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December 16, 2016
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December 21, 2004
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September 9, 1952
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Approved For Rell3e 2005/01/26: CIA-RDP79T01146A000220001-5 SECRET 9 September 1952 25X1 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. SECRET Approved For Release - 6AO01200220001-5 25X1 25X1 Approved For Rel a 2005/01/26: CIA-RDP79T01146A00400220001-5 THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. 25X1 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 25X1 in our country." 17 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 1 9 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146A001200220001-5 Approved For Rel a 2005/01/26: CIA-RDP79T01146A00r 00220001-5 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. 25X1 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 2 9 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146A001200220001-5 Approved For Reese 2005/01/26 : CIA-RDP79T01146A0U000220001-5 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. 3 9 Sept' 53 Approved For Release 2005/01/26 : CIA-RDP79T01146A001200220001-5 Approved For Reese 2005/01/26: CIA-RDP79T01146AO 00220001-5 SECRET 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 4 9 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200220001-5 Approved Fo Iease 2005/01/26 : CIA-RDP79T0114 kb01200220001-5 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. 25X1 25X1 American power plant in Shang I hai largely restored: 125X1 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. 25X1 25X1 Approved For Release 2005/01/265 CIA-RDP79T01146A00120022090S6pt 52 Approved For Rele 2005/01/26: CIA-RDP79T01146A0bMt00220001-5 110 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 25X1 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. 25X1 6 9 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200220001-5 Approved Fo lease 2005/01/26 : CIA-RDP79T0114SM01200220001-5 SECRET 25X1 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. 25X1 25X6 25X1 25X1 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. SECRET 25X1 7 Approved For Release 2005/01/26 : CIA-RDP79T01146AO0120022%0@-%t 52 Approved For Rel a 2005/01/26: CIA-RDP79T01146A06M'b0220001-5 25X1 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, Approved For Release 2005/01/26 : CI I-RDP79T01146AO01200220001% Sept 52 Approved Forllrt'lease 2005/01/26: CIA-RDP79T01146Afii'01200220001-5 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. I I 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. 25X1 25X1 Approved For Release 2005/01/26: CIA-RDP79T01146AO0120022(b0? t 52 Approved ForN lease 2005/01/26 : CIA-RDP79T0114 1200220001-5 SECRET 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. 25X1 25X1 Approved For Release 2005/01/26""CIA-RDP79T01146A0012002:900. t 52 Approved For" (ease 2005/01/26: CIA-RDP79TO1148001200220001-5 LATIN AMERICA a o Ibanez' program for 'Chile implies unfriendly ' attitude t e e program of Carlos Ibanez, according to his toward -I N 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 25X1 11 9 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200220001-5 Approved Forlease 2005/01/26: CIA-RDP79T011401200220001-5 SECRET 25X1 25X1 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. SECRET 12 9 Sept 52 Approved For Release 2005/01/26 : IA-RDP79TO1146AO01200220001-5