TOP SECRET SUPPLEMENT TO THE DAILY DIGEST (INCLUDING S/S CABLES)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000700230001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 17
• Document Creation Date: December 9, 2016
• Document Release Date: June 8, 2001
• Sequence Number: 1
• Publication Date: February 1, 1952
• Content Type: SUMMARY

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1 February 1952
TOP SECRET
SECURITY INFORMATION
CIA No. 49521
Copy No. 46
US OFFICIALS ONLY
TOP SECRET SUPPLEMENT
TO THE DAILY DIGEST
(including S/S Cables)
Not for dissemination outside O/CI and O/NE.
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
SECURITY INFORMATION
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept. declassification & release instructions on file
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SECTION 2 (EASTERN)
1. JAPAN. Government concerned over Moscow Conference invitations: The Japanese
Government is concerned over possible public reaction and Soviet displeasure
if it refuses passports for travel to the Moscow economic conference in
April, according to US Political Adviser Sebald in Tokyo. Although the govern-
ment is anxious to discourage Japanese attendance, some business leaders
strongly urge participation on the grounds that refusal to s end delegates
would deny Japan valuable economic information, automatically write off trade
with the USSR and Communist China, and unnecessarily antagonize the USSR. In
view of increasing public interest in the conference, Sebald comments that
government refusal to grant passports may magnify the matter unduly and result
in unfavorable repercussions. (C S/S Tokyo 1588, 30 Jan 52)
Comment: The Japanese Government's sensitivity on this subject is re-
flected in the hedging statements of officials before the Diet that it was
"not desirable" for Japanese to attend.
SECTION 3 (WESTERN)
2. FRANCE. Budget deficit threatens NATO program: France is budgeting less than
half the funds needed to me-e-t-7-957 NATO requirements for French forces in
Europe. Ambassador Bruce states that this will necessitate a revision in the
plans for NATO support installations in France.
The Ambassador fears that a drastic curtailment of the French military
program might lead France to demand a definite agreement prohibiting a larger
defense contribution by Germany than by France. (TS Paris 4555, 29 Jan 52)
Comment: The gap between the budget figure and NATO's recommendations
is equivalent to France's burden in Indochina, which the French have con-
sistently stressed they cannot carry if NATO commitments are to be met. The
recent NATO analysis of French defense capabilities is forcing France to
admit that its earlier commitments were unrealistic.
1 Feb 52
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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
DAILY DIGEST
Office of Current Intelligence
1 February 1952
OCI No. 3864
Copy No.225
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.
SECRET
SECURITY INFORMATION
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SECTION 1 (SOVIET)
1. USSR. Comment on Pastor Niemoeller's visit to Moscow:
Pastor Niemoeller's primary objective in making a trip to
Moscow seems to have been his crusade for peace and the removal of
East-West tensions. While in Moscow, he confined himself to religious
matters and the question of German prisoners of war. Although
Niemoeller regards the sudden timing of his invitation as a "riddle,"
after talking with him the source became convinced that the visit was
a carefully planned Communist propaganda performance.
In dealing with the question of prisoners of war, Niemoeller
talked with Deputy Foreign Minister Zorin and placed the whole matter
within the framework of peace propaganda. While Zorin insisted that
only war criminals were held, he indicated that Niemoeller's stand
would be considered by the Council of Foreign Ministers.
As for the church situation, Niemoeller reported the existence of
a genuine religious life and stated that the churches are not molested
in their ecclesiastical functions. He believed that there had been
visible progress in the condition of churches in the USSR and that the
Kremlin not only tolerated but reluctantly supported them. Niemoeller
attributed this progress to the separation of the churches from
politics, bait at the same time suggested that in the long run they
cannot remain silent about the actual facts of Communism.
The Orthodox Church leaders were sceptical about the Ecumenical
Movement, which has its headquarters in Geneva, regarding it as a
Western or American institution. Niemoeller, however, left Moscow
with the impression that sufficient interest had been shown to war-
rant further attempts at maintaining direct contact between the'
Ecumene at Geneva and.the Russian Church.
While in Moscow, Niemoeller did not notice any tense or war-like
situation. He felt that the masses were indifferent, and in his talks
with church leaders the question of war was mentioned only in connect-
ion with the fear of American "aggression."
In his zeal to ease East-West tension, Niemoeller may have placed
undue significance on superficial facts, and he was undoubtedly in-
fluenced in his views by the warm reception accorded him by both
religious and state officials.
His.report on religion in the USSt will not influence most West
Germans, but the neutralist minority, inside and outside the Evan-
gelical Church, may be impressed.
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2. USSR BURMA. Soviet Union charges American generals are commanding
Chinese Nationalists in Burma: The Soviet UN delegate charged on 29
January that two American generals are-commanding a "shock force" of
Chinese Nationalist troops poised in Burma for a strike against Com-
munist China. He also claimed that seven American colonels and
twenty-seven majors were attached to Chinese Nationalist forces in
Burma. (R FBIS 29 Jan 52)
Comment: Precisely the same accusation was made a few days ago
by the pro-Communist Burma Workers and Peasants Party in Rangoon.
The Chinese Nationalist issue has been kept alive since 1950 by
both Chinese and Burmese Communists. Recent intensification of anti-
American propaganda regarding the issue is apparently for the purpose
of breaking up present negotiations between the US and Burma for
assistance under, the Mutual Security Act.
3. USSR/FRANCE. Soviet Union returns last five French prisoners of war:
The French Ambassador in Moscow was informed by the Soviet Foreign
Office on 29 January that on 30 January the USSR would deliver to
French authorities in Berlin the last five French prisoners of war
in the Soviet Union. Chataigaeau expressed appreciation, but said
that the Soviet count and his count of French PW's in the Soviet
Union differed. (C Moscow 1257, 29 Jan 52)
Comment: This Soviet gesture toward releasing French prisoners
is probably timed to coincide with the current meeting of the UN's
Commission on Prisoners of War. It is-not known whether the French
prisoners in the Soviet Union were volunteers who fought with the
German army, French personnel captured by the Germans and impressed
into the German forces, or prisoners "liberated" from German camps
by the Soviet army.
4. BULGARIA. Alleged US intelligence agents sentenced: On 29 January,
the Sofia Regional Court passed sentence on several Bulgarians found
guilty of acting as agents for the American and Greek intelligence.
services. Among those sentenced to death was one of three former
Bulgarian Royal Army and Air Force officers who were allegedly para-
chuted from a Greek-based American military plane in August', the two
others having been killed in the drop or shor+;ly thereafter. Five
other Bulgarians were involved in the case as "collaborators."
25X1A (R FBIS - 30 Jan 52)
Comment: This is the most recent in a series of Bulgarian trials
involving charges of foreign espionage. Since November, violations
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of Bulgarian airspace have figured in Bulgarian notes to both Greece
and Yugoslavia. Bulgarian propaganda has shown an increased pre-
occupation with border security since the promulgation of the US
Mutual Security Act in the fall of 1951.
5. CZECHOSLOVAKIA. Two high military officers allegedly caught in purge:
It is rumored in Prague that General Jaroslav Prochaska, Chief of Staff
of the Czech Army,_has been arrested.. The_'US Army Attache comments
that there is no outward evidence that a purge of leading military
figures is underway, but. that there is-no-doubt that the 'Rpolitical and
military pot is boiling." (S USARMA Prague 737, 29 Jan 52)
Comment: Major General Hruska, Deputy Minister of Defense was also
reportedly- arrested recently. Both Hruska and Prochaska are known to be
friends of Slansky and both rose rapidly in the Soviet sponsored Czech
army.
Prochaska, who is the brother of Vladimir Prochaska, Czech Ambas-
sador to the United States, rose from captain to army general in seven
years. He is known for his violent anti-American attitude. He'apparent-
ly only returned-to Czechoslovakia at the end of the war, having been in
the USSR for about twenty years.
6. Government bids for support of Sudeten Germans remaining in Czecho-
slovakia: As a result of the manpower shortage, the Czech Government is
trying to win the support of some 160,000 Sudeten Germans in Czechoslovakia.
Through frequent speeches and newspaper articles the Czechs are being asked
to adopt a "fraternal attitude" towards those Sudeten Germans-who are"as-
sisting in building socialism.." The Central Council .of Trade Unions has
begun publication of a new German-language weekly, Reconstruction and Peace,
for the German workers. In spite of these official efforts, however, pop-
ular resentment against them remains.
The government stopped repatriating Sudeten Germans in April 1951,
and there is evidence that it is trying to encourage some skilled Sudeten
workers who have left the country to return to Czechoslovakia. Such a re-
turn was reportedly discussed with the Pieck mission when it visited
Prague in'October, but apparently no agreement was reached. (S USARMA,
-Prague 739, 30 Jan 52 )
Comment: The Czech Government has proceeded cautiously towards a
rapprochement with the Sudetens still in Czechoslovakia. 'While the
manpower crisis increased because of the demands of the enlarged five
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year plan, the government until 1951 continued to expel Sudetens, many
of whom were skilled workers. Presumably manpower needs will override
further emigration.
7. HUNGARY. Long-term trade agreement signed with Soviet Union: On 23
January, a long-term agreement on reciprocal goods deliveries between
the Soviet Union and Hungary was signed in Moscow. The agreement
provides that the USSR deliver equipment for complete plants and
give technical aid to Hungary during the period 1952-55. The treaty
calls for a significant increase in goods exchanged between the USSR
and Hungary. The Hungarian trade delegation left Moscow on 29 January.
(R Moscow 1259, 29 Jan 52)
Comment: Hungary and the USSR concluded a long term framework
and credit agreement on 1 January 1949. Heretofore this has been
implemented by an annual protocol. The nature of the proposed ex-21 changes (including complete factories) has now made necessary an
agreement extending over a longer period.. The Hungarian Five Year
Plan is scheduled for completion at the end of 1954.
8. Rundown hospital cars seen near Komarom: Approximately 20
hospital cars have been seen on a siding near Acs, a village just
south of K"omarom. The cars, reportedly old and in need of repair,
have been at Acs since 20 January. One report states that the cars
have Russian markings. (S MA Budapest 2801, 24'Jan 52)
Comment: A hospital train of German origin and in need of
repair was reported near Gyor (.approximately 20 miles west of Acs)
in July and again in November 1951, There have also been reports
that passenger and freight cars are being converted into hospital
cars in Hungary.
9. TRIESTE. Yugoslavs to hold elections in Zone B: According to an
Italian radio broadcast, a competent source close to the Yugoslav
military administration of tone B"' claims that local elections con-
. cerning administrative reform are to be held sometime this year.
Subsequent to this broadcast, the Italian Embassy informed the
Department of State that the Yugoslavs intend to hold'elections in
Zone B "in the near future," (R FBIS _ 25 Jan 52; S to Belgrade 25X1A
-795, 30,Jan 52)
Comment: Other reports alluding to the precise timing and nature
of these impending elections are lacking. However, an early election
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in the Yugoslav Zone would undoubtedly increase local animosities
which would contribute to the worsening of Italo-Yugoslav relations
and further prejudice any chance for the conclusion of a Trieste
settlement.
The last election in Zone B, held in April 1950, was designed to
select two regional councils which enact zonal laws and was dominated
by the Yugoslav supported Slovene-Italian People's Front. The
Socialist Party and the virtually'non-existent Christian Social Party
represented only token opposition; consequently a large number of
Italians failed to vote.
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SECTION 2 (EASTERN)
1. GREECE. Prime Minister refuses to halt purge of pro-Papagos officers:
PrimeMinister Plastiras does not intend to discourage the purge of
pro-Papagos officers now going on in the Greek armed forces. 'When the
issue was raised by the American Ambassador, P],astiras stated that he
would not interfere with the Minister of National Defense and the King
in their efforts to restore "unity in the, armed forces.". In fact, he
gave the Ambassador:.the impression that he.,sympathizes with the objec-
tives of the purge and resents US interference. (S Athens 3427, 30 Jan 52)
Comment: Plastiras' unwillingness to -use his influence to stop
the reintroduction of politics into the army indicates that the purge
will continue, unless the American Government takes strong action.
The surge, rapidly becoming the major political issue in Greece, will
undoubtedly further weaken the government by stimulating opposition
efforts to obtain control.
2. INDIA. Communist Party to a 5itate for release of prisoners: Ajoy
Ghosh, Secretary General of the Indian Communist arty, has announced
that his party would launch mass agitation in states where the govern-
ment refused to release Communist prisoners elected to seats in state
legislative assemblies during the current' elections. (U New Delhi 2664,
28 Jan 52)
Comment: Ghosh's announcement suggests that the Communist Party,
encouraged by its election successes in southern India, is preparing to
drop its "peaceful" front after the elections are completed. Agitation
by the party could.reach serious proportions in such states as
Travancore-Cochin, where the Communists and their allies have won a third
of the seats in the state assembly.
3. INDONESIA. Prominent Socialist gains poor impression of Satellites:
Sudjatmoko,, a prominent disciple of Socialist arty chairman Sjahrir,
revealed to an American official in Rome that he had just completed a
six months' tour of Europe which had included visits to Poland,
Czechoslovakia, and Yugoslavia. When questioned regarding his.impres-
sions of Poland and Czechoslovakia, he replied emphatically, "that's
not for us." He added that he was glad that he had visited those
countries because his political ideas had been clarified.
Sudjatmoko expects to return immediately to Indonesia and stated
that he hopes to influence the Socialist Party congress which will be
held in February. (C Rome 3367, 29 Jan 52)
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Comments. Statements by party leader Sjahrir and recent Socialist
alignments with left wing groups in Parliament have indicated Socialist
willingness to assume leadership of a leftist bloc.
Sudjatmoko's statements appear to indicate his opposition to a
policy of cooperation with the Communists. His influence within the
Socialist Party, however, is not clear, since he has been out of the
country for several years and is not even a party member. Nevertheless,
his on-the-spot observations of conditions in Satellite countries may
carry considerable weight with persons who have seen Communism at work
only in Indonesia.
BURMA. Chinese Communist threat to Burma assessed: The US Embassy in
Bangkok reports that on the basis of intelligence available in Bangkok
it has concluded that a Chinese Communist move into the Shan States of
northeastern Burma is "entirely possible." The Embassy believes that
such a move would have control of Burma, not Thailand, as its ultimate
goal. Meanwhile, the Chinese Nationalists in Burma are giving every
indication of preparing for a new incursion into Yunnan, although there
is little reason to believe that their capabilities have measurably
improved'since their ignominous defeat at the hands of the Communists
last summer. The Embassy states that these troops might be more effective
under different leadership, as it strongly suspects General Li Mi of
being more interested in lining his pockets than in waging war.
(S Bangkok 1623, 28 Jan 52)
Comments The Chinese Communist threat to Burma is currently
emphasized by the sustained propaganda campaign being conducted by the
Communists, including the Russians in the UN, concerning the Nationalists
in Burma.
INDOCHINA. French disturbed over uncertain loyalty of Tonkin population:
A high French official has admitted to the US Consul in. Hanoi that the
recent heavy infiltration of the Tonkin delta by the Viet Minh presents
a grave problem. The uncertain loyalty of the delta population is being
undermined by the "untoward behavior" of French troops toward the local
peoples, which contrasts with the studiously proper behavior of Viet
Minh forces.
The US Consul comments that Minister of Associated States Letourneau,
who is visiting in Tonkin, appears to be acutely aware that the French are
losing the "battle for men's minds" in the delta area. -(S Hanoi 513,
29 Jan 52)
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Comment: The Tonkin.delta area is the major source of food and
manpower for the Viet Minh army. As long as the Viet Minh retains its
influence there, French efforts to gain complete victory in Indochina
will fail.
6. CHINA. Peiping cuts year-end bonuses to government workers: Workers in
Chinese Communist Government agencies were not to receive the customary
bonuses at the end of 1951, according to a Peiping directive issued last
December. Workers in public enterprises were authorized to receive
year-end bonuses in accordance with regulations promulgated by the Com-
munists at the end of 1949. Workers in private enterprises were entitled
to the same.bonuses as last year. (U NCNA, Peiping, 8 Dec 51)
Comments Whereas the Communists insist that private firms pay the
customary year-end bonuses, they allow public enterprises to pay bonuses
at reduced rates. The 1919 regulations referred to in the foregoing
directive stipulated that public enterprises would pay as bonuses no more
than half a month's pay plus half of the amount customarily paid in
excess thereof. Private firms have recently been able to use the bait
of better pay to attract skilled workers from public enterprises.
7. Chinese Communists reportedly'train replacements for Third Field
Amy: The East China Military Area has obtained replacements for units
ofthe Chinese Communist Forces in Korea by drawing regiments and bat-
talions individually from the Third Field Army stationed in East China,
The resulting depletion in the
strength of the Third Field Army units is being remedied by the induction
of peasants who have "voluntee'red" since October 1951. It is expected
that these replacements will be trained and assigned to permanent units
of the Third Field Army before March 1952. 25X1A
Comment: This method of obtaining replacements for Chinese Communists
units inorea has been previously reported and accepted.
8. KOREA. South Korea may appeal to President Truman on inflation problem:
Ambassador Muccio states that in view of the acute inflation in South
Korea the Republic now contemplates an appeal to President Truman and
to the nations fighting in Korea to make provisions for reimbursing the
South Korean currency advances to the US forces.
Ambassador Mucoio observes that economic deterioration is too severe
for a piecemeal solution and recommends that the unified command urgently
consider sending a group to Pusan immediately with full authority to draw
up an overall economic and financial program for South Korea. (S Pusan 748,
30 Jan 52)
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Comment: The two principal issues preventing the stabilization of
the economy are the failure.of the unified command and the Republic of
Korea to reach an agreement on economic aid and the failure to reimburse
South Korea for the local currency advances to UN forces. One effect of
the resulting inflation has been a 33 percent rise in Seoul rice prices
since early December,
JAPAN. Yoshida says Em eror will not abdicate: Prime Minister Yoshida
told the Japanese Diet on 31 January that Emperor Hirohito is not going
to abdicate when the peace treaty goes into effect. (U FBIS Ticker,
AP Tokyo, 31 Jan 52)
Comment: There has been some speculation that the Emperor might
abdicate ollowing the effective date of the peace treaty, out of
deference to the traditional Japanese concept of responsibility. This
move is reportedly, favored by some rightist elements who feel that. .
Hirohito?s renunciation of divinity would not apply to his son Akhito,
who recently reached his eighteenth birthday.
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SECTION 3 (WESTERN)
1, GENERAL. Small countries' coal demands uncover fundamental dispute on
East-West tradeG Current discussions in the Coal Committee pf the OEEC
have disclosed wide differences of opinion on Western Europe's current
coal crisis. The dispute was touched off by a vigorous appeal of Austria,
Denmark, and the Netherlands for a larger share in Ruhr coal. Both
Austria and Denmark contended that the Committee's Secretariat had been
too optimistic in calculating their anticipated receipts of Poli,6h coal.
The Austrians also said that despite the high price they had to pay for
US coal, their country had suffered a higher percentage reduction in
Ruhr allocations than any other importer.
The demands of the small countries were strongly supported by the
US delegate.. US officials believe that the Coal Committee is shirking
its responsibilities and that existing procedures, involving only 'a
limited volume of coal subject to Committee allocation, are inadequate.
The British delegate regards the US position as "unreasonable" and
attributes to US-restrictions on East-West trade the increased pressure
on British and German coal supplies. Pursuit of this policy will "wreck"
the Coal Committee, the British believe, and lead to the distribution
of coal by bilateral agreements. A British proposal that the problem
of increasing Polish deliveries to the West be considered in Geneva by
the UN's coal committee was rejected after the US objected that a debate
on East-West trade in Geneva would benefit the Poles, that the problem
is one of "terms of trade" and not of availability, and that coal
importers should bargain bilaterally with Poland. (Factual data from:
S Paris REPTO 4989 28 Jan 52)
2. GERMANY. West German Communists step up underground organization: The
Communist Party of West Germany has recently organized three separate
groups to distribute party orders and illegal literature in the event
that the party is banned by the Federal Constitutional Court. The
members of one group do not know those of another, and only a few
party functionaries know all about the over-all plan. The new setup
was supposed to be operational by 15 January. Party records of some
local organizations have already been destroyed. (S Heidelberg Weeka 4,
28 Jan 52)
Comment: For some time the party has been quietly preparing for
a complete underground existence. More reliable leaders from East
Germany have been replacing West German leaders on local levels.
There.is considerable doubt that the Constitutional Court will bar}
the party. Many top Federal Republic officials oppose such a ban,
because they feel that it would not prevent the party's subversive
activities, but only make them harder to detect.
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ti
UNITED KINGDOM. Britain seeks NATO assistance in denying armg_to E~y-pt
during crisis4: The British NATO Council Deputy has requested that
NATO nations prevent the sale or transit of arms-to Egypt during
the present Anglo-Egyptian dispute. He stated that Egyptian efforts
to obtain military supplies in both NATO and non-NATO countries had
been somewhat successful; and that although the transactions had been
largely clandestine, export licenses had been granted or governments
directly approached in some cases. Because of the unsatisfactory
results of their protests to individual governments, the British are
asking the NATO deputies to obtain definite responses from their
governments within a month. (S London, DEPTO 899, 29 Jan 52)
Comment: Egypt has been on an arms hunt for some months, chiefly
for spare parts for US or UK equipment, Italy, France and Portugal
gave evasive answers when approached, and it is not clear to whose
export licenses the British refer, Clandestine transactions through
private concerns are fairly well controlled by countries which require
export permits for any arms shipments, but this does not necessarily
cover cases of transshipment, and smuggling is always possible.
With respect to non-NATO countries, Egypt has negotiated arms
agreements with Czechoslovakia, Switzerland and Spain,
British UN delegate favors UN investigation of Chinese Nationalist
troops in Burma: Selwyn Lloyd, Minister of State for Foreign Affairs,
has told a member of the US delegation at the General Assembly in Paris
that he expects "very severe" attacks on the Conservative government ir}
the House of Commons over the question of the Chinese Nationalist forces
in Burma. He plans to suggest to Foreign Secretary Eden an Anglo-
American proposal in the UN to send a Peace Observation t,ummission to
Burma. He indicated that the move could be justified as an answer to
recent Soviet charges of US support of the Chinese troops, and implied
that he believed Burma would reject the proposal._ He considered that
its effect on British public opinion would be "very helpful." (S Paris
DELGA 1246, 30 Jan 52)
Comment: In the present state of British public opinion the
Conservative government remains vulnerable to Labor pressure on all
Far Eastern issues. Recent press reports from Burma on alleged US
support of the Nationalist forces have received moderate circulation
in Britain,
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5. ARGENTINA. Meat contract with the UK may not be fulfilled:
Argentina may fail by 40,000 tons to meet its meat contract with the
UK. By December only 105,000 tons had been shipped; the contract, which
expires on 23 April, was for 200,000 tons, (C Buenos Aires, Joint Weeka
56, 24 Jan 52)
Comment: Argentina formerly supplied about one third of the UK's
meat requirements and was an important source of meat for Allied
troops during the World War II. The current shortage is a result of
drought and increased domestic consumption. To augment the exportable
surplus of meat -- and critically needed foreign exchange earnings --
the government has ordered hotels and restaurants to serve no meat on
one day a week. '
6, Labor confederation plans hemisphere labor conference:: According
to reports from the US Embassies in Montevideo and Bogota, the Argentine
General Confederation of Labor is inviting labor groups to attend a
hemisphere labor conference in Asuncion, Paraguay, 7-1.9 February.
(C to Asuncion 117, 26 Jan 52)
Comment: In December a leading official of Mexico's second
largest labor federation stated that he expected "the Third Latin
American Labor Organization" to hold its constituent congress in February.
The US Embassy in Buenos Aires has commented that although Peronism does
not have large support in the Latin American labor movement,'it does
have sufficient strength to form a third federation, though skeletal in
nature.
The choice of Asuncion as the site of the conference may reflect
Argentina's attempt to de-emphasize its sponsorship of the meeting (see
OCI Daily Digest, 5 Oct 51).
7. CHILE. Visit of US labor delegation may be inadvisable: The US Embassy
in Santiago states, that, according to news services, a three-man US
labor delegation is being sent to Chile to combat Communism in labor
unions. The Embassy comments that Communist influence in Chileap labor
is admittedly strong and adds that the delicate political situation due
to current military aid negotiations makes it advisable for the
Department of State to use its influence to convince the ORIT (regional
wing of the non-Communist ICFTU) that the moment is not opportune for a
visit by US or OBIT leaders. (S Santiago 400, 30 Jan'52)
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8. MEXICO. Copper shipment believed destined for Orbit: The US Embassy
in Mexico City suspects that 23 tons of copper scrap shipped to Leo
Berberich in Antwerp from Veracruz on 16 January may be destined
"for the iron curtain." The vessel concerned also carried antimony,
zinc, and mercury for various firms in Western Europe. (C Mexico City
966, 30 Jan 52)
Comment: Some Mexican copper is very probably reaching the Orbit
by transshipment through ?"Western Europe, thou7h there is no reliable
evidence of direct shipments. The UIS State!Department?:has recently been
unofficially informed that "there is not the slightest possibility"
that Mexico will permit items listed in the Battle Act to be exported
to the Orbit. An unconfirmed report of 29 January, however, states
that shipments of raw materials, particularly copper, are being made
from Mexican ports to Canton.
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