CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200050001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: June 1, 2004
• Sequence Number: 1
• Publication Date: August 14, 1952
• Content Type: REPORT

Approved For Relse 2004/07/08: CIA-RDP79T01146A04100050001-4
SECRET
14 August 1952
OCI No. 6462
Copy No. 2 `, 5
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.
Army, USAF and State Department
review(s) completed.
SECRET
Approved For Release 2 6A001200050001-4
25X1
25X1
 Approved For Reuse 2004/07/08: CIA-RDP79T01146AOW00050001-4
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. Extraordinary session of Hungarian parliament scheduled
to mee o ay: The Hungarian Communist Party newspaper,
announced on 12 August that an extraordinary session of par-
liament would convene on the 14th, but did not indicate its
agenda. -This is the first extraordinary session of the
assembly since the introduction of the constitution in 1949
and is being convened after only two days' notice. According
to the US Legation in Budapest, "some spectacular announcement"
in connection with Constitution Day on 20 August would be
logical.
Comment: Many rumors and little information are current
on the forthcoming session. Parliament last met on 28 May and
normally would not meet again until the end of the year.
2. Polish authorities apparently encountering resistance to
compulsory grain d a liveries: Numerous shortcomings in the
compulsory grain delivery program in Poland have been reported
from various sectors, according to a Polish Communist Party
newspaper editorial on 13 August. The editorial blames the
kulaks and the mechanical setting up of grain deliveries, by
which some farms are ordered to deliver grain too early and
others too late. Presidiums of the district and rural national
councils are called upon to give rigid control and supervision
to the program, preparing reports on those who discharge their
duties and those who do not.
The national council in Poznan Province is singled out to 25X1
"a considerable number of kulaks who spare no efforts to dis-
organize and slow down the harvesting work,"
SECRET
1 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001-4
 Approved For Rose 2004/07/08: CIA-RDP79T01146AOQ&200050001-4
Comment: The Polish Government is apparently encounter-
ing peas- resistance to compulsory grain collections in
certain areas in connection with the current harvest. Despite
similar difficulties last year, however, the government managed
to achieve approximately 95 percent of its goal in grain collec-
tions.
SECRET
2 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146A001200050001-4
 Approved For Rise 2004/07/08: CIA-RDP79T01146AQ&200050001-4
3. B-29 pursued by jets to within 200 miles of Tokyo: An
American B-29 on a reconnaissance mission over the ea of
Japan on the night of 12 August was pursued over a five-hour
period by "from two to 20" unidentified jet aircraft. Contact
was terminated just north of Sado Island, some 20 miles off
the northwestern coast of central Honshu, Japan's main island.
Comment: This represents the farthest that United States
reconnaissance aircraft have been followed over the Sea of
Japan. The break-off area is about 200 miles west of Tokyo
and 400 miles southeast of Vladivostok.
On 6 August Soviet jets overflew the northwestern portion
of the island of Hokkaido near Wakkanai in pursuit of a B-29.
On 3 August a B-29 was turned back by Soviet jet interceptors
in the Hokkaido area.
4. Chinese Communists expand security network: The Peiping
regime's n stry of Public Security has issue provisional
regulations governing "security defense committees" through-
out China. The regulations provide for the establishment of
committees of three to eleven members in government organiza-
tions, factories, businesses and schools in every city, and
in administrative units in every rural village.
The committees are to assist government security organs
in combatting counterrevolutionary activity and thought. They
are authorized to turn over to government security organs
counterrevolutionaries caught in the act, but may not seize
persons who are merely suspected of improper behavior or
desires.
Comment: The establishment of these committees throughout
China expands Peiping's security network by several million
persons and implicates community leaders everywhere in the
government's security system. The possibility of both an
effective "counterrevolutionary" effort and an effective popu-
lar reaction to the suppression of activities is reduced. These
committees in some respects parallel the people's militia,
3 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001-4
 Approved For Rel 2004/07/08: CIA-RDP79T01146A004a0050001-4
SECRET
claimed to total over ten million, which assist the regular
armed forces tnroughout China.
5? Cotton imports now more important than rubber to Peiping:
Accordlrig - 4,11V om av o inP n -
`rrILllw-se communists are giving cotto
~Cdn Llnes' the
h
n s
ipments
priority over
rubber. Therefore the amount of
rubber to be
the Polish vessel Kilinski, due at Colombo aboutc1 Octu by
ober,_
will depend on how much cotton was available at Karachi the
ship's previous port of call
Comment: Heavy Chinese buying of Pakistani cotton this
year aFUests to the importance of these imports to Peiping.
The recently reported conclusion of a contract to buy 5,000
tons of rubber from Indonesia may have temporarily reduced
China's interest in Ceylon rubber.
Reduced terrorist activity in Malaya analyzed: In reply
to a a e epar men nquiry on a rumore c ange n Communist
tactics in Southeast Asia, the American Consul in Singapore
stated that the Malayan Races Liberation Army and its civilian
auxiliary, the Min Yuen, are provoking fewer terrorist inci-
dents than they did six months ago, and that the Min Yuen is
attempting to expand its influence and membership. Whether
this development is the result of a voluntary change in
tactics or of the effectiveness of the British anti-guerrilla
campaign is not known. If tactics are indeed changing, there
is no evidence that the shift is based upon orders received
from Peiping or Moscow I
Comment: A document Purportedly issued by the Selangor
State omm tee of the Malayan Communist Party in January
admitted that the terrorists had been hurt by some of the
government's policies. This document indicated a
possible
reduction of military activity and increased emphasis ondevel-
oping the Min Yuen.
It is impossible to judge at this time whether tactical
shifts adopted by weak Communist movements outside the East
Asian mainland will be adopted by any of the strong Communist
movements in Malaya, Burma, or Indochina. "Advice" from
Moscow or Peiping on this question could easily be trans-
mitted through the Chinese Communist organization in Malaya.
SECRET
4 14 Au 52
Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001 F
-
25X1
25X1
 Approved For Rel&we 2004/07/08: CIA-RDP79T01146A00,0050001-4
7. State of emergency declared in Sarawak: The government
of the ritis co ony of Sarawak declared a state of emergency
in and around the capital city of Kuching on 9 August following
Communist-inspired bandit activity there. A small armed gang,
composed entirely of Chinese, is being pursued by elements of
the colony's small police force. British officials expressed
the belief that Communist activities in Sarawak are directed
from the Pontianak area of Indonesian Borneo about 100 mil s
south of Kuching. 25X1
Comment: Communist activity in Sarawak, one of three
British colonies on the northwest coast of Borneo, flared up
briefly at the beginning of the Korean conflict. It was
limited chiefly to the Chinese schools, two Chinese newspapers,
and workers in the Miri oil field. No previous instances
of violence have been ascribed to Communist instigation.
There have been unconfirmed reports of a force of 500
well-armed Chinese operating in small parties in an area of 25X1
Indonesian Borneo adjacent to Sarawak.
5 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146A001200050001-4
 Approved For Rele 2004/07/08: CIA-RDP79T01146A09W00050001-4
10. Finance Minister fears for financial stability of India:
In private conversations with Ambassador How es9 Finance
Minister Deshmukh expressed grave concern about India's finan-
cial situation. Deshmukh stated that he was under increasing
pressure to follow unsound policies in order to insure comple-
tion.of development projects financed under India's five-year
plan. He also said that at the end of the plan India's
sterling balances probably would be exhausted.
Deshmukh added that if American aid was not adequate, the
situation would become "impossible." He repeatedly intimated
that the bulk of American aid should be of such nature as to
ease the internal financial pressures that are the worst hind-
rances to India's development,
Comment: India's financial position has been precarious
for some years, and its sterling balances have been maintained
only by rigid import-export controls which have hindered
industrial and agricultural development. Neither local nor
foreign capital has been eager to invest heavily in Indian
enterprises. Deshmukhnay therefore have been pointing up an
immediately critical situation.
On the other hand, it is possible that Deshmukh's plea
for "adequate" American aid was made merely in the hope of
restoring the sums recently cut out of next year's American
aid program for India.
25X1
25X1
6 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146A001200050001-4
 Approved For Relapse 2004/07/08: CIA-RDP79T01146AOQ.b400050001-4
NEAR EAST - AFRICA-
11. Greek Government coalition faces collapse: Two more
Greek. LIberal arty deputies have announced that they will
no longer support the EPEK-Liberal coalition government,
although they have not yet resigned from the party. The
government's parliamentary support is now reduced to 127, plus
three independent leftists.
Papandreou, a Papagos supporter, told the US Embassy that
he intended to call for the government to resign. A caretaker
government is reportedly being considered. 25X1
Comment: The present coalition government is actually no
longer control because 130 votes constitute a majority. The
future existence of the government now rests with a few leftists
and the eight Communist EDA party deputies. The formation of
a caretaker government under a neutral prime minister has been
considered on occasion during the past several months.
12. "American labor" subsidies to Tunisians irritate French:
A high French official has informed the American massy in
Paris that alleged subsidies to Tunisian nationalist labor
elements by "American labor circles" have been a continuing
cause of French resentment and suspicion of American intentions
in Tunisia. He hoped that the Tunisian question could be
handled in the United Nations without embittering US-French
relations.
Comment: French Residency officials in Tunis have
charges at an important "American labor group" has assured
nationalist labor leader Farhat Hached that it can pressure
the American Government into supporting the Tunisians in the
United Nations.
The French have been perennially jealous of American
influence and prestige among the natives of North Africa, and
the French Government has been under pressure from vested
interests to prevent, Americans from obtaining markets there.
25X1
7 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001-4
 25X1 Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001-4
Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001-4
 Approved For Rase 2004/07/08 : CIA-RDP79T01146111'1200050001-4
SECRET
15. East German reorganization plans extend to judiciary:
Legis a ion revamp ng the East German judicial system Is re-
liably reported to he it nreparation and is expected to be-
come effective by 1 September. Greater emphasis will report-
edly be placed upon lay judges who at the lower levels will
directly elected or named by the district assemblies.
I I
Comment: Although details of the proposed reorganization
are lacking, the election of judges in a country where single-
party dominance is rapidly advancing would appear to guarantee
the political acceptability of judicial findings.
16. East Germans reportedly assign long-term prisoners to
Ruegen Island projects: To provide sufficient prisoners to
carry out construction projects on Ruegen Island off the East
German north coast, the East German People?s Police has report-
edly been compelled to assign prisoners who still have over
five years to serve or whose sentences were imposed by Soviet
military tribunals. Prisoners in these categories were pre-
viously exempted from such assignments because of the oppor-
tunities in such labor camps for escape.
25X1
25X1
25X1
9 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146AO01200050001-4
 Approved Forrjlease 2004/07/08 : CIA-RDP79T011464#01200050001-4
SECRET
Comment: There is little information available regard-
ing the nature of the Ruegen Island projects, although the
establishment of prison labor camps on the island has been
associated with the construction of railroads. Ruegen has
long been consiaered an area of military activity. The East
German Sea Police have a base there.
17. Allied request for additional trains to Berlin refused:
East German railroad authorities Have Informed West erman
transport officials that heavy crop traffic on the Berlin-
Marienborn train route precludes any increase in the number
of trains to Berlin.
The US High Commissioner's office in Bonn states that
this excuse is "unconvincing," and asserts that other routes
are available for traffic between West Germany and Berlin.
Comment: The Allies had asked the Soviet authorities
for five additional daily trains to Berlin to compensate for
the 1 August closing of the Rothensee canal lock. The request
was referred to the East German authorities.
18. Paris Embassy comments on possible cut in French defense
program: American Embassy in Pari?. reports that the im-
pression is growing in France that the United States now
views the defense effort as less urgent and .that hence the
French can relax the pace of rearmament. The Embassy sees
a real danger that the decisions of the government and parlia-
ment may be influenced by these sentiments.
The vote on the ratification of the EDC treaty is still
expected to be close. Because of this and the government's
failure to obtain additional American financing for its de-
fense program, the Embassy believes that the government's dif-
ficulties will be Increased when parliament is presented with
a weakened military production program, particularly in view
of Germany's growing potential. 25X1
10 14 Aug 52
Approved For Release 2004/07/08 : CIA-RDP79T01146A001200050001-4