WEEKLY INTELLIGENCE SUMMARY NO. 29

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010029-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 29
• Publication Date: September 14, 1948
• Content Type: REPORT

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Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010029-4
~C.~3ANGE in Class. ^
DECLASSIr:i?~D
OFFICE OF REPOsAs~ ~~fu`i~'t~STO' TS S d
Data: o~By: D~ S ~I
14 Sopt?rnber 1948
S~loeacly Intelliganco Sumaary Nae 2S
TRANSPO~~.RN ,.R~.9?Eiemo, 4 Apr 77
- ~tt~~-REG. 77 1763
SECTION I. 3UL4dARY OF TRENDS AND DEVfsl.OPSfL~(TS
Agreement hetwoen BiBOafa end the Lam Countrioa may ba blockod by
Aeli?an inoistaaoe upon traffic alloaatiott. Belgium Soars that without
sash agreement, Antmorp'may bo reduced to a secondary role in ~aixxa
traffic. (Ttam Na. 11,
Continumd deterioration may bring the Oovormneat.omned blexicsn.rail-
roada to the point where they can ao longer satisfy ovon the minimum
roquiroments of the Gfen9.aan economy. .Effoative action, at thm earliest,
will probably not be takon until tho preeont.tonae political situation
caeca.' (Item No. 2)
Argentina may tear up a large proportion of existing railway lines
is a dosperate attempt to roduoo costs and balonco tho railroad budgot.
Although the ra-equipping and modernivation of her rail system is
hampered by a'tiollar shortage" and strong rinti-US fooling in acme hf~
places, Argentina~s problem will probably be solved, in timo, by a
general US-Argentine economic agreement. (Item No. 3)
The danger of Soviet aontrol of Iran*s airline, at one lima a strong
possibility, nom appears to be greatly reduced. It had boon feared that
Iranian Airnays (Iranair) had paseod to indirect Soviet aontrol through
the acquisition by Iranian agents for the USSa of large blocks of stook.
Aooo xlixtg to the latest information, homovor, these agents, while holding
some stock, have not aeourod a controlling interest. A further favorable
ooourronoe is the final settlement of financial difforenooa between
Irrsnair and Traneoontinental and Woatera Air (TrTA) which formerly operatod
? Gin'6Jl
Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010029-4
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~. SEGRET
the airlin? under oontraot. A third faster faeoring aommeroisl aviation
in Iran is the newly organized Hritiah.:Iranian F,agle Airline which nar8
operates over certain domestic routs. EYnally, there is nest proopoat
of eonolusion of the protraatad US4Iran negotiations for as air agrea~
meet. Such an agreement would go far in stabilising IranQa civil avi.a-
tioa policy beoauae it could sot a proae$ont for similar agresmsnts with
the UH, Frame, the Netherlands and Ssroden whose airlines noTT fly into
Yran on provisional permits, (Item No. 4)
The Polish airline (LOT has grounded five ?Languodoa99 transports
purohesed from Franco in 1947 aino? the aircraft proved uneconomical
and otheriaise unsatisfaotoPy. It is doubtful vrhethor LOT can realize
its plans for oatended operations unless the USSR fe willing to supply
Polish aircraft requiraneats. (Item No. 5)
Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010029-4
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1. Tho inaiateaoo of Belgium upon allocation oP traPfio betaean Dutch
and Bt- giI-an po may D oa a oona3uaion o~ an agreement by thane
aouatrfos with Bisonia. Reduction oP imports into fJestera 6srmany
through Braman and Hamburg and the aoneoquont restoration of Rotterdam
and Antwerp to their aonaal roles in Rhino traffic hav6r bean. the point
' ohjootfw of Belgium and Holland for matey months. Irritation botaroaa
Belgium and the Hethorlends over the issue of allooatfons, havrevor, non
poses, a serious throat to the entire Benelux program.
The Belgian contention that Antvrerp would got only o minor portion
of the traffic, if no arbitrary allooationa are imposed; reflects Peer,
that Rotterdam, because of its mare favorable location, would in'tha
long nun win out in Bay rates war or battle of subsidise for ttituro
business. The Belgian apprehension has been flxrther aacontuated by a
rapid decline fa Bisoae military traffic through Antwerp.
Paradoxically, the bargaining positions of both the Belgian and
8otherlands Qoverffieats via-ervia Bizonia, hav? boon considerably weakened
by the allocation of ECA dollar Panda to Biennia mhiah onn be used For da.
fraying the coat of shipments through Lho low country ports. yfith this
hard currency, the Bizonal;export-import agency (JSIA) is now inn posi-
tion to make contracts directly with barge operntors.of the low countries,
St therefore seams probable that increased use of the lavr country porto
Brill materialize without any agreement on the ()ovoramerital-Bi~ona]. level,
sad thtit the Dutch port oP Eotterdem isill handle the bulk of this traffic
as it dice in the preerar period.
2. Contimaed detorS.oration may bring the. QovormnenL?-owned tdoxican reil+
roads to the point whore they can no longer oatisfy oven the in4ntm?m
ro iromonts of the Etoziaen ones ho-bleak turd a of tdio syst~n is
duo o politic atrangulat on, poor management practices and general
inoffidfonoy shi.ah have resulted is excessive numbers of aeployoea, old
and.daoropit equipment, as Troll na substandard maintonnnco and respair
faoilitfa's,
Stsrong reaentaaent has developed among leaders of H4exioan industry
beaauso of the abesnao of a healthy rails~ey system aapablo of supporting
the economic and industrial growth of the nation: Those groups have
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strongly insisted that President Alomsn immediately roorgoniso sad re-
vitaliae the railroads try nutting the administrative and labor staffs.
Alemen msy~aatually oPPeat some atremnlining at high administrative
levels is order to return the physical management of the syetsm to mam
oP railroad eaporienoo, It is uali.koiy, however, that he Brill tnka sny
notion against the strongly entronahed railroad t~orltvrs ^sladioato^ in
the form of large-sonic releases oP personnel fraan tie padded railrrey
pqy rolls. SPPeotiv~o notion, at the earliest, will probably not bo
taken until the present tense political situation oases.
So Sinao the Ar eatiae Ooverament~urahaaed the British-aenod railway
s tom i as sea 1 e with mouatin costs and deter oration oP
mqupment, rasa in inenoi def'ici s and a eo fo o erp sting condi-
ons. o on ice ass o a tuation eoomo 6ha 1si~ianda, Prosid~f
$arron~s )rational Eoonomia Council, recently announced plane to tear up
40 percent of the existing lines in a desperate attempt to reduce aorta
and balance the rational railway budget.
aehabilitation of Argentine railroads to being hindered by.snti-IIS
Peeling in high circles, which hao been aggravated by the dollar tight-
ncae. Although an Argentine Commiaeion has requested bide on a con-
siderable quantity of rolling stook frcan US Firms; Miranda fs threaten-
ing to re~eot dollar bids regardless of their merits, and has indicated
a desire to place fhe orders with Flxropean firms if delivery can bo
guaranteed. Anti~Ameriean sentiment-may oven Uo carried to the extent
oP Pavoring Satellite suppliers, according to reaont official hints that
Argentina intends to orient its industrial rco-equipment contracts
towards the Ruesioa sphere.
While strong Poraoe are opposing Miraadars,^dollar war? and his
dismantling plane, and a general US-Argentine eoonomio agreement ie
probably only a question of time, no im