CURRENT INTELLIGENCE BULLETIN - 1952/06/05

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02016348
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: May 24, 2019
• Document Release Date: May 30, 2019
• Publication Date: June 5, 1952

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SECURJPY1NFORMATION
5 June 1952
Copy No.
CURRENT INTELLIGENCE BULLETIN
Office of Current Intelligence
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CENTRAL INTELLIGENCE AGENCY
TOP SECRET
SECURITY IKFORMATION
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SUMMARY
SOVIET UNION
I. Soviet budget takes greater share of turnover tax (page 3).
FAR EAST
2. Rhee threatens mass demonstrations in Pusan (page 3).
3. Captured document suggests change in tactics of Malayan
Communists (page 4).
4,
NEAR EAST - AFRICA
5. Iranian financial situation is critical (page 5).
6. Britain satisfied with current Egyptian-Sudanese talks (page 5).
WESTERN EUROPE
7. Communist scare campaign in West Germany boomerangs
(page 6).
8. Comment on possible changes in leadership of the West German
Social Democratic Party (page 6).
* * * *
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3.3(h)(2)
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SOVIET UNION
1. Soviet budget takes greater share of turnover tax:
4.1 percent of the turnover tax collected in the
Russian Soviet Federated Socialist Republic
during 1952 would be retained there.
Comment: This represents a reduction over
1950 of 30 percent in the share of revenue from this source to be kept
by that Union Republic.
The Republic's budget is expended on light
industry, education, health and housing, whereas the USSR budget,
which takes most of the revenue, is used principally for maintaining
and expanding heavy industry.
3.3(h)(2)
the Union Republic 3.3(h)(2)
will contribute in 1952 a considerably larger share toward the expansion
of heavy industry than in 1950.
FAR EAST
2. Rhee threatens mass demonstrations in Pusan:
American Charge Lightner reports that at the 3.3(h)(2)
Cabinet meeting on 3 June, President Rhee
stated "thousands, perhaps millions" of
people are streaming towards Pusan to de-
mand dissolution of the National Assembly. Adding that there would
be terrible disorders in "two or three days" and Assemblymen's lives
would not be worth much, the President directed Home Minister Li
Bum- suk not to prevent the flow of these people into Pusan.
3
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Comment: Strong police action was required
on 19 and 23 May when Rhee supporters staged demonstrations before
the National Assembly and threatened Assemblymen. A report from
another source suggests that a demonstration is being planned for 7 June.
3. Captured document suggests change in tactics of Malayan Communists:
4.
has told the
American Consul in Penang that a recently
captured Communist document admits the
failure of armed resistance in Malaya and
suggests abandonment of terrorism for "underground penetration."
The document includes a statement that the
terrorists have been badly hurt by the British program of resettling
heavy concentrations of Chinese and an acknowledgement of failure to
obtain mass, support. _
Comment: Recent developments in the
Communist movements or other Asian countries provide fragmentary
indications of a possible tactical shift away from emphasis on armed
struggle, the main form of action in Asia since World War IL
Although the Communist military program
for the overthrow of the Malayan Government has not progressed ac-
cording to plan, 4,000 terrorists have tied down 130,000 troops and
police for the past four years.
TO
NEAR EAST - AFRICA
RET
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5. Iranian financial situation is critical:
Acting Governor Nasser of the Iranian
National Bank has told an American Embassy
official that the government has sufficient
funds to pay its employees for May,but that
he did not know what the government could do for June.
Comment: Nasser's earlier refusal to lend
the government funds to help it meet its financial obligations has so
Infuriated the Prime Minister that he is reportedly determined to re-
move Nasser. The fact that Mossadeq is considering such a move,
which would have serious political consequences for him, highlights
the critical financial situation of the government
6. Britain satisfied with current Egyptian-Sudanese talks:
A British Embassy spokesman in Cairo told
a press conference that Britain was satisfied
with the talks now in progress between the
Egyptians and the Sudanese delegates of the
anti-Egyptian Independence Party. He said that Britain had more than
once expressed its willingness to recognize immediately Egyptian-
Sudanese union under the Egyptian crown, provided that this was ap-
proved by the Sudanese.
Comment: Though the Egyptian Foreign
Minister and the Sudanese delegation leader have also expressed satis-
faction with the talks, final solution of the Sudan issue is still not in
sight
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The Sudanese delegation now in Egypt cannot
commit either the leader of the Independence Party in the Sudan or the
Sudanese people as a whole to any course of action agreed upon by it.
WESTERN EUROPE
7. Communist scare campaign in West Germany boomerangs:
Is wi esprea
the Soviet Union.,
3.3(h)(2)
Recent public opinion surveys in West Germany
show that Communist scare tactics have so far
only served to stiffen popular opposition to
Soviet policies. Furthermore the conviction
rmness is the only effective method of dealing with
American officials also observe that the Soviet
pressure campaign is having the effect of speeding the ratification pro-
cess of the contractual agreement and the European Defense Treaty..
Those survey respondents who had previously desired a delay in the
ratification of the treaties are now beginning to favor early parlia-
mentary action on them.
8. Comment on possible changes in leadership of the West German Social
Democratic Party:
Kurt Schumacher, chief of the Social Demo-
cratic Party,
If he loses the leadership of the party,
moderates will probably either assume control or succeed in softening
the party's vehement anti-Adenauer stand.
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Such a development would be followed in West
Germany by greater support for rearmament and stronger opposition to
Soviet unity moves. Schumacher's removal would enhance the possi-
bility of a Christian Democrat-Social Democrat coalition government
for 1953, a government free of right-wing nationalists and more capa-
ble of dealing with potentially dangerous internal social conditions.
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