CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100120001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: November 16, 2016
• Document Release Date: November 17, 1999
• Sequence Number: 1
• Publication Date: July 11, 1952
• Content Type: REPORT

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.SECURITY INFORMATION
US OFFICIALS ONLY
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
11 July 1952
OCI No. 6438
Copy NT
This digest of significant reports has been prepared primarily
for the internal use of the Central Intelligence Agency. It does
not represent a complete coverage of all current reports re-
ceived. Comments represent the immediate views of the Office
of Current Intelligence.
RETURN TO ARCHIVES Et RECORDS CENTER
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
25X1A
la Awards given to MGB troops in Ukraine: The American Embassy
in Moscow reports that over 627 awards for long and irreproachable
service were given out to the MGB security forces in the Ukraine in
June. This is the highest total published this year by any repub-
lics
Comment: During 1951 and part of 1952, several thousand MGB
troops were reported to have conducted intensive operations against
the resistance groups in the western areas of the Ukraine, which
have been a source of trouble to the Kremlin since the end of World
War II. It is possible that these awards, together with previous
awards given in April and May of this year to members of the se-
curity troops in this area, are the result of these anti-resistance
operations.
2.
Soviet Union reports increase in higher institute graduates:
Pravda reports that 225,000 students graduated from
higher
a
uca-
tiJnai establishments in the USSR in 1952. (R FBIS
Moscow,
8
July
52)
Comment: There were 70,000 graduates from higher educational
institutes in the USSR in 1945. The total figure rose during 1950
and 1951 to between 148,000 and 195,000. Only 10 percent of these
graduates were from universities offering a general curriculum.
The remaining 90 percent attended technical schools, such as en-
gineering, medical, coal-mining, journalism, and agronomy,
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25X1 C
Comment: Czechoslovakia has been emphatic in its approval of
the Sovie proposals for the unification of Germany. Only recently
has the Czech press made any reference to the need for East Germany
to rearm in its own defense if Germany remains divided.
The Soviet Government may well wish to maintain tension in
Germany to provide an excuse for the retention of Soviet forces
in the country and the build-up of a German satellite army'while
at the same time blaming the Western powers for preventing a peace-
ful solution.
4, Hungarian Minister of Mining and Power absent from miners'
trade union mee ing: Sandor zottner, Hungarian Minister of ining
and Power, i no attend the meeting of the miners' trade union
that opened in Budapest 5 July. His place was taken by Chief
Deputy Minister Istvan Havran.
Foreign Minister Karoly Kiss, representing the Politburo, 25X1A
'
"
spoke of the
dire need for experienced union. functionaries,
while union leader Bela Blaha blamed the union for improper use
of Socialist competitive methods.
Comment: Severe criticism has been directed at Hungarian
coal m ning during the last two months. However, it is too early
to say whether the Minister of Mining has been purged for the fail-
ure of the industry to meet its targets.
In its editorial comment on the miners' convention on 5 duly,
the party newspaper called upon the union to use Soviet competitive
methods and to overfulfill its plan targets. The editorial also
made the significant statement that clerical reaction "and espec-
ially Social Democracy" were to blame for poor work discipline in
the Hungarian mines.
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25X1X
5, Yugoslav military leaders anxious to coordinate defense plans
25X1X with Greece and Tu
ugos.av military leaders strongly favor the conclusion
o a verbal mutual defense pact with Greece and Turkey followed by
staff talks detailing coordination of defense plans. While the
Yugoslav General Staff believes that written pacts are unnecessary,
it will sign a military agreement if Greece and Turkey insist. At
the present time, however, political considerations prevent the
opening of such talks.
American military observers comment that while continued Yugo-
slav hesitation to discuss military matters with Greece'and Turkey
is difficult to understand it follows the Pattern of ast Yugoslav
25X1A performances.
Comment: Last week, the Turkish Foreign Minister stated that
Yugos avers now ready to engage in military talks if Turkey prom-
ises to participate in the positive defense of Thrace.
On 7 July, Marshal Tito told a Greek parliamentary delegation
in Belgrade that although Yugoslavia rejects formal pacts, Greece
and Yugoslavia must be ready to undertake a joint defense of their
independence,
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no North Korean
military or diplomatic representatives were attending the
6. Final Sino-Soviet decision on Panmunjom talks
reportedly scheduled before 20 July: Soviet an inese
diplomats currently attending a conference at Peiping will
reach a "final decision" on the cease-fire talks no later
25X1X than 20 July.
25X1X
meeting.
Comment: There have been recent reports of an in-
creasing inese Communist role in major decisions
concerning North Korea, hitherto exclusively a Soviet
puppet. It is possible that truce talk policy is now
decided jointly by the Chinese and the Russians without
North Korean consultation.
There have been no other reports of the conference
or the 20 July deadline.
25X1X
25X1X
25X1A
7. High Soviet and Chinese officials arrive at Panmunjom
for truce talks: In early July a high-ranking Soviet
Foreign Minis ry official and a Chinese counterpart arrived
at Kaesong with a staff of eight
These newly arrived Communist officials reportedly
are empowered to "accept or reject" UN truce conference
proposals on the spot, thus eliminating the need for con-
sultation with Moscow and Peiping. They have final
instructions as to the Communist position on the remainin
Comment: Communist negotiators at Panmunjom are be-
lieved toTh ve consulted Moscow and Peiping on all major
decisions in the past. It is possible that the USSR and
Communist China have agreed on their minimum position on
the one remaining issue.
There is no apparent advantage however in dispatching
"diplomatic experts" to Kaesong. Their presence has not been
confirmed and to date the enemy has not demonstrated any
urgency in concluding negotiations.
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25X1X
9, Iranians optimistic over output of new oil well:
25X1X
25X1X
25X1A
25X1X
the oil field at Qum
90 miles 25X1X
south
of
,
Tehran, appears to be comparable to the rich
fields
in
so
th
I
u
ern
ran. the well brought
in at
Qum
on 2 July is capable of a daily production of
1,000 barrels. had refused the
equipment offere it by the National Iranian Oil Company in
order to prevent any legal entanglement in the Anglo-Iranian
disputes
Comment: These statements appear premature. Even if
the equipment for completing and testing the well were
available, the process of determining its capacity should
take about a month. Additional test wells will have to be
brought in before the extent of the new field can be
determined.
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25X1A
25X1A
10, Greece may bring Cyprus issue before the UN: Greek UN
Delegate Kyrou informed the American delegation on 9 July
that public opinion was forcing his government to bring
the Cyprus issue before the United Nations.
The American Ambassador in Athens reported on 8 July
that Acting Prime Minister Venizelos has been pressing him
for official American reaction to such a move. The Ambassador
fears that the Greek Government will not be able to resist
raising the matter.
Comment: Successful demonstrations in behalf of the
union oyprus with Greece were held in Athens on 4 July.
Although there is no indication that the current cam-
paign will be more successful than its predecessors, the
possibility that Cyprus may be a Western defense headquarters
increases the importance of the issue. Widespread Greek
support for union may tempt the government to promote it in
order to remain in power.
SECRET
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25X1A
25X1A
11, Recruiting for East German paramilitary forces lags:
Reliable reports indicate that May recruiting quotas or the
East German Alert and Border Police were missed by 80 percent
in Saxony and 50 percent in Thuringia. In Saxony, only 700 men
had been recruited by mid-June to fill the month's quota of
8,000 men.
Police recruiting teams have now changed their tactics to bring
pressure through personal interviews. Former security restric-
tions, such as the rule against recruiting individuals who were
Alert
prisoners of war of Western powers, have reportedly been relaxed.
Comment: Despite the pressure placed on some groups to
served Alert Police, regular conscription will probably
be necessary to obtain any significant expansion of the para-
military forces.
Communist propaganda exploits West Berlin security counter-
measures: The East Berlin press has been front-paging the an-
nouncement of the West Berlin government that it intends to erect
barriers between the western sectors of the. city and the Soviet
zone. The Communists describe the security countermeasures as
"self-encirclement."
American observers believe that any West Berlin action
taken to prevent further kidnappings will be used by. the Com-
munists to support their case for gradually sealing off the.
western sectors of the city. Thus far the East Berlin press has
not mentioned the recent kidnapping incident.
25X1A
Comment: The West Berlin Senate, incensed by the kidnap-
ping ?Walter Linse on 8 July, immediately adopted measures
to prevent other such incidents. In addition, Allied officials
have formally charged Soviet authorities with collusion in the
crime.
Members of Linse's organization, the Committee of Free.
Jurists, state that he did not have any highly "susceptible infor-
mation," but had been doing interpretive rather than investi-
gative work.
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13, Major powers attacked by other NATO countries on consul-
tation proce ures: Dutch permanent NATO representative tarken-
F..,-orrgh recently "scorched" the United States, France and Britain
for not discussing in the North Atlantic Council their draft
reply to'the Soviet note which they showed to the other NATO
members only 24 hours before delivery. Stressing that matters
concerning Germany were of direct interest to all NATO countries,
he remarked that opposition to NATO in his country, at least,
came from the belief that it was compelled to support policies
in Whose formulation its voice was not heard.
Starkenborgh's statement was quickly and forcefully en-
dorsed.by the representatives of Italy, Belgium, Norway, Greece,
Denmark, Turkey, Portugal and Canada, As examples of instances
where consultation on matters of concern to NATO countries was
being carried on elsewhere, Starkenborgh cited, among others,
the SACLANT appointment and command problems in the Mediter-
ranean and the Near East, 25X1A
Comment: This is the strongest and most concerted protest
yet voiceiy the smaller NATO countries against what they
consider big-power domination.
14. Gaullist split does not strengthen Pinay's hand: The formal
25X1A
split in t Fie Gaullist party oes no mean any added support for
Pinay?s government, according to the US Embassy in Paris. The
Embassy points out that the new faction is composed of the
conservative-minded Gaullist deputies who have backed Pinay
since his investiture, and warns that the dissidents have
specifically announced their disapproval of the government's
foreign policy. 25X1A
There is evidence that additional dissension may split the
Gaullist ranks further in the fall, but the extent of the rift
will depend-on what Pinay's program has accomplished.
Comment: Pinay is now assured of undisturbed tenure during
the summer recess which begins on 12 July, The left wing of the
Popular Republicans is becoming increasingly restive, however,
and when the Assembly reconvenes in the fall, Pinay may be
forced to make concessions on foreign policy in order to obtain
support on the right to compensate for losses on the left.
15. Soviet offer on Danube shimming held best Austrians can
obtain: American Embassy cf icaals in y enna believe that Soviet
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terms with respect to the resumption of Austrian cargo and pas-
senger traffic on the Danube within the Soviet-occupied sector
are probably the best obtainable.
Austrian vessels under Austrian colors and with Austrian
crews operating within the Soviet zone will be allowed to land
anywhere except at designated places involving Soviet security
considerations. They will, however, be subjected to such Soviet
checking as applies to Austrian interzonal rail traffic, and will
be required to operate under interzonal permits valid for only
three months at a time. The Austrians will be obliged to submit
navigational information requested by the Soviet authorities, and
to service agreed-upon Soviet landing points. The Austrian ships
will not be allowed to transport goods and troops of the other
occupation powers. 25X1A
The Soviet Military Command reserves authorit to modify
25X1A an of the new regulations if they are violated.
Comment, While Soviet motives remain obscure, this osten-
sibly conciliatory gesture coincides with increased Austrian
dissatisfaction over Soviet stalling on the Austrian treaty.
Furthermore, the availability to the USSR of Austrian ships
previously confined to US-controlled areas of the Danube will
open up an important transportation outlet to Soviet interests
in eastern Austria.
Through the revocation of permits, threat of vessel seizure,
or charges of violations of regulations, the Soviet authorities
are in position to terminate shipping at any time.
25X1 C 9 11 July 52
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25X1A
Italian Government
Italian Government's recent expulsion ocertain foreign Com-
munist journalists and the prosecution of some local Communists
mark the beginning of a stronger anti-Communist policy, the
American Embassy in Rome reports. The government intends to
push through Parliament various anti-Communist measures, which
include revision of the penal code, some restrictions on the
press, closer control of trade union activities, and a new civil
defense bill. The Embassy doubts whether this legislation, which
will face much parliamentary opposition, can be put through in
time to have "great effect" before the 1953 elections.
Despite pressure from some Christian Democrats, the govern-
ment reportedly will not interfere seriously at this time with
strictly domestic activities of the Communist Party. However, it
is expected to exercise stricter control over international con-
tacts of the Italian Communists and over the activities of Orbit
representatives in Italy.
25X1A
18,
25X1A
Comment: Unless accompanied by a far-reaching program of
economic and social reform, the government's proposed legislation
is not likely to reduce significantly the widespread appeal of
the Communist Party, which now has the support of approximately
one-third of the electorate.
Swiss unmoved by US protests over possible recognition of
East ermany; Despite a formal American protest, the wise have
n cats they may grant the East German Government de facto
recognition. Swiss Under Secretary of State Zehnder has pointed
out that there is little hope for the unification of Germany and
that his government could not refuse such recognition if the
East Germans were to make satisfactory arrangements concerning
the 4,000 Swiss citizens living in East Germany as well as the
Swiss investments, valued at 200 million francs, in that country.
British officials have been discussing this problem with
the Swiss since April. The Swiss have consistently maintained
the same position.
Comment: Switzerland will probably grant the East German
Government de facto recognition, through the exchange of trade
missions, if satisfactory arrangements are made on Swiss interests
in East Germany. American officials in Berlin believe that even
such recognition will be trumpeted by the East Germans as a major
diplomatic triumph.
SECRET
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19. Bomb damages US Information Service Library in Argentina:
A bom way explo ed at t o oar a t e US Information Service in
Buenos Aires at midnight on 8 July. No US Embassy personnel were
injured, but d floor of the Lincoln Libras was reduced
to shambles, u 25X1A
Comment. Destruction of the heavily-patronized Lincoln
Library would cut off a valuable source of.information about the
United States. The Peron government has gradually reduced the
available amount of current information about the United States
by banning many US news periodicals from the country and by
establishing control over the importation of books.
Responsibility for the bombing has not been established.
Despite the serious damage, the Lincoln Library was reopened to
the public on 10 July.
25X1A
with I The razil an Senate on July approved legislation
allowing labor unions to affiliate with the Inter-
20. Brazilian Senate approves law allowing unions to affiliate
national Confederation of Free Trade Unions. Ministry of Labor
officials expected President Vargas to sign the bill this week.
Comment. The bill was sponsored by the Vargas adminis-
tration h has recently given other indications of a dispo-
sition to free the Brazilian labor movement from traditional
government dominance.
25X1A
21, President and Foreign Minister of Panama suggest new Canal
Zone treaty-.- Speaking before a group of Americans on -5-Yu-1y,
Panamanian Foreign Minister Molino spoke of the "need" for a
new Canal Zone treaty. He added, however, that Panama has no
intention of changing the rights the US has at present. Later,
President Arosemena, in an equally friendly way, repeated the
suggestion. Ambassador Wiley, after talking with Molino,
believes that no definite proposals were in mind. 'Molina told
him that in a new treaty the US could be assured of bases "wher-
ever and whenever needed."
The newspaper controlled by President-elect Remon im-
mediately took u the issue and editorialized on the need for
a new treaty,
SECRET 25X1A
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Comment: The position taken by Remon's newspaper and the
fact at he a will be inaugurated in less than three months sug-
gest that Remon may be indirectly testing reaction to a treaty
revision.
Likely to figure prominently in any discussions on the
revision of the 1936 treaty is strong local feeling that com-
mercial competition from the Zone has contributed to Panama?s
present economic crisis. Resentment also exists over the un-
equal pay received by Panamanian and US employees in the Zone.
SECRET.
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TOP SECRET
SECURITY INFORMATION
11 July 1952
US OFFICIALS ONLY CIA No. 49729
Copy No. 6
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
(including S/S Cables)
Not for dissemination outside O/CI and O/NE.
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
This digest 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. Comments represent the
immediate views of the Office of Current Intelligence.
TOP SECRET
SECURITY INFORMATION
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THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
25X1 X
Comment: Czechoslovakia has so far been unsuccessful
in reach ng an agreement with NIOC on the terms of an oil
contract. The basic difficulty is the lack of transportation
facilities, and there is no indication that this problem has
been overcome. Even if a contract is signed, it probably
will not be implemented in the near future, and therefore,
the Battle Act will not apply. Signature of any oil con-
tract, however, is of propaganda benefit to the Iranians in
their effort to force the Anglo-Iranian Oil Company to per-
mit the sale of Iranian oil.
11 July 52
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