet made even this con-
cession. Switzerland exchanged Ministers with the West German
Federal Republic earlier this year.
8. Britain opposes newest plan for European federation':
9.
Commenting on the French proposal that the
Schuman Plan countries create a supranational
political authority, a British Foreign Office
official stated that, while Britain would have
to assent to the development of a "new power" across the channel,
acceptance of a European federation would be a reversal of traditional
British policy.
Great Britain intends to comment that such
a development is premature and to urge the acceptance of Foreign
Secretary Eden's plan for bringing supranational institutions within
the "loose" framework of the Council of Europe.
Comment: Although France desires British
participation in European unity plans, Foreign Minister Schuman has
evidently decided to restrict the task of establishing a political author-
ity to the Schuman Plan countries. In this way France would block
discussion of the participation of other countries in the coal-steel and
defense communities and avoid delaying the implementation of these
two bodies.
France denies plans for shipment of steel rails to East Germany:
The French Foreign Office has denied report2 3(h)(2)
that East Germany is purchasing 80,000 tons
of steel rails from the Schneider�Creusot
company. This company, it states, does not
manufacture rails and has negotiated for
neither direct nor indirect delivery of rails
to the German Democratic Republic.
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The Foreign Office knows of no such negoti-
ations by any French company, and states that it is "fully cognizant"
of its obligation to consult COCOM before granting an export license
for such material.
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