DAILY SUMMARY - 1946/07/27
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02036459
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Now.,
3.3(h)(2)
GENERAL
27 JUL 1946
137
1. British attitude on Palestine plan--Grady has informed Byrnes that
the l3ritish do not expect either the Arabs or Jews to approve formally
the US-U1K plan for Palestine as worked out in London but are count-
ing on "a measure of acquiescence" from both sides. Grady adds that
as soon as the British have decided to go ahead with the plan they will
at once implement the movement of the 100,000 Jews into Palestine.
2. S air* re rted will to make deal ith UK�US Milita Attache
reports, that the
Franco Gove 1 a ...' I tcai s ess to carry out
certain internal reforms and restore the Monarchy in return for "official"
assurance of British support (see Daily Summary of 17 July, item 2).
Informed Spaniards are said to regard this change in British policy as
one reason for Franco's deferring changes in his Government.
3. Soviet da in Ital --Legation Bern has been reliably informed
onsulate to be established in Lugano will employ over
eighty people for infiltration and propaganda. 0-2 MTOUSA reports from
Caserta that Communist propaganda agents, well supplied with funds,
appear to be active throughout Italy.
EUROPE-AFRICA
4, USSR: Smith comments on Zhukov transfer--US Ambassador Smith re-
ports that there is some circumstantial evidence" that Zhukov has been
replaced by n`oniev as commander of Soviet Ground Forces. The fact
that censors passed news stories of Zhukov's transfer to Odessa "suggests"
that the report is true. Smith adds that the rumors about Zhukov and the
removal of two other high Soviet officials do not appear to afford evidence
of a widespread "reshuffle of high military and security personnel."
5. MAN: EatInsioi of ko mission-war -US Ambassador Allen expresses
the hope that the US will not hesitate to grant Qavam's request for a two-
year extension of the Schwarzkopf mission.
Soviet proposal for civil air routes--Allen also reports that the
USSR, �arent1y1iecau1.ian has resisted the proposed Soviet air monop-
oly in northern Iran (see Daily Summary of 24 July, item 9), has requested
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FIDENTIAL1
Iran's permission to fly four civil air routes from the Soviet Union into
Iran. One route would connect Baku, Tehran and Abadan and continue on
to Cairo.
6, ENGLAND: Labor loses ound in b -elections�Ambassador Harriman,
In commenting on recent by-election resiitts, votes that Labor has lost
ground for the first time since the general elections and that the losses
have been largely on domestic issues. He observes that Labor leaders
expected to lose ground after about a year and that political feelings are
gradually dissolving personal comradeships developed during the war-
time coalition.
Labor Party mission to visit Warsaw�Harriman also reports that
the Labor Party goo -will mission aiiir�o�ceed from Moscow to Warsaw.
The Foreign Office is "somewhat concerned" because the visit will be
with the pro-Communist "Social Party" rather than with the Peasant Party.
FAR EAST
7. CHINA: Civil war impending--Ambassador Stuart reports that the in-
creasing scoand- violence of clashes between 7cuornintang and Commun-
ist forces throughout China indicate the imminent approach of full scale
civil war.
Security of forelign nationals in Shanghai�US Consul General Davis,
in answer to official French inquiries, has replied that US representatives
in Shanghai (a) look to the Chinese authorities to protect US nationals and
other foreigners and OA have no reason to anticipate any need for the use
of foreign armed forces for this purpose,. Davis added, however, that should
the situation develop beyund Chinese control, "American assistance would
be extended to American nationals and for humanitarian considerations to
such other foreign nationals as might require it."
8. Malino Conference�US Consul General Foote reports that certain
members of the Dutch delegation to Malino have been outspoken in their
praise of the Indonesian delegates. These Dutch members believe that if
Soekarno falls in step with the developments at Malino, real progress will
have been made towards the end of trouble in the N.E.I.
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TOP SECR
IDENT1A11
THE AMERICAS
9. BOLIVIA: Recognition_te considered�The State Department
has advised the various US Embassies in Latin America that several
American Republics have asked the US Government for its views on the
recognition of the new Bolivian Government. Ambassador Wiley reports
from Bogota that the Colombian Foreign Minister is critical of atrocities
committed at the time the Villarroel government was overthrown.
US Ambassador Flack reports from La Paz that the majority of
deaths occurred when Government troops and police fired on unarmed
students. Flack feels that order is slowly being restored and that the
new regime is "substantially" meeting conditions for recognition.
10. ARGENTINA: British views�According to Harriman, the British Foreign
Office is of the opinion that, because of the world food shortage, Argentina
feels herself to be in an advantageous position which will last for five years.
The British also believe that such an attitude shows a lack of comprehension
of world developments and that the members of the Argentine government
have little ability and no experience In International affairs.
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