CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000900100001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 19
• Document Creation Date: December 12, 2016
• Document Release Date: January 11, 2002
• Sequence Number: 1
• Publication Date: April 14, 1952
• Content Type: SUMMARY

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SECRET
SECURITY INFORMATION
14 April 1952
US OFFICIALS ONLY OCI No. 5158
Copy No.
CURRENT INTELLIGENCE DIGEST
266
OGAs Review Completed
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.
RETURN TO ARCHIVES a RECORDS CENTER SECURITY SECRET
INFORMATION
IMMEDIATELY AFTER USE
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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.
1. Sino-Soviet agreement on supply of military equipment
25X1C disclose : It he USSR agreed to
supply weapons valued at 1.4 billion rubles (350 million
dollars at the official rate of exchange) to the Communist
Chinese between July 1951 and May of this year.
The weapons include 500 artillery pieces, 290 medium
tanks and armored vehicles, 780 fighter planes, 54 bombers,
and antiaircraft equipment.
The Chinese agreed to pay 1.15 billion rubles in raw
materials, gold and foreign exchange during 1952. The re-
maining 250 million rubles are to be a Soviet credit to
China covering the value of the planes supplied. The planes
are to be returned to the USSR after the Korean conflict,
with China paying for destroyed aircraft.
25X1A
Comment: The report is quite plausible and fairly con-
sistent wi z general informatiorn on the increased amount of
Soviet military equipment available to China over the past
nine months.
The alleged reimbursement terms -- 1.15 billion rubles
or almost 300 million dollars during 1952 -- would put a
heavy but not impossible burden on China. Its gold and
foreign exchange resources are depleted, but revenues from
current.exports can be allocated for the purchase of mili-
tary equipment. Total Chinese Communist revenues from ex-
ports in 1951 have been estimated at some 700 million
dollars, the bulk coming from deliveries to the USSR and
other Orbit countries.
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20 Greece and Turkey asked to state forces available to
NATO comman he ree and Tur is De ens Ministries have
15een--as-Fe-TTY the Supreme Allied Commander, Europe9 to state
what land and air forces they are prepared to make available
to NATO. This information, which has been supplied by all
other NATO countries, is needed for planning purposes on
both an emergency and a longterm basis, General Eisenhower
has therefore requested that the data be broken down into
specified categories covering forces immediately available
and those earmarked for assignment on M-day and thereafter.
(C NATO SH22948 SACEUR Paris, 9 Apr 52)
Comment: If the Greeks and Turks balk at furnishing
this in ormation at the present time, it will be because
of their desire to get a prior settlement of their exact
position under the Southern European command,
EASTERN EUROPE
38 Albanian Cabinet reshuffled following second congress
of Al avian or ers ar y: Accor ing to an Albanian news
roa eas 9 anus y"mice President of the Council of
Ministers, and Josif Pachko, Minister of State Control, have
been shifted to "other important posts," Minister of Educa-
tion Kahreman Ylli and Minister of Stockpiling Defter Goga
have also been relieved of their cabinet posts. Major General
Bedri Spahiu, who was not reelected to the Albanian Polit-
buro at the recent party congress, has been named Minister
of Education and a vice premier. (R FBIS, 11 Apr 52)
Comment: Both Myftiu and Pachko were elected to the
Party ecretariat at the recent party congress. Myftiu
was also named a candidate Politburo member. Their removal
from their governmental posts apparently reflects a trend
to free party officials from specific governmental duties
for broader party responsibilities, In March 1951 Rita
Marko was released from his post of Minister of Industry
for "more important duties." The nature of these duties
was partially clarified at the recent party congress when
Marko was named as member of the Party Secretariat and a
candidate member of the Politburo.
The release of the Ministers of Education and Stock-
piling probably reflects the failure of the anti-illiteracy
campaign and the agricultural collection drive which were
criticized in the reports given at the recent party congress.
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4. Bulgarian Fatherland Front plans third congress: The
third congress o e ` garian F`a-t.ierlalr?on s 'scheduled
for 16 and 17 May. The agenda is to include the election of
new officers, a report by the Finance Control Commission,
discussion of the program of the Front and the tasks which
stand before it, and consideration of amendments and changes
in the organization's statutes. (R FBIS Sofia, 9 Apr 52)
Comment: Since the last congress of.the Fatherland
Front was convened in February, 1948, three of the then ex-
isting five coalition parties have either been disbanded
or "absorbed" by the Communist Party. Although the National
Agrarian Union has been allowed to survive, at least in name,
as a salve to the peasant population, this party, too,
has become a mere cat's-paw of the all-powerful Communist
Party of Bulgaria.
The 1948 congress of the Fatherland Front was convened
for the purpose of "reorganizing the Front into a united
people's social-political organization with a common new
program, compulsory discipline and electoral boards." It
is likely that the May congress has been called in order
that the Front's functions might be reassessed and re-
directed in the light of the very considerable changes which
have been effected in Bulgarian politics during the past
four years.
5. Important new alumina plant reported to be in production
in Hungary: a Danu a Va ley Alumina lent a Almas uzi o
neaama.ron reportedly is now in production. The plant,
which belongs to the Hungarian-Soviet Bauxite and Aluminum
Industry, allegedly has a capacity of 60,000 metric tons
and a target of 120,000 tons. The plant management is said
ustic
i
ng ca
to have experienced great difficulty in obtain
soda, formerly supplied by Yugoslavia, whicch is necessary
l
25X1A
an .
for the Bayer process employed by the p
The reported production figures indicate
nt
C
omme
:
that unga.r.an production of alumina, used to make aluminum,
has increased substantially. Alumina production in 1951
was estimated at some 40,000 metric tons.
The Almasfuzito plant, started during the war, exported
alumina to Germany. Hungarian reports claim that the new
plant may change the character of the aluminum industry,
since more than half the bauxite produced in the country
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might be processed locally. Nevertheless, increased pro-
duction of aluminum will be dependent upon caustic soda
and electric power resources.
6. Belgrade Embassy analyzes Communist Party weaknesses
in Slovenia: On the basis of a conversation wit Bor s
Krajger, Slovene Interior Minister, on the stimuli under-
lying the current Communist Party revitalization drive,
American Embassy officials in Belgrade believe that the
party position in Slovenia is weaker than anywhere else
in Yugoslavia and that the present situation presents in-
creased opportunities for Cominform penetration, Krajger
believes that Cominform propaganda has convinced many party
members that Tito is abandoning socialism, but that the
principal problem facing the. party in Slovenia is the power-
ful influence of Western culture which is causing Communists
to compromise their doctrinaire stand.
Cominform propaganda directed to Slovenia is described
by Krajger as particularly effective due largely to the ex-
cellent reception of Radio Budapest programs in Slovenia,
which can be heard more clearly in Ljubljana than the local
station. A relaxation of travel restrictions between
Slovenia and neighboring Austria and Trieste has also in-
creased Cominform sabotage, particularly on trains entering
Yugoslavia from Trieste and Gorizia, and the dissemination
of propaganda in Slovenia, according to Krajger,
However, American officials feel that despite current
party weaknesses, which prejudice party control of the
economy and alienate popular support, over-all party control
is not significantly threatened, (S Belgrade Dispatch
839, 5 Mar 52)
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FAR EAST
*in shipments to the Soviet
25X1A
China plans to increase gr ec a in ate
bloc: T e eiping Government reporte y
-F - i n to the USSR and its
pressed his views on such e p e shipping space.
continue as long as the Communists can find Yugoslav missionaries deporteddmfromriCChina: Kunming-
radio announce the epos ati
slav missionaries, describing them as "imperialist ele-
ments." (R FBIS, 11 Apr 52)
-
to In i.a, w ich has shown less
this year. It is believed that China w~ann?exportiousillion ser
tons of grain, but very little rice,
restricting domestic consumption. The value of a million
tons of coarse grains would be about 50 million dollars.
Credits arranged for large Ceylonese rubber shipment
to China: re its ave been opens in Cey on to cover the . Ad s ipmen of 6,000 tons of bbince aoPolishtvessel withdi-
tional credits credits may be opened, since
call at Ceylon by the
space for 7,000 tons reportedly
end of April. (C Colombo 57, 9 Apr 52)
Comment: These credits make possible the largest
cargo o ru er yet sent from Ceyl lot Ch China
Thus far in 1952, shipments of rubber from Cey oar, a
have totaled ofsa.b?utn535000totsswasTshipped~ding y
single cargo
have
American to
been unsuccessful in halting r
Communists. The new Prime Xi~rtserbuut they?will sprobably
a grew ex-
March to increase e-Y-
European Satellites in 1952 to a millercentnof this grain
pansion of the 1951 figure barter
the grain for in 100
million dollars worth of str
the report.
Comment: Most of China's 1951
4
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Comment: The Chinese Communists emphatically denounced
Tito w ei n e broke with the Cominform in 1948, and Yugoslav
recognition of the Peiping regime in 1949 went unacknowledged.
From time to time Yugoslav officials have expressed hope that
China might be a potential "Titoist" state, and at intervals
Peiping has reminded its people of the menace of Yugoslavia.
Appointments in Chinese Nationalist high command reported:
term, subject to a two year extension by the President. Kwei's
new post has high rank but little authority.
Reports from Formosa over the past year have indicated
that all branches of the service except the ground forces
have cooperated with MAAG. General Sun is reported to have
been uncooperative and to have questioned the willingness and
ability of the United States to reorganize and re-equip the
Nationalist Forces.
of the Nationalist Navy, as chief military aide to Chiang Kai-
shek was announced on 10 April. At the same time, General
Sun Li-jen was reappointed as commander of the Chinese ground
forces for another two years. (R ALUSNA Taipei, 10 Apr 52)
Comment: Kwei resigned early in April in conformance
with TRe new Ministry of National Defense regulation which
limits the incumbents of top command positions to a two year
11. Viet Minh stresses guerrilla operations in Tonkin: The
Viet in g command is riving to keep its in i Crated
regiments in the Tonkin delta until the rainy season, when
it is expected that the French will be forced to relax their
25X1C pressure)
the French-held area.
Viet Minh units north of the delta have the mission of
diverting French troops from current clearing operations
and may undertake a limited offensive to reduce the size of
Comment: The flooding of the delta during the summer
rains, while curtailing the operations of both the French
and Viet Minh, is more harmful to the French in that it
handicaps their air and armor capabilities more drastically
than it does the Viet Minh's guerrilla warfare.
Recent reports state that the Viet Minh forces north of
the delta, omprising more than two battle-worn divisions,
are regrouping.
25X1A
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12.
25X1 C
compa"E lTy have in the past precluded co
union of the two Communist groups.
Reports have been received that Communist China has
specified a settlement of the factional dispute as a pre-
requisite for substantial material aid.
Comment: Personal rivalries rather than ideological in-
1laboration or
25X1 C
Rival Communist factions in Burma agree to collaborate: 25X10 111
11 the two insurgent Communist parties in Burma have now com-
posed their long-standing differences. An agreement reached
in December calls for cessation of armed conflict, collabora-
tion in fighting the government and eff rts to merge into a
single Communist party. 25X1A
2A
Karens and Burmese Communists continue to discuss al-
liance: epresentatlve i tut ia3uy sZ== =>w- 25X1 C
25X1C ommunists are reportedl
25X1C to have met on about I 25X1C
March and agree to a formation of a separate Karen state
when the Burmese Government is overthrown. Concurrence was
also reached to hold further discussions prior to a final
meeting between the top leaders to establish a "common
pnliny summer.
14 This conference is scheansledhitforted early within the
25X1A FOR CRITICAL SECURITY
REASONS this report must n 25X1A
United States or beyond the borders of the United States
without the express permission of the releasing office.)
Comment: Recent reports on the progress of Karen-
Communist negotiations have been conflicting. This infor-
mation oreetefthe fortsmtonobtainrancalliancegwithlthe
heretofore fruitless
Karens.
14. New Indonesian Cabinet may be short-lived: A promi-
~ i nnn Ar v ~ e po i.tical group
nent o111eiai %J.L ,,L.U -..,..___- - - -
which was responsible for forming the new government, told
an American Embassy official that his party was "very pes-
simistic" over the cabinet and did not "see how it can
last long."
The American Ambassador reports that most observers
are adopting
Djakarta 1494, on
survivalt and
chances of
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Comment: National Party pessimism undoubtedly derives
from its lack of influence in the recently formed cabinet,
even though that body was selected by a National Party
member, Premier Wilopo.
The cabinet is a coalition of eight parties and several
independents and is thus subject to inevitable internal dis-
sension. The timing of such a development will largely
determine the length of its existence.
15. Leftist Ceylonese parties form coalition: Former Minis-
ter of Health Ban aranai e, leader of the leftist Ceylonese
Freedom Party, and the Trotskyite Party have combined forces
to threaten the incumbent United National Party coalition at
the general elections in May. (R FBIS, 10 Apr 52)
Comment: Bandaranaike resigned last July over policy
and subsequently made coalition approaches toward the
Trotskyites. The resultant opposition coalition, by means
of its increased voting power, may lessen the United National
Party coalition's hold on the government which until now has
been maintained by a small parliamentary majority. Also, the
United National coalition may lose effective control of the
government if forced to make unreasonable compromises in
exchange for independent votes.
16, Indian Government agrees to continue negotiations on
Kashmir: The overnment o n is has informed representa-
tive Graham that it is willing to continue negotiations on
the Kashmir issue. It stated that it has no objection to
participation in the negotiateions by Admiral Nimitz, plebis-
cite administrator designate, provided his impartiality in
arranging for a subsequent plebiscite is not prejudiced.
(S New York 698, 11 Apr 52)
Comment: India's agreement to Graham's suggestion
practically assures that negotiations will be continued. It
does not necessarily increase the likelihood that they will
be successful.
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17. Iranian Prime Minister admits inability to
Great Britain has been 's ngu ar y successful" in preventing
reopening of the Iranian oil industry, Prime Minister Mossa-
deq told the American Ambassador, and Iran has so far been
unable to sell a "single drop of oil." Mossadeq again added
that anti-British sentiment is so strong that law and order
would be threatened if British technicians returned to the
oil fields. (S Tehran 3860, 10 Apr 52)
Comment: Western oil companies, fearful of jeopardizing
their world-wide operations, have refused to make offers for
Iranian oil.
18. Egypt facing serious financial difficulties. In spite
of Bri.ta n s recent release o en million poun s sterling
to Egypt, Prime Minister Hilali Pasha faces a deteriorating
financial situation, Egypt's rapid consumption of its
sterling reserves at the rate of eight million pounds per
month since 1 January places British currency "virtually
in the category of hard currency" as far as Egypt is con-
cerned.
There is evidence already that the government's finances
are facing an increasing strain because of the diminished
international demand for Egyptian cotton, the burden of
governmental subsidization of living costs, and the loss of
income from taxes resulting from the. general trade recession.
(S USARMA Cairo 681, 10 Apr 52)
Comment: The culmination of serious economic as well
as po i ica problems during recent weeks in Egypt under-
mines the stability of the Hilali Cabinet, which has the
support of the King,but no substantial popular backing.
19. Bey delayed Tunisian Cabinet appointments until Security
Council acted: According to a reliable Tunislan journalist;
the Bey was stalling" approval of cabinet appointments
until after the Security Council had acted on the Tunisian
question. Consequently the Residency General in Tunis, in
order to aid France's UN delegation in defending its posi-
tion, authorized a fictitious press release stating that the
cabinet had already been formed.
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Prime Minister Baccouche and the cabinet nominees are
said to be "growing nervous" oovver52~arges that they are
Quislings. (C Tunis 152, 10 Comment: After the Security Council on 10 April again
indefin ely postponed a vote to place the Tunisian case on
Bey
cabinetpressure
its agenda, theFrench probably therenewed
l2 April.
and forced the installation
20. Nationalists avoid violence in Tangier: incordingrto
informat on rece ve a e mer can
the leaders of the principal Moroccan nationalist party,
ution that they
pop un-
early recurrence ofevilocal olenceoisc
likely.
The city has been outwardly normal during the past
week. The trial on 8 April of the Moroccans arrested as a
result of the 30 March riots and the 9 April anniversary
date of the Sultan's 1947 visit passed without incident.
(C Tangier 334, 9 Apr 52)
Comment: As a precautionary measure against new dis-
orders,local police have been reinforced by French and
Spanish troops. Spain, however, has seized upon the 30 March
violence to accuse the Zone's administration of weakness and
to demand a larger share in its control.
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21. Problems facing European Defense Community may bring
impasse, Both France and thee~ Net erl.an s ave introduceU new
proposals at the European Defense Community treaty talks in
Paris. The French proposal recognizes the necessity of a
military territorial organization, but rules out a central
military command at the national level, thus precluding the re-
creation of a hidden German national army. Despite the chief
German delegate?s continued insistence on the need for a military
organization at the national level, the French claim that their
proposal is the minimum which the National Assembly will accept.
The Dutch delegate has proposed new amendments to govern
the Community's use of direct American aid under every conceivable
circumstance, although agreement was thought to have been reached
already on the method of handling foreign financial aid. (S
Paris 6207 and 6260 9 and 10 Apr 52)
Comment: Continued intransigence by the Netherlands may
upsetmetable for initialing the draft treaty this week.
Nearly all of Germany?s leaders reject the idea of a
national army, and the Federal Republic will probably accept the
French proposals in time, Agreement must still be reached for
the simultaneous signing of the Defense Community treaty and
the Allied-German contractual agreement, now scheduled for late
May.
22. United Nations Commission makes final request for admittance
into East Germany- The U Commis on investigating a _ erman
elections has sent the Soviet Commander in East Germany a final
request for admittance. If no reply is received by 27 April,
the Commission will report to the UN Secretary General that it
could not fulfill its mission because of East German nonco-
operation. (C Geneva 761, 9 Apr 52)
Comment: The Commission has been in Geneva since its
unsuccessful attempt to enter East Germany from Berlin three
weeks ago. The Commission, in delaying its report, wanted
to give the Soviet Union an opportunity to answer the Allied
25 April note before taking any action. The rejection of the
Commission in the Soviet Union's 9 April note will be taken
into account in the report.
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23. West Germans sense French intention to review treaties if
Germany is unified. The est erman delegation at the Paris
European Defense Treaty conference has concluded from remarks
of the French Foreign Minister that France will want to re-
negotiate the Schuman Plan and EDC treaties if Germany is
unified. The Germans oppose this idea, which they believe
is inspired by the desire to maintain French parity of repre-
sentation in the EDC and Schuman Plan voting councils. (S Paris
6162, 7 Apr 52)
Comment! To avoid being overshadowed in the EDC and Schuman
Plan organizations by a large, unified Germany, France would
naturally want voting and other procedures adjusted, It is most
improbable that a unified Germany would be admitted into the
EDC, though it might be allowed to join the Schuman Plan.
Nevertheless9French talk now on renegotiating the treaties will
weaken Adenauer?s ability to cope with opposition arguments
against his Western integration policies.
British Conservative Party concerned about
unpopu ar ty. has
to the American Embassy in London that the Conservatives are
acutely aware of their unpopularity as evidenced it Gallup polls
since January and confirmed in the recent local elections.
Party strategists attribute this in part to their inadequate
public relations methods, as contrasted with the effective way
the Labor press and the frequent speeches of Labor?s ex-Ministers
have hammered at the government's economic measures. (C London
4561, 10 Apr 52)
Comment: One index of the effectiveness of this Labor
propagates a Gallup poll on public reaction to the govern-
ment's 11 March budget. Of those questioned on 17 March,
62 percent thought the budget a "fair" one; of those questioned
on 31 March, only 50 percent thought so.
The growing fear of unemployment has also contributed to
.this swing away from the government. In Lancashire, where
most of the 75,000 unemployed cotton textile workers are
concentrated, the Labor Party last week captured control of
the County Council for the first time in its history. In
mid-March, 2.1 percent of the total working population were
registered as jobless ?? the highest percentage since the
widespread shutdown forced by the coal crisis of 1947?
its growing
25X1X
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25.
25X1 C
25X1 C
25X1A
-7 1~ the
new MNR government will be a~io BS an anti?Communist and will
have a pro-Argentine orienta
The new government is said to be considering the
ads
il
o
ro
ization of the tin mines and.ra
25X1 C
25X1 C
25X1 C
25X1 C
25X1A
25X1A
Comment: The Eva Peron Social Aid Foundation ahnasmannounced
that it~s Argentine doctors, nurses,
11
supplies to aid the victims of the Boliviistaan r volytion.or At the
same time the Argentine La Prensa, Peron da and n of
praised the great triumph"
the General Confederation of L6r , pof Bolivian workers.
Communist labor front in Guatemala appears to be disinte-
26. workers? union
grating: Four loca s of t e Guatemalan railway
MF have passed conemning
union
Communists within the
drawal from the Communist-led an
Workers (CGTG). These four
majority of SAMF?s membership.
The leaders of at least t? withdrawal f~omctheuCGTGuandns
have reportedly announced their
ordered members not to participate in the C5mmunisstts' May9Day
parade. (R Guatemala City Weeka 14, 4 Apr 2; U NY 10 and 11 Apr 52; R FBIS, 10 Apr 52)
Comment: Considerable dissension has developed. in
Guatemalan labor over the issue of Communist control. Com- icism
munist labor leaders have been subjected to g
for engaging in political activities to the detriment of their
union duties.
Labor unionism has been probably the most important avenue
of Communist penetratin Guatemala a
considerably weaken the
a whole.
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13
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LATIN AMERICA
New Bolivian Government will be pr -Argentine-
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*Awe
TOP SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
TOP SECRET SUPPLEMENT
14 April 1952
CIA No. 49611
Copy No.
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
Current Intelligen primarilyIt does
for the internal use of the Office of
not represent a complete coverage of all
Comments represent the
or in the Office of Current Intelligence.
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.
FAR EAST
1. South Koreans claim Japanese
sincerity
negotiations: Yang You Cnan, chief South Korean negotiator
in Tokyo, revealed to an American Embassy official in Pusan
on 9 April that the South Korea Government is prepared to
break off negotiations with Japan rather than admit the
validity of Japanese property claims in Korea. On the
other nand, if Japan shows "sincerity" in the negotiations,
it will be welcomed as a leader of Free Asia, Yang said,
adding that success or failure is "now up to the United
States."
President Rhee, to whom Yang reports directly, has
also commented on Japan's lack of "sincerity."
Ambassador Muccio suspects that when Yang returns to
Tokyo he may issue a new ultimatum to the Japanese. If
they do not alter their stand, the Koreans "will take off
on an emotional joyride of hatred and vilification" against
Japan while appealing for United States support. (C S/S
Pusan 985, 10 Apr 52)
Comment: Japanese claims to property in Korea were
proba ydeesigned to offset South Korean claims to property
in Japan belonging to Japanese firms whose headquarters
formerly were in Korea.
2. Mossadeq accuses British of election interference:
Prime Minister Mossa eq as to t e American m assn or
that despite British efforts to slow the elections and
thus delay formal convocation of the Majlis, he hoped that
a formal meeting could be held in about two weeks. He
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asserted that eighty percent of the deputies were the "choice
of the people" and that in spite of British interference only
a few "British stooges" nave been elected.
Mossadeq stated that he did not know what attitude the
new body would take toward his government, but that the Maj-
lis would immediately be faced with making decisions of a
very grave nature. (S S/S Tehran 3861, 10 Apr 52)
Comment.- National Front rigging of the election has
slowed t e alloting and prevented assembly of the Majliso
Mossadeq's anti-British diatribes suggest that he will
continue to depend primarily upon this line to gain support
for his policies. The new strongly pro-National Front Majlis
may be expected to widen the gap between Iran and the West,
3, Iranian Prime Minister sees no satisfactory way out of
financial crisis.- Prime minister Mosses eq states that he
does not now ow his government can survive the financial
problems facing it in the next few weeks. Discussing the
situation with the American Ambassador on 9 April, Mossa-
deq said that increased taxation would not relieve the
immediate need and that even reduction of the gold note
cover would be of no assistance since the Majlis, in his
opinion, would never permit gold freed in this manner to
be used for budgetary purposes.
The Aa bassador comments that Mossadeq's statements
were apparently designed to persuade the United States that
it must immediately give financial aid to Iran. (S S/S
Tehran 3865, 10 Apr 52)
Comment.- Barring the sale of oil or receipt of large
scaleTnancjal assistance from abroad, Mossadeq has little
choice but to attempt to reduce the gold note backing. Al-
though opposition to debasement of the currency is unus-
ually strong in Iran, Mossadeq's past successes and his
increased strength in the new Parliament suggest that his
pessimism was colored by his desire for American aid,
4, Egyptian Prime Minister will postpone elections: The
Egyptian Foreign Minister n orme a American Am assador
that in response to British wishes Prime Minister Hilali
had decided to act on 12 April to postpone the parliamentary
elections scheduled for 18 May. This action is to be taken
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in spite of the expected uproar from Wafd extrefist ele-
ments. Some mention has been (made Sthat
trAugust,wo0ld be 52) Apr
the new date for elections.
have
Comment: Previous reports from
that t e e ections would not be held
Arab press on 11 April stated that the elections would be
postponed until October.
uses draft statement on Anglo-Egyptian
5a Egypt now opposes Foreign Till Hassouna
t
negot i a ions Egyp , actor i ng
a.s ia, is unwilling to accept a British Foreignffice re_
in
vision of the proposed statement, previously agreed
the British Ambassador and the Egyptian Foreign
Cairo by
Minister, which is to precede negotiations. Hassouna
Sudan
states that as a result
Minister HilalioPashatisnnow soeskeptical
constitution Prime opposed to the
of British intentions that he has become ooriginal draft declaration.
Hassouna adds that "in order to cover up for the
Egyptian public what is going on," former Ambassador to
London Amr Pasha will soon go to England ostnsip?s 0
itiono
give Foreign Secretary Eden an account of Egypt's
(S S/S Cairo 1782, 10 Apr; S S/S London 4554, 10 Apr 52)
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