DAILY SUMMARY - 1946/12/18
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02931579
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IDENTIALI
GENERAL
18 DEC 1946
257'
1. ReEtsel.c..s.h. arms gflurnished to USSR discounted--US Military
Attache Prague believes the military equipment which US Delegation
ACC Bucharest suspected was being manufactured in Czechoslovakia
for the USSR (see Daily Summary of 16 December, item 3) was in fact
Oerlikon equipment originally ordered by Czechoslovakia from Switzer-
land.
2. Chilean President discusses Argentine-Chilean treatr�US Ambassador
Bowers, commenting on the recent Argentine-Chilean treaty involving
a "customs union' and an Argentine industrial loan to Chile, reports
that President Gonzalez has assured him that the "customs union" has
no political significance, and that the loan carries with it no political
commitments. Bowers stresses Chilean "uneasiness" lest the US
interpret the treaty as "unfriendly".
(CIG Comment: The new customs union" appears actually
to be an elaborate system of quota arrangements for controlled bi-
lateral increase of Argentine-Chilean trade, and has the effect of re-
stricting the free movement of goods envisaged by the Chapultepec
agreements. The Chilean Foreign Office had assured Ambassador
Bowers, before the treaty negotiations began, that no industrial loan
would be discussed.)
EUROPE
3, USSR: Stalin's return to Moscow remzie.d--US Military Attache Mos-
cow has beenTrifo n�wc:11--.3y-T'''%sually reliable" source that Stalin re-
turned to Moscow about 13 December.
4. GERMANY: aumakpank note...4.12Am printed for USSR--US Political
Adviser Murphy has received a report that a German printing firm in
Leipzig is printing regular German bank notes for the Soviets and that
a carload of notes has been secretly delivered. According to a second
source�new German bank notes were circulating in Leipzig and Halle
at the end of October,
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5. YUGOSLAVIA: Committee satisfied with UNRRA distAnitjpp--
A special UNRRA distribution investigating committee, composed
of a US, U1C and Soviet representative, has told US Charge Hickok
that, during a five-week tour through Yugoslavia, it found no evidence
of political discrimination in the distribution of UNRRA supplies. The
committee considers that (a) the Yugoslav Government has been co-
operative in supplying necessary information to UNRRA and permit-
ling investigations; (b) the Yugoslav people are well informed of the
nature of UNRRA and national contributions involved, and (c) the
distribution system in Yugoslavia is "at least as fair and efficient
as any in Europe."
(CIG Comment: This report is contradicted by reports from
other sources and is considered to be a whitewash of the UNRRA
distribution program in Yugoslavia.)
GREECE: Immediate eqL.111.2! om.._fx.R_L__Italz4--US Ambassador
MacVeagh reports that it is impossible to exaggerate the importance -
of adequately equipping the Greek army at the earliest possible date
for Spring operations. He also reports that Greek finances are reach-
ing the "catastrophic stage."
NEAR EAST-AFRICA
7. EGYPT: Arab Lea ep'otestsUSj e on Palestine�US Embassy
Cairo has transmitted a note to Secretary Byrnes from the Arab
League which states that the "disturbing effects" of the various state-
ments made by the President of the US, as well as "the efforts which
the President is exerting with the British Government in this direction,"
are causing "great anxiety" throughout the Arab states and the Moslem
world, and are having "adverse effects on the excellent relations"
which the members of the ,League are desirous of maintaining with
the US.
In its note, the League charges that the US is encouraging and
facilitating Zionist immigration into Palestine from US occupation
zones in Europe, and requests that the US discontinue "such acts"
which it interprets as "taking sides with one of the parties to the
dispute between the Arabs and the Jews."
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8 MAN: Shal_imteAses indebtedness to US--US Ambassador Allen re-
ports that the Shah considers the most important factor in the sudden
Azerbaijan collapse to have been the conviction of the Soviets, the
Iranians, and the Azerbaijani that the US "was solidly supporting
)ranian sovereignty," The Shah and high Iranian officials have ex-
pressed, through Allen, their appreciation to the US for "giving
back Azerbaijan to Iran." Allen has emphasized to the Shah, however,
that the Iranians themselves had regained Azerbaijan, and that any
i',.redit for enabling them to do so without outside interference should
go to the UN.
FAR EAST
9. FRENCH INDOCHINA: Vietnam prepared to mal_Russ_ne ons_sg_3siow--
US Consul Hanoi reports that Vietnam authorities; in order to end the
present impasse, are prepared to offer some concessions to the French
including the opening of certain highways to French traffic and the re-
turn of civilian populations to the cities. In return, Vietnam will re-
quest reestablishment of the status quo in effect at the beginning of the
Haiphong incident.
THE AMERICAS
10 VENEZUELA: _Relltigalittaatgaisfill apatajae,--US Military Attache
Caracas reports that (a) "low morale" in the Venezuelan Army makes
the present moment "opportune" for an insurrection, and (b) the Gov-
ernment continues to believe ex-President Lopez Contreras may be
preparing an armed invasion of Venezuela.
(CIG Comment: In view of its widespread popular support, the
Betancourt Government, though weakened to some extent by the estrange-
ment of Army elements sympathetic to the officers arrested following
the recent revolt, should be able to suppress any insurrectionary
attempt.)
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