DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000800210001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 16, 2016
• Document Release Date: December 21, 2004
• Sequence Number: 1
• Publication Date: March 14, 1952
• Content Type: SUMMARY

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DAILY DIGEST
Office of Current Intelligence
SECRET
CENTRAL INTELLIGENCE AGENCY
DIA AND DOS review(s) completed.
This summary of significant reports has been prepared pl iniarily
does
for the internal use of the office of Current Intelligence.
not represent a complete coverage all
Comments represent the
or in the Office of Current Intelligence. immediate views of the Office of Current Intelligence.
R llR TO AVIVES a RtCOROS Cf. T R
c. J s v. . ekqR c o r? Z
,k2.h. - d.? &, P." x.10
J. Appro d~ For Release 200
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14 March 1952
OCI No. 3i,-.93
Copy No. 256
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THIS MATERIAL CONTAINS THE ONATIO AL
DEFENSE OF THE UNITED STATES WTTH
C 793.iND Y94, THE TRANSMISSION
ESPIONAGE LAWSTITLE 18, 1SC s E
OR REVELATION OF WHICH IN ANY AANNER TO AN UNAUTHORIZED
PERSON IS PROHIBITED BY LAW.
SECTION 1 (SOVIET)
Soviet officials in Austria seeking Western markets
ov e o c a s in
SR
l.. US
a c are a
or oils ecen n a ons produced by
us r a are looking for Western markets for oil pthe oil fields under their control. Soviet
The move is interpreted as springing from the
operate the Soviet Enterprises in
need for schillings to op utilizin the in-
oilVfields.
25X1 Austria anoductiondoff theicultiesAustriinanfull
.,,.aacin~ -or
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trig have not kept
s
rk-rma.nV with the German m
r
oil as a means of procuring s sales.
arks earned by
Comment: Storage facilities in u
and increased
pace w3 rising production of crude shortage in teased
shipment eastwards is handicapped by ude
portation facilities. to use
The Soviet authorities may also be attempting
ategic materials from West
t
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4. YUGOSLAVIA. Creation of a new orthodox Communist Part
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exile reportea: a
s av a or g Hating with Yugoslav pro-Communist exiles states
that a "new genuinely revolutionary Communist Party of Yugo-
slavia' is being created by "true Yugoslav patriots."
The clandestine broadcast says that "the struggle for
the overthrow of the Tito fascist regime is gaining momentum
in all Yugoslav province'"- that the creation of a nes
Yugoslav Communist Party represents "a great historic stride
of our people." Yugoslav patriots are called upon first to
direct.their efforts towards the industrial centers of the
of the most revo-
"
the source
country, which should provide
munist Party."
C
om
lutionar cadres of the Yugoslav
Comment: These assertions constitute a new line in
anti-Two propaganda and follow the appeal by exile leader
Pero Popivoda calling for the formation of a national lib-
eration front in Yugoslavia. The article appeared in the
Cominform Journal and was republished in Pry
Although the broadcast fails to elaborate on the
creation of a new orthodox party or onthewhereabouts
949 that
its headquarters, it is the first suggestion Moscow is attempting to establish a rival party organiza-
tion in Yugoslavia or in the Satellites. However, no, con-
firmatory reports, suggesting increased Stalinist activity
or the creation of a party organization within Yugoslavia,
have been received. SECRET
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ana will Be man,
conversacaonawa to 'Iran
4. IRAN. Shah believes problem
sChi f soon: The a said that the Mossadeq gov-
erment oche US Military Mission,
will not be in power uof anmid
of the US Military Mission and
be solved when a new government takes over.contrurgednthat
the Mission continue temporarily without
emphasized the difficulties it would face inereturning if it
small
a was disappoint by the if left. TheShah rydtgiveneIran because he thought its
amount of military aid
Comment: The Shah's bE~~d f btheMini~o v e ~rn m stereMossadeq~st
remain in power may be inspired by Prime
recent statements that he intends Mtosaesignoafter the nawillates
Majlis meets in April. However,
on the question of his resignation.
eCCommand:
5. LIBYA. Defense Minister wants Libya etoejoin SMiddle rEast
eager-
~e ibyan e ense n s er as c
ness to participate in the proposed Middle EasMinit
strategic importance, he told the
make it an integral part of Middle East defenses; and the fact
that Libya's future lies in associattionowithrthenUniteduStates
and the United Kingdom makes it ready t
of free nations.
The Minister also discussed plans for the Libyan defense
force, saying that he looked to Britain for help in training
Libyan soldie to the United States-for "assistance in
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Comment: Newly-created Libya is not a member of the Arab
League, ancd is the only Arab country which has expressed a
positive desire to join the Command. While many Arab leaders
have privately shown interest in the MEC, none has dared to
support the idea in public for fear of antagonizing Egypt.
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SECTION 3 (WESTERN)
2. FRANCE. French Socialists may attempt to force British epartici-
pa on in uy o e acre ary-eneral of oSocialist arty, apparently plans to try to force Britainftomed
participate in the European Defense Community.
American officials in Paris that at the 22 March meeting
British Labor Party representatives his party wil -declare that Britain's participation is essential for Socialist
support of the EDC treaty.
The US Embassy in Paris infers that Mollet intends to
swing his party back to ratification if the maneuver fails, but
it questions his to do so i v
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Comment: Socialist support is essential for French
give d the middle-of-the-road
to dissident
pf ea re of the EDC,
enough since
deputies he
deare numerous Gaullists a majority against the measure.
tohtheBritish
EuropeanLabor
Although a powerful element
troopswithin
Army
Party favors committing British
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to prevent German domination, neither the Labor Party as a
whole nor the British Government is prepared to consider closer
political association with the Defense Community.
3e French National Assembly feels pressure of grass-root
is Neves a pu is opni on,
demands: The m asst' .n ar
US V
ho ably in the provinces," was the deciding factor in resolving
the most recent French Cabinet crisis. A "widespread and long
inning to demand
b
eg
over-due" reaction from voters who are
submersion of party differences in the national interest may
account for the unusual coherence of the center parties in
the investiture vote.
The Embassy also reports that the Gaullists' abstention,
"which was certainly not.what the General himself would have
liked," confirms an earlier estimate that there are about 60
participation-minded RPF deputies, 38 of whom allegedly
threatened to violate party discipline if the decision were
made to vote against the new Premier.
The Socialists also showed sensitivity to grass-roots
pressure when, by a very narrow margin, they voted to abstain
t f r defeating Pinav0
o
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rather than take the responsibili y
Comment: As the tempo of recurring cabinet crises quickens
and t Fe possibility of an advanced date for national elections
becomes greater, the parliamentary representatives will harken
to their constituents' demands. With a majority of the deputies
in the opposition, however, it is unlikely that Pinay will be
able to obtain adoption of the controversial financial measures
which must eventually be faced.
4e NETHERLANDS. Dutch and German EDC delegates deadlocked one
iituaTdefense guaran ee in a ens. Community rea y:
German an u c a ega es to the uropean a ens. ommunity
talks are still in basic disagreement on the mutual defense
guarantee in the Defense Community treaty, despite the efforts
of the French delegate to effect a compromise.
The Dutch delegate has suggested in private, however, that
his country might accept an "automatic" defense commitment if
the Brussels Pact as well as the North Atlantic Treaty is tied
to the EDC treaty. He believes that such a solution would bring
Britain into closer association with the Community, thus satis-
fying Dutch desires, and help solve t -"I' 1AZm of nutch commitments under the Brussels Pact.
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Comment: The Netherlands has taken the position that the
Defense-Community should not be able to take action in the event
of an attack without the unanimous consent of its member states.
The Dutch add that the possibility of the Community's acting
by itself is "preposterous," since it lacks certain essentials,
such as a strategic air force, for waging war.
The Germans regard a provision for the Community's automatic
and unanimous action as indispensable.
5. ITALY. Communist press echoes charges that United States is
us ni g B in orea: a ommun s are giv ng grea press
publicity to stories from Korea alleging that the US is spreading
bacilli behind the North Korean lines. The US Embassy in Rome
inspired "protests" from local labor
i
ve
is beginning to rece
d believes that despite official dens
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ot d to ush their campaign.
p
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Communists zn en
Comment: The Communists are doubtless striving to fan
anti- merican feeling among Italian workers in order to disrupt
defense production.
7. PORTUGAL-ANGOLA. Angolan trade aggravates Portugal's EPU
surplus pro em: Angola's 1951 trade s a is ics s ow a
record export balance of 35 million dollars. Despite a
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the
sharp increase in manganese asianeexport marketideclinedewhile
relative position of the US and Britain rose. The per-
that of the Netherlands, France, oing to Portugal also declined.
cents e of An ala's total exports g
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n
in
r
possible
$. UNITED KINGDOM.?.. Britain insists upon prohibiting German manu-
re ecre ary en as as e
r. ,n TZAR' ore g _ _
h
British
oare ansimp r tant
Comment: Angola's record exports wtthEurope
i'rtugal?s growing surplus almost EPU c.
1951 exceeded by
factor
cumulative surplus, which in December
10 million dollars the revised Portuguese quota of 95 million,
led Portuguese measures aimed at increasing ct imports o from and
curtailing g exports to EPU EPU countries. In thiQCUrengcti n, to p
whenever
iEu
les
operratare herbthan invtheadollar area.
ZaG l u~ c ..~ ._~o
es o recons er
s of influence mines
f t
e
e
e ni e
proposal to include magnetic ndbother tyited from manufacturing.
among the weapons Germany is to L
Britain is principally concerned at the danger of the USSR's
overrunning Germany and obtaining facilities for manufacturing
weapons which are a matter of Edenand
dependent upon sea nGermany c to make influence mines.
Sweden has already asked
According to Eden, neither Churchill nor DefennseBMinister
thin less an the P
Alexander i ac e
proposal.
Comment: The Allies had reahidcludesarmamenttrestrictions,
on Germs security controls, which
when Britain introduced aatodincludeainfluencenminesthe.
definition of guided missiles
American Embassy considers new Britishonbudget
9. ionary: m sassy n
not sufficiently e a
r is u ge as not sufficiently deflationary
roblem of reallo-
to provide a fiscal solution to Britain's P
eating resources for the maintenance ofntrttisn the solvency.
Although relying heavily on monetary c is still maintaining direct control on consumptioand
investment, thus implying a continuation of the present
suppressed inflation.
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However, the Embassy considers "very salutary" the changes
in budgetary approach which aim at giving the economy greater
flexibility by such methods as tax adjustments to provide
increased incentives.
F
Comment: The announced cuts in imports and the expected
increase in exports will leave a 1,820-million-dollar gap
between purchasing power and goods remaining for British con-
sumption in 1952. .Since the inflation inherent in a gap this
large is not likely to be offset satisfactorily by the prospective
surplus in the budget, the government is evidently relying
heavily on the raising of the bank rate from 2.5 to 4 percent
to discourage inflationary borrowing and reduce the supply of
money.
11. BRAZIL, Vargas approves US-Brazil military assistance agreement:
President Vargas has approved the US-Brazilian military
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assistance agreement, according to the Foreign Minister. The
latter agreed with US officials to having the signing ceremony
at the Foreign Office on 15 March, at which time he intends to
publicize the aerem.nt through h press, radio and television.
Comment: The talks were initiated by the United States
and Braz early in January, and the final agreement was reached
only after considerable negotiating.
Brazil is the third country to reach agreement on the
military assistance the US will grant to Latin American nations
under the Mutual Assistance Act. Negotiations with Mexico
were cancelled since no agreement could be reached at this time.
Ecuador and Peru have signed similar agreements. Other countries
with which the US has been negotiating are Colombia, Uruguay,
Chile and Cuba.
13. PANAMA. Batista coup may encourage extralegal activities in
'Panama: The Embassy n Panama reports a , according
To numerous rumors, the smoothness of operation of Batista's
coup in Cuba may encourage the forces of presidential candi-
date Remon to suspend civil liberties in Panama and to cancel
elections. The probability of such action will be heightened
if Arnulfo Arias agrees to join with the forces opposing
Remon's candidacy,
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Comment: Arnuifo Arias was released from jaiFebruarl the
pro_Remon majority in the National Assembly 7 y. was
a There has been no indication, however, fthatARemofo in able to
secure a promise of political support
for his release.
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