CURRENT INTELLIGENCE BULLETIN - 1951/06/29

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02740734
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: March 18, 2019
• Document Release Date: March 28, 2019
• Publication Date: June 29, 1951

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witepti
29 June 1951
Copy No. el -
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS. X
LI DECLASSIFIED
CLASS. CHANGED TO: Tr5
NEXT REVIEW DATE:
AUTH: HR
DATEI
REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
Yugoslav UN Delegate views Mal* proposal as indication of
Soviet readiness for.Korean settlement (page 3).
FAR EAST
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3.3(h)(2)
3. Status of foreign oil companies in Indonesia discussed (page 4).
N�
NEAR EAST
. Iran allegedly aiming sabotage law at Communists 63age 5 .
x
EAsTgRN it; atOPE
Panamanian flash 4 reportedly unloads US4abe1ed cargo in
Rumania. (page 6).
WESTERN EUROPE
Berlin trade agreements bogged n (page 6).
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GENERAL
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I. Yuffoslav UN Dfilezate views Mall a nruosal as indication of Soviet
reallax' less for Korean settlement
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In a 27 June conversation with the US dele-
gation, Yugoslav UN Delegate Probler
declared that Soviet readiness for a settle-
ment in Korea was indicated by the fact
that the Malik proposal had been made at all,
and by subsequent Soviet press treatment accorded the proposal.
Bebler warned, however, that any Korean settlement would only be
a move to relieve the Kremlin from an awkward position in Korea and
to free the USSR for further operations against the West in another
area such as Iran or Indochina. Bebler did not think Yugoslavia had
been chosen as the next tattle of Soviet aggression.
Comment As reported by the authoritative
Yugoslattewspaper Borba, their Ministry suggests the possi-
bility that "Malik's offer is a "peace" propaganda maneuver intended
to justify further Soviet participation in the Korean conflict. The
Foreign Ministry consider however, that if the proposal is based on
a sincere desire to stop the Korean war, it affords proof of the
failure of the entire policy supported and organized by the Soviet
Government during the past year.
3.3(h)(2)
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atatus of forOgn mil companies in Indonesia discuss
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Although the Iranian oil controversy has
provoked much discussion in Indonesia 3.3(h)(2)
regarding the status of foreign oil com-
panies, such discussion has focused on
�
the means of increasing the government's income from oil oper-
s _rather than on nationalization itself. To this end, the
Economic Minister reportedly has agreed to a parliamentary pro-
pOsal that a national committee be formed to examine all matters
affecting oil operattons in Indonesia and to reconsider present
mining laws. The 8ornm1ttee will reportedly consider g (a) a
requirement that oil companies be domiciled in Indonesia so that
they will be subject to additional taxation, (b) the appointment of
Indonesians as managing directors, and (c) a very substantial
Increase in exploration and exploitation lease rates. The major
Indonesian dissatisfaction with existing contracts, however,
centers on provisions exempting oil companies from foreign
exchange regulations.
Comment: Although the Communist
Party and its affiliated organizations will continue to urge
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nationalization of the oil industry in Indonesia -- which is com-
pletely foreign controlled -- there is little likelihood that the
present government will adopt such a policy.
NEAR EAST
4. Iran allegedly aiming sabotage law at Communis%
3.3(h)(2)
The Iranian Foreign Mini ter has told the
US Ambassador that the contemplated oil
sabotage law is aimed at Communists, not
at the Anglo-Iranian Oil Company. He
pointed out further that the law had not en passed. Ambassador
Grady says other Iranians haveni, (fte statements along similar
"bless, and sees evidence of a more conciliatory attitude on the part
of Mossadeq and his group.
Comment Since Ab lam refinery manager
Drake has already been publicly accused of sabotage by a member of
the Iranian commission taking over the oil host liations, it seems
unlikely that the sabotage law is being contemplated solely as a
damper for Communizt'a-ativities. Furthermore, wha ver the
origtotal motlies may have been, the Iranians could always use a
against Anglo-Iranian Oil Company employees if they so desired.
While the Iranian Prime Minister and his followers may blitvigianiVg,
to fear the consequences of their recent actions, there are few
concrete indications that this fear is being translated Into a more
conciliatory attitude. Even if Iran should modify or withdraw its'
anti-sabotage law, such action would hardly allay British suspigims.�
The Prime Minister's message of 28 June
to President Truman restates at length the Iranian msition and
makes a bid for US support� The message does not, however,
show any sign that Iran is willing to modify its demands.
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EASTERN EUROPE
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Panamaniareportedl, unloads US-labeled cargo in Rumania:
Ruma,nia
observed a Panamanian ship unloading cargo
marked with the ERP shield and labeled
"Amerika" and "USA" between 17 a 19 3.5(c)
March. The material, was reportedly loaded on trains destined for
Ploestio
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Comment The report is a specific example
of the type of subterfuge employed by Soviet Orbit countries to obtain
Western goods. During the first quarter o11951, 13 Panamanian flag,
ships, totaling approximately 70, 000 tans, were under charter to the
USSR and its Satellitem
WESTERN EUROPE
Berlin trade agreements bogged down:
The Western deputy commandants in Berlin
have requested the approval of the Allied
High Commission to write the chief Soviet
representative in Berlin, proposing that
Soviet and Western experts meet on 5 July to discuss measures for
preventing illegal trade and for ensuring the nozpial flow of Berlint9
Legal trade. The letter would express the hope that by that date
Soviet authorities will have approved all outstanding West Berlin
expdrt permits, of which six thousand are now backlogged.
Meanwhile, according to the US High
Commissioner, the interzonal trade negotiations became d,eadl eked
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on 25 June when the East German representative stated that he would
refuse to tie the agreement on interzonal trade to that on the movement
of goods out of West Berlin. The commandants advise that the west
should be prepared to impose effective countermeasures, if they are
required.
Comment g When the USSR relaxed its
restrictions tn West Berlin exports �nip June, it apparently did so
In the hope of coming to an early agreement on interzonal trade. Now
that the trade talks suspended by the West during the height of the Ber-
lin dispute have been reopened, the USSR appears to be less ready to
all w Berlin exports to flow freely.
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