WEEKLY INTELLIGENCE SUMMARY NO. 42

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010042-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 42
• Publication Date: December 14, 1948
• Content Type: REPORT

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OFFICE OF REPORTS AND ~T~,LiTE.S
TRANSPORTATION GROUP
Passenger reaorda of Czechoslovak Airlines in Athena for the period
20-28 September 199$,inolude the names of 12 Israeli citizens who also
appear on a list of S8 names that a Jerusalem source provided in Septem-
ber Frith the ellogation that the assassins of Count Bernadotte were
among tho group. (Item No. 1, A)
The Polish Airline LOT probably will be foroed to 'abandon plans for
extending services to the Near East if Turkey end Egypt continue their
opposition. {Item No. 2, B)
Turkish offioiels have informed the US that their country has cate-
gorically denied permiBaioa to Czeohoslovak National Airline, CSA, for
sohedulod overflights of Turkey en route to Baghdad and Tehran. Turkey
apparently found a oonvenient exauae in the fact that the proposed route
would be operationally impossible in view of Ira is abrogation of landing
and transit rights Tor Czechoslovak aircraft. ~Ttem No. S, B)
. .~
The Israeli Govermneat has announced its intention to reaotivate
Lydda airport as a traffic center for the Middle East and has Fonaelly
deals red the airport open to commaroial airlines of ell countries.
(Item No. 4, C)
In spite of indioationa that Czechoslovakia slay have changed its
policy somawhaL in respect to the military support of Israel,tho
Czechoslovak National Airline (CSA) ie now reported to be carrying
cargoes of munitions to Rome and Athena, where the materiel is transferred
to C-46 aircraft for delivery to Palestine. If true, this report would
be the first indication that the air traffic in munitions from Czechoslo-
vakia hne_been_handled,by any means otherDt~,ra~ oontrolled air. pya-
DECLAS.SI?.T.ED
Class. Ci~l;t I?"?s"D T0: TS S C
DDA i,;;;r,:o, 4 Apr 77
Auth: DDA H'_::._7.7/1763
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The reports of participation. by Great Cirole eirfreighters (a US
non-sohoduled air carrier) in olandestine arms traffic from Rome and
Athens to Israel are c+pparontly not oorreot. (Item Na. 6, C)
Legislation introduced in the Australian Parliament to or~anice a
state-owned shipping line may, despite oPfioial assuranoes to the con-
trary, pave the way Per natioaallzation of shipping. (Item No. ?; H)
The USSR has made a eoooad demand upon the Austrian rail system,
this time for 1,000 froiGht sera. F1-rther demands may be expected due
to the siseable quantity of rolling stook remaining in Austria which ha&
already been earmarked ea Soviet war booty. Substantial additional
rwnovals will impose a oritical straia.on the Austrian transport economy.
{Item No. 8, B)
The USSR is supplementing its open ahipments'oP rubber and tin
frog Southeast Aaia by movemettts under fictitious eaoounts in small
foreign. registry oraft to,traasehipment points along the China ooast or
is the islands around Singapore. (Item No. 9, C)
The flow of chrome and other strategic materiels through Portuguese
Sast Africa x111 probably not be affected by the British sale of the
Heirs Railway to Portugal. Althou~ neither the railway nor the port
facilities are presently capable of handling available export tonnages,
the pro3eoted improvements in the line sad the port may be delayed until
the purchase agreement is implemented next spring. {Item No. 10, B)
The establishment of separate ministries for railroads and communi-
oatione in Yugoslavia reflects official concern over the critical condi-
tion of transport, particularly rail. (Item 170. 11, C)
Action proposed by the U3 sad UR to merge the rail systems of the
Biaone sad the French Zone is Germany has been deferred, duo to French
opposition, (Item No. 12, C)
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baolutioa of the loa~staadiag,oontroverey bet4reea Prsnoe and the
HiEOnal admiatatration in Qermat~}r ovor tho exahaage of Frei~-t sera
will probably be preoiplteted by the immlaonoe of the January assembly
of t2te Inter.Alliod Hep4rations Adrnirilatratlon (IARA). IIaleae ae~otie.
tiers nre reaiuned before the assembly oonvenea, tie Froaoh have
threatened to raleo the Issue For debate, and a deoiaian in Franoe-s
fao~or is likely. (Item Ao. ZS, B)
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CIPIL AVIATION
I, Pease r reoords of Czerohosloaais Afrli~nes in Athens for t~-e period
26-28 op er 9 o u e names o' eraeli oitisons rrho also
appear on a list of 56 names that a Jerusalem souroe provided in 5eptmd:.
bar crit3a the allegation that the sasassiae of Count Bernadotte tigero
among the group,
An examination of the Jerusalem lis4 revoaLa a ourprfeing number of
young m?n. Twenty individuals, or b4 peroent of the entire fiat, are
under 39 years of age; l2 are under 25 years. The 12 individuals r+ho
arrived in Athena, en routs to Prague, are also largely fn the lower ago
braaketa, 8 being under 30, and g under 26. Nino of those .individuals
gave as the reason for their Lrip a visit to the Prague Fair. This is an
.obvious cover for other aativitiea beoauae the Prague Fair was reported
to have been almost ready to close ti~'hen the 2sraelis were traveling. Tho
Israeli Government or Israeli business interests, moreover, would not be
likely to send such young representatives to an indusl:rial fair, nor rrouid
the Israeli Govermaent have permitted groups of military ago to leave the
oountry on afvil missions during war,
The foregoing oonsideratfone raise the question of rho actual purpose
of this movement, It is possible that the individuals were trawling
under direot military orders. Largo numbers of Yaraeli ground troops have
been receiving military training in Czechoslovakia end are naz reported
returning to Palestine. It would have been possible in September, there-
fore, that unite oP the Israeli Army vero flot.n to Prague in conneotion
with this training. A training program for Israeli pilots also was being
-,carried out in-Czechoslovakia at this time, Gone of L?he 12 names,
ha~eever, appears on a list From Prague, r+hich fnaluded the Israelis
engaged in Phis program early is Rovember.
At the time the evacuation from Palestine was originally reported,
the Pear rase expressed that Israeli terrorists fa 'the group might oommft
sots of violeaae against Dnited Rations statesmen fa Paris. Another
possibility is that these personnel were asst on special misafoas of a
military nature. It has bean reported that early in 1946 trained dsmoli-
tion experts from Palestine exploded mines in Italian harbors under ships
~shioh aontaiaod mils iga?d to Arab States, and oarried
out other sabotage.
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2. Poland has approsahod both Turgey and EEggyypptian an at t to assure
air rigaca wnion would perm~e 'Poa~i went airline (IA2) to
extend its operations into the Hoar East. The Poles have presented
Turklch euthoritlas t-ith the draft of a proposed bilateral civil air
agreement. Tho Ylirld.ah Oovbrament, however, hoe asaurad the US Eabasay
that it will de1Qy nation indefinitely oa the Aoasax proposal. Egyptian
officials have given the Polish proposition nn equally oool reception,
not only beoauae tto Egyptian airline desires to.eetabliah air services
to Poland, but also beoaase of fear that.saheduled Polish air services
into Egypt might provide a ready assns for Conenuniet infiltration.
Although LOT probably will be fot+aod to abandon plans for extending
its aerviooa bo the Near East if Turkey and Egypt oontiaue their oppoai-
tioa, it will continue its efforts to expand operations throughout
Western 'Europe. Ia addition to?LOT's air network in the Satellite
countries, it nom operates to Sboakholm, Copenhagen sad Paris, and plans
to implement Ste now trade agreement with Belgium, which inolu4ea air
.rights to Brussels, a9 soon ea the requisite overflight privileges can be
~btained_fropt the UK or US Zone authorities (see TO Weekly No. 40). 50X1.
8. Turkish offioials have informed the US that their oountry has
aatego a y e .pe ae on s s oven National Airline, C$A,
for soheduled overflights of 1lirkeq on route to Baghdad and Tehran.
Turkey apparently Pound a oonvenS.dbt exotise in the fact that the proposed
route would be operationally iagioaisible in 61ew oP Ireq~a abrogation of
]andiag sad transit rights for Cseohoslovak airoraft. In oonneotion with
CSA's attempt to establish a d4ront route throu~- Turkey to the Middle
East, the tmoonfinued reports that Bulgaria had agreed to permit CSA to
operate beyond Sofia to IettiabuY (see TO Summary No. 40) are still
unaubsteatiated. 8rraevar, it non appears that suoh reports may have ooa-
fuaed the rumored Sofia-Iatanbal route rights with a pra~eoted series of
epeoial flights over this route for delivery of 80 Csenhoslovak-manu~
faotured sinsl~ a-seat. ~ahort-rang? sport airoraft reoeatly purohased by
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4. Rho Israeli Gove-rmmeat has a~ounoed its intention to reactivate
Lydda rpo ae a c a er or o i e Ens and.hae formally
declared the airport open to oom~eeraisl ad.rlittes of ali countries.
Y4~is airport, with four ruaarsys raagfhg from 8,600 to 6,220 feel is
length, was nsed.by the airlines of l8 countries phile wader British
control. Its ground faoflitiesrdestrayefl or removed during the Jewish-
drab fighting. apparently have boon partially restored.
Ztre re-oatabliahmeat of Lydda as a dosigaated international airport
would relieve the onrrent diffiaultiea oP manor international airlines '
operating into sad thx~n~- the Hear Raat. Attainment of this objective,
however. ~aili bo dolayed until ground facilities can moot safoty re-
quirements of the International Civil Aviotiaa Organization. IIS scheduled
airlines, furthermore, will not be permitted to roaume this atop until
operating faoilitiea meet US (Civil Aeronautics Adalnistxation) standards.
Traffic through Lydda will probably not attain the lovel reeahed under
the British Mandate so long as the Arab States enforce the present
landings of aircraft eu- route to or from the Stato of Israel. 50X1
I
b. Ia its of indi~tions that Czechoslovakia may?have changed its
policy nom n rospec a mi support of Israel (nee TG
iYsrekiy 80. 41). the Czechoslovak Rational Airline (CSA) ie no~v reported
to be carrying cargoes of munitions to Some anfl Athens whore the materiel
is transferred to C-46 aircraft for delivery to Palestine. If truo, this
report would be the first indication that the air traffic in munitions
from Czeohoslovslcia hoe boy an handl~od by eqy means other than Iaraeli-
50X1
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? 6. The orte oP attioi ation b Great Circle Airfreiphters (a US
not-sohedu e a r a sr a an at a arms ~a Fio rom a and
Athena to Israel arc apparently not aorreat. Great Circle is operating
aircraft is a heavy eahedule of flights transporting DP~s from Ltunich
to Haifa via Some sad Athens, and is the only such carrier authorized by
the US 11111tary Goperameat to engage in this profitable traffic from
Germany. The company's operations, wader a recently-concluded contract
with the deaieh Agoncy for Palestine, have bean uador strict milito.ry
surveillance in Germany to insure compliance with the UH truce provisions.
~ Tt seoms unlikely, therefore, that the comp~nyr would jeopardize its present
highly adveatageoua arrangoment~ in Germany by participating in illicit
traffic elsewhere in Europa.
Great Circle was implicated by craw members of a group of C-46 air-
craft operating night schedules from Rome and Athena to Israel (see item
b). Lacking positive identification of these aircraft as Great Circle
SE~ET
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equipment, it fa more reasonable to believe that they are the airoraft
px+ooured by Lineas Aereae de Panama {I.APSA) in the OS early this your
sad later employed by the Israeli Ooverrancat to ferry munitions and
military supplies from Oteohoslovekia. It would be logioal for IAPSM.
Yeraoli pereoxmel to divert suapiofolf from their own illioit aotivitiea
by inoolvi,~reat Girole~s name sad legitisrate operotioae over the same
route. ~ ~ 50X1
7. Le is~aa been introduced is the Australian Parliament to
imple~n~~ Aue~ra~i'an p3ans ~?or a a$ s~pp ng end, ie
Auatraliaa Shipping Hoard, an orgsaisation similar to the U9 1Saritime
Commission, presently oporotes 5E vessels (Sl Oovormnent-owned anfl 22
ahartersd from the Ud), primarily is traffic which is unattractive to
private interests. Tha proposed legislation could initiate more extensive
Oovermseat operation and otmership. Although the Government has con-
sidered various proposals during the past few years for iacroased state
participation in shipping, it has carefully avoided any suggestion that it
plans complete nationalisation. the Shipping ltinistor has. given speci?!o
asauranoes that the preaenL legislation is not directed toward that foal.
Despite the expressed offiolel intentions, horrevor, the increased Govern-
ment activity fn the industry Dan damage private interests to the extent
8. The USSR has made a second descend u oa tfie Austrian rail s stem this
'time or ,0 oars. n t e ao sion o comp ag wi' t e first
Soviet requisition for 540 loaomotlvea and 6,b75 railway Dare {see TG
Weekly Ro. SS), t9-o Austrians satually delivered an extra 42b oars.
Despite thle error, hocvover, the USSR objected to the fast that 60 percent
of the delivered oars were severely damaged, and served aotioe that
Austria would be required to deliver an additional 280 oars in better con-
dition. The Austrian transport system has not boon dealt a mortal blow
by its losses thus far, due to the large proportion of unserviceable stook
delivered. Additional Soviet requests may be expeotod, however, since
there remains a sieenble quantity of eervioeable stook which has alreac>,jt
been earmarked by Soviet oo8upation authorities ae war booty. The early
removal of this etoo e a oritioel strain on the Austrian
transport economy. ~ 50X1
SEC ET,
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 9. To au lament its o en eh! onto of rubber and tin From Southeast
A81a, a as organ ae uno rusivo movements small coastal
croft of Chinese and other foreign registries. Cargoes oP theso products,
ineigaificeat in themsolvea, are reportedly loaded at eepnrated paints
near the source areas and aoasigaed to Fictitious accounts. The oargoos
are actually transported to remote points along the China coast or in the
small ielaada within a S00-mile radius of Singapore, inhere, free Prom
surveillance, they are transshipped is Soeiet-awned and oharterod bottoms
10. 1Ae floe of ohr~e and other strafe o matoriale through Portuguese
Hest r oe pro ao be n ? eo a tieh sale of the
Hoira ~flwt{y to Portugal. Tke statue of the line is of interest to the
US baoause of these resources. A point British-Portugueao oommiasion
has been established to coordinate the operation of the railway and the
activities of the Port of Heirs until the traasfor hen been completed,
Pending fL~rther negotiations, present aerviooa will be continued under
eziating eu?rangemente. Although neither the railway nor the port
facilities are presently capable of handling available export tonnages,
llo The establishment of s orate ministries for railroads and communl-
cations is ugoa a are ec s o a aoacera over the.oritionl ooadi-
tion of transport, particularly rail. The railroads have nttraoted
public attention reoontly, due to drastic curtailments in paeaeager and
freight sarvioe. The new organisation, under which the railroads are
separated from t2re other means of oommuaioatioa (air, rivers, and high-
ways), will facilitate administretioe control ff tortant
form of transport in fie 7ugoslav economy.
12. Action ro osed b the US and DR to mew the.rail syetome of the
Bizone an o Freno ne Qorm'~6een de~erre , a to French
opposition. Hiaoaal Transport Group ropresentatir*es found the French
agreeable to surrendering operational control of the French Zones rail-
roads to the Bisottal dermas Reiohebaha. They wore unwilling, however.
Dial and general oconomio control of the lines.
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is. Resolution of the .lo standi.a eontrovers betvroea Frai[oe and thu
Bi a atra oa . over a eRp ge of Prei~st sera
will probably be prooip~tated by the fia?inenoe of the January asaeDbly
of tDe Iatos~-~&Ilied Roparationa Adminfatratiaa (IARA). Qaleae negot4m-
tioms are resaned before the aesambly aonvoaoa, the Prenah hove threatemd
to raise the issue for debate, and a deolaion is F~aaoe'o favor fe likely.
Tho ?Preaoh ooatead that the Gorman aara is Frnaao on Ve)i day mere Cos~an
external aoaets and 4herePore are now Prenoh property. if this position
is confirmed by IAR6; flhe Preaoh oonld.aubmit a a7.aim to Blsoaia for back
rental, whlah might amount to $40D000,GGO, on Pronoh aara vhioh have bees
oiresulating in Germon`y ainae the vnd of hostilities.
Confident in the strength of their position, therefore; and belioviag
that the IIS fa reluctant to risk as I.NBA decision, the Freaoh are pressing
for a solution under which the July emohaage agreemoat eould be carried
out and France mould ff-~ clear title to German Dare then re9wiaiag is
France. A portion of these care would be osohanged in as agreed ratio for
neR oars sow earmarked by 9CA for Ga:mnay. Such a.divoraian oP ACJ-
support from Germat~y to Freaoe has bey a mn~or obsective'of Prance
throu~rkout the aontrcversy. Prance Trill also undoubtedly !neiat that the
arraagementa goveraiag t!-e diveraioa oP the aert HCA aers may po~in~l~
a debit to her eventual reparatfona claims against Germany.