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G-2 PERIODIC REPORT From: 070800/I Oct 47 To : 080800/I Oct 47 Confidential Headquarters, USAFIK Seoul, Korea 1060/I 08 October 1947 No. #653 MAPS: KOREA, 1/250,000 Eastern ASIA, 1/1,000,000 DECLASSIFIED Authority NND 745070 By [illegible] NARA Date 4/12/2014 SCREENED NW 28709 By JIKS Date 3/12/[illegible] 1. OPERATIONAL INTELLIGENCE None. 2. NON-OPERATIONAL INTELLIGENCE None. 3. COUNTERINTELLIGENCE a. Sabotage - None reported. b. Espionage Detective Arrested For Aiding Leftists Escape Apprehension A MOKPO (930-1300) police detective, KIM Po Dong, has been arrested for alledged cooperation with leftists, according to provincial police. KIM is accused of tipping off leftists who were about to be arrested and thereby allowing them to escape apprehension. (CIC S/I, 03 Oct. B-3) c. Terrorism - None reported d. Secret Organizations - None reported. e. Communications Interceptions Mail Interceptions (1) Rightist Puts "Finger" On Left-Wing Chairman A KYONGSANG-NAMDO rightist with NORTHWEST KOREAN YOUTH ASSOCIATION affiliations has put the "finger" on a PUSAN left-wing party chairman, LEE Chin Dal, in a letter which states, "...he must be abducted and detained". LEE is described as "very dangerous to us at this time and he is the person to set off the riot against us". LEE, who is living incognito, is revealed to be in PUSAN at a friend's address. (SEO/1850) (2) AVIATION CONSTRUCTION ASSOCIATION Claims 1400 Members A 30 September letter, addressed to a KWANGJU constabularyman, describes the membership rolls of the AVIATION CONSTRUCTION ASSOCIATION as totalling 1400 "air members". The letter, which bears the association's return address in SEOUL, carries a statement of purpose for the group: "Our object is the progress of aeronautics under the leadership of airmen of good standing". COMMENT: No political affiliations are revealed in this letter and it easily may be that none exist for the association. Almost the only "air members" (flying personnel) which this association could have, would be ex-members of the Japanese air force. There has been no flying carried on in KOREA by Koreans since the American occupation. (SEO/5578) (3) Right-Wing Farmers' Union Organizing New Chapters Organization of outlying chapters of the right-wing KOREAN INDEPENDENT FARMERS' GENERAL ALLIANCE, an offshoot of the right-wing GENERAL LABOR LEAGUE FOR KOREAN INDEPENDENCE, is "progressing quite favorably", according to a letter in- DECLASSIFIED Authority NND 745070 -1- Confidential XXIV CORPS G-2 P/R #653 Confidential terception dated 28 September. The SOONCHON-KUN (coordinates unknown) branch was formed 25 September, the KUIE-KUN (coordinates unknown) branch on 27 September and at the time of writing the KWANGYANG-KUN branch was scheduled to be formed on 02 October. The letter-writer also asserts that other districts of CHOLLA-NAMDO are preparing to form. (SEO/5580) COMMENT: THE KOREAN INDEPENDENT FARMERS' GENERAL ALLIANCE is a new offspring of the old GENERAL LABOR LEAGUE FOR KOREAN INDEPENDENCE, the leading rightwing labor union. Union officials recently organized the former, with the latter' financial support, on a national scale when they saw the benefit which the party would accrue from a singular group of organized farmers. Previously the GLLEKI had included organized farmers in with organized laborers. Now right-wing farmers and laborers have their separate organizations. (SEO/5580) (4) Communists Going Right-Wing In a 01 October letter a KUMCHON-LI (910-1780), CHUNGCHONG-PUKTO resident reports, "Communist party members are apparently turning rightist except for the top staff members". (SEO/5582) (See par 4b (1)). 4. CIVIL RELATIONS a. Civil Unrest 100 Leftists Attack 15 Rightists Approximately 100 leftists attacked 15 rightists in CHANGWON (1161-1365) on 30 September, according to a delayed American patrol report. Quick police action prevented any injuries. Four men and three women, all communist agitators, are being held by police pending trial. (6th Division P/R #714) b. Political Parties and Other Organizations (1) Leftists Carry Faked Expulsion Certificates Officials of the communist SOUTH KOREA LABOR PARTY are reported carrying forged expulsion certificates which they show, when apprehended by police, as evidence that they are no longer members of that communist element. (CIC S/I, 06 Oct. Police Report) (2) Communists Cry that Elections Will Be "Undemocratic" Officials of the communist KOREAN DEMOCRATIC PEOPLE'S FRONT state, according to police observers, that the anticipated election would not democratically be run off since so many of the FRONT members are now in prisons throughout South KOREA. (CIC S/I, 04 Oct. Police Report) (3) LABORING PEOPLE'S PARTY Splitting Up The weak remainder of the late LYUH Woon Hyung's leftish LABORING PEOPLE'S PARTY held a three-meeting series last week in which the division of the party was discussed. The leftist faction within the party has decided to follow the communist SOUTH KOREA LABOR PARTY while the middle-of-the-roaders have not yet decided whether to continue as the LABORING PEOPLE'S PARTY or to reform under the proposed title of the NATIONAL SOCIALIST PARTY. This proposed division would weaken the communist KOREAN DEMOCRATIC PEOPLE'S FRONT, a B-2 informant states. Because of this threat to the FRONT, communists may step in and attempt to mould any action which might be taken by moderate leftists who remain in the party. These moderates are reportedly in need of one million yen to finance their party choice. (CIC S/I, 06 Oct. B-2) COMMENT: Since LYUH's death on 19 July his old LABORING PEOPLE'S PARTY has steadily declined in membership, finances and activities. A further division at this time will only serve to weaken it all the more. It is doubtful that even a new name and the required one million yen would set this group of remaining moderates up as the political threat to any faction. Their strength could best be used by the two prominent middle-of-the-road-organizers, Dr. KIM Kyu Sik or AN DECLASSIFIED Authority NND 745070 -2- Confidential Confidential XXIV CORPS G-2 P/R #653 Choi Hong, both of whom are currently attempting to organize South KOREA's political moderates. (See par 4b/3/ & /4/, P/R #651). (CIO S/I, 06 Oct. B-2) (4) Dr. KIM Kyu Sik's New RACIAL FREE ALLIANCE Launched In launching his new NATIONAL INDEPENDENCE FEDERATION (see par 4b/4/, P/R #651), Dr. KIM Kyu Sik, speaker of the Interim Legislative Assembly, told an invited audience of 185 guests, newspapermen and observers that the party would be dedicated to the merger of all political parties and persons with the same aims and ideas (middle-of-the-road). Dr. KIM said he has tried to achieve two things in the past: (1) cooperation of the left and right and (2) unification of North and South KOREA. He claims he has failed because of the failure of the leftists to cooperate. Such prominent moderate leftists and middle-roaders as Dr. KIM; AN Chei Hong, Korean civil administrator; LYUH Woon Hong, Interim Legislative Assembly member and chief of the small leftish SOCIAL DEMOCRATIC PARTY; and YOON Ki Sup, vice-speaker of the Interim Legislative Assembly, are on the committee which will form the new organization's platform. (CIC S/I, 03 Oct) (5) General LEE Emphasizes Importance of Korean Friendship With the UNITED STATES In a recent speech made before an audience of 300 members of the newly formed right-wing youth front, the UNITED YOUNG MEN'S PARTY, General LEE Chung Chun (see par 4b/5/, P/R #651), emphasized that friendship with the UNITED STATES was of the utmost importance to all the Korean people. (CIC S/I, 01 Oct) (6) Leftists Adopt "Good Neighbor" Policy CHONGJU (1040-1530) leftists have adopted a "Good Neighbor" policy. Staff members of the local KOREAN DEMOCRATIC PEOPLE'S FRONT have issued orders that all leftists must associate with their neighbors and must oblige them with any possible favor. They feel that eventually these subtle forms of propaganda will win the neighbors over to the left-wing cause. (CIC P/R #659) (7) Leftists Plot Long-Range Overthrow of SKIG Provincial police in KWANGJU (1010-1630) claim that because the US-USSR Joint Commission is at a standstill, and because of the complicated international situation, an underground security force is being formed by the leftists to overthrow the South Korean Interim Government. This security force would be patterned after a like North Korean group. (8) UNITED YOUTH FRONT Forms In CHEJU The CHEJU (950-1150) branches of the right-wing KWANGBOK YOUNG MEN'S ASSOCIATION and the right-wing ALL KOREA YOUNG MEN'S ASSOCIATION FOR ACCELERATION OF INDEPENDENCE have united under General LEE Bum Suk's right-wing front to form a single UNITED YOUNG MEN'S PARTY chapter in CHEJU. (CIC P/R #659) (9) Highlights of the 150th Session of the Interim Legislative Assembly TCH'EI Dong O, vice-speaker, called the 150th session of the Interim Legislative Assembly to order at 061350 October. Sixty-nine members were registered as present. An attendance level of approximately 55 was maintained through most of the session. The chief secretary read a letter from the acting military governor, whic requested the enactment of a law of nationality for South KOREA, pending unification of KOREA, for the purpose of devising a test of Korean nationality. Reason for such a law is so that Korean and Japanese nationals can be distinguished in connection with the vesting and non-vesting of property. Copies of this letter were distributed to the members and discussion on this requested legislation will be had at a later session. Since farmers in southern KOREA are constantly complaining about the vast difference between the government ceiling price of rice and the actual farming DECLASSIFIED Authority NND 745070 -3- Confidential Confidential XXIV CORPS G-2 P/R #653 and living costs, YOON Sawk Koo, elected rightist from CHOLLA-PUKTO, suggested that the chief of the Office of National Price Administration be invited to speak to the Assembly and explain the basis on which the present ceiling price was established. This suggestion was accepted by a vote of 37 to 0 with 16 abstaining. Scheduled on the day's agenda for the first reading was the proposed South Korea Interim Government budget for April 1947 to March 1948, as prepared by the Department of Finance. Copies of this proposed budget (in book form) were distributed to the members a couple of months ago. At that time, due to lack of comprehension, the Assembly requested a written explanation from the Department of Finance but were advised of difficulties involved in preparing such a document. The vice-speaker then announced that H. B. YOON (YOON Ho Byung), director of the Department of Finance; and HONG Hun Pyo, chief of the Bureau of the Budget, were present to explain the proposed budget. Several members excitedly objected to any oral explanation and insisted that budgetary explanations be presented in written form. Other members urged the members to listen to the government officials. H. B. YOON then stood on the tribune and spoke on the difficulties of the time and lengthiness of script involved in submitting such a written statement. Several Assembly members accused the director of inability to answer budgetary questions, and then pointed out that a written explanation could readily be prepared by asking the departments concerned to submit their own necessary written information. After a short discussion, YOON stated that he would have a written explanation prepared and submit same to the Assembly within 10 days. Session was adjourned at 1645. Next session was scheduled for 071300 October. c. Korean Press (1) Russian Threat Seen By SK Planners Members of the Bureau of Foreign Affairs and the National Defense Committee of the Interim Legislative Assembly are reported by the moderate leftist SEOUL SHINMUN daily newspaper, claimed circulation 65,000, to have advanced a four-point defense proposal which will be submitted to the Interim Legislative Assembly. The four-point proposal embraces the following: (1) that the present Korean constabulary and coast guard be the future army and navy of KOREA, (2) both services be armed with American weapons in order to be able to carry out full military duties, (3) a larger building be given the constabulary for their headquarters and that proper billets be erected for the men, and (4) that the budget for the constabulary should be greatly increased. COMMENT: Unsaid by the SEOUL SHINMUN, but obviously implied in the report, this is the South Koreans' answer to RUSSIA's co-withdrawal proposal. Koreans in South KOREA want to prepare themselves for the almost-inevitable civil war which would follow any withdrawal of foreign troops which might be made in the immediate future. North Korean forces are well-equipped, for Oriental troops and many units have been battle-trained in the Chinese civil war where they fought alongside the Chinese Eighth Route communist army. Such armed might, which could be kept intact after the Russians leave North KOREA even though it meant withdrawal into MANCHURIA for an interim period if the UNITED NATIONS should call for the disbandment of this force, would be an obvious and ominous threat to a South KOREA bare of American troops. A report from a B-2 Source states that General LEE Chung Chun is now attempting to gather the South KOREA Constabulary under his wing as a nucleus for his "Army". (2) Translations of SEOUL Newspapers (See Incl. #1) 5. INTELLIGENCE CONCERNING ADJACENT AREAS None. 6. MISCELLANEOUS None. DECLASSIFIED Authority NND 745070 -4- Confidential