CURRENT INTELLIGENCE BULLETIN - 1951/08/23

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02014439
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: August 23, 1951

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*irofi L.4 1/4.0.11..CA
23 August 1951
Copy No,
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
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tgdf
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
Ttil:�SECIfET
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SUMMARY
GENERAL
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I. Divergent approaches of Britain and continental countries are apparent
in East-West trade talks (page 3).
FAR EAST
3.3(h)(2)
2. US Embassy in Manila forecasts Huk military disintegration (page 4).
EASTERN EUROPE
. Merger of Satellite airlines under Soviet direction reported (page 5)�
WESTERN EUROPE
5. Franco may raise Spain's price for Western defense cooperation (page 6).
LATIN AMERICA
6. Netherlands West Indies Government adopts anti-strike measures
(page ,3).
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GENERAL
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L Divergent approaches of Britain and continental countries are apparent in
East-West trade talks: 3.3(h)(2)
The US observer at the Economic Commission
for Europe meeting on East-West trade, which
opened this week in Geneva, is "impressed with
the sharp differences" between the position of
the UK and that of the other Western Europeap
delegations.
The observer states that Britain sees little
value in multilateral talks, and adds: "The UK on the one hand is confident
of its ability to barter successfully with the Soviets on a bilateral basis, while
France, Denmark and other continental Western European countries are not;"
He points out that Efritain wants to obtain up to
1, 000,000 tons of coarse grain from the USSR, but is not prepared to present
before the Commission a list of the goods it would offer in exchange. France,
on the other hand, intends to comply fully with Chairman Myrdal's suggestions
for an exchange of information on both grain requirements and counter-
deliveries.
The French list of available exports to Eastern
Europe covers a rather wide range, principally construction equipment, ma-
chinery, textiles, and cargo ships of unspecified tonnage. France is deter-
mined "to go to all reasonable lengths" both to obtain more background infor-
mation on possibilities of trade with the USSR and to make it impossible for
the Soviets to blame France should the meeting fail.
The US observer considers that Western Euro-
pean collaboration on a common trade policy is "clearly desirable" in order
to avoid tile "excessive danger of Soviet blackmail. "
Comment: In recent bilateral negotiations the
Soviet Orbit has been doing some hard bargaining, with decreasing success,
to obtain Western strategic materials in exchange for needed commodities.
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� The Western European nations., faced wtth a
decline in their living standards, are eager to obtain cheap Eastern European
raw materials and foodstuffs. In addition, both France and the UK are l'intefi-
sifying their search for non-dollar markets for their industri4 products in
view of the declining opportunities to develop sales to the dollar area.
FAR EAST
US Embassy in Manila forecasts Huk military disintegration:
3.3(h)(2)
The military disintegration of the Huks as early
as November appears likely if present pressures
are continued, according to the US Embassy in
Manila. Unless a "big and victorious event in
November," promised by their leaders, is sufficiently successful to ensure
eventual victory, the Huk rank and file will cease its struggle.
The embassy adds that there is reason to believe
that the Chinese Communists are quietly organizing a stronger, more dis-
ciplined and more clandestine force with which eventually to supplant the� Huks.
Comment: Huk leadership has long been recog-
nized as Communist, but the Strength of the movement has been solidly based
on agrarian discontent. With the armed forces providing the countryside
with a certain degree of security and with a mild improvement in economic
prospects, support from this quarter becomes difficult to maintain.
The prediction of a "big event" in November is
obscure but may derive from a Huk belief that the elections at that time will
inevitably be as corrupt as those two years previously and that a resulting
popular revulsion toward the government will enable the Huks to bid f9.3(h)(2)
power.
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3.3(h)( 3.3(h)(
EASTERN EUROPE
Mer er of Satellite airlines under Soviet direction rewrted:
3.3(h)(2)
3.3(h)(2)
the state-owned airline companies of Eastern
Europe were incorporated On 20 July into the
Soviet Civil Air Fleet (Aeroflot). This decision
reportedly was taken at a conference in Moscow about 15 July. Control of
the merged Satellite airlines has been assumed by Soviet General Zigarev,
representing Marshal Zavoronkov, Chief of Aeroflot.
Comment: There is no other information on
the alleged merger. Such an amalgamation would be a logical development,
since it would partially rectify the operational and maintenance difficulties
which have beset the Satellite airlines. The elimination of duplicate routes
5
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� P RET
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� and the establishment of central repair facilities would considerably miti-
gate chronic shortages of planes, spare parts and trained personnel. The
Soviet Union already actively participates in the joint-stock companies which
control the Hungarian and Rulnanian civil airlineS.
WESTETIN EUROPE
Franc? may raise Spain's price for Western defense cooperation:
3.3(h)(2)
The US Ambassador in Madrid reports that
American press stories concerning the quid
pro quo General Franco will demand for Spain' s
contribution to Western defense pose the greatest
problem in current US-Spanish military and economic negotiations. Citing
an article in the current issue of Newsweek which quotes the Spanish Foreign
Minister to the effect that Spain will expect at least 1,200, 000, 000 dollars
in -'American assistance, the ambassador warns that such stories are in-
flating the already excessive desire S of the Spaniards for economic aid be-
yond that apparently contemplated br the US Government.
Com nt: General Franco, who has taken the
stand that the Western democracies must make reparations for years of
neglect of their potential Spanish allx, blames present chaotic economic con-
ditiond pn past US reluctance to extend Marshall aid to Spain on an equal
basis with other European countries.
LATIN AMEEICA
6. Netherlands West Indies Government adopts anti-strike measures:
3.3(h)(2)
The Netherlands West Indies Government is
taking drastic action as a result of the recent
strike at the Lago oil refinery, which is second
only to Abadan in refinery capacity.
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The
The measures include dismissal of the
Governor of Aruba because of his failure to take police action when so
ordered, deportation of twelve Surinam and British Guiana agitators sus-
pected of Communist leanings, strictest application of police measures, and
introduction of new Legislation limiting the legality of strikes.
This action is due, in part, to the complaint
of the Lago Oil and Transport Company that protection had been inadequate
and'to its demand that threats to American personnel must be stopped.
Comment: The employees of the Lago refinery,
owned indirectly by the Standard Oil Company of New Jersey, returned to
work on 18 August after a week-long strike, during which period operations
at the refinery were reduced to 65 per cent of capacity. The dispute was
settled with the aid of a government mediator and the employees obtained a
16 per cent general wage increase. The government's action will do much
toward lessening future strike threats.
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