FAR EAST/PACIFIC BRANCH OFFICE OF REPORTS AND ESTIMATES CENTRAL INTELLIGENCE AGENCY WORKING PAPER WEEKLY INTELLIGENCE HIGHLIGHTS NO. 71

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000500030013-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: January 26, 1999
• Sequence Number: 13
• Publication Date: October 11, 1949
• Content Type: PERRPT

-
it
Approved Folhkelease 2000/08/29 : CIA-RDP7W1090A000500030013-0
DO NO. _ ... . ,.. ------7-1
NCHANCL: ' ' A :i. Li
7,,t,
DECLASSIFIED
CLASS. CHANGED TO: ^
NEXT REVIEW DATE:
REVIEWER 372044
DATER ? I 1 '
COrf
34
DIVISIOF
OV RLFOUWi ANO ESTIMATE8
1raK7,TWI4(E AGNNCY
IATZLLIGENCE MIO1LIGUT3
71
,--,, 11 October 1949
Tq!.w dolinant is a ,ilvang paper? not an officiAl CIA
illn(-1;. it ha* 1:4-:!-) co-ordinated with311 ORE, but
r161 1;h3 Agcrcies It represente current
.:r.leoialiste in CIA, and ia designed for
LA,5 by oth711 enlmecd in similar or overlapping studios,
1:10 c,i0:5A-LL-rw expres3ed hel.oin may he revised before
11,r11 and ofticW. TrJb.lication. It is intended solelg
tt in tion e.?f the addressee and not for ther
C
cLy\s,
NOP- R
AU H:
DA
Approved For Release 2000/08/29 : CIA-RDP79-01090A000500030013-0
25X6A
Approved For Release 2000/08/29.: CIA-RDP79-01090A000500030013-0
%woo 1.04
SECRET
OFFICE OF REPORTS AND ESTIMATES, CIA
FAR EAST/PACIFIC fIVISION
INTELLI"lagn H1GRLIWTS NO. 71
5 OCTOBER to 11 OCTOBER 1949
SECTION I. SUMMARY OF FAR EAST TRENDS AND DEVELOPMENTS
The newly-formed "Peoples' Republic of China" is expected to press both
destern and jastern nation for early recognition (p. 3). Meanwhile, the
imminent fall of Kwangtung presents the weakening 1;ationa1ists with new mili-
tary and political problems (p. 4).
The situation in the French-controlled Indochinese province of Caubodia
appears to have degenerated in recent weeks (p. 5).
Reaction to Chinese Communist succeeses, combined with political in-
stability, presents the Thai Government with growing problems (p. 6).
Both Republican and Federalist delegatione to the Round Table Confer-
ence on Indonesia appear determined to withdraw from The Hague unless ade-
quate progresa is made in the negotiatione in the near futare (p. 7).
Ao election-time draws near, it becomes apparent that US security inter-
ests in the Philippines will be best served by a victory for ,'?,uirino over his
intensely nationalistic rival, Laurel, although such e victory is by no means
assured at present (p. 7).
The mareinal notations used In succeeding sections of this eeekly
("A", "3", or "C") indicate the importance of the items in 0/FE cpinlon
wit-a "A" repeeEentintf the moet important.
Approved For Release 2000/08/29 : CIA-RDP79-01090A000500030013-0
25X6A
Approved For Reese 2000/08/29 : CIA-RDP79-00A000500030013-0
SECRET
- 2 -
SECTION 11. DEVELOMICIITS Is4 SPECIFIED AREAS
KOREA
WiS NOTES
gox_pjlakeup--The Korean Defense Unistry last week announced the relief of
jor General Chas ayung Duk as Army Chief of Staff and the relief of
Brigadier General Kim Suk ,ion as Commanding General of the Korean Army's
First Division. brigadier General Shin Tae Yong has been appointed acting
Chief of Staff. Primarily an administrative officer, Shin is not considered
qualified for the position. Brigadier General Chung Il Kwon, generally
000,0?10
Approved For Release 2000/08/29 : CIA-RDP79-01090A000500030013-0
Approved For lase 2000/08/29 : CIA-RDP79-04S190A000500030013-0
'..;EORET
CONEEDENTIALZ
considered the outstanding officer on the Korean General Staff, remains as
deputy Chief of Staff.
ho reason has been given for the relief of General Chae but it has
long been rumored that both President Rhee and defense Ainieter Shun Sung Mo
feel that Chas, neither particularly efficient nor honest, should be assigned
to Ordinance; a field in which he had long experience in the Japanese Army.
General Kim, previously high in Rhee's favor because of his aggressive atti-
tude along the 38th Parallel, may face trial for misappropriation of Army
funds and equipment and for involvement in smuggling across the Parallel.
Trade talks--Korean-Japanese talks, resumed in deoul this week, will attempt
to solve Korea's difficulties in carrying out terms of the trade a;reement
reached last April. gajor Korean problems are (1) the inferior quality of
many export goods and (2) the unfavorable balance of payments that w..11 re-
sult from the inability to export surplus rice. The April agreement pro-
vided for Z29 million in Korean exports to japan in return for imporee valued
at e49 million. ECA funds were to finance $25 million of Japanese inports,
which would have resulted in a foreign exchange gain of some g',6 million for
the Koreans.
Only 2 million of Korean exports, however, have been accepted by the
Japanese and an unseasonable drought has so reduced tne rice crop that export
of that grain will realize only W4 million rather than the e16 million origi-
nally estimated. Thus, the young Aepublic faces another deficit year in 1949.
CHINA
Communists wAll_pmp for recognition--The Communist-controlled nPeoplest
Republic of Chine is expected to maintain maximum pressure upon the nations
of Asia and the 4est - through threats directed toward the former, and dis-
crimination against the nationals and possessions of the latter - in an
attempt to in rapid de jure recognition as the national government of
China. The immediate recognition of the Peoples Aepablic by the Soviet Union
and its satellites, while welcomed by the Chinese Communiete, is insufficient
to satisfy their desire for prestige, trade, and succession to the National
Government's position in international organizations.
The Communists are aware that most of the independent governments of the
Far East are presently inclined to follow the lead of the Oh and/or UK: that
Australia, New Zealand, Thailand, Burma and the Philippines will not accord
totif 1102t1114
Approved For Release 2000/08/29 : CIA-RDP79-01090A000500030013-0