DAILY SUMMARY - 1946/07/24

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02036416
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2036416
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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Approved for Release: 2018/09/05 CO2036416
Approved for Release: 2018/09/05 CO2036416
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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24 ei.a. 1442
GENERAL
1. British considering lo-Soviet base eement--According to Smith,
BrltIif.syMoscoww is suggesting to e British Foreign Office that
the UTS: might "as allies" offer to the USSR limited naval facilities at
Malta, Hong gong, and the Orkneys in exchange for similar facilities at
three Soviet bases in the Black Sea, the Baltic, and the Far East The
British Embassy has also suggested that, in view of the "slight improve-
ment" In Anglo-Soviet relations, the Foreign Office approach the Soviets
on trade, commercial aviation, visas, and educational exchanges.
2. E.Sw2gn _ureplipartite consultation on Hungarv--Smith has submitted a
new note to the Soviet Government reiterating the �US proposal that US, UK,
and USSR representatives in Hungary jointly work out a program to help
the Hungarian Government in ameliorating the present economic situation.
(A similar US proposal last April was refused by the Soviets who claimed
that such a program was within the competence of the Hungarian Govern-
ment; see Daily Summary of 24 April, item 4.) Smith told the Soviets that
the US will publish its note by the end of this week.
S. Molotoves" to UN information center at Moscow--UN Secretary
General LieS:s�Riiime�aWirt----y cordial 'talk" with Molotov
during whtch Lie asked that a UN information center be located at Moscow
with facilities for broadcasting and for publishing and circulating UN docu-
ments. Molotov reportedly agreed, affirming that the UN had the Soviet
Government's full support. Lie tad Smith that he felt encouraged, but
would not be certain until he had the signed documents in hand. (The US
Military Attache in Moscow comments that Lie's visit has received less
press attention than that of the British Labor Party delegation and has been
pushed further into the background by the arrival of the Czech delegation.
4. Portugal to apply for admission to UN--US Ambassador Baruch has been
infori�r�ie Thad --t�..rliiiEgiVi-agaZrrd &apply for admission to UN under
British sponsorship. The exact time for the application has been left to the
discretion of the Portuguese Foreign Office.
5. Show of US naval stre at Lisbon reco e cl:�. -Baruch has recommend-
ed that the US naval force which is to visit Lisbon on la-21 August include
an aircraft carrier of the Essex class. Baruch states that the inclusion
would be welcome to the Portuguese, would provide a more than favorable
Dootuoont No.
NO CHANGE in Class. 0
0 DECLASSIFIED
Class. CHANGED TO: TS
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comparison with the recent British visit, and would be "most useful in
the overall picture" during US-Portuguese talks on Atlantic security
and air bases.
EUROPE -AFRICA
6. USSR: Soviet ro :anda favors Arabs in Palestine�Smith reports that
a recent lecture in oscow a o e se � ar, Victor Lutski, is the first
clear indication that the USSR is "sliding over" to the Arab side in the
Palestine issue and away from its previous noncommittal position. Lutsld's
main points were (a) US-UTI: interest in Palestine is dictated by oil and
military considerations, (b) Zionism is an imperialist tool and does not
serve the Jewish masses, and (c) a large majority of Palestine's people
regard it as an Arab country in which Jews already are living as citizens
with full and equal rights. Smith notes that the meeting was attended by
a large number of Soviet Jews, whose questions "taxed LutsIdis powers of
rebuttal."
Anti-US r da--Smith believes that Soviet emphasis during
the past two months on -US propaganda and the attendant decrease of
anti-British propaganda constitute a tactical experiment and that the funda-
mental aim of Soviet strategy still is to divide the US and UK
7. RUMANIA: USSR demands increased armistice deliveries--US Political
Representative Berry e Soviets are believed to have secret-
ly and peremptorily demanded that Rumania increase deliveries of iron,
steel, timber, and petroleum products to the USSR. Berry adds that by
1 July official Rumanian armistice deliveries to the USSR already had
reached a value of one and one half billion dollars and unofficial deliveries
about half a billion.
8. YUGOSLAVIA: Ralian ro sals on Venezia Giulia�The Thirteenth Corps
has informed An-. of a re ia le report the Italian Foreign Office has
suggested to Yugoslavia that Italy will agree to the inclusion of Gorizia
and Monfalcone in the Venezia Giulia international zone if Yugoslavia will
make a similar concession regarding Istria, rola, and part of the Trieste
hinterland. Thirteenth Corps believes that the Italian proposal is support-
ed by certain non-Communist Yugoslays in Venezia Giulia.
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Approved for Release: 2018/09/05 CO2036416
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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9. MAN: Firm re 1 dt_spfted to Soviet air proposal--The Iranian Minister
of Posts and Telegraphs has au US Ambass4dor Allen that Iran's reply
to the Soviet proposal for an air monopoly in northern Iran will state
that ca) no foreign airline will be permitted to engage in "sabotage in
Iran, '(b) no Iranian airline can have more than 25% foreign capital, and
(c) foreign employees must be limited to technicians to be replaced as
soon as possible by Iranians. Allen observes that there are some indica-
tions that r!avam is feeling more able, as his new party grows stronger,
to refuse additional concessions to the Tudeh Party and the USSR.
Qashqii tribe to opre.loviet influence in south�The leader of
the south ani shqaI tribe, the most closely knit tribal unit in Iran,
has informed Allen that he has decided to fight Tudeh. and Soviet penetra-
tion into southern Iran with all his strength. The Qashqai will support
Qavam, as long as they are convinced he is anti-Tudeh, and are now re-
conciled to supporting the British in spite of their fear of a British be-
trayal.
FAR EAST
10. N.E.I.: US interests in Southern Sumatra�Harriman has received from
the British Foreign Office assurances that the interests of US companies
in the N.E.I., particularly the oil companies in Palembang, are being
treated in exactly the same way as those of British companies. The
British are encouraged by recent reports from Southern Sumatra where
local Indonesian troops are effectively controlled by an Indonesian leader
who apparently is willing to work with Dutch, British and Americans to
restore conditions to normal.
11. CHINA: Terrorism in 7Clutm -US Consulate General Nunming report-
ed on 22 July thatlie waiffl1afford1ng asylum to certain Chinese who
are the object of terrorists now active in the city (see Daily Summary of
18 July, item 5). The Consulate General was at the time maintaining a
guard of four persons heavily armed. The Consul General, in the belief
that Nanking is responsible for the present terrorism, has explicitly re-
quested instructions.
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