OFFICE OF CURRENT INTELLIGENCE DAILY DIGEST OF SIGNIFICANT TRAFFIC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000100090001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 27, 2016
• Document Release Date: March 27, 2014
• Sequence Number: 1
• Publication Date: March 10, 1951
• Content Type: SUMMARY

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OFFICE OF CURRENT INTELLIGENCE
DAILY DIGEST OF SIGNIFICANT TRAFFIC
Date:
MAR 1 0 1951
NOTE: 1. This summary of significant reports has been
prepared for the internal use of the Office
of Current Intelligence. It does net
necessarily represent a complete coverage of
all current traffic in CIA or in the Office
of Current Intelligence.
2. Comment represents the preliminary views of
the responsible analysts and. not necessarily
the final view of the Office of Current
Intelligence.
3. Marginal letter indications are define as
fellows:
"A" - items inticating Soviet-Communist
intentions or capabilities
important regional developments
not necessarily related to Soviet/
Communist intentions or capabilities
"0" - other information indicating trends
ant potential developments
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"ON EgThILRApPE. HUNGARY. Jewish Repatriates Believed to be Communist
Agents,_ As of 6 February 1951 a total of 81 Jewish repatriates had re-
turned to Hungary through Rumania, from Israel. Rumanian press accounts
emphasited that the Jews were returning full of disillusionment and
bitterness over the "tragic" situation of the Israeli l'paradies". An
Israeli Legation spokesman in Bucharest stated that in his opinion many
of the returned individuals are agents of the Communist Party who were
sent out to Israel to agitate and are returning for propaganda purposes.
"OS YUGOSLAVIA. Mftlgyade Radio Criticises Stalinss Russian. Belgrade radio,
in a broadcast in Czech, notes that Cominform speakers claim that Russian
is the "language of the future?, that karx learned Russian and that
Russian was the language of Lenin as well as that of the "great wiseo
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and so on" Stalin. Belgrade radio points out that it was also the
language of Czar 1'Iichol7 II who spoke it without a Georgian accent.
Imailaye Attempt to Buy_Tractors. The Yugoslays are attempting
to purchase through SCE 5-7,000 tractors and a number of agricultural
machines, spare parts and tools on credit terms extending over 7-9
years. The Yugoslays propose to make repayment inthe export of grain
and estimate that the equipment purchased will enable them to expand
Yugoslav grain production by 15%, the greater part of which would be
available for export to Western Europe. The Secretariat of BCE esti-
mates that, if this additional equipment is obtained by Yugoslavia,
the country could increase its tractive power from 5-8%, which would
contribute to a substantially increased grain output. The Yugoslav
delegate wishes US assistance in expediting early action on its pro-
posal, stressing that even if half the theoretical increase in Yugoslav
export capabilities is reached within the next two years, Western
European countries would effect considerable dollar savings The US
delegation to ECE in Geneva is unable to judge the specific merits of
the Yugoslav proposal, but suggests that, if analysis of the Yugoslav
claims are substantiated, US assistance in concluding agreements of
this type would "pay big dividends."
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SECTION 2 (EASTERN)
SYRIA. Cabinet Resigna. According to the Iraqi radio, the Syrian Cabinet
of Prime Minister Nazim al-Qudsi tendered its resianetion to President
Hashim al-Atassi on the night of 9 March.
COMMENT: Opposition to Qudsits one-party Populist Government has steadily
increased in the last few weeks, spurred by the apparent political colla-
boration of Deputy Chief of Staff, Adib Shishakli9 and Akram Hawrani,
leader of the Arab Socialist Party.
Though no explanation of the cabinet crisis has yet been received, it is
quite possible that Hawrani is behind it.
IRAN. Disorder Continues, Press and Embassy reports from Tehran suite
that the extremist religious sect Fedayan-i-Islam ("Crusaders for Islam"),
to which the assassin of Premier Razmara belonged, has openly acclaimed
the murder and threatened a further purge of those who betray the country
to foreigners. Leaflets of the organization, distributed Thursday during
a demonstration in favour of the nationalization of the British-owned
Anglo-Iranian Oil Company, demanded the release of the assassin and threat-
ened to kill anyone who harmed him. Meanwhile, obviously Communist-inspired
crowds of leftist "peace partisans" demonstrated outside the US Embassy,
shouting "death to MacArthur" and other anti-US slogans. US Embassy Tehran
reports that Parliament has refused to accept a government headed by Fahimi
and declined to pass urgently-needed legislation
on the aroun ere is now no legal government.
COMMENT: Both of the cited demonstrations
appear to have been orderly and not sufficiently alarming to persuade the
government to declare martial law. The threats uttered by the Fedayln are
similar to those made by the same organization a year and a half ago when
Hajir, then Minister of Court, was murdered by an assassin of the same
group. Nevertheless, the exploitation of the occasion by the Communists,
as well as the irresponsible action of Parliament, illustreles the need
for a firm hand to prevent the situation from deteriorating further. Al-
though the Shah might provide this firm direction, there is as yet no sign
that he will do so.
"A" PAKISTAN. Military Plot to Seize Control of Government Foiled. On 9 March,
Prime Minister Liaquat Ali Khan announced to the people of Pakistan that a
plot to unsettle the Government by violent means and to subvert the nation's
military forces had been foiled by the arrest of (1) Major General Akbar
Khan, Pakistani Chief of Staff, (2) his wife, (3) Brigadier M.A. Latif, a
brigade commander at Quetta, and (4) Faiz Ahmed Faiz, editor of the (pro-
Communist) newspaper PAKISTAN TIMES. The Prime Minister stated that he
had been deeply shocked by the disclosure of the plot. He then continued at
some length to commend the vigilance, discipline, and loyalty of the Pakistani
armed forces. According to press reports, it is alleged that the plot was
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aimed at seizure of the Governor General and. Cabinet members of Pakistan
and establishment of a military dictatorship. COMMENTg
Political opposition to the present Pakistani Government has been evident
for some time, but consistently emphasized the abso-
lute loyalty? of the armed forces. Discovery of this plotetherefore comes
as something of a surprise, and the pains taken by the Prime Minister to
praise the Army's loyalty indicates that the people of Pakistan may also -
be unnerved by the news. On the basis of scanty information and assuming
the plot to be genuine, it appears that the plotters could heve been adti-
vated by two motives. The firsL of these motives is both political and
personal. Both Major General Akixr Khan and Brigadier Latif have seemingly
been engaged in political intrigue. The General is thought to owe his
present position to political favor and is disliked by his fellow officers.
Furthermore, political activity in Pakistan has recently been intense,
since elections in the critical province of the Punjab are scheduled to
take place on 10 March. It is therefore poseible that certain of Prime
Minister Liaquat's political opponents have taken advantage of General
Akbar's position and threatened to unseat him if he did not cooperate with
them in unseating the present Government. The second possible motive is
more alarming. The Communists in Pakistan, though still fairlyweak, have
been steeddly gaining in strength. There has been little to indicate that
they have successfully penetrated the Army. Nevertheless, the implication
in the plot of Faiz Ahmed. Faiz, generally believed to be Pakistan's leading
Communist, suggests that the Communists have been able to exploit Akbar
Khan?s emotions and personal ambitions to en extend not previously believed
possible. An alternate, if improbable explanation for the reported arrests,
would be that Pakistan's Prime Minister, himself, is attempting both to
strengthen his regime and discredit his opposition by announcing_a plot,
arresting a voluble Communist mouthpiece and simultaneously supplying
himself with an excuse for stringent security measures.
INDOCHINA.
93"
De Lattre Suarlcious of US Aims. De Lattre took the occasion of a
conference with STEM-Chief Blum to assert that it was only out of a "spirit
of liberation" and because Governer Tri in Tonkin had done a good job that
he (De Lattre) continued to allow the Vietnamese to run their min civil
affairs in Tonkin. The General pointed out that he had the right to revoke
this "freedom" at any time. De Lattre further observed, in a "friendly
but apparently sincere tone" that he considered the STEMoperation most
dangerous from a French point of view, and that as a Frenchman he must
resist growing American influence in Indochina at the expense of France.
COMMENT Although De Lattre is on sound
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"B"
legal ground regarding his authority in
sharp tone of his observations goes far
contention that French acceptance of US
purpose of maintaining French influence
of an independent Vietnam0
the military zone of Tonkin, the
towards confirming the Vietnamese
aid in Indochina is more for the
than permitting the development
BURMA. Ba Maw's Espousal of Communism. At a mass meeting on 3 March,
Dr. Ba Maw, the wartime Japanese puppet and leader of the Mahabama Party,
called upon Burma either to complete its revolution or stagnate. He
advance a program of "revolutionary nationalism" calling for radical land
reform, industrial revolution and nationalization. 1st the course of his
speech, Be Maw made numerca's references to Ho Chi Minh, Mao, and Marx and
modestly claimed credit for fathering Marxism n Burma. The meeting was
remarkable for the absence of Ba Maw's old conscrvative cronies and the
presence of the youthful leaders of the pro-Commoniat Workers and Peasants
Party (BWPP). US Embassy Rangoon comments that while Ba Maw could probably
win a seat in Parliament, his party is not believed to constitute even a
potential threat to the Government. COMMENT:
This report confirms that the opportunistic Ba Mar vsews an alignment with
Communism as his best means of regaining power. It is questionable whether he
could win a seat in Parliament on a purely Mahsbeam ticket, but an alliance
between the BWPP and the astute and clever Ba Maw is potentially dangerous.
INDONESIA. East Java Lawlessness Increlising. The rapidly deteriorating
security situation in East Java is causing concern. One gang, estimated
at 1,000 men in strength, is operating in the south Malang district and
recruitss consisting largely of demobilized army men, are joining daily.
About 100 rubber estates remain in the hands of squatters who demand full
back pay for as much as four years as the price of the return of the pro-
perties to their legal owners. The UK Consul in Surabaya advises that he
is now recommending removal of personnel from British-orned estates to
more secure areae. Meanwhile Indonesian military authorities assure the
US Consul that "sweeps" are coming soon. The US Consul opines that the
situation will require large-scale and ruthless measures.
COMMENT: Indonesian army control continues to be weakest in
East Java largely due to poor military organization and discipline.
NEW ZEALAND. Government Remains Firm toward Waterfront Strike. At the
end of the third week of the waterfront strike, the Government is still
standing firm and retaining public support. The Waterside Union leader-
ship is now reportedly prepared to accept arbitration (hitherto refused)
but the Government appears determined that there will be no return to the
status quo ante and is apparently intent on fostering a new union which
would not contain the Wetersiders present militant leadership.
COMMENT2 New Zealand servicemen are continuing
to work ships at New Zealand ports. Meanwhile, the National Federation of
Labor is considering what policy it should adept toward the strikers. If
the Federation decides the strike is illegal, some of the support from
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other unions (refrigeration workers and miners now on sympathy strikes)
might be withdrawn from the Watersiders - an action which would somewhat
improve the labor situation. However, continued cargo handling by the
military would be unpopular in all union ranks.
"A" CHINA. New Re orts on the Presence of Soviet Personnel, The UK Military
Attache, Canton, who arrived in Hong Kong on 4 March, reports that the
Kwangtung capital is "full of Soviets", that their number has increased
rapidly of late, that they are high-handed with Chinese officials, that
anti-Russian sentiment amongst the public is obvious, that he did not
observe any Russian in uniform, and that he was of Impression that most
Russians were Air Force personnel.
Meanwhile, a European missionary, wh recentil, arrived in Hong Kong from
a town near Canton, states thnt he has never seen Soviet military personnel
in uniform. He has, however, seen many Russian sailors from Soviet ships
which now call at Canton. Of
some 30 missionaries from 1U different Chinese Provinces interrogated by
US Consular authorities in Ho Kon fe a.? or heard of Russians
in interior areas. COMMENT: The fact that
few missionaries had observed Soviet personnel in interior areas does not
necessarily mean that none are there. It is, however, likely that, with
few exceptions--such as possibly Nanning, Hankow, etc.--the largest con-
centrations of Soviet personnel, military as well as civilian, in China
are to be found in East China. Although there have been reports of Soviets
in uniform travelling in China, this is probably the exception rather than
the rule.
"A" KOREA. Error in Number of Jet Aircraft Re.p.a. A USAF spokesman has
announced that the reported sighting of 60 Communist jets veiXore on
8 March was erroneous and that only 15 had been sighted.
COMMENT: Enemy jet aircraft continue to be sighted in the
anc urian-Korean border area. It is known that the Communist possess
a considerable number of Soviet jet aircraft of advanced types and
have apparently been testing them under combat conditions in the Antung-
Sinuiju area. Thus far, the Communist have not exhibited any great
number of jets at any one time.
"B" JAPAN. Korean Espionage Agagla_Amatftg.CINCFE disclosed today that a
total of 45 North Korean secret agents have been taken4into custody
in Japan, while 100 others are still being sought in connection with three
interlocking espionage rings which have been operating in Hokkaido,
Northern Honshu and the Osaka area. One of the rings, operated by North
Korean Labor Party, (the Communist Party) worked in coordination with
leftist Korean 6ruups in ;Japan, while an economic net operated by the
North Korean Trading Company, financed agents and provided transportation.
CINCFE has appointed a military commission to try the first group of 24
agents, against which the prosecutor believes he had a prima facie
case.
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JAPAN. Prominent Communist Resigns. SUZUKI Tomin9 the former Communist
editor of the "Yomiuri Shimbun"9 has formally submitted his resignation
from the Japan Communist Party on the grounds of his distaste for the
internal strife and "power politics" among Party leaders. Suzuki added
that he was not aware of any direct support for the Party from the Soviet
Union or Communist China. , COMMENT: There have been
indications that the rift between the "internationalist" and "centralist"
factions has been on the mend. Suzukius remarks indicate that disserSion
within the JCP may still be serious.
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SECTION 3 (I. STERN)
"B" GERMANYt East Berlin Reports Agitate Berlin Uti1ity_V12rkers. Western
Allied authorities in Berlin are endeavoring to avoid intervention
in the city's public utilities dispute unless a serious emergency
develops. There are indications that the utility workers' determination
to strike for wage boosts may be bolstered by reports in the east
Berlin press that the Bonn Government is not considering financial
aid to Berlin to meet the workers' demands. These reports may turn
the workers' criticism from the Berlin administration to the Bonn
Finance Ministry. One union official has surefoste that th w r
may stage only a limited demonstration.
"C"
Cabinet Crisis Resolved Although the French National
Assembly last night approved Henri Queuille as Premier by a vote
of 359 to 205, agreement is not assured on the basic electoral
reform issue or on critical economic questions. Queuille is
apparently unable to secure a unanimous Radical turnabout in favor
of the single-ballot proposal of the Popular Republicans (MRP),
but, since only a small number of additional votes are required,
the "voting liberty" that the Radical Party has granted its
deputies on this issue should permit the necessary majority. Debate
is in prospect, however, on the question of financing a price-
stabilization fund for the pre-election period, because Queuille
has promised the Radicals that there will be no new taxes imposed
to support this Socialist-sponsored measure*
CCHEM: The break in the iadical
opposition to the single-ballot reform will probably settle the issue,
in view of the agreement within the Third-Yorce coalition that some
anti-Communist electoral reform is essential. The economic measures
to be adopted by the Queuille Government will be merely expedients
pending election of a new Assembly.
SWITZERLAND Swiss Seek to Ex edite Polish Coal Shipments A private
delegation of Swiss importers of Polish coal has arrived in Warsaw to
expedite shipments of 60,000 tons of coal still to be delivered under
the trade agreement expiring in June, 1951. Although the Poles are
treating the matter carefully, in contrast to their behavior toward
the Norwegians last fall, the Swiss believe that the Poles are evading
the present contract and wish to renegotiate the undelivered quantity
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at the currently much higher price The Swiss are prepared to negotiate
new prices on completion of the current contract but threaten to boycott
the Polish coal rarket "after the present shortage" if the Poles raise
prices now. COT,MIENT: In view of the developing
shortage of raw materials in Switzerland, the Swiss would be hard pressed
at the present time without Polish coal. However, the Swiss would carry
out their threat and end Polish coal imports once the current coal shortage
is over. This would in the long?run be harmful to the Poles because
under the 5?year trade agreement negotiated last year, the Poles will
receive important industrial equipment in return for their coal. The
careful attitude which the Poles are maintairiag toward the Swiss is
characteristic of recent dealings between the Soviet bloc and the
Seise, and indicates that a compromise may be achieved.
UNITED KINGDOM Cabinet Shuffle Strengthens Governmenti. Foreign Secretary
Bevin has transferred to the Cabinet sinecure of lord Privy Seal
and been replaced at the Foreign Ofj'ice by Deputy
Prime Minister Morrison. Morrison's former duties as Leader of the
House of Commons will be assumed by Home Secretary Chater Ede, while
Viscount Addison, Leader of the House of Lords; will take over
Morrisonls former responsibilities as Lord PPesident of the Council.
COMMENT1 This move, which ends a
period of mounting domestic irritation over the absence of a healthy,
vigorous Foreign Secretary means no change in
the broad lines of British loreign policy out puts the direction of
Britain's foreign policy into the hands of the only Labor leader
whose power, prestige, and influence within the Cabinet and the Labor
Party rivals that of Bevin and Attlee. Although inexperienced in the
handling of foreign affairs, Morrison's success as party manager will
facilitate his task of winning the support of the Parliamentary Labor
Party for his policies. Devin's retention in the Cabinet will make
for continuity in British foreign policy and for the continuing
supremacy of the moderate Attlee?Bevin?Morrison group within the
Cabinet. Chuter Edels reputation as a fair minded and competent
party regular will assist him in the discharge of his new duties,
although Morrison's political skill will be missed in matters of
party tactics. On balance, Attlee seems to have strengthened his
Government, and incidentally, to have greatly enhanced Morrison's
political chances in the latterles potential rivalry with Aneurin
Bevan for the future leadership of the Labor Party.
mum,. Dela in MDAP Plane Shinment Postponement of delivery of
jet aircraft to Denmark from August 251 to January 252 will adversely
affect Danish confidence in the US especially since certain necessary
air facilities are being readied by the earlier date at the specific
urging of the US. Morale of the airforce will decline if men remain
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idle because equipment is lacking.
Imum, The Danes, having decided to auppor NATO and realizing
only too well that their present position is exposed and the country
is practically unarmed, are readily depressed at any indication of
delay in delivery of materiel.
C" ARGENTINA Per:en Coneerned.about_Political Unrest President Per6
is concerned about reports that non-Peronista groups are gaining in
public favor. He feels that these groups may be waiting for the
proper moment to appeal to public sympathy, in view of their patience
even in the face of attacks by the Government,
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increased influence among labors which together with the Army form
the bases of Peronls support. Some loss in Peronista support was
reflected in the last two provincial elections and in the subsequent
railway strikes ( Nov 50 to Feb 51), which represented labors
strongest defiance of the Government. Despite the Government claims
that it can keep the opposition divided, opposition activity will
probably have an adverse effect on government stability during the
next few months.
"C" EL SALVADOR Government Foils Communist Plot The Salvadoran
Government has seized machine guns and ammunition belonging to
Communist elements reputedly plotting a cou cletat.s. Leaders of
the Communist labor group OROS (Comit; de Reorganizacibn Sindical)
have been arresteds some 20 conspirators have been deported to
Nicaraguas and a state of seize has been declared.
COMI\LE,NT. It is unlikely that
the current plot represented an immediate threat to the stability of
the Government. However, in recent mOnths the Communists have had
some success in the field of labor organization, and have been
seeking to establish a coordinated liberal opposition movement to
the Osorio administration. The current arrests (which are in line
with the Government b determination to suppress the Communists) will
deprive the left-wing opposition of some of its most active leaders.
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OFFICE OF CURRENT INTELLIGENCE
DAILY SUM/LARY
10 March 2951
DEPUTY FOREIGN MINISTERS! CONFERENCE
French See Bar aining Point in Trieste. Alexander Parodi, French repre-
sen a ive a e curren nee ing o e Big Four Foreign Ministers'
deputies, thinks the Ministers might discuss the stationing of US and UK
forces in Trieste and yet refuse to discuss the status of the Free
Territory. He has raised the question informally with Ambassador Jessup
to learn if the US wculd agree to evacuate Western forces now stationed
there. COMMENT: This is an expression of
the French desire to explore every possibility which might lead to a
basis for bargaining on specific issues. Although the troops in question
are merely a token force, their presence has given reassurance to both
Italy and Yugoslavia.
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SECTION 2 (EASTERN)
INDIA, Britain Prepared to Accept Ral h Bundle as UN Representative in
Kashmir. 0 3 March, US Embassy London reported that the UK was ap-
parently prepared to accept Ralph Bunche as UN Representative in Kashmir,
provided the Pakistanis did not raise violent objections. On 7 March, Sir 50X1
Zafrulla Khan, Pakistani UN Delegate, said that, though he did not reject
Bunche? Pakistan definitely preferred an American noted for his drive and
conmanding personality rather than for his ability at'negotiation.
CCHKENT: When it 50X1
became clear early in February that Adniral Nimitz would not be available
for this position, the US had suggested that Bunche be approached. The
UK objected becaase of its belief that Bunchets association with the
Israel-Arab settlement would probably make him unacceptable to the Moslem
Pakistanis on the grounds that he had been pro-Jewish. The UK has pre-
sumably been unable to discover a suitable substitute, however, and is now
prepared to see Bunche approached. Since Sir Zafrullah has raised no major
objections to Bunche, it mould seem that he is the most likely candidate
for the post.
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SECTION 3 (WESTERN)
FRANCE-GERMANY. Coke Dispute Threatens Schuman Plan and Relaxation of
1/177?There i no hope that he French Cabinet will approve lifting-Me
Crr)ling on German steel production or will agree to the Schuman Plan un-
less an equitable allocation of German coke supplies is guaranteed until
the Schuman Plan High Authority begins to function. French Foreign
Minister Robert Schuman and Jean Monnet, author of the coal-steel pool
plan, are seriously disturbed by current German attempts to withdraw
Western Germany's acceptance of the French proposal to work out interim
arrangements on coke. CENT : German
success in avoiding an agreement on coke allotments strengthens French
determination to require definite German commitments on coke supplies
before ceiling restrictions on German steel are lifted.
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