CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001300040001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 12, 2016
• Document Release Date: January 4, 2002
• Sequence Number: 1
• Publication Date: September 26, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
26 September 1952
OCI No. 9387
Copy No.
297
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.
State Dept. review completed
SECRET
SECURITY INFORMATION
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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 OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
Sweden stops almost all exports to Poland: Sweden's ex-
ports to Poland, including iron ore, have virtually ceased
as a result of the impasse reached in the negotiations where
the Swedes have tried to secure a further reduction in the
price of Polish coal. At the Poles' request the mixed
Swedish-Polish trade commission is now meeting to consider
continuing negotiations.
Since Swedish coal stocks are adequate, the American
Embassy in Stockholm believes that an agreement is not likely
to be reached unless the Swedish Government influences coal
importers to agree to a price higher-:than the trade position
warrants. (C Stockholm 368, 24 Sept 52).
Comment: Sweden was to export 1,000,000 tons of iron
ore toond this year. Approximately 30 to 40 percent of
Poland's iron ore imports from the West come from Sweden and
Norway. A continued suspension of Swedish exports of iron
ore to Poland could have far-reaching effects on that countryis
Six-Year. Plan.
Although the USSR could step up its iron ore exports to
Poland, this is unlikely and may account for the fact that
Poland wants to reopen price negotiations.
2. USSR to gain sterling exchange from Pakistani freight
payments: According to the Pakistani-Soviet trade agreement
s ggnned on 16 September, the value of Soviet wheat shipments
of 5,892,870 pounds sterling is to balance exactly the value
of Pakistani shipments of cotton and jute. The price to
Pakistan of this Soviet wheat is $110 per ton.
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In addition, Pakistan is to open a credit in the USSR
state bank of 553,000 pounds sterling (about $1,500,000) to
pay freight charges for the Soviet shipping used. The
Embassy comments that the USSR will presumably be able to
transfer this sterling balance to Pakistan. (S Karachi 468,
23 Sept 52)
Comment: Both the price set for Soviet wheat and the
freighF barges seem reasonable in terms of world market
prices.
The USSR could use the sterling obtained from freight pay-
ments for current transactions with the sterling bloc or with
the eighteen other countries which participate in the United
Kingdom's transferable account system.
schedule for household consumption of electric power would be
abolished and replaced by a new one on 25 September. (R FBIS
Sofia, 24 Sept 52)
The Bulgarian Home Service announced that t He existing
Further electric power restrictions instituted in Sofia:
Comment: Due to seasonal fluctuations in loads carried
by its power plants, the periodic institution of strict
schedules for the conservation of electric power in Bulgaria
is a normal occurrence. These most recent restrictions may
in part be explained by the prolonged drought experienced
by Bulgaria during the past summer. Household consumption in
Sofia will be limited to 94 hours per week, 8 hours less than
allowed under the previous schedule announced on 8 August.
Despite great publicity given to successes achieved in
Bulgaria's electrification program during the past year, house-
holders in Sofia are at present allowed to use considerably
less electric power than was permitted under similar con-
servation schedules instituted during the fall of 1951.
4. Supplementary trade agreement signed between USSR and
Finland- At an official ceremony in Helsinki marking e
completion of reparations payments to the Soviet Union, Prime
Minister Kekkonen commented that the problem of finding
markets for the products of industries expanded to meet repara-
tions payments had been solved by the signing of the five-year
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trade agreement with the USSR in 1950 and the supplementary
agreement which was recently negotiated.
Soviet Minister of Foreign Trade Kumykin stated that
trade between the USSR and Finland could be further increased
and the Soviet Union would supply Finland the raw materials
necessary to fulfill Soviet orders. (R Helsinki 183,
24 Sept 52)
Comment: The supplementary trade agreement signed in
Helsinki on 22 September provides for an additional exchange
of goods totalling 610 million rubles (about $152,500,000 at
the official rate of exchange) between the two countries
during the remainder of the period covered by the original
five-year trade agreement.
5. Members of former Social Democratic trade union allegedly
deported from Buda-pest: 25X1C
that a number of persons deported from Budapest on 17 Septem-
ber were members of a prewar Social Democratic printers trade
union which had been attacked by the Communists as "aristocratic."
Deportations from Miskolc on 3 July also allegedly involved
several former Social Democrats.
The US Legation in Budapest notes that the current re-
placement of all Hungarian Workers Party membership cards
may be a cover for the weeding out of former Social Democrats.
(C Budapest 283, 24 Sept 52)
Comment: Such deportations for trade union activity, if
confirm-e
- , would show that the Hungarian regime is prepared
to take forceful measures to break union opposition to the
newly imposed work norms and to uphold Rakosi's pronouncement
of 14 August that the Five-Year Plan is "realistic."
The replacement of former Social Democrat Sandor Ronai
as president of the Presidium on 14 August destroyed the
pretense that the government was a coalition in which Social
Democrats participated, while the mounting attack on Social
Democratic influences in the unions, pbihts'to_:the'increasing
dominance of Soviet concepts. The older Socialist ideals
are now condemned as being concerned only with material
interests and as apprehensive of the power of the worker's
state and the USSR,
6. Ambassador's views on Polish hate-America campaign: In
view of the intensity of the current hate-America campaign
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in Poland which has included the vilification of the United
States, its president and its government by the Polish Prime
Minister, the American Ambassador in Warsaw believes some
positive reaction is necessary. He points out that US
failure to take official note of these scurrilous attacks,
when made by the leaders of the Polish Government, could be
construed as a sign of weakness and not only encourage
repetition but also perhaps invite undue aggressiveness by
the Orbit. (S Warsaw 148, 23 Sept 52)
Comment: The hate-America campaign has recently attained
new heights of intensity as have attacks against the Voice
of America which are made now on a daily basis in all propaganda
media.
No such official reaction to anti-American statements
by Polish leaders has been previously attempted.
7. Measures apparently to be taken against VOA listening
in Po land: The Polish campaign against the Voice o ,
which ha reached a high degree of intensity, is regarded
by the American Embassy in Warsaw as evidence that the
programs have a large audience. An article in the official
organ of the Polish Communist Party mentioned that vacationers
and young people listen to these broadcasts, and added that
it was necessary to stop listening, "not only in recreation
rooms but also in private apartments."
Embassy officials believe that local authorities un-
doubtedly will increase efforts to obstruct VOA listening,
and may even prohibit listening to foreign broadcasts.
(C Warsaw 151, 24 Sept 52)
Comment: While listening to foreign Polish-language
broadcas s is not prohibited by law, it is not encouraged,
and repeating the content of the broadcasts is forbidden.
The Polish press has indicated that a main purpose of the
Martyka trial which ended this week was to condemn the Voice
of America in the eyes of the Polish people.
Indicative of the Polish Government's concern about the
number of Poles who listen to these broadcasts is the fact
that it has permitted the present publicity, which could only
draw further attention to VOA broadcasts.
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8, Japanese official anticipates further curtailment of
Japanese Communist influence. Kinya Niizeki, Soviet Desk
Officer o the Japanese-Foreign Office, believes that the
Japanese Government will severely curtail the Japanese Commu-
nist Party through such measures as suspending their news-
papers and publications and closely controlling its agitation,
according to a US Embassy report. He added that he did not
believe the party would be completely outlawed in the near
future.
Niizeki stated that the government hopes to deport at
least 10,000, and possibly as many as 100,000, leftist
Koreans. He also indicated that the Foreign Office was not
ihclined to take the initiative in restoring relations with
the USSR and had agreed in principle that the Soviet Mission
should be expelled. (S Tokyo Unnumbered Memo, 6 Aug 52)
Comment: The recently-enacted Anti-Subversives Activities
Law will provide the legal basis for additional measures
against the Communists, expected to take place shortly after
the establishment of the new government.
Japan-Korea fishing dispute eased by UN Command: US
Charge Lightner reports that the possibility of a dispute
between Japan and Korea has been greatly reduced following
CINCUNC's 23 September action establishing a restricted
military zone off the Korean coast. Japanese fishing vessels
will be barred from this zone, which does not, however, ex-
tend as far from shore as the "ghee line." Lightner comments
that President Rhee is probably unaware that the new zone
actually follows the proposed Japanese patrol line except
for one area near Cheju Island. (S Pusan 384, 25 Sept 52)
Comment: The Japanese Government has agreed to the new
eserving its absolute right of free navigation
propos17-1
on the high seas. It has requested, however, that the
American navy protect Japanese vessels from unwarranted
seizure.
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10. ~ Pacific "peace" conference postponed to 10 October: A
Chinese Communist broadcast to the e Minh on 25 Sep ember
stated that the opening of the Asian and Pacific Regions
Peace Conference has been postponed to 10 October owing to
the inability of many delegates to arrive by the planned
.opening date, 26 September. (R FBIS Chinese Comm Transmitter,
25 Sept 52)
Comment: Many of the 300 to 500 delegates to the "peace"
conference - ave been unable to obtain visas or have encountered
other obstacles. Similar Communist-sponsored conferences have
often been postponed as a result of organizational problems.
By postponement, the Communists will avoid a conflict
with Peiping's third anniversary ceremonies on l,October and
will have time to adjust to any new line developing from the
Soviet Communist Party's 19th Congress on 5 October.
11. New railroad spur reported near Kunming in Southwest
China: An . mer can who left Kunming in early 1952 reported
that the Communists are building a railroad spur from Kunming
to Kunyang at the south end of the lake on which Kunming is
situated. He stated that rails are being shipped in by truck
and that the purpose of the line is to connect Kunming with
the Kunyang arsenal. (C Hong Kong Desp 8, 3 July 52)
Comment: This is-the first report of Communist work on
this spur Tine.
25X1A
Chinese officials arriving in India from a reportedly
stated that construction work on the road to Lhasa from the
Indian border was progressing "very quickly," and the con-
struction of a highway from China proper into Tibet was also
planned. Airfields, they declared, were being constructed
Communists reportedly plan roads and airfields in Tibet:
"in more than one place in Tibet."
Comment: Evidence of construction in Tibet is available
from several sources. The purchase of roadbuilding equipment
in India for use in Tibet was reported early this year. Al-
though there is no confirmation of the frequent reports of
airfields in Tibet, it is likely that such construction has
been undertaken.
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SOUTHEAST ASIA
13. Thailand decides against termination of rubber agreement:
The Thai overnmen has decided against terminating the US-
Thailand rubber purchasing agreement. Premier Phibun has
issued a public disavowal of any connection between the current
slump in rubber prices and the agreement, and has stated that
it afforded Thailand a secure market which was an important
source of dollar exchange. (C Bangkok 531, 24 Sept 52) .
Comment: The Thai decision was occasioned by an American
offer Terminate the agreement in view of the embarrassment
caused by Communist-exploited allegations that the United
States had imposed low rubber prices on Thailand through
"restrictive" provisions. Phibun's statement provides the
first authoritative Thai refutation of these misrepresentations.
Residency General considers naming another Tunisian to
French Delegation: The French Residency general in Tun s
is considering the possibility of adding a second Tunisian
to the French UN'General Assembly delegation in order to
counteract the charge that the present Tunisian member is a
Francophile. An unnamed candidate is under consideration and
is said by a Residency spokesman to be a strict Moslem with
a strong nationalist background but anti-Neo-Destour. How-
ever, since this candidate also is antagonistic toward the
Bey, the appointment might nullify the good propaganda effect
of the appointment. (C Tunis 117, 23 Sept 52)
Comment: The present Tunisian member of the French dele-
gation rU-T a United Nations, as well as the Residency, is
sensitive to his unpopularity with the nationalists. In a
conversation with an American consular official on 25 August,
he hotly denied any lack of patriotism. He is known to favor
the idea of Franco-Tunisian association rather than rivalry,
and is considered to be reasonable, to have grown consider-
ably in stature in the past few years, and not to be a mere
French stooge.
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15. French-increase security measures in Casablanca area:
Under a pre ex of controlling the increasing crime rate,
French security forces were augmented in mid-September by four
sections of motorized police, Security forces have arrested
approximately 800 persons in *idespread raids. (C Tangier
Weeka 12, 19 Sept 52)
Comment: Nationalists in Tangier have confirmed the
tightening of security measures in the French protectorate.
Since last December, the police have been trying to
obliterate Communism in French Morocco. In spite of failure
to indict four youths who were arrested while posting hand-
bills on the walls, further arrests of Communists were
foreseen six weeks ago.
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16. Mittelland Canal traffic to Berlin may soon be resumed:
West German officials have learned that reps rs on the Rothensee
shiplift in East Germany have been completed. If tests prove
satisfactory, the shiplift may be opened the week end of 27-28
September. Federal Republic waterways authorities intend to
alert barge operators on the MittellandCanal for immediate re-
sumption of.service to Berlin. (C Bonn 1331, 24 Sept 52)
. Comment: The shiplift was closed on 1 August for repairs
which were expected to take two weeks. The Mittelland Canal is
the normal-route for important shipments of coal to Berlin.
17, Adenauer foresees opportunity to press France on EDC ratifi-
cation: ance or enauer has confided to American officials
in Bonn that Premier de Gasperi told him ratification of the
EDC treaty would have "clear sailing" in the Italian Parliament,
possibly in November, provided the new election law was passed
without trouble. Such prompt Italian action, on top of American
and British ratification of the contractual agreement and
German acceptance of both treaties, would provide an opportunity
for successful exertion of pressure on the French, the Chancellor
emphasized.
In a conversation with American officials in Paris, West
German "Defense Minister" Blank stated, however, that he was
very pessimistic about French ratification. (S Bonn 1338 and
S Paris 1860, 24 Sept 52)
Comment: Despite Foreign Minister Schuman's 24 September
announcement that he would request the Assembly to act promptly
on the EDC treaty when it reconvened on 7 October, there is
still no evidence that the Pinay government as such is willtfig
to give the treaty priority over domestic issues.
The American Embassy in Rome has reported that early
Italian ratification of EDC would be difficult, especially in
view of an expected Communist filibuster against the govern-
ment's legislative program.
18. Secretariat of OEEC alarmed over French submission to an-
nual review: Ambassador Draper reports that t e Secretariat
of tie tEEC considers that the French submission to that
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organization's annual review of economic capabilities fails to
provide for a solution for the French debt to EPU, a return to
trade liberalization, or steps toward internal stability. Any
solution to these problems would depend on American aid.
Unless the.French submission is altered, the Secretariat
may have to take a "strong critical line" which might be unac-
ceptable to the French as well as "explosive" should there be
leaks to the press. In view of France's key position, OEEC of-
ficials believe that the French attitude jeopardizes major
American objectives in Western Europe. (S Paris REPTO 1002,
24 Sept 52)
Comment: American officials in Paris have reported that the
Frenc'hsubmIssion left '"much to be desired" and only hinted at
government policies for resolving its many economic problems.
These officials believe that the French have made unrealistic
estimates of 1953 trade with the EPU area, counting on extensive
American aid to ease the balance of payments problem. On the
basis of this paper, moreover, it is concluded that French
public finances will exert inflationary pressure on the economy
"for some time to come o "
19. Christian Democrats refuse alliance with National Monarchist
Party: em ers of t e a an National Monarchist arty and
?narchist Front dissidents recently talked with Christian Demo-
cratic leaders about the possibility of joining the center
electoral bloc, The 25X1C
Monarchists wanted an early decision so that they could start
preparing for next spring's elections.
According to the American Embassy in Rome, the Monarchists
have been informed by the Christian Democrats that their sup-
port as individuals would be welcomed, but that any coalition
with monarchist group as such is impossible. 25X1A
25X1A1 S Rome Joint Weeka 38, 19 Sept 52)
Comment: Monarchist Front leaders have since announced the
formation of the Italian Democratic Party, which they believe
w~il have no difficulty in Joining the center alignment,
20. Attack by Nenni on Italian Government's foreign policy
considered likely The Italian Foreign Ministry believes that
while etro enni was in Moscow, he may have been urged by
Stalin to attack the governments foreign policy in parliament.
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The Foreign Ministry states that Nenni could easily precipitate
a general debate on foreign affairs if he so desired. (C Rome
1308, 24 Sept 52)
Comment: Parliamentary consideration of the annual budget
of the 'oreTgn Affairs Ministry has usually been the occasion
for an attack on the government's foreign policy by the extreme
left, Appropriations bills for the various ministries must be
approved by the end of October.
In view of the Christian Democratic majority in the Chamber
of Deputies, the Socialists and Communists could hardly muster
sufficient support for a vote of no-confidence. However, Nenni
will most likely use a debate to play up Stalin's recent offer
of a nonaggression pact and trade benefits in return for Italy's
withdrawal from NATO.
Ireland protests presence of French planes in Northern
Ireland: The American Embassy in Dublin ha-s-S-een in orme that
The Irish Minister of External Affairs has asked the French
Ambassador to call and discuss the reported participation of
French planes in maneuvers in northern Ireland. (S Dublin 36,
24 Sept 52)
Comment: These French planes were probably engaged in the
RATU-Mainbrace maneuver. The Irish Government makes
periodic protests about violations of "Irish territory" in order
to draw attention to partition and forestall domestic criticism
that Irish neutrality is being compromised.
22. Four. arty coalition discussed'in Sweden: Subsequent to
the parliamentary a ect on on 21 September when the incumbent
Social Democratic-Agrarian government suffered unexpected losses,
-the Liberal and Conservative press in Sweden has been discussing
the possibility of a coalition government of the four democratic
parties. (R FBIS Stockholm, 24 Sept 52)
Comment: The loss by the Social Democrats and the
Agrarians of three seats each has stimulated the discussion
of a withdrawal by the Agrarians from the government. There is
no official indication as yet that this or a four-power
coalition is being considered.
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LATIN AMERICA
23. International labor meeting may be held in Argentina: The
Argentine nera Confederation of Labor has reporte ,_ ' called
an international."labor meeting, which ten or more ,countries are
expected to attend. The delegates are scheduled to gather in
Salto, Uruguay, and then on 17 October to cross the river into
Concordia, Argentina, to begin a publicity march to Buenos Aires.
(R Montevideo 84, 24 Sept 52)
Comment: It was previously reported to the Nicaraguan
Embassy in -Ruenos Aires that an Argentine-sponsored meeting of
the Latin American Committee for Syndical Unity would be held at
an unspecified date in Mexico City.
A Latin American labor conference beginning on 17 October,
the most important Peronista holiday, would be of tremendous
domestic political value to Peron, since he could make it appear
to be international endorsement of Peronista labor doctrine.
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TOP SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
TOP SECRET SUPPLEMENT
26 September 1952
CIA No. 9 2O
Copy No. 0
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 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 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 OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
NEAR EAST - AFRICA
Greek-Yugoslav military talks considered satisfactory:
The Gree n s er o Defense has told assa or eur oy
that the recent military conversations between Greece and
Yugoslavia were quite satisfactory.
Yugoslavia has assured Greece that at least one third
of the Yugoslav forces will be available to protect an area
of common interest in northern Greece and southern Yugoslavia.
Although no detailed defense planning has begun, a Greek dele-
gation which will visit Belgrade shortly may consider more
definite plans: (TS.S/S Athens 1026, 23, Sept 52)
Comment: Nearly one third of Yugoslavia's forces are
already garrisoned in this area. Progress has been made in
the Greek-Yugoslav planning, but Greek reports on this subject
have been over-optimistic in the past.
WESTERN EUROPE
2. London Embass sees final British acceptance of European
int. ration: The American asst' in London believes that
n ony .Eden's speech before the Council of Europe last week
indicates final British acceptance of close integration of
the six Schuman Plan countries. The Embassy feels that Britain
will now concentrate more on positive accomplishments in the
Atlantic Community, and recommends a conference with Britain
for pushing the development of a larger grouping of the Atlantic
nations. (C S/S London 1709, 24 Sept 52)
Comment: French Foreign Minister Schuman has stated that
Eden's speech constitutes real British support for the coal-
steel community.
Britain has long insisted on its own primary interest in
the Atlantic Community and in its possible development along
the lines of the British Commonwealth.
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