CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200030001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: December 12, 2016
• Document Release Date: December 26, 2001
• Sequence Number: 1
• Publication Date: August 12, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
12 August 1952
OCI No. 6460
Copy No. -,
2.~J
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.
State Dept. declassification & release instructions on file
SECRET
SECURITY 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 18, USC, SECS, 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
1. Possible Soviet rocket-launching submarine in Murmansk
area: a ovie ocean 25X1X
patrol submarine sighted off ape Teriberski was reportedly
equipped with a ramp on the after deck, described as suitable
for rocket or mine launching. 25X1A
Comment: Other unconfirmed reports from the Soviet Arctic
continue o indicate that the USSR is experimenting with sub-
marine-launched guided missiles, probably the V-1 type, in
that area.
2. Soviet press reaction to ANZUS Conference: The Soviet
press gave heavy coverage to the ANZUS Conference in Honolulu.
Izvestia on 7 August described the "Pacific Union" as a link
in the system of aggressive blocs with which the US is attempt-
ing to encircle the world. The two main US objectives at the
conference, according to Izvestia, were "to draw Japan more
directly into American military preparations in the Pacific"
and to strengthen the US position in Southeast Asia at the ex-
pense of Great Britain.
Further, while the United States aims eventually to widen
the "Pacific Union" to include Japan, the Philippines and the
mainland states, three obstacles have thwarted its efforts to
create "a single Pacific aggressive union":the reluctance of
Australia and New Zealand to accept Japan as an ally, the "acute
contradictions" between US and British aims in the Pacific,
and the growth of the national liberation movement in the coun-
tries of Asia, which makes the Asian states unwilling to join
"the Pacific variant of the North Atlantic union." It included
an appeal to the peoples of Asia, issued by the preparatory
conference for the Asian and Pacific Peace Conference, to com-
bine their activities to resist the aggressive plans of the US
imperialists against their freedom and independence. (R FBIS
25X1A 18 Aug 52)
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3. Shake-up in Czechoslovak League of Youth presages increas-
ed application of Soviet methods: On August, the Presidium
o the Czechoslovak League of Youth purged its leadership and
expelled its chairman, Josef Hejzlar, who was accused of having 25X1A
been subverted by the influence of the Slansky group.
The meeting was told by Josef Tesla, a Secretary of the
Central Committee of the Communist Party, that Czechoslovak
youth must apply the experience of the Soviet Komsomols and
participate more fully in the Five Year Plan effort. Tesla
stressed the fact that youth must help develop socialism in
rural areas and propagate new forms of farming among the
peasantry. (R FBIS 8 Aug 52)
Comment: There is increasing evidence that, through
selective removal of high officials in the mass organizations,
the party is taking steps to meet Gottwald's September criti-
cismsof deficiencies in mass organizational work. At present
the government is trying to increase production by solving the
problem of manpower by pressure and propaganda through mass
organizations.
Last month after the government had severely criticized
the trade unions for their failure to consolidate labor dis-
cipline and develop Soviet labor methods, the chairman of the
Central Council of Trade Unions was removed from office and
reassigned to a lesser post.
4. Budapest radio demands prison sentences for absenteeism:
The Budapest radio has urged that workers who are guilty of
absenteeism be turned over to the public prosecutor for im-
position of the people's justice. It points out that in cases
where fines do not stop absenteeism production managers should
resort to imprisonment. (R FBIS , 10 Aug 52) 25X1A
Comment: The continued campaign against absenteeism in
Hungarian industry reaches a new high in this broadcast. The
appeal to the sanction of people's justice as the only way of
fulfilling the plan suggests that a wave of arrests of work-
ing people may be forthcoming.
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5. Hungarian Minister asserts bread grain crop collections
good except in northeast: Imre Nagy, Hungarian Minister of
Crop Collections, told a meeting of Budapest and county coun-
cil chairmen recently that.bread grain crop collections were
good except in northeastern Hungary. However, he scored the
local councils and collection officials for permitting grain
quota deductions for household food requirements on a per cap-
ita basis and called for punitive measures to ensure comple-
tion of bread grain collections by 20 August.
The US Legation in Budapest points out that bread grain
collections appear to be even higher than last year but corn,
vegetables and root crops are still believed to be poor. The
Legation also notes that ambiguities in the January crop sur-
render decree permit deduction of per capita household grain
requirements, while demanding the immediate surrender of crops
at the threshing machine. (R Budapest 112 and 121, 8 Aug 52)
Comment: Peasant resistance to crop collection probably
has been largely based on legal grounds arising from the con-
tradictory decree. It is interesting that some local councils
have taken the side of the peasants.
6. American Legation comments on dissolution of Sovroms: The
American Legation in Bucharest believes that the disso u ion
last month of the joint Soviet-Rumanian film company probably
indicates a trend toward abandonment of minor holdings rather
than a wholesale withdrawal from the Rumanian economy. While
there is some evidence that joint insurance and transport com-
panies are being reorganized to give the Rumanians more prom-
inence, other Sovroms in basic industries continue to function
normally or are expanding, indicating that the Soviet Union
is concentrating on branches which will continue to be sig-
nificant after full socialization of the Rumanian economy.
(C Bucharest 45, 8 Aug 52)
Comment.: A similar trend has been noted in Hungary.
Some mind enterprises were returned to the Hungarians, but
basic aluminum and petroleum industries and some transporta-
tion have been retained under joint control.
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FAR EAST
8.
25X1 B
Japanese-British jurisdictional dispute eased: Ambassador
Murphy reports that the British Government as now agreed to
permit two Japanese-detained British sailors to appealvn their
own behalf,, their two and one-half year sentences to a higher
court. The defendants can be released on bail pending deci-
sion on the appeal, which may not take place for a month or
more.
Murphy also notes that last week British naval authorities
were given custody of six British sailors arrested at Sasebo
for attacking Japanese policemen. (C Tokyo 545, 9 Aug 52)
Comment: The arrest and detention of the sailors has
evoked s rong official protest from the British Government,
which disputes Japan's alleged right to exercise criminal
jurisdiction over UN forces pending the conclusion of a UN-
Japan agreement. With the British now negotiating to gain
the same rights for the Commonwealth troops as granted to
American garrison troops, and the Japanese Government facing
a'critical Diet and public in an election year, it was diffi-
cult for either party to recede from their position. The
decision to appeal the case will provide the Japanese Govern-
ment with a face-saving opportunity to suspend the sentence.
9, Chinese Communists direct cadres to study Chinese
theorists: The Northeast Bureau of the Chinese Communist
Party issued a directive on 1 July governing the "political and
theoretical studies" of party cadres during the last half
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25X1 C
11> Chinese Communist troops stationed in key Tibetan
25X1X areas: Almost all o the important areas in eas ern ibet
were garrisoned by small groups of Chinese Communist troops
in March 1952
.,r_ Y,,Y Most o these soldiers were in
of 1952. The elementary class is to study a compendium
called "Political Knowledge," the junior class will be
required to know the official "Brief History of the CCP,"
and the seniors' study will "center" on the "Selected Works
of Mao Tse-tung." (R FBIS 0 8 Aug 52)
Comment: These documents are the work exclusively of
Chinese Communist theorists, and all emphasize that the
party owes its successes primarily to its own efforts under
theleadership of Mao Tse-tung. They are also, however,
Stalinist in orientation. Soviet and Chinese theorists have
agreed on the loose formula that the "Chinese revolution"
was guided by Marxism-Leninism, as developed and applied by
Mao Tse-tung.
25X1A
25X1A
groups o= iou to auu men, ana were stationea at strategic
passes, roads, and rivers,
Comment: It is estimated that there are now 15,000
Chinese Communist troops in Tibet. They have probably
been located at strategic points to consolidate Communist
control and to prevent penetration from the south and west.
25X1A
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12, Macao imports strategic goods from Portugal: The
Portuguese steamer Timor gross tons) arrived in Macao
waters at the end of July with strategic goods from Portugal.
Many of the items were consigned to the Macao government, but
several cargoes were shipped to private trading companies in
the colony.
Although these cargoes were covered by official Macao
import licenses, it is believed doubtful that a legitimate
demand exists within the colony for all these items. (S
Hong Kong 299, 8 Aug 52)
Comment: The July clashes between Chinese and Portuguese
border guards on the Macao frontier have made Lisbon more
reluctant than ever to provoke the Communists by curtailing
Macao's traffic in strategic goods. The Portuguese Foreign
Office has stressed Macao's helplessness in conversations
with American Embassy officials and has expressed the hope
that the United States will appreciate the "exposed" position
in which Portugal now finds itself.
13. Thai Government press comments favorably upon Egyptian
coup: The government-controlled press in Bangkok as
commented favorably upon the coup in Egypt and King Farouk's
abdication. The American Embassy states that the editorial
tone and use of the term "coup party" suggest that a delib-
erate analogy is being drawn between the situation in
Egypt and Thailand, The present military leaders of Thailand
resent the independence shown by their King and, according to
the Embassy, it is unusual for the press to comment so cate-
gorically about the internal affairs of a friendly country.
(C Bangkok 241, 7 Aug 52)
Comment: The Thai King is not known to have seriously
interfered with the activities of the ruling clique since
he signed the revised constitution last March. There is no
evidence that a movement is under way to remove the King,
although the recent birth of an heir caused the American
Embassy to comment that in a showdown the leaders could force
him to abdicate and they could exercise royal control through
a regency.
Thai police find arms in home of former Cambodian leader:
The Thai police are repor e to have discovered arms and
ammunition in the home of a former Cambodian leader, now
resident in Bangkok, which apparently embarrassed Police
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Director General Phao. The American Embassy comments that
this development indicates Phao's continued desire to maintain
friendly relations with dissident Cambodians. (C Bangkok 241,
7 Aug 52)
Comment: General Phao has previously been reported to
have been in contact with both Peiping and local Communists.
He is also often associated with smuggling activities in and
out of Thailand which may include arms to rebel forces in
Indochina.
15e Cabinet members to be responsible for development of
Thailan : The American massy in Bangkok as been n ormed
a e Thai Cabinet is considering a proposal to make each
of its fourteen members responsible for development programs
in different parts.of the country. The Embassy comments that
the administrative weaknesses of such a plan suggest that
its chief objective is the division of spoils.
The British Embassy concurs in the American belief that
Police Director General Phao would take control of southern
Thailand under this scheme in order to exploit rich tin and
rubber resources there. (C Bangkok 241, 7 Aug 52)
Britain sees improvement in Burma situation: The British
Foreign Office, encourage by recent eve opmen s in Burma
showing improvement in security conditions and increased
government stability, has indicated that upon completion of
the current discussions in Rangoon, Britain will supply most
of the arms and equipment Burma has urgently requested. The
Foreign Office has also expressed satisfaction over the recent
improvement in relations between the British Services Mission
(BSM) and the Burmese military.
Britain would not object to Burmese procurement from
American sources of military items it cannot supply, but wants
to remain Burma's principal supplier so as to assist opera-
tions of the BSM, and because of the sterling area's dollar
exchange shortage. (S London 748, 9 Aug 52)
Comment: British support of
the
present
Burmese
Govern-
ment has in the past been vitiated
by
disputes
between
the
BSM and the Burmese military,
25X6
Britain's readiness to
offer military support now has evidently been prompted by the
increased determination Burma has recently shown in dealing
with Communist insurgency.
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17, Leading Indonesian Communist reportedly to return from
USSR: A Jakarta daily reported that Semaun, a leading
In onesian Communist who left the qountrv f r Russia in 1926,
will return to Indonesia. (R FBISI 8 Aug 52) 25X1A
Comment: Semaun, one of the founders of the Indonesian
Communist arty (PKI), went into exile about 1923. After
travelling in Western Europe, he went to Soviet Russia
where he attended the principal party schools. In 1950 he
was reported to have visited Mao in China. There is little
doubt but that he has aided in Soviet Communist planning for
Indonesia.
His prospective return to Indonesia, if true, may be
related to the PKI's current emphasis on united front tactics
and its claim to support the government. The party continues
to criticize the government publicly and undoubtedly continues
its subversive activity and covert military operations. The
possibility exists of a new phase of Communist action involving
careful direction and more disciplined activity.
The Indonesian Government's attitude toward Semaun's
possible return is not clear. Arrests of Communists have been
largely discontinued, and Alimin, titular head of the party,
appeared at a palace function on 22 May.
establish a theocratic state in Indonesia, has distributed
flags and pamphlets proclaiming an Islam government in the
area around Bandung in West Java. Over 30 "incidents" have
occurred in West Java during the past week, seven of which
involved armed gangs numbering 100 to 600.men. (C Jakarta
Joint Weeka 6, 8 Aug 52)
Darul Islam, the fanatical Moslem organ zation w ich seeks to
Darul Islam proclaims Islam state in
We
st Java: The
25X1 C
Comment: The West Java security situation has deteri-
orated noticeably during the past several months, and
25X1C has estimated that the organization and effecti n .
o ze Darul Islam has improved this last year. Estimates of
Darul Islam armed strength vary from 10,000 to 25,000.
25X1 C
observer has stated that in the northeastern
sector of West Java, the Darul Islam has complete control of
civil administration at the village level, and that the
Indonesian L,rmy probably does not even enter the area.
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19. Communist parliamentary deputy declares Indian Communists
possess arms: During an August debate in the upper house
o the In =an Parliament, Communist deputy Sundarayya declared
that Indian Communists possess arms which they will surrender
only if the government promises them amnesty. He further
claimed it wp.5 the inherent right of the people to revolt
against a 'tyrannical government and that those refusing to
surrender arms under duress are patriots. (U New Delhi
582, 9 Aug?, S New Delhi Joint Weeka 29, 9 Aug 52)
Comment: This is the first statement of such strength
made on the 'floor of parliament. The admission that Indian
Communists have not abandoned violence as an instrument of
party policy lends credibility to a fairly reliable June report
that the Communist Party of India had received new instruc-
tions to resume violent activity concurrently with peaceful
united front tactics.
When the preventive detention
bill
currently being
debated in the upper house becomes
law,
as it undoubtedly
will, the Indian Government will be
in
a position to suppress
any violent activity instigated by
the
Communists.
NEAR EAST - AFRICA
King Talal of Jordan removed by Parliament: The Jordanian
Parliament in joint session on 11 August voted to depose King
Talal and to proclaim Crown Prince Hussein as King.
After considering the medical evidence on Talal's sanity,
the parliament voted to replace Talal. The Regency Council which
recently ruled Jordan was reappointed to rule until May 1953
when King Hussein comes of age. (R Amman 119, 11 Aug 52)
Comment: The removal of King Talal and the proclamation
of Crow rnce Hussein as King marks the end of the 12-
month period of uncertainty which followed King Abdullah's
assassination in 1951.
The ouster of the king may cause demonstrations similar
to that which took place in Amman on 8 August protesting
his rumored replacement. Political factions may attempt to
capitalize on any unrest. The government's competent security
forces, however, can be expected to suppress any disorders.
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Jordan's neighbors have tried during the past year to
take advantage of unsettled conditions in the country. Iraq
in particular has tried to promote an Iraqi-Jordanian union.
With the removal of Talal, the newly-established Regency
Council should effectively protect Jordan's interests.
21. Extensive social reforms in Egypt unlikely: Egyptian
Prime finis er Ali Maher has stated a He intends to
initiate extensive social reforms, and he is sincere,accord-
ing to Ambassador Caffery. He notes, however, that the last
five Egyptian governments have all proclaimed their intention
of effecting sweeping social reforms without any noticeable
accomplishments. (C Cairo 315, 9 Aug 52)
Comment: Premier Maher and his predecessors have
conce vi`e of reforms in Western terms. Fundamental differences
between East and West make such an approach impossible. Moslem
extremists have urged the establishment of a state based on
strict adherence to the principles of the Koran.
in government are deeply embedded in the history and social
structure of this country. The idea of sweeping social
reforms, therefore, is ingenuous. Sincere efforts to raise
the standard of living of twenty. million Egyptians must be
based on a realistic appraisal of the country's economic
capacity.
22. French attitude softens toward Bey's advisory group:
Rumors now reaching lHe French Residency General Indicate
that the Bey's new advisory group is finding the greater
part of the French program acceptable. Expecting that the
group will come up with three or four proposals going beyond
the present French program, a Residency official indicated
that the French are ready and willing to study any observa-
tions the Bey may make. Apparently the visit to Tunisia of
the Director of the Near East-Africa Division of the French
Foreign Office has further reduced any tendency toward a
"take it or leave it" attitude. (C Tunis 45, 8 Aug 52)
Comment: A French Foreign Office spokesman informed
the Amer-man Embassy in Paris that while the official's visit
was not a complete success, it was much less discouraging than
press reports implied. The spokesman added that although
France cannot go any further in the reform program, minor
modifications are possible and could be accepted.
25X6
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Statements regarding the illegality and abnormality of
the Bey`s appointment of the council, which were the initial
reactions, are notably missing in recent conversations with
the French, indicating that France now tacitly accepts the
fait accompli.
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23.
French seen-more flexible on Saar question: Chancellor
Adenauer s letter of August has led the French Foreign Office
to question German sincerity regarding Europeanization of the
Saar. There is every indication, however, that the French want
to reach agreement in the current negotiations.
The American, Embassy in Paris believes that when talks
are resumed on 13 August, Schuman will be willing to discuss a
surrender of certain French privileges, and perhaps a grant
of certain advantages to the Germans, but that he will refuse
to consider, termination of the French-Saar conventions. The
Embassy further believes that the question of free elections in
the Saar is not aninsuperable obstacle, but would be the subject
of the "very last concession made by the French." (S Paris
888, 10 Aug 52; S Strasbourg 24, 10 Aug 52)
Comment: The stumbling blocks in the current negotiations
are the questions of electoral freedom in the Saar, France's
.special economic privileges, and the cession of a small portion
of French territory to the Saar as a gesture to save face for
the Gerata ns .
24. Italian railway strike reveals Communist capabilities: The
24-hour nationwide railway strike in Italy last week was not
as successful as previous work stoppages, but did show that the
Communist-controlled. General Confederation of Labor (CGIL) still
has "plenty of strength" and is capable of slowing down trans-
portation to a "point of near emergency," the American Embassy
in Rome reports.
Estimates as to the number of railway employees who par-
ticipated in the strike vary greatly,. the Communist press claim-
ing 85. percent and the pro-government press only 30 percent.
The Embassy reports that only about 1,000 trains ran, in compari-
son with a normal schedule of approximately 6,000? (R Rome
610, 8 Aug 52)
Comment: Communist-organized railway workers retain the
ability to disrupt and even halt traffic in several key trans-
portation centers, including Bologna.
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Norwegians urge combined US-NATO visit: Norwegian naval
authorities have indicated to the American Embassy that they
would prefer that the scheduled individual visits of US and
other countries' fleet units to Norway in September after the
NATO maneuvers be made under NATO auspices. The Embassy be-
lieves that this would lessen public awareness of the extent
of US participation in the maneuvers and therefore recommends
that all ships remain under NATO command. (S Oslo 127,8 Aug 52)
Comment: This request to play down the extensive US
role in the-NATO operation comes at a time of Norwegian sensi-
tivity to American pressure for the establishment of NATO air
bases in Norway.
LATIN AMERICA
26. Existence of "Caribbean Cominform" reported: News re-
ports or g na ng in Athens have appeared in the Cuban press
alleging the existence of a "Communist Central Committee for
Latin America" with headquarters in Prague as well as a "Carib-
bean Cominform" charged with the direction of Communist acti-
vities in the Caribbean countries. communist activities in
the French Antilles are said to have been transferred from the
jurisdiction of the French Communist Party. (U Havana Desp 73,
14 July 52) `
25X1 C
25X1 C Comment: The US Embassy in Havana commenls__i
believes that this "Cominform" was organized two years ago by
Fabio Grobart, who allegedly was smuggled out of Cuba by the
Soviet Charge in Havana and sent to Prague in July 1950. Re-
portedly Grobart was the official delegate of the Russian Commu-
nist Party who collaborated with the Soviet Legation in Havana
and directed all Communist activities in the Caribbean.
Evidence of the coordination of all Latin American Commu-
nist activities by an international organization such as the
Cominform in Bucharest has been vague and of questionable re-
liability, as has evidence for the existence of regional bodies
such as the alleged "Caribbean Cominform." However, the head-
quarters of certain international Communist-front organizations
which maintain contact with Latin America are known to be located
in Prague, Vienna, East Berlin, and Bucharest.
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27. Trinidadian left-wing group leader becomes WFTU corre-
spondent for co ony: John a Rose, Secretary General o e
left-wing Workers Freedom Movement, has recently become the
WFTU correspondent for Trinidad. The US Embassy in Vienna
comments that this is one of the first visible results of the
visit to the Caribbean area of Ferdinand C. Smith, WFTU Secre-
tary for American, Canadian, and Caribbean Affairs. (C Vienna
Desp 2103, 24 June 52)
Comment: Smith visited the Caribbean region in April
to urge responsible labor leaders to affiliate with the WFTU
or at least to support its policies. La Rose's current re-
porting to Smith on Trinidad follows the pattern of Communist
propaganda efforts in other colonial areas of the world and
is directed toward countering ICFTU activities and exploiting
local political and economic issues for Communist ends.
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