CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000200440001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 23, 2016
• Document Release Date: September 1, 2012
• Sequence Number: 1
• Publication Date: June 9, 1951
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2013/07/31 : CIA-RDP79T00976A000200440001-0
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9 lune 1951
Copy No. Ci -j
CURRENT INTELLIGENCE BULLETIN
141 DOCUMENT NO.
NO CRANGF.INCLA33.
DECL,A,3:3!r;CD
CLASS. rAN1 TO: TS S
NEXT REV:11:0.!Dil _
At ' ftliotHHujso)
DATE/Iv...6 FIEV;I:VVER:
*Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. Vessels sailing for Communist China misrepresent destination (Page 3). 50X1
FAR EAST
3. Chinese Communist Fourth Field Army units withdrawing from Korea
(page 4).
NEAR EAST
5. Iranian financial need increasing pressure on Prime Minister (page 5).
EASTERN EUROPE
7. Yugoslav Foreign Minister announces Popovic visit to US (page 7).
8. Embassy Belgrade's views on Yugoslav sponsorship of Albanian exiles
- (page 8).
WESTERN EUROPE
9. French expect four-power conference on German defense force (page 8).
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GENERAL
1. Vessels sailing for Communist China misrepresent destination:
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Communist-chartered and other vessels
bound for China from Europe with strategic
cargoes are declaring Port Said as destination.
From Port Said the ships declare for Aden, Colombo, Singapore and
Hong Kong, then proceed to China. The British Admiralty believes
these are precautionary measures in anticipation of a possible naval
blockade of the China coast, in which event these vessels could
unload in Indian ports for transhipment via nine Soviet and Satellite
vessels now in Indian waters delivering grain. The Admiralty is of
the opinion that the USSR believes its ships would neither be stopped
or molested by a naval blockade of China.
Comment:
the shipment of strategic goods to Communist China from
Europe in vessels owned or chartered by Soviet orbit countries.
It is possible that the plan of declaring for other than Chinese ports
may be a precaution against incidents similar to the recent seizure
by the Chinese Nationalist navy of the German vessel Mai Rickmers.
Another precaution now being taken is the discharge of cargoes into
junks off South China to avoid possible interception along the China
coast.
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3.
FAR EAST
The Intelligence Staff of the US Far East
Command accepts the withdrawal of the
Chinese Communist 50th Army from Korea
to an unlocated destination. in China or
Manchuria. FECOM comments, further, that a heavy volume of reports
has been received indicating that the Chinese Communist 38th, 39th, 40th
and 42nd Armies have also been withdrawn. No contact, other than with
isolated deserter prisoners, has been made with any of these units since
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before the Communist mid-April ffensive.
faulamaai. These five crack Chinese Communist
Flourth Field Army units were the first Chinese troops to enter Korea,
along with the since-withdrawn 66th Army from the North China Military
Area command? Hhving borne the almost continuous brunt df the earlier
campaigns, their strength and effectiveness is believed to be greatly
reduced,
5. Iranian financial need increasina nressure on Prime Ministerz
US Ambassador Grady in Tehran reports
that the Anglo-Iranian Oil Company has
made no monthly advance of funds to Iran
since 31 March 1951. With the Iranian
Government already failing to meet all its current objections, suspension
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of AIOC advances is undoubtedly having a detrimental effect on the fiscal
and budgetary situation; but the Ambassador reports that the Government
may be able to get by for two or three months and possibly longer.
Prime Minister Mossadeq, however, greatly fears a financial crisis.
Comment In the post World War II period,
the Iranian Government has been chronically short of funds. Since
roughly 40 per cent of its income has been AIOC payments, it is
obvious _that the suspension of these payments will cause most serious
financial difficulties, possibly even earlier than indicated above. The
UK is naturally aware of the persuasive effects of withholding these
payments.
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EASTERN EUROPE
Yugoslav Foreien Minister announces Popovic visit to U$;
Yugoslav Foreign Minister Kardeli has
announced publicly that Chief of Staff
Koca Popovic is now in the US for talks
with US officials regarding the possibility
of acquiring armaments for the Yugoslav Army. Kardelj explained
that his government is seeking arms from the West solely to ensure
Yugoslav independence and contribute to the consolidation of peace
In the Balkans. He stated that this step had been necessitated by
the rearmament of Yugoslavia's Cominform neighbors in violation
of their peace treaties.
Comment: The publicizing of Popovic's
visit contrasts markedly with the previous Yugoslav desire for secrecy
regarding its overtures for Western arms. As late as April 1951,
the Tito government expressed serious concern to US officials over
?a news leak revealing Yugoslav efforts to obtain Western arms, because
the leak afforded Soviet propaganda justification for allegations that
the Yugoslav Government had joined the Western bloc. Kardelj's
revelation of Popovic's visit suggests that Yugoslav concern over
declining popular morale has overcome previously manifested
reluctance to reveal its arms negotiations with the West. The public
announcement was probably made to demonstrate to the Yugoslav
people, as well as to the USSR, the close working relationship between
Yugoslavia and-the US. An additional motive for the Yugoslav move
may be further to commit the US to the Yugoslav armament program.
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8. Embassy pelgrade's vt9ws on Yugoslav sponsorship of Albanian exiles:,
Embassy Belgrade regards Yugoslav
sponsorship of an Albanian refugee organization
primarily as a counteraction to the activities
inside Albania of Western-sponsored Albanian
exiles. The Embassy does not believe that Yugoslavia is likely to pre-
cipitate any action which might give the Soviet Union an excuse for
aggression under a guise of defending Albania. Since the Yugoslav
Government hopes eventually to see a friendly national communist
government established in Albania, the Tito regime is undoubtedly
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supporting dissident Albanians in Yugoslavia willing to work toward
this end. The Embassy believes that, in the event of akgenuine re-
volution in Albania, the group favoring national communisM would
receive covert Yugoslav assistance as a counterforce to elements
supported by the West.
Comment: The publicity which the Yugoslav
press has given the founding of an Albanian exile committee in Yugoslavia
in May suggests that its immediate purpose is to challenge Western
leadership of Albanian resistance groups.
Because of the Yugoslav Government's precarious position, as well
as its unpreparedness to upset the Hoxha regime, Tito probably has
no immediate intention to use the Albanian refugee organizations for
overt action against Albania.
WESTERN EUROPE
9. French expect four-s? wer conference on German dcfense force:
The French envisage a four-power conference
(US, UK, France, and Germany) to reconcile
anticipated differences between the final
reports of the two separate conferences that
have been taking place on (1) a German defense contribution to NATO, and
(2) the formation of a European Army. (Reports on both conferences
are expected within a month.) French NATO Deputy Alphand has stated
A
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that the present French Government wants a German defense contingent
immediately and that defense measures, including German rearmament,
should not be delayed because of fear of provoking the USSR. He warned,
however, against recreating the German army, the general staff, and
the power of the Ruhr industrialists.
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