CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200270001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: December 27, 2001
• Sequence Number: 1
• Publication Date: September 16, 1952
• Content Type: SUMMARY

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SECURITY INFORMATION
US OFFICIALS ONLY
16 September 1952
OCI No, 8875
Copy No. :q5
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
DOS and DIA DeclagjiiicWN&l JyS gence.
Instructions on File
SECRET
SECURITY INFORMATION
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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.
1. USSR and Finland negotiating supplementary trade agree-
ment or 1953-1955: An official o the Finnish overnmen
Has informed e merican Legation that the trade negotiations
now taking place in Moscow have been expanded to include pre-
liminary discussions of a supplementary trade agreement for
1953-1955.
the Soviet Union is attempting
to secure a commitment from Finland for the delivery of ten
4,000 d.w.t. tankers in addition to tugboats, cranes and wood
processing machinery. The inclusion of the tankers in the
agreement is dependent upon the price offered and upon the
Soviet Union?s agreeing to furnish the ship plate and other
raw materials at a satisfactory price. (C-Helsinki Desp 120,
19 Aug 52)
Comment: Tankers are on the international embargo list
and are fn -extremely short supply in the Soviet bloc. Soviet
trade officials hope to obtain a 7,800 d.w.t. motor ship
now being completed in a Finnish shipyard.
2. Finnish trade association urges increased importation
of Or it goods: The non-Communist nnis Technical Trade
Association recently sent a circular letter to its members
urging Finnish importers to promote the sale of Soviet and
East European goods in Finland. In the past, Finnish im-
porters have been reluctant.to purchase Orbit goods because
of their poor quality and high prices. (R Helsinki Weeka 36,
4 Sept 52)
Comment: The Finnish Government may be encouraging such
a development in view of the country's unfavorable trade
balance with the West. In recent trade negotiations Soviet
officials have emphasized that Finland's production and exports
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to the Soviet Union are becoming increasingly dependent upon
importation of goods from the USSR,
3. Poles lower coal prices to Scandinavian countries: Poland
has a gree o ower coal prices --to Scandinavia to--t-Se-level of
British prices. The recent refusal of the Scandinavian im-
porters to accept high Polish coal prices was made Possible
by increased supplies of British coal. ( Reuters25X1A
13 Sept 52)
Comment: Swedish, Danish, and Norwegian importers re-
centlyy-E-roke off negotiations in Warsaw when the Poles refused
to lower coal prices. If this report is true it would appear
that the Swedish Government's fears that the importers had
worsened the government's position in negotiating a new trade
agreement were exaggerated.
The increased availability of British coal undoubtedly
helped the importers to take a firm stand, but the Poles' re-
ported capitulation at this early stage shows the extreme
weakness of their bargaining position,
4. Polish Government replaces Ambassador in Moscow: The
Polis press announced on -eptem er t he resignation of 14 Kasimierz Jasinski as Ambassador to Moscow "because of the
state of his health," and the appointment of Waclaw Lewikowski
to replace him. Lewikowski was included on the official
Polish Foreign Office protocol list for July as a Deputy
Minister of Public Security. (R Warsaw 121, 14 Sept 52)
Comment: Prior to the Gomulka purge in the summer of
1948, Lewi owski, one of the few remaining prewar Polish
Communists, was a member of the Central Committee of the
Polish Communist Party and Director of the Party Control
Commission. Although he fell temporarily from favor after the
purge, losing his important party positions, his post in the
Ministry of Public Security (Interior) since November 1949
suggests that he has been regaining his position of influence
in the party hierarchy.
5. Partisan band reported in Rumanian mountains: A reliable
eyewitness has Supplied apparen con rma on o guerrilla
activity in the Rumanian mountains south of Brasov. The source
reported that along with 40 other mountain climbers, he was
surrounded in the hills near Sinaia on 17 August by a band of
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30 horsemen who indicated that they were partisans and took
all available supplies. (C Bucharest 87, 12 Sept 52)
Comment: There have been previous reports of sporadic
and unorganized bandit activity in the Fagaras Mountains west
of;Stalin Town (Brasov).
6. Ana Pauker relieved as Rumanian Vice Premier: On 12 Septem-
ber the Rumanian press announced without comment that Ana
Pauker had been relieved of her post as Vice Premier. The
American Legation describes an unconfirmed report that
Mrs. Pauker was seen two weeks ago in a "fancy official car and
apparently not in custody" in the Sinaia resort area. The
Legation also quotes a reliable source to the effect that
Teohari Georgescu, the purged former Minister of the Interior,
is still working for the government or party, being transported
daily in a modest automobile from a regular residence.
(C Bucharest 87, 12 Sept 52)
Comment: These reports, if true, tend to weaken specula-
tion Tfi_aT he two purged officials will soon be publicly tried.
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Constitutional crisis anticipated by South Korean press:
Specu a on in the Sou orean press regarding internal
political developments has increased markedly since the be-
ginning of September, according to the US Embassy. Most
comments state that the mounting tension results from reports
that President Rhee will soon demand passage of the seven new
constitutional amendments outlined in mid-July. Several
papers have agreed that another "constitutional squabble" is
in the offing and that pro- and anti-Rhee groups have aligned
their forces in expectation of another political crisis.
(R Pusan 332, 14 Sept 52)
Comment: The Assembly on 11 September passed a bill
89-0 prohibiting standing votes on constitutional amendments.
Presumably this means that a secret ballot will now be used,
thus lessening the President's ability to pressure or vilify
individual Assemblymen. The vote demonstrates that Rhee's
opposition in the Assembly is far from moribund.
China: Reports appearing in the inese Communist press
over the growing number of accidents in factories, mines and
suggest that the authorities are becoming more concerned
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on railways. Accident prevention has been made one of the
principal tasks for North China's industry during the second
half of 1952.
Among reasons cited in the press for the high accident
rate, the most realistic appear to be the generally poor
working conditions, the long and fatiguing working hours,
the ignorance of safety techniques, and the preoccupation
of leaders with production norms at the expense of the
workers' well-being. (S Hong Kong 670, 12 Sept 52)
Comment: There is evidence that in many cases the
pressure a Chinese workers to "increase production and
practice economy" has encouraged a compromise with safety
standards. Praise has been accorded, for example, to rail-
road workers who use locomotives for extended periods without
overhauls.
SOUTHEAST ASIA
10. Anti-Communist propaganda declining in Thailand: The
US Em asst' in Bangkok o serves a ec ne, both In quantity
and quality, of the government's anti-Communist propaganda
output. It reports that Thai leaders are more concerned with
quelling criticism of their regime.
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Comment: While government propaganda activities
decline, Thai Communists are accelerating their activities.
Although the Thai people relatively have not been susceptible
to orthodox Communist theory, the Communists are becoming
increasingly adept at producing propaganda especially
tailored for Thai consumption.
11. Magsaysay may use Philippine veterans organization to
further his political ambitions: a mer can massy in
Man !a believes that the Phili ppine Veterans' Legion, which
is sponsoring a meeting of Southeast Asian veterans in Manila
from 17 to 22 September, may serve as an instrument through
which Defense Secretary Magsaysay can further his political
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ambitions. Magsaysay currently has few connections with the
Liberal Party provincial political machines. (C Manila 773,
12 Sept,-62)
Comment: The Legion, which was active in promoting
free elect ons in 1951, is ostensibly non-partisan, but
actually anti-Quirino. The President gave qualified endorse-
ment to the September conference only after a bitter dispute
with Magsaysay.
Nationals of several Southeast Asian countries will
attend the PVL conference, which is apparently aimed at
organizing a regional veterans' federation. The greatly
diverse backgrounds of the veterans from Southeast Asian
countries make it unlikely that any effective organization
will result from the meeting.
12. Chinese Embassy providing financial support for pro-
Commun s s in Burma.- The nese Communist massy n an-
goon hag-been prow ding financial support to the pro-Communist
Burma Workers and Peasants Party ever since its formation in
1950, according to a recent defector who held a high position
in the party. He claimed that the BWPP has been seriously
weakened by recent defections which were caused by the in-
creasing subservience of Ba Nyein, who is regarded by many
,observers to be the real leader of the party, to the Chinese.
(S Rangoon 423, 12 Sept 52)
Comment: The Chinese Embassy has long been suspected of
subsidizing the BWPP. The Burmese Government's reaction to
this foreign interference in their internal affairs has thus
far been mild, although it has often been intimated that
severe action was contemplated "in the near future."
Burmese military reports successes against Communists:
The Burmese Commander in e informed the American Army
Attache in Rangoon that four important Communist leaders
had surrendered in the past few days, divulging valuable
information. Meanwhile, a War Office-inspired editorial
in the leading Rangoon English-language newspaper asserted
that surrender, capture, death and generally deteriorating
conditions would cause the rank-and-file Communist following
to "melt away." (S Rangoon 423, 12 Sept 52)
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Comment: Apparently there was no mention of what
disposition was made of the. four surrendered leaders.
The Burmese Government has been making headway against
the Communist insurrection, but progress is by no means
rapid. For instance, the government's own figures reveal
that of all those who have surrendered in the past four years,
less than 10 percent have been Communists.
NEAR EAST - AFRICA
Iran plans military reorganization: General Kiani,
secretary o Primp Minister Dees eq s military advisory
board, states that the board is considering a reorganization
of the army and the gendarmerie.
The board plans to increase the strength of the gendar-
merie to 40,000 and make it responsible for internal and
border security. The army is to be reduced by several thou-
sand men and to be concentrated in northern Iran rather than
dispersed throughout the country.
General Kiani states that these proposals are in line
with the thinking of the American Army Mission now in Iran.
(S USARMA Tehran M-l89, 11 Sept 52)
Comment: The American Army Mission has urged that the
army a made more compact, but not that it be concentrated
in northern Iran. The army cannot now control the Soviet-
Iranian frontier and the gendarmerie is not likely to be
any more effective. Concentration of the army in the north
would give the powerful Qashqai tribe in southwestern Iran
an opportunity for greater autonomy.
The National Front may be expected to try progressively
to strengthen its control of the security forces. The
present army strength is about 129,000 as compared to 20,000
for the gendarmerie.
Indian Congress Party to intervene in South African
racial distur ance: Speeches made at the All-India Congress
Committee meeting at Indore on 14 September indicate that
the Indian Congress Party will sponsor financial aid to
South Africa's nonviolent resisters against the racial
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laws. The Congress Committee is reported to have-decided to
start a special fund for this purpose. (R FBIS New Delhi,
15 Sept 52)
Comment: Indian citizens and -organizations of South
Africa are taking an active part in the civil disobedience
campaign which started on 26 June as a protest against the
government's racial policies. Indians and Africans are
cooperating for the first time in a large-scale movement
and over 3,500 persons have been arrested. Financial aid
from India would probably be given through the South African
Indian Congress. Such financial intervention would provide
the South African Government with material for propaganda
against the Indians, both among the European electorate in
the Union and in the United Nations.
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WESTERN EUROPE
16. Yugoslav Government replies to tripartite note on Trieste:
Ambassador Allen describes as "completely negat ve' a ugo-
slav reply to the American-British-French note recommending
settlement of the Trieste question. (S Belgrade Weeka 37,
13 Sept 52)
Comment: Recent Yugoslav actions have not been calculated
to improve prospects for negotiations with Italy on Trieste.
New decrees were issued in late August which further integrated
Zone B with Yugoslavia. In recent speeches Marshal Tito has
stated that Yugoslavia cannot change its attitude toward the
Trieste issue and has warned of the possibility of attacks by
Italy.
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19; French see proposed Berlin legislation as violation of
contractua agreement: ore gn M n stry o cia as n ormed
the American m assn or in Paris of France's strong opposition
to the proposed West Berlin legislation which would give the
courts of the Federal Republic jurisdiction over West Berlin.
He said that the French public, and especially parliamentary
opinion, will not stand for this plan which is considered a
direct violation of the contractual agreement.
The American Ambassador believes that if this issue is raised
in the National Assembly it will have an adverse effect on French
ratification of the Bonn and Paris treaties. (S Paris 1586,
13 Sept 52)
Comment: The French, out of fear of disturbing relations
with the Soviet Union and of seeing Bonn's realm of influence en-
larged, have consistently opposed all attempts by Mayor Reuter
to integrate West Berlin with the Federal Republic.
20.
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21. Pinay's price restrictions considered ineffective: Premier
Pinay s new ce rig price ecree is eSS severe than t e measures
bconsiders necessary to
the French Price Administration Director
prevent autumn price increases and
of
enforce, in the
price ceilings can Embassy.
be y
doubts maintained.
dthat t agricultural The new measures have on the whole been favorably received
and the government has indicated that it will take further steps
as necessary. The Embassy emphasizes, however, that Pinay's
political position has been only temporarily improved. (C Paris
1588, 13 Sept 52)
voluntaryindicated
ifhhispremiership
Comment: When Pinay took over
price
that a would take strong measures
reductions proved ineffective.
Last month's price rises due to unseasonal agricultural
shortages have threatened to dissipate the "climate of confi-
dence" which Pinay has labored to establish. The new price
ceilings are expected to give him a temporary reprieve to fend
off labor and agricultural interests and to attempt to shore
up his weakening support from commercial groups.
22. Swiss averse to a further tightening of transit trade
contro a: n o is a of the wiss Government's Commerce
iv s on, in discussing his country's position on East-West trade,
reacted negatively to Congressman Battle's question as to whether
the Swiss would cooperate if the COCOM countries tightened
transit trade controls. He asserted that Switzerland alone
could not constitute a leak in transit controls because it had
no common border with the Soviet bloc. He indicated that his
stra-
country would not undertake to block the transshipment
oofgsta tang
tegic items which had been officially approved
country for an Orbit destination. (S Bern 271, 10 Sept 52)
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Comment: The official's statements are in conformity with
Switzer an s desire to maintain as closely as possible a neutral
attitude regarding East-West transit trade.
23. NATO naval maneuvers increase Swedish caution: The Swedish
Government as not Inv to ore gn m nary attac es to observe
the current Swedish Baltic maneuvers, nor has it requested
Swedish observers to follow the NATO naval maneuvers. The
American Embassy comments that this is one more indication of
the government's caution and sensitiveness resulting from the
spy trials implicating the USSR, the Baltic shootings, and Com-
munist accusations of coordinated Swedish and NATO maneuvers.
The Embassy notes, however, that the US Naval Attache has
been given some "exclusive" information on the Swedish maneuvers.
It states that "no doubt" as soon as Sweden's position is less
in the limelight, other information will be quietly given
American and British representatives. (S Stockholm Joint Weeka
37, 12 Sept 52)
Comment: The Swedish Government's reluctance to do anything
the Communists might use to charge secret cooperation with NATO
has also induced the government to refuse permission for a US
naval visit to Swedish ports on the Baltic after the NATO maneuvers.
LATIN AMERICA
Bolivia signs contract with Argentine syndicate for tin
smelter: President Paz stenssoro has announced the cone usion
of a contract with a primarily Argentine syndicate for the con-
struction of a tin smelter and other industrial plants. Bolivia
will underwrite 51 percent of the capital, and the syndicate has
offered, in addition to its 49 percent, to loan Bolivia funds
to meet its capital subscription. (R La Paz 85, 12 Sept 52;
NY Times, 13 Sept 52)
Comment: The Argentine group has reportedly agreed to sup-
ply 2 m 1 on dollars for equipment for a tin smelter and
various chemical plants which are to be completed in 3 to 4
years. The syndicate is to have a 25-year monopoly on these
activities.
Heading the syndicate, which has some Swiss capital, is an
Argentine, Selim Chacur, who has had close contacts with influ-
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ential personages of the Peron regime. He is considered a sharp
speculator of questionable business tactics.
25. Possibility of arm coup in Colombia increases: As a result
of the anti- eral riots n Bogota on Septem er, the political
situation in Colombia continues to. deteriorate. Two Liberal
Party leaders, ex-President Alfonso Lopez and Lleras Restrepo,
Whose homes were burned in the riots, have taken asylum in the
Venezuelan Embassy and applied for their passports.
General Rojas Pinilla, now with the Inter-American Defense
Board in Washington, reportedly plans to return to Colombia on
2 October to lead a group plotting to replace the Urdaneta
meat with a militar
y govern-
.favor a coup led byexuPresident Ospina Perez; he, however, Isto
reluctant'to seize power by force. (Factual data from: S Bogota
157, 12 Sept 52; U La Prensa (NY),15 Sept 52)
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