CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE DAILY DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A000300180001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 23, 2016
• Document Release Date: July 17, 2012
• Sequence Number: 1
• Publication Date: July 17, 1951
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
DAILY DIGEST
JUL 1 7 1951
Date:
NOTE: l This sunnary 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.
2, Comments represent the preliminary views of
the Office of Current Intelligence.
3. Marginal letter indications are defined as
follows:
AW ? items indicating Soviet?Connunist
intentions or capabilities
0130 important. regional developments
not necessarily related to Soviet/
Communist intentions or capabilities
9011
? other information indicating trends
and potential developnents
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SECTION 1 (SOVIET)
PBS!
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....t___12.410.a.11.L.neakoNwSoviet-PezeE.eheTem-eesieMIL-410-9.Vegite..e.e, with
no advance publidity,e6;new.Englisbelanguage magazine, NEWS, .appeared on -
14 July in MoscoW. Described as a "fortnightly searchlight on-world events",
Issue NO. 1 has a "slick" blue-green cover, contains 32 pages, is edited
by M. Morozov and published by the newspaper TRUD. NEWS is perporteay
designed to ptomote peace and cOunteract the "vicious met propaganda"
disseminated in the West. Its announced purpose is to give a sober, balanced
picture of international deeelopments with particular attention devoted to
Anglo-Saxon affairs. Principal contributions are expected to cone from
foreign visitors to Moscow and Soviet officials.abread. Also insluded are
highly slanted:commentaries on historical and current themes by well known
Soviet artists, scientiOte, and\intellectaaIso 25X1
ggsgau Through NEWS, the Soviet GovernmentImay hope to reach the broad
"peace .movement" clientele that includes many individuals not primarily
attracted by cumbersome. Marxist descriptions of the class struggl
L.MOsaweContin22212_annlinEkme Press reports from Latvia state
that text books published between 1946.and 1950 are being boeght up by
Latvian book organizations? Pres ably these books, particularly the 1946 -
history texts which contain favorable content on US and Allied war efforts,
are now obsolte and must be replaced by versions corresponding to the
current line. A further suggestion of such practices is noted in Armenia where en
announcement has been made that 67 new textbookson some 2?000?000 copies are
labw available to teachers and students. 25X1
?1-1212.92.S2glinnag to Strg],efor ialist Realism in Literatum0
gramlaig recent criticiaM of the appearance in an Ukrainian publication
of a nationalist poem "Love Ukraine" has bad the desired results? Sosyura,
the author, has publicly repented for portraying the Ukraine in a nation-
alist noni-Soviet light, writing a poem which contained rn mention of Stalin
and failing to arouse love for the great Soviet motherland? Admitting the
justness of the criticism, Sosyura adds that it is impossible to imagine
a separated Ukraine which, after all, won happiness with the assistance
of the Russian people and other peoples of th4, USSR. Be promised never
again to write poetry in which a single line could be used by "nation,
alists who never loved and do not love our people, who cannot be called
Ukrainians and who have nothing in common with our peeple." This roomtation was joined by a public endorsement from the Ukrainisa Party
Central Committee of Pravdams (Criticism and admission by the Committee
of weak ideological leadership. The subsequent removal of the Deputy
Chairman of the Dkrainilan Committee of Art Affairs was probably the
Central Comeitteels firet step in atonement.
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Another victim of the recurrent campaign for ideal Soviet literature
is the eminent Writer Konetantin Simanov, Who-se new book of Poetry was
,attacked by remsemal Pravda as too self-centered, overly erotic and failing
to reflect Socialist reality and the Pressing problems Of today.
CO This incident is an illustration Of the
Kremlints continual struggle to make the arts conform to the Party -line*
In the past,-SiMonav has been able to Satisfy both the Party and literary
critics by tined/gag out sufficiently imaginative works and yet still -
confine himself to the official fantasy of "social realism". Sosyura? as
a member of a minority race, however, is faced with added dilemma of por?
traAng the theoretical "national equality" as propounded by the Moscow
ideologues instead of the actual discrimination in favor of the Russian
"elder brother" As practiced by the government and Party*
"Co TASTE:NV-EUROPE? POLAND. Strate c Godds Demanded frem Austria in Trade
kaktuatilgt. The Polish GOvernment-ia demanding ball bearings and2500
tons of aluMinuM from Austria in exchange for coal at the bilateral
negotiations now in progress. The type and quantity of ball bearings
desired by Poland are not known* Thus far the Austrian Government has.
refused to include these items in the agreement, althougheibethe Polish
Government has pointed onto Poland was able to obtain ball bearings in
recent negotiations with France. According to the Austrian negotiator,
his conntrygs dependence on Polish coal, which is being offered at three
dollars less per ton thakUS coal, is not as great as the Poles seem to
belieVe. , COMMENTs Poland is vitally interested
in obtaining strategic goods and raw materials from Western Europe in
exchange for its coal with is needed by the various heavy industries of
Western Europe. If sufficient coal can be made available from Germany
and the -US, Austria will be able to reduce, if not ignore, Polandcs
demands.
"A" RUMANIA;, Rumanian Border Evacuation Reveals Internal Seeurit A
leeiejeleee. The US legation in Bucharest reports that the mass evacuation
from the RumanienelUgoslav border which began about 15 June apparently
ceated? at least temporarily, during the second week in July. Western
-observers in Bucharest now believe that the number evacuated did not
exceed 20 to 30,000. The Yugoslav Charge estimates that 7,000 of the
Yugoalav iiiority?weke inclnded in the total 2
COMMENTt Cessation of the bodek area evacuation strengthens
e conclusion that this move does not !indicate preparation for immed?
iate hostilities. The apparently selective evacuation of Yugoslavs,
other minority groups and hostile peasants strongly suggest that
internal security considerations were a primary factor in the Rumanian
action.
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SECTION' 2 (EASTERN)
IRAN, Prime M 'star Declares Martial Law in Tehrane Martial law was
an on y o 001 rioting of 15 July.
The riot started mhen members of the National Feontee RoToilers Party-
clashed mith Conmunist Front demonstrators in Parliament Squeee. Some
14 civilians are estimated to have beeft killed and 150 rioters have been
arrested. Offices of the 01Peace Partisans and mOrganization for the
Struggle against the Oil Companiesoos both Communist Front groups, have
been closed and their newspapers suppreseed. The security forces are
reportedly hunting for those leaders of the mOrganization for the Serueele
eaainet the Oil nomnpnian who have not already been arrested.
I CIWILENTt Mossadeq has teen a staunch advocate
of freedom of speech and ass nage, and his action in declaring martial
law in Tehran is indicative of the eovernmentseinnreasine over
Conmunist activity-in Iran, While
the National Front clash with the Communist groUps else suggests that bhe
Nationalists intend to take a more vigeuros stand against the Communistss,
such disorders play into the Communiets hands since they cann t help but
further unrest and internal instability in Iran.
ISRAEL MIA. US Official Discusses a Possible Course of Settlement for
muss' cmmentiiii on Possible
r r tee s r nnon n
u ure action on the Israeli-Syrian border disputes feels that it will be
necessary-to take accoent of Syriats sense of outrage over Isreelvs non-
compliance with the Security Council I? resolution and General Rileyls
decision to resume work on the Rulehedrainage project. He suggents,that
talks between Isreelp. Syria, and Jordan over the use of the Jordan aver
might be given to the creation of international machinery to supervise
the use of the river until final peace is achieved. The Minister is not
worried by the possibility that such talks mould be ueeless and at times
acrimonious. He feels that one of the worst aspects of the present sit-
utation is that both aides are uninformed on the real situation and state
of nu nd in each other os country. He Out1ines the following course of
action that might be adopted by the US: (1) communicate to Syria and
Israel and publicly announce the concern of the US over Israel ls non-
compliance with the SC resolution in regard to the return of displaced
Arabs from the Huleh region and the 'withdrawal of Israeli par -military
forces; (2) in conjunction with the other sponsors of the Security Coun-
cil resolution inform Syrian Jordan,. and Israel of the current thinking
on the desirability of their settling territorial and water rights quese
tion and the necessity for the prompt completion of the drainage project;
and (3) announce at the same time US support of action to prevent the
resumption of work on the Arab-owned part of the drainage project until
the Security Council resolution in all other respects has been complied
with and the Arabs have been ?ermitt make a free decision about
their lands.
SYRIA. Fall of GoVernment Ain Relmored, Political observers in Syria
expect thA Parilementary cr lam of the government (5 budget and its
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failure to present any rearm legislation will soon cause the fall of the
Azm Government. The US Legation in Damascus reports that friends of the
Chief of Staff Colonel Shishakli have joined in criticizing the Govern-
ment, indicating that the Army has acquiesced in a cabinet change. Al-
though there is general agreement on the early-fall of the Governments
no one seems certain of the probability or Vdes?rabilityof new elections
in case thePoistsofotesefail to form a new
Cabinet. CalMENTa. There have 25X1
been recurrent rumors of the fall of the Azm Cabinet. ossince it
came into office in March. 25X1
To date a certain amount of domestic political unity a result of the
Syrian-Israeli border dispute, has saved the Government. If the Govern-
ment has lost the support of the Argon the single most powerful factdiD
in Syrian polities, its fall is assured. If new elections are not helds
in the event of the inabili of any of the opp sition parties to form
a government, political stagnation with Army-control of domestic affairs
seems inevitable.
xlmoi. Jewish Bid ation drer el Affectin Ira i . Non-Jewish
176-Ohnicians mi e Iraq Army are eaving o ake more lucrative po-
sitions in the Iraqi State Railroads and other government departments
which have been hit hard by the departure of d nationalized Jewish em-
ployees. The Armyos law pay scale makes it unable to compete with the
civilian economy-for the services of the relatively small number of
technically erained Christians and Moeleme
CENTS According to a recent count5 1065662 Jews have
emigrated from?Si.-q?fo Israel. Aside from its effects on the Army, this
exodus will severly ',Neaten the entire economic system of Iraq at the
beginning of a development period when the expanding economy will require
markets, labors capital and particularly technical and professional abil-
ity. The Iraqi import trade will be especially hard hit by the absence
of Jewish capital which customarily-finances it.
"C" LEBANON. EXePrime Minister d el-Solh Assasenated. Former Prime
Minister Ria eL was as ssiSaire-ct Amens or. ,on 16 Julys,
allegedly by members of the Syrian National Socialist Party in retali-
ation for the execution of their leader Following news of the
assassinations rioting broke out in Beirut. NY
Times, 17 July 51), The Syrian National Sooialist Party has been out,-
lawed since the Partyls attempt to overthrow the government by force in
19/19. The, number of Lebanese supporters of the Py wouldbe small be-
cause it advocates a union of Syria and Lebanon -4- to which most Lebanese
are violently opposed. The rioting in irert, -which vas mostly-the work of
elements interested in looting and destructions will have little affect
on the political situation in Lebanon.
9,00 INDIA. Additional Sino- dian Friendshi Associations Established. Ac-
cording e eiping .ra.0 0 Ii V,9.nTbranches oft-he Sino-indian
Friendship Association have been*, or are being, formed at Patna, Bihar;
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ei
Anantapur, Madras; and Kapurthala? Patiala and East Punjab States Union
(PEPSU). C7NT% Previouslye ther
associations were organized in Calcutta aa-ladbay.
"B" INDIA
PAKISTAN. New Tensions Bevel? in Between India and Pakistan.
Since 2 uly- when India lodge a complaint mi h-IEFURTga-Nniarre-
garding Pakistani breaches of the cease-fire agreement in Kashmir, India
has been attempting to convince UN Representative Prank Graham of Pakis-
tants aggressive intentions in that area and has taken several steps to
place Pakistan militarily and propagandistically-on the defensive. A
few bellicose statements made by concerning the establishment
of a Constituent Assembly in Indian-held Kashmir have been used by the
Indians as an excuse to move practically-the whole of their armed forces
up to the Pakistani border. Pakistan has countered with a series of
defensive troop movements, It has cancelled all military leaves and has
placed all civil defense forces under military control. US and British
representatives in South Asia are disturbed over the possibility of war
between the two countries.
COIKKENT': War at the present time is not anticipated. India
is obviously conducting a war of nerves against Pakistan, possibly hoping
that the latter will commit an aggressive act while Graham is in the sub-
continent. It has no intentions of opening itself to charges of aggression,
hammer, Both the Pakistani Government and Army know that aggressive
actions on their part would lead to war and probably to the eventual dis-
solution of Pakistan. Both will seek to prevent such actions though each
will attempt to display a bold front toward the enemy. Between them, the
government and the anny have the capability to keep the Pakistani people
and the tribesmen in hand, and it is believed that they take approp-
riate measures to do so.
BMA, ortedNeotiatiu0 Zmuniets. Us Embassy
Rangoon reports that it has received unconfirmed information indicating
that U Ba Swes, the titular head of the Socialist Party, is attempting to
undermine the Government by s eking the support of some insurgent Communist
forces. His intermediar is said to be Th in Pe, a well-known aboveground
Communist, CONT 8 ea Swe remained loyal
to the Government when the pro-Commnnist Burma Workers and Peasant Party
broke away from the Socialists last December, but only after considerable
hesitation. The increasingly pro-Western attitude of Prime Minister Thakin
Nu must certainly be distaeteful to Ba Sme and a working arrangement with
-Thein Pe is entirely possible. Reports of their efforts to acquir armed
support from the Communists is plausible ince there would be no prospects
of converting their ideology into acdepted policy without it. It is ex-
tremely doubtful, howevever, that they could develop the means to take over
the Government in the near future,
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nnc_Bu,iovereneun.inetKMivities. The '
Burmese Government is now ignoring, and even playing down, the con-
tinued presence of Chinese Nationalist forces in northeast Burma.
This is in direct contrast to the great anxiety displayed by Burmese
officials last May when they threatened to place the problem before the
UN. US Embassy Rangoon states that this attitude probably stems from
a realization that Taipei exercises no control over the Nationalist
forces and from a desire to avoid attracting further attention to the
fact that the Burmese Government is incapable of maintaining internal
security. The Embassy adds that this development is encouraging since
it reduces the potency of a useful Communist propaganda weapon.
COMMENTt The Burmese unquestionably hope that
the problem will dissolVe with a minimum of friction. However? National-
ist activities in Burma can be easily exploited by the Chinese Communists
either for propaganda purposes or to place political and military pressures
upon Burma at anytime they choose.
"C"
1100
INDOCHINA. Editor of Catholic News seTE_Arrestede Than Trung Dung,
editor of an outspokenly nationalist Catholic newspaper in Hanoi was
arrested in that city on 13 July by the Vietnamese Surete. Dungvs
arrest, on charges of pro-Communism? result from his conversations
with the Indonesian journalist Sanjoto? in the course of which Dung
disparaged French olic a I respect for Ho Chi
Minh. Dungls arrest is the
signal Jeeeeerep aga s? eunamos- nationalists whop are not co-
operating with the French and the Bao Dai eeeerse, .44 ,ho are con-
siderd pro-American. CONMENTg
Dung is not pro-Communist, but like many Vietnamese nationalists he
admires Ho Chi Minh and believes that the primgry nationalist task is
to get rid of the French. The government of Vietnam is now controlled
by Premier Than Van Hun and Security Minister Nguyen Van Tam, who have
in the past taken strong measures against opposition elements at the
expense of non-Communist unity. Hun and Tamers both French citizens
and are considered pro-French. They are unpopular and, according to a
US official, have replaced competent officials 1n North Vietnam with
other Vietnamese known to be slavishly pro-French.
Bac Dal Decrees Total Mobilization. Bac) Dai has signed a
decree entrusting Premier Than Van Hu u with the power to requiaition
all "national facilities and propertiesu? according to Radio Saigon.
The decree confers very broad powers, although conscription of military
manpower is excluded. One of the reasons cited to justify the decre
was the possiblity that a cease-fire agre.nent in Korea might i crease
the Communist threat to Vietnaes borders.
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CHINA. 112ports Indigattagg_g_52Pnlying Less to Viet Minh.
the Chinese Com-
munists shut off commercial traffic from Kwangsi into Indochina at
Chennankuan, and that military shipments along this truck route are
now greatly curtailed. In early July US officials in Saigon reported
a Viet Minh order to discontin .11: Its from Hainan Isalnd.
COMMENT:
Other reports ?escr e increa ng military shipments irom wina to the
Viet Minh, but the continuing military weakness of Ws forces indicates
that such shipments have been smaller than sometimes alleged. However,
reported highway construction in South China, along with the expected
completion this summer of a railroad to the Indochina border, will greatly
enhance Chinese Communist capabilities to extend logistic support to Viet
Minh.
Petroleum armAgalffig to Communist China Inatm.lm. Many Honduran,
Panamanian, Greek and other flag vessels are calling at the Red Sea port
of Djibouti (in French Somaliland) en route from Europe to load excess
oil in tanks or bunkers for delivery to the Chinese Communist, according
to the US Con u1 General in Hong Kongo Several Panamanian vessels arriv-
ing at Singapore and Hong Kong have recently been observed by port au-
thorities overloaded with fuel oil below the Plimsoll (safety) mark.
COMMIT:
The smuggling by western-flag vessels of excess fuel oil stocks to the
Chinese Communists has not previously been suspected on the scale indi-
cated--a scale which may add significantly to meager Chinese supplies.
US officials in Bangkok have discounted the report of gasoline smuggling
from that port, although both the Philippines and Bangkok are frequently
rumored to be active smuggling bases for oil traffic to China.
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Da._n____p_p_dz...______laiLamaReortedRe.toRetutornLhasa. The New Delhi
press reports that the Dalai Lana w111-depart Yatung for Lhasa on 22
July, and that Chang Chingewu, Peipinges appointee as military gover-
nor of Tibet, departed Kalimpong for Tibet on 14 July. (U New Delhi
16 July 51). OOMMENTg The 23 May agreement between the Peiping re-
gime and the Tibetan delegation to Piping made clear that Tibet was
to be an integral part of Communist China and that the Dalai Lama, if
he remained, would be subordinate to the Panchen Lama, a Peiping pup-
pet. At that time, it appeared probable that the Dalai Lam would de-
nounce the Peiping agreenent and seek sanctuary abroad. The Dalai
lana0s return to Tibet would facilitate the consolidation of Chinese
Communist control over the area, although Peiping is capable of extending
its control ever Tibet no natter what the Dalai Tana may do.
MoreeZetenE,Ordered into Tibet,. The Nationalist Ministry of De-
fense reports that the Chinese Communist Southwest Military Area on 20
June was ordered to make preparations for the movement of more troops
into Tibet. In implementation of this command g (1) the 18th Army at
Changtu, in western Sang,, sone 300 miles east of Lhasa, was ordered
to prepare for a long march; (2) the logistic command at Hsinching in
western Szechuan? southeast of Chengtu, is t. complete highway connections
with Tibet and transport three months supply of rations to Changtu prior
to 1 September; and (3) the 2nd Air Tran port Group at Chengte wee to give give Hall possible assistance".
CONT s The Chinese Communist capaoiaaties or moving troops into
Tibet proper, despite the difficulties presented by terrain and climatic
conditions, renains unimpaired by the Korean War. An estimated 30,000
of the 450,000 troops located north and east of Tibet could be sent into
Tibet and supported there. The remaining Tibetan forces, estimated at
no more than 5000, are not believed capable of offering opposition stronger
than guerrilla resistance to any Chinese Communist armed penetrations.
KOREA. Enet P ssib Extendi Jet t.erations. Recent enemy jet fighter
operations support the Far et Air ?roes/ estimate that the enemy is
capable of extending his air defeneive operations to cover all of Com-
munist-held North Korea. Not only has the last week produced several
air engagements in the Pyongyang area involving moderate to large-size
enemy groups, but also evidence of possible enemy use of large external
fuel tanks was observed, large silver tanks were observed to have been
dropped by enemy jets in their first pass at UN F-51/8 attacking Kansplong
airfield northeast of Pyongyang.
e USAF technical intelligence has for ono time reported that the
NI0-15 was believed capable of a combat radius of more than 400 nautical
miles if large tanks (approximately 150 gallons) were used. The above
sighting, if confirmed, would be the first visual support of this po-
tential capability. (The combat radius of the MIG-15 with 33 gallon
externa w tanks is estimated to be about 250 nautical miles.)
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SECTION 3 (WESTERN)
GERMANY* Socialists Again Criticize US and British Labor Units. The
social Democratic Party (5PD) recently launched another bitreFgttack
against the German Labor Service Units maintained in the US and UK zones*
The SPD alleges that the members of these labor and guard units are re-
moved from German jurisdiction, and that there iS a tendency to transform
the units into a paramilitary organization. The SPD criticized the fact
that the Allies had reorganized the labor units secretly and without con-
sulting the Bundestag, and demanded immediate action to asture that the
units do not become auxiliary troops. Governnent', party deputies agreed
with the SPD that action with respect to the labor units must not prejudge
the question of German rearmament. Liaison Bonn comments that the matter
of the labor units remains a touchy element of Allied-German relations,
but does not believe the nroblam will be raised again in the near future.
COMMENT: The US and UK together 25X1
maintain about 56,000 German and other employees under contract to guard
installations and provide technical assistance. Although these units are
not intended to be cadres for a German armed force, the USSR has protested,
their existence, The SPD, which is opposing German rearmament, suspects
that an attempt may be made "through the back door" to create armed forces;
it therefore opposes the US-UK labor unite as well_as the proposal to double
the size of the Federal border police.
"B" Allies Considering Use of Small Air-Lift in Berlin Crisis. Since
the USSR is s* main ning is res re ions on Wes Ber ins export trade,
the Allied Commandants in Berlin decided not to send their representatives
to the meeting scheduled for 17 July to discuss the trade situation with the
Soviets. They had earlier been instructed by HICOM to attend only if the
restrictions had ceased. The Commandants also have considered mitigating
the effect of the restrictions on the West Berlin economy through the use
of military trains or convoys, or a small air-lift. The US Commandant pre-
fere, however, to postpone further tripartite discussion of these measures
in view of alleged French "leaks" to the Soviet authorities of information
from Allied discussions. COMMENT: The Allies
are still holding up approval of the new interzonal trade agreement between
East and West Germany, pending a satisfactory settlement of the Berlin trade
situation. Further countermeasures, such as extension of the present em-
bargo on shipments of certain goods from West Germany and West Berlin to
East Germany, are also still under consideration, although McCloy feels
that our action on the new interzonal trade pact is our major weapon.
"B" ITALY-VATICAN. Re orted Change in Catholic Action Leadership Would
Ian Democra c Left Ming.
"tire?PC-Fenanthe gradual replacement of the
leaders of Catholic Action (Vatican lay organization) with men completely
Strengthen Chris
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trusted by Luigi Gedda. The latter mill be raised to President General
of Catholic Action, thus replacing Vittoria? Veronese mho will be given
?
a position without organizational functions. 25X1
COMMENT: Gedda is a strong supporter of the Dossetti group,
'which is pressing for a one-partY (Christian Democratic) administration 25X1
and a corporative form of state. Such a change in Catholic ActionTs
leadership mould improve the prospects of the militantly reformist Dossetti
left ming of the Christian Democrats for Obtaining ministerial posts in
the new Italian cabinet.
"B" TRIESTE. Rightist Elements Plan Demonstrations, The Italian Socialist
Mbvement ( I p in co a orat on with irresponsible elements in Italian
rightist parties of Trieste, is reportedly planning to organize action
squads for sabotage'against the AMG, especially the British element, in
order to force the return of the Free Territory to Italy. These elements
hope to force the British out of Trieste by acts of violence as was done
in Israel. An emissary of the Italian Government reportedly brought large
suns of money to Trieste recently for the use of pro-Italian parties and
a portion of this fund is to be used to finance the organization of action
?
squads. COMMENT:
The MSI, a neo-Fascist Italian party with a branch in Tries-De; Fgagma
Th
about 6% of the votes in the 19)9 Trieste communal elections. Mile the
NSI? with the collaboration of some elements of other rightist parties
conld cause some disturbances, it could not succeed in driving out the
Western powers without the support of the major Italian parties. It is
unlikely that the Italian Government mould support rightist inspired acts
of violence in Trieste. The Italian Government has endeavored to club
the objectives of the I. in Italy mhere a direct action? group appears to
be growing bolder and planning more terroristic activity.
NORWAY. 'Defense Planning Inadequate to Achieve Meduim Term Defense Plan
Goal. feels that Norwegian defense plans for
the Projected bu sup a 4mprovement of its forces are inadequate to
achieve its Medium Term Defense Plan contribution by 1952. Al-
though responsible Norwegian officials continue to assert that the govern-
ment intends to fulfill its commitments by the target date, the mission
believes that without radical changes in the Defense Ministry's approach,
the program will not be complete, especially qualitatively, before the
original target date of mid-1954. COMMENT:
The Defense Ministry has continually failed to outline concrete plans for
implementation of its general program, and its most recent presentation
on the defense program proved again to be merely a recapitulation of goals
without detailed plans. Although one step towards the buildup to 451000
men by late 1952 is a royal proclamation of 13 July to call up 1952 con-
scripts 6 months early, much more comprehensive concrete measures are
needed for the MTDP goals to be met qualitatively.
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UNITED KINGDOM/FRANCE. Governments i..Ose S anish Link to Western
Defense. The UK Is h. $1 oppose o p. vs a. ission o TO so
opposes "any closer association between Spain and any member of the Atlan-
tic Pact," and has so advised the US, a Foreign Office spokesman has told
the press. Britain has been in touch with France on the matter, and in
Paris French officials said France opposes the idea as "politically unwise".
COMMENT: The British and French Govern-
ments have never i en eir opposition to bringing Spain into Western
defense plans. This official British announcement, however, coming on the
occasion of Admiral Sherman's visit to Spain appears to mark the beginning
of a publicity campaign to dissuade the US from further action, following
a recent Cabinet decision adverse to a Spanish tie in any form. The French
fear that their welfare may be sacrificed to a Pyrenees defense concept.
British and French opposition is especially strong due to the political
complexion of the present governments, as both the British Labor Party and
several of the elements likely to form the basis of the French Government
in coming months have strong traditions of hostility toward Franco Spain.
"B" MOROCCO. French Ri?htist Considers Juin's Activities in Morocco Harmful.
in Morocco are "nefarious". Because greater cooperation with the Moroccans
is advisable, the Sultan's wishes for 's. non-military Resident General should
be given consideration. He feels, therefore, that General Eisenhower should
request Juin to start his work with SHAM soon, adding-that Juin mould do
an excellent job with SHAPE.
COUMENT:
There is considerable feeling in French official circles that France's
interestsin'Morooco are being jeopardized by Juinls repressive policy.
Nevertheless, the French Government has not curtailed Juin's freedom of
action. Juin has frequently reiterated his determination to stay until
the present crisis has dissipated. He has also indicated some dissatis.7
faction with his SHAPE assignment.
"O" GUATEMALA. US Ambassador Comments on Recent Guatemalan Disturbances. The
1J Ambassador, n ev ua ing e signi icance o recent civi d s ur ances
in Guatemala, states that the scope and character of the flareup showed a
strong popular current of dissent from the Communist trends. Be adds that
the demonstrations were not directed against the Arbenz government as such,
but specifically against pro-Communist elements. The Ambassador believes
that the tenor of the pronouncements over the government radio as well as
the decree suspending constitutional guarantees -- with their blame on
national and international reactionary forces -- show that the same groups
are "in the saddle" as under Arevalo. The Ambassador concludes that Presi-
dent Arbenz' failure to give the slightest evidence of a will to restrain
or to cope with the Communists and pro-Communist elements suggests that he
is disposed to continue to go along with them.
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CENTRAL INTELLIGENCE AGENCY
DAILY DIGEST SUPPLEMENT
JUL 1 7 1951
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CENTRAL INTELLIGENCE AGENCY
OFFICE CF CURRENT INTV.LTGENCE
17 jlay. 1951
SECTION 1 (SOVIET)
CZECHOSLOVAKIA. m_Forei:ministezLE aielfiLMA-T?.42t4E16 According to
US AMbassador Briggs in Prague; there was to meeting of minds during a
16 July conversation he had with Foreign Minister Sireky in which Briggs
set forth the US stand that Oatis had been illegally arrested and imprisoned
and should be released subject to immediate deportation. Siroky acrimonious-
ly replied that the US note delivered by Brigg s in daring to criticiz
Czechoslovak judicial procedures was an attempted infringement of Czechoslovak
sovereignty. Although Siroky verbally rejected the notes he did not return
it to Briggs but instead stated that he would communicate ite contents to a
Cabinet meeting scheduled for the next day and would subsequently convey to
the EmbAggler the Czechoslovak Governments reply.
CONNEVT1 The State Department intends to proceed with retalia-
tory measures including (1) the denial of militarrpermits for Czechoslovak
travel in Western Germanys (2) an eMbargo on US exportss and (3) blocking of
Czechoslovak assets in the 168. The State Department is alse planning in the
near future to offer to exchange for Otitis a Czech convicted of espionege in
West Germany. The Czechoslovak Government has evinced interest in thii
RUMANIA. Foreign-Nibistrr Orgenlzetleejleyeglede The US Legation Bucharest
has received from a reliable Rumanian spume detailed Information on the
organizational structure of the Rumanian Foreign Ministry. According to the
source, extremely centralized control ig maintained over every activity of the
Ninigtry by three Aesistant Ministers, Final authority e howevers ie in the
hands of,Iosif Chisinevechis who holds no title in the Ministrys but is Vice-
Premier and one of the secretaries Of the Communist Party Central Committeea.
The scow trained Chisinevschi allegedly "speak o with the voice of authority
of the Kremlin" and relieves Ana.Pteker of all but "matter g of greateet
importance". CONNENT8 Chiginevschi
(alias Roitman) is believed to be one of the most powerful Rumanian
Communists; the Rumanian representative of the NUB and e direct link for the
transmiseion of Kremlin di act
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SECTION 2 (EASTERN)
"B" EGYPT. Egyptian Foreign Minister Threatens to Denounce Anglo-Egyptian
Tx_zl.k. :The Foreign Minister has.informed.BS Ambassador Caffery that he
will announce the end of the Anglo-Egyptian taIk publish the minutes of
his conversations with the British Anibassadm.? and denounce the 1936 treaty
with the UK, unless oamething unexpected happens in AngloZgyptian negotia-
tions on the defense of the Suez Canal Zone before -Him miri-ugust adjournment
of the Egyptian Parliament. CONMENTs The
PoreignMinister has made a similar statement to the British AmbassadOrl. who
felt it did not have the authorization of the Egyptian Cabinet. The British
Ambassador considered there was some possibility of getting King Farouk, who
recognizes the importance of obtaining British cooperation in the defense of
the Suez Canal area, to disavow such a move. Important political decisions
are not customarily made in Egypt during the summer, especially with the King
the Prime Minister out of the country. It is however, not unlikely that anger
over the forthcoming Security Council attempts to have the Egyptian Suez Canal
restrictions lifted plus a resurgence of nationali generated by event: in
Iran will encourage Egypt to denounce the treatY0
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PHILIPPINES. litrther Consultations over Japanese Reparations to the Philippines
Suggested. Ambassador Cowen in Manila recommends the need for a "coolirg-
off" period with regard to the problem of Philippine demands that the Japanese
Peace Treaty insure reparations to the Philippines. He suggests that a series
consultations On the matter might accomplish this end and avoid a breach in
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