WEEKLY INTELLIGENCE SUMMARY NO. 83

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000300060019-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 9, 2016
• Document Release Date: January 29, 1999
• Sequence Number: 19
• Publication Date: October 11, 1949
• Content Type: SUMMARY

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Weekly Intelligence Summary No. 83
The Chinese Nationalist Goverment has not indicated whether it
will take action against either the US Isbrandtson Line vessel
scheduled to depart from Shanghai shortly or another vessel of the
same line which will soon leave Hong Kong with cargo consigned td'th-TsV
Communist port. In view of the rapid deterioration of the Nationalist
Government4s position, it seems probable that the question of further
action against shipping to and from Shanghai will actually be decided
by the capabilities and willingness of Nationalist naval units, even
if the foreign policy of the Canton Government requires an aggressive
enforcement of the "blockade." (Item No. 1, A)
The Department of State has instructed US anbassy, Moscow, to
request the aid of the Soviet Government in locating the KIMBALL R.
SMITH, a small US-owned cargo vessel loaned by ECA to the Republic of
Korea. The vessel is reported by a Communist radio station to have
arrived in Chinnsmpo. With two ECA officials aboard as advisers to
the Korean crew, this ship left Pusan, Korea, for Kunsan on 20
September with a cargo of salt. (Item No. 2, B)
Continuation of Egyptian restrictions to prevent movements of
petroleum through the Suez Canal consigned to the Haifa refinery may
substantially affect the long-range petroleum logistic situation in the
Eastern Mediterranean. 25X6A
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Previous Satellite opposition to a proposed international organi-
zation for the operation of. refrigerated cars in Europe has been at
least temporarily modified by Czechoslovakia's support of a French
proposal in a recent ECE working party meeting to call a conference
of European railway administrations for the formation of such a
company- (Item No, 4, C)
It is evident that as soon as export restrictions on aviation
equipment to Yugoslavia are lifted in accordance with the recent US UK
agreement, there will be keen competition in the Western aviation
market to satisfy the requirements of this new customer in modem;--
izing its civil air fleet. (Item No. 5, 8)
Czechoslovakia is persisting in efforts to reopen an air route to
the Middle East, but current overtures are not likely to influence
Greece or Italy at this time to relax the effective containment of
CSA to the European continent. (Item Nob 6, C)
As the result of a successful Iranian air mission to Afghanistan,
Iranair will now schedule two round-trip flights per month from
Tehran to Kabul. (Item No. 7, C)
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1. The Chinese Nationalist Government has not indicated whether it
will eke action agains a er e 11S ruutine vessel
scheduled to depart from Shanghai shortly or another vessel of the
same line Which will soon leave Hong Kong with cargo consigned to this
Communist port. Release of two other Isbrandtsen ships which were de-
tained recently on leaving Shanghai (see D/Tr Weekly No. 82) was
apparently effected as a result of special circumstances, such as the
presence of Korean refugees and cargo consigned to the US Army,, which
will not necessarily apply to future movements of vessels in and out
of the port. The Chinese Nationalists, therefore, do not seen com-
mitted to refrain from interference with further shipping activity
outside the harbor.
If the Nationalists consider it expedient to interfere further with
the Isbrandtsen traffic, they appear to have a strong legalistic argu-
ment for the "closure". This position would be strengthened, further-
more, by the surreptitious entrance into Shanghai of the Isbrandtsen
vessel now in that port, after it had been intercepted and "advised"
not to enter. Contributing to such a Nationalist decision might be the
fact that the US Goverment did note (a) specifically request release
of the two detained vessels; (b) take the position that their detention
was illegal; or (a) indicate that it would oppose further Chinese naval
interception of vessels which defy Nationalist instructions. In view
of the rapid deterioration of the Nationalist Government's position,
however, it seems probable that the question of further action against
shipping to and from Shanghai will actually be decided by the capa-
bilities and willingness of Nationalist naval units, even if the
foreign policy of the Canton Government requires an aggressive enforce-
ment of the "blockade." (Secret)
2. The Department of State has instructed US Embassy, Moscow, to re.,
quest the aid or e Soviet Tocating t" the KIiVf BALL R. SMITH,
a small US-owned cargo vessel loaned by EGA to the Republic of Korea.
The vessel is reported by a Communist radio station to have arrived in
Chinnampo. With two ECG. officials aboard as advisers to the Korean
crew, this ship left Pusan. Korea, for Kunsan on 20 September carrying a
cargo of salt. The vessel is believed to have fallen victim to a
mutinous crew and fears have been expressed for the safety of the two
US citi zone.
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Meanwhile, two Korean patrol ships have reported that according to
the British master of a small Panamanian-flag cargo vessel, he has seen
the KIMBALL R. SMITH in Chinnampo, where it is being fitted out with
armament of an unspecified type. The Assistant Naval Attache in Seoul,
who transmitted the foregoing report, believes that the KIMBALL R.
SMITH will be employed by North Korea in trade between Chinnampo and
Hong Kong, and that it may be receiving armament in anticipation of
interference with these operations on the part of South Korean navy
patrols. It seems unlikely, however, even if the KIM ALL R. SMITH has
"defected" or been confiscated by North Korean authorities, that the
latter would allow the vessel to trade with a British-controlled port
or even permit the vessel to traffic in waters where it could be
easily intercepted by US naval units as illegally seized US property.
(Confidential)
Continuation of E tiara restrictions to recent movements of
Petro eum t roug the uez ana consigned to the Haifa re nary may
substantially affect the long-range petroleum logistic situation in the
Eastern Mediterranean. If these restrictions and the present obstruc-
tions to the supply of Haifa by pipeline are of long duration, the US,
UK and Western European powers will be obliged to consider their con-
sequences in any strategic planning with respect to the supply and dis-
tribution of petroleum in that area.
The sensitiveness of Egypt via-...-vie the other Arab States makes
resolution of the question difficult for the Egyptian Goverrlment_
4. Previous Satellite opposition to a proposed international organi-
zation or a operation ore Berated cars in Europe has been at
least temporarily modified by Czechoslovakia's support of a French
proposal in a recent ECE working party meeting to call a conference of
European railway administrations for the formation of such a company?
If the conference, which is to be hold in Copenhagen in the spring of
1960, results in the establishment of a new organization, the Inter-
frigo company now being tentatively formed by six Western European
nations will probably be absorbed into the permanent organization (see
D/Tr Weekly No. 80).
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Czechoslovakia's support of the forthcoming conference may be at
least partially attributable to the fact that the meeting will be held
at a toohnical rather than political level. Active Satellite partici-
pation in a future international organization for the rail transport
of perishables would indicate,. moreover, that the Satellites will
probably be unable for some time to provide adequate service with their
own facilities and therefore will continue to derive an advantage from
maintaining working arrangements with the West. (Confidential)
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CiVII 'AV'T .TIOR'
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me recent US-UK a I to exsm t XU oOlaua from Sort re-
strio tone on aviation +equ pment Uxposed on the a eiiite States, and
to approve limited air transport" agreements with that country, will be
noted by the aviation industrio of "Western Europe. The Yugoslavia
airline, JAT, expects soon to tiate scheduled services to the prinnnci-*
pal Western centers and to this" end is desirous of raoderntzing its
civil air fleets ? It is evident that there will be keen competition in
the Western aviation market to s tttisfy the requirements of this new
customer.
The Dutch are prepared t6,8011 DC$-3 transports and undertake the
ne4or overhauling of .IAA aircraft on a oontraat basin. The French,
likewise, are eager to canelude . as deal,. involving 4.600 million francs
for the sale of ten jet trainer's oiquipped with French-made Rolls Royce
None engines, and believe that this would pave the war for .Yugoslav
purchase of the n French melt , trans ort, Sretague, which is designed
to Co ete with the US Conval?.
M in csonsequen ,
Yugoslavia trill be in a post bu shin aroun o the begat that Western
Europe has to offer in the exp6aiofi of .t International services.
(secret)
6e GzeAohoslovakia in peraisting, as yet without success, in,offorto to
reopen eti al route to hea P~i~die Rant. Using its present equipment,
the Cxeohosiovak airline, CSA, requires Qno landing point bet teen Rome
and Tel Aviv. it has 'teen o urronted, however, not only with the
denial of landing rights on.Greek territory in retaliation for Czecho-
slovak aid to the Guerilla cause, but also with Italian refusal to dis-
cuss restoration of transit rights for GSA an route to Israel, on the
grounds that there is no quid pro quo for Italy..
Cscohoslovakia's latest o'orturee have attempted to sweep aside
Gr'eaek47tali..n objections. To Greece, Czechoslovakia has offered it
. portent tra,1e concessions, while publicly announcing that Greek children
held in "protectivo custody Czechoslovakia will now be returned to
their homes. To Italy,'fihe Czeohoslovaka are offering transit rights
for the Italian airline, LAT (40 percent US,"ounaed), through Prague to
Copenhagen in exchange for. imilar rights for CSA through Rome to
Israel. These propositions, however," are not likely to influence . Greece
or Italy at this time to relax the effective containment of GSA to the
European continonto (Secret)
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As the result of a successful Iranian air mission to Afghanistan.,
Iranair i now schedule two roue -strip ights per month from Tehran
to Kabul. A formal bilateral air agreement will not be concluded,
however, until the establishment of an Afghan airline (see D/Tr Weekly
No. 62). The new air service, though not expected to be particularly
profitable for Iranair, will serve to strengthen ties between the two
countries and to improve Iran's political position in the area.
(Confidential)
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