DAILY SUMMARY - 1946/10/14

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02930209
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2930209
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2930209
Approved for Release: 2018/09/05 CO2930209
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
TIE;16)
GENERAL
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14 a
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1. 12alrleiLs_yleman Soviet policy--Altunov, Secretary General of the
Bulgarian Foreign Office, has told US Representative Barnes in Sofia
that the Bulgarian Government and the USSR have made the US and UK
powerless to "do more than write notes and letters." According to
Altunov, the USSR will never risk war with the Anglo-Americans, but
will continue along "its provocative expansionist way believing it will
never be too late to retreat from advanced spearheads." He added that
the USSR expects to retain for peaceful exploitation most of the
"ground" it has already gained.
EUROPE
2. GERMANY:caywiliator in ACC--Murphy reports that the 12
October meeting of the Coordinating Committee of the ACC was
marked by "evident Soviet desire to demonstrate a cooperative attitude"
and by "a certain relaxation and desire to be conciliatory" on the part
of the Soviet representatives.
�
3. HUNGARY: Soviets waninan Hungarian Army�According to
US Minister Schoenfeld, the Hungarian Defense Minister's plan for a
mere 5,000-man Hungarian Army was rejected by the Soviets, who
demanded a 65,000-man Army as allowed by the Peace Treaty, because
Hungarian "commitments under mutual assistance" would require that
number. Local political and military circles believe that the Soviets
will soon request a mutual assistance pact similar to the one reportedly
refused by President Tildy and Premier Nagy last June.
Peace a econo ic b --Premier
Nagy has told Schoenfeld that Hungary will be unable to bear the econo-
mic burden imposed by the reace Treaty and will be obliged to ask the
big powers to concert in adjusting their claims.
3.3(h)(2) 4. CZECHOSLOVAKIA.: Debate e cted over two- ear la
the impending debates in the Cabi-
net and Parliament over Czechoslovakia's two-year economic plan may
develop into a "fundamental struggle." The Moderates fear that the
Leftists, through their control of the Ministries of Industry, Finance,
Social welfare, Public Works and National Defense, will abuse the
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Approved for Release: 2018/09/05 CO29'30209
Approved for Release: 2018/09/05 CO2930209
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
TOP R T
CON FID, NTIA13
extraordinary powers delegated to them under the plan and will "create
havoc" with the membership of the Moderate parties.
FAR EAST
5, KOREA: Possible resumption of the Joint Commission session�In the
course of a four-day visit to the Soviet zone, the US Economic Advisor
In Korea, Arthur Bunce, conferred with the Soviet Political Advisor,
Balasanov, concerning a basis for reconvening the Joint Commission.
Balasanov indicated that the Soviets are eager for a mutual withdrawal
of forces from Korea and are willing to compromise on the trusteeship
issue. Bunce noted emphatic and universal sentiment in favor of
resuming joint Commission negotiations.
6. CHINA: Chinese import restrictions believed likel -In discussions
with US represen ves w respec o e proposed world trade chart-
er, Embassy Na.nking reports that while leading Chinese officials have
Indicated that the Central Government is opposed to high protection
In the long runIthey have emphasized the need of protection for infant
industries. Embassy Nanking believes that the discussions provided
further evidence that China, as a result of the loss of gold and US dollar
resources (see Daily Summary of 5 October, item 8), may soon increase
quantitative restrictions on imports and may increase tariff rates on
a limited range of products.
7. JAPAN: Soviet nationality for ex-Czarists--SCAP is protesting a
recent offer of the Soviet member of the Allied Council to grant Soviet
nationality to former Czarist nationals in Japan. Although response to
the Soviet offer has been meager, SCAP is opposed to this arrogation
of consular functions by the Soviet representative.
8. FRENCH INDOCHINA: French reaction to "rnodus vivendi"--Accord-
ing to US Consul Saigon, French �horftles there feel that they have
gained by the Franco-Viet Nam "modus vivendi" signed in Paris 15
September and "may confidently expect" eventually to regain all their
former power in Indochina.
Approved for Release: 2018/09/05 CO2930209