CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200040001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: February 7, 2002
• Sequence Number: 1
• Publication Date: August 13, 1952
• Content Type: REPORT

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SECURITY INFORMATION
US OFFICIALS ONLY
13 August 1952
OCI Noe 6461
Copy No.
2 9 5
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.
*Army and State Dept
reviews completed*
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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, USC9 SECS 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
GENERAL
1? 25X1 C Apostolic Delegate reportedly supervises Vatican-Iranian "Con-
corda ? n rang Monsignor Papa ar-
o, t e Apostolic Delegate to that country, is responsible for
"supervising a concordat" which allegedly has been concluded be-
tween the Vatican and the Iranian Government. He has obtained
licenses to open three small schools in outlying distracts.
25X1 C
25X1A
I that Iranians who originally were most
opposed to such schools have responded favorably by enrolling
Comment: In view of the highly nationalist orientation of
the Iranian Government, it is likely that a simple working agree-
ment rather than a "concordat" has been arranged with the Vatican.
According to an earlier unconfirmed report 25X1
25X1 Papallardo concluded a "concordat" in May 1952 whereby
a o c-operated schools were to be established in Iran under
the Vatican's supervision. .
SOVIET UNION
20 Nationalism in Soviet Central Asia influenced by Mao: An
25X1C local radio re ay stations in
Kazakh's western o as s a been guilty of "separatist" inter-
pretations of TASS broadcasts. In references to Mao Tse-tung's
speeches on the Asian nations' fight for independence, local
radio commentators frequently included Kazakhstan in this list
of nations. Since May 1952, when six radio teams were suspended,
TASS communiques have been relayed in this area without comment
25X1A and the dissemination of Mao's works has been restricted.
1 71
25X1A
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Comment: In view of the continuous campaign waged by Moscow
again s " ourgeois nationalism" in Central Asia, it is very pos-
sible, as previous rumors have indicated, that Central Asian nation-
al sentiment is inspired by the independent position in the Com-
munist world maintained by neighboring China. Any outspoken or
active agitation for Maoism, however, is not likely to exist.
EASTERN EUROPE
3. Czech security forces expand control in rural areas- Minister
of Na avna ecuri y ac in an tli ague speec , revealed the
addition to the National Security Corps of an auxiliary group re-
cruited from among employees of state farms,co-operatives, and
machine tractor stations, and the existence of district commis-
sioners responsible for rural security on an area basis. Bacilek
stressed the need for campaigning for the spread of co-operatives
and for stopping sabotage in the countryside. (R FBIS Prague, 8
Aug 52)
Comment: This is the latest action. in a multifaceted govern-
ment a ort to speed collectivization and combat peasant resistance.
On the same day the Czechoslovak Youth League was exhorted to or-
ganize rural youth and push "new farming methods." Last month
Minister of Agriculture Nepomucky urged better organization to
overcome "serious deficiencies" in the harvest process.
Previously the Ministry of National Security has received
limited support in its border activities from the rural militia,
which is made up primarily of state farm employees in the western
border zones.
4. Low quality of Hungarian elevator factory output termed "sabo-
ossa
tags"': Yne nunga.V J_&.x,
un ers" made by a plant manufacturing elevators for export "sabo-
tage." The management is accused of submitting false plan reports
and appropriating money for itself, as well as of the political
crime of allowing itself to become separated from the workers.
(R Budapest 125, 11 Aug 52)
Comment: The charge of sabotage probably indicates that
another section of the Hungarian engineering industry has produced
poor quality goods in an attempt to meet demands for quantity pro-
duction and to comply with the newly raised labor norms. Similar
charges were made against the Ganz railroad car factory and the
Buda shipyards in June. The accusation of falsification of sta-
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tisties may result from an attempt by management to hide its fail-
ures to meet quantity targets as well. The emphasis on goods for
export is in keeping with the current priority assigned to exportsZ5X1
either to the USSR or other Orbit countries.
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6. France suggests only moderate warning to Chinese on
Southeast Asia: According to a hio French official n Saigon,
Fi government is suggesting an American-British-French decla-
ration on Southeast Asia setting forth a "readiness to assist
powers determined to resist threats to their independence."
He added that,the British believe such a statement would be
premature and that they prefer to wait until a decision is
made on how to defend the region in case of a Chinese Communist
attack. (S Saigon 349, 11 Aug 52)
Comment: Both the French and British have opposed a US-
favored warning to Communist China of retaliation in case of
a Chinese invasion of Southeast Asia. They fear such a
threat might provoke an attack rather than prevent one.
7. Organizational and personnel changes noted in Peiping
regime: a seven new m n s r es esta is e by e e ping
regime indicate the economic sectors to receive added stress
in Peiping's central planning. They are Commerce, Foreign
Trade (these two replacing the Ministry of Trade), First and
Second Machine Industries, Civil Engineering, Food, and
Geology. The elevation of Geology suggests more participation
in the surveys of the border areas, where Soviet geologists
have heretofore been dominant.
Authorization of provincial governments for Anhwei and
Szechwan may reflect the consolidation of Communist control.
No clear reason has been discovered for previously adminis-
tering the provinces in geographical units.
Announced personnel changes again illustrate the trend
of installing party leaders in as many key national, provincial
and municipal posts as possible. Party control of the major
organs of the central administration will be strengthened
particularly by bringing to Peiping Hsi Chung-hsun and Teng
Hsiao-ping, for years the party's strong men in the Northwest
and Southwest respectively. (Factual data from- .R Peiping, 10
Aug 52)
8. Macao border clashes ascribed to controls on trade with
China: The Portuguese delegate to COCOM expressed his belie
f
on E-August that the clashes between Portuguese and Chinese
troops at the Macao frontier were the result of the searches
made by Macao authorities of heavy trucks going to China. (S
Paris 909, 11 Aug 52)
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Comment: The Portuguese were expected to take full ad-
vantage o e border clashes to press their contention that
Macao's safety from Communist attack demands continuing stra-
tegic shipments to China.
There is no firm evidence that the clashes were pre-
meditated by the Peiping regime in retaliation for any trade
restrictions by Macao. According to Hong Kong news reports,
however, the Communists are using the incidents to press
demands on Macao for greater freedom in making shipments to
China.
90 Viet Minh claims to be fighting Chinese Nationalists in
Indochina: Ambassador Rea in Saigon notes that a recent
Viet broadcast on the situation near Laokay, in north-
western Tonkin, omitted reference to the presence of Chinese
Communist troops there. Instead, it claimed that purely
Viet Minh units were conducting a campaign against remnants of
Chinese Nationalist troops who were cooperating with French-
supported Meo guerrillas.
The Ambassador-comments that the broadcast?s insistence
on the presence of Nationalist troops may set the stage for
an admission of Chinese Communist participation in the Indo-
china fighting. (S Saigon 346, 11 Aug 52)
Comment: The latest of several Chinese Communist incur-
sions in a northwestern border area, as reported by the
French, involved an estimated 5,000 to 6,000 troops who were
aiding a Viet Minh regiment against the Meo tribesmen.
There are reported to be approximately 1,500 former
Nationalist soldiers living as bandits in the mountainous
area in the vicinity of Laokay.
10. Premier sets forth Burmese nationalization policy: In a
recent speech, to Burmese premier stated at a oreign-
operated industries would be nationalized as soon as they were
rehabilitated and the government was able to take them over.
He said that land nationalization would continue cautiously,
and that Burmese firms would still be limited to 60 percent
of the import business.
The American Embassy in Rangoon comments that these
remarks may retard the rehabilitation of industries, including
those in which the Burmese Government expects to gain part
interest. (C Rangoon 203, 8 Aug 52)
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Comment: The Burmese Government has negotiated "Joint
ventures" with the Burma Oil Company and the Burma Corporation,
two leading British firms. This speech, contrary to recent
reports, indicates that the Burmese Government has'not seriously
modified its Marxist-inspired nationalization policy which,
next to widespread insurrection, has been the chief stumbling
block to investment of foreign capital in Burma.
11. Calm view taken of Evros River island incident: The
Turkish military commander In race apparently s unconcerned
over the clash on the Evros River between the Greeks and
Bulgarians; he expressed approval of Greek action which
secured control of Gamma island by gunfire.
UN observers in the area, however, believe that trouble
will recur over the islands unless a firm demarcation of the
boundary is agreed upon by both the Greek and'Bulgarian
Governments. (C Istanbul 104, 11 Aug; S New York 129, 11
Aug 52 )
Comment: Greek authorities have treated the Evros River
incid-en-f as a minor border clash. No further action will be
taken by the Greek Army unless the Bulgarians make an offensive
move. Consideration of the issue will be referred to a sub-
committee of the UN Balkan Commission.
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WESTERN EUROPE
124 East Germans step up fear campaign to advance government
propaganda emphasis on the larger aspects of "sovietization"
may be obscuring more significant developments in the total-
itarianlzation of East Germany.
Of particular importance in this respect, these offi-
cials believe, is the reported election in Thuringia last
month of local citizens to serve as intermediaries between
the government and the people. East German papers state
that "due to good average participation in the elections,"
thousands of such persons were "elected" who would serve
further "to solidify the close relationship existing between
the populace and the state administration." American offi-
cials in Berlin assert that these elections were held only
pro forma, and that the persons elected are actually reliable
tools of the regime and constitute anetwork of spies and
informers whose primary function will be the intimidation of
the populace,
program: merican officials in Berlin o serve that Commun
Institutionalizing fear as an jnstrument of state
policy is also involved in the number of staged trials now
being held in East Germany. Although some of these trials
have been intended to counter Western psychological warfare,
the coupled warnings of the dangers of noncooperation are
clearly designed for the East Germans, who have frankly been
told that the purpose of these trials is not justice, but
the liquidation of the opponents of socialism. (Factual
data from: C Berlin Desp 70, 18 July 52)
13.
Possibility seen for Czech air incident over West Ger-
many: Czech a panes have recently been serve lying
parallel to American planes patrolling the Czech-West German
border. American authorities comment that the Czechs would
probably "make armed interception" of any aircraft inad-
vertently violating the border. Moreover, since Czech jets
frequently cross over the West German border for short dis-
tances, such interception could occur over West Germany.
American authorities state that recent Czech air tactics
are designed to.-inhibit American border surveillance flights.
The-Czech Government is especially sensitive to these flights
since Czech army maneuvers are now being held in summer
training areas near the border. (C CINCEUR Heidelberg
SX2126, 6 Aug 52)
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14, West Germans hope for US intervention in Saar dispute:
According to West German Deputy Foreign Minister Hallsteln,
Chancellor Adenauer believes that American intervention is
now necessary in the French-German negotiations on the Saar.
Although Halistein has dissuaded the Chancellor from request-
ing intervention at this time, he declares that it may be
required later.
Hallstein states that the current negotiations are
bogging down because neither side has a clear formula,for
"Europeanizing" the Saar. (S Bonn 510, 11 Aug 52)
Comment: American "good offices" will probably be
invokes s nce West German diplomats feel that American par-
ticipation in the talks would result in some moderation of
French demands. Both sideshoWever, seem sincerely desirous
of reaching a final settlement in the current talks.
American observers state that more progress could be
made if Adenauer were to return from his vacation to take
part in the negotiations.
El Salvador to propose joint Central American action
against Communism:- Foreign Minister Canessa of-El Salvador
has announced that he will present the forthcoming meeting
of the Organization of Central American States (ODECA) with
a resolution calling for joint action against Communist
infiltration in Central America.
One of the two strongest pro-government parties in Gua-
temala has issued a statement condemning the proposed resolu-
tion as an "anti-democratic provocation." (R Guatemala City
66, 11 Aug 52; R FBIS San Salvador, 12 Aug 52)
Comment: ODECA is -scheduled to-meet in Guatemala City
beginning on 5 September. Guatemala, with El Salvador, took
a leading part in organizing ODECA and clearly hoped to
dominate it. The other members, however, are uneasy over the
considerable Communist infiltration in Guatemala.
The Guatemalan Government could not unreservedly accept
the resolution without first taking strong measures against
the Communist-dominated or -infiltrated organizations which
form its strongest civilian support. There are some indica-
tions, however, that the Salvadoran resolution may have the
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support of Guatemalan army leaders. Reports on conferences
between Guatemalan-and Salvadoran army chiefs suggest that
the resolution may be part of a plan formulated by the two
armies for eliminating Communist influence from Guatemala.
16. Conservative Caribbean regimes reportedly will intervene
in Costa ffican election campaign: Salvadoran Foreign Min-
ister Canessa states that the governments of El Salvador,
Nicaragua, Honduras, Panama, and Venezuela have decided to
spend a "pooled" $500,000 under his direction to prevent the
election of Jose Figueres in Costa Rica next year. Canessa
told an American Embassy official that Figueres, whom he
considers "Communist-inclined" and anti-American, has over
three times as much financial backing for his campaign as
government candidate Mario Echandi, and that the $500,000
will be used for propaganda and arms to overcome Figueres'
advantage. (S San Salvador Desp 30, 16 July 52)
Comment: All of the governments reportedly allied to
defeat gueres, with the exception of El Salvador, have been
fearful of the activities of the so-called Caribbean Legion
with which Figueres is frequently linked. El Salvador has
been jockeying for leadership of the recently-formed Organ-
ization of Central American States, and may feel it necessary
to become involved in any movement purporting to protect the
stability and unity of the area.
Figueres, who is now leading the field in the Costa
Rican presidential race, is at present neither "Communist-
inclined" nor anti-American, but rather a highly emotional,
erratic national socialist and a declared foe of many of the
neighboring regimes.
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