WEEKLY INTELLIGENCE SUMMARY NO. 41

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010041-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 41
• Publication Date: December 7, 1948
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010041-0
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Date: Vhe7 December 2848
.YIlir' A-' cry No. 41
SUMMARY OF TRENDS AIID D?7E3,OPI&ER3
Further Soviet attempts to terminate existing operating arrangements
between the railway systems of its Daropean Satellites and Western organi
sations have been revealed. The USSR has now proposed to all central and
eastern Fluropean railway administrations that a joint Satellite operating
company be formed to supply dining and sleeping oar service throughout
the Satellite areas. This would theoretically permit the reduction or
elimination of Western equipment. (Item No. 1, B)
In a move to forestall Satellite withdrawals-from the international
Bern railway Convention, the Swiss Government is exploring the possibility
of transferring the Bern Bureau, which administers the Convention, from
Swiss supervision to that of the United Nations. (Item go. 2, C)
The US and UK Military Governments in Germany have announced that
parcel post packages, including international gift parcels, will no
longer be accepted for transit of the US-UK Zones to destinations in the
Soviet Zone or the Soviet Sector of Berlin. (Item No. S, C)
While German-flag shipping is still confined to Northwestern Europe
and Scandinavia, regular foreign-flag shipping connections are being
rapidly established between the German North Sea harbors and almost
every other port of the world. (Item No. 4, C)
Czechoslovakia and Israel may have agreed, for entirely different
reasons, to terminate one phase of their flagrant violation of the
Palestine truce. While there is no indication of a let-up in the supply
of armaments being made available to Israeli forces, the organized
training of Israeli Air Force combat and transport pilots by the Czecho-
slovak Government has been abruptly terminated. Reports indicate that
--T
 Declassified in Part - Sanitized Copy Approved for Release 2013/04/24 : CIA-RDP78-01617AO05000010041-0
this move was taken on Czechoslovak initiative with resulting dismay on
the part of Israeli officials. The apparent reversal of Czechoslovak
policy, however, may have been mutually agreeable as a logical sequence
to recent events. (Item No. 50 4)
The Government of Pakistan's reosnt negotiations with the Philippine
Government's chosen inafrumont,Philippiue Airlines have brou6-t
out Pokictan'a official attitude toward "fifth freedom" principleo.
(Item no. 6, D)
The Oreenland Administration has now reversed the position it took
in 1945 against scheduled air cervices to Denmark, and negotiations will
be reopened shortly with the Danish airline DDL for such services to
Copenhagen. (Item flo. 7, C)
 -ge
SECTION It. CURREET DEVELOPMUNTS
SURFACE TBASSPORTATION
aasacas ir$ee wu meekly no. S9) have been revealed. The USSR hat now pro-
posed to all central and eastern tropean railway administrations that a
joint Satellite operating company be famed to supply dining and sleeping
car service throughout the Satellite areas. This would theoretically
permit the reduction or elimination of Western equipment.
The USSR undoubtedly believes that Wagons Lite (head office, Paris),
which now sends such equipment into Satellite areas under working
arrangements with the Satellite railways, presents a security danger. On
the other hand, although the USSR is determined to exclude Wagons Lite,
it is not in a position to assist Satellite railways with Soviet or
captured equipment. When Satellite rail experts inspected forty damaged
German sleeping and dining oars, which the USSR had offered to contribute
to a new company, the equipment'was found completely unserviceable.
The Soviet plan will not be implemented immediately in view of the
lack of equipment. Czechoslovakia. in fact, is ready to renew a present
operating arrangement with Wagons Lite. The USSR, however, is likely to
maintain its pressure, and Wagons Lits will probably be progressively
reduced and fin~ll~alimi~pated in Satellite territory as equipment becomes
available.
2. In a move to forestall Satellite withdrawals from the international
Bern railway Convention (See eekly Mo. 9 the Swiss Government is
exploring the possibility of transferring the Bern Bureau, which
administers the Convention, from Swiss supervision to that of the United
Nations. It seems unlikely, however, that the contemplated maneuver would
be effective If the USSR is determined to force the Satellite withdrawals.
The plan, moreover, has encountered difficulties due to Spanish membership
in the Born Bureau and the fact that Switzerland has no voting right in
organ to which the Bern Bureau would be logically transferred.
SET
 a. The US and UK Militar GovornmentEin Germany' have announced that
parcel Pont pac es, inc u in rust on 61 parcels, will no
longer be accepted for transit of the US-UK Zones to destinations in the
Soviet Zone or the Soviet Sector of Berlin. Similar restrictions will
probably be adopted in the French Zone.. This additional curtailment of
interzonal transport was imposed after the USSR had ignored a US-UK
warning that the exchange of mail care must be balanced. The steady loss
of this equipment to the Soviet Zone had reached 1,581 units on 16
November 1948. 50X1
4. While German-flu shi is still confined to Northwestern Europe
and Scandinavia, regular fore gn-fags pping connections are being
rapidly established between the German North Sea harbors and almost
every other port of the world. This activity reflects the marked
economic recovery of Western Germany in recent months,
51 Czechoslovakia and Israel have s d for entirely different
reasons, terminate one phase o e r flagrant violation of the
Palestine truce. While there is no indication of a let-up in the supply
of armaments being made available to"Israeli forces, the organized train.
ing of Israeli Air Force combat and transport pilots by the Czechoslovak
Government has been abruptly terminated. Reports indicate that this move
was taken on Czechoslovak initiative w itb resulting dismay on the part of
Israeli officials. The apparent reversal of Czechoslovak policy. however,
may have been mutually agreeable as a logical sequence to recent events,
Czeahoslovak initiative in terminating the training program, while
the munitions traffic continues unabated, seems inconsistent. If,
however, a policy has been adopted of curtailing the extensive aid to
Israel, Czechoslovakia could have been motivated by: (1) direct Soviet
orders; (2) the belief that in the event a "bourgeois" government is
elected in Israel next January, the Israel Air Force might be employed
to oppose Communist objectives in the Piddle East; (3) a desire to give
the Arabs, to whom the Czechs are also believed to have sold-arms, an
opportunity to recover their military potential, thereby prolonging
hostilities; and (4) a belated desire to avoid charges of violation of
the UN Security Council Resolution which established the Palestine Truce.
 Declassified in Part - Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010041-0
SET
Oil ,the other hand, Israel my tot have,. strongly objected to the
termination of the pilot training program bodriuse of. (1) the establish-
ment of adequate training facilities in Israel and the existence of a
group of Isxeli flight instruotors,?familiar with CaeohaiitMEolOF
fighters and experienced in local combat conditional.(2) a sense of
security in the present state of suspended hostilities and confidence in
the ability of the Iereeli Air Force to maintain superiority offer local
air oppositions (E) a desire to ctsen - reserea of hard currency,
dewanded by Csechoslovskia for services rendered= and (4) Israel's desire
to avo d?aocu at s which might prejudice its itssediate s4sission to the
one
a. a Covernelent of Pakistan's recent negotiations with the Philippine
dovenmenn s e oxen f~rumsnt. Philippine Airlines AL), have brought
out Pakistan's official attitude toward "fifth freedom" principles.
Pakistan, desiring to protect its two sponsored airlines (Pak Air and
Orient Airways), is insisting that PA6 be excluded from carrying
passengers or freight between Pakistan end India and between Pakistan and
points in the Middle East. PAL is willing to accept the Pakistan restric-
tions, because it is interested primarily in long hauls on a Manila-London
route. (PAL itself has recently oonplained of the severe competition from
W airlines serving Manila. It has attempted to persuade the Philippine
Government to modify its liberal aviation policy and to negotiate a
revision of the OS-Philippine air agreement in too reentri
the
number of competing flights by US carrion.)
1. She Greenland Administration has not reversed the position it took
in 1 against scheduled air services to Denmark, and negotiations will
be reopened shortly with the Danish airline Dm for such services to
Copenhagen. (DDL is also interested in providing air conneotions to the
Faeroe Islands and has made a survey for suitable airfield facilities
there. Occasional intermediate stops on flights to Greenland may be made
at the Faeroes.) It is doubtful whether the traffic potential of the
projected routs is sufficient in itself to warrant the new service. The
Danish Government, however, will probably agree to subsidize the project
for reasons of national prestige and as a means ofdrartine closer postwar