CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001000230001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: June 15, 2004
• Sequence Number: 1
• Publication Date: June 13, 1952
• Content Type: REPORT

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13 June 1952
OCI No. 6419
Copy No.
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
267
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, DOS, OSD Declassification/Release Instructions on File
USAF review(s) completed.
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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. 193 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
EASTERN EUROPE,
1. Prague test of air raid sirens is first in Satellites:
The American Embas9y n Prague reports that air raid sirens
were tested in the northeast section of the Czech capital
on the evening of 20 May and during the following morning.
A searchlight exercise combining two searchlights and a
light target plane was conducted over the city on the
evening of 21 May.
Comment: This is the first confirmed test of air raid
sirens in Satellites and may indicate an advanced stage
of civil defense preparedness in Prague. The American
Embassy recently reported that the number of antiaircraft gun
positions in Prague had risen to eleven, each containing
three 88-mm guns. Radar installations and underground air
raid shelters are also known to be under construction in
the city. The reorganization of the Czech National Fire
Prevention Service under. military control and its training
in antiaircraft defense is another indication of the step-
up in civil defense.
An acceleration of air defense preparations has also
been noted in other Satellite capitals, especially Warsaw
and Budapest.
2. Czech Premier calls for measures to reduce
labor
fluctuations in industry: In a charac.er s ca I blunt
speech, Premier Zapotocky on 6 June denounced the labor turn-
over in Czech industry as excessive and called for strong
countermeasures. He indicated that the Ministry of manpower
was preparing citizens' identity cards showing the place of
employment of.all workers.
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Comment: The Czechoslovak Government has recently taken
severe s eps designed to restrict workers' movement-and gain
a maximum control of the labor force. These have included al-
locating university graduates to industrial enterprises for a
period of three years9 pressing vacationing students into
labor brigades, reaffirming the "volunteer" brigade system,
500 white collar
f 77
,
nd forcing the transfer into industry o
workers.
These steps represent an approach to the Soviet labor
laws of 1940-41, which were passed as war emergency measures,but
laced
bein
i
h
g p
s
as
were never rescinded. Coupled with the emp
on increased worker productivity and recruitment of all
possible manpower, reserves, they indicate how hard pressed
the Czech Government is to fulfill the onerous industrial
production program that has been imposed on it by the USSR.
3? Bookkeepers quizzed on Hungarian failure to meet Soviet
economic demands: An editorial n tlie- Hungarian par y organ,
Szabad , on 11 June reveals that the newspaper recently
conferred with bookkeepers of large firms who complained that
most managers failed to take advantage of their reports of
shortcomings in plan fulfillment. The paper recommends better
t to make book-
r
nmen
coordination of party, factory and gove
keeping more efficient.
Comment: Soviet dissatisfaction with Hungarian plan ful-
fillmen as centered thus far on the bauxite industry. The
above editorial suggests that a large-scale investigation to
determine where concealment of statistics has occurred is
underway.
Last week the Ministry of Metallurgy and Machine Industry
instituted criminal proceedings against both the manager and
con-
the chief industry failing to abide bye planned
struction ndu y plant.
schedules
4? Denial of visas to Hungarians for Trieste trade fair
quest one a Lega.t on in u apest repor s t a the
x?e usal visas to Hungarian delegates to the Trieste fair
had provoked questions from the chief of the Allied Permit
office in Budapest and from the British Minister. The
former is afraid of press attacks on his office as well as
denial of exit visas which he is seeking.
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The British Minister questioned the refusal, on the
double grounds that trade with Hungary was necessary to
Trieste and that his own negotiations for the release of
Sanders, VogelerIs British companion, were in a delicate stage.
The US Legation is anxious to discover who invited the
Hungarian Government to participate in the fair.
Comment. The US political adviser in Trieste reported
on iO a that a number of Hungarian firms had applied for
space at the forthcoming Trieste fair and visas to enter
Trieste but had been turned down by the Zone Commander with
the concurrence of the British political adviser.
Hungary?s great interest in penetrating the Mediterra-
nean market is indicated by its participation in fairs at
Milan, Algiers and reportedly Beirut.
5. Typhoid shots added to Hungarian civil defense prep-
arations: The Army Attache in Budapest reports at the
capital's population is receiving a series of typhoid shots,
apparently as part of the general preventive measures taken
for civil defense.
Comment. There has been recent evidence of other med-
ical preparations for civil defense in Hungary and typhoid
shots would be a logical step.
Hungarian civil defense measures have included special
air raid training courses and drill in.Budapest and two
other industrial centers. New shelters reportedly have been
opened at factory gates and some shelters 'from the last war
have been rehabilitated.
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6, Emperor reaffirms Japan's support of UN action in Korea:
In a conversation with General Clark and Ambassador Murphy on
11 June, the Japanese Emperor emphasized the tremendous advan-
tages accruing to Japan from the UN action in Korea, and
assured continued Japanese support for the effort there. He
also expressed satisfaction over the recent tactics adopted
b the American element at the Panmunjom negotiations.
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Comment: The Japanese press has generally supported the
UN pos on against forced repatriation of POW's.
In an exchange of letters between Yoshida and Secretary
Acheson at the San Francisco conference, the Japanese committed
themselves to permit UN forces' entrance into Japan and to
facilitate their support. Public and Diet pressure, however,
have deterred the government from granting funds for this
purpose and from foregoing criminal jurisdiction over the UN
forces.
Japanese Government initiate proceedings under Article 11 of
the peace treaty for the commutation of war criminal sentences.
All the political parties except the Communists are backing
this move. The American Embassy comments that public pressure
and the coming elections will force the government to exert
all possible pressure for the putright release, parole or
commutation of the sentences.
Prime Minister Yoshida orders move to release war
criminals: Prime Minister os a has requested a the
Comment: Article 11 of the peace treaty requires Japan
to execute the sentences imposed by Allied war crimes courts.
Japan may, however, grant clemency, reduce sentences or
parole the prisoners with the permission of the Allied nation
which imposed the sentence.
With the exception of those held by the USSR and Communist
China, the Allied nations convicted approximately 4,100 war
criminals. There are presently 436 US-convicted prisoners
incarcerated in Tokyo.
8. South Korean political turmoil lowers army morale: The
Chief a of the RUIZ t Division as reports at a
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serious morale situation is developing, particularly among
junior officers, as a result of recent Korean Political
events? 25X1
Comment: While similar reports have been received on the
morale o s aff and headquarters officers, this is the first
such report from a combat unit.
high-ranking South
Korean 01,11COX az?e isu a rMouSl cerned, They want the
political problems solved in view of their belief that the
Communists have increased their strength and firepower in pre-
paration for a June offensive.
9. Twin--engined planes seen on Yalu River field: An Ameri-
can pi. o saw 40 to 50 w n-eng ne planes, abou the size of
a B-25 or B-26, on Tatungkou airfield at dawn on 8 June. The
Far East Air Force states that they were probably TU-2 or 25X1
PE-2 conventional light bombers, and this is the first report
of such a large number in the Antung area. FEAF doubts that
this concentration was for an air offensive.
Comment: These light bombers may have been on a training
fligh#-to atungkou. The Communists probably would not perma-
nently base many aircraft unassigned to duty over Korea on the
crowded combat fields near the Yalu River.
10, China seeks Turkish copper: Approximately 2,000 tons of 25X1
copper, valued at over 2,50,0G0 dollars, is'about to leave
Turkey for Communist China,
The copper is to be transported first to Rotterdam, then on
to the Polish port of Gdynia for transshipment to China.
The contract, reportedly signed at the Chinese Embassy
in Sweden, stipulated that the copper must be in Gdynia by
1 July. Swedish and other foreign firms are financing the
shipment. F77 I 25X1
Comment: Chinese arsenals and factories require an
estimaae T5,000 tons of copper a year, part of which must be
imported. Turkey is one of the few copper producing countries
to allow exports of this metal to the Soviet bloc.
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I1< Soviet advisers soft-pedal industrial expansion in China:
Peiping ra o in a lengthy discussion of the Peiping nis ry
of Fuel Industry?s campaign to "overcome the influence of
bourgeois ideology" criticized Chinese technicians, and parti-
cularly the senior engineering personnel, for planning too
ambitious an expansion program for coal mines, oil fields and
power plants. Soviet experts, according to-the article, ad-
vised continuing the exploitation of old coal pits which
conservative cadres wanted to abandon. Russians have shown
how to keep in operation old power plant equipment which Chinese
engineers thought needed replacing. At the Yumen oil field,
Peiping's orders not to open new wells were disobeyed and
four wells were drilled in 1951,
Comment: Soviet advisers have discouraged Chinese
indus r a evelopment plans before, probably because the USSR
does not want to support a program requiring large Chinese
imports of heavy equipment.
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WESTERN EUROPE
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13~ Early completion of canal by-pass promised by East German
press: 1ast German press emp axis on plan +- romp Pte F
Paretz-Niederneuendorf canal may indicate that construction dif-
ficulties have been overcome so that the project can be com-
pleted on schedule by 28 June. For the first time a major news-
paper specifies the purpose of the project to "make the GDR
economy more independent of western despotic actions since the
canal will enable shipping to by-pass West Berlin."
The~ poor state of transportation in East Germany is further
indicated by the decrease, in the past 18 months, in the number
of serviceable locomotives from 450 above requirements to 160
below. Perhaps for this reason, the Russians have been return-
ing some) electric locomotives and other electric railroad equip-
ment to the GDR.
HICOG Berlin officials comment that the present lull in
Soviet harassments of Berlin may arise partly from a desire to
prevent Allied retaliation against East German barges in West
Berlin, as well as to receive from West Germany the delivery of
previous orders now beginning to move under new trade agreements.
Comment: Previous reports have indicated that the opening
of the Ty-pass on 28 June would only be for "fanfare" reasons,
and that several months would be required before the canal would
be fully operable.
I Russian harass-
ing moves, after the by-pass is in operation, might include
renewed closing Pf the Rothensee canal lock on the Mittelland
canal licking Berlin and West Germany.
Gaullist housecleaning improves chances for French ratifi-
_
cation oT
MC treaty: The c .ices or Frenc rats .cation o
the uropean a hiss Community may be improved if General de
Gaulle carries out the expulsion threat implied in his recent
letter chiding RPF dissidents, in the view of American officials
in Paris. Closer association of the prospective expellees with
the Pinay coalition on domestic matters might lead them to sup-
port the government in foreign affairs, thus completing the
break in the Gaullist front, F__ I 25X1
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Comment: De Gaulle's decision to enforce his policy of
non-cooperation with the regime "of the parties" suggests that
he has given up hope of the Pinay government's early fall,
Belgian official seeks continuation of present Belgian mili-
tary conscription per o : The -Belgian Minister of Defense as
personally requested a ivery from the United States of 16 M-47
tanks for Belgium's National Day parade to arouse public support
for a continuation of the 24=month military service period. He
believes that the delivery and display,of'this equipment will
demonstrate that Belgium has received the best and latest Ameri-
can combat vehicles. Although American officials.in Brussels
favor the -,endingof these tanks to Belgium, they believe that
the decision on the term of service will depend on the deci-
sion of the other EDC members.
Co: Because of the pressure of Belgian public opinion,
the government has already stated that in August it would reduce
the 24-month conscription period to 18 months, the length of
service established by the EDC. However, the government may be
able to forestall taking this step, should the Ministers to the
Community indicate an early review of this provision.
Danes obtain Polish coal without exporting tanker: After
months o nterrup a negotiations Denmark as 'i.na y reached
a trade agreement with Poland calling for the shipment of
756,000 tons of coal and 100,000 tons of low-grade coke between
1 August and 1 December. In return Denmark will permit the Poles
to purchase four trawlers, but no tanker is included in the
agreement,
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Comment: The Poles had been insisting on the inclusion
of a anker, but the United States strongly urged Denmark to
reject this demand: The trawlers involved probably include the
semi-obsolete Faroe Island vessels which Poland had been endeav-
oring to purchase direct from the islanders,
18. Danes clamp down on communist-sponsored conferences: The
Danis Government has announced that Denmark w ll not continue
to be host for conferences which its European allies have re-
fused to permit in their countries. The occasion for this state-
ment was a Danish refusal to grant visas to West German and
Eastern European participants in a "conference for a peaceful
solution of the German problem" scheduled for June 13-150
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Comment: Since visas are-not required for citizens of
most 1e-European countries, the conference may still be
held, on a reduced scale. Previously, the Danish Government has
been reluctant to impede the meetings of various Communist-front
organizations such as the WFDYO The Danes frequently procras-
tinate on decisions likely to offend Eastern Europe.
New Ar entine rovinces officially recognized: On 11 June
the Argentine vernment officially recogn zewo new provinces,
President Peron and Eva Peron, formerly the national territories
of El Chaco and La Pampa. The central government declared their
constitutions in effect and ordered them to hold elections in
accordance with the new constitutions.
The constitution of President Peron Province; which has 25X1
reportedly been chosen to test Peron's theory of a syndicalist
state, provides that half of the provincial legislature will be
chosen by the trade unions,
Comment: The President Peron constitution is representative
of the regime"s efforts to increase state controls and to force
further organization of society.
20. Brazilian Communists continue to acquire arms: Brazilian
Communist leaders in t Fie States of Minas Gerais, Goias, and
Espirito Santo during the past six months have been intensifying
thpi.r acquisition of arms and ammunition for the "People's A
of National Liberation."
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Comment. The "People?s Army" is centered in the Minas
Trianglein the interior of Brazil. Communist leaders in that
area have been buying arms and training small groups in their
use for almost two years. The arms and ammunition are usually
brought into the area by truck although rail transportation is
reportedly sometimes used. Financial support for the activity
apparently is provided by individual contributions from indus-
trialists and professional men.as well as by such fund-raising
activities as Communist Party raffles.
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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.
25X1
Comment; If some pro-Italian elements become disil,
lusione ey may shift their support to the independentist
parties. Even the possibility of such a development would
alarm Irredentist leaders, who might attempt to avert it by
staging new anti-US-British demonstrations.
FAR EAST
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to Italian warns of trouble in Trieste: The situation in
Trieste as never een so delicate and might explode at any
moment, the chief of the Italian Mission in Trieste has told
the US Political Adviser. He refused to furnish any details
supporting his statement.
The Political Adviser comments.there have been rumors
that Triestines are becoming "less enthusiastic" about the
recent changes in favor of Italy, mostly because of diffi-
culties with Italian laws and administrative practices.
20 Factors indicating probable Communist offensive in Korea
between 25 June and 10 Ju y reported:
I points to a probable ommunis
offensive between 25 June and 10 Julyo In addition to citing
the enemy's considerable military and air build-ip, the report
gives the following factors as suggesting an offensive: the
beginning of the rainy season would impede UN air activity;
the readiness of the North Korean grain crop would assure an
adequate food supply; the chance of reaping the captured South
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Korean rice crop; and an opportunity to ca.i line on the
current South Korean political dissension.
Comment: The enemy9.hav.ng consider,blyaugmonted his
forces been for 'some months capable of launching a gener-
al offensive. The non-military factors in this report appear
somewhat overemphasized, Due to the great increase in the
modern equipment of the Communist ground and air forces, the
rails would hamper their operations nearly as much as it would
the UN's. The South Korean rice crop will not be harvested
until September or October,
25X1
3, South Korean presidential contenders analyzed by Embassy:
Ambass or--Mu( c o9 In reporting rom Pusan on other press ential
id l candidates than Rhee, commdn:ts that none of the three announced
candidates are.. taken,.seriously, Among the unannounced ones;
former Prime Minister Chang Myon is believed to have lost
stature during the present political turmoil because he has re-
mained safely hidden as a political refugee in an American
hospital,
The present Prime Minister Chang Taek-sang has grown in
stature and is the ouly.one of the major "contenders" to defy Rhee,
if the Assembly were' free to elect their own candidate 9 Chang
would have a better chance than any other candidate9 in
Muccio ? s opinion.,
Yi Ki-pungn the Ambassador characterizes as a dark horse;
while he is a good administrator and quietly active behind the
scenes9 there is no evidence his name is being considered,
Among Rhee?s cabinet supporters Paek Tu-chif is the ablest
man and it is conceivable that Rhee might select him as suc-
cessor, Yi Pom-sok9 the Home Minister, is unpopular and recog-
nized as the chief machinator behind the current turmoil.
Muccio, doubts that Yi could achieve the esidency except by 25X1
coup d?etat,
TOP SECRET
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WESTERN EUROPE
Belgian transit trade control. plan requires COCOM support:
The Belgian elegy a to as confi d ecTnt ally shown the
American delegation In Paris his country's draft plan to con-
trol transit trade, ~hich, he says, rust be adopted by COCOM to
be effective. Belgium still believes that the most effective
method to control diversion is the Inport-Certificate-Delivery
Verifications system, which places a. measure of responsibility
on the country issuing the import certificate against trans-
shipment, The Belgian proposal envisages port controls on
selected raw material and non-ferrous items. such as copper,
tin, lead, molybdenum and cobalt and states that specialized
and technical equipment is not included because these items are
produced primarily by the COCOM participating countries and
are therefore already under control.,
The American delegation. states much of the operation and
some details of the plan are unclear, buts to prevent a delay
25X1
in its presentation to the Consultative Group meeting, they
will not seek clarification now.
Comment.- The Consultative Group of COCOM is tentatively
Scheduled o meet on 17 June.
The United States has been particularly interested in
Belgian and Dutch cooperation on physical controls over transit
trade, The Netherlands, which remains opposed to physical con-
trols without financial controls over transshipments, may soon
present a new proposal.
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