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December 16, 2016
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December 20, 2004
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September 15, 1952
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Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 ,r. `*r SECRET 25X1 25X1 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. CURRENT INTELLIGENCE DIGEST Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY ONI, DOS and DIA review(s) completed. 25X1 SECRET 15 September 1952 OCI No. 8874 Copy No. 0 5 Approved For Rell'ase 2005101I76 ? (IA-PnP79IT01146A001200260001-1 Approved For Release 2005/01/26: CIA-RDP79T0,1146AO01200260001-1 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. to Kennan believes Sino-Soviet talks involve real bargaining: Ambassador ennan a eves a s our y e Chinese a ega- tion to points of interest in the USSR indicates that Sino- Soviet negotiations have reached a point where instructions from Peiping have become necessary. Kennan considers that the length of the talks shows that they are not "pro-forma" in character, but that real bargaining is taking place. SECRET 1 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved Forlease 2005/01/26 : CIA-RDP79T01146A001200260001-1 SECRET 25X1 familiarize the Mongolsithnm Hess r en s pan to w r P omote Chinese friendship: A campaign o promo Mongolian campaign to economic t of China will be held in the MongolianaPeopple'srRepublicof omt 1 to 10 October according to a broadcast from Ulan Bator. Comment: This announcement suggests that one of the .resul s o e current Sino-Soviet.Mongol talks in Moscow may be a Chinese-Mongolian Cultural Agreement, Peiping has such agreements with European Satellites n but not with other Asian countries, SOVIET UNION 5, USSR apparently attempts to observe NATO exercises: The eapta n o e s merchant s to the Soviet Union, has requestedp ami ssi sa e now o un rece v arter ive cargo from the Russian ship Tungas in the prot ected Skagen Roads or Aalbeck Bay at the northeast tin of Denmarkof on or ab-put 15 September 25X1 The reason given was a ur ng e cargo in open water near Bear Island in the Arctic Ocean., damage was sustained by both vessels. The American Naval Attache in Copenhagen comments that this is obviously an attempt to set up an observation post near the area involved in the amphibious phase of the NATO exercises, SECRET. 15 Sept 52 25X1 25X1 25X1 Approved For Release 2005/01/26.: CIA-RDP79TO1 146AO01 200260001 -1 Approved Fg;,Release 2005/01/26 : CIA-RDP79T01`146A001200260001-1 SECRET Comment: On 6 Septemberl eported about 40 large Soviet trawlers in waters were NAT maneuvers were scheduled to take place. Other attempts have been made to observe this area through daily visits of East German, Polish, and Soviet craft. EASTERN EUROPE 6. Finnish Communists crossing illegally into Soviet Union: On 3 September a usually reliable Helsinki newspaper reported that the state police were investigating illegal border crossings by Finnish Communists into the USSR. According to the report, this type of activity is concentrated in south- eastern Finland, but there have been illicit crossings back and forth into Sweden as well. The American Legation comments that border crossing is reliably understood to be carried on, but as yet no case has been broken because of the government's -failure to secure witnesses willin to testify publicly. 25X1 Comment: Finnish authorities have long been aware of such activities on the part of less important Communist Party functionaries, A matter of long-standing concern to the government, however, has been the fact that the Finnish border authorities are not permitted to exercise control over the trains which the Soviet Union operates on a fairly regular schedule between Leningrad and their base at Porkkala west of Helsinki. This route enables the more important Finnish and Scandinavian Communists to make secret visits to the USSR, 7. Hungarian factories promise extra work shifts in honor of Soviet Party Congress: a ungar an official party organ reported that many Hungarian factories had offered to work .extra shifts in honor of the nineteenth congress of the Soviet Communist Party. The US Legation points out that the machine tool and equipment factories-concerned ordinarily shipped a large proportion of their output to the USSR. 25X1 Comment: Czechoslovakia-already has called for extra work sus in honor of the Party Congress and of the forth- coming 25th anniversary of the Bolshevik revolution. Polish workers at Nowa Huta have pledged extra shifts, and the Soviet SECRET 3 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 25X1 25X1 25X1 Approved For Release 2005/01/26 : CIA-RDP79TQ 1 6AO01200260001-1 NOO, SECRET workers who are constructing the Palace of Culture and Science in Warsaw have made similar promises. 25X1 SECRET 4 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved FQ rRelease 2005/01/26: CIA-RDP79T01146A001200260001-1 Nee au~ Chairman o t e ov a eace omm ee as s a e .at the "peace" conference to open in Peiping in late September will be of special importance since it will "intensify the strug- gle for national independence and territorial sovereignty." Soviet statement SECRET 5 15 Sept 52 25X6 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved For Release 2005/01/26 : CIA-RDP79T46A001200260001-1 *401' SECRET His statement, which appeared in the Peiping press of 12 September, provides the first reliable Soviet hint on how the conference will deal with the wars in Indochina and .Malaya. Comment: The conference is committed to call for a "peaceefu`lsettlement" of current conflicts in Southeast Asia. This militant Soviet line suggests that the conference will not propose truce negotiations on the Korean pattern in Indochina and Malaya but will merely repeat demands for withdrawal of foreign troops. 12. Communist war-propaganda body called "peace committee" in foreign bro The Chinese Communist Y'Resist Am a, Korea Association" has been invariably designated in foreign broadcasts since March 1951 as the "China Peace Committee." Domestic broadcasts and newspapers have con- tinued to employ the original name of this group, which organizes propaganda and arms-donation dri c China in connection with the Korean war. Comment: A "China Peace Committee" was made necessary by the World Peace Council's call in February 1951 for an Asian and Pacific Regions Peace Conference. This committee is sponsoring the conference, which is to open in Peiping in late September. The double name is an unusually neat illus- tration of the Communist practice of simultaneously engaging in aggression and clamoring for peace. 13. Western tonnage in China trade continues high: During May,8 non-Communist registered merchant s ps, aggregating 467,000 gross tons, traded with Communist China. These figures were slightly higher than those for the preceding month and the highest thus far recorded this year. Comment: In May as in previous months, British registry ships in trade outnumbered those of any other nation- ality. US Government regulations prohibit American-flag ships from engaging in this trade, SECRET 6 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 25X1 25X1 Approved For Release 2005/01/26 : CIA-RDP79T01V46A001200260001-1 VOW SECRET SOUTHEAST ASIA 25X1 Communists exploit agitation for improved conditions in northeastern Thailand: We American massy In Bangkok reports that the Commun t---dominated Thai Peace Committee has appointed a subcommittee to collect funds for aid the "destitute" northeastern provinces. 25X1 25X1 25X1 Comment: Alleged economic hardship in northeastern Thailand, the least prosperous section of the country, is a favorite issue of opposition politicians. The Embassy doubts that conditions there are as bad as they maintain, but reports that the Thai Government has seriously neglected the area. Thai Communists increasingly are exploiting sources of popular discontent in order to penetrate and take over the leadership of .groups which have been sincerely interested in improving cbnditio:ns in Thailand, Indonesian guerrilla group allegedly extends activity to Nor Celebes: s x-man gang, allegedly including o- owers of uza kar, the SouthCelebes guerrilla leader, on 5 September raided Tomohon, a village i the Minahasa, North Celebes Comment: So small-scale a raid is of interest only in that a nahasa is normally a peaceful area, and the government has long feared that Muzakkar would extend his activity to the northern part of the Celebes. Burma has requested the United States to receive a military Burma asks United States to admit military mission: mission under the leadership of General Ne Win, Burmese Commander in Chief. The mission would arrive in late September to study American military organization, explore possibilities for the training of Burmese personnel, and arrange for the procurement of military supplies. I SECRET 7 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146A001200260001-1 25X1 Approved For Release 2005/01/26 : CIA-RDP79T 11A6A001200260001-1 SECRET Comment: This mission would be a radical departure from Burma's policy of avoiding any semblance of military relations with the United States. The proposal indicates that Burma may be wavering in its neutral foreign policy. 17. Latest Kashmir negotiations end in failure: The failure of the latest n o- a s an talks in Genever indicates that the Kashmir issue will remain deadlocked for some time to come. Pakistan was most reluctant to engage in the recent Geneva conversations, and it is unlikely to participate in future ones without first obtaining a major concession from India. 25X1 Since the UN Security Council cannot easily drop the Kashmir issue, it will presumably be faced with the task of drafting a resolution strong enough to ensure Indian and Pakistani compliance with UN mediator Graham's most recent proposals, or one suggesting new approaches to settling the dispute. It is doubtful that either India or Pakistan would feel bound to abide by any such UN resolution if it desired NEAR EAST - AFRICA 25X1 New Iranian Ambassador to the US now reportedly convinced of American goodwill: Allayar a e , newly appointed Iranian Ambassador to TH-e-Un-ited States, is convinced of American friendliness, according to Ambassador Henderson. Saleh intends to try to obtain American support in the oil dispute as well as financial and economic aid. Ambassador Henderson believes that Saleh had been instrumental in reducing the amount of anti-American propaganda recently, and had helped persuade Mossadeq not to take hasty action in the oil dispute. 25X1 8 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved For Release 2005/01/26 : CIA-RDP79 , 146A001200260001-1 25X1 25X1 Comment- Following a trip to the United States several years ag~aleh supported American plans for Iran. With the advent of the National Front government, however, he became an ultra-nationalist. Saleh was previously described by Ambassador Henderson as an unstable opportunist who often appeared to be pro- Communiste He has publicly expressed his opposition to Point IV and American military missions. 20. Panikkar praises Wafd in Cairo: K. M.?Panikkar, the Indian Ambassador-designate to a ro, is making no secret of his opposition to the Egyptian military regime. Even before presenting his credentials, he has voiced strong sympathy for.the Wafd, which "stood unwaveringly behind the Indian Congress Party during its days of trial." Ambassador Caffery adds that Panikkar's press state- ment's reflect the admiration for Communist China he showed while Ambassador in Peiping. Panikkar was quoted in the e a ian ress as stating Egyptian press prosperity and stability unknown before." "Chinese now live in t th th 9 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 25X1 Approved or Release 2005/01/26 : CIA-RDP79T0114.PA001200260001-1 % 25X1 25X1 22. South African official sees possible withdrawal from UN: The permanent secretary of the South African External a rs Department is convinced that his government would seriously consider complete withdrawal from the UN if the Arab-Asian group presses for an investigation of the passive resistance campaign in the Union. He believes that the Arab-Asian bloc is planning to include a request for such an investigation in the resolution on racial discrimination in South Africa which it is pre- paring for introduction neral Assembly, Comment: This personal opinion of an astute official probably reflects current sentiment in the government, which has frequently stated that it will not tolerate UN interference in a domestic matter. Relations between South Africa and the UN have already been aggravated by the dis- cussion of the Indian minority question and the status of South-West Africa. SECRET 10 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 25X1 Approves For Release 2005/01/26 : CIA-RDP79T 1(11 6A001200260001-1 NW W SECRET 23. Moroccan nationalist requests public ICFTU support for native trade union: Moroccan nationalist leader a el=- Fassi has requested the non-Communist International Confed- eratioA of Free Trade Unions (ICFTU) to support publicly full trade union rights for Moroccans. The American Embassy in Brussels' states that El-Fassi's recent visit to ICFTU headquarters and this request were prompted by the success of Farhat Hached in winning ICFTU and American labor support for the Tunisian nationalist cause. El-Fassi probably hopes that by supporting trade union rights in Morocco, the ICFTU would be furthering nationalist aspirations. Comment: In November 1951 the ICFTU adopted a reso- lution demanding trade union rights for Moroccans. In addition, one of its vice presidents in mid-1952 promised the labor adviser of the principal Moroccan nationalist party that he would try to convince the ICFTU directorate that support should be given Moroccan plans to establish an independent native union. 11 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 25X1 Approved For Release 2005/01/26 : CIA-RDP79T ZA6A001200260001-1 `ftw SECRET 25X1 2.5X1 WESTERN EUROPE East Germans announce advance "peace congress" in Berlin: American o c a s in erlin believe f Eat the decision to con- vene a "peace congress" in the "German capital of Berlin" on 15 November in preparation for the Vienna Peace Congress in December is intended to "occupy as many people for as long as possible in the propagation of soviet proposals-for a solution of the German problem," Four-power discussions are described by the East German Peace Committee as the "most pressing and important task of all peace committees and of all people who de- sire peace." According to press dispatches, an initiative committee.has been charged with organizing thousands of public meetings to discuss the objectives of the December convention. Plans call for the "election" of 4,500 German delegates to the Berlin corn gress, which will select 150 delegates to Vienna. Comment: Since Soviet proposals have not suggested that a four-power conference is seriously desired, the immediate objective of the peace campaign insofar as the German question SECRET 12 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 25X1 Approved or Release 2005/01/26 : CIA-RDP79T0 1,6A001200260001-1 is concerned appears to be defense of the Soviet record. These initial preparations suggest an elaborate effort in this direc- tion at the Vienna congress, although the principal themes of the congress are not yet clear. 26. East German delegation to receive polite rebuff from West German vernment: The decision of Hermann Ehlers, President o t He es erman Parliament, to receive but not to negotiate with the East German delegation will have no effect on the government's plans for ratifying the Bonn and Paris treaties, Ehlers plans to receive the Volkskammer delegation, accept their letter, and "wish them God-speed on their return to East Germany." Ehlers' decision, taken in concert with spokesmen of the leading parties, is designed to deprive the East German Govern- ment of any propaganda advantage and to counter any char es that f9 25X1 25X1 the Federal Republic is acting "under American orders. If the party attempts to go underground as its former leader Fritz Dorls allegedly lane its subversive effective- ness will be negligible. 25X1 25X1 will probably emerge from the forthcoming federal elections with no material loss of strength, The German Party,. most conservative in the coalition,may however swing even farther right in an effort to capture support of the followers of the dissolved party. If this is successful, extremists may wrest party control from the moderates. The decision of the SRP was made in anticipation of a Con stitutional Court decision which would almost certainly have banned the party. The government was confident that "unequivo- cal evidence of SRP collaboration with the Soviet Union" would have brought about the legal extinction of the party. a threat to coalition conservatives: The recent voluntary dis- solution-of the neo-Nazi Socialist Reich Party. (SRP) removes a threat to the conservative right-wing parties of Chancellor Adenauer?s federal coalition. In consequence the right wing Dissolution of the West German Socialist Reich Party removes 13 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved For Release 2005/01/26 : CIA-RDP79T0 1' i4 A001200260001-1 25X6 25X1 29. French press for firm US financial assistance commitment: Defense Minister even emp asize to mbassador Dunn on 1 September the importance of an early reply to Premier Pinay's 8 August letter stating the French assumption that the total US commitment to support the 1953 military budget is~$650,000,000. The Embassy believes that the French are planning their annual report to NATO on the basis of this amount, and warns that France must be informed as soon as possible of the final decision on the maximum available. In view of congressional cuts in foreign aid, the Embassy suggests that the French be assured of receiving between $500,000,000 and $575,000,000, the actual amount to be determined in accordance with the French defense effort. Comment: The increase in offshore purchases in response to Pleven's may request, funds allotted under the Moody amendment, and any assistance in Indochina would be in addition to this budgetary support. 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 ApprovecFoor Release 2005/01/26 : CIA-RDP79TQ46A001200260001-1 30. French official pessimistic on EDC ratification: The Assistant of tical rector of the renc Foreign Ministry has confided to an American Embassy representative his be- lief that prospects for French ratification of the EDC are less favorable now than they were in the spring. He based this estimate on the increasing awareness in France of growing German strength, He believes that the outcome will be influenced not only by the situation in regard to offshore procurement and American guarantees on Germany, but also by developments in Indochina and North Africa. He thinks, however, that a powerful argu- ment for ratification will be the French conviction that the United States is determined to rearm Germany under any cir? 25X1 cumstances. 25X1 Comment: The tenor of the negotiations which the Schuman plan ssern y is about to undertake toward the creation of a European political community will have a strong effect on the French attitude when ratification of the EDC is debated. Re- cognition of Germany's growing potential will also strengthen the French desire to retain some control over German rearma- ment, and the EDC is the only means toward this end. 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved For Release 2005/01/26 : CIA-RDP79T(,,46A001200260001-1 25X6 ? Comment: Both Franco and the press appear to reflect the genera rev val of interest in closer economic and military cooperation with the United States which has appeared in recent weeks. A majority of Spaniards apparently have forgotten the somewhat strained relations of a few months ago and reportedly again favor conclusion of a base rights agreement. 16 15 Sept 52 33. Spaniards urge speed in negotiations with US: The American massy n Madrid considers t e ranco? isson in- terview, as reported in the Washington Post on 7 September, an authentic expression of Spanish top-level views on negotia- tions with the United States, Leading Madrid newspapers, which have echoed Franco's statements that Spain is discussing only joint use and not the cession of bases, and that talks have been retarded by "bureaucrats," are showing a growing impatience with the slow progress to date. They have voiced that negotiations admiration for the United States and the hope will be accelerated. 25X1 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1 Approved FerrRelease 2005/01/26 : CIA-RDP79T01WA001200260001-1 LATIN AMERICA 25X1 25X1 34. Argentine labor attache declared persona non grata by Uruguay: he Uruguayan ore gn Ministry Informed the r- gentine Embassy in Montevideo on 11 September that Labor Attache Alejandro Minones and his secretary, were personae non gratae, Police records had shown that the two Argentine officials had been directly involved i Uruguayan labor con- flicts, F__ I Comment: Besides interfering in non-Argentine labor matters Argentine labor attaches are a major channel for Pexonista propaganda. Argentina?s labor attache in Panama and its consul at Antofogasta, Chile, were recently expelled from those countries for interfering in internal matters, 15 Sept 52 Approved For Release 2005/01/26 : CIA-RDP79T01146AO01200260001-1