WEEKLY INTELLIGENCE SUMMARY NO. 43

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010043-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 43
• Publication Date: December 21, 1948
• Content Type: REPORT

Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
;s~..,:-
DD.4 ea:e~!o, 4 /.pr 77
Auth: DD_4 R=_. ^r7 1783
Date: ?, N'1 pA ~~ By: n~.
Polish plrne to increase merchant ship production to new high levels
by 1955 depend large7p upon the nveilability of steel 2nd skilled labor
ea vre11 as upon improtremc~nt is eco~aic relations between Eastern and 6sat~-
ern Etiropao (Item Igo. 1, A)
Turkey nay note turn to the .iJR for a stuKrey of its rxiriti7e industry,
because US shipping interests, upon being approached, evidenced little
iatereat in aon8ucting~such a stuo~. The US would probe6ly recoBnizo
this as an opportunity to atren~~thsa its merchant shipping position in
that area. (Item 190..2, H)
The Ganadian Govorrnaent hopes to obtain additional traffic rights
for Canedian airlines is IIS territory in connection frith the probable re~
negotiation of IIS commercial air rights in tlew?ouad7and, which wi].1 sutop
maticalIy terminate upon the impendigc; federation of Pletrfou~land Frith .
Canada. (Ytem Igo. 1, A) '
:Air Traffic .Inc., an obsciu~e oa3pargr Frith offices in Genova, has atm
teApted to purchase large quantities of aAraraft parts acrd equiXaasat
throt~h a US firm,.osteasib7y far a nma7.1, non-scheduled airline in Woatr
ern Etu'opo. In reality, however, this purchaser is a front for C$ocho?-
slovak Airlines. Ae the Flastern Powers increase their efforts to block
such shipments to CEOChoslovakia ea] other Satellite States, black nar-
lflet prices will ekyroclwt ualesa tYte USSR reverses its policy and activelq
supports the Satellite airlines by making available Soviet-naaufaoturad
~ 3 spare parts. - _ (Item 190. 2, H)
Egypt has succeeded in purchasing aircraft and military supplies in
h~arope ~ devious mesas which have itroolved violations of the UId truao
resolution by bath seller and buyer. (Item 190, 3, H)
Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
 Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
SECTION ?II. CUItREiVT ll,i'VELOPP?~~Piu
~U1tFACP iSPGc-+- 7
I. Realization of the ambitious Po=,tsh atan to oonstrnet 2Esq,000 dead.-
w0lr;ht tons of merchant shipping by 1855 will require high priority plaa-
nitsg in view of serious deficieaeies in the post-waz? Polish soono7gy, 9hort-
agoa of requ4.aite matsrfala and labor in Poland Hill retard the pro~oetod
rapid expansion of the shipbuilding industry,
Before the cmr; Poland depended upon foreign shipyards for cost of
its?oceaa-going tonnage. Lomeatic production' eeaterod at Gt~gni&, con-
afsted principally of small coastal craft and fishing.vossels. "4Jhan Po-
land received the former Gertmn yards at Danzig end Stettin (now Gdansk "
and Sczcecin) at she end of 1g45,~ abotat 75~ of their equipruent had bass
lost throuP,h Allfed bombings and_Soviet dismantlfng. Deapito UIIRRA's
goaerous oontributiona of machinery and other equipment, and tho Polish
Government's allocation of substa~ial appropriations for rehabilitation
of tho shipyards, poet-4~ar shirbuildia~ has baon confined to construatioa
end repair of sa~ll coastal and fishing voasels.
In recent months, hoeavoP, contimxed i..*.*prov6mexrt in Polish shipyards
has resulted in some output of consequence. For.exemnlo, as ooean-~oiag
vessel (3200 deadeeS.ght tone) ens lau ched in April 1gQS, the first such
launching is3 post-4'ar Poland, Soveral steel fishing nutters base recently
been nrodueod and construction of five ore and coal carriers of 2500 dead-
we4ght tone is under why, faith two of thoso vessels scheduled for launeh-
it~g bofore tho end of 1843.
Poland now haA four shipyards o: primary importance, of. which the
lart;eat is the Stocznia Oda:?ak (Gdansk Shipyard), Their preaeht statue
is as folloma: -
No. oP P aonnol Gayab lit
Stocznia Oda:~sk 4000 Construction and re~-
(Gdansk Shipyard)
pair of all types of
merchant vos~els. (1)
Stocznia Gdynia 1800 N,aior ship repairs. (7_)
(Gdynia Shipyard)
Odra Shipyard, Sezaecin - Conatrvctio~ end re-
r..air of mediwn size
vessels. (9).
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Stoct3nia Polnoonn, 7100 Construdti8n sad re-
Oda~ Pair of mediwn steel
(f7orEh?ra 3hipynrd) or t~roaden vessels.
(1) ~ bc~thS, 2 floating gooks, heavy d~-tp arenas.
2 2 maditm- floating floaka.
3 4 berths.
Tho pro~ectefl conatraation of 2di9,ooo deadvoight tuna by 19?>5 would
scare titan double the ?reaent PolSsh~P7.ag fleet. Althaagh on]S+ 10,000
tons output ?a sahedttled for 194, tho pe].tw calla for k?,~ tone ins 1?52
and a peak of 66,OD0 tans in 1855. 31nae coal and iron ose, atovinfi errirr
oipally by velar, acv respectively Polanfl's most 3.m+ortant exhort attd im-
port, bulk cargo carriers rosy bo eocpoated to aaootutt for more then 50~ of
'the planned ostatrnctioa. The provram also ~ovides for construction a.?
Several meditmr-aise aerg0 sad pasaoriQer vBSaela, as yell es A mmmb~ Of
traro:lers sad toga.
The ambitious shipbuilding Program is being accoraT+anied by acLlve
Polish cotapet;t5.oa for conatructtion on foreign 8aaotu t, F+reaumably re-
fletsting con?idenco that Polish shinyarda will haae surplus capacity af-
ter satisfying dotasetio dematx7a. Negotiations for conatr.:otion, of sma31
vowels have been aottduoted trith Turkey and several Euroix3an cotustriea,
incinding Sta>yr, Rumania and Staeflen.
~ The amerge~e of a Polish ehip".tuilding irduatry of the prorortiona
e~-tri.af cued taott7A be a considerable addition to tho merchant shipp3tg; par
tontial of. the USS$. 2t eaou7t7 be of particular value to the USSR for ~xo-
8aation of ocean-goiaB vesaols. There era, hotasver,.several eirnifiaeat
deficienaieS in the poatavar,Poliah ecosott? which will retard auah a de-
velopment sad which rc-r-der attainment of the sohedvled pro~cam doubtft:1.
These eras (a) disruption of. East-Hest trade, which prevents Poland facet
eogttiring much-needed heavy machinery ear] bther.equipt;aSt.-Pleat political oral ,economic relations in Sttrope scold
eliminato some of those problems, them appear to be no proapeata of such
a development soon ahipbuilflia,3 schedule athich Poland 50X1
has estab73ehed.
Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
 Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
2. ~teluctance on the nart~f US shi~~_exoerta to conduct a ].ong~
ramie manning surve;,r of the Turkish maritime industry may result is
oleser contacts battdeen UK arxd T,sicsy on.shipping matters. Turkay!i3
deair? for US collaboration in such a survey stems from the fact that
a sszbatantial part of the Turkish merchant fleet was purchased is the
US. After a year of unsuccessful attempts to itrtorest ttie US, Turkey
may now solicit help is the UB. There is a stror~ possibility that
the UK would reoognize.thia opportunity of strengthening its merchant
shipping position in an area where 1lritiah sh '' esthat
overshr#dowed bq US?activity in recent years.
CIVIL AVIATION
The C inn Gover~ont henna 4 nA+a4r additional traffic rights
for Canadian airlines in US territory in eonnaction with the probable
ro-negotiation of US oommereial air rights in IZewfoundlana, uhi.ch wi11
automaticallq terminate upon the impending federation of Newfoundland
faith Canada,
US airlines were granted unrestricted traffic pr3vflogea at Candor
(the onlg commercial airport in Nettfdurtdliutci regularly served by US air-
lines) by a US-US agreement in 14s`y, 1947x. A proviaiori in the agreamaat
however, renders it inarpl.icable in the @vent o? arty change in the eon-~
atitufcional status of Nerorfoundland which remoce? it from the jurisdiction
of the UK. US eommeraial rights at Gander will therefore be terminated
upon oonfodoration unless agreement is first reached with Canada for their
continuation.
On the other head, recant expansion of Canadian-flag international
air services has made the acquisition of additional commercial rights 4s
U3 territory a matter of immediate. interest to Canada, The Covern~nt
airline, Trans-0anada, has inaugurated services to Bermuda and to the Heat
Indion w'nich probably cannot be profitably operated without commercial
stops in the US. kl~thermore, Canada~e recent decioion to authorize a
private airline to develop the pro3ected route to avatralia has considers
ably advanced the date whoa a commercial atop in Fawaii will be require@,
It seems li];ely, therefore, that Canada,wi21 take advantage of its ii2-
proved bargaining position via-a-vis the US, arising out of confederation,
to press for the early ro-negotiation of its US civil air agreement,
The Canadians believe that the IIS wi11 not be twilling, as s matter of
principle, to accept modified commercial rights through Newfoundland and
that the US can therefore be i~ucod to liberalize Canadian rights through
US territory. 50X1
~ i
' Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
 Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010043-8
SE
~,, ~zechaslovak A4x]].Snos,f,CSA),operates a]moat em+lusively US-type air-
craft, and is depanderst on outafdo sources for spare parts. Czeehoslova-
lda is therefore attempting to acquire IIS-~anufaatur++d aircraft parts and
equipment in k'estern Europe. The US and tJeatern Europoan goverrmenta, how-
ever, oppose the sale oP nviation materials to the So?~~iet-Satelli.tea.
6fr Traffic Inc., an obscure compagy frith offices in Geneva, has at-
tempted to pin?chase Large quantities of aircraft parts :+nd equipment
through a 1TS firm, ostensibly for a small, non-sehedulec airline in t.'est-
ern Europs. Tn roality, howover, this purchaaor is a fr