CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000800280001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: December 9, 2016
• Document Release Date: March 19, 2001
• Sequence Number: 1
• Publication Date: March 25, 1952
• Content Type: SUMMARY

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
25 March 1952
OCI No. 3900
Copy No. ~a 15
CURRENT INTELLIGENCE 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.
SECRET
SECUJ,ITY INFORMATION
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS., TITLE 189 USC9 SECSO 793 AND 7949 THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
1 o Large-scale antibiotic shipments from Italy to Hong Kong
continue o u -ua ~~~~~ y Agency on n Dane as
w e approval of 00priority assistance requests" from an
Italian pharmaceutical firm which had shipped 1509000 dollars
worth of chloroanycin to Hong Kong in 1951 o The Mission
points out that inasmuch as no Italian law prohibits such
shipments9 no illegal act was committed. Nevertheless9 such
trade represents a circumvention of United States embargo
lists. (C Rome TOMUS A-1259 7 Mar 52)
Comment-. The western European countries have refused
to add an i liotics to the COCOM embargo-list of goods
destined to the Orbit. When Italy agreed in 1948 to the
original embargo Lists l=A and l-B 9 drawn up by the United
States9 antibiotics were not included, The United States
added antibiotics to its lists in 1950.
2. Russia-Mongolia-China road freight to be handled by
separates ?ir~aan~~aa a e as announces ormatiean
of A u .vanes xx ra ns n a new organization under the Foreign Trade
Ministry9 to take charge of truck freighting into Mongolia
and China. QU AP Moscow9 22 Mar 52)
Comment -o Autovneshtrans apparently is a division of
Soyuzvn~e -__r&ns 9 the All-Union Corporation for transport-
expediting services of foreign trade freight turnover.
Establishment of this separate organization may indicate
an increase in truck traffic to Sinkiang Province 9 which has
several highway connections with the USSR9 and is also
probably in line with other recent reorganization of Soviet
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foreign trade agencies apparently undertaken to improve the
administrative set-up.
3. Russians charge United States promotes plan for in-
vasion o an a: a o Moscow charged that mer can mili?
ary spec a ists in Athens have been leaders in working out
the "Kitrilakis Plan" which allegedly calls, in part, for
an invasion of Albania by the Greek monarcho-fascists
assisted by the Titoites0 (R FBIS Moscow, 21 Mar 52)
Comment: In February 1951 Soviet propaganda first
charged a Nest with plotting against Albania in "Operation
Lightning," which planned the invasion of Albania in March
or April 1951. The Russians later claimed that the date
had been advanced to May or June.
Early in January 1952 the National Committee for Free
Albania requested Yugoslavia, Greece and Italy to issue a
joint statement pledging that they would respect Albania's
frontiers and allow the Hoxha regime to be overthrown from
within. This proposal has received some attention by the
respective foreign offices. The current Soviet reference
to aggressive plans against Albania probably is an indi-
cation that the USSR continues to be concerned about the
possible loss of Albania as a Satellite,
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4. Japanese Government takes anti-Soviet stand on two issues:
On 15 arc tTie os i a government announce at no passports
-:could be issued for travel to the USSR, basing its decision on
a passport law provision. banning travel in countries where the
individual's person or property may be in danger. In explaining
its position, the government again cited the USSR's retention
of 270,000 Japanese POW's.
The Japanese Government indicated on 16 March that if no
Allied decision on the future status of the Soviet mission in
Japan is made by the effective date of the peace treaty, Soviet
personnel will lose their diplomatic status. (S CINCFE Weeka
12, 22 Mar 52)
Comment: While the 16 March statement obviously attempts
to transfer responsibility for the future status of Soviet
personnel in Japan to the Allies, the Japanese stand on these
two issues may be intended to hasten Soviet formalization of
Russo-Japanese relations.
The Japanese Government reportedly will insist that any
settlement between the two nations must provide for the return
of the Habomai and Shikotan islands off Hokkaido and the return
of the Japanese POW's still in Soviet hands, The government's
stand on repatriation reportedly was transmitted to the USSR
mission within the past two weeks by Vice Foreign Minister
Iguchi.
5e Negotiations to merge the two South Korean Liberal parties
in progress: egot ations to merge the two South-Korean Liberal
jartaes -- the pro-Rhee elements mainly outside the legislature
and the anti-Rhee Liberals within the National Assembly -- have
been conducted continuously during the past two weeks, The
Rhee followers hope through a merger to gain control of the
Assembly. Liberals in the Assembly, on the other hand, are
negotiating mainly in the hope that Rhee's followers may be
lulled into a belief that the opposition representatives have
been won over, thus ending the President's campaign to intimidate
the National Assemblymen. The US Embassy doubts that the merger
will be achieved, but adds that the anti-Rhee elements will
maintain the pretense of desiring a merger in order to "keep
the tension down." (C Pusan Weeka 12, 21 Mar 52)
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6. Biological warfare campaign gains in Thailand: The Chinese
press in T ai and is current y giving full coverage to Communist
BW charges while playing down UN denials and recommendations
for a Red Cross investigation. Moreover, these papers have now
adopted the view that the charges are not only possible, but
are probable. The American Embassy in Bangkok states that the
situation requires urgent counteraction and suggests that the
State Department consider an intensification of the USIE counter-
propaganda campaign. (C Bangkok 2022, 21 Mar 52)
Comment: In Burma, pro-Communists are also exploiting the
BW charges with very little rebuttal.
NEAR EAST - AFRICA
7. French reform program for Tunisia awaits Bey's approval:
The French Cabinet has approved an "evo utionary an generous"
reform program for Tunisia which the Resident General may soon
present privately to the Bey. Presentation of the proposals
presupposes that the Bey will dismiss Prime Minister Chenik
and his cabinet.
According to the French Foreign Office, the proposed
reforms include the formation of a two-house legislative
assembly; reduction of cabinet posts to eight, with four to be
held and completely controlled by Tunisians; and opening all
civil service positions to qualified natives. France would
reserve absolute control over finances, defense and foreign
affairs, but after five years may allow the Tunisians to
administer public works and education. (S Paris 5796 and 5797,
22 Mar 52 )
Comment: This program probably will be acceptable to most
Tunisian'~ sm Personal antipathy between the Resident and the
Prime Minister, however, remains the principal stumbling block
to negotiation. If the Bey does not dismiss Chenik, France
may have to replace the Resident to obtain acceptance of its
program.
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WESTERN EUROPE
Italy requests British aid in dealing with Trieste situation:
Italian Premier a asper as as e t e Britis mbassador in
Rome to assist in easing the situation in Trieste, where pro-
Italian nationalists demonstrating for the return of the Free
Territory to Italy have twice clashed with the civil police.
This assistance would be exerted through the Allied Military Com-
mander, General Winterton, who is a British national.
The American Political Adviser in Trieste states there is
clear evidence that the Italian Government not only gave fin-
ancial and moral support to the demonstrations on 20 and 22
March, but did little to quiet the resultant disorders. (S
Rome 1121, 22 Mar 52; S POLAD Trieste 870, 22 Mar 52)
Comment: Demonstrations in support of Italy's position
on Traest~ave now spread to Rome. The government is likely to
continue unofficially to sponsor further demonstrations in both
Trieste and Italy in order to strengthen its position before
the forthcoming elections.
Allied Commander recommends postponement of Trieste elections:
Genera interton as recommended t e postponement o commune
elections scheduled for this spring on the-grounds that announce-
ment of an election to be held under the Italian electoral law
would be interpreted as a concession to pro-Italian pressures
and would only serve as an incitement to further disorder.
A continued postponement of the communal election- .,,,,,.i
be received with some favor by pro-Italian groups who hesitate
to risk their majority in an electoral trial of strength, ac-
cording to General Winterton.' (S Trieste 870, 22 Mar 52)
Comment: An official announcement setting an election date
concurrent with Italian local elections in May and the adoption
of the Italian. electoral law which would favor a joint list of
pro-Italian parties in Trieste is scheduled to be issued by the
Allied Military Government before the end of March.
Informed observers believe that pro-Italian leaders are
somewhat apprehensive over the results of an election which
would doubtless reflect the growth of independentist sentiment.
The introduction of a linked-list system is designed to preserve
the present political majority of the pro-Italian parties,
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Nw-
25X6
25X1 C
25X1 C
25X1A
Minister President, was specifics y
ities to mention the border question in any statements, or to was tol make any reference the der-Neisse ford
that t Minister President
man of the as erman r s ianll forbidden by Soviet author-
Otto Nusc ke, Cha
n 17 March
,
o
Democratic Union and Deputy
mentioning the Oder?Neisse linen
ment i e ne was a mos
nt Soviet note on a German peace
of the rece
in contrast to the reaction to
no es, o n Minister Dertinger and other
cials did not speculate on the sincerity of
f
e Oder Ne
tion of
se lin
men
Comment z The absence o
SR
th
in the in currentmmunist propaganda sugg
fact, prohibited discussion of ite Although the Russians might
eventually use the Polish-administered lands in bargaining with
West Germany, it is unlikely to do so until it is clear that
there will be no four-power conference as a 'result of the 10
March note.
25X1 C
omission of
T gnif icant part
treaty.
previous Soviet
government off i-
the Russian offer.
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dditional economic aid this
Austrians seen looking for a
year: Mutual ecurity gency o ficials in Paris interpret the
ustrian OEEC delegate's recent reference to thecpossi iity
as-
of ,stop gap" aid as a "feeler"
sistance to Austria during the current fiscal year. (C Paris
REPTO 1317, 20 Mar 52)
Comment: The allocation of
in econoid was more generous
had anticipated, but considerably smaller than the Austrians
had hoped for. This figure was in factepredicatedfuppon,expic-
tations regarding Austrian exports
de the
American officials in Vienna conceded
tic _.".Austria ss 1951 foreign ,. _ s-
of 1950, and despite some favorable counte inflationary meas-
ures ures :ndertaken at the end of last year, the program which American officials
yetpemergeddfromtgovernmentn
Government in January has
consultations.
Terms of 1952 Italo-USSR trade agreement announced: Affter
more t an six moat s o negotiations .ta y an t e ~hav
finally agreed upon the lists of comsrodities to be exchanged
during 1952. The final quotas are approximatel the
those reported last November. Italian
cork~xtextiles~loils~iand
primarily of citrus fruit, spices, 500 million lire worth of
roller bearings. Italy will ship to t ball and roller bearing4s,00amills 1950heandlnonelinn1951~
worth shipped in 1949,
Italian imports will consist, among eother
l, th00g000of 110,000
anthracite , of
un-
tons of wheat, 100,000 tons of
petroleum products, and 320e0Q0a~?,eementmwhgcheItalyeconcluded
utilized quotas of the 3-yi
with the USSR in 1948 covering industrial products still re-
main in effect. (C Rome 4115, 21 Mar 52)
Comment: The terms of the trade agreement confirmlearlier
indications that it would be favorable to Italy. Somln
industrialists believe that this agreement represents the195st 2 their country can for in trae with hope businessmentwouldsbedunlikely to
and d that consequently Italian benefit from attendance at the Moscow Economic Conference.
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ilR"
14. Italy indicates views toward. European agricultural in-
tegration plan' T e talian Minister of griculture as in-
1orme merican Embassy officials in Rome of the questions
Italy will take up at the current discussions in Paris on
western European agricultural integration. Italy will ask
for the establishment of a European pool for financing the
development and operation of idle but potentially good land,
using surplus manpower from Italy and other countries to farm
this land. All countries would contribute funds for financing,
including EPU surpluses when appropriate. No central price
control would be agreed to unless accompanied by central cur-
rency control.
Italy is also interested in knowing the relationship of
North Africa to such a European agricultural pool. (C Rome
4129, 22 Mar 52)
Comment: The Italian proposals are consonant with the
country's ever present objective of ameliorating its surplus
manpower problem through western European economic integration.
LATIN AMERICA
Bolivian President told that army chief must be removed-
Lt. Colo Orsini,. lea er o a group w is deman s c angel in
the junta and army command, reportedly told President Ballivian
on 19 March that General Torres, commanding general of the
Bolivian Army, must be removed. Ballivian is said to have re-
plied that it was not the proper time to make such a move and
that Torres had asked to retain his position until after new
elections, Orsini informed the US Air Attache in La Paz that
if Torres is moved his group will take steps to obtain5X1A
his ouster.
Comment: Ballivian`s knowledge of Orsini's intentions
and orres reported return to La Paz. should aid the junta in.
countering Orsini's threats (see Current Intelligence Digest,
18 Mar 52)4
16 Small number of noncommissioned officers in Brazilian
Army arrested: enera culides Zeno o, feeling t at the
razzl awn resident's failure to date to accept his resign-
ation constitutes support for his position, is proceeding
with a Communist purge. So far about twenty noncommissioned
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officers have been arrested. (U USARMA Rio 1036, 24 Mar 52)
Comment: Despite Zenobio's action, the Communist Party
has contP inue~ to plan for demonstrations today, the 30th.an-
niversary of the founding of their party. Police in Rio and
Sao Paulo have been alerted.
Ambassador Beaulac recommends recognition of Batista
regime n u a: m assa or Beau ac consi ers t at a the
Hite tates overnment's conditions for the recognition
of a government have been met by the new regime in Cuba and
suggests that recognition be extended on 27 March. (C Havana
673, 22 Mar 52)
Comment: Delay in recognition has been prompted by the
Unite tates' concern that its recognition not indicate ap-
proval of how Batista assumed power and also by the desire to
minimize the adverse impact which the Batista coup is likely
to have in other Latin American countries where elections are
being held this year (see Current Intelligence Digest, 17 Mar
52). The United States plans to coordinate its'action on re-
cognition with other governments. France, Spain, Switzerland,
Nationalist China, and eleven Latin American countries have
already recognized the Batista government.
Anti-Communists hold orderly demonstration in Guatemala:.
About , persons participated in an or erly anti- ommunist
demonstration in Guatemala City on 23 March. Despite fore-
bodings of disorder, no incidents occurred. Counterdemons-
trations called for by Communist labor leaders were cancelled
by government order.
The demonstrators demanded that the government immediately
outlaw the Communist Party, deport foreign Communist agents,
dismiss pro-Communist office holders, and revise its foreign
policy to "re-establish harmony with the other American countries,"
If these demands are not met, "larger and larger demonstrations
will follow," say the anti-Communists. (R Guatemala City 323,
23 Mar 52; NY Times, 24 Mar 52)
Comment: Considerable apprehension on the part of the
governme preceded the demonstrations. Pro-government forces
were alerted to defend the government "by bearing arms if nec-
essary." The government's decision to prohibit counterdemons-
trations probably prevented rioting and bloodshed (see Current
Intelligence Digest, 19 Mar 52)
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The anti-Communist leaders had estimated that,up to
100,000 persons would participate in the demonstrations on
23 March. While only 20,000 are reported to have taken
part, the demonstration nevertheless indicates the growing
strength and organization of the anti-Communist movement
in Guatemala.
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TOP SECRET
SECURITY INFORMATION
25 March 1952
US OFFICIALS ONLY CIA No. 49592
Copy No. 4 b
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
(including S/S Cables)
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
greports in CIA
not represent a complete coverage of all current
or in the Office of Current Intelligence. Comments represent the
immediate views of the Office of Current Intelligence.
TOP SECRET
SECURITY INFORMATION
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TOP SECRET
THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
Britain and Commonwealth cool to suggested Japanese
participation in o om o lan to ks: The rites vernment
as rejecte e merican sugges ion that it propose inviting
a SCAP representative to observe on behalf of Japan the current
Karachi meeting of the Commonwealth Colombo Plan consultative
committee. Britain would, however, support such a move clearly
initiated by the United States.
The American observer at Karachi advises against pressing
the matter now, since the consensus among "key"delegates is
unfavorable, even though most favor some form of Japanese associ-
ation eventually. (S S/S Karachi 1039, 21 Mar 52)
Comment: The British Government's attitude on the role
Japan m ght eventually play in the Colombo Plan for the dconomic
development of South and Southeast Asia has not been revealed,
but London's unwillingness to take the initiative at this time
does not detract from earlier expressions of general interest in
Japanese participation by some British officials. Indications
are that a British desire to develop additional means of control
over Japan's economic resurgence in the area would loom large in
any later British approval of Japanese participation..
WESTERN EUROPE
Tripartite talks give some hope for Saar "truce": The,
American Embassy in Paris, commenting on t e 20 March talks
among French Foreign Minister Schuman, Chancellor Adenauer, and
Saar President Hoffman, notes that the Germans and French have
agreed to pursue conversations looking toward a definitive
settlement of the Saar question prior to the conclusion of a
German peace treaty. They have also agreed to examine --
TOP SECRET
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together with Saar representatives -- electoral conditions in
the Saar, The Embassy believes that the forthcoming talks will
bring a temporary truce in the present dispute.
Nevertheless, the Embassy doubts that there was a "meeting
of minds" at the 20 March conference. It points out that the
French reject the German interpretation that the agreement means
the right of pro-German parties to operate in the Saar. Further-
more, there are strong indications that the French Government
will not allow a new Saar legislature to reopen the question of
the French-Saar economic union.
25X6
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