CURRENT INTELLIGENCE BULLETIN - 1952/06/07

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02684306
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: May 24, 2019
• Document Release Date: May 30, 2019
• Publication Date: June 7, 1952

Approved for Release: 2019/0-5/08 CO2684306
*-ge TOP SECRET
SECURI INFORMATION
7 June 1952
Copy No. 53
CURRENT INTELLIGENCE BULLETIN
00CUMONTNO. 7/2�""
NO CHAIM IN CLASS. eir
DeCLASSICIED
CLASS QHANOED TO: IS 1004
NEXT ReviEw OA FE.
AUTN: NR 70.2
Office of Current Intelligencthrq
CENTRAL INTELLIGENCE AGENCY
SEC5VECRET
INFORMATION
REVIEWER
3.5(c)
3.5(c)
3.5(c)
_3.5(c)
3.5(c)
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SUMMARY
FAR EAST
1. Rhee may be replacing chiefs of staff (page 3).
2. Chinese Communist network appears to exist in Malaya (page 3).
NEAR EAST - AFRICA
3.
no possibility of US dropping Moroccan case before
World Court (page 4).
WESTERN EUROPE
4. East Germans reportedly centralize control in "inner cabinet"
(page 4).
Britain may
free pound sterling (page 5).
6. Czech delegateswithdraw visa applications for Paris peace
meeting (page 6).
* * * *
2
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FAR EAST
1. Rhee may be replacing chiefs of staff:
American Charge Lightner reports the re-
ceipt of information that PresidentRhee is
planning to replace all three chiefs of staff,
and to conduct an extensive shake-up of the
p LeveLs of the South orean Army.
A report that the President has directed the
Army Chief of Staff to transfer six of his ranking officers suggests that
Rhee is putting such a plan into effect.
Comment: Recent information has indicated
that all three chiefs of staff have been alienated by Rhee's recent behavior.
2. Chinese Communist network appears to exist in Malaya:
]evidence accumulated in recent months
makes it increasingly clear that since the
beginning of the terrorist campaign in 1948
a Chinese Communist network has existed in Malaya in addition to
the Malayan Communist Party, which itself is preponderantly Chinese.
There is considerable evidence of a clash of interests between the two
groups and of concern and dissatisfaction among Malayan party mem-
bers over their position.
Comment: The Malayan Communist move-
ment is led by and predominantly composed of Malayan Chinese. The
reported activity of Communists from China, who are more experi-
enced and more reliable Stalinists than are the Malayan Chinese
leaders, may indicate a Sino-Soviet effort to strengthen international
Communist control over the Malayan Communist movement as well as
to give it more expert direction.
- 3 -
3.5(c
3.3(h)(2)
3.3(h)(2)
3.5(c)
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worm 1...;OUTIL
NEAR EAST - AFRICA
no possibility of US dropping Moroccan case before
/the United States
\ is not in a position to dWcuss a compro-
mise settlement of the suit now before the International Court of
Justice regarding American treaty rights in Morocco.
the United States will be forced to continue the case in view of
the pressures and threats of American importers in Morocco, who
originally forced the defense of treaty rights.
Comment: This legal case on American
treaty rights threatens to raise new obstacles to the United States
program for the construction of air bases in North .Africa.
WESTERN EUROPE
4. East Germans reportedly centralize control in "inner cabinet":
East German "inner cabinet" with top East
German Communist Walter Ulbricht as
chairman has been organized directly under
the Soviet ontrol Commission to "coordinate measures for the pro-
tection of the German Democratic Republic."
Werner Eggeragi, State Secretary for Coordination and
Control, is a member of the group.
- 4 -
TOI>SECET
3.5(c)
3.3(h)(2)
3.3(h)(2)
3.3(h)(2)
3.3(h)(2)
3.3(h)(2)
3.3(h)(2)
3.5(c)
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The first orders issued by the cabinet were
reportedly to put the People's Police under Deputy Minister of Interior
Thhannes Warnke, and to start the recruitment of labor gangs for con-
structing barriers along the zonal border.
Comment: Premier Grotewohl announced
last week the establishment of five economic coordinating agencies in
East Germany. Eggerath's announced appointment as head of one of
these agencies, plus his elevation from the presidency of Thuringia
to cabinet rank, probably gives him extensive powers of control. The
emphasis on economic coordination suggests that heavier armaments
production is envisaged for East German remilitarization.
The reported consolidation of control in the
hands of an "inner cabinet" of the most reliable and efficient Commu-
nists may be in preparation for granting the government ostensible full
sovereignty.
Britain may free
pound sterling:
Britain may soon free the exchange rate on
the pound sterling,
The Conservative government is said to
favor this move over direct devaluation, preferring not to take a
step for which it criticized the Labor government in 1949.
Comment: Sterling has weakened in the last two
weeks despite the extensive measures previously taken by the Conser-
vative government to revive confidence in the pound. Failure of ex-
ports to rise is encouraging speculation that a new crisis is impending
which will force Britain to take the drastic step of allowing the pound
to seek its own level.
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TrA) S
6. Czech delegates withdraw visa applications for Paris peace meetingz
The Czech Foreign Office has withdrawn its 3.3(h)(2)
application for 15 French visas for delegates
to the "International Conference on the Peace-
ful Solution of the German Problem" scheduled
o e neia irom ii to i June in Paris,',
3.5(c)
Comment: This report coincides with an
announcement from Prague that a plenary session of the World Peace
Council will be held in Berlin from 1 to 5 July. The Paris meeting
may have been cancelled or merged with the Berlin session because
the recent demonstrations culminating in the arrest of Duclos have
created an atmosphere that is not conducive to Communist meetings in
Paris.
The Council agenda for the Berlin meeting
calls for discussion on the peaceful solution of the German and Japanese
problems; the immediate cessation of the war in Korea; and the arma-
ments race and the fight for peace. This agenda suggests that further
pressure will be exerted against the ratification of the German agreements.
3.3(h)(2)
3.5(c)
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