CURRENT INTELLIGENCE BULLETIN - 1951/10/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02733146
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: October 4, 1951

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4 October 1951
Copy No.
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CURRENT INTELLIGENCE BULLETIN
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DOCUMENT NO
NO CHANGE IN CLASS. y,
1 CEOLSSIFIED
CHi,NGED "TO: IS S C A#tW
N.77;:7 DATE' 3 5(c)
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cy REVIEWER:.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
FAR EAST
L Chinese Nationalist Government proposes establishment of a
mobilization board (page 3)
2. Chinese Nationalist forces reported in Burma west of the
Salween (page 3)
NEAR EAST
WESTERN EUROPE
McCloy to maintain Berlin air-lift in view of continued Soviet
harassment (page 5)
3.5(c)
3.3(h)(2)
Comment on French cantonal elections of 7 and 14 October (page 5)
* * *
2
TOPS
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TIOSECRET
FAR EAST
1. Chinese Nationalist Government proposes establishment of a
mobilization board:
3.5(c)
3.3(h)(2)
A proposal recommending the establish-
ment of an economic mobilization board
directly responsible to Chiang Kai-shek
was presented to the Chinese Nationalist
cabinet in early September, 3.3(h)(2)
The board would bring all
economic affairs under the direct control of one agency.
Premier Chen Cheng is reported opposed
to this further centralizing of power and has delayed action on the
proposal. As a result, a compromise plan, placing the board under
the cabinet, but still subject to independent directives from the presi-
dent, is now under consideration,
Comment Chiang Kai-shek is faced with
the conflicting problems of meeting The ever-increasing expenses of
the secret services, considered by him essential for the continuance
in power of the Nationalist regime, and the demands of the US for
economy in administration. Chiang's proposal appears to be designed
to provide him with easier access to*vernment funds.
Premier Chen Cheng, according to recent
reports, is of the opinion that the last hope of the Nationalist regime
lies in all-out cooperation with the US.
2. Chinese Nationalist ft:Drees reported in Burma west of the Salween: 3.3(h)(2)
The US Embassy in Rangoon transmits a
report that on 1 September there were
5, 000 Chinese Nationalist troops west of
the Salween River in northeastern Burma.
These troops are under the control of
Li YuSn-kai "Commander-in-Chief" of Nationalist forces in south-
west China. They are said to be operating independently of General
-3-
OPSECE
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3.3
(2)
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TP SECRET
Li Mi, Nationalist "Governor" of Yunnan, whose forces, currently
located to the east of the Salween, have caused the Burmese Govern-
ment so much concern.
The embassy comments that this report,
though probably exaggerated, is the first indication that a sizeable
group of anti-Communist Chinese guerrillas is operating west of the
Salween.
Comment: This is the first report that
Li Yuan-kai's troops are in Burma, although it is entirely possible
that they too have sought refuge there from the Communists. It is
probable that the two Nationalist forces are operating independently
because of the jealousy between their commanders, both of whom
claim extensive jurisdiction in southwest China.
NEAR EAST
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(h)(2)
3.3(h)
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TsColerfiT
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WESTERN EUROPE
McCloy to maintain Berlin air-lift in view of, continued Soviet harass-
ment:
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3.3(h)(2)
High Commissioner McCloy has abandoned
earlier plans to discontinue the Berlin
freight air-lift, because there is no con-
clusive evidence that Soviet and East German
officials intend to cease their harassing
measures. For the time being the limited
air-lift, which has been flying out West Berlin exports, will be con-
tinued on a day-to-day basis, and the matter will be considered further
by the High Commission at its next regular meeting on 4 October.
Comment: At the time of the signing of
the interzonal trade pact on Trgepre.iiiber, the East Germans agreed
orally that various harassing measures would be discontinued. So far,
they have complied only by reducing the rates of the road tax on
Berlin-West Germany traffic. Soviet and East German officials are
still holding up approval of export permits. As of 29 September, par-
cel post shipments were still being interfered with and the Rothensee
canal lock had not been opened.
5. Comment on French cantonal elections of 7 and 14 October:
The major political parties in France are
placing unusual emphasis on the forthcoming cantonal elections. They
are determined to capitalize on any shift in popular support since the
indecisive June elections for the National Assembly. Since, however,
many of the local contests, which are for 50 percent of the seats on
the councils of the French departments, will be decided on local issues,
the results will not give a true picture of national political sentiment.
When the deputies reconvene early in November, the parties' gains and
losses in these local elections, together with the ill-feeling engendered
In the recent assembly debates, will increase present tensions which
stem largely from basic economic issues.
TOP SECRET
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The Gaullists are confident of making an
even better showing than they did in the June elections, when they
emerged as-the largest party in the Assembly. The Socialists, who
currently hold the largest number of the seats being contested, are
struggling to minimitze their anticipated losses; nevertheless, they
have declared their intention not to cooperate with either the Commu-
nists or the Gaullists in the present campaign. The Communists
have publicly stated that they regard the forthcoming elections as
equal in importance to the national poll in June. They probably be-
lieve, with considerable justification, that they will be able to hold
their lead in the popular vote, especially in view of the growing
inflation and the controversial NATO issues.
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