CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001000220001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: June 1, 2004
• Sequence Number: 1
• Publication Date: June 12, 1952
• Content Type: REPORT

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CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
12 June 1952
OCI No. 6418
Copy No, 26!
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.
DIA, DOS, USAF AND OSD REVIEW COMPLETED
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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, SECSO 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
1. Moscow press needles French on violations of China's
frontiers. All Moscow papers carrie a June eTping PASS
report that French aircraft are continually violating the air
frontiers of China and international law. The article warned
that the French Government must bear full responsibility for
such hostile acts as bombing, strafing and reconnaissance,
and for the murder of Chinese citizens and damage to Chinese
property.
Ambassador Kennan notes. that this appears to be the first
time that the subject of the violation of China's frontiers
by French aircraft has been given this much play in the Soviet
press.
2. Finnish Communists to demonstrate on Korean anniversary:
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Comment: On 24 May the World Federation of Trade Unions
publisn appeal to working people of the world asking
them to declare the second anniversary of the Korean war .
a day of solidarity with the heroic Korean people, a day of
the defense of peace.
The Finnish Federation of Labor Unions has officially
withdrawn from the WFTU; therefore any demonstration in Finland
will be purely Communist with little labor support.
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3. Alleged story of Stalin interview reported spreading in
Poland: The American Ambassador in Warsaw reports that e
Hof the alleged recent Stalin interview implying the
Polish-East German frontier was a subject for negotiation
with a "neutral Germany" has apparently spread in Poland.
The substance of the interview was not reported in the
Polish press whose reactions have consisted of a flat denial
of the report of the interview in the principal party organ,
an editorial in another paper ridiculing the story and
pointing out certain errors, and the printing of the verbatim
text of the TASS denial of the report.
Despite the vehement Polish and Soviet denials, the 25X1
Ambassador believes the USSR's record of deceit and betrayal
the future status of the "recovered territories."
Comment.- Recent Soviet notes have not hinted that the
Polis - erman border was subject to revision.
Spreading of the story in Poland, however, would un-
doubtedly cause the government uneasiness since it is contrary
to numerous public reiterations by Polish and East German
officials that the Oder-Neisse line is permanent. Moreover,
the fact that Poland?s Communist regime has continued to
maintain control and administration of the "recovered terri-
tories" is one of its few actions which have gained genuine
popular support.
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4. Rhee supporter finds no evidence of Communist Plot:
The U ary Attache as Been In orme at o one
"Snake" Kim, chief of the South Korean Army CIC and con-
sidered a loyal supporter of the President, told the ROK
Acting Chief of Staff on 9 June that no evidence has been..
uncovered to link the 12 arrested Assemblymen with a
Communist plot. Kim reported that Rhee is aware of this,
but that a release would be difficult since the President
would have to admit the original arrests were a mistake,.
Comment: This type of report seems out of character
for Co oneI Kim in view of his loyalties, and may be a
maneuver of Rhee or his underlings.
5. US medium bomber downed by air-to-air-rockets on
Korean night miss on: The Far ast it Force reports
at a B-29, w c was lost on the night of 10 June over
northwestern Koreas was hit by rockets fired by an enemy
MIG-15 Seta A medium bomber was also last due to unknown
causes and a second one was seriously damaged, but re-
turned to South Korea.
Far East Air Force observes that while other reports
have been received of enemy use of air-to-air rockets in
North Korea, this is the first instance of MIG-15's using
rockets in combat and the first confirmed loss of a UN
aircraft to enemy night action.
In regard to the 10 June night encounter, Far East
Air Force says that "this attack was a well-planned, in-
tegrated effort, with seeming ground-to-air and air-to-air 25X1
coordinationO and that "the proficiency and aggressiveness
of the Red attack may indicate the initiation of a con-
certed effort by well-trained Communist air and round teams
0 to prevent UN night interdiction strikes.."
6. Letourneau discusses Indochina on eve of Washington
visit: Minister - es ent a ourneau as sugges e n ormally
To -an American official in Paris the establishment of two
tripartite bodies, one to discuss the political aspects of
Indochina's international role, and the other the military.
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The best the French can hope for, according to the Minis-
ter-Resident, is to hold on until "the general international
situation has improved sufficiently for us to negotiate a
settlement." The American Ambassador infers that this remark
envisaged inclusion of Indochina in an over-all Far East settle.-
meat, but suggests that a definite exposition of French thinking,
both on this question and the possibility of negotiations with
Ho Chi Minh, be ht in discussion with tourneau next week
in Washington. sou 25X1
Comment., As a preparatory step toward long-desired
tripartite negotiations on Indochina some French officials
in Saigon have recently suggested trafsforming their High
Commission into a roving mission responsible for over-all sup-
ervision of French interests in Southeast Asia and the Pacific
area.
There is still no confirmation of.the many recent rumors
that the French have been seeking to -negotiate with,?Ho ?Chi -Minh .
7. Tam appointment benefits Viet Minh., The US Consul in Hanoi
believes a e crew ion o e am government has provided
the Viet Minh with a highly exploitable propaganda tool for
the recruitment of new personnel at a time when the military
balance in Tonkin is delicate. The Tam, appointment, widely
regarded as a "major victory for the Viet Minh"; has even
"nauseated" the top French civilian representative and his
staff a
The Consul observes that while another regime might have
rallied considerable popular support and thus denied to the
Viet Minh what the French could never deny by arms alone, the 25X1
best that can be hoped from the Tam regime is that it will not
too seriously harm the war effort. This, he emphasizes is "a
poor return for r- nod and American money.
Cottment., Recent French clearing operations have resulted
in heavy et Minh losses, and a concomitant drop in rebel
morale has been reported. The recruitment of personnel and
the psychological reconditioning of present forces are there-
fore of first priority. It appears probable that the atmos-
phere created by the Tam appointment will considerably further
the realization of these Viet Minh goals.
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NEAR EAST-AFRICA
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Problem ng Talalas condition t a a ?u8'
y the Israeli vis an internal Jordanian
developments in A follows
ro
9.
Israel concerned b 3'
The Amer can Jordanian political developments
Israel conside sav4 or n e v v repo"
$~'j~1''
man with interest and ,y.,~y~, current Political
chc-in the =t + +nncm
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Comment. Israel has
by-Iraq orm a previously hinted that an
as a threat to union with Jordan or.Syria woul y attempt
Israel would o ISraesiderecuri y bound d be regarded
y9 and that in such an even
not Agreements t
and by the 1949 Armistice
10.
pa
r
o Amery can -? r LKi in the Fezzan
Paes rong French n s er ar
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capital to Opposition to any attempt Po an ci-
undertake economic develo me by American Ut in Points out that although the Fezzan is legallthe Fezzano
Libya, the French now He
they have in the pastacomplcteAy control the Province vinss of
Villard adds that the French
have discuss the economic resources of been reluctant to
in regard to Possible oil and irontdposita?
although Libya would welcome American en particularly
n
it would nb-w h He believes
French the F that
to off-end,.. enterprise in the n,the
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WESTERN EUROPE
5
m t
o
mun s save tried to avoid
open association with the conference, the meeting has been
chiefly promoted by Communists and fellow travelers. Renewed
agitation for a peace treaty could delay the ratification of
the German agreements. This is believed to be the main
purpose of the conference.
Comment: Although the Co
t
y, peace treaty.
n ormity witn the interests of Germany and
the security of its neighbors-unification democratizatio
sovereignt
"
"Conference for Solution of German Problem" shifted
from France to enmar : The French-Communist newspaper
Humana a announced on 9 June that "after careful
exam nation of the situation in Paris the Conference for the
Solution of the German Problem" will be held in Denmark 13-15
June instead of in Paris as originally planned. The agenda
calls for consideration of West Germany's agreements with
the West and the "means of peacefully resolving the German
problem in co f
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Soviet trade harassing in Berlin slackened: Reports from
the i `"
`ghCommissioner?s o ce n er n s ow that Soviet
officials are approving most of the trade permits submitted
to them by West Berlin firms. Soviet interference with?
Berlin parcel post shipments has also been at a minimum in
recent-months. 25X1
Comment: West German press reports also indicate that
German interzonal trade, held up by the Allies during most
of 1951 primarily in retaliation against the export permit
and parcel post harassing, has recently resumed and is now
"being carried through smoothly in both directions" amid
German negotiations for increases in that trade.
Meanwhile a recent statement by Ulbricht implies future
economic sanctions against Berlin. This could entail renewal
of the type of measures applied in 1951 as well as the
carrying out of more serious ones. One East German party
leader is also reported to have warned that the East Germans
would cut all roads to Berlin except the main Helmstedt
autobahn and renew the parcel post interference.
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13. West German Senate decision may delay ratification of
Allier rman treat es: Early West German .rat icat on of
e Bonn and Paris treaties has been imperiled by the German
Senate?s decision on 10 June that both treaties in their
entirety require Senate sanction.
If Chancellor Adenauer is unable to win immediate Senate
approval of the treaties, some delay will ensue since he will
be forced either to appeal the Senate?s decision to the
Constitutional Court or get the decision arbitrated b a
loint nariiamentarv committee. 17
Comment: Previously Chancellor Adenauer had intended
seeking upper house approval of only certain financial
provisions in the treaties, leaving approval of the treaties
as a whole to the lower house.
As matters now stand, Adenauer probably cannot get
favorable upper house action unless the state government of
Baden?Wuerttemburg is reconstituted in favor of the federal
coalition, thus restoring his majority in the Senate.
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Bolivian tin nationalization appears more certain At
ceremonies swearing in t e Tin Nationa izat on Study 9mmissionq
President Paz Estenssoro called on Bolivians to brace themselves
for the "most transcendental and vital step since independence,
namely nationalization, which is the principal goal and
justification for the /revolution." He discounted
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the operational problem and expressed belief that a solution
could be found for the financial and commercial problems.
Comment: This contrasts sharply with earlier descriptions
of Paz modern -rate" attitude , and mays indic'ate' that the influence of
extremist Minister of Mines Lechin still predominates.
The tin nationalization measures are to be applied only
to the three' principal producers, who control approximately
80 percent of Bolivian tin production.
"Anti-Communist terrorism" reported.in Guatemala: Several
persons are report: to' have been killed after as attempt to
seize a Guatemalan border garrison and simultaneous
disturbances in a nearby small town. In other parts of the
country, including the capital, attempts.to dynamite hydro-
electric plants have been reported. The Minister of the
Interior announced that the government was in full control of
the situation and charged that the disturbances were part of
"a large scale, terroristic plot . . instigated by anti-
Comment: Anti-government and anti-Communist groups are
apparently becoming more active in Guatemala since the bitterly
disputed agrarian reform bill was sent to Congress last month.
While the anti-Communists' coordinating committee has eschewed
violence, it has shown its inability to control the activities
of its bolder members.
The garrison allegedly attacked is on the Honduran border.
Early in the year prominent Guatemalan exiles were reported
preparing an invasion from Honduras- which would be coordinated
with internal uprisings. The TJ Embassy in Honduras, however,
found no evidence to substantiate these reports, 'It is
possible that the current reports of anti-Communist terrorism
are exaggerated by'_the government in an attempt to discourage
.disorders in the future.
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reportedly attempting to provoke break with
the USSR: enezue an authorities on _
J unne =refused entry to
S viet diplomat Yakushev and his-wife, and detained them over-
night despite Charge Krylov's attempts to intervene. The
Venezuelan chief of protocol is reported to have Said that if
the USSR does not break relations as a result of the "evident
insult," it will be clear that the Russians have some
"impelling reason" for remaining.
Subsequently, the Venezuelan Foreign Office issued a
communique that Charge Krylov and Attache Aliabiev adopted
an "aggressive, violent,, disrespectful attitude" and that the
Venezuelan Charge in Moscow has been instructed to reuest
immediate withdrawal of those two men.
Comment: Rumors that Venezuela would break relations
with the USSR have cropped up periodically since mid-1949,
but this is the first "incident" of any kind. The Venezuelan
action bears a strong resemblance to the Cuban moves which
preceded the break there last April. A decision to close the
Caracas Embassy Would leave only three Soviet diplomatic
missions in Latin America ?_ in Mexico, Uruguay and Argentina.
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TOP SECRET
THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC9 SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
NEAR EAST - AFRICA
Iranian official predicts possible military coup: Prime
Minister ossa eq oes no ave t e'support o he ranian
public, the Senate, Majlis or the Shah, former Iranian UN
representative Abul Panahi told the American Ambassador on 6
June. As a result of growing alarm over the financial crisis,
Mossadeq will no longer be tolerated.
Panahi stated that if the Shah did not soon replace the
Prime Minister, a military coup would take place.
Comment: Prime Minister Mossadeq?s position has appre-
ciably -weakened during the last two months. There is no firm
evidence, however, that his control of the government is as
yet seriously threatened or that the Shah is ready to take
action against him.
While current press reports of an attempted army coup
support Panahi?s account of army intrigue against the Prime
Minister, there is no evidence that the army leadership is
either willing or able to carry out a successful coup without
the Shah's approval.
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