DAILY SUMMARY - 1947/11

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02643634
• Document Creation Date: October 8, 2018

A
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GENERAL
Views of AFL re resentative on French strike situation�Irving
Brown, the chief Europeali rep resen tive o s expresse
to US Ambassador Douglas in London the following views on the
French labor situation: (a) the current strikes in France "are a
gradual build up to a general strike as an instrument for seizure
of power by the Communists". (b) worker opposition to Communist
domination of the CGT is beginning to appear and could, if it deve-
loped rapidly as the majority of workers realized the revolutionary
and political implications of a general strike, frustrate a prolonged
general strike; (c) the Government could make the strike a clear
political issue and enlist the workers in a back to work movement,
thus discrediting the Communist CGT leadership.
(CIA Comment: CIA concurs with the view that a majority
of the workers would not support a general strike of a purely poli-
tical nature. CIA believes however, that the Communists will re-
frain from calling such a believes,
at this time in order to avoid pre-
cipitating a showdown with the Government.)
FAR EAST
2. SIAM; Anti-cnun rrnims rezneertprihr nrn r. en c e "war of nerves"�
tligliFig"Thrlars Tild other
anti-coup groups have commenced a "war of nerves" directed at
the Abhaiwong Government, The MA believes that the immediate
strategy of the Free Thais is to create disaffection among the Siamese,
particularly the military. The MA comments that the strategy of
these groups is feasible if armed conflict does not go beyond scattered
guerrilla activities on the Part of extremists.
�Co
- THE C.I.A. HAS NO OBJECTION �
TO.THE DECLASSIFICATION OF
THIS DOCUMENT.
No. 4 APR 1978 0�17
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ITAti
CRITICAL SITUATIONS
EUROPE.AN RECOVERY��,
No significant new development.
GREECE
The Greek Government is ,considering the desirability Of resuming
normal diplomatic relations with its northern neighbors. Such a
step would demonstrate Greece's good intentions before the UN and
would pave the way for the possible re-establishment of the Balkan
Entente should the Satellites eventually install democratic governments.
CHINA
� No significant new development.
THE C. I.A. HAS NO OBJECTION
TO THE MCLAS'SIFICATION 0 7
THI.P0CUMENT..
4 APR 197$
No.
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NEAR EAST-AFRICA
1. IRAN: Possible actionsaffected elements from USSR--According
to US Ambassador Allen, the Iraniaiirriny Commander in Tpbriz
(Azerbaijan) has reported that Soviet agents in Azerbaijan are advis-
ing their friends to be prepared for a three-Pronged drive, on or about
13 December, by Soviet Azerbaijanis and by disaffected Iranian elements
now in the USSR. Allen adds that: (a) Iranian garrisons at key points
in the northern provinces have been strengthened; and (b) most military
officials in Tehran believe that the reported action "would create a
considerable Problem but could be contained by the Iran military."
(CIA Comment: CIA considers that if the USSR does not give
strong military support to the alleged invaders the Iranian Army
could contain such a drive.)
2.
FAR EAST
SIAM. The-nrpmier plans opposition to new re ime--
3.3(h)(2)
as receive repor s a ous es remier Thamrong
plans tirst to oppose
the new governm
d later
speeches fail,
to use force if political
considers 3.3(h)(2)
that resort to force is unlikely.
US Embassy Bangkok renorts that the Free Thais, Thamrong's
Principal support, are fairly disorganized but they still appear to
possess considerable quantities of arms despite daily seizures by
the new regime.
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No sIgnificant new
No sl.gnificant new development,
CIIINA
No sf.a.nificant new development.
Document No.
NO CHANGE in Class. LJrl
0 DECLASSIFIED
Class. CHANCED TO: TS S
DDA Memo, 4 Apr 77
Auth: DD R G. 77 1763
Date; BY:
THE .A. .A. HAS OBJECTION
TO THE rCLAIFICATION
THIS DOCb iT.
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� 1 �
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GENERAL
Foreign Minister's views--US Charge Key reports from
-
laneiro that Brazilian Foreign Minister Fernandes expezts
i leernational situation to "deteriorate rapidly" following tr.e
C: ceyaference in London and has exeressed the view that art eed
Mee may "break out within a year.'" Fernandes added that-
h,.; hopes the US will resist the attempt of the USSR to exclu:le
Pee z from German peace negotiations; and (o) both the BraUan
ari,1 Vea,guayan Governments are convinced that the "soft polic;!"
of th US toward Argentina has encouraged that country to orgn.nize
ale bloc" between the US and the USSR,
1. Policy board requested for Us-UK Zone--US Political Adviser
f.-'ecommeicia�that a boarcrorMiree senior officials on a policy
leval representing the Department of State, the Combined Chiefs
of r4..: )i, and the Department of the Army be formed immediately to
guide the US-UK Zone Commander in the formulation of policy de-
cLeftons on Trieste, Joyce believes that such decisions cannot be
delayed without causing stagmation in the local situation, He cites
ar th 3 most pressing problems: (a) foreign exchange requirements;
(k) az deteriorating internal fiscal situation; (c) the need to counter-
at C cmmunist pressure on the school system; and (d) the financing
oi chi US information service.
EUROPE
3,, FRANCE: Little enthusiasm for Schuman Government--US Ambassadoe
Caffery reports that neither French political leaders nor the public
have a/fleeted Schuman's Government with any great enthusiasm. Caffery
estimates that the new Government may last several months but that,
if ft fails to cope with present problems, its tenure may be "a laestion
of weeks or even of days".
41.1:Lyn anticisates � � - ie e . . , ' ev :
ers French
Chief 31 Staff, (a) ULU Jirmy
anticipates no serious trouble during the present critical situation but
is prepared to handle any eventuality; (b) experience indicates that
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w1:23 the Governmentosupports its actions with force, Communist
opposition backs down; and (c) draftees being recalled to military
duty have recently shown a quick and patriotic response
FAR EAST
4. INDOCHINA: French continue to play dawn offensive--According
to US Consulat o,eiiliiie c1aiii� an official
communique that recent operations against the Vietnamese are
not on a large scale but are only local actions. The Consulate
points out, however, that the number of these local actions approxi-
mates a large-scale operation and expresses the opinion that con-
tinued French emphasis on limited objectives is designed to permit
F,;receittl withdrawal if the fall campaign fails to achieve its purposes.
5. SIAM: Civilial_222__�nilitivalry in new regime-
warns that although the Khual----)haiwong Government is
anperently succeeding in consolidating its position, the military
element in the coup group can still overthrow the civilian cabinet.
Abhallwong reportedly claims to be planning to eliminate PhibulPs
In re: ence in three months, but military figures believe that PEreurs
prerence will be "necessary" for at least a year.
CIA Comment: A protracted struggle for control of the
Government is in prospect. The struggle between the civilian ele-
ments in the coup, headed by Abhaiwong, and the military under
Phileul will be complicated by efforts of the ousted Free Thai move-
ment to regain power in the elections scheduled for February 1948.
The relative power of the army group is increased by the spit': in
civilian groups between Abhaiwong and the Free Thais and may make
it possible for a military leader to take direct control as premier.)
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,
7
MOT? EAN RECOVER
leant new development.
GREECE �;
No -signijcant new development.
A
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CRITICAL SITUATIONS
� �
X 5 NOV 194/
543
CHINA
No significant new development.
""
Document No. /717
NO CHANGE in Class.
Ei DECLASSIFIED
Class. C112.ICCD TO: TS S
-:DDA Memo, 4 Apr 77
Auth: DDA P.",7G, 77/173
Date:,EKijiii" BY; TIEE:
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GITNERAL
try. nositien on Spain�US Embassy London has been informed by the
Ti--"K Foreign Office that Eevin has reached the followinw. conclusions
regarding Spain: (a) nothing further can be done until -Gil Robles
(the leading political adviser to Don Juan) and Prieto (right-wing
Socialist leader) have reached agreement on the Interim Spanish
Government to follow Franco, including a decision as to whether
Don Juan will become chief of state; and (b) no consideration should
be given to approaching the Vatican for cooperation until it is clear
-what course Gil Robles and Prieto will agree upon. According to
the Foreign Office, Bevin has informed the two leaders-in-exile
that he is encouraged by "the measure of agreement" they have
reached, and he has told Prieto that he is ivoosed to sanctions
against Snain and to intervention by the UN.
(Prieto and Gil Robles met in London in mid-October with
tacit UK anoroval and reached agreement on many major outstand-
ing issues which have prevented the formation of an anti-Franco
centrist coalition. However, they did not agree on the procedure
for forming an interim government. In order to compel Franco to
step down, Gil Robles pr000sed to enlist the aid of the Vatican.
(Bevin has long believed that Spanish opposition groups, ex-
cluding Communists, should be encouraged to reach agreement on a
successor regime to Franco and that outside interference serves only
to strengthen Francois position. Bevin also feels strongly that the
Western democracies can not deal with Franco.)
2. London Poles critical of Mikolajczik--US Ambassador Douglas in
London re reports that Polish emigre" government circles in London
are very critical of Mikolajczyk's past and present activities. Al-
though the London "emigres" reportedly believe that their president,
Zalewski, will remain the unquestioned head of Polish emigres in
Europe, they fear that Mikolajczyk may split the Polish emigre move-
ment by attracting an important following in the US. (Mikolajczyk
was reported to be leaving by plane for New York on 25 November.)
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EUROPE
3. FRANCE:Sti_sgstum_p_k_t_pmnized labor resistance--US Embassy
Paris comments that the present wave of Communist-sponsored
strikes is encountering organized resistance even in Communist-
dominated basic industries. The Embassy expects this resistance
to increase greatly if the new Government imposes a secret ballot
for strikes and provides adequate police protection for workers
refusing to go on strike. In many industries where secret ballots
have been held, the majority of workers have reportedly opposed
strike action.
4. CZECHOSLOVAKIA: ji ewsen Czechmloyakeitation.- -
res ident Benes has personally expressed to US Ambassador Stein-
hardt his belief that recent Communist defeats--in the Slovak crisis
and in the removal of Fierlinger, left-wing President of the Social
Democratic "arty--have restored balance in the Government and
have bolstered the morale of non-Communist leaders and the gen-
eral public. Benes anticipates that the Communists will make at
least two more efforts to influence the May elections through intim-
idation, or even terrorization, but he believes that the severity of
any future crisis will be less pronounced. Steinhardt adds that the
Czechoslovak president, who apparently has recovered substantially
from his stroke, showed more hostility toward the Communists than
at any previous meeting.
NEAR EAST-AFRICA
5. IRAN: Allen urim US firmness vis-a-vis USSR--US Ambassador
Alien believes that a US aerial map survey of Iran, as requested by
the Iranian Army, would be valuable and sees no objection to such
a project provided that the Iranian Government requests it Allen
adds that, while the USSR would cite the survey as further evidence
of US control over Iran, a "timorous attitude on our part would be
construed as weakness by both Iranians and Soviets at a time when
we should maintain the positive policy vis-a-vis the USSR which is
showing good results at least in Iran."
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if.ni)assy pror?colv forf::-�,pf s noimmediate, poviet action�US
Inssy Mosco,,, reports that it sees no indication �rOf any inaneaviet intention" to imo3ement the threat contained in the
recent note orotesttng lrm's rejection of the oil oropo,sal.
r1bass:), believes that tlw )te is calculated mainly to lay the
ba.;is for action at some more ?7�onit1ous time and that 'the undue
7;/1 and agitation inside 3ra are mea.nwhile serving the Krem-
imrposes.
THE AMERICAS
D0:411.1NICAN REPUB.-U(7: Reported arms purchase from Brazil--
k:!-1 Breabassy Caracas has beer informed'by the Venezuelan Foreign
-�111.:11rIter that the Brazilian Gm-ernment has sold to the Dominican
eight 75 mm. cannon, 800 machine guns, 10,000 rifles,
quantity of ammunition. The Foreign Minister "considers
th f,-.A.egoing beyond the nom4.131 needs of Trujillo and feels con-
zel.rbly they are intended for nse against Venezuela."
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CRITICAL SITUATIONS
EUROPEAN RECOVERY
'Meant new development.
'GREECE
No Significant new development.
CHINA
No significant new development.
5 Document No. 47
Aire illUV 10iti
542
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Class. -C.A.1::.77,) TO: T S
4 ATTr 77
auth: D 1. 7717.7'77
Date: 5 AF:): 1978 By: 073
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GENERAL
Iranian, Government fears further Soviet action--US Ambassador
Allen reports that the Soviet note protesting Iran's rejection of the
oil proposal has disturbed the Iranian Government, particularly
Ole statements that: (a) the Iranian rejection is incompatible with
normal relations between Iran and the USSR; and (b) the Iranian
Government must bear responsibility for the consequences of its
action. According to Allen, the Government fears that if the Soviet
declarations can be taken at their face value, the USSR plans to
take some further action against Iran. Allen has informed the
Iranian Foreign Minister that he does not regard any serious Soviet
action as imminent and does not think the Iranian Government "should
t.kenrecivit2te action of any kind."
2, US. reaffirms need for retention of British military missions in Greece.
TheDenartment of State has informed US Embassy Athens that the
US decision to furnish additional military advice to the Greek forces
does not alter the US view that the British military missions should
remain in Greece (see Daily Summary of 20 November, item 2).
King' Michael considerisg exile--King Michael has told US Ambassador
Douglas in-Londoiiihir he will be required to sign Communist decrees
or abdicate if he returns to Rumania. Michael declared that he will
not sign the decrees and that to abdicate would mean death or im-
prisonment Michael asked Douglas whether, in the event of self-exile,
he might come to the US and issue a proclamation to his people.
Douglas believes that if Michael decides not to return to Rumania,
his statement should be published in Europe before his departure be-
comes common knowledge.
4. pigent noliny decisions on Trieste recommended--US Political Adviser
Joyce in Trieste reports that developments in the US-UK zone of the
Free Territory of Trieste have reached a noint where decisions on a
policy level can no longer be postponed without risking serious
deterioration in the US-UK position there. Although US Ambassador
Li
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Cannon in Belgrade believes that the present statute for the Territory
cannot succeed, he urges that the status quo be maintained until the
outcome of developments in Italy and France: the results of the CFM
meeting in London. and the effects of the European recovery program
ean be ascertained'.
5. Australia desires veto in Japanese peace settlement�The Department
a State has advised Secretary MailaMIntaiGirthat the Australian
Minister of External Affairs has been informed that the US is planning
to accede to the Chinese compromise suggestion for voting procedure
at the Japanese peace settlement. (Such a procedure, following the
Far Eastern Commission model, would permit exercise of the veto
by the US, the USSR, the UK, and China.) The Australian Minister
has indicated to the Department that Australia would cooperate if it
obtains either a fifth-power veto, or the power to exercise the British
veto.
EUROPE
6. HUNGARY: Communists Keptoslefily. ..plajLdrive against US--US Minister
Chapin has been told b�y�Cilwell-placed Government sources' that the
Hungarian Communists are planning a strong anti-US campaign designee,
to silence the Voice of America and to eliminate US influence in limit:car"?
Source stated that in this campaign the Communists would: (a) make
conditions for leives and children of US officials "increasingly disagree-
able if not actually dangerous"; (b) persecute Hungarian employees of
the Legation; and (c) attempt to suppress US commercial films and the
US information service bulletin. Chapin believes that increased Com-
munist activity in Hungary is coordinated with some broad Soviet plan
for domination in Western Europe and reflects the "complete readiness"
of the Hungarian Government to cooperate with the USSR.
'V ITALY: Easing, of war damage claims held necessary�US Ambassador
Dunn considers that payment by Italy of war claims advanced by nationals
of UN members will cause a severe setback to the internal economy If
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Italy. The claims, according to Dunn, total approximately 250 billion
lire of which some 28% is being sought by US citizens. Dunn believes
that payment by Italy of these claims will allow Italian Leftists to
contend that the US is "giving aid with one hand while demanding
reparations with the other." As a possible means of easing Italy's
financial burden, Dunn suggests either that: (a) the US allow Italy
to use in its budget the lira funds which will accrue from the new
interim aid bill; or (b) France, the UK, and the US agree to permit
settlement of these claims from the liquidation of German assets In
Italy. Dunn adds that he "cannot stress too strongly the importance
and urgency of this matter."
8. AUSTRIA: SeEtsql.m.... ercussions of currenc conversion law�The
Commanding General US Forces Lustria reports that the new currency
conversion law is solidly supported by the Socialist Party and the Trade
Union Federation but is not popular with the people. The law, he adds,
has: (a) already faced the Government with a "30-day period of eco-
nomic paralysis"; and (b) presented the Communists "'with the kind
of ormortunity they know well how to exploit."
'US Minister Erhardt cites the "inept" timing of the law; the
first result of which has been to give the USSR "additional important
means of pressure on the Austrian Government."
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-YYtt!, � Aliff '
GENERAL
1. Finnish-Soviet mutual defense pact believed possible--US Charge
iiiInki believes , eup e c �� en s of the exist-
ence of a mutual defense pact with the Soviet Union some under-
standing along these lines may have been reached during the Finnish
Cabinet's recent visit to Moscow. The Charge was informed by the
Finnish Minister of Defense that the Moscow visit "has not yet pro-
duced any far-reaching results, although something important may
-be forthcoming soon."
EUROPE
2. FRANCE: Communists plan successive strikes in Paris--US Mill-
tary Attachelia7s`WinTor-./riaWiligii.M. -re-rfa-Bre�sa7lirce that
� the French Communist political bureau has plans for successive
strikes in the Paris area with a general strike to follow in that
area if Moscow so decides. Source also states that "Communist
shock troops" will demonstrate against increased transport fares.
These demonstrations, source adds, will not be undertaken without
the Soviet Embassy's anproval and are not to approximate an in-
surrection because Moscow does not want a Communist coup to
gain power but wants rather to destroy the French economy.
Mollet may...be acting for Communists--US Ambassador
Caffery renorts that a number of French political observers are
wondering whether Guy Monet, left-wing Socialist leader, "despite
Communist criticism of his action, may not turn out to be the French
Pietro Nenni." Caffery points out that: (a) Monet rallied a Social-
ist majority in the Socialist Directing Committee to defeat a com-
promise economic program, supported by Blum and Ramadier,
which probably would have avoided the present political crisis; and
(b) Mallet announced the proposed Blum cabinet before President
Auriol had advised Ramadier, thereby making it difficult, if not
impossible, for Rarnadier to remain as premier.
Document No.
o/c
NO CHANGE in Class. 0
0 DECLA SSIFIr:D
Class. C :A TO: TS S C
DDA Memo, 4 Ap:r 77
Auth: DLA 77/:L7,33
Date; 5 ,APR 1978 /37: 7/,r
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FAR EAST
3. CHINA: National Government rests emesEeng_US aid--US
Ambassador Stuart reports that the Chinese National Govern-
ment is officially requesting immediate US aid "because the
situation in China has become so acute." The National Govern-
ment requests payments of at least $25 million monthly, begin-
ning with next January, and proposes to carry out an internal
reform program broadly covering the economic, military, and
administrative fields. The Chinese Foreign Minister told
Ambassador Stuart that China is prepared to accept US super-
vision at least comparable to that contemplated in connection
with US aid to Europe.
(CIA Comment: The Chinese proposal is the first official
reaction to the tentative outline of $300 million in US aid to China
recently suggested by Secretary Marshall. The expressed willing-
ness of the National Government to accept US controls and to
institute a "program of fundamental internal reform" indicates
the desperation to which the National Government has been re-
duced by deteriorating military and economic conditions. However,
whether the Nationalists are capable of effecting such reforms,
even if willing to do so, remains questionable.)
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CRITICAL SITUATHONS
.1 �
EUROPEAN RECOVERY
No sipigicant nel,v development.
GREE CE
No significant new development.
CNA
No significant new development
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21 NOV 194
540
Document No.
NO CHANCE in C1as5.
DT2CLASSIFI:D
C1az5. C) TO: TS S C;
DDATAemo, 4 Ar 77
Auth: DDAiTG 77/17(35
Date: 5 APR 1978 By: "k3
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1, TiS-.111. allegedly_soonsoring_Balkan-yewish emigration�US banister
Leitoenieid in Bucharest has been told by the British consul there
in;tt: (a) two ships of Panamanian registry, ea.rrying an estimated
T1.000 Jewish emigrants, are scheduled to leave Constanza Lome-
time after 21 November; (b) there is a "high probability" that Soviet
agents will embark; (c) preference is being given to young Jews who
1,7aie received military training at camps in Rumania; and (d) the
Pritish anticioate difficulty in intercepting these ships since they
la,aa no warships in the Mediterranean from which these large trans-
ecats can be 'boarded. Schoenfeld considers it a "safe inference"
that Zionis;:s in Rumania are working in close liaison with Soviet.
officials (see Daily Summary of 18 October, item 2).
!�. Satellite plans for aid to Greek amp-1114R- 3.3(h)(2)
,
3onsiders "possibly true " a ieeport from the Greek General k
Staff that members of the Yugosiav, Bulgarian, and Albanian Gen-
eral Staffs met recently near Belgrade in order to discuss Satellite P
� surmort of the Greek guerrillas. ft was reportedly decided at the 1
co*rer.ce; (a) to increase guerrilla strength to a "valuable comba- i.
Lye: force in the Balkans"; (b) to improve guerrilla tactics by mili- i
� tary instruction; (c) to train a nucleus of guerrilla pilots in Yugo- ir
slavia; and (a) to furnish artillery support and motor transportation, 1,
EUROPE �
3. FRANCE; Sinkinv of cruiser attribu;-ed to Communists�French
...a.... I
eflicials have informed of their belief that the sinking 3.3(h)(2)
of the French battle cruiser STRASBOURG at Toulon was no: the 1,
act of "thieves," as reported by the Press, but was the direct re- i
suit of Communist sabotage, The officials report that Toulon navy L
yard auttorities recently had been warned that attempts at sabotage I
would be made in the near future. 1
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C"
4. ITALY: Commtnisturessing, attack on De Gasperi:--US Embzssy
Rome has been informalEat Nenni, 1w:der of the Italian Socialist
Party (PSI), has stated that the PSI mei the Communists are pr
paredto sign with a new coalition government a truce (the terms
of which would exclude the PSI and the Communists) provided that
De Gasper' yielded the premiership to an independent. Corbin�, -
Liberal Party leader, believes that this solution is the only possible
alternative to continued disorders and possible civil war.
The Embassylin interpreting the proposal as an effort by the
Socialist-Communist group to get rid of its arch-enemy, De Gosport,
comments that De Gasperi's removal would impress the public
a Communist victory, weaken the anti-Communist alliance oi! the
Democratic Christians and the Right Wing,- and promote turner crisef.
in the Government.
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CRITICAL SITUATIONS
EUROPEAN RECOVERY
No significant new development.
GREECE
Moderate Greek labor leaders have successfully resisted rightist
efforts to oust them from control of the General Confederation of
Trade Unions and have thus gained considerable strength and
prestige.
CHINA
o significant new development.
Document No. 013
NO CHANGE in Class. 0
0 DIECLASSIFIrD
Class. C'141-qC2D TO: TS S
.PDDA Memo, 4 Apr 77
Auth: DDA 77',. 77 1763
Date: 5 APR 1978
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- iiitT #4 r
4
GENERAL
1 Possible Soyiekmayesip CFM_bgateci--Acthig US Political
Adviser Riddleberger in Berlin transmits, as an indication of
possible Soy: let moves in the CFM, the reported remarks of a
high Soviet Military Administration spokesman at a secret meet-
ing of German Communist functionaries. According to the report,
evaluated as "probably true" and "from a usually reliable source,"
the SMA spokesman declared that Soviet representatives at the CFM
would demand: (a) approval of the Socialist Unity Party (SED) in
the western Zones; (b) a plebiscite on political unity for Germany;
(c) reparations based on current production; (d) the use of Ruhr coal
by German industry only; (e) increased production of finished goods
In Germany; (f) the exportation of goods from the western Zones to
t-1 USSR; and (g) the establishment of economic unity in Germany
Iiith a central German administration. The Soviet delegates would
zportedly be prepared to make such "concessions" as: (a) a re-
duction in size of the Soviet Army in Germany or else its withdrawal
beyond the Oder-Neisse line; (b) the cessation of the expulsion of
raugees; and (c) an end to the dismantling of plants for reparations.
2. Amactsoxampat,pkjaciulpsjpna ingnece--AMAG Chief Griswold
believes it important to dispel immediately the present uncertainty
among UK officials in Greece regarding the future status of the
1-2,!-Eltish military, naval, and air missions. Griswold reports that
the UK Embassy and the British missions had no advance information
of the US plan to give tactical advice to the Greek Army and "appear
bewildered" by it. British officials apparently assume that the
missions may be withdrawn. Griswold adds that US-UK relations
in Greece have been excellent and that he has given assurances that
the US desires the missions to remain,
EUROPE
3. FRANCE: kunaud unwillinglemler Government now--US Arabes-
dor Caffery reports that, prior to Ramadier s resignation, Reynaud
said that he does not choose, in the face of a possible general strike,
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'10 error tiek.701, ernment "at this luncture." Reynaud reportedly
-Zels that he q.Tould be a liability to the Government during a general
.-4.;rikl anti that it would be better for him to enter the Government
;:-Ir the strfce was over.
f77. also reports that Reynaud believes that the new
Aret will have to achieve a "quasi-neutrality" with De Gaulle
av-i that it should include a member of the Gaullist parliamentax7
:f up. :,:aife.Ty considers it improbable that any member of the
Gsullist rarliamentary inter-group will accept a cabinet portfolio
23.9. Gaulle 's permission.
USSR: Smith protests Sovfet restrictions _upon US Embassi--US
Ahcssaticr Smith has protested to Molotov the recent actions of
Sovi3t Government in restricting the importation of supplies
to the efficient operation of the US Embassy and the
irtro r71 the USSR to make available adequate offices and quarters
oi the Embassy staff. Smith also told Molotov that "so long as
is tt reasonable prospect of arriving at some equitable arrange-
r. the Soviet Government:" the US will not apply similar
w-Aric.;i-.17.ve measures to Soviet persornel in the US.
FAR EAST
SIAM: UK_reactions to new reAime--US Embassies Bangkok and
Liduireport that Pridi, Free Thai leader, (who has reportedly
bc;11 zonsiderinv, a counter-coup) has ordered his adherents to re-
from action and has announced his intention to leave Siam. '
rfTi-i UK Forecm Office reportedly takes the view that the UK, the
al.,5 ether concerned powers should continue the present policy
ty; lon-reeogelion nending clarification of the nature and objectives
o ':74:1e new regime.
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VTR AMERICAS
o. ARGENTINA: Peron's misinterpretation of US aims denied�US
Ambassador Bruce states his opinion that President Peron did not
4:e1l the Brazilian Ambassador in Buenos Aires that the US desires
the other American Republics to sever relations with the USSR (see
Daily Summary of 12 Novembers Item 12). Bruce comments that
the Brazilian Ambassador has repeatedly "gone out of his way" to
n.,f3cribe "evil intentions" to the Argentine Government
(-CIA Comment: CIA also doubts that Peron made such a
r,.1.atement and continues to believe that Brazilian reports about
Argentina should in general be viewed with skepticism.)
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II .
CRITICAL SITUATIONS
EUROJTAN R.ECOVERY.
No significant new development.
� � GREEC
No 'significant new development.
CHINA
High Chinese officials am extremely despondent in the face of
critical developments fn China (see Item 7).
Document No.
NO CHANGE in Class. fl
D Dr,CT:ASSIFIL'D
,C1a3s. CAJcTJ TO: TS
l':',74.11o, 4 Apr 77
7 1,7 77./3.731
Dat .5-7WR 19-Tu
By: 73/
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(4�12NERAL
� 1. Italy may propose Dartition of FTT--US Ambassador Dunn has been
lanai loielga Office official that Italy may petition
the UN to revise the Italian Treaty so as to permit the partition of
the Free Territory of Trieste: the northern zone, including the city
of Trieste, to go to Italy and the southern zone to Yugoslavia. Dunn
and UK Embassy Rome believe that US or UK initiation of such a
proposal at this time would "be detrimental to the US position vis-
a-vis Yugoslavia and would be extremely harmful to US prestige in
(CIA Comment: CIA doubts that Italy will present such a.
petition to the UN without obtaining prior consent from the US.)
2� Syrian official's views on Arab plans�The Syrian Defense Minister
has outlined tc "the real Arab con-
ception'. of the military situation in Palestine. The Minister stated
that: (a) the nucleus of the Arab People's Army--which is already
partially organized and ncw undergoing training�consists of 40,000
"Ialestine Arabs with foreign army or gendarmerie experience; (b)
Arab Palestine can logistically supPort the present force, will obtain
additional supplies from neighboring Arab states as the army grows,
and anticipates no armament or personnel replacement nroblem;
and (c) Hagana (military arm of the Jewish Agency) has no more
than 50,000 trained men available. The Minister foresees a long-
term, harassing guerrilla campaign against Jewish communications,
utilities, and other facilities, eventually weakening the Jews "to the
point where they can be overrun." The MA, in commending the
Minister's "realistic approach," notes that he made no suggestion
that Arab national armies will be employed.
EUROPE
3. FRANCE: De Gaulle reported favorable now to Blum-Reynaud�
US Ambassador Caffery has been told by a 'confidant of De Gaulle"
that De Gaulle now considers a Blum-Reynaud government "the best
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possible formula of transition" pending his own return to nly,7 er
and that De Gaulle would maintain an attitude of neutrality toward
such a government.
(CIA Comment: De Gaulle's apparent change of attitude is
probably based on his desirc not to return to power at the present
time, De Gaulle is likely to refrain from violent attacks on any
non-Communist government until he feels strong enough to take
control 7iirnself.)
Bidault Prefers P2372,21.xl-Blum overnment�Bidault has
eknolained to Caffery that, although he is taking no part in the
current negotiations toward the formation of a new government,
ha would prefer to have Reynaud at the head with Blum in the
secondary position. Bi&ult prefers Reynaud because he thinks
that i'sium is not prepared to take a sufficiently strong stand against
the Communists. Bidault added that Reynaud has informed him re-
peatedly that Reynaud will not interfere in foreign affairs, Caffery
feels that Bidault is principally interested in remaining the '`indis-
rensable man" in the Foreign Ministry regardless of who heads the
government,
40 GERMANY: Soviet state in eastern Zone re orted full ire �aredUS Consul Gener:s1 Altager in Bremen has been reliably informed"
that the Social Democratic Party of the western Zones of Germany
has "incontestable evidence" that a Soviet state in the eastern Zone
of Germany is already "fully prepared."
(CIA Comment: Although the Soviet Union may have drawn
up such plans, CIA doubts that it intends to put them into effect at
this time,. CIA believes that the Soviet Union will hold them in
abeyance for �possible subsequent application as "retaliatory
measures.")
5, USSR: Moscow places Italy .first on Cominform timetable�US
� Embassy Paris reports that, according to Bulgarian and Hungarian
diplomatic sources in Paris, Moscow has decided to direct the main
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efforts of the Cominform against Italy and now considers France
to be of secondary importance. A "very reliable leftist informant"
has told Ambassador Caffery that the Communists believe that
they may be able to seize power in Italy within the next two or
three mreths.
CIA Comment: It is likely that the Cominform will give
first consideration to Italy. However, CIA does not believe that
the Communists have the strength or the intention to seize power
In Wily through armed insurrection within the next two or three
months.)
NEAR EAST-AFRICA
6. IRAN: Allen ..Tposes direct US aid at this time--US Ambassador
Allen ria'orils that the Shah an-a-15176�ne MEggi Qavam have again
pressed for US aid to Iran. Allen is unwilling to recommend US
initiatioa of any direct aid program until the extent of Iranian
parliamentary opposition is determined. Allen has suggested to
Qavam that open discussion in the Majlis of the present US arms-
credit nroposal is the best method of ascertaining the extent and
weight of the opposition.
FAR EAST
7. CHINA: National Government leaders de ondent over crisis--US
Ambassador Stuart reports con c on se atiotal
Government officials have become genuinely disturbed and despondent
because of the critical stage of developments in China, and are sincere
In their attempts to impress upon him the urgent need for US aid.
Chinese excha Le assets ra idl d- sle
--Stuart also re-
ports that, according to estimates prepar - � �y 'r.Young, Financial
Adviser to the Chinese Government, China's official holdings of for-
eign exchange, gold, and silver will be rapidly depleted in forthcoming
months and may be completely exhausted by April 1948.
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3., SIAM: New regime seeks foreVn recognition--US Ambassador
Stvnton in Bangkok reports that Siamese ex-Premier Thamrong
is apparently planning to set up a government somewhere in Siam
to oppose the regime installed by the 9 November coup. Thamrong
and his supporters expressed the strong hope that recognition of
the new mgime would not be accorded by the US and other countries.
Stanton has been informed that the coup regime has made efforts
to gain support for recognition from UK, French, and Chinese diplo-
matic representatives in Bangkok.
THE AMERICAS
9,, ARGENTINA: Peron's reported concept of US aims--US Ambassador
Warren in Asuncion has been informed by the Brazilian Ambassador
that Peron recently told President Morinigo that: (a) the US wants
all American nations to break relations with the USSR, leaving the
US the only link with Moscow; (b) the US has been bringing great
pressure on Peron to break with the USSR; and (c) Peron will sever
relations with Moscow only if the US does the same. ('\ similar re-
port was received recently from another Brazilian source; see Daily
Summary of 12 November, item 12.)
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48
c A S ATIONS
EUE,IDPEAN RECOVERY
No significant new development.
GREECE
sAgnificant new clwelopment;
e;11.1.1?..Y. 'I?.
CHINA
; 4 1
Document No.
18 NOV 1947
537
T3,20.....111-27.-217.=D
C T3 S
1T:7X. , 4 1.77 77
'77
-APit1978
:Data: 13y:
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It
EUROPE
1. FRANCE: No agreement reached on Ramadier successor--US
Ambassador Caifery reports that no agreement has gair reached
in French political circles on a possible replacement for Ramadier,
though there are strong indications that parties in the present gov-
ernment are considering a new cabinet headed by Leon Blum, with
Reynaud taking over the portfolios of finance and national economy.
Caffery has been told by a leader of the MRP, however, that "it is
not at all certain that Blum will accept" and that there is "an equal
chance" that the talks between Blum and Reynaud may break down.
Police comment on Marseilles_ riots--US Consul Gray re-
ports from Marseilles that preactuu�i-rn Surete Nationale officials
maintain that the recent riots in Marseilles were ordered by Com-
munist leaders in Paris and were led by Communist shock troops.,
as a "feeler" toward a nationwide general strike. There are
"reliable reports," according to these officials, that rightist groups
such as the Rally of the French People (RPF) have also organized
shock troops to counter the Communists. The prefectural officers
believe that.the Communist shock troops "got out of hand" in
Marseilles and that events went farther and faster than Party '
leaders planned.
2. ITALY: Reports of "civil war" discounted--US Embassy in Rome,
commenting on recent isor ers in Italy, reports its view that a
"Communist coup de main is not imminent'. because the disturb-
ances occur in widely separate areas and are not simultaneous.
The Embassy suggests that the Communist aim in these demonstra-
tions is "undoubtedly" to test the Party's militant machinery and
to intimidate the public. The Embassy adds that Government police
powers are being applied with firmness and good judgment.
FAR EAST
3. CHINA: Sino-US economic administration for Taiwan�US Ambassador
Stuart reports that Chiang Kai-shek, in a recent discussion of Taiwan
(Formosa), heartily endorsed "in principle" some form of joint
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US-Chinese administration with emphasis on economic rehabilitation.
The Ambassador believes that the Generalissimo "may be willing to
act" because he is apparently aware of the growing Taiwanese dis-
content and the organization of an autonomy movement under capable
leadership.
(CIA Comment: Chiang Kai-shek gave his hearty endorsement
to a similar proposal made by Ambassador Stuart in late March, just
following the revolutionary disturbances in Taiwan. While it is likely
that he would be disposed to favor concrete proposals for US economic
assistance in rebuilding Taiwan, he would probably oppose any far-
reaching controls or insistence on political reforms.)
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CRITICAL SITUATIONS
EUROPEAN RECOVERY �
NO significant new development.
GREECE.
Rightist Greek labor leaders are apparently attempting to oust
moderate elements from the Greek Confederation of Trade Unions.
Such action would have repercussions in socialist Europe and
would likely cause British labor elements to bring increased
pressure on Bevin to withdraw remaining UK troops from Greece.
CHINA
Chiang Kai-shek s concern about ammunition shortages and the
danger of runaway inflation appears to have been intensified by the
prospects of further Chinese Communist offensives this winter and
the belief that the US aid proposals thus far disclosed will prove
far from adequate.
f
Document No.
0
NO CHANGE in Class. 0
ID DECLASSIFIED
Class. �CHANGED TO: TS S
DDA Memo, 4 Apr 77
Auth: DDA REG. 77/1763
5 Ann
Date: 7_2 12i_a_ By: C)�
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GENERAL
1. Embassy suggests information research unit�In order to
combat Soviet efforts to nullify any US program of aid for Europe,
Ambassador Smith in Moscow recommends that the US launch 2
comprehensive campaign to counter Soviet propaganda and unmas'r.:
Soviet actions. Smith proposes the establishment of a research
unit which would seek methodically, objectively, and factually to
expose false Soviet assertions, debunk Soviet propaganda, and
clar:fy US policies. He emphasizes that the most important objec-
tive of the Program should be to counteract the "terrible and develop-
'i g fear of imminent war which is overpowering Europe" and whi.,
under Soviet stimulus, has become one of the� greatest deterrents to
the svccess of the European recovery program.
EUROPE
2. FRANCE: Socialists oppose Reynaud--US Ambassador Caffery
reports thataItKougJFPaul Reynauds "increasingly mentioned"
as a possible successor to Ramadier, Caffery has been "reliably
informed" that a number of Socialists, including Blum, are opposed
just now to the "Reynaud solution." (De Gaulle has also been re-
ported as opposed to the return of Reynaud; see Daily Summary oS,
8 November, item 3.)
MRP leaders hope De Gaulle retirn unnecessa -Two
leadersThe Popu ar Republican Movement MRP have expresseti
to US Embassy Paris "qualified optimism" that France, with US
aid and an energetic government in power, may be able to weather
the coming winter and make a "De Gaulle solution unnecessary."
One leader told the Embassy that the situation had changed mateeally
during the past few days and that MRP is now negotiating to create a
new cabinet which would include a prominent representation of RCR
(primarily Radical Socialists) and Independents, with the Socialists
and the MRP in "supporting positions.'
The Embassy comments that because of the severe electoral
defeat of the MRP, many political leaders doubt that an MRP premier
wduld have sufficient public support to last very long.
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3, POLAND: Griffis' comments on Polish situation�US Ambassador
Grbfls in Warsaw reports that/Siring his six months as Ambassadors
there has been "a continuous deterioration" in US-Polish re1at4ons.
Griffis foresees "no immediate or far distant possibility whatsoever"
ef any change either in the present form of government or in tae gov-
eenment's complete subservience to the USSR.
4, BULGARIA: USSR m
y retain "Militar Mission" -�
aca ions of Soviet intentims
to withdraw troops from Bulgaria by 15 December in conformity with
the leace treaty and that Soviet officers are examining vacant living
quater3 In adds that the USSR may retain a "Military
edisson" In Bulgaria, although no specific agreement has apparently
been made ;set 'eon the 131 lgarian and Soviet governments.
NEAR EAST-AFRICA
5. PALESTINE: Single command for Arab armies claimed--According
to US Legaticn�Damascus, Azzam Pasha Arab League Secretary
General) has informed the British Charge that: (a) the armies cf Vie
Arab League states are now in fact under unified command; ID) the
Arab League will subsidize the Transjordan Arab Legion if the OK
drops its subsidy; (c) a token Iraqi force will soon move to TransjoreTh.n;
and (d) icing lbn Saud insists that Saudi Arabian troons be includ,P.d in
the Palestine border watch,
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3.3(h)(2)
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'T
GENERAL
15 NOV 1947
535
1. Ern7yr,..). Moscow's views onSoviet aims in Palestine�US Embassy
Moscow reports its conviction ihatT47v1Z17611-67WINI e Palestine
question is "deliberately calculated to insure unsettlement, rather
than settlement, and to create maximum difficulties for the British
and Americans in the Near East" The Embassy believes that Soviet
support of partition reflects the Kremlin's decision that: (a) both
Europe and the Asiatic colonial areas are "softer" for Soviet ex-
ploitation than the Near East; and (b) Jews and other minority groups
provide the "only immediately useful tool" for softening up the Near
Ea e1 for "eventual straight Communist cultivation," in view of the
e;rv..kness of indigenous Communist movements in the area.
UK reiterates stand on British troops in Palestine--The UK
has delivered a note to the Department of State emphasizing its
decision not to allow either "the British administration or British
troops in Palestine" to be used for imposing a settlement unaccept-
able to both sews and Arabs, The UK considers that: (a) it would
be "playing the Soviet Union's game" to allow British troops to be
enit5roiled in represoive aetion in Palestine against either Jews or
Arabs; and (o) the hestO.Vy aroused by the use of British troops
would be directed solely against the UK even though the troops
would be acting as agents of the UN.
4. Michael undecided -e:henar to return to Rumania �US Ambassador
'Caffery Paris he hastoldby a former Minis-
ter of the Rumanian Government that King Michael "would very
much like to talk to some renresentaive of the US Government
eohie in London. Michael reportedly said that he is undecided
whether to return to Rumania, whore his situation is "extremely
difficult," and that he would decide only after talking with a US
representative.
EUROPE
3. 17RANCE: Current French ComanuliS:t tactics�US Ambassador
Caffery reports that according to quallfied observe,rs, including
Document No.
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Ei DECLASSIFIED
Class. CHANGED TO: TS S
DDA Mcmo, 4 Apr 77
Auth: DDA REG. 77/1733
Date: 5 APR 197p r,Y:
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members of the non-Communist left and Interior Ministry, the
Communists "knowing that a showdown with De Gaulle is inevitable
and aware of the fact that the latter does not wish it to occur until
next spring, "are fomenting increased public disorders and social
unrest in order to force De Gaulle to make his bid for power pre-
maturely. Most observers believe that the Communists will continue
to promote local and regional strikes (which will prevent the Govern-
ment from stabilizing the economic situation) and "will reserve the
weapon of a general strike for the moment when De Gaulle endeavors
to come back to power."
(CIA Comment: CIA concurs in this estimate of Communist
intentions in France. This reoort, together with reports of Com-
munist-instigated disturbances even in Belgium (where the Com-
munist Party is relatively weak), suggests that a further Commu-
nist motive may be to arouse the fear in the US Congress that all of
Western Eurone is so dominated by Communism that US backing of
the European recovery program would be useless.)
4. UK: Bevin's views on international pro131em--According to US
Embassy London, Bevin has expressed to visiting US Senators the
following views: (a) a solution acceptable to both Arabs and Jews
could probably have been worked out in Palestine last year if it
were not for the activities of US Jewish organizations; (b) it amears
that the UK "gamble" in leaving India will be successful despite
initial massacres; (c) the best chance of getting rid of Franco is to
leave him alone, because outside interference will only rally Spanish
pride to his support; (d) France is the "keynote to the restoration
of the European economy"; and (e) Greece must be held because it
Is the "keynote to the whole Mediterranean situation." The Embassy
adds that Bevin made a "very favorable impression on the Senators.'
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_
CRITICAL SITUATIONS
EUROPEAN RECOVERY
No significant new development. -
No significant
�
No significant
GREECE
new development.
CHINA
new development.
D o oilmen t No.
NO CHANGE in Class.
O DECLASIFTED
ClaC:14',.,XT2D TO: TS
.DDA Mprilo, 4 Apr 77
DIA RZG. 77 1763
al? 1970 By:
Oz
0
, Auth:
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N mi�
GENERAL
olkytpward Y discounted�US Embassy London
reports that it detects no softening of UK policy vis-a-vis Yugoslavia
(see Daily Summary of 12 November, item 3) and that Foreign Office
officials have no illusions about Yugoslavia's position as "an aggres-
sive junior partner in the Soviet hegemony." The Embassy adds that
UK trade negotiations with countries in the Soviet orbit should not
be considered appeasement. The Embassy agrees that the US must
"carry the burden" vis-a-vis Yugoslavia but considers that the UK
is willing to help as much as it can.
The Embassy also reports that the Foreign Office: (a) opposes
setting up the Free Territory as planned, because Yugoslavia would
eventually annex it; and (b) in order to keep Trieste in the Western
orbit, favors placing the present US-UK zone under Italian sovereignty
and giving the Yugoslav zone to Yugoslavia (see Daily Summary of
10 November, item 2).
EUROPE
2. AUSTRIA: R_Aiinn crease to be annoupstil--US Minister Erhardt
and US Commissioner Keyes report that the Austrian Government
will be authorized to raise the basic caloric level to 1700 beginning
15 November (see Daily Summary of 10 November, item 4). The
VS officials, who indicate that the Austrian Government remains
firm in its belief that the basic caloric level must be further raised
to 1800, add that they consider such an increase to be "inevitable."
3. GREECE: Refugee problem rowljg-.AMAG Chief Griswold reports
that the Greek refugee problem (see Daily Summary of 27 October,
item 6) is too great to be handled by the Greek Government, or by
AMAG, unless the whole Greek reconstruction program is abandoned.
Griswold recommends that the US authorize another agency, with not
more than $50 million of additional funds, to handle the refugee prob-
lem until 30 June 1948,80 that AMAG can carry out its original pro-
gram.
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.gAR EAST
BURMA: Possible Communist reunion with Anti-Fascist League--
Premier Thakin Nu has told US Charge Packer that he plans to in-
vite the CommunistS to rejoin the Anti-Fascist League after they
have been disarmed. Although Thakin Nu says he is aware of Com-
munist "Trojan horse tactics," he considers that the Kremlin does
not direct Burmese Communists and that Burmese religious fervor
precludes strong popular support of Communism.
(CIA Comment: Because 'Thakin Nu appears to be the only
member of the Burmese Cabinet in favor of the rapprochement, he
may have considerable difficulty in effecting the reunion.)
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0.0%3
13 NOV 1947
No significatg new developnient.
CHINA
No significant new development.
Document No. /70
vo CHANGE in Class. 0
0 DECLASSIFIED
Class. C1ANGI.1 TO: TS S
DDA Memo, 4 Apr 77
Auth: DDA It:G. 77/1765
tate: 5 APR 197R BY: 0 ,*
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EUROPE
FRANCE: Bamadier Government "np_weaker"--US Ambassador
Catfery believes that Ramadier's position is no weaker than it was
two weeks ago and is "perhaps even somewhat stronger." Caffery
suggests that Ramadier has gained strength because De Gaulle has
clearly indicated that he does not wish to return to power at this
time and because the Parliament is unwilling to risk a premature
showdown with the Communists by voting Ramadier out of power
when there is no successor in sight Caffery points out that on 30
Octriber, when the Ramadier Government received its slender vote
of confidence, it was generally believed that the Government's sur-
vival was "a auestion of days."
Communistsmmorted promoting coal strike.--A "reliable
anti-Communist French trade unionist" has told Caffery that the
Communists are now attempting to create discontent among French
coal miners in order to bring about a strike in the coal industry.
According to Caffery's informant, the Communists consider that
such a strike would cripple the effort of the Government to stabilize
the economy and would create an adverse reaction in the US1par-
ticularly in Congress.
2. ITALY: Treasury Minister's views on currency stabilization--US
Ambassador Dunn reports the emphatic opinion of Treasury Minister
Del Vecchio that no arrangement can be made in the European re-
covery program for the free convertibility of European currencies
(as suggested in the CEEC report) until there is a stabilization of
these currencies at their proper levels. Del Vecchio believes that,
because of the reluctance of any one government to take action
ahead of the others, the initiative toward stabilizing currencies will
have to come from the US.
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NEAR EAST-AFRICA
3. INDIA: Cmgriak JeAcitmseek cqllogcstkakistan--A high
British Foreign Office official has expressed the opinion to US
Embassy London that the troubles between India and Pakistan
are likely to become much worse. The official believes that
Congress Party leaders accepted the establishment of Pakistan
as the price of independence and are now attempting to bring
about the collapse of Pakistan and its subsequent reunion with
India.
3
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40
CRITICAL SITUATIONS
EUROIMAN RECOVERY
o significant new development.
GREE CE
,
The Greek high command has formulated plans for a winter cam-
paign against the guerrillas (see item 6).
CHINA
No significant new development.
12 NOV 1947
532
Document No. 0"; (.0
NO CHANGE in Class. 0
0 DECLASSIFIED
Class. CTLITGED TO: TS S
DDA Memo, 4 Apr 77
(C
Auth: DDA RM. 77/1763
-.7'bate 0 APR 1978 J3y:
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GENERAL
MolotoyAnjes Smilelinteging_n_Qf withdrawal from Germany--US
Ambassador Smith reports from Moscow that, in a conversation�
with the French Ambassador to the Soviet Union, Molotov is
rePorted to have stated: (a) the Soviet Government had no intention
of withdrawing troons from Germany; and (b) the Soviet Government
had not changed its position in any way since the Moscow CFM.
Smith comments that he does not 'accept this statement by Molotov
as final:'
Mat_and on possible withdrawal from Germany�According
to US Embassy London, the UK Foreign Office now feels that the
USSR may proPose at the CFM a general withdrawal from Germany.
Current Foreign Office thinking is that if the USSR proposes a gen-.
eral withdrawal from Germany, such a oronosal should be rejected
on security grounds. The Foreign Office feels that the USSR should
be informed that it is necessary to keep troops in Germany until
the security problem is solved, possibly by a four-power pact.
2. Mikolliczyk requests permission to come to US-US Embassy London
reports that former Polish Peasant Party leader Mikolajczyk has
requested permission for himself and three aides to come to the US
next week for an indefinite stay.
3. "Soft" UK...0km toward Yugoslavia noted-7S Ambassador Cannon
illLlelgratle re-oorts that he has observed a shift to a "soft phase" in
UK Policy toward Tito and that, in reaction to this shift, there is a
marked falling-off in anti-British propaganda in the Yugoslav press.
Cannon considers that present UK policy may be based on the 'mis-
apprehension" that Tito is a free agent and on the belief that a UK-
Yugoslav Policy may be established independently of UK-USSR
ri �Hey or other British Policies. Cannon feels that, except in times
of crisis, basic US policy must in the future be shaned on the assump-
tion that the US "must carry the burden"and may at times have to
"go it alone."
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(CIA Comment: The UK will probably seek every opportunity
to trade with the Satellites in the belief that, in the long run, the re-
establishment of normal commercial relations between Eastern
Europe and the West is essential to British and general European
prosperity. The current "soft phase" may therefore reflect a UK
desire to insure the success of the trade and financial negotiations
now in progress with the Yugoslays. The Yugoslays appear ready
to conclude a settlement of certain financial claims of the UK and
to mike a trade agreement providing the UK with needed food and
materials.)
EUROPE
4. AUSTRIA: Continued military ocsunakisin believed imperative--
Commanding General US Forces Austria believes that US occupation
of Austria must continue until a satisfactory treaty can be concluded
because: (a) premature withdrawal of US forces would be interpreted
In Austria as a "weakening of our expressed determination to estab-
lish Austria as a free, independent, and democratic state"; (b) such
a withdrawal would expose the present Austrian Government to Com-
munistic pressure and might result in its early downfall; and (c)
Austria's strategic position is one of supreme military importance.
General Keyes believes, however, that occupation forces should be
reduced by a four-power agreement.
5. FRANCE:mposition_to CGT Communist leadership- 3.3(h)(2)
that prior to the current National Congress
of the General Confederation of Labor (CGT), non-Communist dissi-
dents in the CGT resolved: (a) to remain within the CGT as an organ-
ized minority in order to promote "democratization" of the Confedera-
tion; (b) to.oppose efforts to make the CGT a servant of any political
party; and (c) to offer strong support to the European recovery pro-
gram, this is a further indication that 3.3(h)(2)
recent Communist violence against Socialist groups has drawn to-
gether the Socialist groups that were previously divided and has
further isolated the Communist Party.
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(CIA Comment: This is the first onen opposition by non-
Communist elements to the CGT's Comminist 1eadershin.1
6. GREECE Plans for winter r mpakl.m.,aer r Was -
the Greek high command has drawn
up clans for a winter campaign against the guerrillas to begin on
15 December. The plans also call for an all-out spring offensive
(commencing on 15 March) designed to eliminate the guerrillas from
Greece prior to 30 June 1948. that while the decision
to carry on onerations during the winter is an encouraging sign; the
"aggressiveness and efficiency in execution remain to be seen.
NEAR EAST-AFRICA
7. PALESTINE: US denies Proselytizing for partition�The Depart-
ment of State has informed US Legation Damascus that while the
Latin American delegations at the UN are not under US pressure
to support partition (see Daily Summary of 6 November, item 5),
they are subject "to considerable persuasion by national chapters
of the highly-organized and well-financed Jewish Agency." The
Department adds, however, that US representatives have not hesitated
to explain and defend to representatives of foreign powers at the UN
the official US position on partition.
8. IRAN: Eritishieportedlv onnose US arms credit to Iran�US Ambas-
sador Allen reports that has received
information that the British are attempting to influence the Majlis
against ratifying the agreement for the purchase of US military
supplies. Allen believes that the British opposition may be due to
the desire: (a) to limit Iran's dollar expenditures (the UK has agreed
to permit Iran to convert current sterling earnings into dollars); (b)
to supply Iran with British military equipment; and (c) to restrain in-
creased US activity in Iran.
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3.3(h)(2)
3.3(h)(2)
3.3(h)(2)
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FAR EAST
9. SIAM: Developments and reactions to the coup d'etat-
ViliNiiiiaer coup was e
relatively-unknown group of military and political figures. In
order to attract a public following, this group first selected as its
leader General Adul, Commander of the Siamese Army. The group
tarried to wartime-dictator Marshal Phthul when General Adul
sought to halt the coup. The Attache believes that the strength of
the group is "tissue-paper thin" and could be broken easily if ele-
ments of the former government and its adherents rally immediately.
US Embassy Paris reports that the French Foreign Office
Is perturbed by the coup because of Phibults Axis collaboration and
his attack on French Indochina in 1940-41. On the other hand, US
Embassy London believes that the UK Foreign Office would prefer
the Phibul regime, if it remains in power, to prolonged civil strife.
10. KOREA: Indications of. ossthle unilateral Soviet withdrawal�US
Political Adviser Jacobs reports that there are indications that
Soviet military forces are removing heavy equipment from North
Korea, possibly to be ready for prompt action when orders for with-
drawal of personnel are received. Jacobs states that Soviet officials
in Pyongyang have recently restricted the movements of US liaison
officers there and have pressed them for information concerning the
possibility of an evacuation of US forces from South Korea.
THE AMERICAS
11 PAIlkmA_!_n_PPArtLelefense -sites devel ments
a coalition of prom nent Panamanian poli-
tical leaders, under the leadership of ex-President Harmodio Arias,
is about to nominate the present Panamanian Ambassador in Washington,
Vallarino, for the presidency; (b) Vallarino, despite his known pro-
US sympathies, can now be expected to Join Arias in opposing the US
views on the Panama defense-sites negotiations; and (c) many prominent
Panamanians now subscribe to the view that the defense-sites negotiations
should be suspended and the US permitted, until after the Panamanian
elections in May 1948, to occupy the bases "illegally."
3.3(h)(2)
3.3(h)(2)
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RET
ML '
12. ARGENTINA: Relations with USSR--US Charge Rio de Janeiro re-
ports that, a.cdciFerretirtfirrsirzaran Foreign Minister, President
Peron told the Brazilian Ambassador in Buenos Aires that severance
of Argentine-USSR relations would constitute Argentine acquiescence
in the US "desire" to speak and act for the entire Western Hemisphere
vis-a-vis the Soviet Union, and that Argentina therefore has decided
not to break relations.
(CIA Comment: The Communists have repeatedly asserted
that Chile's and Brazil's severance of relations with the USSR was
the result of pressure from the US. This is the first Indication that
Argentine officials are entertaining any such views.)
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RITICAL SITUATIONS
EilltOPEAN RECOVERY
evelopment.
igniftcant new development.
,
CRUA
No significant new development.
� 1 -
Document No.
NO CHANGE in Class. D
0 DECLASSIFIED
Class. CAN= TO: TS S
DDA Memo, 4 Apr 77
Auth: DDA MG. 77 1763
API I
Date: By:
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GENERAL
1. pevin sets new oli restrictp_l_Itt_s--Bevin has told US
mbassa or oug s e fri _n.� fe�iio 'further sales of jet
aircraft or let engines to any country unless there is "complete
-reciprocity,OS a condition which will prevent further sales to the
USSR.
Bevin also declared that: (a) the UK will probably have
to honor the contract calling for the delivery to the USSR of six
jet aircraft and 55 jet motors late in 1948, but he will delay ship-
ment as long as possible (see Daily Summary of 5 November,
item 2); (b) the UK will issue no visas to Soviet citizens for the
purpose of visiting UK aircraft plants; and (c) he will authorize
no additional jet sales to anyone, including Argentina, until he has
discussed the matter with Secretary Marshall in London.
Bevin also told Douglas that this contract with the USSR
was made "without his full knowledge." Douglas comments that
Bevin is embarrassed and disturbed by it,
%ow 2. Possible reversal in UK attitude toward Trieste--According to US
Ambassador Cannon in Belgrade and US Political Adviser Joyce in
Trieste, several British officials in Belgrade and Trieste now be-
lieve that the present settlement in the Free Territory of Trieste
(FTT) is unworkable and therefore recommend that the southern
zone of the Territory be awarded to Yugoslavia and the northern
zone (now occupied by Allied Military Government) be given to
Italy. Cannon has been told by a British Embassy official in Bel-
grade that such a solution is in accord with present British Foreign
Office thinking.
Both Cannon and Joyce believe that US withdrawal from FTT
would npt only result in the loss of Trieste but would provide "in-
calculable encouragement to Soviet purposes" in the troubled regions
\ of the world. Cannon urges that the Department have a full exchange
of views before the British Foreign Office plan crystallizes.
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EUROPE
3. RUMANIA: Implications of cabinet changes�According to US
Minister Schoenfeld, the Rumanian Government, by appointing
!iia Pauker and Vasile Luca as replacements for Tatarescu and
Aiexa.ndrini as Ministers of Foreign Affairs and Finance, must
now be considered "purely Communist" Schoenfeld points out
that the Communists now hold the six most important cabinet
oosts, the remaining being awarded to parties completely under
Communist control.
King Michael's private secretary has commented to Schoen-
feld that `the crisis has come upon Queen Helen and Michael faster
than they had anticipated" and that he feared "they were nearing
their end." A UK Foreign Office official has observed to US Am-
bassador Douglas in London that Michael will probably be elimi-
nated in the near future, if he returns to Bucharest following
Princess Elizabeth's wedding.
4, AUSTRIA: increased food ratimm.Authorized�The US Depart-
ment of State has advised US Commissioner Keyes and US Minis-
ter Erhardt in Austria that they should inform the Austrian Gov-
ernment to proceed with an increase in food rations if these two
officials agree that the future of the Government demands such an
increase. The Department recommends, however, that the increase
be kept to a minimum, as no assurance can be given of additional
US funds until after Congressional action has been taken
GERMANY: Possibility of "Soviet republic" discounted�Acting
Political Adviser Riddleberger in Berlin is skeptical of current
rumors that the USSR plans to establish the present Soviet Zone
In Germany as a Soviet republic. Riddleberger considers that such
a step would represent a radical departure from the basic policy
and propaganda of the USSR which professes to support the unity of
Germany against the desire of the Western Powers for its partition
and exploitation. Riddleberger observes, however, that the USSR
may take some less extreme action, such as the establishment of
a zonal government along national lines or the promotion of a new
political grouping for non-Communist elements.
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(CIA Comment: CIA concurs with this estimate. Moreover,
CIA considers that the USSR does not at present desire to make
eastern Germany into a participating member of the USSR or an
"Independent" satellite state.)
6. CZECHOSLOVAKIA: Estimate of Communist
US Ambassador Steinhardt believes that the political crisis created
in Slovakia by the Czechoslovak Communist Party may result in
some gains for the Communists in the provincial government of
3lovakia, but will not enable the Communists to take Control of the
Czechoslovak Government. Steinhardt adds that Communist tactics
In this matter have convinced non-Communist party leaders that
only by the closest cooperation can they avoid being eliminated
from the Government one by one.
7. FRANCE: caraiTOLMSAZIgtelin_CQX0MUniZt...delections --US Am -
b2.ssador Caffery reports the view of a "reliable and well-informed
source of the non-Communist left" that a crisis within the French
Communist Party, resulting from the establishment of the Comhi-
form.lis about to come into the open. Source reports that defections.
from the Party have taken place as a result of concern over its sub-
servience to Moscow.
122I1ALI ass_e_p_ttsirm_t _proposals--Secretary General Chauvel
of the Foreign Office has told Caffery thatthe Polish Government
has suddenly 'executed an about-face and has accepted almost all
the previously-rejected French proposals in the negotiations for a
mutual assistance treaty between Poland 'and France. Chauvel told
Caffery that the French Government does not wish to sign such a
treaty at this time and will try to prolong the negotiations indefinitely.
FAR EAST
8. SIAM: PoEbilltr of costias coup ins sitscgagetaj--US
Ambassador Stanton in Bangkok reports that General Luang Phibun
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Songgram appears to be temporarily in complete control of the
situation in Bangkok following the coup d'etat of 9 November.
Ssaton also reports that civilian political leaders Prkii and Pre-
mier Dha.mrong and Generals Adun and Wirawat have fled Bangkok
and may establish a legitimate government outside Bangkok and
rally military forces to their support.
(CIA Comment: A counter coup from outside Bangkok led
by Pridi and Adam and supported by their adherents in the govern-
ment, army, and police, remains a distinct possibility.)
' 9. INDONESIA: Iliree-Power Committee US
representative oni!i'1 -Pow�i��iittee -orrlood Offices
reports from Batavia that both the Dutch and Republican repre-
sentatives have made it clear that there is little chance of effective
political discussions until an agreement has been reached concern-
ing implementation of the Security Council's cease-fire order. The
representative reports that there is no agreement regarding a site
for future negotiations and, in view of a continued deadlock, a US
naval vessel may have to be used as a neutral meeting place.
THE AMERICAS
10. PANAMA: Defense sites otiations --The Department of State
has InstructeduS Enib�y Panama to inform the Panamanian Gov7
ernment that: (a) the US is unable to make further concessions
regarding the proposed defense sites agreement; and (b) a ten-year
lease with a ten-year renewal option on the RiO Hato base "repre-
sents the absolute minimum US requirements."
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GENERAL
Slow progress in establishing Cominform in Belgrade--US Ambas-
1,sador Cannon in Belgradeweports that very slow progress is being
'made in establishing the Cominform headquarters in Belgrade. the .
:Yugoslav Deputy Foreign Minister. Velebit has told Cannon
first issue of the Cominfcirm fortnightly bulletin will not be pub7
ishsed before December.
_
EUROPE
2. GERMANY: Communists to center propaganda on dismantling problem--
� Headquarters European Command Frankfurt reports that the Coramu-
nists of western Germany have been instructed through the Socialist
Unity Party (SED): (a) to channel Communist work through the trade
� unions; (b) to center propaganda on the dismantling problem; and
(c) to demand strikes and create unrest in order to embarrass the
Western Powers at the London Conference.
(CIA Comment: The USSR is clearly seeking to capitalize on
the universal German public opposition to dismantlings in order to
further its own efforts to obtain reparations in the form of current
production rather than dismantled plants.)
3. FRANCE: Gaullists claim succession to Ramadier--US Ambassador
Caffery reports that Soustellet Secretary General of De Gaulle's
Rally of the French People (RPF)j has told Paul Reynaud that the
RPF is reconciled to a Ramadier Government for the present but
"would fight any other government formed henceforward." Caffery
says Reynaud views this as an ultimatum to himself or any successor
to Ramadier other than De Gaulle.
FAR EAST
4. CHINA: Renorted anti-US shift in China's foreitm policy-
the Chinese Nationalist-Chief of Staff on 27 September.
1
Document No.
NO CHANGE in Class. 0
DECLASSIFIED
Class. CHANGED TO: TS
DDA Memo, 4 Apr 77�
Auth: DDA ITG. 77/1763
Date:' APR 1978 By:
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tT
directed the Chinese Mission in Tokyo to change its objectives to
accord with a Nationalist change of policy "to the effect that the
Chinese Government no longer collaborates with the US Govern-
ment in China." Source stated further that the Chinese Mission
In Tokyo would direct its "lesser chains of agents": (a) to criti-
cize US proposals regarding the Japanese peace treaty; and (b)
to suggest that US activity in the Far East is designed to reduce
Japan to a "workshop" and will make the Far East the battleground
of a new war.
(CIA Comment: It appears unlikely that China will pursue
an unreserved anti-US policy in advance of a firm US decision on
aid to China. Nevertheless, the Chinese will probably continue to
attack US aims in Japan in an effort: (a) to exert pressure upon
the US to expedite aid; and (b) to strengthen China's "bargaining
power in any Japanese, peace negotiations.)
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�
CRITICAL SITUATIONS �
EUROPEAN RECOVERY
fficant new development
A
'GREECE
e Greek 'Arniyits seeking mouitaht artillery Pieces from the,
(see item 5).
CMNA
No significant new development.
Document No.
NO CHANGE in Class. El
o DECLASSIFIED
Class. CHANCED TO: TS S C.)
DDA Mmo, 4 Apr 77
Auth: DDA T.G. 77/1763
Date:1 0 APR ma By:
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GENERAL
1. Possible Soy et pir9ppsal for Tethdrawal_in permany�US Embassy
Moscow states its view that any Soviet proposal for the withdrawal
of occupation troops from Germany must be met with a categorical
rejection by the US because failure to do so would "undo the gains
achieved" by the Marshall proposals and convince Europeans that
the US is "reverting to its traditional isolationism." The Embassy
comments that such a proposal might conceivably take the form of
a general offer to withdraw all foreign troops stationed in terri-
tories which claim independence.
3. France willen_IPLiapize "security" issue at CFM�Chauvel, Secretary
General of the Fuveign Office, has told US, Ambassador Caffery that,
despite a French desire to reach agreement with the US on Germany,
French delegates to the CFM "for internal political reasons" will
have to emphasize France's determination not to sacrifice As
"national security." Chauvel hopes that: (a) the US and the UK will
make clear at the outset the problems which must be decided, so
that the French people will place the blame for a conference break-
down upon Soviet delaying tactics; and (b) any French acquiescence
to the US and UK positions will be presented to the French public in
such a way as to minimize any apparent compromise of France's
security requirements.
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4, FRANCE: De Gaulle believed cool toward North African autonomy--
US Ambassador Ceffery believes, on the basis of statements made
to him by Soustelle (former Minister of Colonies under De Gaulle),
that should De 'Gaulle return to power, his colonial policy would be
less progressive tAan that of the present Government. On the sub-
ject of autonomy for the native populations of North Africa,
Soustelle showed "considerable reserve" and appeared to believe
that such aspirations would disappear if the standard of living among
the natives could be raised.
(CIA Cornn-tent: Such a reversal of French colonial policy
wailed quicken the pace of the North African independence movement,
inasmuch as all leading nationalist leaders consider the present,
relatively enlightened policy much too vague and slow.)
5. GREECE: MouilitapLaLtil_l_emsfted jwm .--Foreign Minister
Tsaidaris has reiterated to US Embassy Athens a request for
mountain artillery for the Greek Army. The Embassy comments
that the lack of such equipment has come to be the current excuse
for the armys failure against the guerrillas and expresses the
belief that a few guns, "perhaps enough to equip one battalion,"
should be made available.
(CIA Comment: Greek Army successes against the Italians
in 1940-41 were due largely to the Army's efficient use of mountain
artillery. Moreover, the guerrillas fear artillery more than any
other weapon.)
THE AMERICAS
6. MEXICO: Removal of Soviet files suspected-
:hat a Soviet ship left Mexico on 31 October
with a cargo of heavy crates which he believes contained Soviet
Embassy files.
(CIA Comment: Numerous reports have identified the Soviet
Embassy in Mexico as an important center for the direction of Commu-
nist activity in the Western Hemisphere It is possible, therefore, that
the Embassy's files would contain information concerning the Commu-
nist movement that might be of value to the USSR but would be com-
promising if seized by the Mexican Government.)
-.3..
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CRITICAL SITUATIO
EUROPEAN RECOVERY RECOVERir
Bevin has personally and informally suggested to Ambassador
Douglas that an Export-Import Bank loan of $706 Million be made
� to the UK (see item I).
GREECE
Establishment of a Popular Civil Guard and a Direction of Home
Aff irs by the "Democratic Army of Greece" indicates that the
guerrillas believe that they will soon be strong enough to hold and
administer large areas in northern Greece.
CHINA
The sixth Communist offensive in Manchuria has failed to dislodge
the National Government from its main positions, but has caused
severe damage to Nationalist military effectiveness in that area
(see item 6).
Docurent No.
NO CHANGE in Class.
0 DECLASSIFIED
Class, CIANGED TO:
cIDDA Memo, 4
Auth:
Date:
5
R 1978
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0
TS. S
Apr 77
1763
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GENERAL
. Bevin suggests US loan to protect UK gold reserve�Following
"purely personal and informal discussions, Sevin has transmitted
to US Ambassador Douglas an unofficial memorandum on possible
methods of reinforcing the UK dollar position until the European
recovery program can become operative. The memorandum sug-
gests that a loan of $700 million be made by the Export-Import
Bank against collateral now held for an RFC loan. Douglas feels
that, despite several technical objectives, the suggestion has merit
and should be explored, because it woaa obviate: (a) going to
Congress for an interim appropriation for the UK; (b) the placing
of further import restrictions; and (c) the necessity for any undesir-
able changes in UK foreign policy.
EUROPE
2. FRANCE: De Gaulle believed still opposed to German unity�US
Ambassador Caffery, on the basis of conversations with persons
"close to De Gaulle," reports that De Gaulle apparently still is
adamantly opposed to any central government or political administra-
tion for Germany. Consequently, Caffery considers that the present
French Government or a centrist coalition would be easier to deal
with on German problems than would a Gaullist Government.
Qpiesiument to continue reforms in North Africa--Caffery
has been told by Secretary Chauvel of the French Foreign Office
that the Ramadier Government is going ahead with its projected
reforms in North Africa, despite the possibility that De Gaulle
might return to power.
_Communists_alvisel to await De_naulle_s_mmg�
indications that the French Communists now
consider that a Communist-directed general strike at this time is a
"+irtual impossibility" and that they should await further orders
from Moscow. Party leader Duclos has emphasized that a general
strike must be a prelude to a real uprising and has advised his
followers to "wait for De Gaulle to make the first move."
2
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3. AUSTRIA: Increase in food ration sought--Commanding General
US Forces Austria transmits an appearriom Chancellor Figl for
US aid to increase the present Austrian food ration from 1550 to
1800 calories a day. The Commanding General comments that
without this aid the Austrian Government faces a hazardous future.
US Minister Erhardt in Vienna urges that this increase in Austrian
food ration be considered.
(CIA Comment; CIA agrees that failure to increase the food
ration will cause serious political repercussions; see Daily Summary
of 10 October, teem 3.)
4. BULGARIA: Notable increase in war ttal_s_r_epHted--US Minister
Designate Heath reports that during the past week there has been
a "notable increase in war fears in Bulgaria." Heath adds that
these fears result primarily from the intensified anti-US campaign
In the Bulgarian press and from numerous reports and rumors of
increased Bulgarian military activity, particularly along the Greek
and Turkish borders. Although Heath considers overt military action
by Bulgarian or Soviet forces unlikely, he believes that the reported
military activities may foreshadow an increase in the "scope and
effectiveness of their present clandestine aid."
(CIA Comment: CIA generally concurs with Heath's analysis.
A more detailed review of these and related developments will
appear in the Weekly Summary of 7 November.)
NEAR EAST-AFRICA
5. PALESTINE: Arabs accuse US of rosel izin for � rtition�Accord-
ing to US Embassy Bagh a , zzam asha �irec or generarof the
Arab League) has been informed by the Saudi Arabian UN delegation
that El Salvador, Chile, and "a third South American state had
deserted the Arabs under US pressure." Azzam Pasha commented
that while the Arabs understand the internal political considerations
which determine US pro-Zionist policy, they believe that the US
should "at least leave the small states alone to form their own
opinions."
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A zzam Pasha also has expressed his fear to US Embassy
Baghdad that the Arab states may not have sufficient votes to de-
feat the partition scheme in the UN'. Azzam Pasha added that world
Jewry is 'successfully propagandizing the US people into thinking
that the Arabs are bluffing about waging war ainst those powers
desiring to implement the partition scheme."
Iraqi Prime Minister Saleh jabr has expressed the opinion
to US Embassy Baghdad that the Arabs will fight against implementa-
tion of partition although it is certain that, in the event of a conflict,
an "international police force would easily win."
FAR EAST
uria now terminatli_sx
the sixth Communist of ensive
in Manchuria will end in mid-November. this
Communist offensive has succeeded in disrupting the south Man-
churian economy and in inflicting heavy troop losses on the National-
ists, thus making it most difficult for the National Government to
launch any offensive operations.
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EatiT
CRITICAL SITUATIONS
EUROPEAN RECOVERY
Premier Ramadier has again stressed to VS A mbassadoCaliery ,
the extreme gravity of the French bread grain situation and the
�
consequences of a further reductiOn,in the ,bread,iitionjsee item 4). �
z
GREECE
No significant new development.
CHINA
No significant new development.
01, a
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Document No.
NO CHANGE in Class. r-7
LJ
DECLASSIFIED
Class. CHANGED To: TS
DDA Memo, 4 Apr 77
Auth:, ifiDA REG. 77/1763
Date :1 0 APR 197P BY:
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GENERAL
1. Soviet reAresentations to China on Japanese peace tr_m..ti--The
Chinese Foreign Minister has told US A mbassacTor Stuart that the
Soviet Government has not given the Chinese Government any
formal reminder of the clause in the Sino-Soviet Treaty of 1945
which bars either Government from concluding a separate peace
with Japan without consent of the other.. (The Foreign Minister's
statement contradicts information supplied earlier to Stuart by the
Chinese G-2; see Daily Summary of 27 October, item 1.) The For-
eign Minister added, however, that the point about the Sino-Soviet
Treaty clause had been raised during his conversation with Vishinsky
while in the US.
(CIA Comment: It still seems clear that the USSR, either
by formal representation to the Chinese Government or through
informal discussion with the Chinese Foreign Minister, has re-
minded the Chinese of their obligation under the Sino-Soviet Treaty.)
2. UK Let aircraft sale to:USSR,--The Department of State has instructed
US Ambassador Douglas to point out again to Bevin, should the oppor-
tunity arise, the serious concern of the US over the UK agreement
to sell the latest-type jet aircraft to the USSR. (According to a UK
Foreign Office statement of 24 August, the UK plans to sell six latest-
type jet aircraft to the USSR but does not intend to deliver them until
late in 1948; see Daily Summary of 25 August, item 3.)
3. US advocates vigorous actgainst 4g1n Tsea.y1.21ations--
� The Department of State concurs with the recommendation of the US
Minister Designate to Bulgaria (see Daily Summary of 1 November,
item 1) that all violations of the Bulgarian peace treaty, particularly
those affecting civil rights, should be vigorously combatted.
EUROPE
4. FRANCE: Immediate USshipment urged- Ramadier has again
emphasized to US Ambassador Caffery the gravity of the French
bread grain situation which will force a further reduction in the
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natonal bread ration about the middle of December. Caffery urges
that supplementary shipments of "at least 200,000 tons" of grain
be started immediately to provide sorely needed aid to the present
French Government. Caffery notes that the reduction in bread
rations on 1. September precipitated violent demonstrations and
strikes throughout France, many of them Communist inspired.
Caffery believes that a further reduction would deliver a "severe
set-back" to the present conservative trend in France.
(CIA Comment: CIA concurs in this estimate of the desperate
need of France for wheat and the obvious political repercussions
which would result from the lack of it.)
De Gaulle does not desire office until next qprin_g7-Caffery
has received confirmation from Palewski, De Gaullers principal
edvIser, that General De Gaulle "does not desire to take office
until next spring." According to Palewski, De Gaulle is working
"actively and efficiently" to win the support of the non-Commu-
nist labor groups.
5. RUMANIA: Communist campaign against Tatarescu--US Minister
Schoenfeld believes that the early removal of Foreign Minister
Tatarescu may be indicated by strong Communist press attacks
against Tatarescu for his alleged connection with Foreign Office
leaks to the US-UK,as revealed by evidence in the Maniu trial. The
US Military and Naval Attaches comment that these attacks fore-
shadow the dissolution of Tatarescu's Dissident Liberal Party.
Cabinet approves Michael's attendance at Elizabeth's wedding--
Schoenfeld also reports that the Rumanian Cabinet has consented
to King Michael's attendance at Princess Elizabeth's wedding. Schoen-
feld has been told by his British colleague that the UK Foreign Office,
although suspicious of the Communist-dominated Cabinet's motives,
does not expect any action against Michael prior to the London CFM
meeting. The Foreign Office, accordingly, recommends that Michael
return to Bucharest before the CFM meets.
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(CIA Comment: CIA believes that the London CFM meeting
wilt not affect the timing of Communist plans to eliminate the
monarchy in Rumania. CIA continues to believe- see Weekly Sum-
mary of 24 October, page Iii. -that the Rumanian Government may
take advantage of Michael's absence either to prevent his return
or to arrange for Carol's return.)
6 POLAND: Escape coordinated with General Anders--According to
US Political Adviser Murphy in BeTain7-Fi1iliirnaii- interrogation
of Polish Peasant Party deputy leader Baginski reveals that his
escape was "coordinated with 'General Anders, formerly Com-
mander of the UK Polish Corps and now connected with the emigre
Polish Government in London. Baginski also disclosed that he and
Mikolajczyk had 24 hours advance notice that the Government was
going to take action against them.
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CRITICAL SITUATIONS
EUR-6PEAN RECOVERY
No significant new develonment.
GREECE
No significant new development.
CHINA
No significant new development.
� Document No. 17�
NO CHANGE in Class. rn
0 DECLASSIFIED LJ
Class. CJANCED TO: TS
DDA Memo, 4 Apr 77
Auth: DDA REG. 77 /763-
Date:
BY1
4 NOV 1947
526
THE C. A. HAS NO O JECTION
TO THE Dh ASS ICAIION OF
THIS DOCUM
No.1 0 i.4:
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EUROPE
1. FRANCE: BidaulL oEtilDIEtic on Cabinet survival--
US Ambassador Caffery has been told by Bidault that Ramadier's
prestige is now so low that Ramadier will not last long after the re-
convening of the Assembly. However, Ramadier has expressed to -
Caffery the opinion that the really critical phase of the struggle is
over, and that he expects to remain at the head of the government
for some time to come.
2. CZECHOSLOVAKIA: Views on Slovak political crisis--US Ambas-
sador Steinhardt reports that the Communist-instigated resignation
of the Slovak Board of Commissioners has created the most serious
political crisis in Slovakia since the liberation. Steinhardt believes
that, although the moderates In the Czechoslovak Government will
oppose strong Communist demands for increased representation on
the Slovak Board of Commissioners, some compromise will be
found in order to avoid splitting the coalition government and forcing
new elections.
3. BULGARIA: Soviet Armsnaneuvers rezprted epd_W-
that Soviet Army maneuvers in Bulgaria can
be expect within three weeks because of inclement
weather, hat there have been no recent indications
of Soviet oop movements into Bulgaria but cites constant rumors
of some materiel build-up, including tanks, artillery, and ammunition.
(CIA Comment: No indication of Soviet withdrawals from
Bulgaria has been received from any source to date. The terms of
the Bulgarian peace treaty set the final date of withdrawal as 15 Decem-
ber 1947.)
NEAR EAST-AFRICA
4. PALESTINE: Arabs would not accept office in a PartitlQned Patatine_--
US Consul General Jerusalem reports that: (a) he knows of no Arab
who would accept office in a partitioned Palestine and thus risk
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3.3(h)(2)
3.3(h)(2)
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aosassin.ation, and (b) the British are not likely to accept the request
that they maintain order in Palestine during the trying period between
now and July 1948. The Consul General believes that UN trusteeship
for the Arab area should not be envisaged as a short-term arrange-
ment and that careful consideration should be given to the policing
of such a turbulent area.
FAR EAST
5. KOREA: Korean sentiment now favors troop withdrawals�General
Hodge reports that Koreans are becoming�ire and more impatient
for some sort of settlement that will relieve Korea of the burden and
nt4ina of occupation." Hodge comments that this attitude reverses
an earlier trend favoring indefinite US occupation. He adds that
further delay in taking positive action will result in "a strong up-
surge of feeling against the US." He urgently recommends that the
US proceed immediately with an election for a representative govern-
ment even if it must be carried out for South Korea alone, with or
without UN supervision.
(CIA Comment: lodge's report indicates that the Soviet
proposal has attained its objective of influencing South Koreans
toward the acceptance of a self-appointed, "representative" govern-
ment, the establishment of which would force mutual troop with-
drawals and clear the field for eventual Communist control. CIA
believes, however, that an UNGA decision will be reached soon
enough to permit the announcement of an election date before any
Soviet moves for a "coalition" government can gain momentum.)
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525
CRITICAL SITUATIONS
'EUROPEAN RECOVERY
ignificant new development.
gnifiCant new development.
CHINA
No significant new development.
Document No.
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o DECLASSIFIED
4 Class. CHANGED TO: TS �
DDA Memo, 4 Apr 77
Auth : DDA. REG. 77 1763
4
PR 978 13y:
Date;
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GENERAL
UK to return battleshiR to Italy.--Bevin has told US Ambassador
bouglas in London that he his agreed to turn back to the Italian
Government, subject to "austere conditions," the Italian battleship
now in British possession (see Daily Summary of 31 October, item 1).
(CIA Comment: Among the conditions required, Bevin proba-
bly has included the immediate scrapping of the battleship.)
2. US dejeation toopeose anti:yranco measures in UN Asselely.--
A cting Secretary of t'state Lovett has iiiTructeallS delegates to the
UN, because of "the steady deterioration in the current situation,"
to minimize any discussion of the Spanish question in the present
session of the General Assembly and to oppose any further anti-
Franco resolutions.
3. Break with Chile "stuns" Czechoslovak Communist leaders--US
Ambassador Steinhardt in Prague reports that Communist leaders
are stunned by Chile's break with Czechoslovakia and are concerned
over the economic consequences to Czechoslovakia if Brazil and
Argentina should follow suit. Steinhardt adds that, for the first time
in many months, Communist Cabinet members are on the defensive.
Steinhardt believes that a break in diplomatic relations between either
Brazil or Argentina and Czechoslovakia would probably do more than
any other single measure to strengthen the hands of anti-Communist
leaders in Czechoslovakia.
EUROPE
4. BELGIUM: Wheat sl_212.L.nents from US not to be increased--The
Depertment of State has advised US Ambassador Kirk in Brussels
that: (a) October wheat shipments for Belgium have sailed, or will
sail, in the near future; (b) the US cannot comply with Premier
Spaak's request for an increased allotment (see Daily Summary of
31 October, item 4); (c) every effort will be made to speed up Novem-
ber shipments; and (d) the Department realizes the serious political
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implications of a bread crisis such as Spaak fears but the "fact
remains that there is simply not enough grain to go around." The
Department also points out that the US must take note of the Inter-
national Emergency Food Council's recommendations that Belgium
should reduce its bread ration. (The Belgian ration is now 300 grams
per day; the French ration is 200 grams.)
NEAR EAST-AFRICA
5. INDIA: General situation deteriorating�US Embassy New Delhi
reports that developments iiiKashmir (see Weekly Summary of
31 October, page 5) are assuming increasingly serials proportions.
The Embassy states that: (a) the severe drain on the Dominion of
India's military forces (through the dispatch of Indian troops to
Kashmir) will affect prospects for the restoration of law and order
In other parts of northern India; and (b) "the tribesmen and others
Invading Kashmir can presumably carry on guerrilla warfare
indefinitely." , commenting on the
general Indian situation, reports that declared war between India
and Pakistan appears unavoidable unless the two dominions reverse
their present tendencies and "adopt a conciliatory, statesmanlike
attitude" toward current problems.
FAR EAST
6. INDONESIA: Reaction to Committee for Good Offices�US Repre-
sentative Graham of the Committee for Good Offices reports that
the Republican delegation and Cabinet at Jogjakarta were obviously
disappointed when it was made plain that the Committee's powers
extend only to "good offices" and not to arbitration. Graham adds;
however, that the Indonesians appeared "reasonably content" when
they were told how far the Committee could go in proposing a
settlement, if it was requested to do so by both sides.
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EUROPE
4 I3U,LGARIA: apaleav t action on all Treaty violations recernmencled--
Donald Heath, US Minister Designate to Bulgaria., believes that the
US should promptly protest all Bulgarian violations of the Peace �
Treaty rather than follow the policy favored by the British Foreign
Office of concentrating on selected major issues. Heath _believes
that constant proteSts would have "some retarding influence" on
the Communists and would form the basis for possible presentation
to the UN.
. ITALY: psegmperises_ difficulties in obtaineetengjefkyjn sxJpepilret--
' Premier De Gasperi has indicated to US Ambassador Dunn that he
continues to encounter difficulties in recruiting working class repre-
sentation for his government because the non-Communist Left is
hesitant to place itself in definite opposition to the Communists.
De Gasperi added that his only remaining hope lies in moderate
Socialist Lombardo, who might lead a group of left-wing Socialists
into the Government.
NEAR EAST-AFRICA
3. SAUDI ARABIA: King appeals for US reversal on Palestine--US
Charge Bailey at Jidda has forwarded a message addressed by King
Ibn Saud to President Truman containing an appeal for reversal of
the US decision to support the establishment of a Jewish state in
Palestine. King Ibn Saud calls this US decision unfriendly to the
Arabs and adds that, if it is maintained, it will bring about a "death-
blow" to US interests in the Arab countries.
Document No.
NO CHANGE in Class. LIrl
E] DECLASSIFIED
Class. CUNCED TO: TS
DDA Memo, A, Apr 77.
kith: DDeREG. 77/1763
Date:1 0 Apo. By:
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