DAILY SUMMARY - 1946/05/13

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02578623
• Document Creation Date: September 11, 2018

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1. up_Ap2 roves UK discussipra2Lja_mpmtlimLraAment drafts�The Secre-
tary of State has instructed Ambassador. Harriman to inform the British
Foreign Office that he has no objection to its discussion with the Dominion
Governments and the Government of India of the US draft treaties for the
disarmament and demilitarization of Japan.
EUROPE-AFRICA
2. USSR: Stalin refuses wheat for UNRRA�To President Truman's request
that the Soviets sell wheat Co- UN�rsee Daily Summary of 6 May, item
4), Stalin has replied: (a) if the request had been made three months ago
"the Soviet Union could have done something;" (b) the resources of the
USSR have "come to an end" as a result of allotments to France and
other countries; and (c) the USSR agrees in principle to coordination with
other countries exporting grain, but the matter "demands special study."
3. CZECHOSLOVAKIA: Delay of loan until after elections urged--Ambassa-
dor Steinhardt "urgently recommends'" that announcement of the proposed
$50 million Export-Import Bank loan to Czechoslovakia be postponed until
after the 26 May elections. He believes that the Communist Party would
immediately claim that the loan was the result of its efforts and thereby
gain a decided political advantage. Transportation difficulties probably
will prevent the arrival of Soviet wheat before the elections (see Daily
Summary of 10 May, item 10).
HUNGARY: Coalition cabinet threatened by Transylvania award--Accord-
ing to Minister Schoenfeld, the action of the Council of Foreign Ministers
in awarding all of Transylvania to Rumania has seriously weakened
Premier Nagy's coalition cabinet. The cabinet had made considerable
concessions to the Hungarian Communists in the expectation that the
latter could obtain Soviet support for Hungary in the peace settlement.
Schoenfeld reports that the possible fall of the Nagy cabinet is being
openly discussed.
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5, GERMANY: Byrnes' comments on State Department's plan�Byrnes
has informed the State Department, after consulting with General Clay
on the Department's economic plan for Germany (see Daily Summary
of 11 May, item 5), of his belief that nothing is to be gained by resuming
reparations deliveries, even if the Soviets agree to negotiate a common
export-import program. (Clay feels that the Soviet opposition to a
common program is weakening.) Byrnes adds that "prospects are not
bright" for the solution of the problem of the political separation of the
Ruhr.
6. SPAIN: Position of the Giral overnment -in- exile --Embas sy London
reports that, according to two associates of Giral," the Spanish
"government-in-exile" (a) believes that if the ITS and UK recognize it,
a group of generals will seize power from Franco; (b) has no objection
to this seizure for the period necessary for the Giral organization (or
another Republican Government) to take over; (c) is ready to assume a
"firm obligation to hold an immediate plebiscite," (d) is not interested
in "collecting eastern recognitions," but considers that delay in recog-
nition by the US and UK "must inevitably weaken resistance to eastern
Influence;" and (e) desires "pacification" and not revenge.
7. LEBANON: Soviet interest in Arab unrest�According to Minister
Wadsworth, Lebanese Foreign Minister Frangie fears that the US is
"playing into the hand of Russian policy designed to make of Palestine
a focus of conflagration in the Arab world." (A similar view has been
expressed by the Syrian Prime Minister�see Daily Summary of 10 May,
item 6). According to Frangie, the Soviet Minister had called on him to
ask what Lebanon "was, going to do about the Commission's recommenda-
tions," and, when asked about Soviet policy, referred to Stalin's 1 May
speech which affirmedhupport for the independence of dependent peoples."
Frangie assured Wadsworth that while the report "has suited only the
Russian book," both Syria and Lebanon are convinced the best interests
of the Arab states are based on an understanding with the Anglo-Saxon
powers.
8. IRAN: Soviet withdrawalbut lLitt�According to Acting US Con-
sul TabFEVTAn ssistant US Military Attache Tehran, all reports avail-
able in Tabriz indicate that the Soviet withdrawal appears genuine, though
late, and therefore in violation of the Soviet pledge to withdraw by mid-
night 6 May.
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FAR EAST
9. SIAM: livotiations with French stalemated�Legation Bangkok
- reports that border incidents are likely to increase, since French
troops are fighting with the Indochinese along the Siamese border and
many Indochinese are seeking and obtaining refuge in Siam The Lega-
tion believes that any further negotiations between the French and
Siamese will be fruitless. The French declare that they cannot "wait
indefinitely" while the Siamese "consolidate their position in disputed
territories" but "may have to take action" before the heavy rains in
July. The Siamese Government considers that it would commit politi-
cal suicide if it acceded to retrocession of territory without compensa-
tion.
The Legation expresses its concurrence with a proposal of
the Siamese Foreign Minister that the US and UK (a) jointly reaffirm
to the Siamese Government their policy on the border issue, (b) ask
that the territories which Indochina "ceded" to Thailand be returned
at once, and (c) promise to do everything possible to insure that, after
the return of the territories, the Siamese case is given a fair hearing
by the UN.
10. .INDOCHINA: French assume responsibility fcr a ese�JCS reports
that the French authorities have agreed to accept complete responsibility
for all matters affecting the disarmament and repatriation of Japanese in
French Indochina as of midnight 13 May 1946.
11. CHINA: ransi of US Commander, Seventh Fleet, reports
� the following schedule for the transfer of US Naval lanciing craft to the
Chinese: (a) 14 vessels by 16 June; (b) 24 vessels by 25 June; and (c) 60
additional vessels during July.
THE AMERICAS
12. ARGENTINA: Wheat for Belgian TNT--When Ambassador Kirk in Brus-
sels asked whather a Belgian shipment of 1,000 tons of TNT to Argentina
(in return for 26,000 tons of wheat) could be stopped, he was told by
Premier Spaak that half the wheat was already in transit and the TNT
must therefore be shipped. Charge Cabot in Buenos Aires reports that as
a result of US objections Argentina "no longer wishes.' 1,000 tons of TNT,
but will import 400 tons.
VEMNTIAC
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