DAILY SUMMARY - 1946/08/26
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02036442
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Approved for Release: 2018/09/05 CO2036442
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GENERAL
26 AUG 1946
162
1. Possibility of hoax in "gLi91429c1.....5.9e* r_is2mLs - -The Military and Naval
Attaches in Stockholm, reserving final judgment, have jointly developed
the theory of a Swedish "unintentional hoax" which they believe worth
consideration with respect to reports of rockets over Sweden. The Atta-
ches think that the Swedish Defense Staff have tacitly sponsored a hoax
in order to alert the "West against the East" and to support the Swedish
defense budget. Although Swedish official statements have been scrupu-
lously correct and have denied evidence of rockets, little else has been
done to allay public concern or counteract the conclusion that Soviet
rockets are actually behf seen. Some unofficial statements may, there-
fore, have been "plants.'
The rapid deterioration of West-East relations, including the US
"ultimatum" to Yugoslavia, however, has now raised the danger that
Sweden could be charged with contributing to the break-down in great-
power relations. This may explain the newly discernible tendency
toward Swedish frankness.
2. Soviet activi at Peenemuende�General MeNarney transmits reliable
reports of (a) increased activity in Peenemuende during May and June,
(b) restoration of ferry and rail connections to Peen.emuende, and (c) the
presence at Peenemuende of a Soviet Technical Commission, apparently
engaged in the restoration of damaged facilities and preparations for
later removals to the USSR.
3. Vienna-Udine fl hts resumed with armed 8-178s--Secretary Byrnes
has authorized the resumption of Vienna-Udine flights. Single armed
8-17's will be used; pilots will be instructed carefully to avoid Yugoslav
territory and to turn back when faced with adverse weather, but to take
"necessary defensive measures" should Yugoslav planes leave Yugoslav
territory and enter the US route.
4. Chief of Czech Staff on hurried visit to Moscow--US Military Attache
Prague reports that General Boca:, Chief of Staff of the Czechoslovak
Army, has hurriedly left Paris for Moscow with twelve staff officers,
A reliable source believes the trip is connected with the US note to
Yugoslavia.
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5. US Embassy Ankara urges Straits revision initiative be left to USSR--
US Ambassador Wilson believes that the US and UK should avoid
taking the initiative to convoke a conference to revise the Montreux
Convention and should leave such a move to the USSR. Re adds that
the US, UK and Turkey are of course committed to attend such a eon-
ference.
6. USSR sysgss_ttadorrent German productioalq.slmeth_l_onsr:--
According to Caffery, Marshal Sokolovsky has informally suggested to
General Clay that current production might be added to the German
reparations program and dismantling of German industry be postponed
for perhaps ten years. US Ambassador Smith believes this suggestion
results from Soviet "indigestion of capital goods obtained as war booty
and reparations" and Soviet need for "current production items."
EUROPE -AFRICA
Norge 7, USSR: Long-range bomber force in Kuibyshev area�US Military
Attache oscow believes recent evidence establishes the presence
near Kuibyshev of long-range bomber units which are thought to be
re-equipping and training there pending the development of bases in
western USSR.
8, GREECE: 11,_pproval of US Nan �rtesy --Acheson
has directed US Embassy Athens to request Greek approval of a cour-
tesy visit, before the Greek plebiscite, by the carrier ROOSEVELT,
the cruiser LITTLE ROCK and five US destroyers.
9. FRANCE: Bidault zsmL.Led d_Lomtwal._�ole as conciliator,--Caffery has
been told by a "very associate of Bidault that the latter (a) no
longer feels that France can best serve her interests by acting as a
conciliator between the USSR and the Western Powers, and (b) hopes,
if he continues in power in the new Government, to eliminate Commu-
nist participation "within five or six months."
10. RUMANIA: 23itmetqlsESItestEtt219n elections--US Political Repro-
eentative Berry heliev6s n.qt the US mist decide at once 'whether it WV)
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recognize the results of the forthcoming elections, no matter how frau-
dulent, or will insist on elections which are free according to US inter-
pretations. Berry considers that if the US plans to follow the first
course, it should so inform the opposition parties who are risking their
lives on US good faith; otherwise it should immediately warn Rumanian
representatiires in Paris that it will pursue the second course.
11. BULGARIA: Torture of former Arnitsommander�US Mission Sofia
has been "reliably informed" that Geneigrev, wartime com-
mander of the Bulgarian Second Army, is now undergoing "extreme
beatings and torture" to force him to denounce the "purged" War Min-
ister Veltchev (see Daily Summary of 8 August, item 7) and other politi-
cal and military leaders who have opposed the Fatherland Front regime.
12. IRAN: Ne tiationh Jan no pr r--US Ambassador
Allen reports that chances of agreement in the current negotiations bet-
ween the Iranian Government and Azerbaijan "are very small." Qavam
apparently still intends to employ force if necessary to bring Azerbai-
jan under control but is not cheerful over the prospect.
FAR EAST
13. JAPAN: _lemt_riati_a___E...1 from ritish-co ta....cLairmse --SCAP strongly
disapproves the British proposal to retain 91,000 Japanese in SEAC
areas until the end of 1947. SCAP contends that the proposal violates
the Potsdam Declaration, increases the burden of the occupation, and
establishes an undesirable precedent in future negotiations with the
USSR and the NEI. He continues to recommend 31 December 1946 as
the target date for re .4triation.
14. INDOCHINA:r ibicreamjni_sichltrpo st_p_r_ne --US Consul Saigon
reports that the French are bringing more troops into Indochina than
are being returned to France and that many jeeps and trucks bought by
the French from surplus property still bear US Army and Navy mark-
ins.
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