CURRENT INTELLIGENCE BULLETIN - 1951/10/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02008381
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: October 16, 1951

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16 October 1951
Copy No.
CURRENT INTELLIGENCE BULLETIN
47
DOCUMENT NO.
NO CHANGE IN CLASS. Ve
1 DECLASSIFIED
CLASS. CHANGED TO: IS C
NEXT REVIEW DATE:
AVM; WI 0-
REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
1. Communist disruption of Australian ihdustry anticipated (page 3).
NEAR EAST
4. Comment on Iranian Prime Minister's statements before the UN
3.5(c)
3.3(h)(2)
3.3(h)(2)
EASTERN EUROPE
. Probable Yugoslav position in General Assem age
WESTERN EUROPE
9. French seek US support for their position in North Africa (page 7).
1n Franc: dpvaluation considered likely despite French denials (page 8).
3.3(h)(2)
3.3(h)(2)
LATIN AMERICA
12. Venezuela calm following reported revolt (page 9).
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FAR EAST
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1. Communist disruption of Australian industry anticipated: 3.3(h)(2)
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Because of the Australian Government's current
preoccupation with economic problems and its
desire to vindicate its recently rejected view that
he Communist Party should be outlawed, the
ommunists will be allowed to cause "real
damage" to the economy before drastic countermeasures are taken, in the
opinion of the US Embassy in Canberra.
Comment: The Communist-dominated unions
deliberately maintained quiet on the industrial front during the campaigning
prior to the anti-Communist referendum. This strategy probably played a
part in the referendum's defeat.
In 1950 and early 1951, the Communists developed
the "rolling strike" technique, which was admirably suited to their position in
control of a number of key unions with an anti-Communist membership. This
technique consisted of strategic, coordinated wild-cat strikes, stop-work
meetings, and refusal to work overtime. It resulted in delays at Australian
ports, reduced coal and metals production, and interrupted inland transport,
all of which seriously hindered defense production.
NEAR EAST
3.3(h)(2)
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4. Comment on Iranian Prime Minister's statements before the UN Security
Council:
Prime Minister Mossadeq's strong statements
before the Security Council are consistent with his well-known attitude. His
remarks were undoubtedly dictated in part by political considerations and
the intense nationalistic sentiment at home. They do not necessarily rule out
future, private efforts aimed at negotiated settlement.
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EASTERN EUROPE
33(h)(2)
Probable Yugoslav position in General Assembly:
3.3(h)(2)
In outlining tentative Yugoslav attitudes in the
forthcoming General Assembly session, a Yugo-
slav Foreign Office official stated that Yugoslavia
would be willing to consider additional measures
Korea if an armistice had not been concluded.
He explained that Yugoslavia has not decided
upon whom it will support as its successor in the UN Security Council, but
that it had not ruled out Greece as a possibility. He declared that the Yugo-
slav Government is_strongly opposed to the election of a Cominform state to
the Security Council vacancy.
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Comment: Yugoslavia supported the most
recent UN action against China,, the embargo resolution adopted last May.
No additional measures against China have been considered by the UN since
the beginning of the armistice negotiations in july.
Yugoslav UN delegate Bebler predicted to US
officials in July that Czechoslovakia would be the Soviet candidate for the
Yugoslav Security Council seat, but that Yugoslavia would not vote for that
country.
WESTERN EUROPE
9. French seek US sup ort for their position in North Africa:
3.3(h)(2)
The French, w,ho have been pressing for an ex-
change of notes with the US on "agreed principles
and policies" toward French North Africa, are
afraid that the Arab nationalists would use "what
can e n erpre e as any cleavage" among the three major powers to increase
unrealistically their demands and thus upset Western defense li.nes. Only a
common fronp. among the UK, France and the US can continue to keep this
area within Western influence and allow "the orderly progress toward self-
government, the heart of French policy." Foreign Minister Schuman has in-
formed the US Ambassador that, in view of the "extremely difficult foreign
debates" before Parliament in early November, he needs some written
assurances to point out the "solidarity" between France and the US on North
Africa.
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Schuman was advised that the US "was not sure"
it could support the French on the Moroccan question. The US Ambassador
comments that an exchange of notes and support of the French could result
In a "solidly agreed" three-power "position and policy" with regard to French
North Africa.
Comment: The Egyptian introduction of the
Moroccan question into the UN General Assembly agenda has sharpened
French anxiety concerning the US position.
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10. Franc devaluation considered likely despite French denials:
3.3(h)(2)
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Although the French Finance Ministry has ap-
parently decided not to consider devaluation of the
franc at this time, the US Embassy and ECA
Mission in Paris warn that the developing financial
crisis may orce t e rench to consider such action soon. The French
Government will probably defer action until after the British elections.
Devaluation itself will not check the deterioration
of the franc inasmuch as "all" economic trends in France are unfavorable. The
Embassy feels that "little is being done at the present time to hold the situation
together. Because of their long preoccupation with electioneering, French
politicians have tended to underestimate their country's economic difficulties.
Comment: The Paris black market rate for the
dollar, which is a good indicator of the degree to which international financial
circles and the French nation are expecting and even causing a devaluation of
the franc, hovered for several weeks near 400 francs, but last week jumped to
440. The legal rate is 350 francs to the dollar.
In an effort to bolster confidence in the franc, the
government has just taken several remedial steps such as increasing discount
rates. In addition, liberalized regulations covering the movement of gold are
reportedly under study in connection with a plan to launch a large-scale govern-
ment loan by the end of the year. The growing weakness of the regime, how-
ever, will prevent the government from taking adequate measures to check
inflation.
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LATIN AMERICA
12. Venezuela calm following reported revolt:
3.3(h)(2)
The Venezuelan Government has announced that
it has frustrated an armed plot involving attempts
to assassinate civil and military authorities, to
cause revolts in the armed forces, and to seize
public services and arms depots. The Minister
of Interior said that the plot was directed by a
special committee of the outlawed Democratic
Action Party assisted by members of the illegal
Communist Party. The oilfields are quiet, but there are rumors that trouble
there is scheduled for some time before 18 October.
Comment: Political unrest in Venezuela has been
growing since midsummer, Wen preparations for next spring's election of a
constituent assembly began to get under way. Both right-wing and left-wing
groups have been reported dissatisfied with the Junta's management of the
political situation.
The government can be expected to control any
further disturbances connected with the reported revolt, including those alleg-
edly scheduled for the oilfields on 18 October, the anniversary of Democratic
Action's rise to power six years ago.
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