DAILY SUMMARY - 1946/10/21
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02930211
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GENERAL
Si OCT 1946
209
1. Soviet -Swedish reementr bleoba --The Swedish Minister in
Moscow has told US Charge Durbrow that he expects a Soviet -Swedish
civil air agreement to be concluded shortly, providing service between
Moscow and Stockholm with trrnsfer at Helsinki. The Minister added
that negotiations had been most difficult; the Soviets refused to consider
reestablishment of pre-war two-way Moscow-Stockholm traffic and
proposed instead, an exclusive and direct Soviet service which the
Swedes rejected.
2. Mongolian Peoples Republic requests FEC representation--USEmbassy
Moscow has transmitted to Secretary Byrnes a formal request from
Choibalsan, Prime Minister of the Mongolian Peoples Republic, for
representation on the Far Eastern Commission. The request, sent simul-
taneously to all other members of the Commission, details the contribu-
tions which the MPR claims to have made on "the side of the United Na-
tions in their struggle against Fascist aggressors" as justification for
inolimion in the Commission.
EUROPE
3. USSR: New assignments for Malenkov and Abaktmov--US Military At-
tache Moscow reports that a decree of the Presidium of the Supreme
Soviet confirms the appointment of G.M. Malenkov as Assistant Chairman
of the Council of Ministers and relieves him of duties as a member of the
Presidium (see Daily Summary of 15 October, item 3). The decree also
announces the appointment of VS. Abakumov as Minister of State Security.
(During the war, Abakumov was reportedly chief of military counter-
intelligence.)
The MA comments that there is no indication of whether Malenkov's
reassignment constitutes a promotion or a demotion, nor is there any
information as to what has become of Merkulov, former Minister of State
Security.
US bombers arked near Soviet air research center--The MA
also reports that the US Air Attache has seen a B-29, a B-24 and a B-17
parked near an air research center in the vicinity of Moscow.
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The MA comments that Stalin's absence from Moscow seems well es-
tablished. �
4. RUMANIA: US emBloyees implicated in subversive groupr-US Repre-
sentative Berry reports that the Rumanian Government has indicted
sixty-six persons - two of them Rumanians employed by the US - on
charges of activity in a subversive organization. Berry believes that
the trial, which is expected to begin soon, will be directed primarily
against the historical parties with a view to discrediting them prior to
the elections on 19 November. Berry does not know how the government
intends to exploit the inference in the indictment that the US Missions
"are interested" in the subversive organization.
5. HUNGARY: Leftists make "moderate" demands�Premier Nagy has told
US Minister Schoenfeld that demands submitted to him by the Leftists on
8 October were more moderate than expected and embodied many points
"acceotable" to his nolftical program. Nagy hopes to avoid men con-
flict with the Leftists and to continue the coalition Government for at
least one year. He believes that the Soviets will not interfere on behalf
of the Hungarian Communist Party and attributes Soviet restraint to de-
velopments at raids which at least "have given the Soviets momentary
pause.''
6. ITALY: Increasing anticipated--According to US Charge Key,
Prime Minister De Gasper' considers that further disturbances similar
to the recent Rome riot are likely. Key notes that the problem of public
order is aggravated by a "floating population" of refugees, and the fact
that the Italian police are ill-trained and ill-equipped. He recommends
that the US seriously consider joint plans for Italian refugee dispersal.
7. AUSTRIA: Food situation critical�US Charge Denby and the Commanding
General USFA report increasing labor unrest resulting from the low food
ration and urge that UNRRA contributions to Austria be increased and
expedited by all possible means, including diversion from adjacent coun-
tries. Chancellor Figl declares that the 'entire position" of his govern-
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� ment is at stake, and that the present coalition cannot be maintained un-
less the ration can be rapidly increased to 1600 calories per day.
8. GREECE: US seeks to prevent major crisis--The State Department has
informed AmbassadorM�eagh that it considers that the strained state
of international relations centering on Greece may result in a major
crisis which can become a deciding factor in the future orientation of
Near and Middle Eastern countries. The Department believes it essen-
tial to US security that Greece remain independent It adds that the US
Is prepared to take appropriate steps to support the territorial and
political integrity of Greece.
In accordance with the Department's instructions MacVeagh has
held a confidential conversation with King George in which he Impressed
upon the King the importance the US places on a broadened government
and the necessity for removing the most "reactionary extremists" from
the present regime. MacVeagh believes that the King will try his best
to achieve a government sufficiently moderate to justify US support.
NEAR EAST-AFRICA
9 IRAN: Tudeh dropped in new Iranian Cabinet--US Ambassador Allen re-
ports tIiflhe new fran1tn cabinet is primarily a "Qavam Party" gov-
ernment with the exception of two members essentially loyal to the Shah.
Allen does not believe that the Tudeh Party will accept this change
quietly. He expects demonstrations to be organized from which serious
disturbances may result; Soviet reaction against Qavain will probably
be violent and armed conflict may break out in Azerbaijan. Allen further
reports that the Shah claims credit for the change of cabinet.
FAR EAST
10. KOREA: Popular demand for Joint Commission--General Hodge reports
that he has receiveri from the coalition committee of leftists rad rightists
which has been supporting the Military Government's plans for unifica-
tion and self-government in South Korea a petition for resumption of
Joint Commission sessions (see Daily Summary of 14 October, item 5,
and 18 October, item 6).
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11, CHINA: Marshall veried on "airing" Dairen issue�The State Depart-
ment has asked General Marshall whether he considers it preferable to
continue the present "ad hoc procedure" for communications with Con-
sulate Dairen or to raise the whole Issue with Moscow. The Depart-
ment considers that the latter course might result in Soviet obstructions
or refusal, but that "airing the issue" might have a "salutary effect on
the overall situation" in the Far East.
12. FRENCH INDOCHINA: Status of "modus vivende' agmement--US Con-
sul Saigon reports that D'Argenlieu and Ho Chi Minh will open conversa-
tions at Camranh Bay in the near future on the implementation of the
"modus vivendi" agreement. To date, little has been done to carry it out.
Various sources have indicated to the Consul that the reason lies in a lack
of cooperation on the part of the local French military authorities and
certain persons highly placed in the French administration who desire a
return to the pre-war status quo.
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