WEEKLY INTELLIGENCE SUMMARY NO. 78

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000300060014-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: October 20, 2000
• Sequence Number: 14
• Publication Date: September 6, 1949
• Content Type: SUMMARY

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ONFiDENTIAL
OFFICE OF REPORTS AND ESTIMATE i
State Dept. declassification & release instructions on file
Weekly Intelligence Summary No. 78
SECTION I. SUMMARY OF TRENDS AND DE 0P EE.NTS
25X6A
6 September 1949
A recent Peruvian decree-law, which authorizes construction of
a standard--gauge railroad from the .,ides Highland to a navigable tribu-
tary of the Amazon River in eastern Peru, reaffirms Peru's sovereignty
over its portion of the upper Amazon Basin and will aid in the develop.-
ment of this area's rich natural resources. The railroad will run from
a point (Tambo del Sol) on the existing Cerro de Pasco Railway in the
northern portion of the Andes Highland to Pucallpa,, on the Ucayali
River, a navigable tributary of the Amazon. Preliminary surveys and
detailed studies are expected to require nearly three years, and the
limited funds which are available will probably preclude completion of
the project in less than ten years. (Item No. 2, B)
Additional information on the participation of US tankers in
Soviet trade (see TG Weekly No.-75) has been received from the US
Consul and the Assistant US Naval Attache at Singapore. (Item No. 3,A)
The impasse which was reached in 1948 during US-Mexican negotia-
tions for a bilateral air agreement (see TG Weekly No. 20) will
probably continues despite a belated reply to President Truman's per-
Isonal appeal to the President of Mexico for a resolution of differences.
The delay of twelve months in answering this gesture and the negative
nature of the reply merely underline Mexico's present lack of pre.
occupation with the problem of Mexican air rights for foreign carriers.
(Item No. 4, B)
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SECTION II. CURRF NT DEVELOPMENTS
SURFACE TRANSPORTATION
2, A recent Peruvian decree-law, which authorizes construction or a _
standard-gauge rat road rom the Andes ighland to a navigable tribu-
tary of the Amazon River in eastern Peru, reaffirms Peru's sovereignty
over its portion of the upper Amazon Basin and will aid in. the develop-
ment of this area's rich natural resources. The railroad will run from
a point (Tambo del Sol) on the existing Cerro de Pasco Railway in the
northern portion of the Andes Highland to Pucallpa, on the Ucayali
River, a na-ri ;able tributary of the Amazon.
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The decree--law defines this project as a national necessity,
obstruction of which on the part of government officials "will entail
grave responsibility before the nation." The preamble cites the
necessity of tapping the wealth of this area - its lumber, petroleum,
metals, and agricultural products.
Beginning in 1950, 20 percent of the revenue of the Government
Tobacco Monopoly, estimated at 17 million soles (about $850,000)
annually, and income from the sale of state-owned lands adjacent to
the right of way will be assigned to finance the new project. After
June 1950, it is expected that 12 million soles annually can be made
available from the "pro-unemployed" funds.
The recently completed Central Highway of Peru already connects
Pucallpa with the Andes Highland. The decree-law asserts, however,
that only by railroad construction can the transportation facilities
be provided which are necessary to support colonization and exploita-
tion and to make the area's products accessible to markets. The rail
route, moreover, will traverse an area well to the southeast of the
highway. Preliminary surveys and detailed studies are expected to
require nearly three years, and the limited funds which are available
will probably preclude completion of the project in less than ten
years? (Unclassified)
3. Additional information on the artication of US tankers in
Soviet trade see TG Weekly No. 75 has been received from the US
Consul and the Assistant US Naval Attache at Singapore.
According to the Master of the St. Christopher, his vessel was
chartered for one trip by Stevenson, Hardy, and Co., London, on 30
June, the vessel to carry a cargo for Sojusneft Export and Sovfrakht.
The St. Christopher loaded 15,0()0 tons of kerosene on 8 August at
Constanza for complete discharge at Dalny (Dairen). According to the
Master, he received cable instructions from his principals to put in
at Singapore for capacity bunkers and a supply of water, although he
had previously advised his principals that there was no logistic
reason for calling at Singapore. On arrival, he was advised that
after discharge of his cargo at Dalny, he would load 10,000 tons of
,crude oil and 1,000 tons of gasoline for Vladivostok or Nakhodka,
stopping en route at Wonsan, North Korea, for unstated reasons.
Upon completion of this run, the Master of the St. Christopher ex-
pects to call at the Persian Gulf, loading cargo for Naples or
another Italian port.
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The Master has also reported tYa t one additional US tanker and
two US-owned Panamanian-flag tankers, which have been chartered for
the same trade, have already left Constanza for Singapore. While it
is possible that he was referring to the Kettleman Hills as an
additional US tanker, this is the first mention of any Panamanian-
flag tankers in this connection. Participation of Panamanian-flag
vessels, however, has not been confirmed from any other source.
Meanwhile, according to the US Consul, the Master of the Kettle-
man Hills has confirmed that his vessel is under charter to the'
Soviet-Rumanian Transport Company. It is further reported that the.
crews of the tankers in this trade are unaware of their real destinaa
tions until their vessels are about halfway through the contracted
trips, when they are told that telegram or radio orders have been
received changing the originally announced itinerary. The crew of the
St. Christopher was particularly uneasy when advised tla t their
vessel was headed for Soviet ports. The Consul further indicates
that it is "common knowledge" among the Masters of these vessels that
Chinese interests are involved in the movements of US tankers from the
Black Sea to the Soviet Far East. (Secret)
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