DAILY SUMMARY - 1946/11/02
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02930214
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GENERAL
2 NOV 1946
220
1. USSR _considers Wks withL_Tsri_y_ce not ended--US Ambassador Wilson
has been informed by the British Ambassador that the Soviet reply to
the latest British note on the Straits states that the USSR does not con-
sider discussions with Turkey ended and does consider it inopportune
to convoke an international conference.
2. UK policy on aircraft sales to USSR--US Embassy London has learned
that the Soviets have not sought to purchase British aircraft, but, if they
did, the British would attempt to obtain an air transport agreement with
the USSR before agreeing to sell. The British believe that their refusal
to deal with the USSR would reduce the chances for eventual Soviet par-
ticipation in PICAO.
3. BAN. sh interests conclude oil arrangement with Chinese�The State
Department has learned that the Anglo-Iranian Oil Company recently
contracted with the Chinese Petroleum Corporation for the delivery of
300,000 tons of crude oil to the Takao refinery on Formosa. The Brit-
ish Embassy in Washington asserts that the Chinese purchased on com-
petitive bids, but according to the Arabian-American Oil Company, the
second bidder, the contract had been previously closed with Anglo-
Iranian. As the Anglo-Iranian will supervise the rehabilitation of the
Takao refinery, the Department has queried US Embassy Nanking wheth-
er, in addition to the supply arrangement, Anglo-Iranian has secured
marketing rights in China or participation in the ICansu production de-
velopment.
4. Icelandic Communists confuse air traffic control�US Legation Reykja-
vik reports that on 31 October the Reykjavik airport gave six hours'
notice that it was assuming traffic control over all aircraft in that area
of the North Atlantic. Icelandic Prime Minister Thors was "taken by
surprise" at this step which the Legation interprets as "tactics of con-
fusion" on the part of the Communist aviation authorities. US personnel
at Keflavik will continue their traffic control pending clarification,
5. US reassures Netherlands on Rhine control�The State Department has
instructed US Embassy The Hague to advise the Netherlands Government
that if a power not now represented in the Rhine Commission should
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attempt (on the precedent of Western participation in the Danube statute?
to obtain participation in the Rhine statute, the US would "be inclined to'
take the following position: while a new statute for the Danube is required,
the Rhine statute remains in force and is satisfactory.
EUROPE
6. YUGOSLAVIA: Decision on reo en of USIS further dela ed--The Yugo-
slav Foreign ce has notified Embassy Belgrade that it regrets that
the Embassy's note (accepting Yugoslav conditions for the resumption of
USIS operations) failed to emphasize that USIS and the reading room would
be run strictly in accordance with the three listed points." The Foreign
Office indicates its readiness to reconsider the case, but points out that
USE cannot be reopened on 1 November, the date fixed by the Embassy,
since "reopening can only be effectuated by a decision of Yugoslav authori-
ties who will also fix a date for reopening' (see Daily Summary of 26 Octo-
ber, item 2).
7. BULGARIA: Communists promise to eradicate Opmat1931--US Repre-
sentative Barnes reports that Communist leader Dimitrov in a post-elec-
tion speech in effect promised to "eradicate the nefarious Opposition"
and made it clear that the Communist Party will "refuse any sort of co-
operation" with Opposition representatives in the National Assembly.
sitia--Barnes also reports that
Opposition leaders are preparing a detailed report on election "terror
and irregularities." Barnes states that Opposition leaders are "more
disturbed" by post-election conditions than they were by pre-electoral
intimidation. Eight Opposition supporters in rural areas have allegedly
been murdered and many are fleeing to Sofia for protection.
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