DAILY SUMMARY - 1946/07/10

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02036420
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2036420
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2036420
Approved for Release: 2018/09/05 CO2036420
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
NTIALT
GENERAL
1. Portuguese protest US actions at Santa Maria--General Kissner has
received a "stern letter" from Colonel Correia, the Portuguese repre-
sentative at Santa Maria, protesting the "failure" of the US to carry
out the terms of the 30 May agreement with respect to that base. The
note asserts that under the agreement Colonel Correia has "superin-
tendence" over all services at Santa Maria. Kissner has replied that
he is making plans to comply with the agreement, and has advised
Correia that he is proceeding to Paris for a conference with Secretary
Byrnes.
In two subsequent notes Correia has (a) demanded that a US
representative be delegated to draw up with him a list of equipment
necessary for Portuguese operation of Santa Maria, and (b) reported
an "insulting" incident involving a US enlisted man. Kissner has now
appointed a delegate as requested, and will apologize for the incident.
Kissner believes that the Portuguese consider the stipulated 120-day
extension as intended for the "surrender of installations" and evacua-
tion, rather than for continuance of US operations at Santa Maria.
EUROPE-AFRICA
2. AUSTRIA: Soviet seizures of German "assets"--According to
Embassy London, the UK Foreign Office believes that the recent Soviet
seizures of German "assets" in Eastern Austria (see Daily Summary
of 8 July, item 9) were designed to aid Moscow's efforts to compel the
Austrians to enter into general economic negotiations, including a
trade agreement to draw Austria into the Soviet economic sphere. The
Foreign Office adds that the Soviet move appears timed to precede
efforts by the CFM to obtain a definition of German assets in Austria.
3. GERMANY: Saxony referendum--The US Political Advisor's Office in
Berlin has reported dal, according to German officials in Saxony
(Soviet zone), the average voter in the 30 June referendum on nationali-
zation of industry had no idea of the number or character of the plants
Involved. The Office adds that the Soviets had no illusions regarding
the character of the referendum; in discussions with US Journalists,
an NKVD officer referred to it as a "sheep show."
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4. USSR: Smith's views on di s horts dness�Ambas-
sador Smith believes that many European diplomats, including those of
the USSR, still think of military power in terms of World War U. Smith
believes that much of the "intransigeance now plaguing us" results
from lack of comprehension of the tactical and strategic implications
of new weapons, and from inclination to attach excessive importance to
military bases which may soon become more of a liability, than an asset.
"Failure" in Soviet nationality policy�Smith points out that
Soviet press accounts of the recent reduction in status of the Chechen-
Ingush and Crimean Autonomous Republics constitute the Government's
"first open, if only implied," admission in recent years of "a notable
failure' of its nationality policy. The accounts assert that during the
war many inhabitants of the two republics joined German-organized
volunteer units, and that the "main body" of the populations "did not
offer resistance to these traitors."
5. POLAND: Catholic Primate's views on Jewish pogrom�Cariiinal
Mond, Catholic Primate of Poland� has told U�mbassador Lane, in
connection with the recent Jewish pogrom at Kielce, that anti-Semitism
throughout Poland reflects in part the general belief that Jews are en-
gaged in security police activities and are working for Communism.
8. DENMARK: Faroes Loran station�The Danish Foreign Office has
Informed US Minister Marvel that the Danes desire to take over and
operate the Faroes Loran station and will wish to replace British mili-
tary personnel there with US civilian operators, if neither Danish nor
British civilian personnel are available. (The Danish Foreign Minister
previously had opposed employment of US personnel at the station; see
Daily Summary of 27 June, item 11.)
7. SPAIN: "Political evolution" deived�The Spanish Foreign Minister
has informed Embassy Madrid that "political evolution" in Spain has
been delayed at least five months because of the French closing of the
frontier and Security Council consideration of the "Spanish question."
The Foreign Minister expects no new developments before October,
when a referendum on the regime and its successor "might" be held.
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8. GREECE: 119zsted Albanian attack on Greek ft_ t--The Greek
Government has informed Ambassador Mac Veagh that on 7 July
Albanian troops and possibly some Greek leftist refugees raided and
wrecked a Greek border post. MacVeagh believes that Greek retalia-
tory action is unlikely since the British Charge has strongly advised
against it.
9. IRAQ: Anti-US feeling rises--Legation Baghdad reports that popular
Indignation against the US is rising to "new heights" as a result of
President Truman's latest Palestine statement and that determination
to resist implementation of the Joint Committee's report is "crystal-
lizing rapidly." Local Communists are attempting to exploit the public
resentment against the US and Great Britain, but the Government has
taken measures to maintain order,
FAR EAST
10. N.E.I.: British views on negotiations--Ambassador Harriman reports
that the British continue pessimistic regarding the Dutch-Indonesian
impasse. They believe that all possibilities of direct negotiation should
be exhausted but "might be willing" to mediate if the negotiations prove
unproductive and if both parties so desire. The Dutch are said to be
considering the possibility of sending to Java a Cabinet Mission similar
to the British Cabinet Mission to India. The British believe that such a
mission might inspire some confidence among the Indonesians who con-
sider Van Mook a holdover of Dutch imperialism.
11. PHILIPPINES: S elus ro er eement with China not acce � de--
Ambassador McNutt reports t the P ppine Government s refusal to
admit Chinese labor to the Philippines makes it impossible for the US
to fulfill the 15 June agreement between the FLC and China which com-
mits the US to arrange for employment of "Chinese troops or other
labor" in "foreign countries" for packing and loading US surplus pro-
perty for delivery to China.
12. JAPAN:Lttpa atriation from Pacific areas--Generl MacArthur reports
that shipping will be available to evacuate Japanese POW's and disarmed
military personnel from US-controlled areas in the Pacific about
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October 1946. He plans to complete repatriation from these areas
before the end of 1946.
THE AMERICAS
13. MEXICO: Padilla's plans�An "authorized" representative of
Padilla has informed Ambassador Thurston that Padilla intends first to
exhaust legal means of protesting Sunday's elections and, if these fail,
to establish a government with himself as president in some city near
the US-Mexican border. The representative stated that Padilla hopes
that the US will not close the border at that point and desires only
strict neutrality and non-interventlon from the US.
14. ECUADOR: Xgratalguainked jorajammuntgetwam--The Ecua-
doran Foreign Minister has informed US Ambassador Satten that if
his Government is unable to obtain the recently disapproved Export-
Import Bank loan for the Guayaquil water works (see Daily Summary of
2 July 1946, item 5) he does not see how it can collaborate in the nego-
tiations for the Galapagos air base. Ambassador Scott= fears that
unless the Bank shows a more promising attitude the Galapagos settle-
ment may be blocked.
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