CURRENT INTELLIGENCE DIGEST

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T01146A000900110001-1
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RIPPUB
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S
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20
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December 12, 2016
Document Release Date: 
July 1, 2002
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1
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Publication Date: 
April 15, 1952
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REPORT
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Approved Felease 2002/08/21 : CIA-RDP79T01100090 110001-1 SECRET 25X1 25X1 15 April 1952 OCI No. 5159 Copy No. 266 CURRENT INTELLIGENCE DIGEST Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY 25X1 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. DIA AND DOS REVIEWG R1oETfe@ase 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved Fir Release 2002/08/21 : CIA-RDP79T01 *6A000900110001-1 SECRET THIS MATERIAL CON'iAINSINFORMATION WITHINATHECM~'%AiVINGEOFATHONAL DEFENSE OF THE UNITED STATES THE SEGS? 793 AND "194, ESPIONAGE LAWS, TITLE 18, USC, TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN LAW. UNAUTHORIZED PERSON IS PROHIBITED GENERAL soviet ~in lon Berlin HICOG comments on latest T e High Commisslu-t- st note repetition of the basic Soviet line in indicatesi1thatwthe USSR is a German peace treaty probahly, campaign to not dissatisfied with the effect of its prep hared to carry on date. The Soviet Union is appthattpressure will be built the campaign slowly, trusting older talks, up in Germany to assist its call for four-p rather than la in all the cards on the table at once. agree- Comment: While the signing of the contractual agree- is expected. in May, some time will probably ment with Germany elapse before it is ratified, thus affording considerable opportunity for the USSR to make new bids for German supPorto- imptus l aCommission 2? wlViennaipresswreported Communist Lawyers m ~n?? The a appo r at t e commission e Association of Democratic Lawyers (IADL) to investigate charges in Korea and China will submit its e p Communist internationa to t e W propaganda c t by the i r a port is utilized to repeat Comiuue United Nations under United bons of the UN Charter made by e, such as the failure to observe stipulations States pressur force against the terri- which prohibit members from applying SECRET of bacteriological warfar "findings" to a meetin of the IADL council scheduled in Vienna from 16 to 18 April. Comment: This commission, consisting of leftistllawyers from France, Italy, England, Belgium, Austria, Brazi, Poland, They and China, spent the month of March in Korea and China. have already published a voluminous report detailing "conclu- sive evidence" purporting to prove the charges. Besides making ect charge of genocide against the United States, the re- 1 ims of alleged viola- d 15 Apr 52 25X1 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved F,Release 2002/08/21 : CIA-RDP79T011'Ml1A000900110001-1 SECRET tonal integrity of any state and preclude the United Nations from intervening in the domestic affairs of a country except under certain circumstances, In addition to extending the BW propaganda campaign, measures taken at the Vienna meeting will probably be designed mainly to force the United Nations to pay official attention to the charges against the United States. SOVIET UNION 25X1 S, First Secretary of the Georgian Communist Party removed- At the Apri p .nary session a the Central Committee or- the Georgian Communist Party, First Secretary Charkviani was removed and replaced by A. Io Mgeladzeo The US Embassy in Moscow comments that Charkviani's dis- missal from a post which he has held for over five years is probably related to the campaign against theft and corruption in that area, The Embassy believes that the presence at the session of Politburo member Beriya indicates the gravity of the 'situations Comment: In view of recent charges of embezzlement and theft of Socialist property in Georgia, it is probable that the Kremlin decided that Charkv'iani was not dealing satisfac- torily with the alleged crime wave, His ouster indicates that the situation is still considered serious despite the drastic measures initiated last December. These measures probably accounted for the removal of Party Secretary Shaduri, the "im- peachment and expulsion" of another Secretary of the Central Committee, the ouster of both the Georgian Minister of Justice and the Republic Prosecutor, and the removal of a considerable number of lesser officials including the Minister of Internal Affairs o Although Beriya's appearance, as the Politburo member who has been responsible for the MVD and MGB, may indicate the existence of a serious situation and possibly herald even more extensive purges, similar crimes are prevalent in other parts of the USSR, and are hinted at in the provincial press. It may be, thererore, that the situation in Georgia is oeing spot- lighted as an example to the rest of the soviet Union and has been singled out because of the interest that Stalin and Beriya, both native Georgians, have in this area. Beriya had a long career there in the secret police and as first secretary of the 2 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved FboRelease 2002/08/21 : CIA-RDP79T011 000900110001-1 SECRET party from 1921 to 1938, but he has not been known to have attended any Georgian party meetings since the war, EASTERN EUROPE 4. Projected Bulgarian currency reform reported: 25X1C there are strong indications in Bulgaria that the lev will soon be recalled and replaced by a new issue. The exact date of the currency change is not known, but several serial blocks of Bulgarian currency have allegedly been withdrawn 25X1 Comment: Rumors of an impending Bulgarian monetary reform have been current for several months. Although unconfirmed, this is the first report that some issues of Bulgarian currency might already have been withdrawn from circulation. SECRET 3 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 25X1 C 25X1A Approved %~Release 2002/08/21 : CIA-RDP79T01'MWA000900110001-1 SECRET FAR EAST 5. Japan eliminating SCAP-established agencies, The Japanese or stream government Cabinet as approve a p an ining S a e g9 including w the hich eliminates many agencies established by Economic Stabilization Commission and Foreign the Foreigne Coun- cil, cil, the e Public Utilities li ion will Control Boards CINCFE comntof governmental powers, that cause greater centralization 25X1 the alleged guidin rinci le was to abolish all SCAP-estab- lished agencies. Comment: the system con- agenc es en order trot The government's action is in caccord with entralized recent trends to return to the system of a strong, which was in force prior to the Occupation, 6. Japan establishing unified defense structure uu nderplan civilian contr. T e pane esa sFii headed by civilians, which will nga defense board, both services forces, li control Jschirifficers of maritime kewise training school ool for oo s approved. CINCFE commtittprovidespfopocom le~enunification unique for Japan because 16n control. e 25X1 25X1 - of the ces under cove o Comment: A decision to .ban been ,stab es melt of a Defense Ministry by fear of rearmament criticism in Japan andeabroad otThetplan also indicates an attempt by the Yoshida Government to pre- vent the military from regaining power. 7. Japan concerned over recent oictn trade: Concern s e ng cxpresse n several sterling area nations and exports recently imposed by sev by the United States. These include Britain's embargo on Japanese textiles, trends in the Uniited States tt oward check-in actiun ing imports of tuna and chinaware, limiting Japanese textiles to 20 percent of 1951 exports, There are also indications that Pakistan and East African colonies may impose restrictions. n earlier plans for the d II SECRET 4 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 25X1 25X1 Approved For Ruse 2002/08/21 : CIA-RDP79T01146AQOOOs900110001-1 SECRET Comment: Japan is feeling the effects of the crisis in the s-er ing area's payments Position, which the British and Commonwealth import restrictions are primarily designed to combat, 25X1 These restrictions, coupled with a current trade reces- sion in Japan, will increase pressures on the government relax its policy on trade with Communist China, and subject the government to added criticism over its Western alignment, Results of French offensive against Indochinese nnt;n.,_ :list guerre as eta, o Indochinese nationalist-Aunslve of ear y March against the The resulted in the temporary dispersal of The'seforces. Minh Colonel The reportedly refused peace offers from both the Viet Minh and the French, and intends to contact the Camba- than dissidents Son Ngoc Thanh and Chantarangsia Comment: The estimate that The's forces were dispersed but not a Bated checks with French reports and with the fact that The's radio broadcasts, denouncing both the French and the Viet Minh, ceased at the time of the French offensive and resumed shortly thereafter, 25X1 -""~""?1y1 in southeast Borneo: recent y return, 1riCrr?aco ,,.,,_, rom nrnAn ?~.. ~. 25X1 and the - - ----- -~a4 in the Balikpapan area are indications of sincreasingwinsecps p in southeast Borneo 'Pik : that t e orneo south coastnhadobeensplaced7underhmilitaryed y control in accordance with the provisions of the Ordinance of War and Seige o Widespread lawlessness continues to be Indonesia's pri- mary problem; government security forces are heavily occupied in East and Central Java, the Celebes, and the South Moluccas as well as in Borneo. are s rumrs of small bands terrorizing villa gespalongtthe entire eastucoast. to Comment: An Ind SECRET 15 Apr 52 25X1 25X1 25X1 25X1 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved W Release 2002/08/21 : CIA-RDP79T01''WA000900110001-1 10. Indonesian Government to order release of Sumatran Communists-: pre icts fE_a_t__U_uring 25X1 April t e government will order the release of an unspeci- fied number of important Communists, arrested in North Sumatra during the August 1951 security sweep, because there is insufficient evidence to prosecute them. 25X1C 25X1 C Comment- Large numbers of persons who were arrested in the August 1901 security sweep have already been released for lack of evidence, and a few have been tried and sentenced to brief prison terms, Although the remainder presumably will be dealt with eventually, there have been no reliable indica- tions of either a quick release or an early trial. There has been no further information on the Attorney General's advice to the government in late September that it should invoke a former Dutch law providing for the long- term detention of political prisoners, SOUTH ASIA 11. Indian Communist strength in Tripura State: 25X1C t e ommunists in ripura State, an east Indian Communist stronghold near the Burma border, attribute their success in the recent national elections to the fact that they stationed 600 to 700 "red guards" at every polling booth. The hill tribes of Hajongs, Manipuris, Chakmas, Kukis, and Garos, as well as the Moslems in the state, voted "en bloc" for Communist Party candidates. 25X1C I , the Tripura Communists now can mobilize 70,000 "volunteers" on short notice. They include 8,000 to 10,000 members of a Peace Brigade largely recruited from the tribal areas, 50,000 tribal wo- men organized into a Communist Party Women's Organization, and the members of a Society for Mass-Education, which main- tains about 100 small Communist-line schools in the tribal districts. A Moslem Communist leader from Tripura has gone to Calcutta to discuss means of exploiting Communist strength F in the state, F 25X1A SECRET 6 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 25X1 C 25X1A Approved Fo'M elease 2002/08/21 : CIA-RDP79T01I 4 000900110001-1 SECRET Comment: Tripura Communists won twelve election con- tests,w i ee-prime Minister Nehru's Congress Party won only nine. Communist success was achieved despite the facts that Tripura State is administered directly from New Delhi and that India's most capable anti-Communist police officer was assigned to the state in September 1951. The claim that Tripura Communists control 70,000 "volunteers" cannot be evaluated until figures indicating the size of the Communist vote become available. The United States position on the Tunisian question has been attacked by the press in both India and Pakistan. In India, the sincerity of the American claim to be the champion of freedom is questioned. Pakistan's most influential paper quotes from a speech made by Foreign Minister Zafrullah Khan that "those who talk loudest of liberty are the least con- cerned about its 25X1 Tactical establishment t' NEAR EAST - AFRICA arty is reportedly concentrating on students Communist propaganda increasing in Iraq: Communist pro- pagan a appear ng n oo s are in the a marked increase in volume. It appears press in Iraq is showing line more closely than usual and isreportedlylprare the Moscow Prague and sent to Iraq via Egypt, nn q where it is s translated into Arabic. Some of the material is printed by Iraqi presses. Efforts of the Iraqi police to stop this type of Communist activity have been unsuccessful because court convictions can be obtained only if the propaganda attacks the government or raises issues which would directly contribute to the country's instability. Most of the Communist activity in Iraq is currently directed by a six-man group of the Iraqi Lawyers' Associations The Communist P France would approve a more active role for Spain in Tangier: T e 'renc .reign ice wau~I~-e~w ing`?TO 'consi- der roadening Spain's role in the government of the Inter- national Zone of Tangier, but would oppose an international conference in which the USSR would participate, French officials, SECRET 25X1 Approved For Release 200f/08/21 : CIA-RDP79T01146A006?0(A0f)0ffT21 Approved Fo?Kelease 2002/08/21 : CIA-RDP79T0114GA000900110001-1 SECRET although annoyed at the ineptness of the recent Spanish action, believe that the French-British agreement of 1945, which established the present provisional administration, could be modified satisfy some of Spain's demandsa 25X1 25X1 Comment: The participants in the present Tangier adminis- tratimn"ear that Spain's note of 7 April, demanding a return to the 1923 Tangier Statute, will form the basis of a Soviet request to share in the government of the zone. Such Soviet participation was provided for in the bilateral agreement of 1945. Most countries involved, however, now agree in principle that Spain, deprived of its dominant position in 1945, should be allowed greater participation. 8 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146AO00900110001-1 Approved Release 2002/08/21 : CIA-RDP79T014.46A000900110001-1 SECRET WESTERN EUROPE 154 Official in Trieste reports increase in fascist prestige 25X1 there, A representative o 7--- r este reports that the neo?fascist a an ocia ,.ovemen (MSI) gained prestige during the recent demonstrations. Many local inhabitants credit the MSI with arousing the dormant nationalistic spirit in Italy as well as Trieste. The representative added that if assurances were given in London that Trieste w ul ly be returned to Italy there would 25X1 be no more troubled Comment: It is a well-established fact that most of the nsesrtdenemon for the nstrationstbinelatefMarchlcameafromaelements~ Trieste d of the T "far right." The MSI in Trieste doubtless hopes to capture support from other Italian groups by following a militant irredentist policy. The repercussions of this tactic on the policies and strength of the more moderate pro-Italian groups may be significant. With the approach of communal elections, the party which best epitomizes the cause of Italian nationalism stands to reap the benefits accruing from the current tense situation, 16. Election manifesto of the pro?Cominform party in Trieste conforms to previous party ine, T e antral Committee o t fie proOComin_orm Communist party in Trieste has published an election program opposing a barter between Italy and Yugoslavia over Trieste and calling fora continuation of the struggle for the realization of the Italian Peace Treaty, unification of both 25X1 zones un ern tional rule and withdrawal of all foreign troops. Comment: This electionmanifesto9 designed to capture and retain the support of those local elements favoring independence for Trieste, stands in sharp contrast to party leader Vidali?s election pronouncements in southern Ialydlnst month favoring a return of the Territory to Italy. According to recent reliable reports, an internal party crisis has developed over the planned abandonment of the independentist line for one favoring the return of the Territory tosItaly. The reaffirmation of the previous party line suggehat I 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved F Release 2002/08/21 : CIA-RDP79T01`1MA000900110001-1 internal party opposition to a shift in policy, especially among those economic and ethnic groups who fear a return of Italian discrimination, has dictated a policy of compromise. 17. Benelux unable to agree on controls over East-West trade, Belgium is trying to persuade tie- ether ands to join it in establishing physical controls over transit trade. The Dutch apparently are still insisting on financial controls first. Belgium's proposed system, which will be put into effect even if the Dutch refuse to participate, will center around the licensing mechanism to control the movement of "sensitive" 25X1 commodities, particularly nonferrous metals. Comment- A joint Belgian-Dutch attempt to impose physical controls over transshipments has been under discussion since January, The Netherlands, however, has refused to consider imposing physical controls unless Britain first institutes financial controls, 18. Action planned against Communists in Dutch municipal servicesm- i`e iHtcfi-mu ~.cxpalities are expected soon to follow the lead of the Netherlands Government in making membership in the Dutch Communist Party and certain front organizations grounds for dismissal. The Chief Engineer of the Amsterdam Electricity Works will be among the first to resign from the Communist Party, but he will continue his allegiance to the part 25X1A 25X1A Comment- The Dutch Government passed its ban against Communistsn government service last December, but has not actively implemented the measure. The course that the Chief Engineer is expected to follow, should the municipalities act, is typical of the Communist reaction to be anticipated. 19. Rome Embassy officials stress need for more offshore contracts in to -Ty - ?t~ e mm~e i n m a st' ixa Rome s to tes hat speedy r gz ti t o under the. offshore procurement program of large-scale contracts for ship construction in Italy for fiscal year 1953 would alleviate serious unemployment and reduce Com- munist influence over shipyard labor, It stresses the influence these contracts would have in key industrial cities on the 1953 Italian national elections. F_ I SECRET 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 25X1 25X1 Approved F -Release 2002/08/21 : CIA-RDP79T01 t4 A000900110001-1 SECRET Comment., Thus far, the scale of the off-shore procurement program as disappointed Italians. There have been repeated strikes against layoffs in big shipyards such as Ansaldo in Genoa. Placing of large-scale contracts for ship construction would counteract hostile Communist propaganda and strengthen the Italian economy. The implementation of the off-shore program might also counterbalance Moscow Economic Conference propaganda in favor of greater trade between Italy and the Orbit. 20, Italian Communist press continues to print BW charges against Unite tates T ie eer can ;mbar y in tonzereports tTIiat the'. a an Communist press is continuing an intensive propaganda campaign, charging the United States with the use of biological warfare in Korea. This campaign may be designed in part, the Embassy observes, to draw public attention away from the investigation of the Katyn massacre. The intensity of the campaign has disturbed the Italian Government, which is trying to counter the propaganda. The independent Rome newspaper, Momento, last week published a 25X1 report by the commander of ti ta.ian Red Cross Hospital in Korea, branding the Communist charges entirely false, The Rome Daily American has also given full coverage to this story, Comment: This is the first evidence that the Italian Government is unerng countermeasures against the Communist cnarges, With the exception of the Communist press, no Italian newspapers have given credence to this anti.-American propaganda. 21. Italian Parliament delays bill to outlaw neo-Fascist party: The a7mez? can massy i -R~-m"~ ne ieves tit Li~l~pas am ntar? ~4R consideration of the bill designed to outlaw the neo-Fascist Italian Social Movement (MSI) will probably be delayed until after the municipal elections in southern Italy on 25 May. The bill has received committee approval in the Chamber of Deputies, 25X1 The Embassy does not know whether the Italian Government really intends to outlaw the MSI, and believes this decision may depend upon election results. Comment: Some right-wing Christian Democratic leaders, alarmed y the possibility of defeat for their party in the SECRET 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 25X1 25X1 Approved FrRelease 2002/08/21 : CIA-RDP79T01`96A000900110001-1 SECRET present three-way electoral battle involving the Communists, Christian Democrats, and extreme rightists, argue that their party must ally itself with the MSI and other extreme rightist groups in order to prevent Communist victories. They would prefer to block, or at least to delay until after the May election, any legislative action against the MSI, which is especially strong in southern Italy. 22. Italian ratification of Schuman Plan faces further delay: Italian Foreign O ice officials be ieve t at t e li eli ood of extended discussion of the Schuman Plan makes final parlia- mentary ratification of the treaty improbable before June. The Chamber of Deputies may, however, possibly approve the treaty before the local elections on 25 May. The treaty, recently approved by the Italian Senate, has now reached various committees of the Chamber of Deputies. One of these has already approved it, and the other committees, including those for Foreign Relations and Industry, will continue their examination after the Chamber reconvenes on 25X1 22 Aprils Comment: Certain influential industrial groups in Italy, some a teem financial supporters of the Christian Democratic Party, have opposed and will continue to oppose Italian partici- pation in the Schuman Plan as advocated by Premier de Gasperi. Even after final parliamentary approval of the plan, these groups may be expected to balk at implementing its provisions. 23. 25X6 SECRET 11. 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved Fo elease 2002/08/21 : CIA-RDP79T0114"000900110001-1 25X6 24. New Bolivian Government to nationalize mines and railroads- The Acting resident and the Minister o Mines and Petroleum of the new Bolivian Government established by the Nationalist Revolutionary Movement have stated that the mines and railroads will be nationalized. This was confirmed in Buenos Aires by Victor Paz Estenssoro, the Movement?s leader, who has not yet returned to Bolivia. 25X1 Conservative members of the Movement "take a dim view of the future" and feel certain that the governme t will be anti-US and little more than "an Argentine province F Comment- The new government is almost certain to demand higher prices for tin. Several members of the new cabinet are known to be pro- Argentine and others have received financial aid while exiled in Argentina. Paz Estenssoro's reportedly cool attitude toward Argentina will probably be mollified by the relief and medical aid now being sent to Bolivia by the Eva Peron Foundations 25X1 25. Chief of Staff of Brazilian Armed Forces may discuss agree- ment wit Argentina: T e Brazilian newspaper A Noite reports that General oes Monteiro, Chief of Staff of the Brazilian Armed Forces, is making a trip to Argentina to lay the ground- work for an agreement designed to defend the South Atlantic in the event of war, The paper adds that he may also discuss the general basis for an economic pact and study the inclusion of clauses of a military and political nature. General Goes has told the press that his trip is merely a courtesy visit. 25X1 12 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved ~o Release 2002/08/21 : CIA-RDP79TO11446A000900110001-1 Comment: Argentina and Brazil have announced plans for a new commercial agreements but there has been no previous indi- cation of possible political or military discussions. Since trade between the two countries is mutually important, a new agreement may be signed in the near future, despite Argentine inability to export significant amounts until the end of the year harvest. There are indications that Brazil is considering the extension of a large credit to Argentina, despite the un- popularity of such a move in Brazil. A separate military defense pact and political understanding with Brazil would probably be well received in Argentina. It is unlikely that Brazil would be interested in such military or political arrangements, 26. Possible revolutionary attempt in Ecuador: A revolution is bung planned by presidential candidate Ve asco Ibarra and discussed plans for counteracting the movement and creating a pretext for the arrest of Velascoo The US Embassy in Quito comments that the violence in Cuenca 25X1C Government officials have reportedly on 12 April when Velasco supporters clashed with proponents of another presidential candidate may be the forerunner of more 25X1A serious disturbances. 25X6 Comment: There have been reports that at least one dead and 3 wounded resulted from the clash in Cuenca on 12 April. Velasco, apparently decided to return to Ecuador from his exile in rgentina after conversations with emissaries of the neo-fascist revolutionary Guevara Moreno, There have been reports of plans for a preventive coup by the Defense Minister. This, however, would run directly counter to President Galo Plaza's known desire to preserve democratic processes at all costs. 27. Sovereignty over Navassa now poses chief problem in US- Haiti re ations T ere are growing indications that the c i e f pro lem of Haitian-American relations will be the question of sovereignty over the small island of Navassa off the west coast SECRET 15 Apr 52 Approved For Release 2002/081*: CIA-RDP79T01146A000900110001-1 25X1 C 25X1 Approved for Release 2002/08/21 : CIA-RDP79T0fiPe6A000900110001-1 25X1 of Haiti, Ambassador Leger has stated that the problem is paramount in the mind of President Magloire, who ho es to visit the ITS soon to seek a settlement in Haiti's favor. Comment: The US Embassy has reported that the relinquish- ment of Navassa to Haiti might seemingly have certain beneficial political effects and redound internationally to American credit as evidence of a "non-imperialist" policy. It has pointed out, however, that such an act might lead other Caribbean nations having American-claimed islands off their shores to seek a similar settlement, and might result in Haiti's demanding large- scale damages for the loss of revenue (resulting from the removal of guano deposits) occasioned by the "illegal American oc- cupation." 25X1 1_*__ 15 Apr 52 Approved For Release 2002/08//4- CIA-RDP79TO1146A000900110001-1 I z5/ lee-, Approved F elease 2002/08/21 : CIA-RDP79T011* .000900110001-1 TOP SECRET 15 April 1952 CIA No. 49612 Copy No. 4 6 TOP SECRET SUPPLEMENT TO THE 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. TOP SECRET Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved F,Release 2002/08/21 : CIA-RDP79T01A000900110001-1 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. 1. West German officials minimize importance of Soviet reply' According to ig ommissioner c oy, ancellor A enauer feels that the Soviet note of 9 April represents no essential change from previous Soviet proposals. An official of the Ministry of All-German Affairs believes that the statement will have even less impact in the Federal Republic than the note of 1?1 March. Adenauer contends that before a four-power conference is held Moscow must make at least an "approach to agreement" on the full sovereign right of Germany to form alliances,on German defense forces, and on frontiers. The Ministry representative believes that Moscow is still probing, not feeling pressed for time. He considers that the Russians are undoubtedly prepared to develop their idea of four-power inspection of electoral conditions. He argues that ultimately a four-power conference will have to take place to convince the West Germans of the impossibility of unification, but only after Western "fencing" with the Russians through'a further exchange of notes. The Ministry official believes that West German negotiations on int. ration should be pressed with- out delay. 25X1 2. Korean attitude at negotiations irritates Japanese: Japanes+ or.eign Office o cia s believe, actor ing to acting US Political Adviser Bond, that if the Korean delegates in the current Japanese-Korean negotiations insist on their "all or nothing" attitude, the present deadlock is certain to continue. The Japanese have been irritated by Korean leaks to the press, TOP SECRET 15 Apr 52 25X1 1 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved FvA Release 2002/08/21 : CIA-RDP79T01' A000900110001-1 TOP SECRET Comment: The negotiations for the forseeable future promise to be characterized by mutual suspicion and dis- trust. The Japanese negotiators' claims to private property in Korea, a major issue in deadlocking negotiations, ap- pear contrary to the provisions of the San Francisco peace treaty. The Japanese, however, believe Korean claims to property in Japan are extreme and probably are working for a mutual cancellation. 25X1 3. Papagos agrees to formation of interim government in Greece: Greek opposition leader apagos has agree to t e formation of a short-term "technical government" to carry out urgently needed economic reforms. He refuses to participate in a vote of confidence in such a government, however, apparently believing that to do so would enable it to remain in power indefinitely. He suggests that new elections be held on 15 July, Papagos has agreed to such a solution but insists that he must pass on the Ministers of Defense Interior and Justice. Comment: The weak government coalition has already last. onger than was generally thought possible at its inception in September 1951; the present proposal is one of several made recently as the pressure for its dissolution has increased. While the idea of an interim government may appeal to Papagos as a means of extricating himself from the pre- dicament created by his party's boycott of parliament, he is unlikely to cooperate with any government whose Ministers he can not approve. TOP SECRET 25X1 C 2 15 Apr 52 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1 Approved For Release 2002/08/21 : CIA-RDP79T01146A000900110001-1