(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A006100020067-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: May 28, 2003
• Sequence Number: 67
• Publication Date: October 11, 1950
• Content Type: SUMMARY

ocT 1950
Approved For Release 2003/07/30 PcA-RDP78-01617A006100020067-6
48032 T o.? ? E T
GENERAL
1 o ,:MacArthur's views on, Korean elections --According to
Colonel Katzin (UN Secretary General Lies lpersoial re-
presentative with the UN Commission on Korea), General
MacArthur has expressed the belief- that it is important
to hold elections in Korea as soon as possible' Viand by the'
end of the year at the latest. MacArthur -is' confident he
can handle the situation until the elections without imposing
military government & Bin an obnoxious way" but he feels
that, from an overall security point of view, it will be..much
better to have early elections so that the Koreans may take
responsibility for their own, affairs at an early date. Katzin
commented that he did not see how elections . could be held
as soon as MacArthur desired, but he agreed that, elections
should be held as soon as possible.
2. Conflict may develop over Yalu River;power Plant-.-US Embassy
Moscow expresses the opinion that the imports i Suiho hydro-
electric plant located on the Korean side of the Yalu River
(which constitutes the Korean-Manchurian border) will "'doubt.,
less"" become a source of conflict involvingKorean, Chinese,
and Soviet interests. In support of this view, the Embassy points
out that: (a) the plant was originally built by the Japanese and
designed to, supply both Korea and a part of Manchuria; and
(b) through a Sino?Soviet trust, the plant recently provided power
for the Liaotung Peninsula, where Port Arthur and Dairen are
located. The Embassy feels that the Chinese Communists may
be tempted to occupy the plant to protect their interests, with
the resultant danger of a clash between Chinese and UN forces.
Document No. 00
JCS review(s) completed.
STATE review(s) completed.
NO CHANGE in Class.
11
Ej DECLASSIFIED
Class. CHANGED TO:
TS
IfDA Memo, 4 Apr 77
Aut12: DDA IpG. 7~gg
Date: 7~.
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3. INDONESIA. MDAP aid rejected--US Ambassador Cochran
in Jakarta was informed- by Indonesian Foreign Minister Rum
that Indonesia does not wish to receive military aid through
MDAP. The Foreign Minister emphasized that this action
was not indicative of an unfriendly attitude toward the US but
derived primarily from his government9s fear that- (a) accep-
tance of MDAP aid would be widely criticized by Communist
countries as an indication that Indonesia "had taken sides'';
and (b) domestic opposition to the terms of an MDAP agree
meat might result in the overthrow of the present Cabinet,
which is already facing a critical vote of confidence. In re-
sponse, Cochran pointed out chat the Indonesian plan to pur-
chase badly needed military equipment on the US market might
be impossible as supplies were limited and allocated in advance.
4. INDOCHINA: French reverses serious--US Consul Blan.cke in
Hanoi. transmits an estimate
that French forces are having the fight of their lives"
in the Sino-Tonkin border area northeast of Hanoi.
French troop reserves in Indochina
are practically exhausted and here are only 400
combat troops left in Hanoi. Blancke admits that Hanoi may be
danger, but he does not feel the Viet Minh are "now organizing
a putsch. b y
Meanwhile, as an indication of the seriousness with which
the French Government views the military situation, Minister
for the Associated States of Indochina Letourneau and General
Juin, Commander of French Forces in North Africa, are reported
to be leaving immediately for Indochina for an on-the-spot inspection.
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(CIA Comment. The. sudden deterioration of the French
military position along the China border is probably the result
of: (a) effective concentration of Viet Minh forces; (b) excellent
Viet Minh intelligence on the timing of the French evacuation of
the anchor post at Caobang and (c) poor French reconnaissance.
Loss of the French border posts will greatly facilitate the move-
ment of heavy equipment from China to the Viet Minh.)
5. KOREA- Dismantling of industries by Communists--US Ambas-
sador Muccio in Seoul reports that at the time of the UN landing
at Inchon, the Communist invaders had been engaged in extensive
dismantling of industries located in the Inchon-Seoul area. Among
the industrial equipment observed to have been in process of re-
moval at the time of the Communist retreat from Seoul are textile
machinery, transformers at the Tanginri steam plant, and machine
tools of all types at factories located in Seoul, Yongdong Po, and
Inchon. Muccio adds that machinery and parts still on premises
or in vicinity are being reinstalled.
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