WEEKLY INTELLIGENCE SUMMARY NO. 69

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000300060005-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: January 29, 1999
• Sequence Number: 5
• Publication Date: July 5, 1949
• Content Type: SUMMARY

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OFFICE OF REPORTS A YD ESTATES
TRANSPORTATION GROUP
Weekly Intelligence Summary No. 69
SECTION I. SUMMARY OF TRENDS AND DEVELOPMENTS
5 July 1M9
Violations of the joint US-UK policy to exclude Satellite commor_
cial air traffic from Western Europe are increasing?a.nd Western
European nations are becoming more reluctant to conform to the policy
rigidly in the face of western desire to expand commercial relations
with the East and mounting Satellite pressure for air outlets? The
ineffectiveness of the US-UK policy, combined with pressure for its
relaxation or abandonment, particularly with regard to Yugoslavia, hp.s
again focused attention on the effects expanded Satellite air ope?-a-.
tions beyond the Iron Curtain will have on US security. (Item No. 1. A)
The restoration of air services in northeast China, 'possibly with
American assistance, is apparently of some concern to the Communistsn
It may be assumed, however, that any agreement between US airlines and
Communist officials will be of a temporary and local nature and that
no valid contracts for internal services will be signed until a central
Chinese Communist Government has been proclaimed. (See Annex for former
civil air routes in China.) (Item No. 2, A)
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The Czechoslovaks reportedly plan to circumvent the recent Greek
prohibition of landing rights at Athens by r outing their DC-3 trans-
i and
di
i
s
h
ports on mute from Prague to Lydda by pry of Rorae, Br
Nicosia.
Soviet efforts to obtain intelligence on foreign ports may be
reflected in the increasing number of long and uneconomic voyages
made by Soviet-flag vessels,, as well as the unusually large crews
carried by such vessels. (Item No. 5, C)
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.- SECRET
Violations of the joint US-UK olio to exclude Satellite corame:r-
cial air traffic fror, Westeri Europe are inoreasing,-and Western European
nations are becoming more reluctant to conform to the policy rigidly in
the face of western desire to expand ccmmercial relations with the East
and mounting Satellite pressure for air outlets.. The ineffectiveness
oi the US-UK policy, combined with pressure for its relaxation or
ahan.dow ent, particularly with regard to Yugoslavia, has again focvse.d
attention on the effects expanded Satellite air operations beyond the
Lon Curtain will have on LIS security.
"Iith the exception of Hamania and Bulgaria, all the Satelli ten
helve increased their air operations into Western Europe, and nearly
every Western European country has been reluctant to comply with U.S
requests that such operations by Soviet,--controlled carriers be barrr-j
until the USSR permits western aircraft to operate to the USSR.
Poland has concluded reciprocal air agreements with Denmark and
Belgium. the Czechoslovak airline, on the basis of longstanding
agreements, is operating regular 2lifhts to practically every 'Nester:.
Narope=sn capital north of the Pyrenees. Hungarj has made special
flights to a number of points. Yugoslavia is negotiating with Italy
acid is about to open negotiations with the me for reciprocal air agre.3-
ments. Swiss-Yugoslav negotiations are in progressQ u; i;~i
alto reportedly negotiating with the French for an exchange of air
rights and for the delivery of French aviation equipment.
In attempting to expand their operations into Western Exrope9 n10st
of the Satellites have indicated their willinuess to grant reciproca!
rights. In. actual fact, however, the Satellites are unable to grant
full reciprocity because Satellite airlines - with the exception o.''
the Yugoslav carrier -- are in practice controlled or owned in par w by
the USSR. E411 reciprocity would thus mean granting western carriers
permission to operate to the USSR.
In seeking to expand to the We;?te. the Satellites apparently ho,~r-,
to facilitate trade relations. In any future negotiations for an
re33merit, they are thus likely to 'attempt to obtain western ag.reemen:
to relax the current embargoes or. export of aircraft and aircraft r 1 ?.aa
Czncho 1ovakia, for exaaaple, is particularly anxious to obtain rsplc-'..+-
meat parts aid must procure long-range aircraft from the West if it is
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to re-establish regular air operations to the Middle East. Although
the USpR could in the long term provide the Satellites with aircraft,
the current shortage of air-equipment in the Satellites would prevent
any substantial early increase in Satellite air operations to the West
in the event that the US-UK containment policy is abandoned. Mor,-ow-r,
f the Satellites were to receive air equipment from the West, the re-
suiting increase in their civil air potential would be reflected
largely in rehabilitation and extension of their domestic net;r;rrks.
Yugoslavia has been the most active of the Eastern European nations
in seeking to establish commercial air relations with the Nest. Unlike
the Satellite companies, the Yugoslav airline is not controlled or
owned by the USSR. (According to reliable reports, the Soviet-con-
trolled Yugoslav airline JUSTA has been dissolved.) Yugoslavia is par-
ticularly eager to obtain air agreements with western nations in order
to: (1) -improve the chances of attracting commercial representatives
and technical experts to Yugoslavia; (2) establish closer western ties
as a countermeasure to increasing Cominform pressure; (3) obtain a
source of supply for aviation gasoline, the shortage of -which has
severely hampered :`ugoslav air operations; and (4) secure the necessary
equipment to restore domestic air operations. (Secret)
2. The restoration of air services in northeast China is apparently
of some concern to the Communists. The extensive air network which pro-
vided rapid communications between all the large cities and maintained
effective connections between the interior and the large coastal ports
ceased to exist with the Nationalist retreat. (See Annex for former
civil air routes in China,) This area was formerly served by the three
Chinese airlines, CATC, CNAC, and CAT. It is unlikely that the Commu-
nists will be able to induce these companies to re-establish former
services because: CATC is wholly owned by the Nationalist Government;
CNAC, though partly awned by the US Airline, Pan American Airways (FAA),
is also an instrument of the Nationalist Government; and CAT-is
largely owned by General Chennault, a loyal supporter of Chiang Kai
Shek.
Negotiations with Communist officials (see T) Weekly No. 57) have
been resumed on the initiative of both MA in Peiping End PAA in
Shanghai with a view to resuming former operations over their respective
routes. (As the Civil Aeronautics Administration of the Nationalist
Government barred foreign airlines from operating internal services,
US airlines have in the past merely connected the principal Chinese
seaports with the international air routes,) The discussions in Peipj.ng
and Shanghai have revealed, however, that Communist officials are
apparently interested in re-establishing, with American assistance,
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sotrte portion of the former domestic air not work. PAA and NWA
separately report the Convnunist intention to control the restored
services which would be operated on a strictly contract basis? It may
be assumed that any agreement between the American airlines and Cor 'nu-.
mist officials will be of a temporary and local nature and that no valid
contracts for internal services will be signed until a central Chinese
Communist Governiuent has been proclaimed, (Secret)
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4. Air services between Prague and Lydda are to be resumed by the
Czechoslovak airline CSA according to reliable reports. CSA's
'Lights to Israel, formerly routed via Rome and Athens, were interrupted
in early May when the Greek Government suddenly cancelled air rights
which had been granted to Czechoslovakia on a provisional basis (See TG
Weekly No. 61). The Czechoslovaks reportedly plan to circumvent the
Greek prohibition by routing their DC-3 transports via Rome, Brindisi and
Nicosia.
Since the blocking of Czechoslovak air operations to the Near East
has been one of .the prime objectives of the joint US-UK Satellite
aviation policy, the resumption of CSA flights to Lydda would not only
cancel out past US-UK efforts to implement that aspect of the joint
policy, but also dana;-e US-UK prestige in the Eastern Mediterranean.
Moreover, Greek support of the U5 UK aviation policy may be lost. The
Greeks have already voiced their concern over the reported resumption
of Czechoslovak flights to Israel which, in their opinion, negates
their denial of landing rights to C3A at Athens and weakens their
ability to use such landing rights as a bargaining point in future
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trade negotiations with Czechoslovakia. Thus, if their prohibition
against Czechoslovak aircraft is to serve no useful purpose, the
Greeks wish to re-establish air. connections with Prague in the
interest of facilitating eoanmorcial exchanges with Poland, Hungary, and
Eastern Germany, as well as Czechoslovakia.
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SURFACE TRANSPORTATION
5. Soviet efforts to obtain intelligence on foreign ports may be re-
flected in the increasing number of long end uneconomic voyages made
by Soviet-flag vessels, as well as the unusually large crews carried
by such vessels. (Some time ago, for instance, a Soviet vessel
allegedly destined for Leningrad sailed from New York via the Panama
Canal and the US West Coast without apparent commercial justification
for such a voyage. It is known., moreover, that Soviet Liberty-type
cargo vessels frequently carry as many as fifteen or twenty more crew
members than do comparable US vessels.) These voyages are undoubtedly
valua1c,le to the USSR for the purpose of training merchant marine crews.
The excessive number of cadet and apprentice grade personnel frequently
included in Soviet crew lists, however, suggests the possibility that
many such crew members are in reality junior Soviet naval officers,
carried principal1 for experience and intelligence activity in foreign
ports. (Secret
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CIVIL AIR ROU'T13S IN CHINA
(as scheduled prior to the recent ornrlunist advance)
China National Aviation, Co. oration CTNAC)
Route
2r
San Fran oisco-Honolulu.Wake-Guar.-
(Agana Field)-Hong Kong-Shanghai
Shanghai (Lunchwa)-Tsingtao
3.
(Tsangkow)
Shanghai-Peiping (West Field)
4.
Shanghai-Nanking (Ming ICu Kung)-
5o
Tsingtao-Peiping
Peiping-Ninghsia-Lanchow
6.
Shanghai-Nanking?.Hahkow (Hsukiapeng)-
7.
Chungking (Sanhupah)
Chungkin Kunming (Wuchiapa)
8?
Kuing-Hanoi
0
Chu ngking-Sichang
10a
Chungking-Kweiyang
11b
Chungking-Chengtu
120
Shanghai-Chungking
Frequency
Once a week in
each direction
Three times a week
in each direction
Daily, including
Sunday, in each
dir ection
u ui rrtent
Twice a week in C-4$
each direction
Once a week in C 43
each direction
Twice a week in DC-3
each direction
Once a week in each DC-3
direction
Once a week in each DC-3
direction
Once a week in each DC-3
direction
Once a week in each DC-3
direction
Once a week in each DC-3
direction
Twice a week in each DC-3
SECRET
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13. Shanghai-Hankow-Chungking
14. Shanghai-Nanking-Hankow-Sian-
Hankow
16 Shanghai-Nanking Hankow Sian-
Lauchow
16. Shanghai-Hong Kong-(Kai Tak)-
KunmingRangoon (Mingaladon)- -
Calcutta (Dorn Dum)
174 Shanghai--Taipeh-Amoy (Ho Shan)
18N Shanghai-Taipeh
19. Shanghai-Foochow (Yea Yu)-Amoy
20. Shanghai-Taip eh-Foochow
219 Shanghai-Amoy-Canton (Tien Ho)-
Hong Kong
22, Shan; hai-!:Foochow- Canton iiong Kong
2 Shanghai-Foochow-Amoy Hong Kong
24. Amoy Swatow-Hong Kong
Sz . Shanghai--Taipeh-Hong Kong
28 Shanghai-Foochow-Taipeh-Hong
Kong
27. Shanghai-Hong Kong
Frequency E+ u3.pmel-t
Twice'a week in C-46
each direction
Twice a week in C-46
each direction
Once a week in C-46
each direction
Once a week in DC-4
each direction
Twice a week in DC-3
each direction
Four a week in DC-3
each direction
Tvice a week in DC-3
each direction
Twice a week in DC-3
each direction
Once a week in D0-3
each direction
Once a week in DC-3
each direction
Once a week in DC-3
each direction
Trice a day, in- DC-3
eluding Sunday,
in each direction
Once a week in DC--3
each direction
Once a week in DC-3
each direction
Daily, except Sun- DC--4
day, in each
direction
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Route
28. Shanghai.-Amoy-Swatow Cantonr.
Hong Kong
29. Taipei -Swatow-Hong Koni
30. Shanghai-Swatow
31. Hong Kong-Canton
32. Hong Kong-Canton-Haikow
33. Hong Kong Chungking (Kiulungpo
34. Chungking-Canton-Hong Kong
35. Hong Kong-Canton-Haikow-Yulingkong
36. Hong Kong?Swatow-Canton (Tien Ho)
II. Central Air Transport Corporation (CATC)
Route
1. ShanghaiAmoy-Swat Canton-.Hang
Kong
2. Shanghai Swatow-Canton_ Swatow-
Hong Kong-Bangkok (Don Muang)
3. Tainan (Ta Ling)-Amoy-Swatow-
Hong Kong .
Frequency ui~ment
once a week in C-46
each direction
Once a week in C-46
each direction
Once a week in C-46
each direction
Four times a day, DC..3
including Sunday,
in each direction
Three times a month C-46
in each direction
Once a week No aircraft
listed
Once aweek No aircraft
listed
Twice a month in C-46
each direction
Once a week in C-46
each direction
Frequency E uipmen-
Three times a week DC-.3 or
in each direction C-.46
Once a week in each DC.3 o.
direction C-46
Dally. including DC-3 or
Sunday, in each C-46
direction
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III.
Civil Air Tranagort (CAT}
Route 'rec}uenoy
cu3 amen
1.
Shanghai.-Nanking-Ilankow-Chango~ owr Once a week in
C-46 o ?
Sian L.nrhow each direction
C-47
2.
ShaxtghAi-NNanking Vtuchang-Mangy g- Not known
C-46 or
Kwey lixl Liuchow-Canton
C-47
:3`
Canton-Lanehoxv Liuchow-Chungking Not known
C-46 or
C-47
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