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CURRENT INTELLIGENCE DIGEST

Document Type: 
CREST [1]
Collection: 
General CIA Records [2]
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T01146A000800290001-3
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
18
Document Creation Date: 
December 9, 2016
Document Release Date: 
March 19, 2001
Sequence Number: 
1
Case Number: 
Publication Date: 
March 26, 1952
Content Type: 
SUMMARY
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AttachmentSize
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? Approved For Release` O1/04/10: CIA-RDP79TO1146A000800 001-3 SECRET SECURITY INFORMATION US OFFICIALS ONLY 26 March 1952 OCI No. 5145 Copy No. 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. SECRET SECURITY INFORMATIOT Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For ReleW 2001/04/10 : CIA-RDP79T01146A000U6290001-3 THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, S=L 793 AND 794, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. SOVIET UNION 1. Soviet positior on German elections and frontiers reaffirmed: Upon rec:eini-OT the Wes ern answer to the oviet proposa or a German peace treaty, Soviet Foreign Minister Vishinsky re- affirmed Soviet opposition to a UN-sponsored investigation of electoral conditions in East Germany. The Soviet Foreign Minister reiterated to the American Charge that the USSR considered membership in the North Atlantic Organization incompatible with the principles of the UN, but maintained that it was not unnatural for a sovereign state to have its own defense-forces. With regard to the question of German frontiers, Vish- insky said teat contrary to the interpretation contained in the United States' note, the Potsdam Conference had finally defined the Polish and German frontiers. (S Moscow 1529, 25 Mar 5,2) 2. Soviet Ambassador to East Germany outlines Soviet policy: ccor ng o an unconfirmed report, in early March, Soviet Ambassador Pushkin informed three leading East German Com- munists that the Soviet Union was going to make a new bid for peace with Germany and that it wanted to create a pol- itically independent, unified Germany Which would be econ- omically dependent upon the Soviet Union. Finland was cited as an example of what was intended. Commenting on the internal German situation, Pushkin demanded that the East German leaders regain the confidence of the people, take advantage of the pro-Soviet feelings of the West Germans, and win the support of the Social Demo- crats. (R FBIS Cologne-Bruehi, 24 Mar 52) SECRET 26 Mar 52 1 Approved For Release 2001/04/10 CIA-RDP79T01146A000800290001-3 Approved For Release 2%0/04/10: CIA-RDP79TO1146A0008002 01-3 Comment: Reports suggesting Soviet willingness to make concessions are not unusual when a German peace treaty proposal is being discussed. A recent unconfirmed report stated that in January Soviet Political Adviser Semenov told East German Communists that the Soviet Union was preparing a new plan for Germany, and as- sured the Communists that their position would not be jeopardized in the long run. 3. Indivisible fund allocations increased on Soviet collective arms Col ec i.ve farms will hence fort i `-,fie v-bliga cato ap- propriate a sum ranging from a 15 percent minimum to a 20 percent maximum of their total monetary income for allocation to the collective farm indivisible fund. The US Embassy in Moscow speculates that the increases may help solve old prob- lems involving inadequate livestock shelters and equipment, and new problems arising from the concentration of economic centers on the consolidated farms. Additional capital financing to facilitate farm diversification will also become available. (S Moscow Weeka 12, 21 Mar 52) Comment: The indivisible or capital fund of a collective farm is iced to finance capital reconstruction and repair. In the future the farms will have to rely to a greater extent than in the past on savings for capital expenditures. In turn, this measure will limit the purchasing power of the peasants for consumer goods. 4. Probable new division located in southwestern Bulgaria: has iocated a new Bulgarian aivision in Canaan Pew -Nevokrop area of southwestern Bulgaria. this division appears to be part of the Bulgarian First Army, ree divisions of which Yugoslav intelligence has reviousl identified in western Bulgaria. 25X1A Comment: This report tends to support indications de- rivedTrom'various field reports that a new Bulgarian division has been organized opposite the Greek border in the strategic Struma Valley. Interrogations of Bulgarian defectors and ref- ugees have suggested the presence of new elements in this area replacing units of the Bulgarian 7th Division, which is be- lieved to have moved last year up the Struma Valley to the Stanke Dimitrov if not farther north. SECRET 2 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 ? Approved For Release 2W I04110: CIA-RDP79T01146A000800 001-3 5. Finnish Premier faces dissidence in his party: In a move.gen- era y -cons ea` Fe-Z - o`Tiaveseen motivate .. ,_ a desire to bring his Agrarian Party into line over the question of economic stabilization, Finnish Prime Minister Kekkonen offered his resignation to President Paasikivi on 21 March. The President requested Kekkonen to stay on in office through 2 April when the Agrarian Party has been scheduled to meet in order to clarify its stand on the economic stabilization issue. The US Legation in Helsinki believes that the Premier will succeed in regaining control of his party. (R Helsinki 383, 22 Mar 52) Comment: Prime Minister Kekkonen has experienced con- sidera6Te Tfficulty in recent months in obtaining strong support from his party for government policies concerning the economic stabilization program. The immediate issue over which he offered his resignation concerned the fixing of a lower price.for butter. 6. Dismissed Rumanian Finance Minister reported still in evidence: `fie me r ci an Le ae ion- in Bucharest hi Been in 'orme3--- Fy-TTie that former Rumanian Finance Minister si a Luca 's limousine moves to and from his home as usual. The Legation concludes that Luca apparently is not under ar- rest, although rumors of unpublicized purges still persist. (C Bucharest 373, 21 Mar 52) Comment: Luca's standing as Vice Premier and Party Sec- retary'& es not seem to have been affected by his dismissal as Minister of Finance. The shake-up in the Ministry appears to have been occasioned primarily by unsatisfactory handling of the currency reform and financial policy. 7. Tito's party revitalization campaign analyzed by American rmfiassy ofT ciaTs __ th respect fo tEi Curren at emp' t to revitalize t e C5mmunist Party of Yugoslavia, American Embassy officials believe that although Tito has denied the intention of instituting a "Moscow-type purge," there is no doubt that a selective purge of party members is underway. The Marshal's reference to "no regret" at the possible loss of 100,000 party members must be causing extensive Communist soul-searching, according to these observers. In noting Tito's identification of Western petty-bour- geoise ideas as the principal disruptive influence on the party, Embassy officials suggest that Yugoslav leaders apparently be- lieve it possible to attack and limit Western influence without SECRET 3 26 Mar 52 Approved For Release 2001/04/10 CIA-RDP79T01146A000800290001-3 Approved For Relea 001/04/10: CIA-RDP79TO1146A0008QU90001-3 SECRET jeopardizing;, the continuance of Western aid. These observers conclude that while the revitalization campaign may produce a hardened party corps, it will probably be unsettling to the populace ana to the party itself. However, they saw no indica- tions that the party's control has been threatened. (S Belgrade 1148, 20 Mar 52 ) that tfe-_1 -"al e o many party members has been un- dermined by a combination of Cominform propaganda and closer ties with the West. Yet under present circumstances the Yugo- slav leaders are limited in the means available for combatting party laxi tg; and foreign influences. SECRET 4 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For Releas,001/04/10: CIA-RDP79T01146A0008O90001-3 SECRET FAR EAST 25X1 C read epidemics in China reported: Serious epidemics s 'id te C p e in Mane urea anc ina Proper are repor smallpox and y 25X1C In Manchuria, 25X1C the Korean are occurring the a en area and plague near border. Railroad traffic from Mukden has been restricted. At Tientsin in North China, anti-epidemic units in early March were conducting inspections of health condtions inpox, opulace against typhoid, the p homes and inoculating 25X1A and diphtheria. Vegetables and fruits from Manchuria are no th China longer being shipped to Nor An epidemic of bubonic plague in Canton is said to have caused 876 deaths between ld January and 15 March. Comment: Peiping's BW propaganda charges have given rise to numerous reports of epidemics throughout China. There is no firm evidence as yet, however, that epidemics this year have reached proportions that could be considered unusual for China, although the Communist authorities are stressing pre- blic health measures. The entive inoculation and other pu has reported that for example , ulating residents against bubonic local au on i plague in mid-March, and that particular attention was being given to travelers from Manchuria. 9. French High Commissioner disturbed over situation in Camp bo a: ct ng Hig omm ss oner au er as to American Minister Heath that he is extremely disturbed over what he considers a deteriorating political and security situation in Cambodia. The French official cited the anti-French attitude of the Democratic Party cabinet, the King's "timidity," the recent defection to the rebels of two widely popular and politically influential Cambodian leaders. Heath considers the situation "disquieting but not imme- diately dangerous" and attributes most of the French troubles in Cambodia to lack of a friendly approach and the persistence of "a martinet old-line colonial" attitude on the part of French officialdom. (S Saigon 1855, 24 Mar 52) Comment: Opposition to French hegemony among Cambodian leaders, eretofore relatively quiescent, has become increasingly SECRET 5 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For ReleaW2001/04/10: CIA-RDP79T01146A000> 290001-3 SECRET active as the authority and competence of the Cambodian 25X1C Government has been strengthened. 10. Viet Mi strata outlined: Viet Minh strategy, calls for attacks in over- t 25X1C nch posts in order. to exhaus w e ers on effect desertion t nd 25X1 C French reserves, to capturrearms,a o e few ns in t of Vietnamese troops. Thee which are not vulnerable to such attacks, tbe sandethe Vietltiih is confident that this strategy c fearing this opposed to the intervention of Chinese troop, this would mean loss of control to. the Chinese Communists. The Viet Minh is making a strong bid to gain the good will the "Bao Dai zone" by a policy of l of the population in l bthe ehaviar clemency toward prisoners andccontrastetavthe btoward population. This is in marked 25X1A of French Union troops. Comment: The Preponderance of evidence supports this te t - 25X1C gy. ra Viet Minh s analysis 11 Change of Premiers in Thailand predicted: Premier Phibun, 25X1A 7-srrequeted Genera 25X1A . ,_-.+ to nominate Police D rector eneral+phaonto,be isPremier be for two months. During this pe -- taken, after which Phi bun will return to office Comment: The Thai King on 24 March appointed Phibun to g succee amself as Premier.. Although pollitical-maneuvering will undoubtedly contihaf1Ah~bun would ease the indicated that a reappointment the immediate future. recently developed tensions during k another is expected to tau p presumably also Government, 'Karen, and Communist agreement, _- s t l Burmese Government to consider a prop Nat i north joining frc. to hineseof thisameeting are unkna'29x1A easstern Burma. While the lace soon to obtain a joint 12. Burmese Communists propose faint action ?mamint Chinese 4, +1 Natiana is s:epresen atives o ical of the have met with an oftheiparty for are r y reported to by .sal . is directed at the tationa 6 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For Release, 2Z0,01/04/10: CIA-RDP79T01146A0008060001-3 SECRET Comment: Another source recently reported a Communist decision to propose such joint action to Premier Nu, but indi- cated that Nu would reject it and continue his insistence upon a complete Communist surrender. On the other hand, the inclusion of a number of extreme leftists in the reorganized Burme cabinet indicates that such approaches would at least be carefully 13. Burmese delegate comments on Moscow Economic Conference: U Kya ?tin, principa owner o ur ma s ea ung newspaper and a violent anti-Communist, has accepted an invi- tation to the Moscow Eigurmaf '/orkersra,nd1~ea sathr nts~I~arty. leader of the pro-Communist o Hong Kong Kyaw Min has stated that he is to pay his own all way to subsequent but that he believes that the USSR will pay expenses. In his newspaper column, Kyaw Min wrote that the Russians were being given a "great opportunity" to explain their way successf of fe to him, they even Russia he e would "tetrab and seriously take Communism to heart." (C Rangoon 923, 24 Mar 52 ) Comment: The BWPP has close connections with the Soviet Embassyn Rangoon. Kyaw Min is a member Parliament an oS"Thenf inhtheost influential conservatives in United. States last year he caused diconsiderabletatncennsinsome Rangoon because of his strong of which were slyly directed at the Burmese Government. NEAR EAST - AFRICA 14. Greek. Deputy may attend Moscow Economic Conference: The ermit a -ar iamentary Deputy to Greek Government inten s to p attend the Moscow Economic Conference if the United~esoloes not object. The Greek Undersecretary of ForeignsAf ffairs t of the American Ambassador that.the Deputy,Parlia representative o would the Greek Rally, the opposition Party ,r ~, to Moscow in a private capacity to facilitatecGree bed thviDeputy tobacco negotiations. The Undersecree~~nt confirmed by the ad "definitely non,-Communist, a judg SECRET 7 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For Release.p01/04/10: CIA-RDP79T01146A00080Ul40001-3 SECRET Embassy, and declared that he would not propagandize upon his return to Greece. (C Athens 4129, 15 Mar.52) Comment: There has been an increasing interest in Greece recently concerning trade with the USSR. This is the first report, however, of any Greek delegate attending the conference from Greece, although the Greek guerrilla government may be expected to be represented. The Free Greek Radio has announced that a "Cypriot economist" plans to attend.. SECRET 8 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T011.46A000800290001-3 Approved For Release,0 1/04/10 : CIA-RDP79T01146A0008001001-3 SECRET WESTERN EUROPE 15. Schuman Plan may become operative in two months: Although the Sc uman an has surmounts its biggest urdle, ratifi- cation by West Germany,much remains to be done before the Plan can get under way. Only one other nation, the Netherlands, has completed ratification of the Plan thus far; the other sign- atory members have either only partly approved or not yet con- sidered it. None, however, has rejected it. In France, the Plan has already been approved by the Na- tional Assembly, which will consider it again after the Council of the Republic has acted on, it. Both the Belgian and the Italian Senates have sanctioned the Plan, but the lower houses of these countries have not deliberated on the matter. Luxem- bourg has'taken no action; it is presumably awaiting complete Belgian ratification. Mutual Security officials in Paris believe that the last member will have approved the Plan sometime in may, and the project for pooling Europe's coal and steel can then begin to function. As the various organs become operative, the Ruhr Authority will be dissolved. A British proposal that the Schuman Plan be tied to the Council of Europe by having its top policy body a subcommittee of the Council is currently receiving wide consideration in Europe. (Factual data from: S London 4124, 19 Mar 52; R Paris MSA Repto 27, 7 Mar 52) 16. Right-wing factions encourage political opportunism in Austria: Since1iis expu Sion from the sop e's Party last year, rnst von Strachwitz, leader of a once noisy party fraction, has joined the increasing number of malcontents seeking control over political dissidents of rightist in- clinations. While this is a highly competitive field, Strach- witz profits from the sympathy of some People's Party mem- bers and allegedly still considers himself close to Foreign Minister Gruber. As a co-leader of the Action for Political Renewal, he continues his efforts to raid the local organi- zation of the Union of Independents. He receives support from a number ofindustrialists in Austria and reputedly hopes for contacts with similar elements in West Germany. SECRET 9 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For Release. J201/04/1 CIA-RDP79T01146A000800001-3 SECRET 25X1A Despite the conservative and even monarchist aspects of his organization, Strachwitz himself allegedly professes great admiration for the Russians. Recent friendly over- tures from Communist spokesmen have been interpreted by him as portending an "approach" from this quarter. Strachwitz's activities suggest the ferment among Austria's political factions, their doctrinal opportunism, and the poverty of their leadership. In the absence of some unifying formula, these groups pose only a potential threat to US interests; but meanwhile they continue to pro- vide political finagling and instability on the ri ht. (Fac- C Vienna Desp. 1158, 30 Jan 52; 17. Belgium may lead opposition to European agricultural pool. T e Net er ands has formally requested Be gium's support for the European agricultural pool in the hope of at least forestalling that country from heading the opposition at the "green pool" conference which opened in Paris on 25 March. The Dutch expect France and Italy to give the plan strong support, West Germany to "straddle the fence," and Belgium to be covertly opposed at the least. The current talks are expected to clarify country positions and prepare the groundwork for a later conference to negotiate the terms of the agreement. (C The Hague 998, 24 Mar 52) 1 Comment. Both Belgium and Denmark have indicated their opposTrion to the agricultural pool, Denmark expressing fear of the Netherlands as a low-cost competitor. The pre- sent British government, contrary to the position of its predecessor, is anxious to be "closely associated" with the pool, but definitely will not join at the beginning. 18. New wave of Communist-promoted strikes damaging Italian economy.-- new wave of strikes throughout taly promoted by the Communist-dominated General Confederation of Labor is having serious economic repercussions.. American Embassy officials in Rome believe that the non-Communist labor unions are having difficulty restraining their members from supporting these work stoppages. Most of the current trouble is in the mechanical, metal- lurgical, mining, chemical, and ceramics industries. The strikes seem to be following a careful pattern, taking place in different industries on different days. (S USARMA Rome Joint Weeka 12, 21 Mar 52) Approved For Release 2001/04/10 : CIA-RDP79Tdf146A000800290001-3 26 Mar 52 Approved For Release 2 /04/10 : CIA-RDP79TO1146A0008002'01-3 Comment: Labor unrest in Italy, besides slowing down the de ease production program, is also likely to jeopardize the chances of the present government parties in the. coming spring elections in the south. The Communist-promoted "chain-reaction" pattern of strikes began over a month ago after the Fiat factory in Turin fired a number of employees for engaging a.n poli- ical activity while at work. The rising dissatisfaction among factory workers over th,:discrepancy between wages and prices has made it easy for,Communist agitators to in- duce many non-Communists to join in the strikes. 19. Italy's EPU surplus with France the result of non- trade factors: During t e past eig t months-Italy's sur p us with the French in the European Payments Union on trade account has been much less than its surplus on payments account. This latter includes such non-trade items as payments for "invisible transaction." On 1 January, after the first eighteen months of EPU's operations, Italy's trade surplus with the French area was 34 million dollars whereas its payments surplus was 113 million dollars. The greater proportion of this payments surplus was accumulated in the second half of 1951. (S Paris MSA 1340, 21.Mar 52) Comment: This information tends to confirm other re- ports t at t ere has been a substantial flight of French and British capital to Italy via the European Payments Union. Italy defends its requests for more American econ- omic aid on the grounds that much of its current EPU sur- plus is of little practical benefit to its economy. 20, Italian Christian Democratic labor organization hostile to Socxa s a or group: orts o talian meta workers affiliated wi t e Ito ian Union of Labor (UIL) to join the International Metal Workers Federation have been blocked by the rival non-Communist Italian Confederation of Labor (CISL), which bases its action on allegations that UIL is extremely small and has left-wing connections "which are not clear." The American Embassy in Rome comments that Konrad Ilg, President of the. International Secretariat, and Victor Reuther, CIO European representative, went to Turin to try to establish a working agreement between UIL and CISL, but were unable to do so, (S USARMA Rome Joint Weeka 12, 21 Mar 52) SECRET 11 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 26 Mar 52 Approved For Relea001/04/10 : CIA-RDP79T01146A0008Q190001-3 SECRET Comment: Many American officials and labor represent- atives have---hoped that in the interests of anti-Communist solidarity, the CISL and UIL might work out a program of friendly collaboration. Such an understanding appears dis- tant; despite the fact that both CISL and UIL are members of the International Confederation of Free Trade Unions. CISL, which has been aided by many American labor groups, is largely dominated by the Christian Democrats and conse- quently has been accused of being too close to the Italian Government and to the Vatican. During the past year CISL's membership has remained stationary, whereas that of the anti- clerical and socialist-oriented UIL has increased. consider- ably, largely at the expense of the Communist General Con- federation of Labor (CGIL). 22. British Army increase in prospect for October: Three new infantry br ga a headquarters are to be orme in mid- July to command the seven new infantry battalions ordered by Churchill last January (see OCI Daily Digest, 9 Jan 52) plus two older infantry battalions. The brigades are to be in operational status by October, but further build-up to divisional strength is not contemplated this year. (S London Joint Weeka 12, 21 Mar 52) Comment: These brigades will form the basis for a strategic reserve and will permit rotation of infantry units 12 Approved For Release 2001/04/10: CIA-RDP79T01146A000800290001-%6 Mar 52 Approved For Releas001/04/10: CIA-RDP79T01146A000890001-3 SECRET between home and overseas stations. Although increasing the strength, the strai tactical strain n LATIN AMERICA 23. Secretary-general of Inter-American Organization of Labor ti, en ers resignation. rant sco gu rte, secretary- genera o t e nter- met can Organization of Labor (ORIT), has offered his resignation to the executive board in a letter whose contents reflect the dissatisfaction.of Latin American affiliates with the financial support they are re- ceiving from unions in the United States. Angel Bravo, ORIT the office mandgCIO toldonatetfundshisraalackf of confidenceeinf the AFL and C Aguirre. The American Embassy in Havana believes that Aguirre is sincere and considers that unless care is observedy -the US unions in handling the matter, ORIT may break up, ful- filling the fondest wishes of both the Peronistas and Com- munists. It also feels that if his resignation is accepted, it should be done in such a way as to hold his friendship. The Embassy observes that finding a successor on whom AFL and CIO leaders can. depend and.who will be acceptable to Latin American labor leaders will be a "thorny problem." (C Havana Desp> 1384 and 1409, 21 and 29 Feb 52) 24. Argentine Government attempts to conceal arrests of plotters: The Argentine Government is trying to conceal t He details of recent arrests for plotting, because of the involvement of military personnel. A delicate situation has been created for Peron in view of the new law which de- mands the death penalty for all military personnel arrested for anti-government plotting. Many of the arrests have re- sulted from routine precautions and from the recommendations of a security 'committee composed of two federal police of- 25X1C ficers and three army. officers. 25X1 C apparently there is no well-organ ze m t to oust Peron, but there are several small groups which are independently plotting to assassinate him and his wife (see OCI Daily Digest, 5 and25X1A 8 Feb 52). SECRET 13 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 26 Mar 52 Approved For Releas001/04/10 : CIA-RDP79T01146A000800001-3 TOP SECRET SECURITY INFORMATION 26 March 1952 US OFFICIALS ONLY CIA Noe 49593 Copy No. 46 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 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. TOP SECRET SECURITY INFORMATION Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For Rel 2001/04/10: CIA-RDP79T01146A0G 60290001-3 TOP SECRET THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECSO 793 AND 794, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. WESTERN EUROPE 1. Russians protest Western evasion of Allied travel controls in sienna: .lit a recent meeting o"'F`"iEe Qua ripart e-'crvntier on- roTr'orking Party, the Soviet delegate strongly protested the travel from American- and British-controlled Viennese airports of West Germans without quadripartite documentation. The Soviet warning that "necessary control measures" might be in- stituted remains unclarified, but could involve Soviet check- points on roads leading from these airports to Vienna. (TS CG USFA Salzburg P 0560, 20 Mar 52; C to Vienna 2396, 24 Mar 52) Comment: To avoid long delays and whimsical Soviet re- jection individual entry applications, Western-controlled airports have been used in special cases to admit German nationals to the Austrian capital. American officials fear out safety that Soviet ewrefugee threaten flights the of t Vienna. Germans as well as jeopardize Since neither the Western powers nor the Austrian Govern- ment can control the entry into the Soviet Zone of foreign nationals favored by the Soviet Headquarters, the inequity of this latest protest is obvious. It is, however, a further indication of Russian sensitiveness on such matters, and a warning that the prospective establishment of West German representation in Vienna is likely to encounter Soviet ob- struction. 2. British seen opposed to reducing rubber exports to Soviet rbi :"~i~nxted`States mTassy o icia~s in Londoixie ieve that in present circumstances any American proposals for re- duction of natural rubber exports to the Soviet bloc would elicit a "negative and hostile" British reaction. The British officials concerned are convinced that recent US rubber policy decisions will increase the already serious difficulties they believe face the "producing areas" this year. TOP SECRET 1 26 Mar 52 Approved For Release 2001/04/10 : CIA-RDP79T01146A000800290001-3 Approved For Releq&o 2001/04/10 : CIA-RDP79T01146A000a00290001-3 TOP SECRET ,The Embassy suggests that the United States take haction to help the natural rubber producers, preferably by moval of restrictions on the domestic use of natural rubber, and thus, incidentally foster a more favorable atmosphere for the discussion of the Soviet quota problem. (S, S/S London 4205, 24 Mar 52) Comment: Rubber traders in London and Malaya reportedly anticipaTEe a large unabsorbed natural rubber surplus this es- year. the tritish Government has recently s?oanlitself es pecially sensitive to pressure from them, probably b of the crippling effects a recession in the rubber trade would have upon Commonwealth efforts to improve the sterling area's payment position. TOP SECRET 2 Approved For Release 2001/04/10': CIA-RDP79TO1146A000800290001-3 26 Mar 52 TOP SECRET FIED IIOT ~ pt yl d QT ~t l~ r ~ i 6%go'ngraded or declassi- UNCLASSI ~ #ied when fille I orm is detache rom con roq,e ocumen CONTROL AND COVER SHEET FOR TOP SECRET DOCUMENT DOCUMENT DESCRIPTION REGISTRY SOURCE C r CIA CONTROL NO. 9..5 9 DOC. NO. DATE DOCUMENT RECEIVED DOC. DATE COPY NO. e r-f~ LOGGED BY NUMBER OF PAGES NUMBER 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. REFERRED TO RECEIVED RELEASED SEEN BY OFFICE SIGNATURE DATE TIME DATE TIME 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. DOWNGRADED DESTROYED DISPATCHED (OUTSIDE CIA) TO BY (Signature) TO BY (Signature) WITNESSED BY (Signature) BY (Signature) OFFICE Approv DATE d For Relea OFFICE DATE a 2001/04/10 : CIA-RD 79T01146A0 OFFICE 0800290001-3 DATE F807`4 26 -st PREVIOUS EDIT10NR. 873 TOP SECRET cool

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