DAILY SUMMARY - 1946/05/20

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02578619
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2578619
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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Approved for Release: 2018/09/05 CO2578619
Ap roved for Release: 2018/09/05 CO2578619
4PPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
EUROPEa
20 MAY 1946
1. RUMANIA: Pre-election terror inoreashg�General Schuyler, US
delegate ACC, reports a sharp increase of political violence in
Bucharest. Conditions in the Rumanian capital are now approaching
those of the provinces where opponents of the Groza Government have
been subjected to organized terror by the (Communist-dominated)
National Democratic Front (see Daily Summary of 26 March, item 3).
US Minister Berry was recently informed by Maniu that tnet-
bers of his conservative Peasant Party would soon have to decide whe-
ther to accept extermination by the Communists or "return violence
with violence." Maniu declared that free elections mould be impossible
without foreign observers, and asked that the US send such observers.
2. RUMANIA: Soviet re 1 to US retest on ro ert seizure--General
Susaikov, SoViet ieputy a rman ACC, has told General Schuyler that
the ACC "should not intercede" to prevent seizure by Rumania of US
property under the nationalization provisions of the agrarian reform
law (the US had protested this sei2ure on 5 April; see Daily Summary
of 16 April, item 5). Susaikov contends that (a) .although the companies
involved are US-owned, they are still "Rumanian juridical persons?'
and as Rumanian-owned companies subject to, the same laws; and (b)
their seizure, therefore, does not violate those Armistice terms which
prohibit confiscation by Rumania of United Nations property. Schuyler
comments that this reasonit g might permit the Soviets to refuse claims
by US-owned companies for war damages and recommends that the
seizure be taken up directly with Moscow.
3. POLAND: Dissolution of Polish Peasant pstyltE21--Karol Popiel,
head of the opposition Christi= Labor Party, has told Charge Keith.
that the Polish Provisional Government originally planned to dissolve
the Polish Peasant Party by 1 June, but will defer action because of
the US loan, the conciliatory British attitude on gold negotiations and
the need for US and UK support to counter Czech territorial demands.
Popiel expects measures against the Polish Peasant Party to increase,
although suppression may not be as rapid as originally planned. He
adds that final authority in the Provisional Government rests with "a
very small group" in the Communist Party Executive Committee.
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Approved for Release: 2018/09/05 CO2578619
Approved for Release: 2018/09/05 CO2578619
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Tidy4. HUNGARY: Soviet-Hungarian bank pro� -A prominent Hungarian
banker and industrialist has informed Min ster Schoenfeld that proposals
for the creation of a joint Soviet-Hungarian bank were submitted to
Soviet authorities four weeks ago by a Hungarian Communist banking
official. The plan, said to have been formulated with the assistance of
an official of the Soviet Ecohomic Section ACC, calls for a capital of
ten million gold pengoe, one half to be contributed by the USSR from
German assets in Hungary assigned to the USSR under the Potsdam
agreement.
6. ALBANIA: Attack on British warshim--According to the US political
representative in Caserta, CINCMED has reported to AFHQ that on
15 May Albanian shore batteries fired on two British warships en route
from Trieste to Corfu. The fire was not returned and there were no
hits. The British Foreign Office has (a) informed the Albanian Govern-
ment that it expects an immediate public apology for this "outrageous
action," with assurance that the persons responsible will be severely
punished, and (b) deferred notification to the Albanian Government that
British officials were prepared to resume diplomatic relations.
6. ITALY: AMG enclave in Venice r2p2itc.1--General Harding, Commander
XIII Corps, has told AFHQ, according to the US political representative
In Caserta, that recent events in Venice demonstrate the inability of
local Italian authorities to maintain order (see Daily Summary for 14
May, item 3). In view of the importance of Venice to the administration
of XIII Corps, "particularly in event of operations," Harding has re-
quested SAC authorization to draw up an emergency plan for an AMG .
enclave covering the port and depot area of Venice.
7. FRANCE: Unwillingness to observe Greek plebiscite�Bidault has in-
dicated to both Caffery and Bevin his reluctance to join with the US
and British in sending observers to the Greek plebiscite.
8. IRAN: 2avam's attitude--Ambassador Allen reports that information
received on 18 May indicated that Qavam would instruct Ala to tell
the Security Council that all Soviet troops have left Iran. Allen adds that
there is some evidence that Qavam wishes to "terminate the Security
Council aspect of the case" in order to relieve himself of embarrass-
ment in his relations with the Soviet Ambassador.
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Approved for Release: 2018/09/05 CO2578619
Approved for Release: 2018/09/05 CO2578619
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
9. FRANCE: Socialists ith Communists �Caffery
reports that the Socialist Party, for the first time in many years, will
not participate in a historic ceremony which it normally stages with
the Communists on the last Sunday in May. The Socialists believe that
the joint "manifestation" on the eve of elections would injure their
electoral position.
10. NETHERLANDS: No charge InNEI policy expcted--The Dutch Minister
of Foreign Affairs has informed Ambassador Hornbeck that the Catholic
Party election victory is not expected to alter present official policy
toward the NEI.
FAR EAST
11. CHINA: Approves US draft treat on a anese disarmament�According
to Embassy Nanking, eneral arsha has seen informed by Foreign
Minister Wang that the Chinese Government (a) fully supports the US
draft treaty on the disarmament and demilitarization of Japan and (b)
believes that the actual date for terminating Allied occupation of Japan
"should be a matter for consultation and agreement among the contract-
ing parties."
12. CHINA: Shippin re guest for Chinese tr22ps to relieve Marines--The
Commanding General,rmy orces in China, reports that the
Chinese National Government has requested that two additional armies
(5th and 26th) be transported by US ships to North China to relieve the
US Marine 3rd Amphibious Corps. The request has been referred to
General Marshall.
CHINA: Communist activities Shanghai--The Commanding General,
US Army Forces, reports that, according to usually reliable sources,
the Chinese Communists have established a "Shanghai Municipal Com-
mittee" with functions corresponding to the Kuomintang's Shanghai
Municipal Council. The Communist "Committee" maintains close under-
cover liaison with Soviet agents and is intended to form the nucleus of
a city government should the Chinese Communist Party gain control. '
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Approved for Release: 2018/09/05CO2578619