CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001200290001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 12, 2016
• Document Release Date: December 27, 2001
• Sequence Number: 1
• Publication Date: September 18, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
18 September 1952
OCI No. 9381
Copy No. . 3 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.
State Dept. declassification & release 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.
1. Danish-Polish trade agreement extended: The Danish-
Polish trade agreement which was signed ast June and was
scheduled to expire at the end of November has been extended
until 1 March 1953, according to information given the
American Embassy by the Danish Foreign Ministry.
Denmark is to receive 575,000 tons of coal at reduced
prices, with an option to purchase an additional 100,000
tons. The agreement also provides for the reduction of the
Danish credit balance to approximately $3,600,000. Trawlers
were not included in the schedule for Danish exports, al-
though the Danish commitment from the June agreement remains
in effect, if the Poles request the vessels and can pay for
them. (S Copenhagen 334, 16 Sept 52)
Comment: This may indicate that the Scandinavians will
not havo export considerable quantities of "strategic"
goods in order to obtain Polish coal. The lowering of coal
prices to the price of 'British coal suggests that Poland is
now in such a position that it will accept almost any offer
from the West in order to sell its coal.
2. Czechoslovakia reorganizes its court system: The Czech
Governmen as established a Prosecutor nera s office re-
sponsible directly to the government and having supervisory
control over the observance of the laws by all state offices
and authorities. All courts, including military tribunals,
will be controlled by a single supreme court. District
courts will be transformed into people's courts and administra-
tive tribunals will be abolished. (R FBIS Prague, 16 Sept 52)
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Comment: This reorganization was decreed on 1 July by
Minister of Justice Stefan Rais in order to emulate more
exactly the Soviet judicial system already established in
the other Satellites. The Prosecutor General, who has not
yet been named, will be one of the most powerful men in the
government "with general powers to insure adherence to
Socialist justice" by all organs, officials and individuals
of the state administration.
3. Further Hungarian Planning Office changes reported: The
US Legation a Budapest reports that Karoly Szuszki as been
appointed deputy presidentof the National Economic Planning
Office and that unconfirmed rumors are current to the effect
that Senior Deputy Director Gyorgy Osztrovszky was dismissed
"effective this week" along,with two section chiefs. (C Buda-
pest 256, 16.Sept 52)
Comment: Recent changes in the Hungarian Planning Office
have aaffected every top official except its president,
Zoltan Vas. All four newly appointed members are relatively
unknown persons but at least one of them has been associated
with Vas's alleged rival, Erno Gero, the president of the
People's Economic Council.
The purging of Osztrovszky has been long expected, since
he has been particularly associated with the much-criticized
coal industry.
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SOUTHEAST ASIA
4. French-Viet Mirth negotiations in Switzerland reported:
Tr~Y .
WWI
25X1 C
~25X1C
25X1A
Switzerland
Minister. I
n
Comment: There have been rumors in the past concerning
French-Chinese negotiations in Switzerland on the subject
of Indochina. Similar to numerous other reports on Indo-
china negotiations, these latest lack-'confirmation;
5. Eight Indonesians invited to Asian peace conference:
The preparatory committee o the Asian peace conerenc as
invited eight Indonesians to attend the conference in Peiping
with all travel expenses paid by the committee. (R FBIS
Djakarta, 16 Sept 52)
Comment.: These individuals are an addition to the 18-
member n onesian delegation which has already departed for
the conference. They are fairly prominent in political and
professional life, five of then being members of parliament.
In 1951 when the Chinese Communist Government invited
.a similar delegation to attend the 1 October celebration,
only one of those invited accepted the invitation.
6. Indonesian Government forces will be prepared for anti-
dissident campaign by ecem er: nera Pereira, ea of
the Netherlands military mission in Indonesia, and Sukanto,
chief of police, have told the American Ambassador individ-
ually that the Indonesian Army should be ready to undertake
an anti-dissident campaign by December. Pereira said the
,army needed a few months-' more training and reorganization,
including the elimination of "doubtful elements."
Sukanto said that dissident bands in West Java would be
quick to synchronize their plans "with any external movements
to their advantage," but that he expects no increased in-
ternal activity before December. (S Djakarta 507, 15 Sept 52)
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Mi
h negotiation s are reportedly taking pace in
under the auspices of the Chinese Communist
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Comment: Guerrilla groups in West Java have shown
increased s rength and coordination during the past six
months.
During this period the Minister of Defense is believed
to have concentrated as much as possible on army reorganiza-
tion and.training, reasoning that until the army became a
better trained force, its operations would continue to be
relatively ineffective.
7. Press in Indonesia commends Finance Minister's speech:
The Indonesian press has genera y app au a Finance Mini-
ster Sumitro's 10 September speech on economic policy. Most
papers particularly praised his insistence that Indonesia's
economic problems must be solved on a domestic basis.
(R FBIS Djakarta, 15 Sept 52)
Comment: Sumitro stated that Indonesia must fight
Inflation y a bold increase in production and industrial
development. He emphasized that Indonesia's primary problem
is not "finance and money, but production and hard work."
Decreased world market prices and the discontinuance
of Indonesia's favorable trade situation appear to have
forced informed Indonesians into a sound appraisal of at
least some of the country's problems.
8. Egyptian military oppose release of Communists: The
anticipated release Of' 15 Egyptian-Communists, who were
arrested under previous regimes, is creating friction
within the Nagib government. According to Ambassador
Caffery, some officials are anxious to gain popular support
by releasing all political prisoners. Many army officers,
however, believe that the Communists are "the No, 1 enemy
of Egypt" and the military has reportedly advised the
government that it will rearrest any Communists who are
released. (S Cairo 717, 16 Sept 52)
Comment: General Nagib reversed his initially-soft
policy toward the Communists after a serious labor strike a
month ago. While admitting that he has doubts about the
"inner sentiments" of a few members of his government,
Nagib maintains he can control their actions.
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9. Field Marshal Montgomery suggests reduction in Greek
Army: Deputy SHA ommander Montgomery reportedly old
high Greek officials on 13 September that he believes an
army of seven well-equipped divisions rather than the
present ten divisions should be adequate for Greece.
Montgomery suggested that Greece should present the problem
of its excessive military budget to NATO because American aid
would probably end within a year or two.
Prime Minister Plastiras subsequently informed the
American Ambassador that the armed forces would not be re-
duced. He reiterated that no important decision would be
made without prior discussion with the US Embassy.
(S Athens 932, 15 Sept; 947, 16 Sept 52)
Comment: Montgomery made a similar suggestion last May
which was immediately used by Greek officials to bolster re-
quests for increased foreign aid to maintain the current
strength of the armed forces. His unofficial suggestions
may again encourage Greek maneuvers for additional aid either
from NATO or the United States, which is on record as not
favoring a reduction of Greek armed forces.
10. France expects resurgence of violence in Tunisia: French
officials in Tunisia have informed the mer can Consul General
that all necessary precautions are being taken to counter a
new.outburst of violence anticipated in early October.
(C Tunis 152, 16 Sept 52)
Comment: Despite their expressed apprehensions that
disorders will increase in October, French authorities
released 446 political prisoners last week. The Resident
General refused for months to release all political internees
because. of the possibility that they would complicate the
maintenance of security.
It may be presumed that this recent liberation, together
with reiteration of fears of renewed disorders, is timed to
try to convince UN members that France merits their support.
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11. Pro-Italians in Trieste appear more amenable to partition
of territory: Settlement of the Trieste issue through parti-
tion appears increasingly acceptable to local pro-Italian
groups. A recent editorial in the Giornale di Trieste headed
"An ethnic line is the only line" is the first admission by the
pro-Italian press of the possibility of a settlement on a basis
other than the 1948 tripartite declaration which called for the
return of the entire Free Territory to Italy. (S Trieste Joint
Weeka 37, 12 Sept 52)
Comment: Both Italy and Yugoslavia have indicated qualified
willingness to negotiate a solution of the.Trieste issue based
on the principle of an ethnic line. They have widely different
ideas, however, as to where such a dividing line should be drawn.
The Yugoslavs are now indicating opposition to further discus-
sions on Trieste until other Italo-Yugoslav questions are settled.
12. Former Justice Minister returns in Austrian Cabinet shift:
Former Minister of Justice erne has informed American Embassy
officials in Vienna that he has agreed to accept the cabinet post
being vacated by Socialist Minister of Justice Tschadek only on
the condition that he be free of party influence and that his ac-
ceptance not be construed as approval of the government's present
"pro-Nazi attitude." Geroe said that he was pressed to take the
cabinet position by the coalition parties which "recognized the
need to strengthen the Justice Ministry." (S Vienna 767, 16 Sept
52)
Comment: Geroe's reference to the government's "pro-Nazi
attitude was probably intended to reassure American officials
of his disapproval of the coalition's amnesty and restitution
policies. There is, however, little in his previous record as
Minister of Justice to indicate a strongly anti-Nazi animus.
Socialist acceptance of Tschadek's departure is presumably
designed to improve the party's position with the electorate.
Tschadek and Minister of Nationalized Industries Waldbrunner have
been the primary targets of conservative criticism for alleged.
partisan administration of their cabinet responsibilities.
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