CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000900130001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: December 12, 2016
• Document Release Date: January 4, 2002
• Sequence Number: 1
• Publication Date: April 17, 1952
• Content Type: SUMMARY

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
17 April 1952
OCI No. 5161
Copy No. 266
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary 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.
State Dept. review completed
SECRET
SECURITY INFORMATION
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THIS MATERIAL CONTyINS INFORMATION AFFECTING TH:]~ 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.
GENERAL
25X6
Paris Embassy analyzes latest Soviet note on Germany: The
ierscan Or ii` in ar s regar s t e ac o any real Sov-
iet advane- in its position on Germany as the most important
feature of the 9 April note. The USSR_presumibly cons
widders
its best Let is to keep alive the thout
making any serious proposal while it attempts to influence
Western' decisions.
The possibilities the USSR may hope will work in its
favor, the Embassy suggests, include: (1) weakening of the
.Adenauer regime and its replacement by a government opposed
to European defense integration; (2) a sharpening econ-
omic-political crisis in France and England; (3) breakdown
of unity in the Western powers' foreign policy; and (4)
United States election year problems and reduction in Mutual
Security funds.
From the Soviet point of view, a practical failure of
Western integration without a loss of Soviet control of East
Germany may still appear an attainable objective and one
preferable to a unification and neutralization of Germany with
all the ensuing uncertainties. (S Paris 6330, 15 Apr 52)
Comment: It is very unlikely that the Adenauer regime
will e replaced before ratification of the European Defense
Community program.
2. Peiping invites labor organizations to May Day celebration:
XIY' u one o_. e major a or e era ions in n is accep-fed
the invitation of the All _China Federation of Labor to attend
the May Day celebration in Peiping and to undertake a four
week tour of China. The United States Embassy in New Delhi
considers this a serious set-back to the InternationaltCon-
.federation of Free Trade Unions (ICFTU),
failure of the ICFTU to arouse the non-Communist trade unions
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'Ir
SECRET
in Asia and to the danger of Stalinist maneuversCommunist populref
the suecessfu~llbupastuyear .
India during
Even the anti-Stalinist,
tedoalthoughiiitsusophasticateda
labor federation (HMS) accep , thou leadership now seems to have
ws asesaidoto havegbeenabasedton
wisdom of the decision,whlc regime, curiosity over
Indian recognition of the Peiping
conditions in China, and the desire to observe World Fed-
eration of Trade Unions strategic plans in th10making.
13 Apr 5.2; C Bombay 4940, Apr 52)
(S New Delhi 6035,
Comment: The WFTU, curtailed in the West, has accel-
ro xam in Asia and the Middle East, re-organized
itirsate colonial p dee'partment, set up a permanent Committee for
Africa, and devoted much attention to plans for expansion in
colonial and underdeveloped areas.
Direct invitations were sent fromtth AllChai-Chinmana
of Labor to many countries, bu Vice r Liu
i wrote to WFTU Secretary General Louis Saillant in
Ding articular desire to invite delegates
December expressing a p
from Africa and the Middle East and asking him to transmit
the invitation to organi?timnsdthat1Pei;?inm hastnoSe
countries. That procedure plie
direct contact with Communist movements in those areas.
EASTERN EUROPE
Czech press publishes US and Soviet notes on the German
he
is e on
3.
ch papers p
A ze
rea y:
peace ch
This is
u ex s of the US note of 25 Mar ? QhAprilman
n
question and the Soviet Unior s replor,jiT _ c, il American
the first time in several y=aw's' press has carried the
Embassy in Prague, that the Czech p 736, 14 full text of any United States communication. (R Prague
15 Apr 52 )
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FAR EAST
25X1 C
Communists in eastern Korea reportedly emphasizing
defense: Both North Koreans and Chinese Communists in--The
eastern and east central Korean battle zones are preparing
for defensive action
The building of a second and a third defensive line, and
the distribution of ammunition and rations in the front lines
are cited as supporting this information.
25X1A
25X1 C
25X1 C
25X1A
25X1 C
Comment: An unusual amount of recent enemy military
activithas been reflected in an increasing volume of reports
on Communist intentions.
at Panmunjom: The North Korean delegation at the truce to _s
will propose the establishment of a "special subcommittee to
5. Political issues to be raised by Communist negotiators
discuss political issues,"
The proposal will
be submitted prior to the resolution of the neutral observers
,issue.
I the North Koreans were
ordered by their Soviet advisers to delay settlement on all
major issues until 20 May.
Comment: General Hsieh Feng, a Chinese Communist, is
the senior representative on the subcommittee dealing with
neutral observers. Recent talks, however, have been conducted
at the staff level with North Korean participation.
Agreement has been reached by the negotiators to re-
serve discussion of political issues until a cease-fire is
effected. Although no reason is given for the enemy's repor-
ted intent to delay the talks until 20 May, the heightened
tempo of enemy military activities may be related to this
strategy.
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3 17 Apr 52
25X1A
25X1 C
25X1A
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NEAR EAST - AFRICA
6. Tudeh plans May Day demonstrations throughout Iran: A
repor rom a ran states that e u e an is ron organi-
25X1C zations are planning large-scale May Dayidemonstrations through-
out Iran.
forces are capable of con r iing vincial. demonstrations
but that a determined Tudeh effort in the capital would severe-
ly tax government forces there. The report concludes that in
spite of army advice- Mossadea will not extend martial law
to include 1 May. 25X1A
Comment: Martial law, which was imposed in Tehran
immediat 1y following the Tudeh riots of 28 March, is sche-
duled to end in late April. Mossadeq, who is allegedly alarmed
by the recent riots, may extend it. Last year, despite army
advice, Mossadeq permitted Tudeh May Day demonstrations. The
security forces, however, are considered capable of successfully
controlling any isolated Tudeh activities along these lines.
7. King Farouk considering change of government in Egypt:
King Farouk is efI...ermine id-to preven the re urn to power of
the influential Wafd Party and will therefore be forced to
replace Prime Minister Hilali Pasha with someone who is pre-
pared to govern Egypt ind finitely without Parliament. The.
25X1 C that the two like y candidates to succeed a i are former
Minister of Foreign Affairs, Abd-al Hamid Badawi Pasha, and
the current Minister of Interior, War, an- Navy, Ahmad Murtada
al-Maraghi Bey.
Comment: There has been some evidence in recent weeks
a-i. may not wish to continue in office if Egypt is
17
that i
unable to reach an agreement soon with Britain.
8. Anti-American sentiment increasing in Morocco: An increase
in anti-American sentiment an propaganda in Morocco is
reported by a nationalist source. Agitators of the principal
nationalist ventuallwargand, exploiting toe widespread
f involvement.
fear of f an an e
The older and more moderate Istiqlal leaders, who had
held out hope of favorable
Assembly, now find their authority weakened. E: I
25X1A
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25X1 C
25X1A
25X1A
25X1A
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Comment: Factors more responsible for the increasing
anti-.merican sentiment than the General Assembly's refusal
last December to place the question of French policy in Morocco
on its agenda are: (1) the presence of large numbers of
American airbase construction employees causing local irrita-
tions; (2) the strong anti-American tone ofRFrench _co tr olled
newspapers, especially those backed by the
and (3) Resident General Guillaume's consistently disparaging
attitude toward American diplomatic personnel stationed in
Morocco.
9. French Moroccan police to be purged of Communist
Morocco
sympat izers: The new rec or o ecuri .Y
plans to dismiss all militant syndicalists and Communist
sympathizers from the Moroccan police. As a test case, the
secretary of the local union of Casablanca police, which i
affiliated with the Communist-directed General Labor Confedera-
tion. suspended from the force and expelled from Morocco.
25X1A 25X1A
Comment: The police union had been agitating for improve-
ments i.n t e housing situation and for other economic benefits.
In protest against longer working hours without an increase in
pay, the Casablanca police strictly enforced all traffic regu-
lations on 28 February, thus snarling traffic.
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WESTERN EUROPE
Moscow Economic Conference propaganda scores gains in
West ermany: Resentment of the "fact" that West Germany was
not adequately represented at the Moscow Economic Conference
and is not allowed normal Eastern trade has increased follow-
ing the announcement that trade negotiations between England and
Communist China were arranged at Moscow. Meanwhile the Commu-
nist press and certain non-Communist journals are making an
extraordinary effort to exploit alleged discrimination against
West Germany. (S Frankfurt Sitrep 13, 15 Apr 52)
Comment: Many anti-Communist newspapers in West Germany
have o owed the line that the "ruble stinks only in Bonn,"
and have implied incorrectly that other Western countries were
permitted official representations at the Moscow conference.
These papers have often ignored the fact that at least four
West German businessmen did attend the conference.
East German propaganda has been that the West Germans
should "get on the bandwagon before the British run off with
the spoils." It has also tied in the theme that the West is
to blame for the current failure of interzonal trade negotia-
bons.
Strife increases within independent union of non-Commu-
nist French labor: The Embassy in Paris reports that t e
feud within the right-wing Independent Labor Confederation
(CGSI) is now a "full-fledged battle" which renders compromise
"practically impossible."
The prospective adverse effect of this split on the pro-
.ress of the non-Communist trade unions' effort to join forces
against the Communist-sponsored General Labor Confederation
(CGT) in strategic industrial centers has seriously alarmed
a "leading labor source." The Embassy believes that this
factional breakdown is most unfortunate, since it might set
a precedent for similar upheavals in other non-Communist trade
unions now when there are indications that the CGT itself is
vulnerable because of internal difficulties. (S Paris 6327,
15 Apr 52)
Comment: The heterogeneous composition of the CGSI is
respons-i51e-for this schism, which is basically a struggle
for union leadership between the majority faction of indus-
trialist and RPF backers and; the minority faction of ex-
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SECRET
Vichyites, upon whom the CGSI depends heavily for financial
support. and the
Despite the potential strgICFTU ta outheeForcelOuvriere,
financial aid being given by the
the non-Communist unions can be expected to ma a rea Pro-
after they have proven their
gress against the CGT only
effectiveness by definite gains for the working classes.
Communist Claims for Moscow Economic iConference e ddisults
12. recse Trying to C counted in Austrian press* Communist and Soviet
rom t e oscow conomic Conference,
ublicity to alleged trade
and non-
media in Austria have given wide p both alleged
Orbit made to the Austrian delegation by the chief of
Orbit countries. Quoting a;Moscow broadcast by they ell of
the Austrian delegation, Professor Dobretsberger,
that an important exchange agreement with the Soviet Union
"has been concluded," that Poland offered to double coal de-
was reached" on Hungarian
liveries, and that "'a settlementto
trade obligations toward Austria.
These efforts to attach practical significance to the
etin, however, have been derided in the non-Communist
Moscow me g
press. These papers demand Dobretsbergerv4iritdismissal
his c m
l ittee?s
P nnc+, call his claims a hoax, P ind recall
cver
a
lack of f official competence in trade nebeenapressing the recall
n
the Austrian Government has long trte e?
under to settle theiv
107 Apr#52~sR FBIS,eVienna~ 9, 11 and
menu . (U Vienna 3251,
12 Apr 52)
LATIN AMERICA
y
New Argentine revolt reporte
r or to June,
13. ant 1.na P
Ad to take place in rg
1 .4
25X1X is sc
this revolt
25X1X persons not Previously a '^^.iated
-
ssina
is better planned an in
"=,rnment. Plans ca for the ass,
ve
t
l
er
and army in
with plots against the ggovernment officials
n General
tion of Peron and other government
shock for~:cs or the Gen
tion to handle any resistance by
Confederation of Labor.
SECRET
being planned: A revolt
dl
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25X1X
25X1X
25X1X
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25X1X
Reportedly, the government knows of dotting 25X1A
and is "extremely worried" about his activities.
25X1A
25X1 C
Comment: In March
several small groups were plotting independently to
assassinate Peron and his wife, but apparently there is no
1atell-organized plot. Although the army does oppose the power-
ful influence of the General Confederation of Labor, there
are no other indications that influential army leaders favor
Peron's assassination or that they have managed to evade
Peron's rigorous security measures by engaging in such plots.
The government's apprehension concerning a possible rem
voit,however, was indicated in February when it made hundreds
of unpublicized arrests.
14. Disorders may occur in Bolivia: Upon his return to
Bolivia, az stenssoro, lea Tex o the Nationalist Revolutionary
Movement, violently denounced the small upper class as prin-
cipally responsible for Bolivia's ills, and threatened maximum
punishment for military personnel " responsible for last week's
deaths." He promised to diversify-the country's economy to
end its dependence on the price of tin, and to name a commission
to study nationalization of the mines.
Order has apparently broken down in the Catavi mining
area, where the army has been disarmed and labor is hostile
to mine officials. In response to the company's request for
aid in restoring order, the government dispatched the labor
leaders who were responsible for the 1949 massacres at Catavi.
( C La Paz, 396 and 397, 15 Apr 52)
Comment: Government statements and actions thus far do
not appear Rcesigned to deter vengeful acts by the Movement
against the former government and its supporters.
The mine manager at Catavi has considered the evacuation
of staff personnel, which includes 45 Americans.
15. Venezuelan police announce discovery of new revolutionary
plots: The Venezuelan National announced
the arrest of fifteen persons and the seizure of a bomb cache
in connection with an alleged Democratic Action plot to assassi-
nate Junta strong-man Perez Jimenez. According to "confessions"
of the prisoners, the attempt on Perez was to be part of a
17 Apr 52
25X1 C
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SECRET
larger plan of terrorism scheduled for Holy Week, April 19
and July 5.
The US Embassy believes that tbP police discovered the
lrot annedt co(nvince
bombs as stated, but is
Caracash4g3an15cApr152;
attempt against Perez P
U NY Times, 16 Apr 52),
Comment: The Security Police uncover arms caches
perio ca y. Current government attempts to link the new
discovery to the disastrous fire panic in a Caracas church
last week and to an alleged artsofnth,e?continuingycampaign
Embassy suggests, be merely pa
against the outlawed Democratic Action Party.
Fbwever, bona fide Democratic Action disturbances --
whether on patriotic days such as 19 April and 5 July or on
other occasions -- can probably be expected as the election
campaign unfolds.
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TOP SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
TOP SECRET SUPPLEMENT
17 April 1952
CIA No. 4946
Copy No.
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 summary of significant reports
Current Intell gen eprilt does
for the internal use of the Office of
not represent a complete coverage of all
Comments represent the
or in the Office of Current Intelligence.
immediate views of the Office of Current Intelligence.
TOP SECRET
SECURITY INFORMATION
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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 OF. REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
GENERAL
Britain anticipates prolonged Soviet campaign against West
German integrations The British Foreign Office believes t hat
the Soviet note of 9 April may have been designed to elicit
a Western refusal to hold discussions on a German peace
treaty, and that such a refusal would prejudice West German
ratification of the European Defense Community treaty and
the contractual agreements. Britain favors Chancellor
Adenuaer's suggestion that the Western reply point out the
necessity for advance agreement on essentials without actual-
ly rejecting the possibility of four-power talks.
Foreign Secretary Eden urges that the Western reply be
coordinated in London or Paris rather than in Washington
to avoid European criticism that the United States is dom-
inating Western policy. (S S/S, London 4616 and 4628, 15
Apr 52)
Comment: The chief of German affairs in the British
Foreign office had stated earlier that the USSR could make
real trouble in its efforts to prevent German integration
with the West by offering genuinely free election of an all-
German Government. Britain evidently now believes that the
USSR is preparing a prolonged diplomatic campaign aimed at
blocking the ratification, if not the signature, of the
EDC treaty and the Allied-German contract,
West German ratification would be endangered only if
the Soviet Union offered proposals for unification which
guaranteed Gerir.any's independence.
1 17 Apr 52
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FAR EAST
2, Japan denies intention of buying Iranian oil: The
Japanese Foreign Office told the United States W;litical
Adviser in Tokyo that the reported attempts of a Japanese
trade delegation (see OCI CID 31 Mar) to purchase Iranian
oil are without government support. It also indicated
that the Japanese Government would deny the allocation of
foreign exchange for Iranian oil in view of the oil's
questionable title. (C S/S Tokyo 2202, 15 Apr 52)
SOUTH ASIA
3. American rubber agreement with Ceylon to block ship-
ments to China is unlikely: The American Embassy in Ceylon
says at it is unlikely t at the United States can conclude
an agreement to buy Ceylonese rubber to block China rubber
purchases until after elections take place and a new govern-
ment is formed on 10 June,
The Prime Minister, who would desire an accord under
other circumstances, believes that such an agreement might
compromise the voting support for his United National Party,
The Permanent Secretary of External Affairs, moreover, says
it is legally impossible for the government to sign an agree-
ment before the elections since parliament is already dis-
solved, (C S/S Colombo 574, 10 Apr 52)
Comment: Indications are that no rubber agreement will
be reached before the elections or, in the event of a United
National Party victory, even after the elections. The party
is closely associated with major rubber interests that would
be unwilling to see the government sign an American agreement,
before or after the elections, which might alienate the elect-
orate.
4. New Anglo-Egyptian statement drafted: The text of an
exchange of letters on defense problems ha now been agreed
to by the Egyptian Prime Minister and the British Ambassador
in Cairo. Egyptian agreement, however, is conditional on the
TOP' SECRET
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conclusion of a satisfactory statement on the Sudan,
The British Foreign Office feels that if the British
Cabinet approves this text, the conversations in London
with the former Egyptian Ambassador,Amr, who is scheduled
to arrive on 16 April, can be confined to the Sudan, The
Foreign Office still refuses to suspend the new Sudanese
constitution, but hopes that Egypt may be induced to as-
sociate itself with the constitutional development?
(S S/S London 4618, 15 Apr-52)
Comment: The formulation of a statement on the Sudan
satin act tory to both parties is remote as long as the
British Foreign Office refuses to recognize Farouk's title
to the Sudan or to suspend the new constitution.
TOP SECRET
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