OFFICE OF CURRENT INTELLIGENCE DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000100300001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 27, 2016
• Document Release Date: July 16, 2012
• Sequence Number: 1
• Publication Date: April 4, 1951
• Content Type: SUMMARY

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COPY NO.
CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
DAILY DIGEST
Date: APR 4 1951
NOTE: 1. This summary of significant reports hae been
prepared primarily for the internal uce of the
Office of Current Intelligence. It doe not
represent a complete coverage of all current
reports in CIA or in the Office of Current
Intelligence.
2. Comments represent the preliminary views of
the Office of Current Intelligence.
3. Marginal letter indications are defined as
follows:
0101
0011
- items indicating Soviet-Communiet
intentions or capabilities.
important regional developments
not neceesarily related to Soviet/
Communist intentions or capabilities
other information indicating trends
and potential developments
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"B"
TABBB
SECTION 1 (SOVIET)
USSR. ILaiLtaLsjsm_Eltctal_lp Mbscgw Party_gmmitIee. Lieut. Gen. VassilY
Stalin has been elected a member of the Moscow Party Committee. He is
cammanuar of the air forces of the Moscow military district.
COMMENTs From this report, it is not clear whether Vassily
Stalin has been elected to the Moscow Oblast or the City Committee. This
post is mainly an honorary ones since real authority is wielded by the
local Party secretaries. However, it represents Vassilyls first Party
position.
EASTERN EUROPE. Satellites Transmit MosspaluktgaL.Ida to Balhana.
Moscow is gradually increasing the amount of time
reserved on satellite medium wave stations for the relaying of Moscow
broadcasts in Serbo-Croat, Slovene, Macedonian, Greek, French and Italian.
The Satellite stations thus pre-empted transmit their own Home Services
until late afternoon and then piek up Moscow transmissions for the balance
of the evening, Radios Sofia, Bucharest
and Nyiregyhaza (Hungary) receive five hours of moscow relays daily. Two
Czechoslovak stations are similarly used for a combined total of four
hours daily.
CZECHOSLOVAKIA. Czechosjalzak Appaekdorp Not to Return to Washinpton and
,ondon. The US State Dept was notified informally on 3 Apr by the Czecho-
slovak Charge dlAffaires that Czechoslovak Amb Vladimir Outrate would not
return to Washington. According to the US Emb in London, the furniture of
Rudolph Bystricky, Czechoslovak Pb to Great Britain, as well as that of
the Czechoslovak MA, has been remrwed from their residences. The English
press has reported that the Amba family will leave London shortly, but
this information has not been confirmed by the US Emb,
COMMENTs All except one of the Czecho-
slovak Ambs who had apparently been recalled to Praha just prior to the
public announcement of the Clemeatis conspiracy have now either defected
or been relieved of their assignmont.s.
The exception is the Czechoslovak Amb to Argentina, Alexander
Kunosi, currentlyheading the Czechoslovak delegation to the UN ECOSOC con-
ference in Santiago, Chile. It is probable that he will defect rather than
return to Praha.
"B" POLANEI. kumandsaieetirielf.101:1S-Peshed. The leading Warsaw newspaper
"MOTE WARSZAWY" on 2 Apr featured a speeon by Otto Grotewohl strongly
supporting a Polish-East Gorman rapprochement at the second annual con-
ference of the Ge an Polish Friendship Society in Berlin. Grotewchl
condemned the Oder-Neisse boundary "revisionism" of the Western Powers
since Potsdam, and dwelt on the need for consolidating Polish-German
friendship as a vital element in the struggle for peace. US Emb Warsaw
noted that the most significant point made by Grotewohl as regards Poland
was his declaration that any attack on the Oaer-Neisse frontier wapld be
considered an attack on the German nation.
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COMMENT: The current gathering sponsored by the Polish and East German
regimes marks a continuing Communist effort to allay the deep-seated
suspicion of the German an Pole for one another. A number of references
in Grotewohl's speech hint that this deterrent to a Polish-East German
rapprochement has not been significantly altered by Communist efforts.
YUGOSLAVIA Hun arians Withdraw Char 1 from Be rade. The Hungarian
Government has withdrawn its Charg d'Affaires, Istvan Hrabec, from
Belgrade for medical treatment; it demanded "full satisfactionflifrom the
Yugoslav Government for an alleged physical attack on the Charge. According
to the Hungarian stor5vthe ChargA and his chauffeur were attacked and badly
beaten up without cause by UB officials and militiamen. The Yugoslays,
however, claim the incident resulted from a traffic accident involving the
Hungarian diplomat. The Yugoslays maintain that the street fight which
followed was deliberately provoked by the Hungarian representative in
order to show his ill will toward Yugoslavia. CONNENT: 25X1
The Yugoslays recently ousted the Bulgarian ?hare for subversive activi-
ties /and closed the remaining Soviet
Consulates in Yugoslavia / Other Satellites 25X1
may follow the Hungarian precedent, thereby reducing Satellite representa-
tion in Yugoslavia to an even smaller number.
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SECTION 2 (EASTERN)
RI C
AUSTRALIA, Government Stresses Anti-Communist rimmaln_uagAims_tamign.
Prime Minister Robert G. Menzies, opening the Liberal-Country Party's
election cmapaign in Melbourne, emphasized that the attack on Communism
would remain the Governments chief preoccupation. Referring to the High
Courtcs recent invalidation of the Communist Party Dissolution Act,
Menzies declared the Government either will ask the states to transfer
the necessary powers for anti-Communist legislation or propose an amend-
ment to the Commonwealth Corstitution. COMMENT: With
the Liberal-Country Party basing its campaign on anti-Communism and the
Labor Party centering its attack on the Governments inability to halt
inflation the primary issues now appear
to be clearly. defined.
"WI BURMA KMT Timp_z_lp. Burma Cause Concern,?
that some 3000 KMT troops who have been taking refuge in
Kengtung state since last summer are moving northward to the Sino-Burmese
border in the Wa states. He believes it probable that Chinese Communist
forces opposite Wa and Kengtung (numbering 4-5000) are aware of this move-
ment. GOB officials have long been concerned over the presence of the
KMT troops in Burmese territory, fearing that those units might provoke
Chinese Communist forces to cross the border against the KMT troops or
demand that they be disarmed. It would be difficult for the weak Burmese
forces to disarm the KMT and therefore the GOB is considering an appeal to
the UN in case of a Chinese Communist protest or demand for Burmese action.
COMMENT: The Burmese
C-in-C, in particular, whose troops were committed to containing insurgents
in other areas, was concerned at the entry of the KMT remnants last summer.
At that time, the GOB sought to obtain an order from
Taipei to the KMT commander that his forces surrender to the Burmese or
evacuate Burmese territory. Taipei subsequently issued an order to
evacuate but it was ignored. Burmese reluctance to publicize the presence
of the KMT troops has heretofore served as a deterrent to a request for
UN action?
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CHINA. Views of Former UK Cher gg in Peiang. US Consul General in Hong Kong
reports a conversation with Sir John Hutchison, UK Charge in Peiping for
the past year. In regard to the Korean conflict, Hutchison feels that
(1) fear of US intentions toward China was an important factor in Chinese
intervention in Korea, (2) the USSR will come to Peipings aid if Chinese
territory is attacked, and (3) Peiping will not reduce its terms for a
Korean settlement, although heavy Chinese losses might lead to an unde-
clared cease-fire restoring the situation prevailing before June 1950.
Regarding Slno-Soviet relations, Hutchison, noting taut the Soviets
flare not mach in evidence" in Peiping, states his belief that Peiping is
unlikely to submit to Ru-sian dictation, and that Western pressure on
Peiping forces the regime into increasing dependence on the USSR.
COMMENTS Hutchisonps views are largely in accord with the
UK's China policy, which has been explicitly based on the premise that
Western hostility to Peiping would force the regime into an unnatural
dependence on the USSR. In recent months, as belief in the solidarity of
the Sino-Soviet alliance has grown, the primary consideration has been
the desire to avoid an all-out war with China. Most observers have long
felt that Communist ChinOs adherence to the Soviet bloc has been willed,
rather than compelled, as the fundamental tenet of an orthodox Stalinist
leadership.
Arrest of Foreign.Natintlishai.
18 foreign nationals, including one American
by. the Shanghai authorities in early March0
were arrested
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"Cu
ManchurtaLtst Chinee OuErena. A Hong Kong Communist news-
paper features an article from Peiping which states that, effective 1 April,
the Manchurian and Inner Mongolian currencies will be recalled and
replaced by the regular Chinese currency. After 30 April the old
Manchurian and Inner Mongolian currencies will no longer be allowed to
circulate in the market, COMMENT: The
difference between the currency systems of Manchuria and China Proper
has in the past been cited by some observers as one of the evidences of
the special status of Manchuria as a Soviet sphere of influence, only
partially subject to Peiping authority. Nevertheless, the movement
toward currency unification has been evident for some time. Last summer,
circulation of the special Port Arthur-Dairen currency was stopped. In
February, the Nationalists stated that a Communist order provided for
currency unification by the end of 1951. The particular details with
respect to dates which are given in the Hong Kong press article, however,
should.. be treated with reserve, since there has been no direct informa-
tion from the Chinese Communists themselves, e.g. in the form of broad-
casts, announcing the currency unification.
KOEA. Possible Soviet Jet Bomber aighted over Northeast Korea. On 29 March
a twin-jet bomber, silver in color, was observed traveling at 400 miles
leer hour over northeastern Korea west of Songjin. Altitude or direction
of flight was eot reported. A field comment observes that the aircraft
recembled a US B-45 jet bomber, but no B-45 was 'erorted to be in the
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area at the time of sighting. COMMENT: This 25X1
sighting was evaluated in the field as "possible Soviet type 27 aircraft".
This is the first reported sighting of an enemy jet bomber in this area.
JAPAN. 2121n.lon Sury2z_oEar_tz P2pularity. YOMIURI, influential Japanese
daily, has revealed present party popularity,as indicated by a public
opinion surveyi pointed to the coming local elections. YOSHIDA?S
Liberal Party was favored by 48.5 percent of the voters while the Socialists
were supported by 32.5 percent. the Peoples Democrats by 12.3 and the Commu-
nists by 2,4 percent. COMMENT: As far as can be
determined this far before the election, the survey appears reasonably
accurate. While these are local elections, considerable interest is
being shown because they will be widely interpreted as a test for
YOSHIDAls pro-US policy as opposed to the Socialist neutrality theme.
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SECTION 3 (WESTERN)
Press Report of Plan for Expansion of East German Aler%
Police DiscaEfa:- 7Egaing
Z3n7Thse7=35 column of 26 March, discount the statement that an
order "to call up 200,000 additional recruits" for the East German
Alert Police had been given and was canceled "at the last minute"
during January by the Soviet Kommandatura. US officials doubt that
the alleged plan ever existed but state that, if it did, it has
almost certainly been abandoned,since (1) the cadre for the Alert
Police is not yet sufficiently trained to absorb anywhere near this
number, (2) barracks, training areas, uniforms, and weapons for a
force of this size are not available and (3) recruitment of 200,000
men at this time would have a serious effect on the 1951 GDR production
plan and probably on the GDR five-year plan.
COMMENT: The present strength of the Alert Police is
approximate17-717560. Primarily?for the reasons cited above, it i8
considered highly unlikely that the force will be significantly
expanded for at least six months.
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ITALY. Communists Offer to Return to the GovernmenI. A bid for the
17n-7.11. o ie I a Ian onmunisPTity-Trctrro=overnment, was
made by Togliatti at the inauguration of the partyos national congress
in Rome, almost simultaneously with the announcement by the right?
wing Socialists (PSLI) that they will leave the Cabinet at once to
effect unification with the Unitary Socialists (PSU). The Communist
leader declared his partygs participation in the Government was
necessary to re-establish peace between the warring political parties
and to carry out social reforms. In his speech he hinted that the
Communists would consider an understanding even with the De Gasperi
Government if it "changes its foreign policy".
COMMENT: Premier De Gasperi? who expelled the Communists
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tic II
from the Cabinet in 1947 as trouble-makers, is unlikely even to
consider Togliattigs bid. This offer is undoubtedly part of the
Communist campaign to win the support of nationalist elements for
their "peace" offensive. Coming at this time, it reflects the desire
of the POI to profit propaganda-vise from the dissension within
De Gasperigs Christian Democratic Party and, now, from the un-
certainty caused by the departure of the Socialists from the Cabinet.
DENMARK. Growing Public Support for a "Neutral" Germany. The
o e ocia Democra ic PIRTIETTaiagrNIEW Minister,
Hans Hedtoft, has informed the US Ambassador that support for the
idea of a "neutral" Germany shows some signs of increasing in
Denmark. Hedtoft, who expressed concern over the apathy and indif-
ference of the West Germans he encountered during a recenf visit
there, reiterated his personal belief in the necessity for rearming
Germany and integrating its forces wth those of western Europe.
COMMENT: Most Danes have
recognized the need for a strong and d;g7Firic Germany integrated
into the West European defense system. Many, however, still latently
fear German aggression and are susceptible to proposals to neutralize
Germany, feeling that a "neutral" Germany poses less danger than a
situation characterized by two armed German states or a Germany
dominated by the USSR.
UNION OF SOUTH AFRICA. Government Refusing to Send Ground Troo s to
FR'ea. eEATIfiEg5nexteriiriCrEFTRe. UnrfETOn ri u e groun roops
VS-a-proposed Commonwealth Division for Korea will be rejected by
the South African Cabinet0
that, while a few staff officers
will be offered, South Africa cannot afford the casualties suffered
by ground troops. Du Toit added that, even should world war break
out, the Union would prefer not to send infantry to *hp thpai-rp
of operations0
at present no regular army iorce
brigade is at less than half its
has
to send, since its one organized
authorized peacetime strength.
COMMENT: Du Toitgs informal
declaration of the Uniongs reluctance 7637g7 troops abroad in a world
mar gives further substance to BritaieVs recently expressed fears
that South Africa may not carry out its agreement to supply one
armored division (without equipment) for the defense of the Middle
East in time of var. Strong
isolationist sentiments among Prime Minister Malangs supporters have
helped keep the Uniongs defense expenditures very low. Even though
the recently announced defense budget for 1951 is twice last year's,
it is still far from adequate to build up or equip a force com-
mensurate with the Uniongs Middle Eastern commitment. A large
portion of the increase will go to maintain the South African air
squadron in Korea.
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PERU. Peruvian Acrimony toward Chile. One of the most important
Peruvian nemepapers s a es a jr6F-amost a year the Chilean
President has been giving consideration, behind the back ad without
the knowledge of the Peruvian Government, to the question of a
Bolivian outlet to the sea, and that this fact can only be interpreted
as an action injurious to Peru. General public reaction is supporting
this stand. Although the situation may prove transitory, the matter
is causing considerable acrimony toward Chile at present.
COMMENT: The Bolivian corridor question concerns
the territory on the Peruvian-Chilean border, which was the subject
of bitter contention between Chile and Peru for half a century, from
the War of the Pacific (1879-83) until an agreement was finally
reached in 1929.
COSTA RICA, Government Moves Against Revolutionary Grciu . The Costa
EaTbavernmen as arres e a es ive o owers o revolutionary
leader Rafael Caldertn-Guardia in connection with a series of bomb
explosions which are said to have been preliminary to a simultaneous
explosion of many bombs and possible street fighting. The Government
said that arms were to be floyn in from Mexico. Following the arrests,
another bomb was exploded outside a major motion picture theater.
COMMENT: The arrests were made a meek
after the last of nine unexplainTromb attempts (the first was in
early January) against public figures and government officials. The
victims were of such diverse political orientation that no pattern
of intent was obvious? except possibly the desire to create fear and
confusion as a build-up for some major political or revolutionary
move. Exiled Calderonistas in Nicaragua have been attempting to
collect arms and organize an uprising for the past two years, but
have never reached a degree of organization sufficient to insure
success.
"C" BOLIVIA. Paz Estenssoro to Return to La Paz on 5 April. On 3 April
con ie that Victor
PaeEstenssaro, presidential candidate of the extreme rightest MNR
opposition party, will return to La Paz on 5 April. A crowd of at
least 1,000 is expected to greet him. Paz' return from exile has
been authorized by the Government "without prejudice to his position
vi8-a-vis the courts," where charges remain outstanding against him.
ZEUITSTEa Paz doubts that Paz will be arrested at the airport, but
considers it possible that Paz may be arrested a day or two there-
after "at the request of some judge."
COMMENT: MNR leaders are suspicious that the Government may have
!EY= Paz into returning in order to arrest him and to prevent
his running in the 6 May elections. The MNR is convinced that it
will min if honest elections are held. If it appears that Paz will
be prevented fram running, the MNR may again resort to revolutionary
activity.
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DAILY DIGEST SUPPLEMENT
APR 4 1951
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CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
DEPUTY FOREIGN MINISTERS! CONFERENCE
"A" Western Disagreement over Latest Soviet Proposal. At a meeting of the
Western delegates on 3 April, the chiefs of the UK and French dele-
gations initially indicated a willingness to accept the Soviet proposal
of 30 March that the NAT and US bases be included in the agenda, while
the chief of the US delegation expressed his personal view that the
West could not accept the proposal. Although the French were brought
around to this view, the chief of the UK delegation remained opposed
and stated his intention to consult London in the matter. It was a-
greed, however, that: (I) the Western powers would ask Gromyko for a
"further reply" on the new complete agenda presented by the West on 2
April; (2) counter-moves would be considered, such as proposal of an
item on Soviet support of armed aggression; and (3) it would be deter-
mined whether the Western governments are ready to oppose the latest
Soviet proposal to the point of a deadlock. The chief of the US dele-
gation had previously reported his consideration of such counter-
proposal items as the Soviet military alliance system and the station-
ing of troops outside the USSR,1
HA!
SECTION 2 (EASTERN)
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PHILIPPINES. Emhassz Comment on Huk Attacks Involving Americans. With
reference to recent Huk attacks on US nations, US Embassy Manila reports
that it does not know whether the Philippine Communist Pary and the Huks
have decided to extend violence to Americans, but states that recent
incidents "at least raise the presumption" there has been a change in
Huk policy in this regard. The Embassy believes that only the passage of
time during which Americans remain substantially unmolested will serve
to rebut this presumption and, in any case, concludes that, if they have
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not already done so, the Communists will in the not distant future prob-
ably abandon their former policy of non-violence toward Americans.
COMMENT: No further Huk attacks involving 25X1
Americans have been reported.
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SECTION 3 (WESTERN)
\MP'
"B" FRANCE-CHINA, Recent Shi ment of French Steel Rails to Communist China.
A recent shipment to Communist China through Antwerp of 2,500 metric tons
of French steel rails is believed by Embassy Paris to be part of an order
totaling 16,000 tons of rails and 480 tons of fittings ostensibly for
delivery to Venezuela, and the Embassy surmises that the funds for this
transaction originated in the Soviet sector of Berlin. Embassy Brussels
considers a clarification of French export license cancellation policy
important because it was the basis of the Belgian embargo on steel rails
to China, but Embassy Paris doubts that the French Government was aware
of the ultimate destination of the shipment already forwardedlinasmuch
as the initial French purchasers acted through a Lichtenstein firm and
the financing was handled by a Swiss bank,
, COMMENT: In January 1951, as a result of 25X1
urgent US representations, the French Government prohibited further licenses
and canceled most of those outstanding for the export of steel rails to
Communist China. While this policy has probably not been changed, there
have been some reports cf small shipments of French rails through Belgium
to Communist China since January 1951. It is probable that in these cases
either the French authorities have been deceived as to the ultimate desti-
nation or the shipments have been legally made under urmanceled contracts.
UNITED KINGDOM. AITyL/kLII2ggoslavia to be Spakci. Following a UK
suggestion that the Anglo-US-French Working Group on aid to Yugoslavia be
reconvened in Washington to discuss the Yugoslav list of desired military
requirements recently furnished to the British, the UK Government has
stated that financial conside- 25X1
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CONNENT: The British initiative in this matter testifies to increasing
British concern over Yugoslaviags defense capabilities, a concern
emphasized by the previous British caution about direct Western military
assistance to Tito. The graduaa improvement in relations between London
and Belgrade, fostered by such events as the exchange of visits by
important personages, has undoubtedly facilitated the British decision to
speed military aid to Yugoslavia.
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