OFFICE OF CURRENT INTELLIGENCE DAILY DIGEST OF SIGNIFICANT TRAFFIC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000100120001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 21, 2016
• Document Release Date: June 2, 2006
• Sequence Number: 1
• Publication Date: March 14, 1951
• Content Type: SUMMARY

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COPY NO 3j
03TICE OF CURRENT INTELLIGENCE
DAILY DIGEST OF SIGNIFICANT TRAFFIC
Date: MAR 14 1951
NOTE! 1. This summary of, eignifioant reports has been
prepared for the internal use of the Office
of Current Intelligence. It does net
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.
"A" - items indicating Soviet-Communist
intentions or capabilities
NEW - important regional developments
not necessarily related to Soviet/
Communist intentions or capabilities
- ether information indicating trends
and potential d.evelepments
OSD, DIA AND NAVY HAVE NO OBJECTION TO DECLASSIFICATION AND RELEASE
NAVY, OSD, DIA and DOS review(s) completed.
T)DRFCP P
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TOP SECRET
SECTION 1 (SOVIET)
USSR, Su r~s eme Soviet assts ew n_W ~?__ ova nde At a joint evening
session on 21 March 51, the Supreme Soviet decreed: (1) to consider that
war propaganda, whatever its form, undermines the cause of peace, creates
the danger of a new war and is consequently a most grave crime against
humanity; (2) to prosecute persons guilty of war propaganda and try them
PRAVDA and IZVESTIA carry numerous,, lengthy speeches and lead editorials
on the new law, proclaiming its internationp? significances referring to
the recent Stalin Interview and the Second W~?ry?.d Congress of Peace
Partisans appeal to the TJN on war propaganda, nd citing the previous
Soviet proposal on war propaganda. Also reference to American aggression
as having committed a grave pen a.l offense.
COMMENT-, This decree generally parallels those of the Eastern European
Satellites, the GDR, CPR and the Mongolian People' Republic passed in
conformance with a WPO resolution,
and warmongering, German remilitarization, etc.
population.
~Z--11 434
NuI fy... P.Pesed. Coneumer _Sav n
Soviet Budget Increases Isame
roz 1 March Price Cute. In connection with the 1 March prict cuts, the
Soviet Government stated the resulting lose in revenue to the state would
amount to 27.5 billion rubles. However, according to the 1951 budget,
9.6 billion more rubles will be taken from the population directly in the
form of income tax and state loans than last year, In addition the state
may also expect to gain at the population?s expense through increased in-
come from the turnover tax (805 billion rubles),- industry profits tax (6,7),
and from the use of new individual savings (3.5) Furthermore, the 7
billion decrease in Kolkhoz market prices portrayed by the government as
a saving to consumers also represents an equal loss of income to the rural
the Albanian Minister of Justice, has been relieved of his position "on
the proposal of the Chief of the Council of Ministers." Manush Myftiu,
Minister of State Control will assume the duties of the office in the
interim. COMMENTs Konomi?s release appears
EASTERN EUROPE. ALBANIA. Minister of Justice nReleasedaeo Dr. Manor. Konomi,
to be part of a continuing reorganization of the .Albanian Cabinet,
The future duties or fate of the three ministers
released from their posts have not been announced so fare Embassy
Belgrade reports that a round trip flight of a Soviet II,-12 to Tirana
was made on 6-7 March. On its return flight when the plane made its usual
custom check at the Belgrade airport, Soviet Embassy officials met the
plane as if there were high ranking officials on board. Since the ninth
plenum of the Communist Party Central Committee held in Tirana from 19 to
23 Feb, in addition to the governmental shakeup, local Communist Party
officials have been dismissed and stricter control measures have been
instituted,
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TOP SECT
?PB" BULGARIA. New Civil Defense Mass Organization- Created. The newly created
"Voluntary Organization for Defense Assistance"" is reported by Radio
Sofia to be in the process of organizational activities throughout Bulgaria.
The broadcast indicates that members are pledging themselves to attain
greater proficiency in the arts "for the defense of peace" such as sharp-
shooting, parachute jumping, glider piloting and to train "thousands"in
similar activities. Courses will be held "to prepare all members in sharp-
shooting and air defense,before the end of the year." Mine workers of
Vulkan colliery have challenged Maritsa coal miners to a "competition for
efficiency in the courses." COMMENT.- Organization 25X1
of this new group follows close on the heels of the merger of the two mass
pars,-military organizations for civilian survoaillance and control, 25X1
The USSR is overlooking no bets in strengthening
its Bulgarian outpose for all contingencies.
HBO CZECHOSLOVAKIA. Catholic Bishops Succumb to Communist Pressure, On. 12
March, four Roman Catholic Bishops and two other church administrators swore
loyalty to Czechoslovakia"s Communist regime before Vice-Premier Fierlinger,
Director of the Office for Church Affairs. COMMENT: 25X1
The 12 Bishops of Czechoslovakia until now have presented an united front
against increasing pressure from the regime to accede to the Le.w of 1 November
1949 which required all clergymen to take a prescribed loyalty oath. Two
of the Bishops were sentenced to long prison terms last January on charges
of treason and espionage. The banishment of Archbishop Beran from Praha and
the investiture of a pro-regime priest as Archbishop pro teml 25X1
probably paved the way for the fealty ceremct"y. As a
result of this new rapprochement, the Government is considerably closer to
the creation of an autonomous Roman Catholic Church in Czechoslovakia, ex-
empt from the influence,ef the Holy See. ,
""B"" HUNGARY Permission to Set Up New Cooperatives Temporarily Suspended. A
decree issued 27 February prohibits the' establishment of new agricultural
producer cooperative groups from 10 March until further noticed Hungarian
officials explained that the order has a two-fold aim: (1) working peasants
must devote all their energy to agriculture now that spring is here; and
(2) efforts must be made to strengthen those cooperatives already set upb
COMMENT: An intensive campaign during the last few
months to increase the number of cooperatives resulted in the formation of
1,800, bringing the total to 3,480 at the end of February. A shortage of
skilled agriculturalists and tractors, as well as other weaknesses pro-
hibit further numerical development of the cooperative movement at this
time. Efforts to increase the membership of the existing cooperatives,
however, are continuing. Meanwhile, the anti?kulak campaign is being in-
tensified. According to Hungarian officials 70% of the arable land is
still in individual holdings.
Production of Children Promoted, A decr?e issued 8 March creates
the Order of Merit for Motherhood "to honor the mothers of many children
who have greatly contributed to the strengthening of the homeland."
COMMENT, The Bulgarian Government recently awarded
medals to 39 mothers who had reared many children. The Russian Communists
and German Nazis used the same method to increase their populations,
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R174ANIAa Possibility of Soviet-Satellite Meting Near Bucharest. The
fact that during the past week-end diplomatic cars on the way to Snagov
were turned back about 10 kms from Bucharest has led Western diplomats
in Rumania to believe that a high level conference is being held at the
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YUGOSUVIA. !tractors for Yu oslaviao Embassy Belgrade strongly supports
the Yugoslav proposal to obtain 5-7,000 tractors from Western Buropean
estimate that the additional tractors would enable a 15% increase i. grain
production, particularly over a period of 2-3 years. The Embassy points
out that tractors on farms will not only improve Yugoslavia's export and
foreign exchange position but will also relieve the stringent manpower
situation in the Yugoslav mining, forestry and other essential industries.
The Embassy states that the essential weakness of Yugoslav ve-ear
Plan of economic development lies in the imbalance of agriculture, es-
pecially the syphoning off of manpower from the farms,This has resulted
in a manpower shortage on the farms without provision for replacement,
and has contributed to the failure of agriculture to recover its prr
status The Embassy does not consider unrealistic the Yugoslav
countries. through BOB on easy credit terms.
The Embassy cautions, however, that unless the tractors are utilized to
the best advantage on private farms as well as collectivized farms
(which represent only 20% of agricultural land), the recent tendency
toward decline in over-all farm production may continue, thereby negating
COMMENT.- Yugoslavia's ability to use an additional 5-7,000 tractors is
limited by its lack of trained operators and maintenance facilities,
Previous reports indicate that manpower difficulties in industry, mining,
etc., arose, at least in part, from the fact that manpower would not stay,
but returned to farms. While mechanization would release labor from farms,
it is not believed that there is now an agricultural labor shortage.
the expected advantages in respect to exports.
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SECTION 2 (EASTERN)
"B" THAILAND. Phibun 0pposes New Relent, The King has appointed Prince Dhani
Niwat to succeed the late Prince Rangsit as Regent of the Realm. The
appointment was approved by Parliament with only Prime Minister Phibun
and a "maverick MP" voting in opposition. Ambassador Stanton comments
that Phibun?s vote was a surprising lapse of his usual political astuteness
and will probably cast a shadow over his relations with the new regent,
d i
h
n
an
who is popular in Thailand and is expected to take a stronger
COMDAENTS If Prince Dhani restricts his activities to management o the
regency, no serious upheavals in the Thai Government or change in its
administration is likely to develop as a result of personal animosity
between himself and the Prime Minister.
"C" INDONESIA. Communist party supports Moroccan independence The Parliamentary
':gas voiced su ort of
faction of the Indonesian Communist Party (PKI) Pp
Moroccan independence, stating that the PKI. will not take a neutral stand
on the issue and calling upon the entire Indonesian people to dema
.1 F_
before the predominantly Moslem population of Indonesia, can point to the
government?s indecisive stand on the issue.
"BU INDOCHINA. De Lattre leaves fear Paris. De Lattre departed from Saigon
today for. Paris where he will press demands for military reinforcements.
In this connection he hopes to meet General Eisenhower on 16 March.
"B" A11e0*ed suicide of GeneralGiaape A Saigon Vietnamese newspaper,
has published further details on the circumstances surrounding the
rumored suicide of the Viet Minh C-in-C Vo Nguyen Giapo Giap is reported
to have taken his life as a result of accusations by a subordinate
general that Giap was responsible for Viet Minh military reverses in
Jaanuary~ COMMENTS A member of the Bao Dal
Government confirmed hat he was the author of a
whispering campaign which produce the above story, which,, to the best
of his knowledge, has no basis in fact
"A" I eminent CChinese Invasion Held Possible. US Army Attache Saigon
calls attention to a combination of factors which may herald a Chinese
invasion of Indochina earlier than General De Laattreus estimate of August.,
Septembers 1) Viet Minh work on supply routes has been expedited, 2) the
CCF is still in a position to attack without warning, 3) past experience
with Chinese indicates that the period immediately preceding the rainy
season is the most likely period for a CCF i-1ir?ture in Indochina,
4) Franco-Vietnamese forces could barely withstand an attack
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by the Viet Minh alone, and this attack, which is expected soon, would so
seriously tax the Fren h that the CCF "could not resist the temptation"
to move ins C0MMENT: The Chinese
Communists continue to possess the capabilities ior invasion, but indica-
tions are lacking of their intent to do so in the immediate futures
"B" CHINA. Communists ma. acquire l OOO ton tanker. A Chinese Communist
crew, manning the 15,000 ton tanker YUNG HAO in Hong Kong, endeavored
to make an unauthorized departure for the mainland on 11 Marche The
vessel was intercepted by harbor police, and the crew was placed under
arrest, charged with attempted transfer of anchorage without authoriza-
how-
d
emeanor,
tion of harbor authorities. This charge is m:;rely a mis
ever, and Hong Kong authorities have indicated that they have no legal
Nationalists in Hong Kong before possession was taken by the Chinese
Communists. United States officials have repeatedly declared their
concern to Hong Kong authorities that the vessel would depart for the
mainland, where it would be invaluable to the Chinese Communists,
the petroleum-carrying capacity of their fleet. Interception
doublin
g
by the Chinese Nationalist navy may be the only way to prevent the
tanker from reaching the mainland. US naval vessels in the harbor
are prepared to signal immediately if the tanker departs.
"C" KOREA. Yon of Powfer Pler_t Badly Damaged.,,. A preliminary ECA inspection
of the Yongwol Thermo Power Plant indicates that -b e plant has been
badly r?amaged by the fighting. The plant has a rated capacity of
,00.0 kilowatts although it has been producing only 60-70,000 kilowatts
100
during the past six years. It is estimated that in six to eight weeks by
cannibalizing part of the slant sufficient repairs could be made to produce
at
l
'
y
supp
25,000 kilowatts. Coal on hand is estimated at one months
25,000 kw. The coal mine, however, that normally supplies the plant is
the Yongwol Plant produced about 80$ Q South ores
Si
IMENT
OI
nce
s
V
C
electric power prior to the Korean War, the plant's importance to the
ROK's industry is obvious.
tic" Com unitt vulnerabilities. A mid-February summary of POW interro-
gations indicates that the major causes for low morale among enemy troops
continue to be hunger, frostbite and fear of air attack. Almost two-thirds
of the POWs claimed that food was obtained entirely through foraging and
that food had become increasingly scarce south of the 38th Parallel.
Two-thirds of the POWs, both Chinese and North Korean, mentioned frostbite
and estimated that 10 to 97% of the men in their units had been affected.
Shortages of medicines and medical facilities were a more serious factor
among North Koreans than among Chinese. No North Koreans reported receiv-
ing innoculations or vaccinations although some of the Chinese had received
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immunization injections. A large number of reports were received indicat-
ing intense fear and helplessness in the face of air attacks, at times
& mounting to virtual demoralization, A higher desertion rate reflects.
the more serious morale factor among the North Koreans.
Socialist Party. Strong right wing minorities in both the Party-and the
Federation favor soft-pedaling or even discarding the Socialists three-
point policy which they feel is unrealistic and not reflecting present
public opinion.
COMMENT. Sohyo does not present a solid front at this time. Within its
ranks the Federation reflects the growing difference of opinion in the
International Confederation of Free Trade Unions. 25X1
the USSR and Communist China), perpetual neutrality and no lease of
military bases. Sohyo also voted against joining the anti-dommunist
"C" JAPAN. JaDanese Agency in Washington Proposed. Noting that the establish-
ment of a Japanese Government Overseas Agency in Washington would serve
to familiarize Japanese Foreign Office officials with the Washington scene
during the interval prior to conclusion of the peace treaty, the Depart-
ment of State has requested that the Mission in Tokyo discuss with SCAP
the desirability of such a step. The Department also suggests that SCAP
consider granting authority for the agencies in New York, Los Angeles,
San Francisco, Seattle and Honolulu to perform passport and other travel
documentation services. COMMENT: Japan?s 25X1
overseas agencies have been established iii the US and in several other
countries primarily for trade promotion and market research, although
they have performed quasi-consular functions in some cases. These
proposals would be further steps in restoring Japans international
status prior to a treaty.
"C" Larsaest Labor Federation Favors Socialist Stand. Sohyo, credited
with 3,200,000 members and Japan's largest labor organization, went on
record during its three day national convention in Tokyo as supporting
the Socialist Partyus three-point policy of over-all peace (including
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SECTION 3 (WESTERN)
"B" ITALY. Projected Socialist Unification :1al;.es Cabinet Reshuffle
Increasin Lf1 ely. Cabinet res u e In Apra or immedia e y
a- er - ie l4lay elec ions is probable now that the Socialist Party of
Italian Workers (PSLI) and the Unitary Socialist Party (PSU) executive
committees have signed a definitive agreement for unification, based
on PSLI withdrawal from the Government (and PSU support for the
Atlantic Pact). US Ambassador Dunn believes it likely that the PSLI
convention (beginning 31 March) will accept the unification agreement
and that the PSLI may leave the Cabinet during early April. The
Ambassador adds that "no one even hazards a guess" as to what the new
Cabinet would be like. He points out that the agreement :makes no
mention of trade union policy. C OI.UMT1;NT
Because of intensified pressure from the right and _e - wings of
Premier De Gasperi s s Christian Democratic Party, a new Cabinet will
probably involve increased concessions to these two groups. The
ISLIes decision to leave the Government is probably precipitated by
(1) possibility that a strong Italian socialist movement may develop
as the result of the projected alliance between the PSU and the
follow?rin of Communist defectors M.Tagnani and Cucchi F_ -1
and (2) the increasing ineffectiveness of the PSLI in the
Christian Democratic-dominated Cabinet.
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YT F L1 a i Coalition Cabinet Formed. Dr, Romme, Parliamentary
Tea er of -the M,a1C)"Y1C Party, has reported success as informateu
in ending the seven-;week-old Cabinet crisis with a four-par y agree-
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meat to join a coalition.. The program calls for an increase in
defense expenditures and a restriction of consumption and investment
to ease the balance of payments disequilibrium. The now Cabinet has
the same political complexion as the last, with participation by the
two major parties (Catholic and Labor) and two of the minor parties
(Christian Historical Union and Freedom and Democracy). Furthermore,
there will be few shifts in Cabinet personnel, as Drees, Stikker and
Lieftinck retain the posts of Premier Foreign Affairs, and Finance,
respectively. COIll NT: The retention
of almost all the members or the former a inet' p- ably will give
continuity to Dul,ch domestic and international policy. The inclusion
of Stikker, despite repudiation by his party (Freedom and Democracy)
is indicative of the national and international eminence he has at-
tained.. The immediate need for measures to carry out the defense,
social, and economic programs indicates that the New Guinea issue,
which was the direct cause of the last C abinet t s downfall, will be
pushed into the background.
"C" IRELAND. Cabinet Shuffle of Little Significance. In a triangular
rea oration of Cabinet positions, t e Mnis erg of Defense, Industry
and Commerce, and Justice have exchanged responsibilities.
COTSEMINIT: The move was effected in order to give
the ailing 11intis cr c ustry and Commerce the less burdensome
Justice portfolio. The coalition Governmentts balance remains un-
altered as all three men are members of the same party; no significant
policy change is involved. The facility with which the Ministry of
Defense was reassigned suggests the slight importance the Government
still attaches to military :matters.
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DAILY DIGEST SUPPLEMENT
MAR 14 1951
Not for dissemination outside the Office of
Current Intelligence
4 LL 4
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TOP SECRET
OFFICE OF CURRENT INTELLIGENCE
DAILY SUMMARY 25X1
14 March 19;1
DEPUTY FOREIGN MINISTERS' CONFERENCE
CcMMENTm Soviet delegate Gromyco has state a e co er-
ence no agenda which did not specifically include the subject of
the demilitarization of Germany and the prohibition of the remilitariza-
tion of Germany would be satisfactory to the USSR".
SECTION 2 (EASTERN)
"A" Remarks of Jessup Regarding Soviet Actions in Deputy Foreign Ministers'
Uoh-f eren ce. e e ega o e Depu y Foreign finis ,ers 4 Conference
s aT s that the Soviet delegation has made the usual propaganda attack
on the West and has not revealed any new positions. The admission of
the Austrian Treaty and German unity issue to the Soviet agenda consti-
tutes no concession. The Austrian Treaty is still linked with Trieste
and the addition of "German unity" apparently represents Soviet recogni-
tion of a disadvantageous propaganda position4 The US delegate believes
that the Soviet delegation is waiting for "some break" in the Western
position and that the conference will, therefore, continue for some time.
He also believes that the modified Western agenda contains all important
concessions that can be made without moving toward the slanted Soviet
agenda.
sentiment in Burma,
INDOCHINA, Cambodian Appointee to Burma. The Cambodian Government intends
To ssig,~i a p e,n is mine To E Tench Legation in Burma. US Embassy
Rangoon considers that the assignment of a Cambodian representative on
this basis(rather than as chief of mission) would be a grave mistake
since it would be interpreted by the Burmese as evidence of continuing
French control over Indochina and might contribute to pro-Ho Chi Minh
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,..e
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SECTION 3 (WESTERN
"B" GERMANY. Allies Review West Berlin Canal Restrictions. At a spe dal
me me tee ng on l2 March, the Allied High Coi.ssioners in western Germany
planned to review imposition of counter measures against the Soviets
on the west Berlin waterways. t a meeting 25X1
the dasy before, the three Allied Berlin commandants agree to urge the
High Commissioners not to discontinue these counter measures, which have
so far resulted in considerable stalling of east German barge traffic in
west Berlin canals- This view, presented through theBritish commandant,
stressed the need to force a cessation of Soviet east German harassing
Ca LENT -. No further reports have been received on the outcome o e
12 arch meeting of the High Commissioners, who are presumably reconsider-
ing these counter measures in view of east German halting of train ship-
s
l
V -_-
Lm ent s V .L coa
VV "e
"B" FRANCE -INDOCHINA. De Lattre Seeks Eisenhower Interview. General de
a re de assignyA ren High Commissioner in In ochina, who will
arrive in Paris 15 March to ask personally for reinforcements, has re-
quested a private meeting with General Eisenhower to seek support for
his mission. The US Minister in Saigon reports that these reinforce-
ments are vital toFrench plans and operations in Indochina, and de
Lattre is gambling that he can complete the Paris trip before the ex-
pected Viet Minh offensive opens in late March. Inasmuch as Minister
for the Associ ated States Letour?nean has indicated that the decision
to transfer metropolitan, troops to Indochina depends on General.
Eisenhower's attitude, de Lattre believes he must see Eisenhower
personally.
CC MENTo General JUng supreme ren military comman e?, favors n&l
in gate ?. tional troops to Indochina, but the French Government new seems
willing to be guided by NATO 'leadership on the size of such reinforce-
ments. By deferring to NATO headquarters in this instance, the French
may t sh to pave the way for a possible future decision to request
international participation in the Indochina struggle -a step which
France has carefulay avoided to dated
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