DAILY SUMMARY - 1946/12/31

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02930230
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2930230
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Approved for Release: 2018/09/05 CO2930230
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
GENERAL
21 DEC 1946
267
1 U15 r_ittLscts Chinesenterrention in Indochina--US Embassy
London reports That Bevin has rejected the Chinese proposal for Sino-
British intervention in Indochina (see Daily Summary of 26 December,
item I).
2. Chinese fear Dairen Incident strengthens Soviet position--US Embassy
Nanking reports that the Chinese Foreign Office has informally taken
exception to the State Department's announcement that Soviet authorities
were within their rights in refusing recently to permit private US citi-
zens to land at Dairen. The Foreign Office considers that the Soviets
are not acting within their rights in refusing permission for Chinese
occupation of the city. It fears the US statement may strengthen the
Soviet position.
4. IleALlan interpretation of chanjW_Ioviet attitude in Uli--According to US
Charge Brussels, Foreign Minister Spaak attributes the "improved
atmosphere" in the General Assembly to a specific Soviet policy decision
reached between the Paris and New York Council of Foreign Ministers
meetings, Spaak believes the decision was dictated by: (a) the drag on
Soviet industrial recovery of present military forces abroad and at home;
(b) possible unanticipated difficulties in atomic research; (c) the realiza-
tion that Soviet obstructionist tactics at Paris had proved ineffective, had
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placed the USSR in a slightly ridiculous light, and had hampered its
propaganda; and (d) a realization that only by more elastic tactics could
the USSR hope to achieve anything through the UN.
5. U.S21 udication of UK-Albanian case--The State Department has
suggested to the US D-iii�dga on ii�i-i�ktew�Troil that It suggest to Cadogan
that the UK-Albanian case might be handled by the International Court
of Justice. The State Department understands that the British favor a
political rather than legal solution of this case.
EUROPE
6. YUGOSLAVIA: Espionage trial to be used to discredit US officials--
A Yugoslav defense lawyer has informed US Charge Hiclt�a�C�tha the trial
of riersons accused of aiding members of the US Embassy Belgrade in
"unfriendly work and espionage against the Tito regime' will open on
31 December (see Daily Summary of 18 November, item 7). Hickok be-
lieves the trial to be an effort to intimidate the Embassy staff, to terror.
ize the Yugoslav people, and to hit* Embassy contacts to representatives
of the Tito Government.
7. ITALY: Deliberate anti-Allied agitation--The Supreme Allied Commander
Mediterranean reports that anti-Allieiffiagitators" were active during
the recent demonstrations in Padua. He adds that a large section of the
Italian press, particularly Communist and Socialist papers, is directing
an inflammatory campaign mainly against the British. SACMED expects
increasing attempts to foment public demonstrations against Allied forces.
8, GERMANY: Koen coWe re laced on.-US Ambassador Caffery in
Paris has been informed that General Koenig will soon be replaced as
the French member of the Allied Control Council reportedly because of
his failure to obtain clearance from Paris before making "numerous
declarations.." Caffery adds that Admiral Ballot (Assistant Chief of Staff
of National Defense) is apparently receiving "most serious consideration"
as successor to Koenig.
9. HUNGARY: Mass arrests of non-Communists�The Smallholder Minister
of Information,Bognar, has told US blirdster Schoenfeld that the 300 persons
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recently arrested by the Communist-controlled political police include
the "leading figures of all Hungarian non-Communist anti-German war-
time resistance movements." Bogner admitted "the possibility" of an
attempt to implicate the US and UK in a subversive plot, but said that
the Smallholders regard the arrests as related primarily to the domestic
situation and as Communist preparation for seizure of power by elimin-
ating potential centers of resistance. Bognar added that the Smallholders
are postponing any action until the "degree of Soviet implication" in the
arrests is determined.
10. FRANCE: Position of the Communist Party�According to US Ambassador
Caffery, qualified observers consider that, because the Communist Party
has nothing to gain from participating in a bourgeois Government which
will have to carry out highly unpopular measures, a majority of French
Communist Party leaders now favor swinging vigorously to the left and
passing into opposition to the next Government. Soviet diplomatic inter-
ests, however, demand that the Communists continue their strategy of
gaining as many high offices and as much influence within the Government
as possible. Caffery doubts that any party or group in France can ex-
ploit the "widening contradiction" between French Communist and Mos-
cow interests. �
Blum not to be nre tial ndi �
dateLeon Blum has informed
Caffery that "under no circumstances rwill he be a candidate at the forth-
coming elections either for the Presidency of the Republic or of the
Council of Ministers (Cabinet). Caffery, however, "is not convinced"
that Blum would decline the former post.
FAR EAST
il. INDOCHINA: New Vietnam Government may be establAshell�US Consul
General Saigon reports that the eventual solution of the present Franco-
Vietnam difficulty may be found in a new Vietnam Government to be
formed under either the former Annarnite Emperor Bao Dal or the pro-
Chinese former Vietnam Foreign Minister, Nguyen Timing Tam. The
latter is now reportedly forming a refugee Vietnam Government at Nan-
king. French authorities could deal with a new government without losing
face and could then more successfully insist upon the independence of
Cochin-China.
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j�111"76'
12. CHINA: Anti-U� demonstrations�US Consul General Peiping believes
That current anti-US demonstrations and public feeling are to be taken
:leriousky and reflect discontent both with US policy and with the National
Government.
THE AMERICAS
. BOLIVIA: Armtina presses Bolivia for minerals--US Ambassador
Bowers reports from Santiago that Bolivia's Ambassador to Chile states
that (a) Bolivia will receive no Argentine food supplies during 1947 un-
kegs it sells Argentina tin, lead, and antimony; (b) Argentina is offering
to buy these minerals at prices above those paid by other countries and
to install foundries to process them, and (c) shipments of necessities
from the US might reduce Argentine pressure on Bolivia. Ambassador
Bowers informant predicts that unless the US makes a new contract
for Bolivian tin, meeting Argentina's price offer, a "collapse of mining
production in Bolivia is inevitable."
14. PERU: Argentina offers Peru food and creclit�Haya de la Torre, leader
of Peri' s powerful APRA Party, has told Embassy Lima that (a) Argen-
tina has offered Peru large credits and food in return for a trade agree-
ment smilar to the recent Argentine-Chilean agreement; (b) he believes
Peron's plans for a southern economic bloc could and should be countered
by a Peruvian-sponsored plan for increased trade among the countries
of South America In the Embassy's opinion, }Jaya is attempting to force
the US to aid Peru financially without a prior settlement with Peru's US
creditors. The Embassy advises against "any loans to Peru until the
debt is settled."
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