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,ftive*
15 May 1951
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CURREN:: INTELLIGENCE I3ULLETIN
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Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
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elITVA 3. Plight of American community in Shanghai Wage 4).
SOUTH ASIA
4i-P-4-40b-42,4-646* . Afghanistan reports failure in talks with Pakistan (page 5).
iFT
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3.3(h)(2)
3.3(h)(2)
EASTERN EUROPE
�714**-A7. Unrest reported in Polish coal fields (page 6).
ArnvtAw-4 8. Labor unrest widespread in Rumania (page 7).
H5?-)ti,l4.0 9.
10.
WESTERN EUROPE
French demur at increasing their proposed grant to Yugoslavia (page 8).
Magnani-Cucchi movement to support Christian Democrat-dominated
coalition in Italian local elections (page 8).
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3. plight of American community in Shanghai: 3.3(h)(2)
A leader of the American comMunity in Shanghai
reports that "almost all" US4aattonals have-
decided that it is useless for them to remain
longer in Communist China, and states that
it is futile to attempt to protect US interests in Shanghai. This spokes-
man, believing that almost all Americans in Shanghai would leave if
they could, suggests that the US Government consider attempting to
arrange a mass evacuation of the approximately 100 Americans remain-
ing in the city. However, the 'US'Consul.43ferrera111/4Fong Kong doubts
that the Communists would permit such a mass evacuation.
Comment: This information is confirmed from
other sources. The Consul General in Hong Kong is probably correct
in concluding that the Communists would not permit a mass evacuation,
While the majority of Americans now in Shanghai will probably be per-
mitted to leave, unreasonable claims have been made against several,
others have been arrested for "espionage, " and further extravagant
claims and arrests are expected.
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5. Afghanistane failure in siaah, Pakistan:
Afghan For Min
lAtbul Circular
6"May 51
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The Afghan Foreign Ministry has informed
its embassies and legations that the informal
but government-sponsored talks between
Afghanistan and Pakistan had broken down
as of 6 May. The Foreign Minister asserts
that it has refused to accept the concept of Pakistani sovereignty over
the Pushtu tribes (closely related to and practically identical with the
Afghan tribes) residing in the Northwest Frontier Province of Pakistan.
The Afghan Foreign Ministry concludes with the statement that until
Pakistan agrees to discuss this Pushtu problem, Afghanistan will not
agree to the exchange of ambassadors for to stop its propaganda against
Pakistan.
Comment: The Afghan Foreign Ministry's
blunt report indicates that there is no softening in the attitude of either
government. There is no evidence to indicate that progress toward
a settlement may be expected. �
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.EASTERN EUROPE
7. Unrest reported in Polish coal fields:
The US Embassy in Warsaw reports
4nrest, sabotage and strikes in the Dabrowski
coal region in Southern Poland. The miners
are dissatisfied with the increased produation norms and working hours,
but have reportedly been forced to accept the new conditions. The
Embassy points out that Polish coal production should be adversely
affected by this development and concludes that, since the government
will probably be unwilling to reduce the present tempo of its industriali-
zation program, it may have to curtail coal exports to Western Europe.
3.3(h)(2)
Comment: This 'report of unrest among the
coallminers, like the recent reports of strikes by dockworkers in
Stettin, illustrates the restiveness of the Polish population. A large
measure of this unrest is traceable to the greatly reduced standard of
living resulting from revaluation of the zloty last fall. The Polish
Government, faced with deteriorating coal mining machinery and large
commitments for foreign coal deliveries (ten million metric tons for
1951 to Western Europe), has endeavored previously to increase coal
production by making various concessions to the coal miners. In addi-
tion, Army recruits have been formed into labor battalions and used
in the coal mines in an effort to maintain production (estimated at 76
to 78 million tons for 1950). Curtailment of Polish coal deliveries to
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Western Europe will reduce the amount of strategic materials Poland
can obtain. Polish trade negotiations with Western European countries
during the past six months have revolved in most cases around the
question of what strategic materials Western Europe would barter for
Polish coal.
8. Labor unrest widespread in Rumania:
3.3(h)(2)
The US Legation in Bucharest reported in a
10 April despatch that the Rumanian Govern-
menes drive to whip labor into line is faced
with continuing difficulties. The most specta-
cular Manifestation of unrest was a "symbolic" strike of Bucharest
railway workers in March, which affected a small section of local rail
services for only a few hours and was reportedly caused by the removal
of ration privileges formerly granted to railway workers. When the
Vice Premier and Secretary General of the Workers' Party addressed
a mass meeting following the demonstration in an attempt to, bolster the
morale of the railway workers, he was booed and heckled. Order was
restored by the militia and numerous arrests were made. The Legation
adds that the mass firing of white-collar workers in government bureaus
and enterprises has added considerably to general labor discontent.
The Legation comments that such manifesta-
tions of dt:ssatisfaction will lead only to stronger repressive measures
accompanied by a heightened propaganda campaign urging workers to
redouble their efforts in the struggle for "peace,"
Comment: Information from the East European
Satellites points to widespread labor discontent in the face of increasing
Communist production quotas, which are not accompanied by any improve-
ment in the standard of living. This discontent, however, lacks any
effective means of expression and has thus far been effectively met by
Communist measures which are largely of a repressive nature but which
occasionallyInvolve minor concessions.
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. French demur, at increasing their proposed grant to Yugoslavia:
3.3(h)(2)
The French Government intends to take up
the Yugoslav economic aid question on the
governmental level in Washington and London
this week. In the course of the tripartite talks
on this subject in London, the French Government had reluctantly agreed
to grant $13 million (10 percent of the total from the US, the UK and
France) to Yugoslavia because it considered it essential to associate
France with the US and the UK in this project. Developments in the
Lond n conference now indicate that the French may be asked to in-
crease their contribution to $24. million, a sum which the Foreign Office
feels is beyond current French capabilities. The Foreign Office, fear-
ful lest the US and the UK go ahead without France, has made a strong
request to the US Embassy in Paris that no final decision be taken at
the London discussion� prior to the French Government's approach t9
Washington and London.
Comment: French acceptance of the principle
of grant aid included a statement that France could not be expected to
give much more than the $8 million minimum originally suggested.
Despite French sensitivity on the point of French prestige, Premier
Queuille's desire to leave a free hand for his successor will probably
prevent any greater French commitments now, and the increasing bur-
den of the defense effort will limit the possibility of a larger contribu-
tion when the new Assembly meets in early July.
/
10. Magnani-Cucchi movement to support Christian Democrat-dominated
coalition in Itplian local elections:
3.3(h)(2)
The Movement of Italian Workers, headed
by Magnani and Cucchi, has decided not to
run candidates in the forthcoming local
elections but to allow its members to support
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those candidates "nearest to its principles and program.". In certain
localities its members are not even opposed to affiliating with the
Christian Democrats in order to defeat the Stalinist Communists.
Cucchi himself has reportedly been striving to persuade certain Socialist
elements in Bologna to work out an electoral agreement with the
Christian Democrats.
Comment: The Magnani-Cucchi movement's
active Support of the anti-Communist electoral coalition in Bologna and
in other nearby localities should improve the government's chances of
wresting control of many municipalities in the region of Emilia from
the Italian Communist Party.
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