DAILY SUMMARY - 1946/07/25
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02036415
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CO
DENTIAL1
ENFRA L
25 JUL
135
1. US and Urt" represent_altealestine�The US delegation to
iriroint tiS-UTt bias in London on the Palestine problem have for-
warded to the State Department the text of the agreement reached un-
animously with the British commfttee. The agreement, which deals
with both the emigration of European Jews from Europe and the re-
settlement of a "considerable number' in Europe, provides for the
division of Palestine into an Arab province; Jewish province; two dis-
tricts under the central government in Jerusalem; and an uninhabited
area in south Palestine. The plan also provides for a division of powers
between the provinces and the central government Every effort is to be
made to complete the movement of 100,000 Jews into Palestine within a
year after the movement begins.
� 2. Obstacles to lo-E an trea ersist�Legation Cairo has been
giEf7ontinue �sagreoment between IM and Egyptian repre-
sentatives over a Joint Defense Committee and the Sudan question prob-
ably will prevent final conclusion of the Anglo-Egyptian treaty before the
Peace Conference. The Legation has been reliably Informed that, in
deference to Egyptian wishes, the British Governor General of the Sudan
will be transferred to India before negotiations on the Sudan are initiated.
3. British views on German --According to Harriman, British officials
accept as le t1i border changes which the French have made to enlarge
the Saar area, presumably in preparation for its possible inclusion in the
French economy. The changes in effect consolidate the Catholic popula-
tion in a compact region. Harriman adds that certain influential circles
in the UT have advocated the division of Prussia so that the British zone
might contain a similar strong Catholic region which would have a "stabi-
lizing" effect on German politics.
The Under �Secretary of the Foreign Office has told Harriman that
Byrnes' proposal for the economic unification of two or more of the German
zones has been "most enthusiastically" received by Foreign Office officials
working on Germany and the USSR.
Document No.
NO CHANGE in Class. 0
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Class. CHANGED TO: TS S 4!"
DDA Memo, 4 Apr 77
DDA REG. 77/1763
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EUROPE -AFRICA
NMI!
4. FRANCE: Crisis possible over w e-price issue�An official of the
MP Party as orm ery o t there may be a
Cabinet crisis over the wage-price issue. The Cabinet has failed to
agree on the recommendations of the National Economic Commission
for wage increases and economic reforms; MRP Ministers are firmly
opposed to the large increase proposed; and Communist Ministers are
unable to back down. According to the MRP official, Bidault is con-
sidering making a plea to the country next Sunday to demonstrate that
the recommended increases are impossible without an immediate in-
flationary effect on prices.
5. GREECE: Defense Minister aims to become maker"--Accordin' g
to US Ambassa or MacVeagh A ens, e impression is growing among
local British observers that Defense Minister Mavromikhalis aims,
through continued purges of non-Royalists from the armed forces, to
assume the role of "kingmaker" and possibly to assume later a position
similar to that of former dictator Metaxas under King George. Flowever,
the British feel that, if King George returns to Greece, he will attempt to
broaden the base of his government rather than to support a dictatorial
regime.
6. IRAN: Soviets rumored concentrattg along north border--US Ambassador
Allen reports that Soviet troops are rumored to be concentrating along the
Soviet-Azerbaijan border. Allen has received no confirmation of the rumor,
which he regards as an inevitable sequel to the report of ritish ships in
Iranian waters (see Daily Summary of 22 July, item 6).
1Kurdish successes in Azerbaijan�US Military Attache Tehran
reports that the E:urds are progressing successfully in their effort to con-
trol all the Azerbaijan area claimed by the "nascent TOirdish Republic."
Azerbaijan "s emocrat" morale is reported weakening, and an important
Iranian general believes that the Soviets may have switched their support
from the "Democrats" to the Kurds.
PAR EAST
7. INDIA: Nehru comments on interim government�Nehru has privately in-
formed a mezni�ithe US Mission that the formation of an interim govern-
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NFIDENTIALI
ment with League and Congress participation prior to convening the
Constituent Assembly is very doubtful. The basic reason for Congress
rejection of the interim plan was the failure of the British to assure the
proposed interim government sufficient authority. Nehru added that
Coinmuhists are actively encouraging current strikes in India.
8, CHINA: Soviets urge withdrawal of US forces-114h officials of the
Soviet Em assy have pr va e1 toldUS Naval Attache that
US aid to China must cease, that US tomes must be withdrawn, and
that Soviet propaganda will be directed toward those objectives.
THE AMERICAS
9. COLOMBIA: Conspfray to overthrow President-elect reported�US
Ambassador V1Uey reports that the Colombian National Police have
learned of a plot to overthrow President-elect �spina immediately after
his inauguration on 7 August. The movement is allegedly sponsored by
elements of the armed forces, whose ultimate goal would be to install
Caftan (defeated presidential candidate) as President. Wiley believes
that such a coup is unlikely.
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