CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200220001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 16, 2016
• Document Release Date: December 21, 2004
• Sequence Number: 1
• Publication Date: September 9, 1952
• Content Type: REPORT

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9 September 1952
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OCI No. 8870
Copy No.
2`J
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
DIA, USAF and DOS review(s) completed.
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, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
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EASTERN EUROPE
20 Bulgarian agricultural production impaired by drought, The
Bulgarian newspaper Narodna MIadezh published an editorial on 4
September drawing the attention o Bulgarian farmers to the great
importance of insuring sufficient cattle fodder after "the prolonged
drought which has had unfavorable re a ions on fodder production
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Comment: The institution of water and power restrictions in
Sofia during August Indicated that Bulgaria was suffering from a
particularly dry season. Numerous reports of drought conditions
in Hungary, Rumania, and Yugoslavia were received during July
and August.
3. Rumanians reported building anti-aircraft gun emplacements
around Bucharest: A report rom Rumania states t at 20 rein ,reed
concrete an i-a rcraft gun emplacements are under construction
around Bucharest,- including one at Chitila and one at Rosu, two
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suburbs just northwest and west of the Rumanian capital. 25X1
In commenting on this report, the American Military Attache
in Bucharest states that he has just discovered an anti-aircraft
battery near Mogosoaia and believes there is one in Chitila, but
he has not observed a position at Rosu. F_ I
Comment: Travel restrictions have limited Western observa-
tion olar emplacements around other potential targets such
as Ploesti and Stalin (Brasov). Rumania is currently estimated to
have 470 medium and at least 300 light anti-aircraft guns.
Construction of permanent anti-aircraft gun emplacements has
been observed around Warsaw, Prague, and Budapest during the past
year.
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Yugoslav economic council grants further aid to cooperatives:
The Yugoslav economic count as announce an a bona long-
term credit of $12,300,000 for capital improvements in agricultural
cooperatives, with no provision made for the private sector. The
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Yugoslav Government has now granted $33,000,000 in aid to agricul-
ture in recent months thus demonstrating its interest in increas-
ing productivity. 25X1
Comment: The renewed interest in agriculture coincides with
a retrenchment in investment in heavy industry. The second serious
drought in the last three years has again weakened the Yugoslav
economic position, particularly with respect to balance of payments,
since the government counts on agricultural exports *o finance much
of their imports. Furthermore, directing the aid to the socialized
sector of agriculture substitutes indirect pressure on the peasants
to Join cooperatives for recently removed direct pressures such
as forced delivery of grains.
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FAR EAST
6, Independent press believed threatened in Japan: The
Nippon Times repor a on ep ember that the three largest
Japanese newspapers, the Asahi, Mainichi, and Yomiuri, will
withdraw their membership from t fie Kyodo News Agency ~on 1
October. The three newspapers underwrite 31 percent of the
monthly maintenance cost of Kyodo. The managing editor of
Asahi stated that the move was taken "for financial reasons."
Comment: The withdrawal of support by the "Big Three,"
which su~ pply Kyodo with most of its news, will leave the
competing government radio station and provincial press
without adequate news coverage. Since the Japanese pro-
vincial press cannot fully support Kyodo, this move may
result in further government support for the news service,
or its impairment or collapse. Either development, in the
opinion of the US Embassy in Tokyo, will be "a blow to the
major occupation reform aimed at decentralizing control of
Japan's highly centralized press and giving Japan a free,
independent news service . .
"Judicial reform" is extending throughout China: The
"Judicial reform" movement in ommunis China appears to be
developing into.a nationwide effort. An unpublished report
by the Minister of Justice allegedly states that 22 percent
of 38,000 judicial cadres in the country are retained
Nationalist personnel and that most of them are ideologi-
cally unsound. The report is said to call for a purge of
Comment: The "judicial reform" movement, launched in
Peiping in late August, was described as a "thought-reform
movement for opposing old legal conceptions." Peiping's
commentary at the time showed clearly that the function of
its judiciary, following Soviet practice, is to act as an
instrument of Chinese Communist Party policies.
8. Peiping expands informer network in government: The
Peiping regime has oun at the "people's supervision"
committees, set up in each government organ to check on its
personnel, have failed to function satisfactorily. A Peiping
directive of late August orders the committees to recruit
"people's supervision correspondents" to investigate and
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report violation of laws, lack of discipline, graft, waste,
bureaucratism and dereliction of duty. The committees are
also to operate "people's denunciation reception rooms" and
"people's opinion boxes."
Comment: Observers of Communist governments have con-
sistently reported that officials below the top level are
afraid to make decisions. Consulate comment adds that it
is debatable whether the contributions of these new informers
will counterbalance the paralyzing effect of such a system
upon government officials.
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American power plant in Shang I hai largely restored:
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Feporzea mmu
increased the output from 20,000 kilowatts in February 1950 to
150,000 kilowatts in 1952. The plant is now using 13 of its
14 generators.
Comment: Most of Shanghai's public power is supplied by
the S anti ng ai Power Company, which had a capacity of 184,000
kilowatts in 1948 when most of its steam generating equipment
burned fuel oil. With coal much more plentiful to the Commu-
nists, as many units as possible were converted to coal, but
several which could not easily be converted are believed to
be idle. Press reports from Shanghai indicate that a serious
power shortage developed in 1951 because of rising industrial
activity. By staggering work shifts and reducing private
consumption, the authorities were able to raise the industrial
supply which is now probably near the 1948 level of 59,000,000
kilowatt-hours a month.
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110 Petroleum shortage reportedly eased in Manchuria: A
Peiping news roa cast sta e a ere are now sufficient
stocks of gasoline and kerosene in Manchuria for civilian
use. The price of gasoline has dropped 25 percent and all
motor vehicles and boats which have been burning charcoal
are being reconverted to use gasoline. Peasants are grad-
ually shifting to the use of kerosene rather than vegetable
oil for illumination, and a greater distribution of kerosene
lamps is planned. According to Peiping, the rapid development
of the petroleum industry in Manchuria has improved the supply
of these items. 75X1
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Comment: The Communists have probably restored a con-
siderable portion of the war-damaged oil industry in Manchuria.
The largest plant in Manchuria is the one at Fushun which
processes oil-bearing shale. This plant was built by the
Japanese to process 300,000 tons of crude oil annually, but
its estimated output in 1950 was only 30,000 to 40,000 tons.
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13. Communist campaign to gain control of Thai press
reported., I
Communists, with the connivance or a Soviet Legation, are
currently engaged in a concerted campaign to gain control of
the Thai-language press in Bangkok. Communist tactics in this
campaign include outright subsidizing of some papers and ap-
pointment of leading journalists to a "united front" committee
organized to oppose the government's unpopular press censor-
ship policies.
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The Chinese-language press in
Thailand is already dominated by, or oriented toward, the
Communists.
14, Thai representative may not be allowed to attend Peiping
peace conference: We American massy in Bangkok reports
a Police Director General Phao has decided that the Thai
delegates to the forthcoming Asian Peace Conference in Peiping
will not be issued passports.
The Embassy believes that Communist criticism of the
government's refusal to issue passports will have less effect
on the public than would the glowing reports about Communist
China which the returning delegates would undoubtedly bring
back with them. The Embassy doubts, however, that mere re-
fusal to grant passports will prevent the delegation from
going to the conference.
Comment: The peace conference delegation includes a
Buddha monk, supporters of former Premier Pridi, and other
pro-Communists.
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18. Burmese notables attend Viet Minh celebration: The
Viet Minh ce e-ra on o "independence'! In Rangoon Was
attended by about 100 persons. The only foreign representa-
tives were those of the USSR, Communist China, Czechoslovakia,
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Indonesia and India. The Burmese Government was represented
by a number of high officials including the Defense-Minister,
the Attorne General the Chief Justice and the Minister of
Commerce,
Comment: The Burmese Defense Minister's appearance at
this un~ ctian stands in contrast to his bold anti-Communist
statements, including an attack upon the Viet Minh as being
subservient to the USSR.
to execute Communist leader: A Burmese
Government spokesman announce In -parliament t at Bo Aye Pe,
a Communist insurgent leader, would be given a military trial
and executed. The American Embassy in Rangoon comments that
this case has been a "propaganda symbol" for overt Communists
to attack the government, and that his execution will proba-
bly make Bo Aye Pe ,a local Communist martyr.
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Comment: If the government follows through with its
threa ,o Aye Pe will become the first Communist to be
executed in Burma following a formal trial.
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WESTERN EUROPE
21, Austria offers to negotiate trade pact with USSR: American
offic e s w o ca a at the Austrian Foreign Ministry on 5 Sep-
tember to renew American objections to Austro-Soviet trade
negotiations were informed that Foreign Minister Gruber had
already directed delivery of a note proposing such negotiations.
In Gruber's absence, his subordinates reiterated that Austria's
'"precarious economic position" and strong Soviet propaganda had
made the move necessary.
The American. Embassy states that Austrian industrialists
were "apparently responsible" for the overtures.
Comment: There is little evidence to support Gruber's
previous contentions that Soviet trade propaganda has had any
great effect in Austria. Although what the Austrians expect to
gain from these talks is uncertain, Soviet standing in Austria
would be improved by Soviet concessions in the form of specific
orders to Austrian manufacturers or the regularization of exports
of the Soviet Enterprises in Austria.
Since industrial leaders are contributors both to the
People's Party to which Gruber belongs and to the Union of Inde-
pendents with which he has "connections," their influence in the
Foreign Ministry is correspondingly strong.
22. Smaller countries in North Atlantic Council offer views on
German.prob em: r ng an informal discussion of Germany in the
1ort t antic Council, representatives of the smaller NATO
countries suggested that the Western reply to the Soviet note
of 23 August on Germany should keep the door open for further
negotiations and that the agenda for four-power talks might in-
clude,subjects in addition to that of an investigating commission.
The spokesmen agreed, however, that the United States,
Britain, and France retained primary responsibility for Western
policy towards. Germany, and indicated general approval of the
replies to previous Soviet notes. The smaller countries hoped
that their being consulted would be a turning point in the role
of the North Atlantic Council.
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LATIN AMERICA
a o Ibanez' program for 'Chile implies unfriendly ' attitude
t e e program of Carlos Ibanez, according to his
toward
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camps gnmanager, includes the resumption of diplomatic relations
with the USSR and certain Satellites, abrogation of the US-
Chilean military assistance pact, "anti-imperialism," and the
gradual nationalization of mines.
The American Embassy comments that this announcement
implies an unfriendly attitude toward the United States, although
Ibanez poses as a friend and knows that Chile is economically
dependent on the United States. The denouncement of the military
pact may have been part of the price " d but undoubted"
aid by Argentine President Peron. 1 -1 25X1
Comment: Ibanez previously stated his opposition to bi-
lateralmtary pacts and'his advocacy of a more neutral
position in international affairs. If he is selected by Congress
as anticipated, he is unlikely to encourage a friendly policy
toward the United States prior to the elections next March when
his followers hope to gain control of Congress.
24. Colombian police apparently condone anti-Liberal rioting in
BBogota: Colombian police on September stood by and watche a
sm~ma mob of Conservatives gut the Liberal Party's National Head-
quarters and the offices of the leading Liberal newspaper. The
mob also attacked the offices of the second-ranking Liberal news-
paper and set fire to the residences of two national Liberal
leaders.
The'American Embassy in Bogota comments that the mob was
determined but not unruly, and that the police could have stoppe
the incidents at any time. The army had brought the situation
under control b early evening.
Comment: The 6 September rioting in Bogota brings the
explo v=beral-Conservative antagonism one step closer to
open civil war. An army coup with either tacit or open support
from the dissident wing of the Conservative Party is becoming
more likely as the civil disorders become more pronounced.
25, Cuban Arm given complete jurisdiction over National
Police, ores n prow aces: recent Cuban decree places members
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of the National Police Corps serving in the interior completely
under the control of the army. The US Army Attache in Havana notes
that-forcmerly National Police Corps members in a province were
under the operational control of the army regimental commander
of that province, although administratively their assignments
and promotions were-controlled by the Chief of the National
Police.
Comment: The placing'of the provincial police corps
complette~y under military jurisdiction may help to reduce the
graft and favoritism which have reportedly existed to a alarming
degree in.the National Police. Moreover, the move, by enabling
the Army General Staff to shift personnel and keep in command
officers of unquestioned loyalty to Batista, will serve to make
the government's forces more effective and more responsive to the
President's command in countering any armed attack against his
regime.
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