CURRENT INTELLIGENCE BULLETIN - 1951/06/09

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02733137
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: March 18, 2019
• Document Release Date: March 28, 2019
• Publication Date: June 9, 1951

Approved for Release: 2019/03/14 CO2733137.3 
void 
9 lune 1951 
Copy No. ej - 
CURRENT INTELLIGENCE BULLETIN 
141 DOCUMENT NO. 
NO CHANGF. IN 
DECLA,S.:3!r;CD 
CLAS5. TO: TS S 
NXT E RE _ 
At ' ' HiotHH 
DATEUtt,.._,6 
Office of Current Intelligence 
CENTRAL INTELLIGENCE AGENCY 
3.5(c) 
3.5(c) 
3.5(c) 
3.5(c) 
.12 
Approved for Release: 2019/03/14 CO2733137 
Approved for Release: 20-19/03/14 CO2733137 
ITG.SECRET  
3.5(c) 
SUMMARY 
GENERAL 
1. Vessels sailing for Communist China misrepresent destination (Page 3). 
USSR 
2. Tass representative's views on proposed Foreign Ministers' Conference 
and congressional hearings (page 3). 
FAR EAST 
3. Chinese Communist Fourth Field Army units withdrawing from Korea 
(page 4). 
NEAR EAST 
3.3(h)(2) 
o. Iranian Manual need increasing pressure on Prime Minister (nage 5). 
3.3(h)(2) 
EASTERN EUROPE 
7, Yugoslav Foreign Minister announces Popovic visit to US (page 7). 
8. Embassy Belgrade's views on Yugoslav sponsorship of Albanian exiles 
- (page 8). 
WESTERN EUROPE 
9. French expect four-power conference on German defense force (page 8). 
LATIN AMERICA 
10, Rumors of revOlutionary plot in Ecuador renewed (pi.ge 9). 
* * * * 
2 
3.5(c) 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
TC*2 SECRET 
GENERAL 
1. Vessels sailing for Communist China misrepresent destination:  
3.3(h)(2) 
Communist-chartered and other vessels 3.3(h)(2) 
bound for China from Europe with strategic 
cargoes are declaring Port Said as destination. 
From Port Said the ships declare for Aden, Colombo, Singapore and 
Hong Kong, then proceed to China. The British Admiralty believes 
these are precautionary measures in anticipation of a possible naval 
blockade of the China coast, in which event these vessels could 
unload in Indian ports for transhipment via nine Soviet and Satellite 
vessels now in Indian waters delivering grain. The Admiralty is of 
the opinion that the USSR believes its ships would neither be stopped 
or molested by a naval blockade of China. 
Comment: 
 the shipment of strategic goods to Communist China from 
Europe in vessels owned or chartered by Soviet orbit countries. 
It is possible that the plan of declaring for other than Chinese ports 
may be a precaution against incidents similar to the recent seizure 
by the Chinese Nationalist navy of the German vessel Mai Rickmers. 
Another precaution now being taken is the discharge of cargoes into 
junks off South China to avoid possible interception along the China 
coast. 
2. Tass re resentative's vi 
congressional hearings  
USSR 
3.3(h)(2) 
3.3(h)(2) 
ro osed oreikn Ministers' Conference and, 
In a 6 June conversation Yuri Zhukov, 
Tass representative in Paris, asked  
whether he 
considered that MacArthur's influence 
was declining and that the Truman Administration had won its point 
- 3 - 
3.3(h)(2) 
3.3(h)(2) 
3.3(h)(2) 
TOP SFCRET 
Approved for Release: 2019/03/14 CO2733137 
3.5(c) 
Approved for Release: -2-019/03/14 CO2733137 
11SECRE'll 
3.5(c) 
he understood 
that the Chinese were also being circumspect in not sending troops 
south of the 38th Parallel. Zhukov asked why it was not possible 
to proceed quickly to a foreign ministers conference in Washington 
based on the general agenda which was proposed by the Western 
Powers and inquired further whether raising 
points at the conference "between the Russians and Americans 
alone." Zhukov also expressed interest in the degree of war 
mindedness of the American people and political leaders, and 
concern that at the Washington hearings military leaders had 
discussed bases for the bombing of the USSR. 
corrinlent, During a similar conversation 
on 2 March Zhukov expressed interest in the conversion of American 
factories to war production and emphasized that only a Stalin Truman 
meeting could reach a real solution of USSR US differences. In a 
23 April conversation Zhukov questioned whether the MacArthur 
affair was only a "coverup for full-scale American war in the Far 
East," When questioned, Zhukov reaffirmed his view that a Stalin-
Truman meeting would be more profitable than the Paris deputies' 
meeting. Zhukov 's approaches appear intended both to convey certain 
views and to probe for well-informed opinion. 
FAR EAST 
3. Chin 
The Intelligence Staff of the US Far East 
Command accepts the withdrawal of the 
Chinese Communist 50th Army from Korea 
to an unlocated dest?ination. in China or 
Manchuria. FECOM comments, further, that a heavy volume of reports 
has been received indicating that the Chinese Communist 38th, 39th, 40th 
and 42nd Armies have also been withdrawn. No contact, other than with 
isolated deserter prisoners, has been made with any of these units since 
�4 - 
3.3(h)(2) 
3.3(h)(2) 
3.3(h)(2) 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
Approved for Release: 2019/03/14 CO2733137 
TG.2 SCRJT 
3.5(c) 
before the Communist mid-April ffensive. 
comment These five crack Chinese Communist 
Flourth Field Army units were the first Chinese troops to enter Korea, 
along with the since-withdrawn 66th Army from the North China Military 
Area command. Hhving borne the almost continuous brunt a the earlier 
campaigns, their strength and effectiveness is believed to be greatly 
reduced. 
NEAR EAST 
5. Iranian financial need increasing nressure on Prime Ministerz  
3.3(h)(2) 
US Ambassador Grady in Tehran reports 3.3(h)(2) 
that the Anglo-Iranian Oil Company has 
made no monthly advance of funds to Iran 
since 31 March 1951. With the Iranian 
Government already failing to meet all its current objections, suspension 
-5 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
Approved for Release: 2019/03/14 CO2733137 
TG.,,,SECRET 
3.5(j 
of AIOC advances is undoubtedly having a detrimental effect on the fiscal 
and budgetary situation; but the Ambassador reports that the Government 
may be able to get by for two or three months and possibly longer. 
Prime Minister Mossadeq, however, greatly fears a financial crisis. 
Comment In the post World War II period, 
the Iranian Government has been chronically short of funds. Since 
roughly 40 per cent of its income has been AIOC payments, it is 
obvious _that the suspension of these payments will cause most serious 
financial difficulties, possibly even earlier than indicated above. The 
UK is naturally aware of the persuasive effects of withholding these 
payments. 
3.3(h)(2) 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
Approved for Release: 2019/03/14 CO2733137 
ET 
3.5(c) 
EASTERN EUROPE 
Yugoslav Foreign Minister announces Popovic visit to U$: 
Yugoslav Foreign Minister Kardeli has 
announced publicly that Chief of Staff 
Koca Popovic is now in the US for talks 
with US officials regarding the possibility 
of acquiring armaments for the Yugoslav Army. Kardelj explained 
that his government is seeking arms from the West solely to ensure 
Yugoslav independence and contribute to the consolidation of peace 
In the Balkans. He stated that this step had been necessitated by 
the rearmament of Yugoslavia's Cominform neighbors in violation 
of their peace treaties. 
3.3(h)(2) 
3.3(h)(2) 
Comment: The publicizing of Popovic's 
visit contrasts markedly with the previous Yugoslav desire for secrecy 
regarding its overtures for Western arms. As late as April 1951, 
the Tito government expressed serious concern to US officials over 
�a news leak revealing Yugoslav efforts to obtain Western arms, because 
the leak afforded Soviet propaganda justification for allegations that 
the Yugoslav Government had joined the Western bloc. Kardelj's 
revelation of Popovic's visit suggests that Yugoslav concern over 
declining popular morale has overcome previously manifested 
reluctance to reveal its arms negotiations with the West. The public 
announcement was probably made to demonstrate to the Yugoslav 
people, as well as to the USSR, the close working relationship between 
Yugoslavia and-the US. An additional motive for the Yugoslav move 
may be further to commit the US to the Yugoslav armament program. 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
Approved for Release: 2019/03/14 CO2733137 
ET 
3.5(c)I 
8. Eqtbassv le1gr4de's views on Yugoslav sponsorship of Albanian exiles:,  
Embassy Belgrade regards Yugoslav 3.3(h)(2) 
sponsorship of an Albanian refugee organization 
primarily as a counteraction to the activities 
inside Albania of Western-sponsored Albanian 
exiles. The Embassy does not believe that Yugoslavia is likely to pre-
cipitate any action which might give the Soviet Union an excuse for 
aggression under a guise of defending Albania. Since the Yugoslav 
Government hopes eventually to see a friendly national communist 
government established in Albania, the Tito regime is undoubtedry-
supporting dissident Albanians in Yugoslavia willing to work toward 
this. end. The Embassy believes that, in the event of akgenuine re-
volution in Albania, the group favoring national communisin would 
receive covert Yugoslav assistance as a counterforce to elements 
supported by the West 
Comment: The publicity which the Yugoslav 
press has given the founding of an Albanian exile committee in Yugoslavia 
in May suggests that its immediate purpose is to challenge Western  
leadership of Albanian resistance groups.  
3.3(h)(2) 
Because of the Yugoslav Government's precarious position, as well 
as its unpreparedness to upset the Hoxha regime, Tito probably has 
no immediate intention to use the Albanian refugee organizations for 
overt action against Albania. 
WESTERN EUROPE 
9. Frcnch e4pect four pOwer conference on german defense force: 
The French envisage a four-power conferenc3.3(h)(2) 
(US, UK, France, and Germany) to reconcile 
anticipated differences between the final 
reports of the two separate conferences that 
have been taking place on (1) a German defense contribution to NATO, and 
(2) the formation of a European Army. (Reports on both conferences 
are expected within a month.) French NATO Deputy Alphand has stated 
11(,)P MGR-kr 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137 
, 
Approved for Release: 2019/03/14 CO2733137 
ET 
3.5(c) 
that the present French Government wants a German defense contingent 
immediately and that defense measures, including German rearmament, 
should not be delayed because of fear of provoking the USSR. He warned, 
however, against recreating the German army, the general staff, and 
the power of the Ruhr industrialists. 
LATIN AMERICA 
10. Rumors of revolutionary plot in Ecuador renewed: 
Col. Carlos 3.3(h)(2) 
Mancheno, Lt. Col. Alberto Mittman and 
retired Gen. Alberto Carlos Enriquez Gallop 3 
supported by followers of Guevara Moreno .3(h)(2) 
(i. e., the Concentration of Popular Forces - CFP), are planning a 
rqvolutionary attempt to overthrow the present government during the 
Liberal-Radical Party Congress which opened in Guayaquil on 5 June, 
The Minister of Government is extremely concerned over the possibility 
that either the CFP � Liberal-Radical Party group or the Minister of 
Defense will make a revolutionary attempt at any time. 
comment; A Mancheno-CFP plot against the 
government has been brewing for the past eight months, and it is still 
possible that this group will make a reVolutionary attempt. Although the 
group might be capable of creating serious disturbances in Guayaquil, 
it is not believed that it would be able to gain control of the whole country. 
There is evidence that the ambitious Minister of Defense and some prominent 
senior army officers might take advantage of such disturbances to assume 
control of the country under the guise of "protecting the constitution. 
-9 
3.5(c) 
Approved for Release: 2019/03/14 CO2733137