CURRENT INTELLIGENCE BULLETIN - 1952/01/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02623663
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: May 24, 2019
• Document Release Date: May 30, 2019
• Publication Date: January 12, 1952

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INFORMATION
12 January 1952
Copy No.
4.7
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
1 DECLASSIFIED
NEXT IIEVIEW DATE: -moor
CLASS. CHANGED TO:
DATE/AUTH� fl
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SE INFORMATION
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SUMMARY
GENERAL
1. Secretary General Lie suggests only UN could solve Iranian and
Egyptian problems (page 3).
2. Britain and United States protest Italian munitions shipments to
nop- NA TO countries (page 3).
FAR EAST
3. North Koreans plan to obtain semi-military goods from East
Germany in 1952 (page 4).
4. Threatening Chinese moves on Indochina border reported (page 4).
5. Soviet engineers assist in military construction near Indochina
border (page 5).
6. Chinese Nationalist force in Burma reported preparing for new
operations in Yunnan (page 7).
NEAR EAST - AFRICA
7. Mossadeq unyielding on US military aid (page 8).
8. Britain requesting assistance to keep Suez Canal operating (page 8).
WESTERN EUROPE
9. Communists urge formation of all-German election committee
(page 9).
10. French President attempts to limit government crisis (page 10).
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GENERAL
1. Secretary General Lie suggests only UN could solve Iranian and Egyptian
problems:
3.5(c)
Secretary General Lie believes that the Iranian 3.3(h)(2)
and Egyptian problems can only be solved through
the United Nations. The Secretary General,
expressing himself strongly on the matter to
General Eisenhower, stated that the Egyptian Foreign Minister and the
Secretary General of the Arab League had told him privately thatthey would be
willing to develop adequate Middle East defense arrangements under UN aegis.
Lie favored working toward such a solution but
said that Britain and America were opposed. He was vague as to what sort
of an arrangement could be worked out but insisted that "the USSR would of
course not be permitted to participate in such UN defense arrangements."
Comment: Referring the Iranian and Egyptian
disputes to the UN would permit Iran and Egypt to use this agency as a sound-
ing board for publicizing their grie vances. The USSR would also be given
increased opportunity for meddling in matters of vital importance to the West.
2. Britain and United States protest Italian munitions shipments to non-NATO
countries:
The British Embassy in Rome has informed 3.3(h)(2)
American officials of its protests to the Italian
Government concerning negotiations for small
arms and ammunition between Italian munitions
makers and Egyptian representatives.
The Italian Government has been informed by the
American Ambassador of the adverse effect which the export of arms and
munitions to non-NATO countries would have on the US Congressional atti-
tude toward future defense aid, and of the importance of conserving Italy's
munition production potential for other NATO countries.
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Comment: Italy has hitherto complied with
American requests to stop shipments of armaments considered contrary
to US interests. The Italians now point out, however, that until their army
or NATO countries can absorb such production, some arms must be shipped
to non-NATO countries in order to keep Italian factories in operation, to
avoid unemployment, and to prevent the deterioration of equipment.
FAR EAST
. North Koreans plan to obtain semi-military goods from East Germany in1952:
the Korean 3.3(h)(2)
Ambassador "requests prompt decision" on a
1952 schedule of imports from the German
Democratic Republic with a total value of 5. 5
million US dollars. The list includes "various
chemicals," medical instruments, medicines, "poisonous chemicals, "
communication and photographic equipment, and machine tools. 3.3(h)(2)
Comment: This represents an expansion of
the Korean trade pattern in that the USSR, in addition to being the prime
supplier of military materials to North Korea, has since 1945 accounted
for the great bulk of that area's foreign import requirements. While none
of the material listed can be directly labeled as military in nature, the
aggregate amount would probably contribute more to North Korean military
potential than the civilian economy.
This order is part of the Russian effort to
count German opinion by furthering East German access to Far Eastern
market,
4. Threatening Chinese moves on Indochina border reported:
who recently arrived from, 3.3(h)(2)
the Indochinese port of Moncay, the only border
post still in French possession, told the American
TOI>) SE 1�3.ET
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Vice Consul in Hanoi that mass meetings denouncing French imperialism
and urging the liberation of Vietnam have been held recently by the Chinese
Communists in the Chinese border town of Tunghsing, directly opposite
Moncay. (SEE MAP PAGE 6).
Later, the French Army's China specialist
added that he had just learned of the presence of 1, 530% Chinese Communist
regulars in and around Tunghsing, while other regulars have been arriving
in unknown numbers at a point 30 miles north of the principal pass into
Indochina. 3.3(h)(2)
while there were no Chinese troops in Tunghsing ten days ago,
"now the town streets are full of mandarin-speaking, North Chinese regulars"
who have concealed their military subordination. These troops allegedly in-
clude Korean veterans.
5. Soviet engineers assist in military construction near Indochina border: 3.3(h)(2)
which toured South
China \ reports that Soviet
engineers acted as supervisors in the con-
struction of a small-arms factory at Kunming
in southwest China, the delegates visited
the factory and observed an unusually large labor force there.
The delegation also reported that the Kunming
airfield has been enlarged knd that the Russians have assisted in a general
overhaul of the Yunnan railroad system, which now has improved facilities
for the dispatch of men and goods to the Indochina border (SEE MAP PAGE 6).
Comment: The presence of several hundred
Russian advisers in Yunnan was reported early in 1951, On of their tasks is
said to have been assisting in the expansion of small arms production at the
Kunming arsenal, the largest in the Indochina border area.
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Only part of this line is at present operable but it is
being used in conjunction with motor transport supply to the Viet Minh
forces. Soviet assistance will hasten reestablishment of this rail link to
Indochina and provide the Chinese with two rail arteries for such shipments
to the Viet Minh armies. The other line, from Nanning to the Indochina
border, was completed only three months ago.
6. Chinese Nationalist force in Burma reported preparing for new operations
in Yunnan:
The US Army Attache in Rangoon has been in-
formed that Chinese Nationalist General Li Mt
Is preparing a new attack upon Yunnan from
Burma with a force of 12,000. The attack is to
take place some time after 27 January, ,the
Chinese New Year. Li Mi's force is said to
include several hundred Chinese Nationalist
troops recently arrived from Thailand.
3.3(h)(2)
3.3(h)(2)
The Attache reports that the �Burmese authorities
are apprehensive over this development and believe the Chinese Communist
Government is ready to serve an "ultimatum." Meanwhile, the Burmese
Foreign Minister told the US Charge that he intended to take up the question
of an appeal to the UN with the Prime Minister upon the latter's return
from a,noithern ttip.
Comment: Chinese Nationalists under Li Mi's
command in Burma have been inactive since last summer, although their
continued presence in Burma has remained a source of concern to the Bur-
mese Government.
This report coincides with Li Mi's visit to
Taipei and growing Soviet and Chinese Communist propaganda accusing the
US of assisting the Nationalists in attacks on China from Southeast Asian
bases.
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NEAR EAST - AFRICA
7. Mossadeq unyielding on US military aid:
3.3(h)(2)
Minister of Court Ala has informed the American
Ambassador to Iran that Mossadeq refuses to
discuss the question of US military aid with
anyone. Although Mossadeq is willing to accept
military aid, he wants general discussion of the subject to subside.
The Ambassador states that Mossadeq is at
present prevented by the political situation from, giving the assurances re-
quired under the Mutual Security Act in order to make Iran eligible for con-
tinued American military aid. He believes, however, that there is a
possibility that at a later time Mossadeq may be prevailed upon to make the
necessary statement.
Comment: Mossadeq's long-standing aversion to
strengthening the army at the expense of Iranian economic development, his
desire not to provoke his Soviet neighbor, and his reluctance to risk alien-
ating his nationalist supporters make it doubtful that he can be persuaded to
make the necessary statement.
8. Britain requesting assistance to keep Suez Canal operating:
3.3(h)(2)
The British Foreign Office has requested the
United States, France, and probably the Nether-
lands to furnish specialized personnel to aid in
the operation of the Suez Canal. Britain is also
considering the desirability of having American and French warships
stationed in the area as an indication of support for the British position and
for assistance if the evacuation of Europeans becomes necessary. These
questions would be discussed at a secret meeting on Malta of French,
British and American military representatives.
France considers that technical assistance
should be offered only at the request of the Suez Canal Company and only
after the Egyptian Government has failed to cooperate. They are not en-
thusiastic about stationing their ships in the area.
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Comment: The desertion of large numbers of
Egyptian laborers has made it necessary for Britain to use military
personnel to keep the Canal open. Recruitment programs for unskilled
labor are under way in East Africa, Malta, and Cyprus; but 8ritain considers
that the maritime powers using the Canal should help supply the skilled labor
which is more difficult to obtain.
The present hour-a-day strike against the Suez
Canal Company is adding to the British difficulties. As yet the Company has
not asked the Egyptian Government to implement its secret agreement under
which the Egyptian Navy would supply 180 key specialists in case of a
general strike.
WESTERN EUROPE
9. Commtinists urge formation of all-German election committee:
The East German People's Chamber has asked 3.3(h)(2)
the West German Lower House to collaborate in
naming a ten-man joint commission to discuss
the various proposals for all-German elections.
American representatives in Berlin suggest that the
East Germans, in the event of a Bonn rebuff, might
then encourage leading West German neutralists
such as Pastor Niemoeller, to participate in an
� "ail-German" commission.
The East Germans have also renewed their attack
against the recent naming of a UN Commission to investigate electoral con-
ditions in all of Germany.
Comment: Suggestion of the mixed German
commission fits in with the consistent Communist opposition to a UN Com-
mission as outside interference. Although such a commission would prob-
ably be refusedientrance into East Germany, the such,
might at the
last minute allow it to enter. The only hint of such a move is unconfirmed re-
ports that Communist security police have shipped all records pertaining to
East German elections since 1948 to an unknown destination, possibly in
order to impede efforts of any UN investigating unit.
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10. French President attempts to limit government crisis:
3.5(c)
3.3(h)(2)
President Auriol is seeking to persuade party
leaders that the current cabinet crisis must
be resolved by 21 January and has indicated
confidentially that he will do his utmost "to
cut short the ritual" of the search for a new French Government. The US
Embassy in Paris warns, however, that an early outcome is not in sight.
The Gaullists, who have given no indication of
a tendency to compromise, cannot be included in a coalition government,
in the opinion of the embassy. Furthermore, a Gaullist-led government
could only come about in an emergency atmosphere and if the crisis were
extraordinarily long.
The embassy concludes that ex-premiers
Bidault, Queuille,or Pleven now appear the most likely candidates to re-
form the middle-of-the-road coalition.
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