CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100050001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 22
• Document Creation Date: December 12, 2016
• Document Release Date: June 24, 2002
• Sequence Number: 1
• Publication Date: July 1, 1952
• Content Type: REPORT

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2?6
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.
1 July 1952
OCI No. 6431
Copy No.
25X1
State, Department review completed
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BETUR14 T ARCHIVES & AECORRCS Cr.
?
IM EWATELY AFTER USE n E V
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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, USC9 SECS, 793 AND 794, THE
'TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
'UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
campaign renewed in Moscow: The biological warfare cam-
paign, which slackened o when t e Koje atrocity charges were
being emphasized, has been renewed through the medium of wall
posters, Three posters given the widest circulation character-
ize American soldiers as skulking away from the scenes of their
bloody crimes, cringing behind the UN flag. In the background
are pictures of cholera bombs, gas tanks, packing cases
labelled "Made in USA" with contents marked "infected insects,"
etc.
The captions read: "Hasten the departure of murderers
f:tom Korea," "Stop the criminals"; "Reckoning -- Evil doers will
not hide from the anger of the peoples." 25X1
Comment: This re-emphasis on BW charges was apparently
timed to coincide with the Kremlin's propaganda play on Malik's
UN speeches on the Geneva Convention. The poster captions,
with one exception, embrace the themes designated by the WFTU
for emphasis in connection with the anniversary of the Korean
war,
The use of the label "reckoning" appears to be. Moscow's
first implication of the possibility of retribution.
2, Soviet Orbit reaction to.the Yalu bombings: World Commu-
nist comment on the recent N omblng raids on North Korean
hydroelectric targets was consistent in pointing to the raids
as US efforts to force the Communists to accept UN terms at
Panmunjom or break off the talks and continue the war in Korea.
Moscow so far has avoided the assertion made in Hungarian,
Far Eastern and French Communist commentaries that the raids
were a sign of a US desire to extend the war in the Far East.
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The targets were said to be non-military installations
which are "indispensable to the peaceful life of the Korean
people and adjacent Northeast China Provinces." Thus, atro-
city accusations were furthered, and any reference to the
military nature of the targets was avoided.
The Moscow press was quick to take up world public
reactions, particularly Western, which showed dissension in
the Western camp.
A boycott of American goods in protest against the bomb-
ing of the Yalu power plants has been urged at a public meet-
ing or an.ized by the Bombay Peace Committee.
from.
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Induction of troops reported from Moscow
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Comment,, This is the first evidence of inductions in
the Uis spring. Induction of the bulk of the class of
1932 has been expected. Call-up of the class of 1933 cannot
be accepted solely on the basis of a single instance, Al-
though elements might be expected to be called up this fall,
the bulk of the class would probably be called up in the
spring of 1953 if the pattern of recent years were to be
followed. Inasmuch as the classes presently in service are
all of reduced size as a consequence of the famines of the
early 1930?s9 the call-up of the normal-size 1933 class may
have been advanced to maintain the over-all strength of the
Soviet armed forces and prevent excessive delay of scheduled
demobilizations.
In this latter connection, there has been no evidence
to date of the initiation of the rotation of Soviet con-
script classes in Germany and Austria. This rotation, which
is routine for this time of year, may have been delayed pending
call-up of the class of 1933,
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Czechoslovakia said to be sending 200 representatives to25X1C
stimulate trade with t e west. On 30 May Antonin
Gregor,
25X1 C
a
he
would send
about
200
representatives to
the West in June
and
July to
build
up
Czech export trade.
The Czechs hope
to
attract 25X1A
foreign buyers with quality
items and special
pri
ce arrange-
ments for glass, textiles and machinery,
25X1A
Comment: Czechoslovakia?s production of such items as
glass,, textiles and machinery, which formed the basis of its
trade with the West, has been very sharply curtailed under
the stepped-up Five Year Plano This fact, coupled with the
reluctance of the Czech Government to permit any number of
representatives to go into the West, makes it doubti I that
the government is actually preparing such a move.
At present, Czechoslovakia appears to be emphasizing
illegal means of obtaining essential strategic raw materials
and foreign exchange.
Czech chemical plants in. Slovakia reported to be producing
25X1C poison gas: tree chemical
plants in central Slovakia are producing poison gas, possibly
for all the Satellites. One plant, located in Likier, is
stated to be produci
Soviet chemists.
Comment. Earlier reports,
25X1A
25X1 C
have cla ?1m that poison gases were being produced in Slovakia,
especially at Novaky and Zemianske Kostolany, Mention was
also made of the production in these plants of the nerve gases
Sarin. and Tabun. None of these reports have been confirmed,
The Likier plant is known to produce wood distillates,
such as methanol and alcohol. At present, however, no poison
gas is known to be manufactured from wood.
6. Hungarian coal miners' absenteeism provokes party ire:
The Hungarian party newspaper criticizes the management o
the Diosgyor coal mines for not getting better results during
the first quarter, although conceding that they fulfilled
their quota. The article lays particular blame for under-
production on the so-called "amphibious" miners who own farm
land in the country and work in the mines. Severe penalties
are threatened for miners who stay home to do agricultural
25X1A work.
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Comment- The elimination of the "amphibious" miners is
a dec ark ed object of Hungarian planning policy. Construction
of housing facilities in the mining towns, now assertedly in
progress, must come before the problem is solved, Meanwhile,
the basic lack of manpower that afflicts the economy is illus-
trated by the order to "everyone who can move" to work on the
harvest, and the concurrent injunction on miners to cease
working their own fields.
7. Hungarian kulaks punished for failure to surrender fat
hogs,, Me Hungarian trade union newspaper reports on 26
June that three kulaks were sentenced to prison terms and
fines for failure to surrender fattened hogs. One peasant
had his property confiscateda 25X1
Comment,, Pressure by the Hungarian Government to secure
fulfi m.nof surrender quotas from reluctant peasants has
been growing. On 21 June the Minister for Produce Collection
told a meeting of the chairmen of the executive committees
of the Budapest Municipal Council and county councils that any
arrears in produce collection would cause serious damage to
the economy. Sanctions already have been applied against six
collectivized villages which failed to deliver their quotas.
The application of sanctions against kulaks completes the
picture of a toughening demand for fulfillment of the Plan in
all sectors of Hungarian economic life.
8. Possibility of new party triumvirate taking over in
Hungary- Brno Gerog 60
25X1C party lea er of ungary, Jozsef Revai, party ideological
leader, and Mihaly Farkas, Minister of National Defense,
have moved their homes to a new location in the vicinity of
that of party leader Rakosi o Unusual Security measures
have been taken in the area of their new residences,
believes that the move may
be connected with rumors of the establishment of a trium-
virate composed of Revai, Gero, and either Gabor Peter,
Chief of the State Security Police. or IstvanKovacs, Polit-,
Comment,, There are. no firm indications that such a
triumvirate will take over in the near future, but political
changes would not be unexpected in view of the Soviet-inspired
criticisms and arrests for failures to fulfill planning targets
that have been in progress.since May.
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Revai was rumored in May to have returned from Moscow
following treatment for his seriois heart condition. His
illness would appear to exclude an active political role.
The purge of Rakosi has been forecast repeatedly,
especially since Stalin failed to send birthday greetings
last March.
90 Soviet repatriation continues in Rumania.- On 26 June,
the Rumanian press and radio announced tat Soviet consular
officers in. Rumania are extending repatriation formalities.
Soviet citizens who came to Rumania between 1941 and 1945
were told to address all inquiries to the Soviet Embassy
in Bucharest or the Consulates at Constanta, Cluj, or Iasi.
A diplomatic source has informed the American Legation
in Bucharest that Russian mechanics and low-level technicians,
as well as some groups from the West, are being sent home.
25X1 states that one Bucharest hospital
has been instructed, for unspecified reasons, to compile a
list of all Russians (including Bessarabians) on its staff.
25X1
Comment: All natives of Bessarabia and Northern
Bukova.na ecame Soviet citizens when the USSR annexed those
territories and are therefore subject to forcible repatria-
tion to the Soviet Union.
Thirty-one Italians were suddenly ordered to leave
Rumania earlier this months These moves may be connected
with the evacuations from Rumanian cities and unconfirmed
reports of considerable unemployment.
25X1
10. Rumanian purge continues: Three more high officials of
the Rumanian Government have been dismissed. Gogu Radulescu
has been replaced by Marcel Popescu as Assistant Minister of
Foreign Trade; Marin Bianu has been replaced by Alexandru Ion
as Assistant Minister of the Interior; and Alexandru Voi-
tinovici has been succeeded by Anton Tatu-jianu as Prosecutor
General o
The Swiss Charge has informed the American Legation in
Bucharest that the private secretaries of both Radulescu and
Foreign Trade Minister Barladeanu -- whose fall is allegedly
imminent were arrested two weeks ago when the Customs
Director Bogdan, was reportedly discharged,
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25X1 C
Comment: Marcel Popescu has been in charge of Rumanian
trade re Talons with the USSR,
25X1 CI and has often been in Moscow. Bianu follows his
former chief, Teohari Georgescu, in being purged from the
Ministry of the Interior.
The dismissal of Voitinovici as Prosecutor General
follows last month's reorganization of the Rumanian judicial
system. On 24 June the press hailed the new court system as
a means of liquidating "right-wing deviations" and speculators,
kulaks, and others who have not been receiving "just punish-
mento"
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12, New approach regarding Americans in China suggested:
The American Consul General i ongg' g notes a on y r
Americans imprisoned in China have been released in the past
six weeks. He suggests that the new Indian Ambassador to
Peiping be requested to make a new approach, pointing out that
Chou En?lai?s "earlier assurances" have not been made good.
25X1
Comment.- Chou toldi almost all 25X1
imprisoned miss ovaries, not specifically imprisoned Americans,
would be released by the end of June.
About 100 missionaries, mostly Catholics, have
left China in the past month. At least 1,010 remain, and
more than 100 of them are still in jail, Approximately 50
Americans are in prison or under house arrest.
13, North China railroads overloaded
repor: on e at railway station
25X1
o c a s to d an Embassy staff member.that they had orders
not to accept any freight for three weeks o knew 25X1
of no unusual activity which might have tied up the railways,
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but thought the ban could indicate important military movements
or be connected with deliveries of recently harvested grain,
25X1
Comment: Heavy military movements may well have
caused thisan,` The Communists previously have not interrupted
commercial freight traffic during the harvest season. 25X1
15. Communist agency in Hong Kong finally agrees to
register: The Hong on g rant o e inese ommunis official
news agency agreed last week to register under the colony "s
press ordinance.
25X1
Comment: The Hong Kong government ordered the news
agency in pry o register but twice extended the deadline
when the Communists offered excuses for not registering.
The Communists evidently have hoped, by a combination
of stalling and implied threats, to avoid registering their
agency. As this report states merely that the agency had "agreed"
to register, not that it had in fact registered, this hope may
not yet have been abandoned.
160 China,seeks increased trade with Pakistan: March and
April reports to arac a rom e a s an massy in Peiping
revealed Chinese approaches to the Pakistanis for increased
trade between the two countries. In their conversations with
the Pakistanis, the Chinese deplored the Western trade embargo
and asserted their willingnes with a untr on a
"mutually beneficial" basis. I
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Comment. China?s imports from Pakistan--mainly
cotton--have een larger thus far in 1952 than imports from
any other non-Orbit country. These imports have caused a
large drain on Peiping?s foreign exchanges since exports to
Pakistan have not been appreciable. The "mutually beneficial"
basis envisaged by Peiping for its trade with Pakistan would
entail an expansion of its exports rather than imports
17. French colonials seen losing grip in Indochina: 25X1
Commenting on _a eep rn twe6n He o ne co on als
and the more progressive elements among French administration
officials in Indochina, a long-time
in Tonkin has expressed the belief that colonial-minded French
Interim High Commissioner Gautier's controlling influence
cannot last much longer.
He adds that the ultraconservative group to which
Gautier belongs is controlled by major French financial
interests, particularly the Bank of Indochina, whose objective
is to have "their man" in control on the day of reckoning,"
to ensure being paid in something more substantial n
Vietnamese national bonds. 25X1
Comment. Since assuming his duties as Minister-
Resident to Indochina in April, Letourneau has appointed a
new group of y6ung French officials to key advisory positions
in Saigon, replacing some old-line colonials.
In any event, the small group of conservative
business interests holding a stake in Indochina are no longer
capable of exerting a major influence on the National Assembly?s
Indochina policy.
18. Burmese Government seizes propaganda material from
`
pro-Communists-. T e uni?mses
~ vernmen as can ~scate
pro
Burma Trade Union Congress (BTUC) upon their return from_the
Peiping May Day celebration.
The American Embassy in Rangoon comments that this
action is a reversal of the government?s previous policy to-
wards Burmans returning from trips to Iron Curtain countries
and that it indicates resentment at the dP1 w,cra tAQ ? excessively
25X1
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20.
oppositi
Comment. This incident is the latest of a number of
recent ind cat1.ons that the government has adopted a policy of
firmness against its Communist as well as non-Communist
Burmese War Office concerned over lax discipline in
aj:?my. Reports of epre atron aga nit elv any y i
`sciplined Burman troops in Arakan has caused the War Office
to commence an investigation and to admonish field commanders
to intensify training in discipline.
The American Embassy in Rangoon comments that although
the rapid expansion of the army appears to have outstripped the
supply of competent officers, it believes that the Defense 25X1
Minister and the Supreme Commander are seriously attempting to
establish good discipline and esprit de corps.
Comment. This is the latest manifestation of ill.
discipline among Burman troops, which has often been cited as
one source of continued hostility towards the government. The
Defense Minister and the Supreme Commander in the past have
condoned, if not encouraged, excesses on the part of regular
and irregular government forces,
Indonesian President's summer palace attacked. Presi-
dent Sukarnomount nn pa.ce near an ur , n es Java ,
was heavily attacked by 600 fully armed and uniformed Darul
Islam troops on the night of 21 to 22 June. The dissidents
withdrew after a four-hour attack during which they partially
penetrated the palace grounds. A government announcement
stated that the army suffered ten killed and several wounded.
I eported repeated clashes in
the area xes en s palace from 18 to 22 Junes F _J 25X1
I I arm asualties were quite high, 25X1
Comment. The Darul Islam (DI).,. a fanatic Moslem
organization, has appeared increasingly ambitious in recent
months and during the past eight weeks has been unusually
active in West Java, Government forces reportedly were
alerted for planned DI coordinated attacks upon large cities
in West Java on 22 June, the Moslem New Year, and Djakarta
police claim to have foiled a DI plot, also scheduled for 22
June, to assassinate high government officials and to create
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NEAR EAST-AFRICA
21, Mossadeq reportedly belligerent toward Shah and
Cabinet: Prime n s er ossa eq adopted an arrogant a i-
1u a .ward the Shah during his first meeting after his
return from The Hague,
25X1 Mossadeq reportedly stated: "With me lies the
road to heaven; without me lies the road to hello"
25X1
25X1 C
in his first
25X1A
general disorder. However, attacks upon the President's
palace appear to be the only efforts that achieved any
measure of success.
meeting with the Cabinet, he also showed anger toward his
Finance Minister for not obtaining sufficient revenue. The
Prime Minister expressed dissatisfaction with the government's
propaganda department for not having given sufficient support=,
to Iran's mission at The Hague. F 19 25X1A
I _T
Comment: Mossadeq exhibited a similar attitude
when he re ahrne to Tehran last November after addressing the
United Nations General Assembly in New York.
22, Israeli-Syrian meeting proposed to relieve bord
25X1
Pr inister Ben Gurion has confirmed that Israel would
tension: American Ambassador -av s repo rts tHaT Israeli
meet with Syrian representatives to discuss settlement of the
disputed Lake Ruleh area. Ben Gurion reportedly had not been
briefed on the effect that resumption of drainage work by
Israel on the east bank of the Jordan would have on Israeli-
Syrian relations. He also stated that his government did not
wish to provoke an incident and expressed interest that the
matter was regarded as so important by the American Embassy.
I I
Comment: United States representatives in Tel Aviv
and Damascus recently warned of the danger of Syrian-Israeli
hostilities if Israel resumed drainage work in the demilitarized
zone east of the Jordan. The Lake Huleh area was the scene of
bitter fighting last year,
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King Farouk requests Sirry Pasha to succeed Hilali
Pasha as Egyp s Prime i er - n une ing
reques a usse irryn s"i o form a new government in
Egypt, following the King's acceptance of Hilali Pasha's
resignation from the premiership. 25X1
Comments The political situation in Cairo is still
confused, and it is not yet certain whether Sirry will succeed
in forming a cabinet. Sirry's appointment as Prime Minister,
if successful, would bring into office another moderate,
independent leader with a pro-Western outlook, Hilali's
resignation after only four months in office, however, serves
to emphasize the serious obstacles which any Egyptian Prime
Minister must face.
Any new government will be under great pressure to
achieve Egypt's aspirations in regard to the Suez and the
Sudan. Nationalist anti-British activities, which were at a
minimum under martial law, may at any time increase and lead
to serious disorders.
In domestic affairs, the next Prime Minister will
inherit the problem of corruption in the government, against
which Hilali made no progress. The country's economy has
deteriorated this year, not only because of Egypt's dispute
with Great Britain, but also because of the diminished world
demand for cottons Moreover, the new Prime Minister is likely
to be hampered by the same palace political maneuvering which
is said to have been mainly responsible for Hilali's resigna-
tion,
Bolivia supports special United Nations session on
Tunisia: o v a as notified thie e retary inera o i-Fe
a e- -Nations that it favors a special session of the
General Assembly to consider French activities ip Tunisia.
As of 27 June, the United States had sent one of
the four negative replies, as against 20 supporting the session.
Thirty-six countries had n I t indicated their position.
Comment: Bolivia's action indicates that the new re-
volutionary government may be somewhat less cooperative than
its predecessors, which tended to follow the lead of the United
States in voting in the UN.
At present it appears doubtful that the necessary 31
countries will support the special session.
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25X6
Moscow Economic Conference a propaganda success:
At the r une d scuss ons, COCOM members generally agree t at
the Soviet-sponsored World Economic Conference was a "well-
conceived" propaganda move to neutralize Western security controls.
None of the COCOM countries has approved any of the trade agree-
ments made at the conference,and specific transactions will be
acted on only when export licenses are requested. No constructive
proposal was made to combat the propaganda gains of the Moscow
conference, nor was any plan offered to meet additional Soviet
propaganda moves of this type,
All delegates except the French agreed with the Belgian
delegate that the "challenge" to Western security controls should
be met by making the Western position clear, although the dele-
gates added that publicity on controls is the responsibility of
each of the COCOM countries,
Several of the delegates restated their desire for an
expansion of East-West trade compatible with mutual security
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interests. The Norwegian and Danish delegates called for "criti-
cal" examination of further additions to the international lists.
Comment- Initial discussions on the World Economic Confer-
ence were meld by COCOM in early May. Last week?s meeting was
designed for the exchange of more precise information and sug-
gestions for counterpropaganda moves
27. French Government plans systematic prosecution of Communist _ All Party ea ers o top F?r_eanc ommual st arty -ea ers w l be
roug t to trial on charges similar to those facing Party Secre-
tary Duclos, according to the Minister of Justice, although prepa-
ration of the prosecution may take as long as a year.
No classified documents have been found among the material
seized by the government, but sufficient evidence has been un-
earthed to show a systematic gathering of information of military
interest. Only a fraction of the ton of papers taken at Toulon
alone has been analyzed to date. 25X1
Comment: The French Communist Party is vigorously pushing
a welorganized campaign throughout France calling for the
release of Duclos, who was arrested while directing the anti-
Ridgway riots in Paris on 28 May.
Communist leaders are confident that no incriminating
material has been found, but the party press is hedging by ac-
cusing the government of planting false evidence among the
documents seized.
28.
Reappraisal of US economic policy toward Italy considered
essent a o estern de ease plans may be wea ene and the success
of moEratic forces in the forthcoming Italian general elections
may be seriously jeopardized if under-utilization of Italian
resources continues, according to the Office of the Special MSA
Representative in Paris.
that country,
25X1
Over-all reappraisal of American economic policy toward
Italy is therefore considered essential at this time in view
of the growing unemployment and unused productive facilities in
Comment: American observers estimate that Italian defense
efforts wou d utilize only one quarter of the hard goods capacity
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of Italian industry. US military orders in Italy will not in-
crease this total significantly.
New procurement standards must be worked out, if high-cost
Italian industry is to be utilized for Western rearmament.
29. Argentine revolt may be attempted in September: President
Peron s too well entrenched and too well prepare for a suc-
cessful uprising to be effected within the immediate future,
25X1C Plans for a large-scale revolt
are being made, however, and the next attempt is tentatively
scheduled for September 1952.
25X11
I plotting was continuing behind
the scenes and that an assassination s
always possible.
25X1A
Comment: This confirms other reports that Peron has taken
rigorous security precautions; his assassination, however, could
precipitate a bloody revolt of doubtful outcome.
In early June one of the principals in the September 1951
revolt reportedly returned to Argentina clandestinely, but whether
he is connected with the large-scale revolt planned for September
is not known.
30.. Colombian Congress nominates ?spina Perez for president:
Both houses o the a onservat ve o om an congress unan -
mously approved a resolution on 24 June proclaiming ex-President
Mariano Ospina Perez the Conservative Party's candidate for the
1954 presidential election. Members of Congress reportedly hope
that Ospina will soon assume leadership of the party and end
the strife between Gobiernista and Alzatista factions,
Comment: Because he has remained above party strife,
Ospina z is the one man who can command the support of
practically all Conservatives. During his administration he
tried to conduct a bipartisan government, and retired from of-
fice in 1950 respected by Colombians of all political factions.
He recently expressed a decision to return from Europe and
resume an active role in Colombian politics,
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Senator Gilberto Alzate Avendano?s willingness to forget
his-own ambition for.the presidency in 1954 is apparently a
recognition of his inability to win. It is also another indi-
cation that the Conservative Party may soon present a united
front o
31. Seizure of bus line by Cuban Army may have serious political
repercuss ons o res ent a sta s first e s wi t uba ?s
influential and well-organized labor forces came as the Cuban
Army took over the government-operated bus line in Havana,
reportedly in order to improve the service and purge its labor
union. Several union leaders, including the union?s chief,
Marcos Hirigoyen, one of Cuba?s most influential labor leaders
and also head of Accion Revolucionaria Guiteras, a politico-
terroristic group, have been arrested.
Leaders of the non-Communist national Confederation of Cuban
Workers, with whom the union is affiliated, are reportedly
negotiating with the government for a settlement. If they are
unsuccessful, there may be a general strike involving other CTC
affiliates which, desire to express their dissatisfaction with
the government's delay in settling disputes.
Ambassador Beaulac reports that in view of the recent re- 25X1
organization of the politico-terroristic groups in Cuba a 25X1
_
general strike could create an explosive situation.
F
I
32.
US Embassy lists_ possible reasons for Venezuelan break
with USSR: ThUnited States mbassy at acas believes that
'ehezue a's decision to break diplomatic relations with the
Soviet Union was not based on any single consideration. As
factors possibly contributing to the government's decision, the
Embassy notes (1) a long-standing desire to put an end to diplo?
matic relations, (2) the hope of reducing Communist activity
during the pre-election period, (3) the country's closer
relations with Cuba, (4) a desire to show particular friendship
toward the US in view of the various current negotiations between
the two countries, (5) the highly-publicized action against the
Communists in France, (6) a desire to counteract propaganda
about Commuaists in the Venezuelan Government, and (7) the hope
of diverting attention omestic political situation.
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Comment: The Venezuelan Government has still offered no
public exp .nation of its action other than the "rudeness" of
the Soviet Embassy staff in dealing with the arrest of the
Yakushevs and the "unacceptability" of a subsequent Soviet note.
The weakness of this explanation makes it appear probable that
domestic political considerations and the desire for inter-
national approval weighed heavily in the decision to break
relations.
2
33. Venezuelan police reportedly see widespread Caribbean
agains overn ng un a:
25X1C reports tha Venezuelan opposition leaders, froups in Mexico and Guatemala, and exiles from the
Dominican Republic and Cuba are involved in a plot to overthrow-
the Venezuelan Government.
The Communist groups are said to have'received "instructions
from Russia" to give priority to the overthrow of the Venezuelan
and Colombian Governments. This decision has reportedly been
accepted by "the various Caribbean exile groups," since they all
feel that Venezuela would offer a good base for subsequent move-
ments against other dictatorships.
According to this report, a campaign against the Dominican
Government will be initiated soon to divert attention from the
preparations for action against Venezuela and Colombia. gI
25X1A 25X1A
Comment: Although the Venezuelan Government is genuinely
appre eive about the activities of its outlawed opposition,
and thus tends to accept alarmist reports, many of its allega-
tions of international conspiracy and of collaboration between
Communist and non-Communist groups seem designed to enlist out-
side sympathy and help.
The recent concentration of Caribbean exile activity in
Central America and the addition of Cuban "liberals" to the
ranks of the "outs" have led to increased rumors of attacks
on the dictatorships of the Caribbean area.
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TOP SECRET
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1 duly 1952
CIA No,. 49722
Copy No.
46
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
25X1
25X1
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 SFCIRRT
25X1
Approved For Relea - A001100050001-5
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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, USC, SECS, 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
. Chinese battalions in Indochina reportedly repulsed: The
ten C inese Communist battalions which recently crossed into
northwestern Tonkin are reported by the American Charge in Saigon
to have returned to China after suffering heavy losses.
The mission of the force was to cooperate with the Viet Minh
against French-supported guerrillas and in cutting river communi-
cations. The Sino-Viet Minh units are said to have suffered near-
ly 400 casualties, and a French official has stated that eight
Chinese prisoners were taken. 25X1
Comment: The Chinese force, estimated at between 2,000
and 3, men, is the largest yet reported to have crossed into
Tonkin, and is the first known to have suffered casualties there.
2. Arabs request Germany pay Israeli reparations to Arab refu-
gees: Nance or enauer Has received a letter from the Chairman
the Arab Higher Committee for Palestine protesting the proposed
reparation negotiations with Israel. The letter requested that
any amount the German Government may desire to pay as reparations
to the Jews be paid instead to Palestinian refugees "in compensa-
tion for part of their losses."
The German Government has not yet decided how to treat the
request and is seeking to avoid publicity lest it adversely affect
current negotiations with Israel.
The Syrian delegate to the United Nations has informed the US
delegation that Syria and the other Arab states will probably raise
the question in the United Nations of using German reparations to
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Israel compensate Arab refugees from Palestine.
Comment:- Syria, Lebanon and Iraq previously requested the
United Staates, Britain and France to support the use of any possi-
b:le German payments to Israel as compensation for Arab refugee
claims against Israel. The three Western powers have replied that
they do not consider the two matters related and have added that'
this does not, however, affect their attitude on the question of
compensation to Arab refugees from Palestine.
3. Belgians apprehensive over future of their country's economy:
The recently arr ve American Ambassador in Brussels s ayes that
many Belgians, including government officials, are seriously con-
cerned lest anticipated world economic developments have an adverse
effect on the country's economy. Belgium feels that its competi-
tive position might suffer under more difficult market conditions,
an.d fears that there will be a general downturn in the free world's
economic activity even before the rearmament program is completed.
Belgium also believes that the policy of trade liberalization is
losin support anion the other European countries.
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