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Document Creation Date: 
April 15, 2019
Document Release Date: 
April 22, 2019
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Publication Date: 
October 24, 1951
PDF icon CURRENT INTELLIGENCE BULL[15602905].pdf320.28 KB
�rt Approved for Release: 2019/04/02 CO2730352 vr w TUE' 111..ET 24 October 1951 Copy No. CURRENT INTELLIGENCE BULLETIN DOCIMENT ND. der 4 NO CHANGE HI MASS. >e. DECLASSIFIED, CLAS. CHANGED IC: TS S NEXT neww DATE: A DAT YID/1E111/ER: 3.5(c) c4206/ 3.5(c) Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY T ICHSECRET 3.5(c) 3.3(h 7. Middle East Command a target of Cypriot Communists: 3.3(h)(2) Increased Communist activity on Cyprus is de- signed not only to create unrest and embarrass the British but also to create the impression that Cyprus is politically unsuitable for the Middle East Command Headquarters. The US Consul on Cyprus, who expressed the above opinion, reports that the Communist Party and the Nationalist Party are both renewing agitation for the union of Greece and Cyprus. Comment: The recent visits of British and American military missions and the Egyptian refusal to participate in the Middle East Command have resulted in widely spread rumors to the effect that Cyprus will become a major Western base. The Cypriot Communists have long campaigned for the union of Greece and Cyprus, an issue on which they can gain the support of most Cypriots and most Greeks. WESTERN EUROPE 8. Austrian manufacturers deliver embargoed ball-bearings to Poland: 3.3(h)(2) The US Legation in Vienna reports that the Steyr works delivered to Poland 100, 000 dollars worth of embargo-type ball-bearings during the months ToECIET Approved for Release: 2019/04/02 CO2730352 3.5(c) Approved for Release: 2019/04/02 CO2730352 RET 3.5(c) of August and September and will deliver a large quantity of such types during October. Deliveries of embargoed items constitute 50 percent of total de- liveries for the first two months and far exceed the quota governing such ship- ments. The Austrian Foreign Office asserts that the ex- cessive deliveries were necessary because Western orders had absorbed Steyr capacity in non-embargo types, and the filling of Polish orders was necessary if Polish coal is to be received. The US Legation shares the concern of the Austrian Government that Polish coal will be cut off unless Austria meets its total commitments and approves a still-pending contract involving further large shipments of embargo-type bearings. Comment: Pending a survey of alternative sources of coal, the Austrian Government and the US Legation agreed last August that the Austrians might accept sufficient ball-bearing orders to per- suade the Poles to begin coal deliveries -- with the stipulation that only dis- tant delivery dates would be authorized and that actual embargo-type deliveries would not exceed 10 percent of the total. Grave political repercussions will probably result if there is a failure of coal deliveries during the winter months. 9. SHAPE opposes approach to Austria on military plans: 3.3(h)(2) The Commanding General of US Forces in Austria has been advised by SHAPE of its concern that any approach to the Austrian Government with respect to an Austrian military contribution in the event of os 1 iies mig compromise the security of Western defense plans. Any disclosure of an intention to include Austria in Western planning would provide the USSR with a propaganda weapon on the occasion of the reconvening of the Austrian treaty deputies. Furthermore, an approach to the Austrian Govern- ment would appear to require prior Anglo-French approval on a diplomatic level. Approved for Release: 2019/04/02 CO2730352 3.5(c) Approved for Release: 2019/04/02 CO2730352 'IP>SECRET Comment Vienna, under four-power occupation, does not provide sufficient safeguards for the protection of high military plans. Soviet-sponsored and Communist newspapers have already charged that Western occupation forces in Austria receive their commands from General Eisenhower. An approach to the Austrians now on military plans could jeopar- dize the chances for conclusion of a state treaty, which is the prerequisite for any substantial Austrian contribution to Western defense. 10. Soviet harassment in Berlin viewed as move to speed shipments to East Germany: 3.5(c) American officials believe that the continued 3.3(h)(2) Soviet harassing of West Berlin is probably aimed specifically at the East-West German talks scheduled to begin on 23 October on iron and steel deliveries. East German press and govern- ment circles have violently accused the West Ger- mans of delaying tactics in the current series of East- West German discussions on implementing the trade pact. It has been suggested by US authorities that the 23 October talks be postponed, and no agreement e r eac wit. e as1 ermans until they actually abandon various harassing measures as agreed at the time of the signing of the trade pact. So far the British and French continue to show reluctance to take strong counter- action. Comment: Twice in the past week, the USSR re- jected large numbers of West Berlin export permits. French and British re- luctance to take counter-action may arise partly from the belief that the effect on the Berlin economy of the various harassing measures has not been extremely serious, as well as from a general unwillingness at this time to challenge the Soviet right to control Berlin exports. 8 Approved for Release: 2019/04/02 CO2730352 3.5(c) 11. Approved for Release: 2019/04/02 CO2730352 11191.BECRET Deteriorating French financial situation threatens NATO interests: 3.5(c) 3.3(h)(2) The US Ambassador in Paris is "increasingly concerned" over the deteriorating French finan- cial situation and over the "prevailing resent- ment" of French officials because of the delay in holding US-French talks on assistance. The Ambassador proposes imme- diate consideration of interim assistance pending the completion of a NATO committee analysis, and urges that the proposed talks begin at once, since uncertainty on the type and extent of aid will force the French Government into actions "that may well be injurious to NATO interests. " Comment France wants definite US commitments as a basis for defense expenditures under the 1952 budget. Because of un- favorable economic trends in France and the probability of early devaluation of the franc, it now seems increasingly unlikely that France will be able to meet its defense commitments. - 9 - Approved for Release: 2019/04/02 CO2730352 3.5(c)