CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001300090001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 21
• Document Creation Date: December 12, 2016
• Document Release Date: December 26, 2001
• Sequence Number: 1
• Publication Date: October 3, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
3 October 1952
US OFFICIALS ONLY OCI No. 9392
Copy No. 2 9 7
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.
with Indonesia: The Dutch Foreign Minister has confidentially
informed a merican Ambassador at The Hague that the cabinet
has no intention of giving up control over Netherlands New
Guinea. He said that the Dutch proposal for resuming negotia-
tions on the Union statute would contain a face-saving formula
making it "just possible" for the Indonesians to discuss this
controversial issue. (S The Hague 437, 30 Sept 52)
Comment: In a joint communique on 1 October the Nether-
lands ore gn Ministry and the Indonesian High Commissariat
announced their mutual willingness to resume discussions.
2. USSR warns Denmark on granting bases: The Soviet Union
has made ano er in a long series of attempts to deter Denmark
from further participation in NATO.
In a 1 October note to the Danish Minister in Moscow, the
USSR warned against Denmark's granting military bases to
foreign troops as "a threat to the security of the Soviet
Union," and laid "full responsibility for any possible con-
sequences for such a policy" upon the Danish Government.
While Denmark has not granted any bases to the United
States, the note demonstrates Soviet sensitivity to Danish
plans to construct airfields in accordance with NATO specifica-
tions and is in keeping with Communist propaganda against the
"provocative nature" of Denmark's permitting Bornholm to be
used in conjunction with the NATO maneuvers. (Factual data
from: U Copenhagen 399, 2 Oct 52)
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3. High-ranking Soviet officials attend Chinese reception
in Moscow: On the third anniversary of the Chinese eople's
Republic, the Chinese Ambassador in Moscow, Chang Wen-tien,
gave a reception which was attended by Politburo members
Mikoyan, Bulganin and Kosygin and other ranking officials in-
cluding Minister of Foreign Affairs Vyshinsky, Minister of
War Vasilevsky, and Panyushkin, Ambassador to Communist China.
Members of the visiting Chinese delegation attended, but
there was no mention of the Mongolian Minister of Defense,
who remained in Moscow after the departure of the Mongolian
Premier and Deputy Foreign Minister. (R FBIS Moscow, 1 Oct 52)
Comment: The presence of three Politburo members may
reflex fie importance attached to current Sino-Soviet re-
lations. In 1951, two Politburo members attended a similar
reception but none were reported at the Chinese celebration
in 1950.
4. Members of Slovak "White Legion" tried for espionage and
terrorism: The ova radio reported Wednesday that eight
members of the "anti-State organization 'White Legion'" were
being tried in Kosice on charges of organized terrorism and
espionage "in the service of the American warmongers" in
various districts of Eastern Slovakia. One of the accused
stated that he acted on the incitement of foreign broadcasts
carried on the "White Legion" radio. (R FBIS Bratislava,
1 Oct 52)
Comment: The "White Legion" is a strongly anti-Communist
Slovak re is stance movement whose main activity to date appears
to consist of a twice-a-week Slovak-language broadcast beamed
into Czechoslovakia from Austria. These broadcasts resumed
last April after a lapse of about eighteen months, and monitored
broadcasts have been heard to urge the Slovaks to "do every-
thing possible to hinder police investigations" and to avoid
certain named Communist agents.
The coincidence between this trial and the gunfight on
21 September between two Czech militiamen and two "American
agents" can be expected to be fully utilized in the Czech
Government's campaign to convince its people of the need for
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increased security measures against the "infiltration of
enemy espionage and sabotage agents."
when the Czech deficit reached the 33,000,000 kroner limit
provided in the current Swedish-Czech price agreement. Accord-
ing to a broadcast from Stockholm, there is now no Swedish
iron ore destined for Satellite countries, exports of iron
ore to Poland having been stopped several-days ago.
exports o ron ore to Czechoslovakia stopped on 2 October
Swedish iron ore exports to Czechoslovakia
Although Swedish and Polish trade delegates are currently
discussing coal prices in Stockholm, no decision has yet
been reached. (R FBIS Stockholm, 2 Oct 52)
Comment: A prolonged stoppage of Swedish iron ore exports
to Orbit countries could seriously affect industrial develop-
ment and Orbit defense production. There is little likeli-
hood, however, that the cessation of Swedish iron ore exports
to Czechoslovakia or Poland is more than a temporary measure.
Recent Czech imports of iron ore from India and China,
together with new blast furnaces adapted to the lower grade
ore received from the USSR, may be reducing Czechoslovakia's
dependence upon Swedish iron ore. Czechoslovakia normally
imports much less iron ore from Sweden than does Poland,
but previously has been able to obtain the necessary high-
grade ore only from Sweden.
6. Rumanian-Yugoslav relations again deteriorate: The
American Legation in Bucharest reports that the latest develop-
ment in the current Rumanian diplomatic barrage against Yugo-
slavia was a 30 September note protesting alleged border
violations by nine Yugoslav aircraft, all but one of them
military.
The Yugoslav Charge in Bucharest believes that Rumanian
press diatribes against Tito have also increased in recent
weeks. (C Bucharest 103, 26 Sept; R Bucharest 106, 1 Oct 52)
Comment: Four protest notes were exchanged between
Yugos avT.a and Rumania during September, each government
sending two. The first was a Yugoslav accusation that the
Rumanians fabricated provocations against Yugoslav diplomats;
the remainder were protests against border incidents and
violations. The Yugoslavs have also taken over complete
control of the Iron Gate Canal towing operations because of
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Rumanian failure to pay the Yugoslav share of tolls which
Rumania collected during joint operation by the two countries.
Although relations have continued to be tense and un-
friendly between the two countries, there was an apparent
relaxation in Rumanian propaganda during the late summer,
perhaps due to Bucharest's preoccupation with internal
affairs. Relations now appear to be getting back to "normal,"
paralleling, to a lesser degree, those between Bulgaria and
Yugoslavia.
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8. Rumanians schedule Assembly elections: Rumanian news-
papdrs on October listed the members of a Central Electoral
Commission to prepare for the elections of deputies to the
Grand National Assembly on 30 November. The Commission Chair-
man is Mihai Mujic, a top official of the General Confedera-
tion of Labor; its Vice Chairman is Vasile Musat, First
Secretary of the Union of Working Youth; and the Secretary is
Avram Bunaciu who represents the state and local government
employees' union. (R FBIS Bucharest, 1 Oct 52)
Comment: Under the terms of the recently adopted
cons i u ion, deputies to the Grand National Assembly will
be elected to four-year terms on the basis of one deputy for
every 40,000 inhabitants. The present Assembly was elected
for four years on 28 March 1948, shortly_after the old
constitution was adopted, and extended its term until the new
constitution was approved. The People's Democratic Front,
which has led the "broad public discussion" of the draft
constitution, will now conduct the Assembly election
"campaign."
The appearance of Avram Bunaciu on the Commission is
noteworthy, since he was relieved of his post as Deputy Minister
of Foreign Affairs during the extensive purges of the past
summer.
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9. Anti-Western propaganda campaign expected in Yugoslavia:
A fore gna airs writer for the large government-controlled
newspaper,Politika, has informed a US Embassy officer that he
expects a strong anti-Western propaganda campaign in Yugo-
slavia in the near future. The writer interpreted the ex-
pected campaign as a means of strengthening internal policy,
which is considered by the Communist Party leadership to be
moving too far toward the West.
Ambassador Allen comments that he does not expect the
Western powers to be attacked at the November party congress,
although there is certain to be a campaign against bourgeois
Western influences. This may lead to another complaint
about American information activities in the country. (C Bel-
grade 458, 1 Oct 52)
Comment: Yugoslav Communist leaders, including Tito,
have no esitated on past occasions to make public attacks
on the policies of the Western powers. In most cases, these
attacks appeared to be for local Communist consumption and
aimed at retaining the support of the rank and file of the
party. While such attacks have been minimized for a long
time now, they might well be resumed for the same reason at
the party congress.
10. Plan to assassinate Tito while in England reported: A
Soviet-inspired attempt to assassinate Marshal Tito allegedly
will be made by a Croat group during his "forthcoming" visit
to England.
Comment: This report has no confirmation. There is no
doubTever, that Croatian exiles are foremost among the
many who would be involved in an assassination attempt. Tito
accepted the British invitation eagerly, but British Foreign
Secretary Eden has announced that the visit will not take
place until after the coronation of Queen Elizabeth next June.
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11.
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12. Pulping claims "extermination" of 2,000,000 guerrillas:
A Chinese Communist leader, surveying the . regime s accom-
plishments on its third anniversary, asserts that "over
2,000,000 local bandits" have been.'bxterminated" and that
the anti-Communist guerrilla movement in China is "finished."
(R FBIS Peiping, 30 Sept 52)
Comment: In mid-1951 Peiping claimed to have "extermi-
nated*r7r_,0m,000 guerrillas. Peiping now claims to have
suppressed, in the past 16 months, more than twice as many
guerrillas as were estimated to exist. This claim is ex-
plained. in part by the use of "extermination" to mean simply
dispersal, so that any given group may be "exterminated"
several times, and in part by Communist exaggeration of the
problem in order to receive proportionate credit for solving
it.
Although the guerrilla movement in China is not "finished,"
it currently poses no serious threat to the regime as the
number.of guerrillas is now estimated at. less than 100,000
men.
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13. More socialized agriculture reported in China: The
MinisFe'r of Agriculture in Peiping stated that more than ten
collective. farms and over 4,000.producers.' cooperatives have
been set-up in China. Fifty-two mechanized state farms,
admittedly still in an experimental stage, have. been formed
in the past three years to "educate peasants in collective
farming." Two-fifths. of China's peasants have joined various
forms of mutual-aid teams. (R FBIS Peiping, 25 Sept 52)
Comment: These figures show a large increase in the
regimen a on of China's rural population over the past year.
In late 1951 or early 1952, according to Communist statistics,
there were only two collectives., about 200 producers' coopera-
tives and 45. mechanized state farms. There are also 40 per-
cent more mutual-aid teams now. An early 1952 State Admini-
stration Council directive stated that 80 to 90 percent of
the peasants in the old liberated areas, such as Manchuria
and North China, should be organized by 1953, and in the
rest of China by 1955.
Decreased military activity in Malaya continues: The
week en ng 18 September was one o the quietest s nce the
beginning of the emergency with only 37 Communist-inspired
incidents. (S Singapore Joint Weeka 39, 26 Sept 52)
Comments: Terrorist incidents have decreased from a
weekly average of 99 in May to 45 in September.
Captured documents have directed a relaxation of terror-
ist activity to conserve Communist military resources and
greater attention to the indoctrination and organization of
the masses. These documents point out that some military
activity and economic sabotage, however, must continue.
15. Philippine Foreign Office surprised by Quirino's
conference proposa : Philippine Undersecretary for Foreign
Affairs Neri recently informed the American Embassy in Manila
that his office had not been notified in advance of President
Quirino's announcement calling for a conference of Southeast
Asian countries next year. Neri stated that his office is
fully cognizant of the "groundwork" required before such a
move is seriously contemplated. (C Manila 981, 1 Oct 52)
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Comment:. On 25 September Quirino announced that he was
takings eps to convoke another regional conference in May
1953. The American Embassy believes that.Quir.ino's.an.nounce-
ment may have been prompted. in. part by. political motives.
16. Indonesian Prime Minister discusses internal security
situaian: Prime Minister . Wilopo, stated on September at,
excep T5r west Java,. security conditions in..Indonesia are
"good." He.admitted, however, that "emergency operations"
are still in progress in the. South Celebes and that disorders
continue in Central. Java..
Answering parliamentary allegations that the Indonesian
Socialist Party is trying to dominate the Defense. Ministry,
Wilopo said he had found no proof that the Socialist Party
is gaining control of the Ministry. (R FBIS Djakarta,
1 Oct 52)
Comment: Severe parliamentary criticism of the Defense
MinisEry for incompetence and domination by the Socialist
Party has given rise to reports that the Prime Minister and
his National Party would not support the anti-Communist
Minister of Defense on an expected nonconfidence motion.
Wilopo's statement, generally defending progress toward
internal security and refuting charges of Socialist control
of the Defense Ministry, indicates that he will continue to
support his minister.
Indian official supports Afghan Pushtoonistan campaign:
In a conversation w an American massy official on 30
September, the Indian Acting Foreign Secretary defended
Afghanistan in its Pushtoonistan campaign. When the
American official urged that the Afghan Government drop the
issue, the Foreign Secretary answered that India supports
the Afghan position on the matter, and is unwilling to ask
them to stop their propaganda and "other activities."
(S New Delhi 1398, 1 Oct 52)
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Tunisian budget crisis resolved: The French Resident
GenerT in Tunis told the America n Consul General that he had
obtained the Bey's approval on 29 September of the 1952--53
Tunisian budget by indulging in "rug merchant tactics." The
necessary countersignature was secured when the Resident
agreed to double the Bey's household expense allowance.
Although the French had contemplated demanding certain
quid pro quo's before increasing the Bey's stipend, the
Resident abandoned the idea in order to avoid "tarnishing
the public relations value of French generosity" in the UN
General Assembly. (C Tunis 124, 30 Sept 52)
Comment: The Tunisian Government has operated since 1
April under`-a six-month emergency budget which could not
legally be extended, and the French were apprehensive that
the Bey's approval could not be obtained before the 1 October
deadline.
Some French officials in the Residency General had sug-
gested that,for increasing the Bey's allowance, the Resident
secure the necessary approval of some of the administrative
reform decrees rejected by the Bey in early September.
United Nations declaration of incompetency allegedly
would se Me Tunisian Impasse: According to the FrencH_
Resident General in Tun s a, if the General Assembly were
to vote itself incompetent, the Tunisian problem could be
solved quickly. Collapse of Neo-Destour hopes would end
the nationalists' opposition to the reform program, the Bey
would resume collaboration with the Residency General, and
decrees instituting legislative, financial and municipal
reorganization could be effected at once, and elections
scheduled for early April. (C Tunis 124, 30 Sept 52)
Comment: The Resident General is overoptimistic in
this m-after, inasmuch as the Nuo-Destour leadership has
frequently declared that the French proposals for reform
are no real step toward autonomy and, therefore, are un-
acceptable. Because nationalist strength has increased
considerably during the past year, a more probable reaction
would be increased nationalist agitation with a possible
attempt to gain autonomy through insurrection.
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20. East German expropriation decrees reported extended to
famils of refugees: 25X1 C
25X1C East German decrees providing for the seizure
of property of persons who have fled or who are preparing to
flee East Germany have been made retroactive to May 1945 by
secret directives. Under the same directives, families of and
persons who had lived with refugees are suffering eviction from
their homes and the loss of furniture and business property.
25X6
American officials in Berlin comment that the extension of
the expropriation decree to persons associated with refugees
is intended to be a strong deterrent to flight from East Germany
and dramatizes the fact that the retention of private property
is purely a matter of state decision. (C Berlin Unnumbered,
27 Sept 52)
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Lagging Austrian coal imports concern American officials:
After discussions in Vienna with Austrian authorities:, Mutual
Security Agency officials in Paris are deeply concerned over lag-
ging Austrian imports of coal from Poland. Attributing the low
level of Austrian procurement to inadequate credit policies and
to lack of storage space, these officials warn that-failure to
buy Polish coal now may increase Austrian dependence on American
aid at a time when assistance funds are much reduced. They sug-
gest that it might be advisable for the Austrian Government to
provide credit to maintain stocks at least at the present levels.
Meanwhile, Austrian officials have indicated an intention to
reduce stockpiles still further to minimize the amount of working
capital tied up in coal inventories. (C MSA SRE Paris to Vienna
REPTO A 37, 24 Sept 52)
Comment: The Austrian Government has been under strong
pressure from MSA officials in Vienna to impose stronger credit
restrictions to curb inflation.
Failure of the Austrians to exploit their favorable coal
balance with the Poles may also be due to recent decentralization
of coal procurement procedures and to the Austrian Government's
belief that a large credit balance will improve its bargaining
position in future trade negotiations. The Austro-Polish trade
agreement is scheduled for renewed negotiation this fall, at
which time deteriorated coal stocks would be a distinct dis-
advantage to the Austrians.
24. Policy differences seen developing among Western powers on
Austrian treaty: The Amer can Ambassador in Vienna reports that
Foreign Mini ter Gruber, the French, and to a lesser extent the
British representative, are prepared to accept the old draft
treaty for Austria on the assumption that the United States will
"shoulder the financial burden."
While all participants agree that the abbreviated treaty
has "pushed the Russians toward acceptance of the longer draft,"
Foreign Minister Gruber and the French are anxious for a
conference in which the Russians could state their terms. (S
Vienna 888, 30 Sept 52)
Comment: Under the terms of the original draft treaty,
the Russ ans would relinquish claims to German assets in eastern
Austria in return for Austrian payment of $150,000,000. The
British and French Governments insisted at the time the ab-
breviated draft was introduced that it should not preclude a
return to the old draft. The Austrian Foreign Ministry also
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appears to be in process of amending its earlier views that
concessions previously made to the Soviet Union are no longer
acceptable.
Coal-Steel High Authority opposes closer ties with Council
of Eura e: According to Ambassador Draper, the gh Authority
of the Coal-Steel Community (CSC) is opposed to the British-
originated[ proposal of the Council of Europe that the two inter-
national bodies to be tied more closely together, The High
Authority's opposition does not stem from a desire to keep the
British "at arm's length," but rather from the belief that the
proposed ties are an attack on the CSC's sovereignty.
Draper states that if the CSC Assembly should accept certain
provisions of.the proposal, the High Authority presumably would
appeal to the Community's Court on the ground that the CSC treaty
had been contravened. (C Paris Polto 380, 30 Sept 52)
Comment: French Socialist leader Guy Mollet has threatened
that t e rench Socialists will vote against ratification of the EDC
treaty if Germany and Italy continue their opposition to closer
ties between the CSC and the Council of Europe.
The latest version of the British proposal would limit
participation in CSC affairs by non-members of the Community to
the right to speak but not to vote.
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27. New nationalistic bloc in French National Assembly reported:
The American Consul n traibourg reports that G bert Grandva ,
the French Ambassador to the Saar, is believed to have ambitions
of displacing De Gaulle in a future organization of members of
the wartime resistance. Grandval reportedly has strong con-
nections in De Gaulle's Rally of .the French People and is as-
sociated with Popular Republican Georges Bidault and Socialist
Robert Lacoste in leading a new bloc which now controls 140
deputies in the National Assembly,
The strategy of this bloc reportedly is to promote a multi-
partisan movement against Premier Pinay in two or three months.
(S Strasbourg 135, 1 Oct 52)
Comment: Although no other reports of such a bloc have
been race ved, the information is consistent with the known
aspirations of many centrist and leftist deputies reacting
against the return to power of many of France's prewar states-
men. These deputies can be expected to make a strong bid this
fall to overthrow Pinay, by exploiting the opposition to EDC as
well as the government's price and budgetary policies.
28.
New four-power talks could delay French ratification of EDC:
The Amer can Ambassador n Par s cons ers it probable that Franc
would press for a four-power conference on Germany if Russia
should propose simultaneous discussion of a German peace treaty
by the four powers and of election conditions by East and West
Germany.
The Ambassador points out that if such a proposal were to
be made on the eve of the French ratification debates on the EDC,
it would afford opponents of EDC a "golden opportunity" at least
to delay action on ratification. (C Paris 1978, 1 Oct 52)
Comment: A proposal for such simultaneous discussions was
made recently by the East German Volkskammer delegation to Bonn,
and appears to be a Soviet attempt to hinder ratification of the
contractual agreement and the EDC treaty,
French objections to the 22 August'Soviet note were based
on Soviet reiteration that peace treaty talks should precede
discussions on elections and the formation of an all-German
government?
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29. Argentine student strike may be exploited by army: A strike
of 1,200 Buenos Aires engineering students is -reportedly spread-
ing to other university schools in the cities of Buenos Aires,
Eva Peron, Cordoba, and Rosario. The strike began on 30 Sep-
tember, allegedly to protest government interference in the
engineering school, but obligatory Peronista political courses
are also reportedly involved.
Some observers think that if the unrest should spread, the
army, which is closely observing student moves, may use the
student strikes as a springboard for a "now or never jump." (C
Buenos Aires 230, 1 Oct 52)
Comment: Peron's reported reneging on a promise to re-
establish the prestige of the armed forces has increased the
volume of rumors concerning a possible revolt, but no concrete
plans or ]Leaders have been reported. The government is main-
taining strict security measures.
30. Spokesman for Ibanez discusses US-Chilean relations: After
the Chilean Congress declares Carlos Ibanez Presi en -E ect, the
Ibanista press will cease its anti-US campaign, according to
Edecio Torreblanca, a responsible Ibanez spokesman. Torreblanca
also said that the mines would not be nationalized and that
Chile would not resume relations with the USSR.
Ambassador Bowers explained what trade with the Soviet
Orbit in strategic materials would mean to Chile in view of the
Battle Act. He also stressed that the US-Chilean military agree-
ment had not been forced on Chile and that, since it is more to
Chile's benefit, the US only wishes to know soon the incoming
administration's intentions regarding the agreement. Torreblanca
admitted that some of these considerations had not occurred to
Ibanez and that the advantages of the military agreement and US
financial assistance are greatly desired. (S Santiago 120,
26 Sept 52)
Comment: Torreblanca's comments are considerably more
moderate tan those expressed by other apparently self-appointed
but unrestrained spokesmen for Ibanez. Since the election
Ibanez has reportedly been trying to curb unauthorized state-
ments of his future policies,
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31. New disturbances break out'in Venezuela: According to
Incomplete reports from a-racas, sor ers which broke out at
an army barracks in Maturin, near,the eastern oilfields, on
1'October were quickly "smothered," apparently by Tederal
police.
On the same date some workers at a nearby oilfield failed
to report for work, but no connection is known to exist between
this and the military uprising. There is some fear of a general
strike, although conditions at other eastern oilfields are
normal. (C Caracas 141 and 146, 1 Oct 52)
Comment: Further outbreaks can be expected between now
and t 'November constituent elections. Embassy interviews
last week with prominent officials and private citizens suggest
that junior military officers and aroused civilians, rather than
the outlawed Democratic Action Party. alone, may now be attempt-
ing to force changes in government, policy or in the government
itself.
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TOP SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
3 October 1952
CIA No. 49825
Copy No. 38
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
(including S/S Cables)
Not for dissemination outside O/CI and O/NE.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This digest of significant reports has been prepared primarily
for the internal use of the Office of Current Intelligence. It does
not represent a complete coverage of all current reports in CIA
or in the Office of Current Intelligence. Comments represent the
immediate views of the Office of Current Intelligence.
TOP SECRET
SECURITY INFORMATION
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TOP SECRET
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.
SOUTHEAST ASIA
1. Indonesian "national" Communists report possible So-
cialist coup: Leaders of artai ur a, the so-cal "na-
tionalist" Communist party, report a "strong rumor" in
Djakarta military circles that the Indonesian Socialist
Party is planning a coup d'etat, working through key persons
in the army and the government. Socialist plans for a coup
have been d to President Sukarno by Colonel Bambang
Supen.o. FOR CRITICAL
SECURITY REASONS this report is not to ther transmitted
within the United States, or beyond the borders of the United
States, without the express permission of the releasing office.)
Comment: The rumor of a Socialist coup appears to be
entirely unreliable although the existence of the rumor is
understandable.
Colonel Bambang Supeno failed to obtain the position of
acting Chief of Staff of the armed forces, a job which he
very much desired. He therefore wrote a letter to President
Sukarno and apparently also submitted a copy of the letter to
the defense committee of parliament criticizing the policies
of the Defense Ministry. In the subsequent parliamentary
discussion inspired by the letter, leftists alleged that the
Defense Ministry is dominated by the Socialist Party. The
rumor of a Socialist coup apparently has arisen from this
welter of charges and criticisms.
NEAR EAST - AFRICA
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3. Reduction in American visits to Belgian Congo urged: The
American Embassy in Brussels recommended on 30 September that
official visits of Americans to the Belgian Congo be reduced
to a minimum and referred to the Embassy for approval. Fre-
quent visits of American. officials tend to increase Belgian.
suspicions concerning United States "intentions" toward the
Congo. Representatives of Belgian firms there have also
complained to their home offices about the loss of working
time caused by important visitors, both Belgian and American.
(C S/S Brussels 344, 30 Sept 52)
Comment: American motives and interest in the Congo's
strategic mineral production have been the object of Belgian
suspicions since World War II. The chronic resentment against
foreign attention to Congo affairs and alleged American "anti-
colonialism" on African questions may be moving into a more
acute stage.
4. East German bourgeois parties facin uncertain future:
Reports from East Germany of declining membership and re-
stricted activity of the Liberal Democratic Party (LDP) are
indicative of the uncertain future of the bourgeois political
parties in the East Zone in general.
According to reliable information, LDP membership was
down to 144,000 after the loss of 1,300 members in July.
Possibly to prevent further defection, members of the party
hierarchy have since 1 September been forbidden to visit
2 3 Oct 52
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TOP SECRET
West Berlin, and party members may visit relatives there
only with the consent of the party secretary-general.
Although plans for increasing activity in West Germany are
being formulated, the party's West German operations have
been "very limited" since last spring.
The reorganization of the East German Government and the
corresponding concentration of power and positions in the SED
has cost all bourgeois parties heavily. Although the per-
formance of assigned roles will probably keep their organiza-
tions alive for some time, these parties now exercise little
influence on East German affairs. (Factual data from: S/
Sensitive Frankfurt Sitrep 37, 30 Sept 52)
LATIN AMERICA
5. Brazilian president reportedly will not attend Chilean
inaugur t on: The Peruvian Foreign minister Informed the
American Ambassador in Lima on 1 October that President Vargas
of Brazil would not go to the Chilean inauguration, but in-
tended instead to send the Brazilian vice president. (S
S/S Lima 117, 1 Oct 52)
Comment: The Peruvian and Brazilian Foreign Ministries
have expressed apprehension that "president-elect" Carlos
Ibanez of Chile may be planning some anti-United States pro-
ject, but believe that his plans are contingent upon Vargas'
attendance at the inauguration.
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