WEEKLY INTELLIGENCE SUMMARY NO. 31

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010031-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 31
• Publication Date: September 28, 1948
• Content Type: REPORT

~ liocunent. No. ~3/
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4P'PlCS OF Rh~ORTS ANA .C&Txty~~
TRNrJSPO 'E~s C~DsA?R~G? 77 1763
Hate: ^~ IMA~Z sy: 0~ $ -
4lookllr Intolligonoo 8uzmary,k7o. 81
28 3eptombr 18@8
Curront Soviet actions raiso the possibility that two USSR mqy /
undertake the creation of a 14Borlin" situation gn the cit
of Fianna
`~
y
.
The USSR unquestionably Kati the oagabilitios of'b7lo~king Westorn
surface oom~eotfons wit2~ tB-e city of Fianna and probably believoe thnt
the S4eatern Poxors,,rrith th0 14mftod ohpaofty af'.amergeacy airf4afli-
ties, could not f411y supply Choir L'ienaa sootora whSio Herlia airlift
operations are Contimxii~ige Although the DSSR probably oatirtatee that
it is is a poaitiofi thus to discredit Cho Woatora Pmvere is Austria and
inorea8e the ahaaces of Hsstern oollapso is Berli.a; it appease unlikely
that suah a provocative stop mill gatunlly be takes in the near futuro.
The Tdexioan air carrier, Proveodora Pdundial, Bray bo ferrying air?
craft to hlirope ?or posaiblo use is clandoatfne air transport opera-
tions as a front for the US-ovmed Service Airaays.~ It is also posaiblep
is viers of Panama's canaollation of the.airoraft registrations of Ser-
vice Airaays' Panamanian aubsidinry, that an attempt will be nada to
trnnaPer these aircraft to hlexiaea registration uador cover of the ea3et-
ing Provoedora Mondial orgsafeation. Th1s notion uould.divert suspicion
from continued illicit operations i+nd tirould provide legitimate roFfetra.
tioaa for the former Panamanian aircraft.
A possible front orgdnisation for claadeatino air oporationa mqy
have Leer eatabiiahed in gondurae.
The Communist Party of Ceoohoslovakia haa.asaumcd a diroot role in
supplying aktna to larael through its control of a newly-formed export
company orgeaiv.?d Por this purpose. -
~EeR~-
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Phe r~dntly roportad 8romlin deoiaion that the >hiropeaa a^rameport
Systom Ss tho most vuiaorable point is tho DdA program may result, in
the a~~~.futur0,-;!a dommuniet-iaepirod strikes end ag9.tation a'yonfi
transport acid look morka, particularly in Freaoo and tislostern Oerasgq.
ftcere is tao indioaCion that th? D,SB& here rpvereed its policy oP
dlsmantliiig Oxtenaivie stagy?ate of the rail syctom iul 'the 5oviot Zono
of carmm~y.
6 reces-t,Pormal aoto regarding P`1n3anQ+e Sella railroad xas
probably Landed to the Hinnish [iovernmeat mitt the ulterior motive of
br3.nging pieasura to Doerr on the 3v'sdi$h (iavernmont by publicising
Soviet sCrate~io oapaDilities toward the SRredish border,
A mayor problem in:tho rohabilitatioa of Duropeau treasportatioa
has probably linen solved Dy the oonalueioa of as agreamant betmeen
the 8lsonal Joint fficporl:~Inport Agoacy (3EIA) and Belgisn-DutaL r?pre.
seatativea; iJader this agreement, 8oao goods nom moved to ti7oetera
fiermauy via CclsyUa Horth.8ea ports wi12 bo diverted to the Lots Country
ports for shipment up the Rhino.
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1. L~rrent Soviet notions raise the afb111ty that the USSR ma
undertake the oreation o a Berlin aftua ion i.tt the ci o vans.
e revert So eta esgt ~ t D airs yiag the Prague- ocma air
corridor had commiti;od eighteen "vfolatians"(sines disproved ai`ter in-
vestigation by IIS authorities) may lie indicative oP n Soviet intention
to establish a record oP alleged "violationa`r which may later be used
to justify restrictive action is prohibiting or limiting Western air
access to Vienna. It is appropriate, ~sarefore, to examfna the trans..
portation problem ~7hi.ah would face the tleatarn Powers ohould the USSR
attempt a blockade of Vienna:
Present quadripartite a~oements provide the Western Powers with
aeoess to Vienna along speaifie rail, road, and air routos for the move=
meat of supplies from the western sores of Auetti&. The primary
differeaoe iri the carer of Vienna, as comparet4 to Sarlin. lies in the
fret that all air braes allocat?d to the Western Powora ere boated fn
the Soviet Zoae, thus necoasitatin~ surface linkage through the Soviet
Zone into the ofty of Vienna. Should the USSR elect to restrict P~eetern
aooess to Vienne, aRY one or a oombinatiCn of the following courses may
be pursued: restrict~oa or denial of access by road, rail, or air on
the grounds that the $estora Powers have abused privflegea or violated
agreements; dfaoovery o? "tec"hnical" difficulties; contention of in-
sdequaoy of present "tlfght safety" regulations; sad disagreement over
Saterpretatioa of agreemcnts.
By den`yfng the use of rail routos (now haadliag.prantically all the
shlpmente oP civil and military supplies from the Woster>a Zonoa into the "
Western aeotore of Vienna) end olosfng afP the highwgya to Vienna. the
facilities of present air bases would be negated, and the Western Powers
would be forced to eonatruct "omergenny" stripe wfthin.thoir sectors of
Vienna. If the USSR decides on this step, it will probably take con-
current aotioa to interrupt the present arrangements un3or which Food is
distributed in Vienne by the Austrian fiovornment. Pihile there is. no
. presently expressed obligation on the Western Powers to feed the popula?
tier of their Vicuna sectors, the USSR could in effect force the Cioatern
Powers to bring in food from air bases in Lho i7estern Zones. To
accomplish this, the USSR would need only to subject the continued move-
ment of food from the Soviet Zone to obnoxious conditions which the
Western Powers cannot tolerate.
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The Eraalla probably bolievEis that mith th? lilmited ahpeai~y of
emergency faailitSSS . thb Tivstern E'osverrs, could not fully, supply the3~,
Vienna soctbr's x~il~e tho` Berlin afirlifb;-operatlons. sf4;,eti11: asaesap~y X~:
end that it? is itf h, position,' there~tlr`d, .,to, disorodii( the..i~eaterri Powers
in Auntrla and inoreaoe rho chalices o4'Aestern polls$Qa;3n.B~rlin: T11~ '
USSR unqueatioaably has the oapabil,ity of prvoipitating dire arieis '
ana,2yaod in the prvoedittg paragraplie and the Errcalia, has no doubt givtlh
careful aaaiefderction to such aQtion., Oa the other head, it still
appears that t9ie ahanaea and definitely a~irtct this eventuality
materieli~iag is fire Wont futures .
$. The bSo#ioaa air carrier, P oveodora sundial be fort afr?
orafL to or oa a use i13 a as as r .trans o o era-
Onae ti or as ie lees ti front or, o con auad
~Illa'iL aotiicities of fhb OS-oianod Svrv3oo Airw~ya in support of Israeli
foroe8. .
Proroeodore.M~ndial ?iret"came oadar.audpioioa through tentative
identificatioa'in July,.f,9Q8, of three of to C-4~ aircraft aei former
9orviav Airaaya eguipaeat. one pf .~ho6o:~roraf~ (PSoziaan registration
XB-JPsD) wap r6bt-~ly f'sri+iad' from Niamd to 2?etsaa3t for mAiatenanco and
then departed 'Tor 131trope~ or the `Hear,Bsat.. It is "nbtovortT~y that the
IIS pilot,oa both fligi-te~ Ysltia $ybakoYf,~has previously ongagF,d is rho
olendestiad operations op a Borv3tno .Atirtn~A? bubaididry,'Lineas Aareas de
Pacmms,.8.6, (LAPSA). i~rthosmore, Provoedora'Mundisl~a application for
a GM foreign ferryr flight permit to Hvrarts requested a transit atop at
Lumberton, North Carolind. TMre proaidEty?oP this small north Carolina
torn to Laut~inblug?33autoa airfi.oiii,, tkib fJ3~"oporati4nal beeq of another
laiown olarideatiite operator {Aarthera Atiaatid girHgys), renders in-
araaeingly suspicious th9 operations of thi'e:ltefxiaan,air.carrier, Search
oP rho ai.raraft.bY'US Cuetaais offiaials'before its departurJ Pram Nemeth
fa3lbd.to.rowpl illegal cargo or"other irrogillaritiea sad. the aSroraCt
departed uaiier.proper alvarenoe,,, allcgodty.for'Ram?: Trio declared pur-
posi of the f'ligbt tea ,ttl fulfill oontreAtiuax tlbligations foz~ air tran~-
port services betAecia korue`:and the Year Rant,
/lrwthbr isexiaea C~ aii.th it US? oraur was ratportbd to Nava isnded at
~~ `1a Auguht/:2948, .alb6 all?gedby et! i~ou~to~to Rase. ,(Although
?? reported as baiu3i3g registratioti;markfags~?~B?op3s this aircraft
antually hatre bees %SrJfEI, .a",imovm i'rpeo~dora.i6t~ndia! Ca46 formarl
bolaagittg to Sorvia? Airvrgys.) This aSroraPt oerriof3 no-ottrgo, }~lY~ tiles
improperly doaureent6i8 for iaternaMonal oporatioaa;% Stales authorit~les
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released the aircraft aftor thre? days, during whiah time it was re-
ported to Do awaiting tho arrival from sn unknown station of another
aircraft p ith a aar~o of aircraft parts, Neither tho 5{exiaen aircraft
for its US craw have berm identified, but it is roasonablo to suapeat
that it may havo boon operated by Proveedora L~undial on behalf of
Sorvice Airways.
It is pooaible, in-view of the ragout cancellation by Pnnama of all
LAPSA registrations in that country, that the US-owned parent company,
Service Airvyys, retry attempt to register in Heafao, undor,aovsr of tho
existing Proveedora 6dundiAl drgaaizatioa, the nosr "etatelesa" aircraft
whiah it formorly operated through LAPSA. 4'hia action would be designed
to divert suepiaion from LAPSA~s aontinuod f114oit operations; by the
use of a nen front organization tishioh LAPSA hopes can escape widespread
auspiaion. Ia any case, the transfer, if successful, would provide
internationally recognized aircraft registrations.
have n estab-Xished in ndurac. G ea a a ion trado pub ication
has reports the recen orma ion of a Honduran air oarrior, 34~aneportes
Aertoe de Honduras, whiah allegedly pleas to establish service between
Tegucigalpa sad Bome via Hew York, Gander, Shannon, and Paris with DGh
aircraft. 11vo sp eaisl DG4 flights to Rome nre said to have been
already made.
There have been no reports indicating the finenoial banking of the
new aa~mpa~r.` Its 1Samiging Dfroator is roportod to be s Captain ELgon
von 5gardelliy of Hungarian origin. It is further stated that the airy
line is capitalized at ^$1?,200." Thomas Cook and Sona will roprosent
t)ie company in Europo, excopt for Italy, whore headquarters era said
to have been established in the Rome ofi'iaes of the Italian airline,
Salpanavi. (Tho Itelisn line has opplied to the Italian Gavarnment for
authorization to operate a Rome-Hmr York sorvioe with DC-4 aircraft
aharterod from.Trana-Caribbean Air Cargo Linea.) There is ao evidence
presently available to the Control Intelligence Agency confirming the
exiatcnae of Tranaportos Aeroos de Honduras. If the report is taco,
however, the normal airline traffic potential betraeen Honduras and the
US or hlirope would not seem to juatily such an undertaking on aconamic
grounds, Although thero is a substantial immigrant movement by air
from Flaropo to the Caribbean area, there ie ae yet no indication that
the Honduran line has been formed to sooormnodate this type of traffic.
Furthermore, any Honduran airline venture of such an extensive nature
would almost certainly requiro other-.than-Honduran financing, Since
Central Aa;orioan nations have previously 'provided rofuge for illicit air
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operotor6 attbmpting to evade US aviation regulations and azpart non?
trola, it is possible that Tranaportes demos de tioudurae has been
established as a subsidiary and .front organisation for Israeli or other
interests engaged is covert oporationa.
NOTEe The foregoing information is submitted as A preliminary
ovalus~on, poadiag further investigation.
4. The Commnnist ~ of CzechosloyaY.ia has nom assumed a diroat and
aotivu ro ??in s i la arms to Israe t~rau centre o~ a newly-
organize ezpor company in is p vats iatorosts hone subscribed 49
percent of the capital'investment. Although Hiere is no indication sa
y`et that thf-R armmnnv L}.N.~dA ft fie
likely that this method will be utilized, in vlsw of the ease erith which
TTA .... -....t li~__ t.. t __- _-_ s .. _
5. Increased Communist-ins fired labor strife among transport and
dock wor ere aountr es may bo an aipa od in the near future as
n result of the recently reported Eremlia decision that disruption of
the European Transportation system provides the most effective means
remaining for scuttling Lhe ECA program. Of the countries tohich might ,
be affected by such Moscotis-instigated aatioa, France is probably the most
susceptible to serious dislocntions,'in view of the powerful position of
the Comnuniato in French labor organizations. tihile labor in Western
Gernany fa less likely to accept Moscow direction, the area fie partinu-
larly vulnerable to even minor dislocations in its already over-strained
rail transport system. Other ERP countries are not likely to suffer
more than minor dislocations caused by CoTmnunis4 elements within the
ranks of transport and dock workers.
6. The status of the railroad system in the Soviet Zone 'of Gorman fie
of exceptional in teat, in view o the poaeibi ity a ma3or Soviet
strategic plena for large..eaale operatioae in western Europe might
require a reversal of the policy of dismantling the Eastern Germna net-
work. Actually, the rail system of the Soviet 2ono continues to operate
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in an +bxtromoly Arooorious manners ~ ith little im~rrov~unent evident.
Canaidert~bly qucatities oP "dismantl?od" ra31s raro t~till being ahippod
out oP Germany to the F~sst and tl~iig only double~trnoked line out at
Berlin raps Fast to Poovn. Although the 'USSR hen propagandised certain
gra~ectn For alleged roslsoration of double-traoks on?portions of some
i'arms~r doublo-tacked Sines, it appears that, otma iP such intentions
oAist, no subotantial prvgrasr~ &ss bey made. the USSR aationa still
indiot~o that top priort,ty is being g},~rin to the reatarat~.an and aon-
struat~;on of its arm rf-il syRtera, and Gern-~manui'aatured rail~y oquip-
ment is being shippod to the USSR, irresrpectiva of tho needs of the
German t+yo rarto .
9, A roo4nt Formal rota in uirin as to the status of reaonstruatioa
aP Finl~a~a ~ s Salle rai road Sues probably handed to tht~ Finnish v~err~-
ment by tho U 8 Por pure y ulterior golitiaal rea,sona. The note pro..
fessea tt dasire to bo informed an the. progress ahiah. Fixtlaud h$s
aohioved in robuilding, under the tarns oP tho 1947 t~oacoFr P?ace Treaty,
a Finnish segmextt o#' tho railroad.. which Formerly ran Prom they ~esterlt
tip of tho 1Nhite Sea aaro~ts soviet territory and I+inlaad to a point at
the ~Fo~thera sad of the (iul~' of Bothnia. The lime oonxseatz~ from that
point ~itb the ssredish railway network. This Finnish aegsmvnt, ori~;inaily
constructed by Finland under the terms oP its 1940 Pease Trusty Frith tho
USSR, tras almost totally dc~atroyed by tho Germans during '~--orld 17ar IZ,
Actually, tho USSR is undoubtedly fully inPormod as to Finland~s
reaox~struction efforts. ~9hilo the Finns are a tsetnpting to make rapid
progrssa with phis work, they s.r? being hacapersd by shortage of rra toria2$
and terrain dif'f'iculties. ~renty-one bridgoa; the most difficult oP
which spans Lake Kemi, are still to bo rebuilt.
1~raugh its recent note, the USSR has probably found it eapodiont to
bring prossure on the 9rredisla Gavernm?nt at this time by publicising its
interest in the extension of its strategic capabilities toward the
Swedish border,
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6 ninet -d rovisianal a roocnont ooacludod the Bixonal Joint
Export- or Bgoncy JS5'Lfi i o o gianeDu represon atives trill
probably bo ratified by thv Belgian and Netherlands Goeernmonta rmd
initiate a ponvanont settlement of a mn~or problem in Fdzropoan trano~
port rahabilitatioh. JELA rtFll nrnr divert to Eotterdam and Antwerp
some ineoraing traffic for 1ZOetorn Germany formerly imported through
German North Soa ports, Eoonomio ndBantago to Bi2onia will be the
criterion Por such diearsion, but the lor+ couatrios are free to allocate
traffio botvevn Rotterdcem and Iintrrorp provided no inoroaom in coat to
Biennia moults, In addition to stimulnting port activity in the low
oountrfos, the agreement will benefit the Gorman eaonoLyr by (1) alloceing
Dutch bargee to operate on the upper Rhiao and 4ditCelland Cnnal, thus
inoreasing GerrJan waterborne tFafCic, and (2) gieing German bargee access
to the lower Hhine and certain low country canals,
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