CURRENT INTELLIGENCE BULLETIN - 1951/10/24

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02730352
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: April 15, 2019
• Document Release Date: April 22, 2019
• Publication Date: October 24, 1951

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24 October 1951
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CURRENT INTELLIGENCE BULLETIN
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
T ICHSECRET
3.5(c)
3.3(h
7. Middle East Command a target of Cypriot Communists:
3.3(h)(2)
Increased Communist activity on Cyprus is de-
signed not only to create unrest and embarrass
the British but also to create the impression that
Cyprus is politically unsuitable for the Middle
East Command Headquarters. The US Consul on Cyprus, who expressed the
above opinion, reports that the Communist Party and the Nationalist Party
are both renewing agitation for the union of Greece and Cyprus.
Comment: The recent visits of British and
American military missions and the Egyptian refusal to participate in the
Middle East Command have resulted in widely spread rumors to the effect
that Cyprus will become a major Western base. The Cypriot Communists
have long campaigned for the union of Greece and Cyprus, an issue on which
they can gain the support of most Cypriots and most Greeks.
WESTERN EUROPE
8. Austrian manufacturers deliver embargoed ball-bearings to Poland:
3.3(h)(2)
The US Legation in Vienna reports that the Steyr
works delivered to Poland 100, 000 dollars worth
of embargo-type ball-bearings during the months
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of August and September and will deliver a large quantity of such types during
October. Deliveries of embargoed items constitute 50 percent of total de-
liveries for the first two months and far exceed the quota governing such ship-
ments.
The Austrian Foreign Office asserts that the ex-
cessive deliveries were necessary because Western orders had absorbed
Steyr capacity in non-embargo types, and the filling of Polish orders was
necessary if Polish coal is to be received.
The US Legation shares the concern of the Austrian
Government that Polish coal will be cut off unless Austria meets its total
commitments and approves a still-pending contract involving further large
shipments of embargo-type bearings.
Comment: Pending a survey of alternative
sources of coal, the Austrian Government and the US Legation agreed last
August that the Austrians might accept sufficient ball-bearing orders to per-
suade the Poles to begin coal deliveries -- with the stipulation that only dis-
tant delivery dates would be authorized and that actual embargo-type deliveries
would not exceed 10 percent of the total. Grave political repercussions will
probably result if there is a failure of coal deliveries during the winter months.
9. SHAPE opposes approach to Austria on military plans:
3.3(h)(2)
The Commanding General of US Forces in Austria
has been advised by SHAPE of its concern that any
approach to the Austrian Government with respect
to an Austrian military contribution in the event of
os 1 iies mig compromise the security of Western defense plans. Any
disclosure of an intention to include Austria in Western planning would provide
the USSR with a propaganda weapon on the occasion of the reconvening of the
Austrian treaty deputies. Furthermore, an approach to the Austrian Govern-
ment would appear to require prior Anglo-French approval on a diplomatic
level.
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Comment Vienna, under four-power occupation,
does not provide sufficient safeguards for the protection of high military plans.
Soviet-sponsored and Communist newspapers have already charged that
Western occupation forces in Austria receive their commands from General
Eisenhower. An approach to the Austrians now on military plans could jeopar-
dize the chances for conclusion of a state treaty, which is the prerequisite for
any substantial Austrian contribution to Western defense.
10. Soviet harassment in Berlin viewed as move to speed shipments to East
Germany:
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American officials believe that the continued 3.3(h)(2)
Soviet harassing of West Berlin is probably aimed
specifically at the East-West German talks
scheduled to begin on 23 October on iron and
steel deliveries. East German press and govern-
ment circles have violently accused the West Ger-
mans of delaying tactics in the current series of East-
West German discussions on implementing the
trade pact.
It has been suggested by US authorities that the
23 October talks be postponed, and no agreement
e r eac wit. e as1 ermans until they actually abandon various
harassing measures as agreed at the time of the signing of the trade pact. So
far the British and French continue to show reluctance to take strong counter-
action.
Comment: Twice in the past week, the USSR re-
jected large numbers of West Berlin export permits. French and British re-
luctance to take counter-action may arise partly from the belief that the
effect on the Berlin economy of the various harassing measures has not been
extremely serious, as well as from a general unwillingness at this time to
challenge the Soviet right to control Berlin exports.
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11.
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Deteriorating French financial situation threatens NATO interests:
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3.3(h)(2)
The US Ambassador in Paris is "increasingly
concerned" over the deteriorating French finan-
cial situation and over the "prevailing resent-
ment" of French officials because of the delay
in holding US-French talks on assistance. The Ambassador proposes imme-
diate consideration of interim assistance pending the completion of a NATO
committee analysis, and urges that the proposed talks begin at once, since
uncertainty on the type and extent of aid will force the French Government
into actions "that may well be injurious to NATO interests. "
Comment France wants definite US commitments
as a basis for defense expenditures under the 1952 budget. Because of un-
favorable economic trends in France and the probability of early devaluation
of the franc, it now seems increasingly unlikely that France will be able to
meet its defense commitments.
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