CURRENT INTELLIGENCE BULLETIN - 1951/06/07

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02733136
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: March 18, 2019
• Document Release Date: March 28, 2019
• Publication Date: June 7, 1951

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7 June 1951
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
. .
NO CHANGE IN C-L.A. r?;.
I 1 DECLASSIFIED
CLASS CHANGED TO: TS E
NEXT REVIEW DATE:
AUTH: HR 49-'21
DATE.P4.4VIEWER
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
GENERAL
French favor a new attempt to end Korean war (page 3).
FAR EAST
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2. German air tactics seen over North Korea (page 3).
3. Peiping increases commitment to Korean conflict (page 4).
4. Cotton shortage causes shutdown of Shanghai textile mills (page 4).
SOUTH ASIA
5. Passive Indian attitude toward Sino-Tibetan agreement continues
(Page 5).
NEAR EAST
6. Iranians consider destruction of oil installations in case British
land troops (page 6).
WESTERN EUROPE
7. West Berlin officials yield to Soviet pressure, ignoring request
of Allies (page 6).
8. Comment on Spanish Ambassador's 5 lune statement (page 7).
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GENERAL
1. French favor a new attempt to end Korean wai\.:
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Comment: The French have been extremely
anxious to limit hostilities in Korea, particularly because of their fear
of Chinese intervention in Indochina. The suggestion in this report, how-
ever, may have been prompted by the French desire to associate them-
selves with the UK and the US in a move which the UK had already made
independently.
FAR EAST
2. German air tactics seen over North Korea:
An Air Force operational summary, re-
porting a 1 June air attack by 22 MIG-15s 3.3(h)(2)
on friendly planes in north-central Korea,
observes that the enemy pilots were "able
to handle" the MIG-15' and "could have been Russian or German, as the
tactics resembled those of the German Luftwaffe."
Comment: Germans have previously been
reported present in the Far East, particularly in conneption with an
"International Volunteer Air Force" allegedly being formed in Manchuria.
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It is probable that the USSR has exploited the knowledge and services of
ex-German Air Force personnel from the Soviet zone of Germany as air
instructors, but there is no reliable evidence that Germans are in North
Korea as pilots.
3. Peiping increases commitment to Korean conflict:
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The Peiping regime has launched a new cam-
paign calling for an intensification of the
Chinese effort in Korea over the next seven
months, and specifically for the purchase of
heavy equipment for Chinese forces in Korea.
Government spokesmen state that Communist forces are superior in
manpower resources but need "planes, tanks, guns and other military
equipment," and that funds for the purchase of such materiel will be
raised by increased production and taxes and "donations" of work-hours,
profits and savings. The campaign is to be reviewed by the Party in
January 1952.
Comment: The new .campaign is a strong
indication that Peiping is not prepared to abandon its commitment in
Korea. Last week, the head of a Chinese Communist "people's dele-
gation" to Korea stated publicly that Communist forces in Korea were
determined to expel UN forces but needed heavy equipment to accomplish
that mission. Peiping's propaganda in the past has exhorted sacrifices
for such items as bullets and grenades. Recent pronouncements do not
clearly indicate whether the Chinese Communists have made arrangements
with the USSR for heavy equipment or whether they merely hope to do so.
4. Cotton shortage causes shutdown of Shan hal textile mills:
A shortage of raw cotton forced Shanghai 3.3(h)(2)
authorities on 29 May to order a six-week
closure of all textile mills in that city.
This decision was followed on 1. June by a
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Peiping directive exhorting holders of raw cotton to sell their stocks to
the government and blaminghoarders for the serious cotton shortage.
Comment: The present shortage of raw
cotton is caused by insufficient output combined with reduced imports,
rather than by hoarding. Reliable, independent estimates have placed
the late 1950 cotton crop at 25 percent under the quantity necessary to
insure operation of the mills through 1951. This shortage is now expected
to cut bjack mill operations until late in 1951 when the new crop becomes
avai1ab40 The effects of this cutback in China's principal industry
will be to increase urban unemployment significantly, particularly in
Shanghai, and to reduce the supply of cotton cloth, which is in heavy
military and civilian demand at present.
SOUTH ASIA
Passive Indian attitude toward Sino-Tibetan agreement continues:
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3.3(h)(2)
The Secretary General of the Indian Ministry
of External Affairs has told Ambassador
Henderson that India still had no information
from Lhasa or from the Dalai Lama concern-
ing the Peiping announcement of the signing of the Sino-Tibetan Treaty.
Bajpai said he did not know what the attitude of India would be if the
Dalai Lama repudiated the treaty. He also said that India continues to
favor Tibetan autonomy, but would not press for it if the Tibetans did
not.
Comment: Whether or not the Dalai Lama
repudiates the treaty, India will �',7---)t be prepared strongly to oppose the
Chinese on the matter of Tibetan autonomy.
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NEAR EAST
Iranians consider destruction of oil installations in case British lan_d_
troops:
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Comment: The Iranian Army in recent weeks
has made plans to defend the Abadan area against a possible British
troop landing. However, it has not been known that these plans included
provisions for possible demolition of oil refineries. While demolition
may never occur, the fact that Iranian Army commanders have considered
destroying Iran's greatest and practically irreplaceable industrial in-
stallation indicates that the nationalization sentiment and anti-British
feelings have reached a high not previously recognized.
WESTERN EURdPE 3.3(h)(2)
West Berlin officials yield to Soviet pressure, Ignoringrequest of Allies:
German officials in West Berlin have yielded
to recent demands by Soviet authorities that
requests for interzonal trade permits for
certain restricted goods be accompanied by
certificates showing the origin of the raw materials used in the manufac-
ture of the goods. In so doing, they have disregarded an official Allied
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request not to yield to the Soviet requirement since it violates earlier
agreements. Approximately 1,800 permit-requests (of a back-log of
8,000) which fulfill the stipulated conditions have been forwarded to
the Soviet authorities, who have already approved 1,100 of them.
Comment: The unexpected accession of
Berlin city officials to Soviet pressure may have resulted from dis-
appointment at the failure of Allied authorities to agree rapidly on
effective counter-measures. This German action will increase the
difficulties of the Allies in initiating counter-moves.
8. Comment on S anish Ambassador's 5 june state ent
A 5 June press statement by Spanish Am-
bassador to the US Lequerica indicates that Franco apparently has
decided to make no concessions, internationally or internally, regard-
ing Spain's position in Western defense arrangements. This position
is evidently taken in the expectation that US economic and military aid
will soon be forthcoming despite the objections of Western European
Socialists, and that this aid will resolve in his favor the political crisis
brought about by the current popular strike movement. An additional
reason for Franco's seemingly intransigtnt attitude is the apparent
fact that able and influential men will not enter the government except
under conditions which would undermine the policies and structure of
the regime.
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