DAILY SUMMARY - 1946/10/06

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02930207
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2930207
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Approved for Release: 2018/09/05 CO2930207
Approved for Release: 2018/09/05 CO2930207
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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GENERAL
1. Jewish Agency proposes temporary Palestine agreement--According to
m assy .n .on, 1.e ew s gency s proposed fo the British an
Interim agreement to cover the period from the present until the Pales-
tine Conference resumes on 16 December. The terms specify that the
British shall (a) permit immigration into Palestine of 15,000 Jews
during the next three months, including 4,000 now on Cyprus; (b) imme-
diately release Jewish Agency detainees; and (c) cease general searches
for arms. In return, the Agency will cooperate "fully and actively" to
preserve security. The Agency stated that, Without renewed legal immi-
gration, it could not guarantee Jewish cooperation to preserve peace.
British and Jewish representatives are to formulate the terms of refer-
ence of a subcommittee which will consider these terms.
2. Sale of US fi hter aircraft to Sweden a roved--The State Department
s now ormally authorized the sale of 90 P-51's to Sweden. (This sale,
originally negotiated by OFLC, lacked State Department approval; see
Daily Summary of 10 May, item 13')
3. Communist activity in northern Greece--US Military Attache Athens
reportst a---.EFF..)37----ieclA113anians have been crossing into northern Greece
for some months, but that Greek forces appear to be observing orders
not to retaliate.
The chief of the British Military Mission suspects that the Sovi-
ets are attempting to engineer a coup in northern Greece without foreign
military intervention, but the US MA doubts that the plan will succeed
without the participation of Albanian and Yugoslav troops.
4. Overseas Chinese as target of Asiatic nationalism�Embassy Nanking
notes that a recent Chinese Foreign Office policy statement regarding
Dutch-Indonesian friction represents a stronger-than-usual public stand
on the position of overseas Chinese. The Embassy comments that the
Chinese Government faces many difficulties in protecting and fostering
Chinese nationals and interests in Indonesia, Indochina, Siam and the
Philippines. It adds that the most important concomitant of the "un-
leashed forces" of Southeast Asiatic nationalism is the "perennial dis-
like" of other Asiatics for overseas Chinese, who are often considered
as "the spearhead" of China's penetration and expansion.
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T�toffaifi AC
EUROPE
5. FRANCE: Operating rights for US military aircraft�In view of recent
statements by French air officials to Embassy Paris concerning dras-
tic limitation of US air rights, the Embassy has recommended that the
State Department urge the JCS and SWNCC to formulate their policies
regarding operating rights for US military aircraft on French territory
and instruct the Embassy "at the earliest possible date" of the rights
desired.
6. AUSTRIA: USSR may return certain non-German factories�US Charge
Denby reports indications that the Soviets are preparing to return to
Austrian control certain of the non-German factories seized in the
USSR zone. Denby believes that this voluntary transfer, which may be
effected with "elaborate ceremonies," is designed to obtain a final
settlement of the German assets controversy_ and a general acknowledg-
ment of the USSR's right to the "major part" of the properties seized in
Austria, without admitting quadripartite jurisdiction.
7. BULGARIA: Soviet stand on elections�US Delegate ACC Sofia reports
that Soviet refusal to permit an ACC investigation of pre-electoral con-
ditions in order to insure free elections indicates that the Soviets are
satisfied with Bulgaria's international status and will not "provide the
US with proper grounds for ultimate recognition." US Representative
Barnes believes that the Government has already decided to fix the 27
October elections so as to limit the Opposition to 10 percent representa-
tion in the Government, but that continued US intervention "can modify
the figure considerably."
8. POLAND: US statement on elections urged--US Ambassador Lane
recommends that the US inform the Polish Government that, unless
the Polish elections are "free and unfettered" in accordance with the
Yalta and Potsdam agreements, the US Government will review its rela-
tions with the Polish Government, including the question of economic
assistance. Secretary Byrnes, meanwhile, has told the Acting Secretary
that the US should "certainly give no financial assistance" to Poland
for the development of the coal mining industry without absolute guaran-
tees that a reasonable portion of Polish coal exports will be allocated to
countries west of the "iron curtain."
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Ty, i u$EC ET
Nm N TIAL
Proof of US-UK collusionunderground sought--Lane has
been informed by a- P-Olfeh-G6fet---.fuiiiikt employee that the Security
Police are attempting to establish evidence of contact between the un-
derground and the US and UK Embassies.
NEAR EAST-AFRICA
9 TURKEY: Proposed reply to Soviet note--US Embassy Ankara reports
that the present Turkish draft reply to the latest Soviet Straits note
emphasizes the inadequacies of the Montreux Convention and the need
to bring it up to date, substituting the UN for the League of Nations and
the US for Japan. The 5,000-word draft also expresses Turkey's
willingness to submit to arbitration alleged Turkish violations of the�
Convention. Turkey states it will not oppose presentation of any re-
quests for revision as provided for in the Convention.
10, IRAN: Elections forced by Soviet oil agreement�Ambassador Allen
has been informed by Qavam that Soviet pressure is forcing him to
hold elections as soon as possible in order that the Soviet-Iranian oil
agreement can be submitted to the Majlis. (Qavam has been postponing
elections until a settlement could be reached on the Azerbaijan ques-
tion.) Allen points out that elections will be "rather a farce' under the
present circumstances of armed warfare in the south and complete
Azerbaijan independence in the north.
The Shah, who has already signed the decree calling for imme-
diate "preparations" for elections, fears that the new Parliament will
be divided between Soviet spokesmen and deputies loyal to Qavam and
that this division will "end Iranian independence."
11. SAUDI ARABIA King seeks to build railroad�According to Legation
Cairo General Giles, TWA Regional Director, has been requested by
King Ibn Saud to transmit to President Truman a message in which the
Kite declared his intention to construct a railroad from the east coast
(Dhahran) to Riyadh, the capital. The King expressed the hope that this
work would be done with US assistance but said that if US help were
refused, he would not hesitate to turn to the British, or, if necessary,
to "some other powerful nation."
In reply, the President has informed the King that the question
of such a railroad is under active discussion between the Saudi Arabian
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Minister of Finance and high US economic officials (especially the
EXIM Bank President) and that every effort is being made to work out
a solution satisfactory to the King.
FAR EAST
12, PHILIPPINES: Roxas s e � :reementas --In a
"frank" conversation iiith McNutton S-Octo r, Robe xas stated that the
Philippine Congress would not approve a US base agreement involving
retention of Nichols Field, Fort McKinley, and a military reservation
In the Manila port area. Roxas asserted that the presence and conduct
of US military personnel in urban areas has caused a ``deterioration of
relations," and suggested Bataan Peninsula as an alternative location
for US military installations.
13. CHINA: gjearance for Harbin CqRsu_ill_e ed--Consul-General Clubb
urges from Mukden that the US "categorically" demand that the Chinese
Communists grant clearance for a US Consular staff to fly in a US plane
to Harbin to reopen the US Consulate there, a project which has been
delayed for a year first by Soviet and now by Chinese Communist ob-
struction. Clubb offers his "considered opinion" that this is not a
"side issue" and believes that only a forceful approach can "rip open"
the iron curtain blocking the road to Harbin.
14, FRENCH INDOCHINA:
The US State Department has presented a memorandum to the Siamese
delegation in Washington, regarding Franco-Siamese territorial dis-
cussions, which states that the US cannot recognize territorial transfers
effected with Japanese aid and believes that Siam should restore such
territories to France. The US has urged, however, that opportunity be
given Siam to seek subsequent boundary adjustments by peaceful pro-
cesses, and hopes that Siam will accept French proposals for the retro-
cession of territories and subsequent adjustments by a conciliation com-
mission.
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