CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001300260001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 19
• Document Creation Date: December 12, 2016
• Document Release Date: January 31, 2002
• Sequence Number: 1
• Publication Date: October 28, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
28 October 1952
OCI No. 0087
Copy No. 296
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.
DIA and DOS Reviews Completed
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,
1. Moscow times Peace Congress to prevent ratification of
Bonn-Paris treaties: The East rman press has recently
announce a decision of the International Initiative Committee
to hold a Conference for the Peaceful Solution of the German
Question in Berlin on '8 November.
American officials in HICOG believe that the scheduling
of the conference for early November along with the Peace
Congresses to be held in Vienna and Berlin indicates that
Moscow is attempting to time the international conferences
so that they will have maximum influence upon the Bundestag
and French Assembly debates on ratification of the Bonn-Paris
treaties. The American authorities also feel that Moscow is
probably withholding its reply to the last Western note on
Germany so that it can be used as fresh ammunition at the
conference in Berlin. (R HICOG Berlin BN-1014, 21 Oct 52)
Comment: Other political sources indicate that the
Kremlin'- will continue its efforts to prevent or delay rati-
fication of the Bonn-Paris treaties. Recent French and
German reaction to the treaties may have fanned these hopes
so that further diplomatic and propaganda tactics would still
be timed for maximum efficacy in Germany and France.
2. Yugoslav-Macedonian "diversionists" group reportedly
liquid a in Bulgaria: According to a ace onzan-language
broadcast from o ia, the Bulgarian People's Militia discovered
and liquidated a Yugoslav-Macedonian "group of diversionists"
in southwestern Bulgaria on 21 October. (R FBIS Ticker Sofia,
25 Oct 52)
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Now,
Comment, There have been frequent indications that
both Yugoslavia and Bulgaria are conducting espionage and
subversive operations as well as extensive propaganda
campaigns in the Macedonian area. On 10 October an un-
usually pointed Macedonian-language broadcast from Sofia
noted that "the moment has arrived" when Yugoslavs must act
boldly and resolutely in order to "destroy the cruel
fascist; regime and liberate Yugoslavia from imperialist en-
slavement."
Although numerous trials of Yugoslav spies and saboteurs
have been conducted in Bulgaria during the past several
years, official announcement of the militia's "liquidation"
of a diversionist group is unusual.
3. Czech Ministry of National Defense reportedly begins
expansion o women s auxiliary reserve, The Czech inistry
o 1National Defense i- s ee?g nnin g tie extensive training of
women for wartime work as medical personnel, air-raid
wardens, telephone and teletype operators. Czech Communist
Party organizations have been ordered to select groups of
women from technical and trade schools and certain industrial
installations for training, after which they will receive
reserve ranks equivalent to non-commissioned officers.
25X1A
Comment. For at least two years Czech women over
16 years page have been recruited for military service.
An extensive recruiting program is believed to have been
started last summer.
The women are given five to six months' schooling which
includes training in light weapons, driving and radio, after
which they receive sergeant's ratings. Members of the
women's auxiliary wear military uniforms and are subject to
military discipline. It has been reported that recruits
must agree to serve for five years. In addition to military
hospital and office work, the women's auxiliary furnishes re-
cruits for the Secret Police and Counter-Intelligence Corps.
4. Hungarian party prepares to apply Soviet Party congress
princ plea to Hungarian conditions, T e Hungarian Workers
warty entral ommittee on c Ober elected an eight-man
committee "to examine the documents" of the Soviet Party
Congress"and draw the necessary conclusions for their
application in the various fields of party work and state
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activities." The committee includes the delegates to the
Moscow congress, the chief party theoretician, and two
agricultural ministers.
The US Legation at Budapest believes that the Hungarian
Party Politburo probably will be replaced by a Praesidium
and the party rechristened the Communist Party, of Hungary.
The Legation also speculates that collectivization will be
stepped up and that economic relations with the USSR and
the Orbit will be strengthened. A party congress is likely
to be called on 1 March, according to the Legation.
(S Budapest 369, 25 Oct; R Budapest 368, 25 Oct; R FBIS Buda-
pest, 24 Oct 52)
5. New effort made to discredit VOA and RFE in Poland:
In a new effort to discredit the Vo ce o America an Radio
Free Europe, Polish propaganda organs have been disseminating
a story that VOA and RFE transmitting stations in Germany
have been placed under the supervision of the German
authorities. The source of this story has been described
as the American Consul General in Munich.
According to some of the charges, RFE will clear its
manuscripts in the future with German authorities in order
to screen out anti-German tendencies, and the neo-Nazi
authorities in Bonn will censor RFE scripts. (C Warsaw 211
and 222, 22 and 24 Oct 52)
Comment.- Considerable emphasis has been given to this
line o a ack against VOA and RFE since its inception. Un-
doubtedly it will cause some listener confusion and create
doubt as to the "objectivity" of these programs.
6 . Third quarter plan fulfillment announced in Rumania:
The Rumanian Government has announce a the economic plan
for industry in the third quarter of 1952 has been fulfilled
by 100.3 percent. Over-all industrial output increased
25,1 percent and labor productivity was up 12.2 percent over
that for the third quarter of 1951, while investments are
said to be 28.6 percent more than for the corresponding
period of 1951.
All Ministries exceeded their goals except those of
the Coal Industry, Rural Economy and Local Industry, Food
Industry, and the Meat, Fish, and Milk Industry. Production
of coal, cement, bricks, and milk products failed to reach
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set goals, but the amount of metallurgical coke, small diesel
engines, electrical equipment, agricultural machinery, and
coal-cutting hammers produced was far above the plan,
according to official figures.
Grain collections were said to have greatly exceeded
those of the third quarter of 1951. (R FBIS Bucharest,
23 Oct 52)
Comment: Gross industrial output in the third quarter
exceeT.o -the first time this year the goals required to
meet the 24.5 percent increase called for in the over-all
1952 plan. The rate of growth in investments was considerably
less than the 40.6 percent figure given for the second quarter.
The coal and food industries continue to show un-
satisfactory progress, as they have all year. A separate
Ministry of the Coal Industry was set up in August, and the
Ministry of the Food Industries was divided in September as
the regime attempted to improve their performance.
Although no plan fulfillment figures are given for
grain collections, the claim that much more was collected
this year than last suggests that considerable pressure has
been used. Peasants with small and medium holdings have
subsequently had to be granted allowances in their delivery
quotas because of bad weather conditions.
7. Bulgarians request information of Yugoslavs on use of
Iron Gates Cana : The ugarian massy In Belgrade as
asked the egos av Foreign Ministry for information on the
sums owed by the Bulgarian river shipping to Yugoslav river
agencies for use of the Iron Gates ship canal, The Bulgarian
Embassy also requested information about the method of pay-
ment of the debt in order that Bulgarian ships may use the
canal without hindrance. (R FBIS Ticker Belgrade, 25 Oct 52)
Comment:. The Czechoslovak Shipping Company is the only
Orbit company which paid its towage fees in advance before
the 21 October deadline set by Yugoslavia. Since the Yugo-
slavs announced their assumption of the full administration
of the Iron Gates canal and its towing service, they have
stopped the Rumanians from using a tug owned by the Iron
Gates administration to tow Rumanian barges through the
canal. The Yugoslav home radio has commented on a Bulgarian
ship taking an hour and a half to go through the canal using
only its own tug.
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8. Bulgarian border violations reported by Yugoslav radio:
Accord ng to a ugos av Home Service broadcast, seven and
possibly eight Bulgarian aircraft, including a MIG-15,
violated Yugoslav airspace in the vicinity of Dimitrovgrad
(Caribrod) on the morning of 26 October. At the same time,
Bulgarian forces reportedly opened fire on a Yugoslav
frontier post northeast of Dimitrovgrad. (R FBIS Ticker
Belgrade, 26 Oct 52)
Comment.- The Dimitrovgrad area is particularly
sensitiv i that it lies at the Yugoslav border gateway
along the principal route connecting Sofia and Belgrade.
Violations of the border may have resulted from Bulgarian
attempts at aerial reconnaissance, or as a result of mili-
tary activities in the major Bulgarian maneuver areas lying
adjacent to the Yugoslav border both to the north and south
of Dimitrovgrad.
The Yugoslav Foreign Ministry recently announced that
it will lodge a sharp protest against a similar airspace
violation allegedly committed by Hungarian MIG-15's on
21 October.
9. Yugoslav interior security troops may be disbanded:
In separate conversations, two Yugoslav officers have told
the US Army Attache that the interior troops of the KNOJ,
Yugoslavia's security force, have been disbanded recently.
Allegedly, they are no longer needed because resistance
groups in the mountains have been eliminated.
The attache comments that, if true, this would result in
the reassignment of about 20,000 men from four interior
KNOJ divisions to the Yugoslav Army. However, he states
that information as late as this September indicated the
existence of interior KNOJ battalions. (S USARMA Belgrade
YUG 933, 23 Oct 52)
Comment: There have been rumors that the elite KNOJ
units were to be inactivated. If true, the explanation is
probably that Tito feels safe in relying upon the personal
loyalty of his regular army personnel and the 40,000 militia
to eliminate organized anti-regime activity. The disbanding
of interior KNOJ troops would be an economy, would be
"evidence" of the regime's ostensible trend toward democratic
methods, and would remove an organization which might be
vulnerable to infiltration by pro-Stalin agents.
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The KNOJ has been a typical Soviet-type security force
with military training and equipment. It recently was
estimated to number 58,000 officers and men organized into
4 divisions, 6 brigades and miscellaneous elements.
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FAR EAST
South. Koreans announce ousting..of Japanese technicians:
Radio-T-usan on. c offer announced that the South Korean
Government has decided to send. back the Japanese technicians
now employed at various Korean ports and to replace them with
Korean specialists. Various categories of South Korean tech-
nicians such as radio operators and salvage-ship operators
were requested to register immediately with the government.
(R FBIS.Pusan, 27 Oct 52)
Comment: This is a unilateral announcement on the part
of the .ou.. Korean..Gover.nment and will. serve further to con-
fuse or embitter Korean-Japanese-United Nations Command re-
lations. The Japanese technicians are currently under contract
to UNC.and not the South Korean Government. The UNC, however,
has proposed that a gradual reduction of Japanese take place
along with the training of Koreans.
Japanese policy in Korea prior to. World War II prevented
the development of a reservoir of technicians. This situation
has been further aggravated by the Korean war.
25X1C F__ I ae Nak-,dun George Paek), ROK
Minister of Education,has offered his.resignation to President
Rhee and. urged that it be accepted. Paek reportedly desires
to be appointed ROK envoy to the UNESCO sessions convening soon
in Paris.
25X1 C
Reportedly. Home Minister Chin Hon-sik is also to be
dropped. from the cabinet, A possible replacement for him is
rumored to be Yun Chong-hun or Yi Hwal, both strong Rhee
supporters. 25X1A
Comment: Incumbent Home Minister Chin was appointed
during. ee s drive to undermine the growing influence of
former prime minister Chang Taek-san and former home minister
Kim Tae--sun. His,dismissal in favor of more stalwart Rhee
adherents is probable,
Ge.orge.Paek is the senior Minister in Rhee's cabinet.
He has .generally been able to remain out of the main stream
of the South Korean political turmoil.
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Chinese Communists concerned over possible Nationalist.
invasion : T i e . . .nese a _ m m u n s s e x p e c t an .e.ar y -a-s- I on
of main`Tand._China by the Nationalists from. Formosa.9 according
to continuing reports received. by the American Consul General
in Hong.K.ong These reports suggest that the new invasion
precautions which have been taken in many coastal cities are
a result of fear aroused by Nationalist aerial reconnaissance
and guerrilla raids in sensitive areas, (S Hong Kong 10419
Joint Weeka 409 24 Oct 52)
Comment: The recent large-scale Nationalist raid on Nan
Jih Is7Canc'LT off the Fukien.coast about 80 miles northeast. of
Amoy, may have been regarded by the Communists as a prelude
to invasion of the mainland.
Extension of South China.railroad into Indochina rumored:
A Hong ong newspaper repo rte a e Hunan- warts ra way
had been extended to the Indochina border on 7 November and
subsequently to the Viet Minh border town of Dong Dango
(R FBIS Hong Kong, 24 Oct 52)
Comment..- This report is unconfirmed. Previously, the
line own to terminate at Pinghsiang, ten miles from the
border. An extension of..the line into Viet Minh territory
would not greatly increase its capacity to deliver military
supplies. On the other hand, the new terminal would be
vulnerable to French bombing.
SOUTH ASIA
Indian checkposts on Tibetan border appear ineffective:
e US M3111 tares ac We
in New Delhi has described an n an police checkpost at
Nilang (31-03N, 79-15E) in northernmost Uttar Pradesh State,
along 'the.Indo-Tibetan border. The personnel at the post
are a sub-inspector, ten armed police, ten unarmed police,
and two wireless operators. According to the sub-inspector,
the establishment is designed to maintain. normal security,
not to antagonize the Chinese, and its total armament con-
sists . of ten .303 rifles,
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The Nilang police are responsible to the Indian Home
Ministry rather than to the state government or police, and
they report directly to New Delhi three times daily. One
sentry on a hilltop watches for persons attempting to in-
filtrate the post, and all persons passing through Nilang
are finger-printed and required to fill out a long question-
naire.
Morale at Nilang is low because of its isolated position,
and the.. police, are lax in carrying out their duties. (S US
ARMA India R-304-52, 20 Aug 52)
Comment: Nilang post, which is probably typical of the
12 repor a Iy established along the Uttar Pradesh border, is
located.in an area where Chinese Communists have laid claim
to Indian territory. Its effectiveness can be judged from
the fact. that one sentry stands guard during the-day, while
there is presumably none at night. The. post apparently relies
on traders for its information about Tibet.
Indian-leftists to raise no-confidence motion against
government in ravancbr-hoc in to e : Tiie -m-m-unis op} o-
won ea er o e-Travancoa-re- Coc6Fian State Legislative
Assembly has given notice of a no-confidence motion to be
introduced. against the Congress Party government, according
to the Indian press. Although he claims this motion will be
supported. by the Socialists, the United Leftist Front, and
five Independents, Congress Party circles appear confident
that their government will survive the test. (U New Delhi
1729, 25 Oct 52)
Comment: This time-consuming type of harassment is
faced >~ y He Congress Party in states where its majority is
slim, A no-confidence motion raised in Rajasthan as re-
cently as 17 October was defeated on the 21st.
Since the opposition in Travancore-Cochin has approxi-
mately 48. members, while the Congress Party can muster 60
votes, it appears that the government will weather the
crisis,
c~ Oct 52
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25X1A
25X1 C
25X1 C
25X1A
Relationship of Tudeh and the Azerbaijan Democratic
Party: Tudeh ocumen
i'n early 1952 indicates that the Tudeh Party as such does
not operate in Azerbaijan, but leaves all revolutionary
activity there in the hands of the Azerbaijan Democratic
Party. Tude.h recognizes Azerbaijan as a separate nation
which must have a party of its own that "Adheres to its
national aspect while keeping the leadership with the
Communists." According to the document, Tudeh supports
the movement for an.independent Azerbaijan and Kurdistan
because it weakens the central governments of Turkey, Iraq
and Irap. and is "within the framework of world revolution."
Comment: Other information indicates that the Azer-
baijan emocratic Party, although apparently responsible
for Communist activity in Azerbaijan, is only semi-
autonomous and may actually be under the direction of the
Tehran. Provincial Committee of the Tudeh. In September
1952 it.was reported that Azerbaijan Democratic activity
was to.be..stepped up and that attacks on the United States,
particularly on Point IV, were to have priority.
Deteriorating political situation confronts Iraqi
Regen't:. Four-political par ie iin Iraq are reportedly
'
rea y to boycott the forthcoming elections if.the Regent
turns down a series of reforms,
25X1 C
palace officials in
Baghdad have resolved to bring the deteriorating political 25X1A
situation to the attention of the Re entd
make-up of
the.
caretaker cabinet which will conduct the
elections.
The
political parties threatening a boycott are
extremists
and
their demands for electoral reforms have had
the backing
of
the Communists.
Comment: Parliament was dissolved on 27 October. Iraq,
now governe by a caretaker government, awaits the decision
of the Regent on the date of the elections, which will be
held shortly, on whether there are to. be reforms, and on the
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These reports.indicate that the political pressures
which have been causing upheavals in Syria, Jordan, Egypt
and Lebanon may also be powerful in Iraq.
Egypt's participation in MEDO depends on. British
evacua ono uez - eneea ag~ iii and? e g p an -Yoreign
finis er Tia.ve Tn rmed the Turkish Ambassador in Cairo that
Egyptian participation in MEDO is impossible as long as
British. troops remain in the Suez area. Nagib stated that
while he would not be "so foolish as the Wafd" and fight the
British, he could not accept anything short of British
evacuation of the canal zone.
The general stated that it was in Egypt's interest to
enter an organization such as MEDO, but also pointed out the
disadvantages. which he believed Egypt would suffer in joining.
Its participation, he said, would induce the other Arab coun-
tries to follow suit, If Egypt subsequently withdrew, other
countries, particularly Syria and Iraq, might remain and Egypt
would -then be isolated.
Nagib informed the Turkish Ambassador, however, that he
would continue studying the question of participation and
discuss the matter with him in two or three weeks. (S
Ankara 543, 24 Oct 52)
Comment- This is the clearest statement to date of the
EgyptTai mrTitary regime's attitude on the withdrawal. of
British troops from the canal zone. It is also the first
suggestion that the Cairo government might not join MEDO
even if Britain evacuated the Suez area.
General Nagib's moderate policy reportedly hampered by
lack 31-Western i aener?a~Ts~Ta -~4ueite as comp-Ia n ng
a he as not yep received any advantage from his friendly
policy toward the West, and consequently is experiencing
difficulty in controlling the nationalist members of his
cabinet, who he says are inclined to favor Russia.
Nagib cited his failure to obtain jet aircraft and the
release of 5,000,000 pounds. from Great Britain as handicaps
that make it difficult for him to convince extremists in the
cabinet that a pro-Western policy is worthwhile,
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According to I Nagib 25X10
gave this information to an intermediary wi a apparent
intention that it be relayed to-Great Britain. (S London
2432, 25 Oct 52)
Comment: The. British Cabinet is expected to decide
short y w e. er to release some of the 65 jet aircraft
ordered by Egypt. Release of the 5,000,000 pounds is still
under discussion.
20. Egyptian military reportedly to propose visit from King
Idris o Li.ya: A member o the Egyptian Army inner circle,
Squadron Lea er Hassan Ibrahim, will go to Libya to invite
25X1C King Idris to visit LF~ I
Comment: Egypt's relations with Libya were not good
under Yrmmeer King Farouk. There are indications that both the
Cairo regime and the Libyan King are now interested in im-
proved relations between the two countries.
reduced: The SbutH African Secretary o External.. airs a.s
o merican Embassy officials that chances of South Africa's
withdrawing from the United Nations had been reduced because
Commonwealth countries had rallied to the Union's support
against. United Nations interference in its racial policies.
(S Pretoria 111, 25 Oct 52)
Comment: This statement by the ranking permanent civil
servant indicates a belief that support from Britain and the
white Commonwealth nations will be sufficient to prevent a
UN investigation of South African racial policies.
Chances of South African
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WESTERN EUROPE
22, Monnet disapproves proposal for Council of Europe observers
in.CSC ssembly: President Monnet of the Coal-Steel Community
High ut or ty as asked his legal staff to prepare a paper for
the CSC Council of Ministers emphasizing the undesirable and il-
legal aspects of the British proposal for Council of Europe
observers in the CSC Assembly. He points out that these observers
would have the privilege of speaking without the responsibility
of voting. (C Paris POLTO 500, 21 Oct 52)
Comment: Members of the Council of Europe9 such as Great
Britain and Sweden, want observers in the CSC Assembly to protect
their interests in the buying and selling of coal and steel.
They apparently fear that CSC decisions could injure their
economies just as Monnet fears that observers could unduly
jeopardize the supranational character of the Community.
Monnet has, however, agreed to "association" at the techni-
cal level between Great Britain and the High Authority in the
form of a joint committee whose first meeting will be held on
16 November,
23e Austrian occupation costs payments set for 1953: The four
Deputy g Commissioners have agreed that the Austrian Government
shall pay each of the occupation powers 151,000,000 schillings
during 1953, The American Embassy in Vienna believes that the
agreement, which extends the 1952 decision, will probably be
accepted without further discussion by the High Commissioners at
the next meeting of the Allied Council. (R Vienna 1148, 25 Oct
52)
Comment: While the early agreement on the 151,000,000
schiling figure appears to have minimized Soviet opportunities
for posing as the "least demanding" of the occupying powers,
the absence of any reduction in the occupation burden is likely
to provoke a sharp Austrian reaction. American officials have
previously warned that this has become "an emotional issue,"
and current economic problems and the forthcoming election make
likely a sharper than usual Austrian protest.
24.
Austrian cabinet crisis tied to control over public invest -
ments: . merican officials-In Vienna consider that
the
"unda-
mental difference" between the coalition parties in
the
current
Austrian cabinet crisis is the Socialist demand for
the
abandon-
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ment of previous budget provisions authorizing the Minister of
Finance to cut back public investments when insufficient resources
are available. Since some of these investments will "theoreti-
cally" be financed from foreign loans which may not be forth-
coming, these provisions give the Finance Minister, a member of
the People's Party, decisive authority over expenditures normally
controlled by the Socialists. Other disagreements over specific
expenditures, federal contributions to social security funds,
provincial allocations to the federal budget, and increases in
the housing construction tax are believed to be subsidiary.
American observers in Vienna believe that either a modified
1953 budget draft or the 1953 budget estimate may be provisionally
accepted by a caretaker government; the formulation of the real
1953 budget would then become the main task of the new government.
(S Vienna TOMUS 255, 24 Oct 52)
Comment: Negotiations between coalition leaders are
continuing in the period of grace provided by President Koerner's
refusal to accept the cabinet's resignation and his convenient
absence from Vienna, While reasonable restraint appears to
characterize public comment, both parties are claiming American
sympathy for their respective budgetary views.
25. Italy's proposed defense expenditures seen insufficient for
armed forces goals: Basing their recommendation on an analysis'_
of Italy's proposed military expenditures for 1953 and 1954, MSA
officials in Rome have suggested that Italian army and air force
goals for those years be reduced. The present goals appear too
high in relation to planned expenditures, which will not meet
combined NATO and national needs even with continued MDAP as-
sistance. The MSA Mission adds that there is no hope of securing
additional defense appropriations prior to the next year's
national elections o
The MSA Mission concludes that, despite adverse political
and possibly inflationary and psychological factors, Italy's
economy can support the military goals recommended by NATO.
(S Rome 1803, 21 Oct 52)
Comment: Italy's rearmament progress in 1953-1954 will
probably 5e better than indicated by the MSA analysis since
Finance Minister Pella has promised additional military appro-
priations subsequent to the national elections, which the mili-
tary establishment will be allowed to draw on even before their
actual passage by parliament. However, some military observers
now believe that a reduction in military goals might enable Italy
to achieve a more efficient military establishment,
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26, Italian concern over American policy toward Yugoslavia
conveyed to SHAPE: enera Marras, the Italian Chief of Staff
1or Defense, emphasized to General Ridgway in a recent visit to
SHAPE that his government was "most disturbed" over United States
policy toward Yugoslavia. Italy felt very strongly that American
military aid to Tito is entirely out of proportion.and that
American actions are making the Yugoslavs progressively more
obdurate on the Trieste issue. (S Paris 2535, 24 Oct 52)..
Comment: Italy can be expected to continue to bring these
views to the attention of the United States in an effort to
obtain Western pressure on Yugoslavia and thereby improve its
own position on the Trieste issue.
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28 October 1952
US OFFICIALS ONLY
CIA No. 49872
Copy No.
37
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.
Approved For Release 2002/9I20 WAP79T01146A001300260001-0.
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SECURITY INFORMATION
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,
WESTERN EUROPE
1. Paris Embassy comments on problems hindering French rati-
fication o ED U: he American Embassy in Paris finds "exagger-U
.,I,-ed." Px?emex?Pinay's statement that the National Assembly's
objections to the EDC treaty could easily be overcome if the
proposed American aid to,France for 1953 were increased from
$525,000,000 to $650,000,000. The Embassy considers that the
problem of British association with the EDC, the Saar issue, and
the question of the EDC treaty's constitutionality, as well as
general fear of German rearmament and of Germany's withdrawal
from the EDC,will all remain important factors until the EDC
debate ends.
The Embassy agrees with Pinay that the strongest argument
of the EDC's opponents is that France could not match the German
defense contribution because of the drain of Indochina. It adds
that the problem of providing an adequate defense contribution
in Europe ;chile continuing the war in Indochina would be one of
Pinay's principal problems, and consequently an important French
American problem, even if there were no question of EDC ratifi-
cation this year. (S S/S Paris 2556, 24 Oct 52)
Comments Ultimate French ratification of the EDC treaty
hinges an whether Pinay's diplomatic gains in the next few
months reassure the National Assembly on France's ability,
with American support, to hold its own against Germany in the
emerging Community of Six.
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