CURRENT INTELLIGENCE BULLETIN - 1952/12/10

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02064608
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: June 6, 2019
• Document Release Date: June 27, 2019
• Publication Date: December 10, 1952

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10 December 1952
Copy No. 57
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. 5 to)
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
1. Soviet Union buying Austrian schillings with foreign currency
(page 3).
FAR EAST
2. Chiang wants jets based,on Formosa (page 3).
NEAR EAST - AFRICA
3.
WESTERN EUROPE
4. Austrians warn of internal pressures for Orbit trade (page 5).
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GENERAL
1. Soviet Union buying Austrian schillings with foreign currency:
The US Embassy in Vienna reported on
8 December that the Russian Military
Bank had sold at unfavorable rates
approximately 620, 000 pounds sterling
and 300,000 Swiss francs to the Austrian National Bank for schillings.
The Embassy observes that this is the first foreign currency sale
by the Russian military authorities to the Austrian Bank since the
termination of hostilities in 1945.
Banking circles in Vienna have informed
the Embassy that the Soviet Union needs schillings to finance the
Soviet-sponsored People's Peace Congress scheduled to meet in
Vienna from 12 to 18 December.
The Embassy believes, however, that
the shortage of schillings in Soviet-controlled industrial enterprises
in Austria is the basic reason for this large-scale currency con-
version.
Comment: A part of this schilling
fund of approximately $1,800,000 may be used to defray the expenses
of delegates,which have been paid to an increasing extent by the
World Peace Council at earlier peace meetings. The Soviet
press has announced that 2,500 are expected to attend the forthcoming
congress.
FAR EAST
2. Chiang wants jets based on Formosa:
Chiang Kai-shek told American officials
at Taipei on 7 December that he hopes
jet fighter planes will be "actually based"
on Formosa before he is asked to con-
tribute troops to Korea. The Generalissimo, expecting a Communist
air attack on Formosa if Nationalist troops are sent to Korea, does
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not believe the US 7th Fleet could provide air defense for the island.
The American Minister at Taipei notes
the possibility of additional demands. The Generalissimo is said
to "feel keenly" the discrepancy between the Soviet buildup of the
Chinese Communist Air Force since the Korean war began and the
American delivery of "only 20-odd obsolete aircraft" to Formosa.
NEAR EAST - AFRICA
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WESTERN EUROPE
4. Austrians warn of internal pressures for Orbit trade:
Austrian officials have warned American
representatives in Vienna of the "imper-
ative economic necessity" that Austria
maintain its trade with the Soviet Orbit.
According to them, the agreements which have been under negotiation
with Poland and Czechoslovakia not only involve an exchange of goods
valued at $90,000,000, but also would provide irreplaceable coal
imports, essential employment of skilled Austrian workers, and an
alternative market for manufacturers who cannot compete in the West.
Because of the forthcoming elections,
Chancellor Figl is particularly anxious to conclude an agreement
with Czechoslovakia in order to allay the concern of business and
labor circles over the consequences of the break in negotiations with
Poland.
Comment: American officials in Vienna
have previously noted that rioift-TiaTind economic problems in Austria
were putting a severe strain on Austria's continued cooperation in
the control of strategic materials.
Polish and Czech demands for bearings
and aluminum are the primary obstacles to an agreement with these
two countries. The Austrians are also anxious to complete various
strategic metal processing agreements with Orbit countries, which
would permit Austrian plants to maintain their production.
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