CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200260001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: December 16, 2016
• Document Release Date: December 20, 2004
• Sequence Number: 1
• Publication Date: September 15, 1952
• Content Type: REPORT

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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.
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
ONI, DOS and DIA
review(s) completed.
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15 September 1952
OCI No. 8874
Copy No. 0 5
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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.
to Kennan believes Sino-Soviet talks involve real bargaining:
Ambassador ennan a eves a s our y e Chinese a ega-
tion to points of interest in the USSR indicates that Sino-
Soviet negotiations have reached a point where instructions
from Peiping have become necessary. Kennan considers that
the length of the talks shows that they are not "pro-forma"
in character, but that real bargaining is taking place.
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familiarize the Mongolsithnm Hess r en s pan to
w
r
P omote Chinese friendship: A
campaign o promo
Mongolian campaign to
economic t
of China will be held in
the MongolianaPeopple'srRepublicof omt
1 to 10 October according to a broadcast from Ulan Bator.
Comment: This announcement suggests that one of the
.resul s o e current Sino-Soviet.Mongol talks in Moscow
may be a Chinese-Mongolian Cultural Agreement, Peiping has
such agreements with European Satellites n but not with other
Asian countries,
SOVIET UNION
5, USSR apparently attempts to observe NATO exercises: The
eapta n o e s merchant s
to the Soviet Union, has requestedp ami ssi sa e now o un rece v arter
ive
cargo from the Russian ship Tungas in the prot
ected Skagen Roads or Aalbeck Bay at the northeast tin of Denmarkof
on or ab-put 15 September
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cargo in open water near Bear Island in the Arctic Ocean.,
damage was sustained by both vessels.
The American Naval Attache in Copenhagen comments that
this is obviously an attempt to set up an observation post
near the area involved in the amphibious phase of the NATO
exercises,
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Comment: On 6 Septemberl eported about
40 large Soviet trawlers in waters were NAT maneuvers were
scheduled to take place. Other attempts have been made to
observe this area through daily visits of East German, Polish,
and Soviet craft.
EASTERN EUROPE
6. Finnish Communists crossing illegally into Soviet Union:
On 3 September a usually reliable Helsinki newspaper reported
that the state police were investigating illegal border
crossings by Finnish Communists into the USSR. According to
the report, this type of activity is concentrated in south-
eastern Finland, but there have been illicit crossings back
and forth into Sweden as well.
The American Legation comments that border crossing is
reliably understood to be carried on, but as yet no case has
been broken because of the government's -failure to secure
witnesses willin to testify publicly.
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Comment: Finnish authorities have long been aware of
such activities on the part of less important Communist Party
functionaries, A matter of long-standing concern to the
government, however, has been the fact that the Finnish border
authorities are not permitted to exercise control over the
trains which the Soviet Union operates on a fairly regular
schedule between Leningrad and their base at Porkkala west of
Helsinki. This route enables the more important Finnish and
Scandinavian Communists to make secret visits to the USSR,
7. Hungarian factories promise extra work shifts in honor
of Soviet Party Congress: a ungar an official party organ
reported that many Hungarian factories had offered to work
.extra shifts in honor of the nineteenth congress of the Soviet
Communist Party. The US Legation points out that the machine
tool and equipment factories-concerned ordinarily shipped a
large proportion of their output to the USSR.
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Comment: Czechoslovakia-already has called for extra
work sus in honor of the Party Congress and of the forth-
coming 25th anniversary of the Bolshevik revolution. Polish
workers at Nowa Huta have pledged extra shifts, and the Soviet
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workers who are constructing the Palace of Culture and Science
in Warsaw have made similar promises.
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Nee
au~
Chairman o t e ov a eace omm ee as s a e .at the
"peace" conference to open in Peiping in late September will
be of special importance since it will "intensify the strug-
gle for national independence and territorial sovereignty."
Soviet statement
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His statement, which appeared in the Peiping press of 12
September, provides the first reliable Soviet hint on how
the conference will deal with the wars in Indochina and
.Malaya.
Comment: The conference is committed to call for a
"peaceefu`lsettlement" of current conflicts in Southeast Asia.
This militant Soviet line suggests that the conference will
not propose truce negotiations on the Korean pattern in
Indochina and Malaya but will merely repeat demands for
withdrawal of foreign troops.
12. Communist war-propaganda body called "peace committee"
in foreign bro The Chinese Communist Y'Resist Am a,
Korea Association" has been invariably designated in
foreign broadcasts since March 1951 as the "China Peace
Committee." Domestic broadcasts and newspapers have con-
tinued to employ the original name of this group, which
organizes propaganda and arms-donation dri c
China in connection with the Korean war.
Comment: A "China Peace Committee" was made necessary
by the World Peace Council's call in February 1951 for an
Asian and Pacific Regions Peace Conference. This committee
is sponsoring the conference, which is to open in Peiping in
late September. The double name is an unusually neat illus-
tration of the Communist practice of simultaneously engaging
in aggression and clamoring for peace.
13. Western tonnage in China trade continues high: During
May,8 non-Communist registered merchant s ps, aggregating
467,000 gross tons, traded with Communist China. These
figures were slightly higher than those for the preceding
month and the highest thus far recorded this year.
Comment: In May as in previous months, British registry
ships in trade outnumbered those of any other nation-
ality. US Government regulations prohibit American-flag
ships from engaging in this trade,
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SOUTHEAST ASIA
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Communists exploit agitation for improved conditions
in northeastern Thailand: We American massy In Bangkok
reports that the Commun t---dominated Thai Peace Committee
has appointed a subcommittee to collect funds for aid
the "destitute" northeastern provinces.
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Comment: Alleged economic hardship in northeastern
Thailand, the least prosperous section of the country, is
a favorite issue of opposition politicians. The Embassy
doubts that conditions there are as bad as they maintain,
but reports that the Thai Government has seriously neglected
the area.
Thai Communists increasingly are exploiting sources of
popular discontent in order to penetrate and take over the
leadership of .groups which have been sincerely interested in
improving cbnditio:ns in Thailand,
Indonesian guerrilla group allegedly extends activity
to Nor Celebes: s x-man gang, allegedly including o-
owers of uza kar, the SouthCelebes guerrilla leader, on
5 September raided Tomohon, a village i the Minahasa, North
Celebes
Comment: So small-scale a raid is of interest only in
that a nahasa is normally a peaceful area, and the
government has long feared that Muzakkar would extend his
activity to the northern part of the Celebes.
Burma has requested the United States to receive a military
Burma asks United States to admit military mission:
mission under the leadership of General Ne Win, Burmese
Commander in Chief. The mission would arrive in late
September to study American military organization, explore
possibilities for the training of Burmese personnel, and
arrange for the procurement of military supplies. I
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Comment: This mission would be a radical departure
from Burma's policy of avoiding any semblance of military
relations with the United States. The proposal indicates
that Burma may be wavering in its neutral foreign policy.
17. Latest Kashmir negotiations end in failure: The failure
of the latest n o- a s an talks in Genever indicates that
the Kashmir issue will remain deadlocked for some time to
come.
Pakistan was most reluctant to engage in the recent
Geneva conversations, and it is unlikely to participate in
future ones without first obtaining a major concession from
India.
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Since the UN Security Council cannot easily drop the
Kashmir issue, it will presumably be faced with the task of
drafting a resolution strong enough to ensure Indian and
Pakistani compliance with UN mediator Graham's most recent
proposals, or one suggesting new approaches to settling the
dispute. It is doubtful that either India or Pakistan would
feel bound to abide by any such UN resolution if it desired
NEAR EAST - AFRICA
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New Iranian Ambassador to the US now reportedly convinced
of American goodwill: Allayar a e , newly appointed Iranian
Ambassador to TH-e-Un-ited States, is convinced of American
friendliness, according to Ambassador Henderson. Saleh
intends to try to obtain American support in the oil dispute
as well as financial and economic aid. Ambassador Henderson
believes that Saleh had been instrumental in reducing the
amount of anti-American propaganda recently, and had helped
persuade Mossadeq not to take hasty action in the oil dispute.
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Comment- Following a trip to the United States several
years ag~aleh supported American plans for Iran. With the
advent of the National Front government, however, he became
an ultra-nationalist.
Saleh was previously described by Ambassador Henderson
as an unstable opportunist who often appeared to be pro-
Communiste He has publicly expressed his opposition to
Point IV and American military missions.
20. Panikkar praises Wafd in Cairo: K. M.?Panikkar, the
Indian Ambassador-designate to a ro, is making no secret
of his opposition to the Egyptian military regime. Even
before presenting his credentials, he has voiced strong
sympathy for.the Wafd, which "stood unwaveringly behind
the Indian Congress Party during its days of trial."
Ambassador Caffery adds that Panikkar's press state-
ment's reflect the admiration for Communist China he showed
while Ambassador in Peiping. Panikkar was quoted in the
e
a
ian ress as stating
Egyptian press
prosperity and stability unknown before."
"Chinese now live in
t th
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22.
South African official sees possible withdrawal from UN:
The permanent secretary of the South African External a rs
Department is convinced that his government would seriously
consider complete withdrawal from the UN if the Arab-Asian
group presses for an investigation of the passive resistance
campaign in the Union.
He believes that the Arab-Asian bloc is planning to
include a request for such an investigation in the resolution
on racial discrimination in South Africa which it is pre-
paring for introduction neral Assembly,
Comment: This personal opinion of an astute official
probably reflects current sentiment in the government,
which has frequently stated that it will not tolerate UN
interference in a domestic matter. Relations between South
Africa and the UN have already been aggravated by the dis-
cussion of the Indian minority question and the status of
South-West Africa.
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23. Moroccan nationalist requests public ICFTU support for
native trade union: Moroccan nationalist leader a el=-
Fassi has requested the non-Communist International Confed-
eratioA of Free Trade Unions (ICFTU) to support publicly
full trade union rights for Moroccans. The American Embassy
in Brussels' states that El-Fassi's recent visit to ICFTU
headquarters and this request were prompted by the success
of Farhat Hached in winning ICFTU and American labor support
for the Tunisian nationalist cause. El-Fassi probably hopes
that by supporting trade union rights in Morocco, the ICFTU
would be furthering nationalist aspirations.
Comment: In November 1951 the ICFTU adopted a reso-
lution demanding trade union rights for Moroccans. In
addition, one of its vice presidents in mid-1952 promised
the labor adviser of the principal Moroccan nationalist
party that he would try to convince the ICFTU directorate
that support should be given Moroccan plans to establish an
independent native union.
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WESTERN EUROPE
East Germans announce advance "peace congress" in Berlin:
American o c a s in erlin believe f Eat the decision to con-
vene a "peace congress" in the "German capital of Berlin" on
15 November in preparation for the Vienna Peace Congress in
December is intended to "occupy as many people for as long as
possible in the propagation of soviet proposals-for a solution
of the German problem," Four-power discussions are described
by the East German Peace Committee as the "most pressing and
important task of all peace committees and of all people who de-
sire peace."
According to press dispatches, an initiative committee.has
been charged with organizing thousands of public meetings to
discuss the objectives of the December convention. Plans call
for the "election" of 4,500 German delegates to the Berlin corn
gress, which will select 150 delegates to Vienna.
Comment: Since Soviet proposals have not suggested that
a four-power conference is seriously desired, the immediate
objective of the peace campaign insofar as the German question
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is concerned appears to be defense of the Soviet record. These
initial preparations suggest an elaborate effort in this direc-
tion at the Vienna congress, although the principal themes of the
congress are not yet clear.
26. East German delegation to receive polite rebuff from West
German vernment: The decision of Hermann Ehlers, President
o t He es erman Parliament, to receive but not to negotiate
with the East German delegation will have no effect on the
government's plans for ratifying the Bonn and Paris treaties,
Ehlers plans to receive the Volkskammer delegation, accept their
letter, and "wish them God-speed on their return to East Germany."
Ehlers' decision, taken in concert with spokesmen of the
leading parties, is designed to deprive the East German Govern-
ment of any propaganda advantage and to counter any char es that
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the Federal Republic is acting "under American orders.
If the party attempts to go underground as its former
leader Fritz Dorls allegedly lane its subversive effective-
ness will be negligible. 25X1
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will probably emerge from the forthcoming federal elections with
no material loss of strength,
The German Party,. most conservative in the coalition,may
however swing even farther right in an effort to capture support
of the followers of the dissolved party. If this is successful,
extremists may wrest party control from the moderates.
The decision of the SRP was made in anticipation of a Con
stitutional Court decision which would almost certainly have
banned the party. The government was confident that "unequivo-
cal evidence of SRP collaboration with the Soviet Union" would
have brought about the legal extinction of the party.
a threat to coalition conservatives: The recent voluntary dis-
solution-of the neo-Nazi Socialist Reich Party. (SRP) removes a
threat to the conservative right-wing parties of Chancellor
Adenauer?s federal coalition. In consequence the right wing
Dissolution of the West German Socialist Reich Party removes
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29. French press for firm US financial assistance commitment:
Defense Minister even emp asize to mbassador Dunn on 1
September the importance of an early reply to Premier Pinay's
8 August letter stating the French assumption that the total
US commitment to support the 1953 military budget is~$650,000,000.
The Embassy believes that the French are planning their
annual report to NATO on the basis of this amount, and warns that
France must be informed as soon as possible of the final decision
on the maximum available. In view of congressional cuts in
foreign aid, the Embassy suggests that the French be assured of
receiving between $500,000,000 and $575,000,000, the actual amount
to be determined in accordance with the French defense effort.
Comment: The increase in offshore purchases in response to
Pleven's may request, funds allotted under the Moody amendment,
and any assistance in Indochina would be in addition to this
budgetary support.
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30. French official pessimistic on EDC ratification: The
Assistant of tical rector of the renc Foreign Ministry
has confided to an American Embassy representative his be-
lief that prospects for French ratification of the EDC are
less favorable now than they were in the spring. He based
this estimate on the increasing awareness in France of growing
German strength,
He believes that the outcome will be influenced not only
by the situation in regard to offshore procurement and American
guarantees on Germany, but also by developments in Indochina
and North Africa. He thinks, however, that a powerful argu-
ment for ratification will be the French conviction that the
United States is determined to rearm Germany under any cir?
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Comment: The tenor of the negotiations which the Schuman
plan ssern y is about to undertake toward the creation of a
European political community will have a strong effect on the
French attitude when ratification of the EDC is debated. Re-
cognition of Germany's growing potential will also strengthen
the French desire to retain some control over German rearma-
ment, and the EDC is the only means toward this end.
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? Comment: Both Franco and the press appear to reflect the
genera rev val of interest in closer economic and military
cooperation with the United States which has appeared in recent
weeks. A majority of Spaniards apparently have forgotten the
somewhat strained relations of a few months ago and reportedly
again favor conclusion of a base rights agreement.
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33. Spaniards urge speed in negotiations with US: The
American massy n Madrid considers t e ranco? isson in-
terview, as reported in the Washington Post on 7 September,
an authentic expression of Spanish top-level views on negotia-
tions with the United States, Leading Madrid newspapers,
which have echoed Franco's statements that Spain is discussing
only joint use and not the cession of bases, and that talks
have been retarded by "bureaucrats," are showing a growing
impatience with the slow progress to date. They have voiced
that negotiations
admiration for the United States and the hope
will be accelerated.
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LATIN AMERICA
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34. Argentine labor attache declared persona non grata by
Uruguay: he Uruguayan ore gn Ministry Informed the r-
gentine Embassy in Montevideo on 11 September that Labor
Attache Alejandro Minones and his secretary, were personae
non gratae, Police records had shown that the two Argentine
officials had been directly involved i Uruguayan labor con-
flicts, F__ I
Comment: Besides interfering in non-Argentine labor
matters Argentine labor attaches are a major channel for
Pexonista propaganda. Argentina?s labor attache in Panama
and its consul at Antofogasta, Chile, were recently expelled
from those countries for interfering in internal matters,
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