CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100040001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 12, 2016
• Document Release Date: February 14, 2002
• Sequence Number: 1
• Publication Date: June 30, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
30 June 1952
OCI No. 6430.
Copy Now 2
2/u
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.
State Dept. review completed
RETURN TO ARCHIVES . ?t RECORDS CENTER
MAEDHATELY AFTER USE SECRET
5~~ ~ 1 ~-~?t3~ SECURITY INFORMATION J
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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.
GENERAL
to Marshal Tito still believes Moscow will avoid
"major" war ris so ars a tog in is recent conversa-
ion with -Kustrian Foreign Minister Gruber, expressed the
opinion that the USSR, while continuing to take "minor
risks" of war, would avoid "major risks," and that con-
sequently an armed conflict would occur only if Moscow
miscalculated.
The conversations also touched on the Trieste sit-
uation.e Tito insisted that he was anxious for good
relations with Italy, but felt that the issue should not
be raised again until agitation on both sides subsides.
(S Vienna 4042, 26 June 52)
Comment: Early in March, Marshal Tito expressed the
view t at.growing Western. military strength had reduced
the danger of Soviet aggression.
Yugoslavia reacted sharply to the London conference
which gave Italy a voice in. the administration of Zone A
of Trieste, and has since shown no signs of willingness to
reach an over-all settlement on the Free Territory.
SOVIET UNION
HICOG Berlin warns against Communist exploitation o
four-power a so T e na ure o the East German press
gests that the Communists foresee possible
n su
i
g
campa
g
Western agreement to four-power talks on conditions giving
the Communists a good propaganda forum, according to the
US High Commission in Berlin. The US officials point out
that if no preconditions are laid down by the West which
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could embarrass the Communists and if the agenda were suf-
ficiently restricted, the Soviet Union could avoid com-
mittinj itself on the important details of election control
or the interim status of an all-German government. The
USSR could thus continue to hold out hope of agreeing to a
German settlement and encourage further delay in ratification
of the contractualsa (C Berlin 1568, 27 June 52)
Comment: The Western Powers are planning to propose
four power consideration of the terms and conditions of
an impartial international inquiry concerning free all-
German elections.
3. Switzerland forbids establishment of permanent Moscow
Trade Organ zatioai wiss au on ies ave re use to
perm es a s meat in Switzerland of a permanent orgini-
zation of the Moscow Trade Conference. Approaches on this
subject have been made previously in Geneva by a left-wing
British economist. (C Bern 1635, 27 June 52)
Comment: The Swiss refusal, taken in conjunction with
a refus29 May by Denmark, is a -temporary setback for
continued Soviet efforts to capitalize on the Moscow
Economic Conference to undermine Western trade policies
and export controls.
Similar overtures to other Western European countries
are to be expected, since a Moscow-dominated trade committee
in Western Europe could profit by proximity to western
businessmen and the western press.
EASTERN EUROPE
4, Explosion in Czechoslovak munitions plant brings quick
disaster re lie? act on: n ea~p osaon a the large muni ions
plant--In DubH1'6i_, .ova is on 3 April killed or seriously
injured about 200 persons, mostly young women employees.
In an immediate all-out disaster relief effort directed
by the government, blood and plasma were obtained from blood
banks and specialists were flown in from Prague and Brati-
slava. The injured were rushed to various hospitals within
a fifty-mile radius. All victims were placed under police
guard and the government maintained a strict news blackout
on the disaster. (S Frankfurt 6576, 25 June 52)
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Comment-. The pubnica armaments plant is part of the
Skoda ivy industrial complex, The ammunition factory
is located about three kilometers from Dubnica in under-
ground installations. About 5,000 workers are employed
.An the plant, with between 30 and 50 percent reported to
be women.
Although no explanation is available as to the cause
of the explosion, lack of adequate safety precautions has
been noted in many major Czech industrial plants. The
speed and effectiveness with which the government was
able to bring disaster relief into action following the
explosion is an indication of Czech capabilities in this
field.
5. Possible speedup in Hungarian frontier deportations
reports -. e merican Legation n. Budapest believes at
epo porWtons from Hungarian frontier areas may have been
speeded up during the past four weeks. The current ex-
pulsions are chiefly from the western and southern border
areas, All property left behind has been confiscated.
(R Budapest 9749 27 June 52)
Comment-. Hungarian authorities appear to.be extending
large-sc eportations into the sensitive border area.
Last summer?s target was chiefly Budapest, and there were
reports of expulsions from the Yugoslav border in 1950.
The present deportations apparently apply to the Austrian
frontier as well.
6. New Rumanian-Hungarian economic link reported-. Rumania
and Hungary signe a t ree-year e~ondm co-operation agree-
ment last week providing for a linking of the electric
power networks of the two countries and formation of a joint
Rumanian-Hungarian company to exploit Rumania?s natural gas
and chemical resources.
Using Hungarian equipment, the new company will build a
large chemical combine in Rumania which is expected to pro-
duce enough nitrate of sodium to meet the requirements of
both countries. A new pipeline also will be constructed
jointly for supplying natural gas to a proposed Hungarian
chemical plant. (C Budapest 9659 25 June 52)
Comment-. This is the first time that Moscow, through
the Council or Mutual Economic Assistance, appears to have
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approved formation of a joint stock company by two Satellites.
The agreement will serve the Council's purported aim of
consolidating the resources of the two countries and making
them complementary rather than. competitive.
SECRET
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FAR EAST
7. British and French favor Japan's membership in COCOM:
The US e ega on o MCOR repor s th-a-f Great r ain `11
strongly favors the full admission of Japan to COCOM, arid .is
.opposed to a separate organ which would cooperate with, but
not be a part of the export control organization. The French
have similar views, but somewhat less strong. Both nations
have agreed that exploratory quadripartite talks should. be
held with Japan before COCOM considers possible Japanese mem-
bership. (S Paris 8111, 26 June 52)
Comment: The Japanese Government has indicated its de-
sire o o n the European export control organization.
Ambassador Murphy believes that Japanese membership is essen-
tial to assist the government in countering strong dema.-,.,-Is
from the Diet and commercial interests for a relaxation of
present controls on China trade.
The Department of State has favored a separate organi-
zation for Far East controls in view of'a possible desirabi-
lity in the future to associate COCOM more closely with NATO
or other Atlantic-based Organizations.
Japan seeks US assistance in deporting unruly Koreans:
Foreign `-`I~~-n?~se aza a. reques a per can ass s anee in
the problem of repatriating about 5,000 Koreans who have vio-
lated Japanese law and whom the Republic of Korea has refused
to accept. Okazaki said there is no thought of deporting the
600,000 Koreans legally in Japan, although, he added, there
may be another 200,000 illegal-entrants. (S Tokyo 686, 26
June 52).
Comment: The South Korean Government rejected a Japanese
attempt as May to deport 125 illegal Korean entrants on grounds
teat they had lived in Japan prior to 1945, although South
Korea had accepted deportees on 17 previous occasions without
reference to their length of residence in Japan.
The Japanese Foreign Office fears that the ROK may now
be hedging on a previous tentative agreement which granted
Korean nationality to all Koreans in Japan, and acknowledged
Japan's right to deport unruly elements.
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9, Southern Thailand. experiencing economic recession: The
American massy in' k ang o repor s a ou ern a land is
experiencing a "definite" economic recession because of cur-
rent low rubber prices. It is estimated that 40 to 50 percent
of the rubber "estates" have ceased tapping, and some of the
unemployed tappers have reportedly turned to gangsterism,
(C Bangkok 2759, 26 June 52)
Comment: The Embassy had reported earlier this spring
that pros ers and traders manifested little concern over the
drop in record-high rubber prices.
On the other hand, Malayan Communist terrorists have been
active in southern Thailand, and past experience indicates
that this economic discontent offers them'new opportunities to
extend their influence in Thailand,
10, Burmese mission to study land policy in Peiping and
Moscow: Tfie mer can m asst' n an-goon reports a aBur-
m.i s mission, led by the Minister of Land Nationalization,
Thakin Tin, is to spend August and September in Peiping and
Moscow studying "methods of land nationalization for appli-
cation in Burma." Thakin Tin recently told an Embassy officer
that he is seeking to develop a "new system" based both on the
Chinese method of individual distribution of land and Russian
collectivization, but adapted to conditions in Burma. (C
Rangoon 1266, 26 June 52)
Comment: Thakin Tin will be the second Burmese cabinet
officer`=oead a delegation into the Communist Orbit in less
than three months. He is identified with the left wing of the
Burma Socialist Party and is the sponsor of the Land Nationali-
zation Act which is largely derived from Communist theory,
11 Tension continues in Bangkok: The American Embassy in
Ba.ngkok repor s. that tension n--Bangkok continues although a
coup attempt or a Chinese uprising has not materialized. The
Embassy states that the possibility of a split in the ruling
clique is always present and that the alerts are still effec-
tive "and may remain so for some time." (C Bangkok 2760, 26
June 52)
Comment: While Bangkok has recently experienced politi-
cal uneas ness, there is still no firm evidence to suggest
that any of the members of the ruling clique feel sufficiently
strong to alter successfully the status quo.
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NEAR EAST - AFRICA
12. New left-wing political party formed in Israel: A new
polit ca- par y, the Labor Unity Party, was 5rme in Israel
on 21 June by a faction which had split from the pro-Soviet
Mapam. The new party remains Marxist but considers Mapam's
views inconsistent with Zionism. The membership of the party
is drawn from small groups of intellectuals and urban workers
unwilling to accept Mapam's increasing pro-Cominform orien-
tation. The future of the party depends on whether the strong
rural and trade union groups now forming the right wing of
Mapam will unite with it. (C Tel Aviv 1404, 23 June 52)
Comment: This development has been foreshadowed for
some TI-m-e-7-The position of Mapam, Israel?s third largest
party, may now be seriously threatened because more of its
numbers may join the new party,
13. British and American representatives agree to Middle
East Defense rgan P - 1 - a m . - r s an mer can repre-
sentat ves have agree to a p an for the early establishment
of a Middle East Defense Organization with headquarters on
Cyprus. Pending approval by both governments, the proposals
will be submitted to the other sponsoring powers -- France,
Turkey, Australia, New Zealand, and South Africa. A planning
group of representatives from all participants is to operate
under a British head.
Egypt will be invited to become a founding member. The
ultimate cooperation of the other Arab states is also con-
sidered essential. Since those states would probably reject
any invitation at this time, the organization will first be
established to demonstrate the West's firm intention of de-
fending the area, with the hope of attracting Arab cooperation.
(S London Secto 24, 27 June 52)
25X1
Southern
Rhodesian majority favors Central African
ati.on plan was shown in debates last week in the Parliament
of self-governing, white-controlled Southern Rhodesia.
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The supporters' major reservation involved a provision for
appeals to London on racial questions through an African Af-
fairs Board, since they prefer to have a federal supreme court
handle such questions. (C Salisbury 84, 26 June 52)
Comment: The British Government is encouraging the fed-
eration-Southern Rhodesia with the protectorates of
Nyasaland and Northern Rhodesia to strengthen politically and
economically these territories which are important sources of
strategic minerals.
This Southern Rhodesia support, as well as that of the
white settler minority in the two protectorates, is essential.
London is already faced with the determined opposition of na-
tive Africans, who fear that the white-controlled federation
would inevitably hurt their position, regardless of any pro-
tective formulas.
Final ratification will be sought after a conference in
London this fall to meet objections that arise in the current
discussion phase.
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WESTERN EUROPE
Soviet movements reported in East German coastal area:
15
.
25X10 F- -1 ov et troops were o serve de-
25X1 C
barking from ships in t e Rostock harbor every night for a week
during early June. "Quite heavy cannon" were unloaded at the
same time. The-debarkations reportedly had begun 10 to 12 days
earlier. 25X1A
Comment: This is one of a series of unconfirmed reports of
Soviet troop movements into the Rostock and the Ruegen Island
areas.
Soviet interest in the Baltic area has been shown by increases
in naval personnel in Germany and Poland, the reported recent
amphibious and coastal defense exercises along the East German
coast and the increased Soviet air capabilities in the area.
25X1A
16, East German railroads reportedly purchasing steel plates
through w tzar an : T e East German ra 1Iroads have reportedly
ordere 29566 tons of steel plates through a French firm with
offices in Zurich and Paris.
Comment: The steel plates are probably for use in the
construct of the 2 , 300 heavy duty flatcars, suitable for
operation on either standard or broad gauge track, which are
scheduled for production in East Germany in 1952. As a result,
a large percentage of the capacity of the wagon construction
industry will be tied up and production of other types of cars
may be almost eliminated.
This order, for which the Germans are willing,to pay an
unusually high price, and a previous one for 80,000 tons of steel
rails placed with Schneider-Creusot, reflect the critical steel
shortage in East Germany.
17. East Germans reportedly ready to set up national army about
25X10 10July a law setting up the
armed forces of the German Democratic Republic will be announced
on 10 or 11 July at a congress of the Socialist Unity Party.
Some 12,000 infantrymen of the new army will then parade at Marx-
Engels Platz in Berlin. Eighty artillery pieces and 10 tanks will
take part in the exercise.
25X1A
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Comment: Such an army already exists in fact, and recent
Conimun propaganda has emphasized the necessity of a national
force for the defense of East Germany. The USSR, however, possibly
may not want a formal announcement of an East German army to be
made so soon after the Western proposal for four-power talks to
discuss the composition of an electoral commission on Germany.
18. West Berliners irate over ban on visiting their East German
properties: T e U ig Comm; ss oner?s o ce in er n reports
tyYt f e ng among West Berliners is running "rather high" on the
restrictions which the East German Government has placed on their
travel to gardens, summer homes, and other property in the Soviet
Zone. East Germany announced on 26 June that West Berliners could
not visit their property unless they became East German citizens
and claimed that the measure was necessary to combat the sabotage
and diversionist activities organized by West Berliners.
HICOG officials believe that a Western protest alone will
not be sufficient to assuage the feelings`of Berliners, some of
whom will be alienated from the Allies unless they are compen-
sated for their losses. HICOG suggests the possibility of
compensating West Berliners through the appropriation of East
German, or even Soviet, property wherever the US could lay hands
on it, thus combining compensation and genuine reprisal. (C Berlin
1564, 26 June 52)
Comment: Many Berlin families depend to a considerable
extente produce from their East German gardens.
French Government may charge Duclos with espionage: The
French vernment appears hope ul o r ng n :-monist chief
Jacques Duclos to trial before a military court on charges of
espionage. The Minister of Justice has informed the Cabinet that
the government's recent anti-Communist drive has uncovered
evidence which may incriminate Duclos on charges which would make
him subject to such a trial. (S Paris 8130, 26 June 52)
Comment: Duclos was arrested on charges of endangering
interne security, and the government has been denying press
reports that evidence of espionage was actually found. Premier
Pinay is reportedly determined to push the fight against them by
every means short of outlawing the party. The Communists have
been unable to stir up popular sentiment for Duclos.
SECRET
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Foreign Minister satisfied with visit to Tito:
Austrian ore-gn Minister Gruber is highly satisfied with his
talks with Yugoslavia's Marshal Tito; he feels the results should
be measured more in terms of better relations than in agreements
.reached. Agreements were reached, however, on an early return of
twelve Austrian PW's remaining in Yugoslavia, on a resumption of
local border traffic, and on the reciprocal restitution of small
border holdings<
Tito expressed his admiration for Austrian resistance to the
Russians, and urged Gruber to continue to press for a state treaty.
He approved the Austrian plan to bring the treaty issue before the
UN General Assembly, saying that it was important to win the sup-
port of "neutral" states, such as India. The official Yugoslav
communique also stated that there had been discussion of a mutual
desire to increase trade, and of the necessity for a -esolution
of the question of the Yugoslav minority in Austria. c3 Vienna
4042, 26 June 52; R Belgrade 1642, 25 June 52)
Comment: Gruber announced after his talks with Tito that
Trieste had not been on the agenda, although there had been some
discussion of Austria's economic interest in the port, which he
hoped the Yugoslavs and Italians would take into account.
LATIN AMERICA
Uruguayan Parliament to debate MSA agreement: The US-
Uruguayan Mutual Security Act agreement will, according to
present plans,. be signed on 30 June and then presented to the
Uruguayan Parliament for ratification. Vociferous opposition is
expected to be led by the nationalist Herrerista minority party.
Dominguez Campora, chief of the Uruguayan negotiating com-
mittee, has assured US negotiators that, provided the MSA agree-
ment is finally ratified, the secret Military Plan will be
initialed without further bilateral discussion. (Factual data
from R Montevideo 532, 26 June 52; S Montevideo 449, 7 May 52)
SECRET
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Austrian
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TOP SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
TOP SECRET SUPPLEMENT
30 June 1952
CIA No. 49721
Copy No. 46,
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
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TOP SECRET
THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS9 TITLE 189 USC9 SECS, 793 AND 7949 THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
WESTERN EUROPE
le Danes and Norwegians still hesitate to grant US air
basest meriZn. _An sear or a t s or epor s a
ash Social Democrats are not willing to move faster than
the Norwegians on permitting American-staffed air bases in
Scandinavia in peacetime.
The Norwegian Labor government?s Foreign and Defense
Ministers, who visited Copenhagen in an attempt to persuade
the Danes to consider a proposal to locate a US fighter wing
in Denmark9 found the minority Danish Government agreeable,
but they could not obtain the approval of the Danish Social
Democrats. (TS Oslo 11349 26 June 52)
Comment: Norway has deemed it necessary to declare
public-yon several occasions and also to inform the USSR
diplomatically that there are no foreign bases on Norwegian
territory. Therefore, it has generally been considered more
feasible for Denmark to assume the lead in establishing an
airbase with American personnel on Scandinavian territory.
The labor parties in both countries, however, feel unable at
the moment to cope with internal opposition.
2. Bolivian Ambassador-designate revises attitude toward
mationa za ono ni ed tomes Ambassa or parr s be ievee
that ra Victor Andrade, recently appointed Ambassador to
the United States, has assumed a more reasonable attitude
toward nationalization of the three principal tin companies
in Bolivia. Andrade recognizes that he will have a difficult
job persuading his government to change its approach to the
problem.
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Andrade confided that the government is proceeding
cautiously in dealing with the demands of Minister of Mines
Lechin until it has strengthened its position. (C S/S
La Paz 517, 27 June 52)
Comment: Andrade, for whom agrement has been re-
quest-e-97-1-as been reported to be pro-US but opposed to "any
economic penetration by the USA"
While President Paz Estenssoro has reportedly been
trying to curb Lechin's extremist demands, Paz' 10 June
speech indicated that he was determined to carry out nationali-
zation of the principal tin producers.
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