WEEKLY INTELLIGENCE SUMMARY NO. 77

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010072-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: September 24, 2013
• Sequence Number: 72
• Publication Date: August 30, 1949
• Content Type: REPORT

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'TRANSPORTATION GROUP
OFFICE OF RETORTS AND ESTIUTES
CENTRAL INTELLIGENCE AGENCY
WORKING PAPER
NOTICE: This document is a working paper,, not
an official CIA issuance. It has been co-ordina-
ted within ORE, but not with the IAC Agencies.
It represents current thinking by specialists in
CIA, and is designed for use by others engaged
in similar or overlapping studies, The opinions:
expressed herein nay be revised before final and
official publication. It is intended solely for
the information of the addressee and not for
further dissemination.
gP APT
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STAT
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?410 Wr N60
OFFICE OF REPORTS AHD ESTIMATES
TRANSPORTATION GROUP
30 August 1949
Weekly Intelligence Summary No. 77
SECTION I. SUMMARY OF TRENDS MID DEVELOPMENTS
The potential of aircraft as a moans for the clandestine trans- V/
portation of embargoed products from Western Europe to the Satellite
States and sensitive areas in the Near East continues to be exploited
by countries in the Soviet orbit. (Item No. 1, B)
In an effort to circumvent Greek and Italian prohibitions of
Czechoslovak oomMercial flights to the Near East, the Czechoslovak
airline (CSA) may attempt to inaugurate scheduled air services to
Israel via Albania. (Item No. 2, B)
The first incidont involving major interference by Chinese
Nationalist natal craft with US vessels entering "blockaded" ports in
North China may shortly eventuate if the US-flag Isbrandtson Line
carries out its intention of sending two freigbters to Shanghai. Any
move by the Chinese Nationalist Government against a US vessel
trading with Communist-held ports .would inevitably bring to a head the
question of the legality of the Nationalist "blockade." It might also
require the US Government to take official action on the "blockade"
and commit itself to a specific policy regarding trade with Communist
China. (Item No. 3, B)
The :lisinclination of the Netherlands Goternvient to permit _
any major construction of aerchmt vessold in its shipyards for the
USSR is reflected by-current shipbuilding activities in the Nether-
lands. Although the trade agreement concluded in June 1948 between
the Netherlands and the USSR included a clause providing for the
negotiation of shipbuilding contracts, there is still no activity
whatever in Dutch yards for Soviet account. (Item No. 4, B)
Document No. 01
NO CHANGE in Class.; 0
9k DECLASSIFIED
Class. CHANCED TO: TS S
DDA Memo, 4 Apr 77 ?
SIN.1137 ?
Auth:
1 Mrt t6 BY: 674
DDA REG. 77 1763
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SEC A'
SECTION II.
2
CURRENT DEVELOPMFAITS
CIVIL AVIATION
The pntnntinl rif Ai rryn ft nr, a means-fox-the c clanits:kse_tnts or-
atioa..pnoducta2roz Igstern Europe Sa..the Saitpllites
States and sensitive_areas-ip,, the econtinueSstostap_aaL_Thied_
by countries in the aciaiet orbit,..
Throughout 190 tbia I:main was noted_princiAglY in the CELUS2h-
tag, of arms and airmanAlkon as well as complete nistern,C;tasasrael in
violation of the UN Truce. utb, the tabli ant' o controls szer
exports to Eastern Europo in conn8't6nhvith the EGA program: gnd
Linlialainen19-119U-41-110 jdatilgsgat.- faatAY--dern. gugavia_tiga_e/aL4- 11.1 leTZ-11-11.9
the Satellite countries, efforts to. transport such contraband by air-
craft ancear to lAave increased.
? The Mrlift of proscribed goods to Eastern Europe is orr,a_nized.on
an intern _ -scalOa This is borne out by a report from-a reliable
Source to the effect that large shipments of roller bearings from Italy
are flown out of Zurich to Prague for distribution to Ruthenian in-
dustries.01-hhis tresSfjp_ismaimatosi_to_hoataled approximately 200
tops Juring_tbo_pericd-RebruarytMay_12.49.SJ41-e9.0nSinI4a.
It has long been known that Western embarvaos_baac-craaiksi an 0-
creasingly serious supplysblivo fnr the most important Satellite
airline. CSA of C2e0boalevakia. In spite of its difficulties, however,
this airline has ataintained its extensive international .schedules.
Apparently CSAIllan carefully orgSifott to acquire spare
parts and replacements through_olandestiameans. Flight craws are
- encouraged to obtain such material when they call at Western airfields.
STAT
.Anather-organization.appanontly-attempting-to-evade-Westank
export controls is the Polish Airline (L02), which flies an inter-
national?le-a e 1T6in Warsaw to Paris. Despite the low traffic potential
(passenger loading averages only SE percent of capacity), LOT is
RET
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attempting to secure French permission to 'double the number 'of flights
?each month. coincidentally'reports indicate that undercover arents
are beinr establishvl-im-Switser anii-en&France to procure Busied .
AYiation equipment and blind flyin instrumonlip_ammtly needed by the
Pelish civil airline. .j e im.h.Siaorce. (Secret)
2. In an effort. to circumvent Greek and Italian prohibitions of
Czechoslovak commercial flights to the Near East, the Czechoslovak air-
line (CSA) may attempt to inaugurate scheduled air services to Israel
via Albania. CSA is reportedly modifying its Soviet-built IL-12 trans-
ports (presumably to increase their range capabilities) for operation
'between Prague and Lyddaduith stops at Tirana and Nicosia. Although
the prime motive for the reported Czechoslovak move may be the restora-
tion of GSA's former lucrative air traffic to and from Israel, the new
routing may also be designed to supplement?the USSR's' airlift opera-
? tioneto Albania, or to replace such operations should the present Tito-
Cominform rift lead to the cessation of Soviet flights across Yugoslav
territory. (Secret)
SURFACE TRANSPORTATION
ob.
3. The first incident involving mal.36VI interference by Chinese
Nationalist naval craft with US vessels entering "blockaded" ports in
North China may shortly etentuate,if the US-flag Isbrandtsen Line
carries out its intention of sending two freighters to Shanghai.
Acobrding to the company's agents in Manila and Shanghai, respectively,
one vessel on 26 August was .loading cargo. in Manila "consigned to
North China ports and Shanghai", and another vessel is scheduled to
arrive at Shanghai about 9 September.
On 25 August a Chinese naval craft prevented a British 'merchant
vessel from entering Shanghai. The Chinese Government appears to be
informed of Isbrandtsen's intentions, because the First Secietary of
the Chinese-Legation ii:Manila has requested information' on the
matter from US Ribassy Manila, stating that if it were trite "that this
American vessel is proceeding to North China, this is very interesting."
Any Move by the Chinese Nationalist Goeverninent against a US vessel
tiading with Communist-held ports would- inevitably bring to a head the
question of the legality of the Nationalist "blockade." It might also
require the US Goverment to take official action on the "blockade"
and commit itself to a specific policy regarding trade with Communist
China. (Confidential)
SET'
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C?.. --
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%ad
4. The disinclination Of the 46Lherien4a? GOvernment to pendt
en, major construotIon ci merchant. vecale4anticitts"ehilildrdirfOr-Tthe
USSR is refledted by-entrant shipbuilding: aotivition'aiVifiet:ihitHeii:
lands. Although .the trade .agreement. Concluded in June '1948 betWeen
the :Netherlands and tho USSR included A clause' providing, for the' '?
negotiation of shipbuilding eoptiobts, there is still no activity
whatever in Dutch yards for Soviet account. The following list of
contracts in the Netherlands fort countrida in, Eastern Europe reveals4,
moreover, that Poland. and Czechoslovakia, -through which the USSR -
.might have attempted to plane dummy Orders, will receive very little
under current contracts..
?
By contrast, construction for ElrodOh and Yugoslav account, which
will not improve the Soviet position under" existing politiaal circum.
stances. is substantial. The group of large' end modern froi4lit and
passenger ships, for example, Will provide an important qualitative
improvetent in the 'merchant shitYpizig?pasitien of Yugoslavia by the end
of 1950. ..1Canfidential)-
.; ?
?
SNIPS UNDER CONSTRUCT/ON .OR UNDER CONTRACT IN TEE
NETHERLANDS' FOR EASTERN EUROPE AS OF 20.3.11NE 1949
CONTRACT
NUMBER AND TYPE
PRICE
PROBAIE,E
OP VESSEL.
SIZE (11,0111/13)
DI VERY DATE
Concheslovalda
._ .
10 barges
726 ton 10$20.000
?
a-
Finland
1 coastal cargo
826 ton 676.000.
0.49
1. coastal cargo
826 ton ? 820,000
Au.49
1 cargo-pass. .
4000 ton 3.842,900
D.49 .
1 ?ergo ?
6000 ton 5,826,000
5.50
1 cargo
860 ton 814,750
0.49
1 cargo-pass. .
4000 ton ? 4,193,400
'
.
0-60
2 Dump. bargee
....
-
Au-49
_62.0.00
T6,224,460
'
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te.IT sta
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SHIPS' UNDER :CONSTRUCTION OR UNDER d&TRACT IN WE
? NETUERLANDSirOR EASTERN EUROPE AS OF 20 JUNE 1949' ?'
(oont'd)
CONTRACT
NUMBER AND TYPE ?
PRICE
PROBABLE
OF VESSEL
SIZE
(FInnT01)
DELIVERY DATE
Poland
3 pilot boats
? 273,681
Je-D.;49
5 double screw
tugboats
600 hp.
3,612,625.
Je-D-49
.8 single screw
.tugboate'. ?
250.hp.
2,714,552
Je-D-49
.2.ioebreakere
400hp.
1,5120050
Je-D-49
? 2 harbor tug-
boats
435 hp.
1,492,000
Je-0-49
4 pontoon
? cranes
3,366,000
Je-D-50
12,860,908
Yugoslavia
?. . .
- , ?
,
i Cargn-paas.
9106 ton
6,836.000
0-50
1 eargo=pass.
9100 ton
6,836,000
N..60
1 cargopass.
3900 ton
4,272,800
F-50
1 targo4pass.
3900 ton
4,212,800
0-50
cargo-pass. 1 c a
0000 ton
4,627,800
Jy-49
1 cargo-pass.
8000 ton
4,034,000
F-50
4 motors
4900 hp.
5,750,000
N^51, Mr-62
1 floating
derrick
350 ton
10460,000
0.49.
42,232,200.
Totalt 7206370568
US. 027,311,722
?
SE3T
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