- Sluglf-EIRL; Appmve?j 2.4 OGA DOS 3? April 1951 REVIEW . COMPLETED 25X gopy No. ?7 CURRENT INTELLIGENCE BULLETIE DOCUMENTNO. no CHANGE IN CW - T0 T5 9 :35. I - - 7'0- - 25x1 Office of Current Intelligence - CENTRAL INTELLIGENCE AGENCY -'Approved For rzo' 3. A Approved =or Release 2003/09/26 CIA-RDP79T00975A000200100001-7 SUMMARY .GEHERAL Draft treatyior Japan poses dilemma for lndia (page .3). FAR EAST US official comments on South Korean economic situation (page 3). Communist China's railroad to Indochina scheduled for early com- pletion (page 4) Hong Kong firms offer large shipments of trucks and tires to Commu? nist China (page 5). for Government of India official hopes "inept" Lie will not visit India (page 5) EASTERN EnEopE US Embassy may be linked to Clementis' case as a result of Oatis' arrest (page 6) 25x1 10. WESTERN EUROPE French Communists. will not support joint tickets in elections (page 3). French election in June "still possible". (page 8)n 25X1 . 12. West German Chancellor to delay extension of labor participation in management (page 9). 25X1 25X1 A Approved or Release 2003/09/26 CIA-RDP79T00975A0002C 0100001-7 2?f?/r??ved For Release 2003/09/26 CIA-RDP79T00975A000200100001-7 . GENERAL - - x?i Y?y?jii) 1. trait treaty 1301* Japan poses ciilemma for India: gig-f M: The US-prepos'ed treaty for Japan passes a dilemma for Indie: 'As champion of a free-Asia, India favors sn'eairly restoration of Japan?s independence; it islfaced, however, with Soviet determination not to participate in eJapane se peace settlement on 118 terms and. with US determination not/to, invite Cominunidt China. tn participate. As long age as Mini-171950,. Prime Minister Nehru told US Ambassador Jessup that India was prepared to negotinte a Japanese treaty Without the Communist nations once they hadrrefus?ed-to ?par- ticipateg Nehru's obsession with "risianismr and Indian anti-+Westernism, howeVer, will be stumbling blocks to Indian cooperationiin a prmfing a peace treaty for; Japan; - . - Trimmer 2. US Official Comments ongonth Korean economic Situationi- US Ambassador Muccio, commeting on the 25X1A Republic of Korea Government?s increasing awareness (at the serious in?atien and its efforts to combat it, States. that the Finance optimistic viewsa'on the size of the-deficit are not realistic .. 3 25X1A Appreved For Release 2003/09/26 3. ZM?/bved =or Release 2003/09/26 CIA-RDP79T00975A000200100001-7 and that the best that can be hoped for is a retardation of the present inflationary rate, The Ambassador singles out the heaVy rate of South Korean currency expenditure by the UN Forces (a total of Won 13'? billion by 217 April) as the most critical factor in the inflation, and adds that the withdrawal of currency from circulation by govern- mental action or sale of commodities and relief goods can in no way 7 offset this expenditure, The Ambassador cencludes pessimistically that the _"de1ay in activating the United Nations Korean Relief Agency and the premature diSestablishment of ECA leaves a void in the Korean economy which cannot be andis not being filled. Comment: As of 21 April, currency in'cir-? 'culation in the Republic of Korea had increasedto Wen 3'75 billion, 150 per cent over the December 1950 level. Although becoming increas- ingly critical, inflation has net yet reached the, stage Where the popu- lation has no faith in the currency or the government behind it, 25X1 Communist China?s-railroad to Indochina scheduled for early com? pletion: 25X1 - - 25X1A 25 Ithe last link of the railroad - how, being built by the Chinese Communists to the Indochina border is scheduled for comm pletion the end of April. arms and ammu- nition are already being moved along the railroad as tar as its present terminal point at Nanning (about 100 miles from the border) and carried from there to Ho Chi Minh'sforces in indochina by other meansof trans?' port. - - Comment: Completion of the final section of this rail line will link Indochina with'the Communist rail net extending from South China through Manchuria into the USSR and will provide a major transport artery for supplying the Communist'2forces in Indochina. Early completion of this section is expected, since most of the work on the roadbed has already been finished. The Chinese Communists are now engaged in laying the ties and rails. -4- 7 25X1A Approved For Release 2003/09/26 00001-7 25x1 AW =or Release 2003/09/26 tires. to Chm-tuner" 4--. HQ Kangfifmg.o?fer.1gr as?. me t' nist %h1n,a:t a - 25X1 - - - ,ssemmeht ThaUEEmbas tn . a ehtltet? that huh-retential quan. .2 1 ts: er trucksm enmggettgf?meagt?d 11 surplus-es are. available in India the newbie export "to? comma-tat Chinaa- Representatives. oiJ-Heng Kong refute. cmnehe . Cement-etha- are; known to be in gamete inertia-trio mattaahahh chase eameof ?lter/equipment. The ?~Emha??8y has amassed: methane!? that US efferte to. halt experts may remit-ea, by the State Department-ta the, GQYernment:o;f IndiaIndie ef?cial. heme, ?wage". Tryg?ve ma will not-mg?; 25X1A - A '7 I In, a US Ambassador in New Del-1e.? an 26 Aprils- eh: atriaehehhereajpat, geketzethiyh?eherelef the Miterhaintetry at? a . . . a rat etatedthat he the 1-1? . Tel/3Y9 1419;:- Secl'e'tary General of the united, Nations, m?dm?igi?md - With the near future as he mute hat-ta by" "ham ,5 aaidg?that?Lie hadheen um 1,113 1:115, MW daring ?311.1257 *9 ethereountrtes and/that the," Mahatma? time $1191!? he the teetee The Ambassador comments that while Meet-he Temarke may nonprehisely reiteet? the attithd'e? o: the' mam Getter-eme?nta he Pr?hahly-wquld not 'h'ay?e mad; than unless he ?iO?ght thee-approximated; the Viewa. at Prime, Miniate: Nehru; tit-:5! 25X1A . Approved For Release 2003/09/26 25X1 25x1 25X1A for promoting collective security, ZEp?c?'Aved For Release 2003/09/26 Comment; The US Ambassador has privately commentedthat India no longer considers the UN an effective instrument 25X1 Bajpai?s statements may be an additional indication of India's pessimism about the efficacy of the. UN- It shOuld not be assumed, however, that Indian disappointment with the UN necessarily means that India will withdraw therefrom in the near future.. EASTERN EUROPE I it US Embassy may be linked to Clementis' case as a result of Oatis arrest: According to a report allegedly originating with an official in the Czechoslovak Ministry of Information, Associated Press Bureau Chief Oatis was arrested becaUse of his activities, rather than those of the news agency itself Another scarce has informed the US Embassy in Prague that the Associated Press office may have been used, perhaps without Oatis' knowledge, as a rendezvous? for subversive groups with whiCh some of the Czechoslovak Associated Press employees may have been connected During the four weeks prior to Oatis' arreSt, three of these employees were apprehended by Czecho- slovak authorities and a fourth disappeared the same day Oatis did, The US Ambassador in Prague sugge that the Czechoslovak Government might use such reportedly subversive activity in an attempt to link the US Embassy to the alleged eSpionage activities of former Foreign Minister Clementis in a forthcoming trial 25X1A Approved For Release 2003/09/26 25)? Approved For Release 2003/09/26 Approved For Release 2003/09/26 CIA-RDP79T00975A000200100001-7 9.7 25X1A A%??Slr?d For Release 2003/09/26 WESTERN EUROPE WW - ,1 A French Communists Will not support joint tickets in elections: Etienne Fajon, the French Communist Party leader respensible for propaganda, and parlia; mentary and international questions, has told the PartyV-s Central Committee that in no cir- cumstances will the Communists present cann- didates in conjuncti'on'with another party in the forthcoming elections, including even extreme: left-wing sympathizers. Comment: This declaration is the first official stand taken by the French Communist Party regarding the approaching general elections, UnConfirmed reports in recent months indicate that the French; Communist Party will make as strong a bid as possible in the coming electoral campaign, avoiding: viOlent tactics. Reports from other sources indicate that the Party does not anticipate any increase in the number of, its seats in the National Assembly, French election in June "still possible'fzz Deepite the National Assembly's failure on 27 April by three votes to pass the electoral reform bill over the Council of the. Republic's veto, the US Embassy in iEar-is estimates that elections in June "appear still possible, This. estimate is-based on the assumption that the Assembly will agree to reconsider the bill next week, as recommended by a committeefollowing the adverse yete. Meanwhile, President Auriol has refused. to accept Premier Queuillei's?resignation, and the Cabinet has decided to try again.a . i . Comment: Approval of an electoral reform bill that would reduce Communist representation is necessary before Queuille can carry out hisg'program, which consists mainly of stopgap economic measures pending'the June electiOnso Partly because most 25X1A. Approved For Release 2003/09/26 CIA-RDP79T00975A000200100001-7 1 MMed For Release 2003/09/26 0100001-7' deputies realize that the present assembly is incapable of taking long- term measures to stem the mounting in?ation threatening French rearmament efforts, the government has a good chance of mustering the necessary additional votes for the electoral billo 25X 25X1 12. 25X1A .ri is West German Chancellor to delay extension of labor participation in i5 .mangement: The We st German Government considers the recent legislation granting coedetermination (labor participation in management) in the coal- - steel field a "special case"_ rather than a pre- cedent. Chancellor Adenauer is therefore anxious to resist pressure for early passage of legislation extending cat-determination either to all of industry or to individual sectors of industry. Fiederal policy will eventually entail support of a general all-industry cot-determination bill 25X1A - 9 Approved For Release 2003/09/26 25X't1 #316)th For Release 2003/09/26 granting far less voice to labor'than does the coal?steel laws in an attempt to maintain coalition solidarity at the expense of rejecting some labor demands; "But Adenauer will probably delay this. action, partly in order to secure trade union support for the Schuman Plan. Comment: Adenauer, in personally conducting last-minute negotiatiOns 'on. coal-steel co-determination, made many concessions to labor that have been strongly criticized by members of his own Coalition, He is likely to avoid?another showdown as long as possible - 19 25X1A Approved For Release 2003/09/26