DAILY SUMMARY - 1946/10/28

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02930213
• Document Creation Date: September 11, 2018

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APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
GENERAL
28 OCT 1946
215
1. Resqthiiity delay US Naval Rep-
resentative on the US Military Staff Committee reports on the basis of
"unofficial information and surmise" that the Soviet Military Delega-
tion is unable to proceed with discussions of basic military agreements
because of "positive instructions" to the contrary from the Soviet Gov-
ernment.
2.litgotiations on Austro-German power controversy- -GeneralClay re-
ports that OMGUS representatives will shortly open negotiations with the
Austrian Government regarding the distribution of hydro-electric power
from the Tyrol and Inn River plants. While OMGUS is willing to arbi-
trate the disputed ownership of the Inn River plants, it insists that any
further reduction in power imports from Austria will have "most seri-
ous industrial repercussions" in the US Sone of Germany. Clay reports
that the power shortage in the US and UK Zones, Germany, is so severe
that power is being rationed; essential industries are closing down, and
further restrictions are in prospect.
3. Austrian reaction to French and Soviet zonal economic demands--US
-C-Iiiile-5e-nby reports that the Austrian government is seriously con-
cerned about the economic demands by the French and Soviets on their
respective zones of occupation. On. 22 October the Cabinet decided
not to make a public statement against the French and Soviet occupa-
tion policy but agreed that its next session would be secret and would
discuss the issuance of a communique without mentioning specific occupa
tion powers. Denby adds that the French are now demanding increased
amounts of cloth, butter, cheese and wood without making provision for
compensation.
4. South Africa to pursue annean --The US Representative to the UN
reports that South African delegates have declared flatly that if the UN
Assembly refuses to discuss the proposed annexation of Southwest Africa,
the Union of South Africa "would feel free to proceed unilaterally with
the annexation in accordance with the desires of the inhabitants of that
area,v.
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5. RUMANIA: amsition parties protest electioamsarations�US Rep-
resentative Berry has received -a sE�tiddressed to the US, UK
and USSR from the three leading Opposition parties protesting pre-
election abuses by the Groza Government. The statement requests Big
Power action to enforce (a) revision under international control of all
electoral lists; (b) re-establishment of freedom of press and assembly;
(c) guarantees of personal liberty for candidates and voters; (d) im-
partial supervision of the elections; and (e) no reprisals against voters
regardless of the election results.
Subversive trials branded as electoral move--Berry also reports
that it is becoming clear that the Government intends to use the trials
of the persons accused of subversive activity (see Daily Summary of
21 October, item 4) to keep important members of the Opposition from
taking part in the elections. Berry states that there is no 'basis for
the trials'' and that, "except for the Government's desire to exploit the
affair to the utmost, those actually guilty could have been tried seven
months ago when arrested."
6. GERMANY: Berlin SPD and CDU leaders discuss coo ei_p_lat_imi--Murphy
reports that in a first informal meeting after the Berlin elections SPD
(Socialist) and Christian Democratic leaders agreed (a) on a "wide meas-
ure of cooperation" between their two parties (but not to the formation
of a bloc); (b) that cooperation with the SED would be "necessary"; and
(c) that the Berlin anti-Fascist front should be permitted to lapse.
7. ITALY: Action by Italian Fleet pgssormel held unpredictable�US Nava]
Attache Rome reports that the morale of ftalian Fleet personnel has
somewhat improved since May and the "situation appears calm," but
the sabotage of the fleet by Italian personnel, recently reported as a
possibility, is "unpredictable" at this time.
NEAR EAST-AFRICA
8. TANGIER: Sultan's visit to be s oned--US Diplomatic Agent Ailing
has been told by the Resider-1i General that the proposed visit to Tangier
of the Sultan of Morocco has been postponed to late November or later. �
Despite Spanish disapproval, the Sultan is determined to make the trip
and if necessary will cross the Spanish zone without stopping.
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FAR EAST
9. CHINA: Marshall prefers local handling of Dairen issue�General
Marshall, in reply to a State Department query regarding the opening
of communications with Dairen (see Daily Summary of 21 October,
Item 11) expresses the belief that "our larger purposes" would not be
well served if the whole issue were aired with Moscow. He considers,
however, that the isolation of the US Consul Dairen "constitutes an
intolerable situation which should not be allowed to continue" and rec-
ommends establishment of periodic courier service by unarmed US
naval vessels.
THE AMERICAS
10, DOMINICAN REPUBLIC: Submarine "mystery" report unfounded--US
Embassy Ciudad Trujillo reports that investigation has completely dis-
credited the report that unidentified submarines have been unloading
"mysterious apparatus" (see Daily Summary of 18 October, item 8).
US Naval Attache Havana considers the report a "political plant."
PE
T EGRET
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