WEEKLY INTELLIGENCE SUMMARY NO. 20

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010020-3
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 20
• Publication Date: July 13, 1948
• Content Type: REPORT

Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010020-3 ,
DECLFa~ir I1/D
Class. Cfii't?:~~ T0: TS S
OPFICfi OF REpORT3 AWD ffiTt ~figE3;:.~o~~~~yy t?pr 77
Bi.Mf~9. ==?--
Weekly Intolligeneo Stumnary Flo. 20
SDCTIOH I> SIJ6~ARY OF TRig9D3 ARD DEVELOP6EffiTS
'sy'
.~
1~ July 1948
Communist interests era apparently succeeding in establishing and
expanding aoamorcial sir operations outside the territory of Sovlot-
controlled States in spite of US efforts to block suah maws. Ctecbaalo-
vat; Airlines {CSA) has developed a profitable business in the transport
of passengers end cargo Prom Rome through Athena to Haifa, and hao oon-
solidated its position ae a Friendly carrier for Joaish interests in
Palestine, Aotivo negat?atione, moreover, are now under way between CSA
and the Zfoniat?.controllod and finariood Pan African Air Charters (PAAC)
for soint operations of a route from Airopo through Haifa to South Africa.
If a Point CSA-PAAC airline should be designated as the official flag
carrier oP the State of Israel {reportedly under discussion), CSA efforts
to obtain modern lance range aircraft (hitherto frustrated by the US and
.other Western I~ropean passers) and extend its sir routes mould be enhanced,
Furthermore, through affiliation wifi3i powerful Jorsish interests, CSA might
participate in the greatly expanded world-T~rido operations envisaged for the
State of.Iarael by Jewish aoTnmeraial onterpris?,
the IIS is sendittg a special representative with the rank of 15iniator
to tdexioo Cfty in a final attempt to resolve the existing impasse in
.negotiations for a civil aviation agreeaont.
The long-standing French-8itone freight car oxctiange dispute oror inter-
pretation of the agreeeat signed in Paris last 13arch hde non bean settled,
Aa a result, the freight car situation is CBoatorn Germany, admittedly?gao oP
the w cs st is all Flirope, will now be alleviated and t he strained rolatibna
betr~esn.Franca and Bitoafa may bs o~eated to impram.
Turkey hna requested a US survey of FurkiaR merchant merino roquiro-
monte, in connection with the plan to double prewar lkrkiah tonnage and
lesson dependence on foreign flag bottnma. (An obstacle to the Turkish
dos~re for additional. US shipping will bd the necessary expenditure of a
relatively largo amount of dollar oxo}iange,)
Sf~R?ET
 iec~t Commuaiat interests are apparent sucaeeding in eetabliahiag and
expanding commercial ais operations outside the territory of 3avietd
controlled States, Csechoalovak Airlines {CSA), whose declared ambition
is to extend its Lteditorraaosn sorv9.oes to South Africa and India through
the tSfddle East, has stepped up its operations very considerably in the
past tyro months and nos maintains scheduled operations to Istanbul and
' Cairo with daily flights to Haifa in addition to mtmeroua non-scheduled
cargo flights. In Northern Rtrope, Ctochoslovakia has eottcluded s formal
air agreomcnt with tdoraay similar to those made with the US and other
countries, (Soo iG Yleekly Summary ~2, 8 March 1848a
'IIS infozmal suggestions to 75xrkey sad 4reeae that CSA~s operntione
through their territory bo reduced or terminated have boon politely
reiected on the grounds that the future of important trade agreements
now in effect betviceea these aovntries and Csochoslooakie. might be
3eopardized. Consequently, CSA has developed a profitable buainese in the
ttansport of passengers cad cargo from Barre through Athens to Haifa, and
has consolidated its position as a friendly carrier for Je'rrish fatereste
in Palcetiae. Active negotiations, moreover, are noA under way botlcoea
CSli and the Zionist-aontroilod and financed Pan Africea Air Charters
(PAAC) vd,th headquarters in Joheimeaburg, For point operations of a route
from grope through Haifa to South Afrioc~ An agreement between these
aviation interests could benefit CSA~s long-rangy plena.
Asa measure to defeat oapanaioa of ESA operations, the IIS, with the
cooperation of all friendly k~ropean governments, has prevented this air-
line Prom acquiring Constellations or other modern Pour.cagino air trana~
ports. It must now be considered as a possibility, hovrover, that in an
effort to obtain such aircraft to raplsae obaolosoeat DC-S~s, C3A may '
pall upon PAAC for assistenoe. PAAC, backed by?a group reported to oon-
trol'a sum of 260 million pounds sterling, may succeed Where CSA has
failed, in obtaining such aircraft needed to implement plans far future
long-distance operations, If a point CSA-PAAC airline should be designated
as the.officia2 flag carrier of the State of Ysrael (reportedly under disc
cussfon), CSA efforts to obtain modern equfpmotit end extend its air routes
vrould be enhanaod. I~rthermore, through affiliation roA 4:h powerful Jewish
interests, CSA might participate fn the greatly expanded world-firide
operations envisaged for.tha 3tato of Israel by Jowieh oammeraial entsx~-
prisa,
Declassified and Approved For Release 2013/04/24: CIA-RDP78-01617A005000010020-3
 Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010020-3
J L~~Q'
Tho US is serdi a a ecial rosentatiw with rank 'of ffiiniater to
~[exico City 3.n a fine attempt to rose w the a sting impasse in
nogotiatioas for a oivil aviation agreement. {Disouasions rrero initiated
in 1846 sad have aontinuad lnturmittently but with little progress.)
Tha principal obstaala to conclusion of a IIS-t3exioan agrcremeat has
bean lfiexico's traditional oooaomia nationalism,~wbich readers any rooipro-
cal agrovment entered into by the 1loxican Gowramnnt sub~eat to severe
domestio criticism. Ao a result of this factor, sad of Mexico's ?relati.voiy
break civil aviation position; thv Mexioan Gowrnmant, is peat negotiations
frith the i{S, has insisted upon monopoly rights over aortain routes and upon
a regulated division of traffic botcroea US and L4exicen airlines over certain
others. 3uah provisiono are wholly.f.nconoiatont vrith basis US aviation
policy end, if Pdoxico ie un+7i12ing to retract from its present position, it
is .probable that no agreement will bo reaohed and that diacuasion will be
tarmiaatode
Sucoesa of the pro~eatod US mission to Mex3.ao City villl, therefore,
depend largely upon its ability to porauade the Mexicans that as agraanent
will not only protect the rights of tSexioan aviation interests, but that
the expected increase of air oervic?a from the US kill operate to the
financ?al adwntage of F3exiosa b~isinose generally,
IInalass. The halo-British air trena~ort agreanant aigaod in Rome, 25 June,
provides for a fully rooiprocnl exo esige of air treffio rights is aoaordence
pith the liberal principles adopted by the US-and UA in the Bermuda 1.ir
Agre~tant. Italian air anrriora will be permitted to establish air servioos
to Groat Britain, Eaat Africa, South Africa and aorose.tlio 1Qorth Atlantic.
Cam, The long-standing Frenoh-Bizono freight oar.oxchen dge_ isputce over
imorpr?~ion o~'~e agroemoa~ s ~e~in aril i~er'c~FrTiaa-norr bean
settled, The threatened sanctions against Frame by the Bisoae ruthoritiea
may have produced the desired results. (SSe TG 1TOekly Summary.l5 June.)
The'nep agreement provides at. the start for equal dxchang? of care held by
both France nad Biponia, tsith other provisions to bo v:orkod out later:
(F"canoe previously insisted ixpoa a car bomzs from ECA stocks in addition
to ?qual osbhange.) The freight oar situation itil`:estorn Germany,
admittedly ono of the worst in all IIirope, riill new bd allovlatod and the
strained relations botmoon Franco and Bizonia moy be expected t o improve.
JGtI~Ly'
 ;r . ;.
Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010020-3
largely by th? DS, has endeavored to flevelop a merchant (loot for its
forei~ trade in order to loseen its depsndenne upon foreign flag
bottoms. Prior to the ivar, a'tark?y oivn?d about 150000 deadweight tone of
dry oargo merchant vessels, moat of rfiich oporat?d in n?arby caters,
participating very littlo in overseas for?ipa trade. Proaerit plena ca12
For expanding the merchant marine to mor? than daubl? the prerrar'eize and
,for Stato ovmership of approximately 80 percent of the float.
. 25irkey hae ~iuohasad oonsidorabZe toanogo from tho US sad the
1d5.nistar o? Commiiafoationa rob?ntly expressed a desire to secure additiam-
a1 US tonasg? {probably I:iberty chips and other mar-built vessels} IYom
tho IIS. Aa obataole to the soquiaition of suoh additional tonnag?, hou-
evor (in the ?vant that it can be mado availablo to'Turkish operatore),
mAy be the aececsity for'expandituro of a relatively Inrgo amount oP dollar
exchang?. SS~rkey is presently short of such fuads,
!~
Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010020-3