DAILY SUMMARY - 1946/08/07

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 01068507
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO1068507
APPROVED FOR RELEASE - Historical Programs Staff - 30 August 2018
toU
TOP S
GENERAL
041
7 AUG 1946
146
US Government documents found in Jewish Agency files--US Consul
Jerusalem reports that the British military have discovered in Jewish
Agency files (see Daily Summary Of 1 August, item 4) six US Govern-
ment documents, including a copy of a top secret military intelligence
report of January 1946 on Middle East oil and copies of letters bearing
on solutions of the Jewish problem in Europe and Palestine. The Consul
comments that the British are surprised "there was so little, in view
of the known widespread activity of Jewish agents," and adds that con-
siderable Egyptian material also was found in the files.
2 Portuguese offer counter-proposals on Azores bases--Culbertson reports
that the Portuguese have rejected US proposals for bases in the Azores _
and have presented in outline counter-proposals for a five-year agree-
ment, but excluding joint operation of the bases. Culbertson comments
that the Portuguese "obviously want to keep the door open" but adds his
personal doubt that the US can effect a satisfactory modification of the -
Portuguese proposal.
3. A reen.m.,__.L....._,..__J2L_Ientanian over river ro ect--In commenting on in-
formation that Iran is anxious about the projected diversion of the Helmand
River (which flows from Afghanistan into the Helmand Swamp area in
eastern Iran), US Legation Kabul reports that the Afghan Government is
prepared to submit the matter to arbitration if "mutual agreement on a
realistic basis" is impossible. -Afghanistan would prefer arbitration by
US experts but foresees possible Iranian preference for Soviet arbitra-
tion. The Legation believes that, in view of its fear of the USSR, the .
Afghan Government would urge arbitration by "Swiss or other disinter-
ested experts, even at the risk of irritating the USSR."
4. .F.Emerj2Ateh trade mrsetLepl--Caffery reports that France and Poland
have concluded a trade agreement, according to which Poland is to de-
liver to France 100,000 tons of coal per month. Caffery considers that
implementation of the agreement by Poland will be difficult, since coal
deliveirias Will depend upon runty unknown factors, particularly on re-
habilitation of the Polish mines and the acquisition of new rolling stock..
The latter will presumably hinge on Polish credit negotiations with the
Export-Import Bank.
Deals:lent Ne.
NO CHANGE in Class. 1:3
DECLASSIFIED
Class. CHANGED TO: TS
� DDA Memo, 4 Apr '77
Auth: DDA REG. 77/1763
Date: 16 MAR 1228Br; CV,
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TOP
� FIDENTIAC
Ei OPE-AFRICA,
"5.� USSR: ReportedQ.-lan for westward ion--US Military
Attache London quotes "casual"theremark of a high British civil ser-
vant that information from British Zone Germany Indicates that the USSR
has prepared a 20-year plan providing, successively, for industrial de-
velopment of the Western USSR, complete communization of Western
Europe, including Britain, and a highly organized trade war against the
� American continent
6. VENEZIA GIULIA: Yugoslays increase troops in Trieste area--Xill Corps
has informed Alliedorce a Caserta ugoliNFE�oops have been
"considerably' increased" in the vicinity of Trieste within the proposed
International state, 3,cm Corps believes that the Yugoslays may be prepar-
ing to compel local demonstrations against the proposed Trieste settle-
ment and to suppress possible expressions of anti-Yugoslav feeling.
7 ALBANIA: British ships to return fire--US Charge Galiman reports that
the British Foreign Office has informed the Albanian Government that in
the future British ships will transit Corfu Channel at will and, if fired
upon, will return fire.
8. BULGARIA: Compulsory labor for opposition elements--US Political
Representative in Sofia and General Robertson, US Representative ACC
Bulgaria, report that the Bulgarian Government has authorized a six-
!month mobilization for compulsory labor of all persons not engaged in
"useful social activity." Such persons will be "educated" and may be
mobilized for additional periods until "they improve." Robertson com-
ments that the measure is directed against opponents of the present Com-
munist-dominated regime and particularly against the "fascist" well-to- �
do group.
9. SPAIN: "Government"-in-exile optimistic--According to Embassy
Paris, there has recently been a noticeable (though unexplained) increase
In optimism within the Spanish Republican "Government '-In-exile.
10, GREECE: Leftists avoid Government forces--US Military Attache Athens
� reports thaUhe leftist bands in rth Fara Greece have temporarily
dispersed to avoid any major clash with Government military forces (see
Daily Summary of 5 August, item 6). The Government is arresting all
individual Communists who cannot produce the proper personal documents.
-2
Approved for Release: 2018/09/05 CO1068507
Approved for Release: 2018/09/05 CO1068507
APPROVED FOR RELEASE - Historical Programs Staff - 30 August 2018
11, IRAN: Comments on British reinforcement of Basra--British Ambassa-
dor Ler ormea len t e current reinforcement of
Basra by a brigade of Indian Army troops was in response to his report
to London that British service troops previously at Basra were "entirely
inadequate for the active operations which ;night become necessary."
Lerougetel considers the Iranian reaction "as mild as could be expected."
Allen regards the troop movement as unfortunate in that it gives the im-
pression of the use of force, weakens Qavam's position, and may encourage
Soviet reinforcement of the Azerbaijan frontier.
Rift Wens between Qavam and Tudeh parties--Alien believes
that a recent street clash between members of Qavam's Democrat Party
and Tudeh Party members appears to indicate a growing cleavage be-
tween the two parties as well an a tendency for both groups to get out of
hand. ,
US authorizes extension of gendarmerie mission--The State De-
partment has authorized Allen to notify the Iranian Government that the
US is willing to renew the Schwarzkopf gendarmerie mission for two years,
as requested by Iran (see Daily Summaryof 1 August, item 9).
FAR EAST
12. CHINA: Democratic Leaveztam--US Embassy Nanking reports that
the recent Kunming assassinations have demoralized League members
and have revealed the weakness of the Democratic League as a political
party and as a cohesive factor in China's internal politics. Most League
leaders, faced with the alternatives of recanting, going abroad, or joining
the Communists, probably will recant, and others may be expected to
seek exile. The Government may offer remaining League members posi-
tions in a reorganized regime without Communist participation, and there-
by probably effectively eliminate liberal opposition to Kuomintang policies.
13. INDIA: yrerov to urge Comess concessions--US Mission New Delhi
has been confidentially informed that, before the Congress Working Coro-
mitbm meets on 8 August, the Viceroy will ask the Congress to form an
interim government and to make the Moslem League an offer sufficiently
generous to bring it into the government
Approved for Release: 2018/09/05 CO1068507
Approved for Release: 2018/09/05 CO1068507
APPROVED FOR RELEASE - Historical Programs Staff - 30 August 2018
14, JAPAN:. Diplomatic status of Allied Council--US Political Advisor
.Atcheson has expressed approval of granting diplomatic status to mem-
bers of the Allied Council and their staffs, but proposes, in view of the
� Soviet member's staff of approximately 500 "largely military person-
nel," to restrict the issuance of diplomatic cards to the principal civi-
lian members of the Council's staff.
15 JAPAN: Repatriation from Southeast Asia�General MacArthur, in line
with his aim to complete theepafriatIon of all Japanese by the end of
1946 (see Daily Summary 3 July, nein 12) has requested the Senior
Allied Commander, Southeast Asia, to furnish him the plan whereby the
120,000 Japanese understood to be in Southeast Asia are to be evacuated.
THE AMERICAS
16. BOLIVIA: US plans recoonition--The State Department has advised
Embassy La Paz fhat it feels US recognition of the new Bolivian Govern-
ment should not be further deferred.
Viliarroells reelme corrupt--According to US Military Attache
La Paz, "ihe tillarroel government stole practically all of the country's
funds, marking it as the most dishonest government in Bolivian history.
17. PERU: "Incident" threatens new base agreement--US Ambassador
Cooper reports that negotiations for a new agreement providing for
joint use of the Talara airbase have been seriously prejudiced by a
brawl involving US Army personnel and Peruvian naval officers. The
Peruvian Minister of Defense was asked in the Senate to explain "what
benefit Peru derived from continued occupation of the base by a foreign
army.
Approved for Release: 2018/09/05 CO1068507