NORTHERN DIVISION WEEKLY INTELLIGENCE SUMMARY NO. 85

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000100080002-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: January 21, 1999
• Sequence Number: 2
• Publication Date: October 10, 1949
• Content Type: SUMMARY

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-t I a PAPER
110` ICE: This docunent is a working paper, not
an official CIA issuance. It has. been co-ordina-
teca :.ithin Orin, but not i. ith the IAC Agencies.
It represents current thinking by specialists in
CIA, and is designed for use by others enlaced
in sir.ilar or overlapping studies? The opinions
exnres:;ed herein. nay be revised before final and
official Publication. It is intended solely for
the inforri tion of the addressee and not for
further dissemination4
CoDy for:
GLASS. CNAM*V
NEXT REVEW DATE.
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DATE
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.CJ THEMI 1IVI`'t ION WEEKLY
i
Intellif,ence Summary No. 85
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10 October 1949
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Office of Retorts and Estimates
TTort. erzi ivis1on
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CONFIDENTIAL
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lease 1171119/ 0 CIA-RDP79-M90A00D"1.00080002-1
GC RPENTIAL
*See !fl3 '',eekly 74, 25 July 194
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anion of South Africa
CONFIDENTIAL
e
xIr^ aslk loan
South Africa piquet at (AA188 . Of 17
The 'peen c1isa,)noinLme'nl/ :A1 SO-11- ?rica over Finance
Ylister raven 's : "i1uur?e co rAse an ExTrn.Bark loan 1?;hde
in ..,as ~ .n ;tan last rionth srrin to my 'roil the basic facts
of the Union's irlmediate.. economl:c ot1 stook, which is not a
bright one, and. nartlya',rWr inbred national nridyeF ry. y~an 1 either
fat,tO1' is as V at enoq~it "o threaten the rat Covern-
Dent' s hold oft rover, nook is So , th 1,,1 rica's ftryndarlontal
and.military alit~al ?)en a r-liii the US in any arty in
qu s ton, but the is a.l eac annarent in Covernpelbt
,..reles that the Union hl.Fs been tre Lted "lice a South A ien~.car?
republic' and threats o ' rep aliati orl r ; . nst ITS) brsiness
interests have been lade by "00.1101,11C t=~' airs n Cter I,atz r~
a.~-.is disa." ro*nt_...nt ll.L T obab ly n l.. 0 L;reatiy qu tension of controls on 19 September to in-
de all. F.;oods im,)or?tad frorm countries outside the stet ;_'.n
area which were -previously unaffected. Nor does do mesti :
,eduction short; y~ror~.ise of keeringry time national economy in
I equilibriurm, i!nezarrioyrmm:,nt is sloe, y increasing, Taarticularly
in the builrl:cng, clothing and on engineering industries. Furth-r-
-ore, the fall in custo_n s dut es resulting fron the import
restrictions has forced the (overn lent to borrow a total of
Z 8 million from the South Africarngeserve Bank so far this
year in order =:o neet its f' i.nr>r C7I
-m d internal price otit o3 s of uw_ -iu L -i es -laced or, lobal
q .roias and is nwr eon .e :? r t, .ia ;_ tint, textiles and chemicals
on Stich quotas, but vi 1i. now .. us.y, 11"Lit --art? cir,_n~? a neutral course in contrast to Danish and i'orv7egian
adherence to I1AP) tends to linit the scone of Scandinavian
- l.itary cooperation, sufficient evidence is available to
indicate that Si-.e. is not ril1inf7 to of Lrrinate entirely
25X1X7.~uch cooperation. 25X1X7
joint -i-aneuvers, exchanf-e of military persorme
or trainin.- purposes, courtesy visits of high ranking of-
f or, and defense talks at lo-,, level continue.
)ne of the rust important asrects of t-L is cooperation,
aside from its existence, is the aYOvarcnt v illingness of
.1 veden to develop plans for air 'pie "ense in conjunction with
' orway. Such plans as may be in the wocess of development
are shrouded in secrecy, and Swweaen`s future cooperation may
V116,:311 n.e-oend on successful maintenance of secrecy in under-
ta.'cin s o' this ns,ture.
many possibilities of mutual r ssista.nce developed
d ur ink; the Scandinavian defense tuaiks last fall, and 'Swedish
rear of comilete isolation has l;'ven impetus to this co-
opcration. Since the conclusion o l" these talks and the ad-
?re;rence of Denmark and i orrray to 11LP there has been much open
C IiT AL
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c nENTI4L
support in Sweden, particularly by military leaders, for
military ties with the West. IVith a Government committed
to, and apparently determined to hold, a neutral course,
cooperation with Norway and Denmark, though greatl limited,
offers a good opportunity for at least some contact with
est. And certainly TTorvap and Dennark have long indi-
the West.'
cated a willingness to cooperate with Sweden as much as
possible.
Such cooperation as is accomplished will somewhat
strengthen the defensive capabilities of Scandinavia. How-
tl
y
ever, it will be too limited to be more than indirec
beneficial to planning the defense of W_restern Europe, and
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