DAILY SUMMARY - 1946/10/26

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02930212
• Document Creation Date: September 11, 2018

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T
EUROPE -
26 OCT 196
214
1 CZECHOSLOVAKIA: Salutary effect of US loan suspension--US Ambas-
sador Steinhardt reports that the suspension by the US of credits and
loans to Czechoslovakia is having a "highly salutary effect." Pro-West-
ern members of the Government are "privately jubilant" and have
noticeably stiffened their resistance to the Communists. The latter are
gloomy rather than irritated and have sent Masaryk to the US in the
hope that he can obtain relaxation of the ban on credits. Although the
Government has decided in the long run to take such steps as may be
necessary to remove US grievances, it will probably delay implementa-
tion until after Masaryles visit. Steinhardt agrees with Secretary Byrnes
that the US should require more substantial evidence of Czech independ-
ence and friendship toward the US before resuming any form of economic
assistance.
USSR fails to deliver cotton--The pro-Western head of the nation-
alized textile industry has told Steinhardt that the Government had allowed
him to purchase US cotton under the $20,000,000 Exim Bank cotton credit
only after it became clear that the Soviets could not deliver the required
amount or quality.
2, YUGOSLAVIA: 12�......raaos to re-open USIS�The State Department has
accepted the stipulations specifiede Yugoslav Government for the
re-opening of USIS (see Daily Summary of 22 October, item 5), USIS and
the reading room will resume operations in Belgrade on 1 November.
3. POLAND: Arrests of PSL members increase�Mikolajczyk has told US
Charge Keith that the Soviets now have decided that the Polish Commu-
nists should so conduct their activities as to create a "surface appearance
of relative calm" and to rely on "forged elections" to achieve their ob-
jective, concurrently exerting every effort to break up his Peasant Party
through increased censorship and arrests. Mikolajczyk declarea that
during the last month 932 Peasant Party officials have been arrested.,
Government attitude toward foreign newsmen�Mikolajczyk also
told Keith that within the past few weeks about 40 of his Party members
have been subjected to strenuous police questioning for having talked with
foreign correspondents. Keith fears that the expulsion of a British corres-
pondent may set a precedent for similar action against US correspondents,
particularly in view of a statement by the Acting Chief of the Polish Press
q.
THE C.I.A. HAS NO OBJECTIONW
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
ro. 2 0 MAR 1978
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Section to the effect that the Polish Government "would be forced to take
action against those who systematically send out false information."
el.. BULGARIA: Opposition optimistic about elections�US Representative
Barnes reports that opposition leaders are on the whole optimistic about
the 27 October election prospects provided fraud can be kept to a mini-
mum. Barnes believes that, if widespread fraud can be prevented, the
opposition may gain sufficient representation in the Government to pre-
vent Communist measures to silence it.
5, USSR: US students refused but others acce ted--US Charge Durbrow re-
ports that ifiFirr val in I.e U o approximately 300 graduate students
from Yugoslavia, Czechoslovakia, Bulgaria and other countries further
confirms his opinion that Soviet unwillingness to accept US students is
motivated by political considerations rather than the lack of adequate
facilities as claimed by Soviet officials.
FAR EAST
CHINA: Stuart ur es delay in map ect -Ambassador Stuart at
Nanking recommen s e I aer a mapp project in China, the sub-
ject of an agreement recently signed by US and Chinese military authori-
ties, be held in abeyance for the present in view of the unfavorable effect
such an operation would have on US-Soviet relations.
7. FRENCH INDOCHINA: Possibiltqf of border disturbances--Ambassador
Caffery at Paris reports that the Fiqiiifilii-FMTnaii-1.7)ner for Indo-
china has disciplined French military personnel responsible for the attack
on the Siamese town of Chaiburi on 10 October. However, both the French
Foreign Office and High Commissioner D'Argenlieu note the possibility
of serious disturbances arising during the French reoccupation of the
retroceded territories, in view of the presence of large anti-French
groups in those areas.
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