CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100280001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 22
• Document Creation Date: December 12, 2016
• Document Release Date: June 26, 2002
• Sequence Number: 1
• Publication Date: August 4, 1952
• Content Type: REPORT

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4 August 1952
OCI No. 6454
Copy No, 43 0
2
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.
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECSO 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
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20 Western Ukrainians hold few local jobs.- A July editorial
in Ra yans a rainy cr cize a o asts of Western Ukraine
for not app6i irng oca1 people to government and party posts a
The article notes that the party committees continue to re-
quest experienced workers from the higher party authorities
instead of "patiently training" local personnel. "In Drogabych
Oblast there are only six local persons serving as Secretaries
of Executive Committees of town and rayon councils, only nine
local deputy chairmen, and many posts are not occupied at all."
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Comment: It is evident that party and government posts
in the--We-stern. Ukraine are still being staffed by imported per-
sonnel from other more reliable areas, because apathy towards
Communist indoctrination and a reluctance to serve in any
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official capacity still exist among the people in the Western
Ukraine,
3. Czech Government denounces payments in kind in effort to
'tighten control over distribution: Premier n onin apotoc y
has recently denounced payments in kind which are still being
made as bonuses to workers in certain consumer goods indus-
tries as apt to disrupt the rationing system and as unfair to
workers in industries in which such bonuses are not given.
Comment: The Czech Government is attempting by all means
to maintain. strict control of the distribution of scarce con-
sumer goods so that it can utilize them most effectively as a
political weapon.
4. Finnish Foreign minister reportedly considering resigna-
tion: The American Legation in Helsinki reports that Foreign
Minister Sakari Tuomioja?s wife has intimated that he intends
to resign his cabinet position because the combined jobs of
Foreign Minister and Director of the Bank of Finland are too
heavy a load, The Bank reportedly wishes to have him back full
time in view of the unfavorable trend in foreign trade and the
probable shift from inflationary to deflationary pressures in
the Finnish economy. 25X1
Comment: Tuomioja, a political independent, is highly
respec a a,n Finnish business and nanking circles, He is con-
sidered to have a pro-Western orientation even though, like
his predecessor in the Foreign Ministry, Ake Gartz, he is a
member of the Board of Directors of the Finland-Soviet Union
Society.
In Naming a successor, Prime Minister Kekkonen would be
guided by the necessity to appoint an individual who would not
arouse the suspicion or distrust of the Soviet Union.
Hungarian
factory leadership
reproved for preventing work-
ers from taking vacations: T e Hungarian. trade union newspaper
can Ju y attacked wor committees, social insurance councils
and trade unions for poor control work that resulted in workers
losing the benefit of their vacations. Instead of taking a
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rest, some miners reportedly cultivated their own farms,
others took temporary. employment, and some factory hands re-
mained at their jobs during vacation periods in order to ful-
fill the plan. The newspaper reproved factory leaders who put
plan fulfillment above the provisions of the labor code re-
quiring vacations with pay.
Comment: This article shows unusual solicitude for the
welfare Hungarian workers, who usually are exhorted to la-
bor longer hours on Stakhanovite projects. It is possible
that the trade union leadership is showing signs of opposition
to the excessive demands made upon labor. However, the article
simply may be a sop thrown to the workers. Certainly the party
newspaper of the same day echoed the usual line, asking workers
to fan "the flame of labor competitions" in honor of Constitu-
tion Day on 20 August.
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7a Poles contemplate a public trial for General Bor-Komorow-
ski:A Po s Government broadcast announcing a commemoration
ceremony on 1 August for those killed in the Bor uprising de-
manded a public trial of General Bor and other underground
leaders. Josef Rokicki's book "Lights and Shadows" is quoted
to condemn General Bor. 25X1
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Comment: The Communists consistently have called the
famous Warsaw Rising of August-September 1944 the "Bor Up-
rising" in an attempt to place the blame for the destruction
of Warsaw and the annihilation of many thousands of its in-
habitants on General Bor-Komorowski. These attempts have not
proved successful, however, in removing the impression which
still persists in Poland that Stalin and General Rokossowski's
units of the Red Army were responsible for the catastrophe,
by their refusal to send help until it was too late to pre-
vent the brutal suppression of the rising by the Germans.
The fact that a public trial is contemplated for General
Bor and his Home Army associates suggests that the belief is
still strong among the Polish people that the Russians were
responsible, and that the Polish Communist leaders consider it
necessary to take unusual measures to counteract it.
Correction: The last sentence of Item 8, page 5, in the
Current i~n.fel1igence Digest of 1 August, should read: "It is
not unlikely, therefore, that discharged service men are being 25X1
alrected to essential industries."
Comment: Marshal Tito contends that the USSR, aided and
abetted y "reactionary" enemies in the West, is attempting
through fabrications and other devious means to isolate Yugo-
slavia from the West.
The relaxation of Soviet-Satellite border pressures on
the Yugoslav frontier, the appearance of stories in the Western
press questioning the authenticity of the Cominform break, And
conciliatory treatment accorded to Yugoslavia at the June ses-
sion of the Danubian Commission, lend some credence to Tito's
theory,
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12, Syngman
re-election
Korean
cured: yngman ee s re-election on August for a four-year
term is a foregone conclusion, according to US Ambassador
Muccio. His controlling position over the majority of social
and patriotic organizations throughout South Korea, as well as
the support of the government's propaganda machine, will as-
sure Rhee an overwhelming majority.
A fairly sizeable protest vote may develop, nevertheless,
with the majority of these votes going to Cho Pong-am, former
National Assembly vice-speaker. Cho has waged the most .
spirited campaign against Rhee while the two remaining presi-
dential hopefuls have done little more than advance initial
declarations of principles to the press.
In the important vice presidential race no less than
nine candidates are registered with Yi Pom-sok, widely con-
sidered South Korea's second ranking politico and rated as
the pre-election favorite. Yi's control of the Liberal
Party and his influence in the Taehan Youth Corps give him
a tremendous advantage over the other vice presidential
aspirants. Stumping the countryside extensively, his major
campaign technique has been to sew up the unanimous support
of rural organizations.
It has become increasingly clear, however, that Prime
Minister Chang Taek-sang and the new Home Minister, Kim
Tae-son--undoubtedly under Rhee's instructions--have been
diligently trying to stop Yi's election, It appeared to
Embassy officials on 1 August, however, that only a public
disavowal of Yi by the President could prevent Yi from win-
ning a plurality of the vice presidential votes.
13. French official reports on Chinese economy and morale:
The former French Consul General at Shanghai, w o -e na
in late July, sees "no hope" for foreign trade and business
interests in China. He states that the Communist administra-
tion is effective, but that commerce and industry are "com-
pletely ruined."
He also reports that the Chinese populace is apathetic
toward the regime and toward the Korean conflict in particu-
lar. F7 I
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Comment: There is no evidence that the strength of the
Peiping regime has been seriously reduced by the current
economic depression. The depression is acute among private
businessmen, but agricultural production and the output of
state-operated heavy industries are at comparatively high
levels.
Other sources have also reported popular apathy in
China recently.
14. Portugal willing to bargain with Peiping on Macao: The
American massy in Lisbon reports-that Foreign Ministry
officials fear that Chinese attacks on Macao this week have
been directed from Peiping, and are directly related to re-
strictions on the Macao-China trade. A Foreign Ministry
spokesman intimated that Portugal would be "quite willing"
to make trade concessions in order to retain Macao. He asked
for "understanding" on the part of the United States.
Meanwhile, the Lisbon government has instructed Macao
authorities to avoid incidents but to fight back when
attacked.
Comment: The Portuguese Government has firmly resisted
American pressure to halt all strategic exports to China
because of the "very serious consequences" this would have for
Macao. Accordingly, it has applied for presidential exception
from the provisions of the Battle Act for a select number of
strategic goods.
15, Chinese resume food shipments to Macao: 25X1
I Ia ~qu~ier on me
crana-M cao border as of ugust. No information has been
received on the progress of negotiations between the Portu-
guese and the Chinese Communists, but food is again coming
into the China and prices'are dropping. 25X1
Comment: I contradicting 25X1
earlier t s, e on 30 July that food shipments from
China to Macao had been stopped.
Although the resumption of food shipments on 1 August
relaxes Communist pressure on Macao, the threat of a new
embargo will assure Portuguese complaisance in negotiations
with the Chinese. Macao depends on China for most of its
food, and the Communists could starve the colony into surrender.
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16, Viet Minh re orted weakening in South Vietnam: Desertions
f k
l
o
ey personne
from e Minh security units in South Vietnam
are increasing, F- I
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25X1C I Deserters are going into French service or into hiding.
In the western sector of South Vietnam, the source states,
serious resistance to French operations is impossible because
of the weariness and indifference Viet Minh troops.
Comment: Actually there has recently been an increase
in Viet nh guerrilla warfare in this sector, However, if
this report is true, the French may soon be able to shift
Some forces north to the Tonkin delta.
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17, USSR-Indonesian trade discussions conducted in Bangkok:
Soviet Embassy officials have had discussions with the Indo-
nesian Minister and his commercial staff looking to the
signing of a barter trade agreement. The USSR reportedly
offered capital goods in exchange for rubber, tin, and
coconut oil and allegedly is sending trucks and passenger
cars to Indonesia for demonstration. Apparently no
under-
standing has yet been reached. 25X1
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mission are unknown.
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orce o ree regiments training in
cently entered northern Burma. Their exact 1
Burma: Tfie American rmy ac e n Bangkok as een old
1 :1 that 1,000 Burmese Communist troops,
18. Chinese-trained Burmese Communists reportedly enter
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These reports are unconfirmed. A military training
program for unknown numbers of Burmese Communists and
Kachins has been under way in China for some time.
19, Burmese Defense Minister renews offer to repatriate 25X1C
Chinese
?~_,......B.S 2b)1
1as Informed the American Embassy in Rangoon that Burmese
Defense Minister Ba Swe is renewing his offer to Taipei to
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repatriate Chinese Nationalist troops through Rangoon, and in-
tends to begin military operations against the Nationalists
in the fall unless they are evacuated.
The Embassy comments that Ba Swe is apparently sincere,
but that his timetable appears to be optimistic and the
repatriation of such a large number of troops who have no
effective leadership seems impractical. Nevertheless, the
Embassy feels that a solution is urgent because an open con-
flict between Burmese forces and the Nationalists would
brio serious repercussions for local anti-Communist Chinese.
Comment: Burmese Commander in Chief Ne Win'recently
announcedat he was planning an all-out campaign against
the Nationalists, who number 7,000 to 10,000. A concentrated
Burmese attack on the Nationalists would greatly benefit the
Communist and Karen insurgents.
20. Communist military activity in Malaya apparently de-
creasing: During the week ending 24 July, Malayan police
c asua es and the total number of Communist-inspired inci-
dents were the lowest in 19 months, This fact, coupled with
low civilian casualties, reflects a continued trend toward
riot activity.
Comment: A document captured during the spring of
1952 a m ed the deterioration of the Communist position in
Malaya and directed a reduction in military activity and
the indoctrination of a wider segment of the population.
NEAR EAST - AFRICA
21. Defection of Liberal deput eliminates Greek Government
majority: The par amen ary majority o the LiberaI-011C
coa on disappeared on 30 July with the resignation from
the party of a Liberal deputy from north-central Greece.
The Liberal-EPEK coalition now controls 129 seats, exactly
half of the membership of parliament.
Former Prime Minister and Greek Rally supporter Papan-
dreou, who reportedly engineered the defection, told the
US Embassy that another deputy would leave the Liberal Party
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within a few days. In Papandreou's opinion, this will force
the King to dissolve parliament or compel the government to
rely on the eight Communist-controlled EDA deputies in order
to remain in office. 25X1
Comment: Unable to vote the government out of office,
the opposition Greek Rally is trying to bring about its fall
through defections.
The King is strongly opposed to Marshal Papagos, the
probable victor in new elections, and may prefer to rely
on the EDA deputies rather than dissolve parliament.
22. Maher reportedly threatened to resign over question of
Egyptian, rmy contr. : Egyptian rime M n s er All Maher
reportedly threatened to resign on 30 July over the army's
insistence that two of its candidates be appointed to
cabinet posts. As a compromise, however, one of the army's
candidates was made chairman of the new "Purification Com-
mittee," and the other, Colonel Mohanna, became Minister
of Communications.
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]both Maher and the Army
Committee behind General Nagib have approved plans for
purges in all political parties, and that the Army Committee
even considered executing former Prime er Nahas, a
Wafdist.
Comment: This and other recent reports strengthen
the impression that the largely unknown army group which
forced Farouk's abdication continues to be the determining
factor in the present situation. Any action against the Wafd
is certain to arouse determined opposition from that party.
Colonel Mohanna reportedly held his cabinet post only
three days. His appointment appears to have been an army
maneuver to "legalize" his position on the Regency Council.
of the Bey would remove 1children from the
Residency officials in Tunisia consider alternate drastic
measures: French es ency officials are cons ering alter-
ative drastic measures to be applied if the Bey continues to
block the proposed administrative reorganization. Deposition
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Palace entourage, but such action would be a last resort be-
cause of the probable Tunisian reaction and world opinion.
The alternative measure would be tol the Bey 25X1
I land appoint a Council of Regency. The French are not
en us astic about this possibility since more problems
might be created than solved by the elderly triumvirate of
princes who would have to be appointed.
The Residency is also extremely concerned at the virtual
standstill of administrative machinery, caused by the Bey's
refusal to put his seal orl routine decrees. This situation
is growing more serious daily because the temporary budget
under which the administration operates expires on 1 October.
The American Consul General believes that a prolonged
stalemate would increase the probability that the French
would take one of the alternatives mentioned.
D
Comment: The Tunisians would not in the present Bey's
lifet mmee accept a successor.
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244 East German Alert Police now reported to number 82 0000
American military authorities n Germany estimate that continued
recruiting has raised the strength of the East German para-
military Alert Police from 70,000 on 1 June to at least 82,000
by 30 July. Reportedly, individuals are now being recruited
between the ages of 16 and 30, the bfsic trainipg period has been
extended from four to six weeks, and theirecruiting campaign has
procured about 34,000 men since 1 April. Recruiting is expected
to continue at the Same rate.
While each of the 24 Alert Police units consists now of
about 3,000 officers and men, the Police must undergo extensive
training before it attains any significant offensive capability.
25.
Fear of
military service
of East German refugees- The recent mass flight of refugees into
Est Berlin was tout ed off by widespread rumors, that the Berlin
sector crossing points would be closed on 1 August and by fear of
induction into the East German labor and military organizations.
Refugees now average 1,000 a day, five times the daily average
last spring.
Communist sensitivity to this exodus has been demonstrated
by the modification of the propaganda slogans for the rally of
Communist youth in East Berlin on 3 August. When the rally was
first announced on 19 July, the appeals for youth participation
emphasized the "overthrow the Reuter government" theme. This
theme was altered on 31 July to "eliminate" the Berlin refugee
settlements,
near future.
American officials believe that the east and
west sectors of the city will be completely separated in the
The West Berlin police and the 12,000 Allied troops in the
city should be able to handle any incursions from East Berlin.
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26. Closing of Allied autobahn to Berlin expected: Both the
West German Transport Ministry and( American officials now believe
that the Helmstedt-Berlin autobahn will probably be closed for
"repairs" around 1 September. Cranes and repair materials are
being assembled near the Elbe River bridge, and a German truck
driver was recentl told by a Russian officer that the road would
soon be closed.
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Comment: Although the closing of the Helmstedt autobahn
wouldoc all highway access to Berlin by Allied natiols,
three roads would still be available for German use.
This move would come at a time when canal traffic to West
Berlin is expected to be severely restricted because of "repairs"
to the main canal and low water in the secondary canal. Soviet
authorities have not yet replied to the Allied request for five
additional daily trains to Berlin to compensate for the closing
of the main canal.
27 a
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28 o French "anti-Communist" peace movement seeking British and
American labor support: Leon Jouhaux, the prominent rent.
oc a st trade union leader and head of the recently formed
"anti-Communist" peace movement, Fighting Democracy, plans to
visit Great Britain and the United States in September in order
to solicit labor backing, which he considers indispensable to
the new movement's success. Reportedly he has the support of
President Auriol and eight Cabinet Ministers and is scheduled to
meet American labor leaders at a dinner in Washington arranged by
Ambaspador Bonnet.
According to Louis Dolivet, a promoter of Fighting Democracy
who gave this information to American Embassy officials, Jouhaux
intends to block the circulation of a left-wing manifesto against
the German contractual agreement, and hopes with the aid of
British labor to organize demonstrations against oming
World Peace Congress in Vienna. 25X1
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Comment: In mid-July the Embassy showed considerable
skepticism:abcut the effectiveness of Fighting Democracy as an
anti-Communist force.
American officials in Bonn reported on 24 July that, ac-
cording to a German Socialist leader, AF of L representatives
in Paris intend to attack Fighting Democracy and Jouhaux for his
"collaboration" with it.
29. France's arguments for trade treaty with Poland deviate from
3.n ention to maintain trade ties with Poland partly for political
considerations is not consistent with the agreement in COCOM to
judge each trade treaty on its strategic significance and economic
advantages. He predicts that France?s position will probably be
upheld by most of the COCOM countries, and adds that COCOM con-
currence in French arguments for the export of List I items may
lead to pressure for greater flexibility in COCOM reviews of other
trade agreements.
COCOM principles: m assador nn in Par s states t it F inc Iss
The Ambassador points out that the proposed French-Polish
agreement is more advantageous to Poland than last year's.
Furthermore, France's argument that it should maintain access to
Polish coal for emergencies is not valid, since previous Polish
behaviour suggests that coal deliveries would probably be cur-
tailed in emergencies rather than increased. The Ambassador
states that a United States offer to be an alternate source of
the French argument.
supply in the event of an emergency would reduce the force of
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30. Austrian Socialists charge nationalized bank buys political
support: The ustr an Socialist Party is
25X1C Preparing a "relentless campaign" against the Union of
Independents (VdU) on the basis of evidence that the VdU is being
subsidized by the Creditanstalt, Austria's nationalized, but
People's Party-dominated, banks
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Comment: A strong Socialist attack upon the VdU involves
the danger of promoting VdU?People's Party relations with cor-
responding hazards for the Socialist-People's Party coalition.
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Although the People's Party remains publicly aloof from the VdU,
some People's Party leaders maintain
contact with the VdU and have taken steps to preserve the VdU as
a functioning party.
The People's Party and the VdU recently defeated a Socialist
resolution calling for reforms in Austria's two large nationalized
banks, both of which have been accused of illegal diversions of
foreign exchange, including ECA dollars. The VdUQs support of the
People's Party was considered somewhat unusual at the time in view
of the former's frequent allegations that the latter is the party
of corruption.
31. Belgian Prime Minister disturbed by controversy over con-
script on per o : T e eig an Prime minister 1ears t hit recent
imonstrat o~ ns against retention of the 24-month conscription
period are wrecking army morale and can "definitely lead to a
general strike," American officials in Brussels believe that the
gravity of the situation is indicated by the Prime Minister's
asking them to urge Socialist leaders to cease agitating the issue.
The Prime Minister states that unless the other EDC countries
adopt a 24-month military service period before the Belgian Army
maneuvers end in late September, Belg ium will reduce its 24-month
period,
Comment: Since there is no possibility that France and Italy
will 'nose their 18-month conscription periods at this time,
the issue for the Belgian Government has become one of announcing
the reduction at such a time as to avoid further popular disorders
and to minimize the cabinet's loss of prestige.
The 24-hour national protest strike for 9 August, announced
by the Socialist Federation of Labor on 2 August, is unlikely to
have effects much more serious than those of the sporadic token
strikes which have already occurred.
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330 Peron reportedly desires to resign; army-labor clash seen
likely: Presiden
aasires to resign,
rgentine
he
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An army coup is expected in 15 to 30 days when crowds viewing
Senora de Peron's body have cleared the capital. Brigadier General
FLlomeno Velazco, former Chief of Federal Police, has reportedly
been designated as Peron's successor.
The US Naval Attache in Buenos Aires comments that a clash
between the army and organized labor seems likely, but Peron's
desire to resign seems doubtful.
25X1
Comment: There are no other indications that Peron desires
to res although he probably anticipates increasing difficulty
in preventing a clash between labor and the army, which objects
to labor's powerful political role.
Little is known of General Velazco's activities during the
past three years, although they have included governorship of the
Province of Corrientes. He has, however, apparently maintained
contact with some of the retired army officers involved in the
September 1951 abortive revolt.
34. Guatemala buying munitions in Europe: Hubert F. Julian ar-
rived In Geneva on- -30 July with over ,000 from the Guatemalan
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Governments The money, which will be put in a special account
in Geneva by the Rexim Company, will be drawn on as munitions
are purchased. Julian is now regarded as the chief buyer for
the Guatemalan Government.
Comment: The Guatemalan Army has long felt the need for
25X1
more equipment, but presumably feels it politically inexpedient
to request US military aide Some army leaders are seriously
concerned over the position of the army vis a vis Communist-
dominated organized labor which is reportedly well armed.
The army has dealt with Julian, a US citizen long engaged
in international arms deals, several times in the past two years.
When Julian was in Guatemala last May, he reportedly signed a
contract for $200,000 worth of arms and ammunition with the
Guatemalan Minister of Defense.
Rexim is an international trading company with headquarters
in Switzerland. It reportedly acquires munitions from war surplus
stocks in Italy and from Spain.
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TOP SECRET
4 August 1952
CIA No. 49762
Copy No, 4 9
TOP SECRET SUPPLEMENT
TO THE 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 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.
L.,
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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,
1. Mao Tse-tung re ortedl 0 25X1
p y pposed to new offensive in Korea.
Mao Tse- ung is oppose to a aunc in a new ammunis
offensive in Korea
's icy was to "
down" American troops in Korea wit MminimumlChinese losses
A request last February from the commander of Chinese forces 25X1
in Korea, for five additional armored divisions and 500 more
aircraft, was rejected by-Mao on the above grounds, accord-
ing_j
Comment. Although this information supposedly reflects
:nfot clear whether It is tnus
ailed to re
o
t th
p
r
ese develop-
ments at the time, or invented them for conversational pur-
poses. or has, been
In any case, Mao Tse-tung?s opposition to a new offensive
in Korea has been inferred from the fact that no such offensive
has been launched.
The Chinese commander in Korea may at one time have
sought a southward commitment of Communist air power, but it
is improbable that he would seek a specific number of air-
craft. The Korean terrain does not permit the deployment of
an armored division as such.
2. Bao Dai?s income revealed as $6,000,000 a year- On the
basis o in ormation from o ci.a sources, Ambassador Heath
estimates that Bao Dai's annual cost to Vietnam is roughly
$6,000,000, or about six percent of the national revenue.
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over
Comment.- Considerable information is available on the
genera sagreement between the Defense Minister and President
Sukarno. The failure to improve internal security and the de-
terioration of conditions in West Java have increased senti-
ment for an authoritarian government led by Sukarno.
In addition to his normal allowances, Bao Dai recently requested
$450,000 for a trip to Paris.
Letourneau,who contends that Bao Dai is indispensable, at
least for the time being, has not pressed him to economize, a -
arentlyfearin that he would threaten to quit. 25X1
Comment- Since Bao Dai's return to Indochina in 1949, he
has s owniimself more concerned with personal pleasure than
with affairs of state, despite the heavy financial burdens of
the war which are borne almost entirely by France and the United
States. He has exercised his broad, though ill-defined powers,
in a desultory and irresponsible fashion and has opposed the
establishment of representative government.
There is little evidence that Bao Dai's permanent with-
drawal from Indochina would be regretted by the 'Vietnamese.
3. Indonesian President and Defense Minister in conflict 25X1C
Commun.-ists n army:
told Ambassador Cochran that
25X1C numerous Communists have infiltrated the army, but that the
Defense Minister, the Sultan of Jogjakarta, was resisting
President Sukarno's efforts to purge them. F_ I 25X1C
25X1C I the "Cabinet situation was tense,"and that the
Defense Minister might rest n and cause the government's fall.
25X1 C
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