CURRENT INTELLIGENCE BULLETIN - 1952/09/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 05973606
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: June 6, 2019
• Document Release Date: June 27, 2019
• Publication Date: September 3, 1952

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3 September 1952 3.5(c)
CURE,tENT INTELLIGENCE BULLETIN
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7-tatt vol 70-2 ReVetall
013-M.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
1. North Korean authorities concerned over hydroelectric system
(nage 3).
2.
SOUTH ASIA
3. Comment on Soviet relief promised to India (page 4).
4. Comment on designation of Panikkar as Ambassador to Egypt
(page 4).
WESTERN EUROPE
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5. Saar talks seen nearing serious consideration of economic problems
(page 5).
6. Only drastic anti-inflationary measures can save Pinay (page 5).
7. Sentiment persists in France for four-power talks (page 6).
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FAR EAST
1. North Korean authorities concerned over hydroelectric system:
2.
"omment:
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concern in North Korea over the current 3.3(h)(2)
status of the hydroelectric system. The power plant referred to is
part of the Changjin system, which was successfully attacked by naval
planes on 27 August.
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SOUTH ASIA
3. Comment on Soviet relief promised to India:
The Soviet Trade Union Council, in reply
to a request from the "Indian United Committee for Aid to the Starving
in Andhra Province, " promised to send 10,000 tons of wheat, plus
other needed foods, according to a Pravda report of 31 August.
This offer will be utilized by the Indian Com-
munists as part of a gerrymandering effort to create a new province of
Andhra drawn on linguistic lines. This section of India voted heavily
Communist in the last elections.
Even though famine conditions throughout
India are not critical, this area suffers sufficiently from distribution
difficulties so that both Soviet and Indian Communist propaganda will
be able, as in 1951, to capitalize on token shipments for political
purposes.
4. Comment on designation of Panikkar as Ambassador to Egypt:
The Indian Government's announcement on
2 September that K. M. Panikkar, Indian Ambassador-designate to
Egypt,would carry credentials addressed to the "King of Egypt and the
Sudan" lends support to Egypt in its dispute with Britain even though
India proclaims that its action does not prejudice the political issues
involved. The selection of Panikkar, recently Indian Ambassador to
Communist China, imputes major importance to the Indian Embassy
in Cairo and is added evidence of India's growing interest in the Near
East.
While in Peiping, Panikkar's reporting was
heavily biased in favor of the Communists and often inaccurate. It may
be expected that his reports from strategically located Cairo will be
anti-Western. As a close friend and adviser of Prime Minister Nehru,
he has influenced Nehru's thinking on foreign policy.
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WESTERN EUROPE
5. Saar talks seen nearing serious consideration of economic problems:
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French Foreign Minister Schuman and West
German Deputy Foreign Minister Hallstein
agreed at their 29 August talks on the Saar to
have French and German economic experts
attend their next meeting. The American Embassy in Paris considers
this an indication that negotiations may "finally get down to brass tacks"
on economic arrangements for a Europeanized Saar.
Both statesmen now agree that a settlement
of the economic issues is of primary importance. Schuman seems will-
ing to accept a practical alternative to the French-Saar economic union,
but his opinion apparently is based on the estimate of French economic
experts who do not believe that the Germans can present a workable
solution for economic Europeanization.
Comment: By basing French willingness to
accept Europeanization on the premise that no alternative to the present
economic arrangement is possible, Schuman is presumably leaving the
way open for a later claim that an economic Europeanization of the Saar
is possible only within the framework of a fully integrated Europe.
6. Only drastic anti-inflationary measures can save Pinay:
French Premier Pinay will be out of off fce
by the end of November, in the opinion of
the Director of the French Price Adminis-
tration. He showed American Embassy
representatives his report to the Premier which pointed out that only
the immediate application of "the most drastic measures" can stem
disastrous price rises.
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While the Embassy considers this estimate
too pessimistic, it comments that Pinar s dilemma will force him to
alienate either the farmers or the retailers, with labor opposition
already in the offing.
Comment: Although Pinay halted inflation
temporarily, he cannot long postpone basic adjustments which will
require devaluation of the franc, recovery of a favorable export position,
and tax reform.
7. Sentiment persists in France for four-power talks:
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The American Embassy in Paris reports that
there is still considerable sentiment in France
for a four-power meeting on Germany.
The government's refusal to accept immediate
talks with the USSR has led to increased criticism of Schuman. Rene
Mayer, the leading contender for the Foreign Ministry post, is on
record as favoring a four-power conference prior to EDC ratification.
The vice-president of Mayer's Radical
Socialist party has published a plea for "one last try," and the Paris
daily closest to Pinay has expressed similar sentiments.
Comment: Rumors of Schuman's deterio-
rating position continue, but Pinay cannot hope to hold Popular Republican
support if he replaces the Foreign Minister. In any event, the French
Government is not expected to call for immediate talks.
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