CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200250001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: January 3, 2002
• Sequence Number: 1
• Publication Date: September 12, 1952
• Content Type: REPORT

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SECURITY INFORMATION
US OFFICIALS ONLY
12 September 1952
OCI No. 8873
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
DOS and DIA Declg&s jtVA/I J@Wgence.
Instructions on File
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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, USC, SECS. 793 AND 794, THE
-TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
GENERAL
1. Soviet propaganda admits Japanese defense force per-
missible: On September Radio Moscow---, commenting in Japanese
on the subject of the Japanese National Police Reserve,
stated: "The Soviet Union has never denied the right of
Japan to have her own defense force. However, as its memoranda
have repeatedly expressed, the Soviet Union is opposed to the
use of that defense force as a mercenary force of a foreign
country. If it were a real defense force of Japan, it would
contribute much to the benefit of the Japanese people."
(R FBIS Moscow, 8 Sept 52)
Comment; In general, Soviet propaganda has been trying
to create esentment by charging that the US is rearming
Japan against its will and is using the Japanese National
Police Reserve as "mercenaries" in Korea and is planning
their use "in a war against the Asian people."
Although the USSR has officially endorsed limited
Japanese rearmament, this has been generally ignored in
Soviet propaganda. Radio Moscow's recent admission that a
Japanese defense force is permissible may initiate a new line
which will support the Japanese Communists in the coming
elections.
2. First Motor-Fishing Station in the USSR established:
The Soviet press in the Baltic area has announced the orma-
tion of the first Motor-Fishing Station (MRS) in the USSR.
This station, which began operations on 30 June with thirty
motor boats and four trawlers, will service all collective
fisheries of the Parnu Basin in Estonia, many of which will use
large trawlers for the first time this year. In the future,
fishing will be continued throughout the year. Three additional
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stations are to be formed in Estonia,next year. (S
Summary of Soviet Press 250, 18 Aug 52) L-1
Comment: This Motor-Fishing Station appears to be
closely patterned after the Motor-Tractor Stations of Soviet
agriculture, wherein agricultural machinery is centralized
and operated by specially trained personnel. Such stations
are important instruments of political and economic control,
and provide needed technical assistance to collectivized
agriculture.
3. Albanian Premier reopens propaganda attack against Yugo-
slav treatment of Albanian minority: Premier ox a s tour ng
northern Albania accompanied y Minister of Interior Shehu,
Vice Premier Tuk Jakova and Presidium vice president Major
General Myslim Peza> During the course of the tour Hoxha
has' reiterated, after some six months lag, charges against
Yugoslav treatment of the Albanian minority in Yugoslav
Kosovo-Metohija.
He alleged that the UDB trains escaped Albanian criminals
to spy and kill in Albania, but reassured the Albanian
peasants that the state police will annihilate these diver-
sionists. (R FBIS Tirana, 10 Sept 52)
Comment: Hoxha's speeches in northern Albania are
probably inn answer to the recent barrage of anti-Albanian
propaganda in the Yugoslav press and radio, and perhaps indi-
cate a reaction to Yugoslav subversive activities. The
,composition of the government delegation shows a pose of
solidarity among the alleged governmental factions and the
wartime leaders.
Since the end of August Yugoslav press treatment of the
Albanian situation has dropped off almost 100 percent.
4. Bulgarian Liberation Day celebrated: Liberation Day
celebrations in Bulgaria featured a large meeting at the
National Theater in Sofia on 8 September and a parade through
the capital on the following day. All members of the Polit-
buro and leading government posts, with the exception of
President of the Presidium Georgi Damianov, were present at
both functions. (R FBIS Sofia, 10 Sept 52)
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Comment,. The Soviet delegation participating in the
1952 celebration included a Deputy Chairman of the Presidium
of the USSR and an alternate member of the Politburo of the
Ukrainian Communist Party. In 1951 the Soviet delegation in-
cluded men of considerably higher rank, including Marshal
Sokolovsky, the Deputy Minister of Wary and Bogomolov, the
Deputy Minister of Foreign Affairs.
The feature address at the Liberation Day meeting of
8 September was delivered by Anton Yugov, who was recently
replaced as Bulgarian Minister of Heavy Industry and appointed
Vice Premier.
5. US Legation in Budapest discounts report of high level
Orbit meeting n ungary.- The ego on In Budapest i
nc ne to doubt a report which it has received from French
diplomatic sources that Premier Chervenkov of Bulgaria had
been ordered by Moscow to attend an Orbit conference in the
Hungarian Lake Balaton area at the end of August. The
Legation notes that Hungarian Premier Rakosi was away from
Budapest at the time and might have been present at such a
conference, but considers it unlikely that a top level
meeting could have been kept secret in so popular a vacation
area, (C Budapest 24, 10 Sept 52)
Comment.- Numerous rumors of top level Orbit conferences
have eerrent during the last month but none has been
confirmed. Chervenkov made no public appearances between
10 August and 8 September, but there is no evidence that he
was out of Bulgaria during this time. Rakosi is believed to
be taking his customary vacation in the USSR.
Yugoslav sources reported on 27 August that a meeting of
the political police chiefs of all the Cominform countries
had been called near Lake Balaton in late August to coordinate
activities under Russian leadership. This report also is un-
confirmed.
6. Polish conscription class notified of call-up.-
25X1 C men born in
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1932 and some previously deferred members of c
scription classes were called up on 18 August.
Comment.- The MA in Warsaw reported that the notifications
of cal-1-up of the class of 1932 and those of the classes of
1931, 1930 and 1929 deferred in previous years were posted
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in Warsaw on 19 August.
Under the terms of a Polish decree on Universal Com-
pulsory Military Service of 1950, actual inductions occur
during September. The size of a Polish conscript class is
estimated at 250,000. Of this number only 70,000-80,000
actually perform military service.
The current strength of the Polish army is estimated to
be 175,000. The net gain in Polish army strength this year,
however, will depend on the number of conscripts released.
There are no indications yet of the release of men of the
class of 1928 whose term of service was extended for one year
last fall.
7. Polish troops unaccountably absent from training areas:
At the end of August the Military Attache, during a trip
through southern Poland, observed that all Polish army forces
had moved out of the areas visited, only housekeeping de-
tails were occupying barracks, and there was an unusual lack
of army vehicles. As an explanation for these observations,
he suggested that troops from this region had been moved
into northern areas to participate in large scale training.
However, field trips to northeast and northwest Poland
by American service attaches during the first week of
September revealed a general decrease in military strength
and activities in both barracks and training areas, as
evidenced by the absence of personnel and equipment. In
commenting on the September trips the attache stated he was
not satisfied with the findings in the field since more
troops should have been seen in the-northern training areas.
.(S Warsaw, MA-119-52, 2 Sept; MEN-122-52, 8 Sept 52)
Comment: There is no ready explanation for the absence
of a substantial number of troops in the northern training
areas, particularly if the troops absent in southern Poland
had moved north.
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80 "Peace" conference delegates to be granted transit through
Hong Kong: The Bri s h Foreign ce enaes a report from
To tyo that delegates to the Pacific "peace" conference in
Peiping this month would not be granted transit visas through
Hong Kong and Singapore. The British Government "reluctantly"
decided that requests for visas could not be refused, but
is "perfectly happy" if the earlier false report inhibits
or confuses the delegates' travel plans, (C London 1389, 10
Sept 52)
9, Peiping reports guerrilla activities in West China: Radio
Peiping announce on September-that one of the r es in
the Chiencha area of southeast Tsinghai Province finally
"came over" to the side of the People's Government on 11 July.
After the "liberation" of Tsinghai, many of the followers
of Ma Pu-fang fled to the Chiencha area and opposed the
People's Government by hampering communications, carrying
out armed raids, and several times attacking the People's Army.
Numerous appeals and emissaries were repulsed. On 2 May the
Tsinghai Provincial Consultative Committee and the Provincial
People's Government Council demanded that Peiping carry out
immediate suppression of these activities by using troops.
(R FBIS Peiping, 10 Sept 52)
Comment: The Chinese Communists have been supporting
an an -guerrilla operation in northwestern Szechwan since
mid-July. Although there is no recent evidence of guerrilla
activity in Tsinghai, it has often been reported that large
numbers of dissidents are active in that province.
10. Kuomintang Congress will discuss mainland invasion:
The Seven f1a ona ongress o -e uomin ang, sc a uled
for 10 October at Taipei, will discuss the timing for the
invasion of mainland China. Some officials of "top rank"
think that Free China should strive to change the situation
in Asia by her own efforts. They believe that the United
States would approve the move, if Formosa showed determina-
tion and strength. (R FBIS Taipei, 10 Sept 52)
Comment: Chiang Kai-shek's elder son, Chiang Ching-kuo,
has s awe hat the Nationalists can be ready to launch an
attack on the mainland in six months, if the US provides air
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and naval support. The American Embassy at Taipei notes
that this view is being expressed by an increasing'number of
responsible Nationalist officials, including the General-
issimo himself, to American political and military visitors.
Minister of Economic Affairs.
11. Chiang Kai-shek's son extends power in Formosa: With
the abolition of the National Resources Commission on 1
September, the management of state-operated industries has
been put under the Vice Minister of Economic Affairs, ac-
cording to a high-ranking Nationalist official. The net
effect is to place these industries under Chiang Kai-shek's
son, Chiang Ching-kao, who reportedly controls the Vice
25X1A
Comment: Enterprises controlled by the National Re-
sources Commission extended into the petroleum, aluminum,
mining, textile, chemical, power, and shipbuilding industries.
The growing strength in the Nationalist Government of
Chiang Ching-kuo, who reputedly harbors an anti-American
bias, has been apparent for the past year.
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12. Communist food deliveries to Tibet reported lagging:
An American consular official who recently visited the
Indian-Tibetan border area reports that the road into Tibet
is in very poor condition. F- I
the Communists in Tibet
obtained no more than 350 tons of rice through India between
late July and early September.
The Tibetans are reported to be restive under Communist
control. The Dalai Lama's power and influence among the
people is said to be increasing continuously. (S Calcutta
78, 10 Sept 52)
Comment: To alleviate a serious food shortage in
Tibet, He Chinese Communists reportedly promised to ship
1,500 to 3,000 tons of rice via India. With only 350 tons
transported by early September, the Communists may find it
difficult to attain this objective before heavy snows block
the mountain passes.
Tibetan restlessness under the Communists was expressed
in riots in the Lhasa area last spring. The Dalai Lama is
believed no longer to have significant power in Tibet.
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SOUTHEAST ASIA
13, Cool Southeast Asian reception for proposed defense de-
claration pre icte . mp as z ng the importance o ou east
s an reaction to the French-proposed defense declaration for
that area, Ambassador Stanton in Bangkok fears that the
declaration would do more harm than good. He believes that
the Southeast Asian nations would regard it as a vague
recapitulation of existing Western policy, undeserving of
their support unless immediately and fully backed up by
firm military commitments. (S Bangkok 433, 10 Sept 52)
14, Indonesian peace delegation departs for Peiping: The
Indonesian peace delegation headed By uroto of e Antara
News Agency left for Peiping 9 September. The 18-member
delegation includes three journalists, eleven representatives
of Communist labor, agricultural, youth, and women's organ-
izations, one representative of the Indonesian Committee
for World Peace, one "artist," and two "'painters,"
The preparatory committee in Peiping also invited
eight "leading Indonesian personalities," of whom five are
parliament members, to participate in the conference, but
it is not known whether these persons will attend. (R
Djakarta 462,,5 Sept; R FBIS Djakarta, 10 Sept 52)
Comment. The government is believed,to have forbidden
the depar--ure of a delegate in only one instance, that of
a Moslem political leader whose party refused to agree to
his going to Peiping.
Suroto, the chairman of the delegation, has been
described by the American Embassy in Djakarta as a "competent,
objective newspaperman." The Antara News Agency, by which
he is employed, however,. appears to be a sounding board and
distribution channel for'Communist announcements.
15. Unofficial Bao Dai representative proposed for Burma:
The American massy In Rangoon suggests that an exploration
be made of the possibility of establishing an unofficial
representative of the Associated States of Indochina in
Rangoon to counteract the highly effective work of the local
Viet Minh representative. The Embassy believes that the
Burmese Government will find it difficult to deny entry to
such a person in view of its neutral foreign policy, but
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cautions that he must be of high caliber to compare favor-
ably with the Viet Minh representative. (S Rangoon 393,
9 Sept 52)
16, Egyptian military forced removal of secretary general
of Arab League: Abdul a man zzam has informed Ambassador
a ery that his resignation as secretary general of the
Arab League was demanded by the military group in Egypt.
Caffery believes that Azzam's unpopularity with Iraq
and Lebanon may have caused his resignation. (S Cairo 635,
10 Sept 52)
Comment: Azzam, who is friendly toward the West and
an eloquent promoter )f the pan-Arab movement, has been a
controversial figure identified with former Egyptian regimes.
The prestige of the League and of Azzam has declined
steadily since the war with Israel. Azzam's removal may
indicate Egypt's intention of reorganizing the League into
an effective regional organization.
17. Libyan King interested in having American company ex-
plore for oil: King Idriss has told Minister Villard a
he wou encourage oil explorations in Libya by an American
company. The King stressed that an oil company should not
restrict its search to one region, but should include all
the provinces of Libya. (C Benghazi 39, 8 Sept 52)
Comment: A British oil company is currently interested
in obtaining oil rights in Libya. However, there is no
definite indication of oil there. The King's desire for
oil exploration is in line with the widespread belief
throughout the Middle East that oil deposits will solve all
national problems.
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WESTERN EUROPE
18, Italian discrimination against Trieste Slovenes complicates
Trieste-solution: Discriminatory acts against the ovene
minority in r este are being brought to the attention of the
Allied Military Government with increasing frequency by various
Slovene groups. The United States Political Adviser in Trieste
comments that neutral observers agree in general that the Slovene
minority in Zone A does not enjoy the "more enlightened rights of
minorities."
AMG has refrained, out of respect for Italian sensitivities,
from using its authority to remedy these defects; but with pro-
Titoist and anti-Communist Slovene groups and the Yugoslav Govern-
ment pressing the issue, it is becoming increasingly difficult for
AMG to continue to ignore their protestations. (S Trieste Desp
26, 5 Aug 52)
Comment: In the light of Yugoslavia's flagrant violation
of minority rights in Zone B, and AMG's objective of giving Italy
a freer hand in the administration of Zone A internal affairs, it
is extremely difficult for AMG to insure equality of treatment
for the Slovenes.
Nevertheless, the absence of certain minority rights in Zone
A gives Belgrade a convenient basis for propaganda attacks against
Italy, as well as against the AMG, and provides a "strong point"
for Yugoslavia in the battle over who is to blame for the failure
of Italy and Yugoslavia to compromise on Trieste.
19. Italian proposal to trade interests in Albania for all of
Trieste believed unofficial: 11 a American Embassy in Rome believes
that recent remarks of Italian Under Secretary of Foreign Affairs
Taviani, suggesting that Italy might renounce its interests in
Albania to Yugoslavia in return for the entire Free Territory of
Trieste, were a purely personal expression rather than an indi-
cation of official Italian consideration of such a formula.
The Embassy also points out that Taviani's mention of an
enclave around Cittanova and Umago on the west coast of Zone B
contradicts the official Italian acceptance of a "continuous
ethnic line" and is not to be considered as anything more than a
personal idea. It could, however, be advanced officially at a
later date as a bargaining proposal. (S Rome 1047, 10 Sept 52)
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Comment: No other reports have been received indicating
Italian soundings as to the prospects for such an arrangement
regarding Albania and Trieste, In view of Italy's desire to
recover its economic interests in Albania, it appears unlikely
that Taviani intends his proposal to be taken seriously.
20. Administrative adjustments in East Germany reflect organi-
zatioF-5f defense establishment: Tfie East German Government
reportedly pans to replace t e Main Administration for Internal
Affairs established within the Ministry of Interior last May with
a new State Secretariat for Administrative Affairs. While the
new State Secretariat will continue to control all normal interior
functions and is therefore similar to the old Main Administration,
its separate administrative department and budget sections will
render it much more independent of the Ministry of Interior.
American officials in Frankfurt comment that while the
relative independence of the new Secretariat will simplify the
ultimate separation of the "armed forces segment of the Ministry"
into a separate agency, the official establishment of the new
Secretariat would suggest that announcement of a Ministry of
Defense is not immediately contemplated. (S Frankfurt Sitrep 34,
F-3, 10 Sept 52)
Comment: The actual timing for the formal announcement of
a Defense Ministry will probably be governed in large part by
the formation of a Ministry of Defense in West Germany.
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22. French labor expected to drive for higher wages: French
labor's "fall offensive" for wage increases now seems to be under
way, according to the American Embassy in Paris. The Communist-
dominated CGT has taken the initiative, and the Embassy doubts
that the non-Communist unions will be able to hold back, despite
their desire to support Pinay's stabilization program.
The Embassy believes that only tough anti-inflationary
measures by the government can help the faltering Pinay program
"save the franc." (R Paris 1471, 8 Sept 52)
Comment: The CGT drive had been expected since last spring.
Current Communist policy calling for a broad-based "unity of
action" promises full exploitation of the recent price rise.
23. Local preparations for Vienna "Peace Congress" fail to
reveal convention theme: Commenting on the absence o active
overt preparation for the World Peace Council meeting in Vienna
in December, American Embassy officials in that city believe that
local Austrian Communists are up to now only "seizing upon likely
subjects to keep the idea of the Congress alive until the defini-
tive line is received." Although the stress so far has been on
relatively local issues, Embassy officials warn that the Congress
may be a "bigger spectacle" than last year since it will not be
limited to members of the World Peace Council. (C Vienna 703,
9 Sept 52)
Comment: The Vienna meeting of the World Peace Congress was
announced at the East Berlin convention of the World Peace Council
early last July. At that time, important delegates asserted that
the "timing" of the work of the World Peace Council "was deter-
mined by the ratification of the Bonn and Paris agreements."
Soviet denunciations of alleged defense preparations in
Western Austria and of Western proposals for an Austrian treaty
have been used in the pre-Congress propaganda.
24. Italian Communists successful in Genoa strike: The two-hour
general strike recently called in Genoa by the ommunist-dominated
Italian General Labor Confederation (CGIL) without the support
of the anti-Communist unions was "fairly successful." It halted
all streetcars and buses, and stopped all port and major shipyard
activity.
The walkout was a demonstration of solidarity with.the port
workers in their protest against the Ministry of Merchant Marine's
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decree, giving the management of the nearly completed government-
financed steel mill permission to unload ore and coal ships at
its own dock with its own workers. (C Genoa 44, 8 Sept 52)
Comment: The Communists, despite their loss of the city
of Genoa in the 1951 local elections, have apparently retained
control of the municipal transportation workers.
25. Swedish Government concerned over the need for Polish coal:
The Swedish overnment is disturbed about the results of the
Swedish coal importers' visit to Warsaw, according to the American
Embassy in Stockholm. The importers have large stocks on hand,
and do not need further imports at present prices. A Swedish
official has observed, however, that while present coal stocks
and availabilities from the UK are much better than last autumn,
Sweden could not last the whole winter without Polish coal, and
this is an awkward time of year to stop imports.
The official added that price discussions may be resumed,
and if they are not successful some action may be necessary to
assure imports of Polish coal. Trade agreement negotiations
might be delayed, but in the present circumstances Sweden would
prefer a delay. (C Stockholm 307, 10 Sept 52)
Comment: Other Scandinavian countries have been depending
on the strong bargaining position of Sweden to secure a lowering
of the price of Polish coal. This report shows that the Swedish
bargaining position is not nearly as strong as had been supposed.
The Swedish Government might be willing to settle for a higher
price than would the importers.
26. Colombian army coup reported imminent: A group of retired
Colombian army officers and younger officers on active duty have
reportedly decided to attempt a coup. They planned to pick their
leader after the expected arrival in Colombia on 11 September of
Generals Rojas Pinilla and Sanchez Amaya.
The two important dissident Conservative leaders, Alzate
Avendano and Ospina Perez, are said to have agreed to the plan.
(S Bogota 149, 10 Sept 52)
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Comment: Other reports indicate that the top army command
and tbishop of Bogota may favor a coup to install Ospina
Perez, moderate Conservative and former President, as chief
executive.
General Rojas Pinilla, who has been serving as Colombian
delegate to the Inter-American Defense Board, was seen in
Washington on the morning of 11 September. Because of his
prestige within the army and his dissatisfaction with the admin-
istration's methods of combating the widespread guerrilla
activities, he may be both able and willing to overthrow the
present regime.
27. Misconception of Bogota disturbances causes alarm in
Caracas: The American Ambassador in Caracas reports that
r~urrProudfit, president of Standard Oil's Venezuelan subsid-
iary, is disturbed at the loss of international petroleum
property in Bogota and sees increasing evidence of intense
nationalism in Bolivia, Chile, and Colombia. Proudfit concludes
that Venezuelan authorities cannot long remain complacent.
The Embassy comments that the Colombian situation may have
great significance for the United States in view of the situ-
ations already existing in Argentina, Chile, and Bolivia. (S
Caracas 108, 9 Sept 52)
Comment: The offices of Standard Oil's Colombian subsid-
iary, located in the building also occupied by the second-ranking
Liberal newspaper in Bogota, suffered $40,000 damage as an
incidental part of the anti-Liberal riot of 6 September.
Nationalism apparently plays no important role in the cur-
rent Colombian disorders.
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