CURRENT INTELLIGENCE BULLETIN - 1952/02/01

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02046536
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: May 24, 2019
• Document Release Date: May 30, 2019
• Publication Date: February 1, 1952

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SECUR1 INFORMATION
1 February 1952
Copy No,
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CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO.
NO CHANGE IN CLAS
I DECLASSIFIED
CLASS. CHANGED TO:
NEXT REVIEW DATE'
AUTH: R 712
DATE.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SEC INFORMATION
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SUMMARY
FAR EAST
1. Japanese Government concerned over Moscow Conference
invitations (page 3).
2. South Korea may appeal to President Truman on inflation
problem (page 3).
3. French disturbed over uncertain loyalty of Tonkin population
(page 4).
NEAR EAST - AFRICA
4. Iranian military governor urges election postponement in
Abadan (page 5).
5.
6.
Greek Prime Minister refuses to halt purge of pro-Papagos
officers (page 6).
WESTERN EUROPE
7. French budget deficit threatens NATO program (page 6).
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FAR EAST
1. Japanese Government concerned over Moscow Conference invitations:
The Japanese Government is concerned
over possible public reaction and Soviet
displeasure if it refuses passports for
travel to the Moscow economic conference
in April, according to US Political Adviser Sebald in Tokyo. Al-
though the government is anxious to discourage Japanese attendance,
some business leaders strongly Urge participation on the grounds
that refusal to send delegates would deny Japan valuable economic
information, automatically write off trade with the USSR and Commu-
nist China, and unnecessarily antagonize the USSR. In view of in-
creasing public interest in the conference, Sebald comments that
government refusal to grant passports may magnify the matter unduly
and result in unfavorable repercussions.
Comment: The Japanese Government's
sensitivity on this subject is reflected in the hedging statements of
officials before the Diet that it was "not desirable" for Japanese
to attend.
2. South Korea may appeal to President Truman on inflation problem:
Ambassador Muccio states that in view
of the acute inflation in South Korea the
Republic now contemplates an appeal to
President Truman and to the nations
fighting in Korea to make provisions for reimbursing the South
Korean currency advances to the UN forces.
Ambassador Mucci� observes that eco-
nomic deterioration is too severe for a piecemeal solution and
recommends that the unified command urgently consider sending
a group to Pusan immediately with full authority to draw up an over-
all economic and financial program for South Korea.
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Comment: The two principal issues
preventing the stabilization of the economy are the failure of the
unified command and the Republic of Korea to reach an agreement
on economic aid and the failure to reimburse South Korea for the
local currency advances to UN forces. One effect of the resulting
inflation has been a 33 percent rise in Seoul rice prices since early
December.
3. French disturbed over uncertain loyalty of Tonkin population:
A high French official has admitted to
the US Consul in Hanoi that the recent
heavy infiltration of the Tonkin delta by
the Viet Minh presents a grave problem.
e uncertain loyalty of the delta population is being undermined
by the "untoward behavior" of French troops toward the local
peoples, which contrasts with the studiously proper behavior of
Viet Minh forces.
The US Consul comments that Minister
of Associated States Letourneau, who is visiting in Tonkin, ap-
pears to be acutely aware that the French are losing the "battle
for men's minds" in the delta area.
Comment: The Tonkin delta area is the
major source of food and manpower for the Viet Minh army. As
long as the Viet Minh retains its influence there, French efforts
to gain complete victory in Indochina will fail.
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NEAR EAST - AFRICA
4. Iranian military governor urges election postponement in Abadan:
5.
The military governor of the oil province
of Khuzistan has strongly recommended
to Tehran that the scheduled elections in
the Abadan area be postponed. Asserting
that "foreign agents and seditious elements"
were preparing to create disturbances when martial law was lifted,
he stated that the security and well-being of the area "should not be
sacrificed to the interests of a few election candidates."
Comment: The elections are scheduled
to be concluded by 9 February. According to Iranian law, however,
elections cannot take place while martial law is in effect. Tehran,
disturbed over the security problem, has not yet permitted elections
either in Abadan or in certain other areas where there have been
disturbances.
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6. Greek Prime Minister refuses to halt purge of pro-Papagos officers:
Prime Minister Plastiras does not intend
to discourage the purge of pro-Papagos
officers now going on in the Greek armed
forces. When the issue was raised by the
'Ambassador, Plastiras stated that he would not interfere
with the Minister of National Defense and the King in their efforts to
restore "unity in the armed forces." In fact, he gave the Ambassador
the impression that he sympathizes with the objectives of the purge
and resents US interference.
Comment: Plastiras' unwillingness to use
his influence to stop the reintroduction of politics into the army
indicates that the purge will continue,, unless the American Govern-
ment takes strong action. The purge, rapidly becoming the major
political issue in Greece, will undoubtedly further weaken the govern-
ment by stimulating opposition efforts to obtain control.
WESTERN EUROPE
7. French budget deficit threatens NATO program:
France is budgeting for less than half the
funds needed to meet 1952 NATO require-
ments for French forces in Europe.
"Ambassador Bruce states that this will
necessitate a revision in the plans for NATO support installations
in France.
The Ambassador fears that a drastic
curtailment of the French military program might lead to a demand
for a definite agreement prohibiting a larger defense contribution
by Germany than by France.
Comment: The gap between the budget
figure and NATO's recommendations is equivalent to France's
burden in Indochina, which the French have consistently stressed
they cannot carry if NATO commitments are to be met. The recent
NATO analysis of French defense capabilities is forcing France to
admit that its earlier commitments were unrealistic.
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