WEEKLY INTELLIGENCE SUMMARY NO. 70

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000300060006-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: January 29, 1999
• Sequence Number: 6
• Publication Date: July 12, 1949
• Content Type: SUMMARY

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OFFICE OF REPORTS-AND ESTIMATES
TRANSPORTATION GROUP
Weekly Intelligence Sur rnary No, 70
12 July 1949
SECTION 1. SUMMARY OF TRENDS AND DEVRtOPME TS
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. Significant action to facilitate European road transport has
been taken by six Western European nations. (Item No. 2. C)
The US and UK have expressed complete reserve on a resolution
dealing with the oomplex problem of restitution and redistribution
of h1aropean railway rolling stock which was passed by the recently
oonciuded Fourth Session of the Inland Transport Committee of ECE.
(Item No, 3, C)
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willingness to export certain types of v.n-
tion equipment to Yugoslavia indicates the growing reluctance of
Western European governments to support strictly the present US
policy of complete prohibition on the sale of such material to the
Satellite countries. (Item No. 4. A)
Al S~ira_
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?)ECTION 11 CORREIIT DEJ ,OPM NTS
SUR, ?&CE TRANSPOR'T'ATION
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In desires to delay the rehabilitation of Gex-
sr ny" s ocean-going merchant marine and its introduction into an
already highly competitive European shipping industry may be re
f iected in their recent working party disagreement with the US over
tonnage requireiaents for the German coastal fleet. 25X6A
25X6A -proposed that Germany be required to increase its present
:oastal fleet by domestic construction of over 75,000 tons of ship-
n;.ng, in order to ,a ccommodate the volume of traffic estimated to h'
necessary for European and German recovery under the ERPO Permission
to construct ocean-going vessels, moreover, would not be granted
:xntil the stipulated tonnage of coastal vessels had been completed..
The US representative, on the other hfnnd, pointed out that Germany's
resent coastal fleet is not even fully employed and that its
capacity is already greater than the increased annual volume of
coastal ;traffic ant _cipated for the duration of the Marshall Plan.
The imposition of a requirement for additional coastal tonnage
would, therefore, be uneconomic and antithetical to European and
German recovery programs. (Confidential)
2 Significant action to facilitate 1;ura keen road trap ox?t has
been taken by six Western European nations. Siauplif cation and uni-
.Pication of customs procedures will result from the signature by the
United Kingdom, France, Switzerland, Netherlands, Belgium and
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Luxembourg of three customs agreements dealing with touring, comer
cial road vehicles and international transport of goods by road.
(The UK was not a party to the last-named agreement.) The agreements
will become effective on 1 January 1950 for a three-year period, and
thereafter by tacit annual renewal. In the event that customs con
entiona of a -wider geographical applica!~ion are concluded, the on-
^acting govern men.ts to the present agreements will take steps ro
terminate them. (Confidential)
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3. The recently concluded Fourth Session of the Inland Transport
Co.mnittea ITC of hC passed a resolution dealing with the complex
problem of restitution and redistribution of European railway roll-
ing stock. The US and UK, both of whom expressed complete reserve
on this resolution, took the position, however, that the problem of
restitution of rolling stock must be separated from that of its re-
distribution, since the latter is concerned with reparations and is
therefore beyond the competence of ITC? The ITC resolution reoomm
mended thatt (a) displaced rolling stock h -"hose ownership is not in
dispute be immediately repatriated, subject only to urgent operating
requirements; (b) certain technical factors be taken into considera-
tion in determining the number of freight care to be repatriated
from countries which are now operating part of the prewar Gerrar,
railroad system or in which displaced German rolling stock cannot
be clearly identified; and (c) the question of ownership of German
rolling stock which is claimed by various countries as reparations
bas ettled by "competent bodies." (Confidential)
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CIVIL, AVIATION
France has never accepted, that aspect of the joint US.-UK
Satellite aviation policy calling for a complete prohibition on the
sale of aviation equipment to the Sate>llites, and has reserved tie
right to export to the Curtain countries aircraft of 300 horsepower
or less. .According to recent reports, the Yugoslavs are actually
negotiating with France (see TG Weekly No. 69) not only for an
exchange of air rights, but aloo fo?t quantities of aircraft,
engines, spare parts, and airport o4uipment. Should the UK go
through with its contemplated engine shipments to Yugoslavia, the
French would be strongly influence+d to grant the Yugoslav requests
for aviation equipment. (Ser;ret)
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