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SOUTH KOREA SECRET From: 011200/I Oct 48 To : 081200/I Oct 48 Headquarters, USAFIK Seoul, Korea 8 October 1948 No. 160 MAPS: KOREA 1/250,000 East ASIA, 1/1,000,000 A. ARMED FORCES 1. Strength (Secret) Police: No change Constabulary: 50,224 (including 1,058 cadets, 467 recruits and 1,079 absent without leave, missing or absent Coast Guard: 3,013 (including 209 cadets) 2. Operational Activity (Confidential) Border Incidents On 04 October South Korean farmers of UP CHONGDING (934.9-1696.2) reported that 4 or 5 North Korean Constabularymen had violated the parallel at (934.6-1696.6). South Korean police, investigating the report at 041715 October, observed the NKC north of the parallel at (934.9-1697.1). When the police opened fire on the NKC a firefight developed which finally involved about 40 on either side and centered about KUNSANGDONG (934.8-1697.2). One policeman was reported wounded. (B-2) At 051500 October approximately 30 North Korean Constabularymen violated the parallel near TAEKUK-NI (1090-1696) and attacked a 3-man police patrol. Both sides obtained reinforcements and the firefight continued until 052130 October. (B-2) At approximately 061900 October 15 NKC crossed the parallel in the same vicinity and abducted 8 South Korean families (about 40 people). (C-2) At approximately 081030 October 4 NKC fired 6 rounds at an American soldier at UP #10 (935.3-1696.5), wounding him twice. (B-2) [TABLE] Border Incidents Korean vs Korean 4 6 4 6 2 3 3 2 3 2 4 3 1 2 2 47 Firing on US Personnel 1 2 1 2 1 1 1 1 1 2 6 11 20 Ambushes of US Personnel 1 1 Soviet Violations of Parallel* 1 1 2 Korean Violations of Parallel* 2 1 1 1 1 1 1 1 2 10 Soviets vs Koreans 1 1 1 3 TOTAL 7 8 6 7 4 6 2 3 4 4 3 5 5 2 5 1 7 5 83 * No firing involved 3 SECRET DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #160 PART I B. CURRENT INTELLIGENCE SECRET 1. National Assembly a. Discussion on the Local Administration Bill opened on 02 October. The Bill provides for appointment of provincial governors by the president and appointment of local authorities by the governors. This provision of the bill is distasteful to a great many of the members of the Assembly and the bill has made little progress. Meanwhile, the Cabinet, invited to speak to the Assembly 04 October, to elaborate on their policies, began appearing before the members during the afternoon session. All of the Ministers have appeared except the new Minister of Transportation, who asked for more time. COMMENT: The Minister of Foreign Affairs, through his Vice Minister, told the Assembly that he would not address them until after the meeting of the United Nations General Assembly. This statement of the Minister aroused considerable resentment in the National Assembly and the Minister was asked to appear personally to answer the summons of the Assembly. This he did 06 October, but presented nothing concrete. b. The Grain Purchasing Program, sent to the President 30 September, was returned to the Assembly 06 October with comments from the President. RHEE did not insist that the rider concerning transportation of grain be removed but suggested placing authority for the determination and operation of the program in the hands of the President. This suggested clause, in part, states "the producer and the land owner, after reserving food for his own consumption, should sell to the Government as determined by the President." The transportation rider provides that a small quantity of grain can be transported, bought and sold. The bill, carrying the President's clause and the transportation rider, on 06 October passed by a vote of 80 to 32 and was forwarded to the President. COMMENT: Ordinance 212 will remain in effect until the bill is signed. If the Grain Purchasing Program is promulgated, the Koreans will again be able to transport and trade in rice in whatever "small quantities" the President prescribes. These opportunities for transportation and consequent speculation were not afforded by Ordinance 212. (W/S #159) 2. Changes in the Cabinet The following changes were made in President RHEE'S Cabinet during the period: (1) HO Chung on 04 October replaced the Minister of Transportation MIN HI Sik who was the incumbent at the time of the railway accident which took 36 American lives. The Minister of Public Information stated that MIN resigned in accordance with the Oriental practice of expressing regret and responsibility for serious misfortunes. It is more probable, however, that MIN resigned largely as a result of the public pressure for his resignation, evident in the press and the National Assembly (W/S #158 page 6). COMMENT: Thirty-six American lives were lost in the wreck rather than 52 as erroneously reported in W/S #158 page 6. MIN's successor, HO Chung, was elected to the National Assembly on the HANKOOK DEMOCRATIC PARTY ticket. According to sources in the government, HO is generally respected and is regarded as conscientious, persevering and "pro-American." (2) KIM Soo Hak, a banker, was named Vice Minister of Commerce and Industry on 04 October. KIM Hun Hwan, Minister YIM's (Louise) appointment and uncle, was never approved by RHEE. 4 SECRET DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #160 PART I 5. Civil Unrest a. Communist Activity (1) During the reporting period, the number of reports received concerning communist propaganda, recruiting by the SOUTH KOREA LABOR PARTY, the reorganization of cells, and the initiation of strict security measures, indicates that the communists are increasing their activities along these lines. (2) The following reports concerning dates for communist riots and disturbances have been received during the period of this report; these are in addition to those reported previously (W/S 157 & 158): (a) "Between 04-07 October, a general fight is to be started. This will consist of a poster campaign, demonstrations, bonfires, and attacks on police boxes." (A-3) (b) "On 07 October 1948, the SOUTH KOREA LABOR PARTY plans to instigate riots and strikes in and near TAEGU, KYONGSANG PUKTO." (B-2, B-3) (c) "The SOUTH KOREA LABOR PARTY intends to carry out large scale riots and disturbances during 07-11 October. If disturbances cannot be held during this period, they will be postponed for 5 day periods until a favorable time arises." (B-3, C-3) (d) "Leftists are planning to cause uprising in CHUNG-CHUNG PUKTO on or about 15 October 1948." (B-2) (e) "Communists plan to sabotage the alternate Seoul-Pusan railroad route in the middle or end of October to commemorate the October Revolution." (C-6) (f) "The 3rd Detachment of the DEMOCRATIC LIBERATION ALLIANCE ARMY in the YUNGMUN SAN area (1050-1540) is awaiting instructions to instigate uprisings during the harvest season." (C-3) (g) "If the United Nations takes unfavorable action on the North Korea situation, the SOUTH KOREA LABOR PARTY plans to start uprisings in South Korea." (C-3, C-6) (h) "Riots will begin simultaneously with request of the North Korean representative to the United Nations that the Korean government be reorganized." (C-3) (i) "SOUTH KOREA LABOR PARTY members are attempting to infiltrate the KOREAN NATIONAL YOUTH CORPS and plan for attacks on police boxes in conjunction with partisan and vanguard bands." (B-2) (j) "The SOUTH KOREA LABOR PARTY has issued the following instructions to all provincial headquarters; Period: 01-05 October 1948 1. Start, whenever possible, small skirmishes with the police. 2. Attempt to assassinate rightist leaders. 6 DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #140 PART I Period: 07 October 1948 to an indefinite date. 1. Start a propaganda program in South Korea in memory of the Russian Revolution. 2. Instigate strikes in factories, public offices and public utilities. 3. Start sporadic attacks on small outlying police boxes. Hold the armed troops in the Pal Gong (1160-1450) mountain range in KYUNGSANG PUKTU in readiness. These troops will act as shock troops for the invasion by the North Korean forces." (B-3) b. Communist Violence On 01 October 1948, guerrillas on Cheju Do attacked the police in two towns and burned a police box: 7 policeman were killed, several wounded and 2 abducted. Guerrillas also kidnapped and killed 3 members of the UNITED MENS' PARTY. In all cases, part of the raiders were reported to be wearing constabulary uniforms. On 06 October 1948, the police and constabulary contacted armed guerrilla forces at KUMNYUNG (975-1157) and CHANGDAL LI (988-1148) respectively. In the ensuing firefights, one constabulary member was killed, 4 constabulary wounded and one policeman wounded. Raider casualties are unknown. The constabulary began operations in the South Gun on 06 October 1948, in an effort to disrupt and disperse guerrila activities. (1) Weekly Violence Summary A summary of acts of violence involving communists for the week as reported up to 08 October follows: [TABLE] | | SEJUL | KYUNGGI-DO | KANGWON-DO | CHUNGCHUNG NAMDO | CHUNGCHUNG PUKTU | CHULLA | CHULLA | NAMDO | PUKTU | KYUNGSANG NAMDO | KYUNGSANG PUKTU | CHEJU DO | TOTAL | |---|---|---|---|---|---|---|---|---|---|---|---|---|---| | Attacks on towns | | | | | | | | | | | | 2 | 2 | | Attacks on police | | | | | | | | | | | | 2 | 2 | | Police Killed | 1 | | | | | | | | | | | 7 | 8 | | Rightists killed | | | | | | | | | | | | 3 | 3 | | Constabulary Killed | | | | | | | | | | | | 1 | 1 | | Communists killed | | | | | | | | | | 1 | 1 | | 2 | | Demonstrations, disorders, arson & attacks on rightists | | | | | | | | | | | | 1 | 1 | | Attacks on government buildings | | | | | | | | | | | | | | | Sabotage: | | | | | | | | | | | | | | | Communications | | | | | | | | | | | | | | | Railroad Lines | | | | | | | | | | | | | | | Roads | | | | | | | | | | | | | | | Power | | | | | | | | | | | | | | | Strikes: Labor | | | | | | | | | | | | | | | Schools | | | | | | | | | | | | | | 7 DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #160 PART I "(2) Delayed reports covering last week Delayed reports of incidents which occured during the week ending 01 October but which were not carried in last week's summary (W/S #159 page 7) are: [TABLE WITH COLUMNS: SEOUL | KYONGGI-D | KANGWHA-D | CHUNGCHONG-N | CHUNGCHONG-S | FUKTU | CEDLLA | NARU | PUPU KYLLA | RAND KYONGSANG | PUPU | CHEJU-D | TOTAL] Attacks on towns Attacks on police Police killed Rightists killed Communists killed Demonstrations, disorders, arson & attacks on rightists Attacks on Government buildings Sabotage: Communications Railroad Lines Roads Bridges Power Strikes: Labor Schools (3) 1948 Communist Activities . . . in South Korea [TABLE WITH COLUMNS: JAN|FEB|MAR|APR|MAY|JUN|JUL|AUG|SEP|OCT|TOTAL] Attacks on towns 5 73 9 1 2 90 Attacks on police 130 118 50 86 12 11 11 4 2 424 Police killed 33 20 15 34 4 1 5 1 8 121 Rightists killed 1 14 14 81 144 51 10 1 7 3 326 Constabulary killed 1 1 Communists killed 1 74 75 70 159 83 33 22 1 2 516 Demonstrations disorders, arson attacks on rightists offices and homes 6 118 69 126 196 81 24 12 6 1 839 Attacks on government buildings 9 14 2 9 3 37 Sabotage: Communications 14 53 58 32 57 8 1 223 Railroad Lines 1 12 6 8 1 28 Locomotives 50 24 74 Roads 13 5 2 5 1 26 Bridges 6 9 5 4 24 Power 1 7 1 8 Strikes: Labor 14 6 3 10 1 40 School 7 5 4 3 25 * Incomplete DECLASSIFIED Authority NND 745070 548 제주4·3사건 추가진상조사자료집 6 XXIV CORPS G-2 W/S #160 PART I c. Other Violence (1) No rightist-inspired acts of violence were reported during the period. (2) A summary of acts of violence on the part of persons of unknown political affiliations as reported up to 08 October 1946 is as follows: [TABLE - columns: SEOUL, KYONGGI-DO, KYONGGI-DO, CHUNGCHONG NAMDO, CHUNGCHONG PUKDO, CHOLLA NAMDO, CHOLLA PUKDO, KYONGSANG NAMDO, KYONGSANG PUKDO, KANGWON DO, CHEJU DO, TOTAL] Assassination 1 1 Anti-grain collection Political Terrorism Demonstration Resistance to Arrest Unclassified Attacks on police Arson Attacks on individuals 1 1 Sabotage: Communications Railroad lines 2 2 Power Bridges Strikes: Labor Schools (3) Delayed Reports Covering Last Week --- Negative (4) Monthly summary of acts of violence on the part of persons of unknown political affiliations: JULY AUGUST SEPT OCT* TOTAL Assassinations 7 4 11 Anti-grain collection 9 1 10 Political Terrorism 1 1 2 Demonstrations 15 9 3 27 Resistance to Arrest 5 9 14 Arson 2 3 5 Unclassified 11 11 22 Attacks on Police 1 2 3 Attacks on individuals 4 3 7 Sabotage: Communications 1 4 4 9 Railroad lines 2 2 Power Bridges Strikes: Labor Schools 1 1 * Incomplete 9 DECLASSIFIED Authority NND 745070 CIVIL UNREST MAP HWANGHAE-DO KANGWON-DO 38° △ Chunchon YELLOW SEA △ Seoul KYONGGI-DO CHUNGCHUNG CHONGCHUNG NAM-DO PUKTO △ Chonju KYONGSANG PUKTO Taejon △ RR RR △Chonju CHOLLA PUKTO Taegu △ KYONGSANG NAM-DO △ Kwangju [illegible] △ Pusan CHOLLA NAM-DO 7 3 2 6 ⊙ ⊙ Cheju CHEJU-DO ⊕ 2 SOUTH KOREA ⊕ Communist Attack on Town ⊗ Police Killed by Communists ⊙ Rightist Killed by Communists ⊕ Communist Attack on Police ○ Communist Killed ⊕ Constabulary Killed by Communists ⊙ Communist Attack on Rightists RR Sabotage (RR Line) Involving Unknowns DECLASSIFIED Authority NND745070 10 550 제주4·3사건 추가진상조사자료집 6 [illegible] CORPS G-2 W/S #160 PART I C. WAR POTENTIAL 1. Economic a. Economic Review - The following report of recent economic developments was prepared by the State Department Economic Mission: "The economic outlook has continued generally uncertain during the past several weeks, but the prospects for a bumper fall crop brighten the picture. After almost two months of indecision and delay, the government is now almost ready to begin its grain purchase program. Government expenditures continue to increase, with the outgo during September reaching an all-time monthly high of 6.2 billion won. Although revenues also reached a new monthly high of 2.5 billion won, the deficit of 3.7 billion won is almost as great as the total deficit for the preceding five months. The heavy expenditures are partly the result of abnormal outlays at the time of government turnover, but also reflect the steadily mounting outlay for the defense and police forces. The currency issue increased about one billion won in September, and as of 02 October totaled 31.1 billion won. The electric power output continues to decline, and during the first week of October averaged about 50,000 kilowatts, the lowest output since last May. Meanwhile, favorable prospects for fall crops plus government indecision regarding future cereal controls, sent black market prices of grain tumbling from the all-time highs reached in mid-September. Following the government adoption of the grain purchase program, the black market price of rice increased somewhat and currently is 19,000 won per suk (59 won per pound). Most other prices remain steady, or declined slightly, during the past fortnight. GRAIN PURCHASE PROGRAM Purchase of small quantities of grain for home consumption is permitted. Present program differs from recent SKIG programs in the following important respects: (1) The sale of grain by producers on a voluntary basis (except for the provision that all rental rice and 1/3 of the production of former vested land must be turned in to the government) in contrast to the past practice of establishing compulsory collection quotas for individual farmers; (2) The provision of legalizing the movement of "...all quantities" of cereals outside government channels. These changes, plus the serious delay in getting the program under way will very materially increase the difficulties in attaining the purchase goal of 7,500,000 suk (1,143,000 metric tons) of polished rice. Most American observers in Korea are frankly pessimistic over the prospects of the current purchase program. The basis of this pessimism is not only the present law (which could probably serve as an adequate basis for a moderately successful program if vigorously and efficiently administered) but also the weakness and vacillation of the government as reflected in its actions regarding this problem to date. AGRICULTURE The weather continues favorable for fall crops, harvest of which is under way. The National Crop Reporting Board's pre-harvest estimate makes the 1948 crop the best since 1944 and the third largest in Korea's history. Heavy planting, generally favorable weather, and 450,000 metric tons of imported fertilizers are the factors mainly responsible for the bumper crop. 11 DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #160 PART I The planted area of 1948 rice is 9 per cent above the 1940-1944 annual average, production is 24 per cent above the average of the same period. Crop reporting teams are now checking the actual harvest throughout South Korea. If harvest figures prove to be as favorable as indicated by the pre-harvest estimate, foodstuffs of all types available for human consumption would average about 1,845 calories per person per day during the coming year and should enable South Korea to attain its goal of selfsufficiency in cereals in 1949. ELECTRIC POWER Electric power output has continued to decline, as a result of the diminishing supply of water for hydro plants and several operational breakdowns. Rehabilitation work is making progress, and the output during the last half of October should exceed the present average output of 50,000 kilowatts. A sharp increase is expected when the Yongwol Thermal Plant resumes operation about 01 November following a 10-week shutdown for rehabilitation. The output there is expected to be up to 40,000 kilowatts, with coal being the limiting factor. Yongwol coal production during August and the first half of September was disappointing - 250 metric tons per day. The Commerce Minister visited the mine in mid-September and ordered the management to produce or resign. Production since has averaged over 600 tons per day, and it appears that a stockpile of about 35,000 metric tons will be available by 01 November. The Pusan Thermal Plant has resumed operation, producing an average of 3,000 kilowatts. MILITARY CONVERSION RATE A new military conversion rate of 450 won to one US dollar was instituted 02 October. The new rate is to be applied to remittances made through the Korean Foreign Exchange Bank on order of President Rhee as well as to direct exchanges by persons entitled to hold military payment certificates. Military Payment certificates accepted in payment for won are credited temporarily to a special suspense account and month-end settlement will be made by US Treasury check payable to the Korean Foreign Exchange Bank. Won so acquired are not reconvertible to military payment certificates or to any other form of dollar instrument. Won sales from 02-07 October total 2,803,356 won or $6,227. The foregoing figures represent transactions carried out by all Army Finance Officers throughout South Korea. In the month of September all military exchanges at 50 won to one dollar totaled 76,450 won. The present daily won purchases are averaging 187 times the corresponding days of September and dollars received are averaging 21 times the similar period. Great though the increase is, the total won involved are insignificant compared with September's government deficit and the increase in currency circulation. It is believed that dollar credits made available will more than offset any possible inflationary effect of won spending by military payment certificate holders. The black market rate for military payment certificates has risen from 450 to one to 550 to one following the change in conversion rate while greenbacks have fallen slightly from 1200 to one to 1170 to one. 12 DECLASSIFIED Authority NND 745070 XXIV CORPS G-3 W/S #160 PART I b. Cost of living. RICE PRICE SUMMARY MONTHLY AVERAGE (Unit: 1 small metric mal (18.48 lbs.)) JAN FEB MAR APR MAY JUNE JULY AUG SEPT* OCT** Seoul 817 821 778 721 814 985 1158 1200 910 Kangwon Do 870 946 849 825 898 1012 1135 1133 Chungchong Namdo 793 728 674 634 726 946 1037 1063 Chungchong Bukto 645 723 719 660 795 1037 990 1033 Kyongsang Namdo 715 778 715 704 732 955 1070 950 Kyongsang Bukto 594 605 552 605 641 888 1081 1050 Cholla Namdo 614 633 559 595 801 963 1109 1008 Cholla Bukto 669 668 605 623 773 935 1036 1200 Cheju Do 806 748 679 814 806 1081 1879 1033 AVERAGE 713 744 681 725 777 978 1166 1087 SOURCE: National Price Administration (except Sept and Oct prices). * Incomplete ** C8 October price: Source: Open markets (5) in SEOUL: price is for the metric small mal (18.48 lbs. or 10 liters.) Currency Exchange Rate U.S. dollar equals 1,170 won (Open Market) Military Payment Script equals 550 won. 2. POPULATION a. Surrendered and Disarmed No change: 179,920 b. Progress of Repatriation This Period To Date Japanese Civilians Arriving 0 288,535 from North of 38° North Korea, China and Manchuria Japanese Evacuated to Japan 0 884,972 Total Koreans Returning 848* 2,173,261 Total Repatriates Moved Since 15 August 1945 848 3,060,618 Koreans Apprehended While Attempting Illegal Entry 0 25,593 Into Japan * Incomplete 13 DECLASSIFIED Authority NND 745070 미국자료 IV 553 XXIV CORPS G-2 W/S #160 PART I D. PSYCHOLOGICAL Rice Program: Editors of the moderate CHOSUN ILBO (Korean Daily News) and the right-wing DONG A ILBO (Oriental News) continued demands for a rice procurement program devoid of the "undemocratic" features found in previous collection laws. CHOSUN ILBO termed food administration the most important political problem. It was asserted that "the government must have enough grain to fill the people. Therefore no man should oppose the collection of grain." These collections, however, must not be "oppressive," it was stated, and permission to transport "small quantities of grain" must be granted. Government Policy: Editorials described the policy statement of President RHEE (W/S #159, page 4) as vague and disappointing. Freedom of Expression: The government's recent actions against the press (I, p 4, this summary and W/S #158 page 7) precipitated debates on "freedom of expression." Editorially moderate MIN JU ILBO (Democratic News) declared that it was "not democratic to suppress freedom of speech and press "because of differences of opinion among various individuals." The moderate KOOK MIN SHIN MUN (National News) reasoned that "Freedom of speech never means unlimited freedom, but this freedom must be allowed within limits. These limitations are set by administrative controls and court pronouncements." It was conjectured that the "recent press cases" developed as a result of the "recognition" of the North Korea government by some South Korean newspapers which, at the same time, opposed the Republic of Korea. "If this is so" it was asserted, "the government must show the text of the law which fits this cri[illegible]." Without applicable laws the arrests are illegal. COMMENT: The very fact that those editors are able to defend their rights of expression provides evidence against charges of government control of speech and press. E. SABOTAGE AND ESPIONAGE Four agents reportedly came to South Korea about 20 August to gather information about American and Korean military establishments and overall information about the railway system in South Korea. At approximately 041300 October a rail section was found removed from the railroad track near OKCHON (1057-1492). The section was found and replaced prior to the arrival of a train, however, and no damage occured. (B-2) At approximately 041500 October possible sabotage was discovered when the front trucks of the locomotive on the SEOUL-TAEFO train were derailed near KANGGYUNG (1002-1473). Investigation showed that a railroad spike, placed on the rails by unknown persons, caused the accident. Slight delay was caused and there were no inju[illegible]. (3-2) 14 DECLASSIFIED Authority NND 745070