WEEKLY INTELLIGENCE SUMMARY NO. 11

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010011-3
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 11
• Publication Date: March 1, 1978
• Content Type: REPORT

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Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010011-3
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J'~Ci~C~ocument No. ~ ~ '
Gfiicc o1' REports a7.u stimz~tes ,
'"' Transportation Ga~O~pCH1C'NGE in .Class. ^
- _ _ ~ z~/DECLASSIFIED - -
'C~l`ass. CHLNGI:D T0: TS S G
`r~eaicly I~atolligance Summary Tio. 11' 1.C1 Elay 19~a
' ~ ? DDA Memo, 4 Apr 77
' Auth: ,zx'r 771763 -ter'
. StTAFACL Tx~2A1JSP0~4Ta+~I~ ~ ~~_ $Y i 0 ~;
The.receat action of tho Joint Ex~orfir-Import Agency (JR1Aj o' ~izonia'
in signing a contract with + e fietherlands for use of rivvr~';~ar~ss shr~~,ul~+
a3a tr_o coal transport situation in ifes'rern Germany. Under th:~ terms of tho
oontract, JEIA obtains control cf 110,000 tons of riv?r bargos vrh;ich can bo
used' in the coal traffio up tithe A"nine from the Ruhr to RSannheirn? as ~~rell a~ _
in~oth?r Rhino ,traffio. The contract, running unti3. 31 Becembea? 1?~?, is
favorable to -both JEIA and the lketherlahds. JEIA w~.ll pay fo:? rorl ce.rriagr~
at the rata of 5055 cents a ton. oomputed iai guilders. JEIA ;.a not bound
under tl*_e contrast to rent eny of 'di? cr4f t, -hut Hill use tt~ em at its dis-?
oration, Fhrth?rmore, JE:iA rri3.1 pay no rental For bargos laid zzp for repair
aniiwilA. pay only half of the rental Poo when barges Ere not used bemuse oY
love water or lack of freight. 'For i.ts p~.rt, the Ft3Nharlands .6i11 gain 'ho
immediate return of bsrges due under restitution procaedi.nga, .,:il?. reaei.ve
a. fair pries for `choir u s and is raesolahly assured of employment for tiie
vessels over a long pe ~ oY+.z.~c;, t ~, ., 1" :. cl:;yti:snt botvreen,
charters, crhich might : z eot t+7 inciividuel;
~~ ~~i I L~~~~11~.
Rapid Growth of tho 3talisn tierchan~: P~arin?,
The Italian merchant marina, Psuong th.o hardost hit by war losses, has
mado a remarkable comebaozx, 3?rm~rar Italy ranked six'ch among tra' merchant
marine nations of th? erorld with an oeean~going float of 3,:`',00,000 gross
tons, - .fit the end of the csap, hav~sver, th? float haCi been reduced to 300,000
gross tans through sinkings and prim actions, Bsepite, this oats?aczely
severe blar- to Ztali.an.maritime cpera-tions, 'the G.-seraazent tcoi: steps to rs-
constitute the fleet es rspi.dl.y as possible, In additions to initiating a
ship constnaction program under oxtremely unfa'vorabi.a cpndi.ti ors, ptaps users
takes to aoquire vosaels through iiurcho.ses, largely Pram tho US,(E9C,000
gross tong of Liberty ships and to-zkers from the US1, rhile siegotinti,na .
].ending to rsposatission of .formor I-talinn~fl.ag vo~sals seized as wa+? prizes
have bean largely successitzl,
The eactent of reeov6ry i.s shown bt, a repgrt ogpear-ing recently in th?
Anrales Techniques de la BSarino '~;e.rr,'inaxlde to tY,e ei'S.'ect -that the Italian
Pleat now exceeds, i,000,C00 gross tons end is expected-to reach 2,600,000 by
midyear,
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Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010011-3
 Declassified and Approved For Release 2013/04/24: CIA-RDP78-01617A005000010011-3
There is little doubt that present efforts to augment the fleet will '
greatly benefit 3taly. politically as well as economieal3y, fine transfer of
29 vessels to Italy by the US carried considerable weight in the recent '
elections, chile the generally favorable attitude of the IIS taraerd crea~ion
of a postwar Italian merehant fleet has bsen an importeuzt factor in the con
timing-improvement in US-Ttalien relations. Z;conomically, the progfam to
construct vessels in Italian shspyards should contribute much to rebuilding
and stabilizing one of Ytely~s major prewar.industrial eativlties.
CIVIL AVIATION
The Second Assembly of the International Civil dviation Orgar_ization '
(ICAO}, meeting 1 June at Genever probably will`cansider the status of none
sch?duled international commercial?air operations end their relationship to '
other aspects of international air transport. The intensive postwar develop
ment of other-than-scheduled international air services has created serious.
problems of regulation and control on both national and international levels.
The postwar international movement of non scheduled aircraft has been
broadly governed,-among ZCAO member states, by the Convention on International
Ci.ai.l Aviation signed nt Chicago in 1944. Recognizing non-scheduled commer-
cial operations as a legitimate and necessary form of international air,trans-
port. the signatories: to t3ie Convention contemplated th?t such operations be
accorded the utmost froedQm of?movemant in the promotion of the rapid re-
establishment and development of world air oommesce.
It hea become increasini;ly apparent, however, -thaf, this idealistic'via?~
is not compatible vrith postwar conditions. Non~schcduled carriers ors tree
of economic and technical control,' They are not required to maintain the
high standards of performance, service,, and safety to which the scheduled '
airlines ?ra subject and their more i.nfornal adminiat`~?ativs procedures arable
.them to further reduce operating expenses, The general freedom of these.
oper?tors from regulnti'on,therefore, affords them the opportunity to provldo
serious end possibly unfair competition to the highly regulated scheduled
airlines by offering-directly or indirectly competing services on an irregu- ~.
lar bnais at considerably lower rates.
Some countries, including.the US, UK; Canada, Argentina. and Australia,.
hnve ettainpted to control the movement of unscheduled ?oreigo aircra.?t naross
their..borders by requiring prior and specific authorization ?or each arch "
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 t? BAtesotr, it is re~sly difficult to on:Poroe oompii+.u~,. taitta
oYlet~aca rspelatiens ao4 ther6 is soticully aso effooti*ro rantrol ovtir tho
sent oP oiTi2 airQS*as1;t in east erase oP the erbrld. The resuittmt free-
flam~ to~kter 9aiffi ~ ao:~le toasioa, has Ooatrihuted to the iaareacuttg
oases oP oivll uirore!'C !dn anriol~ illicit activities. ? The most esigaifioent .
of thaxa epersttons-~ hs~ t'te olendestino moveaont oP Brats tkraugh t~ux~ope
to iE-aloratine. by tiS ~ t~rlEat the active oollabotratiasn of 42te Caeonosiovalc
Go4Grttt (sea TO treahlp 28.Agril}. ~tese iliegsl~ tas@ irsaspaacible aotifli?
tiesa by private Q9.r0t'oSG asmora have assumed as 4nasreta3i?.g3y pars~+rt9.litat~q
t3attta~s ost@ thus dtreatly esPloat the security ol, ell oa+xatxioc ~aerned. It
Ss bikialy? thereibre. l3tst tie ICAO c.8logates will at leeart itsPortnatly oon,-
eider Este paasiiaility oi' enEat~I.iohing more atriagouu& eontrals ovor tho intor-
IIBL$onetl atovemenit of AttdDleY~aid scheduled af.raraft. A4tf otli'ox~eeanout oP aoao
cols once osttkEitsha~ hill, harrstrer. rrauais n oantintaitsg problett, ooliittg
Por thE+ measimttm oooperatt.~ oP alt gcwrmaents.
fihe VH decision to gurohaso five Ccnatellation air trcneporte Prop Irist-
Airlines (Aerliate Ddsroaanj reSleots a acntimting dpsira oa the ptzrE cP .
British air transpor4i operato:ao to ooquire tandara tt$ aircraft for iritoraaati..
uentasl operations (gee CIA T{ee6tly Sumatary 26 iSprah). ft~gite the ofPiof.sl
pol4oy oP "Ply British". This pusoliaae of .CoustelA,a~ioAS ie oorissid?red sn
~ooptiag to the rulo~ pressmat$q SustlPivd by the loom that they hill be
bought Mam as etirllsas 6O peroettt British-otttaed and psifl Por with atorliag
raffier titan t7ittYe lFol2are. .
9~eao Pius addildanal oirmralt Txill gi.vo the UR a fleab of toe Oonetel+
latione. Ao s raaul'y;1G2krre r9ill De a tetxdoitoy tahetia standerdiarmtioa.
St'itisle operates e. ~oa(?t tt-e Liinistry~ of Oivii Aviatifsn, will- ooritiuue. to
press Por a modification of aPfiainl policy ~o peatoit ? tasking adpaatoge of tho
tisutttall3/ g6a0!'ags olf?r OP the UB Bsport-1'mport Bank. `. (Thin aSfer,, tilfzioh
atilt rECnains opast, t~tld perm9.t the 11K 4Rr pay Por SB seer Costatsliatione out
of a>arnirige over n eevssz?~ycar period.) The t11$, tfhilt+ imat litroly to abandon
Its Amdametttel policy of support for the British air ttrentsport industries,
will probably deoide~ iR the sear tlx'huxe, to accept the VE offer of long-Tango
air transports as an interim msa,sure.
Declassified and Approved For Release 2013/04/24 :CIA-RDP78-01617A005000010011-3