CURRENT INTELLIGENCE BULLETIN - 1952/06/25

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02684310
• 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 25, 1952

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SECURIVf1NFORMATION
25 June 1952
Copy No. 3
CURRENT INTELLIGENCE BULLETIN
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NEXT "REVIEW DATE:
AUTH: HR 70-2
DATE; /14/04611. REVIEWER. , .3.5(c)
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
(page 3).
Indian firm repeats offer of lubricating oil to China (page 3).
SOUTH ASIA
3. Pakistan requests American grant of 30,000,000 dollars (page 4).
NEAR EAST-AFRICA
4. Italian interests negotiate for Iranian oil (page 4).
WESTERN EUROPE
5. Italian Ambassador recommends tactics on Trieste negotiations
(page 5).
6. East Germans reported purchasing steel rails in France (page 5).
7. West German action on Bonn-Paris treaties is postponed (page 6).
8. French apparently not delaying Saar Convention revision (page 6).
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FAR EAST
1.
2. Indian firm repeats offer of lubricating oil to China:
On 12 May a firm in Calcutta offered the
Chinese Communist official trade agency
in Kunming 300,000 gallons of lubricating
oil.
Comment: Indian offers of this lubricating
oil to the Chinese Communists were first noted in 1951. However,
American consular officials were assured at the time that the Indian
Government was "taking steps to put off shipment."
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SOUTH ASIA
3. Pakistan requests American grant of 30,000,000 dollars:
Prime Minister Nazimuddin has requested
the United States to grant Pakistan approxi-
mately 30,000, 000 dollars to cover the pur-
chase of 300,000 tons of wheat, which,he
says, Pakistan does not have the dollar exchange to buy. If neither
a grant nor a loan to be repaid in kind can be extended, the Prime
Minister desires a loan to be repaid from dollar credits over the next
ten years.
Nazimuddin also stated that there would be
serious unrest if no wheat loan were forthcoming. In view of his own
critical position, he requested that, by the first of July, the United
States give some assurance of its intention to help.
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Comment: When Pakistan gained independence
in 1947, it anticipated a regular annual surplus of grain. In 1948 natural
disasters resulted in a 100,000 ton deficit, and 1952 will apparently be
another deficit year,
Because of its growing population and its slow
economic and agricultural improvement, Pakistan may develop a chronic
food deficit.
NEAR EAST - AFRICA
4. Italian interests negotiate for Iranian oil:
The Societa Commerciale Commissionaria,
an Italian agency interested in selling Iranian
oil in Italy, informed the Iranian Government
that negotiations for the
Isale of oil through Italian distributors had
been broken off, however, that another Italian
firm with refineries in Genoa, Milan and Rome was still willing to
negotiate for crude oil.
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WESTERN EUROPE
5. Italian Ambassador recommends tactics on Trieste negotiations:
The Italian Ambassador in London recom-
mended to Premier de Gasperi on 11 June
that Italo- Yugoslav negotiations regarding
Trieste be delayed until "the London agree-
ment has been substantially put into force."
The Ambassador warned that Italy must
exercise extreme caution to prevent the negotiations proving fruit-
less. He promised to send detailed proposals on ways of influencing
the British and the Americans" in order to ensure that negotiations
with Yugoslavia are prepared in the most satisfactory manner possible.
Comment: The Italian Government on
23 June undertook to fulfill the London agreement on Trieste by nomi-
nating Italian officials to serve as Political Adviser and Senior Director
for Trieste.
6. East Germans reported purchasing steel rails in France:
West German officials have informed
American authorities that representatives
of the East German Government are ready
to sign a contract with the Schneider-
Creusot Company for 80,000 tons of steel rails. Payment would be
in dollars to a Lausanne bank.
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HICOG believes that the reported transaction
has serious implications for interzonal trade policy, as well as for
Allied-West German relations.
Comment: The West Germans undoubtedly
consider that the reported sale reflects discrimination against them in
East-West trade matters, in view of the strict quantitative limitations
on interzonal trade.
Although steel rails are on the American
embargo lists, they are not included on the COCOM international lists.
France has so far agreed to prohibit shipments of steel rails only to
Communist China.
7. West German action on Bonn-Paris treaties is postponed:
American officials in Bonn now believe
that West German approval of the Bonn-
Paris treaties will not occur before the
end of September. Chancellor Adenauer
has abandoned plans for ratification during the present parliamentary
session, but government leaders have agreed to act on the bills
immediately after Parliament reconvenes on 4 September.
8. French apparently not delaying Saar Convention tevision:
The American Embassy in Paris reports
that the French Foreign Office apparently
plans to proceed with its efforts to liberal-
ize the 1950 French-Saar Conventions with-
out waiting until onn and Paris have ratified the European Defense
Community treaty.
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The Embassy believes that French-Saar
discussions are still in a preliminary stage, and suggests that a joint
American-British demarche cautioning France to wait until after EDC
treaty ratification may be desirable.
Comment: Recent French efforts toward
liberalization of the French-Saar conventions have probably been
aimed at creating goodwill toward France in the Saar prior to the
Landtag elections this falL
These efforts may provoke a sharp reaction
in Germany, where there is a widespread conviction that the status
of the Saar should not be modified except by a German-French�Saar
accord.
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