CURRENT INTELLIGENCE BULLETIN - 1951/11/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02739302
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: November 3, 1951

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SECU1jj&z INFORMATION
3 November 1951
Copy No. 47
CURRENT INTELLIGENCE BULLETIN 5/
DOCUMENT NO.
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SEC INFORMATION
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SUMMARY
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. Iranian Communists increase activi
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4. French economic crisis mounts (page 5).
5. French Communists suffer serious setback in key industry (page 5).
6. Soviet representatives in Vienna show concern over US strategy (page 6).
7. Italians formulate new plan to attain membership in UN (page 7).
8. No drastic change in British policy toward Spain expected (page 7).
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2. Iranian Communists increase activity among workmen:
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The Iranian labor situation has deteriorated
sharply in the last two weeks, and TVdeh has in-
creased its activity among the workers, according
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to the US Embassy in Tehran. The US Army
Attache asserts that the most potentially ex-
plosive labor situation is at the idle Abadan re-
finery, where Tudeh organizers are reportedly
active. .
3.3(h)(2)
Comment: The projected limited operations at
the Abadan refinery make that plant a prime target for Communist pene-
tration. /
3.3(
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4. French economic crisis mounts:
The ECA Mission in Paris reports that the 3.3(h)(2)
French Government is showing increasing pessi-
mism in making the basic decisions necessary
for its 1952 budget and for NATO'S current
survey of national capabilities, and is considering a fifty percent reduction
in dollar imports for its current fiscal year.
The Mission believes that the French economic
and financial crisis is now reaching its peak and that the contemplated import
cuts would have "extremely serious consequences" for the economy and re-
armament.
Comment: The French had been counting heavily
in recent months on large imports of US coal, cotton, oil, and equipment. A
sharp curtailment of this program would be a blow not only to production but
also to the basic French policy of stemming the inflation by increasing imports.
France's growing economic difficulties can be
expected to jeopardize its present position in Indochina, its willingness to
accept a maximum German contribution to European defense, and its re-
sistance to Soviet Orbit demands for strategic commodities in exchange for
vitally needed imports.
French Communists suffer serious setback in key industry
3.3(h)(2)
The "de-communization" of labor in the Paris
metallurgical industry is being successfully pur-
sued by the employers' association and the non-
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Communist unions. Employers have firmly resisted unity-of-action committee
demands, and the failure of wage negotiations in the metallurgical industry
has given the Socialist-oriented union an excuse to withdraw from the unity-of-
action committee. This union now plans a non-Communist association of
Paris-region metal industry unions.
Comment: The Communists have carefully
nursed local unity-of-action committees since last spring in the hope of gaining
complete control of French labor by working from the bottom up. Failure in
the key Paris metal industry is a serious blow to their plans. This may be
the turning point leading to an end of dominant Communist influence in critical
sectors of French labor, particularly if the French Government successfully
promotes a national economic conference excluding the Communist-controlled
union.
6. Soviet representatives in Vienna show concern over US strategy: 3.3(h)(2)
According to Austrian Foreign Minister Gruber, a
conversation on 31 October between high Austrian
officials and two Soviet political advisers revolved
around the theite of Soviet concern for US strategic
world. The Soviet representatives said they were
prepared to make concessions to stop this US "aggression, "and remarked
that in view of Churchill's return to power, a four-power conference could be
held from which favorable results might be expected.
Gruber found the Soviet representatives to be
"sensitive" and "on the defensive" on the subject of an Austrian state treaty.
They attempted to connect the treaty question with alleged remilitarization in
the Western zones of Austria, the refusal of the West to consent to an investi-
gating commission, and with the stationing of British and US troops in Trieste.
Gruber feels that the Soviet representatives will employ these same objections
in a new meeting of the Austrian treaty deputies.
Comment: Soviet officials in Western Europe
have recently alleged that the USSR would make Concessions to obtain a
change in US strategy. In early 1951 prior to the unsuccessful Deputy Foregn
Ministers' Conference, there was a series of similar reports that the USSR
would make concessions to stop German rearmament. In the last series of
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Austrian treaty talks, the USSR used the Trieste issue as a means of block-
ing agreement. In recent weeks the repeated Soviet charges of remilitari-
zation in western Austria have appeared to be laying the foundation for
further objections to an end of the Austrian occupation.
7. Italians formulate new plan to attain membership in UN:
3.3(h)(2)
Comment: De Gasperi had recently suggested
to the US Ambassador in Rome that the US, instead of rejecting Soviet
proposals for the admission of Hungary, Bulgaria and Rumania to the UN,
should support their applications for membership if accompanied by proof
that they arq free and democratic.
8. No drastic change in British policy toward Spain expected:
3.3(h)(2)
The new British Government will not make any
major changes in Spanish policy, according to
tentative information given the US Embassy in
London by the Foreign Office. British opposition
to Spanish membership in NATO and to US
military aid to Spain and disapproval of Spanish
domestic policies are expected to continue under
the Conservative regime.
Although the Foreign Office anticipates the
gradual elimination of certain discriminatory practices of the former Labor
government, the Conservatives first desire evidence of a more friendly
Spanish attitude toward the British.
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Comment: Speculation that the Conservatives
would reverse the Labor government's Spanish policy has not been borne out.
The Conservatives had previously objected to US military aid to Spain,
fearing that such an agreement might cut the flow of arms to NATO countries.
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