WEEKLY INTELLIGENCE SUMMARY NO. 89

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000300060025-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: January 29, 1999
• Sequence Number: 25
• Publication Date: November 22, 1949
• Content Type: SUMMARY

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OFFICE OF REPORTS AND ESTIM1TES
TUMP-ORTATION D. VISIt?N
Weekly Intelligence Summary No. 89
22 November 1949
The Chinese Nationalists are apparently determined to discourage
as long as possible by threats of military action all foreign trade
Into Communist ports, irresnective of their actual ability or even
their intentions of putting such threats into effect. This determin-
ation has been evidences' by several recent :`Lationalist actions.
(Item No. 1, A)
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The reported sale of the Polish passenger vessel 3AGIELL0 to the
Soviet Union for registry in Vladivostok is an additional indication
of Polish subservience to the USSR, particularly in view of the Polish
Ministry of Navigation's announcement last year that the Polish mer-
chant fleet will be increased through construction in both Polish and
foreign shipyards from 165,000 gross tons in 1943 to more than double
that tonnage by 1953. (Item No. 3, A)
Egyptian customs authorities have revealed that Egypt win no
longer prevent vessels from operating to and from Israel through
+:gyrptian ports provided no munitions (including fuel) are carried.
(Item No. 4, B)
NO CHA
0 DECLASSIFIE
NW REVIEW DATE:
AUTTH R 73
OATREVIEWER: 008. 514
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The Tito-Coininform dog fight has hruegtzeiy interrupted the sup.
posed tranquil unanimity of the Danube Commieaion. Having ejected de
facto all Western influence in Danube control matters by setting up a
new regime at the Belgrade Conference in 1941, the USSR not; finds one
of its co-conspirators in violent oppoattion_to the current Soviet
domination of Danube matters. (Item No. 5, 8)
Highway and rail ps'ojocts favorable to-the defense of Alaska are
rapidly taking shape in British Colombia. (Item No. 6,- C)
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AL
SECTION II CURRENT DEVELOPMENTS
ACE TRA $PORTAfiIt
& i all's M. -n t ,..~~.i. - to discourage
as long as. possible by threats of military action all foreign trade
into Communist ports, irrespective of their actual ability or even
their intentions of putting such threats into effect. This determin-
ation has been evidenced by several recent Nationalist actions,
With respect to the Nationalist shelling, of the US flag vessel
FLYING CLOUD, a detailed rerort is now available, following the vessel's
arrival in Pusan, Korea. The report is based upon statements made to
the US Vice Consul at that port by the ship's Master and two of its pas-
sengers
On its voyage into Shanghai, according to this report, the Isbrandt-
?nn Line cargo vessel was challenged by a Chinese Navy patrol ship. The
US Master, however, observing that the patrol ship's guns were covered,
ignored the challenge and steamed into Shanghai. The outbound FLYING
CLOUD was halted on 15 November by a blank shell fired across its bow.
The Master of the US vessel requested permission of the Chinese boarding
party to nrooeed on the grounds that emergency stores were being carried
for a Norwegian vessel technically in distress. The boarding party was
informed, however, that the FLYING CLOUD would sail with or without such
permission, which was later refused with the suggestion that the US ship
return to Shanghai and discharge Its cargo. When the Isbrandtsen liner
actually got under way, it came under fare from two Chinese vessels.
There was no serious damage, however, and the Chinese shins did not at-
tompt to follow the FLYING CLOUD.
The attitude of the two Chinese officers in the boarding party led
the US Master and his interpreter to conclude that the .#LYING CLOUD
would have been allowed to proceed without interference had not two Brit-
ish vessels detainer by the Chinese also been present. (These ships were
later released without serious incident.) When the Chinese did make a
show of force Y ?ith respect to the US vessel, moreover, it was apparent
from the inaccuracy of their fire at short range and from their use of
small r:alibre weapons that there was no intention either seriously to
damage the vessel or to,injure its personnel.
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These circumstances seen to substantiate previous ineications
from the Nationalist Foreign Office that the "blockade" was to be en-
forced princiaally against British shipping. A Nationalist official
has recently Mated, for example, that the Chinese warning with re-
spect to the intended bombing of foreign shipping in Chinese territor-
ial waters and in the Formosan Straits was directed against British
chipping and that no such US shipping would be sub3ect to air attack.
Meanwhile, the Nationalists have extended their port closure or-
ders to include South China ports recently taken by the Communists.
The new order closes temporarily all Chinese ports from 24 degrees,
..I minutes North latitude to 21 degrees North, specifically including
the ports of !Amoy, Swatow, Canton, Kungpei and Chian?;men. (Secret)
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~1
The reported sale of t1V Polish REser e?r v~.ss,? Jami to the
Soviet Union for registry in Vladivostok is an additional indication
of Polish subservience to the it:-3SR.a The transfer is being made despite
efforts of the vessel's owners, Geynia-America Line, to expand their
service into the Indian Ocean, and the sale, moreover, is hardly don-
sonant with the Polish Ministry of Navigation's announcement last year
that the Polish merchant fleet will be increased through construction
in both Polish and foreign shipyards from 3.65,000 gross tons in 1948
to more than double that tonnage by 1953.
4.
The Jagiello, built in Hamburg in 1939, has accommodations for
637 passengers and a crew of 180. It has a gross tonnage of 6,140,
and a creed of 15 knots. Prior to the reported sale it operated be-
tween Italian ports and South America. It is rumored without confirmation
that the 11,0"0 gross ton Polish diesel ship Sobieski, built at New-
castle in 1939, has also been sold to the USSR. This vessel has a
capacity of 713 passengers, carries a crew of 177, develops 17 knots,
and contains about 43,000 cubic feet of refrigerated space and over
600,000 cubic feet of ;grain and general cargo capacity.
if these were old ships, their sale might not be-prejudicial to
Poland's policy of expanding its merchant fleet. However, since they
are. relatively new, it is apparent that the Polish merchant marine, like
other facets of Poland's economy, is being administered primarily for
the best interests of the Soviet Union. (Confidential)
Accardin
Z, t cs_._ htp~rin circles ink Cairo. Egyptian eus toms author-
ities have revealed that Egypt will no longer rrevent vessels from op-
erating to f nc from Israel through 'gag -pt? an ports, provided no munitions
(includire fuel) ere carried. In view of possible domestic and Arab
repercussions, however, the T,: yptian Government will make no official
announcement of the changed policy. (Confidential)
5 . The l ito- os 3.nf, o~? r d ~i,,~t s.s ~artzscLun y ,,intprr? sited the supposed
tranquil unanimity of the Danube Commission. Having ejected de facto
all western influence in Danube control matters by setting up a new
regime at the '=elgrade Conference in 19:.7, the USSR now finds one of
its co-conspirators in violent opposition to the current Soviet dom-
ination of Danube matters.
All signatories to the new Danube regime, including Yugoslavia,
were invited to the Commission's first -:eating, at Galatz, which com-
pleted its work on 17 Iovemb r. The Yugoslav attitute at the meeting
has been reflected in a vitriolic press coverage. According to the
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`.iugoslav version, the USSR is now trying to use the Danube Commission
as an instrt ent to hamper and violate the sovereignty of the Danube
states, just as the non-Danubian imperialistic states have done in the
past. The Yugoslav delegation, however, consistently opposed the Soviet.
efforts at Galati to "transform the Commission" into an instrument of
its "hegemonic policy".
ieanwhile, the US, UK and France have delivered notes to the six
Helgrade.signatories, asserting that the Belgrade Convention has no
valid international effect and that the 1921 Danube Stetute is still
in force. (Secret)
6. fl.gh]ja andra tsf le jhg ddgf?jULe_of Alas are
rapidly taking shape in British Colombia. The new John Hart Highway,
scheduled for completion in 1950, will connect ftrince Geor e, terminus
of the Caribou :ighway from Vancouver, with Dawson Creek on the Alaska
Highway. When completed, the fifty-mile highway will save two full
days for trucks operating between Seattle and Interior Alaskan points
by eliminating the extra 500 miles on the circuitous route via ~dmonton,
Alberta. ' ith 30-foot tgravel, construction throughout, the project is
designed to accommodate heavy tricking at moderate speeds. It is not
yet certain that US truckers will be able to use the highway without
trans-shipments because the provincially--owned Pacific Great Eastern
Railway will hold an exclusive franchise on the highway for all freight
traffic and passenger traffic by bus.
The completion of the John '!art .ii:ghway should facilitate the con-
struction of a rail link envisaged by US Public law 391 (26 October 10W I,
authorizing a location survey for a line connecting the US and Canadian
railway systems with the existing Alaskan network. The line would run
from Prince George to Fairbankcs. The recent US law further authorizes
the rrenaration of engineering plans, as well as proposals for financ-
ing the line's construction and maintenance. (Confidential)
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