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PART I SOUTH KOREA From: 081200/I Oct 48 To : 151200/I Oct 48 Secret Headquarters, USAFIK Seoul, Korea 15 October 1948 No. 161 MAPS: KOREA 1/250,000 East ASIA, 1/1,000,000 A. ARMED FORCES 1. Strength (Secret) Police: No Change. Constabulary: 49,476 (including 1,041 cadets and 85 recruits) Coast Guard: 3,013 (including 259 cadets) 2. Operational Activity (Confidential) Border Incidents At approximately 082300 October 2 groups of North Korean Constabularymen, each group composed of approximately 10 men entered the village of YONGDONG (923.7-1696.5). Each group attempted to burn a house. One Korean farmer was wounded. The NKC stole 3 oxen as they returned to North KOREA. (B-2) At 111700 October a 7 man U.S. patrol observed 9 North Korean Constabularymen in the vicinity of (938.3-1697.5). The NKC later split into groups of 3 men each and 1 of these groups fired on 3 men of the U.S. patrol located at (938.55-1696.50). The U.S. patrol returned the fire, possibly killing 1 NKC and wounding another. (B-2) At 121400 October an 8 man U.S. patrol from OP #14 (985.9-1695.0) was fired on by an estimated 36 North Korean Constabularymen at (980.4- 1695.8). The U.S. patrol returned the fire; the firefight ended at 121500 October. A Korean interpreter with the U.S. patrol was slightly wounded and an estimated 5 casualties were inflicted on the NKC. (B-2) On 08 October an unidentified surfaced submarine was first sighted about 8 miles off the northern coast of CHEJU-DO at 1215. At 1315 the submarine was again sighted on a course 90° and 25 miles off CHEJU-DO. (A-1) It was described as being of "battered and rusty" appearance and flying a white flag which had a red star in the center and some red near the staff. Observers could not identify the type from photographs on file. Fifteen men were on deck. (A-1) -3Secret DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I [TABLE - Border Incidents data with date columns ranging from 04-11 June through TOTAL] Border Incidents Korean vs Korean 4 6 4 6 2 3 3 2 3 2 4 3 1 2 2 1 48 Firing on US Personnel 1 2 1 2 1 1 1 1 1 2 6 1 2 22 Ambushes of US Personnel 1 1 Soviet Violations of Parallel* 1 1 2 Korean Violations of Parallel* 2 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 7 5 3 86 * No firing involved B. CURRENT INTELLIGENCE Investigation of Railroad Accident (Unclassified) On 12 October, the Commanding General announced the findings of the Board of American Officers which investigated the train wreck on 14 September 1948 (W/S #158, page 6). General Coulter's statement follows: "The Report of Investigation of the wreck of the 'Liberator,' 14 September 1948, made by a Board of American Officers, found that three rules of the regulations governing operation of railroads in Korea were not complied with, and resulted in the accident in which 36 Americans and 1 Korean lost their lives, and 66 Americans and 40 Koreans were injured. "A motive, if any, for the failure to comply with the rules of operation was beyond the scope of the Board and is a matter pertaining to the Korean government. "Immediately following the wreck, President Rhee and other Korean Government officials expressed their great sorrow concerning the accident and advised the Commanding General, USAFIK, that steps had been taken to fix the responsibility and I am aware that corrective action has been initiated." COMMENT: (Confidential) The Minister of Internal Affairs attributes the wreck to Communist sabotage and has some 35 Koreans awaiting trial for their part in it. CIC investigation has not been completed. 2. National Assembly (Confidential) a. Members were elected on 12 October to the Special Investigation Committee established by the National Traitors Law to determine who should be prosecuted for pro-Japanese acts (W/S 157, page 6). -4- DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I b. After voting to amend the title of the bill to read "Temporary Law on Local Government Administration", the Assembly passed the bill on 14 October. The most important amendment to the bill before its passage placed control of the provincial police under the provincial governors. The bill was passed at the end of the second reading and returned to the Legislative Committee for final polishing. The provision for the appointment (rather than the election) of officials remained in the bill. (W/S 160, page 4). However, the law, as passed, is effective only for a period of 6 months. During this period a new law will be drafted and the machinery established to provide for the election of provincial officials. COMMENT: The provision of the bill providing for the appointment of provincial governors by the President and the local authorities by the governor is an interim measure adopted until the regular bill is passed. The transfer of police control is a popular move. Intervention in police control is still exercised by the Minister of Internal Affairs. It is expected that the Vice Minister will act in the capacity of administrative director of police until a qualified individual is appointed. c. The Grain Purchasing Program (W/S 159, page 5) was signed by the President 09 October. According to the National Food Administration, no grain has yet been purchased. d. HU Chung, new Minister of Transportation and the 1st Minister to report to the Assembly (W/S 160, page 4), appeared on 12 October and promised to deliver his policy statement at an early date. e. On 13 and 14 October, 47 members of the Assembly presented a demand for the immediate withdrawal of US troops. Of the group, 29 are identified as non-partisans and the remainder as members of various rightest parties. COMMENT: The action indicates that approximately 25% of the Assembly have succumbed to Communist propaganda, or the theories of KIM Koo and KIM Kyu Sik, or have let their nationalism blind them to the facts of life. 3. Cabinet Changes (Restricted) LAH Ki Ho, formerly assistant director of Commerce and Industry in the South Korean Interim Government, was appointed Vice Minister of Transportation on 12 October. According to Minister of Information KIM Dong Sung, MOON Chang Wook was never approved by President RHEE as Vice Minister of Education; therefore acceptance of his resignation by the President is not required (W/S 160, page 5). 4. KIM Koo and KIM Kyu Sik Again Return to Unreality (Confidential) Recently attention has been called to the dispatch of a letter from the SOCIETY FOR THE ACCELERATION OF UNIFIED INDEPENDENCE signed by KIM Koo and KIM Kyu Sik (W/S 157, page 7) and a second letter from KIM Koo as chairman of the KOREAN INDEPENDENCE PARTY. Both letters were addressed to Trygve Lie, Secretary General of the United Nations General Assembly. -5- DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I 6. Moderate Activity (Confidential) During meetings of the NATIONAL INDEPENDENCE FEDERATION's Standing Committee at the home of KIM Kyu Sik on 06 and 07 October, it was decided that the NIF would: 1. Organize additional branches; 2. Increase the number of members on the Standing Committee; and 3. Furnish an appearance of support of the Republic of Korea (the "South Korean government") in order to avoid police suppression. The Standing Committee decided that while branch staff members must be informed of the need for appearing to support the government in South Korea, the ultimate NIF goal of unification will not change. 7. Press Activity (Restricted) On 11 October the Government announced that the Korea Press "would be allowed to resume limited operations immediately for the distribution to its member newspapers of the world news reports of the United Press Associations of America and the Central News Agency of China. Resumption of other activities of the Korea Press will depend upon subsequent decisions." It was added that "the government has no intention of interfering with the freedom of the press. The government does insist, however, that news reports be accurate, factual and unbiased." On the following day, after an interview with President RHEE, 12 October, Miles W. Vaughn, a Vice President and Far East Representative of the United Press, reported that RHEE "is not opposed to fair criticism of the press but that he insists upon compete accuracy and impartiality in news reports." Vaughn's report indicated that an amicable understanding had been reached regarding the functions and operations of newspapers. Primarily emphasized in Vaughn's interview with RHEE was the role of the papers against which action was taken (W/S #160, page 5) in the dissemination of "communist propaganda." There was "no objection to South Korean newspapers printing news accounts explaining that the Pyongyang Radio — for obvious reasons — is broadcasting attacks upon the Seoul regime. These attacks, however, in fairness, should emphasize the propaganda nature of the Pyongyang attacks." Meanwhile, the Seoul police continued their investigation of the newspapermen recently arrested (W/S #160, page 5) and on 13 October Director of Public Information KIM Dong Sung cancelled the license of the Korea Press. The next day, KIM issued a "Special Permit," effective 13 October to 13 November of this year to the United Press and the Chinese Central News Agency to use the facilities of the Korea Press. This permit, stated KIM, will be automatically revoked when the Korea Press becomes properly licensed for resumed operations. At the time of issuance of the permit, KIM stated that "with due respect and courtesy this office (Public Information) wishes to render any assistance to these two agencies in releasing the world news in Korea." -7- DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I 8. Civil Unrest a. Communist Activity (Confidential) (1) 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 and 160): (A) The NORTH KOREA LABOR PARTY ordered the ALL KOREA COUNCIL OF LABOR UNIONS to instigate general strikes in all factories in South Korea on or about 15 October 1948." (C-3) (b) "The South Korea Conference of Democratic Political Parties announced a resolution in connection with a send-off for the Soviet Army. Included were measures for organizing and launching a popular campaign in South Korea for the send-off." (Radio Pyongyang) b. Communist Violence (1) Weekly Violence Summary A summary of acts of violence involving communists for the week as reported up to 15 October follows: [TABLE WITH COLUMNS: SEOUL, KYONGGI-DO, K.NGWON-DO, PAEDO, CHUNGCHONG-DO, CHUNGCHONG-DO, HANDO, CHOLLA, PUTTO, KYONGSANG, NALDO, KYONGSANG-DO, PUKTO, CHEJU, TOTAL] Attacks on towns Attacks on police Police killed Rightists killed Constabulary killed Communists killed 1|1 Demonstrations, disorders, arson & attacks on rightists Attacks on government buildings Sabotage: Communications Railroad Lines Roads Power Strikes: Labor Schools -8- DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I (2) Delayed Reports Covering Last Week Delayed reports of incidents which occured during the week ending 08 October but which were not carried in last week's summary (W/S #160, page 7) are: [TABLE WITH COLUMNS: SEOUL | KYONGGI-DO | KANGWON-DO | NANDO | CHUNGCHONG | CHUNG CONG | CHOLLA | CHOLLA | NANDO | KYONG SANG | KYONG SANG | NANDO | PUERTO | CHEJU | TOTAL] Attacks on town Attacks on police Police killed Rightists killed Communists killed 1 1 2 Demonstartions, disorders, arson & attacks on rightists 3 1 4 Attacks on Government buildings Sabotage: Communications Railroad Lines Roads Bridges Power Strikes: Labor Schools (3) 1948 Communist Activities in South Korea 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|155| 83| 33| 22| 1| 5| 519 Demonstrations disorders, arson & attacks on rightists offices and homes 6|118| 69|126|196| 81| 24| 12| 7| 5| 644 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 | | | | 7| 1| | | | | 8 Strikes: Labor | 14| 6| 3| 16| 1| | | | | 40 School | 7| 5| 4| 9| | | | | | 25 *Incomplete -9- DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 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 15 October 1948 is as follows: [TABLE WITH COLUMNS: SEOUL | KYONGG I-DO | KANGWON-DO | CHUNGCHONG N AMDO | CHUNGCHONG PUKTO | CHOLLA NAMDO | CHOLLA PUKTO | KYONG SANG NAMDO | KYONG SANG PUKTO | CHEJU DO | TOTAL] Assassination Anti-grain collection Political Terrorism Demonstration Resistance to arrest Unclassified Attacks on police 1 1 Attacks on Constabulary 1 1 Arson Attacks on individuals 1 1 Sabotage: Communications Railroad lines Power Bridges Strikes: Labor School's (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 1 12 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 1 4 Attacks on Constabulary 1 1 Attacks on individuals 4 3 2 9 Sabotage: Communications 1 4 4 9 Railroad lines 2 2 Power Bridges Strikes: Labor Schools 1 1 * Incomplete 10 DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I d. Civil Unrest Map HWANGHAE-DO KANGWON-DO 38° Chunchon YELLOW Seoul SEA KYONGGI-DO CHONGCHUNG CHUNGCONG PUKTO NAMDO Chonju KYONGSANG PUKTO Taejon Chonju Taegu CHOLLA FUKTO KYONGSANG NAMDO Kwangju Pusan CHOLLA NAMDO Cheju CHEJU-DO SOUTH KOREA [X] Attack on Police Involving Unknowns [T] Attack on Constabulary Involving Unknowns [O] Attack on Individual Involving Unknowns [O] Communist Killed -11- DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I C. MOBILIZATION POTENTIAL 1. Economic a. Cost-of-Living (Unclassified) According to information received from the Civil Affairs Section, USAFIK, the general level of wholesale prices was slightly higher in September than in August. The decline in open market grain prices during September reflects prospects for a bumper rice crop and indicates that no marked upturn in the price index is probable in October. The index of wholesale prices in September was 186 per cent of the 1947 average. Higher prices for textiles, fuel and building materials were offset by lower prices for food, particularly grain and fish. 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 850 Kangwon Do 870 946 849 825 898 1012 1136 1133 Chungchong Namdo 793 728 674 634 726 946 1037 1083 Chungchong Pukto 645 723 719 660 795 1037 990 1033 Kyongsang Namdo 715 778 715 704 733 955 1070 950 Kyongsang Pukto 594 605 552 605 541 888 1081 1050 Cholla Namdo 614 633 559 595 801 963 1109 1008 Cholla Pukto 662 669 605 623 773 935 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 ** 15 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 1,180 won (Open Market) Military Payment Script equals 540 won. 2. POPULATION (Restricted) a. Surrendered and Disarmed No Change: 179,920 b. Progress of Repatriation This Period To Date Japanese Civilians Arriving 0 289,535 from North of 38° North Korea, China and Manchuria Japanese Evacuated to Japan 0 884,972 Total Koreans Returning 1,836* 2,175,097 Total Repatriates Moved Since 15 August 1945 3,062,454 Koreans Apprehended While Attempting Illegal Entry Into Japan 0 25,594 * Incomplete -12DECLASSIFIED Authority NND 745070 XXIV CORPS G-2 W/S #161 PART I D. PSYCHOLOGICAL Freedom of Expression: Self-contradictory clamors for freedom of expression continued to appear in the pages of Seoul newspapers. The moderate NATIONAL INDEPENDENCE FEDERATION (see Part I, B, ) and the TAM SOO HOI (Fresh Water Society) (W/S #146, page 16) also added their voices to the cause of free expression in the aftermath of government action against three newspapers and a news agency (W/S #160, page 5). The NIF demanded the safeguarding of a basic right and the TAM SOO HOI urged the passage of a new, democratic newspaper law (the one currently in effect having been formulated in 1906). KOOK MIN SHIN MUN's False Report On 13 October KOOK MIN SHIN MUN (National News) reported that "according to information received from a high American official, Special Representative Muccio...has secretly been investigating the degree of support given the present government by the general population and has discovered that the government does not have the complete support of the people...According to information from other sources, Mr. Muccio has demanded that President RHEE reform his cabinet... According to another source, President RHEE has ordered the return of Ambassador CHOUGH Byung Ok... if he returns he will get a certain important position in the cabinet." On the same day, Minister of Public Information KIM Dong Sung denied that there was any truth in the announcement, that the report was entirely groundless and was intended to "divert the support of the people away from the government. The government has decided to meet such anti-national acts with severe punishment." Unrepentant, the KOOK MIN SHIN MUN ran Minister KIM's announcement with the following heading. "The Republic of Korea is Totally Independent; Foreign Intervention Will Not Be Tolerated." The majority of the other Seoul papers headlined KIM's announcement as it was intended--that is, as a denial of a false report. COMMENT: (Confidential) Minister KIM indicated that he intends to track down the origin of the report and, possibly, take legal measures against KOOK MIN SHIN MUN. This newspaper, he said, is being financed through the HEUNG HAN Financial Guild by wealthy PAK Hun Sik, controller of the giant WHASIN enterprises. (PAK Hun Sik is reportedly providing an 18 million won backing to a movement which would result in a substantial reorganization of RHEE's cabinet in which he (PAK) would be Minister of Commerce and Industry). Invasion of South Korea and Dissension in the Ranks of the People's Army Leaders. An article in the PYUNG WH.. IL BO (Peace Daily) of 19 October 1948 indicates that the leaders of the Communist ring in North Korea are busy supplying armaments to the forces of the North Korean People's Army for a conquest of South Korea. The same article also states that there is discord and dissension among the leaders of the North Korean People's Army. The article is based on interviews with officers who recently deserted from the People's Army. E. SABOTAGE AND ESPIONAGE Negative -13- DECLASSIFIED Authority NND 745070