CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001000160001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 12, 2016
• Document Release Date: February 7, 2002
• Sequence Number: 1
• Publication Date: June 4, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
4 Tune 1952
OCI No. 5194
Copy No.
267
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 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.
*Army, DIA and State Dept
reviews completed*
SECRET
SECURITY INFORMATION
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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,
1. Czechoslovakia overhauls government personnel policy:
A new supra ministerial organization is being formed in
Czechoslovakia to handle political education of all govern-
25X1C ment personnel stationed abroad, 25X1C
The
Ministry outlined a new personnel program for its repre-
sentatives abroad under which commercial attaches will be
responsible for fulfillment by their staffs of new planned
work programs in linguistics, economics, and area study.
The Ministry also plans to begin "employee tours" to 25X1A
Czechoslovakia "possibly twice a yearn"
25X1A
Comment: This is apparently an all-out attack on
the perennial dilemma of the Czech foreign service, in
which the political unreliables are professionally competent
and the political reliables are hacks, Political relia-
bility is the touchstone for a Czech foreign assignment
and many posts on all levels are filled at present with
"workers' cadre" graduated from short courses in foreign
affairs, So far this year seven Czechs, including three
commercial attaches and a Legation Charge, have defected.
2. Gheorghiu-Dej appointed Rumanian Premier: Gheorghe
Gheorghiu?Dej, Secretary Genera o t e Rumanian Workers'
Party, has been appointed Premier of the Rumanian People's
Republic, The former Premier, Petru Groza, has been ap-
pointed President of the Presidium of the National Assembly,
replacing Constantin Parhono Parhon was relieved of his
duties "upon his own request." (R FBIS Paris, 3 Jun 52)
Comment: Gheorghiu?Dej has for some time been con-
siders the real power in Rumania. His promotion. to the
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premiership at this time, following a week of unprece-
dented party shifts and demotions, ind .catesthat his leader-
ship remains unaffected, and that perhaps it has even been
strengthened.
Although Premier since 1945, Petru Groza has exercised
no real authority in Rumania. Never a Communist, Groza
has served only as a figurehead, giving the Communist
regime some semblance of legitimacy and continuity. Pre-
sumably, he will continue to fulfill this function as
President of the Presidium.
3, Further liberalization of Yugoslav economic policies
repor e: American Embassy o is als in Be grade have
been informed that recent discussions among Yugoslav Com-
munist leaders have resulted in a victory for the faction
favoring economic "liberalization." Details are not yet
available, and the Embassy is not able to confirm the re-
port.
The Embassy also has received reports that the govern-
ment would soon permit farmers to withdraw from collectives
in certain specified areas. (C Belgrade 1516, 2 Jun 52)
Comment: The controversy between the "realists,"
those w o avor the subordination of traditional Marxist
dogma to the stringent demands of economic exigency, and
the "doctrinaires:" who oppose decentralization of power,
capitalistic tendencies, and closer relation with the West,
is a continuing phenomenon in the Yugoslav scene,
The abandonment of uneconomic collectives in certain
marginal areas was hinted last fall during a general
review of the collectivization program and has probably
been implemented on a very limited scale.
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25X6
Elements of Chinese Communist 40th Army observed in front
lines: The presence ? e 1amen e ? f he 40Th CCV rmy in the th
Army area is revealed by documents taken from the body of a
Chinese soldier which identified him as, belonging to. the 355th
Regiments 119th Division, 40th Army.
.
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Far East Command comments that, although there
have been reports that the 40th Army was destined
for front line commitment, this is the first con-
crete indication that this Army is on, or has assumed, a section
of the front. It notes, however, that despite the "strong
indications" that elements of the 119th Division are in the
sector previously occupied by the 190th Division, there is
insufficient evidence to warrant a change from currently
accepted dispositions of the 40th and 64th Armies. (S FECOM
Telecon Datt 5862, 3 Jun 52)
7, Chinese battalions reportedly withdraw from Indochina:
25X1A
8. Burmese Government limits visit of delegation to
Peiping:
The Burmese vernmen as placed a r - ay mit on the
25X1A
passports of four pro-Communist Burmans who recently departed
to attend a "peace" conference in Peiping, and has categori-
cally refused an extension.
The American Embassy in Rangoon comments that this~devel-
opment is a further indication of the Burmese Government's
increasingly severe treatment of aboveground Communists.
(S Rangoon 1155, 2 Jun 52)
Comment: This delegation is at least the sixth Burmese
mission, icial and unofficial, to visit China or the USSR
since October. This is the first instance in which the govern-
ment has sought to restrict or control the activities of such
a mission.
9. Sweeping government victories reported in Burma: According
to the urmese press an o c a statements, the Communists,
Karens and Chinese Nationalists have all sustained defeats at
the hands of government forces. More than 100 Chinese are
claimed to have been captured, and the low state of Communist,
and Karen morale has resulted in defections and surrenders,
25X1 C
in the vicinity of Lao Kay either have withdrawn or are now
doing so. The incursion of these troops was intended to
The three Chi nese tU ons w c recent y enters Indochina
boost the morale of a Viet Minh regiment in that area and to
accustom semi-trained Chinese troops to field operations along
the Yunnan border without active participation in the Indo-
china conflict,
2 Jun 52)
(S Rangoon 1155, 25X1C
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the British Services Mission and Burmese military authorities
took a turn for the worse as the result of a 24 May conference
between the new mission chief and Burmese Commander in Chief
Ne Wine The latter indicated that he considered the mission
to be practically useless and, in answer to a direct question,
stated that he "couldn't care less" whether or not the mission
remained in Burma because he could obtain foreign aid from
other sources. (S/US Officials Only, Rangoon 1155,.2 Jun 52)
Comment: This report indicates that the high hopes that
the new mission chief would smooth the strained relations
between the Burmese and the mission were unfounded. The
Burmese apparently have tolerated the mission's presence beyond
treaty obligations largely as a guarantee for obtaining British
military supplies.
American massy in Rangoon reports that relations etween
Burmese antipathy for British mission continues:
The
While Ne Win did not specify where he expected to develop
an alternative source of supply, the Burmese are sending a
large mission dominated by military personnel to tour Europe,
possibly including Satellite areas, and have also queried the
United States about the possibilities of receiving military
assistance.
SECRET
Comment- These reports remain to be confirmed.
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25X1
25X1
SECRET
WESTERN EUROPE
ands.. A reorganization of the
East German Bor0 icecslice egun exP anuaryn has resulted in a
on IN
strength with resulted
17 percent,
East erman order ?
increase of approximately ra border unit from 820 to
increase in the strength p eares toe have affected only those units
960 men. The expansion aP
al border
ns
employed on the zo
other civil lice
have been furnished6by,?
organizations as well as - -
4-U-+ MA of the Alert Police are
weavons instructors.
are to act as m111da~
border
c
Comment. The sudden East German decreuea$
establisamenln
measures on 27 May, and the subseq planned.
of hr zone, had been carefullwas already talking
of a three-mile security i the socialist Unity Party
February of this y the infiltration of the German Demo-
of the necessity of curbing which
cratic Republic by Western agents. It is indicated thalice~sure
lacing Soviet rifle battalions on frontier
were taken several months
are now reportedly rep
duty-
12.
n miiitariza-
a
arliament supports East Germ
ermanYouth
Communist youth p e pzig9 e ree e
Dort Par iaaneansorshiP'? of the East German people s
pieck
tiona is
T ) announced last week "Sp President Wilhelm the
police. The organization was dire1po ice" and to work. in the
ui mexatc Although he did not use
to send its beroducebarrmsiand eqe pP German forces
factories to P ?? pieck recognized the ?~ East woGer become a
the term "national army,
ietoArmy ace rmy
as such when he said fortheS? " 11
worthy ally of the g the East
A manifesto issued by the parliament describing
"liberation" of the German
German Republic as the base for the he Fthe
conclusion Da
u orted by Pieck?s exhortation to tpeople is s PP up 269 30, 31
to organize "mighty actions?? for epee (R FBIS Berlin,
peace treaty with a united Germany
Mar,Y and 1 Jun 52) and Hungarian
??de fensive`? East German
Comment- Recent Czechosleed polish,
props-g---was emphasized the need for a
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4 Jun 52
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army. The transition of East German paramilitary forces into a
national army may, however, be effected without any formal an-
nouncement, in order to minimize political repercussions in
neighboring Satellites.
13, Spain unwilling to control pyrites transshipments to the
Soviet-bloc. e U mbassador in Ma r reports that the
SpanisS overnment is reluctant to establish rigid controls over
exports of low-grade iron pyrites under financial clearing agree-
ments with Britain and Belgium despite the knowledge that some
shipments are being transshipped through Hamburg to East Germany
and Czechoslovakia. The Spanish Ministry of Commerce argues that
(1) it is difficult to find markets for low-grade pyrites in
Western Europe and (2) the United States has not listed pyrites
under Title II of the Battle Act.
Furthermore, the Minister of Commerce has indicated
informally that Spain is willing to ship to the Netherlands
150,000 tons of low-grade pyrites (35 percent sulphur) in ad-
dition to the current quota payable in Belgian francs and pos-
sibly in pounds sterling. (C Madrid 1296, 30 May 52)
Comment, Following official protests from the US Embassy
in November 1951, the Spanish Government was presumed to have
halted direct shipment of about 30,000 of the 100,000 tons of
iron pyrites which Spain had contracted to send East Germany in
exchange for ammonium sulphate and paraffin. The proposed increase
in the Netherlands quota by an estimated 50 percent could'provide
an additional channel for transshipments of Spanish pyrites to
the Soviet bloc.
Although not listed under Title II of the Battle Act, iron
pyrites are on the US embargo list,
4 Tun 52
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TOP SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
4 June 1952
CIA No. 49679
Copy No. 46
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
(including S/S Cables)
Not for dissemination outside O/CI and O/NE.
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 SECRET
SECURITY INFORMATION
Approved For Release 2002/05/20 : CIA-RDP79T01146AO01000160001-4
 Approved For Relea'2002/05/20 : CIA-RDP79T01146A0016 0160001-4
THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECSO 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
FAR EAST
2. Outgoing Vietnamese premier asks for direct receipt
of US aid: Premier an an uu to d aaerican Mira ster
Heathn Saigon that he hoped any additional American
financial aid for the Vietnam Army obtained by Minister
of Associated States Letourneau during his coming visit
to Washington would be granted directly to the Vietnamese
Government. American aid which passed through the hands
of the French, Huu said, gave the latter too much power
to intervene in internal political affairs and to maintain
excessive privileges in Vietaamo (C S/S Saigon 2383,
2 Jun 52)
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Comment. Bao Dai abruptly dismissed Huu on 3 June and
appoint, nterior Minister Nguyen Van Tam as his successor.
Factors underlying this move appear to be Huu?s limited
ability and his increasingly open opposition to French power
and privileges in Vietnam.
Tam has been praised by the American Legation for his
energy and ability. He possesses a long record of close and
harmonious collaboration with the French.
EASTERN EUROPE
3. Hungary may have adopted new travel policy for diplomatic
personnel U L~gatron in Budapest reports t at t e -con-
ditions ns attached to a reply by the Hungarian Government to
a recent travel request may indicate a new travel policy for
Westerners. The Foreign Office stated that a travel permit
to Belgrade could be issued only for travel by rail and not
by road. (R S'S Budapest 8929 2 Jun 52)
Comment. Since the Hungarian railways are under close
politic= po ice surveillance, diplomatic personnel can be
watched much more easily there than on the highway,
Travel by foreign diplomats in Hungary is restricted
to a radius of thirty kilometers around Budapest, and they
are excluded from one area inside the radius. In the past,
however, requests for transit across the country have been
honored
4o Germans react favorably to proposed Allied countermoves
in Berl i.nT est Berlin?s Mayor Reuter approves of t e
American-proposal proposal to increase stockpiles in Berlin to provide
a 12-month rather than. a 6-month reserve of fuel and food,
as a demonstration of willingness to assist Berlin. Reuter
points out, however, that such a program would entail heavy
costs and additional construction, since all available depots
are already full.
Meanwhile, a report from the High Commissioners office
in Bonn states that the US proposal to stage a brief dis-
play of American air power in Berlin in the near future would
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have a salutary effect in West Germany, The report adds
that even the small demonstration of power involved in
the recent movement of several truckloads of armed American
troops along the Berlin autobahn was favorably received,
(TS Bonn 3180, 1 Jun; S Bonn 3179, 1 Jun 52)
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