DAILY SUMMARY - 1946/05/10

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02578625
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2578625
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2578625
Approved for Release: 2018/09/05 CO2578625
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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1. Dominions Prime Ministers conference�The Foreign Office has given
Harriman a summary of recent developments at the Dominions Prime
Ministers conference which now has been adjourned until 20 May pend-
ing the arrival of Mackenzie King. .
With regard to Pacific bases, the Ministers agree that (a) -no
substantial concessions can be made now to US requests (see Daily Sum-
mary of 3 May, item 1); (b) the question of bases should be treated only
In connection with general Pacific defense plans; and (c) grants to the
US of bases in the British Commonwealth should be contingent on US
grants of reciprocal rights.
With regard to Europe, the Ministers agree that (a) Germany
should be treated as an economic unit, even if dominated by the Commu-
nist Party; and (b) the small states should have their just say in the
formulation of peace treaties. The ministers took considerable excep-
tion to the implications of Attlee's statement regarding the proposed .
British withdrawal from Egypt.
The Foreign Office spokesman gave no details on discussions
concerning atomic energy, as this question "would have to be discussed
between the UK and US on a high level." Discussion was also initiated
on the possibility of establishing a regional body to carry out social
projects in the southwest Pacific, on which the Dominion representa-
tives agreed in principle.
0 MAY 1946
73
2. Azores air base negotiations--Embassy Lisbon, after further negotiations
with the Portuguese, reports as preliminary conclusions that the Portu-
guese (a) expect Santa Maria to be turned over to their complete control
after 2 June; (b) will desire US technical assistance, although they believe
they can operate a commercial airfield themselves; (c) envisage use of
Lagens and Santa Maria by military aircraft in transit between US and
the US zone of occupation, but (d) do not expect any US military personnel
at Santa Maria for the performance of the transit operation. Embassy
Lisbon believes that the Portuguese will insist on a "new basis" for any
agreement after 2 June.
3. US urges action on Telecommunications Conference�Embassy London
has been instructed to discuss with the British parallel action in urging
the Soviets to convene promptly the five-power Preliminary Conference
Document No.
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Auth: DDA REG. 77/1763
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ed) c 41 77417
on Telecommunications, which had been planned for this spring in Mos-
cow. Further delay will necessitate a postponement of the World Confer-
ence, scheduled for this fall or next spring.
4. Soviet-Hungarian navigation company�According to Legation Budapest,
the recently established Soviet-Hungarian navigation company in effect
completes Soviet control over all Danube navigation from the Austrian
border to the Black Sea. Although the company's board of directors is
to be headed by a Hungarian, the chief executive will be a Soviet citizen
with power to administer the company and take any action without refer-
ring to the board of directors.
EUROPE-AFRICA
5. IRAN: Qavanfs difficulties with Shah--Ambassador Allen reports that
In his initial interview with Qavam, the latter stated that his negoilations
with the Azerbaijanis still had achieved no results. Qavam added, "in
the utmost confidence," that actually he has "come fairly close to an
'Now agreement with the Azerbaijanis" but that his real difficulties are with
the Shah, who advocates immediate occupation of Azerbaijan by the
Iranian Army. Qavam expressed the hope that Allen "would give the
Shah good advice" and added that Iran still is suffering from British as
well as Soviet pressure.
5. LEVANT STATES: Reaction to Palestine report--Minister Wadsworth
reports that Syrian and Lebanese reaction to the Palestine Commission's
report has been "disillusionment, hardening into determination to resist
Implementation of the Commission's recommendations." Wadsworth
suggests, in view of the "intensity of anti-American feeling," that the
State Department consider issuing an official statement assuring the .
Arabs that the US will take no decision without "full prior consultations"
with the Arab governments. He quotes the Syrian Prime Minister as
(a) stating that "Soviet influence is gaining ground daily at your expense"
and (b) suggesting that the Arab League may take the issue to the
Security Council "as one endangering international peace."
N Ti Art
Approved for Release: 2018/09/05 CO2578625
Approved for Release: 2018/09/05 CO2578625
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
7. GREECE: Plebiscite on the monarchy�Secretary Byrnes has informed
the British Foreign Secretary that the US Government (a) would consider
autumn of 1946 "satisfactory" for the proposed plebiscite on the Greek
monarchy, and (b) would be prepared to accept a formal invitation from
the Greek Government to provide observers in connection with the revi-
sion of the electoral register (see. Daily Summary of 6 May, item 8).
8. RUMANIA: Attempt to oust Vatican representative�According to the US
political representative in Bucharest, a spokesman of the Rumanian
Foreign Ministry has (a) threatened the Papal Delegate with "calumnious
disclosures" to be made during the trial of former Premier Antonescu,
and (b) sent the Delegate a virtual ultimatum to leave the country. The
Delegate intends to stay at h1s. post until forcibly removed.
9. YUGOSLAVIA: US air agreement now unlikely�Charge Shantz believes
that the US will E6117151e75734---el-�e ar rights in Yugoslavia at this
time. Operation by Pan American of a certified route through the Balkans
cannot now be arranged without "serious pressure" by the US on Yugo-
slavia.
10. CZECHOSLOVAKIA: US approves $60 million credit--The Export-Import
Bank has approved a $ million credit to Czechoslovakia, provided the
Czechs agree to pursue economic policies in harmony with US and world
trade interests and conclude a comprehensive economic treaty with the
US. The State Department hopes ta announce the loan next week in order
to (a) counteract the effect of expected Soviet wheat deliveries to Czecho-
slovakia on 15 May (see Daily Summary of 1 May, item 8), and (b) expedite
Czech purchase of US cotton to relieve the Czechoslovak textile industry
of its dependence on the Soviets.
11. SPAIN: CLop_prts "excellent"--Embassy Madrid reports that, in
view of "excellent" crop prospects, (a) Spain may have crop surpluses
available for export but (b) the country's transport system is inadequate
to mobilize crops efficiently. The Embassy asks for advice, "in the
light of world-wide food shortages," on overall US policy toward Spanish
food exports and assistance to Spain in improving transport facilities.
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Approved for Release: 2018/09/05 CO2578625
Approved for Release: 2018/09/05 CO2578625
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
12. FRANCE: Communist coup not believed imminent--US Military
Attaches In Paris and Madrid concur in the opinion that the Commu-
nists will not at this time attempt to seize power in. France (see Daily
Summary of 8 May, item 2). They believe rather that the Party will
concentrate on winning the 2 June elections by legal methods.
13. SWEDEN: Sale of surplus P-51's forbidden--The State Department has
informed Legation Stockholm that despite a previous Swedish-OFLC
agreement US policy on surplus arms prevents the sale of surplus P-51
aircraft to Sweden. (The OF LC Ps contract was concluded with the
Swedish Government without prior State Department approval.)
FAR EAST
14. KOREA: US to seek Consulate in North Korea--Embassy Moscow has
been instructed to approach the Soviet Government regarding the urgent
desire of the US to open a Consulate at P'yongyang (Soviet headquarters
in Korea). If the Soviets do not reply favorably within 15 days after
being approached, the US intends (a) to ask the Soviets to discontinue
Consular activities in Seoul, and (b) if the Soviets fail to comply, to
authorize General MacArthur to effect compliance.
15. CHINA: Early withdrawal of Marines from North China im ra.cticable--
Acheson has informed Byrnes that General Marshall (a) is encountering
great difficulties in accomplishing his mission, and (b) considers it
impracticable to withdraw the approximately 30,000 US Marines from
North China in the near future. (On 5 May Byrnes indicated to Molotov
that US troops in North China would be withdrawn in a month.) Acheson
concurs with the War and Navy Department opinion that it is inadvisable
to make any commitment with regard to a date of withdrawal.
THE AMERICAS
16. BOLIVIA: MNR tactics--Charge Adam in La Paz reports that the pro-
Peron MNR, party, which used torture and intimidation to achieve success
in the recent Congressional elections, is attempting to persuade the Presi-
dent to declare a state of siege and impose strict censorship on the oppo-
sition press.
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