DAILY SUMMARY - 1946/10/31

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02931553
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2931553
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2931553
Approved for Release: 2018/09/05 CO2931553
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
31 OCT 1946
GENERAL
I. Soviet attitude regard B la�General Biryusov, acting chairman
ha, as presen tive Barnes that "it is ridiculous for
seven million unimportant Bulgarians to constitute a reason for any dif-
ference between the US and the USSR," and that "Bulgaria is in Russia's
sphere of influence something similar to the countries you protect by
the Monroe Doctrine."
2. Yugosiav students recalled from Czech universities--US Military Attache
rague rei�its that all Yugoslav students now atiending Czech universi-
ties will be recalled to Belgrade at once. According to the MA, the action
results from Tito's distrust of the Czech Government as not "Red enough"
and from the anti-Tito reaction in Slovalda to the Yugoslav attacks on
the Catholic Church.
3. Italian 'civil at, mission musislt_the_IISSR�US Military Attache Rome
reports that ilehigh official source has disclosed that theltallan Gov-
ernment probably will accept a Soviet invitation to send a civil air mis-
sion to the USSR.
4. p_p_tch desire "corrections" in German frontier--The Dutch Foreign Min-
ister has informed US Em-EF�IsyiltiiWielliiit proposals for Dutch-
German frontier "corrections" will be submitted to the CFM meeting
early next week."
5. 'Soviet interest in recognition regarding trusteeships--A member of the
Soviet Delegation to the -UN has informed a US Delegation representative
that the USSR believes itself entitled to recognition as a "state directly
concerned" with respect to the draft trusteeship agreements, The Soviet
member declared that, although his Government found the proposed draft
agreements "inadequate and objectionable in many respects," it had done
nothing about them because they had been submitted for "information"
only.
6. US proposes Japanese reparations action by interim directives�Because
ihe Soviet position on Japanese external assets makes it impossible to
hold a reparations conference within the Far Eastern Commission frame-
work, the State Department is advising the other countries represented on
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DDA Memo, 4 Apr 77
Auth: DDA REG. 77L1763
nate: 2 0 MAR 1278By: ern
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TO fifIAL1
FEC that the US favors attacking the reparations problem by means of
Interim directives to SCAP. In formulating these directives, which would
be subject to review by the FEC, the US would consult continuously with
as many FEC member states as are willing to discuss them.
EUROPE
7. RUMANIA: Series of arrests believed imminent--US Delegate ACC
3.3(h)(2) Bucharest reports
3.3(h)(2) SSI' ( pedal Intelligence Service) agents have been
alerted as of 28 October and that such notice usually precedes a series
of arrests.
8. CZECHOSLOVAKIA: Difficulties foreseen in US 'ro' -..settlements--
US Ambassador Steinhardt reports that e Czech Government wishes to
start negotiations as soon as possible for the compensation of US na-
tionalized properties in the hope of expediting an Exirn Bank loan.
Steinhardt,horever, foresees serious difficulties if Czech authorities
persist in their present belief that US claims can be disposed of for two
or three million dollars, as one US concern alone claims $14,000,000.
Steinhardt reiterates his belief that the US should not resume loan nego-
tiations until a satisfactory settlement of US property claims has been
made.
9. HUNGARY: Communist reasons for joining coalition- US Minister
Schoenfeld has been reliably Informed that the Communist Minister of
Interior, Rajk, recently declared at a Party meeting that the Communists,
In conformance with Leninist tactics, had agreed to a coalition Govern-
ment with the Smallholders merely "to combat more powerful enemies,"
but that "in due time" the Smallholders would be "eliminated."
12.2prt of Soviet demand for additional food unfounded--US Min-
ister Schoe el reports t hives igation fails to substantiate a recent
report by US Delegate ACC that the USSR had demanded 63,400 tons of
cereals from Hungary in addition to scheduled reparations deliveries
(see Daily Summary, of 8 October, item 6).
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10, FRANCE: Chang in French Communist line toward German--Caffery
reports that a French Communist publication, in approving Stalin's
answers to the Baillie questions, now admits that efforts should be made
to create "a Germany in which we could have confidence," by (a) eradi-
cating the germ of Fascism, and (b) enabling the Germans to "maintain
a decent standard of living."
FAR EAST
11. CHINA Need of fgsg:n munitions minimized�Embassy Nanking reports
that the British Embassy has refused a Chinese Government request to
purchase 100 million rounds of British ammunition. The Chinese official
to whom the refusal was communicated stated in reply that the supplies
were no longer needed because, unless the Communists were willing to
settle by negotiation, the Government's armies would have made such
progress in the next three months that it would no longer be possible to
speak of "a Communist menace."
THE AMERICAS
12, PARAGUAY: Offer of Belgian arms--US Military Attache Asuncion
reports that 13elgiuni has offered pistols, rifles, and ammunition to
Paraguay at an attractive price.
Approved for Release: 2018/09/05 CO2931553