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October 3, 1952
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Approved For, R lease 2002/05/20 : CIA-RDP79T01146.4b01300090001-9 SECRET SECURITY INFORMATION 3 October 1952 US OFFICIALS ONLY OCI No. 9392 Copy No. 2 9 7 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. State Dept. declassification & release instructions on file SECRET SECURITY INFORMATION Approved For Release 2002/05/20 : CIA-RDP79T01146AO01 300090 01-94 Approved Forelease 2002/05/20: CIA-RDP79T0114 001300090001-9 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. with Indonesia: The Dutch Foreign Minister has confidentially informed a merican Ambassador at The Hague that the cabinet has no intention of giving up control over Netherlands New Guinea. He said that the Dutch proposal for resuming negotia- tions on the Union statute would contain a face-saving formula making it "just possible" for the Indonesians to discuss this controversial issue. (S The Hague 437, 30 Sept 52) Comment: In a joint communique on 1 October the Nether- lands ore gn Ministry and the Indonesian High Commissariat announced their mutual willingness to resume discussions. 2. USSR warns Denmark on granting bases: The Soviet Union has made ano er in a long series of attempts to deter Denmark from further participation in NATO. In a 1 October note to the Danish Minister in Moscow, the USSR warned against Denmark's granting military bases to foreign troops as "a threat to the security of the Soviet Union," and laid "full responsibility for any possible con- sequences for such a policy" upon the Danish Government. While Denmark has not granted any bases to the United States, the note demonstrates Soviet sensitivity to Danish plans to construct airfields in accordance with NATO specifica- tions and is in keeping with Communist propaganda against the "provocative nature" of Denmark's permitting Bornholm to be used in conjunction with the NATO maneuvers. (Factual data from: U Copenhagen 399, 2 Oct 52) SECRET 1 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Fo44elease 2002/05/20: CIA-RDP79T011401300090001-9 SECRET 3. High-ranking Soviet officials attend Chinese reception in Moscow: On the third anniversary of the Chinese eople's Republic, the Chinese Ambassador in Moscow, Chang Wen-tien, gave a reception which was attended by Politburo members Mikoyan, Bulganin and Kosygin and other ranking officials in- cluding Minister of Foreign Affairs Vyshinsky, Minister of War Vasilevsky, and Panyushkin, Ambassador to Communist China. Members of the visiting Chinese delegation attended, but there was no mention of the Mongolian Minister of Defense, who remained in Moscow after the departure of the Mongolian Premier and Deputy Foreign Minister. (R FBIS Moscow, 1 Oct 52) Comment: The presence of three Politburo members may reflex fie importance attached to current Sino-Soviet re- lations. In 1951, two Politburo members attended a similar reception but none were reported at the Chinese celebration in 1950. 4. Members of Slovak "White Legion" tried for espionage and terrorism: The ova radio reported Wednesday that eight members of the "anti-State organization 'White Legion'" were being tried in Kosice on charges of organized terrorism and espionage "in the service of the American warmongers" in various districts of Eastern Slovakia. One of the accused stated that he acted on the incitement of foreign broadcasts carried on the "White Legion" radio. (R FBIS Bratislava, 1 Oct 52) Comment: The "White Legion" is a strongly anti-Communist Slovak re is stance movement whose main activity to date appears to consist of a twice-a-week Slovak-language broadcast beamed into Czechoslovakia from Austria. These broadcasts resumed last April after a lapse of about eighteen months, and monitored broadcasts have been heard to urge the Slovaks to "do every- thing possible to hinder police investigations" and to avoid certain named Communist agents. The coincidence between this trial and the gunfight on 21 September between two Czech militiamen and two "American agents" can be expected to be fully utilized in the Czech Government's campaign to convince its people of the need for SECRET 2 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved FofDelease 2002/05/20 : CIA-RDP79T0114fik001300090001-9 SECRET increased security measures against the "infiltration of enemy espionage and sabotage agents." when the Czech deficit reached the 33,000,000 kroner limit provided in the current Swedish-Czech price agreement. Accord- ing to a broadcast from Stockholm, there is now no Swedish iron ore destined for Satellite countries, exports of iron ore to Poland having been stopped several-days ago. exports o ron ore to Czechoslovakia stopped on 2 October Swedish iron ore exports to Czechoslovakia Although Swedish and Polish trade delegates are currently discussing coal prices in Stockholm, no decision has yet been reached. (R FBIS Stockholm, 2 Oct 52) Comment: A prolonged stoppage of Swedish iron ore exports to Orbit countries could seriously affect industrial develop- ment and Orbit defense production. There is little likeli- hood, however, that the cessation of Swedish iron ore exports to Czechoslovakia or Poland is more than a temporary measure. Recent Czech imports of iron ore from India and China, together with new blast furnaces adapted to the lower grade ore received from the USSR, may be reducing Czechoslovakia's dependence upon Swedish iron ore. Czechoslovakia normally imports much less iron ore from Sweden than does Poland, but previously has been able to obtain the necessary high- grade ore only from Sweden. 6. Rumanian-Yugoslav relations again deteriorate: The American Legation in Bucharest reports that the latest develop- ment in the current Rumanian diplomatic barrage against Yugo- slavia was a 30 September note protesting alleged border violations by nine Yugoslav aircraft, all but one of them military. The Yugoslav Charge in Bucharest believes that Rumanian press diatribes against Tito have also increased in recent weeks. (C Bucharest 103, 26 Sept; R Bucharest 106, 1 Oct 52) Comment: Four protest notes were exchanged between Yugos avT.a and Rumania during September, each government sending two. The first was a Yugoslav accusation that the Rumanians fabricated provocations against Yugoslav diplomats; the remainder were protests against border incidents and violations. The Yugoslavs have also taken over complete control of the Iron Gate Canal towing operations because of SECRET 3 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Fo0elease 2002/05/20: CIA-RDP79T01146A001300090001-9 SECRET Rumanian failure to pay the Yugoslav share of tolls which Rumania collected during joint operation by the two countries. Although relations have continued to be tense and un- friendly between the two countries, there was an apparent relaxation in Rumanian propaganda during the late summer, perhaps due to Bucharest's preoccupation with internal affairs. Relations now appear to be getting back to "normal," paralleling, to a lesser degree, those between Bulgaria and Yugoslavia. 25X1 C 8. Rumanians schedule Assembly elections: Rumanian news- papdrs on October listed the members of a Central Electoral Commission to prepare for the elections of deputies to the Grand National Assembly on 30 November. The Commission Chair- man is Mihai Mujic, a top official of the General Confedera- tion of Labor; its Vice Chairman is Vasile Musat, First Secretary of the Union of Working Youth; and the Secretary is Avram Bunaciu who represents the state and local government employees' union. (R FBIS Bucharest, 1 Oct 52) Comment: Under the terms of the recently adopted cons i u ion, deputies to the Grand National Assembly will be elected to four-year terms on the basis of one deputy for every 40,000 inhabitants. The present Assembly was elected for four years on 28 March 1948, shortly_after the old constitution was adopted, and extended its term until the new constitution was approved. The People's Democratic Front, which has led the "broad public discussion" of the draft constitution, will now conduct the Assembly election "campaign." The appearance of Avram Bunaciu on the Commission is noteworthy, since he was relieved of his post as Deputy Minister of Foreign Affairs during the extensive purges of the past summer. SECRET 4 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 25X1 C Approved For cease 2002/05/20: CIA-RDP79T0114UO01300090001-9 SECRET 9. Anti-Western propaganda campaign expected in Yugoslavia: A fore gna airs writer for the large government-controlled newspaper,Politika, has informed a US Embassy officer that he expects a strong anti-Western propaganda campaign in Yugo- slavia in the near future. The writer interpreted the ex- pected campaign as a means of strengthening internal policy, which is considered by the Communist Party leadership to be moving too far toward the West. Ambassador Allen comments that he does not expect the Western powers to be attacked at the November party congress, although there is certain to be a campaign against bourgeois Western influences. This may lead to another complaint about American information activities in the country. (C Bel- grade 458, 1 Oct 52) Comment: Yugoslav Communist leaders, including Tito, have no esitated on past occasions to make public attacks on the policies of the Western powers. In most cases, these attacks appeared to be for local Communist consumption and aimed at retaining the support of the rank and file of the party. While such attacks have been minimized for a long time now, they might well be resumed for the same reason at the party congress. 10. Plan to assassinate Tito while in England reported: A Soviet-inspired attempt to assassinate Marshal Tito allegedly will be made by a Croat group during his "forthcoming" visit to England. Comment: This report has no confirmation. There is no doubTever, that Croatian exiles are foremost among the many who would be involved in an assassination attempt. Tito accepted the British invitation eagerly, but British Foreign Secretary Eden has announced that the visit will not take place until after the coronation of Queen Elizabeth next June. SECRET 5 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 25X1A Approved Fo, elease 2002/05/20 : CIA-RDP79T0114GA001300090001-9 FAR EAST 11. 25X6 12. Pulping claims "extermination" of 2,000,000 guerrillas: A Chinese Communist leader, surveying the . regime s accom- plishments on its third anniversary, asserts that "over 2,000,000 local bandits" have been.'bxterminated" and that the anti-Communist guerrilla movement in China is "finished." (R FBIS Peiping, 30 Sept 52) Comment: In mid-1951 Peiping claimed to have "extermi- nated*r7r_,0m,000 guerrillas. Peiping now claims to have suppressed, in the past 16 months, more than twice as many guerrillas as were estimated to exist. This claim is ex- plained. in part by the use of "extermination" to mean simply dispersal, so that any given group may be "exterminated" several times, and in part by Communist exaggeration of the problem in order to receive proportionate credit for solving it. Although the guerrilla movement in China is not "finished," it currently poses no serious threat to the regime as the number.of guerrillas is now estimated at. less than 100,000 men. 6 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Fo lease 2002/05/20 : CIA-RDP79T0114' 001300090001-9 13. More socialized agriculture reported in China: The MinisFe'r of Agriculture in Peiping stated that more than ten collective. farms and over 4,000.producers.' cooperatives have been set-up in China. Fifty-two mechanized state farms, admittedly still in an experimental stage, have. been formed in the past three years to "educate peasants in collective farming." Two-fifths. of China's peasants have joined various forms of mutual-aid teams. (R FBIS Peiping, 25 Sept 52) Comment: These figures show a large increase in the regimen a on of China's rural population over the past year. In late 1951 or early 1952, according to Communist statistics, there were only two collectives., about 200 producers' coopera- tives and 45. mechanized state farms. There are also 40 per- cent more mutual-aid teams now. An early 1952 State Admini- stration Council directive stated that 80 to 90 percent of the peasants in the old liberated areas, such as Manchuria and North China, should be organized by 1953, and in the rest of China by 1955. Decreased military activity in Malaya continues: The week en ng 18 September was one o the quietest s nce the beginning of the emergency with only 37 Communist-inspired incidents. (S Singapore Joint Weeka 39, 26 Sept 52) Comments: Terrorist incidents have decreased from a weekly average of 99 in May to 45 in September. Captured documents have directed a relaxation of terror- ist activity to conserve Communist military resources and greater attention to the indoctrination and organization of the masses. These documents point out that some military activity and economic sabotage, however, must continue. 15. Philippine Foreign Office surprised by Quirino's conference proposa : Philippine Undersecretary for Foreign Affairs Neri recently informed the American Embassy in Manila that his office had not been notified in advance of President Quirino's announcement calling for a conference of Southeast Asian countries next year. Neri stated that his office is fully cognizant of the "groundwork" required before such a move is seriously contemplated. (C Manila 981, 1 Oct 52) SECRET 7 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved For,Zplease 2002/05/20 : CIA-RDP79T01146"01300090001-9 SECRET Comment:. On 25 September Quirino announced that he was takings eps to convoke another regional conference in May 1953. The American Embassy believes that.Quir.ino' ment may have been prompted. in. part by. political motives. 16. Indonesian Prime Minister discusses internal security situaian: Prime Minister . Wilopo, stated on September at, excep T5r west Java,. security conditions in..Indonesia are "good." He.admitted, however, that "emergency operations" are still in progress in the. South Celebes and that disorders continue in Central. Java.. Answering parliamentary allegations that the Indonesian Socialist Party is trying to dominate the Defense. Ministry, Wilopo said he had found no proof that the Socialist Party is gaining control of the Ministry. (R FBIS Djakarta, 1 Oct 52) Comment: Severe parliamentary criticism of the Defense MinisEry for incompetence and domination by the Socialist Party has given rise to reports that the Prime Minister and his National Party would not support the anti-Communist Minister of Defense on an expected nonconfidence motion. Wilopo's statement, generally defending progress toward internal security and refuting charges of Socialist control of the Defense Ministry, indicates that he will continue to support his minister. Indian official supports Afghan Pushtoonistan campaign: In a conversation w an American massy official on 30 September, the Indian Acting Foreign Secretary defended Afghanistan in its Pushtoonistan campaign. When the American official urged that the Afghan Government drop the issue, the Foreign Secretary answered that India supports the Afghan position on the matter, and is unwilling to ask them to stop their propaganda and "other activities." (S New Delhi 1398, 1 Oct 52) 25X6 SECRET 8 Approved For Release 2002/05/20 : CIA-RDP79T01146A001300090001-9 Approved Fo elease 2002/05/20 : CIA-RDP79T0114OA001300090001-9 Tunisian budget crisis resolved: The French Resident GenerT in Tunis told the America n Consul General that he had obtained the Bey's approval on 29 September of the 1952--53 Tunisian budget by indulging in "rug merchant tactics." The necessary countersignature was secured when the Resident agreed to double the Bey's household expense allowance. Although the French had contemplated demanding certain quid pro quo's before increasing the Bey's stipend, the Resident abandoned the idea in order to avoid "tarnishing the public relations value of French generosity" in the UN General Assembly. (C Tunis 124, 30 Sept 52) Comment: The Tunisian Government has operated since 1 April under`-a six-month emergency budget which could not legally be extended, and the French were apprehensive that the Bey's approval could not be obtained before the 1 October deadline. Some French officials in the Residency General had sug- gested that,for increasing the Bey's allowance, the Resident secure the necessary approval of some of the administrative reform decrees rejected by the Bey in early September. United Nations declaration of incompetency allegedly would se Me Tunisian Impasse: According to the FrencH_ Resident General in Tun s a, if the General Assembly were to vote itself incompetent, the Tunisian problem could be solved quickly. Collapse of Neo-Destour hopes would end the nationalists' opposition to the reform program, the Bey would resume collaboration with the Residency General, and decrees instituting legislative, financial and municipal reorganization could be effected at once, and elections scheduled for early April. (C Tunis 124, 30 Sept 52) Comment: The Resident General is overoptimistic in this m-after, inasmuch as the Nuo-Destour leadership has frequently declared that the French proposals for reform are no real step toward autonomy and, therefore, are un- acceptable. Because nationalist strength has increased considerably during the past year, a more probable reaction would be increased nationalist agitation with a possible attempt to gain autonomy through insurrection. SECRET 9 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved For?elease 2002/05/20: CIA-RDP79T0114W01300090001-9 SECRET 20. East German expropriation decrees reported extended to famils of refugees: 25X1 C 25X1C East German decrees providing for the seizure of property of persons who have fled or who are preparing to flee East Germany have been made retroactive to May 1945 by secret directives. Under the same directives, families of and persons who had lived with refugees are suffering eviction from their homes and the loss of furniture and business property. 25X6 American officials in Berlin comment that the extension of the expropriation decree to persons associated with refugees is intended to be a strong deterrent to flight from East Germany and dramatizes the fact that the retention of private property is purely a matter of state decision. (C Berlin Unnumbered, 27 Sept 52) 10 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Frelease 2002/05/20 : CIA-RDP79T011IM001300090001-9 SECRET Lagging Austrian coal imports concern American officials: After discussions in Vienna with Austrian authorities:, Mutual Security Agency officials in Paris are deeply concerned over lag- ging Austrian imports of coal from Poland. Attributing the low level of Austrian procurement to inadequate credit policies and to lack of storage space, these officials warn that-failure to buy Polish coal now may increase Austrian dependence on American aid at a time when assistance funds are much reduced. They sug- gest that it might be advisable for the Austrian Government to provide credit to maintain stocks at least at the present levels. Meanwhile, Austrian officials have indicated an intention to reduce stockpiles still further to minimize the amount of working capital tied up in coal inventories. (C MSA SRE Paris to Vienna REPTO A 37, 24 Sept 52) Comment: The Austrian Government has been under strong pressure from MSA officials in Vienna to impose stronger credit restrictions to curb inflation. Failure of the Austrians to exploit their favorable coal balance with the Poles may also be due to recent decentralization of coal procurement procedures and to the Austrian Government's belief that a large credit balance will improve its bargaining position in future trade negotiations. The Austro-Polish trade agreement is scheduled for renewed negotiation this fall, at which time deteriorated coal stocks would be a distinct dis- advantage to the Austrians. 24. Policy differences seen developing among Western powers on Austrian treaty: The Amer can Ambassador in Vienna reports that Foreign Mini ter Gruber, the French, and to a lesser extent the British representative, are prepared to accept the old draft treaty for Austria on the assumption that the United States will "shoulder the financial burden." While all participants agree that the abbreviated treaty has "pushed the Russians toward acceptance of the longer draft," Foreign Minister Gruber and the French are anxious for a conference in which the Russians could state their terms. (S Vienna 888, 30 Sept 52) Comment: Under the terms of the original draft treaty, the Russ ans would relinquish claims to German assets in eastern Austria in return for Austrian payment of $150,000,000. The British and French Governments insisted at the time the ab- breviated draft was introduced that it should not preclude a return to the old draft. The Austrian Foreign Ministry also 11 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved ForZeelease 2002/05/20 : CIA-RDP79T01146A,001 300090001-9 SECRET 25X6 appears to be in process of amending its earlier views that concessions previously made to the Soviet Union are no longer acceptable. Coal-Steel High Authority opposes closer ties with Council of Eura e: According to Ambassador Draper, the gh Authority of the Coal-Steel Community (CSC) is opposed to the British- originated[ proposal of the Council of Europe that the two inter- national bodies to be tied more closely together, The High Authority's opposition does not stem from a desire to keep the British "at arm's length," but rather from the belief that the proposed ties are an attack on the CSC's sovereignty. Draper states that if the CSC Assembly should accept certain provisions of.the proposal, the High Authority presumably would appeal to the Community's Court on the ground that the CSC treaty had been contravened. (C Paris Polto 380, 30 Sept 52) Comment: French Socialist leader Guy Mollet has threatened that t e rench Socialists will vote against ratification of the EDC treaty if Germany and Italy continue their opposition to closer ties between the CSC and the Council of Europe. The latest version of the British proposal would limit participation in CSC affairs by non-members of the Community to the right to speak but not to vote. 12 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved FoQaelease 2002/05/20 : CIA-RDP79T011 001300090001-9 SECRET 27. New nationalistic bloc in French National Assembly reported: The American Consul n traibourg reports that G bert Grandva , the French Ambassador to the Saar, is believed to have ambitions of displacing De Gaulle in a future organization of members of the wartime resistance. Grandval reportedly has strong con- nections in De Gaulle's Rally of .the French People and is as- sociated with Popular Republican Georges Bidault and Socialist Robert Lacoste in leading a new bloc which now controls 140 deputies in the National Assembly, The strategy of this bloc reportedly is to promote a multi- partisan movement against Premier Pinay in two or three months. (S Strasbourg 135, 1 Oct 52) Comment: Although no other reports of such a bloc have been race ved, the information is consistent with the known aspirations of many centrist and leftist deputies reacting against the return to power of many of France's prewar states- men. These deputies can be expected to make a strong bid this fall to overthrow Pinay, by exploiting the opposition to EDC as well as the government's price and budgetary policies. 28. New four-power talks could delay French ratification of EDC: The Amer can Ambassador n Par s cons ers it probable that Franc would press for a four-power conference on Germany if Russia should propose simultaneous discussion of a German peace treaty by the four powers and of election conditions by East and West Germany. The Ambassador points out that if such a proposal were to be made on the eve of the French ratification debates on the EDC, it would afford opponents of EDC a "golden opportunity" at least to delay action on ratification. (C Paris 1978, 1 Oct 52) Comment: A proposal for such simultaneous discussions was made recently by the East German Volkskammer delegation to Bonn, and appears to be a Soviet attempt to hinder ratification of the contractual agreement and the EDC treaty, French objections to the 22 August'Soviet note were based on Soviet reiteration that peace treaty talks should precede discussions on elections and the formation of an all-German government? 13 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Focelease 2002/05/20 : CIA-RDP79T01146AO01300090001-9 SECRET 29. Argentine student strike may be exploited by army: A strike of 1,200 Buenos Aires engineering students is -reportedly spread- ing to other university schools in the cities of Buenos Aires, Eva Peron, Cordoba, and Rosario. The strike began on 30 Sep- tember, allegedly to protest government interference in the engineering school, but obligatory Peronista political courses are also reportedly involved. Some observers think that if the unrest should spread, the army, which is closely observing student moves, may use the student strikes as a springboard for a "now or never jump." (C Buenos Aires 230, 1 Oct 52) Comment: Peron's reported reneging on a promise to re- establish the prestige of the armed forces has increased the volume of rumors concerning a possible revolt, but no concrete plans or ]Leaders have been reported. The government is main- taining strict security measures. 30. Spokesman for Ibanez discusses US-Chilean relations: After the Chilean Congress declares Carlos Ibanez Presi en -E ect, the Ibanista press will cease its anti-US campaign, according to Edecio Torreblanca, a responsible Ibanez spokesman. Torreblanca also said that the mines would not be nationalized and that Chile would not resume relations with the USSR. Ambassador Bowers explained what trade with the Soviet Orbit in strategic materials would mean to Chile in view of the Battle Act. He also stressed that the US-Chilean military agree- ment had not been forced on Chile and that, since it is more to Chile's benefit, the US only wishes to know soon the incoming administration's intentions regarding the agreement. Torreblanca admitted that some of these considerations had not occurred to Ibanez and that the advantages of the military agreement and US financial assistance are greatly desired. (S Santiago 120, 26 Sept 52) Comment: Torreblanca's comments are considerably more moderate tan those expressed by other apparently self-appointed but unrestrained spokesmen for Ibanez. Since the election Ibanez has reportedly been trying to curb unauthorized state- ments of his future policies, 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Fe Release 2002/05/20 : CIA-RDP79T0114974001300090001-9 SECRET 31. New disturbances break out'in Venezuela: According to Incomplete reports from a-racas, sor ers which broke out at an army barracks in Maturin, near,the eastern oilfields, on 1'October were quickly "smothered," apparently by Tederal police. On the same date some workers at a nearby oilfield failed to report for work, but no connection is known to exist between this and the military uprising. There is some fear of a general strike, although conditions at other eastern oilfields are normal. (C Caracas 141 and 146, 1 Oct 52) Comment: Further outbreaks can be expected between now and t 'November constituent elections. Embassy interviews last week with prominent officials and private citizens suggest that junior military officers and aroused civilians, rather than the outlawed Democratic Action Party. alone, may now be attempt- ing to force changes in government, policy or in the government itself. SECRET 15 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146A001300090001-9 Approved Fo lease 2002/05/20 : CIA-RDP79T0114'601300090001-9 TOP SECRET SECURITY INFORMATION US OFFICIALS ONLY 3 October 1952 CIA No. 49825 Copy No. 38 TOP SECRET SUPPLEMENT TO THE CURRENT INTELLIGENCE DIGEST (including S/S Cables) Not for dissemination outside O/CI and O/NE. Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY This digest of significant reports has been prepared primarily for the internal use of the Office of Current Intelligence. It does not represent a complete coverage of all current reports in CIA or in the Office of Current Intelligence. Comments represent the immediate views of the Office of Current Intelligence. TOP SECRET SECURITY INFORMATION Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved Fo elease 2002/05/20: CIA-RDP79T0114"001300090001-9 TOP 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. SOUTHEAST ASIA 1. Indonesian "national" Communists report possible So- cialist coup: Leaders of artai ur a, the so-cal "na- tionalist" Communist party, report a "strong rumor" in Djakarta military circles that the Indonesian Socialist Party is planning a coup d'etat, working through key persons in the army and the government. Socialist plans for a coup have been d to President Sukarno by Colonel Bambang Supen.o. FOR CRITICAL SECURITY REASONS this report is not to ther transmitted within the United States, or beyond the borders of the United States, without the express permission of the releasing office.) Comment: The rumor of a Socialist coup appears to be entirely unreliable although the existence of the rumor is understandable. Colonel Bambang Supeno failed to obtain the position of acting Chief of Staff of the armed forces, a job which he very much desired. He therefore wrote a letter to President Sukarno and apparently also submitted a copy of the letter to the defense committee of parliament criticizing the policies of the Defense Ministry. In the subsequent parliamentary discussion inspired by the letter, leftists alleged that the Defense Ministry is dominated by the Socialist Party. The rumor of a Socialist coup apparently has arisen from this welter of charges and criticisms. NEAR EAST - AFRICA 25X6 25X1A 1 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146A001300090001-9 Approved For elease 2002/05/20 : CIA-RDP79T01146 M01300090001-9 25X6 3. Reduction in American visits to Belgian Congo urged: The American Embassy in Brussels recommended on 30 September that official visits of Americans to the Belgian Congo be reduced to a minimum and referred to the Embassy for approval. Fre- quent visits of American. officials tend to increase Belgian. suspicions concerning United States "intentions" toward the Congo. Representatives of Belgian firms there have also complained to their home offices about the loss of working time caused by important visitors, both Belgian and American. (C S/S Brussels 344, 30 Sept 52) Comment: American motives and interest in the Congo's strategic mineral production have been the object of Belgian suspicions since World War II. The chronic resentment against foreign attention to Congo affairs and alleged American "anti- colonialism" on African questions may be moving into a more acute stage. 4. East German bourgeois parties facin uncertain future: Reports from East Germany of declining membership and re- stricted activity of the Liberal Democratic Party (LDP) are indicative of the uncertain future of the bourgeois political parties in the East Zone in general. According to reliable information, LDP membership was down to 144,000 after the loss of 1,300 members in July. Possibly to prevent further defection, members of the party hierarchy have since 1 September been forbidden to visit 2 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146A001300090001-9 Approved Focelease 2002/05/20 : CIA-RDP79T0114&&001300090001-9 TOP SECRET West Berlin, and party members may visit relatives there only with the consent of the party secretary-general. Although plans for increasing activity in West Germany are being formulated, the party's West German operations have been "very limited" since last spring. The reorganization of the East German Government and the corresponding concentration of power and positions in the SED has cost all bourgeois parties heavily. Although the per- formance of assigned roles will probably keep their organiza- tions alive for some time, these parties now exercise little influence on East German affairs. (Factual data from: S/ Sensitive Frankfurt Sitrep 37, 30 Sept 52) LATIN AMERICA 5. Brazilian president reportedly will not attend Chilean inaugur t on: The Peruvian Foreign minister Informed the American Ambassador in Lima on 1 October that President Vargas of Brazil would not go to the Chilean inauguration, but in- tended instead to send the Brazilian vice president. (S S/S Lima 117, 1 Oct 52) Comment: The Peruvian and Brazilian Foreign Ministries have expressed apprehension that "president-elect" Carlos Ibanez of Chile may be planning some anti-United States pro- ject, but believe that his plans are contingent upon Vargas' attendance at the inauguration. 25X6 TOP SECRET 3 3 Oct 52 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 Approved For Release 2002/05/20 : CIA-RDP79T01146AO01300090001-9 TOP SECRET UNCLASSIFIED when blank-TOP SECRET when attached to Top Secret Document-Automatically downgraded or declassi- fied when filled in form is detached from controlled document. CONTROL AND COVER SHEET FOR TOP SECRET DOCUMENT REGISTRY DOCUMENT DESCRIPTION CIA CONTROL NO. SOURCE DOC. NO. DOC. DATE ~OPY NO. LOGGED BY -UMBER OF PAGES -LUMBER OF ATTACHMENTS -ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intelligence Agency or classified Top Secret within the CIA and will remain attached to the document until such time as it is downgraded, destroyed, or --transmitted outside of CIA. Access to Top Secret matter is limited to Top Secret Control personnel and those individuals whose official .duties relate to the matter. Top Secret Control Officers who receive and/or release the attached Top Secret material will sign this form .and indicate period of custody in the left-hand columns provided. Each individual who sees the Top Secret document will sign and indicate the date of handling in the right-hand columns. :EFERRED TO OFF ICE RECEIVED SIGNATURE DATE TIME RELEASED DATE TIME SEEN BY SIGNATURE OFFICE/DIV. DATE NOTICE OF DETACHMENT: When this form is detached from Top Secret material it shall be completed in the appropriate spaces below and transmitted to Central Top Secret Control for record. DESTROYED DISPATCHED (OUTSIDE CIA) DOWNGRADED TO TO BY (Signature) e t Si BY (Signature) WITNESSED BY (Signature) ) ur gna BY ( OFFICE D~kpproved F PR6%ase 2002/05/20 ctAERDP79T DATE 11F4 001300090001- TOP SECRET P S C R ~` E T