DAILY SUMMARY - 1950/07-1950/09

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 06749454
• Document Creation Date: January 11, 2019

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GENERAL
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1407
1. US concerned over lessened German cooperation-,-The
Department of State has expressed to US High Commis-
ioner McCloy its concern over indications from several
sources that the Germans have recently taken a less co-
operative attitude in negotiations on the Schuman Plan,
probably because they feel their position has been strength-
ened by the apparent eagerness of the Western Powers to
' sue for German military support. The Department suggests,
in view of the great importance of the German attitude during
this period while the Western allies are attempting to reach
agreement of German participation in a common defense, as
well as the long-range importance of the outcome of the
Schuman Plan, that McCloy may wish to point out to West
German Chancellor Adenauer that this feeling of decreased
German cooperation exists generally among the Western
nations. The Department considers that current discussions
of drawing Germany into a common defense arrangement, far
from lessening the need. for European economic cooperation,
make it more imperative that the negotiatiiins on the Schuman
Plan, to whose success the US attaches great importance, be
concluded rapidly and satisfactorily.
FAR EAST
2. Possible Chinese Communist intervention in Korea-US
Ambassador Kirk has received reports from his British
� and Dutch colleagues in Moscow that Chinese Communist
leaders in Peiping favor Chinese military intervention in
the Korean war if UN forces cross the 38th Parallel. Ac-
cording to Kirk's information, reports concerning the exist-
ence of this,sentiment among Chinese Communists have come
from" the Dutch charge and the Indian ambassador in Peiping.
The Indian representative is reported to have told his govern-
ment that a Chinese Communist decision on intervention has
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crystallized since mid-September and is based on the conviction
that the entering of US forces into North Korea would indicate
a basic US aim to carry the war to Manchuria and China in
order to return Chiang Kai-shek to power in China. In com-
menting on this information, Kirk says he finds it difficult
to accept these reports as authoritative analyses of Chinese
Communist plans. He takes the line that the logical moment
for Communist armed intervention came when the UN forces
were desperately defending a small area in southern Korea and
when the influx of an overivhelmtng number of Chinese ground
forces would have proved a decisive factor. He warns that
prudence is indicated in this situation but expresses his view
that the Chinese Communists, through press propaganda and
through personal contacts with foreign diplomatic personnel,
have taken a strong line since the Inchon landing in the hope
of bluffing the UN on the 38th Parallel issue.
3. INDONESIA: Army faces tense situation with Ambonese--
An Indonesian army officer has disclosed to US Consul Mill
In Surabaya that the Indonesian army is on stand-by orders
in that area as a consequence of increasing tension with
Ambonese armed units which were members of the Dutch
colonial forces prior to the granting of Indonesian independence.
According to Mill's informant, the Ambonese are well armed
and very bitter against the Indonesian army. He regards the
situation as potentially very serious.
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EUROPE
1. SWEDEN: Reaction to UN successes in Korea--US Ambas-
sador Butterworth in Stockholm reports that recent UN
� victories in Korea have decisively dispelled the spirit of
defeatism and pessimism which had prevailed in Sweden
and have renewed Swedish confidence in the UN as an effec-
tive peace instrument. Butterworth adds that recent UN
Successes in Korea have also reduced Sivedish fears of a
third world war.
ITALY: Fusion of Socialist parties predicted--US Ambas-
sador Dunn in Rome reports the view of a high official of
the Italian Interior Ministry that the two non-Communist
Socialist parties may combine soon and that such a fusion
would attract considerable numbers from the pro-Communist
Socialist Party as well as deal a "terrific blow" to the Italian
Communist Party;. The Italian official added that, once the
Socialist fusion gets under way, it is "not impossible" that
some Communist leaders would break with their Party.
(CIA Comment: Considerable evidence indicates that
the predicted Socialist fusion may take place in the near future,
but the present solidarity of Communist leadership in Italy is
not likely to be affected.)
NEAR EAST-AFRICA
3. TURKEY: Government accepts, NAT proposal "in principle"--
Turkish Foreign Minister KOprulu has informed US Ambassador
Wadsworth in Ankara that the Turkish Government has decided
to accept in principle the invitation of the NAT Council to
. �
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participate in military planning for mutual defense of the
Mediterranean area. The Turkish Foreign Minister also
stated that his country would continue to give full support
to UN action regarding Korea and to current US proposals
for strengthening the security powers of the General As-
sembly. Koprulu expressed the hope that Spain might be
brought into closer relationship with the Western Powers
and with specialized UN agencies as preliminary steps
toward eventual Spanish association in Mediterranean
defense.
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GENERAL 08 wa- T
GENERAL
28 SEP 1950
" 1405
1. US views on Taiwan's future--The Department of State has
authorized Minister Rankin in Taipei to inform the Chinese
Nationalist Government, at his discretion, that the US desires
in regard to Taiwan first,- to gain UN support for the uni-
lateral US "neutralizing" action of 27 June and second, to
establish the principle that the Taiwan question should be
settled by peaceful meatig:- The,Depafitment feels that accept-
ance of the principle of peaceful settlement would not prejudice
the nature of arrangements; finally achieved, and points out that
meanwhile the status quo on Taiwan could be maintained. The
Department adds that present thinking favors a thorough in-
vestigation of the Taiwan question by a UN conission and
expresses doubt that such an investigation could 1:ie completed
during the present General Assembly session.
2. Indian views on 38th Parallel�US Ambassador Henderson in
New Delhi reports that Secretary General Bajpai of the Indian
Ministry of External Affairs has expressed the opinion that
Prime Minister Nehru does not intend to support any military
action in Korea north of the 38th Parallel. Henderson points
out, however, that there are influential elements in India
which might be willing to agree to the occupation of all Korea
by UN forces provided the whole country is placed under UN
control until a nation-wide plebiscite can be held. The Am-
bassador considers it "barely possible" that Nehru might
be persuaded to go along with a solution of this kind.
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EUROPE
3. GERMANY: Soviet harassment in Berlin-- General Taylor,
US Deputy High Commissioner in Berlin, reports that the
recent intensification of Soviet harassment in Berlin has
increased tension in the city, but adds that Western occupa-
tion authorities are not particularly alarmed. Taylor feels
that the recent Soviet "incidents" are intended to influence
East Germans on the eve of the Soviet Zone elections and
to decrease participation in the 1 October West Berlin in-
dustrial fair.
(CIA Comment: The primary purpose of these re-
newed Soviet tactics is probably the usual one of undermining
the confidence and morale of the West Berlin and West German
population. The Communists may also estimate that a display
of strength before the 15 October elections will discourage the
East Germans from passive resistance during the elec-
tions.)
4. PORTUGAL: Attitude toward Western defense--US Ambassador
MacVeagh in Lisbon has been informed by Portuguese Foreign
Minister Cunha, during a discussion of the Portuguese position
regarding Western defense, that his government favors the
maximum possible use of the German defense potential. Cunha
added that Portugal also favors the establishment of an inte-
grated defense force under a unified command, but cannot agree
to contribute to such a force so long as Spain remains outside
the defense system. Cunha also stated that his government holds
that decisions of the proposed unified command should not apply,
without their consent, "to countries lying outside the integrated
area.,.,
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(CIA Comment: Spain's exclusion from the NATO is
not the major reason for Portugal's unwillingness to contribute
to an integrated defense force. Premier Salazar is primarily
concerned with finding a way to remain in the NATO without
reducing the authority of his totalitarian regime and the poli-
tical predominance of the Portuguese military caste. Salazar's
desire to have Spain brought into European defense plans is
nonetheless a consideration because of his obligations under�
the Spanish-Portuguese Treaty of Friendship and Non-aggression.)
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GENERAL
ET
2 7 SEP 1950
Rol/
1. Soviet attitude toward UN occupation of North Korea--The
US Delegation to the, UN transmits the opinion of the UK
Ambassador in Moscow that the Kremlin, in considering the
turn of the military tide in Korea, might regard the occupa-
tion of North Korea by UN forces as a cause for war. The
UK Ambassador points out that, although there have been no
official indications of the Kremlin's reaction to the altered
Korean situation, the Soviet leaders are undoubtedly seeking
means either to forestall UN occupation of North Korea or,
failing this, to neutralize the dangers to the USSR that such
an action would raise. In considering the possible actions
open to the Kremlin, the UK Ambassador feels that the USSR
will hesitate to put forward detailed proposals on either count
but will take full advantage of any.well-intended but naive
proposals which might be put forward in the UN. If such an
opportunity is not presented, the UK Ambassador believes the
main Soviet effort will be made in the propaganda field.
The UK Ambassador suggests that, in addition, the
Kremlin may attempt to distract attention from the Soviet,
failure in Korea by staging a diversion elsewhere, with Indo-
china and Berlin being obvious possibilities. In analyzing
the possibility that the USSR might risk a global war in order
to restore its prestige and eliminate a threat to its security,
the UK Ambassador concludes that the USSR is unlikely to
assume this risk primarily because "Stalin has never yet
been prepared to risk all in order to gain all." The UK
Ambassador comments that, if UN forces.occupy North
Korea, the resulting reorganization of the country and the
attendant publicity will have far-reaching consequences
throughout Asia.
Ku Comment: CIA agrees that: (a) the USSR is
undoubtedly searching for methods either to forestall a UN
crcpX ation.of North Korea or to neutralize its effect; and
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(b) the USSR will probably not take any steps which in the
Kremlin's opinion would be likely to precipitate war with
the US.)
2. Comments on proposed new UN Commission on Korea--
The US Delegation to the UN reports that former General
Assembly President Romulo, commenting on the UK draft
resolution for establishing a new commission on Korea,
stressed the need of assuring the proposed new unification
commission of full cooperation from the authorities of the
Republic of Korea. Romulo feels that great care should be
used in selecting members for the new comniis�ion and
emphasized that India, the Philippines, Australia, New
Zealand, and Canada should serve. Romulo added that non-
Asian members should be chosen on the basis of capacity
and willingness to help establish a unified democratic Korea.
'EUROPE
3. GERMANY: Role in Western defense causes concern--
According to US High Commissioner McCloy in Frankfurt,
Chancellor Adenauer, although very pleased with the recent
actions of the US-UK-French Foreign Ministers, is dis-
tressed about rumors that a decision in principle on the
employment of "German contingents" in Western defense may
be postponed indefinitely. Adenauer believes that any formal
announcement to this effect would have serious repercussions
in Bonn by strengthening the hand of the government faction
which continues to oppose German participation in Western
defense efforts. Adenauer also believes that German public
opinion requires "a good deal of careful working on" before
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it readily accepts the idea of participation, and that efforts to
mold opinion cannot begin openly until the Western Allies
.announce their decision. McCloy feels there would be no
objection in the Federal Republic Government if the Germans
were requested in the near future to consider a contribution
to be made at a later date.
4. BELGIUM: Supreme Western commander favored--US Am-
bassador Murphy in Brussels reports the opinion of a Belgian
Foreign Office official that, although a constitutional question
Is involved in the transfer of sovereignty required to create
a joint Western supreme defense command, there will be no
difficulty in obtaining the necessary legislation. The Belgian
official declared that such ground, air, or sea combat units
as Belgium has now or may have in the future would be
allocated to the supreme high command. The Belgian official
remarked that it was difficult for the Belgian Government to
understand why an interim appointment of a chief of staff should
be preferred to the immediate appointment of a supreme com-
mander.
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GENERAL
26 SEP 1950
1. ROK views on 38th Parallel�The South Korean Foreign
Minister and the Ambassador to the US have again expressed
their conviction to US representatives at the UN that the 38th
Parallel should be obliterated and the original boundaries
of Korea restored. The Korean spokesmen reiterated their
views that the Republic of Korea (ROK) should take jurisdiction
north of the 38th Parallel as soon as possible and that UN-
observed elections should be held there to fill the 100 seats
which have always been held open in the ROK National Assembly.
The two Korean officials also "raised violent objections" to
bringing North Korean representatives before the UN because
they felt such an action would imply UN doubt regarding the
capacity and legality of the South Korean Government.
EUROPE
1403
2. ITALY: Communists now taking moderate line--US Ambassador Cf 4/5
Dunn in Rome reports that the Italian Communist Party is now
radiating "sweetness and light," undoubtedly with the aim of
convincing the Italians there is no urgency to rearm or organize
special anti-sabotage squads. Dunn adds that the Communists
are feigning a certain amount of .collaboration on internal issues
with their antagonists, as evidenced in a recent speech by Com-
munist leader Togliatti, who mentioned the possibility of collabora-
tion among citizens holding the most opposite opinions in an effort
to keep Italy out of war. Togliatti also declared that there is no
need for social competition to be resolved by a war involving
the entire world.
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FAR EAST
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3. THE PHILIPPINES: Financial crisis impendinf --US Embassy 'dift.
� Manila reports that the Philippine Government ;s available funds
have dwindled to some $2.5 million and will be exhausted by the
end of September. As a result of this critical financial situation,
the head of the Philippine Central Bank intends to approach. the
US for a budgetary 'loan of approximately $250 million, as well
as a loan of $200 million for industrial purposes.
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GENERAL
25 SEP 1950
1. Views on future of Korea--Secretary General Bajpai of .t IA 15
the Indian Ministry of External Affairs has expressed to e 4 is
US Embassy New Delhi the hope that North Korean forces
would be trapped below the 38th Parallel and military
operations thereby ended. Bajpai said that India felt that
extension of military action north of the Parallel was gen-
erally not in the interests of peace and he emphasized
that India attached the greatest importance to a unified
and free Korea after the question of aggression was re-
solved.
Meanwhile, the British Delegation to the UN has
shown the US Delegation a draft resolution proposing the
creation of a UN Interim Commission to conduct prelimi-
nary discussions with North Korean representatives re-
garding the future of Korea. The proposed commission
would inform the North Koreans that any UN forces enter-
ing North Korea would do so for the purpose of maintaining
law and order until a unified Korean Government had been
established following UN-supervised elections throughout
the country. The UK draft also provides for the establish-
ment of a UN Unification Commission to supervise-the
elections and to assume the functions of the present UN
Commission on Korea.
EUROPE
� 2. GERMANY: Attitude toward rearmament--According to US
High Commissioner McCloy in Bonn, Chancellor Adenauer's
military adviser, General Schwerin, has stated that the
Federal Republic could recruit 100,000 men and have five
German combat divisions ready within 12 to 18 months.
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Schwerin added that it would then be "relatively simple"
to expand "rapidly" to 15 divisions, provided a draft was
instituted.
Deputy High Commissioner Hays reports that for
the first time the Federal Republic is showing signs of
willingness to agree to only emergency federal control
over the authorized 30,000-man police force. (Chancellor
Adenauer probably hopes to be asked by the Western
Powers to create a German military force in the near
future.)
3. YUGOSLAVIA: Food situation continues to worsen--US C. (A 1 tert
Embassy Belgrade reports that the over-all estimate of
crop yields continues to decline as the harvest of corn,
sugarbeets, and late potatoes progresses. Heavy slaughter-
ing of livestock is taking place in anticipation of coming
winter feed shortages, but there is no evidence of a Yugo-
slav effort to arrange for imports of bread grains or live-
stock feeds to make up the food deficit.. The present
government plan is apparently to secure the minimum
requirements of sugar, beans, and fats, and one Yugoslav
official has indicated that an immediate 10 percent cut in
bread rations for all consumer categories is being con-
sidered. The Embassy feels that such a reduction would
be grossly inadequate to close the food shortage gap.
FAR EAST
4, INDOCHINA: Prospects for Viet Minh offensive--US
Legation Saigon reports the opinion of French High Com-
missioner Pignon that, while more than one of the border
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posts in the northern province of Tonkin may have to be
abandoned in order to conserve French mobile reserves
in the Hanoi area, there is no danger of any important
Viet Minh offensive movement in South Vietnam. Pignon
stated that a Viet Minh attack in the pacified Phat Diem
region of southern Tonkin is probable "shortly" but that
the French were not "particularly worried" because
troops could be sent into the region by sea. Pignon added
that there was "absolutely no evidence" that Chinese
Communist troops had participated in the recent Viet
Minh capture of Dongkhe.
US Embassy London, meanwhile, reports that
the UK Foreign Office has revised its over-all estimate
of the military situation in Indochina and now feels that
a general Viet Minh offensive is possible in the near
future. Citing field reports indicating October as the
probable time for a Viet Minh offensive, the Foreign Wive
declares that the present French attitude appears to be
�`unwarrantably complacent.''
"nfr.
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TOINFI
GENERAL
1. Soviet views on Austrian High Commission--The USSR,
in response to the US note which requested Soviet parti-
cipation in the Western decision to appoint civilian High
Commissioners in Austria has described the Western
;proposal as "imparting noihing new to the exiStigg control
mechanism in Austria. The USSR specifically rejected
the Western assertion that the appointment of civilian
High Commissioners would ease Austria's occupation
burden.
EUROPE
29 SEP 1950
1401
�et4 /5
2 GERMANY: Reaction to Foreign Ministers' communique-- e 1
US High Commissioner McCloy in an estimate of prelimi-
nary German reactions to the recent Foreign Ministeri'
communique believes that a favorable atmosphere has been
created for the negotiations which must now follow between
the High Commission and the German Federal Government.
McCloy adds that if the Western Powers can implement
their commitments without undue delay, they should achieve
real progress in Germany both in terms of the East-West
struggle and the development of German democracy.
FAR EAST
3. INDOCHINA: French hesitancy in creation of national armies-- 5/7T.5
US Legation Saigon, in the course of a detailed review of
French proposals for US military aid to Indochina, is "espe-
ciallyAlqturbed" by the possibility that the French contem-
plate no "real increase" in the total number of native forces
E T
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under arms. Pointing out that the Vietnamese will to fight
may well be the missing key component in a solution of the
Indochina problem, the Legation expresses its belief that
a "fairly rapid" solution requires greatly increased native
forces and that the value of the concept of a national army
will be dissipated unless both Bao Dai, the Cambodians
and the Laotians are consulted and their desires met to
the extent permissable; The Legation strongly urges that
the role the US is to play in relation to such national forces
be defined during negotiations on the French request for
aid. Stating that the military elements of a solution to the
Indochinese problem cannot be divorced from the political
aspects, the Legation concludes that delay in the creation
of national forces has been due not only to French hesitancy
to make such a concession but also to the skepticism in
some French and US military circles regarding the value
of "native troops."
4. BURMA: Top leftists expelled from Government party-- C 1rniff..1"P/0
US Embassy Rangoon reports that two prominent leftist
labor leaders have been expelled from the majority poll.
tial party in Burma, the Anti-Fascist Peoples' Freedom
League (AFPFL), as well as from the Burmese Parliament.
(CIA Comment: Expulsion of these labor leaders
will probably cause a decisive split between the moderates
and the extremists in the Burma Socialist Party, the main
component of the AFPFL. So long as the moderates con-
tinue victorious, a further improvement in Burmese rela-
tions with the West can be anticipated.)
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GENERAL
22 SEP 1950
1400
1. Danish concern regarding 38th Parallel--US Ambassador
Anderson in Copenhagen transmits the opinion of the Danish
Prime Minister that a crossing of the 38th Parallel by UN
forces in Korea would be a catastrophe which would rapidly
dissipate full Danish and European support for the US and
the UN. (Presumably the Prime Minister was thinking of
a crossing of the 38th Parallel by UN troops without specific
authorization from the UN.)
2. Danish and Norwegian views on West European defense--
According to the US Ambassadors in Copenhagen and Oslo,
although generally favoring the establishment of a unified
NATO military command and German participation in the
defense of Western Europe, the governments of Denmark
� and Norway will be unable to give firm approval at the
� 25 September NAT Council Meeting since such action re-
quires further consultation and final sanction by the parlia-
ments of the two countries. The Norwegian Storting is now
In session, but the Danish Rigsdag does not convene until
4 October. Both countries are opposed to general German
rearmament and the creation of a separate German army
and will insist upon integration of whatever German forces
are authorized. Minor constitutional problems may arise
concerning a unified command, but none are foreseen which
cannot be overcome.
C IA/3'
C�I A iel-Alti/
CIA) PI-410
C14 /5
3. UK doubts "general offensive" begun by Viet Minh--US a 14 / 5
Embassy London forwards the informal opinion of UK IA /5
Foreign Office experts that present Viet Minh military
action in the Indochina frontier area will be limited in
RET
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character and that the long-heralded "offensive" will prob-
ably be delayed "for several months at least," primarily be
communications with Communist China are still in-
adequate for the transport of essential heavy mi4tary
equipment.-
EUROPE
4. YUGOSLAVIA: Additional loans questioned--US Ambassador
Allen in Belgrade reports that the representatives of the Inter-
national Bank for Reconstruction and Development (IBRD)
now in Yugoslavia have expressed their "strong opposition"
to additional dollar loans, which they consider Yugoslavia
� would be unable to repay without drastic revision 1n its: in-
vestMent program. The IBRD � representatives pointed out
that Yugoslavia, despite the $55 million credits already ex-
tended by the Export-Import Bank, is running an annual balance
of payments deficit of $100 million. In reply, Ambassador Allen
stated that the Yugoslavl Government was counting heavily on aid
from the International Bank and would find it politically difficult
to request any aid which would imply a change in its "neutral"
position. Allen also expressed the belief that if the long-term
IBRD loans were not made, Yugoslavia "might well fall under
Cominform domination again."
��� � Aft
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(CIA Comment: CIA believes that Yugoslavia's
failure to obtain credits from an international agency would�
weaken its "independent position" between East and West
and add to Tito's rapidly growing political and economic dif-
ficulties.)
5:' EAST GERMANY: Soviet view of East German status--During
a recent conversation in Bern regarding possible East Germai.
participation in an East-West trade agreement, the SOviet
Charge remarked to Executive Secretary Myrdal of the UN
Economic Commission for Europe that the Soviet Government
was no longer in a position to speak for the East German
Government because the, latter represents an independent state.
Myrdal was somewhat puzzled by this information and uncertain
as to how much importance should be attached to it.
�FAR EAST
5/s
6. TAIWAN: UK suggestion for UN commission on Taiwan--The e.
UK Delegation to the UN has shown the US Delegation a "ten-
tative" draft resolution proposing that the General Assembly
establish a commission to study the Taiwan issue. The pro-
posed commission would consult all interested parties, in-
cluding the Chinese Communists, and make recommendations
to the Assembly concerning the future of Taiwan. The UK
draft also suggests that, pending Assembly consideration of
the commission's report, a solution of the Taiwan problem
should not be attempted by force and that Taiwan should not
be used as a base for attacks on the Chinese mainland.
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7. CHINA: Nationalists oppose UN discussion of Taiwan--
US Embassy Taipei reports that the Chinese Nationalist
Foreign Minister has delivered an "authoritative" state-
ment that his government would continue to oppose the
discussion of the ultimate status of Taiwan in any organ
of the UN. In explaining this position, the Foreign Minister
pointed out that his government had no objection to moves
calculated to gain international support for the maintenance
of a "truce status" for Taiwan so long as Korean hostilities
continued, but that in the absence of information regarding
US intentions in the proposed UN discussion, his government
was unable to make any commitments regarding long-range
questions.
s7.5
8. INDONESIA: UN membership application to be filed--US 5/ 5
Embassy Jakarta reports that the new Indonesian Cabinet has 5/
authorized its representative in New York to file at his dis-
cretion Indonesia's application for membership in the United
Nations. The Embassy informant also discounted entirely the
rumor that his government would like to have India sponsor
Indonesia's application for UN membership.
4
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TORN -E T
GENERAL
1. Soviet UN delegates' views on Korea--During a recent
conversation with members of the Ug Delegation to the UN,
the Byelorussian and Ukrainian delegates emphasized the
view that the Korean war should be ended promptly. The
two Soviet delegates also remarked that the North Koreans
might soon make a peace offer and expressed the belief that
the war should be settled by the Koreans themselves without
foreign intervention. In reply to a comment that the Korean
war had developed pinto a "big affair," the Soviet delegates
observed that, at least by Soviet standards, it was a small
and unimportant matter.
21 SEP 1950
1399
2. Armament shipments for North Koreans reported--At the e
request of the Department of State, the British Embassy in
Washington has cabled Hong Kong asking for investigation
� and possible detention of the Polish merchant vessel WARTA,
reportedly about to sail for Taku Bar with armaments
destined for North Korea. The Department has advised US
;Vonsul Hong Kong that the Departments of State and Defense
.are considering the possible necessity of having General Ma.il7
Arthur direct the seizure of the vessel if it proceeds toward
Taku Bar with the armaments cargo.
/3 US views on Chinese Nationalists and Taiwan--The Depart,- Vii 31
ment of State has informed Embassy Taipei that, in view of
the fact that the Taiwan question has been placed before the
UN General Assembly, the US is not in a position to enter
into long-term commitments with the Chinese bfationalist
regime. In the Department's opinion, the UN offers the best
channel for a peaceful and just solution of the problems center-
ing on Taiwan.
_ 1 -
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�EUROPE
4. AUSTRIA: Austrians reassesslg their position--US Charge
Dowling in Vienna reports that, as a result of the growing
realization among the Austrian people that the Western
Powers may not be able to negotiate an Ahstrian treaty with
the USSR, there are uneasy stirrings toward an active Aus-
trian role in the East-West struggle. In the Western zones
of Austria, the new attitude is reflected by rural movements
for the formation of resistance bands against an eventual
Soviet invasion. In the Soviet zone of Austria, although the
attitude of local officials and political leaders is still un-
waveringly firm, the population as a whole is showing less
resistance to Soviet pressures and a tendency to come to
terms with the occupation authorities. The Charge comments
that the Austrians, rather than turning toward the West for
further help, are attempting to find within themselves the
resources with which to meet any coming crisis. Dowling
has no great anxiety regarding Austria's allegiance to the
West, but asserts that the West risks losing the practical
values of that allegiance unless more dramatic evidence of
Western support of Austria is forthcoming.
5. UNITED KINGDOM: Effect of steel nationalization--US Embassy CI8
London estimates that the British Government's decision to
proceed with steel nationalization has plunged the country into
party strife, with a resulting setback in Britain's sense of
urgency regarding the international situation. The Embassy
feels that this bitterly controversial issue will almost elimi-
nate the cooperation which the Conservatives would have given
and which is particularly necessary in the conduct of foreign
affairs and defense matters.
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(CIA Comment: CIA agrees that Labor-Conservative
political strife has been greatly increased by the government's
decision on the steel issue, but doubts that this controversy
will appreciably reduce the present degree of Conservative co-
operation in basic defense and foreign policies.)
FAR EAST
6, THE PHILIPPINES: Huk strength increasing�US Embassy a hei
Manila, in summarizing the activities of the Huk dissidents
in the Philippines� thus far in 1950, reports that Huk bands,
which were largely concentrated in central Luzon, have now
spread to almost all parts of that island and to Panay and
Mindanao as well. The Embassy considers that Huk expansion
placed particular emphasis on northern Luzon areas adjacent
to the Formosan straits, probably in the expectation of receiv-
ing material assistance from the Chinese Communists follow-
ing the capture of Taiwan. The Embassy believes that although
little or no aid from mainland Asia has reached the auks,
there are prospects for increased Huk activity now that the
rainy season is ended. In the Embassy's opinion, coordinated
Huk raids may take place on such anniversary dates as Natiopal
Heroes' Day, 30 November.
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EUROPE
1. YUGOSLAVIA: Food situation reported worsening--US
Ambassador Allen in Belgrade reports that the Director
of CARE operations in Yugoslavia, after returning from a
two-week trip through the drought-stricken provinces-,of
Croatia and Dalmatia, expressed the conviction that the
food situatfoi has reached "disaster proportions." The ��
CARE Director believeWthat "only large-scale mobil:UM:1t1i
Of interaational assistance can prevent great starvation�
this winter.
20 sti- 1950
1398
vt)5
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
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43008 IS 'RET
GENERAL
� i. Soviet "determination to avoid conflict" renorted�US
Minister Vincent in Bern reports that the French First
Secretary; as a result:a an extraordinary 3-hour con-
versation with the Soviet Charge there, has expressed the
opinion that the "Russians really have the wind up over.
US and Western Europe's current policies.and determination
to mobilize against aggression." During the course of the
conversation, the Soviet Charge stated with considerable
elaboration that "Russia's deilie for peace was so strong
that even US warmongering and azgresstoticould not check
Soviet determination to avoid conflfit"' The:BOviet Charge
made no attempt to keep private thi bottirersation, which
took place at a Bulgarian Legation keteption. The French
Secretary received the impression that the Soviet Charge
was "desperately in earnest to perform an assigned task
and sincerely fearfuEol, being misunderstood.'
a
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11 9 SEP 1950
1397
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INDOCHINA
3. 8 SEP 1950
1. Viet Mirth attack French border post--US Legation Saigon
reports that a Viet Mink attadk in strength has begun at
Dong Ke, a secondary garrison town midway between the
two strategic northeastern border posts of Langson and
Cao Bang. The post at Dong Ke, which is held by two com-
panies of the Foreign Legion and an understrength company
of Vietnamese troops, is reported to be holding under heavy
artillery and mortar fire, and French paratroopers from
Hanoi have been dispatched to reinforce the garrison. Viet
Mirth attackers reportedly total five battalions, and another
rebel group of the same size is said to be in the area. Pre-
liminary French reports claim that the rebel battalions,
recently returned from training in Communist China, are
better armed and trained than any encountered thus far. Al-
though aware of possible French over-optimism, legation
Saigon concurs in the French view that the attack on Dong
Ke is not the beginning of the long-promised Viet Mirth
counteroffensive.
'7
Doeument No.
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GENERAL
1. Embassy Moscow's views on Soviet trade pact--US Embassy
Moscow expresses -the opinion that the successful conclusion
of a Soviet-Iranian trade pact, in the absence of some real
measure of economic assistance fromthe West woiikr be cal-
culated by the USSR to strengthen those Iranian elements
favoring a pro-Soviet orientation and to counter the expected
alignment of the Razmara Government with the West. The
Embassy considers it typical of Soviet policy that friendly
overtures can be made to Iran at the same time subversion
is being encouraged by radio propaganda beamed from Soviet
territory. The Embassy believes that a speedy and appreciable
loan or grant-in-aid, as recommended by US Ambassador
Grady in Tehran, would: (a) bolster the Iranian economy; (b) re-
duce the effectiveness of Soviet efforts to draw Iran away from
the West; and (c) strengthen the Iranian Government's- bargaining
position in connection with any firm Soviet trade offer by allow-
ing Iran time to explore alternative trade possibilities.
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS2 D0 CU4E1/1 R 9
N1T.
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TOET
ENTIA1
KOREA
g SR 1V
1. UN forces driving toward Seoul from Inchon--In the first
major counter-move since the North Korean attack, UN
forces at near-division strength are attempting to cut the
vital North Korean supply lines running through the Inchon-
Seoul area. Elements of the US 1st Marine Division have
already secured the island of Wolmi in the Inchon bay; and
other UN forces which landed at Inchon are moving inland
toward Seoul against light enemy opposition. Although there
has been RO official report indicating how far the UN forces have
advanced toward Seoul (22 miles from Inchon),the North Korean
radio at Pyongyang acknowledged the UNTanding at Inchon and
stated that the "invasion forces" were hallway to the South
Korean capital city. Meanwhile, South Korean forces are re-
ported to have landed on the east coast north of Pohang in an
attempt to cut the North Korean supply lines in that area.
EUROPE
2. GREECE: New government considered unlikely to last long.-
USCharge Minor in Athens express the opinion that the new
Greek government (a coalition of Liberals, Populists, and
ip
So Democrats under the premiership of Venizelos) is
not
ular with the press or public and affords small OW.
pect or efficiency or stability. Minor *neves that a cohesive
governmental policy will be even less possible than usual in
coalition governments because no one party has exclusive
responsibility for any one sector of government activity. The
charge reports that, in contrast to optimistic public statements,
I the King and politicians privately voice the opinion that the
government will not last many months, a feeling that is general
in Greece. Minor adds that the accommodating attitude between
1394
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the Populists and the other members of the coalition is not
likely to continue and that there are already reports of some
differences between Tsaldaris and Papandreou. In Minor's
view, the formation and composition of the present government
demonstrate that in the next crisis the US should press strongly
for immediate general elections.
NEAR EAST-AFRICA
3. IRAN: USSR reported ready to conclude barter agreement--US
Ambassador Grady reports that Soviet Ambassador Sadchikov
has informed Prime Minister Razmara that the USSR, in response
to Iran's proposal for a barter agreement, is prepared to take
unlimited quantities of rice and considerable quantities of other
Iranian products. -Sadchikov also stated that the USSR wishes to
commence discussions at once regarding Iranian gold and dollars
now held in Moscow and requested Razmara to hasten the appoint-
ment of Iranian members to the Border Commission (designed to
resolve disputed boundary areas). Razmara told Grady that, de-
tecting a note of urgency in Sadchlkov's conversation, he believes
the USSR may be trying "to beat the USA and the UK to the punch"
in aiding Iran economically. According to Grady, Razmara now
believes that the USSR is serious and that the negotiations may
be concluded in two or three weeks. Grady points out that the
USSR would gain considerable propaganda value by concluding
an agreement before any US aid is received by Iran.
4. PALESTINE: Israeli aggression rumored�The US Legation in Cbq
Amman (Jordan) has learned from the British Minister that per-
sistent rumors have been circulating in Jerusalem concerning
Israeli intentions to take aggressive action on or about 19 Sep-
tember against Mt. Scopus (currently occupied by Jordan forces
as provided by the armistice agreement). According to the
Legation, the British Minister gives much weight to these reports.
The Legation believes that any Israeli armed action against Mt.
Scopus would be resisted by Jordan's Arab Legion.
rf
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T E C
IFF Oft
EUROPE
1. YUGOSLAVIA: ImpendinA food crisis--US Ambassador Allen
in Belgrade expresses-the �Onion that Yugoslav ability to
cushion the shocrof the ihipending food shortage is limited
because of the-heavy� coOtnitments to Yugoslavia's capital
investment program: Allen adds that even with heavy
slaughter of Yugoslav livegitock, the total food and feed
imports necessary to avert starvation of the people will
exceed one-half million Mid may reach one million tons
before the1951 harvest. Allen feels that any emergency
relief measures must emphasize low cost and high nutri-
tional value of the food imports. The Ambassador com-
ments that Yugoslavia might be able to divert some portion
of its dollar earnings to food purchases, but doubts if such
action can be taken soon enough to provide a sufficient
volume of food imports to meet immediate requirements,
'ET
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T SOF
� EUROPE
1. BELGIUM': Prospects for present government�US Ambas-
sador Murphy in Brussels transmits the opinion of former
Belgian Premier Eyskens that the prbsent Belgian Govern-
ment has a good chance of remaining in power until after the
Christmas'-holidays, although a revision broadening the base
of the government is inevitable. Eyskens also believes that
the military program of the present government has a reason-
able chance of success in the October meeting of the Belgian
Parliament.
(CIA Comment: CIA concurs in Eyskens' estimate
regarding prospects for the Belgian Government, but believes
that the military program may meet with sufficient parlia-
mentary opposition to delay its passage beyond October. The
government's proposal to extend the period of compulsory
military training will be the particular target of the opposition.)
Eyskens' views on German rearmament--Ex-Premier
Eyskens considers considers Western Germany the ''key to European
defense," and says that Belgians will have no confidence in
European security runtil West Germany is equipped with from
15 to 20 panzer divisions. The former Premier believes that
the question of German rearmament now overshadows every
other European issue and that there can be no solution unless
the US talses tpe lead in supporting such a rearmament. Eyskens
feels that a future German army must be a component part of
a European military establishment and believes that Germans
at the present stage would ,be *Ming to accept French high
command, but that this question might possibly be solved later
by some systeth of rotation.
(CIA1Comment: CIA believes that although Eyskens'
statements on the rearming of West Germany represent the
sentiment of the Belgian people, Belgium would be, most re-
, luctantto permit German rearmament to take precedence
.`ovir'that of the North Atlantic Treaty nations.)
Document No.
Io
I 3 SEI-' 1950
139c,
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T
T
tiu
GENERAL
P. SEP MO
1391
o Schuman's views on German rearmament�According to US 3 TS
Embassy London, French Foreign Minister Schuman has ex-
presged the view that German rearmament is at present
inadvisable, (Schuman used rearmament in a broad sense
to include both establiphment of a German national army and
the manufacture of ordnance items in Germany.) Although
Schuman did not appear "absolutely set" on the nature of
the proposed West German police force, he felt that the
French would favor Nacing, such a force under control of the
individual German states, rather than under the federal govern-
ment. Schuman saw no objection to a West German gendarmerie
having a common organization, training, and uniform, but he
stressed the importance of not giving the Germans a "taste
for arms," and expressed apprehension lest any federal police
force fall under the eventual command of some "old school"
German militarist.
Document No. 0 (4.
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NEAR EAST-AFRICA
ll44.. /95-sl
z5ro
1. PALESTINE: Tri ar....p.,ILtp_OL.1 asked on box_yier9=a--The a /19
Jordanian-Foreign Ministry has handed US Minister Drew in
Amman a note requesting action under the US-UK-French
Declaration of 24 May 1950 against a recent Israeli violation
of Jordanian territory which Jordan claims Israel is attempting
to justify with a "faked map. (The Tripartite Declaration
� pledged US-UK-French action to prevent violation of existing
frontiers and armistice lines). According to the Jordanians,
the area into which the Israelis have moved is part of the
original Transjordan mandate and thus not covered by the
armistice agreement between the two states. Drew states
that the Jordanian Foreign Minister, who appeared unimpressed
by his argument that the Tripartite Declaration was not intended
to apply to minor border incidents, has also invoked the Anglo-
Jordanian Treaty of Alliance. Drew adds that the Jordan Cabinet
has unanimously voted to expel the Israelis forcibly but comments
that although the government is known to be "extremely agitated,"
this move should be interpreted as a political maneuver made
with the knowledge that the UK would prevent use of the Arab
Legion for that purpose.
(CIA Comment: This border violation, although minor
In its0.1 and of a type which has cropped up frequently under the
Jordan-Israeli armistice agreement, could become a difficult
problem for the Western Powers if the incident is not settled by
diplomatic means before additional tension as generated. At
the time the Tripartite DeclaratiOn was issued, the Arab states
were skeptical about its usefulness in preventing a violation at
existing "frontiers or armistice lines," and they will undoubtedly
regard the present case as a test of Western sincerity in the matter.)
THE AMERICAS
..., ,,
2. BOLIVIA: Public disturbances rematsit--US Ambassador
CIPLI.
- --..
Florman in La Paz expresses the opinion that the recent civil i
violence involving students and hoodlums, in that city, may result
in more serious trouble for the government. Florman feels that
the current disorders are being instigated by anti-government
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elements, including the right-wing National Revolutionary
Movement, the Party of the Revolutionary Left, Communists,
and other subversive groups.
(CIA Comment: Public disorders may reach serious
proportions, possibly even threatening the stability of the
government, if the stronger dissident elements now apposing
the government combine against it.)
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GENERAL
US favors UN commission to hear Chinese Communists
TheDepartment of State has informed US Ambassador
Austin, in discussing the problem of Chinese Communist
participation in the Security Council debates on Formosa,
that although the US does not recognize the Peking regime
as the government representing China the Department has
decided that it is to the interest of the US to have the SC
air Communist complaints in the Formosa case. The
Department takes the view that the Chinese Communists
would have to be given a hearing, although not necessarily
in the initial stages of the debate, before the SC could take
final action on the question and points out that failure to
do so would offer the Communists a pretext to claim that
self-help is their only remaining resort. The Department
indicates the best procedure would be for� the SC to initiate
an impartial inquiry by a commission which would give
the Communists a full hearing and make a report, a pro-
cedure which might avoid the necessity for Communist
participation in a hearing before the full SC.
YUGOSLAVIA
2. Severe crop shortages expected--The US Agricultural
Attache in Belgrade has been given official Yugoslav
estimates of current crop conditions which indicate such
Vstantial shortages of grains and other food that there
iv'TIN9pLte sufficient Yugoslav supplies to feed the people
anctliigNock through the winter. The Agriculture Attache
acc6pts as realistic the Yugoslav figures which indicate
that 19O production, as compared with 1949 production,
will be; 78 percent in wheat, 68 percent in corn, and 69 per-
cent in potatoes. Yugoslav agricultural officials believe
T mEr T
9 SEP 1950
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that without substantial imports of flour, feed, fats, beans,
and grains some starvation before spring is definitely in
prospect. The Embassy considers that this situation pre-
sents "the most grave threat to the Tito Government yet
encountered."
(CIA Comment: CIA concurs with this estimate
as to the seriousness of this unexpected setback to Yugo-
slav economic progress.)
NEAR EAST-AFRICA
3. IRAN: Pro-Soviet, anti-US trend in opinion noted--The
US Military Attache in Teheran reports that public opinion
in Iran continues to take a more pro-Soviet and anti-US
trend. He indicates that the Iranian press is increasingly
tolerant of the Russians and continues to be intermittently
critical of the US. The MA also notes an increased dis-
appointment over the delay in US economic aid and observes
that Prime Minister Razmara has predicted a serious situ-
ation this winter, especially in Azerbaijan.
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GENERAL �
4. 6 SEP 1950
1388
1. Western Union favors seating Communist China in UN--
The Secretary General of the Netherlands Foreign Office
has expressed to US Ambassador Chapin at The Hague the
view that political thinking among the Western Union nations
is becoming morie and more. staklified in. favor.of admitting
the Chinese Communists to the UN without delay. The
Dutch official said that this viewpoint has been kept "behind
the scenes" because of a desire to avoid showing disunity
during the Korean crisis, but that there was growing appre-
hension among the Western Union nations lest the increasipg
tension between the US and Communist China extend the
Korean conflict into a world war.
2. Iranian views on Soviet trade negotiations�US Ambassador
Grady in Tehran reports that Prime Minister Razmara has:
(a) emphasized that he would not begin formal trade negotia-
tions with the USSR until a settlement had been reached
regarding the gold and foreign exchange owed Iran; and (b) pro-
posed the use of some trade mechanism other than the ex-
isting Soviet commercial agency in Iran, which Razmara feels
could be used to dominate Iranian traders and to carry on sub-
versive activities. Grady points out, however, that Razmara
cannot be indifferent to the prospect of *concluding a trade
agreement since Iran's northern provinces have alknost no
trade outlets except the USSR and since conclusion of a
a / atisfactory agreement, involving possibly $10 million worth
bf goods, would provide immediate economic benefits and
*could materially strengthen his position.
4140
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3. Iceland prepared to discuss defense program--Foreign
Minister Benediktsson has advised the US Minister in
Reykjavik that the Icelandic Government has authorized
him to discuss a defense program for Iceland in con-
junction with NATO while he is attending the September
'Meeting. Benediktsson emphasized that he only has
authority to "discuss peacetime defense program" and
cannot actually commit Iceland to such a program.
(CIA Comment: The willingness to discuss a peace-
time defense program for Iceland represents a radical -
change in policy, which up to this time has been to evade
making any peacetime defense commitments, even as a
member of NATO,)
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KOREA
iE T
1. Enemy pressure increasing along entire UN front--North
Korean forces are exerting heavy press ire *Jong the entire
UN defense line, but there have been on1P slight changes in
position during the past 24 hours._ Massed North Korean
troops are exerting extreme efforts to exploit the near
breakthrough they achieved in the Kyongju-YOngchon area;
counterattacking UN defenders, however, are managing to
hold their new positions. Enemy forces along the southern
front are following up their sustained artillery-mortar
barrage of the past 24 hours with local attacks which may
develop into a major drive toward Pusan. The combined
UN air forces made their heaviest tactical assault to date
with 440 of the record 620 sorties being flown in support
of UN ground troops in the northeast sector. US heavy
bombers struck iron works in Chongjin, located along the
east coast in North Korea.
GERMANY
2. UK approves creation of West German_rederal Police--
According to UK Foreign Secretary Bevin, the British
Cabinet has officially approved the estaklishment of a
West German Federal Police force of 100,000. The
Cabinet believes that a national German army should not
be permitted, but Bevin� is authorized to approach the US
and France to negotiate agreement for the creation of a
German federal.police force, modeled after the E ast
German paramilitary police organization and designed
to meet any aggressive move by the East Germans, The
Cabinet also believes that West Germany should be per-
mitted to make an industrial contributiOn to Western
ntrengtho
� V;;,40
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SY:
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KOREA
1. UN forces counterattack in northeast�UN counterattacks are
halting the advances of some North Korean elements in the
breakthrough near Yongchon and Kyongju, but other enemy
elements pressing forward with considerable armor are
threatening to cut the vital transportation network connecting
Taegu with the northeast and coastal defense areas. Air
activity over the combat area is being resumed after being
hampered by unfavorable flying conditions during the past
24 hours and reserve elements of the US 24th Division are
being rushed northward to stem this latest enemy threat.
Other sectors along the UN defense perimeter are relatively
quiet.
US Embassy reports that on 4 September General
Walker ordered the immediatotransfer of UN military
headquarters from Taegu to PUsan. General Walker will
remain in Taegu, however, with a skeleton staff to direct
operations. General Walker also advised the South Korean
Prime Minister to transfer ROK military headquarters to
Pusan. The South Korean Home Ministry will remain in
Taegu for the present.
Pi . �
f 1) 3
o7
6 SEP 1950
1386
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Till STOCUMENT.
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claw 62
GERMANY
ET
1. Adenauer submits modified request for armed police
USDeputy High C9nuniSsioner Hays in Germany reports
that Chancellor Adenauer 'has� submitted two letters to
the Commission modifying his former advocacy of a heavily
armed Federal police as a counterforce to the Soviet Zone
paramilitary police organization. Adenauer now requests
a motorized-Federal police fore of 25,000 men, to be ex-
panded later to 60,000. These police would be billeted in
barracks, armed with automatic hand arms, heavy and light
machine guns, hand grenades, and mortars, and would have
at their disposal various support units. Because Adenauer
fears that the Soviet Zone German police will invade West
Germany as soon as the East German regime has been given
independent status by the USSR, he also asks that the occupa-
tion governments guarantee to repel any attack by the East
Germans. Adenauer believes that a public statement of such
a guarantee would both strengthen West German morale and
have a deterring effect on the authorities in East Germany
and the USSR.
o SEP 195U
1385
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(11
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Nato:3 0 MAR 78
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PORTUGAL.
3. Embassy assesses Portuguese Cabinet changes--US
Ambassador MacVeagh in Lisbon expresses the view that
the reorganization of the Portuguese Cabinetwill prove
favorable to US security interests because the men selected
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to head the two new superministries of the Presidency
and of Defense are known to be friendly to the US. Mac -
Veagh reports that ECA affairs have been placed directly
under the new Ministry of the Presidency, which is de-
signed to assist the Prime Minister. The Ambassador
describes the new Foreign Minister, Dr. Paulo Cunha, as
a "young, vigorous, able lawyer, reputedly favorable to
Allied interests."
(CIA Comment: CIA agrees that these Cabinet
changes will prove favorable to US security interests and
believes Prime Minister Salazar's position will be strength-
ened by the placing of the key defense and domestic policy
ministries under closer control of his office.)
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24993
2 SEP 1950
FAR EAST
1. INDOCHINA: French militared--US Consul c
General, Hanoi, has learned from two "well-informed and
dependable" French officials in,Tonkin that the Viet Minh
has 20,000 uniformed men just across the border in China,
in part authentic followers of Ho Chi Minh and in part local
bandits. The officials estimate' thAt the.Viet Minh can recruit
up to 60,000 to 70,000 troops in the border area in addition
to the already growing Viet Mt* strength in Tonkin. The ,
officials expressed their belief that regular Chinese-Communist
forces, concentrated on the border will remain a "passive
but menacing back-stop" for the Viet Minh rebels and their
presence in South China will permit Ho's forces to move back
and forth across the border. In view of this Situation the
French officials deplore both the "Maginot, mentality of the
French military commander in Tonkin and General Carpentier's
distrust of the powerful anti-Communist Dai Viet party (the
only organization in Vietnam capable of carrying on a grass
roots anti-Viet Minh campaign).
Document No. 0 c�C
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ET
KOREA
1. Mirth lioreans launch all-out offensive--The North Koreans
have launched an all-out offensive in the south and central
sectors aimed at cutting off Masan and capturing the main
supply port city of Pusan, 35 miles to the east. Along the
south sector front, UN forces are maintaining most of their
defense positions and reserves are being moved forward.
In the lower central sector, North Koreans in considerable
strength have crossed the Naktong River at three widely
separated points. Near Tuksong, about fifteen miles south -
west of Taegu, other enemy attacks were repulsed by ele-
ments of the US 1st Cavalry Division. Other sectors re-
mained relatively quiet.
SCHUMAN PLAN
s su � ort for Schuman Plan re orted�US repre-
sentative An�rews a as ourg repor a ere appears
to be diminishing support for the Schuman Plan in its present
form among the West European leaders who participated in
the recent meeting of the Council of Europe Assembly. One
French representative told Andrews that he was confident
the Plan could be modified to meet UK objections; and British
Conservatives talked confidently regarding prospects for the
alteration of the Plan to suit British desires. Other British
representatives told Andrews that French Foreign Minister
Schuman expects the present version of the Plan to be "watered
down" considerably before it is submitted to the French Parlia-
ment. French economic adviser Monnet, who is the real author
of the Plan, is also reportedly resigned to a weakening of the
*control authority envisaged in the present Plan.
-
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(CIA Comment: The coal-steel pool eventually
established under the Schuman Plan will fall far short of the
original Schuman aim of fully integrating these industries,
primarily because the international control authority will
not be given adequate powers by the participating national
governments. )
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KOREA
ET
I. Heavy fighting continues in Pohang area�Heavy fighting
continues in Pohang where UN forces are holding the
invaders near the edge of the city, but no substantial
changes have occurred in the 120-mile defense perimeter.
Increasing .enemy activity in the rear areas of the central
and north sectors may be preparations for renewed attacks
in these sectors. UN naval and air force units continued to
make heavy strikes against air fields, industrial areas,
railroads,and enemy troop concentrations during the past
24 hours.
0c3
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TO THE DECLASSIFICATION 02
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KOREA
I. UN defenders forced out of Kigve--Enemy pressure forced
South Korean troops in the east to withdraw from Kigye to
positions 500 yards south of the town; heavy fighting con-
tinues in the Pohang area. Other sectors have remained
relatively quiet, with some increase in enemy activity at
the south end of the defense line: UN naval units hit targets
In west Korea, and executed call-fire missions as requested
by grand troops. The air force attacked bridges at Seoul
and marshalling yards at Seoul, Suwon, and Namwon.
EUROPE
3 0 AUG 1950
1381
2. Dutch Foreign Minister depressed by lack of European unity--
US Ambassador Chapin at The Hague reports that Dutch Foreign
Minister Stikker 'was very depressed during a recent interview,
feeling that the world situation has deteriorated rapidly during
--
the last two weeks. Stikker seemed especially concerned with:
(a) Dutch reports from Peiping of a large Chinese Communist
build-up in Manchuria 4 (b) the worsening situation in Berlin;
(c) the tendency of the Consultative Assembly of the Council
of Europe to create a deeper division between the UK and France;
(d) the basically unstable political situation in France with the
"ever-present menace of domestic Communism"; (e) the dead-
lock between the Netherlands, Indonesia, and Australia on the
New Guinea issue; and (f) the possibility of further deep cuts in
ECA aid. Stikker feels that the Russians are fully aware of the
increasing division between the European nations and recognize
that the West is at its "feeblest point in many years." Stikker im-
plied that "all would be lost" unless the nations of Europe, led by
the UK and France, bury their differences and move forward in unity.
Immigrant Ni.
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The Dutch Foreign Minister commented, however, that France
is badly infected with Communism and that the UK still appears
unable to shake a century-old tradition of avoiding leadership
on the continent.
3 West German steel problem-41S .Embassy London reports
that, during an informal discussion with a British official
of the problem of German steel production (which is already
above prescribed levels), the British official appeared re-
ceptive to the idea of permitting an expansion of German steel
output. The British representative felt, however, that any in-
crease in German production should be devoted to defense
requirements and to easing shortages arising out of them and
that any changes in the regulations on steel output should be
made when the Occupation Statute is relaxed. The British re-
presentative suggested that specific proposals be developed
for revising the restrictions on all West German industry to
facilitate a US-UK-French agreement before thy end of 1950.
4. West Germans to propose Occupation Statute revision--US
High Commissioner McCloy in Bonn reports that the Federal
Republic plans to recommend that the US-UK-French Foreign
Ministers consider at their forthcoming meeting three revi-
sions of the Occupation Statute: (a) declaration of a de facto
peace as quickly as legal requirements permit; (b) replacement
of references to the "occupation" by some term implying security
or protection; and (c) partial replacement of the Occupation Statute
by a convention or contractual agreements. The Germans would
also like the present "cumbersome legislative review" process to
be replaced by a system under which the Western Powers could
veto any German law contravening basic occupation principles.
Reforms of this kind would be regarded by West Germans as
"an enormous success for the Bonn Government."
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KOREA
1. Light action in south and northeast sectors--South Korean
forces made limited gains in the north and east sectors,
while UN defenders in the south were subjected to almost
continuous small-unit probing attacks. UN naval units
fired close support missions in the Pohang area; aircraft
from two carriers attacked targets along the east coast.
Air action continued in close support of ground troops,
and B-29's hit the marshalling yards in the North Korean
east coast city of Chongjin.
GERMANY
2. Adenauer now proposes "motorized" federal police-- US
High Commissioner McCloy in Bonn reports. that because
of French and Socialist opposition to Chancellor Adenauer's
proposal for a West German force to match the paramilitary
East German Alert Police, the Chancellor is now thinking
in terms of establishing a motorized federal police equipped
with small arms, machine guns, and mortars. Adenauer be-
�
lieves such a force could maintain internal order and be use-
ful in international emergencies; he added that he had already
received 40,000 applications. Adenauer believes his new
proposal will meet with the approval of Socialist leader
Schumacher. Rather than wait for time-consuming legislative
approval, Adenauer wants the High Commission to declare an
emergency and direct him to begin establishing the federal
police at once; this action, Adenauer feels, could be ratified
by the Bundestag in 60 to 90 days. Meanwhile, Adenauer
broposes to go ahead with a 10,000-man increase in the
LaencVer policeiNthich he wants reorganized to raise effi-
ciency and to eliminate subversives.
Document N�� 0
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KOREA
1. Central front quiet, two towns lost in northeast�The broad
central front remained quiet during the past 48 hours, but
UN forces suffered slight reverses in the northeast where
North Korean forces captured the towns of Uihung and Kigye.
UN naval activities were confined to suirface patrols, while
naval-based aircraft flew close support missions and bombed
targets in northeast Korea. On 27 August UN-US aircraft
flew a total of 500 missions; fighters attacked a large troop
concentration in the Kyomipo-Sariwon area (North Korea)
and B-29's bombed the northeastern industrial city of
Songjin with excellent results reported.
re
28 AUG 1950
1379
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OA
THIS DOCUMENT.
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KOREA
26 AUG 1950
1. Lull in operations continues--The continuing lull in enemy
operations along the entire front may indicate that the North
Korean forces are being disengaged for regrouping before
launching further attacks. Many of the invader's best units
suffered heavy casualties during the past weekand a. major
reorganization of enemy units may be necessary. Both sides
continued probing and patrolling operations, but. few troops
were engaged. Heaviest action occurred in the east sector,
where South Korean units made slight withdrawals from ex
tended positions, UN-US naval airplanes continued to provide
close support for ground operations, and air force planes
continued to attack enemy equipment, troop concentrations
and other targets in rear areas.
01.q.4
�
oV9
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KOREA
LT
1. Front lines remain static�No significant changes were made
in the Korean front lines during the past 24 hours. Except for
sharp local engagements, action on both sides was confined to
patrolling and sporadic exchanges of mortar and artillery fire.
In the south sector, the North Koreans continued to move re-
inforcements into the Chinju area and launched a strong attack
against the US 25th Division. This attack was repulsed after
him hours of heavy fighting. In the center sector, a night attack
against the 27th Regiment north of Taegu was thrown back.
South Korean forces in the north sector are under heavy enemy
pressure north of Uihong and have been forced to withdraw
slightly; counterattacks are now in progress. Concerning the
report of new fighter-type aircraft, reconnaissance subsequent
to the information of 24 August has disclosed no evidence of
such aircraft and no unusual enemy air preparations have been
discovered.
1377
EUROPE
2. UK: Bevin plans full British role in defense preparations-7 en? /-
Foreign Secretary Bevin has informed US Embassy London
that he is determined to see that. the UK plays its part in
European defense preparations. Bevin indicated he had
been attempting to persuade other members of the Western
European Union to announce, prior to 12 September, that
they would follow Britain's lead in extending military service
to two years. Bevin pointed out to those members that such
a declaration would be evidence to the USSR of Western Euro-
pean determination of self-defense.
Ti
ET
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3. GERMANY: Adenauer plans to ask for German rearmament-- C(PIS
According to US High Commissioner McCloy in Frankfurt, SL5
West German Chancellor Adenauer has asked political party
leaders to agree to a program under which the Federal Republic
would request the High Commission to authorize: (a) a Federal
police force equal in number and equipment to the East German
Alert Police (Bereitsch,aften); and (b) about five German combat
divisions, plus auxiliary services, for a European defense force.
He told the party leaders that the arms and equipment for the
troops would come from the US. Adenauer also wants to request
the immediate reinforcement of Western occupation troops in
Germany. Adenauer reportedly believes firmly that a European
army is the most desirable solution of the defense problem.
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KOREA
+ rIVU JUJU
1376
1. Military situation relatively unchanged--The relative quiet
prevailed on the Korean front during the past 24 hours. In
the south sector, North Korean forces are believed to be
regrouping albrii; the south coast. In the center sector, the
most important development has been the clearing out of the
communication line of the US 27th Regiment which had pre-
viously been cut by enemy forces. Meanwhile, enemy pres-
sure in this sector appears to have eased. In the north, South
Korean forces have been forced back slightly under strong
North Korean pressure. In the east, South Korean units con-
tinued to move northward. Naval action consisted solely of
patrolling and bombarding targets along the east coast. B-29's
bombed chemical plants at Hungnam with excellent results.
According to air intelligence reports, five new fighter-type
aircraft have been identified at a North Korean airbase.
WESTERN EUROPE
2. NATO strengthening proposals endorsed--US Embassy Moscow 5
has expressed its general endorsement of the recent French
proposals for the integration of European defense efforts through
a strengthening and overhauling of the existing North Atlantic
Treaty Organization(NATO) and absorbing older military entities
such as those set up under the Brussels-Pact. The Embassy
agrees with the French view that there should be: a top-level
political, economic, and military body in continuous session with
broad, delegated powers; a combined chiefs of staff committee
headed by an American; and integrated regional military com-
mands under the combined committee. The top-level organization
should be,in the Embassy's view, sufficiently flexible to permit
�
� "
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the accession of those countries not presently signatories
of the NAT but which are willing to assume mutual responsi-
bilities. The Embassy is convinced there must be some degree
of West German rearmament and utilization of West German
industrial capacity and believes a high degree of integration
of the Western Powers will dissipate Western European fears
of Germany.
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KOREA
AltiG 1950
1375
I. Little change in ground situation--The situation in the Korean
front lines remained largely unchanged during the past 24 hours
� while North Korean forces continued to press the attack along
the south coast and in the Waegwan area. In the south, elements
of the US 25th Division succeeded through limited counterattacks
in regaining ground west of Masan which was lost during the
previous day. In the center sector, six miles south of Tuksong,
enemy forces were able to reinforce their bridgehead on the
east bank of the Naktong River. Also in this sector, US forces
are attempting to reduce enemy units which have infiltrated
behind the US 27th Regiment and are cutting its communication
line. There was little activity in the other ground sectors or
by air and sea units.
GERMANY
2. West German leader expects new pressure on Berlin--US High
Commissioner McCloy in Frankfurt has been told by West
German Socialist Party leader Schumacher that the West must
expect an intensified Communist drive to take over Berlin to
begin in October and probably to reach a peak in December.
Schumacher believes the pressure will come not from the USSR
itself but from the German Democratic Republic and may in-
volve the use of the Alert Police (Bereitschaften). Schumacher
declared that a stronger resolution to block Communism is
spreading among the West German people but said the presence
of more Western divisions, particularly US,, is urgently needed
in Germany because the Germans are reluctantA9pke a posi-
tive stand while they feel their country might be overrun. McCloy
points out that although Schumacher and his party believe the
1
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defense of Europe to be impossible without German military
aid, Schumacher consistently avoided giving any indication of
what form he though Germany's contribution to European de-
fense should take. Schumacher expressed his doubt-doncerning
the effectiveness of the small force proposed by Chancellor
Adenauer to act as a counter to the Soviet Zone Bereitschaften
but indicated a desire to make a common stand with Adenauer
against Communism and for the restoration of German unity.
This attitude McCloy regards as offering "a ray of hope for
positive action."
(CIA Comment: CIA agrees that there may be an
intensive Communist drive to take over Berlin within the
next few months but does not believe it likely that East German
military forces will be used in a move against Berlin in 1950.)
� WESTERN HEMISPHERE
3, BOLIVIA: Mine labor unrest increasing�The US Air Attache
in La Paz reports that labor unrest has so increased in the
mining areas of Bolivia that it is doubtful whether complete
control over those areas can be maintained. He adds that
US Embassy La Paz is advising women and children to leave
the Catavi mine area.
(CIA Comment: Discontent has recently beengeneral
among mine labor, which is usually very volatile, and it is
highly possible that violent disorders may occur. Such action
would disrupt Bolivia's vital tin production and might, com-
bined with current disorders in La Paz, cause a serious
political crisis.)
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KOREA
22 � AUG 1950
1. Heavy action in south and center sectors--The south and
center sectors of the Korean front were the principal scenes
of activity during the past 24 hours. In the south, the North
Korean forces are exerting heavy pressure in the direction
of Masan and have succeeded in forcing US units out of
several advantageous positions. US counterattacks have
failed to restore positions lost the day before. In the center
sector, 15 miles north of threatened Taegu, the US 27th Regi-
ment and the South Korean 1st Division were successful in
repelling heavy enemy attacks supported by tanks and artillery.
Northeast of Waegwan, however, an enemy battalion has pene-
trated to the rear of the US 27th Regiment There was little
action in other areas, except on the east coast north of Pohang
and Kigye where UN forces advanced one to two miles.
KASHMIR
2. UN Mediator admits failure on Kashmir mission�US Ambassador
Henderson in New Delhi has learned that UN Mediator Sir Owen
Dixon considers his recent effort to promote a Kashmir settle-
ment to be a failure and is returning to Lake Success. According
to Henderson, Dixon was described as being particularly disturbed
by the unscrupulous tactics used by Indian Prime Minister Nehru
in blocking any solution of the Kashmir problem and by Nehru's
apparent confidence that India will escape any UN Security Council
criticism on this point because of its strategic position between the
East and the West in the UN. Henderson comments that it should
1374
3 Ifs
�
be clear to Indian leaders that India's attitude during the final phases
of Dixon's mission has tended to confirm Pakistani charges of
Indian trickiness, unreliability, and lack of good faith.
13146Wileilt No.
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KOREA
I. UN foKceS continue gains in central,and east sectors--
UN forces are continuing to make gains in the central and
east sectors. The enemy bridgehead over the Naktong
River in the Changnyong area has been completely eliminated,
and enemy attacks in both the southfancl central sectors
have been repulsed. In the north, the enemy appears to
be either withdrawing or shifting troops to other posi-
tions in the area. On the past coast, UN forces have
pressed forward several Miles north of the recaptured
towns of Kigye and Pohang.
US Ambassador Muccio reports from Taegu that the
the city is returning to normalcy after a large portion of
the population streamed southward as a result of con-
flicting orders issued on 18 and 19 August. An estimated
80 percent of those who left the city have returned, and,
despite ineffective shelling of the city from extreme ranges,
normal activities are being resumed.
In the occupied areas, the North Koreans are at-
tempting to maintain control and security by imposing
travel restrictions DU the movements of persons over
12 kilometers from their domiciles.and.by threatening
to impose the death penalty against all those who fail
to surrender radios capable of receiving short wave broad-
casts.
WESTERN EUROPE
2. Increase in European defense efforts recommended�Execu-
tiverector Bonesteel of the European Coordinating
Comniiitee in London recommends that the US urge the
�
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West European nations to increase their first-year rearma-
ment allocations on the basis of a minimum three-year
effort totaling approximately three times the presently
estimated $3.5 billion. 13onesteer comments thatprelimi-
nary EcA-field analyses indicate that, assuming additional
US aid, such an increased rearmament effort shotad be
generally possible without dangerous economic repercus-
sions. Bonesteel points out that although this program
would provide a good start toward facing the cost of
adequate defense, any such increases are completely
dependent on development of a strong and centralized
NATO program which offers sufficient promise of succ,r, -
cess to-justify energetic; efforts by the member nations.
3. FRANCE: Increased speed in European defense urged-- C/19 S
The chief of Western Union ground forces, French General
de Lattre de Tassigny, recently visited US Ambassador
Murphy in Brussels to urge that the US apply "every
possible pressure" to induce the UK to act with greater
speed in decisions on European defense. De Lattre expressed
the opinion that the French effort would fall to the ground
unless the French are convinced that there will not be an-
other Dunkirk and that the UK intends to put "at least
six or seven" divisions on the continent. De Lattre also
�
asserted that US strength in Europe must be built up to
a minimum of five divisionsi he feels that the Belgians will
eventually produce possibly five divisions and the Dutch
two.
(CIA Comment: The French will..not ;make their.:
;maximum defense effort unless convinced that the members
4..Varothe NATO are taking steps to build the forces necessary,
to prevent another Dunkirk.),
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4. GERMANY: Adenauer's views on West German police-- ei
US High Commissioner McCloy in Bonn reports that
although Chancellor Adenauer was initially "incensed at the
smallness and powerlessness'' of the 10,000-man police
force recently authorized by the Allied High Commission,
he may accept this force as a start in the right direction
if the occupation powers support him in obtaining Laender
agreement to the degree of federal control he feels is
required. Adenauer believes that a West German force
of 1'00-150,000 is necessary to counter the Soviet Zone
�
Bereitschaften, and he plans to discuss the establishment
of such a force with leaders of the government parties -
on 22 August.
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KOREA
1371
1. � Enemy making strong drive toward Taegu--Front line
positions in Korea remained relatively unchanged during .
the past 24 'hours while heavy fighting between small, units
continued. In the south sector, in the vicinity of Chinju,
North Korean forces have managed a quick reorganization
following the planned withdrawal of Task Force Kean and
have initiated a limited offensive against the US 25th
Division in the Kosonz area. The enemy's main effort,
� however, appears to be in the direction of Taegu through
the central sector heldby the US 1st Cavalry and the South
Korean 1st Division. In the heavy fighting going on in the
vicinity of Waegwan, 1st Cavalry elements have recaptured
an enemy-occupied hill and have inflicted heavy casualties.
� Simultaneously, however, a strong enemy attack has forced
a 1200-yard withdrawal of elements of the South Korean
1st Division. North Korean forces are reportedly reorgan-
izing and regrouping in this area and further attacks in the
direction of Taegu are expected. just south of Waegwan,
North Koreanlorces are putting up strong resistance to
heavy US counterattacks against the two bridgeheads on the
east bank of the Naktong River. The situation of Pohang
on the east coast is not clear although.late press reports
claim its recapture by US-UN forces.
Meanwhile, the South Korean National Assembly
recessed on 17 August at the suggestion of President Rhee;
the Assembly will reconvene on 1 September at Pusan. No
official confirmation has been received of press reports
that civilians have been ordered to evacuate Taegu and that
Rb.ee and US Ambassador Mucci� have both left the city.
Irc
. .�
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TO THE DECLASSIFICATION OF
THIS DOCUMENT.
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� 7 AUG 1950
1370
1. Heavy fighting goes on throughout area--Heavy fighting
continues in Korea but no significant changes have been
� made in those areas where the heavy fighting is taking
place. In the Chinju area, US forces have made a planned
withdrawal of several miles and have consolidated; Task
Force Kean, which has been conducting the offensive near
Chinju, has been dissolved and its responsibilities turned
over to the US 25th Division. To the north, in the Yongsan
area where the North Koreans hold their strongest bridge-
head across the Naktong River, the US 24th Division has
been reinforced by the 1st Provisional Marine Brigade
and heavy fighting is taking place. An attempted enemy
break-out from this bridgehead and a drive to sever the
rail line to Pusan is expected, but latest reports indicate
satisfactory US progress in restraining this movement.
Farther to the north, in the Tuksong area west of Taegu,
another enemy bridgehead has been established and is now
under US attack. Immediately north of Tuksong, both US
and South Korean troops have made gains against the
enemy. To the east, the situation has remained stable.
The evacuation by water of the South Korean forces near
Yongdok has proceeded without enemy interference. Mean-
while, the South Korean National Assembly reconvened in
Taegu on 15 August despite the enemy threat to that city.
Of the 139 members registered for 1 August, 120 were .
present at the session.
2. Rau stresses need for Korean peace plan soon--The Indian
UN Delegate, Benegal Rau, has told the US delegation at the
UN that he considers it essential to formulate the general
terms of a peace plan soon. Rau believes that Malik's
� Avropaganda speeches are doing great damage in Asia and
Document � No. 0 4
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NO CHANGE In Classi, El
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17
that only the formulation of a peace plan can meet this
propaganda. The Indian delegate considers that the basis
of such a plan must be the unification of Korea and the
establishment of a free independent government by UN
supervised elections throughout the entire country. Rau
also told the US delegation that when he approached
Malik concerning his plan for formation of a_committee of
non-permanent SC members, Malik did not like the pro-
posal but said he might change his mind if shown the ad-
vantages. When told by Rau that any proposal for peace
must be based on withdrawal of North Korean forces,
Malik asked whether "foreign troops" would also with-
draw.
WESTERN EUROPE
3. European rearmament effort called inadequate--Executive
Director Bonesteel of the European Coordinating Committee
in London, in commenting on the proposed European defense
increase of an estimated $3.5 billion over a three year
period, stresses the view that this effort, even when added
to the $13.5 billion of projected US aid, is inadequate to
meet the requirements of effective defense. Bonesteel
declares that the European, proposal reflects a glaringly
disproportionate effort on the part of Europe and states the
view that it is "almost worse than useless to do only half
the job." He considers that the present European response
reveals the blunt fact that Europeans-are not yet prepared
to meet a reasonable proportion of the needs for adequate
defense and, although they are prepared to make some effort
within comfortable domestic political and economic limits,
they are counting upon still greater US aid to fill the gap.
Bonesteel feels that the above meager results can only be
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shown in true perspective when considered collectively
by the NAT Deputies. He recommends that the US use
them to press for an immediate review of the European
efforts.
4. .Possible German units in a European army--The US CIA /5
High Commission in Germany expresses the view that
even though there is a "wide difference of opinion"
among Officials --at Bonn on the question of a German-con-
tribution to European security, it would be possible to
raise a German force as part of a European army. The
Commission believes that both the politicians and German
youth oppose the reconstitution of a national German
army but would be willing to make a real German contri-
bution to European security if certain assurances were
given and if "the vision of an independent, viable Germany
within a real European federation gave promise of be-
coming a reality. The Commission considers that the
major German parties would not undertake any defense
commitments unless a considerable revision of the occupa-
tion statute provided for increased German sovereignty
and unless there were some form of Allied protection for
Germany against the USSR.
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KOREA
19 AUG 1950
I. UN forces make gains in two sectors--UN forces in Korea
have achieved successes in the center and east sectors
during the past 24 hours in heavy fighting against the North
Korean forces. In the center sector, Task Force Hilfnd
the 1st Provisional Marine Brigade are continuing their
attack against the Changnyong bridgehead on the east bank
of the Naktong River and are inflicting heavy enemy casual-
ties as they near the River. Also in the center sector, ,UN
forces have regained high ground previously lost north of
Taegu. In the north sector, South Korean forces have lost
contact with the enemy southeast of Kunwi, 'indicating a
possible redeployment of enemy units in this area. On the
east coast, ROK forces succeeded in recapturing the towns
of Pohang and Kigye and have advanced to high groundto-
the north. A heavy B-29 attack against military targets
in the North Korean city of Chongjin on the east coast has
reportedly achieved excellent results.
� "z.
CONFI
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KOREA
1, North Koreans further enlarge Naktong bridgehead--North
Korean forces continued to enlarge the bridgehead along
the Naktong River in the US 24th Division's area in the
central sector. The enemy launched an early attack in the
lower portion of this sector but after a three-hour engage-
ment the attack was stopped. To the south, Task Force Kean
continued to consolidate its gains around Chinju and to wipe
out isolated enemy pockets. In the western sector, North
Korean armored forces reportedly penetrated South Korean
positions and occupied a hill about two miles east of Waegwan.
South Korean troops near Yongdok will be evacuated by water
under cover of darkness. US air forces, in the largest raid
yet made in the Korean war, made a strike of 100 B-29's
carrying a total load of 1000 tons of bombs against enemy
concentrations on the west bank of the Naktong River,
J 0 AUU nzyu
1369
2. UK unable to send troops from Malaya or Hong Kong to Korea--
US Ambassador Douglas in London, in compliance with instruc-
tions from the Department of State, has pointed out to Prime
Minister Attlee and Foreign Secretary Sevin the desirability
of immediately dispatching British ground forces to Korea,
possibly sending troops now in Malaya or Hong Kong. In reply,
Attlee and Bevin said that to withdraw troops from Malaya
would seriously endanger the outcome there and that present
forces in Hong Kong are not adequate to deal with the situation
which might develop there. The British officials indicated
they understand the importance of refuting Soviet propaganda
aimed at convincing the world the UN effort in Korea is ex-
clusively a US venture. They also indicated they would do
everything possible to expedite the movement of troops to
Korea.
ET
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KOREA
1. Mirth Koreans continue build-up along Naktong�While the
r North Koreanscontinued to build up their forces along the
west bank of the Naktong River--now estimated at six divi-
sions with supporting armor�there was little change in the
military situation in Korea during the past 24 hours. Task
Force Kean continued to wipe out enemy pockets in the Chinju
region and to consolidate defense positions. Task Force Hill_
kept the North Korean bridgehead in the US 24th Division's
zone under pressure and made limited progress toward re-
ducing it. The situation in the Yongdok-Pohang area remains
static. Meanwhile, there have been no significant North
Korean announcements concerning the unification of Korea,
as was anticipated for 15 August.
BURMA
2. Prime Minister defers planned UN appeal--US Embassy
Rangoon reports that the Burmese Prime Minister has been
much relieved to learn that the Chinese National Government
has issued urgent orders for the departure of the 2,000
Nationalist troops from Burmese territory. The Prime Min-
ister stated that, as a result of the Chinese Nationalist action,
he would not raise the question of these troops in the UN on
15 August as was previously planned.
15 AUG 1950
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KOREA
14 AUG 1950
1. Enemy continues build-up in central sector--UN forces in
the south have reached their objectives in the hilly terrain
just south and east of the city of Chinju, but considerable
time will be required to wipe out bypassed enemy pockets
which are now har.assing,lbies of_tommunic-atibn; The
enemy continues to build up troops and equipment in the
central sector, where UN forces are increasing their efforts
to liquidate stubbornly-held bridgeheads east of the Naktong
River. To the northeast in the Pohang-Yongdok area, North
Korean forces still hold the smoldering city of Pohang and
UN troops are maintaining their defense perimeter around
the adjacent fighter. airfield. UN naval units bombarded the
North Korean port of Chinnampo on the west coast and sank
two enemy ships; UN air units continued to provide close
support for ground troops along the entire front.
2. Kirk's estimate of Soviet intent�US Ambassador Kirk in
Moscow reports that neither the Korean conflict nor the
obvious increase in the intensity of the war of nerves has
altered the Embassy's basic opinion that the Soviet leaders
do not desire to engage the USSR in a global conflict in the
near future. The Ambassador feels that the Soviet action
in Korea was merely a step forward in the Kremlin's pro-
gram to make the most effective use of Soviet capabilities
for championing world peace movements and simultaneously
creating a war scare. Kirk is convinced that the Kremlin
did not expect the North Korean invasion to bring about C.-.
united _condemnation by 53 UN members or to provoke an
increase in Western defense preparations to cope with an
eventual major crisis. Kirk believes that the Kremlin, in
the light of this new situation, is now considering the rela-
tive merits of: (a) touching off at least initially localized
1
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hostilities through a Satellite state on another scene (China
or the Balkans), as a means of draining the .free world's
resources and increasing the strain on its solidarity; and
(b) allowing a settlement to work itself out in Korea, perhaps
over Soviet protests, and permitting a world-wide atmos-
phere of relaxation to set in, thereby "giving the huge mili-
tary preparations in the West no place to go." Kirk com-
ments that the Kremlin may wish, by permitting the Korean
situation to work itself out and by maintaining the "mystery
of Soviet strength, "to keep the West so expensively mobilized
that the economic burden will cause disaffection among West-
ern peoples and make them more receptive to Soviet blandish-
ments. Kirk suggests that the peace movement and a con-
tinuation or intensification of the present war of nerves would
be features of such a long-range Soviet program.
.WESTERN EUROPE
3. NAT countries await US leadership--Executive Director
Bonesteel of the European Coordinating Committee in London,
in discussing prospects for increased defense efforts by West-
ern Europe, expresses the opinion that at least some of the
NAT deputies appear to be waiting to see to what extent the
US is prepared to undertake, even conditionally, increased
commitments in the West European defense program. Bone-
steel adds that these NAT deputies seem to be especially
concerned with: (a) the assignment of additional US forces
to European defense; (b) the creation of a central high command;
(c) the establishment of "ex'ecutive authorities" in the NATO.
Bonesteel comments that the amount and speed of substantive
achievements in the forthcoming discussions among NAT
deputies z "may depend in large part on US willingness" to
assume leadership in these matters.
(CIA Comment: The speed of progress toward an
effective European defense will be determined in very large
measure by the degree of leadership exercised by the US.)
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KOREA
1. Enemy strengthening bridgehead southwest of Taegu--UN
forces in the south are continuing their advance toward
Chinju against lessening opposition, but other UN forces
in the central sector are confronted with growing enemy
strength in the bridgehead southwest of Taegu. Bitter
fighting is taking place in the vicinity of Pohang and the
nearby fighter airfield, with reinforced UN troops under.
strong enemy pressure.
UN B-29's, in the northernmost raid to date, dropped
550 tons of bombs on the important seaport and rail center
of Najin-Dong, approximately 100 miles southwest of Vladi-
vostok. UN air and naval units again attacked enemy lines
of communication and provided close support for UN ground
troops.
2. Chinese NationalistAroop_s Burma--The Department of
State has informed US Embassy Taipei that an early settle-
ment of the problem of some 2,000 Chinese Nationalist
troops, who took refuge in northeastern Burma and who
have refused to be interned by the Burmese Government,
seems possible only through a Nationalist Government order
to these troops to permit themselves to be disarmed� The
Department notes that the US can give the Nationalist Gov-
ernment no assistance if this question is brought before the
UN and instructs the Embassy to urge the Government on
Formosa to issue the necessary orders before Burma acts
in the UN as it has proposed to do by .15 August.
(CIA Comment: The raising of this problem in the
UN would hamper US efforts to focus attention on Korea and
adversely affect US-Burmese relations. The USSR would
also be provided with a useful propaganda opportunity.)
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KOREA
72
1� UN forces near Chiniu; Pohang threatened by invaders--
UN forces continuing their attack on the southern front
against sporadic opposition have now driven within a few
miles of Chinju. An enemy bridgehead containing two
regiments in the central sector southwest of Taegu is
stubbornly holding on; enemy troops and equipment are
being built up in considerable strength on the west side
of the Naktong above this bridgehead. Little change took
place during the past 24 hours in the general northern
sector, but an enemy force of two regiments, supported
by artillery and tanks, is now fighting in Pohang and
threatening the nearby fighter airfield at Yonil. UN air
and naval units continued to provide close support for
ground troops at various points along the defense peri-
meter.
US Ambassador Mucci� in Korea reports that,
of the 20,000 South Korean personnel in training, an
estimated 5,000 are now available for combat. A lack of
small arms and infantry support weapons, however, makes
it impossible to utilize these 5,000, and Mucci� recomk.-
mends that the necessary weapons be forwarded by airlift.
Radio Pyongyang has announced that as of 31 July,
49.5 percent of all crop taxes in kind had been paid and
has called on the People's Committees to see to it that
crops are harvested on time. The unusually low percentage
figure (North Koreans regularly claim 90 percent) may indi-
cate a shortage of North Korean agricultural manpower and
security police forces.
Document No.
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WESTERN EUROPE
2. Views on West European defense--US Ambassador Kirk
In Moscow is inclined to doubt UK Foreign Minister Bevin's
assumption that West German rearmament would in itself
cause the USSR to attack immediately in Western Europe.
Kirk believes: (a) a Kremlin decision to move militarily
in Europe would be based on its estimate of military con-
sequences and a rearmed West Germany would not be an
important consideration at this time; (b) "Eve cannot pre-
dicate our preparations on the hope that a soft answer
turneth away wrath"; and (c) West Germany cannot be left
defenseless until France and Belgium are strong enough
to match a rearmed West Germany without increasing the
risk of losing the entire country to the USSR. In order to
offset the fears of Germany's western neighbors, West
German rearmament should, in the Ambassador's opinion,
be a part of the NAT defense mechanism. A West German
police force an exact counterpart in size, armament, and
training of the existing East German paramilitary organi�
-
zation, should effectively counter the threat of military
action against West Germany. Kirk also recommends full
and early use of the West German industrial production
capacity for non-military items.
Meanwhile, US Ambassador Bruce in Paris urges
that the European rearmament program be operated as a
collective enterprise and not as a combination of separate
national efforts. Bruce feels that, to date, integrated
planning has been lacking in the North Atlantic Treaty
Organization and the Mutual Defense Assistance Program.
He believes such collective planning should start with an
estimate of the forces needed for the defense of Western
Europe and with provisions for producing and financing the
'necessary military equipment and supplies. The Ambassador
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also feels thatan American should head a small group of
experts to develop the proposed procurement and production
program, which would use West German industrial capacity
for the production of non-combat items, such as trucks
and spare parts. Bruce observes that the French idea of
creating a central military fund, presumably directed by an
American, has "great merit" for unifying West European
defense efforts, and increasing efficiency and econsmay.
Bruge is convinced that the necessary safeguards can be
set up to prevent US funds from being improperly distrib-
uted by a central military fund administration.
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KOREA
1. UN attack in south accelerating--Attacking UN forces near
Chinju are accelerating their pace and forcing the retreating
North Koreans to abandon equipment and supplies as they
move back. The enemy may attempt to consolidate a new
defense line on the high ground southeast of Chinju. In the
central sector, UN forces are continuing to reduce enemy
bridgeheads which are apparently not being reinforced, while
In the north sector, South Korean troops have regained the
� ground they lost during the past 48 hours. On the east coast,
however, strengthened enemy forces have again captured
Yongdok and North Korean elements are reported to have
joined guerrillas in the vicinity of Kigye, nine miles inland
from Pohang. This enemy penetration along the east coast
constitutes a serious threat to the port city and the airfield
nearby.
JO AUG 1950
UN naval air units from the Seventh Fleet struck at
Inchon and Seoul, destroying or damaging warehouses, oil
storage tanks, railroad marshalling yards, and similar targets.
UN B-29's carried out their heaviest attack to date, dropping
625 tons of bombs on targets in North Korea. Other UN air
forces flew over 150 sorties in support of ground troops.
CONFID
THE C.I.A. HAS NO OBJECTIOt
TO THE DECLASSIFICATION Ot
THIS DOCUMENT.
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RET
I. UN forces maintain their attack in the south--UN forces east
of Chiniu continued their slow advance against determined
enemy resistance during the past 24 hours. A short distance
to the north, other UN troops are reducing the enemy pocket
east of the Naktang river; in the Waegwan area, defending
forces are increasing their efforts to liquidate other bridge-
heads recently. established by North Korean forces which
pushed across the Naktong river.- In the northern sector,
South Korean 'forces have withdrawn under strong enemy attack.
Heavy fighting continues near Yongdok, with no change in
positions reported.
Reports from South Koreans who fled Seoul during the
lasthall of :July, indicate that food is scarce and prohibitive
in price. The North Korean regime is not bringing food into
the Seoul area and is attempting to alleviate the shortages by
executing blackmarketeers and hoarders. Laborers were
conscripted to repair the Han river damage. The general
populace, which is being kept well-informed by handbills air-
dropped by UN planes, is reported to have confidence in the
ultimate victory of the armed forces defending South Korea.
INDOCHINA
2. Surve finds need for further French concessions--The US
joint State-Defense survey mission, which has completed
a study of French military needs in Indochina, reports that
five years of warfare have resulted in a stalemate between
the French forces and Ho Chi Minh and have left the French
forces with reduced "offensive spirit." The missionadds
that French officials in Indochina attribute the failure to re-
store internal security both to a lack of cooperation on the
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part of the non-Communist population and to widespread
hatred and distrust of the French. The mission expresses
the view that military action alone cannot solve the Indo-
chinese problem.and believes that a "political solution,"
which would include concessions on the part of the French
and definite plans for the eventual independence of the three
associated states of Indochina, is a "necessary complement"
to any military action taken to eliminate Communism from
Indochina.
(CIA Comment: The preponderance of other evidence avail-
able from Indochina supports the findings of the State-
Defense survey mission.)
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24967 TOULT
'KOREA
Heavy fighting_ continues near Chinju--Heavy fighting
continues on the Chinju front, where attacking UN units
have made small gains, but North Korean troops have
reportedly crossed the Nam River in undetermined
strength and now threaten the right flank of the attacking
UN forces. The enemy is continuing to make probing
attacks in the other sectors, and there is considerable
movement of transport and tanks in the North Korean rear
areas. In the central sector, two enemy battalions have
crossed the Naktong River and additional troops with
trucks are attempting to cross. In the northern sector,
the Yechon-Andong front is generally stabilized but
heavy fighting continues north of Yongdok, which remains
in South Korean hands.
8 AUG 1950
1362
�
UN naval surface and air units continued to pro-
vide close support for ground troops and to attack enemy
lines of communication.
North Korean radio commentators are asserting
I
that US military "failures" in Korea are in part caused ,
by the US "blunder" of placing too high a value on mass
bombing, and by "hapless" reliance on machines. The
North Koreans claim that "mass" bombing has proven an
indecisive weapon and that each raid only makes the people
still more determined to win the war.
The South Korean Commander-in-Chief of Army,
Navy and Air Forces, Major General Chong 11 Kwon, has
advised his officers and men that UN forces are now fully
prepared to launch an offensive immediately. General
Chong also stated that in annihilating the enemy, South
Korean forces would cross the 38th Parallel and would
advance to the Yalu River, in order to effect the long-
cherished dream of national union.
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2. Views on Communist aggression--The US Delegation
to the UN transmits the view of Brazilian UN Repre-
sentative Muniz. that the only way to deter the Soviet
Union from ,L11 Owing the tactic of creating local con-
flicts throvrte Satellites is to hold the USSR "re-
sponsible for aggression; whether committed directly
or through its Satellites. Muniz. also feels that the
primary purpose of the Soviet return to the SC was to
make a propaganda bid for Asia and that the West could
not afford to continue lending the USSR this opportunity.
ISRAEL
3. Israeli request for increased ,US aid rejected�The
Department of State has instructed US'Ambassador
McDonald in Tel Aviv to inform Israeli Premier Ben-
Gurion that the adoption of the latter's recent sugges-
tion regarding US aid for a three-year immigration
program and for the equipping of a greatly expanded
Israeli Army would be "contrary to present programs
and policies" and would jeopardize current progress
toward stability and peace in the Near East, The De-
partment adds that, aside from the US policy of treat-
ing the Near East as a whole, US commitments in other
areas would preclude implementation of Ben-Gurion's
concepts.
2
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7 AUG 1950
1361
KOREA
I. Increased fighting in southwest sector--Recently strengthened
UN forces in the-Clainju-MaSan area have launched a limited
offensive which may develop into some of the heaviest fighting
of the Korean campaign. To the north, enemy forces 'have
crossed the Naktong river in considerable strength; other
enemy forces are making repeated attempts to cross the Nak-
tong river at other points along the new "Odense line. UN forces
continue to hold thelattered coastal town of Yongdok, the
northern pivot of the defense linei, but an enemy column is
reported to be moving eastward in a flanking attempt.
UN aircraft .continued their close support missions
for ground' troops, while UN naval units attacked North Korean
positions along the coast. A force of 50 B-29's raided the
rail marshalling yards of the North Korean capital.'
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
No.2 9 MAR go? %,
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KOREA
1. Enemy reported crossing Naktong River--North Korean forces
have reportedly succeeded in crossing the vital Naktong River
at two points, one near Hamchang in the northern tip of the west
sector and one south of Andong in the northern sector. Mean-
while, northern forces are exerting their heaviest pressure
in the Chinju area on the south coast; one enemy unit has pushed
20 miles east of Chinju, but UN forces are apparently holding
firm on the north and south flanks and are still within.12 miles
of the city. The enemy is continuing its build-up in the vicinity
of Kumchon and heavy fighting is reported on the east coast
where South Korean forces still hold the, city of Yongdok.
A concentration of Communist guerrilla forces has been
reported northwest of Taegu airstrip and other guerrillas are
located southwest of Yongdok and northeast of Samnangjin,
where UN reserve forces are situated. North Korean reserves
capable of joining the battle have been reported as the First
Division near Chinju, the Ninth and Fourteenth Divisions
in the Taejon area and the Fifteenth Division at Yongdong.
� In a further attempt to back up its charges of South
Korean aggression, North Korean propaganda is now broad-
casting the details of an alleged US plan for the invasion
of North Korea. The broadcasts assert that the "plan" was
found in Seoul.
0 3 /
5 AUG 1950
1360
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
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KOREA
4 AUG 1950
1359
1. UN, enemy forces massing in south-- Both UN and North
Korean forces are massing in the area east of Chinju for
what may be the first major test of the new defense line
along the Naktong river. At other points along the broad
central front, UN forces are already under artillery fire
from North Korean troops who rushed overnight into the
areas vacated by the recent withdrawals of defensive troops.
North Korean patrols are already probing the new' defense
line and some enemy patrols have reportedly infiltrated
for reconnaissance.
Considerable North Korean railway traffic was
reported, particularly along the east coast where all mar-
shalling yards north of the 38th Parallel were filled with
rolling stock. Special efforts are being made by the enemy
to use smoke screens in the Chongjin area to cover the
marshalling yards and the industrial sections. US naval
forces are continuing to provide close fire support to ground
forces on the east coast. -
US Ambassador Muccio reports that the South Korean
Cabinet, with President Rhee's approval, designated a
"special war committee of the Cabinet" on 3 August, con-
sisting of the Ministers of Defense, Interior, Transportation,
Finance, and Commerce. The Special Committee will meet
daily to receive military briefings and to consider non.
military measures to support the war effort. The Cabinet
also approved in principle the establishment of a military
advisory council to assist the Defense Minister.
-4,,
Document. No. �
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S
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1 -
Auth: aAplaift 7
Date: By: __________
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WESTERN EUROPE
2. Views on Western European defense--Netherlands Foreign S
Minister Stikker, in discussing the Brussels Pact meeting _
of 1 August with US Ambassador Chapin at The Hague, reports /
that British Foreign Secretary Bevin favors postponing the S/,5
the rearming of West Germany because of his fear that such
an action might be a direct incitement to the Kremlin to
attack. Bevin also feels that the rearming of Germany should
wait until France and Belgium are strong enough to balance
increased German strength., Bevin did say, however, that
Germany must be made an integral part of Western Europe
as soon as possible. According to Stikker, Foreign Minister'
Schuman of France, Van Zeeland of Belgium, and Bech of
Luxembourg concurred in the views of Bevin. During the
Brussels Pact meeting, French Foreign Minister Schuman
expressed complete dissatisfaction with progress in Western
Union and North Atlantic Treaty staff planning; Schuman
remarked that it was impossible for individual nations to
rearm effectively without a "strong central coordinating
authority." Stikker told Chapin that he personally believes
Germany should be rearmed at the first practical moment, .
and that he had made "great efforts" to convert the French
to his view. Stikker also believes that the Western European
defense line must be established in West Germany and not
in the Netherlands, if the full cooperation of the Dutch people
is to be obtained.
Meanwhile, high British officials have expressed to
US Ambassador Douglas in London their concern over the
"inadequacy of additional preparedness efforts currently
contemplated by European countries, including the UK,
and stressed the "need for US pressure on all concerned."
The officials stated that the UK had long endeavored to
stimulate greater efforts by the Western Union countries,
but was handicapped by its limited capacity "to give or
withhold." The officials think West European governments
� (4nd the government of the UK, would "welcome US pressure�
which would strengthen them in dealing with parliaments and
public opinion.
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KOREA
1. Defenders withdrawing to Naktong river defense line --UN
forces along the broad central front in Korea are making
an orderly and planned withdrawal to new positions on the
east bank of the Naktong river, which offers the best
natural defense line in the area remaining in the hands of
the defenders. Sharp attacks by fresh US troops have
apparently blunted the attempt of North Korean forces to
turn the extreme left flank east of Chinju; South Korean
troops have again pushed back the invaders north of Yong-
dok on the east coast. The UN defenders now have limited
reserve forces located in the areas of Pusan-Masan and
Taegu. ,
UN naval forces bombarded the town of Mokpo
along the southwest coast, and the east coast naval payol
continued to provide close fire support for UN forces in
the Yongdok sector. B-29's made their third bombing -
raid on industrial targets in Hangnarn (chemical center
of North Korea); other air activity was limited to close-
ground support missions and attacks on enemy lines of
communication.
The North Korean radio broadcasts are now
claiming that elections have been held for "Peoples
Committees" in virtually all the "liberated" provinces
. in South Korea. North Korean i,ropaganda has always �
insisted that the Peoples Committees, which were banned
in South Korea by the US Military Government in Septem-
ber 1945, were the rightful organs of government for all
Korea. The "re-establishment" of these Committees
has been consistently presented as the first step in the
"liberation" of South Korea. The announcement of these
"elections" paves the way for later propaganda claims
that South Koreans have approved their integration into
the fraineWork, of the North Korean Democratic Peoples
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WESTERN EUROPE
2. French favor "common defense" for Western Europe--
During a recent discussion of West European defense
problems with French leaders, US Ambassador Bruce
was told by Premier Pleven that the French lack of con-
fidence in their ability to create from their own resources
a military organization capable of withstanding aggression
makes it necessary to provide for the defense of Western
Europe under a common military establishment. Pleven
added that it would be easier for the French Government
to force a reorganization of the French army under
orders from a central authority. During the discussions,
Minister of Defense Mock expressed the opinion that
the "common approach" is the only formula under which
the French people could be brought to accept the partici-
pation of Western Germany in a North Atlantic Treaty
� defense effort.
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T O. r E T
/41
KOREA
2 AUG 1950
I. US troops attacking on south flank near Chinju--Fresh US
troops are counterattacking along the extreme left flank
near Chinju in an effort to halt the North Koreans, who are
only 40 miles from the key port city of Pusan. UN forces
also advanced slightly north of Yongdok on the east coast,
but the enemy retained the initiative at all other points
along the defense perimeter. In the central sector, UN
forces withdrew slightly under heavy enemy pressure. UN
aircraft flew 425 sorties during the past 24 hours (the
largest total of the war) and reported the destruction of
6 enemy tanks, 45 trucks, 1 bridge, and other military
equipment and targets. Two air raids caused heavy damage
in Hangnam, North Korea, where the three major industrial-
chemical plants of Korea are located. One plant is the
largest explosive producer on the Asiatic mainland; the
second is one of the largest chemical fertilizer and synthetic
ammonia plants in the world; and the third manufactures
industrial chemicals, including chlorine, caustic soda, and
calcium carbide.
A refugee from Seoul reports that all persons be-
tween the ages of 17 and 30 have been mobilized for support
of the North Korean military effort. The men have been�
assigned to haul supplies to the battle areas while the women
prepare food for the troops and repair roads. The Commu-
nist radio in Pyongyang recently announced the arrival of
volunteer Hungarian and Bulgarian medical groups, which
are apparently scheduled to serve with North Korean troops.
DOCU/Selt IS �
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DECTASSIIPtErr
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ODA.MemO, 4 Apr 7.7
Ailt.11 :3 DM REG. 77 1763
197B 13T;
313y
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C If
TO
KOREA
1356 -
1. Enemy pressure increases in south�North Korean forces
maintained heavy pressure all along the line as new US
troops were rushed into positions threatened by invaders
moving east from the south port city of Chinju. Other
enemy forces are reported to have occupied Na.mhae Island
off the southern coast. UN naval forces bombarded the east
coast and maintained blockade patrols on the west coast.
Estimated enemy casualties to 30 July number 37,597;
estimated UN casualties, including non-combat, total 6,572.
The South Korean National Assembly, meeting in
Taegu, has passed all eight emergency laws proposed by the
government providing budgetary, legal and economic measures
for the duration of the crisis. After adjournment today, the
majority of the members plan to go to Pusan to establish a
"liaison office," and to rally support for the government.
le)
Document No.
1 AUG 1950
Oz7
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Class. CHANCED TO: TS S
DDA Mom., 4 Apr 77
Ah: �DDA REG. 77 1763
t � sy
RET
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�J.
KOREA
1 JUL 1950
1355
1. UN forces give ground slowly--UN forces in Korea continue
to give ground slowly under relentless hammer blews in the
central sector near the strategic supply hub of Taegu; in the
south invading troops have reportedly captured the port city
of Chinju, and the North Koreans are breaking into. the .
portant defense anchor of 4amchaxg in the north central sector.;
There was little activity near the battered east coast-POZt.PitY., -
of Yongdok which has changed hands repeatedly during the. past.
several days. Seventh fleet units are continuing- tobombarill�
east coast positions of the enemy, and other units have been
dispatched to provide protection for the south flank of UN
ground troops in the Chinju area. .
Radio Pyongyang broadcast a statement by North Korean
Communist Chief Kim U Sung that the North Korean armed forces
were guaranteed enough weapons and ammunition for victory.. In
South Korea, the outbreak of seven smallpox cases is a warning
of the dangerous public health situation which is developing as
refugees crowd into UN-held South Korea.. US Ambassador Muccio
believes that the growing menace of epidemics Provides an ex,
cellent opportunity to solicit international assistance in non�military
activities in South Korea.
Pi. Embassy Moscow's views on Soviet return to UN--US Embassy 6/T5
Moscow estimates the return of the USSR to the SeetuDity Council
to be a tactical retreat dictated by the course of world develop-
ments since the invasion of Korea, and particularly by the unity
of the free world. The Embassy also believes that the failure of
the Soviet boycott to disrupt the UN during its consideration of
the Korean issue and the growing unity of the free world within
. 1 - Document No.
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Auth: DA REG. 77 1763
Date: By:
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the UN has made a deep impression on Soviet leaders, and that
the Kremlin must view with serious concern the march of events
which threatens to make the West much stronger within a year
or two.
The Embassy estimates that the Kremlin may no* feel
that propaganda moves and obstruction within the UN are in-
sufficient and that the time has come for making concrete ap-
peasement moves which would tend to relax the marshalling of
the free world's strength. In assessing Soviet intent in returning
to the UN the Embassy points out that now is the propitious
time for UN,
moves in Korea and comments that the USSR
will probably submit proposals based on the withdrawal of foreign
troops and new elections, perhaps under UN observation. If the
USSR intends a real appeasement move, the Embassy believes the
proposal may be accompanied by a withdrawal of North Korean
troops to the 38th Parallel to avoid their eventual defeat and to
permit maximum political capital to be derived from the Soviet
role of "peacemaker." The Embassy warns that the outcome of
such elections might favor the Korean Communists. The Embassy
suggests the USSR will continue to link a peaceful settlement in Korea
to the question of admitting the Chinese Communists to the UN,
with a vote delayed for the time being, and that the USSR may
attempt to make Formosa an issue in the hope of exploiting the.
US unilateral commitment on. that island. The Embassy believes
the Kremlin's eyes are on the major issues involved, and doubts
that the USSR is returning to the SC with the somewhat legalistic
Motive of blocking UN action wits xegard to aggression elsewhere.
"r
2
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INDIA -PAKISTAN
3. Indian Cabinet said to be anxious for Kashmir settlement- /75
-
A representative of one of India's "most powerful political
figures" has informed US Ambassador Henderson in New
Delhi that the Indian Cabinet was "extremely anxious" to
have the Kashmir dispute settled promptly in a way which
would leave as little bitterness as possible. The Cabinet
was reported to be convinced that the only possible basis for
such a solution was UN Mediator Dixon's recent suggestion
that a plebiscite be held in the Vale of Kashmir (which would
probably vote in favor of Pakistan) but that the rest of Kashmir
�be partitioned along present occupation lines, thus assuring India
that it would obtain Jammu. Dixon reportedly made his suggestion
after it became clear that Indian Prime Minister Nehru was un-
willing to agree to a general plebiscite, even under the "generous
concessions" which Pakistani Premier Liaquat All Khan had offered.
Pointing out that Liaquat had violently apposed Dixon's proposal,
Henderson's informant voiced the hope of "several prominent Indian
leaders" that "anything the US could discreetly do" to modify Paki-
stan's opposition would be valuable. Henderson comments that Nehru,
who was described to him as somewhat reluctant to go along with
Dixon's proposal, appears to want to get certain concessions from
� Pakistan in return for his agreement to a solution which would prob-
ably give the Vale of Kashmir to Pakistan.
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0
T O�
KOREA
29 JUL 1950
1. Little change in tactical situation--There have been no
substantial changes in the tactical situation in the past
twenty-four hours. Principal activity has been in the key
western sector where North Korean troops are exerting
heavy pressure against the US First Cavalry and Twenty-
Fifth Infantry Divisions. In the southwestern sector, enemy
troops are moving eastward toward contact with advanced
US positions. Further to the north enemy troops are moving
east to gain positions on the road running north from Kochang
to Kumchon, present headquarters of the First Cavalry Divi-
sion on the main rail line from Kumchon to Pusan. Positions
are generally stabilized in the eastern sector where South
Korean troops hold the line, although the concentration of
enemy troops indicates the possibility of a major push
towards Hamchang in the direction of Kumchon and Taegu.
An attack by UN forces toward Yongdok on the east coast
met stiff enemy resistance, and no change in the location
of the front line one mile south of Yongdok has been reported.
US naval units continued to support ground forces in the
Yongdok area by off-shore bombardment of enemy concentra-
dons, and other units launched four carrier air strikes, hitting
enemy lines of communication and troop concentrations in the
southwest and west sectors.
The United Nations Commission on Korea estimates
that from 750,000 to 1,000,000 refugees are now added to the
'3,000,000 persons normally occupying the area still under
ROK control. Water supplies are deficient and unreliable,
sanitation extremely poor, and congested living conditions
most serious. Although this congestion and continued mili-
tary reverses are unquestionably having a deleterious effect
on the morale of the South Koreans, they are continuing to
, support the government.
:4;
Doeuxont No;
NO CHAVIGE la Class.
PECLASSIF'. ,
Class. C,1AlIGT.:0
DDA Memo, ,pr�
Auth: DA Mt: 63
Eff . A
Date: two By: '
elk
�S.
o� -w'r"
tz
1354
ARCHIVAL RECORD
PLEASE RETURN TO
AGENCY ARCHIVES,
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2. Views on US policy toward Korea--US Ambassador Kirk thi5
in Moscow has emphasized the importance of clarifying
US political objectives in Korea and of properly correlating
US policy in Korea with the problems of containing Soviet
expansion in other areas of the world. Kirk believes the
key political issue regarding Korea is whether UN forces
should be committed now or in the near future to the elimina-
tion of Soviet influence and power from Korea north of the
38th parallel. Ambassador Kirk recommends that the UN
declare its determination to assist the Koreans by all possible
means to achieve their freedom in an independent, unified
and democratic state, but believes it would be decidedly pre-
mature in such a declaration definitely to commit the US to
the use of its forces north of the 38th parallel. Kirk stresses
that the US is not now in a position to make a realistic ap-
praisal of the obstacles, military and otherwise, which will
exist after North Korean troops are driven back to the 38th
parallel. According to Kirk, elementary prudence dictates
that the US not now assume an obligation which would re-
quire a US military effort out of proportion to the political
and strategic importance of Korea.
In estimating Soviet intentions, Kirk points out that
the USSR has thus far cautiously avoided involving Soviet
prestige and has given no indication of its reaction when the
tide of battle turns against North Korean troops. In support
of his belief that the USSR at that critical point will not
throw .its own forces or those of the Chinese Communists
into South Korea, Kirk points to: (a) estimated Soviet re-
luctance to initiate global war; (b) the flexibility shown by
the USSR when confronted with opposition in such areas as
Iran, tee co and Berlin; and (c) the Soviet attitude since the
.Korearl'fighting began. Kirk considers it more likely that the
'USSR will attempt to arrange some kind of truce on the basis
�
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of the status quo, and, if unsuccessful, to withdraw North
Korean troops to the 38th parallel. This latter move might
be accompanied by a proclamation affirming the inviolability
of the 38th parallel. On the other hand, if the USSR should
decide that a commitment to defend North Korea would in-
volve too great a risk of global war, Kirk recommends that
the US be prepared to take advantage of any temporary mili-
tary vacuum and, coincident with political unification moves
by the UN, take whatever military measures might be neces-
sary to maintain internal law and order north of the 38th
parallel.
3. UK views on Soviet intentions--According to US Ambassador CIAls
Douglas, the UK Foreign Office is considering two very
tentative hypotheses concerning the Soviet return to the
Security Council. One is that the USSR, planning to achieve
its objectives through the "simulation of cooperation," will
pursue a course aimed at ending the Korean conflict and
solving the problem of Chinese representation in order to
lull the West into a false sense of security, justify a demand
for the withdrawal of US troops, and enable US action regard-
ing Formosa to be chkllenged in the SC as a threat to the
peace. The other is that the USSR intends to block further
effective action through the UN, not only in Korea but in such
areas as Iran or Indochina. The Foreign Office believes it
would be a tactical error to permit the USSR to give priority
at the SC meeting to the question of the Chinese representative.
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KOREA
28 JUL 1950
1. North Koreans attack in central sector--North Korean forces
in considerable strength are attacking US positions in the cen-
tral sector near the vital city of Yongdong, and at the same time
enemy forces are attempting to turn the defensive flanks in the
extreme south and along the east coast near the battered city
of Yongdok. Present evidence indicates the invading forces have
the reserves and equipment necessary to launch a major onslaught
designed to destroy the defending UN forces or to push them into
the sea. In the southern area, the North Korean. Fourth Division
has advanced well beyond Hadong along the road toward Chinju
and enemy forces in battalion strength have occupied the port
city of Yosu. Along the northern flank, the battered port city of
Yongdok has rezorteelLy been recaptured by South Korean forces -
following a saturation bombardment of the city by US naval forces.
The navy also bombarded other points in enemy-held territory
along the east coast.
Approximately 132 of the 210 South Korean National
Assemblymen met in Taegu for their first post-invasion meet-
ing to hear President Rhee and Assembly Speaker Shin declare
their confidence in an eventual UN victory in Korea. Rhee and
Shin also expressed confidence that the 38th Parallel boundary
would be abolished and that the fatherland would be unified.
During the course of this meeting, radio broadcasts originating
from the North Korean capital of Pyongyang sent out an appeal
allegedly made by 48 former members of the South Korean Na-
tional Assembly in Seoul asking the Assemblymen in Taegu to
withdraw their support of Rhee and come over to the side of the.
"people." Foreign correspondents of the Communist press of
France, England, and China, now touring North Korean cities that
have been bombed by US forces, report that US planes are bomb-
ing from above the clouds and clearly engaging in "terroristic
bombing designed to kill the peaceful inhabitants." Such reports
are obviously designed to feed the Communist propaganda charg-
ing that the US is the aggressor against Asiatic peoples.
/-��844t
1
TOPIONFI-
ECRET
1353
iHE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION oP
HIS DOCUMENT.
29 M
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2. Reactions to suggested UN Commission for Yugoslavia-- The CIA /5
US Delegation to the UN agrees in principle with the Depart-
ment of State's suggestion that a Security Council Commission "
be established and sent to Yugoslavia and possibly other sen-
sitive areas, but believes a more general approach to the
problem of preventing a spread in the Korean conflict would
be more practical. The Delegation feels that greater Security
Council support can be obtained for the more general approach
because such an approach would avoid discussion of specific
areas, thus reducing the chances of highlighting present dif-
ferences among friendly nations. The Delegation proposes
that a Security Council Commission or any committee appointed
by it be authorized to observe any area where international
peace or security may be endangered. The Delegation feels
that the introduction of such a proposal before the return to
the SC of Soviet delegate Malik on 1 August would secure the
"initiative" for the West.
US Ambassador Kirk in Moscow feels that sending an
observation group to inspect the Yugoslav border might =de-
sirably pinpoint Yugoslavia as the predestined next victim of
Soviet aggression and react to the disadvantage of Yugoslavia
in its ideological war. Kirk suggests that the establishment
of UN observation teams on a regional basis (such as Europe,
the Near East, and South Asia) might be an effective approach.
2 -
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ANNEX
28 pay 1950
IMPLICATIONS OF THE SOVIET UNION'S RETURN TO THE UN
Although it is too early to discern clearly the Soviet Union's
motives in returning to the UN, this surprise move re-establishes
the Soviet Union's freedom of action in the UN and opens the door
either to some form of negotiated solution of the Korean conflict
or to obstruction of further UN action concerning Korea and other�
areas where the USSR may plan overt moves. The move,lias made,
however, at the expense of an announced Soviet objective, the prior
seating of the Chinese Communists in the Security Council. This
modification of Soviet terms, as set forth in the Stalin-Nehru ex:-
change, suggests that the Soviet objective in returning to the SC
may be to seize the opportunity, at this low ebb in US military
fortunes, for a favorable settlement of the Korean war. More-
over, the USSR probably considers that the tactical defeat suffered
in returning before the Chinese Communists were seated will be
largely obscured by the overwhelming North Korean military
successes. It also seems likely that the USSR, having under-
estimated world reaction to the Korean conflict and disturbed at
the coalescing of the non-Soviet world behind the US through the
UN, is seizing this favorable opportimity both to strengthen its
fropaganda position as a "peace-loving ' state not directly in-
th
,, olved in e Korean conflict and to exert greater influence in
glare TX deliberations.
It is possible that the USSR, anxious to see a compromise
�golution on�favorable terms at a time when Communist prestige
in\ Korea is at a peak, is returning to the UN in order to set the
stake for compromise negotiations. With the possibility that US
forces will -be-either oonftned-to-a-srnall Oerimeter around Pusan
orldrivementirely_ from Korea, the USSR may consider the pres-
ent.time a highly favorable opportunity to seek a solution which,
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ET
while apparently compromise in nature, would eventually
secure the fruits of victory to the USSR.
On the other hand, it is possible that the Sovipt
Union, pursuing a new phase of more active aggression
and perhaps contemplating further moves in other areas,
has determined tccr,etitrn.to the UN with the purely obstruc-
tive purposiKoniamstringing the further consolidation of
UN acticimbi Korea or even shielding from similar UN
action other moves it may have in mind. In this case, not
only the Soviet veto but the Chinese Communist issue
would provide weapons forcontesting the legality of any
UN action. This is particularly true in such a case as
Formosa where the USSR might be in the position of being
able to call on the UN to prevent the US from blocking the
movement of Chinese forces from one part of China to
another.
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DENTIAL
KOREA
27 JUL 1950
1352
1. Defense lines stable, but enemy build-up continues--No major
changes have occurred in the defense line during the past 24
hours, but the continuing build-up of enemy pressure in all
sectors increases the possibility that the North Koreans are
preparing for another onslaught. In the south, the North Korean
Fourth Division was forced back two miles by attacking US forces
east of Hadong. In the area southwest of Yongdong,envelopmerit
isolated one company of US troops; a second attack by the enemy
succeeded in making a minor penetration into southern-held ter-
ritory near Kidae. On the eastern sector south of Yongju, UN
forces repulsed the Seventh North Korean Division offensive whicho
was supported by tanks.
North Korean propaganday_which is being supervised by
Soviet advisors, is stressing Stalin's reply to Nehru 's letter on
the Korean issue as further evidence of the Soviet desire to
defend the peace and security of the world. Radio broadcastd
state that the North Korean regime would welcome a "peacefuli
settlement;" but repeat the point made by Stalin to Nehru that
the door to such a peaceful settlement will be open only after
delegates of the Chinese People's Republic are seated in the
UN and the Security Council hears "representatives" of the
Korean people.
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
No. 2_92.11/31 .122EL_
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KOREA
1. Defense perimeter within 100 miles of Pusan--The winding
defense line, against which the North Koreans are throwing
an estimated nine divisions, is now within 75 airline miles
of Pusan along the left flank, 105 airline miles from Pusan
in the central sector, and 90 airline miles above Pusan along
the east coast. Despite heavy losses and disrupted and ex-
tended lines of communication, the enemy is still superior to
the three US Divisions and four South Korean Divisions in
manpower, equipment, and guns.
26
1351
The recent advance of enemy forces in the southwest
has secured practically all of that area, and advance elements
are moving east to Hadong on the coast road to Pusan. In the
western sector the enemy has forced elements of the US First
Cavalry to withdraw to new positions three miles east and
south of Yongdong. The central sector has been relatively
quiet. North Koreans are continuing their build-Up in the
Tayang-Punggi-Yongju area, however, and the appearance -
there of fresh enemy troops increases the possibility of a major
enemy effort to break through unrested South Korean divisions
to Taegu. On the east coast, enemy strength has been increased
in the Yongdok area by the appearance there of the Fifth Division,
and additional enemy troops in undetermined strength are moving
south along the east coast road below Samchok.
US and British fleet units conducted a carrier air strike
against southwestern Korea during the past 24 hours, but in 110
sorties over the Kunsan-Mok0o-Kwangju area the pilots could find
no enemy troop concentrations or movements. The enemy is
apparently observing strict camouflage discipline and moves on
the roads by night whenever possible.
�
Document De.
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2. Dutch interested in forming air unit for Korea--US Ambas- C/A1S
sador Chapin at The Hague has learned from an intermediate
source that the Chief of the Dutch Air Force is very much
interested in the possibility of forming a Dutch fighter plane
unit (using US planes) for UN service in Korea. The Air Force
Chief has in mind the battle -experie ced pilots and ground
crews in Indonesia, who could use US F-51 Mustangs now
being taken out of moth balls. Chapin points out that although
the Dutch approach was not made officially or through normal
diplomatic channels, the Chief of the Dutch Air Force "must
have had some authority" for his offer.
GERMANY
3. HICOG estimate of Soviet actions in Germany during 1950-- CM/S
US High Commissioner McCloy in Frankfort transmits the
High Commission's estimate that during the remainder of C/49/5
1950 the USSR will intensify its efforts to overthrow by
disruption and subversion the present social and economic
order in West Berlin and Western Germany. The Commis-
sion believes that only the outbreak of global war or drastic
Western action as yet unscheduled would alter present Soviet
plans for Western Germany during 1950. A new danger period
will probably begin for West Berlin, possibly in conjunction
with a Soviet grant of "some form of peace settlement" to
the German Democratic Republic, which is most likely to
occur following the 15 October elections scheduled for East
Germany. There will also be increased pressure for the with-
drawal of We'stern occupation forces and the USSR will intensify
Its efforts to establish subversive networks throughout West
Germany. The Commission feels that during the next few years
the USSR is willing "to go very close to precipitating a world war"
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in an effort to win all of Germany and that the USSR will
make preparations for an eventual attack by the East German
republic against Western Germany. The inability of the Ger-
man Federal Republic and the Western Powers to solve West
German problems tends to discourage the Germans from com-
mitting themselves unequivocally with the West; the Commission
feels this German reluctance will grow.if the campaign in Korea
continues to be unfavorable to the US and UN.
(CIA Comment:. CIA concurs in the above estimate.)
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� KOREA
/3
25 JUL 1950
1. North Koreans launching supreme effort to drive out UN forces--
The invaders are massing all available manpower and equipment
along the entire front in what may be their supreme effort to drive
the UN forces into the sea before US reinforcements can arrive
to redress the present North Korean superiority in troops and
armored equipment. The North Koreans are continuing their
unopposed drive through southwestern Korea, with an enemy
force in regimental strength reported to be in the coastal city
of Mokpo. Along the front from Taejon to the east, the enemy
continues to mass troops and materiel and to increase pressure
against US and South Korean positions. Two new North Korean
divisions, have been identified in the central sector, which, com-
bined with the shifting of the combat-wise North Korean First
Division, indicates preparations for a major push south toward
Taegu and Kumchon. Enemy troops south of Yongdok on the
east coast were pushed back one mile by US-South Korean forces,
but the situation remains serious. Aircraft of the US Seventh
Fleet are striking at enemy troops in southwest Korea.
Reports from refugees indicate that Seoul, the former South
Korean capital, is suffering from inflation and a rice famine, with
rice prices there ranging from 7 to 11 times the levels prevailing
in Pusan and Taegu. On the third day of enemy occupation, author-
ities confiscated all rice found during a house-to-house search and
the people in Seoul have been without rice since that time.
/2. Possibility of UN Commission for. Yugoslavia being examined-- ei19
The Department of State has instructed the US delegation to the
UN to investigate the possibility of having the UN Security Council
establish a fact-finding and observation group to be sent to
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Yugoslavia. Because the UN Commission in Korea was ex-
tremely useful in enabling the SC to meet the Korean crisis
promptly and vigorously, the Department believes that the
formation of a similar UN group for Yugoslavia would not
only demonstrate UN determination to maintain peace and
security but would also be of great benefit in the event of
aggression against Yugoslavia'. The Department is also con-
sidering the desirability of preparations to make UN commis-
sions for other sensitive areas available on short notice.
THE AMERICAS
3. GUATEMALA: Tension and civil strife reported--US Charge
Wells in Guatemala City reports that the tension which had
subsided following recent clashes between anti;governnihnt
student groups and pro-government forces is again building
up damerously and that the next few days will be "extremely
critical." Wells adds that constitutional guarantees, including
the right of public assembly, have been suspended, and dies
the general impression that the country now faces a definite
threat of violence and class war.
(CIA Comment: CIA agrees that the situation in
Guatemala is serious and may lead to further outbreaks of
violence, but local and national security forces will take the
necessary measures to contain current civil disturbances.)
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KOREA
24 Jul 1950
1349
1. Invaders advance steadily along entire front--North Korean
forces are building up additional strength while moving for-
ward steadily in all sectors except in southwestern Korea,
where unopposed Northern troops are sweeping rapidly toward
the southwest coastal towns of Mokpo and Yosu. The invading
forces driving rapidly over the undefended road net of south-
western Korea apparently have the capability of overrunning
the entire southwest. Once in control of Southwest Korea, the
invaders will be in a position to flank the provisional capital
of Taegu, and then to move along the southern coast road to-
ward Pusan. In the western sector, where the enemy has re-
portedly massed 10,000 troops west of Taejon, the North
Koreans have advanced approximately seventeen miles beyond
Taejon toward Yongdom. Enemy pressure against the US 25th
Division sector to the east of Taejon is increasing, and further
east the enemy Fifteenth Division has made small advances.
On the east coast, the enemy has recaptured Yongclok and has
at least two regiments in this area threatening the US position
at Pohang. Planes of "the US Seventh Fleet hit niilitary targets
in the Seoul-ICaesong area during the past 48 hours, and clearing
weather permitted land-based aircraft to give maximum support
to UN ground forces during the past 24 hours.
Ambassador Mucci� in Taegu points out that it is essential
to keep the thousands of refugees crowded into the, remaining South
Korean territory hopeful and confident of the future; he proposes
that the Southern economy be maintained as nearly as possible to
normal and that preparations be made now to Improve the standard.
of living after theend of hostilities. Among the projects suggested
by Muccio are the establishment of technical training institutes for
agriculture, fisheries and mechanical fields'.
1)
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GENERAL
2. High Commission approves west German Laender police force-- C1A
US High Commissioner McCloy in Bonn reports that the Allied
High Commission has agreed upon a. letter, still to be cleared in
Paris and London, rejecting Chancellor Adenauer's request for�
a Federal police force. The letter, however, does give approval
to the establishment in the Laender of a mobile police force, sub-
ject to the supervision of the Federal Government to assure uniform
training and equipment. This mobile force, which cannot exceed�
10,000 men, may be(a) quartered in barracks; (b) specially trained
and equipped; and (c) recruited at large or transferred from the ex-
isting Laender police forces. The High Commission believes that
the Federal Government must have the power to call out and control
these mobile police forces for the duration of any emergency. The
letter concludes by inviting the Federal Government to discuss the
establishment of the proposed mobile force informally with the High
Commission.
(CIA Comment: Chancellor Adenauer will be seriously dis-
satisfied with the authorized number of -police and the limited
Federal controls, and he will continue to press for a larger force
under full Federal control.)
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KOREA
22 JUL 1950
1348
1. Situation Quiet as North Koreans build-up supplies�Relative
quiet has prevailed on the Korean front following the fall of
Taejon to North Korean forces. The principal change in the
front on 21 July was the five-to-ten-mile withdrawal of the
Southern First Corps, located northeast of Taejon. (The US
Twenty-Fifth Division is to replace the Southern First Corps.)
In the central sector, North Korean forces appeared to be
continuing a build-up of supplies. At the same time, elements
of the US First Cavalry Division are now moving forward
southeast of Taejon to relieve the US Twenty-Fourth Divi-
sion. On the east mast, South Korean troops improved their
position north of Yongdok. Air operations have been limited
by bad weather during the past 24 hours; the North Korean
air force was not in action. Allied carrier aircraft have made
a strike on North Korea from the Yellow Sea.
lq
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
1/
THIS DOCUMENT.
2 9 MAR 1978
NO.
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KOREA
121 JUL 1950
1347
1. Taejon falls--US troops dig in to south�Northern Korean forces
have taken Taejon following a sustained infantry attack heavily
supported by tanks and artillery and US troops are now dug in
along a defensive ridge south of the city. Enemy troops moving
unopposed south and west of Taejon_ have been observed below
Chonju on the road to Namwon and appear to be driving for the
southwest coastal cities of Yosu and Mokpo, in an effort to
secure the entire southwest area of Korea. Northern troops
could move from this area toward Pusan along the southern
coast roads. There was no activity on the southern Korean-
held right flank of the US position near Taejon, but Northern
forces suffered local reverses both in the central corridor area
and on the east coast. Despite the reported destruction of large
numbers of North Korean aircraft on the ground by carrier air
strikes this week, Northern planes were in action over southern
Korea during the past 24 hours. A formation of US B-29's was
-attacked over Seoul; two Yaks were destroyed over Taejon after
attacking US-80's; eight Yaks were sighted over Taejon; and
two Yaks were observed over. Poun. US and UK naval units, in
addition to supporting the South Korean forces at Yongdok, bom-
barded troops, roads, and military installations along the east
coast from Yongdok north to Kangnung.
2. Dutch may send two battalions to Korea--US Ambassador
Chapin in The Hague has been informed "in strictest confidence"
by Fockema Andreae, Dutch Secretary of State for War, that
despite the official statement that Dutch ground troops would
not be provided for Korea, he has given instructions to prepare
small unitsin the Netherlands and Indonesia on the assumption
that a token Dutch ground force of two battalions would even-
tually be sent to Korea. The Dutch Secretary declared it was
1
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highly important that any future requests for military as-
sistance in Korea should come from the UN to the North
Atlantic Treaty Organization (NATO) and even to the Western
Union (WU) organization, thus providing an opportunity to
demonstrate that NATO and WU had progressed beyond the
paper stage and were ready for concrete action in support
of UN principles. The Secretary also expressed the views
that the Netherlands and Belgium would respond "eagerly
and promptly" to such a request for ground troops and that
WU would be able to make an international brigade available
within two months.
GENERAL
3. US aid to Iran., South Asia favored--US Ambassador Grady
in Tehran, in discussing the advantages of extending the pre-
sent US foreign aid program, expresses the opinion that US
aid would be highly useful to Iran, Afghanistan, Pakistan,
and India, not only for its material effects but even more
for the increased confidence it would give countries which
"are clearly in a precarious position" and feel that US aid
has "skipped over them." In the case of Iran, Grady asserts
that a grant program, involving first year capital expenditures
of up to $50 million, is "almost essential" to cover projected
health, sanitation, and agricultural projects which might not
meet Export-Import Bank loan standards and to provide addi-
tional technical assistance. Grady adds, however, that US
aid "can be fruitless if we are over-generous" and that
loans rather than grants should be used whenever possible.
Grady cites Pakistan as a country in which maximum use
should be made of the loan principle and expresses "serious
doubts" about the advisability of making any outright grants
to India.
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EUROPE
4. YUGOSLAVIA: View on US military aid--US Ambassador
Allen reports from Belgrade that the Yugoslav Deputy Foreign
Minister has stated that although his government might be
expected to request arms of the West in present circumstances,
it would be unwise for Yugoslavia to do so. The Deputy For
Minister added that it would be wiser to obtain the arms
from other sources because a request for arms from the
West would create difficulties for both and "could be taken
by the USSR as direct provocation and as ,a pretext for mili-
tary action." The Yugoslav official also pointed out that
Yugoslavia's efforts to build up its own defenses necessarily
increased its dependence on foreign economic aid, a situation
which he feels "the US had failed to take fully into considera-
tion" in its economic arrangements with Yugoslavia.
5.-GREECE: Deputy Premier says new government likely--
Deputy Prime Minister Papandreou has informed US Embassy
Athens he regards the present Cabinet as inadequate for the
needs of the hour and no longer capable of surviving. Assert-
ing that Prime Minister Plastiras' leniency toward Communists
and fellow travellers has destroyed confidence in his leadership,
Papandreou expressed the belief the only solution would be for
Plastiras to resign, meanwhile pledging support to a reshuffled
centrist government until such time as new elections would be
"appropriate." Papandreou believes it would probably be
most expedient for him to assume the premiership himself tem-
porarily, with Liberal leader Venizelos later assuming the post.
The Embassy considers the establishment of a new government
under Marshal Papagos to be the most likely consequence of
Plasiiras' fall.
. (CIA Comment: With Plastiras' three major colleagues
the�government�Papandreou, Liberal leader Venizelos, and
Minister of Coordination Tsouderos --expressing doubts about
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the present Cabinet, its early fall appears inevitable. CIA
doubts, however, that Papandreou's hopes of establishing a
new centrist government can be realized. CIA agrees with
Embassy Athens that a Papagos government will probably
emerge, although the possibility exists that political senti-
ment may crystallize in favor of the appointment of some
neutral figure such as ex-Premier Diomedes to head a care-
taker government empowered to take extraordinary measures
in the event of an emergency.)
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KOREA
V hP gof Ix mr
1346
1. Possession of Taejon in balance--North Korean tank-infantry
teams have penetrated the outskirts of Taejon where the situa-
tion continues to be fluid. Early official reports indicate con-
siderable success for US anti-tank weapons in this engagement.
The area held by the Southern First Corps immediately east of
the US position at Taejon has remained relatively quiet. Further
to the east, the invaders are continuing to press down the central
corridors leading to Kumchon and Taegu and brisk action is
taking place on the east coast in the vicinity of Yonga4 Although,
poor weather restricted air operations somewhat du`41ns the past
24 hours, a second strike on North Korean targets was Oade by
carrier aircraft. Claims include eighteen aircraft destroyed and
�
two damaged on the ground, two gunboats strafed and damaged,
five tank-cars burned, four locomotives destroyed, and a large
chemical plant set on fire. The attacking aircraft found the Wornsam
oil refinery still burning from the previous day's raid.
The United Nations Commission on Korea (UNCOK), currently
located in the southern port city of Pusan, has decided that under
present circumstances the mission of UNCOK observers should be
expanded. The number of observers will be increased and the Com-
mission's expanded duties will include the investigation of atrocity
stories to prepare factual reports to the UN. Other UNCOK respon-
sibilities include gathering information from refugees and other
sources to provide social and political guidance for the future and
duties relating to "the eventual withdrawal" of the invading forces.
2. Swiss view of Soviet strategy--US Minister Vincent in Bern trans-
mitt a report from Swiss Political Under Secretary Zehnder that
there are two theories in the Political Department regarding
possible Soviet action arising from the present Korean situation.
Document No.
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The first, which Zehnder feels is not supported by currently
available evidence, is that the USSR will endeavor to create
difficulties for the US on a number of fronts while keeping
out of any direct involvement, in the hope of weakening the
US by dispersing its forces. Zehnder, a specialist on the
USSR, favors the alternative view that there will be no
further Communist aggression while the Korean hostilities
continue; he also believes the Kremlin desires to avoid a
global war. In support of this view, Zehnder argues that it
is contrary to the Russian temperament and history to be-
come involved, even indirectly, on a number of fronts; he
maintains that the Russian always avoids a dispersal of forces
and thinks militarily and politically in terms of concentrated
mass effort. Zehnder reported there was some evidence in
recent Russian-language broadcasts indicating the Soviet public.
is being prepared for a government move to reestablish peace
in Korea or for the eventual failure of the Communist venture
there. Zehnder added that the Swiss Government and public
generally welcomed the speed and determination with which
the US had met the Korean crisis.
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24949 TOP S RET 1345
DEKTIM:
KOREA
1. Lull in combat operations broken--The lull in combat opera-
tions around Taejon is being broken by heavy bombardment
from North Korean positions near the outskirts of the former
provisional capital of South Korea. Considerable enemy move-
ment in the vital central Korean corridors� leading to the south
took place during the past 24 hours, and US aerial observers
report a continuing build-up of enemy tanks, trucks, and troops,
Which may indicate preparations for an all-out attack against
the main rail line at Kumchon and Taegu. The rich rice area
of southwest Korea is virtually undefended, and other invading
forces advancing to the west of Taejon may attempt to secure
this region for North Korea. On the east coast, the US 1st
Cavalry Division has completed disembarking at Pohang and is
already several miles inland; carrier aircraft from the landing
support force struck hard at airfields and installations north
of the 38th Parallel.
Past failure of the Republic of Korea to win the support
of its restless student class may lie behind reports that over
50 percent of Seoul's students are actively aiding the Corn-
mivlist invaders, with many voluntarily enlisting in the Northern
Army.. Among other elements of Seoul's population, the working
class generally supports the Northern Koreans; merchants are
neutral and the intelligentsia continue to be pro-Southern. North
Korean troops and police are rather inconspicuous in _Seoul. Com-
mercially; the city is nearly "dead"; - streets are crowded, however,
especially with youths engaging in Communist demonstrations.
2. FRANCE: Views on Western European defense�US Ambassador
Bruce in Paris, in discussing the impact of recent Korean events
on the people of France and other Western European nations, ex-
presses the opinion that new planning and action for the defense
of Western Europe are needed if the Western Europeans are to
CONFI IA12
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THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
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be kept from "yielding ultimately and perhaps rapidly, to the
counsels of despair.' Bruce feels that recent events in Korea
have made the French feel more defenseless than ever, and if
US reverses continue, there is a danger that France will be-
come convinced that the US would be incapable of repelling an
invasion of France or its neighbors. The Ambassador points
out that for months the "neutralists" in France have been
spreading the doctrine that, because the US is powerless to
protect Western Europe and France cannot avoid destruction
in the event of war, France should not support the NAT and
the MDAP, which create the illusion of security. Bruce ob-
serves however, that the French are singularly calm in the
face of recent events, and he believes they would respond
vigorously to radical measures designed to transform paper
security into reality.
�
3. SOVIET UNION: No evidence of general mobilization in Moscow--
'WA fi5
US Military Attache Moscow reports there is no evidence avail-
able in Moscow of increased mobilization or induction of reserves.
The Attache adds that the number of men of various ages being
called for military service is not alarming, and points out there .
has even been a recent increase in demobilized men on the streets
of Moscow. Activity at the War Ministry, military committee
offices, railway stations, and similar places does not indicate
that Soviet reserves are being called into service.
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24949 TO.P
KOREA
7,a JUL 1950
1345
1 Lull in combat operations broken--The lull in combat opera-
tions around Taejon is being broken by heavy bombardment
from North Korean positions near the outskirts of the former
provisional capital of South Korea. Considerable enemy move-
ment in the vital central Korean corridors leading to the south
took place during the past 24 hours, and US aerial observers
report a continuing build-up of enemy tanks, trucks, and troops,
which may indicate preparations for an all-out attack against
the main rail line at Kumchon and Taegu. The rich rice area
of southwest Korea is virtually undefended, and other invading
forces advancing to the west of Taejon may attempt to secure
this region for North Korea. On the east coast, the US 1st
Cavalry Division has completed disembarking at Pohang and is
already several miles inland; carrier aircraft from the landing
support force struck hard at airfields .and installations north
of the 38th Parallel.
Past failure of the Republic of Korea to win the support
of its restless student class may lie behind reports that over
50 percent of Seoul's students are actively aiding the Com-
munist invaders, with many voluntarily enlisting in the Northern
Army. Among other elements of Seoul's population, the working
class generally supports the Northern Koreans; merchants are
neutral and the intelligentsia continue to be pro-Southern. North
Korean troops and police are rather inconspicuous in Seoul. Com-
mercially; the city is nearly "dead' streets are crowded, however,
especially with youths engaging in Communist demonstrations.
2. FRANCE: Views on Western European defense--US Ambassador, C/4/
Bruce in Paris, in discussing the impact of recent Korean events
on the people of France and other Western European nations, ex-
presses the opinion that new planning and action for the defense.
of Western Europe are needed if the Western Europeans are -to
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be kept from "yielding ultimately, and perhaps rapidly, to the
counsels of despair. Bruce feels that recent events in Korea
have made the French feel more defenseless than ever, and if
US reverses continue, there is a danger that France will be-
come convinced that the US would be incapable of repelling an
invasion of France 'or its neighbors. The Ambassador points
out that for months the "neutralists" in France have been
spreading the doctrine that, because the US is powerless to
protect Western Europe and France cannot avoid destruction
in the event of war, France should not support the�NAT and
the MDAP, which create the illusion of security. Bruce ob-
serves, however, that the French are singularly calm in the
�
face of recent events, and he believes they would respond
vigorously to radical measures designed to transform paper
security into reality.
e.
3. SOVIET UNION: No evidence of general mobilization in Moscow-- 4x,40
US Military Attache Moscow reports there is no evidence avail-
� able in Moscow of increased mobilization or induction of reserves.
The Attache adds that the number of men of various ages being
called for military service is not alarming, and points out there .
has even been a recent increase .in demobilized men on the streets
of Moscow. Activity at the War Ministry, military committee
offices, railway stations, and similar places does not indicate
that Soviet reserves are being called into service.
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KOREA
� At JUL 1950
1344
1. North Koreans move toward Taelon-Taegu railroad--
In the major battlefront area near the deserted city of
Taejon, North Korean pressure again relaxed temporarily
during the past 24 hours while further to the east the enemy
forces continued to make slight advances in two flanking
moves aimed at cutting the vital Taejon-Taegu railroad be-
hind US units in the Taejon area. The enemy is still capable
of further advances from its bridgehead south of the Kum
river aiid is apparently massing for a major move just to
the east'of Taejon. Meanwhile, in the flanking moves to the
east, the enemy #.5th Division is threatening Mungyong at
the head of the north-south corridor leading to a_point on
the Taejon-Taegu raitlinebeliind 11g-forces in the Taejon
area; and further to the east, substantial elements of the
enemy 5th Division are infiltrating the approaches to the
Naktong Valley leading directly to Taegu. Advance elements
of the US 1st Cavalry Division have landed to reinforce the
US-held harbor of 'Pohang on the Korean east coast. US
planes shot down two Yak-0"i. in the Kongjit area and claimed
destruction of 10 enemy tanks, 67 truCks, two locomotives,
and one bridge.
EUROPE
2, FRANCE: Steel syndicate swings against Schuman Plan--
US Ambassador Bruce in Paris reports that the French steel
syndicate and the employers' association have begun a strong
movement of opposition to the Schuman Plan, and are trying
to gain the support of those steel producers and industrialists
who tend to favor the Plan. Leaders of the French steel
cartel, fearing German and Belgian competition, have been
�
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convinced by the first weeks of negotiation on the Plan that
it cannot be twisted to permit the French cartel to dominate
the projected organization. Opponents of the Plan have
threatened to bring pressure to bear on Parliament and
believe they can influence Parliament to defeat the Schuman
Plan. According to Bruce, French officials believe the steel
syndicate and employers' association have overestimated
their influence on Parliament.
(CIA Comment: CIA believes opponents of the
Schuman Plan will not be able to bring sufficient pressure
to bear on the Assembly to prevent ratification of a treaty
agreed to by the six nations currently discussing the Schuman
proposals.)
NEAR EAST- AFRICA
Iiidans, Afghans seek US-UK action in Pathan dispute--US
Ambassador Henderson in New Delhi reports that both the
Afghan Ambassador and the Indian Government have called
upon him to emphasize the gravity of Afghan feelings over
the Pathan tribal situation and to urge that the US and UK
prevail upon Pakistan to negotiate the problem with Afghani-
stan. The Afghan Ambassador recently informed Henderson
�that Afghan feeling over Pakistan's "repressive" treatment
of its Pathan tribesmen was such that further incidents in the
tribal area might lead to an uncontrollable incursion of
Afghan tribesmen across the Pakistan border and possibly
to actual Afghan armed intervention. Later, Secretary Gen-
eral Bajpai of the Indian External Affairs Ministry made a
similar request for US-UK intervention, arguing that an
outbreak of Afghan-Pakistan hostilities would present the
USSR with "just the kind of opportunity" it was looking for.
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Bajpai asserted that India was trying to restrain Afghanistan
but added that the Afghans were convinced that their interest
in the tribesmen was legitimate and that they would not be
deterred by anything the UN might do. In reply to Henderson's
observation that Pakistan had agreed to discuss the matter if
Afghanistan recognized that the tribal territory was an integral
part of Pakistan, Bajpai stated that he hoped the two countries
could be persuaded to negotiate without prior conditions.
(CIA Comment: These parallel representations appear
to be an Indian-encouraged attempt by Afghanistan to force
concessions from Pakistan by capitalizing on US concern over
the stability of the area. Although Afghan public opinion is
undoubtedly exercised over the Pathan problem, there are
no indications that feeling has reached the pitch described
by the Afghan Ambassador. India, which has shown signs of
encouraging Afghanistan vis-a-vis Pakistan in the past, may
well be motivated in this instance by a desire to thwatt
Pakistan's plans, to send troops to Korea.)
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KOREA
1. North Koreans move on Taejon--North Korean troops have
cri5ssed the Kum river in force and despite heavy losses are
now driving against outnumbered US troops into the outskirts
of Taejon from the west. Immediately to the east of Taejon,
a heavy infiltration of enemy troops on the US right flank
threatens to drive a salient between US troops and the South-
ern First Corps in the Munui area. Further to the east,
South Korean troops repulsed an enemy attack north of
Hamchang but were driven from Yongju, at the head of a�
corridor leading south to Taegu. US air attacks during the
past 24 hours destroyed 13 add damaged 15 enemy tanks,
and reportedly destroyed three bridges. A US naval air
patrol reports that the 50-ship fishing fleet first sighted on
, 12 July has continued to move south and is now near the 38th
;.Parallel.
President Rhee has assigned compand authority over
all South Korean land, sea, and air forces for the duration of
hostilities to General MacArthur in his capacity as UN com-
mander. Rhee has also replaced Home Minister Paek, with
Dr. Chough Pyungok, who has a reputation for being both
tough and politically ambitious. US Ambassador Muccio re-
ports that the 50,000 well-organized and well-led police
available in South Korea can be used to assist US troops by
spotting infiltrating Northerners in combat areas and to fight
as small combat units. Senior US Army field officers have
agreed that South Korean police units should be armed with
grenades and machine guns both to offset any guerrilla
superiority in weapons and to bolster police self-confidence,
Document No.
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USY: 1978 612---.�C�
Date: MA
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5/5 2. SPAIN: Reaction to world situation following Korean outbreak--
US Charge Culbertson in Madrid estimates that Franco feels
that recent events in Korea have sharpened the lines between
the West and the USSR, thus strengthening his position and the
international position of Spain. Culbertson discounts the possi-
bility that Franco could "carry the Spanish Government" into
a fundamental change of Spain's present policy toward the USSR;
he points out that there is more evidence indicating Franco may
be considering altering Spain's present policy toward the US.
On balance, however, Culbertson concludes that present evidence
probably indicates that Franco will only withdraw-deeper into.
the isolation which has been Spain's role in Europe during the
20th century. Increased Spanish isolation, Culbertson feels,
would raise the cost of inducing Franco to make common cause
with the West. Culbertson postscripts that, although Spaniards
would certainly resist aggression and welcome foreign assist-
fl in case of attack, the government does not now appear
interested in assuming the responsibilities of an ally in general
defense of Western Europe.
/4/5 3. PAKISTAN: May offer ground troops for use in Korea --US
Ambassadbr Warren in Karachi reports that Pakistan is
seriously considering the offer of "one or more brigades" of
ground troops to the UN for service in Korea but is concerned
about the effect of such a commitment on Pakistan's own
defenses. Pakistani Foreign Minister Sir Mohammed Zafrulla
Khan told Warren that he and Prime Minister Liaquat Ali Khan
were convinced that Pakistan was "already committed" in the
event of further aggression or general war; both were deter-
mined to do what they could, and were confident that they could.
obtain popular support for the use of Pakistani troops in Korea.
Zafrulla requested US "advice" regarding Pakistan's defenses,
pointing out that providing troops to the UN would leave Pakistan
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unable to fight even a delaying action against a Soviet attack
through the Kyber or Cha.uman passes and would also weaken
Pakistan vis-a-vis India. Warren comments that the Pakistani
leaders, though quite aware of the "tremendous effect" they
might achieve through an offer of troops, would, before com-
mitting themselves, like a "friendly and sympathetic assurance"
from the US regarding what help they could expect in case of
'attack.
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KOREA
ONFID TIAL!
1341
1. Pressure on US troops eased somewhat--During the period
immediately following the withdrawal oi-US troops south of
the Kum river, the invading forces opposite the US positions
have confined themselves to probing action in considerable
strength along the Kum river and reorganization of Northern
units in rear areas. To the east, North Korean troops have
already crossed the Pogang river and may soon force the
South Korean First Corps to evacuate the important defense
center of Chongju. Further to the east, invading forces con-
tinue their slow advance through difficult terrain toward the
open corridors leading south to Kumchon and Taegu. During
the past 24 hours, US and Australian air strikes knocked out
9 enemy tanks and more than 50 vehicles; other air operations
struck at the invader's lengthening lines of communication.
US naval units along the Korean east coast bombarded roads,
troop concentrations, railway yards and oil tanks in enemy
" controlled territory south of the 38th parallel.
Foreign diplomats and UN representatives in Korea
have been notified that the South Korean Government is
moving its provisional capital to Taegu, 60 miles northwest
of the important port of Pusan. US Embassy personnel are
moving to the new Southern capital. Dr. Chough Pyungok,
a South Korean leader who just returned from a trip "
through Southern-held territory, reports that the people re-
main calm and strong in their support of the Republic of
Korea. As an example of the people's loyalty, they are offer-
ing to sell the Government their rice and other farm products
at prices lower than those available in the open market. In
North Korea, a propaganda line is being issued which pi:dills
to the US withdrawal in China in the face of Communist'
� strength and which claims that the US Will also withdraw its
support from South Korea when the invaders have pushed
farther sOuth.
0 / I
THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
No 2 9 MAR 1978 LY
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THE BALKANS
2. Yugoslav estimate of reported Balkan troop movements-- e / 9-15
US Ambassador Allen reports from Belgrade that, although
rumors of Cominform troop movements in adjacent Satellites
continue, the Yugoslav Government has nothing new on the
subject p.nd "on balance" does not believe an attack is
imminent. The Yugoslav Government considers the current
rumors to be part of the-Soviet war-of-nerves, a view in
which the Military Attache in Belgrade concurs. Allen adds
that the Yugoslav Government, though not worried, is closely
watching the situation and that recent Yugoslav press releases
on hostile Satellite activities were made for their propaganda
value in attempting to discredit the current Soviet 'peace
campaign" propaganda.
(CIA Comment: Although current rumors of troop
movements in the Balkans are considered to be part of an
intensified Soviet war-of-nerves in Europe, armed aggression
against Yugoslavia must be regarded as a continuing possibility.)
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CONFI
KOREA
JUL 1950
- � 1342
1. North Koreans breach Kum river line--North Korean forces
are pressing their attack along the 90-mile front running
from Kongju on the Kum river, where US troops have been
forced to fall back, east to the ea of Tanyang. After a
brief reconnaissance of suitable crossing sites and two un-
successful attempts to cross during daylight hours, the North
Koreans forded the Kum river below Kongju under cover of
darkness and overran a US artillery battalion position. US
forces in the immediate area are withdrawing in the direction
of Taejon, while other US troops continue to hold the Kum
river line east of Konju. Farther to the east, however, the
invading forces have advanced 9 miles south of Chongju and
increased the threat of an encirclement of Taejon. In the
course of air operations, two YAK fighters on the newly-
repaired Kimpo airstrip were reportedly destroyed, and one
US B-26 was severely damaged by Northern fighters.
North Korean radio broadcasts continue to present
speeches attributed to US prisoners criticizing US action in
Korea. US prisoners making such statements are unques-
tionably under coercion; typical quote. . . "it is the belief of
this group of prisoners that. ethe Korean people 5hould7
be permitted to evolve their own international protilenris.
Other North Korean broadcasts strongly deny that US prison-
ers have been murdered and claim that the "People's Repub-
lic" is treating captured Americans in accordance with
international law. Meanwhile, there are indications that
Pyongyang, the North Korean capital, may become the seat
of a government of a "Japanese People's Provisional Repub-
lic" staffed by Japanese Communist leaders. Seven Central
Committeemen of the Japan Communist Party, who were re-
5.4cently "purged" by SCAP, have escaped police surveillance
aiid 4-re reported to have departed for Pyongyang to provide
a nucleus for this "Provisional Republic.'
1
0/
THE C. I . A. HAS NO OBJECTIOg
TO THE DECLASSIFICATION OF
THIS, DOCUMENT.
9 MAR 1978 013
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CHINA
2. Chinese Communist vessels in Hong Kong--US Consulate
General Hong Kong has expressed concern to the Govern-
ment of Hong Kong lest six small merchant vessels there
(on which the US holds mortgages but which are under
Chinese Communist control) be moved to Chinese mainland
ports. The Consulate General has asked the Hong Kong Gov-
ernment to cooperate in preventing the departure of the ex-
Nationalist ships.
(CIA Comment: The movement of these vessels
seaward from Hong Kong would involve some risk of seizure
by Nationalist warships still maintaining a limited "blockade"
of the Chinese mainland, and the Chinese Communists are not
likely to take such a risk at this time simply to supplement
their limited ocean-going merchant fleet. However, the six
vessels are modern and fast, and although they would only
slightly increase the Chinese Communists' total military
capacity for any assault on Taiwan, they could be of some
specialized value in such an operation. If the ex-Nationalist
ships attempt to leave Hong Kong, the Crown Colony Govern-
ment almost certainly will not take restraining action without
direct orders from London similar to those recently issued
detaining the disputed aircraft at Hong Kong.)
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/04k1
KOREA
IP JUL 195(
1340
1. North Korean forces continue to exert heavy pressure--
North Korean forces are continuing to press forward south
of Chonan toward Taejon and US units have now withdrawn ,
to positions south of the Kum river. Movements of North
Korean forces west of Chonan indicate the invaders may
attempt to flank the Kum river line from the west; other
North Korean forces being held in reserve are in position
to exploit any Northern breakthrough to the east between
the US right flank and the South Korean First Corp left
flank. Repeated enemy probing action against the positions
of the Southern 6th and 8th divisions in the Chungju-Tanyang
area maintains the threat to the corridor leading to Kumchon.
No substantial developments have been reported from the
east coast. North Korean planes reappeared, with one US
B-29 and one observation plane being shot down during the
past 24 hours.
ECA observers in Korea report that no food shortages
exist in areas now under South Korean control, and none are
expected to develop in the near future. The demolition of
the Han river bridges during the early days of the invasion
prevented a mass movement to the south and in general
minimized the refugee problem.
2. British Foreign Office views on Taiwan--US Ambassador
Douglas in London reports the belief of the British Foreign
Office, that the weight of evidence available indicates the
�Chinese Communists will delay an attack on Taiwan Inde-
finitely. A high Foreign Office official also expressed the
opinion that although the US legal position on Korea is secure,
� the Foreign Office is "far less happy" over Taiwan. The
()Metal� pointed out that both Indian and Burmese representa-
tives in London were uneasy about US actions involving Taiwan;
h expressed the fear that if the USSR attacked the US action to
4-"n tfilize Taiwan, the US could not begin to count on the same
unanimous support of the democratic nations as that received
Document No.
on Korea.
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KOREA
1. North Koreans force defenders to fall back�The superiority
of the North Korean forces in both numbers and equipment
is forcing the US and South Korean forces to withdraw in the
face of concentrated artillery, tank and infantry attacks.
The two or three North Korean divisions attacking the four
US battalions deployed in the Kongju-Chochiwon area will
probably force the defenders to fall back to defense positions
along the Kum river.
The prospects for political stability in the areas
under control of South Korean and US forces have not changed
appreciably during the past 24 hours. Reports from Southern
areas now occupied by the invading forces confirm earlier
rumors that recruiting for military service is now in progress
in Seoul. The North Koreans have also instituted a compulsory
labor draft, possibly to meet emergency transport needs aris-
ing from recent damage to transport facilities from US air
strikes. Food is reportedly becoming scarce in Seoul and the
"People's Committee" there began taking a strict census,
apparently to identify all families and relatives of personnel
in the South Korean armed forces, police and government.
2. Possible Assault on Taiwan�US Embassy Saigon transmits
a US Army report that the Chinese Communist Government
is planning an attack on Taiwan "around 15 July" and that
the attack may coincide with an uprising on the island. As
supporting evidence the report points to: (1) recent troop
movements and concentrations in East China; (2) prepara-
tions of Chinese mainland airfields and the arrival of aircraft
and personnel needed for airborne operations; (3) recent
declarations regarding Taiwan by Chinese Foreign Minister
Chou En-lai; (4) a reported journey to Moscow by Mao Tse-tung
on 4 July; (5) a recent Nationalist purge on Taiwan which source
believes will strengthen opposition to Chiang Kai-shek; and
(6) the extent of the US involvement in Korea, which source
* JUL 19b11
1339
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feels increases prospects for the success of an early
attack on Taiwan.
(CIA Comment: CIA has no information regarding
a second Moscow trip by Mao nor is there any available
evidence supporting the report that Communist China has
selected 15 July to invade Taiwan. However, an analysis
of recent Chinese Communist troop movements, propaganda
and press comment indicates that the Peiping regime may
now be capable of launching an assault against Taiwan.)
CORRECTION
In item 2 of the Daily Summary of 11 July 1950
the word Koreawas inadvertently substituted for the. word
Formosa in the second sentence. The corrected version
follows.
India sees Formosa question as serious threat to peace
SecretaryGeneral Bajpai of the Indian External Affairs
Ministry has informed US Ambassador Henderson in New
Delhi that India is "deeply disturbed" over the possible out-
break of war between the US and Communist China over
Formosa. Bajpai pointed out that India was urging on Com-
munist China the necessity of exercising restraint, and ex-
pressed the hope that the US could find some way of alleviat-
ing the strain, possibly by a public statement to the effect
that US measures involving Formosa constituted temporary
police action without territorial designs against Formosa.
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KOREA
11 JULIO)
I. Northern forces advancing steadily--The pattern of the
movement of North Korean forces, which have pushed
forward steadily during the past 24 hours against in-
creasing resistance from la atc:and groUndlorces, indicates
that the invaders are preparing to launch a two-pronged
drive against Taejon. North Korean troop concentrations
in the Chonan-Chinchon area are attempting first to outflank
Chochiwon which will than place them in, a:progition to curve
toward Taejon from the west; invading forces in the Umsong-
Chungju area are preparing to outflank Taejon from the east
and North Korean elements may attempt to cut communications
between Taejon and Taegu. The reorganized Southern First
Corps, faced with heavy pressure from invading forces in the
Umsong-Chinchon area, withdrew east and south to new positions.
Increased activity by Northern forces was reported along the
east coast.
�US Ambassador Muccio reports that President Rhee, who
Is Atheerful, composed and resolute," has agreed to remain in
Taegu for the time being. Rhee feels strongly that for morale
reasons there should be no formal transfer of the Cabinet to
Taegu, but he has agreed that the National Assembly Emergency
Council should assemble in Taegu. The number and actiinity-
of small guerrilla bands near the Southern city of Pohang are
reported to be increasing. Further military successes by the
Northern forces will encourage these and Other guerrilla forces
to extend their operations.
1338
2. India sees Formosa question as serious threat to peace-- Secretary 5/5
general Bajpa,i of the Indian External Affairs Ministry has informed .5/ 7-5
up Ambassador Henderson in New Delhi that India is "deeply
distiv4150" over the possible outbreak of war between the US and
1
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