CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A000700160001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: November 6, 2003
• Sequence Number: 1
• Publication Date: May 30, 1952
• Content Type: REPORT

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30 May 1952
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Copy No.
CURRENT INTELLIGENCE BULLETIN
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VMUMEN1 NO.
1410 CHANGE IN LASS.
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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State Department review
completed
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SUMMARY
FAR EAST
1, Communists may initiate new American atrocity propaganda theme
(page 3).
2. President Rhee determined to break Assembly opposition (page 4).
25X1 3e Portuguese foresee danger to Macao from any new export controls
SOUTH ASIA
6. India fails to reduce troop strength in Kashmir (page 6).
WESTERN EUROPE
7, Military announcements expected on East German People's Police
Day (page 7)0
8, Economic countermeasures seen most effective against East Germany
(page 7)a
9. British propose settlement for Saar issue (page 8),
100 MR P dissatisfaction with Pinay increasing (page 9),
11. American Minister in Switzerland against further blocking of Swiss
bank assets (page 9).
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FAR EAST
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1. Communists may initiate new American atrocity propaganda theme:
between October and December 1950, when the UN controlled most of
North Korea.
The defendants were charged
with the massacre, un er American direction, of over 35,000 Koreans
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trial of four Korean traitors began on
25 May in Pyongyang, , 25X1
Comment: Radio Pyongyang's coverage of
the trial began on 25 May and emphasized that the four defendants were
led by Americans.
The 29 May issue of Pravda carried an
article, based on an account in the sensationalist Indian journal Blitz,
of the alleged transportation of 20,000 Japanese prisoners to Central
Pacific islands in February just prior to announcement of new tests
of atomic weapons in the area. This article asserts that Korean and
Viet Minh prisoners were used as human targets in similar tests in
Nevada last year.
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2. President Rhee determined to break Assembly opposition:
apparently estimates this may take two weeks. He is using General
Van Fleet's name to justify ignoring UNCURK and the Assembly's de-
mands for an end to martial law. Rhee has plans to give the illegally
imprisoned Assemblymen.a summary trial under martial law.
e erm a on to ma n atn martial law in Pusan until he has broken the
resistance of the political opposition in the Assembly. The President
American Charge Lightner in Pusan concludes
that the conference between the UN. Commission
for the Unification and Rehabilitation of Korea
and President Rhee, has not changed the latter's
3. Portuguese foresee danger to Macao from any new export controls:
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China would lead to a complete halt of all trade, with "very serious con-
sequences" for the colony.
Portuguese officials, now meeting with
other Western delegates in Paris to discuss
export controls, have stated. that stopping
strategic exports from Macao to Communist
Present export controls at Macao are the
maximum which can be contemplated, according to the Portuguese dele-
gation. Macao authorities, in fact, are recommending to Lisbon a
relaxation of the present regulations rather than the imposition of ad-
ditional measures.
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SOUTH ASIA
6. India fails to reduce troop strength in Kashmir:
The American Embassy in New Delhi has
learned
that the withdrawal of 18,000 of the
152.,000 din- troops in Kashmir, previously
reported to be to process," has not yet commenced. In fact, recent
troop transfers may have effected a net increase of three battalions.
Though Pakistan has only 19,000 soldiers in
Kashmir, an Indian External Affairs officer asserts that recentbellicose
statements made by Pakistani officials caused India to reverse its earlier
decision to withdraw a division of its forces from the state.
Comment: In preparation for the current
talks in New York with UN Representative Graham, India has empha-
sized the concession represented by its voluntary withdrawal of an
army division from Kashmir and the conciliatory attitude illustrated
thereby.
Since Pakistani officials have issued bellicose
statements during every Kashmir crisis in the last four years, it is
doubtful that the Indian excuse is genuine.
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WESTERN EUROPE
7. Military announcements expected on East German People's Police Day:
Alert Police, pre-m i ary training for the Free German Youth organni-
zation, and possibly a national army.
expect that
over the week end of ay- une the Ger-
man Democratic Republic will announce an
overt recruiting campaign for the para-military
Comment: East Germany has designated
1 June as the "Day of the People's Police." The Fourth Parliament of
the Communist youth organization is meeting in Leipzig at this time.
Economic countermeasures seen most effective against East Germany:
effectiveness of such measures. While discounting the efficacy of any
local economic countermeasures by the West, HICOG officials believe
that economic retaliation on a global scale would be most effective, and,
particularly in its financial aspects, could be most easily enforced.
The High Commissioner's office in Berlin
believes that General Chuikov's protest
against the blocking of East German ac-
counts in American banks testifies to the
These reports suggest not only a desire on
the part of the East Germans to avoid future losses through the freezing
of accounts, but also supports the contention that East Germany would be
hurt by a major interruption of its trade with the West.
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9. British propose settlement for Saar issue:
As a means of settling the Saar dispute, British
Foreign Secretary Eden proposes that:
(1) the Saar be placed under the trusteeship of
the Council o Europe with full political, cultural, and economic freedom,
except that France would continue to have a 50-year lease, with option of
renewal, on coal fields and railways, and would receive credit for iron
and steel output under the Schuman Plan;
(2) the Saar become the seat of the projected
European authorities;
(3) France and Germany agree to these
arrangements without prejudice to the final determination of German
frontiers in an eventual peace treaty; and
(4) the Council of Europe supervise the election
of a new Landtag, which would then pass on these proposals.
Eden further suggests that, if all parties con-
cerned agree to these steps, the Saarlanders themselves could within
five years decide their future.
Comment: The British position regarding the
Saar has been that the United States and Britain should discreetly press
for settlement before greater French-German animosity developed over
this issue.
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10. MRP dissatisfaction with Pinay increasing:
The American Embassy in Paris reports that
the recent Congress of the Popular Republican
Party (MRP) was marked by "scathing denunci-
ations" of the "reactionary policies" of the
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inay government. Even the newly elected party president expressed
regret at MR P participation in the government.
Despite this opposition, however, the con-
servative majority of the party voted by a large majority to allow Pinay
to continue his price-lowering experiment.
Comment: This new display of unrest in the
Popular Republican Party, re ecting increased dissatisfaction with the
party's exposure to attack from the left, gives added weight to its de-
mands that Schuman remain in the cabinet as a condition of continued
Popular Republican support of the coalition.
11. American Minister in Switzerland against further blocking of Swiss bank
assets:
The American Minister in Switzerland opposes
any further blocking of Banque Populaire funds
in the United States in retaliation for the bank's
handling of Chinese Communist accounts. He
ther action be postponed until it is conclusively
proved that the bank has other Chinese Communist accounts.
The Minister believes that the blocking of any
more of the bank's assets would adversely affect Swiss consideration of
further participation in the European Payments Union, the extension of
Swiss controls over East-West trade, and the German assets problems
now under discussion.
The blocking of additional funds now could
make this incident the central issue in the June session of the Swiss
Parliament, which plans to study the problem.
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