OFFICE OF CURRENT INTELLIGENCE DAILY DIGEST OF SIGNIFICANT TRAFFIC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000100080001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 9, 2016
• Document Release Date: May 24, 2001
• Sequence Number: 1
• Publication Date: March 9, 1951
• Content Type: SUMMARY

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4 91:-_' U
COPY NO 39
OFFICE OF CURRENT INTELLIGENCE
DAILY DIGEST OF SIGNIFICANT TRAFFIC
MAR A ,.
Date:
NOTE: to This summary of significant reports has been
prepared for the internal use of the Office
of Current Intelligence. It does not
necessarily represent a complete coverage of
all current traffic in CIA or in the Office
of Current Intelligence.
2. Comment represents the preliminary views of
the responsible analysts and net necessarily
the final view of the Office of Current
Intelligence.
3. Marginal letter indications are defined, as
follows:
items indicating Soviet-Communist
intentions or capabilities
s?13" - important regional d_ovelopments
not necessarily related to Soviet/
Communist intentions or capabilities
- other information indicating trends
ant potential developments
State Dept. declassification & release instructions on file
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SECTION 1 (SOVIET)
~? i 81tJR~1PS. ALBk IA, Cabinet Chaneeso The Presidium of the
1 ilrn?People-.s Assembly announced on 5 March that Deputy
Premier Spiro Pano, and Miniiter of Industry Rita Marrke. have been
released from their posts in order to carry on more important duties.
(R FBID, 7 Mar 51). COM]ANT-S Both man are young Party militants who bad
wartime experience as political activists in the National Liberation Arm.
They were given their Cabinet posts in the Government reorganization of
19 July, 1950. As neither have relinquished their alternate member status
on the Central Committee, it is possible that they have been selected to
intensify political indoctrination in the Government and the Army,
ne CZECHOSLOVAKIA. Purge of Czechoslovak Ammbassado ;_i u BeIInder Waves US
25X1X
bad been recalled to Praha for "routine consultation" and that ne ex-
pected to return to Washington in about ten days. how- 25X1X
W au ory conver-
ever, that - appeared "ill at ease" during t e e
sation and that he would not accept a dinner invitation without prior
consultation with his superiors. Prior to the last session of the Central
Committee of the Czechoslovak Communist Party at which a Titoist conspira-
cy was uncovered involving, among others, former ]foreign Minister Clementis,
at least three other Ambassadors besides Outrata were recalled to Prague.
The others included Bohuslav Kratochvil from New Delhi, Rudolf Bystricky
from London, and allegedly Adolf Hoffmeister from Paris. In addition,
Alexander Kunosi has reportedly been subject to recall from Buenos Aires
for some months, although he is currently heading the Czechoslovak dele-
gation at the UN ECOSOC session in Santiago, Chile. (C SD Praha 556,
8 Mar 51; U )IYT 5 Mar 51; 25X1 C
R YBIS, 2 Mar 51). COMMENT: The background of each of the recalled
diplomats is similar to that (1) each was a Johnny-come-lately to the
Communist Party; (2) each, either during or after the war, has spent long
periods of time in Western countries; and (3) each has been friendly
either with Clementis or with Pierlinger, a Socialist opportunist who
jumped on the Communist band-wagon just before the coup in 1948. The
spectacular defection of Kratochvil suggests that perhaps some of these
diplomats may have been considered by Praha to have been potential (Is-
factors and, hence, called back 'pefore the incipient purge was made public.
e*,' YUGOSLLVIA. Yugoslav White Paper. The Yugoslav Foreign Office has issued
a 481 page White Paper, accusing the USSR of applying military pressure
against Yugoslavia and supplying the Satellite armies with arms and
troops with which to overthrow the Yugoslav Governments A Yugoslav of-
ficial has stated that the document will be forward edto the UL (R PBIS,
`Belgrade, 9 March 51). COMMENTS The issuance of the Yugoslav White
Paper is another indication that the regime is concerned about an attack
this year and is taking precautions to forestall it. The documentation
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and filing of its case with the IS will facilitate UN action in the
event of attack. In his recent Reuters' interview Tito stated that the
question of Satellite rearmament, in violation of their peace treaties,
should be discussed at a Council of foreignMi inters and bindic the ON.
that, if the problem was not solved, it might
at this early date, the Yugoslav Government
By issuing its White Paper
roblem in to dis may hope 'to pat pressure on the Soi~dicateothat thecZ'itotregime, knowing
a Cam, vu the other hand, it may does not consider
,that a Big 4 solution to the problem is impossible,
it wise to delay filing its case with the UN.
wQM Belerade and Athens to Exchange Military Attache. The Yugoslav
Direc mili-
and Greek Governments have apparently agreed to the exchange the
to Belgrade~orThis
tary attaches. The GreekG~ner ~alnStaff seotheir MLformer
Intelligence of the Greek
latest step in the normalization of relations bweenmtheettwo countries,
however, does not appear to presage an initiation alks.
a recent conversation between Yugoslav Ministerto Greeciste a Greeked
under-secretary of the Toreign Office, the Yugoslav
the view that the community of interests of the two countries was clear,
but that.there was no necessity to coordinate their mmilita eparatin
since this could be accomplished in a very e The exchange of military
arose, (S Athens 2915, 7 Mar 51). COMMEI~
attaches is another step in the gradual amelioration of relations be-
tween Greece and Yugoslavia.
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and filing of its case with the UN will facilitate UN action in the
event of attack. In his recent Reuters, interview Tito stated that the
question of Satellite rearmament., in violation of their peace treaties,
should be discussed at a Council of Foreign Ministers and indicated
that, if the problem was not solved, it might be brought before the UN.
By issuing its White Paper at this early date, the Yugoslav Government
may hope to pat pressure on the Soviet Union to discuss the problem in
a CTM. 'u the other hand, it may indicate that the Tito regime, knowing
that a Big 4 solution to the problem is impossible, does not consider
it wise to delay filing its case with the UN.
rQN Belgrade and Athens to Exchange Military Attaches. The Yugoslav
and Greek Governments have apparently agreed to the exchange of mili-
tary attaches. The Greelovernment has chosen the former Director of
Intelligence of the Greek General Staff as their MA to Belgrade. This
latest step in the normalization of relations between the two countries,
however, does not appear to presage an initiation of military talks. In
a recent conversation between Yugoslav Minister to Greece and a Greek
under-secretary of the Foreign Office, the Yugoslav Minister reiterated
the view that the community of interests of the two countries was clear,
but that.there was no necessity to coordinate their military preparations
since this could be accomplished in a very short time when the occasion
arose. (S Athens 2915, 7 Mar 51). COMMENTD The exchange of military
attaches is another step in the gradual amelioration of relations be-
tween Greece and Yugoslavia.
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SECTION 2 (EASTERN)
"C" TURKEY. Premier Menderes Cabinet Resigns. The Turkish Cabinet resigned
on 8 March, Premier Menderes had been in office since the general elections
last May, and he indicated that his government was resigning because it had
completed the task entrusted to it, (U NYT, 9 Mar 51). COMMENT: The re-
signation of the Turkish Cabinet is due to internal party politics and will
not alter Turkey's position on basic national and international issues.
In the last few months it has become increasingly clear that the Cabinet,
which was hastily formed after the Democratic Party's unexpected success
in the last general elections, was experiencing considerable internal dis-
sension because one faction wsthin it felt that President Celal Bayar was
injecting himself unnecessarily into Cabinet.affairs. Premier Menderes
has become increasingly discontented over this situation and has been anxious
to resign. Apparently he promised to remain in office until the passage of
the national budget which occurred on 28 February. President Bayar, having
now had sufficient time to deliberate over the choice of a new Premier, will
probably make an appointment designed. to bring about greater harmony between
the President and the Cabinet,
IRAN. Parliament?= _Conaittee ApiDroves Oil Nationalization. The Parlia-
mentary committee studying the ratification of the supplementary oil agree-
ment'with the Anglo=Iranian Oil Company (AIOC), voted unanimously for
nationalization of the oil industry 8 March, a few hours after the funeral
of Premier Razmara who was assassinated Wednesday morning, allegedly be.,
cause he had opposed the plane The recommendation now has to be submitted
to Parliament and.the committee has asked that its term of office be ex-
tended two months for further study of its nroposal. A demonstration against
the AIOC has been called for tomorrow by Seyyid Kashani, one of Iran's most
politically active religious leaders and reportedly the leader of the ex-
tremist religious sect Fayaden=,i=Islam (Crusaders for Islam) to which
Razmara's assasin admitted membership. (U NIT, 8 Mar 51). COMMENT? Although
most thinking Iranians agree that Iran is not equipped to run a nationalized
oil industry, emotions on this subject have been aroused to.such a pitch
recently by the continuing agitation in favor of nationalization, by
Razmara's recent speech in which he appeared to withdraw his support for
nationalization, and by his subsequent death that any vote taken by the
commission at this time would have been likely to be in favor of nationali-
zation. Although the recommendation. must still be submitted to Parliament,
the prospects for a vote in favor of nationalization appear at the moment
to be high. Because the chief company affected by the move will be the
AIOC, which is partially owned by the British Government, vigorous and pro-
longed British effort to prevent nationalization can be expected. The
movement, however, is apparently gaining new adherents in Parliament among
the deputies. The religious element headed by Kashani apparently plans to
continue its agitation and now that Razmara is gone there is little likeli-
hood of the emergence of a Prime Minister strong enough to oppose the pro-
posal if it is submitted to the vote in the immediate future,
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25X1X
"B" SYRIA. t - tat ant S ri n DeputtChi?f of Staff.
'
av,tani, leader of the Arab Socialist Party n Syria, re-
Akq'am
prove pu y Ohie$" of Staff Shishakli last December for telling an American
official of the 'apline do. that the Syrian Army was prepared to defend the
Tapline against the ftuaetans and to fight side by side with the Western Allies.
Shishakli explai,ed to Rawrani that he had made the statement purely out of
courtesy, that at heart e hated the British and Americans who caused the loss
of Palestine, and that, like Hawrani, he was only awaiting an opportunity to
take revenge on the Anglo-Saxons. Hawrani is said to have rejoiced in this 25X1X
assurance from Col Shishakli.
calculated to cement their mutual political relations, and it should not be
regarded as overly alarming. Shishakli has in the past supported Prime
Minister Qudsi's pro-Western foreign policy and has allegedly made pro-
Western statements, such as his comment to the American Tapline official.
Nevertheless, he is quite ;,apable of expressing the opposite view when it
seems politically expedient. Hawrani, more than Shishakli, is capable of
ousting Prime Minister Qudsi and replacing his Populist Government with one
more amenable to army interests. This last is presumably what Shishakli
desires. Both Shishakli and Hawrani prefer to achieve their aim by Parlia-
mentary means. As evidence of their anti-Qudsi strategy, in recent montths
Hawrani has increased his criticism of the Qudsi Government, has demanded a
coalition to replace it, and may be successfully negotiating a rapprochement
with former cabinet Minister Nizam al-Din with a view to reviving a strong
Liberal Republican opposition. That Qudsi has apparently seen the storm
warnings is shown by a report, later officially denied, that he planned to
eliminate the growing opposition by absorbing.it in a coalition government.
(OCI Daily, 19 Feb 51). Though these intrigues contain the elements of
political upheaval, no prediction can be made regarding the imminence of an
overthrow of the government.
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"A" THAILAND. Coup Attempt Possibly i.n,Frogress. The Bangkok correspondent
of the Singapore Straits Times reports a ""revolt: against the military regime
in Thailand by disgruntled Police, Army and Navy officers." He said that
a number of police officers have been detained, that many arrests are being
made and that a warrant has been issued for the arrest of Rear Admiral
Taharn Kamhiran, former commander of the Thai Marine Corps, who is said to
be the leader of the. plot. Taharnas residence, some 80 miles west of
Reuters~
Bangkok, is reported to be "surrounded by armed Marines".
Singapore Bureau, in filing this Straits Times report to London, stated
that no official confirmation of the revolt could be obtained in Singapore
but forwarded the comment of an "authoritative source" that the event was
probable, because rumors of "the plot" had been circulating for weeks".
(R FBIS wire, 9 Mar 51). COPM`(ENT: Rumors and. reports of a variety of
coup plots in Thailand have been in circulation for the past three months.
Many of these have claimed Chinese Communist and/or Soviet connivance in
the cou planning and. have claimed that disgruntled officers of the rivalry=
ridden Thai armed forces were cooperating with the Communists. A regularly-
mentioned figure in these reports has been the deposed Admiral Taharn, who
was a leader in the last unsuccessful coup attempt. Recently, such reports
have also claimed that the former Thai Premier, Pridl, who is said to be
conniving with Taharn, and whose presence in Bangkok was rumored in early
Mean-
March, has thrown in his lot with the alleged Communist plotters.
while, both Chinese Communist and Viet Minh propaganda, in virtually iden-
tical utterances; have been putting out a steady series of attacks on the
present Phibun regime, the most recent of which hinted that changes were
imminent. (See OCI Daily S March). From the fragmentary press report
available, it is impossible to judge whether the present action represents
the forceful suppression of an incipient coup attempt by Premier Phibunos
forces or whether an open bid for power by coup plotters is actually in
progress. The question of possible Communist involvement in the affair
is similarly obscure at present.
"C" MALAYA. Press Launches Independence Movement. A campaign for Malayan in-
dependence patterned after the Indonesian independence movement has been
launched by the Singapore Malay press. Extremists in the movement are be- 25X1A
25X1A 1; SST^_,a vsi 11 inar to cooperate with Communist factions in Singapore o -
a. t _ _ t
u
r--70- . Malayan independence
o s
p
Other Malays, members o
who fled to Sumatra to avoid arrest have reportedly joined the movement.
A branch of Panitia is thought to be active in Kuala Lumpur and the above
report would indicate that its activities may have been extended to Singapore
where contact between the former MNP members and Malayan Communists would be
possible and where the movement could capitalize on Muslim unrest stemming
from the December riots.
(Panitia) was es a fished in Dakar a n y
f th banned left=wing Malay Nationalist Party (MNP)
Tw 191-0 bT 5 peninsular Malays.
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INDOCHINA. Viet :fficial Praises French. At a dinner in honor of General
De Lattre, Tran Van Kha, the new Minister of National Economy, delivered
a "fulsome and unrestrained" -ilogy of De Lattre, the French Union, and
French "presence" in. Indochina. His speech. met with a mixed reception on
the part of many Vietnamese present. (S Weeka No. 9, 6 Mar 51). COMMENT',
This speech indicates that the Tran Van Huu clique, which includes the
above mentioned Tran Van Kha,, intends to rely heavily on French favor to
maintain itself in power.
Viet Minh CaLabilities Without being specific, French G=2 states
it has ""some evidences" that "something could happen" in Tonkin during the
last ten days of March. French G-2 also reports that a Russian-Chinese
mission arrived in Tonkin on 10 February to ascertain Viet Minh capabilities
for a new offensive: Pursuant to a report in the last WEEKA that Viet Minh
units had been ordered to conserve ammunition, stockpiles earmarked for the
Viet Minh are reportedly being assembled in Kwangsi but are not being deli-
vered to the Vie+. Minh at present. (S Weeka No. 9, 6 Mar 51), COMMENT-
Reports from several. sources indicate that the Viet Minh is regrouping for
an offensive which rY.ll take place, at the earliest, in the latter half of
March. Reports that arms are being stock-piled in Kwangsi for the Viet
Minh suggest that the major Viet Minh effort in Tonkin will not take place
as early as 15 March, the date predicted in an SO report, These reports
may also indicate that the Chinese are making arms almost, but not qu::e,
available to the Viet Minh as a means of bargaining with Ho Chi Minh,
AUSTRALIA. High Court Invalidates Act Outlawiy Communist Party, Australia's
High Court ruled on 9 March that the Communist Party Dissolution Act is in-
valid. The Government is expected to appeal the decision to the Privy Council
in London--the highest appeal court in the Commonwealth. (U AP Sydney,
9 Mar 51), COMTENTa The Dissolution Act forbids employment of Communists in
key industries.' However, the Government may still rely upon provisions of
the Crimes Act which penalizes any individuals or groups who seriously dis-
rupt industry,
CHINA. Chinese Communists Fig Currency Depreciation. The Chinese Communists
have forbidden person entering and leaving China from carrying Jan Min Piao
(Chinese Communist currency) under penalty of confiscation. Persons attempting
to '"deflate" the currency are threatened with prosecution. In the meantime,
the value of the'Communist currency has been falling in the Hong Kong free
market, with 4,500 JMP now being quoted for a Hong Kong dollar, as compared
with the official 3,880 rate. (U iK Reut, 8 Mar 51)o COMMENT. This develop-
ment evidences the growing concern of the Chinese Communist authorities for
the inflationary pressures arising from their involvement in the Korean conflict.
According to one report, the Peiping government increased its note issue by
2.25 trillion JMP (some US$100 million) in the second half of 1950. January
price indices in Peiping were reportedly about 13% above the previous month's
levels. Meanwhile, Communist broadcasts have announced that several stores
in Tsingtao and Hangchow were closed as a result of improperly raising prices.
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"C" Dispersion of CH'EN Yi!s Forces. A Chinese source with contacts in
Peiping states thPt the dispersion of CH'EN Yi's forces (the 3rd Field
Army) was designed to reduce his chances of success should he attempt
military opposition to Peiping. Source alleged that Peiping cannot afford
the risks involved in removing CH'EN from his present position. (C Singapore
57560, F-6, 28 Feb 51). COMMENT: Of the 3rd FA, the bulk of the 8th and
9th Army Groups, plus elements of the 11th AG, are known to be in Korea.
The present location of the 7th and lOtr "Gs is uncertain. Although the
frequent reports of CH'EN's disaffection have not been reliably confirmed,
the above report is regarded as possibly true.
"C" Endures Food Shortage for Second Consecutive Years Consular econo-
mists in Hong Kong, in an analysis of the current food situation in China,
state that 1950 food output for all China, including Manchuria, is about
136 million metric tons, as compared with 128 million metric tons in 1939
and a prewar annual average food supply (output plus imports of about
2 million tons) of 142 million metric tons. During 1950, the food situation
in urban sections showed a marked improvement as evidenced by an,abundant
supply and stable prices. The marketing situation also showed some improve-
ments. Nevertheless, these outward successes were deceptive. Much of the
accomplishment was based on a ruthless policy of starving the peasants and
feeding the urban population for political motives. Although estimated
1950 output is larger than output in the poor 1949 Year, it is doubtful
whether the food situation has shown much improvement, since there.was a
considerably larger carryover in 1949 than existed in 1950 Since the
beginning of 1951, Communist vernacular reports are again giving publicity
to possible outbreaks of famine in Central, North and East China. While the
Chinese peasants are known for their patience, it is doubted whether they
will remain silent when they are forced to tighten their belts for a second
consecutive year after "liberation." (U Hong Kong D-1046, 30 Jan 51).
COMMENT-. The significant conclusion of this analysis - that the Chinese
Communist regime will face more active peasant resistance this spring as a
result of a food shortage endured for the second consecutive year - is
consistent with increasing severity of Communist security measures. Because
peasant resistance tb"the'regiu& is'localized and not-organized,it is n6t'--
4ptpected. tb threaten the, regime's control in most areas. However, thie r.esis-
tance, if active and widespread, will reduce the regime's military potential
by decreasing Communist control over agricultural output Pn.d reauiring the
~:jk diversion oftrob to maintain internal security
"All `Srttlemezt of Tibetan Status. According to a press story Communist
China and the Government of Tibet are about to begin negotiations for peaceful
settlement of their dispute. A Tibetan delegation has been invited to Peiping
to conclude a pact conceding Tibet's defense and foreign relations to Chinese
control, and guaranteeing continued rule of the Dalai Lama's hierarchy. '(U
NYT, 9 Mar 51)a COMMENT: 'No cohfirmation.is available for this report, attri-
buted to unidentified source in Kalimpong. It sounds plausible, however. Commu-
nist guarantees of internal autonomy, of course, are worthless. By reserving
rights for the defense of Tibet the Chinese Communists would be able to control
the government and place troops'bn the frontiers of Nepal and India.
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"C" KOREA. Farmer refugees Permitted Return to 37th Parallel. A tress report
states that ROK Home Minister CHOUGH Pyong Ok announced on 7March that the
military situation has improved sufficiently to permit farmer refugees to
return to their homes as far north as the 37th Parallel. Permission has
been limited to farmers and their families in order that they may start
spring sowing. (R FMS Ticker, 7 Mar 51). COMMENT: While the ROK's food
position is presently somewhat better than might have been anticipated in
view of war conditions, the ROK Government can not afford to miss any
agricultural opportunities. An obvious secondary reason is to alleviate
the serious refugee problem in the Pusan-Taegu area.
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SECTION 3 (WESTERN)
GERti MI Y. Germans Only Mildly Pleased ,rith Western Control RQvision.Q
Wiest Germans. 7e. -that the .revis=ion OTi ;:e Occupation Statue,
announced by the Western .Allies on 6 is welcome enough as far
as it goes, but that it is already out of date, The revision, based
on the New York decisions of September 190, reduces the rights of
the Allied High Commissioners to control affairs of the Federal
Republic. In return for the trest German assumption of prewar external
debts and a promise of ;material cooperation in ',Western defense, the
Allies have granted Donn authority to set up its mm Foreign Ministry
with limited po ?rc:m and have given up their revierw of Federal and state
legislation, most of their controls over German foreign trade and
exchange, and control of the distribution of funds, food, and other
necessities. The Allies have also announced that their 7o,~4-ers
.elating be t i1.e decors c nt abio1~. of industry, chec 11 -
Ltion, DP's
and refugees ~roul(l. be abandoned as soon as the Federal Hcpulblic has
satisfactory le ;ielat,_on on these subjects. Circles reflecting
Goverment o inion express the that the revision embodies a
step forward, but hope that soon a 'ilarge revision" will be made.
The opposition Socialists call the present action "small comfort".
(TJ Frankfurt 72 _3, 7 l!ar ~l) , C~??.M PT s The West Gen cans will not
be satisfied with an,,Tth.ing; shor7c o:C complete abolition of the Oc-
cupation Statute,
'
East ErzlaliS Halt rOa~. ] , East Gorman authorities
have ind:icaTec. crl- .SHay 'may limi`Crs_i~y leni s of coal from western
Germany to west Serlin, in retaliation for recent Allied controls
over west Berlin canal traffic. (OCI Daily, 7 .'Lar al) . T': ey have
stopped the first four trains of a total of 45 ',v'` ch were, according
to an car eement bet bon east and west l.ermans, to he er]t1J Cited to
carry coal into '3crlin. These ! trains wore intender'. to ,rove the
coal back--loZ r e--,al.ting:; from the closing`- by the cast Car: t. ri of the
1ittelland Canal locks on 11 January, Although the se four trains
were eventually allom :_'! to proceed, the ste:tus of the remaining
41 is unclear, since no more of the trains in this group have been
permitted to enter the Soviet Lone, (S Berlin 1131, C Mar >l),
C0M: NT: ALllthough limitations on coal ship ones to :rest Berlin
will not ':ho as to the s tockpi +,1_Il pro, 1 mr:i they would
have been in ;,inter, those cast German measuu 4n 11 still
handicap west Berlin's industry.
FRPNCE. End of Cabinet Crisis in Sight. An early break in the
current Caine crisis is now possi e inasmuch as there is a
"considerable trend" among Radical Socialist (Right of Center)
deputies in favor of yielding to Popular Republican (Pu'R-.P) insistence
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on a single ballot electoral reform, and. the politicians are growing
"tired of the crisis". The Socialists in fact admit that its pro-
longation would help the Gaullists. The next Government--whether
or not Premier-designate Queuille is invested by the Assembly--will
be generally regarded as one of "liquidation", only undertaking es-
sential tasks before elections, which an increasing number of political
leaders now desire in mid-Juno. (C Paris 5236, B Mar 51). COi,XY NT:
The deadlock between the Radicals aid the MRP on electoral reform
has been the fundamental cause of the crisis. Inasmuch as sentiment
is growing in France that this Assembly is "worn out" and should be
terminated before November-the scheduled data for elections-and the
coalition parties are agreed that some anti-Communist electoral reform
is essential, an early resolution of the impasse can be expected.
C AUSTRIA. Communist Purge Rumors are Depreciated. US 'sigh Comrais-
sioner Donnelly s a es 77 a Unite c Press correspondent received the
report of Communist purges from an Austrian police official. Donnelly
points out that although -there have been rumors of Titoist rifts in
the local party, the story appears exaggerated and the source sometimes
is not reliable. An investigation of the story is under way. (S Vienna
1942, 7 Tear 51). COL1TE11NT: The story of four Communist members of the
Central Committee belong-purged for Titoist sentiments does sound exag-
gerated. No other evidence has been received to support this report,
and purges in the Austrian Party have, at least up to the present,
been almost negligible.
"C" DMIRK. Government to Submit Economic Legislation to Parliament.
The Conservative-Moderate Liberal Govprnmen , has reversed its former
position (OCI Daily, 3 T.iar 51) and decided to submit to parliament
comprehensive proposals for remedying the critical economic and foreign
exchange position. A grass root survey indicated that public opinion
would be unfavorable in the coming Landsting (Upper House) election,
if no program was proposed. The decision avors the present Government
which will claim credit for action taken and blame the opposition for
obstructionism, if affirmative action is delayed. (C Copenhagen 74),
7 Mar 51). CO,,U;'ENT: Public opinion has become increasingly critical
towards the political parties for diliatoriness in attacking inflation
and the foreign exchange imbalance. 7-tile the above decision represents
an astute political maneuver, undoubtedly all democratic parties will
be impelled to attempt to solve the economic situation, which cannot
be permitted to continue much longer.
"C" CANADA. Government to Raise New Brigade for European Service.
Chan Governmntplans for 1951 overseas troop commitments have
now reportedly crystallized in the formation of a new brigade to
be sent to Europe under NATO commitments, plus the reinforcement to
brigade strength of the battalion now fighting in Korea. The troops
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intended for Korea have almost finished their training at Fort Lewis,
Washington, while the brigade for Europe is to be raised by the end
of 1951. Some units are already available to form the nucleus for
the new brigade, and army officials are confident that present recruit-
ing methods can provide the necessary remainder. (C Ottawa Desp. ,
23 Feb 51; Montreal Daily Star 6 Mar 51). C0101.210: The Government
has moved s l o w l y i n i sP ans to commit Canadian roops to overseas
service because of traditional French Canadian opposition to such moves,
and is specifically pledged to obtain Parliamentary approval for the
dispatch of troops to Europe. The approval will undoubtedly be forth-
coming, but will probably occasion the resumption of Opposition demands
for some form of conscription, a proposal the Government is likely to
resist unless the international situation becomes much more critical.
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(S/S Cable Supplement not for dissemination outside 0/CI)'~ -_
OFFICE OF CURRENT INTELLIGENCE
DAILY SaWARY OF SIGNIFICANT S/S CABLE TRAFFIC
9 March 1951
SECTION 1 (SOVIET)
"A" USSR. Deputy Foreign Ministers' Conference. The US delegation to the
Deputy Foreign Minis tern' conference, while warning that it is too soon
to reach any definite conclusion on the ultimate Soviet position, be-
lieves that Gromyko& s initial propaganda blast may indicate that the
USSR is primarily interested in exploiting this preliminary conference
for the propagation of their chief lines on German rearmament and the
reduction of the armed forces of the Four Powers. In commenting upon
the Soviet delegation's introduction of substantive matters, the US
delegation advises that, the three Western powers have as yet no agreed
tripartite position or firm individual position on substantive questions.
(S, S/S Paris 5218, 7 Mar 5l)..
SECTION 2 (EASTERN)
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