DAILY SUMMARY - 1946/12/23

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02930228
• Document Creation Date: September 11, 2018

� Approved for Release: 2018/09/05 CO2930228
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2930228
Approved for Release: 2018/09/05 CO2930228
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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GENERAL
23 DEC 1946
38
British plan for SC action against Albania--A British Foreign
that the UK desires
the Corfu Channel mining incident to be treated by the Security Coun-
cii as a "situation," not as a "dispute." The British, who consider
the former more "embracing," wish to have Albania charged with
eetrageous actions"not only toward Great Britain, but toward an
aations, because Corfu Channel is an international waterway.
View on_theeffeets in ,Spain et, UN Actions�US Embassy Madrid
considers that while the short-term effect of the UN debate and
Resolution on Spain is favorable to Franco's domestic position,
--,he long-term effect is unfavorable. The Embassy believes that
further discussion of the Spanish case before the Security Council
would favor those who hope that the regime's intransigence will result
ee violent upheaval, and would be prejudicial to the interests of those
who seek an orderly evolution.
Aritishyqes_t_Chineqen_proposal to interv!nixIleOechinae-US Emba ssy
London reports that the British Foreign Office has rejected a Chinese
proposal that the two countries jointly "intervene'' in Indochina.
SCAp�utlz.,Qs,reyistork_of,Lapayeese,reparationsprogram--In a strong
recommendation for a downward revision inifie-Tipaiese reparations
eemovat program (which provides for "interim" removals of indus-
teial capacity subject to "final" removals later on), SCAP states that
the industrial levels left to Japan by the present "interim" schedules,
after some readjustments, will give Japan "a reasonable peacetime
economy, stripped of a war potential and developed to the maximum
defrree of national self-sufficiency."
SCAP believes that efforts to make additional "final" removals
ould be abandoned, and notes that these efforts reflect both an over-
eetimate of Japan's industrial capacity, and a failure to appreciate
Japans economic needs. Additional removals, SCAP feels, will cut
Into Japan's ability to import raw materials vital to minimum indus-
trial recovery, and will result in a heavy financial burden upon the US.
Document No. 00*
NO CHANGE in Class. 0
DECLASSIFIED
Class. CHANGED TO: TS
DDA Memo, 4 Apr 77
uth:,Dijamt72. 77/1763
ate: 1 b MAK 1978 By: 4, U
Approved for Release: 2018/09/05 CO2930228
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APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
EUROPE
5, AUSTRIA: British oppose bilateral Austro-Soviet negotiations--The
State Department orm Eer rhar t the British,
in an aide memoire, have expressed opposition to bilateral Austro-
Soviet negotiations on the problem of German assets and have
described the Austrian Government's attitude as "astonishing, most
untimely and ill-advised" (see Daily Summary, 21 December, item
3). The British position is based on the view that (a) bilateral
!negotiations will lead the Soviets to demand further concessions;
On) Austria lacks the necessary foreign exchange for repurchase,
and (c) there is a possibility of British or other UN interest in the
assets under consideration. Erhardt is advised that the British in-
tend to discuss the matter "on quadripartite basis" at the meeting
of the Austrian deputies on 14 January in London.
8. POLAND: Lenient attitude toward 'Poland suggested�In a recent
talk with US Ambassador Lane, Premier Osubka-Morawski declaree
that, although his Socialist Party favors closer relations with the US,
the Communists insist that the USSR is Poland's only friend. The
Premier suggested that if he could obtain some tangible sign of US
friendship, such as a credit for the purchase of coal-mining machinery,
he could refute the Communist charge. Lane recommends that the US
"give sympathetic aftenttort" to any Polish proposals, but make no
commitments until the Polish Government takes "definitive action" on
US demands for (a) access to those who claim US citizenship, (b)
adequate compensation to US owners of nationalized property, and
ic) conclusion of a bilateral aviation agreement.
7. RUMANIA: Bet_etna_nds--US Representative Berry reports
that the Soviets have accused the Rumanian Government of failure to
meet its obligations in the joint Soviet-Rumanian oil company and have
made demands which "can only be construed as a deliberate attempt
to gain a dominating position in the Rumanian oil industry."
Press repression continues�Berry also reports that the Opposi-
tion newspaper which attacked the Government for its fraudulent conduct
of the elections (see Daily Summary of 19 December, item 3) has been
suspended indefinitely and that authorities are considering its permanent
suspension.
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FAR EAST
8, PHILIPPINES: Military bases�President Roxas has told US Ambas-
sador McNutt that the Philippine Government desires maintenance of
US bases and retention of such US troops as may be required. President
Itoxas regards this matter as a "mandate and settled policy" of the
nhilippine people.
9. CHINA: Chinese seeking Britishjinancftaioo on in Homilme--
Central Bank of hina ofIciitave advised the Assistant US Treasury
Attache in Shanghai that a Chinese financial delegation, headed by the
Central Bank's Governor, has left for Hongkong to obtain British coop-
eration in dealing with (a) the flight of capital from China to Hongkong,
(b) the increasing diversion of Chinese overseas remittances to Hongkong,
and (c) the smuggling and other diversion of gold and Chinese exports
through Hongkong., The Bank officials further hinted that the British,
increasingly restive over their secondary position in China, may seek
e larger share of Chinese trade in return for cooperatIon.
International fthanch4jsitIonprecarious- According
to new international balance-of-payments estimates submitted to Embassy
Nanking by T.V. Soong, China will show a deficit equivalent to US $332
million for the second half of 1948 and to US $381 million for the full
year 1947. Soong also provided figures showing that as of 18 December,
OP Central Bank of China possessed net holding3 of foreign exchange and
bullion worth about US $423 million. He added that "if the prospective
deficit for 1947 has to be financed out of official holdings, there will be
nothing left for currency reserves."
10. FRENCH INDOCHINA: Motives in Hanoi incident�US Consul Hanoi re-
ports that the Vietnam attack on French civilians and military forces
at Hanoi on 19 December was "undoubtedly premeditated" by the Viet-
nam Government. The Consul is certain that, th forthcoming conversa-
tions in Indochina between Vietnamese representatives and Marius
Moutet (French Minister for Overseas France), Vietnam will insist
upon greater independence than the French had ever envisaged.
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TO
THE AMERICAS
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11. ARGENTINA: Enemy aliens elude police net--US Ambassador Messer-
smith reports that (a) of 52 enemy aliens whose arrest and deportation
has been ordered by the Argentine Government, 32 are still at large
after an intensive six-weeks police round-up, and (b) of the 20 who have
been arrested, four have obtained writs of habeas corpus from the
courts, which have repeatedly held the deportation proceedings invalid.
Be adds that the Argentine Government is making a "determined effort"
to apprehend the missing 32, two of whom may have escaped to other
countries, and is investigating other persons on the lists submitted by
the US and UK Embassies.
12, BRAZIL: .presesimands break with USSR--US Military Attache Rio de
Janeiro reports that some Brazilian newspapers are demanding severance
dipematic relations with the USSR because of the alleged mistreat-
ment of a Brazilian diplomat in Moscow, Re believes that, however the
incident is settled, it will weaken Brazil's Communist Party,
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Approved for Release: 2018/09/05 CO2930228