CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001000260001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: June 10, 2002
• Sequence Number: 1
• Publication Date: June 18, 1952
• Content Type: REPORT

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18 June 1952
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OCI No. 6422.,
Copy No.
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This digest of significant reports has been prepared primarily
for the internal use of the Central Intelligence Agency. It does
not represent a complete coverage of all current reports re-
ceived. Comments represent the immediate views of the Office
of Current Intelligence.
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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. Comments on Gromyko?s?appointment as Ambassador to
The British Foreign office states that it has no evidence to
indicate that the appointment of Andrei Gromyko as Soviet Am-
bassador to London is of special significance. The British Em-
bassy in Moscow has commented only that Gromyko seems tired and
may be receiving an easier assignment. One Foreign Office offi-
cial suggests that Gromyko is being moved from Moscow because of
his limited success at the Palais Rose and Japanese peace treaty
meetings.
The British press attaches special importance to the ap-
pointment and notes that Gromyko can be expected to try to ca-
pitalize on Aneurin Bevan's criticism of American policies.
Bevan, however, told a Labor Party meeting on 16 June that the
new Ambassador would be "making a great mistake" if he thought
he could divide the West "merely for the sake of promoting any
Soviet design,"
The American Embassy in London suggests that the principal
purpose in recent shifts of Soviet diplomatic personnel may have
been the transfer of Panyushkin from Washington to Peiping, and
that the other moves have been subseuent administrative
ad-
justments. F7 I
2. Canadian opinion opposed to inclusion of Japan in COCOM.
Respons ble officials in t awa state a e consensus o
Canadian thinking is opposed to Japan's becoming a member of
COCOM. The Canadian officials fear making Japan more depen-
dent for subsistence upon other free economies, and foresee
practical difficulties for Japan in applying the end-use con-
trql lists designed for Western conditions. They feel the-
proposal to include Japan represents the wrong approach to an
essentially Oriental power.
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EASTERN EUROPE
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3. Czech press claims another American soldier from West Ger-
many has reques e- asylum: Prague Radio announced on 14 June
that a Czech Government has granted asylum to Willis Bergen,
born in Portland, Oregon, a member of the US Army in Western
Germany, who reportedly fled from his company and crossed the
frontier into Czechoslovakia. He allegedly declared that he
did so on political grounds and that he disagrees with "the re-
vival and rearmament of the Nazi army in Western Germany and
condemns the aggressive line of American policy."
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Comment: Nothing else is yet known. of the defection of
Bergen., This is the third defection to Czechoslovakia by
American soldiers stationed in Western Germany since 1950.
Bergen's case and its treatment by the Czech Government seems
to follow the pattern of the defection in December 1950 of
Corporal Alexander Czarnecki, who rescinded his request for
asylum last April after more than a year in various Czech and
Polish prisons.
Finns reported alarmed at change in Soviet tactics: The
presen Official Soviet a u e toward Fine an o po iteness,
correctness, and friendliness has nonplussed the Finnish Govern-
ment and is regarded as a serious danger,
The Finns are uncertain how to react but feel
obliged to respond to politeness with' politeness.
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The this will embarrass the Finns into
making concessions which they would never have,. considered in
their former normal acrimonious relations with the Soviet
Union.
Comment: The US Le'ation in Helsinki, commenting recently
on the Soviet Union's ealingof pressure on Finland, stated
that a new trend appears to have been established. Other ev-
idence indicates a deliberate change of attitude by the USSR
toward Finland. For example, the Soviet Minister in Helsinki
has been careful in recent months not to Offend those Finns
who are notoriously anti-Russian.
5. Rumania cracks down on peasants: On 10 June, Scanteia,
the of official Rumanian or ers? Par y newspaper, emp a
the necessity for stronger state discipline. "Thanks to the
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help of the workers, the situation of the peasants has improved
considerably," the paper observed, but "nevertheless, the pea-
sants have not been asked to participate to a degree propor-
tionate with their increased possibilities for the increase of
the incomes of the State and the development of the country's
economy on the road to Socialism." Asserting that this was
due to the protection of "kulak" elements by a "right-wing de-
viation" led by Vasile Luca, supported by Teohari Georgescu and
Ana Pauker, Scanteia called on state and party authorities to
improve agricu ura and tax collections and to stress to the
peasants the "sacred duty" of meeting their obligations to the
State.
Comment: This supports the belief that the recent purge
in Buc ares was largely intended to tighten the Rumanian eco-
nomy and hasten its Sovietization. The collectivization drive
has been stepped up considerably in recent months; and private
traders in basic agricultural products have been reported
eliminated.
6. Church-State conflict sharpens in Yugoslavia: Relations
N-7--
between the er ian rt o ax urc an t e ito regime ap-
parently reached an impasse after the refusal of orthodox
priests to recognize a Communist-controlled Society of Ortho-
dox Priests and to reach a decision on a government-sponsored
plan to appoint only Macedonians to high church offices in
Macedonia.
In the Yugoslav-controlled zone of the Free Territory of
Trieste, Yugoslav authorities issued a communique attacking
the hostile activities of Catholic Bishop Santin of Trieste.
The Bishop is accused of ordering his subordinates to sign a
declaration asserting the absence of religious freedom in
Zone B and forbidding priests to cooperate with Zone B local
authoriti
Comment: The Tito regime has attempted to dominate Or-
thodox affa rs by forcing recognition of the state-sponsored
Society of Orthodox Priests and by establishing an autonomous
Macedonian Orthodox Church. The refusal of the Orthodox bish-
he bow. to state pressure illustrates
the e strength importance
of the Church
the issue at stake and
as an important symbol of Serbian life.
The Tito regime is attempting to identify Catholic pre-
lates in Trieste and Slovenia with Italian foreign policy.
Bishop Santin of Trieste, because of his militant pro-Italian
orientation, has long been a favorite target of Yugoslav pro-
paganda.
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7, Japanese Diet will approve Chinese Nationalist treaty:
Japanese Foreign Office officials are confident a treaty
with Taipei will be approved prior to the Diet recess, accord-
ing to Ambassador Murphy. The Ryokufukai, which represents
the principal Upper House opposition, will support the govern-
ment in the voting. Its criticisms are largely for the pre-
election record.
8.
Foreign Office officials advise that the Diet, however,
will approve the treaty with India prior to the Chinese
Nationalist treat as a gesture indicating its attitude toward
the two pacts.
Comment: There has been little enthusiasm for the pact
with Taipei. The general view has been that there is little
to be gained by the treaty, and some Japanese consider it a
final payment on the San Francisco Treaty.
The Indian treaty is popular because it calls for no
reparations and appears to be a gesture of friendship from an
important Asian nation.
Japanese labor's 17 June strike plans upset: Japanese
labors announce plan for a 17 June s r e, rected against
Diet enactment of government revisions in the labor laws, was
upset by the coal miners, according to Ambassador Murphy.
Officials of the coal miners' union, at the last minute, were
unwilling to order the planned 24-hour work stoppage in view
of management's threat to discharge the officials responsible.
The coal miners now want one-hour work stoppages on each shift.
The impetus for the 17 June strike has also been lessened
by the desire of the private railway workers, seamen and tex-
tile workers to postpone it for four to six days.
Murphy states that the strikes will be supported by
sufficient power plant workers to curtail power production by
25 percent. Some 39 thousand other workers will strike for
two to four hours, 25X1
Comment: Those unions urging postponement thought that
the Di_eT_U`per House study`of the labor legislation would get
in full swing around 20 June, and therefore, they plan to
strike after that date.
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The strong action threatened by the coal mine operators
represents a far cry from the early post-occupation days when
management was very unsure of itself under laws granting
new freedoms to labor.
9. Rhee rejects compromise with Assembly: 25X1X
Oto the South Korean Prime Minister on 16 June was told
25X1X that negotiations for the four-point compromise with the
Assembly were off. The Prime Minister very excitedly stated
that the President must be "out of his mind." Ambassador
Muccio adds that, although the situation is not entirely
clear, it appears that Rhee could have a compromise which
would leave him in power if he were willing to make reasonable
concessions to the Assembly's positions Muccio sees no indi-
cation that Rhee is in a mood to make even minimum concessions.
The President seems convinced that compromise is nolonger
necessary and that his intimidation will bring the
25X1 A~sembly around.
10. Chinese paratroop training reported near Canton: A
Chinese Communist paratroop training center was recently reported
established at Chuchiang, 120 miles north of Canton in south
China, according to the Chinese Nationalist Ministry National 'Defense (MND)a 25X1
Comment: In January the MND stated that part of the
Chinese ommunist 7th Airborne Division was located at Chuchiango
There have been few reports of paratroop training south of the
Yangtze River; most of this training has been in North China
and Manchuria. The progress of Chinese airborne-capabilities
is followed closely by the Chinese Nationalist military authori-
ties because they believe that paratroopers will be used to
invade Formosa.
11. Communists increase purchasing in Hong Kong: Persistent
reports indicate that Communist pure as ng n ong Kong has
been increasing since 1 June. Prices of pharmaceuticals,
industrial chemicals and meta] are rising slightly under the
stimulus of increased demand,
Local trade circles say, however, that minor buying
flurries have occurred occasionally since Communist purchases
dropped off toward the end of 19510 Enthusiasm is further
tempered by the opinion that the.]ong term policy of the Commu-
nists is to by-pass Hong Kon and establish trade with Japan and Europe.
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Comment: There is no sign of a wholesale revival of
Hong onR- s- trade with the Communist mainladdo Exports to
mainland China have been averaging about 20,000,000 Hong Kong
dollars per month in 1952. In comparison, the 1951 export
figures ranged from a high of 245,000,000 Hong Kong dollars
in March to a low of 52,000,000 in December.
12. Burmese desire to send military mission to United States:
The Amer can m asst' n angoon as been',inform-e-ff y the Burmese
Foreign Office that Defense Minister Ba Swe, after discussing
the matter with the American Army Attache, wishes to send a
military mission. to the United States. The Embassy reports
that the mission would probably be primarily interested in the
procurement of military equipment and training billets for
Burmese personnel. The Foreign Office spokesman inquired if
such assistance could be obtained without financial or moral
Comment: The Burmese have long desired to reduce their
depen nee on Great Britain for military assistance and are
aware that the United States is the onf:y alternative source.
13. High Commissioner of Malaya may recommend more American
aid: a mer can Conan n ua a umpur believes a
General Templer, High Commissioner of the Federation of Malaya,
during his imminent visit to London may advocate greater
American participation in the Malayan struggle. He may propose
Mutual Security aid to obtain military supplies or American
subsidization of natural rubber.
The High Commissioner is gravely concerned over the
rubber price situation, and he may argue in London that the
success of the anti-Communist campaign in Malaya should not
be Jeopardized by a dro in the price of rubber. 25X1
Comment: During the past two years, funds for the war
in Ma aya ave been supplied. chiefly by the Federation of
Malaya, which has maintained a budget surplus largely through
revenue from rubber exports,
14. American Ambassador recommends firm policy on aid to
Indonesia: American Ambassador oc ran a eves Mal of the US Aid program to Indonesia on the present
equivocal basis will undermine rather than strengthen American
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objectives and prestige in that country. He therefore recom-
mends that no further aid be extended until Indonesia states
.clearly what li--ations it will assume in return for the
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Comment: The last Indonesian Cabinet fell early in
April eTi cause it secretly agreed to the requirements of the
Mutual Security Act. The present cabinet, while stating it
desires American economic aid, has refused to indicate the
terms on-which it would accept help.
NEAR EAST - AFRICA
150 British Foreign Office refuses to intervene in Jordan
regency situation; The British Foreign Office has reuse to
support Iraqi ambitions in respect to the political situation
in Jordan. The British have turned down several requests
for support from Iraqi-supported Prince Naif, King Talal's
brother, and have ignored a Lebanese intervention on behalf
of Naif.
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Comment: The British are evidently reluctant to lend
any encouragement to Iraqi ambitions in Jordan, and are aware
that support of'Naif's claims would be taken as such, and
therefore greatly resented by Egypt, Saudi Arabia, Syria, and
even Israel.
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16. Russians may again cut off vital canal link to Berlin:
Accor ng to a source of unknown reliability, the USSR plans
to close the Rothensee canal ship-lift next month for ex-
tensive repairs,
Comment: The closing of this lock would again cut
off a traffic between West Germany and Berlin via
the Mittelland Canal system, one of two alternate routes.
In one of the main Soviet harassing measures, last year
this lock was closed from January to November.
Another recent report indicated that the canal might
be closed sometime during this year.
17. Report of cutback in Soviet oil operations in Austria
said to be exaggerated: Commenting on reports that the
25X1X Soviet Oil m n stra on (SMV) in Austria has cut back
operations,
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he knows of no Soviet orders to close any
nor is he aware of any wide reorganization
limitation of operations in one oilfiel I
ector of the SMV,
of the SMV. The
considered normal.
Comment: The report of the cutback in operations came
and occasioned interest
because of the possibility that such action might foreshadow
a new Soviet policy in Austria. Evidently the first report
was exaggerated.
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18. Italy favors use of Schuman Plan Assembly for creation of
European a erat on: 1t y favors the Freinc proposal to give
t e c uman ann Assembly the responsibility for creating a
common political authority in Europe. Nevertheless, Italy is
alarmed by Schuman's insistence upon having all Schumann Plan
and EDC institutions concentrated in Strasbourg, The French
want ultimately a capital for Europe along the lines of the
District of Columbia. For the present, however, Italy would
like to have at least one organ of the emerging European feder-
ation within its territory.
Schuman has told the Italian Ambassador that the French
Socialists can probably be won over to support the proposal,
if the six-nation Schuman Plan Assembly is ex anded to include
observers from other European countries4 25X1
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Comment; The De Gasperi government wants the headquarters
of one o t e proposed European institutions on its territory
for reasons of national prestige as well as because of its
desire to popularize in Italy the idea of European federation
19, Italy may not ratify EDC treat
in Rome re-ports at t e aan aa?~lament~will cnotEbeaable
to initiate committee consideration of ratification of the
European Defense Community treaty until after the summer recess
which ends in late September. A
domestic legislation, which includeswanaanti- Proposed
Communist measure
appropriation bills, and revision of the election laws
eludes any consideration of the treaty before then. a pre fl
The Embassy foresees no constitutional bar to ratificatio
and predicts that the pro-government n
comfortable ma~orit parties will command a e
y, although some individuals in center
parties may be influenced by propaganda from the neo-Fascist
press. There seems to be no reason to doubt that the Vatican 25X1
will support ratification,
20. Italian
me
-
d
?m
_ _.- -.... s c-.
angerous
icon ~+moassy in Mme
ontemp ated by the
c a eves cert~ ,~?~~,,.,
i
aga
nst one communists measures will den as much harm Las current campaign
include strengthening of the good, These
the passage of a civil defense bill penal code, and urging
aspects of which are of doubtful advisability, nd aabre bill, d bill, provisions of which, the Embassy states, are dangerously
close to press censorship. Y
De Gasperi also plans to reduce Communist land-holding,
arms-carrying, and travel. As these measures would be en-
forced-on a local level, they would hardly curtail the activ-
ities of the Communist Party leadership,
The Italian Government hesitates to undertake such vigor-
ous repressive action as was taken in France, in view of the
careful legal line which the Italian Communists have usually
followed and are expected to follow until the 1953 elections.
Furthermore, repressive action would alienate the Social
Democrats from De Gasperi, whose "'stand against the tendencies
in his own party and in Catholic Action to
push Christia
Democrats to the ri ht depends s uarely on SocialhDemocraticn
support,"
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Comment: Even the civil defense bill is regarded by the
other democratic parties as an attempt to build up a Christian
Democratic military arm.
21. Agricultural strikes in Italy may reflect changing
communist tactic: a spreading wave of strikes y a
categories o agricultural workers in northern Italy
may represent a shift in tactics by the Communist-dominated
General Confederation of Labor (CGIL)9 the American Embassy
in Rome notes. It points out that at least temporarily the
number of industrial strikes has been declining.
In order to claim credit for any future concessions,
CGIL has taken the lead in supporting the farm workers,
The Embassy predicts that the rival non-Communist Italian
Confederation of Labor Syndicates (CISL) will probably follow
suit. Both organizations maintain that agricultural workers
should receive the same "family allowance" benefits that
industrial workers are expected to obtain in their current
negotiations with ~onfiri.dustria the Italian Confederation of
Industrialists, 25X1
25X6 22,
23. Passport requirements to be abolished among four northern
European countries.- Denmark, la orl~ way, an Sweden have
ec a to a o [Ts passport requirements for travel among these
four countries, and a joint committee is working out the re-
maining technical difficulties. Norwegian and Swedish military
and police authorities did not favor the measure since they
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felt that it would complicate internal security problems.
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Comment: The hesitation of the Norwegian and Swedish
authors stems largely from a heightened security con-
sciousness stimulated by recent revelations of extensive
Communist espionage in Sweden.
LATIN AMERICA
camp" may have strategic
value: The Cuban ommunn st warty recently est. lis e a
so-called "summer campts on the Isle of Fines. This may
have a very important strategic value for the Cuban Com-
munists in case of war o in case they might want to con-
tact-Soviet submarines in the waters south of Cuba. Ever
since World War II the keys off the south coast of Cuba
have been of great interest to the Communists.
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Comment: The southern coastline of Cuba with its long
uninhai.ted stretches, the numerous sparsely inhabited keys,
as well as the near-by secluded islands with many natural
harbors, lends itself well to submarine fueling and provisioning
activities.
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TOP SECRET
18 June 1952
CIA No. 49701
Copy No. 46
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This digest 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.
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