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November 16, 2016
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November 17, 1999
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July 11, 1952
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Approved For Release 00/04/19 : CIA-RDP79TO1146AO 100120001-7 SECRET .SECURITY INFORMATION US OFFICIALS ONLY CURRENT INTELLIGENCE DIGEST Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY 11 July 1952 OCI No. 6438 Copy NT 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. RETURN TO ARCHIVES Et RECORDS CENTER IMMEDIATELY AFTER USE -- - SECRET III p6-Fl elease 2000/04/19 : C1 A-RDP79T01146A001100 Approved For Releas 000/04/19 : CIA-RDP79TO1146 1100120001-7 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. 25X1A la Awards given to MGB troops in Ukraine: The American Embassy in Moscow reports that over 627 awards for long and irreproachable service were given out to the MGB security forces in the Ukraine in June. This is the highest total published this year by any repub- lics Comment: During 1951 and part of 1952, several thousand MGB troops were reported to have conducted intensive operations against the resistance groups in the western areas of the Ukraine, which have been a source of trouble to the Kremlin since the end of World War II. It is possible that these awards, together with previous awards given in April and May of this year to members of the se- curity troops in this area, are the result of these anti-resistance operations. 2. Soviet Union reports increase in higher institute graduates: Pravda reports that 225,000 students graduated from higher a uca- tiJnai establishments in the USSR in 1952. (R FBIS Moscow, 8 July 52) Comment: There were 70,000 graduates from higher educational institutes in the USSR in 1945. The total figure rose during 1950 and 1951 to between 148,000 and 195,000. Only 10 percent of these graduates were from universities offering a general curriculum. The remaining 90 percent attended technical schools, such as en- gineering, medical, coal-mining, journalism, and agronomy, 25X1 C Approved For Release 2000/04/19 : CIA-RDP79T01146AO01100120601 ~y 52 Approved For Releas 000/04/19 : CIA-RDP79TO1I 46 1100120001-7 SECRET 25X1 C Comment: Czechoslovakia has been emphatic in its approval of the Sovie proposals for the unification of Germany. Only recently has the Czech press made any reference to the need for East Germany to rearm in its own defense if Germany remains divided. The Soviet Government may well wish to maintain tension in Germany to provide an excuse for the retention of Soviet forces in the country and the build-up of a German satellite army'while at the same time blaming the Western powers for preventing a peace- ful solution. 4, Hungarian Minister of Mining and Power absent from miners' trade union mee ing: Sandor zottner, Hungarian Minister of ining and Power, i no attend the meeting of the miners' trade union that opened in Budapest 5 July. His place was taken by Chief Deputy Minister Istvan Havran. Foreign Minister Karoly Kiss, representing the Politburo, 25X1A ' " spoke of the dire need for experienced union. functionaries, while union leader Bela Blaha blamed the union for improper use of Socialist competitive methods. Comment: Severe criticism has been directed at Hungarian coal m ning during the last two months. However, it is too early to say whether the Minister of Mining has been purged for the fail- ure of the industry to meet its targets. In its editorial comment on the miners' convention on 5 duly, the party newspaper called upon the union to use Soviet competitive methods and to overfulfill its plan targets. The editorial also made the significant statement that clerical reaction "and espec- ially Social Democracy" were to blame for poor work discipline in the Hungarian mines. 2 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 'Approved For Releas 00/04/19 : CIA-RDP79TO1146A1 100120001-7 SECRET 25X1X 5, Yugoslav military leaders anxious to coordinate defense plans 25X1X with Greece and Tu ugos.av military leaders strongly favor the conclusion o a verbal mutual defense pact with Greece and Turkey followed by staff talks detailing coordination of defense plans. While the Yugoslav General Staff believes that written pacts are unnecessary, it will sign a military agreement if Greece and Turkey insist. At the present time, however, political considerations prevent the opening of such talks. American military observers comment that while continued Yugo- slav hesitation to discuss military matters with Greece'and Turkey is difficult to understand it follows the Pattern of ast Yugoslav 25X1A performances. Comment: Last week, the Turkish Foreign Minister stated that Yugos avers now ready to engage in military talks if Turkey prom- ises to participate in the positive defense of Thrace. On 7 July, Marshal Tito told a Greek parliamentary delegation in Belgrade that although Yugoslavia rejects formal pacts, Greece and Yugoslavia must be ready to undertake a joint defense of their independence, 3 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 Approved For Release 00/04/19: CIA-RDP79TO1146A1 100120001-7 SECRET no North Korean military or diplomatic representatives were attending the 6. Final Sino-Soviet decision on Panmunjom talks reportedly scheduled before 20 July: Soviet an inese diplomats currently attending a conference at Peiping will reach a "final decision" on the cease-fire talks no later 25X1X than 20 July. 25X1X meeting. Comment: There have been recent reports of an in- creasing inese Communist role in major decisions concerning North Korea, hitherto exclusively a Soviet puppet. It is possible that truce talk policy is now decided jointly by the Chinese and the Russians without North Korean consultation. There have been no other reports of the conference or the 20 July deadline. 25X1X 25X1X 25X1A 7. High Soviet and Chinese officials arrive at Panmunjom for truce talks: In early July a high-ranking Soviet Foreign Minis ry official and a Chinese counterpart arrived at Kaesong with a staff of eight These newly arrived Communist officials reportedly are empowered to "accept or reject" UN truce conference proposals on the spot, thus eliminating the need for con- sultation with Moscow and Peiping. They have final instructions as to the Communist position on the remainin Comment: Communist negotiators at Panmunjom are be- lieved toTh ve consulted Moscow and Peiping on all major decisions in the past. It is possible that the USSR and Communist China have agreed on their minimum position on the one remaining issue. There is no apparent advantage however in dispatching "diplomatic experts" to Kaesong. Their presence has not been confirmed and to date the enemy has not demonstrated any urgency in concluding negotiations. Approved For Release 2000/04/19 : CIA-RDP79TO1146AO01 100120061 -72 25X1X 25X1A Approved For Releaso*000/04/19 : CIA-RDP79TO1146AG91100120001-7 25X1 C 25X1X 9, Iranians optimistic over output of new oil well: 25X1X 25X1X 25X1A 25X1X the oil field at Qum 90 miles 25X1X south of , Tehran, appears to be comparable to the rich fields in so th I u ern ran. the well brought in at Qum on 2 July is capable of a daily production of 1,000 barrels. had refused the equipment offere it by the National Iranian Oil Company in order to prevent any legal entanglement in the Anglo-Iranian disputes Comment: These statements appear premature. Even if the equipment for completing and testing the well were available, the process of determining its capacity should take about a month. Additional test wells will have to be brought in before the extent of the new field can be determined. 5 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 'Approved For Releas 000/04/19 : CIA-RDP79TO1146 1100120001-7 25X1A 25X1A 10, Greece may bring Cyprus issue before the UN: Greek UN Delegate Kyrou informed the American delegation on 9 July that public opinion was forcing his government to bring the Cyprus issue before the United Nations. The American Ambassador in Athens reported on 8 July that Acting Prime Minister Venizelos has been pressing him for official American reaction to such a move. The Ambassador fears that the Greek Government will not be able to resist raising the matter. Comment: Successful demonstrations in behalf of the union oyprus with Greece were held in Athens on 4 July. Although there is no indication that the current cam- paign will be more successful than its predecessors, the possibility that Cyprus may be a Western defense headquarters increases the importance of the issue. Widespread Greek support for union may tempt the government to promote it in order to remain in power. SECRET 6 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 'Approved For Releas 00/04/19: CIA-RDP79TO1146 146AG61 10012 SECRET 25X1 C 25X1A 25X1A 11, Recruiting for East German paramilitary forces lags: Reliable reports indicate that May recruiting quotas or the East German Alert and Border Police were missed by 80 percent in Saxony and 50 percent in Thuringia. In Saxony, only 700 men had been recruited by mid-June to fill the month's quota of 8,000 men. Police recruiting teams have now changed their tactics to bring pressure through personal interviews. Former security restric- tions, such as the rule against recruiting individuals who were Alert prisoners of war of Western powers, have reportedly been relaxed. Comment: Despite the pressure placed on some groups to served Alert Police, regular conscription will probably be necessary to obtain any significant expansion of the para- military forces. Communist propaganda exploits West Berlin security counter- measures: The East Berlin press has been front-paging the an- nouncement of the West Berlin government that it intends to erect barriers between the western sectors of the. city and the Soviet zone. The Communists describe the security countermeasures as "self-encirclement." American observers believe that any West Berlin action taken to prevent further kidnappings will be used by. the Com- munists to support their case for gradually sealing off the. western sectors of the city. Thus far the East Berlin press has not mentioned the recent kidnapping incident. 25X1A Comment: The West Berlin Senate, incensed by the kidnap- ping ?Walter Linse on 8 July, immediately adopted measures to prevent other such incidents. In addition, Allied officials have formally charged Soviet authorities with collusion in the crime. Members of Linse's organization, the Committee of Free. Jurists, state that he did not have any highly "susceptible infor- mation," but had been doing interpretive rather than investi- gative work. 7 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 Approved For Releas000/04/19 : CIA-RDP79T0114611100120001-7 SECRET 13, Major powers attacked by other NATO countries on consul- tation proce ures: Dutch permanent NATO representative tarken- F..,-orrgh recently "scorched" the United States, France and Britain for not discussing in the North Atlantic Council their draft reply to'the Soviet note which they showed to the other NATO members only 24 hours before delivery. Stressing that matters concerning Germany were of direct interest to all NATO countries, he remarked that opposition to NATO in his country, at least, came from the belief that it was compelled to support policies in Whose formulation its voice was not heard. Starkenborgh's statement was quickly and forcefully en- the representatives of Italy, Belgium, Norway, Greece, Denmark, Turkey, Portugal and Canada, As examples of instances where consultation on matters of concern to NATO countries was being carried on elsewhere, Starkenborgh cited, among others, the SACLANT appointment and command problems in the Mediter- ranean and the Near East, 25X1A Comment: This is the strongest and most concerted protest yet voiceiy the smaller NATO countries against what they consider big-power domination. 14. Gaullist split does not strengthen Pinay's hand: The formal 25X1A split in t Fie Gaullist party oes no mean any added support for Pinay?s government, according to the US Embassy in Paris. The Embassy points out that the new faction is composed of the conservative-minded Gaullist deputies who have backed Pinay since his investiture, and warns that the dissidents have specifically announced their disapproval of the government's foreign policy. 25X1A There is evidence that additional dissension may split the Gaullist ranks further in the fall, but the extent of the rift will depend-on what Pinay's program has accomplished. Comment: Pinay is now assured of undisturbed tenure during the summer recess which begins on 12 July, The left wing of the Popular Republicans is becoming increasingly restive, however, and when the Assembly reconvenes in the fall, Pinay may be forced to make concessions on foreign policy in order to obtain support on the right to compensate for losses on the left. 15. Soviet offer on Danube shimming held best Austrians can obtain: American Embassy cf icaals in y enna believe that Soviet SECRET 8 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79T01146A001100120001-7 Approved For Releas? 00/04/19 : CIA-RDP79TO1146 "1100120001-7 SECRET terms with respect to the resumption of Austrian cargo and pas- senger traffic on the Danube within the Soviet-occupied sector are probably the best obtainable. Austrian vessels under Austrian colors and with Austrian crews operating within the Soviet zone will be allowed to land anywhere except at designated places involving Soviet security considerations. They will, however, be subjected to such Soviet checking as applies to Austrian interzonal rail traffic, and will be required to operate under interzonal permits valid for only three months at a time. The Austrians will be obliged to submit navigational information requested by the Soviet authorities, and to service agreed-upon Soviet landing points. The Austrian ships will not be allowed to transport goods and troops of the other occupation powers. 25X1A The Soviet Military Command reserves authorit to modify 25X1A an of the new regulations if they are violated. Comment, While Soviet motives remain obscure, this osten- sibly conciliatory gesture coincides with increased Austrian dissatisfaction over Soviet stalling on the Austrian treaty. Furthermore, the availability to the USSR of Austrian ships previously confined to US-controlled areas of the Danube will open up an important transportation outlet to Soviet interests in eastern Austria. Through the revocation of permits, threat of vessel seizure, or charges of violations of regulations, the Soviet authorities are in position to terminate shipping at any time. 25X1 C 9 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 'Approved For Release`2000/04/19 : CIA-RDP79TO1146A'1100120001-7 SECRET 25X1A Italian Government Italian Government's recent expulsion ocertain foreign Com- munist journalists and the prosecution of some local Communists mark the beginning of a stronger anti-Communist policy, the American Embassy in Rome reports. The government intends to push through Parliament various anti-Communist measures, which include revision of the penal code, some restrictions on the press, closer control of trade union activities, and a new civil defense bill. The Embassy doubts whether this legislation, which will face much parliamentary opposition, can be put through in time to have "great effect" before the 1953 elections. Despite pressure from some Christian Democrats, the govern- ment reportedly will not interfere seriously at this time with strictly domestic activities of the Communist Party. However, it is expected to exercise stricter control over international con- tacts of the Italian Communists and over the activities of Orbit representatives in Italy. 25X1A 18, 25X1A Comment: Unless accompanied by a far-reaching program of economic and social reform, the government's proposed legislation is not likely to reduce significantly the widespread appeal of the Communist Party, which now has the support of approximately one-third of the electorate. Swiss unmoved by US protests over possible recognition of East ermany; Despite a formal American protest, the wise have n cats they may grant the East German Government de facto recognition. Swiss Under Secretary of State Zehnder has pointed out that there is little hope for the unification of Germany and that his government could not refuse such recognition if the East Germans were to make satisfactory arrangements concerning the 4,000 Swiss citizens living in East Germany as well as the Swiss investments, valued at 200 million francs, in that country. British officials have been discussing this problem with the Swiss since April. The Swiss have consistently maintained the same position. Comment: Switzerland will probably grant the East German Government de facto recognition, through the exchange of trade missions, if satisfactory arrangements are made on Swiss interests in East Germany. American officials in Berlin believe that even such recognition will be trumpeted by the East Germans as a major diplomatic triumph. SECRET 10 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 -Approved For Releas 00/04/19 : CIA-RDP79TO1146 146A961 10012 SECRET 19. Bomb damages US Information Service Library in Argentina: A bom way explo ed at t o oar a t e US Information Service in Buenos Aires at midnight on 8 July. No US Embassy personnel were injured, but d floor of the Lincoln Libras was reduced to shambles, u 25X1A Comment. Destruction of the heavily-patronized Lincoln Library would cut off a valuable source of.information about the United States. The Peron government has gradually reduced the available amount of current information about the United States by banning many US news periodicals from the country and by establishing control over the importation of books. Responsibility for the bombing has not been established. Despite the serious damage, the Lincoln Library was reopened to the public on 10 July. 25X1A with I The razil an Senate on July approved legislation allowing labor unions to affiliate with the Inter- 20. Brazilian Senate approves law allowing unions to affiliate national Confederation of Free Trade Unions. Ministry of Labor officials expected President Vargas to sign the bill this week. Comment. The bill was sponsored by the Vargas adminis- tration h has recently given other indications of a dispo- sition to free the Brazilian labor movement from traditional government dominance. 25X1A 21, President and Foreign Minister of Panama suggest new Canal Zone treaty-.- Speaking before a group of Americans on -5-Yu-1y, Panamanian Foreign Minister Molino spoke of the "need" for a new Canal Zone treaty. He added, however, that Panama has no intention of changing the rights the US has at present. Later, President Arosemena, in an equally friendly way, repeated the suggestion. Ambassador Wiley, after talking with Molino, believes that no definite proposals were in mind. 'Molina told him that in a new treaty the US could be assured of bases "wher- ever and whenever needed." The newspaper controlled by President-elect Remon im- mediately took u the issue and editorialized on the need for a new treaty, SECRET 25X1A 11 July 52 Approved For Release 2000/04/19 : CIA RDP79T01146AO01100120001-7 `Approved For Release 00/04/19 : CIA-RDP79TO1146A' 146AS91 10012 SECRET Comment: The position taken by Remon's newspaper and the fact at he a will be inaugurated in less than three months sug- gest that Remon may be indirectly testing reaction to a treaty revision. Likely to figure prominently in any discussions on the revision of the 1936 treaty is strong local feeling that com- mercial competition from the Zone has contributed to Panama?s present economic crisis. Resentment also exists over the un- equal pay received by Panamanian and US employees in the Zone. SECRET. 12 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 Approved For Releas 000/04/19: CIA-RDP79TO1146 146AGO1 10012 TOP SECRET SECURITY INFORMATION 11 July 1952 US OFFICIALS ONLY CIA No. 49729 Copy No. 6 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 2000/04/19 : CIA-RDP79TO1146AO011001200011-7 Approved For Releas O00/04/19 : CIA-RDP79TO1146A 146AW1 100120 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. 25X1 X Comment: Czechoslovakia has so far been unsuccessful in reach ng an agreement with NIOC on the terms of an oil contract. The basic difficulty is the lack of transportation facilities, and there is no indication that this problem has been overcome. Even if a contract is signed, it probably will not be implemented in the near future, and therefore, the Battle Act will not apply. Signature of any oil con- tract, however, is of propaganda benefit to the Iranians in their effort to force the Anglo-Iranian Oil Company to per- mit the sale of Iranian oil. 11 July 52 Approved For Release 2000/04/19 : CIA-RDP79TO1 146AO01 100120001-7 UNCLASSIFIED when blank-TOP SECRET when attached to Top Secret Document-Automatically downgraded or declassi- fied when filled in form is detached from controlled document. CONTROL AND COVER SHEET FOR TOP SECRET DOCUMENT DOCUMENT DESCRIPTION REGISTRY SOURCE CIA CONTROL NO DOC. NO. DATE DOCUMENT RECEIVED DOC. DATE COPY NO. LOGGED BY NUMBER OF PAGES NUMBER OF ATTACHMENTS ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intelligence Agency or classified Top Secret within the CIA and will remain attached to the document until such time as it is downgraded, destroyed, or transmitted outside of CIA. 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