CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001000010001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 22
• Document Creation Date: December 12, 2016
• Document Release Date: June 10, 2002
• Sequence Number: 1
• Publication Date: May 13, 1952
• Content Type: REPORT

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13 May 19 52
OCI No. 5179
Copy No,
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
266
This digest of significant reports has been prepared primarily
for the internal use of the Central Intelligence Agency. It does
not represent a complete coverage of all current reports re-
ceived. Comments represent the immediate views of the Office
of Current Intelligence.
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITER STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
1. Improved British-Yugoslav military cooperation reported:
The British Ambassador in Belgrade states that while r s
Yugoslav political relations have deteriorated during the
past three months, Yugoslav military authorities have been
more cooperative than formerly. He indicates that Yugoslavia
wants to invite Britain's Chief of Staff Sir William Slim to
visit Yugoslavia this summer.
Comment: Since Britain maintains nothing more than a
normal mm l ary mission in Yugoslavia, the British Ambassador
may have been referring simply to closer working relation-
ships between military attaches.
2. Soviet Union provides ten planes for Iranian locust
campaign: One Soviet transport plane and nine biplanes
probably all from the air base at Ashkhabad arrived in Meshed
near the USSR border on 11 May for the locust dusting
campaign. Twenty-five to thirty Soviet officers and men ac-
companied the planes, which are expected to operate in the
vicinity of Birjand near the Afghan border for about one
month.
Comment: The USSR provided nine planes in May 1951 for
anti?ocusToperations in Northeastern Iran. This year, it
is apparently again concerned lest the plague spread north
into the Soviet Union. The propaganda benefit of such a
"humanitarian" effort is undoubtedly another Soviet considera-
tion.
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EASTERN EUROPE
3. Bulgarian arrest of Yugoslav Embassy attache protested:
The Yugoslav massy in Sofia a ppro es a ago ns a arrest
.on May Day of a Yugoslav Embassy attache by members of the
Bulgarian State Security. Allegedly, the arrest was made
despite the fact that the attache had established his identity
by producing his diplomatic credentials. According to the
Yugoslav note, the Bulgarian Government "is endeavoring with
such actions to provoke incidents and create an atmosphere
in which the work of Yugoslav diplomatic representatives in
Sofia will be made impossible." 25X1
Comment: No further information is available concerning
the repo- arrest. Although Bulgarian propaganda attacks
against Yugoslavia have continued on a routine basis and
various notes of protest have been exchanged, relations be-
tween the two countries have shown no evidence of being more
than normally strained and unfriendly during the past few
months.
4. Cominform journal expresses concern over Bulgarian
polit cap s saat on: The- omin orm has admitted officially
a e u gar an Communist Party has been penetrated by
",avowed enemies" of the regime, some of whom have managed to
work their way into "responsible posts." According to an
article published in the 9 May issue of the Cominform journal,
1,600 special purge commissions were established last year
to "verify" the various organs and membership echelons of
Bulgarian communism, It is now admitted that 17,466 full
and probationary members have been expelled. Despite this
extensive purge, the article states that the task of
ascertaining how Bulgarian communi so successfully in-
filtrated "remains to be sobved.1' 7 25X1
Comment: The figure 17,466 apparently refers only to
Party during the past year. In June 1950, Premier Chervenkov
stated that 92,000 members had been purged from the party
during the preceding eighteen months alone.
Although there have been many rumors concerning a schism
within the Communist Party of Bulgaria, there has been no
firm evidence of serious unrest within the higher echelons
since June 1951. The recent purges are probably a continua-
tion of those instituted earlier for the purpose of weeding
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unreliable elements from the inflated postwar membership of
the party which, by the end of 1946, had reached 490,000.
5. Monetary reform decreed in Bulgaria: The Bulgarian
Government has decreed a monetary re orm pegging the lev to
the Soviet ruble at the rate of 1.7 to one. Between 12 and
15 May all old currency must be exchanged for new notes at
rates ranging from 25 - 1 to 200 - 1.
According to the decree, all goods formerly sold on
ration coupons will henceforth be available without restriction
at pegged and uniform State retail prices. Basic food and
consumer goods prices will be lowered, and the salaries of
workers and employees will be somewhat increased.
Comment: As in the case of Rumania, which underwent a
similar currency reform in January, the exchange of old cur-
rency at the announced rates will reduce consumer purchasing
power and virtually wipe out private savings, particularly
among those peasants not associated with cooperatives and
among entrepreneurs in retail trade.
Although prices have been reduced, workers' real wages
will suffer, since in many cases the reductions apply to con-
sumer goods which are currently short in supply or virtually
unobtainable.
6. MIG-l5's featured at Czech Liberation Day military show
in Prague: Forty-five s appeared for the first time
in the y past at the seventh Liberation Day military show
in Prague on 9 May. This number exceeds the best previous
estimate for jet fighters in Czechoslovakia.
The appearance of ground units in the parade was not so
impressive as last year and included a much more limited dis-
play of equipment. From the standpoint of equipment and
morale the fighting capabilities of the Czech army do not
appear to have improved substantially in the past year.
Comment: This is the first year that jet fighters have
appeared-fin -the Liberation Day show. They replaced the
Me-109's which were featured in previous years. The US Air
Force had previously accepted only 40 MIG?15's in the Czech
Air Force and 100 in the entire East European Satellite bloc.
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Last year 16,000 foot troops made an excellent ap-
pearance, as did the motorized infantry units. The reduction
in equipment appearing in the Prague display may be explained
partly by the fact that eight other major Czech cities held
Liberation Day celebrations this year for the first time.
7. Czech President appears at Liberation Day military
parade: President Gottwald appeared at e Liberation Day
military parade in Prague looking very infirm and ten years
older than he did a year ago. He required assistance getting
into and out of the car and mounting the steps to the tribunal.
His drawn and haggard appearance suggested continued poor
health or convalescence after a long illness.
Gottwald took no active part in the ceremony. The major
speech and the inspection of the troops was made by Minister
of National Defense Alexej Cepicka. 25X1
Comment: This is Gottwald's first public appearance
since ids State visit to East Germany earlier in March. Prior
to that time he had not been active in governmental affairs
since before the first of the year. Although Vice Minister of
Foreign Affairs Gertruda Sekaninova assured the American
Ambassador on 28 April that Gottwald would be well enough to
take part in both the May Day celebration and the Liberation
Day military show, he did not appear at May Day or at the
festivities and speech-making the night before Liberation Day.
8. Hungarian youth organization campaigns against pacifism:
The youth organization, DISZ, exhorted its members on 7 May
to read Communist Party leader Rakosi's speeches on national
defense and patriotism. The article asserted that imperialist
rearmament and Yugoslav frontier violations necessitated a
strong Hungarian army, and it denounced clerical opposition to
defense measures. It asserted that mental and physical prepara-
tion defense was the most important task of DISZ. 25X1
Comment: The article doubtless reflects the present call-
up of pa~f the class of 1932, as well as expansion of the
paramilitary organizations. DISZ's recent campaign against
pacifism, highlighted by a previous article calling pacifism
akin to high treason, suggests that there has been resistance
to the expansion of the Hungarian army.
DISZ and at least two of the paramilitary organizations
which it supervises have been in process of reorganization on
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Soviet lines since February. A Soviet Komsomol delegation
just left for Russia after a six-weeks' stay in Hungary, re-
portedly in connection with the shakeup.
9. Hungarian state farm agreement with workers stresses in-
y
creased ro uc on: The first collective agreement signed
a Hungarian state farm with its agricultural workers was
announced on 4 May. The agreement reportedly emphasized
work competition, increased production and reduced costs,
with an incidental reference to welfare and work conditions.
Wages were-not mentioned. The signing was believed to
presage similar agreements on all the state farms.
An editorial in the party organ Szabad Nep called on
all independent peasants and their wives and children to work
on state farms and tractor stations as their patriotic duty.
The US Legation at Budapest interprets this as indicating
inefficiency farms since they have a low acreage
per worker.
Comment: State farms allegedly cultivate twelve per-
cent of a Hungary?s arable land. Although little informa-
tion is available on their operation, last spring they under-
went scorching criticism by party and government for-in-
efficient methods and constant financial losses,
10. Polish Government takes additional steps to overcome
s
consumer short-ages: Du;ing the last few weeks--the Pol
Government has to en a number of additional steps in an effort
to lessen the effects of shortages of consumer goods.
On 2 May the Ministry of Internal Trade announced the
beginning of soap rationing on the same differential pattern
already established for meats and fats. A "recent resolution
of the Government Presidium" to provide for the fattening of
100,000 hogs in 1952 and 160,000 in 1953 in an industrial
fattening center was announced in the press on 5 May. By
this plan the government hopes to eliminate seasonal fluctua-
tions in urban meat supplies.
A decree of 24 April, made public on 5 May, introduced
compulsory milk deliveries for all farms having over one
hectare of arable land. All peasants without cows are ac-
corded a period of grace until the end of the year before
being required to deliver milk.
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An 8 May press report described the government's.plan
for the cultivation of fallow land through agreements between
the local authorities and individual peasants, "cultivation
teams," collectives, or state farms. Various concessions
and incentives, more extensive for the "cultivation teams" or
the other groups are offered.
Comment: The US Embassy in Warsaw reported a worsening
food s oFi rtage in Poland on 9 April, particularly of meats,
fats, soap, and sugar.
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ii. Refugees report on conditions in Communist China:
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left China in 1951. Most of 25X1
them reported that the Peiping regime
(1) is in firm control of the mainland,
(2) has succeeded in terrorizing the populace, and
(3) has been comparatively successful in the economic
sphere, but
(4) has lost its early popularity and
(5) has not improved the condition of the Chinese
farmer and has Perhaps made it worse.
25X10 Comment: Refugees interviewed by American officials in
have generally reported the same conclusions.
12. Nationalists allege 635,000 guerrillas active on mainland:
A Chinese Nationalist spo esman alleges that 635,000 anti-
Communist guerrillas are still active on the mainland, of whom
RS-000 are still in direct radio contact with Formosa. = 25X1
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Comment: American observers believe that a maximum of
300,000, an possibly fewer than 200,000 guerrillas have
escaped Peiping's continuing "bandit-suppression" campaigns.
Battle reported on offshore island: A battle started on
the Nationalist-held Ichiang Islands on '3 May, 25X1X
was not clear whether the action was due to a Communist attack
or a battle among the Nationalist troops. 7 25X1
sent to the islands but observed that it 25X1
Comment: These islands, which are part of the Tachen
group, opposite Chekiang Province, are held by only a.few
hundred Nationalist soldiers and guerrillas. If the Communists
have attacked this island, it is likely that they. will be
successful.
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Communist batteries fire on Nationalist-held islands:
Chinese communist s ore art ery on May bombarded Nation-
alist positions on the slands of a a and Hsiaotan about
eight miles from Amoy,
The barrage w s fired from t ree Positions in Amoy and lasted
for an hour.
Comment: Both of these islands have reportedly been used
as bases for Nationalist raids as recently as 29 January.
The information furnished is too sketchy to permit an
evaluation of Communist plans for these islands.
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15. Minor revolt in Kuomintang reported: Members of the CC
Clique n the Legislative Yuan have succeeded in passing a
resolution extending the members' term indefinitely, or until
another election can be held.. Recently Chiang Kai-shek pro-
posed a one-year extension of the legislators' terms; therefore,
angered by the CC resolution, he returned it to the Yuan as
unacceptable.
25X1X this action
by the Yuan represents "a minor revolt" o e ique against
Chiang, demonstrating that his qontrol of the clique is not as
25X1 Arreat as reviously believed. 25X1A
Comment: The CC Clique is a nationalistic and right-wing
group, whose leader, Chen Li-fu, has been absent from Formosa
for over a year. Chen has been one of Chiang's closest advisers
and strongest supporters since the late 1920's. As the interests
of this group and the Generalissimo's are so closely identified,
it is doubtful if this action shows any serious disturbance
within the Kuomintang.
In-1951 Chiang extended the terms of the legislators until
May 1952., on the grounds that the occupation of the mainland
by the Chinese Communists made it technically impossible to
hold constitutional elections.
16. French official sees "psychological shock" required in
Indochina: The new renc diplomatic counselor in Indochina
believes that a "psychological shock" is required to end the
"hopeless" military stalemate in Indochina. He personally
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suggests a joint French-British-American declaration of common
aims in Southeast Asia, namely, national independence, security,
and improved living conditions.
The counselor believes his government would be willing to
go "very far" to obtain a tripartite declaration of this nature.
He spoke of the desirability of a declaration "confirming"
France's desire to give greater autonomy to the Associated
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States.
Comment: Minister Resident Letourneau recently expressed
opposition to further political concessions to the Associated
States so long as military operations are in progress. When
the counselor was questioned as to the apparent conflict in
these views, he stated that the "need to revise the situation"
and the demands of French public opinion would "weigh more
heavily."
17. Vietnamese premiership proves profitable to incumbent:
According to the chief-French civil official in Nor Vietnam,
Premier Tran Van Huu has amassed a fortune of "several hundreds
of millions" of piasters and his tenure in office rests largely
on his ability to keep Bao Dai supplied with funds. A Viet-
namese official asserted that the French Commander in North
Vietnam commented publicly to Madame Huu on her "developing"
dis la of jewelry valued at several hundred thousand dollars.
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Comment: Irregular use of government funds probably
explains, at least in part, why the Vietnam Government did not
respond to the American Legation's repeated requests for a
published budget. Although some of Premier Huu's income comes
from rice holdingsin South Vietnam, another important Vietna-
mese official says that Huu's wealth is derived mainly from
his control of three or four million piasters a month of secret
government funds. This is in addition to his official salary.
Huu's tenacious control of the Vietnam Government was
established with French support one year ago, and so far he has
been able to resist their pressure for his removal.
18. Burmese seen prepared to send military mission to eastern
Europe.: The Burmese vernment is preparing to send 'a military
m ss-on" to Yugoslavia which will attempt to obtain military
equipment, according to a usually reliable source. The mission
would proceed to Czechoslovaks and other east European countries
if arrangements could.be made. 25X1
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Comment: In the past, Burma has approached India, Pakistan,
France, I ly, Sweden, Britain and the United States for arms.
The Burmese Defense Minister recently asked the American
Army Attache in Rangoon about the prospects of sending a mili-
tary mission to the United States. He indicated that if it
could be arranged, for political reasons, a similar mission
would have to be sent to a small nation--such as Yugoslavia.
He did not mention the possibility of its visiting any of the
Satellite countries,
19. Attacks on railways resumed by Burmese Communists: Burmese
Communists have resume eavy -attacks upon Burma's railways
after a six weeks lull. Bridges and tracks have been destroyed
and trains held up and robbed, one only six miles north of the
I
h
e
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important junction of Pegu on the Rangoon-Mandalay line.
American Embassy in Rangoon comments that the Communists'
relative inactivity before this flare-up may have been due to
t
r
nmen
.
efforts to make peace with the gove
Comment: While Burmese forces appear to be making some
progress in-their efforts to suppress the insurgents, this
report indicates that the recent victory reports emanating
from official sources are exaggerated.
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20. Communists delay American-sponsored irrigation project
in Burma: Shortly after the Burmese press announce plans
for a large irrigation project in the Mandalay-Pyinmana area of
central Burma to be supervised by an American firm, Burmese
Communists relieved the surveyors of their instruments and
ordered them to leave. The Burmese Government has refused to ,
permit Mutual Security Agency advisers to visit the area. ~~ 25X1
Comment: The Burmese Army has publicly claimed that it
was "moppingup"in this area after having trapped and "annihi-
lated" an entire Communist division and "nearly capturing" the
Communist leader, Than Tun.
21.
Opposition groups call for "unity" conference in Burma:
After meeting with most opposition leaders, Dr. a Maw, c of
of the Japanese-sponsored government during World War II,
issued a press statement on May Day calling upon the Burmese
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Government to meet with underground and aboveground Communist
leaders in the interest of promoting national unity. The
extreme leftists were not among the sigpatories, although two
conservative leaders who also refused to sign, declared that
Ba Maw's action was a Communist maneuver approved by the
Burma Workers and Peasants Party.
The American Embassy in Rangoon believes that the pro-
Communists deliberately refrained from-participation in this
development in order to obtain maximum support for the Burma
Communist Party's peace proposals. 25X1
Comment : Ba Maw's own party, the Mahabama, is essentially
conservative but has aligned itself with pro-Communists in
the so-called Triple Alliance.
There are no indications that the Burmese Government is
prepared to settle with any of the insurgents except on its
own terms.
22. Indonesian authorities arrest North Sumatra May Day
committee members: The first and second secretaries o he
Medan May Day Committee have been arrested and the committee
resolutions confiscated. A member of the East Sumatra May Da
Committee was also arrested after making a speech. 25X1
Comment: The extent of May Day activity in North Sumatra
has no een reported. In Java demonstrations were less ex-
tensive and inflammatory than last year.
Top security officials in North Sumatra are particularly
vigilant and anti-Communist. The August 1951 security sweep
was noticeably more effective in North Sumatra than elsewhere
in Indonesia.
NEAR EAST - AFRICA
23. Field Marshal Montgomery's speech on reduced military
spending stirs speculation In Athens: Ambassador Peurifoy
reports that Field Marshal on gomery's recent public suggestion
that Greek military expenditures be reduced has aroused specu-
lation in Athens as to whether the speech was inspired by the
United Stites or was made on the Marshal's own initiative.
Since maintenance of the size and strength of the Greek armed
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forces is a vital consideration of the American post-Korean.
policy, Peurifoy asked Washington if the Marshal's suggestion
is in accord with present United States policy.
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Comment: Montgomery pointed out that Greece could not go
on indefinitely spending nearly 50 percent of its budget for
defense, and he urged the government to strike a proper- balance.
between economic and military expenditures. The Greeks inter-
preted his speech, however, as a plea for reducing the size of
their armed forces. The government his already tried to ex-
ploit itas an argument for more American aid and as a weapon
against opposition leader Papagos,who shares the United States'
view that the army should be kept at its present level.
Tunisian nationalist leader to be held incommunicado
indefinitely: Habib Bourghiba, leader of the Tunisian nation-
alist eo- estour party, is to be held incommunicado indefinite-
ly, according to the Residency General. Other political
detainees, however, are being released; a first group of 38 were
given their liberty on 9 May.
Members of the Chenik cabinet, freed on 6 May, have
promised not to engage in politics.
Comment: Since Bourghiba has long been the symbol of
Tunis aspirations, his prolonged detention will keep
tension at a high. pitch.
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WESTERN EUROPE
25. Extremist parties in Trieste hold surprisingly large
election rallies: The most striking feature of the first week
of -e electoral campaign in Trieste has been the large at-
tendance at Cominform Communist and neo-fascist political ral-
lies in contrast to the comparatively poor attendance at the
meetings of the more moderate parties. A rally of the neo-
fascist Italian Social Movement (MSI) on 7 May attracted over
25,000 spectators and followers as opposed to a. previous high
of 17,000 reached during the 1949 campaign. A Christian Demo-
cratic meeting in the same place two hours earlier drew only
2,500 people.
Followers of the pro-Cominformiparty in Trieste have
dispersed campaign meetings sponsored by the Christian Democrats
and the Socialist Party of Venezia Giulia. No attempts have
been made to disturb pro-Titoist orMSI meetings. The Comin-
formists believe that all votes for the MSI will weaken the
Christian Democrats who dominate the local government in Trieste.
Comment: An upsurge of Italian nationalism in Trieste has
ntothe hands of the extrem.st parties since they are
played i `
best able to exploit rising emotions both for and against the
return of. Trieste to Italy.
26. "Obergebra incident" seen as basis for East German bourgeois
party purge: Berlin correspondent of the Frankfurter Rundschau
reported 8 May that the Socialist Unity Party E has
welcomed the 30 April manslaughter of a. Thuringian "functionary"
at Obergebra by two members of the Christian Democratic Union
(CDU) as an excuse for implementing long-planned measures for
bringing East German bourgeois parties completely under SED
control. A purge of these parties and of the entire government
apparatus has allegedly been decided upon, with the calling
of new general elections under consideration.
The Weimar CDU executive is said to have been greatly
alarmed by the episode, and on 7 May the party's political com-
mittee reportedly called the "Obergebra incident" a warning
that anti-democratic forces, that is, those responsible for the
manslaughter, are prepared to engage in open terrorism. The
committee is said to have advised all CDU members in "this
serious time" to take all suitable measures against saboteurs,
diverters, and agents.
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27.
Comment: This report is without confirmation. While such
an episode could provide the excuse for a wholesale purge and
new elections, the necessary propaganda build-up for such,
drastic measures has not yet been noted. On the contrary,
recent events have pointed to a desire on the part of East
Zone officials ostensibly to broaden the basis of the govern-
ment. The open abandonment of the facade of "democracy" would
be tantamount to admission that there are no prospects for German
unification.
East German Christian Democrats seen as vehicle for
mobilizing rman opposition to the West: a meeting last
January, East one Christian Democratic (CDU) leaders were
reportedly directed by Soviet Political Adviser Semenov to
establish connections with all West German Christian circles as
a step toward frustrating a German contribution to Western re-
armament. Asserting that the Socialist Unity Party (SED) was
an improper instrument for such purposes, Semenov is said to
have assured CDU leaders of adequate funds and of a free hand
in winning over the Christian ("Third") Front.
Speaking for the East Zone CDU, General Secretary Goetting
told the assembled group that the times were favorable for such
an operation; he reportedly stated that at least 80 percent of
the professional representatives of the Evangelical Church are
either opposed to Western policies or can be converted to such
opposition.
Comment: This report, if true, is a further indication
that the Russians consider German Protestantism particularly
vulnerable to Soviet appeals. It also suggests the special
importance which the Russians attach to the East Zone CDU as
a medium for subverting the Bonn government.
Adenauer reports progress in reviewing contractual agree-
ment: ance or Adenauer Is convinced that he has made real
progress in satisfying objections of members of the coalition
parties to the Allied-German contractual agreement. He believes
that the criticism which was directed at all articles of the
general convention can be overcome by a. few changes in presen-
tation which will not alter the substance.
Regarding the annexes to the general convention, however,
the majority of cabinet and party leaders have expressed very
strong opposition to the article on decartelization and de-
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concentrations Adena.uer feels that unless substantial modifi-
cations in this article are accepted by the Allies, the
contractual agreement itself may be jeopardized.
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Comment: The right-wing coalition parties may ask that
the decartelization and deconcentration provisions be expunged
from the contractual agreement and included in a transition
agreement which could be repealed when the Schuman Plan becomes
operative.
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West German association increases East-West trade pressures:
OSTAG, the new trade association create in Wes-t- Germany, is
continuing its efforts to promote trade deals discussed at the
Moscow Economic Conference. The organization, which is composed
mostly of "known Red sympathizers of East-West trade agents,"
is seeking a broader base to include reputable firms. It is
holding weekly meetings in Berlin to Irect contact with
Soviet and Satellite trading agents: 25X1
Comment: Creation of this group, first reported on 1 May,
appears designed to exploit the resentment of West German
businessmen over Allied restrictions on East-West trade, and as an
attempt to reduce the West German Government's willingness to
participate in such restrictions.
30. Nenni hints at diver encies between Italian Socialist and
Commun st Part es: Despite the -unity of action" pact between
the Ito an Communist and Socialist Parties, the latter will
not necessarily object to future ministerial collaboration with
the Christian Democrats, Socialist leader,Nenni revealed in an
interview at the Foreign Press Club in Rome. Although the
Socialists had opposed Italian membership in NATO, they will
"take account of the country's judgment" in the 1953 parlia-
mentary elections. Nenni also hinted that his party might run
separately from the Communists in 1953, provided the parlia-
mentary electoral law is based on proportional representation.
The American Embassy comments that Nenni's remarks, instead
of implying a break with the Communists, seem more likely to be
calculated to break the isolation of the leftist parties and
prevent any change in the electoral law for 1953 that would
favor the Christian Democrats. Nenni may also be trying to
appear democratic as a tactical maneuver in the present municipal
election cam aign~in Rome. 25X1
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Comment: There is no evidence to suggest that Nenni will
break he Communists prior to the municipal elections on
25 May. However, the possibility of a future rupture should
not be excluded, in view of.recent ambiguous statements by
Nennio
The American Political Adviser in Trieste reports from
engineer a break between Nenni and the Communists in preparation
for the 1953 parliamentary elections.
that Premier de Gasperi is trying to
Catholic Action paper stresses Vatican support for
Chris an Democrats in Italian elections: The Vat can semi-
official sserva ore Romano, has announced that Catholics have
an "absolu a duty" to vote for the Christian Democratic electoral
list in the south Italian elections. The paper re-emphasized
Its disavowal of the so-called "Catholic" slate which is linked
with the neomfascists in Rome, and sought to convince nationalist
or rightist-inclined voters that a ballot for the extreme right
would in effect help the Communists.
The fact that the Catholic Action press put great emphasis
on Osservatore's remarks is regarded by the US Embassy in Rome
as encouraging, in view of the long-standing belief of Catholic
Action President Gedda that the anti-Communist coalition sho d
include rightist elements.
Comment: Gedda has long tried to achieve an alliance
between t e Christian Democrats and the neo-fascists; and
although he reportedly supports De Gaspers in these local
elections, he may well desert the Premier before the 1952
national elections if the Christian Democrats make a poor showing
now e
The US Embassy has predicted that the Christian Democratic
bloc will poll a plurality of some 35,000 to 50,000 votes in
the Rome municipal election.
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Italy's trade deficit shows marked increase: After a
steady gain in gold and dollar reserves from last June to February,
resulting in a gain of 140 million dollars, Italy's reserves
dropped by 14 million dollars in March, Preliminary statistics
indicate a growing trade deficit; the deficit for the first
quarter of 1952 totalled 209 million dollars, in contrast to
-a. 409-million-dollar trade deficit for all of 19510
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The significant trade deficit increases result in part
from the recent. restrictions imposed hY the United States,
France, and the sterling area. This trend has also been
strengthened by Italy's liberalization measures designed to
reduce its large EPU surplus: 25X1
Comment: Italian financial experts have anticipated a
large Fn -crease in the trade deficit and a decline in dollar
reserves.. They believe that such a trend will continue at least
until the middle of the year. When Italy's surplus in the EPU
is lowered to a desirable level, the trend toward a larger trade
deficit can be arrested by reimposing the suspended trade
restrictions.
33.
Argentina, attempts to increase influence with Colombian
labor: Argentine representatives in Colombia ave'intens ied
their campaign to draw the rank and file of labor into the new
Colombian General Confederation of Labor (CGTC) based on
Peronista concepts and financed by the Argentine Governments
They reportedly have succeeded in converting some members of
the Union of Colombian Workers (UTC)?;a.nd the Confederation of
Colombian Workers CTC) Colombia's two national labor feder-
ations.
Comment: The UTC", Colombials most powerful labor organi-
zation Dominated by the Catholic Church and receives
government support, but is accused of doing very little for
labor. The Liberal CTC is weak and infiltrated with leftist
,elements. Between these two is a fertile field for the
Argentine movement. This is begin ing"to enjoy a fair degree
of success and, according to the US Embassy in Bogota, may
even result in disruption of the faltering CTC.
British Guiana People's Progressive Party becomes more
openly Communist-oriented: e propagan a and activities of
the People's ogress ve Party (PPP) have acquired several
new aspects since party-leader Cheddi Jagan returned from
Europe last November. Jagan, a dentist, announced on his
return that he would now spend half of his time on political
activities for the party and that he would seek help from
several Communist-oriented groups outside the colony. He
also announced showings of films on life in the USSR and made
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speeches extolling the freedom and prosperity found in Eastern
Europe. Simultaneously, Jagan set up the Colony's first "pro-
peace" committee which at its inaugural meeting launched the
party's first open attack on the clergy.
The PPP's influence on British Guiana: affairs is limited
by the colonial status of the country. It is, however, the
largest political group there and controls or influences impor-
tant labor groups including some of the organized segments of
the bauxite workers.
British Guiana police report that the increased Communist
orientation of the PPP has caused a serious internal split, but
they feel that the split is on tactical rather than ideological
grounds. The party has continually denied having revolutionary
or Communist aims, apparently in the fear that with such a label
it would lose much of.its followine
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13 May 1952
CIA No. 49647
Copy No. 6
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This digest of significant reports has been prepared primarily
for the internal use of the Office of Current Intelligence. It does
not represent a complete coverage of all current reports in CIA
or in the Office of Current Intelligence. Comments represent the
immediate views of the Office of Current Intelligence.
TOP SE CR E T
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED'STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
NEAR EAST - AFRICA
1. Turkey denies planning military talks with Yugoslavia:
The Turkish Foreign Minister In a May conversation with
Ambassador McGhee expressed "great satisfaction" with the
results of the recent Greek-Turkish talks in Athens. He
said that a joint Greek-Turkish approach to Yugoslavia had
been the main topic discussed, but emphasized that military
talks with Yugoslavia had not been undertaken and would be
considered only discussion with the United States.
Comment: A Greek Foreign Office official informed the
American m assador in Athens on 6 May that the Turks had
agreed to join Greece in approaching Yugoslavia on military
defense planning. The Foreign Minister's statements, however,
are in line. with his previous assertion that he intended to
limit his forthcoming talks in Belgrade to economic and cul-
tural matters.
2. France may delay ratification of EDC treaty: The French
Governmen oes not plan to submit the European Defense Com-
munity treaty to the National Assembly before October, accord-
ing to several high French officials. The American Embassy in
Paris thinks that Premier'/Pinay's relative indifference toward
foreign affairs makes it questionable that he would p6rsonall
make an all-out fight for ratification.
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