CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200120001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 16, 2016
• Document Release Date: December 21, 2004
• Sequence Number: 1
• Publication Date: August 25, 1952
• Content Type: REPORT

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25 August 1952
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OCI No. 8860
Copy NO. ~` J J
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
DIA and DOS review(s) completed.
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.
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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.
1. Soviet official replies to US protest on Linse kidnapping:
In a 20 ugus note to the Deputy High Commissioner in
Germany, the Deputy Chief of the Soviet Control Commission
rejected US claims that the East German Alert Police cooperated
in the kidnapping of West German lawyer Walter Linse. The
note did imply, however, that the kidnapping occurred in the
US sector, contrary to the allegation of the East German
Minister of State Security.
American officials in Berlin believe that the general
evasiveness of the Soviet reply indicates
barrassment over the Linse case.
2. Comment on Soviet behavior at the Olympics: The American
Ambassador at-Helsinki points ou that the Soviet representa-
tives at the Olympic Games showed clearly that they could
accommodate themselves to Western standards of behavior.
Soviet athletes were correct and sportsmanlike in competitions,
and friendly and surprisingly gregarious in their dealings
with other athletes, particularly the Americans.
Ambassador Cabot infers from this affable behavior that
the savage rudeness displayed by Soviet representatives in
the field of political debate and negotiations is "self-
induced and calculated."
He suggests that the correct behavior of the Soviet team
was deliberately intended to involve other athletes in the
Communist peace movement and to lull world opinion into
condoning Russian behavior in international affairs.
Comment: While the Soviet team's behavior at the
Olympics mma e a favorable impression upon many participants,
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Soviet propaganda was unsportsmanlike in referring continually
to the "bias" of the judges.
It is apparent that the Soviet Union viewed the Olympics
as an opportunity to implement Peace Council objectives.
Sportsmen, along with lawyers, scientists, religious leaders,
businessmen, etc., had been designated by the Berlin Peace
Council meeting of February 1951 as targets for an intensified
peace campaign. The effort to link the Olympics with the
peace movement was, however, notably unsuccessful.
3. . Czech-Hungarian economic collaboration reported: A re-
port recently receives om Czec os ova is states t at the
Czech HUKO industrial combination, under construction near
Kosice in eastern Slovakia, will collaborate with the Hungarian
Iron and Steel Complex at Diosgyor and Ozd in northeastern
Hungary, which produces about 80 percent of Hungary's steel
and all its pig iron. HUKO will also receive power from the
projected Tiszalok hydroelectric station in Hungary.
The Legation believes that, if the report is confirmed,
it is an important evidence of inter-satellite economic
planning, presumably inspired by the USSR, like the recently
concluded Hungarian-Rumanian agreement linking the power
facilities of the two countries and forming a joint company
to exploit Rumanian natural gas and sodium nitrate resources..
Comment: The combination of the power resources and
heavy in us ries of Hungary and Czechoslovakia falls under
the terms of the agreement signed in Budapest.on 27 April 1951.
The principle of economic cooperation recently was re-endorsed
by Hungarian Premier Rakosi.
An important new East European industrial center appears
to be in building in eastern Slovakia and Hungary. The
HUKO combine is touted by the Czech press as the largest
metallurgical plant in central Europe and assertedly plans
to produce one million tons of pig iron annually. The new
Hungarian blast furnace inaugurated at Diosgyor in May will
probably add about 150,000 tons to Hungary's estimated
annual production of 450,000 tons of pig iron.
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4. Polish Primate protests recent Communist actions against
the Church: Officials of the OffIce of Religious Affairs led
Polish security police in nation-wido raids on Catholic "lower
Seminaries" on 3 July, according to the American Ambassador
in Warsaw. The Primate of Poland has protested the action
in a letter to President Bierut, and mentioned the matter in
a sermon on 10 August. The story has not appeared in the
Polish press.
Comment: Polish Communist leaders have refrained from
a frontal a tack upon the Church because of its power, and
have used nationalism as a lever to secure Catholic support
for Communist policies. The actions on 3 July violate the
Church-State Agreement of 14 April 1950, and the assurance
of religious freedom provided by the new constitution.
The Primate's action makes it clear that he is determined
to resist the regime's campaign against the Church.
5. Polish Ambassador allegedly makes threatening statement:
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Polish Ambassador Grosz recently expressed pessimism about
peace prospects. He declared the United States was preparing
to launch what it would misrepresent as a preventive war, and
that the Soviet bloc might be forced to move to prevent it.
Ambassador Briggs states that this is the first time he
has heard this view attributed to any Communist diplomat in
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Comment: The American Embassy in Prague has reported
previously at Grosz as a militant Communist is always
careful in conversation to adhere to the party line, but that
he has shown less timidity or apprehension than others about
expressing himself.
There have been no other reports of recent threatening
statements by Communist officials, nor does the reported
version mention what type of action the Soviet bloc would take.
6. Pro-Soviet sympathies in Yugoslav army held insignificant
by Yugoslav staff officer: During a private conversation
with an American office-r, a Yugoslav General Staff officer
stated that pro-Soviet sympathy and activity in the army is
insignificant and anti-Soviet sentiment is strong. Italy is
also allegedly violently disliked by Yugoslav officers.
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In addition, the Yugoslav officer stated that American
military aid and cooperation are big morale boosters.
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Comment: Yugoslav army officers in general became
anti- ovietbecause of their experience with the Soviet Mili-
tary Mission prior to 1948. Many officers, however, have
found it difficult to adjust to closer relations with the
West after having been subject to years of bitter anti-Western
propaganda. Yugoslav officials assiduously attempt to im-
press upon Western officials their determination and unity
in the face of the Cominform threat, and it is generally be-
lieved that the officer corps is extremely patriotic and
appreciative of Western assistance.
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7. Japanese Foreign Minister anticipates election in
December: Japanese Fore-rin--ff finis e`r t5 az k~~~nfarmed Ambas-
sa-Murphy on 20 August that the Diet most likely will be
dissolved in November and general elections for the Lower
House will take place in December. Okazaki added that the
Liberal Party will present a united front and, in his opinion,
will maintain a substantial majority in the Lower House.
Comment: Most political observers in Japan believe that
the Li era s, while remaining the strongest party, stand to
lose in the Lower House. With US-Japan relations a primary
issue, the election results will significantly indicate the
electorate's attitude toward Prime Minister Yoshida's pro-
American policies.
Recent indications are that the threatened Yoshida-
Hatoyama split in the Liberal Party is now being composed,
8. Japanese Government to submit to Diet agreement on lease
of US1nava2 ssffps The Japanese Governmen as reveFse--3c -g.i`-
earTrer"aec si?n`and. now intends to submit for Diet approval
the agreement for the lease of 68 small US warships. Ambas-
sador Murphy comments that the Japanese Government's vacil-
lation in this matter reflects its concern over the acute
domestic political significance of its current moves in such
controversial issues as rearmament.
Comment: The government originally decided to handle the
agreemen as an administrative measure, thus avoiding the pos-
sibility of embittered discussion in the Diet from foes of
rearmament. The change in plans may be a belated recognition
that failure to solicit Diet approval would again subject the
government to charges of "dictatorship," with harmful reper-
cussions to the Liberal Party in the coming elections.
S. Reports of warship construction in Japan believed planted:
Erroneous Japanese press reports
requested estimates from Japanese concerns for the construction
of torpedoes and warships may have been planted, according to
Ambassador Murphy. The reports have been published concur-
rently with other articles discussing inquiries from Burma,
Pakistan and Brazil regarding warship construction in Japan.
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Murphy believe that Mitsubishi and other shipbuilding
companies which are seeking Diet legislation authorizing naval
construction may be involved. He notes that a bill for such
legislation is expected to be entered in the next Diet
session.
Comment: Munitions production in Japan is authorized
under temporary legislation, which was carried over from the
occupation and requires prior government approval. The
establishment of permanent legislation for this purpose is 25X1
still a sensitive political issue.
10. Japan reportedly to request departure of Soviet corre-
spond efifs i-FiTgh-'or Ie gn`51ice cf3'`7~td-ate missy
ofgI-cer i-n late July that the applications of two Pravda
correspondents, one Tass correspondent and a representative
of Sovexportfilm, to remain in Japan after 28 October would
be rejected. These are the only "unofficial" Soviet citizens
now known to be in Japan.
The same official also stated that nothing would be done
about the remaining members of the Soviet Mission until 30
October, when the issue will be considered by the Attorney
Comment: Japanese legislation required the registration
by 28Juuly of all foreign nationals who entered Japan under
SCAP's authority and who intend to remain in Japan after 28
October. On 23 July, the Soviet Mission presented without
comment a list of 60 staff members and 19 dependents.
11, US Embassy believes South Korean youth corps will
continue-its s o fie-T&assy reports
TFa 7fn-Pro=san,-a cttise_a_ITy of-Ii Pom-sok, has apparently
resigned from the chairmanship of the Taehan Youth Corps.
President Rhee's opposition to Yi probably created a split
among the organization's leaders resulting in An's with-
drawal.
The acting chairman of the Youth Corps told US Embassy
officials that he will not use the organization for politi-
cal purposes, Ambassador Muccio comments that it appears
unlikely that the acting chairman's policy will appeal to
other a honorary head, President Rhee.
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Comment: The Taehan Youth Corps was originally formed
for de e`nse and reconstruction activities but, since its
inception, has advanced and supported the administration's
policies. President Rhee has tried vainly on several oc-
casions to arm this potent political force.
The resignation of An further reduces Yi Pom-sok's
influence on the ROK political scene.
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16e Chinese Nationalist force penetrating Karen territor :
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in Chinese Nationalist forc(
700 men has moved south rom northeastern Burma into the
base area of Karen operations.
The American Embassy comments that continued Nationalist
involvement with the Karens might cause the Burmese Govern-
ment to make the Nationalists their primary target instead of
the insurgent Communists.
Comment: Open Nationalist cooperation with the Karens
could inf ence the Burmese to appeal the issue to the United
Nations or to request military assistance from the Chinese
Communists.
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17, Large bpndit concentration reportedly active in Thai-
Lalavn order area: 11Bri t s h oLieia
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old the American Consul
tration of 500 bandits
was reported moving toward the Padang Besar area in north--
eastern Perlis. Police patrols in the area reported no
contacts, but a report later in the day advised that the
Bangkok train had run through heavy firing three miles
inside the Thai border. One hundred bandits allegedly are
moving west from Padang Besar toward Sadao. Police believe
that the size of the on inal force was much exaggerated.
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Comment: The British have estimated bandit strength
in the er area at 200 men. There have been few incidents
in the area since a Security Force operation in November 1951,
although the Communists continue to dominate both the Sadao
and Padang Besar regions.
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19, Indonesian Ambassador to Moscow to be announced soon:
The American massy in London reports that if-isunder`stood"
that Subandrio, Indonesia's Ambassador to Great Britain,is to
be assigned to Moscow, and that the announcement of his trans-
fer will coincide with the appointment of Mangunsarkoro, a
National Party member, as Indonesian Ambassador to Peiping.
Comment; The appointment of ambassadors to Moscow and
Peiping has een rumored since the cabinet took office in
April, but there have been no recent reports directly from
Djakarta on the subject.
20. Mossadeq refuses to use force against Tudeh demonstrators:
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Ministe
r o Court a has to m assn or Henderson that he
had tried to persuade Mossadeq to give the police more powers
to suppress Tudeh demonstrators. Mossadeq refused and insisted
that the Tudeh could not be controlled by force, but only by
economic and social reforms. He suggested that it would be
easier to maintain order if the national anthem were not
played and if the Shah's picture were not publicly displayed
because the Tudeh used them as excuses for demonstrations.
Comment: Mossadeq's attitude is consistent with his
declared a ief in the right of free speech. His attempt to
avoid conflict, however, will probably be considered a victory
by the Tudeh.
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24. President Khouri expects Lebanese Government to fall
soon: President ours Lebanon- ai toM merican inister
Minor that he expects Premier Solh's government to fall during
the special session of parliament called for 28 August.
The President envisages a new government headed by Sahib
Salaam, composed of capable men not in the present cabinet,
but excluding members of the parliamentary opposition.
Comment: Salaam is a successful Moslem businessman who
is reported to have political ambitions.
The special session of parliament will be asked to grant
the government extraordinary authority to enact reforms by
decree. The' government-sponsored program, which does not
include either tax or land reforms, is an attempt to pacify
increasing opposition to the Khouri regime, President Khouri
has previously indicated that he is willing to sacrifice
Premier Solh in his efforts to maintain his position.
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25. East Germans seen attempting to control Protestant Church:
The East German Government report: ly proposes to substitute a
single Protestant Evangelical seminary for the present six
theological faculties in various universities. American of-
ficials in Berlin see this as a move to confront the Protestant
Church with obstacles similar to those now faced by the Catholics.'
The government would then be able to reduce the number of students,
isolate them socially, and more effectively control their cur-
ricula and activities.
Comment: These moves contrast notably with the attitude of
the East Germans earlier this year, when attempts were made to
exploit the church in East and West Germany as a means of
organizing West German opinion against the European Defense
Community.
26. Saar political leaders urge referendum on territory's
Europeanization: The leaders o the Saar Government are pes-
simistic regarding French-German efforts to find a solution to
the Saar issue and fear that Germany may break off the current
negotiations at the 29 August meeting. The leaders believe that
a strong demonstration of the Saarlanders' wish for European-
ization might strengthen the hands of both Schuman and Adenauer,
and therefore urge that a referendum be held before the present
talks break down.
The American Consul in Strasbourg believes that the Saar
Government desires immediate British and American support to
press for a referendum.
Comment: Saar government leaders are discouraged by France's
insistence on the maintenance of the French-Saar economic union
and its refusal to cede any territory to a Europeanized Saar. They
are also disturbed by Germany's growing tendency to postpone a
settlement.
27. Pleven delays French-American air-base agreement: French
Foreign Minister Schuman has informed the American Embassy that
Defense Minister Pleven has still not given a definite reply to
his inquiry regarding signature of the air-base agreement, but
has implied that there are no unsettled issues.
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Comment: Although the technical aspects of the agreement
cover ng American air bases in France have been settled since
early August, Pleven has avoided setting a date for signature.
The Embassy states that for some time Pleven has been "dif-
ficult" on anything relating to the United States. This at-
titude presumably stems from his failure to win additional
American financing for French armament production. He may be
planning to use the air-base agreement as a bargaining weapon.
28. Schuman wants early North Atlantic Council meeting: French
Foreign Minister Schuman has informed the American Embassy that
he favors a North Atlantic Council meeting in the latter half of
November to avoid too long a gap since the February meeting at
Lisbon, and to overcome the current public uneasiness over the
status of the NATO defense program.
Comment: The British have been urging an early fall NAC
meeting. They have countered US proposals for a post-election
session devoted primarily to a study of the NATO Annual Review
with the plea that the review cannot be completed before January.
29. French officials divided as to "competence" of UN in
Tunisian question: French Foreign Minister Schuman h as told an
Amer can massy official that widely diverging views are held
both in the Foreign Affairs Committees and in the cabinet as to
the United Nations' "competence" in the Tunisian question.
Schuman, who believes that the UN is competent to discuss
the Tunisian question but not to take action, such as appointing
a commission of inquiry, expects the cabinet to make a policy
decision at its next meeting on 3 September.
Comment: The ending of France's opposition to UN discussion
has been expected.
30. Austrian participation on Eastern Danube Commission opposed:
The British Deputy High Commissioner in Vienna states that his
government shares the American view that Austrian participation
in the Eastern Danube Commission in observer or any other status
is "highly undesirable."
The French Deputy High Commissioner, who has not yet
received instructions from Paris, is reported to believe that
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his government will support the American view from a "juridical
standpoint," but that it may consider Austrian participation on
an observer basis an acceptable means of strengthening the Yugo-
slav position on the Commission.
Comment: The Austrians have recently expressed an interest
in representation on the Danube Commission, citing the resumption
of Austrian traffic on the Soviet Zone sector of the Danube and
Austrian "business interests" as reasons. The United States has
strongly opposed Austrian participation on the grounds that such
representation might be interpreted'as a weakening of Western
opposition to Soviet domination of the Commission as set up under
the Belgrade Convention.
32. Communist bacteriological warfare film exhibited in Guate-
mala: About 300 persons saw a film on bacteriological war are
shown in a government-owned school on 12 August by the Guate-
malan "Peace" Committee in connection with the report of dele-
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gates recently returned from the Preparatory "Peace" Conference
in Peiping. Advance publicity was provided by the government
radio and a semi-official newspaper.
Comment: The film is presumably one of those purporting to
provide "irrefutable" evidence of United States use of BW in
Korea which have been distributed at recent international
Communist-front conferences. Guatemalan delegates went to Vienna
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in April for the International Conference for the Defense of
Children, and to Peiping in May and June for the Preparatory
"Peace" Conference.
The circumstances surrounding the showing of the film in
Guatemala give further evidence of the considerable aid which
officials of the Guatemalan Government give to Communist propa-
ganda efforts.
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