CURRENT INTELLIGENCE DIGEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01146A001100290001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 12, 2016
• Document Release Date: June 10, 2002
• Sequence Number: 1
• Publication Date: August 5, 1952
• Content Type: REPORT

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5 August 1952
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OCI No. 6455
Copy No.
280
CURRENT INTELLIGENCE DIGEST
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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.
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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.
1. Soviet press denies existence of a "hate-America"
camps gn: An article in the ov a magazine News accuses
the United States of using the "mythical" Sovl-ef-sponsored
"hate-America" campaign to Justify American foreign policy
and keep up war hysteria.
The article contends that American political leaders as
well as official spokesmen are misleading the American people
by stating that the USSR is unceasingly and violently pro-
claiming that the United States must be hated and conquered.
The fact is, the article goes on to say, that the
stories of Soviet aggressiveness are absolutely baseless.
The Soviet people have always been friendly to the Americans
and the Soviet Union has been steadfastly working for peace,
There are in realit no insurmountable differences between
the two countries.
Comment: The Soviet Union has been increasingly
sensi ve o American accusations in regard to its "hate-
America" campaign. Although the Soviet campaign to "expose
US aggressiveness" continues unabated, the new theme of
Soviet friendliness to the American people has been added.
This theme was given extensive attention at the recent meet-
ing of the World Peace Council in Berlin.
2, MIG-15 production very slow in Polish factory: Progress
in the manufacture b s at the ormer MR F Aircraft
Factory at Mielec, Poland, is very slow, according to a
As a
25X1C result of difficulties the factory engineers are having with
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the blueprints received from Russia, parts of which are
illegible, no aircraft have yet been completed.
The factory is reportedly engaged in the assembly of
three MIG-15's, the parts of which were received from Russia
in February 1952, Twenty to thirty Soviet aircraft
engineers are expected at the factory in the near future,
and it is anticipated that normal roduction of the MIG-15
n. early 1953,
Comment: stated that
tooling up 'or MIG-1 pro uc on ha .gun at the Mielec
factory, the air frame was to be assembled in Mielec and the
engines at the State Aircraft Engine Factory at Rzeszow,
To date, however, there has been no evidence of jet aircraft
production, although it is considered possible that normal
production of the'MIG-15 on a limited scale could begin in
early 1953,
3, Rumanians o
en
p
new thermoelectric station: The American
Laezat_ nn ?m_,,..,
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thermoelectric station-northwest ofBucharest. uThe~first tof
several stations projected under the ten-year electrification
;plan, it uses Czech equipment, burns powdered lignite, and
will furnish power to oil refineries and industries in the
Bucharest-Cam ina_Brasov areas in southern Rumania,
Comment: Czech technicians began
in theists station in April 1951.
the spot. Construction plans called a forNtheeopeningeof :the
plant by the end of 1952 with a capacity of 60,000 kilowatts.
Completion is scheduled for 1955, at which time the full
capacity of 120,000 kilowatts is supposed to produce
300 million kilowatt-hours annually.
4. Rumanians uncover "saboteurs" on Danube-Black Sea Canal:
Ruman an recur y organs nave repor a y stover. awn -
of "diversionists" who managed to get employment in the
building directorate of the Danube-Black Sea Canal
project. section chiefs and three engineers, all allegedly oofbourgeois background, are charged with attempting to sabotage
the construction of the canal.
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to install generators
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The American Legation in Bucharest reports that a
similar group of "hostile elements" had been discovered on
12 July and that both groups of officials are probably being
made scapegoats for the unsatisfactory progress of the canal.
Comment: Earlier last week the Bucharest radio stated
that worker s on the canal were increasing their "revolutionary
vigilance," since there had been too many rejected parts
at Workshops which supply the project.
Propaganda earlier this year hailed the progress on the
canal, and Director-General Gruenberg of the project wrote
an article in Pravda telling of the Rumanian workers'
gratitude to tfiioviet Union for its assistance in the work
which is supposed to be completed in 1954.
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6, Chinese railways believed poorly equipped. The Ministry
of Ra ways in eip ng announce t a ina suffered an
"unprecedented lack of transport capacity" in 1951. This is
the clearest admission reported by the American Consul General
i
H
n
ong Kong to suppot thidl
re wey-held belief that the
Chi
nese do not have enough railway equipment.
Fl` I
Comments Peiping has also stated that the primary mission
of Chinese railroads in 1951 was "transportation of national
defense supplies," This recent admission of insufficient
equipment confirms that Korean war requirements have brought
a considerable reduction in non-military traffic.
7, Macao reiterates need to allow strategic exports to
China. a acao rector o conom c erv ces as ns sted
1i5 an American consular official that no item on the Battle
Act list is being licensed for export to Communist China.
However, he repeated his belief that the safety of the colony
and the continuation of food supplies from China depended on
the shipment of limited quantities of strategic goods to the
Chinese Communists.
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Evidence from other sources, however, indicates that the
smuggling traffic to China continues with -o i erference from
Macao authorities. 25X1
Comment: The border incidents of last week are expected
to stif of the Portuguese in their contention that strategic
shipments from Macao to China must continue in order to assure
the safety of the colony. The Communists may bring up the
question of such shipments in their current conversations
with the Governor of Macao to settle the border incidents.
8. Reports on China border situation alarm Burmese
Commander, Burmese Commander in Chief e Win o the
sistan US Army Attache in Rangoon that he was alarmed over
:reports from his agents on the Surma-Yunnan border and sus-
pected that the "Communists may be up to something." He
plans to make a special trip to that area within a few days
to investigate the, situation.
The Attache believes that any Chinese Communist build-up 25X1
on the border would be a threat to Chinese Nationalist troops
in'that area rather th an to the Burmese Government.
Comment: There are believed to be 20,000 to 30,000
Chinese ommunist troops in southwestern Yunnan. Recent
reports of a movement into Burma of three Chinese-trained
Burmese Communist regiments, possibly accompanied by a small
number of Chinese Communist troops, may have caused Ne Win's
concern o
NEAR EAST - AFRICA
9. National Front moves to control Iranian armed forces:
Deputy Minister o Defense General ossoug as n orme the
American Army Attache in Tehran that there will no radical
reshuffling of senior military officers. The Attache reports,
however, that the Shah has agreed to the appointment of Mos-
sadeq's cousin, Brigadier General Amini, as acting Chief of
Staff. He comments that this appointment of a relatively
junior officer will make the position of senior officers
extremely difficult,
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The American Air Attache notes that there is some talk of
a coup among senior officers. He believes that a coup would
have little chance of success once the National Front has
placed its supporters in key army positions
10< Egyptian Prime Minister outlines his program.- Prime
Minister i a er as o m assn or a ery at he will
not allow the Wafd-controlled Parliament to be reconvened.
He intends to discredit the Wafd, which he believes already
shows signs of decay. Elections will be postponed for six
months to give him time to form a new political party.
Maher also outlined agrarian and social reforms. He
does not expect to resume negotiations with the British at
present. He indicated, however, that he does not disapprove
of participation in a Middle East defense organization and
hopes that the United States will help equip the Egyptian
Army.
Maher characterized some of the leaders of the military
coup as otheaded and im ractical, but felt he could control
them.
Comment.- The Wad, with the only well-established
jpolit c rganization in Egypt extending down to village
level, will not easily be outvoted even if elections are
postponed to permit the development of a new party,
11. French may withdraw Tunisian reform program. The Bey?s
convocation o a council to scues _t fie French-proposed
administrative reorganization in Tunisia may have "killed" the
program, which France may now withdraw. A Residency spokes-
man acknowledges that the council is.representative and will
appear to be a step forward, but insists that it is clearly
stacked against France since all but three of the 36 members
are "more or less" nationalists.
The American Consul General believes that the French arl
more than ever on the defensive with little room to maneuver,
and that they will probably represent this council as an
"irre ular ambit per etrated on the Bey by the Neo-Destour,"
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Comment: The Bey's maneuver is clearly inspired by his
adviser, Farhat Hached, a shrewd and competent labor leader.
A sub-committee of the new council, appointed to study the
French proposals, may be expected to give the program serious
consideration, possibly offering to amend it rather than to
reject it outright.
Should the French withdraw the reform program, the pres-
tige of the Tunisian nationalists would be increased at home
and abroad.
12. South Rhodesian native Africans now oppose federation:
The two African representatives of Southern Rhodesia, HTTHerto
silent, who attended the London Conference on Central African
federation -- Northern and Southern Rhodesia and Nyasaland --
in May, have iust annniinnnd-f heir opposition to the plan. I 25X1
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Comment: These two natives, hand-picked by the white
settler government of Southern Rhodesia, were the only
Africans not to boycott the conference. Their current state-
ment solidifies African opposition to the plan in all three
territories of Central Africa.
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WESTERN EUROPE
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v asv v+vu
to the initialing of the Paris-Bonn treaties not only to
Soviet hopes that they may still not be ratified, but also
to the poor response in East Germany to the call for re-
armament. Dertinger previously held that 25X1
th
13. East German apathy allegedly slows Soviet plans:
East German Foreign Minister - er nger 25X1
e Russians would not proceed with German armament because
of their suspicions as to its reliability, but now allegedly
believes that unification propaganda will be subordinated
to military considerations.
Dertinger considers it "significant" that
the opposition to rearmament in East Germany is directed
not so much against military service as against the likeli-
hood that the two German armies would be pitted against each
Comment: It is unlikely that Dertinger has 25X1A
Sovief-o pTicy decisions, and = !!ty
his estimates are probably of doubtful value. 25X1
There is other evidence, however, of lack of enthusiasm
among the East Germans for the present course of their govern-
ment. East German propaganda appears in some cases at
least to have back-fired, and it is possible that elevating
the ghost of fratricidal war may have evoked a more sympathetic
response in East than in West Germany.
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15, American stand on Austrian, denazification issue re-
ceives limited suppor The office o e g om-
ss oner In Vienna a ieves that it has the support of
the French, British, and Russian representatives in dis-
approving Austrian legislation which would permit former
Nazis to reacquire under certain conditions property which
has heretofore been returned to Nazi victims under the re-
stitution laws. British support, however, appears to be
lacking for an Allied "veto" of laws granting amnesty for
implicated Nazis,
Acting Commissioner Dowling hopes to obtain a post-
ponement of action, and in the meantime is withholding an
American veto to give the Austrian Government an oppor-
tunity to pass suitable indemnification legislation for
Nazi victims. With respect to existing indemnification
legislation now before the Allied Commission, the US will
attempt to obtain separate assurances from the Austrian
Government that indemnification will be made to all United
Nations nationals and not to Austrian citizens alone.
Meanwhile, announcement of American opposition to
Austrian denazification and indemnification policies con-
tinue to provoke widespread criticism from the moderate and
right-wing press. Anticipated American "veto" of the amnesty
laws is called a violation of Austrian sovereignty and an
interfere a that "plays into Soviet hands," 25X1
I-- I
16
Dutch in dilemma over Soviet interest in two cargo
vessels: According to a u government o is a, 1 he
:e erands refuses the Soviet order for four List II
vessels which COCOM terms "highly strategic," it will have
difficulty in explaining to the USSR its willingness to
accept a Soviet re-order for two cargo vessels of a non-
strategic type now under construction.
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An influential Dutch newspaper, commenting on "American
objections" to the Dutch construction of two'freighters for
the USSR, report's that the Dutch people believe that as
long as the United States "keeps out Western Europe pro-
ducts," Western Europe must trade with the East to "stay
on its feet," 25X1
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Comment: There is increasing dissatisfaction in the
Nether a-I nds`with United States tariff policy and East-West
trade controls. Recently the Dutch`Government admitted to
American officials that its refusal to buy wheat in the
United States was in retaliation for US tariff policy on
cheese rather than because of a dollar shortage.
The Netherlands delegate to COCOM states that his govern-
ment's attitude on the Soviet request for the List II ships
will depend on COCOM opinion toward the proposed French ex-
port of List I items to the USSR.
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De Gasperi reported doubtful of Nenni's intentions to
break with ommun s s; Premier a asper as never place I d
serious can idenc- n the conditional offer or ability of
Italian Socialist leader Nenni to separate his party from
the Communists, E: I 25X1
Nenni reportedly told De Gasperi last spring the Socialists
would run on a separate ticket from the Communists in the
1953 national elections, provided the proportional rep-
resentation system were retained.
To prevent what he regards as a trend of the government
to the right, Nenni allegedly believes an attempt should
be made to reduce fear of the extreme left. He fears that
his party would experience mass high-level defections and
might even face political suicide if it were to run on a
joint ticket with the Communists under the government's pro-
posed electoral law.
Comment: As recently as 14 June, Nenni told his party's
ceitra1;committee that the Socialists and the Communists would
campaign separately in the 1953 elections if the proportional
system were retained. The government, however, appears de-
termined to insure continued Christian Democratic control of
Parliament by pressing for passage of a law providing for
'majority representation by means of the bloc system,
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18. Italian neo-Fascists maintain uneasy unity in party
Y
congress: The neo-Fascist Italian Social Movement
Has main ained precarious unity in its first congress after
the spring' elections when., in alliance with the National
Monarchist Party in the south, it made heavy gains. Party
Secretary de Marsanich and a conservative group managed to
dominate the basically incompatible factions in the congress.
Fear of government suppression may have helped curb "extreme
rhetoric," the American Embassy believes.
While expressing preference for the "republican system,"
the congress left the way open for 'renewal of an electoral
alliance with the monarchists. It denounced the government's
land redistribution program, but advocated "organic agrarian
reform." The congress refused to support the Atlantic Pact
unless the Italian peace treaty is completely repudiated and
Italy regains all its lost territories.
The Embassy comments that, despite the "radical" tone
of MSI propaganda, the congress supported right-wing elements
on every issue. The Embassy believes that some extreme left-
wingers and also some monarchists ithdraw from the
party.
Conment: The neo-Fascists, in alliance with the mon-
arch s s, can count on the support of from 10 to 15 percent
of the total electorate. In the south their strength is
much larger.
The party's northern faction, intensely loyal to the
doctrines of Mussolini's war-time Social Fascist Republic,
is antimonarchical and favors a corporative economy. The
southern faction supports a political alliance with the monar- 25X1
chists and is generally conservative in economic theory.
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Swedish dollar imports cut: The Swedish press reports
that a reduction in dollar earn ngs has forced Sweden to
reduce its imports from dollar areas in the last half of
1952 from $90,000,000 to $70,000,000 or $80,000,000. The-
reduction will affect coal, chemicals, and copper, but not
petroleum. Since "gray dollar" imports and imports for the
armed forces are not included, actual imports may exceed
the contemplated figure.
The American Embassy estimates that a reduction of
nave "" i effects on the econdmy.""
I
Comment: Sweden had planned to import $200,000,000
worthy goods from dollar areas during 1952. The new plan
calls for a total of $160,000,000 to $170,000,000. The
fall in the demand for and the price of paper and pulp
largely accounts for the decline in Swedish earnings of
convertible currency.
Nicaraguan president to visit-Dominican Republic
General Som' .oza is planning a goodwill trip to the Dominican
Republic to greet General Rafael L. Trujillo. Somoza will
ask the House of Representatives for permission to remain
absent as long as necessary--" rry out this mission.
I
Comment: Somoza reportedly may attend the Dominican
presidential inaugural ceremonies on 16 August when General
Hector B. Trujillo, brother of the present President, will
assume office. He may be extended an invitation to visit
Haiti at this time, and reports also indicate'that he may
later undertake a goodwill tour of Panama and South American
countries.
The reported trip serves to emphasize once again the
close ties among military dictators in the Caribbean area,
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dollar imports on the, scale reported by the press could
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5 August 1952
CIA No. 49763
Copy No. 4
TOP SECRET SUPPLEMENT
TO THE CURRENT INTELLIGENCE DIGEST
25X1
25X1
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.
TOPSECRET
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TOP SECRET
THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL
DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE
ESPIONAGE LAWS, TITLE 18, USC, SECSO 793 AND 794, THE
TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN
UNAUTHORIZED PERSON IS PROHIBITED BY LAW,
1, Iranians planning to attend "Leipzig Economic Conference":
25X1
Irli Iranian committee e e y eg e to a oscow Econom c
Conference is preparing to attend a "Leipzig Economic Conference"
scheduled for early September as a follow-up to the Moscow confer-
ence,
25X1
Comment: The international trade fair at Leipzig, scheduled
for 7 1-0-IT-September, will afford an opportunity for renewed
Soviet trade propaganda, East German broadcasts have claimed
that the fair will permit Western representatives to see that the
Soviet bloc nations "are ready to trade in all directions."
2. French general details plan for airborne operation in Ind.
china: General Sa an, Frenc commander in n oc ana w o
s corm
renTy visiting France, told General Gruenther of SHAPE on 31 July
that under present conditions he could hold the Tonkin delta but,
because of a lack of transport aircraft, he would be unable to
strike an offensive blow at the Viet Minh. Salan stated that he
now has airlift for only one of his eleven parachute battalions;
he therefore needs sixty C-119's in order to drop six battalions
in the rear of a Viet Minh division on the northeastern edge of
th
,e delta perimeter.
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Comment: Ambassador Heath in Saigon reported recently that
Salan s~ipr `ncipal purpose in visiting Paris is to persuade offic-
ials there to send him transport aircraft and crews necessary for
offensive operations outside the Tonkin delta this fall and winter.
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According to Heath, Salan would be satisfied with a temporary
loan of additional men and materiel, thus obviating the need for
further discussions on more US aid to France.
The Viet Minh division referred to by Salan is presumably
the 316th.
NEAR EAST - AFRICA
3. Italy wants West to back nationalist aspirations in Middle
E
t
as
: T e Secretary General of the Italian Foreign Uffice, who
e~"lTeves that a serious situation in the Middle East has been
created by Communist exploitation of nationalist sentiments, states
that the West should assist rather than oppose these "nationalist
movements and aspirations." He based his recommendations on re-
ports from the Italian Embassies in Cairo and Tehran. 25X1
Comment: This proposal, along with Italy's constant urging
for t He popularization of a united Europe, demonstrates Italy's
belief that the West needs a more positive program to combat com-
munism effectively. It is also based on the desire to enhance
Italian prospects for industrial penetration of and emigration to
the Middle East.
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