CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000100140001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: September 25, 2003
• Sequence Number: 1
• Publication Date: February 21, 1951
• Content Type: REPORT

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Copy No. IV
21 February 1951
CURRENT INTELLIGENCE BULLETIN
Working Paper!!!
Dry Ruh Only
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ASS.
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17
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
State Dept review(s) completed.
TOP SECRET
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SUMMARY
GENERAL
1. US Embassy Moscow questions reported Soviet plan of diplomatic ac-
tion (page 3).
USSR
2. Ministry of Timber and Paper Industry reorganized (page 3).
EASTERN EUROPE
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3. All Satellites have trade delegations in Moscow (page 4).
WESTERN EUROPE
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7. French fear German insistence on full sovereignty (page 6).
8. Italians challenge AMG authority in Trieste (page 6).
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GENERAL
1. US Embassy Moscow questions reported Soviet plan of diplomatic ac-
tion:
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In commenting on a recent report con- 25X1
cerning the Soviet plan. for future diplomatic
action (see Current Intelligence Bulletin 15
Feb 51), US Embassy Moscow expresses doubt that the USSR will de-
nounce the military clauses of the Satellite peace treaties and that
Poland and Czechoslovakia will break diplomatic relations with the
West, since (a) a denunciation of the military clauses would invite the
West to denounce similar clauses in the Italian peace treaty and the
Potsdam Agreement, and (b) the current anti-Western campaign in
Poland and Czechoslovakia is more probably designed to force the US
to take the initiative in. suspending relations. The Embassy points out
that this technique was used in Bulgaria and that the USSR apparently
feels it an advantage in its relations with Satellite peoples to make
the suspension of diplomatic relations appear to have been initiated by
the West.
Comment: Recent Soviet propaganda has
charged that the Franco-Italian Santa Margherita conference dealt
with liquidating the military clauses of the Italian peace treaty.
USSR
2. Ministry of Timber and Paper Industry reorganized:
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Orlov and the other by Ivan Voronov.
Comment. In two respects this action is
similar to the recent reorganization of the Ministry of Metallurgy: it
restores the organizational form that existed during World War II and
up until April 1947, and it involves no radical shift in personnel (Orlov
"Tass" has announced the division of the
Ministry of the Timber and Paper Industry
into two ministries, one headed by Georgi
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was minister of the combined organization and Voronov one of his dep-
uties). The move was probably prompted by a need for greater effi-
ciency, as the Ministry of the Timber and Paper Industry has a long
record of failing to meet plan quotas.
EASTERN EUROPE
3.
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All Satellites have trade delegations in Moscow:
line with the progressive integration of the Soviet economic bloc, rather
than drawing up new bilateral agreements or routine supplements to
long-term pacts.
US Embassy Moscow reports that all Eastern
European Satellites now hr--,,7 special. trade dele-
gations in Moscow, probably for the purpose of
working out multilateral trade arrangements in
Comment: In early 1950 there was a similar
gathering of Satellite foreign trade representatives in Moscow, pre-
sumably in connection with the Soviet-inspired Council for Economic
Mutual Assistance.. Since an announcement of the fifth Soviet Five Year
Plan may soon be forthcoming, it is possible that fairly long-term objec-
tives will be laid down during this year's discussions.
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7. French fear German insistence on full sovereignty:
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Recent conversations with German officials have
reinforced French Foreign Ministry fears that
Chancellor Adenauer may der 7.nd. full sovereignty
before making any commitments on West German
defense contributions. The French. recommend an early US request for
a German proposal on contractual arrangements, to be followed by a
tripartite statement on the question of. sovereignty in order to counter-
act what the French consider a "dangerous drift" in the Federal
Republic's position.
Comment: The French have heretofore recommended
placing all reserved powers on a contractual basis, but are firmly op-
posed to a transfer of complete sovereignty. Although the Germans will
hold out for substantial concessions on political and industrial controls,
Adenauer may riot insist on the transfer of full sovereignty unless inter-
nal SPD opposition forces such a_ stand.
8. Italians challenge AMG authority in Trieste:
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I reports accumulating
evidence that the Italian Government has in effect adopted
the thesis which holds that Italian sovereignty still ex-
tends over Trieste, while the Allied Military Govern-
ment has only limited occupying authority. Over the past
six months, this policy has been asserted on numerous questions involving
the issue of sovereignty. Most recently, the Italian Mayor of Trieste,
with the support of the Italian Mission there, has challenged the Allied
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Military Government's authority and implied that future activities of
local pro-Italians will be guided by the thesis of Italian sovereignty.
Allied Commander General Airey, who feels the situation is becoming
"intolerable," has asked that a joint US-UK demarche be made to the
Italian Government urging. it to abandon a policy which is dangerous
and "both legally and politically indefensible."
Comment: The Italian Government's increasingly overt
attempts to assert its sovereignty in Trieste are probably motivated by
growing indications that. public sentiment in Trieste favors maintenance
of the status quo in the city rather than a return to Italian economic and
.political controls, and by fears that the tripartite proposal of 1948 advo-
cating return of the whole Free Territory to Italy has been jettisoned in
favor of a compromise with Yugoslavia.
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