DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000400120001-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 27
• Document Creation Date: December 22, 2016
• Document Release Date: May 8, 2012
• Sequence Number: 1
• Publication Date: September 11, 1951
• Content Type: SUMMARY

Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP79T01146A000400120001-1
`fry ~
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DAILY DIGEST.
Office of Current Intelligence
11 September 1951
CIA No. 49342
Copy No.
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.
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err'
SECTION 1 (SOVIET)
1, USSR. Moscow propaganda defends Soviet role at San Francisco.- In a brief
announcement of the conclusion. of the San Francisco. Conference, Moscow told
the home audience that the US-UK treaty was signed-by countries,ost of
which took no part in the war against Japan."
Soviet press coverage of.the conference proceedings emphasized that the
US was imposing on Japan a treaty not of peace but one for the preparation
of a new war; that the US had foisted undemocratic, steamroller tactics on
the conference; and that the US had deliberately muffled debate because of
fear of the wide support that.would.be attracted to the Soviet viewpoint.
The presence of the Soviet delegation was said to have been justified
because the Kremlin's views were placed on record and the Soviet proposals
allegedly were "heatedly discussed in the lobbies and among journalists."
It was pointed out that "not a single major 'Asian country took part in
the signing of the treaty." 25X1
20 Vishinsl attends British Embassy reception: The US Embassy Moscow
believes that Vishjnsky's presence at the British Ambassador's farewell
reception on 7 September was probably motivated by the desire to show the
diplomatic corps his health is recovered and he has fully resumed his duties.
The Embassy does not feel that his attendance was designed as a personal 25X1
tribute to the British Ambassador, although Moscow might have.been trying to
convey the impression that the "Soviet Government was really sympathetic
and friendly to the British Government.
3, Soviet Union signs new trade pact with France-, An agreement between
the USSR and France concerning mutual trade relations was signed on 3 Sep-
tember. The principal changes from the original trade agreement of 1945
are.- (1) the elimination, of the USSR's right to commercial representation
at Marseille (a right that was never used); and (2) no limit to the number
of members of the USSR's commercial representation in France. The new agree-
ment has no limit, according to a French Foreign Office spokesman, because
the French do not want any limit on their representation in the Soviet Union.
The French Government gave the treaty a minimum, of publicity, and there
was no attempt in the Soviet press to exploit it for propaganda purposes,
Bucharest recently informed the US Legation in Bucharest that there are no
Soviet troops in Bulgaria, although some Soviet detachments accompanied
shipments of war materiel from the USSR, He stated that he "would know" if
in Bulgaria; The Italian Military Attache accredited to both Sofia and
EASTERN EUROPE. BULGARIA, Italian Military Attache denies Soviet troops
as was originally feared,
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major Soviet units had entered the country. The Legation considers the
Attache to be a capable observers
Conento Although during the past two years official and semi-official
Greek and Turkish sources have from time to time reported movement of large
numbers of Soviet troops into Bulgaria, Italian officials have consistently
denied the presence of such troops.
25X1
6. POLAND, Worst food shortage since end of war reported-. US Embassy Warsaw
reports that.Poland faces its worst food shortage since the end of the war
with meats fish, vinegar, fats, cheese, butter, flour., sugar, and even
potatoes having practically disappeared from regular retail outlets in War-
saw. Few livestock have been seen either on farms or in the slaughter
houses. The black-market prices of scarce items are now four times that of
government-fixed prices.
The Embassy attributes the current food shortage to the extra drain on
already meager stocks due to food shipments to the Berlin Youth rally; ex-
port commitments; army requirements; and excessive slaughtering following
last.year?s livestock census. Contributing causes are believed by the Em-
bassy to be maladministration and the diversion of choicer foodstuffs to
Communist officialdom and foreign visitors.
Comments It is unclear from the Embassy's report whether or not the
current shortage is limited to Warsaw and its environs, or is nationwide.
In either event, there has been no evidence to indicate that the shortage
is due to intensive stockpiling, although such a possibility cannot be ig-
nored. Somewhat similar shortages, though apparently not as acute, have
been reported from the other Satellites during the past year.
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?l, Government renew, campaign a~ainat Catholic Church. The Polish Govern-
ment has recently tried and sentenced five Polish. Catholic churchmen who were
popularly known for their outspoken resistance to the anti=Catholic and ex-
ploitative policies of the Communists.
On 3 September Monsignor Zy'gmunt Kaczynski, prominent editor of a former
Warsaw Catholic weekly paper and advisor to the Polish Primate, was sentenced
to ten years imprisonment on charges of "conspiracy to overthrow the Peoples
Government," Two well-known members of the Jesuit Order as well as two
other priests are currently under secret trial in Warsaw on the same charges.
All five of these men have been in prison for at least two years..
The US Embassy in Warsaw views these trials as part of an apparent gov-
ernment campaign to eliminate the more courageous and outspoken leaders of
the Polish Catholic clergy, and to intimidate and harass the Polish Cath-
olic hierarchy in'order to exact increase Church support for Polish Govern-
ment policies,
Comments The trials of these Catholic churchmen are the most aggressive.
anti-Catholic actions taken by the Polish Government in several months. At-
tacks against the Catholic Church had been limited to propaganda articles.
The most recent prominent example had been the reprinting in Polish newspapers
of an extremely strong Pravda attack against the Polish Catholic Church.
8. Rya Decree for confiscation of property issued. On 17 July, the Rum-
anian Council of Ministers issued a decree "on property of all kinds subject
to confiscation," Included in such property, which passes to the State, are
the followingo (1) property regarded as abandoned on the basis of laws or de-
crees; (2) "property found and handed over to Militia units and not claimed
by the owner withir three months from the d to when it was handed over."
9Q
sp r t of the Italian Peace Treaty.
h
p gn. a note emphasizes that the campaign is completely
at variance with the .4 i
Cats The decree was adopted immediately following the wholesale
evacuations of unreliables from the Yugoslav border area. Under the loose
wording of the decree, in which no differentiation is made between real and
personal property, the State now can take title "legally" to all property
which the evacuees were forced to leave,
YUGOSLAVIA, Italian propagranda campaign protested. In a note
to the Italian Government, Yugoslavia has protested the recent intensificaa
tion of the Italian propaganda campaign regarding revision of the question
of Trieste. The note states that the anti-Yugoslav campaign has not been
confined to press organs but that speeches such as that of Prime Minister
De Gaspers on 11 July, in which he mentioned Poland and the areas of western
Istria as "unhealable woundo" of Italy, have contributed to the intensifica-
tion of the cam 0-1 T
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Comments- The Yugoslav note, following by two days the public announce-
ment of the postponement of the Trieste elections, will make even more dif-
ficult the initiation of bilateral negotiations over Trieste. In fact, the
timing of the note strongly suggests that it is intended to discourage any
It
li
a
an approach.
10. Soviet propaganda seeks to divorce Tito completely from Communism*
A Soviet writer in a recent issue of Slay yane-has sought to prove that Tito
and his collaborators have long been in the service of imperialist intel-
ligence services. The article alleged that Tito was recruited by the Royal-
ist Yugoslav Security Police as a provocateur and secret agent as far back
as 1927 and that Tito joined British Intelligence in the late 193O's. There-
after Tito was said to have become a major international spy and to have
succeeded before World War U. in establishing a major espionage center of
imperialist reaction in Yugoslavia.
According to the article Tito?s leadership of the liberation movement
during the war was a broadly conceived diversion in which Titoas task was
to exterminate the genuinely democratic elements. This diversion was car-
ried out in full conjunction with the intelligence services of Fascist
Germany and Italy. In 1944 Tito established contacts with US imperialists
through, the Yugoslav consul in Switzerland and the "notorious" Allen Dulles.
Thenceforth Tito and his agents carried out well organized and systematic
intelligence operations for Washington and London, extending their sub-
versive activities to the Peoples Democracies. 25X1
Cots Since the Cominform break, Tito has gradually evolved in
Soviet propaganda from a national deviationist to an imperialist agent. By
dating his alleged espionage service with Western powers back to 1927, Sov-
iet propaganda is now apparently attempting to divorce Tito completely from
Communism and to prove that he was never a Communist.
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e
25X1
Ankara has issued a blunt criticism of Turkish support of the UN position
on the Suez canal. The Minister stated that the least Turkey might have
done was to remain neutral. The Turkish press, with one or two exceptions,
has defended the Turkish position and expressed the view that the Arabs
1. NEAR EAST. Syrian diplomat criticizes Turkey: The Syrian Minister in
are pursuing a shortsighted policy with respect to Israel.
25X1
3.
25X1
Comment: Turkeys support of the UN resolution on the Suez has
roused considerable Arab antipathy, of which the Syrian expression is an
example,
states that in the Turkish deputorial by-elections scheduled for 16
September ten to thirteen of the twenty available seats are expected to go
+ th i b
2. TURKEY. Turkish deputorial by-elections: An embassy report from Ankara
P o e u ncum ent Democratic Party, with four to six seats going to the
--OP-Les Republican Party and two to five to the Nation Party.
Comment: The by-elections, which are being fought on domestic issues,
are considered important by both the major parties. In the 1950 elections
the Democratic Party won seventeen of the seats; the approaching elections
will reflect public reaction to the Democratic Party's program.
SAUDI ARABIA. Saudi Defense Minister invited to visit US: The US Secretary
of Defense has invited Prince Mishaal, Saudi Defense Minister, to visit the
U
S f
Comment: Mishaal has succeeded his borther Prince Mansour, who died
on 1 May en route to the US for medical treatment. Although relatively
little is known about Mishaal, he is reported to be friendly toward the
US.
4. IRAN. Iran asks for airlift of lubricants: An Iranian National Oil
Companyofficial has requested US assistance in flying 600 tons of badly
needed lubricants to Iran, according to an embassy report from Tehran.
The same official expressed the fear that present supplies would be
exhausted before October, leading to an early collapse of Iran's economy,
Comment: An, Iranian official who has been buying lubricants in the
US has placed orders for more than 3,000 tons, but has been unable to find
shipping space before the middle of September. Air transport for even a
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ollowing his visit to France in October;
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6.
portion of the required lubricants would seem an expense which the Irdnian
Government can ill-afford at this time.
PAKI$TAN. S ao-Pakistani Fr>Lendhsin Association established. A Pakistan-
China Friendship Association has been formed in Karachi after a meeting
of local -citizens, according to a Peiping broadcast of 3 September. 25X1
Comments This is believed to be the first such organization estab-
lished in Pakistan. The report follows by a day the arrival in Karachi
of the first Chinese'Ambassador to Pakistan. A similar organization was
established in India on 12 February 514
several weeks ago.
Consul General in Lahore,,, who toured the frontier areas at the end of
August, has also reported that the populace is much calmer than it was
INDIA AKISrAN. War tension in Pakistan appears to have slackened- A
considerable relaxation of tension in Pakistani public feeling regarding
IndiaPakistani relations is reported by the US Military Attache in Kar-
achi. Both India and Pakistan have reinstated military leaves. The US
Co _nta The somewhat relaxed atmosphere may represent a natural
let-down after almost two months of excitement and anxiety. Floods and
the current monsoon would seriously hamper any major military operations.
However,, until there are sizeable troop withdrawals from the frontiers.,
the threat of war continues.
Comment: The chief problem the Thai Government would face in enforcing
anti-Communist legislation would arise not from the covert. nature of
Communist activity in Thailand, but from the fact that it is largely a
Chinese movement. Anti-Chinese legislation in other fields has been
signally unsuccessful.
Communist activity in Thailand is covert.
comments that it is doubtful that such a law would-be effective, as most
25X1
THAIIA,ND. Government reported considering; outlawing Communism: The Thai
Cabinet is studying a bill to outlaw Communism in Thailand, according
to the US Embassy in Bangkok. The main difficulty appears to be the 25X1
drafting of legislation that does not violate the constitution. The embassy
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94 INDONESIA. Opposition to treat ratification poses threat to cabinet:
Although the Indonesian Cabinet authorized signature of the Japanese
peace treaty, it did so after a split vote -- with the National Party,
Indonesia?s second largest party, in opposition, The National, the
Socialist and the Christian parties, and all leftist groups, have subse-
quently stated that they definitely oppose ratification of the treaty.
The National Party, arguing that the treaty is contrary to Indonesia's
independent foreign. policy, has intimated that it will withdraw from
the Cabinet if the treaty is ratified.
Comment: Even without the support of the National Party and other
opposing groups, the government has sufficient parliamentary support to
obtain ratification of the treaty. However, the cabinet is primarily a
,National Party-Moslem coalition, and if the former carries out its threat
to withdraw from the cabinet if the treaty is ratified, the government
would fall.
As recently as 6 September the National Party announced it would
support the government on this. issue, The reversal is obviously an attempt
to exploit the domestic political situation.
25X1
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*NOW
1la PHILIPPINES. Opposition leader says party should be dissolved if election.
is again fraudulent: Jose Laurel, the occupation puppe-u pres.Lu'Z11U, u
agreed to head the list of Nationalista Party senatorial candidates, but
has expressed his fears that the elections will again be fraudulent and
that, in such case, the Nationalista Party should be dissolved with a
declaration that democratic processes have failed in the Philippines. The
US Embassy in Manila comments that other Nationalista leaders have discussed
the' desirability of dissolving the party and that Laurel's assertion may be
no more threat. The embassy observes that such a dissolution would have
the effect of converting the Philippines into a one-party state, a situation
that would reflect seriousl u on its position as a leader of Western
democracy in the Far East. 25X1
Co nente Party allegiance is notoriously fluid in the Philippines.
The principal difference between the incumbent Liberal Party and the
Nationalistas is that of the "ins" versus the Bouts." Should the National-
ista Party be dissolved, a new alignment may occur, with the same type of
opposition developing.
12.. AUSTRALIA. Public disapproves of Japanese peace treaty. A public opinion
poll indicates that sixty-three percent of the Australian voters disapproved
of the Japanese peace treaty.
25X1
CComment: The Australian public has, since the war, feared the resurgence
of Japanese militarism and the Labor Party has played upon this fear Alm
though there is a certain degree of emotionalism involved,,the issue does
not play a large part in Australian national politics.
13. CHINA. US Consul General recommends US dependents be permitted return
Hong Kongo US Consul General McConaughy at Hong Kong makes the "somewhat
reluctant" recommendation that dependents of US nationals in the-colony
be permitted, but not encouraged, to return to Hong Fong "at their own
risk." McConaughy states that, while the overall Far Eastern situation
is not "esentially more secure" than it was last January when the
evacuation of dependents was recommended, the prospects for a successful
evacuation of the entire American colony by US Navy transports have
"greatly emproved," and the capability" of Chinese Communist forces for
"overwhelming" action against Hong Kong has decreased. Furthermore, the
British intend to make a ""maximum defense" of the colony, and estimate
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25X1
they.can hold it for a minimum period of two weeks. In conclusion, he
refers to t
"
o
"
e
s
. t improved
internal security situation.
Comment: There are no indications of an imminent Chinese Communist
operation against Hong Kongo However, an offensive could be launched with
little or no warning, and Hong Kong's capabilities for simultaneous
resistance and evacuation of non-essential personnel are questionable.
14. Smuggling from Hong Kong increasing: Smuggling of strategic goods
out of Hong Kong is being resumed on a full scale. Petroleum, tires,
auto parts, and high speed steel are smuggled to Macao by operators who
give handsome bribes to patrol officers and other Hong Kong officials
in order to ensure delivery. Documents recently intercepted by the US
Consul General covering a shipment of fabricated steel referred to the
payment of 20 percent "convenience money."
The increased scale of smuggling is reflected in the record number
of seizures during August m? a total of 85, including 25 involving petro-
leum. Six junks were confiscated by court order, making a total of 1O
since 2 July. Hong Kong magistrates threaten to impose, stiffer penal s
if offenses continue at the present rate. 25X1
Co enta With the imposition of new export controls by Hong Kong
in June, the Communists were forced to depend increasingly on smuggling
to procure strategic goods from the colony.
15. Macao to get ore oil from Bangkok.-
0
nto Recent cables from Hong Kong report Bangkok as a source
for petroleum products smuggled to Macao, In Auguste the Panamanian
steamer Sofia and the British vessel Leos Bee reportedly carried pet-
roleum from Bangkok to the Portuguese colony; The petroleum allegedly
comes from stocks shipped from Hong Kong to Bangkok earlier this year
by US and British oil companies.
oao waters.
the Panamanian vessel er gross tons) will
en eavor to load petroleum at Bangkok for discharge at Macao. The ves..
sel will also discharge over 200 tons of diesel oil from its bunkers to
barges in Ma
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18. Papal lnternuncio is expelled from Comunist hi
archbishop
Anthor.- er pa err ara e2, Has arrMd in Aorig. I ng under an
.9 Pa
25X1
Count e ber?i had been. under house arrest in, Nanking since late
June o rges of various anti o unist activities, and had been the
object of repeated public denunciation. It is believed that no diplo-
spa.ti ' representatives of the Vatican now remain in Comrmmist Chinaa
The Catholic Church in China is being rapidly brought under state con-
troll
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The
20. KQPEAL Chinese mmunist armored unit rear front lines in Korea:
US 'Far East Command accepts the -soutTieastward displacement of the Chinese
in western x?eas
an? i area
5ib
s
y
Communist lst Armored Division to the
25X1 dust behind the front lines. Acceptance is based on increased tangy,:'
n r xtinuing prisoner of war re arts that
sightings in the are* and
or will soon be co ,tte
Con ent a It is possible that tanks frck t s uni t sere enga ed d in
the 6 p em er- counter?recorxnais nee att by
regiment in the western sector.
25X1
21G or Chinese Communist unit rea ears in Korean combat: Then US Far
and tentative -7 .accep s .the . inese . mmunis - n . being
East
located in the combat zone north of five central ist Korea.
soldiers from
,alre opinion is based on the cant
this it in . this area
Comment-. The Chinese Communist 42nd Army, 14th Field y, eras the
first nese communist unit identified in Korea in October, 1950. The
L.2nd withdrew from the combat zone during April and May of 1951 and was
often reported as having moved to south Mina for rehabil5tio The
specula-
tion of this unit in the Korean combat zone gives
cyrise to spec
as to whether the Chinese Connunist 38-th y. veseto1 be on Kveeaa
moved south from Korea with the 42nd might not
22, J 1PANa EXI-OMOWRto join - o~ 1 re~ ea The newspaper Asahi claimed
ll accept 1x00 .former Army
Goverxm~ent w
i
the Japanese .
September that
2-1il and "ior for service as
-
es The newspaper added
officers of the rank of easel Police
Reserv
senior officers in the National to 150E x^ecentlym
that in response to inquiries sent by the gover
dep urged former officers,, about BCC indicated that they would accept
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U
ii Sep l
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*omissions if offered,.
Comment The high wage scale and extra food ration are a signi-
ficanac or in the favorable response of the former officers.
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Continued Austrian trade deficit alarms US mission: An August
deficit o million o Lars o e European Paymen s neon and a cumu-
lative deficit of 12 million dollars for the first two months of the third
quarter have resulted in further US representations to the Austrian Govern-
ment on the subject of Austria's unfavorable trade balance.. US officials
attribute these payments difficulties only in part to external factors over
which the Austrian Government can exercise little control. They have been
aggravated, for example, by the semi-embargo of Austrian lumber exports
brought about by partisan bickering within the coalition government. The
ECA mission is deeply concerned about Austria's future position, but suggests
that declining prices of wool ' t and a favorable. tourist season may
bring about some improvement. 25X1
Comment: Austria's economic position is assessed as sufficiently dark
by the Ju Uovernment that consideration is being given to a re-orientation
of approach. Having heretofore emphasized Austria's progress and the
problems created, by the Soviet occupation, US information media will be
utilized under the proposed plan to concentrate public attention upon the
extreme urgency of the situation,., the reasons for reduced aid, the necessity
for remedial action., and the prospect of declining standards of living if
correction is not achieved. It is believed that US prestige and friendly
criticism may perhaps bolster the Austrian Government in achieving taxation
reforms, augmented productivity, and improved inflation controls.
Communist blast forces government acknowledgement of official
irsvestiga ion to inancia airs' The--Communist Der Aben repo' ed in
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detail on 5 September that US pressure has resulted in a full-scale in-
vestigation of Austriaes nationalized bank, the C reditanstalt, The lead
article asserts that the US is "demanding the head'' of Bank Director.Joham,
and suggests that major corruption implicating the People's Party may be
revealed,
the examination was directed against particular persons or institutions,
The Austrian Government has informed the US Legation that it is confident
+i,.,+ +b, rrs - - - -
On 6 September, the Accounting Office of the Austrian Government issued
a statement acknowledging that "normal examinations" of all nationalized
banks is in progress, and that the use of Marshall plan credits is included
within the scope of the investigation. The government statement denied that
Government in general an oop e s Party inparticular cannot -- after
the corruption disclosed in the Ministry of Property Control. last spring ---
bear further public revelations of malfeasance in high places.
25X1
Comment: Austrian officials yielded to US pressure last July and under-
took an investigation of suspected irregularity in dollar transactions.
Legation suspicions that the Finance Ministry and the Creditanstalt may not
have allocated Austria's limited foreign exchange and dollar holdings in
accordance with Austrian interests were increased when a private auditing
firm resigned at that time in protest against the tive attitude of
the Austrian Government The Austrian 25X1
6, ITALY. Italy will contribute hospital unit for Korean war: Arrangements
from Naples in mid-October for service in Korea. It is anticipated that
Premier de Gasperi, in accordance with Italian wishes, will make an an-
nouncement to this effect in New York on 11 or 12 September.
Comment: This gesture by Italy, which is barred from UN membership
by Sovieveto,evidences its desire to make a concrete contribution to UN
efforts in Korea, The Italians hope by this action to strengthen further
their case for an abrogation of the entire peace treaty or.at.least its-
military clauses, an issue that Premier de Gasperi is expected to discuss
during his forthcoming visit to Washington.
Italians react favorably to announced postponement of Trieste
elections: Postponement of the communal elections scheduled for and
October in Zone A of the Free Territory of Trieste was announced in a
communique issued 6 September by the British commander-in-chief of the
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%owe V4000
US UK forces in that area. It was stated that "new dates for the elections,
which it is intended should be before the end of the year, will be an-
nounced in due course."
Comment: The announcement has been favorably received by the non-
Communis- alian p4ess, a sector of which speculates that this may be a
prelude to the returk of the entire Territory to Italy. It should tempo-
rarily allay public tension in Italy over the controversial Trieste issue,
and to this extent strengthen Premier de Gasperi1s position in his forth-
coming conversations, with US officials in Washington.
8. SWITZERLAND. Swiss will probably intercede for US nationals in Chinas The
Swi.ssGovernmen as no definitely committe itself to intervening on
behalf of US citizens forcibly detained in China, Nevertheless, the Swiss
Foreign Affairs Minister has indicated that "the reasonableness of the US
request was recognized and without doubt they would be prepared to intervene
on a strictly humanitarian basis."
In order to make the most effective approach, the Swiss official
requested a list of names and locations of US citizens in China, and asked
whether there were any Chinese Communists in the US who might be exchanged
for US nationals in China, He also hinted that the Swiss would prefer no
Comment: Despite the lack of a definite Swiss commitment to intervene
with Mie,Crinese Communists on behalf of US nationals, it is probable that
the Swiss will undertake this mission, It would be in keeping with the
traditional role which they have built for themselves as the protagonists of
international humanitarian undertakings,
16
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w
TOP SECRET
ral elections
9 Ernbas assesses ros acts of fall ene and other develop-
ress meeting
ang
NGDO in Landon
10, UNITED Y11 ust, the US Embassy
meets ng t p lts of the Tredeon 21Aug now than it did
meets since e parliament adj ourned.
orted as hardening
ll general election seems less likely
the was reported
estimates that a fa might fall
nSentiment at the Trades the Union C grounds that Conference
cost v
nor the Korean ian against a fall electifn, ? year and that neither the averment to
slightly by the end re the sufficiently to enable the g eace.
re
' sex-ng p
situations have cleared up with three cabinet
capitalize on Labors supposed achievements in
election, Ile has talked recently to call an
,minister Holmes comnvi c that they know of no to haehimself,,"
ministers and is cottloedi keeping his own views strictly
but cautions that n a fall election, the embassy
factors making for et worse, particularly
ancing ossi worse, by-elections bilitY
As counterbal economic situat in
cites the fear that the dithe 0 g Dint Of
the form of a winter coal shorttye of s down is the van issn for a former
m w1little Labor's tiny majoritb t still uscheddu~led, ce fight that
ay three by-elections now pending vote
Labor seat wan in 1950 by a minority
election*
will not be repeated in the by-
and August both show the trend
that if Attlee decides
Comment: Gallup polls taken in July a g
overnr~ent. It is generally g
running against the g urn of the tide, he 11 not call a o en nteleast
parliament
to wait for a possible t
action as in 195as but will postpone the dissolution o
el
until springs
organization: Chilean Commmunist
proposed CTAT, regioralon the nation al cogress of the-
LATIN A RICAe o in reporting bato9 mentioned.a
senator vador Ocamp , eican Con
Confederation of ation for the pro-Communist Latin upon by Othercuador held last
Workers o E be acted r
proposed regional organThe tentative plan (to b
involved regional committees organized as.
federation of Labor (ount}
congresses in other countries}
follows:
to handle
v
ey.
(1) a Caribbean Committee, 1oCentral America$ and the
CTAL matters for Mexico,luding Venezuela;
Caribbean countries,, inc
to be located in Quito, for
(2) aWest Coast Committee, Bolivia, and Chile; and
Colombia, Ecuador,, Peru, 'be Brazil. Venezuela
located in Montevideo,
3) an East Co Co~nittee, Argentina,. and
ast with
( for Paraguay, Uruguay 'I rather than vn
might possibly be included in this group
the Caribbean countriesa
TOP SECRET
17
11 Sep 51
25X1
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There is no evidence of functioning Caribbean or East Coast committees,
-,rte
TOP SECRET
Comment: This is essentially the same plan proposed at the regional
CTRL-co erence at.Montevideo in March 1950, which was not satisfactorily
implemented. Subsequent info nnation indicates that the West Coast Com-
mittee, as.organized by Ecuadoran and Chilean leaders at Ambato in may 1951,
12. VENEZUELA, Rumors of expected violence during Venezuelan petroleum con-
erence l
k
ac
ass; enezue an police have informed the Embassy in Caracas
that no e ini e evidence existed for their previous report of a possible
Communist demonstration during the current petroleum conferences The police
had apparently felt that the presence of US Secretary of Interior Chapman
at the conference would contribute to the possibility of a demonstration.
The earlier report, made to the embassy on 7 September, was based on a "mass
of unevaluated rumors," police said. Strict security precautions will be
taken despite lack of concrete evidence that they are needed. 25X1
Comment: No arrests of Communist leaders or agitators have been
repot end, but the government is said to have made a week-end roundup of
"opposition leaders" in connection with an alleged plot in the ranks of
25X1 the army. most of those arrested were members
of the outlawed Accion Democratica party and presumably not connected with
the Communists.
The Venezuelan Government has been notably successful in controlling
activities inimical to it, and there is no reason to believe that it cannot
prevent such activities during the conference,.
TOP SECRET
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 Z. TAA AI'AII_T
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* UNCLASSIFIED when blank-TOP SECRET when attached to Top Secret Document-Automatically downgraded or declassi-
fied when filled in form is detached from controlled document.
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transmitted outside of CIA. Access to Top Secret matter is limited to Top Secret Control personnel and those individuals whose official
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TOP SECRET
11 September 1951
CIA No. 49342-A
Copy No.
TO THE DAILY DIGEST
Not for dissemination outside 0/CI and O/NE.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This summary of significant reports
of Current Intelligence.pr Iti does
for the internal use of the Office o its in CIA
not represent a complete coverage of all current 'repo
or in the Office of Current Intelligence. Current Comments represent the
immediate views of the Office of C
TOP SECRET
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TOP SECRET
SECTION 1 (SOVIET)
now in its seventh week, is reported to be worsening. There have been a
minimum of 300 to 400 hospitalized cases. The Chief of the Warsaw
Emergency Polio Clinics has warned that the epidemic, threatens the whole
structure of public health in Warsaw. He further stated that the pro-
fessional advice and assistance of Western specialists, particularly Ameri-
can, presented the only possibility of checking the contagion. The Polish.
Government, impressed by the warning, reversed an earlier decision not to
1. POLAND. Polio epidemic worsening: The pol~o epidemic in the Warsaw area,
participate in the Second International Polio Conference in Copenhagen
3-7 September, and has dispatched two doctors.
Comment.- On 23 August the Polish Government placed an order with the
Danish Surgical Instrument. Factory for the urgent delivery of 18 iron lungs.
This was followed five days later by the first Polish press story on the
situation.
SECTION 2 (EASTERN)
Burmese Ambassador to Peiping implies US supporting Chinese
Nationalist troops in Burman According to a French Press Agency report from
Hong Kong, the new Burmese Ambassador to Communist China stated that the
Chinese Nationalist forces under General Li Mi which were recently driven
out of Yunnan into Burma were controlled by the Nationalist Embassy in
Bangkok. He also asserted that it was possible. the US was supporting these
forces, as they carried arms and equipment of the latest US manufacture.
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TOP SECRET
Comments The Burmese .Ambassador's accusation is significant in that it
comes at a time when the Burmese are threatening to place the issue of Chinese
Nationalist troops in Burma before the UN,
4. TH_ o Embassy Bangkok speculates on political realignments: The T.)S
Embassy in Bangkok reports that it is possible that Prime Minister Phibun
forced his ambitious Director General of Police, Phao Sriyanon, to take his
current trip to the UK and US. The embassy advances the theory that Phibun
is taking advantage of Phaons absence to establish a new political alignment
which would eliminate the Phao-Phin clique. In support of this theory, it is
pointed out that Phibun has made previous efforts to broaden his government,
but has been thwarted. The embassy recommends that Phao be enticed to stay
in the US as lo
ng as possible in order to give Phibun time to complete any
7`A GlY.1 fJ 9rorm w.....m ,...nl-. tia ._s ? . . _ _
Comments Political intrigue in Thailand comes close to being a national
pastime, and the embassy's theory is entirely plausible, especially in view
of Phaots well-known ambition eventually to rep]a ce Phibun. Phibun's recent
formation of a high-level political committee including prominent Thais who
have opposed him in the past suggests that an effort is being made to broaden
the regime, but both Phao and Phin are members of the committee. Not until
steps are taken to divest Phao of his control over the police can a firm
conclusion be drawn that his position is being seriously undermined,
SECTION 3 (WESTERN)
TOP SECRET
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25X1
60
NOR AY/DENMARX, Nations will eventually agree to Western Germany's partici-
pation in NATO;. After a discussion with Foreign Minister Lange, US Ambassa-
dor Bay believes that Norway in due course will accede to West Germany's
participation in NATO and other international organizations, but that it
would prefer the process of integration to be gradual, Lange stated that
Norway is prepared eventually to take a constructive attitude toward German
inclusion in NATO, but would like to see more progress on Germany's political
status first. Lange also predicted that Denmark will not object to German
NATO participation because it views Germany as a buffer against the USSR.
Comments The belief that Germany is necessary to Western European de-
fense plans will probably elicit the eventual consent of both Norway and
Denmark to German incorporation in NATO.
TOP SECRET
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TOP SECRET
12 September 1951
CIA No. 49343-A
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
SECTION 2 (EASTERN)
1. TURKEY_ L k, - w i l l be asked to Join U S U K in approach to E to It is
planned to offer full membership in NATO to Turkey am Greece at the
Ottawa meeting of NATO on 15 September, according to a recent US memoran-
dum. As a "member elect" Turkey will be asked to Join immediately with 25X1
the US and the UK in an approach to Egypt, designed to enlist the latter
in a Middle East Defen
C
se
ommand in which Egypt will share the authority
end res onsib`
i
t
ma
n
aining adequate regional defense.
Comment. The Turkish Government has made it clear that Turkish
participation in Middle East defense talks is contingent upon full member-
ship in NATO. The approach to Egypt is designed to bring that country into
a Middle East command before it can carry out its threat to abrogate the
1936 Anglo-Egyptian Treaty. Turkish insistence on full membership, a
time consuming procedure since accession of each new member must be rati-
fied by each NATO government., might defeat this maneuver. Current
Egyptian irritation over Turkeyps failure to support Egypt question at the UN ray detract from Turkish intercession with Egypt at
this time.
2 EGYPT. t to be invited tee-aarticit .te in Middle East Commands Egypt
will be asked to participate in the
East Command as a found-
ing
ffiember on the basis of full under procedur
discussed in the tripartite Foreign Secretaries' talks, es currently being
Egypt would be a member of the Middle East Chiefs of Staff committee.
Its officers would be included in the integrated headquarters of the
Supreme Allied Command for the Middle East, which Egypt is to be asked
to locate on its soil,
The Present British bases in Egypt would be handed over formally to
Egypt on the understanding that they would simultaneously become Command
bases with full Egyptian cooperation in their running at all times. Those
British forces currently in Egypt not allocated to the Command will be
withdrawn immediately-.
The Corrunand in agreement with the Egyptian Government, would deter
Mine the number of allied troops to be stationed in Egypt in peacetime,
In an international emergency Egypt wou grant all necessary fa lities
to the Allied force. 25X1
Comment: These proposals have been worked out primarily to secure
the retention of the facilities built up by the British in the Suez Canal
TOP SECRET
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area, which military authorities consider the important strategic area
for the defense of the Middle East?
Available evidence suggests that under any circumstances Egypt will
view suspiciously any proposals concerning the stationing of foreign troops
on its territory.
SECTION 3 (WESTERN)
40
will strongly support any move at the Ottawa meeting to postpone a decision
concerning the admission of Greece and, Turkey to NATO until the Rome meeting
Turkish NATO msmbg sh m The US Embassy at Copenhagen believes that Denmark
DENNPJRK. Government believed to want patyonement of decision on Greek-
in October.
Comment*, There sti.11 exists considerable opposition in Danish govern-
mental aand parliamentary circles to an extension of NATO to include Greece
and Turkey. Denmark Is unwilling to veto such membership or to assume
leadership in opposing it, but apparently hopes that a postponement will
allow some other solution to be worked onto.
2 12 Sep 51
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