DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000300360001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 20, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 1
• Publication Date: August 9, 1951
• Content Type: SUMMARY

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TOP SECRET
9-August 1951
DAILY DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary of significant reports has been prepared primarily
for the internal use of the Office of Current Intelligence. It does
not represent a complete coverage of all current reports in CIA
or in the Office of Current Intelligence. Comments represent the
immediate views of the Office of Current Intelligence.
DIA and DOS review(s) completed.
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SECTION 2 (EASTERN)
is GREECE. Marshal Papaoos names paz?`ty< Field Marshal Papagos supporters
have announced that his party will be called the r'Greek Rally" and that
its symbol will be a photograph of the Marshal. No list of party candi-
dates for the forthcoming elections has yet been released, but Markezinis,
one of Papagos? chief adherents, states that 80 out of a total of 320
have already been chosen. Those selected indicate, according to Marke-
zinis, that Papagos? slate will not include any extreme rightists.
Pa os has not succeeded in attracting any well-known centrists,
Comments Preliminary reports on Papagos? candidacy indicate that he
will draw most of his strength from slightly right of center. However,
dissention has reportedly already broken out between his chief collabor-
ators over the choice of candidates, and there will probably be consid-
erable shifting of political alliances before the party lines are firmed,
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4. INDOCHINA. Viet Minh attack predicted" The US Military Attache con-
curs in a in a French estimate that the newly formed Viet Minh 325th Divi-
sion will undertake operations in Central Vietnam some time after
15 August, possibly culminating in an assault on the important cities
of Hue and Tourane. Reinforcement of French forces in this area has
been behind schedule, but the Military Attache believes that any Viet
Minh attack would be hampered by logistic problems. F I
5. CHINA. Four more for?ei ners arrested in Pei i
the recen arrest of an American national
a stateless Russian, and two Germans.
Comment: At least eight and possibly 13 foreign nationals, in-
eluding four Americans, have been arrested in Peiping in the past few
weeks. It is believed that most or all will be charged with some type
of "counter-r?evolutionar?y" activity.
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SECTION 3 (WESTERN)
GERMANY`. Agricultural strikes threaten Federal Republic: The danger of
agric turaY strikes increase ur n as we when the negotiations
of farm workers for higher wages deteriorated. Workers have walked out
in some 30 large Bavarian agricultural enterprises., and similar action is
anticipated in most other Laender. The workers are in a good bargaining
position because this is harvest season, but the sting is being taken out
of the strikes and unemployed as "strike breakers,"
Comment: German workers are becoming increasingly restless over the
steadily sing cost of living., but this is the first indication of actual
strikes. The German Trade Union Federation (DGB), which recently threatened
to withdraw its participation from all government economic commissions., is
supporting the farm workers in their demands. Unless some arrangement is
soon reached with the strikers, crop losses could be serious.
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2. FRANCE. Duclos returns from the USSR with a directive from Thorez: The
ounist. a y Humani'e as publishe an interview wit Jacques Duclos,
who has just return -rom the USSR allegedly with a directive from the
partygs Secretary-General, Maurice Thorezo French Communist Party policy
is "indefectible fidelity" to the USSR. Duclos reiterated that continuing
emphasis would be placed upon the campaign for a "five power peace pact"
and the "peaceful intentions of the USSR" compared with the "war policy
of the American imperialists."'
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One of the chief aims of Duclose report and the obviously touched up
photograph accompanying the article apparently is to reassure party adherents
regarding Thorez' ultimate recovery.
Comment: As outlined by Duclos, there is no apparent change in the
party s po icy,, The absence of Duclos from France during this period of
political crisis., however, may indicate that he had been ordered to Moscow
to discuss immediate Communist capabilities in France.
3o BELGIUM. Belgians criticize financing of rearmament:.. Both Le Soir, an
in ependenE -Belgian newspapers an Ta G e, a t as ian Social paper.
deplore the indecision and the chaossaa exist in financing the rearmament
of the NATO powers. Le Soir implies that the Defense Production Authority
has had little success it 'coordinating defense orders among the NATO
countries.. At present, arms orders in Belgium are financed through EPU,
a situation which aggravates the already difficult Belgian position as an
EPU creditor, and which poses the threat of inflation. La Cite comments
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that the only thing to do is forego full implementation of the rearmament
program, and especially to refrain from viewing NATO projects as the basis
of firm commitments. Le Soir points out that the costs of rearmament are
high and all the nationsns musT sharp the burden equally-neither the US nor
Belgium can bear the who e load. 25X1
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Comment: This press criticism, which can be considered as a sounding
board fore government's views, probably is the result of US censure of
the inadequacies of the Belgian defense effort and the failure of NATO to
take immediate action on the'Belgian proposal for the pre-financing of
rearmament. Belgium probably is financially sound enough to produce arma-
ment for other West European countries without US aid. although the US is
now supplying an estimated 60 per cent of the total Belgian equipment for
defense, Belgium's planned expenditures for equipment in 1952 are
proportionately well below the projected efforts of the Netherlands and
France. Although some threat of inflation does exist, the Belgian Govern-
ment has sufficient powers over the economy to control the danger.
ITALY, Government to request that Czechoslovakia close Milan consulate:
dalTa.n Government is reauirin Czechoslovakia to close i s consulate
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in Milan as a result of Czech attempts to inf ?
of the Italian consul general in Bratislava,
Comment: Closure of the Czech consulate in Milan would
facilitate the Italian Government's efforts to restrict shipments of critical 25X1
materials to Eastern Europe which are reportedly being processed through 25X1
Satellite consular representatives.
UNITED KINGDOM. Foreign office_ ports 'su ens ion of Czech overflight
rights in Germany: e UK ore gn Office as now conditionally agree to
the suspension o 'the Czechoslovak State Airlines' right to fly over Western
Germany, as part of the effort to secure the release of AP correspondent
William Oatis, The UK insists that France, Belgium, the Netherlands, and
possibly Switzerland concur in the action, and that the Czech government
first be given warning that the rights will be suspended if Oatis is not
released within a specified time. The Foreign Office will assist the US
in obtaining the concurrence of tlese interested countries. US Embassy
London believes this is the most that can be obtained from the Foreign Office
at this moment. 25X1
Comment: The UK, like France, had previously declined to agree to
tripar e suspension of the overflight right, expressing the general belief
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that that particular weapon should be saved for possible use in a case more
vital to the West.
The only preliminary French reaction to the latest US overtures is
that there should be agreement on a general program including conditions
for reestablishment of the flights, The Belgians have indicated they will
,not oppose suspension, and the Dutch interests in the flights are not so
great as to presage isolated opposition.
6, ARGENTINA. Radical Party announces presidential slate and platform: Peron's
principa electoral opposition, the Radical Par y, has selected ex Deputy
Ricardo Balbin as its presidential candidate in the 11 November elections.
For the vice-presidential slot it chose Arturo Frondizi, outspoken minority
leader of the Chamber of Deputies. -Both candidates are members of the
controlling Intransigente faction, which, characterizing the division within
the Radical Party, refused to allot one of the candidacies to the old-line
Radicals. The platform advanced by the Radical convention includes "the
reconquest of liberty and democracy" for Argentina, nationalization of the
meat packing and petroleum industries and the establishment of free labor
unions,
Comment: The Intransigent Radicals favor an extreme nationalist policy
and are generally opposed to close cooperation with the US, especially on
such issues as the Rio Pact,
7. HAITI. Communist youth group is suppressed.: An official government bulletin
appearing in the local press reports that the government has suspended the
activities of the group Jeunesse Progressiste (Progressive Youth). The
police -are stated to have rat e their meeting .place and seized Communist
agazines, tracts. rosters, and stat,_nnery bearing Communist insignia.
Comment: The Jeunesse Progressist`e had been the most active of several
Communist youth groups scattered rougiout Haiti. It-was affiliated with
the Communist Parti Socialists Po ulaire- until that party was dissolved by
the government in ecem er 0 publication 'La Nation suspended,
It is felt that the government's action, in eliminat!ng another subversive
force working against the political stability of the country, will serve
to strengthen the Magloire administration,
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TOP SECRET
9: August 1951
CIA No. 49297-A
Copy No.
TO THE DAILY DIGEST
Not for dissemination outside O/CI and O/NE.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary of significant reports has been prepared primarily
for the internal use of the Office of Current Intelligence. It does
not represent a complete coverage of all current reports in CIA
or in the Office of Current Intelligence. Comments represent the
immediate views of the Office of Current Intelligence.
TOP SECRET
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TOP SECRET
S'EOTION 2 (EASTERN)
tian,Foreign Minister determined to denounce Anglo-Egyptian Treaty:
The Egyptian Foreign Minister in a speech beforeParliament.on 6 August stated
that the door to negotiations between the UK and Egypt has been closed by
Foreign Secretary Morrisontis statements in the British Parliament.. The
Egyptian Foreign Minister has promised that before the end of this session
Parliament would be informed of the government's intentions concerning its
pledge to abrogate the Anglo-Egyptian treaty, The British Ambassador is
studying the problem of "where do we go from It and does not find any
easy answer'
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nO7Rmell8 Foreign Secretary Morrison on 31 July told the British Parlia-
ment that the presence of British troops in the Suez area was no longer a
purely Anglo-Egyptian problem and that Egypt could not stand alone in its
defense any more than could the UK0 He stated his confidence that Egypt
would join the UK in resisting aggression and invited its equal. partnership
to make the world safe. These statements do not in any way conform to Egyptian
estimates of a suitable outcome of the treaty negotiations., which would
necessitate the evacuation of British troops, Therefore., the Egyptian Foreign
Minister seems to have decided to proceed with his plan to denounce the treaty
before the close of the Parliamentary session in mid-August despite the King's
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caused enthusiastic popular street demonstrations in Egypt,.
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TOP SECRET
SECTION 3 (WESTERN)
3a FEE, French erturbed b increase in German coal ice; The repre-
sentative on the Ruhr Authority (IAR fears that French ratification nof theSchuman Plan will be seriously jeopardized by West Ge i
decision to increase export coal ray s recent unilateral
decision to prices. He believes that., the increase is
discriminatory and therefore out of the question because it would have a
disastrous effect on the French and Luxemburger steel industries,
it, however, as Primarily a He regards
political re-
striction on the Federal e ublic, whichne
Flan fail. toremove
rof3tnshouldWthe Schuman
Comment. In view of the crucial coal shortage in Western Europe, the
Germans have brought Ruhr coal prices closer to world levels with little chance
of Western Interference* The-Germans have long resented IAR restrictions and,
if this move succeeds, may attempt to evade the few remaining controls. The
growing enthusiasm of the French for European integration is tempered by their
traditional fear of German intentions, Their sharp reaction to incidents such
as this and General Ramckegs recent demand for a free hand in German rearmament
endanger the full Frenh-German coo
peration essential to European integration.
STALY, Possibility of concessions on Triesteo
f:E-17 is more anxious than Yugoslavia to reach aHsettttlbassy believes
ementRonn the Triestehat
issues but that the state of It
li
a
an public opinion and the vulnerability of
the Italian Government on this issue leave Premier De Gasperi little freedom of
action The Embassy estimates that under any compromise, the Italians would
insist on obtaining all the Italian coast towns in the Yugoslav Zone B, but
taould robabl be willin to make econo
i
m
c or other concessions to Yugoslavia...
Commento A settlement of th
e Trieste boundary on ethnic lines would give
the Italians the city of Trieste and the coastal cities in Zone B. The economic
concessions mentioned might involve formal relinquishment of the former Italian
.mercury and bauxite mines in Zone B already
It might also involve trade concessions to Yugoslavia incconnection with certain
Imposts levied, in the port of Trieste,
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