CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100020001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 12, 2016
• Document Release Date: March 25, 2002
• Sequence Number: 1
• Publication Date: June 26, 1952
• Content Type: REPORT

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SECRET
SECURITY INFORMATION
US OFFICIALS ONLY
26 June 1952
OCI No. 6428
Copy No.
276
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. review 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 15, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
SOVIET UNION
1. Pravda condemns shoddy Soviet production methods: A
Moscow broadcast o une ec oe a rav a e or a which
criticized certain industrial plants 1or elivering shoddy
goods and for tolerating sizable losses from rejects. Various
machine-building enterprises which failed to fulfill their
tasks, as well as the ready-made garment and the footwear in-
dustries were singled out for special criticism.
In conclusion, Pravda stated'that such flaws in labor
cannot be tolerated, an that party organizations are charged
with maintaining strict discipline in all enterprises. (R
FBIS Moscow, 21 June 52)
EASTERN EUROPE
2. Albanian People?s Council elections to be held in Septem-
eeree for ~__ ~ ao~vuawsy iomuuu .
_JF
providing general elections to district, city,
'town and village People?s Councils to be held in September 1952.
(R FBIS Tirana, 19 June 52)
Comment. The last such elections, in May 1949, legalized
the provis onal appointments made to replace the followers of
foci Xoxe who was purged for Titoism in 1948. Lately the
administrative committees of the People?s Councils have been
censured for failure to establish the prescribed contact with
the local population, neglect of party duties and outright
fraud. The anticipated elections, although routine in nature,
will provide a means of eradicating unreliable personnel
from the local level of government,
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3. Czech Minister of Information directly attacks religion
and churchgoers o At the first congress. of the newly formed
Society for the Dissemination of Political and Scientific
Knowledge in Bratislava on 21 June, Minister of Information
Vaclav Kopecky for the first time attacked religion and
churchgoers as distinct from the priests. and members of the
Catholic hierarchy.
He differentiated between those who "have no religious
feeling but only simulate fervor and are generally people
adversely affected by revolutionary intervention" and those
who are religious because of superstition, fear, feeling of
impotence or illness. The first group, consisting of "state
enemies conspiring under the cloak of religion" would be severe-
ly dealt with'. without regard to the "so-called" sanctity of
the Church. According to Kopecky, the society would adopt
as its most important mission the winning over of the second
group to Marxist materialism by means of adult education.
(C Prague 869, 24 June 52)
Comment: A major public trial culminated last week in
Brno F-Me sentencing of ten "agents of the Vatican," in-
cluding priests and nuns, who were accused of "attempting
to establish a clerical-fascist regime in Czechoslovakia."
The creation of the society is the most open attempt
yet made by the Czechoslovak Government to supersede the
religion of the people with Communist materialism, and marks
a sharp break with its former attempt to use the Church,
staffed with "peace priests" for its own purposes.
4. Hungarian delegation granted visas for Trieste trade
:fair: The US Legation in Trieste repor s that grante
;visas to five Hungarians to attend the Trieste.trade fair.
Simultaneously, US and British representatives jointly warned
the Hungarian Foreign Office against "incorrect activities."
(S Budapest 962, 24 June 52)
Comment: The private organization planning the Trieste
trade - air,-which is to be held during the first-two weeks
of July, reportedly invited Hungarian participation in the
fair without the concurrence, of the Allied Military Govern-
ment. Fear that the Hungarians would use the occasion
mainly for propaganda purposes motivated the warning that
the delegation should confine its activities to commerical
matters.
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The US Political Adviser in Trieste asserted that the
real motive of the Hungarian shipping firm planning to ex-
hibit at the fair was the establishment of a storage depot
for Orbit-made goods in Trieste. A local firm.allegedly
would be entrusted with the management of the depot and with
the monopoly of Hungarian transit trade through Trieste.
Hungary's growing interest in securing access to
Mediterranean area trade has been shown by its participation
in recent trade fairs in Algiers, Beirut, and Naples.
5. Rumanian officers reported reinstated:
25X1 C
the American Legation in Bucharest that many
e grade reserve officers have been reissued their per-
sonal data and identity cards or carnet militaire, which
means that they are again in good standing. (C Bucharest
Weeka 25, 20 June 52)
Comment: It is possible that these officers have
just eeenn-cleared for politics reliability, perhaps follow-
ing a purge in mid-April when, 25X1
several hundred Rumanian officers identified with the old
regime were arrested. This Rumanian move may resemble that
recently noted in Bulgaria where many officers have been
reinstated, apparently out of military necessity rather
than for their political reliability.
6. Yugoslavia's Minister of Agriculture explains indirect
approach to collectivization: Minister of Agriculture
0 orov c has explained t e recent abolition of forced
grain deliveries as part of the regime's new economic policy.
The removal of grain quotas is viewed as a stimulant to
increased production which will presumably depress grain
prices. Todorovic contends that lower prices coupled with a
stringent incentive tax structure on private peasants will
force small, independent peasants into collectives. (S
'Belgrade Weeka 25, 20 June 52)
Comment.- Todorovic's explanation is probably an at-
tempto re Tate this liberalization of the regime's policy
towards the independent peasant to the long-term goal of
rural socialization. The employment of indirect pressures,
such as discriminatory taxation, is certainly the only
feasible approach to rural socialization in Yugoslavia be-
cause of foreign policy and economic considerations.
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7. Ambassador Murphy supports Japanese request for COCOM
membership: Tfie Japanese request or COCON mem ers p s sold
155-suppo Ambassador Murphy's opinion, since the govern-
ment cannot be expected to maintain more severe economic
controls on trade with Communist China than its principal
European competitors. In the Ambassador's opinion, any
American attempt to encourage more severe controls would
strengthen the government's opposition, jeopardize the Japanese
control program, increase antagonism toward the United States
and play into Communist hands.
Murphy adds that membership in the existing organization
is essential if the government is to curb business opposition
to controls. A Far Eastern counterpart of COCOM would be con-
sidered an effort by foreign powers, especially the United
States, to impose special restraints on Japanese-Chinese trade.
Murphy believes that Japan's Government is aware of the
British and French attitude favoring Japanese participation in
COCOM. (S Tokyo 657, 24 June 52)
8. Airfield reported in south Tibet: A new airstrip has
been reported in T et located soulfi of Pomo Tso Lake, which
is 100 miles south of Lhasa. The runway is estimated to be
6,000 feet long. The only buildings observed were tents; no
aircraft were seen. However, a jet fighter with swept-back
wings was observed in this area b two sources. The report
dated 6 May is from New Delhi. 25X1
Comment: This appears to be an extremely hazardous loca-
tion own airfield. According to the World Aeronautical
Chart, this lake is over 15,000 feet above sea level. It is
a few miles north of a high range of mountains and is at
least 30 miles from any important caravan routes The Commu-
nists would find more favorable airfield sites in the immedi-
ate vicinity of Lhasa.
9. Vietnamese Premier critical of Bao Dai: Premier Tam
axe June to Acting High Commissioner
Gautier charging that Bao Dai was deliberately delaying the
investiture of the Tam government to embarrass Letourneau while
be was in Washington. Tam also stated that'a purpose in creat-
ing an appointed assembly was to limit Bao Dai's power and thus
'enhance French influence.
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Tam said that it was his mission not only to fight the
Viet Minh but to safeguard French interests in Vietnam. (S/
Control US Officials Only,
June 52)
25X1A
Comment. I 25X1
Liao Day. ap opop inted Tam as premier in order to discredit rent
policy and bring about Tam's political eclipse. Bao Dai
reportedly thus intends to pave the way for a government of
Vietnamese nationalists.
Tames pro-French inclinations are well established.
10. Presence of Chinese combat troops in Indochina denied
0 nera a snares
and General Salan insi.s that they have no information that
any Chinese combat fo?ce is fsghting in Indochina. De Linares
been captured, and that no Chinese activity indicating an imme-
diate plan to cross the border has been observed. The French
estimate, however, that there are 6,000 Chinese advisers with
the Viet Minh army. ((C P 25X1A
Comment: Most sources agree that Chinese troops have
not par c gated in combat with the Viet Minh. The presence
of some Chinese advisers in Indochina is accepted, but esti-
mates vary considerably; 109000 is the generally stated
figure.
11. Viet Minh exhorts Cambodians to violence g The US Lega-
tion in a gon as nom; s~nerse ur .ng a past several
days in Viet Minh radio appeals to Cambodia to fight "French
colonialists and their puppets," a propaganda move obviously
intended to capitalize on the current political tension in
that country. (R Saigon 2,590, 23 June 52)
12. Thai, Premier reported negotiating with opponents of
dominai Y ~~u _ ` ee? - un ong ram as
__t e_g :Uv h 'ge of Police Director General Phao's
absence abroad to negotiate with leading opponents of the
ruling military clique in order to frustrate an anticipated
attempt by Phao to depose him. ((S/Control US Officials Only,
r
25X1A
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Comment:
;Phao si plannin e m na a un, and the American massy
in Bangkok has been informed that Phao cut short his trip
abroad because of rising tension in Bangkok. While the poli-
tical situation in Bangkok is obviously tense, there is no
genuine evidence'that Phibunes position has been seriously
weakened.
13. Huk offensive in Luzon forecasts Elements of the Huk
army are planning to aunc an o ensive throughout Luzon on
4 July, Philippine Independence Da has 25X1C
stated. Philippine Army
leaders allegedly are taking apparently routine precautions
against outbreaks of violence on this date. S Control US
Officials Only, )
25X1A
Comment: A deterioration in Huk military capabilities
during the-past few months has been indicated in many reports;
the Huks are believed able at present to initiate only light,
sporadic raids.
The absence of confirming information on the plan reported
above casts additional doubt on a general offensive. More-
over, there has not been an important outbreak on any holiday
or anniversary since late 1950.
14. Italy may follow Greece in recognizing Farouk as "King of
Egypt and e Man": ccor :ng to the American Embassy in
Athens, Italy an reece have discussed the question of recog-
nizingFarouk as "King of Egypt and the Sudan." Italy indi-
cated in these discussions that, if Greece recognized the
Egyptian King?s title, the Italian Government would follow
a similar course. (C Athens 5453, 24 June 52)
. Comment: Greek recognition of Farouk's Sudan title was
taken on 23 June, following similar action by Pakistan on 15
June. Prior to the Greek move, only Moslem countries had
recognized Farouk's title. Belgium, the Vatican and Japan had
recognized Egyptian officials accredited to them in the name
of the King of Egypt and the Sudan, but their own representa-
tives in Cairo did not receive new credentials.
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While Britain's policy remains unchanged, the addition of
Greece; and probably Italy, two membeis of NATO, to the list of
countries recognizing Farouk's title will encourage Egypt to
maintain its present attitude. Furthermore, these moves will
make it more difficult for Britain to discourage subsequent
nations from recognizing the Egyptian King's title.
15. Government's leniency favors Greek Communists: The Ameri-
can Ambassador in Greece warns that the oca ommunists have
been encouraged by the government's failure to prosecute the
Communist-front EDA party, inadequate screening of prisoners
released from exile, the continuing toleration of pro-Communist
newspapers, and the removal of an anti-Communist police
director. (S Athens 5450, 24 June_52)
Comment: While the Communists do not at present threaten
Greek secur ty, the weakness of the government and the increas-
ing prominence of the pro-Communist Minister of Commerce have
materially assisted their cause.
16.
Israeli police continue to violate neutrality of UN
office in Jerusalem: Israeli police continue to occupy
the
Mixed
rm since Commission (MAC) office in Jerusalem,
dis-
regarding
a request by General Riley, Chief of.Staff of
the
UN Truce
Supervision Organization, that they evacuate.
(S
Jerusalem
155, 24 June 52)
Comenent: The Israeli occupation of the UN office occurred
on 20 June following an announcement by UN representatives that
they would open a disputed barrel which has been held in the
MAC office since 5 June. To prevent UN inspection the Israelis
placed an armed guard in the UN office.
17. French Government views Tunisian program as long-term
project: French Foreign Of spokesman, In outlining to
The m-erican Embassy further deta.fls of the proposed adminis-
trative changes in Tunisia, emphasized the government's belief
that this first phase of the'reorganization will take five
years.
Because of the temper of the Assembly, Pinay did not
specify this time limit in presenting the program or publicize
the fact that the Tunisians will have a majority of one in
the cabinet. (C Paris 8064, 24 June 52)
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Comment: The gains made by the Tunisians under this
program -- complete responsibility for the ministries which
they head, together with an entrance by means of deputy dir-
ectors into ministries reserved for the French and the aboli-
tion of cabinet rank for the French Secretary General -- are
still over-balanced by the establishment of.an Appeals Com-
mission, on which the French have a majority, to decide con-
troversial measures. The two Tunisian assemblies are without
legislative power and will serve merely as public forums.
Since the Assembly discussion in Paris, there has been
an upsurge of scattered acts of violence in Tunisia, where
the conservative press predicts that the maintenance of public
order may become a major problem when the new program is
effected.
18. France and Spain believed to have reached agreement on
Tangier reforms: The American Diplomatic gen n anger
beeves -a ranee and Spain have reached agreement regard-
ing the changes they want made in the` administration of the
International Zone. Maintenance. of public order would be the
responsibility of a Spanish commandant of the gendarmerie, who
would be assisted by a French officer. The commandant of
police would continue to be a neutral, but subordinate to the
commandant of the gendarmerie in matters of public order,
France and Spain both strongly advocate the reinstitution
of the "mixed information bureau.".
British and American concurrence in French-Spanish pro-
posals will be sought in the near future, according to the
Spanish Consul General. (C Tangier 428, 24 June 52)
Comment: If these changes are accepted by the Committee
of Con rhol, Spain will have regained the paramount position
in Tangier for which it has been agitating continuously since
1945.
Until abolished by the 1945 control statute, the "mixed
information bureau," in reality an intelligence office, was
headed by..a Spaniard with a French assistant and operated
independently of the Zone Administrator and the Committee
of Control. Itwasconcerned primarily with the security of
French and Spanish Morocco.
According to a French official in Tangier, the French For-
eign Office regards reform of the Tangier security system as
urgently necessary in order to prevent the use of Tangier as a
center for North African nationalist activities.
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19. Communists warn of more "invasions" across interzonal border
in Germany: East German spokesmen have warns at the People's
ce re nforced by Soviet military personnel will occupy all the
small areas along the interzonal border which were originally
part of the Soviet zone but which have been treated as part of the
Allied zones since the end of the war, The areas involved came
under Allied control in 1945 as a result of the many minor adjust-
ments made in the original border by local Soviet and Allied troop
commanders for convenience' sake.
The Communist warning came during East-West negotiations for
the return of the 40 West Germans who were kidnapped on 22 June 25X1
from one of the disputed areas by Soviet soldiers and East German
People's Police. (C Bonn 3490, 24 June 52)
Comment: There have been at least four "invasions" across
the boor within the past few days.
20. East Germans renew potato-bug charges: The East German
press charged on 20 une that an American plane recently dropped
potato bugs inside East Germany near the border. The only other
recent reference to this "weird propaganda claim," apparently now
being renewed after two years, quoted a "confession" of an
American flier in Korea who said he dropped potato bugs in East
Germany before spreading bacteria in the Far East.
Potato bugs have caused considerable damage in East Germany
this year, and there have been rumors that the export of seed
potatoes to Poland had endangered the coming.crop.
Resistance to the propaganda is suggested by a report that
during a recent cold spell East German farmers remarked that the
"Americans are dropping their damned frost-bombs again." (R
Berlin Unnumbered, 20 June 52)
21. East German security measures extended to Baltic ports:
An ordinance of t e East rman n stry o tats ecur ty
extends recent border security measures to the Baltic coast ports.
Three-mile security zones are established both on the coast and
offshore. All local sea. traffic is to be tightly controlled by
police authorities. (S Heidelberg SIB-6392, 20 June 52)
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23.
25X1
25X1A
Italian Communist party reaps large gains from commercial
a0tivMe so
oup of
Zcmmunls -con ro a rms MM AM a
f
n
pro
it of at least 480
000
dollars during 1951. Most of this amount was made by the Nord-
export, Tecnoexport, and Simes firms. The other firms in the
Milan group, Socofin, Coceor, Urea and Intec, will reportedly be25X1A
reorganized because of their poor performance. (S
Comment: This report, which provides some indication of the
financia support given the Italian Communist Party by the firms
it controls, also gives substance to reports of frequent mis-
management in such firms. This source of revenue for the Com-
munists is probably a factor in the eagerness of the Soviet Orbit
to continue and expand East-West trade.
24. Italian Communists to work for abroad "anti-Fascist" coa-
lition: e a an ommunist arty si entiral omm ttee
y ,meeting
on and 22 June to review part
recent elections, emphasized the need for a broad Communist-
dominated electoral front made up of "leftist independents,"
Social Democrats, Republicans, and Liberals. It renewed the
current propaganda themes of "anti-Fascism," "defense of the
republican constitution," and "anticlericalism,"
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Palmiro Togliatti called for a "harder struggle" both in
Parliament and in the labor organizations, and he reiterated
support of the Communist "peace" program and of Communist policy
in the Far East and in Germany.
The American Embassy believes that the "parliamentary
struggle" will revolve around Communist opposition to any attempt
by the government to alter the system of proportional represen-
tation in the 1953 national elections. Press speculation that
Pietro Secchia may be displacing Togliatti in the party hierarchy
is dismissed by the Embassy as unfounded. (C Rome 5650, 24 June 52)
25. Danish Government refuses to delay delivery of tanker to
.USSR; The Danish overumen as formally notified e m as-
sa r that the delivery of a tanker to the USSR under the Danish-
Soviet trade agreement of July 1948 cannot be delayed at this
late date. Foreign Minister Kraft told the Ambassador that with
the Soviet officers on board the vessel for several weeks and a
trial run scheduled for 25 June, any.such move would have grave
political and economic repercussions on Danish-Soviet relations.
He added, however, that Denmark would delay the delivery of a
second tanker if the United States made such a request promptly.
The American representative at COCOM has commented to
Washington that it is difficult to believe that the Danes were
really trying to cooperate with the United States since they
knew of the United States concern over tankers and could have
canceled the trial run scheduled for 25 June. (S Paris 8047,
24. June 52; S Copenhagen 1006 and 1005, 23 June 52)
LATIN AMERICA
26. Cuban police order roundup of major Communist leaders: The
Nationa-1-Po ce have or eyed roundup of ba s majorommmunist
leaders following a riot in Havana against General Batista's
government. (R FBIS Havana, 6 June 52)
Comment: The continuing arrests of Communists since the
10 March coup attest; to the repressive vigilance which the
Batista government is maintaining over Communist activities. Of
late,.Cuban Communists have been stepping up their harassing
tactics against the various opposition groups such as the Orthodox.
and Authentic Parties, students, and laborers.
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Batista reportedly does not intend to outlaw the Communist
Party, since he wishes to avoid any criticism of being dictatorial
or arbitrary. He has stated, however, that if the Communists
failed to rise to Cuba's defense in a war with Russia, he would
take immediate drastic action. No Communists are known to have
taken part in the organization or direction of Batista's new
regime, and no known Communist now holds a position in his
administration.
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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 C
1. French again reported attempting to contact the Viet Minh:
two French agents were recently denied an audience by Viet
Minh leaders. They were told that the Chinese would also re-
fuse to see them.
Allegedly, a second attempt to contact the Viet Minh has
been cancelled by Premier Pinay, pending conversations be-
tween Secretary Acheson and Foreign Ministers Eden and Schuman.
25X1A
L_qj
Comment, During his recent visit in Washington, Minister
for Associated States Letourneau categorically denied that
France would consider peace negotiations with the Viet Minh.
However, persistent reports from France and Indochina point
to French attempts to talk with the Communists.
French approaches could be intended to explore Viet Minh
attitudes, extract intelligence, undermine and confuse enemy
leadership or arrange for the exchange of prisoners.
2. US Ambassador recommends lifting of restrictions on
Swedish imports of aviation gas: The Ambassador at tock-
o m reports that the genera alert in connection with the
recent Soviet attacks on Swedish planes has drastically in-
creased the consumption of aviation gasoline, and recommends
that the American limitation on Swedish imports of such fuel
be eliminated..
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The Ambassador has also pointed out that with its present
small gasoline stockpile the Swedish Air Force would be quick-
ly grounded if the Skagerrak were blockaded by hostile action.
(S Stockholm 1487, 20 June 52v TS Stockholm 1478, 18 June 52)
Comment.- Although the Swedish Air Force is considered
the most a ective air wing in Western Europe, it is completely
dependent upon imported fuel. Present US policy limits sup-
plies of aviation gas to a "friendly neutral" to enough to
maintain a stockpile sufficient for 90 days of peacetime fly-
ing -- equivalent to 40 days of combat flying. The Swedes
'want to maintain a stockpile sufficient for 120 days of com-
bat flying
Foreign `Office.- Foreign Secretary en has categorically
denied to Ambassador Gifford that he intends to leave the Brit-
ish Foreign Office in the near future.
Commenting on the recent press speculation that Eden would
relinquish his present post to supervise the government's dom-
estic legislative program, the Embassy in London believes that
he may devote more time to home affairs while still retaining
the Foreign Secretaryship. The Embassy is doubtful, however,
that such a development would appreciably help the Conserva-
tive government overcome its weakness on domestic political
questions. (C S/S, London 5900, 24 June- R London 5873,
223 June 52)
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