OFFICE OF CURRENT INTELLIGENCE DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000300050001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 9, 2016
• Document Release Date: May 4, 2001
• Sequence Number: 1
• Publication Date: June 30, 1951
• Content Type: REPORT

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DIA, DOS Declassification/Release Instructions on File
CF~iTRAL L+TTELLIGENCE AGENCY
OFFICE OF CURRENT II~TELLI~ENCE
IiA.Ii,Y DIGEST
J'~ r~ 3 0 1951
NOTES la This ~ of signi.fioant reparirs has been
prepared ~irimarily for the ixstern~l use of th?
Offic~t crf C~?rent ][~itel~.igen~eo It daes not
repre~snt ~ eompl?te oo~x?a~~ of ally, ourrent
re~tart~ irl CIA or in the ~Jf~'a.oe of Current
Intel~,igen~~
COPY NO a~_
20 Commrt~~,ts represent the prel~,minax?~ vies mf
the Off3:c$e cif Cua?x?ent Isate]:~.a.gen~a~ o
M"argi~~ letter
f ol]:o~rs b
ineli oatioffas ire defirned ~s
"A~ -items. i~,d~.cat~ig Smviet-Communist
interxtic3n~ ~ .bil,~tie~
01B~ - important regical de~relop~n.ents
not naoes~aril~ related t~ Soviet/
Communist intend?ns or capabilities
'~C~ -ether information indi,catang trends
and potential devela~a.ents
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nB~ $ Aid $o Iran, Hint?d in Soviet Press, Ntoscow newspapers on 29 June,
hinted for ~s first time. at-the possibilit
f
y o
Soviet assistance to Iran
during the present oil crisis. The newspapers did. not quote any Russian
stoutce~ but published, sn article from an Iranian newspaper calling for the
Government of Iran to avoid the threatened stoppage of oil by accepting help
from ~anti~iauperialist countries which are the sincere friends of the Iranm
ian people. (U New York Times 30 June 5~)o C
.anon of Px^emier R~r~sra~ the So~riet press has, tento avoid dited?~ ocaninm
went on the deteriorating Iranian, situations
material c~.7.1?d from th? Iranian press which fitstimdwith Nloscowb~iahed
Banda lines usually utilising irresponsible or fl mb ? Q ptopae
in some cases, may be indirectly susceptible to Sovietninf uen~cepi~enotwhicha
actually under.Gist con,trold In this cases the original. article came
from a low?circulation newspaper generally recognized as Communist, It is
possible that the USSR is~contemplating a gesture of aid to Iran which might
take the fora of a loan or technical assistance,
believed capable of su 1 in real assistance to Iran withontedi.sx?~aptingoits
own economyp pp y g
USSR will Cel.sbrate .stir Fox^ce Da on l Jule The. Deputy Chief of Pre
stations for the nation wide f estival~ Lt General ~asiTy,Stalin, told corres~
pondents that USSR Air I?oa?c? Lds
P?
y
will be c?Tebtated in sn atmosphere of
historic '~ictaries achieved undex?_the_lesdex?ship of the greaty party of Lenin
Staling He boasted that the USSR ?~
"
c~teated
the aviation industry and has
the most sd.~?anced aviation science in the world. .After a glowing descrip-
tion of the details of the preparations9 he announced that this ~'ce~nplete
mastery of the most ad~anc~ed techniquesQ9 will.. be demonstrated bar ~OStalinps
Falcons and others on ~: ~'`taly over Tushino .Airfields ~II?F$IS9 29 ,1t11y 51).
~?~ ~~ EUROPE C~CY3?SLGVAKIA, Arm Deemed, of Little Use to USSR,
25X1 X Py?agsae estimates .that . in its
ova .present state t e Czec
y s batter adapted fox?
d
s
efensive than an offensive missioas due
to the absence oi? strong leaclership,~ the shortage of modern equipanent and
the low morale of the average soldier, R'e also eacpresses the opinion that
Soviet failure to make a de~e~tnined effort to teos?ganize. and reequip the
Czechoslovak .Er indicates that the USSR intends to k?ep C~echoslovakis as
a supply base for the pres?nt~, wit}a only sec~ndaty military capabilitiesa
Other-significant features of the military picture in Czechoslovakia as t?~
25X1X potted by etas {1) although adequate military supplies
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are available to equip the present C~echoslc~vak Yq their warn candition
and lack of standardisation makes most of.:them obsalete; (2) not over ~5~
of the line units ax?e effe~t~.ge~.y trained in ~vviet tactics; {3) the reorga
ization Qf units and staffs to conform..ta the, Soviet pattern is-still largely
in the planning stage9 {~,) the unreliability o~ the Czechs and the natianal?
ism of the lo~raks makes the military reliability of the army gtxestionahle
in any role9 except that of oppos~ng'Ger?man aggression9 and {5) any appreciable
eacpansion cif the Czechoslovak armed forces would, be at the expense cif in~
dustrial and military produ.ction~ since the Czedhoslovak economy is already
.,.~_,
25X1A suffering from a r~a~ape~wer shortages
Of the Ei~arQpean satellite armies, th? ga~? ~n an umanian seem to be rel~
atively better prepared. ideologically and-technically to carry out soviet
aggressive designsa
?'B" Government Bas??~ b?~ Rising Wtirksr Discontent Resulting from Fa~od
Shortaaes a The U~ E"rnbassy in Prag~,e repprte that an e~rtraox?dinary sessio~u
of the.Ge3mmunist Party Central Co~ni~tee or .the Cabinet has been undex~ay
for the past three days, presumably to deal. with rising public discontent
ove~? recent food. she~rtages ~ ~ While there is n,o evidence of imminent dramatic
action, the ~tbassy has nod witnesped. such e~ctensive grLUnbling and criticism
of the government by the workers sine? the Communist coup in ~"ebruary ~.9~.5~
The shortage of meat9 including the disappea~?anc~ of ratior~mfree m?at fre~m
factory canteensa eggs, milk, butterq ,lcar~?p~?iced `bread and floux? and th
impending revision of worker norms are the principal causes of the discontents
Among the reasons e~ffer?d by the embassy fc~r the food shortages a~?e poor
management,. untaillingness of the farmers to turn thei~? swine and cattle aver
25X1A to cooverativesand pd~.ferage at the'slaughter houses and store~~
"C~
~'o Un sual Niilitary lictiyi~ Observedo
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reported e~`bser~ing no Russian troops, ?~!,~s~3s~. ?~? ~_ -pry ~ -
or ra raffic during a ~.C~day motet tri throughout the length of Czech
di
l
ki
a5 J
in ~ra~te c~nents
25X1X
une,
a
crva
~ en
ng on
os
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,
that his f n ngs par's
a
sown. as a resu~.t of a trip
over a somew a s ar rou a about a month previouslyn 25X1A
25X1A
.E>.
a'B" '~LTGQSI,AVI,@1's UK and France C~ppos? Yugoslav Membership in ~u~?opean ~'a?y~e~n~
tTnion. US Ambassador Gifford in Landow :repa~rts that the R~?itish and:. F':c?ench
Goverprnents are opposed to ~'ugoslav membership in the Eurrspean ]Payments
Union {EPU) because such action {7.) would 3nvol~re a drastic revision ~rf the
legs.]. basis of the e~rganization, {2} some members might ob~ec~t from. a fear
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n~~
25X1A
?f compromising the po].itioa.lly nev.tral cha~aeter of EPLT and further, (3) any
action involving Yugoslav membership would entail delays, The Ambassador him
self notes that Yugoslav membership.wa~ald not_take care ?~f Yugoslav deficits with
the tJSeand non EPU countries$ and Yugpslavia could not fulfill EPI7 obligations
involv~.ng trade..liberali~ationg degree of mult~.7.ateral cerntrol and eos~sultat -
et~,~ to whieh exceptions would have to be negotiated,.
~To US Ambassador .Allen.. ira Be
Coverx~mex~t lgrade recently repo e a e Yugoslav .
probably will apply for membership_in EPtT provided the US indicates
a willingness to facilitate .its membershipo
US Zone Oermarnv Rad.ia Interference Protested
The Yugoslav Foreign Office
has protested to the STS bnbassy Belgrade.the..alleged violation sirsee 1 May by
the radio station Hof R boated. i~t the US Zone cif' Oer~nany of the f~?eq~.ex~~~r
assigned tr .Radio Belgrade by internati?nal agx^.eement. The Yugoslav protest
acknovrledges that 'thanks. to the kindness of" .American o~cupati.an authcsrities in
Germs ~ ,s, g
ny previo~zs RIAS infrin ement of Radio Belgrade tis frequenoy had beep,
reatified~ Meanwhilea STS officials in Germany state that the Yugoslav protest
is purely legalistieg sines the lover power of the allegedly offending station
makes it technically inconceivable fox? RIAS t? interfere with Radio Belgradee
a s gna ory o he 1 OEIdT s The 25X1 A
radio frequencies among the various count ~eSsonven on_whieh assigned Europesn,
Both Yugoslavia and the ITS~R
I~rticipated in this Conventiono C~aninform propaganda .has occasionally touched
on alleged U3 intex?fersnce with the frequencies allocated by the Copenhagen
Convention through the operation of IISmoontrolled stations in its zones of ac?
eupation.
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SEC~'It3N ~ (EAST:1'
"B~' a Wheat Ooaatrovers ~, t Prec~ state Poiiti~al. Ca?isisq ~?he t1
~ba.ssy in Athens reports that- the A~x?eek gove~?ast~nt disagreement
ogee the le~rel at which wheat pries should. be fixss~ may reaoh propor~
tions ~vhYch would precipitate a political ~rie~,~~- Fpllowi~,g a
Parliamentary attack on the goves?t~niexat on 26 dune oaf this issues P
~.nistea? V'enizelos and ~icemPremiea?'P~pandreo~ anaixal~~ined that the
goverment cauld not su~?~,ve ia~ Pax?lia.;mea~t if it au~~pted the ESA
missioa~as reccaa~?a~dati?ans~ and eatbsequently indicated that they ri~.ght
prefer to resig,~ rather thaw face Paa?l~.a~ht in s~appa~rt of the ECA
miss3,?~n appra~ved wheat prig?~ '~kae U~ esy has urged ~.~elo~ to
display coairage and statesm~,~aip by fa~ing~ if a~e~~ssarya .a Par].ia,~
~. mentary test on this issaze~ emphaeizi~g`that even-off a purely,politicaT basis
it would- seem that a~lv~sca,cy of dheap brew; fer~? the people w~uald be a
~pvpula~? move wi the electorate even if? not- ~+ith P~rli~;n;t ~ 25X1 A
25X1A ;o (~?ls the ~rheat dispute ax?i~es from pressu~?e
e eek wheat px~od~ ~~ whs~: axe in fa~oa? of a h~..gh~a? ~rl~eat pa?i~e
than that advocated by the STS ESA mssiaaaa,, I'~ime .nister Beni ~elcs
may feel that9 since election. seem ine~ritabl?9 he a~oula~ prefea~ to g?~
out of office now9 without having to take an abvio~.~ly ~~'~sponso:~ed
stand against the wishes of internal p~^eestnre g,~upq Q FI? wily ho~vera
pz??bably stay on ~atil either 'the electioaas a~?e heldg or a caretaker
governrrtent is installed for- the electiaan pe~^fodo
Ira Labor ~iet~ban~e?~ F~ e 1'ea~t le Indu:sta? 4 Renewed labor
disturbances in I~~ahan in ~onnectisa~a with-the c?n?~inued shutdown of
varioustextile milli have tak?~ ,p].s,oe~ ~lash~s ia~ which mn~ wo~?~er
was killed. reportedly occura?ed between ~`udeh ~Y~athizers axad opp~asig~g
Sa?oups a There ~,~+~~~:s,lso reports of labor distu~?bar~ge$ at, ~ehckaa,h~? and
~azendaraan ~~aspian Sea areal arising fa?~m labor electioa~s vah~ch ~,y '
result in the shutdo aaf the sp~~ ~~,~
A ~ ~~?' ixn the textile Indust Ira s
generally u~aderpaid~ a~~?e~~er~, a shortage ~a~ raw .~~erials hay sha~~aly
curtailed producti~an in x?ec~ent months ~ ~ Z'he restive oituatioaa .gin this
industx?yp unrelated to the oil problem9 is isadicat~,~e of t~,e poor
consists?n of the ent~e ?~ranian econo~y,~' whic~h~ ac~gx?ditagly9 leaads
itself ~o Tudeh Party exploitation
"fin ~~ Go~rernmsa~t Restricts Tx?avel b Fo~?e Hers i Border ~rea~ ? ~?
Ix?aq ministry saf Int?~?i?r published in the press ?aa ~7 ~ae~x~ew rega~>
25X1 A lations ~ ~?estrict~ag the travel of fQx?eigxers inn a~?eas of I a r~.ering
on Ix?an9 ~urkey~, aa~d ~~~;
C~I~iiTo Iraqi, e~an~erx~ ove~? -its fx?on ers refleots the inea~eas~:.g~g
teaasion developi.~2g in the Near East4 Iraq has loner been suspic~lous of
~So~riet ixatrigue on its a~orthern frora~ie~^s ~ ire s~ecifica,Y,ly the re~?ent
Ixaard.a~a protest giver th? Aresen~e in .Iraq saf auga~sted i~^itish forces
aild over the arac~g of a British cruiser` ~.n Ira~~ wate~? opposite
Abads,n -will make ? g?v?rnment war~r lest it becsama directly inv~zlved
the Iranian oil disputeb _
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nBra Sta~,emate in Ira ? Q? N
11 e otiations,
25X1 C
?
the I
25X1C
a
aq F'e~roleaa
G
~
25X1X
m?
o
~'. s cu~?e~nt negotiations wit~I q because it fears t ep~p e e
of ? a~a ?~taation on Iraq,
offera~g ~,, retur
t
25X1X
25X1A
n
o
or a subse ent
e agreeable to Prime ~3.nister ~ux?~
~
Said
.
,
~~NTs ~~ ~ ~
7 une
some the
'
25X1A
~
~
weeks a er talks between
~ officials anei the Iraqi had been recessed, the ^Irac~i radio
announced that the negotiations had been suspended, The ~ompaaay~
ho~rever~ anticipates resuming the, talks
in the n?gotiatioaas is not the ~ `~~-~? The main problem
conclaade axa a unwi113.ngness of the ~e~mpeny to
q but rather the
form wh~,ch th~newearrangement shouldutakeBlx?a
offer a ,5~~5(7 profit shari ~'~ is plaaaning ~o
mplic~ated, b3' the taxatio~technicalitiesucrea edeby thedcom~ana~s
composit? interg~tional character and by the number of p ~
concessions
it op?~?ates;~,. The Iranian oil situation has made the companyQ s
represeati;~~es aous to net?tiate a new agreement; it has. ino
fluenced tYae Iraqis to be more ~ insisi~ent on sett],~,ng on the3.a^ own
tee ~, The recent Ira i ra
natioaa~lis~;i,c sentiment v/hi ~ mi ht result~y reflect increased
~~g r~al? on the ~ Com g in more extr?me demands
side .1.~ e~~~do ?~~''? In away events no swift actioaa by eitF~er
raB~ .~~~ '~? ~A ''sss ~o t
_ p posal has var$ed somewhat aecording~to mess
Political bps bf.th? individual newspaper, there seems to
feel~ag in the non?Co.~nunist press that the proposal contai ~ nogeneral
'~str~a~s sa and that ~ t sh?~11d be
25X1A
? ~ ____ mmen on .~ ~ i k P~n?nn~ Thou F'a
react~,~,n to Malik?s ro k~.s
psrsslb' leaa~ng toward peaceo seized upon as a hppe~ul de~elop~n;t
nBg~~t.~b?Iriese ~ f ? c 1 " e ~
., Bu~?x~~?e officials report t?~t custott~s ?
25X1X ~orde.r ~ve been quadrupled. to deter sI~rsonrael at ..the Si omEurmese
~stia~a~e~ that th ~BSling~
25X1A
e scale of fire srcm~gg],ing i8~ x?~cen 25X1X
d''~~ to ~~ a, m~antl~.,~ The US consul general considers ~at~r~;centbe
Burmese ?ts of about 3~,4Q0 tires a month are not excessive ia~
vied et.~? the 35~~Ck'7~ re8isterec~
gets ~~ ~' ~arc~goon Iles in Burma, and the kaard. ease tY~e
s 9 27 ~'~arae 51) a ~~I~N9~x It is duubtf~.~L if the
g of tiresp petroleutaa and other ~trate is i
~hi~. from Bu~^ is actually declini 8 ~ ~ntsa Commua~,l.st
and the c~apac~. of the mfluntaiaa?~. ~g~Ai~atouYuxaaaa~a~~'~?cv~.~~e$ar
liml.ted~ .the ~l~ia~ese are effected tct, exploit Burma. as a
strate~,c~ aaaterials se much as possib2;e~ sere of
nBee ~F%/1d1~~ Situat~ioaa as Ba
25X1X kok ~e ar^ted ~sch 1,m oYSdta
9.~,,~ ~~ r~P+~'ting tkaa~t the situation r~esultia~ Pram. t}~sa 3 ~.._~_ __?_
- rshs,ll, "~.~3t1.bt9g':9 i s? o'~ s 9 ro _ _ _
a~?e nmu e ~ an that the that conditions
or twoP~_ Their optinaa.sam is shared n m s ld b? settled ire a nday
who feel tk~at the strength of the c~ ani?litary attach~ses .Bangkok
25X1X
25X1X
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is so pr epo~deran`~ that the ultimate vutcoms of the issue is not in
deubta ~~.$h. oval officers apparer~~r were not a part of this plot
and are rep~?ted to have ordered a cease fire which the Marines refused
to ~~~~ ~ ~~~: From available
reports i appears that A 'ral Taharn Kami~,i~n;;~. former commander of
the E~.~^i~aes a~ad believed to have been under Marine protection since
his a~'rest was ordered last March for plotting a coups and General
Kash ~~~r,9 recently retuned exiles are responsible for this
$ttemp~~ t~ ~averth~?ow the regime, chile the kidnapping of Phibun was
well exec~t?d~ the rest of the effort gives indication that it was
e~.~'he~ per peed or commenced prematurely since it is doomed t?s
silu~rr~ mess given substantial support by either the arm~p or police.
the nay?~~' i,nsu~?gents appear to be fa9.~'ly effectively isolated9 and
n~;g~t,iat~~c~ff~s fo;~ tkne release of the Premier are likely to commence
~_~ ~:th.c~ near future o
~~ao ~~~~o ~~~ ~?n~ opinion on ~dalik?s Peace Bid, IJS ConGen Hong Kongt
in ~ '~ ~~`sip ?f Hong Kong opinion aM
r?pc~rt~ that (a~ 1s1ik's cease-fire proposal,
persons feel that "the origa.nal Sing-Soviet
tee; ~~ f ~~? a Korean settlement are likely to be brought forward again
i.n neg~t~ations following a truce;. (b) one grow (ixaclu
~~~tiolists~ believe Malik?s overtures to be sim ~'~ most
ges`~~arce~ ~~~ another rou P13' a Propaganda
g p (the largest believes ghat the Commer~sts
genu~.nely '~iskx t~ end the Korean conflict and achieve their objectives
by ~~~~~e~'~~~ although these observers note the possibility mf
0~51.st agg~?ession elsewhere; aptd (d) certain "disillusioned former
fell?t~?a~,~'elers~e feel that the cease-f~.re proposal, was a result of
ohinese insistence on either Sc3v3.et aid or an end to hostilities and
tha'~~ ~~he ~~~ hopes to place on the UN the blame for fail
'
ure of
negc7
~ia~~iorci~~ a thus ccn~.nce Pe3,pirig that the war must ~p~,~ca,
e!r7tnt~run+. ~ _ ~ _ .. _ _ _
n
~ forges f~^~a~'i Kor?a~ and 1ea~ves it pennto ~ipinget~ bringwforward~
the o1~~~~,e]~ t'~o .demands as welly i.e,~ admi.ssi,on to the tJ~ and title to
Ta~.,~o ~~!, ~?ega~?d to the fi~aal act of opinions stated aboveg there
has been speculation that the cease-fire bid was a result of Chixaese
un lne~s ?~~ persist in the Korean adventure without
a~~d and Soviet n~vrillingness to risk an a greater Stav'3.et
pr~vid~.ng such sid6 xpansion of hostilities by
--r----- ~~ a ~~,~~-4eu?rs prom the pos~.ti?n
eta~d. ' ~'ree~? GkioTJ ~,?lai on ~ February, namelya that Peipir
~m D~Tsa~cow tea Pyo~gye,~g,
Tlae Noa~th, K~ares~as agreed '$dbw~a the line"'with ~seow? s ~a~:
and then, took advantage of the occasioa~ to protest against the cafa~t~su
that tl-ae US is aztaLlli,~ing Japanese sold3.ers ins Ka~x~ea and is "tx?~i~i~;x
Japanese ~olteers fea~? tlai~ Kore~i freantaa+ C3~1e ixano~retion was noted
i,~ t~aat~'the.;.~~r*` ,~:ate~~euaAtdes~.na~d that the North Korean r?ege
?must be gx?anted flee right to participates in the Japanese ~'e~ac~ ~x?eat~ro
(~ l+'13ISa, ~9 J~a 5l~ ; Cc g~~o It ~,,s xaot 1ael.a.~ved, tima~, tixe~?e is a
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`d3.~?ect connection between this Aiorth Korean comrn~anique and the -Malik
puce bid, alth?ugh the former carries a. 23 June date. It fides not
appear likely that the Nearth Koreans are seriously advancing ax~y clemard
for particip~.tican in the Japanese peace treaty as one of the political
terms for a Kereaxa peace -settlement, but rather to offset-the South
Korean request for participation and thus g~.ve emphasis to Ce~~naunist
,regime's claim t4 be the legal govercunent o~ gates.:
TCP