DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000300410001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 17
• Document Creation Date: December 20, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 1
• Publication Date: August 16, 1951
• Content Type: SUMMARY

Approved For Rise 2006/QI~: &"I#ff 9T01146A6f 300410001-4
16-Augst 1951
C;JA No. 49307
Copy No.
DAILY DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary of significant reports -has=beenprepared primarily
for the internal use of the Office of. Current, IntelLigenceo 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.
State Department review completed
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SECTION 1 (SOVIET)
1. USSR, Kremlin takes full credit for Korea0s.liberation from Japanese%
A Moscow broadcast devoted to.the6th.Anniversary of Korea's libera-
t1.on9 extolled the Soviet Union's "decisive* role in the defeat of
Japan and the subsequent liberation of Korea. Stereotyped charges
traced US "violations of obligations from the moment of Korea's lib-
eration" to the "armed intervention against the Korean people," The
broadcast reiterated that the "entire peace camp,, headed by the Sov-
iet Union' is on the side of the Korean people who are confident of
their abilities and their might.
Pravda also published a TABS dispatch from Korea which expressed
the Korean people's "feeling of deep gratitude and love for the Soviet
Union and its armed forces which liberated Korea. from Japan," This
marked the first occasion in a long time that the Moscow press pub-
lished hea North Korean praise for the USSR. 25X1
2,
Comments Moscow again avoided comment on the current situation
in Korea,, a characteristic of Soviet propaganda since the beginning
of the Korean hostilities. However' exasperation with the UN firm-
ness at Kaesong was suggested in the North KoreannZommunist state-
ments selected for publication.in the Moscow press,
25X1
Holiday in observance of Lenin's death abolisheds The Presidium
of the Supreme Soviet of the USSR announced on 14 August the abolition
of the 22 January holiday commemorating Lenin's death and the events
of 9.January 1905. The action was attributed to requests from trade
unions and other public organizations which consider the observance
out of keeping with the events commemorated.
number of annual holidays to.fiveo
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Field Comments Embassy Moscow considers that the abolition of
this holiday will have the effect of diminishing popular worship of
Lenin as Stalin gradually pre-empts a stellar role. The referehoo to
"request of workers" is. comparable to. similar. invocations of "toiler's
demands" to justify changes . decided. on by the government. One motive
may have been the desire to add another workk.da by reducing the
Comments The annual. Lenin memorial celebration has constituted
one of the most important Party occasions' usually marked by a meet-
ing in Moscow's Bolahol Theater. attended. by all the Party bigwigs.
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The high point of these meetings.has been a speech given by one of
the top Bolshevik dialecticians, such as in recent years., Pospelov
or Suslov. This has been., in recent times,, virtually the only oc-
casion on which Stalin was over-shadowed by his predecessor Lenin.
In line with - the trend _of deif"ying Stalin that has developed in
recent years, the discontinuance of the holiday serves notice on
Party members that Stalin will. henceforth stand alone on his ped-
estal,
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4.
INTERNATIONAL CONMUNISM8 World Youth Festival parade lacks enthusiasm;
An estimated 8009000 tired and listless members of the Communist Freie
Deutsche Jugend9 on 12 Aug 51, marched in an eight hour "Peace Parade"
at the World Youth Festival in Berlin. The crowds of spectators were
remarkably small in view of the great effort put forth in planning and
propagandizing the parade as the high spot of the festival. Failure to
live up to its intended climax of enthusiasm, glamor and variety was
largely due to the inadequate food and housing provided for the partici-
pants,, the Festivals atmosphere of worship for Stalin,, and the fact
that the foreign delegations remained seated tands while
only German youth marched. 25X1
C e to This lack of enthusiasm on the part of both paraders and
spectators,, together with the fact that more than half a million dele-
gates visited West Berlin despite Communist measures to prevent such ex-
posure to Western life, indicates the indifference to the Soviet-Comraun-
ist regime felt by East Germans. However,, any parade so gigantic in
numbers and duration could not be called ,a fiasco.
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5.
EASTERN EUROPE. CZECHOSLOVAKIA, Reallocation.of manpower proceeding
unsatisfactorilss Czechoslovak Pr emier.Zapotocky has criticized the
failure on the part of individuaa3s and_ organizations, to implement the
spirit of the recent decree transfering more than 77,500 administrative
employees into factories and mines. In a radio address on 8 Aug 51,
Zapotocky said that office managers were.using.the decree to remove in-
competents, the aged and the infirm, while factory and mine heads were
refusing to accept trensferees'who were not specifically trained for
their new assignments'. or who were over forty years old. The main aim
of the transfer, Zapotocky'stated, is to'increase production which has
dangerously lagged behind.wage increases He warned Czechoslovak labor
and management that.the decree. must be implemented in accordance with
the issued directives?
.US Ambassador Briggs, states that despite the advantages promised
to those who voluntarily transfer before the end.of September, there has
only been a trickle-of volunteers to the mines.and factories. It is the
view of the US Embassy that the Czechoslovak-population considers this
enforced transfer the most repressive action taken by the regime towards
labor since the Communist coup dgetat in. February 1948. The Embassy
comments that this and other recent.decrees,pertaining to labor controls
reflect Communist failure over a two-year period. to gain the voluntary
cooperation of labor in meeting the increasingly difficult economic prob-
lems facing the countrya 25X1
Comments Czechoslovakia?s current economic crisis stems from three
(a) Increased export commitments to the Soviet
Union which have required forced expansion
of heavy industry and mine production. and
resulted in raw material shortages,
(b) Serious inefficiencies in the industrial and
agricultural sectors of the economy which re-
sulted in 1950 in large financial deficits,
and which, together with increasing shortages
of consumer goods, have created inflationary
pressures, .
(c) Increasing labor discontent which stems from
decreasing real wages, lowered rations, in-
creased norms, and general irritation with an
arbitrary and oppressive government.
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6. TRIESTE, Number of...re geee from_.Yugoslavia increases: US Political
Advisor Unger reports.that.an.increased,influ..of refugees from Yugo-
slavia.during the first half of August, has-pushed the Trieste refugee
camp population almost to its limit of 5000, If it continued, this rate
of influx would add another 900 new-refugees before the end of the month.
The Allied Military Government will shortly be forced to decide whether
to use remaining budget funds to.build.accommodations for 1,500 more
refugees,
Comment: The present large-scale exodus of refugees from Yugo-
slavia is taking place despite previous Yugoslav assurances to the US
and British Ambassadors in Belgrade that no further exit visas for
Trieste would be granted unless the applicants had. obtained Trieste entry
permits from the British Embassy in Belgrade..
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SECTION 2 (EASTERN)
INDIA. Youth festivals held in Calcutta and BombaZ Indian youths
enthusiastic over the Berlin Youth Festival, held their own festival in
Calcutta on 5 August and plan one in Bomba from 1 to 19 A r. cording
to a Peiping broadcast of 11 August.
Comment: There is no firm evidence that any Indians are attending the
Berlin conferences although a Moscow broadcast of 31 July reported that an
Indian delegation was travelling to Europe on a Soviet grain ship returning
from Calcutta,
3. TURKEY. USSR takes no action to revise Turkish Straits convention: The
USSR has failed to request a'revision on the Montreux Convention. The
deadline for submission of revisions was 8 August. There have been no
comments in the Turkish press on this inaction.,
Comment: According to the terms of the Montreux Convention governing
the passage of shipping through the Turkish Straits, any of the nine
signatories may request revision at the end of each five year period.
During an exchange of notes on the subject in 1946 by the major powers.: the
USSR made strong demands for revision of the status of the Straits. However,
the final Turkish note expressing willingness on the part of the West to
convene a conference to negotiate revisions was never answered by the Soviet
Union.
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In April 1950, a Soviet newspaper charged Turkey.with allowing US
naval units into the Black Sea and termed the Montreux. Convention
prejudicial to USSR security. For the past year, however, only minor
attention has been paid the subject of the Straits and no
references made
to the Cnmrant-S
Russian inaction relieves some of the concern that has been voiced by
Turkey and other interested nations over an anticipated Soviet-demand for
revisi on
4. INDONESIA. Government recognizes Communist threat: Pringgodigdo, chief of
President Sukarno?s staff, told US Ambassado C cr as hran that "everyone" has
come to recognize the danger from Communist elements in Indonesia. He said
there is evidence that the Chinese Embassy is working with Indonesian
Communist leader Al,min. Pringgodigdo.expects Sukarno$'s speech on 17 August
(Indonesian independence day) to be a sharp denunciation of subversive
elements. However, he said some cabinet members consider palace drafts of
independence da s eeches for leaders outside Djakarta too openly anti-
Co enta Government inaction against Communist activity in the past
has been due partially to the presence of left-wing. sympathizers in the
government. Responsible officials, however, apparently considered the
incidents of 5 and 6 August sufficiently serious to warrant widespread
arrests, particularly in Medan.
The contin-
uation of a forceful policy is dou- u ess serious nc ents persist,
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7. KOREA. North Korean ""Liberation Day" slows mention night flying Of
particular interest in the long list:of slogans recently issued by the
North Korean radio to commemorate 15 August 1945, Koreaas liberation day,
are those exhorting various branches of the armed forces to strive "to
annihilate and clean up the enemy under any combat conditions." "Night
formations"" of the "Air Force of the Republic" are instructed to "refine
your'martial arts and yourselves with advanced air arts." "Engineers" are
instructed to perfect themselves in the laying of "river.crossing bridges,""
and "tankmen" are ordered to "'drive your tank e heart of the enemy
positions.,??" Comment. While slogans are frequently employed for morale purposes,
it is interesting that night flying by the North Korean air force is men-
tionedo The incidence of night attacks on UN aircraft over North Korea has
risen from nil four months ago to several encounters per week at present.
$. JAPAN. Japanese press suspicious of Soviet intentions regarding treaty:
Japan's three leading newspapers viewed the USSROs acceptance of the peace
treaty invitation with suspicion, warning the Japanese not to fall into a
Communist trap.
Yomiuri Shimbun said that the USSR may intend to check Japan's rearma-
ment and to prevent-the lease of military bases in Japan to the United States;
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to drive a wedge between the US and the British Commonwealth countries;
and to employ the Japanese peace treaty as a part of the Soviet world-
wide peace offensive.
Asahi Shimbun predicted that Russia would attempt to rake propaganda
capital out of the San Francisco conference,, while __ 'a 5S...~ con-
tended that Russia's decision to participate in the peace conference is
art of the peace o ' ive which began with the Korean peace offer.
Co: mmentSoviet attendance might pave the way for the Socialist Party,
which has pposed a separate peace with the non-Corrnnunist powers, to parti-
cipate in A non-partisan Japanese conference delegation -- a move which would
make the treaty more acceptable to Japanese public opinion and reduce expected
political attacks on the government. Moreover, Soviet attendance will relieve,
at least until Soviet motives become clearer, the uneasiness which has pre-
vailed over the possible consequences of a partial peace. There will be con-
cern, however, that Soviet obstructionism might, at the last moment, delay the
long-desired conclusion of peace.
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SECTION 3 (WESTERN)
1. GERMANY. Plans progress for a single German veterans' organization: There'
s acre era e p ann ng o orm one arge ve erans? organization in Germany.
It would include all former officers, soldiers, and civil servants of'the
Wehrmacht and the surviving dependents of personnel killed in service. Those
involved in the attempt to build a single organization--temporarily known as
the German Soldiers, Federation---include chiefly leaders of the present
German War Veterans' League (BVW), headed by Admiral Gottfried Hansen. (The
BVW has been concerned primarily to obtain pensions for former career soldiers,
whereas the scope of the new organization would be much broader.) According
to former General Hasso von'Manteuffel, himself the leader of the Grossdeutsch-
land Division rou the chances are good for the creation of the unified
organization. 25X1
Comment: A single, strong veterans? organization could considerably
influence attempts to establish a German defense force, The Bonn Government
cannot afford to run directly counter to the demands of those who would have
a large role in rearmament, Neither Hansen's nor Manteuffel?s group is
considered to be opposed to rearmament at present, but the views of their
organizations have not crystallized. There is the danger, too, that anew
unified group might fall under the sway of those seeking primarily to restore
the power and influence of the military in German society.
2, FRANCE, Influential Le Monde under new editor: Hubert Beuve-Mery has
resig en d is posi ion as editor o e Monde e fective 15 September, and will
be succeeded by Johannes Dupraz, a riglt wing Popular Republican deputy,
Dupraz, who edited a prewar newspaper which represented business interests
in the Lyons area, has .a record of being close to management and big business.
Mond
e
is
t
re
now expec
ed to r the neutralist line it has championed
re
cen y
.
Comment: Le Monde is considered the most influential newspaper in
-continental Eurape wes of the iron curtain. Beuve-Mery is a pessimist
whose predilection for philosophical discussion and escapist theories led
him to reason that European culture is,threatened equally from the East
and the West, Dissension on his editorial staff and the setback suffered
by neutralism in the June elections undoubtedly influenced his decision
to leave Le Monde,
The new editor will probably endeavor to keep the wide following
Le Monde has developed among the younger elements in France, His back-
ground uggests, however, that this paper will not adopt a friendlier at-
titude toward the US unless business becomes more favorably disposed toward
the new productivity program and the Schuman Plan, both of which are closely
associated by business with US influence in France.
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AUSTRIA. Press renews criticism of government measures in meat crisis:
Short supp ,es o mea in ienna s rrec the weekend press to new criticism
of government measures to alleviate.the crisis. The Chancellorts appeals.
to farmers to deliver their hogs to the official markets, his warning that
price ceilings would in.any case be maintained, and the promise that imports
of pork products from Denmark, Yugoslavia, and West Germany would be
continued, failed to quiet the critics, The Socialist Arbeiter Zeitung
reiterated Ministry of the Interior charges that dealers have held back
canned goods and charged excessive prices in violation of the anti-
profiteering law. Some substance was lent this allegation by the Minister
of Interior's announcement that 48O tons of US canned meat would be sold
only on ration tickets to keep it out of illegal channels. The Communist
version of the crisis: profiteering by the big farmers; US unloading of
old canned meat- a solution through-increased imports from people's
democracies.
Comment: The Austrian Government has taken this occasion to release
435 me ric tons of canned meat from Vienna stockpiles (accumulated as a
security measure against a possible blockade) with the promise of replace-
ment in the future. The US Legation has also authorized release from the
stockpiles of 565 additional tons of canned meat, conditional upon October
replacement. The Legation has approved the disposal'on the grounds that
rotation of stocks would in any case be required next year when market
conditions will perhaps - be, less favorable.
ITALY. Romerotests Czechoslovak ^radio broadcasts as insulti: The
a ian Foreign Of ice as~ ..livered strong protes tothhe ?Czechoslovak
Government, requesting that it end the campaign of "Ifalsifications" and
"insults" conducted by various Czechoslovak radio stations in broadcasts
about Italy. It asserts that similar complaints could be made by Italy
against countries behind the iron curbaine The Foreign Office particularly
protests the broadcasting of certain programs by Italians in Czechoslovakia
in such a way as to give the impression they originate in Italy, The
Italians charge that the Prague radio's "agitation and interference" in
the Italian local elections last spring constituted a "grave violation of
diplomatic relations".
F
Comment: Frequent trips by prominent Italian Communists to Satellite
countries mar be connected with such broadcasts. Among those most recently
reported are the visit of a C omunis t deputy to Prague on 24 July and the
trip to Warsaw a week later of a group led by the party's top propagandist.
SPAIN. Hints of more liberal application-`of US loans hearten private
interests: Genera ranco's promise o greater economic reedom an less
staE intervention, which appeared in a recent press interview with an
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American correspondent, has struck a new note of confidence among farm,
industrial, and business circles in Spain. US Embassy believes that,
although Francois statement appears timed as a bid for additional US
financial aid, the appointment of Arburua to the new Ministry of Commerce
with control over'the under-secretariats of Foreign Trade and Merchant
Marine as well as the Food and Transport Board, may indicate some shift
of emphasis from a policy of rigid state control and uneconomical industrial
programs to one of stimulating private enterprise.
Comment: The intransigence and unrealistic economic policies of former
Minis er of Industry and Commerce Suances have proved a serious obstacle to
speedy approval of Spanish loan applications by the e Export-Import Bank.
Arburua, on the other hand, has written during the past year a series of
newspaper articles urging the Spanish Government to adopt more enlightened
and liberal economic practices. Favorably regarded by US officials in
Madrid, he should be more cooperative than his predecessor in working out
the details of the US-Spanish loans agreement,
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6. UNITED KINGDOM. Forei' n Office in "general a reementtt with Acheson on
M e r m a n rearmament: high Foreign O :ice o icz has Fated tha the
reign O ice is in "general agreement" with the substance of Secretary
Achesones recent letter to Foreign Secretar Morrison on Germany and
European defense forces.
Comments There has been some evidence that the UK Government is looking
with." creasing favor upon the proposal supported in the Acheson letter for
a German military contribution through a European army, though doubtsreYnain
as to the details of its relationships to NATO. The Foreign Office has been
somewhat more sympathetically inclined toward the:European army proposals
than the Cabinet, which has been very cautious about any measures involving
German rearmament for fear of possible domestic political repercussions,
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16 August 1951
CIA No. 49307-A
Copy No. /7 ;
TO THE DAILY DIGEST
Not for dissemination outside O/CI and O/NE.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary of significant reports has been prepared primarily
for the 'lternal use of the Office of Current Intelligence. It does
not re tepent 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.
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SECTION 1 (SOVIET)
1, USSR, Embassy Moscow anticipates submission of Japanese peace treaty
'eounterdraftn by USSR' Embassy Moscow considers Soviet attendarr a at
the Japanese peace conference not surprising in view of Moscow's basic ob-
jective of delaying the treaty, of previous indications that it would pre-
sent new views, and of the new Soviet pretense of a desire for settlement
on major issues with the West,
The Embassy anticipates that the USSR will demand O hinese Communist
participation at the conference and will restate its past criticisms,
probably by submitting a counterdrafta Such a counterdraft would be coordi-
nated with attempts to capitalize on reservations of India, Burma and other
states to the US-UK draft,
The Embassy reports that in a conversation with the British, Ambassador
Gromyko stated that,"it would be incorrect to assume that Soviet views will
differ from those previously presented on the subject of'the Japanese treaty."
The Department of State is informing the Soviet Government, in a note
acknowledging Soviet acceptance of the US invitation, that the San Francisco
conference is not being held to reopen ne otiation. on peace terms,0 25X1
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Cotes There are several indications,among them Gromyko's remarks on
20 July to Ambassador Kirk on possible Russian suggestions, that the USSR
will submit a draft for the Japanese peace treaty. The 10 June note from
the Soviet Foreign Office concerning the Japanese treaty negotiations pro-
posed a conference for "consideration of available drafts,."
2; TRIES , Trieste Military Commander opposed to election postponement: The
British Commander of the Allied Military Government is opposed in. principle
to postponing the Trieste elections. He feels that an indefinite postpone-
ment would allow the Italians to undermine AMGts authority and sees no
genuine Italian effort to compromise with the Yugoslavs. The commander
indicated that he would risk a limited postponement, however, if there is
real prospect of ooeninp, negotiations for a Trieste settlemen
Comments In view of the currently inflamed state of Italian public
opini'onon it is unlikely that the Italian Government could make
sufficient concessions to effect a settlement,
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3. PHILIPPINES. Philippines concerned over Soviet presence at San Francisco:
Philippine Secretary of Foreign Affairs Romulo, seriously concerned over Soviet
participation in the Japanese peace treaty conference, fears that Russian
maneuvers may leave the Philippines as the only Asian nation prepared to
sign the treaty. He considers that his government's position would then be-
come tenable., from a domestic viewpoint, in the face of demands for repara-
tions. Romulo recommends that if the US and the UK are prepared to modify
the reparations clause in anticipation-of this difficulty, they do so now in
order to forestall the expected Soviet maneuvers..
US Ambassador Cowen, commenting that he does not regard Romulo's concern 25X1
as merely a device for reopening the reparations question, states that he be,-
i i
i
nos w
ll stand by their acceptance of the present draft.
I
Comment.- The reparations clause of the treaty has been criticized by
Burma, Ind eon sia and the Philippines. The Philippine Government has finally
accepted a slightly modified draft despite extensive public opposition,
IM-OC INS,. Vietnam Government insists on s-glniLig Japanese treat An of-
ficial Vietnam News Agency release charges that the US has failed to invite
Vietnam to take part in the signing of the Japanese treaty,"even though both
the French and Vietnamese Governments have made their views in the matter
quite clear," The release considers "unworthy of a democratic nation" the US
hesitancy to support the Vietnamese participation on the
Indonesia and Pakistan might claim that such participation grounds that Intito
diplomatic recognition. The release suggests thattheUS might, tantamount
India,
be seeking to appease Communist China and calls itude "an insult
to the Vietnamese people?"
Cotes An experienced, out-of-office Vietnamese politican told the US
Legation that the Japanese treaty issue had attracted very little attention
in Vietnam until orders were issued to all public and private media that this
theme was to be played up. The French authorities have vigorously defended
Vietnam's "right" to sign the treaty, and probably welcome this rare oppor-
tunity to act as the champion of Vietnamese interests in the face of acoali-
tion of none-too-friendly forces, among them the US. In this case, as in
the case of other recent developments involving the US (signature of the US_
Vietnam ECA agreement; ECA publicity re its relief
the strongly French influenced press of Indochina hasod gram in berately missrrepre-
sented "US Policy, As the French are well aware, the US has made strenuous
efforts to-bring about Vietnam's attendance at the San Francisco conference.
APAN410RtaSA. rationalists request US assurances regarding Jaoanese tre
In a verbal statement to US Minister Rar}kin in Taipei on 13 Au
Minister Yeh renewed the Nationalist Government's request that the USoundeerr
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take to place Japan under an obligation to conclude a bilateral peace treaty
with the Nationalist Government not long after the signing of the multi-
lateral treaty, and on substantially the same terms,,
Minister Rankin points out that the Chinese officials fear a rebuff
from the Japanese, which, coming on top of their exclusion from the San
Francisco conference, would have adverse domestic political effects. He
suggests that the US might assure the Nationalists that it will do its best 25X0'
t
Governmen o see that the Japanese sign a similar bilateral treaty with the Nat onal', t
t shortly after tie San F
i
ranc
sco confer
ence,
Comments The draft treaty binds Japan to enter promptly into negotiations
with Allied Powers that have not signed the treaty, if they wish such negotia-
i
e
tionnss. o It
The oedoes not, not, ho officials, specify which Chinese Government will deal with
Japan,, resent being placed inialposition fearing of having possible
to "negotiate wiithtthe
vanquished nation.
;
treaty. dings and delay the signing, of the
JAPAN O a anese officials sce Beal of Soviet intentions: The immediate reac-
tion of Japanese officials to the Soviet acceptance of . the peace treaty invita-
tion was primarily one of marked scepticism, according to the US Political
Adviser in Tokyo. Government officials were concerned also lest the presence
of the Soviet dele g a e di a e,
Comments Japanese press reaction was similar, with all three of Japan's
leading newspapers warning against a possible Communist trap,
Japanese proceeding cautious in modifying t7ccubation reforms: Accord-
ing to the us Political Adviser, in Tokyo, the
taken b the Ja only known actions formally under-
y panese Government to modify the Occupationrs reform program in
response to SCAPas permission of l
t
as
May are () th
.aose relating to the depurge
and b the Cabinets ado tion of certain amendments to the antimonopoly law.
C oWmnents . A letter from P
Iy as belatedly realized adverse ter-
national repercussions that woo d'result from wholesale
tion policies, hrevision ofpcope.-
Although Yoshida reportedly desired to effect the changes while the
was still in effect he Occupation
robabl h
r
1111"s SCAP lap
,t April ed ,that need for drastic modifications inethe?reforms?inst tuted by the.Occu~
pation, some of which would virtual
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