INTELLIGENCE HIGHLIGHTS - - WEEK OF 23 MARCH - 29 MARCH 1948

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01082A000100010027-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 21, 2016
• Sequence Number: 27
• Content Type: PERRPT

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oFFZC~ 0~ x~:POR~s ,~~ rs~~~A~s, caA
r~x ~A.S~/~.~.c~FZC ~,t~cx
irrr~r~.~c~rtc~; ~:i1ra~.~G~TS ~ cr~~~~ of 2s ~aARCII x.29 ~c:x 1948
~~.~.,.,-_..~w_ .._ - - --- - - - - - - -
?; ~.ona orma on concerning the tra e o ere ma a ilippine
offioials by the soviet Trede representative in Japan has recently bean..
reoeived from. the US Fmbassys *~tanila. 3"he of~'ers (on papers plyvrood, t~aixado~r
nlas$, ta1o, and orabmeat) were on a C.I.F. r,'lanile basis >~nd sub3eat to
approval of samples to b? sent from the. tTSSR.
Altt-~ou~;h soma speoir"iaatione ~rere furnished by the Sovi9ts it is not
possible to make exact comparisons rr~.th prices of similar US produotso
Generally, ho~rever, the Soviet offers appes.r to be oompQtitive even after
the Philippine tariff is appl~.ect. Fca= e~,cample, sov3.et prioes for nesJSprint~
which is difficult to obtaisa ~ln tha IlS except on cnntraot, is o~rasiderably
above tlS list prioes but belotiv the "gray market" price. Print~.ng paper'v~,s
quoted .much belot~ US prices, but offers of kraft paper and sulphite pulps
with the Philippine tariff added, t+roulcl be slightly above US prioeso Biroh
plywood eras off?red at urell below tJS prices even in ~Fhe faos of a 40 per cent
tariff, the prioes on ~vindo~rr glasss on the other hands were roughly equal..
to what tts suppliers oould o~'fer sad oauld not compete against the 25 per Dent
tariff advantage. some aotion on these proposals may be revealed in terms of
in-bound and out-bound oargo +~t the Soviet ships now sal~edulod to v3.sit :+".~anilao
State Dept. review completed
DOCUMENT NO. ~.,_.~,~__.~____ --
NO Cf?iANCac IN Ck.A~'::. u
f 1 Cliwrl.ASSiFIF D
CLASS. CHAtJG_C~ 'fu^^: 'C'S S
NEXT REVIE4'J GATE;;
~`DAT~. 1EV~EWER 2 5X 1
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,:,cononic~ outlook re orted bra. hter. i:r. Shigeto TAU ~U, Deputy Directo
Genera o e conomic ~a on :oard has made the following observa-
t3:ons concerning the status of the Japarese econo:~y to representatives of
the LIS I)el~art~*ient of State ar~d USI'OI.AD: The economic outlook is brighter;
the tur~.ir:g point came in Decer.:ber 19t~7. Dr. TS'J:V cited as si.I;ns of
i-~prave?~~ent the following: 1) T31ack Market pxl.ces d~.d not s'.~~rocket during
the I?olitical vacuun which existed in the :(.nterval between the fall of the
!cata~~a^~a CaUinet on 9 I~"ebruary 19~t8 anri the fornation of the A?~:hida Ca~3net
on 9 ?'arch 19t~8. 2) Staple .flood distribution hFS i^rr~roved in large ^~easure
as a ~?e salt of. the rc~;-ular?ity of t-ie recei r t of i~pa its f ro:~ file US in
~or?trast to previous peak sh~pMents in the Peer su~rter months ~us~ ;'rece~?ing
Ja;:anese harvcstinE . 3) 7'he 191t'l-).t$ rice collection p*?ogra^~ has been
aucce sfully oomp].eted. tt) Tax collection ha3 i,~I:rovec3. A progressive
increase was maintained in January and February 19l~8. Turing !?'ebruary the
collection averaged a billion yen a day. (t;orrever, collections especially
from the self-assessr~.ent tax group3 are still in need of drastic i*nprovement. )
5) The mote issue has contracted {to the extent of over one billion yen in
Jaruar; and over tti~ro and one--ialf billion in February.) 6) F'rod.~ction of
coal, which started to improve in Noverr:ber lgl~7, continuPS to i^rprove.
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KC7c~;1~
Llections rostponed. 'The UP?I-su~erv3.sed elecrio~~s, ori.~ir;allg scl~ed~zled
ror g ::aye ave teen postpci?ed at least iuitil 20 ''ray. On 9 'tay there Sri 11
tie an ec'{~:se, rep~arrted i~;~ the ~ererall;r suJ;cr-tit~r>us u'or:_ans as an 3.11
o^~en. 'll~e ne}v election c3 ate is apparently more pr~~p;.tious Snri is not a
5urrtay~ thus ob iatir_E t4:P ohie tior, raised b3,r soTQ ;;t:r~s t.iar. groups a?-air~st
the ? tday date. In ad~ition, p~ost.j:cnerzer~t of the elections vri.ll alloy the
tJ^+ Cor?~T~ission :more ti-~e for J:.?~;rarations.
St?f ; "tF.T
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~cliticazY
fide Nat$on~l ~'.sse.:~c~ly op3r~c~. on 29 ~t~rclz ae schedul.cads ~ wt.?~. n ~cl~n~
.ate Kai-s:vek in v~~.c:gi kis ur4;cd : up~es:a~ c~z~ ox tae Cour3 i z,.a ,sncl
tatiot- of the Canst3.tutiori,~ ~., G~ ~! of trhe -r:~~~~ ~. ~ ~~1~5 delegatsa ~rere present a...
ri ~ euf fici ant i'ar ccnvcx:~tior~, ~~t ct.3 ~.I. 3 r~l sh.rsrt of the t~c~thirds of-?
ficial cntraruri.. Preparatory s~.~ssinrss `-rl.ll 1;;e halt' far t:.~ c3~ s Per~uirzg caea-
pletion of tt q:~orura,
The dispute aver the distritsution t~ i:iat=ions. ~?ssembly seats vrus settled
urban thg t;enerz113ssirao Intervened? IIc3 ias.~~d apm crdsr thy, the Rtzamix-tang oan~
cD:idates elected rrlthrnxt party b~ ck:~ rrouls: l~.ve ~ give: tz}~ :hs+i;r seats in
favor a.# cand3.dotes of the t~ t~~ii nr~rit:.y par w~.c:s o ' "~'t::zi of ~.lles~ Kud~l~ntan~ 3~"-
r~*ularrr 3tto~~d a hangar at?r3.~as 3s riratc;st n~;~ 5.nst tide ciE ~~.sic~rt but ~reira
rar~oved frog. the .A,ssomtaly~ ri~uw.itorfuw~
S'un Fa and Yu Yu-den have offic3.a3.I.y anzr>ouncod tY~eir ~.~d3.decies ,f'or vice
precidertt; thus their n~.mes lyre ridded to those of Li ?~'s~.an~~~jdt'~ and Cher Chien.
'Ihe postport~nt of tha ituom3ntrang Centrs.l tcutive Cor:~~.ttee r:~~+ting ~yond
the oPe of ttze p~ationc~l nsse~ly r~.y 3.n~'icA ~ t1~.t tha fight f rrr the po?-
sition vail.~. be conducted in tt~z T~atiar~l 1~.~sasrtbly cr3.thout official $uozrtintrir~
bcckin~ of any ona caxzciidi.~.tey ia-it preauz~.bl~ Chia:~`ag~ s favor ~~~ determitLe the
z~n olectedo
Chipng i~ai~hek~ apeakin~ at the fix~l session ~.~ try i:'c:ople~ s Political
Caunc3l, which ended ten years ~ existanca on 28 ;.:arch, rigid he made his worst
t>3.iuider ~rhen he tolerated the Cacr:~nists during the civil czar. H? eaq~ressed
opticd.stzt, hover, ~+ the opinion th,~t desp;~te appearances ha felt that the
situs.tion ixzsid~ and outside China. ~ s more favoz~ibl.e than in 193C. Flcr~retrer,
Ong po-li.ng, Chaixznan of the met. F'F'C ~~ing, i~,i 1::'z vile co~~i~s y~aawT ,._a ~. 'r,v~: to be laazr~p-
.~ ~.th ~ztrxat care, athf~':~ r~ ~. Yu~~:rart.~c=~g ca~r"~; r~igtz~.:~~. ~:~~~~3s gtv:~Jed that
an fac,+~ value tho 8paech rr??~~: e~ :~~z: G~~.z~. ~.~ roc} ~ ~?~l'I,~r corza::srrzl~.5{a ~.hout stop-
}~ege off' Cca~rrrain~~.svz ~rah~:re e.:c.r:p t u ~ ~si.c~, } Le;r cr.~.;~ T:~a-tiers . y of ~~:swz` ~rrg tc the .
~ x tlir;.t Ciz3.;~ < rc:cE.s.ti~ an1~% s~co:~rery consider~?
Forei??n ~=iri~.star s statome~r~~.
~-tion ~ the iia, the necvspFxT.~~r ~c~:bczt+?c~= ~~?xe.t '~~, s~io~ rz~~>, be fior~otten that
Chin. }~.u put herssS.t :in t>".e Fx>s~.tiot a~ rc:~k~st~ ~nE ~x ~ ~::R-.~;' n~.Lio~n ~USj to
help her in wF.rd3x`~ oi.'~ mtte4:t~.ox~s of ar~.~0.-?~er t'raE}ni,~y z~ati#~n (13SS~ft} with Yrvhom
she has ccn-traatc~d a Fact a~ :~,~tdty~" Tk.c~ ;~~~~:.r ;:waded ~Yyat ~.he Fcxreign ~ii~~-
ster+s r~rT;rise at T'I'C ori`~toi;~rn oi? the ;~:~,-~UNCODED pct ~,~ ?ehoec2 ~ rsanr;eka Fea~ei;'n escc~nge stag
and coait~' prices soar?Pd to ne~a ha.ghg, i;~.e~~ ~~.'1ae~.c~ed ~' 'i: ~:r gca~e ~.'~the~
reports pravod exa.~;eratc3d~ nEice hi.t a ~~i`r~ c~ %t3 ~~405 "~.on m picul,
dropper `~ JTI u3~?5 rd,L'l.i,on? `~.~s US do3~.?~x bR~.ekr~rarket exchan~ rata reacted
simi.]A.rly, drvppix~g to CT1 4 ~OE30 on ~6 1:?~.r cT, ~, I~.ca ratic~n:Ir~ is repaa~ted
Yyatti~ a etabiL.zing i:if'luc~ncc~ an other ~ oad pr3.c+~g; unrationad r3.ce rose much
]rasa tip ps.st peck vahen cons~ir. ed ~ri.th co?cton ygrn and alotf~s
TYee Shar~a.9. Y:~rket: US ~.~:~cha ae~ aol~.i. RFate) T;'~?ko~~la Price of Rice
Gf~' c~-.a open." ~~ pax 1?~2 lb piauZ
This Lek
week ado
~anth ~
Year ~;ga
{26 far ld8
(26 T~eb 1~8
(26 r`~,r ~?7
CP1 CSC, 5U~
258, 5t?0
15i,~.
] 2,tX1C
tr.G~4J, C00
CAt $3 y 75O,OOd
5~5st~0A
3,k5O,o0o
~?5z~:~oo
3~a5o;400
]2,C1C)0
L3 Do].iatc &t_1ar~.ce~~ A canfidenti~~:~ ~~.zno~'a'c'ruzl) r~k}~'x~.. to `~:~ tES ~~
partn~r~~ s oh is ?C~~ ~ s net do'?,i~=~.r o.sget~ ~ ~ CxA R~~ `~'~ .1]..:~ r._z on 31 DeoembFar 191x7
arhile o~fiaiFal.~~ reported sl~a;.~t ?I;errct ~~~,l~A~ces a;?}.r4; t~-even .b?~ US ~f13?~8 m:~~L~;~.t~*z
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tar t2xi sees date. Bath figures exc;3axda ~lua property accoutrst vrith U3
y e~c-d ~O3d 9.n Shungl~.i, ~iut f.ncl3zde Ce:~~r.~l Bax~cee gold in tY~e UBo
Bifferrnxe i~ bei.ieveu chfefly PEtnk ~ s~far 33- ~$~! ~~~~ ~d3.~ ae~~ ~d
Bank ~ e vault oasf~. ~'rel#,ctd.n i~
decli~d ~ p3 ~~ m:Ll.l.3.~t.
Trade. The Pk~tio~nal Goverrcr.~nt has a~oeznced ;a agre+a~nent t43.th
Partt,aca.oeraby a~~:parte of antra~r, br3atl?s, cott.+on yarti~ t+~, tom'
~ro1f't~ro aped re~tab].~e ?ila gill bs p~dt tom! upon evi~'.~~tce that the f oreig;?-
~~, relative to such a~,.sorts from Cites, hoe been so1r3 to the Central
Bank. ~n step eras tciken in an :effort to stop the large~r+ale ssiag@;].~6
activity 1+~ China ans. ~acao~,
~~. w
"'~""~ ~s not much rn3.Li.t~:x'y acts v'it~r ~ ~ezxcha~r3a duri.~ the pest weekp
and the r~a3ta mat farces ~sre deployed bat:.~*c~n ~ ~ and C2~arsgchun. The
effected Come~3.st a'tta.ck on the latter c~.ty ~~.s not yet d~-~elaped~ vrhLte US
Consul (~er~rel ~Fukclen is "inttlined to concur" in loc~.1 ak~ec=:~?vea?s~ aP that
the Ca~unists r,-i1.7. not a.ttr:~Ck the ~tutcrlen area before the e:2d o4 April tat the
earliest. T'he Caamnunis~, in anditi.on to rest~ang, re~roup~g ar~d 1+esuppl~-ing
their troops arc ruah3.ng repair rJark on their rear area rail ryets eapecia3,].y
east of 3supir,~saia Press reports that ttie I?Jat.~.onalf.~sts are puabing earth
Prom Chinehou and thrat a truck convoy lk^_s reached !~kden over the recently
opened 1aightaay are bath ters~d fz~lse by 218 observeraQ
I~ste mesa despatches indicate that in. I~3orth Chins,; Comet units may
dither heve brok~in off their attacks c~- the PinCcsui rai]ror.;d or ahif'ted to
another sector. During trite attack the Comtraxn3.e~.~ occupied a rnamber of stations,
caused extensive destruction o~f the railwup ~espaaially betcaean Kahan and.
Tatung}, and forced Fu Tsa-yi. to rec;!f.spose his forces to t this new tYtx'c~.t
?~ his rear. 7'n sddition Yvhaien, Ruai~en, Tsayun, and Yuyu on the Tatung dey
,tense periphery Isere occupied, and Tatum itself ~xae brought uad~r artillery .
fired 'I9'~e Co>nrunist radio?ci~irazd vl`~e ,,. -~x~.a~~c ~'P' ^~ost e~" +~he P~har- coal,
min3.ng area east of Tenn in S~3antung. C?cx~nuriist raiders z~;sin cut the Tsinpu
rail lane south of fha city. The cor:~.nrler of tt~e P1at3or~Ltet ad.litary 3n
Teinati ete.ted that hQ would not gur~runtee the city far more thr~un tww ra~t;hso
In Central Chins, the P~.tior~a.liste have reo~eupied Lang c~ahile Carr~uiist
Yorces a~ Hoer reported to bald practaca37,y a].I of the s7m.11 river ports on
the' Ygn~t+~e I1:fver from ~tantung to the rives ~g maath. As fightirLa, ~.e reported
across the river from the K3rangyin naval tk~se, the Chinese Navy patrols were
callred upon to prevent Communist crossiz~s in vlf~r of the abeenae of sufficient
mound fc~cc3e in the area o
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y ?~.~.J 3~. et~t " ~:~. ~~,; ~~~~it t. T#~rs ~-?~ssTsr~t ~;~.. oi~~.4~t of
C~.4,fT~Q'? $Os ~ 1.2'I. ~>~'~ ~3V~~ .L7~.7 6"?~6~.M~ Pia' o~F'!
ss +..le~ty i~i~atau^-~"~err~l r~~' th+~ z'c+~ .ca .~r~~~ .~~~c9n~~ .a ~r~ ae'd?" ~ ion ~ ~ z~~c~3.oatier~n
o~' ~`arshal ~'taibu~.sr tacstics 2`hr poa~~~~t~r-~ a~' t~E~ f~ul: to p~reser~t sitaatio~, a1.I
of ~~~ieh wS.I.3. probabl?v 3nvol~re bl;~~ds}~ed~ ~irut, ?zn>3 rsu>st ~~e1,ys..the ^~nrern;nent
vriLl attemr..t to estabiigh a d3.ctato~?ahip. Pr~.me ~.~istor Thaw PI~x, ~ 28 P.':aroh,
~arently r~versir!~e in~x~le~tent,~+..iar of t,p,e declares
;+L..Lon otz4.law~.ng the d3,ssiciesn?L- fituT>c~~?1a~3ap st~~ t'?e Fattanal ~esr'~at,~ U~?~.ion(i'~I) o
Iuete, ~vS~a in tec'Sn3c~al~.;r r~98~Mr.~iba.9 ~'a~ry 't~~e d3.roctian of ~, :e i::on~:tabulary,
:~ ear~.iar ~+en ordered by Rto~~ to scvi.r~e lF~~ ar.-~~`c~rc~.n~? ~?,~, .`.cn df the
~+ctiom to be tsken. Ap~rentl, ~t~I.ur~t< iit jer~;. ~:3.e orvn ~.nt~ ~ ~;rc~tion oS '
i;h~ declz~xet~.o~ by 3s~ing a etrc-:I~ar ~:' cn r~ red ~,,_,F~t =`tuk-i~rS~ mea~laers
wt1c~ si~~if`iee t~~air intent~.vn to ~~hanc~csn ~,-:?'? or~ren~ ~ch:i.;.at~s ~~ld not be
draeecuc3 ? Gn 1.9 G rrc:a, howt~t erg s~a~~ ~ tays~~i `aralutetes try infc~rtaing the
.~~:Ftllppin~ ::cr.:~t~.~,tn~lery and the ~~~~ ~.1s3 ~cr t':~e?i~ .~,'ne "daa~.~s~ation stands
a+~ issued; act ae:ccrdi.r=fly."
Zuluote~a party lm ~~~.~~r 'sae `;E3et~~ iii v.'.~?a=.~,;~ e?dp t} mc~m" ~~e Liy L3bera3
y~~rty leer~f^xt~ cr,:~ More recently ,~.~ folSt~c;.l ~~'~`i13a~i.ons '~~+ o h+~+~~'? reported
.L_ :~_ ,r.,,.s ~, ..+r,~ s s n.; _ t'n~r$ nn t ~+~ ~~ :- u Month e
3atlrGe! vT W3VTd;t? .w u~ is ,w.nc... ~~ ...._.st _~ - - 9! ~Tai"?P "r: ? ' .~q
l~nila nee F ge+akly noted t?~aat ~a . %de. # ..at rand; ~.. to ;. _u:c~sl ?gad
e+a ~;ge s red Zta2. u~ta a s a r+znniq?;; ~:~ ~~~ o
~ ~:~ 3.lab~,,,~,Q,t~D1i~iSiY? 5ecreta~~
~ ; ecreta~~ r~&'~mP '
n
R
n
----~:-
of ]~ationsl i%efense ~~upe~ .eon fs rc?~r~artac t,o eve s~'wd c~ 2L'' Msrat
tt~t the ~~-il.3pp3.nes can rnobili.~e at least :3Ut~t~ tcs:,dt.err i.~ g,.,pw,4. ~+f
aqr cmerge-ncy arc3 t?~st ~'ili~ino