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CURRENT INTELLIGENCE DIGEST

Document Type: 
CREST [1]
Collection: 
General CIA Records [2]
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T01146A001000280001-1
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
16
Document Creation Date: 
December 12, 2016
Document Release Date: 
June 10, 2002
Sequence Number: 
1
Case Number: 
Publication Date: 
June 20, 1952
Content Type: 
REPORT
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25X1 25X1 c3/~. Approved Farr,Release 2002/08/21 :CIA-RDP79T011>~001000280001-1 SECRET 20 June 1952 OCI No.. 6424 Copy N`o. `~ r 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. DIA AND DOS RELEASE INSTRUCTIONS APPLY ~, 25X1 Approved For Re ease - 9T01146A001000280001-1 Approved Fo,~telease 2002/08/21 :CIA-RDP79T011~GrR001000280001-1 SECRET THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWSa TITLE 18, USC, SECSo 793 AND 794, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAWo le Australia rejects British request to ease import re- strie aria e r rag.. s recen a s w r me n s er ~iurin LondonD Australian Prime Minister Menzies was sympathetic but re3ected'British ree~uests for ,.substantial rela~cation of Australia?a severe restrictions an imports fram the United Kingdamo 25X1X ~ Menzies is "reasonably hapeful" of an early mprovement in Australia's balance of payments p?sitiano but they also admit that that cauratry?s drain oaa t$~e sterling area dollar: pool is can- tinuia~g, despite its restric$ioaas a~n hard currency .imports v Menzies is caunting on International Bank assistance irg long?tex?m financing of Australia,?s capital development plans, but fears it may only be obtairacd~ in the forte of loans for specifically approved pro,~ects e EASTERN EUROPE '2e Reisnstatement of politically doubtful Bulgarian military 25X1 procedure rm~rks ~, ma.~or reversal. of the former Comm~aaist policy of emphasizing p?litical paarity in the a.etive a.nd reserve components ~f the officer corps a brad is ixa keepi~ag with a. trend $o~v~rd placing greater emphasis ore professi?nal military eapa- billties than upon political ideal~- ies within the Bulgarian has~beera accompanied by -the recall to active cfiuty of many c-f - ficers of the Royalist Army and by the reinstatement of some Comitsunists w~o~were purged during the postwar pearso- This militar~r establishment, SECRET 1 25X1 25X1 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 Approved Fq~,Release 2002/08/21 :CIA-RDP79T01'IM~A001000280001-1 SECRET- Comments .Although the reinstatement of military of - ficersubtful political reliability indicates an in- creased e~-phasis upon the military as opposed to the political merits of Bulgarian officersy political purity continues to be a primary q,ualificatiora for advancement o It is possible that the recall of politically ~guestionable military pro- fession~ls represents only a temporary expedient necessitated by increased demands on the part of the expanding Bulgarian. military fer competent and experienced leaderso 3o Merger of all Czech student organizations-into single trade un on ncreases can ro over manpowero A ex s ng s u en organ za ons ~ n zec os ova a are to be merged into a single t-reds uxaion within the framework of the Revo- lutionary Trade Union Movemento It will be called the Union of Employees and Students of i7xxiversities and Scientific In- 25X1 stituteso Comment; The unionizing of all students in higher educe one institutes is the latest step in the government's attempt to gain more complete control over all sources of mahpower 4 This move is the logical cosrsequence of a recent government decree allocating graduates of universities and special scflools to specific eanterprises for thxee years> Qther recent measures attempting to force school children into the labor market include the organization of labor brig- ade~ ire which school children and university students are compelled t~- work for four weeks during summer vacation9 and the eaea,~irnatioaa of 1~-year olds to determi~ae which on?s will be permitted to continue their schooling and which-ones will be assigned to work in mimes 9- f~.ctories and foundries o 25X1 4e USSR reportedl takes over full control of Hungarian aluminurs n us rye e s repor e o eve a en over full control- of the.hither.to ~ointly- admix~is$ered ~[agya,r-Soviet Bauxite Aluminum Comp~.n~a Simul- taneously the chief ?f' the nonferrous metals department of the Mina.str of Minin and his deputy were removeda Comaraeant a The USSR has gradually been tightening its contro over this key Hungarian industryo Assumption of compl?te contr?~1 by the Soviet Union is logical in view of the recent severe criticism levelled at the bauxite industry and the critical need of the Soviet Orbit for alumixzuma SECRET ;~ 2? June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 25X1X Approved For lease 2002/08/21 :CIA-RDP79T01148~'01000280001-1 SECRET During 1951, Hungary accounted for more than one third of the total Soviet Orbit bauxite productions and augmented the USSRPs production of aluminum by 15 percento The Hungarian bauxite industr~- in 1952 is scheduled to increase its 1951 output by f ifty-three percent o 25X1X 5, Substitution of ruble for leu rumored in Rumanian There are rumors n e uc arks area a e uman an vern- meat is plane n to subs itute the Soviet ruble for the Rumanian leu, 25X1 25X1 The frightens Bucharest populace is sa ? e uy n~z a erc andise available on the marketo Comments T,~ere has been no other confirmation of thin repore revaluation of tlxe Rumanian currency in January plus constant rumors of integration inter the USSR, the recent ,judicial reform,. the current drafting of a new Rumanian con- stitutivn which is expected to fvllaw the Soviet model, and the purge of several top Rumanian leaders all may have con- tributed to the strength of this rumor-that the ruble would be substituted for the lean 25x1x 60 25X1X Yugoslav forces impress 25X1X visited Yu oslavia for a week this month 25X1 He considered that-the military schv~-ls an emoras ra son maneuvers which he saw were better than expected, cession was-that the Yugoslav forces, 9 25X1 25X1 are competent and could give a good account of themselves i st ~.n attack from the east, 7e Yugoslavia cuts staff in Sofia to minimums 'The Yugoslav . Governmea~t ~.s recall ng a u one o c a of its embassy staff in Bulgaria accordin tv an official Belgrade radio annvutacemei~t o Comments Yugoslavia and Bulgaria. have, since April, exehangea ~erie~ of bitter complaints concerning mistreat- ment of diplomatic missions4 The latest Yugoslav note charged that Bulgarian secret police kidxaapped a Yugoslav employe from the embassy grounds in Sofia, violating extraterritorial. rightso 3 20 June 5~ Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 Approved F~elease 2002/08/21 :CIA-RDP79T01'I"*A'A001000280001-1 SEC~tET It iz~ probable that the Bulgarian staff of fQUr diplo- matic officials in Belgrade will now be reduced, While re- lations between the twa countries have been moving is the direct-ion of a ccamplete breakfl it would appear to be advan- tageous for both countries ts~ cs~ntinue maintaining diplomatic missions fir propaganda, ixatelliger~ce at~d subversive work. R_ Yugoslavia employs threat elf Italian imperialism as ~,~~.~ o sca ere do avora a ee press comments regarding im- ., proved Creek?Yugoslav rela,tionsg the i~:portant Belgrade daily Politika emphasized the need f?r a cam~on struggle against a rev~v~,l a~f Italian imperialis~a. "Today9" comments Politika9 "Greece and Yugoslavia are united by the point in- eres s of protecting their nat ona,l i de ndence and peace in this part of the world." Commenta It has been assumed by ~a~erican officials in Belgra a ~,t 'the developm?nt of friendlier Greek?Yugoslav relations has been accelerated by worsening Italo-Yugoslav relations . This attempt by Pcolitika to ,justify closer rel~.tions with Athens on the bas s o realistic pelf-interest reveals the Tito regimeo~ sexasitivity to Camixaform alleg~,tion~ of, the creation of axn "aggressive fascist Belgrade-Aa~kara-Athens Balkan .Alliance." It also is possible .that Titer is~ attempt- ing to prepare the Yugoslav Communist Pare' for even closer relations with Athenns and Ankara. 4 ~PJ June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 25X1 ? Approved Foy~elease 2002/08/21 :CIA-RDP79T011~G4001000280001-1 SECRET . FAR EAST 9o Japan urges early participation in COCOM: The Japanese. Foreign ce es res ear y par c pat an n COCDM in order. to counter the increasing Diet and public demands for relaxes- tion of export controls, according to the American Embassy in Tokyoo .The Japanese believe that CCC4M membership is essential. to avoid speculation that a new organization is being planned ,. to retain the present inequality between Japanese and European security controlso The Embassy points out that Japan?s export control policiea~ axe becoming an increasingly important political. issue in the Dieto It suggests that some arrangement be made, such as sitting with a COCDM sub-committee- groin to ive the Ja anese a feeling of participation in COCOMo 25X1 ~ommento The Japanese Government is finding it increas- ingly~ult to defend its strict expart control policies, particularly on items of little strategic value which are not on the Battle Act lists, The United States has informed Japan that it will retain its present controls pending multilateral talkso 10< South Korea political compromise may be introduced i 25X1X men ave now s gne a reso u on suppor ng a Compromise" amendment to the constitutiono The will probably be introduced on 20 June? the amendment would pass but warned-that a 112 Assem y our-Point le islation ssem y,re- fused, a hunger strike would be staged before Rhee?s residence a.nd he would be forced to dissolve the Assemblyo The Ambassador `comments that Rh~e supporters and opposi- ton ax?e both avoiding commitment on the conduct of the next presidential electiono Commenta While the compromise amendment calls for popular e-1[~ection of the president, there is some question as to whether the immediate election should be by popular election or by the Assembly as the constitution now retluireso The Four- Foi,nt Compromiseq in addition to calling for direct presidential election and a bicameral legislature, would include measures making the cabinet responsible to the Assemblyo 25X1 25X1X 25X1 Approved For Release 2002/08/1 : CIA-RDP79T01146A0010~$8~~1 ~ Approved FarRelease 2002/08/21 :CIA-RDP79T011~#9'A001000280001-1 SECRET 11. Chinese Communists add engineer regiment to army: The Chinese ommura sts ave a e an eng veer reg men as an in- 25X1X te ral part c1f each army organization, 25X1X pf the 42 regiments w c w ultimately be subord na e o Chinese armies, 2$ will b e trained in Chia and a nipped by the end of 1952. .25X1A 25X1 .Commenta C1ne of the significant achievements of the Chinese.. ommunists in Korea has been their ability to add supporting organizations in arms and services to each of their ground armies, This progress has been shown by the addition of artillery units. While there is some evidenge of similar engineer support in Korea, there. has been no report of an en- ? gineer regiment subordinated to an army. 25X1 I2, Chinese Nationalists to ratify Sino-Japanese. Treaty by small. ma or yo a Hess a ona ~ nom n sag en ral e arm omm ee ordered the Legislative Yuan to ratify the Sino-Japanese Peace Treaty by a very small majority to empha- size the overnment"s eneral dissatisfaction with the treaty. Commenta The Nationalist Government`s main criticism of the tree. y s its failure to recognize their. claim to the Chinese mainland. The scope of the treaty is limited to territory actually under Nationalist control now or in the future. heavy ac v y y e M n orces s e y un a end of 13. Viet Minh general offensive unlikely until Septembers. No 25X1X Se tember,I , Some reorganization is being carried out for the purpose of harassing French forces with regional units led by a few regular troops, 25X1X 25X1 a variety of diseases are prevalent in V1et Minh territory.. In the frontier area of Tonkin there is an epidemic of chglera, the extent of which is unknown, while other diseases-are reducing the efficiency of two enem divisions northwest of the French perimeter. Commenta Although stated. that the two divas qn~s 'mentioned are prepar ng o a ac , most information supports the canlikelihood of a general Viet Minh offensive before the end of the rainy season in, September. Approved For Release 2002/08/2: CIA-RDP79T01146A00100~80Q~~ 52 25X1 25X1 25X1 Approved F~Release 2002/08/21 :CIA-RDP79T01~iA001000280001-1 SECRET Diseases o~ zany sorts are endemic to this area and heretofore have not decisively reduced Viet ~dinh capabilities. 14. Indonesian war at prospect of inspecting Ka3e POW camps: n ones an press reae on as een genera y receptive ~o Tie Americas State Department's suggestion that Indonesia.. loin other neutral nations in an inspection of conditions on Kale Island. Editorial comment cautions, however, that the invitation should come from the United Nations and of from the United States alone. Comment: The Chairman of the Parliamentary Foreign Affairs ~e~ian commented that he had na objection to sending Indonesian observers to Kobe, but would prefer waiting until. approval had been obtained from North Korea. The cabinet, .characteristically, has made no comment. The present government,which is even more indecisive than its predecessors, cannot be expected to give an answer unless pressed. SECRET ? 24 June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 25X1 Approved F~rRelease 2002/08/21 :CIA-RDP79T01'~'6A001000280001-1 SECRET WESTERN EUROPE 15. Shift in tactics of French Communist Party may reflect Sovie po cy owar ermany: e m asst' n ar s e eves- a e enc ommun~.st Party's shift from agitation and propaganda to direct action against the Western defense build-up, to the detriment of its popular support, ~~~ may be an indication of a new Soviet device of appealing to German nationalism on a scale involving some sacrifice to Communist strength in France. If this is the case, the Embassy warns against possible surprise action on the part of the Soviet Union which may r al ~. s i i ess to ay a higher price for Germany, Comment: The action of the French Communist Party was proba'6ry a part of the intensified Soviet-directed" scare campaign designed to prevent a Western defense build-up, but the party is~now retreating to less violent action as a result of government repression. There have been no other indications that the USSR is willing to pay a higher price for Germany. 25X1 16. Response to French loan disappointing: The French Gove.rnmen ~.s sappoin a ecause a rst three weeks of +. i:ts new loan drive: have res'hl'te'd i.aa thet~sale~,~,af.~,b,arelY half of-the first bond issue. While 50 percent of the 457 m~.llion dollars received so far represents a return of hidden capital to circulation, less than 10 percent is in gold. 25X1 Subscriptions are lagging, particularly in rural districts, partly because of pre-harvest-cash shortages, but also because Of dissatisfactian with the government's current firm stand a ricultural price increases. 25X1 Comment: The fate of the Pinay government will be determine argely by the success of this drive, the money from which is urgently needed to provide a minimum investment program and meet the administrative and military eleficits. It is primarily-important to the government for its psychological effect, however, because it tests popular confidence in the anti-inflation program. 8 20 June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 ,Approved F~elease 2002/08/21 :CIA-RDP79T011~4001000280001-1 17d Influential Belgians favor four-power negotiations with USSR:. any n uen a e g ans a eve a imme is e ra~ficatian of the European Defense Community treaty and the Allied-West German contractual agreement without any. attempt to negotiate with the Soviet Union would-seriously reduce the chances for an East-West reconciliation later. Furthermore, some have stated that early discussions of the treaty are useless, since a four-power conference on the German question would alter the situation. In a recent issue of the Socialist Le Peuple, the political editor, a prominent Socialist, expressed strong opposition to ratification of the Bonn-Paris treaties until after there had been negotiations with Russia. He criticized the rearmament of West Germany prior to German reunification talks, and added that if the agreements were ratified "tomorrow," negotiations with Russia would be useless and "peace would only be a matter of force." At the recent meeting of the General Council of the Social Christian Party, the Foreign Minister stated that a four-power conference on Germany is advisable, since "peace on the basis of a cum rornise" he rbit is '" referable 25X1 o war . " 25X1 25X1 lgo Dutch Prime Minister believes third world war probably can be avoi e : n an o - e-recur speec a e e er ands- Amer~can ns tuts, the Netherlands Prime Minister stated that only through NATO could a third world war be avoided and that success here was "probable." He also said that the Netherlands, because it like other smaller European countries is concerned with the maintenance of a satisfactory standard of lav~.ng, cannot make any further financial contx?ibutian to rearmament. In the same speech, he expressed doubt concerning the effectiveness of the European Defense Community. He regarded as "illogical and inconsistent" the French position opposing direct membership for West Germany in NATO and favoring only an indirect membership for that country through the EDC. Commenting on the speech, American officials in The Hague state that this was the first time they had heard the Prime Minister ex ress his views so o enly and firmly before a group. SECRET 9 25X1 2U June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 Approved F~Release 2002/08/21 :CIA-RDP79T01'I?iGA001000280001-1 25X1 19. Swiss firms press for trade quotas with. Czechoslovakia: Because o pressure rom aznes c rms, a wiss avernment's Economic Department during the early part of 1952 granted large eXpart quotas for Czechoslovakia. The Georg Fischer and Scintilla,fixms were granted quota~~ totaling 1,350,000 wins francs with the latter firm ramised a further quota, Comment: The quotas mentioned in this report-are but a fract~.an o those granted in previous yearso This report, then, tends to confirm others that the Swiss are limiting their legal trade with prbit countries in conformity. with Switzerland?s commitments to the United States. 20. Franco .re ortedl plans to assume position of regent: 25X1X enera ranco p ans to name the minor son of Don Juan as eir-apparent to the Spanish throne and to assume the position of regent himself. 25X1 This action wily allegedly be taken before 18 July, the anniver ar of the outbreak of the Civil War. Comment: Such a step would permit Franco to remain in power an,o zer I6 years . The Pretender, Don Juan, has consistently refused to relinquish his rights to the throne in favor of his son or to recognize the validity of the 1947 'Law of Succession. If Franco carries out this plan, he will risk creating an incident serious enough to threaten the security of the regime. Such action would therefore indicate his confidence. in-the security of his position. LATIN AMERICA bars broadcast of US denial of press censorshi 21< Argentina The d rec or o e rgen ne governmen -contro a ra io an 18 June refuse d, to allow the US Embassy in Buenos Ares to broadcast the State Department?s official denial that Senora de'Peron?s ''The Reason for my Life" has been banned in the p: 25X1A 20 June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 Approved Far~telease 2002/08/21 :CIA-RDP79T011$G~(001000280001-1 SECRET United Stateso The previous day the director had cut the statement from the script of the Embassy's radio program on the grounds that permission for its use had to came from higher authoritieso The Embassy comments that it is now evident that Argentine officials will not allow the denial to be broadcast 25X1 ublished in the Spanish-language presso ' Comment: Charges that the United States has banned Senora~e^geron?s book currently highlight Argentina's anti-US campaigno Only two small English-language newspapers in Buenos Aires have published a denial of the chargeso 25X1 on 19 June that she has only a few days to lives T e Curren propaganda may be related to this circumstanced 25X1X 22< Surinam delegates to Dutch Round Table Conference repor e y p ann ng revo n urxnam as o e merxean Consul there that four of the seven delegates to the recent Round Table Conference in The Hague held a secret meeting late last week to plan a revolt, and later distributed "crude pamphlets" urging the people to resist the Dutch Government< 25X1 The Commander of the Dutch Forces in Surinam, who haS doubts concerning the reliability of 60 percent of the native police in the capital city of Paramaribo, states that he has reinforced the-Dutch garrison there and sent troops to guard Zandery airporto He has also ordered his farces to conduct maneuvers, including street-fighting exercises, in the capital; he believes this show of siren h 'll deter disturbanceso Comment: The Surinam delegation to the Round Table Conferences which was to revise the relationship of Surinam and the Netherlands West Indies to the Dutch Government, was thought to be relatively satisfied with the Dutch proposals when it left for The Hagueo During the negotiations, however, the group became divided and the dissenting faction raised a number of objections which led to "interruption" of the Conferences SE~RE?T 20 June 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 25X1 Approved Ft~.ftelease 2002/08/21 :CIA-RDP79T011~#8'A001000280001-1 Although a Communist-dominated group of Surinamers in The Hague, calling itself the National Surinam Commission, apparently tried to exploit the dissenting position, the Dutch Foreign Office said it felt that the Surinam delegation considered the Commission merely a nuisance4 Renewal of student strikes feared in Panama: The Normal Schoo o an ago, eraguas rov race, a oca point of Communist-inspired agitation, has been closed by'the Minister of Education after, a week of student disarderse Eight student leaders recently expelled for their part in the disorders are on a hunger strikeo Ruben Dario Souza, leader ' of the Communist People?s Party is in Santiago, presumably trying to foment troubles The govern~aent is concerned over possible repercussions in the Universit and other schacils of Panama Cityo Comment: The agitation in Santiago appears to be instiga e n large part by the youth section of the People's Party, which has recently been active among the students there. Another student group,. the Students9 Federation of Panama,' has reportedly been considering a general students? strike as a protest against Remora?s vietary in last month?s presidential. electiono However, now that the elections are over, the government is expected to take strong measures to prevent widespread student disarderse President-elect Reman has declared his .intention. of clearing out Communist influence in the University even if it becomes necessary to close it "far about a year o" 25X1 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 ~ ~.,~.~ Approved ~-' Release 2002/08/21 :CIA-RDP79T0''~A001000280001-1 TOP SECRET 24 June 1852 CIA Neo 4970 Copy X04 4 ~ TOF 5ECRET SUPPLEMENT TO THE 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 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 SE CR E T Approved For Re ease - 01146A001000280001-1 Approved F~?Release 2002/08/21 :CIA-RDP79T01?~4G14001000280001-1 TOP SECRET THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECSa ?83 AND ?94, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON TS PROHIBITED BY LAW. WESTERN EUROPE to New Italian. demonstrations against Allied government in Tries a oreseen.o a mer can o a. ica v ser in rtes e warns at a oval Italians may resort to new demonstra- tions against the Allied Military Government as a means of ending the widespread dissension among themselves over who is to be appointed to the posts opened to-them by the recent London agreementso He notes numerous rumors and several recent developments, reflecting a serious increase in irredentism, to Support his warning, Although Premier de Gasperi will personally nominate Italian officials in Trieste, he will be advised by Silvio Innocenti, a neo-Fascist who heads the Office of Border Zones in Romeo The expected appointment of men of markedly Irre- dentist outlook will lead to increased friction between. Allied Militar Government authorities and local Italian officialso Commente Because of his weakened political position since e'recent elections, De Gasperi willprabably be less able than ever to withstand pressure from Irredentist and ultranationalist elements in nominating officials far the new posts, Approved For Release 2002/08/21 :CIA-RDP79T01146A00100~09b~~ 52 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1 Approved For Release 2002/08/21 :CIA-RDP79T01146A001000280001-1

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