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CURRENT INTELLIGENCE DIGEST

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CREST [1]
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General CIA Records [2]
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CIA-RDP79T01146A001300010001-7
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RIPPUB
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S
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22
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December 16, 2016
Document Release Date: 
November 23, 2004
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1
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Publication Date: 
September 23, 1952
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REPORT
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Approved For%elease 2004/12/16: CIA-RDP79TO11469001300010001-7 SECRET 23 September 1952 OCI No., 9384 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. DIA review(s) completed. Army, OSD and State Dept review(s) completed. SECRET RETURN TO ARCH VES& BRAS DIM IIMMMEOIATELY AFTER USE ` JOB - RQ&....13 -...- L Approved For Release - 11461 0 1 i00l 25X1 Approved Fo,lease 2004/12/16: CIA-RDP79T01146?p01300010001-7 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. 1. British want representative at ANZUS Military Committee meeting: British Foreign Secretary en on September re- quest that arrangements be made for a British representative to attend the forthcoming meeting of the ANZUS Military Committee. He re-emphasized that Britain's special Common- wealth relations with both Australia and New Zealand involve an automatic mutual defense obligation and the closest mili- tary and strategic collaboration. Eden indicated that he expects parliamentary criticism over Britain's exclusion from the ANZUS Council. The Department of State has replied that all participants in ANZUS desire to maintain close liaison with Britain until such time as an expansion of the organization can be under- 25X1 taken. F77 Comment: The British press gave generally favorable treatment to the Honolulu meeting of the ANZUS Council, but suggested that Britain has a legitimate claim to future participation. Because of the Bevan-Attlee conflict in the British Labor Party, however, the Churchill government cannot be certain of immunity from parliamentary criticism on this matter, despite the fact that its position is essentially the same as that taken by the Labor government when the Pacific Pact scheme was initiated. observer status on ANZUS: The - ench Charge American massy in Canberra reports that the PF has approached both the Australian Department of External Affairs and the American Embassy regarding the prospects for a French observer at future ANZUS Council meetings. The Embassy as well as a high Australian official is inclined to 1 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 Approved For`$elease 2004/12/16 : CIA-RDP79T0114W01300010001-7 SECRET doubt the charge's t that he acted without instruc- tions from Paris. 3. Mexican copper shipped to possibly unreliable firm in Italy: 71 shipment of Tons of copper wire bars and tons of electrolytic copper cathodes left Vera Cruz on 8 September consigned to the Italian firm SITAMET by Cobre de Mexico. Cobre de Mexico has informed the US Embassy that this shipment represents an order approved by the US Consul General in Milan in August, and that it wishes to ship other orders totalling 3,300 tons to the same firm in the near 25X1 future. F77 I Comment: Cobre de Mexico, Mexico's only producer of electroly copper, customarily seeks US Embassy approval of its foreign orders. In August, the US Consul General in Milan withdrew his objections to a SITAMET order for 500 tons after confirming that the copper had been committed to re- liable buyers. The objections had been based on the knowledge that SITAMET had previously sold a strategic commodity to a notorious transshipper. 25X1 4. Georgian Party attacks independence The First ecre ary of e organ Communist arty, in his report to the 15th Georgian Party Congress on 16 September, claimed that some of the provincial leaders were attempting to promote "chieftainship" and were giving preference to local over state interests. He reminded the congress of the antistate activities of certain tribes in the 1920's and 1930's and warned that any similar attempt now to partition Georgia into separate principalities would not be tolerated. Comment: Georgia, until the recent purge, held a favoreposTtion in the USSR, receiving more material aid and less` interference in its political and cultural life than the other 15 republics. The resulting degree of autonomy for local officials apparently permitted a serious amount of corruption and nepotism. SECRET 2 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 25X1 Approved For Lase 2004/12/16: CIA-RDP79T01146A 130001000.1-7 SECRET 5. MVD responsibility for Volga-Don Canal confirmed. The Soviet press on 20 ep em er announce a e u ers of the Volga-Don Canal were awarded the order of Lenin. The list of recipients includes Minister of Internal Affairs S. N. Kruglov and five of his Deputy Ministers, N. K. Bogdanov, S. S. Mamulov, B. P. Obruchnikov, V. S. Ryasnui and I. A. Seroa . The Embassy in Moscow believes that the absence of awards to top officials of other agencies of the Soviet Govern- ment leaves little doubt that the MVD was the responsible agency. The sensitivity of Soviet officials concerning the ' MVD s role in this project is demonstrated by the fact that the list omitted the titles of these six officials. I Comment: The reluctance of the Russians to indicate the responsible agency may be attributed to the fact that they do not desire to connect the name of the infamous MVD, with its millions of forced laborers, to a project supposedly constructed by free socialist labor. 6. Initiation of fall troop rotation in Soviet Zone of Austria. orces in us r a es ma e a oviet troops arrived in Austria via Hungary during the period from 15 to 17 September. Approximately 500 of these were sent on to garrisons in western Hungary; the remainder arrived at Kaisersteinbruch Reception Center southwest of Vienna. These troops, which appear to be recruits,-probably represent the first increment of the anticipated fall rota- tion, but there is no evidence of the imminent departure of age classes eligible bilization. Comment: Approximately 2,900 Soviet troops arrived in Austria e ween 21 and 26 July, after which the reception center was reportedly closed down. Recent information has indicated that these troops were recruits from the class of 1933. The latest; :arrivals are probably,also:_of,..-the 1933 class. Soviet troop rotation in Austria appears to be following the two-phase cycle which occurred last year. Over 10,000 troops of the 1931 class entered Austria in June 1951 and approximately 4,350 of the 1932 class arrived during November. SECRET 3 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 25X1 25X1 Approved ForWease 2004/12/16 : CIA-RDP79T01140"01300010001-7 SECRET 7. French-USSR delegation departs in irate mood: According to the renc Ambassador n Moscow, a delegation from the USSR-French Society visiting the Soviet Union recently de- parted in an irate mood because of the close rein applied by Soviet authorities on the delegates' activities in Moscow and, particularly, because they were unable to obtain an interview with Ilya Ehrenburg, prominent Soviet author and propagandist. Officials in the American Embassy comment that the treatment given the French delegation is indicative of the unwillingness of Soviet authorities to permit contacts be- tween Soviet citizens and foreigners in the USSR. Moscow feels this separation is necessary even though the visitors are sympathetic to Communism and despite the fact that Commu- nists abroad are promoting national fronts and world peace campaigns. EASTERN EUROPE 8. Continuing release of Bulgarian political prisoners report: According to information o a ne roug e Eastern European Bureau of the Netherlands Foreign Office, the number of new internees in Bulgarian concentration camps during the past two years has been less than the number set free. There are at present no more than 7,000 political prisoners in the country, all of whom are quartered on Bellene Island in the Danube River. Although a large number of camps were crowded with political unreliables immediately following World War II, inmates of these camps were transferred to Bellene beginning in July 1949, and the former camps are now occupie only b common criminals and paramilitary labor personnel. Comment:" Other recent estimates have placed the number of Bulgarian political prisoners at 60,000 or more. Although the Bellene camp is believed to be Bulgaria's largest center for political offenders and unreliables, it is doubtful whether it is the only prison of its type in the country. Many such camps have been reported to be located in the Dobrudja. Since even the slightest opposition to the regime is considered a crime, it is difficult if not impossible to differentiate between "political prisoners" and "common criminals" in Bulgaria. 25X1 25X1 4 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 Approved For Nase 2004/12/16: CIA-RDP79T011464?l1300010001-7 SECRET 9. Polish troops believed returning to barracks from field train ng areas: a ary Attache n arsaw, w o re- turned on`geptember from a three-day field trip into northwest Poland, reported that all Polish and Soviet barracks were still empty except for housekeeping details. Since 16 September, however, "more and more trucks are coming into the First Division area in Warsaw with paraphernalia and supplies." In addition, there was evidence that Polish and Soviet troops in the Grossborn training area were getting ready to move out, and Warsaw newspapers reported a demonstra- tion in Katowice welcoming Polish troops back from summer training. The attache expects most or all of the troops to be back in barracks by 27 September. Comment. Last year all Polish troops had returned from field ra n ng to their home garrisons by late September. These movements took place by train, however, and western observers were not aware of them. There has been no indi- cation yet on what scale the summer field maneuvers were held. 25X1 10. Martyka trial involves Polish gentry, US official and former I employees: of s press account-9 o the a-r y a trial, which en e In Warsaw on 20 September, have played up the "refinement" of some of the female gentry involved with the accused. Testimony has charged that the USIS was engaged in espionage, has implicated two former USIS employees in Warsaw as go-betweens with the band which allegedly murdered Martyka, and has involved an American Foreign Service officer who has recently been transferred from Warsaw. American Embassy officials emphasize that there is no indication that the Poles intend the trial to produce serious diplomatic consequences. The testimon apparently does not involve any Americans now in land. 25X1 I 'I Comment: Several of the accused are former landowners and mem" hers of the aristocracy, and the trial is apparently intended to condemn the remaining elements of these classes in the eyes of other Poles and show that they are connected with the United States. Repeated mention of the intelligentsia suggests that trial propaganda is designed to warn hostile segments of this class, while seeking to retain the allegiance of the pro- government portion. This also may be further evidence of the 5 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved For) lease 2004/12/16 : CIA-RDP79T01146 01300010001-7 SECRET appeal of Western broadcasts to the intelligentsia. Reference to the US inspiration of the accused and the "American gangster"methods used in the murder show that the trial is part of the current hate-America and anti-VOA campaign. The implication of former employees of the USIS, which was closed a year ago in Warsaw, is undoubtedly a further attempt to prevent Polish citizens from having any contact with the American Embassy. 11. Polish physicists confer with Soviet scientists: The American Embassy In Warsaw has reported the conclusion of a physicists1conference at Spala, Poland, on 15 September. The two weeks' conference, was attended by 150 Polish scientists and three Soviet professors, and included discussions of nuclear physics. Professor Infeld acclaimed its importance and called it a "turning point in the history of Polish physics." Embassy officials commented that the conference may be the beginning of the'use of Polish brains in Soviet economic development. Comment: For some time there has been some discontent among dish scientists because of the refusal of the Russians to allow them either to contact Western scientists on nuclear subjects or to participate in Soviet atomic de- velopment. This conference may indicate that the Russians will now permit the Polish scientists to perform some un- classified tasks for them. On the other hand it may be a conciliatory political move by the Russians. Leopold Infeld, the Polish-Canadian atomic scientist, collaborated with Enstein at Princeton in the late thirties and held the chair of applied mathematics at Toronto Univer- sity from 1939 until 1950, when he returned to Poland to take a leading part in Polish political-scientific activity. 12. Joint Rumanian-East German chemical company created: The BucHare radio has announce t a on . ep em er a protocol was signed in Berlin which expanded the volume of trade between Rumania and East Germany. In addition, the protocol called for "the creation on a parity basis of a mixed Rumanian-German company for the development of the chemical industry in the Rumanian Peoples' Republic by utilizing raw materials available" in Rumania. SECRET 25X1 6 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 Approved Foi,itelease 2004/12/16 : CIA-RDP79T01146 14fik001 3000100 SECRET The importance of the agreement is indicated by the negotiators for both countries. Chivu Stoica, Vice Chairman of the Council of Ministers, and Miron Constantinescu, Chairman of the State Planning Commission, represented 25X1 Rumania; while Heinrich Rau, Deputy Minister-President, and Bruno Leuschner, Chairman of the State Planning Commission, signed for the German Democratic Republica I I Comment: In June Rumania and Hungary concluded a similar agreement whereby a joint company was to be set up with Hungarian equipment to exploit Rumanian natural gas and chemical resources. Another agreement for economic coopera- tion was recently concluded between Hungary and Czechoslovakia. A build-up of Rumania's chemical industry, in addition to its petroleum industry, will greatly increase its stra- tegic and industrial potential within the Soviet Orbit. 13. Rumanian collectivization drive continues: The American Legation n uc ares repor s a the "triumph of Socialism in the villages" is being widely hailed in the Rumanian press, while there are frequent notices of convictions of kulaks for sabotaging sowing and withholding crops from the state. Em- phasis appears to be on formation of agricultural tilling associations rather than kolkhozes, but the press has reported for the first time that 47 of these associations have been changed into kolkhozes. pressure for collectivization has been sharply increasea "un- socialized" Transylvania, chiefly through confiscation of land and imprisonment for nonpayment of taxes. Comment: Increased prominence given to formation of agricultural associations coincides with the first anniver- sary of the drive, which began in September 1951, for formation "on the voluntary principle" of permanent agricultural associations. At that time it was announced that these associations would accustom peasants to "collective methods of managing their agricultural exploitation as a preliminary step toward establishment of collective farms." Some 1,112 agricultural associations have been formed in the last year, 265 of them in the, past month; and over 400 collective farms have been set up in 1952. SECRET 7 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 25X1 Approved Foi elease 2004/12/16 : CIA-RDP79T01146&001300010001-7 Japanese confident that World Buddhist Conference will not be subverted: Japanese delegates a eve that their large majority at World Conference of Buddhists will prevent the conference from being subverted by radical elements from South- east Asia, according to Ambassador Murphy. Murphy notes, however, that although the conference appears to be primarily religious in nature, there is some danger of a Communist attempt to tie in the conference objectives with those of the Peiping Peace Conference. He reports that "Peace through Buddhism," as contrasted with the building of armaments, is ex- pected to be on the agenda for discussion. Comment: Japanese Buddhists, who traditionally avoid politics, will oppose any attempts by radical elements to swing the conference toward political matters. On the other hand, left-wing Buddhist groups will probably exploit the peace issue, and may also follow the precedent set in Burma and Thailand where strenuous efforts are being made to establish the compatibility of Communism and Buddhism. tacked Communist derlegates to the Peiping Peace Conference on 18 September in the Japanese Foreign Office was part of the "National Martyr's Youth Corps." The corps is an ultra- nationalist;, paramilitary, youth organization formed last June to crush Communist activity in Japan. Ambassador Murphy comments that although this is a minor incident, it is the first publicized display of violence by an ultranationalist group since World War II. He thinks that the group may well grow and become more active as a result of the widespread publicity given the incident. Office: Ambassador urp y reports that the group w e at- Foreign Ultranationalist Japanese create incident in Comment: The peace treaty, rearmament and the anti- Communns -aTmosphere in Japan have given impetus to the growth of rightist; societies. While their common theme is anti;-; Communism, a number of them have adopted policies of anti- foreignism and neutrality. 25X1 8 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved FohRelease 2004/12/16 : CIA-RDP79T01I 46 01300010001-7 SECRET 25X1 25X1 16. Nationalization of China's private banks expected in 1953: e communists in China have begun the a eov auks under the guise of "amalgamation." By mid-1953 or earlier, it is ex- pected that all banks dealing in foreign exchange will be branches of the state-operated Bank of China, and all banks dealing in domestic finance will be branches of the official people's Bank. Comment: The amalgamation of private banks in China to facil ae government control has been under way for more than two years. As with other sectors of the economy, the trend in banking is toward full nationalization. Continuing reports are received of the government take- over of private firms, such as the nationalization on 1 September of China's largest private shipping company. SOUTHEAST ASIA 18, Viet Minh considered more vulnerable to political than military action: Commenting on recent reports of the Viet n s material weakness and lowering morale, the American Consul in Hanoi concludes that they must be viewed with re- serve. He believes that any weaknesses of the Viet Minh are 25X1 23 Sept 52 9 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved Foi' elease 2004/12/16 : CIA-RDP79T0114SM01300010001-7 probably compensated for by their more skillful administration and propaganda as compared with the Bao Dai Government. The Consul adds that if the Vietnam Government were able to make real progress politically, it would deal the Viet Minh a graver blow than any of which the French-Vietnamese military forces are capable. 25X1 19. Karens in Burma reported seeking alliance with former Japanese puppe : Karen insurgents have commence negotiating an alliance wi Dr. Ba Maw, head of the Burmese Government during the Japanese occupation, 25X1 Ba Maw is said to have encouragea to form an a ance with the Chinese Nationalists in north- east Burma and to cooperate temporarily with the Burmese Communists. In return for assuming overt political action in behalf of the Karens, Ba Maw asked to be given access the ores and timbers now in Karen-controlled areas. Comment: Ba Maw, who is one of Burma's shrewdest politi- ciansery has been a leading spokesman Of pro-Communist elements which have been calling for government action to expel the Chinese Nationalists. The fact that the Karens were singled out for especially severe treatment by Ba Maw's puppet government would appear to preclude their turning to him now. 20. Insurgents reported uniting in Burma: Representatives of Burma's two Communist par es an We -insurgent, pro- Communist PVO have been meeting in west central Burma and have agreed to form an alliance, according to press reports reach- ing Rangoon. While the command functions of each group have not yet been resolved, all groups have promised to contribute 1500 troops toward the establishment of a common striking force. The American Embassy in Rangoon comments that the Burma War Office has denied these reports, but adds that other un- confirmed information indicates that the insurgents had met and that they desire to coordinate their efforts. 25X1 25X1 10 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 Approved Foi elease 2004/12/16 : CIA-RDP79T01I 4001300010001-7 Comment: Problems of leadership and spheres of influence have eeu a leading causes of friction among Burman insur- gents. As they have been increasingly on the defensive, how- ever, there has been a greater inducement for composing their differences. NEAR EAST - AFRICA 21. Iranian Chief of Staff restricts travel of foreign attaches: Iranian Chlef of Staff Baharmast has denied every request of the American and British Military Attaches during the past two weeks for permission to travel outside Tehran. Although the restrictions ostensibly apply to all military attaches, the American Army Attache notes that other foreign attaches seldom leave the capital. contacting tribes along the Iranian frontiers. directed primarily against the British to prevent them from Ambassador Henderson believes that the restrictions are Comment: Baharmast recently ordered the General Staff not t- scuss army reorganization plans with the US Army Mission, and the new restrictions apparently represent another step in Baharmast's anti-foreign policy. 22. Egypt may consider British-drafted constitution on Sudan: Egypt may accept e r s - ra a cons i u on on 'tie Sudan as a basis for discussion, but may first suggest amendments, such as postponement of the elections scheduled for November, according to Lieutenant Colonel Sabri, Egyptian senior staff officer in the Sudan. Sabri stated that Egypt's chief objection to the Sudan constitution is that it gives the Governor General too much power. Sabri's position suggests that Egypt's military regime has adopted a more reasonable view on the Sudan issue than previous Cairo governments. Sabri's advice may carry some weight in Egyptian official circles, sipne he is a brother of one gf General Nagib's close advisers. SECRET 11 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 25X1 25X1 Approved FoIbIease 2004/12/16 : CIA-RDP79T01146M01300010001-7 SECRET Comment: If Sabri's advice is followed, it would represent a-major change in Egyptian policy on the Sudan question. There is no clear indication, however, that General Nagib is prepared to face the repercussions within Egypt that such a settlement might cause. 23. Turkish reaction to British proposal on MEDO: The Turk- ish Foreign n s ry states that agrees in pr nciple with the British proposal on the Middle East Defense Organization, but believes that the Arab States should be invited to sit in on any discussions preceding its organization. Arab partici- pation need not imply a commitment on membership, and such an invitation should refute possible claims of the Arabs that the sponsoring powers were proceeding without consulting them. The Turkish Foreign Ministry observes that the present Egyptian Government appears more favorably inclined toward MEDO than its predecessors. Ankara proposes more military aid to Turkey and evqntual establishment of MEDO headquarters in southern Turkey. 25X1 Comment: The Turks do not favor proceeding with defense plann nI g? efore the obligations of each member of MEDO are clarified. Egypt's position is still unclear, but General Nagib's desire for Western arms may make him consider a more moderate course than his predecessors. Ankara's desire to have MEDO headquarters in Turkey is presumably motivated by considerations of prestige. 24. Special security measures imposed in Tangier: The insist- ent rumors a a genera strike in . orocco wou d occur when the French reply to the Sultan's demands for more autonomy was de- livered have caused extraordinary security measures to be taken in Tangier. Nationalists in Tangier have not yet been advised of the contents of the reply, but declare that they will maintain their traditional passivity and hope that oun nationalist "hot bloods" can be kept under control. L_ I 25X1 Comment: French officials in Morocco, as well as in the Interns ,onal Zone of Tangier, have expressed their fears that France's reply to the Sultan's memorandum of last March would incite disorders. The note was finally delivered on 17 September, but its contents have not yet been made public. SECRET 12 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved For" (ease 2004/12/16 : CIA-RDP79T01I 4$ 01300010001-7 SECRET Tangier officials are particularly apprehensive because of the riots which broke out on 30 March. 25. Arab League finances UN trip of Tunisian and. Moroccan the to the Iraq Foreign Minister n , g national s s ccor Arab League will finance sending a Tunisian delegation to the UN General Assembly meeting. Such a delegation would include the former Tunisian Minister of Justice, Salah ben Youssef, and probably Habib Bourghiba, head of the nationalist Neo-Destour Party, and the former Minister of Social Affairs, Mohamed Badrao In addition to requests for American visas for the Tu- nisian nationalists, the Arab League has requested one for nationalist Mohamed Hassan al-Wazzani. Comment: The French Government has already strongly protested e issuance of American visas to nationalists, particularly Ben Youssef and Badra. It is highly unlikely at present that Bourghiba could reach New York because he has been in forced residence since last January. Because of Wazzani's uncertain loyalties, the French presumably would have fewer objections to his appearing at UN headquarters. SECRET 13 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 25X1 Approved Fo?'Welease 2004/12/16 : CIA-RDP79T0114C&O01300010001-7 SECRET 25X1 Paris Embassy com1nents'l on French Communist Party crisis: The American massy in Paris states that the current cr s s in the French Communist Party, the most serious since 1939, is the compelling reason for Thorez's imminent retgrn from the Soviet Union. The Communists are facing a "delicate situation" which could develop into a national deviationist movement along Titoist lines, If Ai'idre Marty and Charles Tillon, the purged leaders who represent the militant elements and paramilitary cadres, further delay a "full public confession," grave reper- cussions may be expected. 28. Italy promises to increase defense expenditures after elections: a an Treasury minister MILK has assure e American Ambassador that a third extraordinary $400,000,000 defense appropriation will be sought from parliament immediately after the elections next spring. Although this money ostensi- bly would be expended in fiscal years 1955 and 1956, it will be available for defense orders in 1953 following parliamentary approval. Pella intimated that he might even overlook defense contracting against these funds prior to parliamentary approval. Pella is also trying to persuade the Defense Ministry to increase from $64,000;000 to $128,000,000 the expenditures pro- grammed for major military items out of the second $400,000,000 25X1 25X1 25X1 14 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79TO1146AO01300010001-7 Approved FoTCelease 2004/12/16 : CIA-RDP79T011401300010001-7 extraordinary appropriation passed in June. 25X1 Comment: American officials in Rome have previously reported f`at although Italy's defense expenditures for 1952 will meet NATO goals, targets for fiscal years 1953 and 1954 are unlikely to be met. Although this new appropriation might improve the level of expenditures in fiscal year 1954, it may come too late to make much difference in fiscal year 1953. 29, Argentina tries to call meeting to form Latin American labor organza ono The caraguan Foreign n s ry has been informed by its massy in Buenos Aires that the purpose of the current tour of Latin America by Argentine labor repre- sentatives is to organize a congress of the Committee for Syndical Unity to meet in Mexico City to form an Argentine- backed Latin American labor organization. When the meeting would be held is not known. Comment: The Latin American Committee for Syndical Unity was formet an Argentine-subsidized conference in Asuncion, Paraguay, last February. At that time Argentina tried to organize a strictly Latin American labor confederation, but could gain only enough support for the committee. In view of the vigorous propaganda activities of its Labor Attaches throughout Latin America, Argentina may be- lieve that now there is sufficient support for a confederation including some, though not the'most important, unions from each Latin American country, 30. Bolivian Minister of Mines opposes "confiscation" of tin mines: Minister o nes and Petroleum uan ecin s a e on l September that he rejects immediate confiscation of Bolivia's tin mines and railways, as proposed by the Bolivian Labor Central (COB), because this "would place Bolivia at the service of Russia" Since Lechin heads the COB, his statement has been interpreted as his separation from the Communist or extremist leaders of the labor organization. 23 Sept 52 25X1 25X1 Approved For Release 2004/12/16 : CIA-RDP79TO1 146AO01 300010001-7 Approved For $el'ease 2004/12/16 : CIA-RDP79T01146-A01300010001-7 Lechin said that the majority of COB members belong to the Nationalist Revolutionary Movement and support a policy of nationalization without class struggle. He also said that they favor reorganization rather than suppression of the army. Comment: These statements are similar to those of President Paz anTmay indicate that for the present Lechin finds it more advantageous to cooperate with Paz. In the past Lechin has encouraged the COB's extremist demands and has threatened to call out labor to oust the President if nationalization were delayed. 16 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved For Redease 2004/12/16 : CIA-RDP79T011461300010001-7 TOP SECRET 25X1 23 September 1952 CIA No., 49817 Copy No. 38 TOP SECRET SUPPLEMENT TO THE CURRENT INTELLIGENCE DIGEST 25X1 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 Approved For Relea e1A-RE) 1146A001300010001-7 Approved ForRelease 2004/12/16 : CIA-RDP79T0114' 001300010001-7 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. TOP SECRET 23 Sept 52 25X1 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved F release 2004/12/16 : CIA-RDP79T011`A001300010001-7 TOP SECRET NEAR EAST - AFRICA n ul- 2. Iranian official 'believes nl~oeradossadeq soo dlciaerrep y timatum~o rlt s rime o e John ng o-American approach for a solution of the oil dispute will neither threaten severance of diplomaticshelations with Great Britain nor set a time limit according to the vice president of the Iranian Senate. Ambassador Henderson also reports that Iranians Mossadeq are hoping that his reply will persuade 25X1 d the United States to chan a their policies toward Iran. Comment: Awareness of nationalist ultimatum? sentiment Judging fromrhismpast induce~liossadeq to deliver an out his threats. There is actions, however, he may not carry no evidence that he is ready to give up attempts at an agreement. 3. Mossadeq retains position despite Kashani challenges Mossa- deq is s e s rongest po It ca ea er in. ran, according to Ambassador Henderson. Kashani, however, has a more effec- tive political organization and Mossadeq's recognitionmof his growing prestige is indicated by the Kashani after the latter thatMMossadeThhasmcalledoon. irstrtimefrom first states that this is the 25X1 anyone except the Shah in the last year. Comment: Kashani's political strength has increased ma- teria y slnce mid-July, when Mossadeq returned to power. There is no evidence, however, that he is strong enough to displace the Prime Minister. WESTERN EUROPE rove rapid build-up of illing to app Italy believed unw 4. a Amer can Embassy in Rome states that NATO ml 1 ary ases: the a lan overn.ment will certainly be unwilling to approve a rapid acceleration of The government fears t such approval. The tional elections would be jeopardized by r the Embassy believes that such ofnalienatingithewPeoPleSrofeWestern Soviet cold-war objective TOP SECRET 23 Sept 52 25X1 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 Approved FQ,elease 2004/12/16 : CIA-RDP79T011A001300010001-7 TOP SECRET Europe from the United States. Comment: The Italians have previously indicated that a programme such scope would require parliamentary ratification. LATIN AMERICA wi ref alu en co ianFore gnMiniser 5. Brazilian ForeignuMurasion? Braz to attend anez s na g 1-+ that G! -sV tion is?n eves a on ourstoattend thelbanezinaugura fuse a Chilean invitation together with the presidents of Argentina, Bolivia, and certain Uruguay or Para- Latin American countries, not including guay. guay. and the high-ranking mili- tr i y s ign Min The Brazilian Foretary show some nervousness concerning Ibanez's plans. Thely increasing to any Foreign Minister stated that Brazil is becoming a nti isolated because nd does anot ll ties between Brazil land the Uni i US combination, a s should be strengthened. n Comment: Brazil's attitude toward then Childannin nation will be~ movated by the desire not only the United States but also to take that action most likely to weaken Ibanez's Argentine connections. TOP SECRET 3 23 Sept 52 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 25X1 25X1 Approved For Release 2004/12/16 : CIA-RDP79T01146A001300010001-7 TOP SECRET UNCLASSIFIED when blank-TOP SECRET when attached to Top Secret Document-Automatically downgraded or declassi- fied when filled in form is detached from controlled document. . CONTROL AND COVER SHEET FOR TOP SECRET DOCUMENT DOCUMENT DESCRIPTION REGISTRY :OURCE CIA CONTROL NO. :OC. NO. -- DATE DOCUMENT RECEIVED SOC. DATE C -------_------- 0 P Y NO. LOGGED BY .UMBER OF PAGES -UMBER OF ATTACHMENTS ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intelligence Agency Dr classified Top Secret within the CIA and will remain attached to the document until such time as it is downgraded, destroyed, or transmitted outside of CIA. Access to Top Secret matter is limited to Top Secret Control personnel and those individuals whose official 3uties relate to the matter. Top Secret Control Officers who receive and/or release the attached Top Secret material will sign this form Dnd indicate period of custody in the left-hand columns provided. Each individual who sees the Top Secret document will sign and indicate the date of handling in the right-hand columns. EFERRED TO RECEIVED RELEASED SEEN BY OFFICE SIGNATURE DATE TIME DATE TIME SIGNATURE OFFICE/DIV. DATE NOTICE OF DETACIIMENT: When this form and transmitted to Central Top Secret Contro is detached from Top Secret material it shall be completed in the appropriate spaces below l for record. DOWNGRADED DESTROYED- DISPATCHED (OUTSIDE CIA) -70 BY (Signature) TO BY (Signature) WITNESSED BY (Signature) BY (Signature) OFFICE J APProved 9itfRease 2004/12/16 :DO1A RDP79 8~F1' bA001300010001 FATE S E C R E T ?"t' 26 uec PREVlous eoITIONS. TOP SECRET (40)

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[3] https://www.cia.gov/readingroom/docs/CIA-RDP79T01146A001300010001-7.pdf