DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000800110001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: June 7, 2001
• Sequence Number: 1
• Publication Date: February 29, 1952
• Content Type: SUMMARY

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SECRET
SECURITY INFORMATION
29 February 1952
US OFFICIALS ONLY
OCI No, 3883
Copy No., 5
J1
DAILY DIGEST
DIA, DOS Declassification/Release Instructions on File
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary of significant reports
p~ lIt does
of CurrenteIntelligence.
for the internal use of the Office not represent a complete coverage
all
Comments represent the
or in the Office of Current Intelligence. immediate views of the Office of Current Intelligence.
SECRET
SECURITY INFORMATION
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SECTION 1 (SOVIET)
1. USSR. Soviet official in Austria comments on State Treaty:
In a converses ion we a In an onsu in ienna,
Soviet Deputy Minister to Austria stated ith~'t mtheiRusiians
deputies,
did not attend the Austrian treaty
London because they were aware of Western intentions to
introduce an abbreviated treaty. He added that in any
event the Russians desired to conclude a Ger2anFtre a2)
before an Austrian treaty. (S Vienna 2777,
Comment: The statemeete represent ra-
tion - n ~viet policy; th to conclude an
tion-
bons that the Suntilsther Germanlquestion was settled.
Austrian Treaty
C nference d
o
on-
CZECHOSLOVAKIA. Ideological oe1 eo ogical
the supra-party, non-political c st time well as cosmopolitanism in science. For theeofiiradio Prague,
in the history of Czech science, according
1000 scientists are meeting to "repudiate incorrect or
biased opinions which have penetrated into some branches
of science" during the prewar years.
a
Radio Prague points out that cosmopolitanismnisoa
weapon of reaction used by imperialist agg
subversive purposes. In this it cites and
cosmopolitans Sling, Svermova,
"all other traitors of our social system."
Luminaries at the convention include MinisteranofCDi-
fense Cepicka, Vice Minister of Defense Hruska,
of Staff Lt. Gen. Vaclav Kratochvil. (R FBIS Czech Home
Service, 27 Feb 52)
Comment: Czechoslovakia's culture is obviously about
to un ergo a thorough ideological revamping designed to
objectivity, and
kill Western influences, particularly
realign the arts and sciences with Stalinism. Thepresent
campaign against cosmopolitanism, which went into sw its internation-
al high
gear in January, has consistently
al character and its relationship with "United States
imperialism."
meeting in Brno will declare
haracter of science as
XMA charc er o scince.
scientists rom a zech universities currently
war against the assertion of
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The presence of Defense Minister Cepickarecentand
Minister Hx?uska. at the conference ? The he citing of
substantiates
rumors that they have been purged The
rporthvil as brother of the
reports that G has been removed
Czech Ambasdo post the undersarrest.
from this p
artite op-
LAVIAo Government irritated over trrpo ram. e
3. YUG?S
oslav capi al investment ecisionto Pro-
posy aon to Yug as ma e a In ng egos av men 'Oro gram in its present
Belgrade,
ceed with its s capital
goslavmeconomic officials inrovi
form. According to Yu itair_ 's refusal
United States, France, and Br resents inter-
ference assistance for nh e this Program rep The eo Yugoslav
is
officials laimsthatathelcapital investmetbppgca of pay_
ombat
absolutely necessary to solve Yugoslavia's
a
ments problem, finish its uncompleted Plasts, in and be combat the
omb g Cominform propaganda that Yugoslavia is laggi 1045 be
Satellites in industrialization.
26 Feb 52)
Comment: Britain,
In mid-February the United States, and ranee refused a Yugoslav request for approXoimately
imao The
ai
80 million dollars to finance capital goods imp
that the Yugoslavia's tripartite current
Yugoslav Government was informed
program is intended only to finance loos imports.
account trade deficit and that it should look to the e In-
ternational Bank to finance its capital g
earl investment program would
gosl av Communists that the building
serve The to reass creassturre en Yu of the cap that of the regimen
of socialism remains the principal Objective
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SECTION 2 (EASTERN)
1. INDONESIA. Indonesia suggests mixed commission on New .
Guinea-.The First Secretary of the Netherlands massy in
Washington informed a State Department official that Indonesia
had proposed the establishment of a mixed commission to con-
sider informally the disposition of Netherlands New Guinea.
Indonesia had previously refused a Dutch suggestion to soli-
cit legal opinion on the New Guinea issue.
The work of this commission, according to the Indonesian
proposal, would not be binding upon either government but
would be available for the use of both after the Netherlands
parliamentary elections in June. The Netherlands stated
that although it sees no objection to the proposal, it
wishes to emphasize that Dutch readiness to participate in
a mixed commission does not imply acceptance of joint
responsibility over Netherlands New Guinea. The Netherlands
considers the proposal moderate. (C to Djakarta 943,
27 Feb 52)
Comment: Netherlands-Indonesian negotiations on New
Guinea the Union Statute have been temporarily post-
poned pending the formation of a new Indonesian Cabinet.
However, the cessation of the talks on so moderate a sug-
gestion as an informal mixed commission augurs well for
amicable relations when negotiations are resumed. The
proposal does not indicate that Indonesia has changed its
position regarding its claim to New Guinea but that, for the
present, Indonesia does not intend to press that claim to the
point of deadlock.
2. Communist Party asserts opposition to Darul Islam: The
Central Committee tee of the Indonesian Communist Party issued
a directive on 24 February calling upon Indonesians to fight
against the Darul Islam and "to oust the organization from
Islam." The directive stressed the need of the people's
cooperation with the "public servants and the army" in this
matter. (R FBIS 27 Feb 52) 25X1A
Comment: The Darul Islam is a militant Moslem organi-
zation which for several years has tried to found a theo-
cratic state in West Java. The organization has terrorized
large areas and has successfully resisted government efforts
to reduce its strength. Increasing public criticism of the
government's failure to deal effectively with the DI evoked
a statement from the Ministry of Information in January that
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the DI is illegal, and the the government would take all
possible measures to combat insecurity.
For six months there have been strong indications of
cooperation between Communist elements and some Darul Islam
members. The Communist Party, which lost considerable
prestige during the widespread Communist arrests of August
1951, undoubtedly now finds it expedient to repudiate any
real or suspected connections with the Darul Islam, and to
ally itself, publicly at least, with the forces of law and
order.
3. THAILAND/CHINA. Chinese Communist propaganda blasts ruar
T ai an : New ii ins News gency re ease o y
0o -t e Phibun regime in Thailand to task for alleged dis-
criminatory treatment of local Chinese, particularly in
regard to their "rights and interests" as landlords. It
concluded by stating that overseas Chinese returning to
China consider this measure a step in preparing to launch
military activities against China in collusion with Chinese
Nationalist forces. (U Hong Kong 2525, 27 Feb 52)
Comment: Chinese Communist solicitude for the welfare
of 'lan or s in this article contrasts violently with the
treatment accorded them in China. The Communists have also
indicated increased sensitivity towards the Nationalists in
northern Burma, who have been supplied through Thailand.
There have been a number of reports of impending military
action in the area.
4. CHINA, Sino-Czech trade negotiations continue: Chinese and
zee trade o icia s nego is ing in rague ave not yet
reached agreement on a trade pact for 1952. The Chinese
have reportedly rejected many items which the Czechs pro-
pose to export. The projected value of trade between the
two countries is said to be 250 million rubles in each
direction (over 60 million dollars at the official rate of
25X1A exchange). (S.
Comment: The failureto reach agreement thus far is not
regarded as serious; the Sino-Czech agreement covering 1951
trade was not signed until the middle of last year.
The 250 million ruble figure presumably represents the
projected annual total for 1952. This figure does not provide
29 Feb 52
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for a sharp increase over the estimated level of Sino-Czech
trade in 1951. By comparison, the Sino-Czech trade agree-
ment for 1951 provided for a four-fold increase over that
of the previous year.
5. China purchases more Pakistan cotton0 RReepoorrtsoffrotton
KaraER-111" sta e t a ina pure ases
in early February, and that two Pakistani-flag vessels, the
Ocean Enterprise and Safina-E-Arab, loaded 39,000 bales for
China during the past week. (R Karachi Joint Weeka 7
16084OZ, Feb 52 )
Comment- This large Chinese purchase of Pakistan cotton
was unexpected, since the 1951 crop was believedvample or
China's needs in 1952. The Communists may, howr, be
building a comfortable stockpile for the textile industry,
which had to close for six weeks in mid-1951 because of a
cotton shortage.
6. Chinese Communist Marine Corps adding service units and
d
Taipe-. ,
landing equipment- The American Nava _t ac e,
war a severe. recent reports regarding the Chinese Communist
Marine Corps. One report states that each of the four
marine divisions will have its own service regiment. These
regiments are currently undergoing training at Yingkow,
Dairen, Tsingtao and Yulin where their divisions are located.
The training reportedly will be completed by May.
Another report states that three Chinese Communist marine
divisions will have one tank battalion each. Thirty-two dly tanks received in late January from the Soviet000eportedly 52)
will-be used in this way. (S Alusna Taipei, 1, 26
Comment- The Chinese Communists reportedly started
training marines a year ago, later organizing them into
divisions.
7. KOREA.- Rhee's battle with South Korean National Assembly
continues- resi ent R ee s answer to a ques ionnalre su -
mit e,?o him by the National Assembly concerning the lega-
lity of the recall is "understood" by the US Army Attache to
be "even more vigorous" than Rhee's previous utterances on
the subject. The reply is not expected to be forwarded for
two or three days because the President's more moderate
advisers are urgingthat it be toned down. (S Pusan Weeka 9,
27 Feb 52
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Comment; A minority group in the legislature has been
urging la Rhee be impeacheda If his answer is unsatis-
factory, more moderate elements may not be able to prevent
the initiation of impeachment proceedings.
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SECTION 3 (WESTERN)
e
2. FRANCE. French communist admits "peace moveementtis instrument
o c ass s rugg e a speec .11,1e y with
gana.zer ecoeu upon his :returaaf~oma vDSiEmbassYs n~Pa~?is
Thorez is considered significant by the
because it "flatly admitted" that the revolutionary role of the
Communist "peace movement" is an important instrument in pursuing
the class struggle. Without actually changing the party line,
of n,
which says that the movement is open to all "partisans Lecoeur's spt:ech emphasized that the movement cannot exist "out-
side or against the Communist Party" and that it is the "most
direct means" of hastening the overthrow of capitalism and
achieving the goals of socialism. QC Paris 5207, 26 Feb 52)
mix Q Criticism within the party ranks, especially
among the militant elements who object tobthepresentapolicyis
of dealing with the middle classes, probably n
reassurance of the party's primary concern with the class
struggle o This mollification of dissident to-
gether with Duclos9 recent appeal for united mass
randce
the visit this week of CGT boss Fracho'.a 'to Moscow, may pafan
renewed emphasis on direct action, perhaps by intensifi
of the anti-productivity campaign.
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3< AUSTRIA. Austrians "optimistic" on Soviet negotiations on USIA:
The -embassy n aenna has receive ~nrorma ion suggesting
the Soviet High Commissioner may have received instructions to
settle the question of Soviet Enterprises in Austria (USIA) in
direct discussions with the Austrian Government, Foreign Minis-
ter Gruber confirmed that the Austrian. President has received
some indications from Soviet officials of willingness to ne-
gotiate and that a recent statement of the Soviet High Commis-
sioner might be interpreted as an overture in this direction.
Gruber said that Austria appreciates the necessity of extreme
caution in this matter, but pointed out that the government
has already taken preparatory action in official statements to
support the Western position that German assets should be re-
linquished by the USSR without compensation. (S Vienna 2777,
27 Feb 52)
Comment: Austrian officials may be confusing the possible
willingness of Soviet officials to discuss aspects of USIA op-
erations with the most unlikely possibility of Soviet. desire
to discuss the question of German assets as a whole. A recent
Austrian communique hinting that Austria did not accept pro-
visions in the.old draft treaty for Austrian compensation for
German assets held or claimed by the Soviet Union, was vigor-
ously denounced in a, Soviet broadcast in Vienna. The broadcast
suggests that the Russians, who regard their claims to compen-
sation as secure, are not likely to agree to abandon such claims
in negotiations with either Austria or the West.
4e BELGIUM-NETHERLANDS. Benelux dissatisfied with German financial
n eir mee ng
European a ens: ommunityo 711,
con ri u ion o he
with the United a es, British and renc .reign Ministers at
Lisbon on 26 February, the Belgian and Dutch representatives
stressed the importance they attach to the principle that the Ger-
man financial arrangements for defense should not result in addi-
tional burdens on other Defense Community'countriesa The Dutch
Fgreign Minister emphasized the importance of using the German
contribution to build up German military strength. (S Lisbon SECTO
96, 27 Feb 52)
Comment: When the Defense Community comes into effect, Worst
Germanys contribution to Community forces, which is a part of
its over-all defense contribution, will be about 812 million dol-
lars for the first year of the plan's operation. Both the US
High Commissioner and the Germans tentatively estimate that the
cost of building up German contingents will exceed this figures
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are concerned over the possible loss
The Benelux countries assistance if the United States
to them of American military
deficit in the
should attempt to meet the German Defense
Community.
concerning East-
it
y
blic
over pu ice ae express d
6. NORWAY. 'o~?on n Office annoyed e orwegian ore gffiiven an "agreement"
con ro s:
it
y g
ublic
West rade
consi era a annoyance over the p
to prevent transshipment of strategic materials$ and has re-
at Oslo to convey its views to the De-
partment enof State. Embassy particular, the Foreign office dislikes
n e S St ? regarding international controls
any y fyunecessary pub lli city 26 Feb 52)
on East-West trade. (C Oslo 746, trade
feels that publicity concerning
Comment: Norway
coni unnecessarily taunts the USSR and can result in re-
taliation by y Orbit t nations. It also the iNorwegian
ression that the g
i
t the mp
public
c may ge in to foreign pressure.
:
be diverted to Orbit
er shipments may been
Proposed copper
7. XICO , a onso ~.a a
exxcan copper wire pro user would have no objection to the
S Embassy
informed that the U
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shipment of 75 tons of copper wire to Oscar Huber and Coo of
Zurich, Provided Huber submits a, copy of the Swiss import li-
cense covering the transaction. The Embassy advises 9 however,
that the possibility of diversion prior to importation be in-
vestigated, since Mexico shows little interest in controlling
the ultimate destinations of base metals. (S Mexico City
Desp. 1719, 18 Jan 52)
Comment: Oscar Huber visice.d, Mexico xico last ctoberdand
was o ere 00 to 300 tons of
Mexico, an important Mexican fabricator, if he could furnish
a "west certificateo-" Huber
Banco del Atlantic., O. A.,
transactions., and established friendly relations in with La
copper wire
Consolidada,, which indicated that it would pay
for industrial imported Other _
trade trans-
Huber
actions. suggests that
actions. However, should Switzerland grant him an import
license, the copper's diversion to the O?bit would be less
probable.
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pFF'ICIALS ONLY
US
Top SECRET
SECURITY INFORMATION
29 February 1952
CIA Noa. 49550
Copy No. 46
TOP SECRET SUPPLEMENT
TO THE DAILY DIGEST
(including S/S Cables)
Not for dissemination outside O/CI and 0/NE-
office of current Intelligence
CENTRAL INTELLIGENCE AGENCY
prepared primarily
of significant reports has been Intelligence. It does
This summary in CIA Curre
not the represent internal a use of complete Office ofe of all cu rent reports the
for lete coverag Comments represent
or I. the office of Cur Ofience. Current Intelligence. Of the immediate view
Top SECRET
SECURITY INFTION
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SECTION 2 (EASTERN)
1. EGYPT, King reportedly dissatisi'i.ed with Prime Minister All
~- is dis-
25X1X Maher' ng Faroukg
satisfied with the lack of progress being made toward a so-
lution of the Anglo-Egyptiandispute. As a-result, Prime
Minister All Maher may be forced to resign unless he is pre-
paredtto take more positive action against the influential
Wafd Party .
25X1X has stated that
Farouk is determined that those responsible for the 26
January riots be punished, that there be a showdown with
the Wafd, that Parliament be dissolved, and that a reason-
able agreement with Great Britain be accomplished. (TS
Cairo 1436, 27 Feb 52)
Comment. King Farouk is reportedly anxious to seize
the present opportunity to weaken the Wafd ? s political
power. All Maher, in turn;, is said to oppose acting too
quickly against the Wafd because of the strength of this
majority party.
Current indications are that if an Anglo-Egyptian
settlement continues to be delayed, the King may install
a new government -- possibly headed by former Wa.fdist
leader Hilali in order to achieve more rigorous measures
against the Wafd as well as to bring about the dissolution
of Parliament
2. JAPAN. Allied Council to terminate with end of Occupation:
The partriien.t ?f Staffs hays concurr c in a proposal of the
United States Political Adviser in Tokyo whereby, when the
peace treaty comes into force, he would address a letter
to the members of the Allied Council of Japan stating that
the ACJ functions have terminaed, The Political Adviser
believes it essential that the Russians derive no rights
to remain in Japan during the post?trea.ty period. by au-
thority of their ACJ membership. (C S/S to Tokyo 2325,
27 Feb 52)'
Comment o There are some i,i. U~ications that the Soviet
Union may attempt to remain iii Japan by converting the
office of the Soviet member of the ACJ into a trade mission.
TOP SECRET
25X1X
29 Feb 52
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 TOP SECRET
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