WEEKLY INTELLIGENCE SUMMARY NO. 79

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000300060015-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 9, 2016
• Document Release Date: January 29, 1999
• Sequence Number: 15
• Publication Date: September 13, 1949
• Content Type: SUMMARY

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OFFICE OF REPORTS AND ESTrJATES
TRANSPORTATION OROUP
Weekly Intelligence Summ-aary No. 79
SECTIOIN Ia SU I ARY OF TRENDS AND DEVELOPMENTS
Direct military significance of the current shipments of oil from
the Blaok Sea to the Soviet Far East has been clearly revealbd by a
oargo or aviation gasoline which the Norwegian tanker AMICA is now
carrying from ConstansS to Dairen. The fact that the gasoline is 91
octane probably indicates that it is destined for the Soviet Air Force.
It is unlikely that this high-grade fuel will be used either for any
surface motive equipment of the Soviet civil or military esttablishmente,
or for blending with Inferior fuel to make it suitable for euch use.
(Item No. 10 A)
The tightness of the freight or gituatioai in the USSR appears to
be progressively slackening, and the a? ailability of theses units is
now even satisfactory in some areas at certain seaaons,, Articles
appearing in the Soviet press early this summer, for sxsmple, indi-
cated that there were regional surpluses4 The purrent Five Year Plan
has apparently succeeded in increasing the effective ihvento of
freight cars by reducing the length of haul and the average turnaround
time, as well as by increasing train loads. New construction, more-
over, is now making itself felt. (Item No. 2, A,)
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13 September 1949
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CONFIDENTIAL
It appears that the SVIT National Aviation Corporation may soon
a.ssu me a role of considerable importance in Czechoslovak civil avia-
tion as a non-scheduled carrier for domestic and international ser-
vices. (Item No. 4, C)
Reports that German aviation experts, including former members of
the German. Luftwaffe, have secured employment in South American avia-
tion industries have been received from various sources. The high
level of experience and technical accomplishment of some of these
individuals warrants continued observation of their numbers and the
extent to which they are assuming positions of authority in the field
of aviation. (Item No. 5s, B)
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CONFIDENTIAL
1. Direct milita si ificance of the current shipments of oil (see
TG Weekly Idol. 7h and 7 from the Black' T tc the Soviet Far East
has been clearly revealed by a cargo of aviation gasoline which the
Norwegian tanker AMICA to now carrying from Constanza to Dairen. The
fact that the gasoline is 91 octane probably indicates that it is
destined for the Soviet Air Force. It is unlikely that this high-grade
fuel will be used either for any surface motive equipment of the Soviet
civil or military establishments, or for blending with inferior fuel to
make it suitable for such use.
Soviet combat aircraft, including the long-range bomber-ttansport
TU-70 (8.29) as well as several ground attack and fighter-bomber types,
require 91 octane fuel for efficient operation.and will be able to use
the current shipiment to good advantage. This gasoline will also be
suitable for Chinese Communist aircraft and for the Soviet Civil Air
Fleet, which, however, do not have major requirements at Dairen. The
USSR may have selected a Norwegian tanker to carry aviation gasoline,,
rather than one of the US tankers, believing. that the use of American
vessels in this outright military traffic would alarm the US and pre-
vent their further operation in any Soviet movements.
Dairen is a logical terminus for the movement of oil from the
Mediterranean. It has large bulk storage facilities and is conveniently
located for the eventual distribution of oil in several directions. The
aviation gasoline, for example, could well be delivered to the numerous
Soviet air units which are based in Manchuria. These units are
strategically located to support any air activity which might eventuate
in North Korea, and indirect support by'the Soviet Air Force of the
infant Chinese Communist Air Force would not be surprising, Oil products
could be distributed from Dairen to Shanghai and other North Chinese
ports or could be transshipped to points in North Korea. Rail shipments
of oil, in fact, could be mace from Dairen to the Chita area in the USSR,
with a much shorter rail haul than would be involved in movements to the
same area from Soviet refining centers farther west. There is also evi-
dence of oil movements by water from Dairen to Vladivostok.
Additional information on the previously reported tanker movements
is now available. The US-flag ST. CHRISTOPHER was scheduled to arrive
at Dairen several days ago. After unloading, it is under orders to
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ENTIAL
haul a cargo of crude oil and a small quantity of gasoline from Dairen.
to the Vladivostok area. This vessel will then reportedly return to
the Persian Gulf, leaving the Soviet traffic, and carry a cargo of oil
to Western Europe. The US-flag KETTLUTAN HILLS has probably left
Dairen. It was scheduled to carry vegetable oil to Vladivostok, and
thence to proceed to Singapore for further orders. There are no indi.
cations that this vessel will continue in the Soviet trade. According
to the US Consul at Singapore, meaanwhile, two US-owned Panamanian-flag
tankers will engage in the Black Sea-Dairen traffic. A London firm,
Stevinson, Hardy, and Co., Ltd., is apparently negotiating charters
for Sojusneft with .foreign shipowners.
The critical shortage of oil in the Soviet Par East is probably
reflected in the freight rates which the USSR is paying to.forei gi
owners. The charters under vehich the US vessels are now operating, for
example, call for payments substantially above world rates. In view
of the difficulties of rail transport and the vulnerability of the
long ocean line to interruption, thh3 USSR appears determined to
strengthen its Far Eastern position in refined oil products, re.
gardleas of purely economic considerations, (Secret)
2. The tightness of the freight car situation im the USSR appears to
be progressively s acken ng, and the availability o these units is now
even satisfactory in some areas at certain seasons. Articles appearing
in the Soviet press early this summer, for example, indicated that
there were regional surpluses. The current Five Year Plan has
apparently succeeded in increasing the effective inventory of freight
cars by reducing the length of haul and the average turnaround time,
as well as by increasing train loads, New construction, moreover, is
now making itself felt,,
In June, Izvestiya argued that "many concerns should follow the
example of the coke by-products works in Zaporoshye, dispensing with
warehouses and saving time by loading finished goods directly into
freight cars.. The railways can now supply all the rolling stock
needed to satisfy the demands of industrial concerns in this respect;
metallurgical concerns have even been supplied with rolling stock in
excess of the plan,."
In disucssing railroad preparations for hauling this year*s grain
harvest in the Ukraine, a Gudok article announced in June "although
almost as much grain is being shipped as at the 1948 peak, the plan is
not being fulfilled. The pool of empty freight cars on the Odessa and
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Kishinev systems is overflowing, and yet there is talk of a shortage
of empty cars. This so-called shortage is caused by the use of freight
oars for second-grade freight. Furthermore, there is no planning in
the routing of cargoes."
I
The Soviet press releases should probably be accepted with some
reserve. It is customary in pre-harvest periods to advertise and
exaggerate surpluses- of railway cars in order to encourage shippers
to expedite freight in the relatively slack period preceding the
peak loading season which comes in late summer and early fall. While
these surpluses are not altogether real? it is clear that the freight
car supply is not an appreciable bottleneck at this period. Moreover,
while there is an adequate supply of freight cars under certain condi-
tions, Soviet industry would benefit from further correction of the
undue slowness in moving shipments of raw materials and goods to their
destinations. The Soviet press frequently pontificates about long
delays.iri loading and unloading, and there are numerous references to
(1) freight oars being held in yards for several weeks after assembly
before they are moved; (2) excessive delays of trains in yards on
route; and (3) inefficient distribution of car supplies. (Secret)
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4a Two recent Czechoslovak requests for ovorfli ht clearances across
the V n ; ' e ariy;'hava nom"ina`ted " ~ one Av avian Carpore,-
tion: one from Helsinki to Zurich via Prague, the other from Prague to
London via Bern. These clearance requests, together with previous
reports (see TG Weekly Nom 74) that SVT intends to operate a special
round-trip flight frem Prague to Lydda, indicate that the SVIT corpora-
tion may soon assume a role of considerable importance in Czechoslovak
civil aviation.
SVIT possesses a fleet of seven C..47*s, all of which were formerly
owned by a division of the BATA corporation and operated under the
direction of a Leopold T Turner. It is probable that the SVIT corpora..
Lion has ben established as a non-scheduled airline to operate
domestic and international charter services, supplementing the
25X6A scheduled operations of the Government's well-established airline,
CSA?
25X6A
25X6A
Although Thurner was appointed t encral manager or
CSA in June 1949, he reportedly also exercises direction over SVIT's
operations. In view of Thurner's past activities, and his reputati on
as a trustworthy Cozmmunist, he may be expected to pursue aggressively
the Party's objectives in civil aviation, (Secret)
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5. Repor s that German aviation !xperts,, including former members of
the German aft^raaffe h v~ cur employment in South American aviaa-
tioxa industries have been received from various sources. The high
level of experience and technical accomplishment of some of those
individuals warrants continued observation of their numbers and the
extent to which they are assuming positions of authority in the field
of aviation.
There is an apparent concentration of these experts in Argentina
where the Government is actively sponsoring their efforts to advance
the desitgn and manufacture of aircraft and guided missiles. The prom-.,-
nence of such figures as the jet engine pioneer, V.'illy Tank, former
construction Chief for Focke Wulff, Lt., General Adolf Galland, ex-
Comrmander of the Luftwaffe and Cool. Hans Rudel, an outstanding fighter
pilot? together with a group of scientists and specialists in aero-
dynamics, has given rise to some anxiety in neighboring countries.
Chile, for example, has manifested concern at the increase in potential
Argentine aviation capabilities, and, has in tuna employed some ex-
Luftwaffe personnel as technicians for its own government?controllod
civil. airline (LAN).
As it has been reliably reported that an underground organization
is facilitating the evacuation of professional and skilled German
workers to South America, it is probable that their numbers will in-
crease, With superior training, furthermore,, these men will genera.ll:r
find ready employment as they will be sYilling to underbid most com-
petitors for the technical positions frequently available to foreigners
in Latin American aviation? It will therefore be desireable to obser?re
whether they become socially integrated into th~~,eir communities or tend
to form. groups which remain aloof, preserving their national identity
and susceptible to exploitation by any future resurgence of German
nationalism. (Secret)
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