CURRENT INTELLIGENCE BULLETIN - 1952/04/06

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03176571
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: May 24, 2019
• Document Release Date: May 30, 2019
• Publication Date: April 6, 1952

Approved for Release: 2019/05/08 C03176571
imel-UP 6ik2-tif
SECURITYANFORMATION
6 April 1952 3.5(c)
3.5(c)
Copy No.
4
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS. till/
DECIASSIFIED
GLASa CHANGED TO: T3 S
NEXT REVIEW i)AT!i:
AUTI-L HIV&
DATE 7 sit
3.5(c)
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
3.5(c)
TOP SECRET
SECURIT)frINFORMATION
Approved for Release: 2019/05/08 C03176571
Approved for Release: 2019/05/08 C03176571
TOP CRET
3.5(c)
SUMMARY
GENERAL
1. Iraq challenges Venezuela on oil exports to Israel (page 3).
FAR EAST
2. Peiping may agree to investigation of its BW charges (page 3).
3. Missionary reports on "American germ air raids" in China (page 4).
4. Letourneau considered best man available for Indochina post (page 4).
NEAR EAST - AFRICA
5. Comment on Iran's financial situation (page 5).
6. Egyptian King may be planning new government under present
Minister of Interior (page 6).
7. Egyptian parliamentary elections likely to be postponed (page 6).
8. Egypt denounces action of British Governor General in Sudan (page 7).
WESTERN EUROPE
9. Top Italian official in Trieste urges moderation in Italy's position
(page 7).
10. Anti-Communist French labor campaign suffers setback (page 8).
11. French official warns against liberalization of Allied controls in
Berlin (page 8).
* * * *
3.5(c)
3.5(c)
Approved for Release: 2019/05/08 C03176571
Approved for Release: 2019/05/08 C03176571
TOP
3.5(c)
GENERAL
1. Iraq challenges Venezuela on oil exports to Israel:
Comment: Venezuelan exports of crude oil
to Israel have increased steadily the past few years. In the first nine
months of 1951 they accounted for approximately 75 percent of the crude
processed at Haifa.
As was explained
Venezuelan exports are controlled not by the government, but by the oil
companies themselves. There is no apparent reason for the Venezuelan
Government to consider approaching the companies at this time.
In Ianuary, Mexico instructed its Minister to
Lebanon to deny that it was selling oil to Israel, but to state that the
government-owned oil company obviously had the right to sell to any
buyer not proscribed by the United Nations.
FAR EAST
2. Peiping may agree to investigation of its BW charges:
The Indian Ambassador to Peiping has recei3.3(h)(2)
the impression from a Chinese Vice Foreign
Minister that there is a "considerable possi-
bility" that the Chinese will agree to an im-
partial international investigation of their biological warfare charges.
Pannikar expected to discuss this subject with Peiping's Foreign Minister,
Chou En-Lai, on 5 or 7 ApriL
-3
3.5(c)
3.5(c)
Approved for Release: 2019/05/08 C03176571
3.5(c)
Approved for Release: 2019/05/08 C03176571
rilePSECRET
3.5(c)
The Indian Foreign Office advised Pannikar that
any international investigative body should have full freedom to undertake
independent investigation in the localities concerned, as well as to review
evidence submitted to it.
Comment: Peiping has been criticized in Asia
for its failure to accept the American proposal that the International Red
Cross investigate the biological warfare charges.
Peiping is not likely to agree to an investigation
such as the Indians are suggesting. However, to regain the propaganda
initiative, the Chinese may be willing to discuss a proposal for the creation
of an investigative body.
3. Missionary reports on "American germ air raids" in China:
A German missionary, newly arrived at Hong 3.3(h)(2)
Kong from Tsingtao, has supplied details on
the alleged American germ air raids there on
5 and 8 March. During the alerts, a single
searchlight played in one direction for two
hours, while antiaircraft batteries fired wildly in all directions. No
planes were heard or seen on either date.
On 9 March, hundreds of children wearing face
masks and equipped with fly swatters and bottles, and thousands of soldiers
were led out to collect insects. For days afterwards, the police led people
on insect hunts.
While the missionary himself is convinced that
there were no raids, he states that many Chinese believe the Communist
BW charges.
4. Letourneau considered best man available for Indochina post: 3.3(h)(2)
Minister Heath in Saigon believes that the French
Government made the best possible choice in
appointing Minister for Associated States, Jean
Letourneau, High Commissioner in Indochina.
- 4 -
3.5(c)
Approved for Release: 2019/05/08 C03176571
Approved for Release: 2019/05/08 C03176571
RET
Heath explains that Letourneau has the personal qualifications necessary
for the post, is familiar with the situation, and has a "friendly understanding"
of American policy.
Comment: Since Letourneau retains his position
as a member of the Pinay government, his new assignment may be inter-
preted as an indication of French determination to push for a solution of
the Indochina problem. The important decisions on Indochina policy, how-
ever, which will still be made in Paris, are apt to suffer by his absence
from the capital.
Letourneau's appointment is not being received
with much enthusiasm in Vietnam. He has a rather low opinion of the
ability of the Vietnamese to maintain their independence, and he is identi-
fied in the minds of many Vietnamese with French equivocation on the
subject of negotiations with the Viet Minh.
NEAR EAST - AFRICA
5. Comment on Iran's financial situation:
The Iranian Government has so far managed to
avoid financial collapse by resorting to special devices such as indirect
loans from the National Bank, floating an internal loan, and the transfer
of uncommitted foreign exchange. It now has sufficient funds to cover
current salaries and wages.
However, the increasing financial and economic
deterioration has reportedly forced the Iranian Ministry of Finance to
consider the unpopular step of debasing the currency by expanding the
note issue and using up the gold reserves covering its currency. The
American Embassy believes that Prime Minister Mossadeq might be able
to persuade the Majlis to dilute the currency on the basis of "patriotic
expediency," but that even without this the government could carry on
through May.
5
3.5(c)
3.5(c)
Approved for Release: 2019/05/08 C03176571
Approved for Release: 2019/05/08 C03176571
6. Egyptian King may be planning new government under present Minister
of Interior:
The Minister, Mar aghi Bey, apparently expects
the resignation of Hilali, the postponement of elections, his own accession .r
to power on the basis of a strong program for social reform, and, should
the Anglo-Egyptian dispute still not be settled, an ultimatum from Farouk
giving the British 60 to 90 days to satisfy national aspirations. Should
these not be satisfied, the source concludes that "a national struggle would
begin under Maraghi's direction.",
Comment: This is the first indication that the
possible resignation of the Hilali government might be followed by something
other than general chaos. Maraghi is considered able and ambitious.
There have been rumors, termed "absolutely
untrue" by the Chief of the Royal Cabinet, that Farouk is not fully supporting
Hilali. Lending some credence to these rumors is a report that Hilali has
resisted royal pressure to take into his cabinet two of the King's friends
who are notoriously corrupt.
7. Egyptian parliamentary elections likely to be postponed:
3.5(c)
3.3(h)(2)
the 3.3(h)(2)
Egyptian parliamentary elections, now scheduled
o ke slace on 18 Ma will not be held.
Comment: There have been previous indications
that Farouk would postpone the 18 May election date.
6
3.3(h)(2)
3.5(c)
'Approved for Release: 2019/05/08 C03176571
3.5(c)
Approved for Release: 2019/05/08 C03176571
rit9P SECRET
8. Egypt denounces action of British Governor General in Sudan:
The Egyptian Foreign Minister has denounced 3.3(h)(2)
the British Governor General in the Sudan for
submitting a new constitution to the Legislative
Assembly. . The Foreign Minister, who consider-
ed the act "provocative," seriously contemplated
breaking off talks with the British Ambassador.
" Egyptian newspapers, though severely limited
I
by censorship, have unanimously accused Britain of extending its imperial-
ism and of a new move to separate the Sudan from Egypt
Comment: If the Governor General's action
does not lead to a complete breakdown in current preliminary Anglo-Egyptian
talks, it will at least certainly harden the Hilali government against making
concessions on the Sudan and Suez issues.
WESTERN EUROPE
9. Top Italian official in Trieste urges moderation in Italy's position:
The Chief of the Italian Mission in Trieste 3.3(h)(2)
reportedly believes that a final settlement of
the Trieste dispute should be postponed, since
the present international situation would not
permit a solu ion ora le to Italy. He thinks that Italy should not try
to alter substantially the present status of the Free Territory, and that
Italian troops and police should remain outside, as their presence might
further antagonize the Yugoslays and result in a permanent partition along
the present zonal frontier.
Comment: These views are in contrast to the
intransigence of most responsible Italian leaders, who advocate greater
Italian participation in the administration of Trieste.
7 -
3.5(c)
Approved for Release: 2019/05/08 C03176571
Approved for Release: 2019/05/08 C03176571
CRET
3.5(c)
10. Anti-Communist French labor campaign suffers setback:
3.3(h)(2)
A "severe blow" may be dealt efforts toward
collaboration among the principal non-Commu-
nist French labor organizations by a sharp split
in the leadership of the rightist Independent
Labor Confederation. A failure to mend this split would benefit consider-
ably the Communist-led General Labor Confederation.
The moderate majority of the Independent Labor
Confederations's executive committee recently defied an attempt by the
minority and the organization's principal financial backer to place ex-
Vichyites in certain top positions.
Comment: The Independent Labor Confederation
seeks an inter-confederal grouping of non-Communist labor representatives.
The present leaders of Force Ouvriere, one of the two principal non-Commu-
nist labor organizations in France, would be excluded because of their un-
aggressiveness and deep distrust of the Catholic Labor Confederation,
11. French official warns against liberalization of Allied controls in Berlin:
The chief French representative in Berlin.
.complains that the United States draft
statement of the position of West Berlin under
future contractual agreements is "hardly ac- -
ceptable." The French official asserts that the American plan "assimi-
lates the city, as a matter of fact" with West Germany.
The representative fears that the text is too
vague and too brief. He advises Paris to hold to its former proposal,
which wculd more clearly define the special situation of Berlin and provide
strict rules limiting the freedom of action of the Germans and the Allies.
The French claim to have convinced British
authorities in Berlin of the soundness of their position.
- 8 -
�
TOP SECRET
3.3(h)(2)
3.5(c)
-"Approved for Release: 2019/05/08 C03176571
Approved for Release: 2019/05/08 C03176571
TtIPSECRET
Comment: The French attitude stems from a
basic fear that liberalization of Allied controls in Berlin would enable the
Germans to lead the Allies into war. This has caused the French in the
past to oppose the establishment of West Berlin as a twelfth state of the
Federal Republic.
-9
Approved for Release: 2019/05/08 003176571