CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100230001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 20
• Document Creation Date: December 22, 2016
• Document Release Date: May 31, 2012
• Sequence Number: 1
• Publication Date: July 28, 1952
• Content Type: REPORT

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28 July 1952
OCI No. 6449
Copy No.
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.
SECRET
// I AA r''/
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IBIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC? SECS, 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
1. Brazilian Ambassador wants West to work for unity with
Arab-Asian countries in Firazl an Am assa..or to t e
United a onsfl Carlos Muaaiz, believes that the Western theme
in the next General Assembly should be that of developing
greater solidarity among the free world members, including in
particular the Arab-Asian countries. This approach, he feels,
offers the best means of combatting Communist aggression and
.the intensified hate campaign, and of imparting the conviction
that the UN is not paralyzed by the East-West crisis.
The Ambassador suggests concentration on constructive
policies which offer least objections to the Arab and Asian
delegations, such as action in the economic and social fields,
He recommends that emphasis not be placed on the concept of
"Western civilization" as a general UN concern, and that every
possible effort be made to avoid an oven snlit with the Arab-
Asian nations on colonial issues,
Comment: Muniz is generally regarded as an able and in-
a d plomat. His recommendations, which should find
:Eluen
support among the, Latin American countries, are in keeping
wvith a "new principle," defined by him, of granting small
countries the right to have matters "which they feel of inter-
est to them" discussed in the UN0
2. Pravda attacks Danish Government plan for NATO bases:
A recent, rav a article at acke t o Danis vernme.fft s plan
for NATO a ses and castigated the presumed use of Bornholm by
American troops in the forthcoming Baltic maneuvers.
Danish Defense Minister Peterson has pointed out that US
forces will not participate in the maneuvers; and that, in any
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n2ge. 'Danish sovereignty over Bornholm cannot be disputed.
Comment: Recent speeches by prominent Danish officials
'---That That Denmark is now more inclined to grant bases
for NATO use undoubtedly prompted the Pravda attack.
The USSR has generally avoided criticism of Denmark in
regard to NATO, probably fearing that the Danes would clamp
down on the use of Copenhagen as a Soviet-Satellite base for
international Communist meetings. The Soviet Union may now
consider that the recent Danish refusal to grant visas to
Satellite delegates to the Conference for the Peaceful Solution
of the German Question and refusal to permit establishment of
a permanent trade group growing out of the Moscow Economic 25X1
Conference elimihates the necessity of such a cautious policy.
4. Agricultural officials reproved for laxities in machinery
maintenance: e US Embassy in Moscow reports that a recently
publish Thrder of the Soviet Minister of Agriculture, 1. A,
Benediktov9 demanded that serious abuses to agricultural ma-
chinery be immediately remedied. Criticism was specifically
levelled against the Machine Tractor Stations in Chernogov,
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Alma-Ata and Novosibirsk oblasts, and the oblast agricultural
administrations were ordered to furnish "investigating organs"
with full particulars. In addition, the Deputy Ministers of
Agriculture in the Republics of the Ukraine and Kazakhstan and
the Deputy Chief of the Novosibirsk Agricultural Administration
were warned that any such irregularities in the future would
cause them to face trial on serious charges.
The Embassy comments that although complaints of improper
maintenance of agricultural machinery are not uncommon, in this
case continued malpractices have apparently caused serious
damage to costly equipment. 25X1
5, Recent gains reported,in Soviet agriculture: According to
the Second Quarterly Report of the Soviet Central Statistical
Administration, the seeding plan for 1952 was overfulfilled and
spring seeding accomplished more rapidly than last year. Acreage
in wheat, cotton, sugar beets and technical crops was in excess
of 1951, and perennial grasses, root and silage crops also have
increased significantly 25X1
Comment: Much contained in the Agricultural Section of
this repor bears a striking resemblance to the Second Quarterly
Report of 1951.
It appears that because of the comparatively greater gains
in heavy industry, the agricultural figures have been generalized
to camouflage the lower percentage gains in this sector.
EASTERN EUROPE
6. Religious reasons alleged in deportations in eastern
Hungary: The deportation o fifteen families from a north-
eas tern Hungarian village was attributed
to a quarrel with the local council over registration for reli-
gious instruction.
had epor a from Bekescsaba in the eastern borderland, al-
legedly for the same reason. According to the US Legation in
Budapest, this is the first instance of deportations from this
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Comment: These deportations probably spring from the re-
cently approved party line calling for class war against priests
and kulaks. However, recent broadcasts from Budapest have indi-
cated that priests and kulaks are being blamed for peasant re-
sistance to governmental grain collections in. Eastern Hungary,
where drought conditions and low yields appear to prevail. A
recent broadcast charged the priest who also was chairman of
the farmers' cooperative of a village north of Bekescsaba with
sabotage of the grain collection, apparently because he called
on peasants to pray for rain. The radio declared that the
local climate always had been dry and asserted that the
village?s "toughest" inhabitants -- the 200 party members
would see to collecting grain. Another broadcast reported the
arrest in a village east of Bekescsaba, of a former gendarmerie
sergeant major who "incited against" grain collections at a
peasant meeting apparently called to protest on-the-spot col-
lections by local authorities.
Local councils have been charged with opportunism, toler-
ance of religion, and pampering of kulaks in several eastern
and southeastern counties,
7. Greek officials bring back pessimistic report on conditions
in Yugoslavia: Ambassador Peur oy reports the following general
impressions formed by Greek parliamentary deputies during their
good-will tour of Yugoslavia this month:
to Yugoslav Government circles are extremely sensitive to
the danger of American intervention in their affairs. All
Yugoslavs realize the grave need for American military
equipment but have resolved to avoid American domination at all
costs.
2. Yugoslav officials have a good opinion of Britain, and
would prefer the presence of British officers to Americans.
3. The Tito regime is tolerated by the people only be-
cause of their greater hate and fear of the Kremlin. Dis-
content even exists throughout the Yugoslav Communist Party,
approximately one third of which is believed to favor Stalin.
4. The Yugoslav army could be effective only in guerrilla
warfare, because of lack and ignorance of modern equipment and
a dearth of experienced officers,
5. The general standard of living throughout Yugoslavia
is "amazingly low.,,
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=6, Yugoslavs wished to improve their relations with
Greece but "scar 1
c
e y even mentioned Turkey,!?
Comment: Yugoslav suspicions and fears of "great power"
dominaTrq are generally well known. Belgrade's negative
reaction to some of the provisions in the recent tripartite
aid note is an excellent example of this phobia.
The precise extent and seriousness of Cominformism in the
party is not known. Competent American observers, however,
generally believe that it does not constitute a serious threat
to the regime. Most Cominformists are believed to be found
among the more doctrinaire elements in the lower and middle
levels of the party.
General living conditions are poor but have improved per-
ceptibly since the period of economic crisis resulting from
the Cominform break in 1948 and the drought of 1950.
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FAR EAST
8. Japanese prefer joining COCOM: In reply to a State
Department proposal to establish a Far Eastern export control
'body, separate from COCOM, the Japanese Foreign Office has in-
:formally replied that it still prefers to join COCOM while at
the same time furthering organizational preparations for a
Far Eastern set-up. The Foreign Office points out that if
joint action by those free nations concerned with control of
exports to Communist China can.be coordinated under the sug-
gested organization within a reasonable time, it has no
objection in Principle to the American proposal.
Comment: At the five-power multilateral conference to
be held in~tashington beginning 28 July, the United States
will propose that a separate Far Eastern control organization
be set up to parallel the European COCOM. The Japanese, as
well as the French and British, have already indicated their
preference for Japan's direct participation in the existing
organization.
The Japanese have continued to maintain the occupation-
imposed controls on exports to Communist China despite strong
i4ternal, political and commercial pressure to reduce them to
the level of the Western nations. Unless permitted to join
COCOM, the government probably will be forced to make such
reductions prior to the elections expected this fall.
9. Leftists consolidate control over Japanese labor: Leftist
leadership in Sohyo, Japan's largest labor organ nation, was
consolidated during the national convention which ended on 25
June as left-wingers were elected to the top executive posts.
A rightist resolution to join the ICFTU was decisively defeated
164 to 42. The convention also voted to back the left-wing
socialists during the coming-,ge"neral-'elections.
The American Embassy comments that the leftist victory
creates an'acute possibility of a split in Sohyo.
Comment: A trend toward leftist control in Sohyo was
noticeable as early as last April, when the government attempted
to revise labor legislation.
6
28 July 52
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25X1
25X1
25X1
His former unit, 25X1
Rightist socialists, whose influence in the labor union
movement is impaired by the convention's decisions, will pro-
bably support any right-wing labor attempts to break away from
Sohyoes present leadership.
Worth Koreans reportedly reorganize armored strength:
rp-criments subordinate to a "Mechanized Branch Headquarters."
armore reg went
The changes illustrate an increasing tendency on Peiping's
part to install provincial and municipal secretaries of the
Chinese Communist Party into governorships, mayoralties and
other key positions in the regional governments, These party
secretaries are often political commissioners of the armed
forces in their areas as well, thus assuring party control
of the civil and military authorities.
He ur er revs e -
ments in western Korea and one in eastern Korea, and that they
are in the cadre stage and will begin a training cycle about
1 August with replacements.
The Far East Command,relyingon this preliminary interro-
gation and upon other intelligence reports recently received,
accepts the deactivation of the North Korean 105th Armored
Division and the activation of a number of independent armored
l1 Chinese Communist Party tightens grip on Manchuria:
Recent appointmen s and removals announce by the Peiping
regime show the Chinese Communist Party tightening its grip
over the governments of the Northeast District and the Inner
Mongolian Autonomous Region, which together constitute the
area popularly known as Manchuria.
These personnel changes have affected the governors and
vice governors of four of the six provinces of Northeast
China, and of Suiyuan Province, seat of the Inner Mongolian
Autonomous Government. They have also involved the mayors of
four major cities of the Northeast and other important func-
tionaries there and in Inner Mongolia.
28 July 52
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Improvement in Manchurian airfields reported: A recent
listing by the Air orce o air e s in anc ur a includes
189 fields,of which 80 have runways over 4,000 feet long and
Comment: In July. 1951 the Air Force listed 183 airfields
in Manc Hurii: only 64 were over 4,000 feet, and 18 were
suitable for sustained operations by jet fighters,
Comment: Non-Communist registered vessels in the China
trade averaged 620,000 gross tons a month from July 1950 to
June 19510 This figure dropped steadily in the last half of
1951 to a low in December, but there has been an upward trend
in the first four months of 1952 n The decline in western-flAg
shipping in the past year coincides'with an increase in Soviet.,
and Polish vessels, which aggregated a little over 100,000-tons
both in February and March.
trading with Communist China increased from 43 in December
1951 to 82 in April. Grbss tonnage increased during the
period,from 188,000 to 430,000 tons, as well as the size of
the ships in this trade
The num er of non- ommunjst registered merchant vessels
14.
While many of these ships are owned by British firms
and Greek cartels, the'Chinese Communists are the suspected
owners of 17 vessels, engaged only in coastwise trade,
registered by Great Britain, Panama duras.
Western shipping in China trade doubled in early 1952:
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154 Indian mission in Tibet to become Consulate General:
An agreement has been reached w3 Peiping whereby e radian
mission at Lhasa will be established as a Consulate General,.
according to an official of the Indian Ministry of External
Affairs.
The source also stated that Indian trade agents will
remain in the Tibetan towns of Yatung and Gyantse, on the
trade route between India and Tibet, and that Indian troons
are still posted along the trade route.
Comment: This agreement reflects both India's recognition
of Chinese Communist authority in Tibet and China's interest
in retaining Indian cooperation in supplying that country.
Consul was to that
the French chie o s a o the Southern Zone of Tonkin
believed the surrender without casualties and complete with
armament of two companies of Vietnam National, Army troops
16. Treason in Vietnam army unit suspected: The American 25X1
during recent operations against the Viet Minh could only be
25X1 q referred to the Vietnamese n
ooscene language ana oruere a heavy artillery barrage laid
down against a nearby village, as an example resumably, to
potential traitors. 25X1
Comment: Other sources have reported instances of
treachery among Vietnamese troops,although.not on so large a
scale.
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18. Chinese Nationalists in Burma reportedly regeiving
the War Office has obtained information that r200~bazookas,
destined for the Chinese Nationalists in northeast Burma, have
been seized by the Thai police in Bangkok after arrival there 25X1
from Singapore.
Comment. There have been numerous reports indicating
that the Chinese Nationalists in Burma have been obtaining
arms through Thailand, but this is the first indication of
shipments originating in Singapore.
19. Strength of Sheikh Abdullah's government in Kashmir:
Kashmiri Premier a b u a mace no major concessi n
affecting his present semi-autonomous position in the recent
New Delhi conference on relations between India and Indian-
held Kashmir.
This is good evidence of the strength Abdullah has deve-
loped in the past three years -- a strength not entirely to.
India's liking. It illustrates once more that Abdullah is a
potent third force, in addition to India and Pakistan, to be
considered in relation to the Kashmir issue.
NEAR EAST - AFRICA
20.
25X1
25X1
25X1'
I .-L
e agi s a mere figurehead for a grow
,
expulsion of the British by force and the establishment of
a "Communist-Moslem Brotherhood dictatorship."
violence to achieve their objectives-among which are the
10
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2.2
overlooked.
Ambassador Caffery believes) )allegations
may be exaggerated in an effort to encourage Anglo-American,
military intervention. Caffery warns, however, that the pos-
sibility of extremist influence on the new movement cannot be
Comment: An alliance between Nagib and the Moslem Brother."
hood or t e Wafd Party would offer a new threat to moderate
government and to Western interests. Any cooperation on the
;part of the small, outlawed Communist Party would be on its
initiative and wholly opportunistic.
Britain considering expanding plan for Egyptian interven-
tion: The British ore-gn Offl_ce__~is now considering the poss -
&ilaty that it may be necessary to alter plans for intervention
in Egypt if the Communists appear to be getting the upper hand,
according to the British Embassy in Washington. Previously,
the Embassy noted-, intervention was contemplated only to save
foreign lives and property. For the present, it views reports
of Communist involvement in the Egyptian coup as unfounded.
Comment: This is the first suggestion by Britain that
it might use its armed forces for more than the long-standing
plan for a limited protective mission in Cairo and Alexandria.
Reports from Cairo agree that any Communist threat is remote.
Assembly.
French opinion tending not to oppose inclusion of Tunisian
question on agenda: According to information reaching e
Israeli ,eega on, French governmental and public opinion
.tend3not to oppose inclusion of the Tunisian question on the
agenda of the forthcoming regular session of the UN General
Comment: The United States delegation in New York has
reported that similar opinions have been voiced by a high
official in the French delegation.
According to the American Ambassador in Paris, however,
at least five ministers in the Pinay cabinet support Marshal
Juin's position that France should withdraw from the United
Nations if the North African issue is forced.
French present variation in proposed dual police system
for Tangier: The French Consul General in Tangier ha.
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presented a variation of the much discussed plan for a dual.
police system for the International Zone. Under this plan,
a "neutral" chief of municipal police, directly responsible..,
to the Administrator, would have two deputies, one French
and the other British, the latter charged with matters of in-
telligence. A rural gendarmerie would be commanded by a
Spaniard, assisted by a Frenchman, and also be directly respon-
sible to the Administrator.
France, as well as Britain and Italy, does not want
Spain to have access to intelligence files which contain much
material regarding Spanish residents of Tangier.
While the representatives of France, Belgium, Britain,
and Italy agree in principle with the American position that
a. single police command should be established, they all point
out that Spain would never agree to subordinating the Spanish
commandant of gendarmerie to the "neutral" chief of police.
Comment: This French plan apparently excludes the rem
establisshment of the Mixed Intelligence Bureau, upon which
the Spanish also insist, by putting intelligence matters under
a British assistant chief of police. It also repudiates a
previous report that France was in full agreement with Spanish
proposals with regard to the establishment of a police. system
under a Spanish commandant.
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24. East German Government announces "voluntary" labor service:
The announced formation o youth labor battalions, to be known
as the "Service for Germany," is an important step in the evo-
lution of totalitarianism in East Germany. Officially the move
is designed to achieve active youth support in "Socialist re-
construction" and to prepare youth "for work and defense of the
peace."
The paramilitary aspect of the new units is emphasized by
the dominant role assumed by the Ministry of Interior and by the
utilization of badges, uniforms, and youth camps. Probably more
important, the susceptibility of East German youth to propaganda
and their vulnerability to other kinds of "compulsory volunteer"
service will be increased through the authorization granted the
Free German Youth to recruit "volunteers"
the political education of members,
and to
participate in
may
of
The possible au
also have been a
this thinly disgu
gmentation of the East Ge
n important consideration
ised forced-labor plan.
rma
in
In
n lab
the
this
or force
inauguration
connection,
25X1
East Germany has recently imposed highly discriminatory wage
adjustments and has hinted at higher individual production quotas
to meet its recently-announced, over-all objectives.
25. West Berliners may be prohibited from buying in East Berlin:25X1
The head o he East German labor unions is quoted to t e effect
that an ordinance will be issued shortly forbidding West Berlin
residents to make any purchases in East Berlin.
Comment: Such an order would work severe hardship on West
Berlin's lower-income groups, which buy much of their food and
other household items in East Berlin. The East German Government,
in an announcement on 16 July, took a step in this direction by
restricting fruit and vegetable purchases in East Berlin to holders
of ration tickets.
26. Communists take further steps affecting Berlin: Soviet and
East German authorities are taking urt er measures to increase
the self-sufficiency of East Berlin and directly harass West
Berlin. On 24 July, officials of the Reichsbahn, operated by the
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East Germans, tried to remove machines and parts from the repair
shops in the French sector of Berlin, but were stopped by French
authorities. Police have been alerted in the American sector to
stop similar efforts, as information has been received that the
Reichsbahn intends such action preparatory to setting up a repair
shop in the Soviet sector.
British authorities in Berlin received a letter from Soviet
officials on 25 July stating that the Rothensee lock on the Mit-
telland Canal would be closed on 1 August "for urgent repair,"
but not stating how long it would be closed. Closing of this
lock would hamper barge traffic from West Germany to Berlin,
forcing it to use the Elbe River route.
Highway access to Berlin is being somewhat restricted by
the slow checking of trucks, especially east-bound ones. The
truck backlog at the border had averaged 20 to 40 early this
year, but has now risen to around 80. Checking is slower when-
ever traffic becomes lighter,
27. Consultation with smaller NATO countries urged by American
officials : nite States pec a Representative raper strong -Ty
urges some form of preliminary exchange of views with the smaller
NATO countries to meet their vigorous criticism about the lack
o:f consu,ltation on international affairs of common interest
Draper considers it highly important that the United States,
France, and Britain seek the views of the other NATO countries
during the forthcoming Council discussion on Germany, and in
the event of a new Soviet note.
Both Draper and the American Ambassador in Paris stress 25X1
.that the NATO countries which are also members of the European
Defense Community tend to link Western nolicv towards Germany
with ratification of the EDC treaty.
Comment: The.proposed consultation procedure would not
allow the other NATO countries to participate in determining
policy where the United States, Britain, and France retain primary
responsibility, but would permit the smaller NATO members to ex-
press their views before these policies are finally settled.
28. France insists only additional financial aid can stave off
disaster: French Premier Pinay has in ormed mbis
~6s -or . Mxnn
That American refusal to finance military productions o -. the
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scale requested by France is a disastrous blow to the entire
French economy, and that France will now have to make drastic
revisions in its military expenditures.
Comment: Without considerable external assistance, Pinay's
stop-gap economic measures will be unable to prevent large-scale
retrenchment in the French standard of living, in investments,
in social services, in rearmament, or in the Indochina war.
29. Democratic Socialist convention in Trieste held harmful
Italian-Yugoslav negotiations: The American- Ambassador in Rome
t eves t at if the Italian Democratic Socialist Party (PSDI)
convention is held in Trieste in October, as scheduled, prospects
for an Italian-Yugoslav settlement of the Trieste issue might be
lessened. He has told Premier de Gasperi that any advantages ac-
cruing to the PSDI through this demonstration of its interest in
Trieste would be more than offset if Italian-Yugoslav relations
were thereby worsened.
De Gasperi replied that he did not think holding the con-
vention in Trieste would create trouble. He said that if he
intervened now. he would be accused of yielding to outside pres-
Comment: De Gasperi's attitude and the selection of Trieste
by the Democratic Socialists, a party normally little given to
nationalistic considerations, indicate the growing tendency of
Italians to regard Trieste as Italian territory.
30. Denmark fears increasing Soviet pressure on NATO policy:
A Foreign office official reports that the USSR Is bringing pres-
sure to bear on Denmark because of its NATO policy, particularly
with regard to airfields. He cited among other things the recent25X1
Pravda article which attacked the Danish plans for NATO naval
bases. The official expects Soviet pressure to increase.
Comment: Since early May, Danish cabinet members have been
preparing a public for the ultimate admission of Allied troops
to man NATO airfields. Many Danish officials fear, however, that
Soviet protests might force'the government to state categorically
that foreign troops will not be stationed in Denmark.
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1",01 Vad
TOP SECRET
TOP SECRET SUPPLEMENT
28 July 1952
CIA No. 49752
Copy No. 4 E
TO THE CURRENT INTELLIGENCE DIGEST
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.
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
1. Britain now recommends reply to Soviet note on Trieste:
The British Foreign Office Believes at the United to
and Britain should reply briefly to the Soviet note of 24
June denying the Soviet allegation. that the Anglo-American
agreement with Italy on administrative adjustments in Zone
A violates the Italian peace treaty.
Britain considers it is advisable to answer Soviet
notes for which there is an effective reply, and believes
that the proposed note will not evoke unfavorable r
from Italy or Yugoslavia.
2. Portugal threatens to abandon NATO unless basic defense
needs are me : The US Ambassador reports that ortugal_"
informed A officials on 3 July that it would be uexense-
less unless it had five jet fighter squadrons, and that it
would prefer to abandon NATO rather than submit to a re-
duction of this figure to three, as now planned by the.
United States.
The Ambassador adds that in order to satisfy minimum
Portuguese demands the five-squadron program may have to
be restored and two additional squadrons provided for the
Azores, since Lisbon does not wish to assign the defense of
these islands to a foreign country.
Comment: This is the first official confirmation of pre-
vious reports that the Portuguese have contemplated the pos-
sibility of withdrawing from NATO unless the Western powers
meet what they feel are the security needs of the Iberian
1 28 July 52
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2 28 July 52
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