DAILY SUMMARY - 1950/10-1950/12

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 06749455
• Document Creation Date: January 11, 2019

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CONFIDENTIAL
EUROPE
3 0 DEC 1950
1482
1. ITALY: Comparison of French-Italian Communist propaganda-- dp9/S
US Embassy Rome, in pointing out the similarities and differences
in the "peace" propaganda of the Italian Communist Party and
that of the French Communists, notes that the Italian Communists
place relatively little emphasis on opposition to German re-
armament but instead stress Italy's poverty and dwell on the
burden that Italian rearmament would place on the working class.
The Embassy observes that recent Italian Communist propaganda
makes no attempt to terrify Italians with the spector of the over-
whelming might of the Red Army but rather focuses on the ex-
pediency of "neutrality" as the means to preserve "peace" for
Italy. The Embassy reports in this connection that left-wing
Socialist leader Nenni, the principal spokesman for this "neu-
trality" thesis, recently declared that "the only intelligent
conservatives are those who hang desperately to hope of a
negotiated peace and support neutrality."
2. .GREECE: No renewal of large-scale fighting foreseen--US Em-
bassy Athens reports that the ranking US military officer in
Greece has no information which would indicate an early re-
newal of hostilities against Greece "on a military scale."
According to the Embassy, this officer shares the views
held by "z.esponsible people" in Athens that the Greek Com-
munist guerrillas now in Bulgaria and elsewhere are not by
themselves capable of operating as a military force and
that neither Albania nor Bulgaria would engage in any military
venture against Greece unless backed by Russian troops, either
overtly or covertly supplied.
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NEAR EAST-AFRICA
3. IRAN: Possible disturbances over oil legislation--US Em-
bassy Tehran believes that the Razmara Government may
find it difficult to obtain a vote of confidence when it attempts
to justify its recent withdrawal of a supplementary oil bill
revising its contract with the Anglo-Iranian'Oil Company.
The bill was withdrawn in order to forestall opposition
attempts to link it with the question of nationalizing the oil
Industry, which the government strongly opposes. The
Embassy reports that a mass demonstration was scheduled
by the government's opposition for 29 December and warns
that, with public emotion being whipped up over the question,
there is some possibility that minor, civil disturbances may
take place.
FAR EAST
4, INDOCHINA: Large-scale Viet Minh attack expected in January--
General de Lathe de Tassigny, French High Commissioner for
Indochina, has told US Minister Heath he feels "almost certain"
the Viet Minh will attack in force in January. De Lattre said
weather conditions beginning about 15 January will practically
prohibit employment of his air force, thereby favoring Viet
Minh attacks. Concerning a Chinese Communist invasion,
de Lathe believes there are actually fewer Chinese Communist
troops in southern China now than in October and that the Chinese
will not invade before February at the earliest. Because rein-.
� forcements and new materials are scheduled to arrive in
January, he is less afraid of a possible Chinese invasion pre-
sumably after January, than he is of Viet Minh attack before
supplies arrive. De Lathe further said he considers the newly -
equipped and Chinese-trained Viet Minh battalions much superior
to the Chinese Communist troops in south China.
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GENERAL
2 9 KG 1950
1481
1. French and Egyptian views on Far East situation�The US grn
delegation at the UN, in transmitting accounts of recent
conversations with French and Egyptian delegates, indicates
that the French representative took a very gloomy view of
the situation in the Far East, particularly Indochina He
does not see how Indochina could be held very long against
Chinese Communist manpower and material resources if
the Chinese decided to give full-scale support to the Viet
Minh. He feels quite certain that if Indochina falls, the rest
of Southeast Asia would fall very quickly to the Communists
and in turn India would not be far behind. The US delegation
comments that it might be fair to draw the inference from
all the French representitive's remarks that the US should
in effect beat a strategic retreat from Korea in order to give
fuller support to Indochinese resistance to Communist aggres-
sion and to husband US resources for defense in other areas.
The Egyptian representative told the US delegation
that the UN is not psychologically or physically prepared for
the step of naming the Chinese Communists aggressors.
Laying particular stress on the-unpreparedness of Asian
countries in these respects, he urged in the interests of
preserving the unity of the UN that the US play for time,
even if only for six weeks or six months. He said, however,
that if the Chinese Communists cross the 38th Parallel it
would probably be undoubtedly necessary to name them as
aggressors.
EUROPE
2, FRANCE: Communist campaign against German rearmament-- 0//9/5
According to 'US Embassy Paris, the French Communist Party is
now giving "virtually undivided attention" to a propaganda i�
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campaign against German rearmament, with the aim of
spreading disunity and paralyzing or retarding Western
defense and simultaneously reinforcing the world "peace
front." The Embassy reports that the French Communists
have initiated a nationwide door-to-door canvass (modeled
on that of the Stockholm Appeal) to collect signed "ballots"
in a national "vote" against German rearmament The
Embassy expects this campaign to develop with mounting
intensity and much variety during the next few months.
3. NETHERLANDS: Dutch-Indonesian views on New Guinea--
US Embassy The Hague reports that the Netherlands Socialist
Party is badly split over the question of whether to transfer
sovereignty over Netherlands New Guinea to Indonesia. Accord-
ing to the Embassy, the conciliatory elements in the party were
responsible for the final Netherlands counter-proposals, which
envisaged either the transfer of sovereignty to the Netherlands -
Indonesian Union Or mediation through an ad hoc committee
or the UN Commission for Indonesia.
Meanwhile, Indonesian delegate Rum has told the
Embassy that there can be no discussion of details of the
tranfer of sovereignty until agreement has been reached
that the transfer will be made�. ,Rum says he has been
advised by friendly Netherlands political leaders to await
the political repercussions of the failure of the Hague meet-
ings, and Rum believes that some weeks of inaction on the
part of tild Indonesians are strategically desirable. Although
he considered it necessary to emphasize that the conference
was ended, and not merely adjourned, Rum concedes that the
time may come when the Indonesians must recognize the need
for a conciliatory attitude and even for a compromise verbal
formula in'order to reach a solution.
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FAR EAST
4. INDOCHINA: French believe expected offensive has begun--
According to US Consul General Blancke in Hanoi, the French
military command regards the activities of the past few days
north of Hanoi as the start of the Viet Minh offensive. The
French are depending on mobile reserves as planned and�
feel they can hold unless the Chinese Communists intervene.
5. BURMA: Government would resist Chinese Communist attack--
US Ambassador Key in Rangoon repbrtit that th-e Burmese Foreign
Minister, in reply to the point-blank question as to whether Burma
would fight if attacked by the Chinese Communists, stated that as
long as the present Burmese Government is in power, Burma
will fight. Key comments that this statement is in line with the
decisions reportedly taken during the emergency conference
held in Mandalay early in December.
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EUROPE
28 DEC 1950
1480
1. GERMANY: Schumacher remains opposed to rearmament-- Co? !S.' 1
German Socialist leader Schumacher has stated to US High
Commissioner McCloy that he opposes German rearmament Cn97
at this time because it would prevent the reunification of
Germany and has reiterated that German rearmament now
would expose a weak West Germany to Soviet retaliation.
From a long conversation with Schumacher, McCloy concludes
that Schumacher's dominant objective is the reunification of
Germany. Schumacher implied that he might possibly accept
temporary neutralization as the price of unification, insisting
that anti-Communist forces would prevail in a neutralized
Germany, particularly if the West would continue to give
economic assistance and grant equality of rights. Schumacher
is opposed, however, to buying Soviet agreement on unification
at the price of any arrangements which would establish the
,equality of East and West Germany or to any deviation from
the principle that free elections must precede the establishment
of any new all-German governing body. He objects to direct
dealings between the West and East German regimes, even
of an exploratory nature, as proposed in the Grotewohl letter.
East German effort to block Western rearmament--
In commenting on a recent East German "law for the protection
of peace" (which provides severe penalties for all Germans
supporting a German contribution to Western European defense),
the US High Commission in Berlin regards it both as an effort
to intimidate West Germans and Berliners from supporting West
German rearmament and as a "legal" basis for further re-
pressive measures in East Germany. The Commission also
points out that with respect to Berlin the measure offers a
means of deterring travel (except by,ait) between West Berlin
and either East or West Germany. Although the law has thus
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far been used principally for propaganda purposes, the Com-
mission considers it possibly significant and perhaps indicative
of Communist concern over activities that
West Berlin press representatives have been singled out for
specific threats under the law and have been the object of one
or two recent kidnapping attempts.
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27 DEC 1950
1479
FAR EAST
1. Status of Dutch-Indonesian 'talks on New Guinea--US Am- Ts
bassador Cochran in Djakarta has learned that the Nether- .5/7-5
lands and Indonesian delegations meeting at The Hague
have agreed to the following points: (a) sovereignty over
Netherlands New Guinea should be transferred to Indonesia;
(b) the transfer should take place within 1951; and (c) a
conference should be held in 1951 to reach agreement on
� seven specific points presented by the Indonesian delegation.
Meanwhile Cochran has learned from his British colleague
that the Netherlands Government is greatly concerned over
the welfare of Netherlands citizens in Indonesia if final
agreement is not reached for the transfer of sovereignty..
The British Ambassador also said the Netherlands Govern-
ment does not expect to obtain the requisite two-thirds
parliamentary majority for transferring sovereignty and
is considering the possibility either of standing on a simple
majority or tendering its resignation on the issue, thus
throwing the onus of disapproval on the opposition in Parlia-
ment.
2. Estimate of Asian opinion on Formosa question--US Consul
General McConaughy in Hong Kong believes that British
observers over-emphasize- the adverse effect on Asian
opinion which would, result from US refusal to turn Formosa
over to the Cine- Communists. McConaughy considers
that the Britatt Mew fails to give sufficient weight to the
effect of such action on the Chinese themselves and notes
the existence Of a body of Chinese opinion in Hong Kon q and
elsewhere which would be "dismayed and disheartened by
the surrender of Formosa. It is McConaughies
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however, that regardless of the direction of Asian opinion
on this question, the effect of any kind of appeasement on�
the Chinese Communists themselves is a matter of "over-
riding importance." He feels that to yield under pressure
and appease them with Formosa, or any other concession,
would further confirm the Chinese Communists" belief in
the effectiveness- of their present policy, would dangerously
increase their contempt for US military capability in the
Far East, and would greatly strengthen and-embolden those
Communist elements who advocate an intimate alliance
with the USSR. He believes that the Peiping regime would
be encouraged to proceed immediately with further aggres-
sive plans in Southeast Asia and concludes that if there
ever was a time when concessions could alter the view of
the Chinese Communist leadership, that time has long since
past.
3. Chinese Communist intentions in Korea
I II
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occupy a
orea u ess
prevented by force. the Chinese Com-
munists "fully expected the US" to bomb targets in Man-
churia and elsewhere in China when the Chinese intervention
in Korea could no longer be concealed.
this was the "important reason" why open Chinese Com-
munist participation was delayed as long as possible; the
Chinese Communists feared bombings would cut lines of
communication from North China to Korea before essential
military similes could be moved there in sufficient quantity.
US failure to bomb military objectives in
China when Chinese Communist aggression became obvious
Nita.p generally regarde0 as evidence of US military
andiVolitical weakness
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4. Chinese Communist troops reported in Indochina--
US Minister Heath in Saigon has been informed by the
chief of the French counter-intelligence in Indochina
that Chinese Communist troops have been observed in
several operations in Tonkin, usually operating heavy
equipment, notably artillery. The French official de-
clared that French military intelligence will not officially
admit the presence in Indochina of Chinese Communists
until it can be proved, and perhaps not even then for fear
of provoking Chinese intervention. According to the same
source, 25,000 Viet Minh troops have recently returned to
Tonkin from training in South China, bringing the total of
Chinese-trained Viet Minh troops to 50,000. Source esti-
mates that these troops, together with a minimum of 100,000
other Viet Minh troops, constitute a total force that the French
"will have difficulty withstanding." He expects an attack per-
haps at the beginning of January and certainly before the end
of January.
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GENERAL
2. Estimate of Soviet reaction to German rearmament--US High
Commissioner McCloy expresses the view that mere announce-
ment of German participation in WeStern European defense pre_
Otiis is not likely to result in immediate Soviet military
aft- McCloy estimates that the USSR will concentrate for
the immediate future on cold war and diplomatic action with
continued military preparations an integral part of its strategy.
In McCloy's view, a decision to resort to military attack
would be based on a combination of Soviet estimates that
the cold war was failing and Western defenses were approach-
ing the point where they could effectively hold Europe. In
its diplomatic campaign, the USSR would attempt to divide
and frighten the West by giving the impression that a Soviet
attack was imminent; simultaneously, the people of Eastern
Europe would be prepared psychologically for such an attack
in order to justify continued military preparations. McCloy
considers a Korea7type attack launched from East Germany
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unlikely except in the case of Berlin where it is a real
possibility. McCloy also anticipates that at a CFM
meeting the USSR would emphasize the German rearma-
ment issue and warns that the Western Powers must be
prepared for dramatic and ostensibly serious offers (such
as. free elections, a peace treaty, and the withdrawal of
troops) as part of the Soviet effort both to delay German
agreement to joining Europe's defenses and to place on the
West the responsibility for the ensuing rearmament race..
FAR EAST
3. INDOCHINA: De Lattre confident of holding Viet Minh--
In an interview with US Minister Heath, newly arrived High
Commissioner de Lathe reiterated the determination &the
French to grant national independence to the Associated States
and declared he would take an active part in creating a national
Vietnamese army. De Lattre estimated that provided the
Chinese did not interfere, French and Vietnamese forces could
eliminate the Viet Minh rebels in about two years.
. Meanwhile, Emperor Bao Dai expressed the view that
de Lathe, with his "energy, military ability and will, could
really accomplish great things" for Indochina.
Bao
.uai tnereiore naa aeciaea not to as ae Lattre tor the return
of the High Commissioner's palace, stating that it was more
important at this time to maintain "de Lathe in his present
good intentions."
French estimate of military situation�According to
US Consul Blancke in Hanoi
considefs it doubtful that alarge-scale Viet Minh attack will
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come before February. The French note that the current
reorganization of Viet Minh forces into divisions will not
be complete until February and that the return of tropical
weather in February will favor native over European troops.
The French also offer the possibility that before launching
a 'major attack, the Viet Minh may await the outcome in
Korea to be sure of Chinese participation if needed.
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1. Prospects for British-Egyptian defense talks�According
to US Embassy Cairo, the Egyptian delegate to the British-
Egyptian defense talks in London reports that although
nothing has been definitely agreed upon he is for the first
time "conservatively optimistic" regarding chances for
success during the conversations which will be resumed in
January.
2. Australian attitude on New Guinea question--In conversation
with US Ambassador Jarman, a British Foreign Office official
expressed the view that despite Australian Foreign Minister
Spender's statement that Australia would not stand idly by in
the event of the transfer of Netherlands New Guinea to Indo-
nesia, the Australian Government has not yet decided upon
a course of action if the transfer takes place. The British
official believes the Australian position will be determined
by the practical consideration that Australia has no adequate�
forces available for use in New Guinea. He added that the
British are trying to prevent further Australian statements
which would disturb Dutch-Indonesian negotiations in the hope
that the transfer may be delayed as long as possible.
EUROPE
234 DEC 1950
1477
� 3. USSR: Report on military activity--The US Military Attache EV/17V. 3
in Moscoif reports a decided increase in the number of anti-
aircraft positions in Moscow during the past month, bringing
the known total to 32 emplacements of 8. guns each. The MA
notes that otherwise the Moscow area is . 'militarily quiet."
The MA als-d'reports no unusual traffic or activity on the rail-
roads in the western and northwestern part of the country, with
marshalling yards in such cities as Moscow, Brest and Smolensk
"not particularly full or busy."
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4. AUSTRIA: Estimate of Soviet intentions--US Minister
Donelly transmits the unanimous view of Chancellor Figl,
� Vice-Chancellor Schaerf, Foreign Minister Gruber and
Interior Minister Helmer that the USSR will not attempt
a direct blockade of Vienna on the Berlin model except as
a preliminary step to general war. These officials never-
theless consider a blockade a real possibility and believe
that provision should be made to cope with it as well as
with internal Communist disturbances and related trans-
portation stoppages.
SAS
c iR
5. GERMANY: Socialist views on Schuman Plan--The US
High Commission in Bonn reports the views of three
Socialist trade union leaders that the majority of German
workers will support the Schuman Plan. The Commission
points out that the position of the trade unions is not in
harmony with that expressed by Socialist leader Schumacher,
who may therefore be forced to re-examine his party's
policy of outright opposition to the Schuman Plan,
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1. Analysis of Soviet-Satellite propaganda�In reporting Soviet
press reaction. to President Truman's declaration of a state
of national emergency, .US Embassy Moscow comments that
the Soviet people have now received their first indication
that increased world tension may affect the "peaceful con-
struction work and internal improvements" of the regime.
The Embassy speculates, that this warning may foreshadow
a strengthening of Soviet military preparations but points.
out that the total press: reaction was not so vigorous as to
be inconsistent with the Soviet "peace policy."
Concerning propaganda on the subject of German
rearmament, the Embassy reports that the change in
emphasis by the Berlin Soviet-controlled press, from stress
on general US plans for world conquest to the danger of war
in Europe, has not been paralleled by the Moscow press.
The Embassy points out that this change in the Berlin press
could be an effort to block West German participation in
NATO or could reveal an intention to provoke-- military con-
flict.
2 2 DEC Sge
Meanwhile, the US Military Attache in Budapest
reports that official Hungarian propaganda is generally
following the "peace" line and the Hungarian people are
being psychologically prepared for offensive warfare only
against Yugoslavia. The Attache notes that the Hungarian
press has contained no indication of President Truman's
having made a statement concerning the use of the atom
bomb and that the Hungarian people are not being psycho-
logically prepared at this time against attack by atom bombs.
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2. Netherlands reaction on New Guinea question--US Embassy
The Hague expresses the view that the Netherlands Govern-
ment will not initially accept the modified Indonesian.proposal
for the transfer to Indonesia of sovereignty over Netherlands
New Guinea. The Embassy observes that the provision re-
quiring an immediate Dutch pledge to transfer sovereignty is
"basically antithetical in tone" to the Netherlands position
as heretofore expressed and that the government could not
accept the proposal until it had been submitted to parlia-
mentary debate in the States General, Where the Embassy be-
lieves opposition would be substantially greater than in the
1949 debate on the transfer of sovereignty to the Republic
of Indonesia.
EUROPE
3, ITALY: Estimate of Italian opinion�US Embassy Rome
estimates, concerning present official and non-official
Italian attitudes toward the international situation, that:
(a) military and foreign office officials seem to "lead
the field" in their awareness of the danger posed by the
USSR and the need for prompt measures and feel that Italy
has a chance of being able to defend itself; (b) most of the
remainder of the government, and many of the intelligentsia
and politically conscious elements, are beginning to realize
the gravity of the situation but feel that Italy is incapable of
undertaking a rearmament program large enough to succeed;
and (c) the general population is completely apathetic owing
largely to a state of war weariness so profound as almost
to constitute combat fatigue. The Embassy further notes that
only timidlmoves towards industrial mobilization have been
niade,44hat the government is not attempting to rouse the
feelings of, the people. The Embassy believes, however, that
as the public becomes more conscious of the growing strength
of Italy and the Western Powers, the attitude of the population
will gradually improve.
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Meanwhile, the Embassy reports that Italian
-Communistpropaganda is laying more stress on
military defeatism and is undoubtedly proving effec-
tive in helping maintain among non-Communists that
lack of a sense of national emergency which is making
it so difficult for the government to rearm Italy, physi-
cally as well as morally. The Embassy also expresses
the view that the violent Communist reaction to the re-
cent sabotage bill may presage stronger and more exten-
sive Communist action in the field of labor.
4. GERMANY: Socialist reaction to Brussels conference--
The US High Commission in Bonn reports that two leaders
of the German Social Democratic Party regret Socialist
leader Schumacher's initial negative reaction to the results
of the Brussels conference and express the view that the
SPD should not take a position until more details are known.
The High Commission believes that "restraints will be
applied" to Schumacher and concludes that if Schumacher
is ready to cooperate, as the two Socialist leaders implied,
and if Chancellor Adenauer can be persuaded to associate
opposition deputies with negotiations, prospects will be
much brighter than in past weeks both for a satisfactory
negotiation of the German contribution to Western defense
and a revised statute governing relations between-,the kederal
-7�
Republic and the occupying powers.
FAR EAST
5. INDOCHINA: Improvement in French position noted.-US Lega-
tion Saigon notes both� a lessening of Vietnamese mistrust of
theliteocktalid a growing support for Bao Dal's regime as a
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result of: (a) widening public realization that France has
finally granted real independence to Vietnam in the Pau
Accords; (b) awareness of the implications for Indochina
of Chinese aggression in Korea; and (c) Bao Dai's recent
public appearances and statements. The Legation points
out, however, that this gradual improvement is being corn -
promised by delays in forming a national.Vietname'se army
and in effecting changes in the unimpressive and unpopular
Vietnamese Government.
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GENERAL
1. European reaction to CFM--A Belgian Foreign Office
official has informed US Embassy Brussels that his
government is in favor of a meeting of the Council of
Foreign Ministers. The official also expressed the view
that Western refusal to hold a CFM meeting would have
"an injurious effect" on the Western European people
who need to be convinced that no stone had been left un-
turned to adjust East-West differences.
21 DEC 1950
2. British concern over Tapanese treaty--A British Foreign
Office official has 'informed US Embassy London that.the UK
has been concerned'for some time over developments in
Japan. and now feels that the crisis in Korea underlines
the necessity for regularizing the Japanese position "before
it is too late." The British official expressed his personal
belief that the "briefest sort" of liberal, non-restrictive
treaty with japan should be concluded, a treaty which would
do little more than end the state of war and permit Japan
to apply for membership in the UN and other international
bodies. He feels that such a treaty could be negotiated with
relatively little delay and would have the added advantage of
being awkward for the USSR to oppose. The official concluded
that the British would have no objection to separate security
arrangements between the US and Japan.
1475
3. British views on Kashmir dispute �According to US Embassy
London, the British Foreign Office does not believe that agita-
tion in.Pakistan over the Kashmir situation has reached a point
requiring early actionby the.Security Council. The- British'ivill at-
tempt at the 4-10 January CommOnwealth Prinie'llinisters' Conference
Document No.
NO CHANGE in Class. 0
- 1 - 0 DECLASSIFIED
Class. CHANGED TO: TS S
DDA Memo, 4 Apr 77
Auth: DD EG. 77/1763
Date ;22)
� "�-� �� � �
' � 2 P (
CONfint
T Or'
By: '01/5
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to have India and Pakistan discuss their differences. � The
British believe that further Security Council action now
would seriously impair the proposed Nehru -Liaquat talks.
FAR EAST
4. INDOCHINA: Carpentier's views on military situation--
In a farewell call on US Minister Heath in Saigon, General
Carpentier, departing commander of French forces in the
Far East, expressed the vie* that a Viet Minh attack is
not likely to occur in Indochina during the next two months
unless supported by Chinese troops. Carpentier reported
no indications of Chinese military preparations for early
participation in such an operation and stated it would take
"some weeks" for the Chinese to mount it. Commenting
that the Chinese would not intervene until a Viet Minh attack
had failed, Carpentier expressed confidence in the ability
of the French to hold a Viet Minh attack two months from
now, after the arrival of reinforcements and materiel in
January.
5. KOREA: ROK "mass executions" reported legally performed-- Cal-
US Embassy Seoul reports that UN officials have investigated
charges cabled by foreign correspondents that ROK civil author-
ities have performed mass executions of prisoners without triak
and that the UN officials are satisfied that the executions, how-
ever badly handled, were the result of sentence passed by a
legally constituted court in accordance with law. According
to the Embassy, the ROK Government has suspended executions,
as a result of public furor and foreign press reports, until a
suitable place can be found and a proper method followed. The
Embassy indicates that President Rhee has ordered speedier trials
in p1 of prison conditions, the observance of normal
decencies in carrying out future executions, and the establish?
ment of a program for reviewing capital sentences.
,At
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'411.1 �
GENERAL
1. Results of Brussels Conference--Secretary Acheson
reps:ills from Brussels that the US, British, and French
Foreign Ministers have agreed to prepare promptly a
general outline of arrangements to be made with the
German Federal Republic in order to reflect the changes
in the present occupation regime which would be made
necessary tty Germany's participation in Western Euro-
pean defense. As a guide to drafting these arrangements,
the Foreign Ministers enunciated the following general
principles: (a) the entry of Germany into Western defense
arrangements would logically entitle it to substantial
freedom, and the goal should therefore be to establish
the relations between the occupying powers and Germany
on as broad a contractual basis as possible; (b) every
effort should be made to explore with the Germans them-
selves the problems involved in establishing such relations
between Germany and the occupying powers; (c) the arrange-
ments made should cover all aspects of these relations, ex-
cept those which can be resolved only in a peace settlement;
and (d) commitments made by Germany through its adherence
to international statutes or organizations would render possible'
the relinquishment of occupation controls.
2. Chinese Communists speak cryptically of. returning to UN--
The US delegation at the UN has been told that Indian dele-
gate Rau "got nowhere" in his final meeting with General
Wu although the Chinese Communists made cryptic remarks
to the effect they hoped to return to the UN soon. The dele-
gation also reports that the cease-fire committee is giving
consideration to the possibility of sending to Peiping a cable
inteitded to quiet Chinese Communist fears of falling into a
trap by accepting the cease-fire resolution.
0 -" �
Document No.
20 DEC 1950 4
1474
NO CHANGE in Class.
0 DECLASSIFIED
Class. CACD TO: TS S
DDA Memo, 4 Apr 77
Auth: DDA RG. 7711763
T Date: By;
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3. Status of Netherlands New Guinea negotiations--US Am-
bassador Cochran in Djakarta has been told by an Indo-
nesian representative that a deadlock may occur in the
Hague negotiations on the disposition of Netherlands New
Guinea if pressure is not brought to bear on the Dutch
to accept the Indonesian proposal for compromise.
Cochran believes "a grave threat" exists in the possibility
that such a deadlock would endanger the existence of the
Netherlands-Indonesian union and damage East-West
relations, with a consequent impairment to US interests.
FAR EAST
4. INDOCHINA: Reported Viet Minh intentions--US Consul d S
Blancke in Hanoi transmits information received from a
French official, who evaluates it as "extremely reliable,"
that Viet Minh leaders two months ago requested three
regUlar Chinese divisions (as "volunteers" if necessary)
to inflict a crushing blow on French and Vietnamese forces
in Tonkin. Source reports that the Chinese have only re-
cruited volunteers from among south Kwangsi-Yunnan
*its, which the Viet Minh are reluctant to accept, and
AhlWat the lack of full-scale Chinese Communist support is
irritating the Viet Minh. In the opinion of the French official,
the Viet Minh fear that recent French political concessions
may bring nationalist support to the Vietnamese Govern.. ��
ment and ultimately undercut the Viet Minh if the -French are
not quickly driven "into the sea." The official concluded
that the Viet Minh feel they must undertake such a drive
even though they have misgivings of being able to accom-
plish their objective without more Chinese aid.
� �
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5. KOREA: Treatment of ROK prisoners deplored�US Poll-
tical Adviser Sebald reports from Tokyo that the UN Com-
mand is "deeply gaturbed" by continuing reports of
inhumane treatment of Political prisoners by ROK authorities
and fears ROK excesses inay.discredit the entire UN Korean �
effort. The UN Command haqsregarded the trial and punish-
ment of collaborators' and other political offenders as an
internal matter for the .ROK and has therefore refrained,- -
from taking any action beyond bringing atrocity reports to
the attention of responsible ROK authorities. Sebald states,
however, that representations Of the UN Command and US
Embassy Seoul appear to have had little effect.
3
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0 DECLASSIFIED
Class. CHANGED TO: TS S
DDA Memo, 4 Apr 77
Auth: DDA R:G. 77/1763
1970 By:
Date? 4 MAR
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gathered the impression that French ministerial officials have
been instructed not to discuss the possibility of a reference of
the Indochinese question to the UN. The Paris correspondents
also feel that the French Government has encouraged press
comment on the inadequacy of US aid, both as a means of ex-
erting pressure for-acceleration of such aid and as a� means of
protecting itself from domestic criticism.
3. UN discussion of Austrian treaty to be avoided�The Department
of State has advised the US DelegatiOn_to the UN General Assembly
that Austrian Foreign Minister Gruber has, agreed that no practical
result can be obtained by submitting the liiistrian"treaty question.to
this session of the General Assembly. The Department feels, how-
ever, that every opportunity should be seized to use the Austrian
treaty question as an illustration of Soviet obstruction tactics and
insincerity.
EUROPE
4. YUGOSLAVIA: Crop shortages worse than expected�US Embassy
� Belgrade reports that crop data recently submitted by the Yugoslav
Ministry of Agriculture indicates that the total food and feed deficit
is more severe in all categories than previously estimated. The
Embassy feels that the revised list of food and feed requirements
represents a realistic approach, but believes the new estimate
Is still too low to insure, against human privation and excessive
slaughtering of livestock during the next six months.
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FAR EAST
5. INDONESIA: Chinese Communist request rejected--US
Embassy.jakarta has learned that the Indonesian Cabinet
has unanimously rejected a request by the newly-arrived
Chinese Communist Ambassador to open nine consulates
throughout the archipelago. The Chinese Communist Ambas.-
sador was told that the bidonesian Government wished to re-
gister all individuals of Chinese origin in order to determine
whether they claimed Chinese or Indonesian citizenship before
considering further any request to establish Chinese consulates.
The Embassy comments that the Indonesian Government is "not
happy" over the aggressive policy being pursued by the Chinese
Communist Ambassador.
6. INDOCHINA: Military situation--US Military Attache Saigon
report that the decision to hold or evacuate the North Vietnam
� border post of Langson will be made by General Juin, recently
arrived from Paris. The Attache expresses the opinion that
. reinforcements for North Vietnam cannot be drawn from the
rest of Indochina without sacrificing French control in those
areas. Meanwhile, US Consulate Hanoi reports that French
General Alessandri commanding in North Vietnam has stated
that "the only thing possible now" is to hold the Red River delta
� area. In connection with the French withdrawals, the head of
the major North Vietnam coal area, which lies outside the pro-
posed defensive perimeter surrounding the delta area, is in
Saigon attempting to persuade the French command to include
the mining district in defense plans.
3
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1422
GENERAL
1. Italo-Yugoslav relations may improve--US Ambassador Allen et*
in Belgrade reports that the Italian Ambassador there is now efiy5
more optimistic of some improvement in Italo-Yugoslav re-
lations than at any time during the past two years. The Italian
Ambassador told Allen that the first favorable development
occurred about two months ago when the Yugoslays relaxed
some of their onerous restrictions in Zone B of Trieste; more
recently, they showed a readiness to resume talks regarding
the evaluation of some Italian property claims as well Is other
outstanding economic questions.
Meanwhile, US Ambassador Dunn in Rome has learned
that Tito apparently made a special trip to Zagreb to discuss
with the Italian Minister of Foreign Trade Yugoslavia's economic
needs and to raise the question of Italian help in meeting Yugo-
slavia's food and feed problems.
EUROPE
2. FRANCE: Position of Pleven Government--US Embassy Paris, emi
in appraising the position of the Pleven Government as it faces
the opening of an election-minded Parliament, estimates that
although there are enough major problems to cause the fall
"of two or three governments" in normal times, the Pleven
Cabinet will probably be able to survive the initial parliamentary
debates. As examples of the difficulties confronting Pleven, the
Embassy points out that the Cabinet is not working as a \team
on some important issues and the government's prestige has
been damaged by the "humiliating disaster" in Indochina. In
these circumstances, the Embassy observes, the Cabinet must
ask at once for legislative approval of an extension of military
service and of a costly rearmament program. Another complex
problem confronting the government is the need to define the French
position in, Regard to German rearmament.
';�?!�!
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NO CHANGE in Class. 0
0 DECLASSIFIED �
C'IANCED TO: TS .
DDA Memo, 4 Apr 77
Auth: DDA REG. 77 1763
Date e 4,_mouLtinr_ By:
'lb:WWII-AL
vCRET
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(CIA Comment: CIA believes the position of the
Pleven Government is more precarious than the Embassy
estimates. If the government falls in the near future, another
middle-of-the-road coalition will probably be formed which
would continue along the general lines of present foreign and
defense policies.)
FAR EAST
3. INDOCHINA: Increased US voice suggested--US Minister Heath 5/13
in Saigon, in discussing the complex situation in Indochina, = If
-
presses the view that US Legation and MAAG Saigon should� a 5
have some voice in French military, political, and financial
policies in Indochina and be able to exert an "advisory in-
fluence" over the same policies of the three Associated States
of Vietnam, Laos, and Cambodia. Heath feels the French
would object to any increase in US influence in Indochinese
affairs, noting that French Commander-in-Chief Carpentier has
been very sensitive to any slight hint of American intervention
In his command, but he believes that the rude shock to French
complacency resulting from the recent military reverses and
current French requests for further aid in Indochina may pro-
vide the necessary leverage to increase US Influence.
Rumors of Hanoi evacuation--US Consulate Hanoi
reports that some dependents of French military personnel
have received orders to evacuate the city and that "informed"
French, whose attitude is described as cheerfully defeatist,"
consider that Hanoi's days are numbered. High Vietnamese
officials there have discounted the possibility, of an internal
uprising and told the Consulate that they intend to remain in
the city. Meanwhile, the Governor of North Vietnam has re-
iterated the need for arms for his local militia in order to
th
"release kegular troops for e front, where they belong."
�
Tio)
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4. KOREA: Rhee's attitude toward North Korea--US Embassy
Counsellor Drumright in Seoul reports that, during a recent
discussion of the use of ROK police in North Korea, President
Rhee indicated an attitude of defiance of the UN and a deter-
mination to incorporate North Korea into the -ROK as speedily
as possible. Drumright urged Rhee to avoid affronting the
UN, and at the end of the conversation, Rhee promised to avoid
trouble over the status of North Korea until-discussions can
be arranged with Ambassador Muccio who is returning from
the Pacific� conference between President Truman and General
MacArthur.
TCONFSE&Pg E T
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IOIffMET
GENERAL
EUROPE
20 SWITZERLAND: Pressure for export controls suggested
�
US Minister Vincent in Bern expresses the view that although
the Swiss are showing a "disposition" to cooperate in the
Western program to control exports to Eastern Europe, it is
clear that the extent of Swiss cooperation will depend on the
amount of pressure which the Western European countries
participating in the export control program are willing to
exert on Switzerland by withholding stratpgic,materials.
1
WEN E T
�
Document ;�,To. i
NO CHANGE in Class., o
0 D:CLASSIFIED
Cla:.;s. C -.TaD. TO: TS
ODA Memo, 4 Apr 77
Auth: ODA R:20. 77/1763
Date:. 2'4 mA4AR 4978 By:
7 OCT 1950
1421
coils
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Vincent suggests that; once the basic decision to pressure
the Swiss has been made, the Western nations could either
approach Bern officially on the problem or simply cut off
strategic supplies to the Swiss without publicity or formal
notice until adequate Swiss controls are adopted.
(CIA Comment: The Swiss are reluctant to sacrifice
the benefits of middleman between the East and the West, and
they will probably have to be pressured into adopting strict
export controls. The Swiss still need to be convinced that
the Western nations themselves are denying Eastern Europe
those goods which the Swiss have been asked to embargo.)
3. YUGOSLAVIA: ,Salonika port facilities needed--US Ambas-
sador Allen in Belgrade reports that the Yugoslav Minister
of Foreign Trade has raised the question of Yugoslavia's
urgent need to be able to import foodstuffs through the Greek
port city of Salonika. The Yugoslav Minister said his govern-
ment has been anxious to open rail connections with Greece
for some time and expressed the hope that the US can prevail
on the Greek Government to become more cooperative., Allen
agrees that the prompt reopening of the Yugcislav-Salonika
rail connection and resumption of the use of the Free Port by
Yugoslavia are important. He adds that the Turkish Ambassa-
dor in Belgrade has also expressed much interest in the use
of Salonika port faCilities by his country because rail connec-
tions through 'Bulgaria are most difficult and may be cut off
at any time.
(CIA Comment: Both the Greek and the Yugoslav Govern-
ments have contributed to the currently cool relations between
the two countries. The present situation, however, may lead to
an early resumption of general negotiations between the two
countries on the technical level, without necessarily involving
immediate normalization of their presently limited diplomatic
relations.)
��
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FAR EAST
4. KOREA: Communist atrocities in Seoul area--US Embassy
Seoul transmits an estimate, based on incomplete investigations,
' that thousands of South Koreans in the Inchon-Seoul area were
either murdered by the Communist invaders or forced to
march north with the evacuating forces. The Embassy points
out that the investigation of Communist treatment of political
prisoners has been complicated by the lack of witnesses be-
cause of death, flight from the area, or forced evacuation with
the retreating North Korean troops. Even without all the sup-
porting details, the Embassy is convinced that during the last
days of Communist occupation of Seoul, the North Koreans
forcefully deported large numbers of people known to be loyal
to the Republic of Korea Government. The Embassy also feels
that the Communists murdered many South Koreans, probably
thousands, including children of officials who were with the
ROK Government at the time.
3
4Phi
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EUROPE
j6 OCT 1950
1420
1, YUGOSLAVIA: Formal request for US aid to be made-ATS
Ambassador Allen in Belgrade reports that, in a discussion ��
of Yugoslavia's food requirements, Tito agreed that Yugoslavia
should make a formal request for US aid to alleviate the grow-
ing Yugoslav food shortage. In connection with the long-range
problem of obtaining a loan to continue Yugoslavia's major in-
dustrialization program, Tito said he felt confident that a com-
promise could be reached between the international agency
considering the loan and the Yugoslav Government. Allen com-
ments that Tito showed little surprise and no resentment at
Allen's statement that $400 million additional credits was. much
larger than Yugoslavia could repay. On the basis of this interview?
which was friendly throughout, Allen says he is "inclined to think
that Tito is now favoring the more moderate elements in his �
government.
5/5
FAR EAST
2. Possible Chinese Communist intervention in Korea�According
to US Embassy Hague, the Netherlands Government has been
informed by its Charge in Peiping that "reliable sources" have
stated that four divisions oL unidentified troops,, presumed to be
Chinese, have crossed the Manchurian border into. North Korea.
(CIA Comment: There have been numerous reports during
recent weeks regarding four Chinese Communist units (variously
identified as Armies and Divisions) which are alleged tO have
crossed into Korea from Manchuria, and the Netherlands Charge's
'report may be a repetition of these earlier claims CIA continues
to believe that the .Chinese Communists, while continuing to assist
the North Koreans; probably will not intervene openly in the present
fighting in Korea.)
/16.44y 5
T (COM
T
D o cument NO.
NO CHANGE in Class.
0. DECLASSIFIED
Class. CIA1103D TO:
MA Memo, 4
Auth: DDA R3G. 77
Date vz MAR 1978
0
TS S
Apr 77
1763
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3. INDOCHINA: French Socialists divided over Indochina policy-- C/415
US Minister Bohlen in Paris reports that although there is no
disunity among French Socialists on the necessity of continuing 5/5
the struggle against Communism in Indochina, there is a difference Cbt�
among party leaders as to how the Indochina problem should be em
cleared up. According to Bohlen, a majority of the party leaders
believe that taking the problem to the Security Council would almost P4(5
constitute an invitation to the Chinese Communists to assume an� col is
even more active role in Indochina. On the other hand, Secretary
General Mollet is reported to be so convinced of the long-term
weakness of the French position in Indochina that he is ready to
"duinp not Only the military but the civil problem into the lap of
the United Nations." Bohlen adds that the Socialists are also
divided on the wisdom of appealing for US troops now, but such
assistance would probably be desired in event of an invasion of
Indochina by the Chinese Communists.
� ;.1
1'
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French evacuation plans-4n a conversation with US
Minister Heath in Saigon, French Hip Commissioner Pignon
stated that he was not yet "worried' about the Tonkin delta
region (the main French area of control in North Vietnam),
but he admitted that plans for the evacuation of the civilian
'population had been prepared. In Pignon's opinion, the danger
was not "immediate and French troops could hold the area
,with "accelerated aid."
although the French position in the delta area could
normally be held; it is now completely open to "undermining from
behind the lines.
with the exception of French
sympathizers, the population is in general "cautiously pleased" by
the recent French military reverses, and comments that the local
attitude of "wait and see' can change overnight.
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THE AMERICAS
C kuttAtil
5. BRAZIL: Cooperation with US may lessen--US Embaspy
Rio de Janeiro transmits a public statement by Getulio
Vargas (former dictator of Brazil who now has a substantial
lead in the balloting for president) that "his government will
be of a laborist orientation, like that of England and the Scan-
dinavian countries," and evolutionary in character. Vargas ex-
pressed confidence that the present government would fulfill its
promise of a normal transfer of public power. Vargas promised
"more intimate and closer collaboration with the nations of our�
Hemisphere"; he also stated that while favoring entry of foreign
investments generally, he opposed foreign capital investment in
sectors which could be covered by local capital or which must
be controlled by the nation.
(CIA Comment: Vargas now leads his nearest opponent
by 1.2 million votes, with 75 percent of the estimated ballots
tabulated. Vargas will probably be the next President of Brazil,
and although he will not be openly hostile to the US, his extreme
nationalism may reduce somewhat Brazil's close cooperation
with the US.)
SPAIRDENTA
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11114.48494/7411
GENERAL
1. SC discussion of Ambon dispute opposed--US Ambassador
Cochrane at Jakarta expresses the opinion that "most
serious international complications" could arise if the UN
Security Council discusses the current Ambon dispute. In
addition to the opportunities offered to the Soviet Union by
such a debate, Cochrane believes that if the matter comes
� before the UN the whole question of the powers and composi-
� tion of the UN Commission for Indonesia will be aired. Such
� a development might prejudice any chances of The Nether-
lands and Indonesia reaching agreement on the disposition
of New Guinea and might also open the way for India's parti-
cipation in UNCI and an undesirable extension of Indian in-
fluence in' Indonesia. Cochrane also believes that the SC
debate would -arouse violent Dutch-Indonesian recriminations, ,
� which have thus far been covered up, and. that the resultant
incitement of sensitive national feeling in Indonesia could
cause the dissolution of the Dutch-Indonesian union and the
loss of all Dutch major interests in Indonesia.
2. French pessimistic over Indochina--In a conversation with
US Minister Bohlen in Paris, Baeyens, Director of Far East-
ern Affairs of the French Foreign Office, expressed the view
that the Letourneau-Juin mission to Indochina is not likely to
accomplish much in the face of the serious military situation.
Baeyens pointed out that it is of no use to send new recruits
to Indochina, reinforcements cannot be sent from metropolitan
France and can be "ill spared" from North Africa. Baeyens
also anticipates a stormy debate on Indochina when the French
National Assembly convenes. Bohlen comments that Baeyens
may be deliberately assuming a pessimistic attitude in an
effort to support French appeals for UN aid.
T 0 P
Leaff
Document No.
vi,
34 OCT 195U
1419
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DECLASSIFIED
Class. CHANCED TO: TS S
DDA Memo, 4 Apr 77
Auth: DDA 77/1763
Date:2 4 Milo
n 1978 By: 0
�
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3. British views on French-Indochinese relations--The
UK Foreign Office has informed US Embassy London
that at a recent conference in Singapore with British
officials, General Carpentier, French Commander in
Indochina, expressed his awareness of the need for poli-
tical action to strengthen the weak Vietnam Government.
Carpentier said that the French have given Vietnam more
responsibility than is generally realized,, and that some
means must be found to convince world opinion as well
as the Vietnamese of-the sincerity of French intentions
to transfer control to the Vietnam Government as soon
as possible. Carpentier expressed the belief that the
greatest contribution the UK could make would be to
Impress upon India that the French were sincere in this
regard and that it was of vital importance to prevent the
Chinese Communists from overrunning Indochina. Accord-
ing to US Embassy London, the Foreign Office, believing
it is up to the French themselves to win over Nehru, is
planning to suggest to French Foreign Minister Schuman
that mere implementation of the 8 March agreements is
inadequate under present circumstances and that the
French Government should issue a formal statement of
intention to grant Vietnam independence within a fixed
period of perhaps ten years.
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GENERAL
18 OCT 195U
1419
I. British oppose SC handling of Ambon dispute--According
� 55
to US Embassy London, the decision of the UN Commission /
for Indonesia to refer the current Ambon dispute to the C /AA
Security Council is causing considerable misgiving in the
British Foreign Office. UK diplomatic officials fear that
� the Western Powers may have to assume a neutral position
in the dispute and that the USSR will then be able to seize the
opportunity to pose as an enemy of colonialism and a cham-
pion of the Asiatic nations, a stand which India would doubtless
support. The Foreign Office is tentatively taking the position
that the UK delegation should attempt to prevent UN considera-
tion of the Ambon problem, in anticipation of the possibility that
the military action will be concluded in Indonesia shortly, thereby
presenting the Security Council with an accomplished fact.
Meanwhile, the Department of State has instructed US
Ambassador Cochran at Jakarta to impress upon the Indonesian
Government the desirability of accepting the good offices of the
UN Commission for Indonesia in settling the Ambon dispute.
Cochran is to point out that a Security Council discussion of the
subject is likely to raise questions concerning the degree to
which Indonesia has fulfilled the conditions of the 1949 Hague
Round Table Conference settlement.
:ft
FAR EAST
2. INDOCHINA: French admit grave defeat--US Legation Saigon
reports that General--Cmentier, commander of French Forces
in the Far East, recently acknowledged the gravity of the French
defeat near Caobang. Stating that the five trapped battalions
represented the "very best" of French forces in Indochina,
T SPNROERM T
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Carpentier admitted that the only remaining reserve unit
capable of immediate action in North Vietnam was a single
paratroop battalion in Hanoi. Estimating Frenchlosses at
"around 2,500 men," Carpentier declared that the guerrilla
type of war has now ended in the north; h6 indicated the French
force had been "demolished" by 10,000 Viet Minh troops op-
erating with modern efficiency, having good artillery support,
and fighting "on orthodox lines." Carpentier expressed the
opinion that under these circumstances further "determined"
Viet Minh attacks could force the French to abandon the re-
maining eastern frontier posts from Langson down to Moncay.
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GENERAL
1. French sentiment regarding German rearmament--US
Embassy Paris transmits the opinion of Secretary General
Colin of the Popular Republican Party (MRP) that, once
certain conditions have been met, the French Government
could rally a substantial majority in the National Assembly
to support a motion favoring the incorporation -of dernian units
in European defense forces. Colin feels the primary con-
ditions necessary for approval of German rearmament by the
French National Assembly are: (a) that West European defense
forces be established on a unified basis; (b) that rearmament
of West-European nations be well under way; and (c) that im-
plementation of the Schuman Plan be commended. The Embassy
comments that this report testifies to the "tremendous change"
in the attitude of the Assembly since the summer of 1949, and
expresses the opinion that the conditions of German rearma-
ment mentioned by Colin genuinely reflect the present feeling
of most Frenchmen.
2. UNCI refers Ambon dispute to Security-Council�The United
Nations Commission for Indonesia (UNCI). has referred the
Ambon dispute to the Security Council tor -Consideration, and
suggests that the SC call upon the Indonesian Government to
utilize existing UN machinery for a peaceful solution of this
problem. UNCI, in explaining its action, reports that it has
been unable to obtain adequate cooperation from the Indonesian
Government to work out a peaceful settlement of hostilities be-
tween the Indonesians and the rebel "South Moluccas Republic"
on Ambon Island.
Document No. 0 10
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EUROPE
4. CZECHOSLOVAKIA,: Soviet pressure increasing�US Am-.
bassador Briggs in Prague has been informed3.3(h)(2)
that in addition to .a heavy Soviet hand in the
affairs of the Czechoslovak -Army, there has been a. considerable
increase In demands on and coi4rol of the Czechoslovak i
economy.. Czech Ministers were told 3.3(h)(2)
eft?
3.3(h)(2)
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at the recent economic meeting in Moscow that the rate
of development of heavy industry was unsatisfactory and
they were ordered to raise the number of men employed
in heavy industries by 300,000 before the end of 1950.
the USSR has emphasized
that present capacity of Czech machinery must be more fully
utilized, urging one or two additional shifts of workers.
5. YUGOSLAVIA: US aid to be discussed with Tito--US Ambas-
sador Allen in Belgrade suggests that his forthcoming talk
with Tito be confined solely to the question of grant-in-aid
for food. Allen believes that the linking of other US-Yugoslav
problems with the food issue would be interpreted by Yugoslav
officials to mean that the US is using the desperate food situa-
� tion as a lever to force a majtir cutback in the Yugoslav indus-
trialization program. Allen feels that such an interpretation
might cancel the good effect of the US offer of aid and cause
the "more reasonable" element of the Yugoslav Government
to lose influence in Tito's Government.
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GENERAL
MacArthur's views on Korean elections--According to
Colonel Katzin (UN Secretary General Lie's personal re-
presentative with the UN Commission on Korea), General
MacArthur has expressed the belief that it is important
to hold elections in Korea as soon as possible and by the
end of the year at the latest. MacArthur is confident he
can handle the situation until the elections without imposing
military government "in an obnoxious way" but he feels
that, from an over-all security point of view, it will be.much
better to have early elections so that the Koreans may take
responsibility for their own affairs at an early date. Katzin
commented that he did not see how elections could be held
as soon as MacArthur desired, but he agreed that elections
should be held as soon as possible.
1 OCT 1950
1416
C/R/e4/.
2. Conflict may develop over Yalu Rive/Pi:lower plant--US Embassy
Moscow expresses the opinion that the important Suiho hydro-
electric plant located on the Korean side of the Yalu River
(which constitutes the Korean-Manchurian border) will "doubt-
less" become a source of conflict involving Korean, Chinese,
and Soviet interests. In support of this view, the Embassy points
out that: (a) the plant was originally built by the Japanese and
designed to supply both Korea and a part of Manchuria; and .
(b) through a Sino-Soviet trust, the plant recently provided power
for the Liaotung Peninsula, where Port Arthur and Dairen are
located. The Embassy feels that the Chinese Communists may
be tempted to occupy_the plant to protect their interests, with
the resultant danger of a clash between Chinese and UN forces.
Document No,
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FAR EAST
3. INDONESIA: MDAP aid rejected�US Ambassador Cochran
in Jakarta was informed by Indonesian Foreign Minister Rum
that Indonesia does not wish to receive military aid through
MDAP. The Foreign Minister emphasized that this action
was not indicative of an unfriendly attitude toward the US but
derived primarily from his government's fear that: (a) accep-
tance of MDAP aid would be widely criticized by Communist
countries as an indication that Indonesia "had taken sides";`-'
and (b) domestic opposition to the terms of an MDAP agree-
ment might result in the overthrow of the present Cabinet,
which is already facing a critical vote of confidence. In re-
sponse, Cochran pointed out that the Indonesian plan to pur-
chase badly needed military equipment on the US market might
be impossible as supplies were limited and allocated in advance.
4. INDOCHINA: French reverses serious--US Consul Blancke in C
Hanoi transmits an estimate
that French forces are having the "fight of their lives" Cfit
in e Sino-Tonkin border area northeast of Hanoi.
1;1rench troop reserves in Indochina
are practically exhausted an liere are only 400
combat troops left in Hanoi. Blancke admits that Hanoi may be
in danger, but he does not feel the Viet Minh are "now organizing
a putsch."
Meanwhile, as an indication of the seriousness with which
the French Government views the military situation, Minister
for the Associated States of Indochina Letourneau and General
Juin, Commander of French Forces in North Africa, are reported
to be leaving immediately for Indochina for an on-the-spot inspection.
L� � ���, !,�
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(CIA Comment: The sudden deterioration of the French
military position along the China border is probably the result
of: (a) effective concentration of Viet Minh forces; (b) excellent
� Viet Minh intelligence on the timing of the French evacuation of
the anchor post at Caobang; and (c) poor French reconnaissance.
Loss of the French border posts will greatly facilitate the move-
ment of heavy equipment from China to the Viet Minh.)
5. KOREA: Dismantling of industries by Communists--US Ambas-
sador Muceio in Seoul reports that at the time of the UN landing
at Inchon, the Communist invaders had been engaged in extensive
dismantling of industries located in the Inchon-Seoul area. Among
the industrial equipment observed to have been in process of re-
m-oval at the time of the Communist retreat from Seoul are textile
machinery, transformers at the Tanginri steam plant, and machine
tools� of all types at factories located in Seoul, Yongdong Po, and
Inchon. Muccio adds that machinery and parts still on premises
or in vicinity are being reinstalled.
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48031 .
GENERAL
1. Analysis of Soviet press treatment of Germany�US
Ambassador Kirk in Moscow expresses the opinion that
there is a "striking similarity" between the Soviet Union's
propaganda treatment of the first anniversary of the Ger-
man Democratic Republic (GDR) and the usual Soviet press
treatment of Satellite state anniversaries. Kirk adds that
an examination of the Soviet press treatment of the GDR
anniversary leads him to believe that the Kremlin is not
overly optimistic in regard to the German problem. As
possible clues to the Kremlin's thinking, Kirk cites the
lack of any mention in the Soviet press of the recent West-
ern guarantee of West German territorial integrity and the
emphasis on economic successes of the East German
regime.
EUROPE
2. GERMANY: Exportation of Ruhr coal being resisted--US
Representative Livengood on the International Authority
for the Ruhr (IAR) reports that the Webt Germans are show-
ing an uncompromising attitude without precede* in the
allocation of Ruhr coal production. Livengood says the Ger-
mans are'cleakly unwilling to accept an z"equal sharing" of
Ruhr coal among the nations represented! %Axe International
Authority for the Ruhr. The Germans base their posi-
tion on an increase in internal needs resultigg from the
stepped-up steel production following thff iPecent decisions
of the US, UK, and French Foreign Minilters. Livengood
� believes the Germans are demanding, as the price for
cooperating in the European rearmament program the right
to determine their internal coil requirements without inte
ference from the IAR.
Document No.
NO CUANCE in Class.
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r- _ 3, 4 Apr 77
Auth: 77 1763
Date : By: _o k.3..
0 OCT1
1415
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(CIA Comment: The Germans will exert every effort
to use the impending coal shortage and the need for increased
steel production for rearmament to press for the elimination
of the TAR as one of the major steps in recovering control
over their own economic affairs. This new German attitude
is also reflected in the recent increase in German demands
during the Schuman Plan negotiations.)
FAR EAST �
3 INDOCHINA: Vietnamese to insist on greater independence--
(a) Vietnamese Premier Tran Van
Huu will be forced to resign because of his failure to obtain the
concessions sought by the Vietnamese at the Pau Conference;
and (2) Vietnamese consider the Pau Conference a complete
failure because the principal issue of customs revenue has not
been resolved to their satisfaction. (The Pau Conference was
called to reach agreement on the administrative relationships
in Indochina between France, Vietnam, Cambodia and Laos.)
(CIA Comment: There is considerable evidence to
support the above views. The absence from Vietnam of Bao
Dai and several of his principal ministers during the pro-
tracted and thus far fruitless Pau negotiations has already
seriously hampered both the development of a working Viet-
namese administration and the implementation of US economic
and military aid programs for Indochina. If Bao Dai and his
government leaders continue to stay in France, the possibility
of a successful solution of the Indochinese problem will be
seriously reduced.)
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4. INDONESIA: Ambonese resisting Indonesian troops--The e 1A15
US representative on the UN Commission for Indonesia
reports from Jakarta that he has information indicating the
Indonesian military action against Ambon (where the natives
have declared themselves independent) is not going well.
According to the US representatives sources, Indonesian
Government troops have been driven back slightly and,
although Ambonese troops may be forced to surrender
eventually because of food and ammunition shortages, they
are proving to be superior fighters.
(CIA Comment: Large numbers of Ambonese have
been used for years in the Dutch forces in Indonesia because
of their excellent fighting qualities. In the agreement to
disband Dutch forces in Indonesia, the Ambonese were given
the choice of joining the Indonesian army or being repatriated.
About 20,000 repatriates are now located in camps throughout
lava. Although many of these 20,000 are disarmed, they are
still capable of causing serious disturbances.)
THE AMERICAS
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66 1414 1
RET
ECRE.T.
� I
GENERAL
I. Chinese Communists intervention in Korea discounted--
US Ambassador Murphy, in Brussels has been informed by
a high official of the Belgian Foreign Office that the Belgian
'Government, which has many contacts in China, has no in-
formation "of, a disturbing nature" regarding the possibility
of direct military intervention in Korea by the Chinese Com-
munists. The official expressed the opinion, that the recent
statements of Chou En-lai, Chinese Foreign Minister, should
be closely.examined because the Chinese were evidently pre-
pared to make equivocal statements to please the -Russians,
without, however, making a definite commitment to act openly
in Korea. The Belgian official also pointed out that present
Chinese obligations were great and their supply and economic
situation very difficult.
(CIA Comment:� Communist China has carefully re-
frained from making a public commitment to aid North Korea
by direct intervention. Public and private threats by Communist
China officials to intervene directly in North Korea have prob-
ably been designed primarily to deter UN forces from going
beyond the 38th Parallel.)
EUROPE
2. BELGIUM: Supreme commander for NATO favored--US Ambas-
sador Murphy in Brussels transmits the opinion of former Bel-
gian Premier Spaak that the Western Europeans would "more
eagerly" improve their defense effort if some outstanding person
were appointed supreme commander of the forces of the North
Atlantic Treaty Organization, and if that person had "very large
ppwers70 over those forces. Spaak also feels that the "more.
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cautious" US proposal for a chief of staff, to be succeeded
later by a supreme commander, would not arouse much
enthusiasm in Europe.
3, FRANCE: German participation in defense gaining favor--
US Ambassador Bruce reports that the trend of thinking in
France continues to be toward the eventual acceptance of
a German role in an integrated Western European defense,
with the question now becoming that of timing rather than that
of German participation. Bruce adds that another growing
concern of the�French now appears to be whether the Germans
are to be rearmed at the expense of French rearmament.
C
4. GERMANY: Concern expressed over effects of US Security Act-- CM'
USTigh Commissioner McCloy in Bonn has learned that the
West German Consul General Krekeler in New York, now in Ch9
Bonn for consultations, is "enormously concerned" about the
repercussions in West Germany of the US Internatiorial Security
Act Krekeler is worried about the unfavorable effect the act
might have on the exchange program which, he feels is very im-
portant for drawing German youth firmly into the Western camp
and for furthering the cause of democracy in Western Germany.
Meanwhile, US Representative Cowan in Hamburg expresses the
opinion that economic contacts between German and US enterprises
will doubtless suffer so long as the restrictions of the Security Act
;remain in effect, thus considerably impairing trade relations.
�
5. YUGOSLAVIA: Joint aid in food crisis:proposed�US Ambassador C/05)
Allen in Belgrade reports that the British and French Embassies
and Canadian Legation there are concerned about the timeliness
and adequacy of outside aid to Yugoslavia needed to prevent
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human suffering and excessive slaughter of livestock as a
result of the recent crop shortages. The British, French
and Canadian representatives agreed that: (a) essential items
should be collected and shipped without delay in order to per-
mit distribution within Yugoslavia before winter weather hampers
the already overburdened transportation system; and (b) out-
right grants would be preferable to credits for food and feed
purchases.
3
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1,- 7 OCT 1951)
1413
GENERAL
1. UK suspension of arms shipments to Egypt�According to 5/7g
US Embassy London, a highForeign Office official has stated
that the suspension of arms shipments to Egypt was decided
primarily on the grounds that certain types of armament were
needed for UK,. Commonwealth and NAT defenses. The British
official commented that the unfavorable development of the
recently-suspended defense talks between the UK and Egypt
had persuaded the UK not to make an exception to the priority
distribution of arms; he added, however, that the British Govern-
ment had presented the arms suspension to the Egyptians as a
purely defense decision, leaving the Egyptians to draw their own
conclusions.
EUROPE
2. YUGOSLAVIA�US may be asked for grant-in-aid--US Ambas-
sador Allen in Belgrade reports that he has been informally
approached by. the Yugoslav Planning Director, Boris Kidric
regarding the prospects for obtaining a US grant-in-aid to
alleviate Yugoslavia's critical food shortage during the next
eight months. Kidric estimated that Yugoslavia's crop losses
from the drought would total $100,000,000 and that food and
feed imports needed between now and the 1951 harvest would
be approximately 460,000 tons. Allen commented_to Kidric that
the, projected grant-in-aid might encounter some difficulties
and Kidric said he would again discuss the matter with Allen
before making the formal request for US aid.
� SECRET
T-err�S-E-e-irrf
3/5
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3. AUSTRIA: ,Soviet interference during recent disorders-- ei4/3
US Charge Dowling in Vienna reports that the Austrian
Government feels that the most serious incident during
the recent disorders was the Soviet intervention in Wiener
Neustadt where gendarmes from Vienna expelled demonstrators
from the post office only to be expelled later by orders of the
Soviet town commander. Dowling "understands" that the
Austrian Government has decided to send telegrams to the
four occupation headquarters protesting the Soviet town com-
manders action and requesting that his orders be countermanded.
4. SWEDEN: Investigation of alleged US bombing in China--US
Embassy Stockholm reports that the Swedish Government will
cooperate in an informal investigation of Communist China's
charges that US planes bombed targets in Manchuria. The
Embassy adds that the Swedish Government has indicated it
is prepared to take prompt action to designate a representative
for this purpose.
71
SECRETdikin
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ARCHIVAL RECORD
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AGENCY ARCHIVES,
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1,_C_ONFIDENTIALL
GENERAL
I. US stresses need for prompt UN action on Korea--The
Department of State, as a result of reports that the
Netherlands Delegation to the UN would sponsor the idea
� of suspending hostilities in Korea for two weeks in order
to explore all avenues of a peaceful settlement, has in-
� structed Ambassador Van Roijen at The Hague to urge the
Netherlands Government "in the strongest terms" not to
take such action. In stressing the need for prompt and firm
action on Korea by the UN, the Department points outthat
North Korean forces are withdrawing as rapidly as possible
with the obvious intent of regrouping and reforming behind
the 38th Parallel. The Department adds that the North
Koreans have shown no indication they intend to comply
with General MacArthur's call to cease hostilities. As
further evidence that the North Koreans plan to continue
fighting as long as possible, the Department points out that
considerable amounts of military supplies are continuing to
flow into North Korea from the northern bofders.
EUROPE
2. AUSTRIA: � Inflation dangers--US Charge Dowling in Vienna
expresses fear that inflation and related labor unrest will
develop regardless of the wage -price agreement recently
achieved. Dowling says that price increases in addition to
those provided for in the agreement seem inevitable, and
there will be constant danger that the Trade Union Federa-
tion may be forced to make new wage demands, which would
add to present inflationary pressures.
Dommenti 0�
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.Authip DA REG. 77 /763
I.
Date:
:0 OCT 1950
1412
CIAIS
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(CIA Comment: CIA agrees with the above estimate.
If the standard of living is again reduced, the trade union leaders
will be forced to make new wage demands more quickly than
they have in the past.)
3. SWEDEN: Air force operations may be curtailed--The US
Military Attache in Stockholm expresses the opinion that
. US failure to permit export of aviation gas to be used by the
Swedish Air Force can practically ground that service and
will, at least, seriously curtail its operations.
(CIA Comment: Of the air forces of Western Europe,
the Swedish Air Force is second in size only to that of the
UK. Sweden is steadily modernizing its air arm, which con-
sists largely of fighter planes, both jet and conventional.)
4. UNITED KINGDOM: Plans for increased stockpiling--Repre- C
sentatives of the British Board of Trade have advised US
Embassy London that the UK Government has recently decided
to stockpile a variety of strategic materials in substantial
quantities. The program is designed primarily to stockpile
those strategic materials which may be difficult to obtain
in wartime because of shipping difficulties or loss of the
source. The Embassy reports that the UK is anxious to
coordinate with the US the purchase of items to be stockpiled.
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5 OCT 1950
1411
GENERAL
1. US view on Chinese intervention in Korea--The Department of d/P/5
State, in examining the possibility of the Chinese Communists de-
fending North Korea if 11N forces cross the 38th Parallel, expresses
the view that the only question is the extent of Chinese intervention
in Korea. In support 9f this view, the Department points out that
Manchuria is now a very important source of supply for North
Korea and that 20-30,000 Chinese-trained troops of Korean
origin have already been sent to the North Korean army. The
Department feels that any Chinese Communist statements re-
garding intervention at this time can only be designed to dis-
suade UN members from supporting firm UN action. The
Department emphasizes that a hostile army in the field is'
continuing operations against UN forces and that any delay in
a UN decision on Korea could� only-result in increased defiance
of the UN, as well as placing further difficulties in the way of
� achieving a unified Korea.
2. Danish opinion favors crossing 38th Parallel--US Amb-agatior
Anderson in Copenhagen reports that the recently-expressed �
fears of the Danish Prime Minister that Danish support would
be lost if UN forces crossed the 38th Parallel are not being
confirmed by the current trend in press comment or public
opinion. The Ambassador comments that the magnitude and
speed of the UN advances in Korea seem to have overcome
recent Danish apprehension; she adds, however, that these
Danish anxieties 'may be expected to remain just under the
surface."
Li
Ahtliment NO. 00
CIA
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EUROPE
� 3. THE NETHERLANDS: Delay in extending military service--
US Ambassador Chapin in The Hague reports that although
Dutch Prime Minister Drees is prepared to continue the
military service of most Dutch conscripts beyond 12 months
� "If necessary for technical reasons," he refuses to make an
official public decision in the matter. Chapin adds that Mar-
shal Montgomery is expected to make an "emphatic representa.-
tion" to Drees regarding the necessity for extending the military
service term to 18 months. According to Chapin, the British
Ambassador at The Hague believes that the Dutch will eventually
"fall in line,''
efa
t.1
NEAR EAST - AFRICA
� 4. CEYLON: Suggested strengthening of defense--US Embassy S
London reports that the Government of Ceylon has suggested
that the UK underwrite an expanded Ceylon defense program
and has intimated that the US should also be called upon
to help. The Government of Ceylon apparently feels that it
should provide men and sites for bases in return for Western
arms and equipment. The Embassy comments that the UK will
probably reject the Ceylonese approach and suggest that Ceylon
Itself assume greater responsibility for improving its security
position.
FAR EAST �
/5. INDOCHINA: French militaty tactics in Indochina�The Com- cis S
manding general of French forces in the Far ,East, General
Carpentier, in discussing the recent abandonment of several
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northern border posts by French forces, stated that the
primary French aim was the defense of the"useful"
portions of North Vietnam. Carpentier declared that the
abandoned border posts, which had previously been import-
ant for collecting intelligence, hindering Sino-Viet Minh -
collaboration, and disarming fleeing Chinese Nationalist
remnants, were no longer worth the military risks." (Mean-
while, press reports quote a French communique to the effect
that the frontier post of Caobang has been abandoned, making
a total of four such points given up by the French since 18 Sep-
tember.)
6. KOREA: Situation in South Korean capital--US Ambassador
Muccio in .Seoul, in reviewing the situation in the South
Korean capital since the entrance of UN forces, reports
that the population appears to be genuinely happy to see the
UN forces and to be relieved of the intolerable Communist
occupation. The Ambassador confirms earlier press reports
of general devastation and destruction throughout Seoul, but
points out that a considerable part of the destruction of larger
structures seems to be the result of fires started by the Com-
munists prior to their departure. Mucci� adds that the Govern-
ment of Korea is approaching the problem of reprisals against
collaborators cautiously, having already called on the population
to exercise restraint; he feels that the 'revenge problem" is
somewhat easier because the Communists took several thousand
collaborators and hostages with them.
' I
�
3
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GENERAL
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1. Schuman favors French-German defense agreement�At
the close of the North Atlantic Council discussions in New
�york, French Foreign Minister Schuman remarked that
"he was thinking" of personally taking the initiative re-
garding German participation in a North Atlantic defense
force. Schuman added that he realized the importance of
France "not being dragged along"; he mentioned as a device
to bring about some sort of French-German agreement, the
possibility of a common French-German defense budget that
-the other Western European governments might join.
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2. Kirk's views on Chou En-lai statement�US Ambassador Kirk
In Moscow, in evaluating the significance of Chinese Foreign
Minister Chou En-lai's statement to the Indian Ambassador
in Peiping that Chinese troops will intervene in North Korea
if UN troops cross the 38th Parallel, expresses surprise -
that a message of such serious nature was not conveyed more
� directly either to the UN or the US. Kirk reports that the
� British Embassy in Moscow concurs with the US Embassy
"speculation" that Chou En�lai's statement may be a last-minute
Chinese attempt to play upon Indian apprehension in order to
retain for China and the USSR whatever can yet be salvaged
from the Korean situation.
3.
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EUROPE
4. AUSTRIA: Communists may shift to ecoriomic.issues
According to US Charge Dowling in Vienna, the most im-
portant factors in the recent strikes and demonstrations
in Vienna and eastern Austria were: (a) the overtness of
Soviet instigation and assistance; and (b) the ineffectiveness
of the Austrian police. Dowling reports that Austrian Govern-
ment leaders are now thoroughly alarmed by the situation and
� determined to prevent a recurrence of the outbreaks. Dowling
thinks the Austrian Communist Party may have decided to con-
centrated on economic issues; he suggests that the USSR may
have decided that it can, with impunity, openly aid the Austrian
Communist Party in exploiting economic issues, despite the
obvious violation of the Allied Control Agreement. Dowling
expresses the view that, if the USSR has decided upon such a�
course, "grave difficulties" can be created by imposing a
severe strain on the Austrian Government and economy.
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3 OCT 1950
1 4 ng
GENERAL
1. Possible Chinese Communist intervention in Korea--US
E mbassy London transmits a report from the UK Foreign
Office that Chinese Communist Foreign Minister Chou En-
lai called in Indian Ambassador Panikkar in Peiping on
3 October and informed him that if UN armed forces crossed
the 38th Parallel, China would send troops across the frontier
to participate in the defense of North Korea. Chou En-lai re-
portedly added that this action would not be taken if only South
Korean forces crossed the Parallel.
(CIA Comment: The Chinese Communists have long
had the capability for military intervention in Korea on a
scale sufficient to materially affect the course of events in -
Korea, and they now are supporting Soviet effortsjo intimi-
date and divide the US and its UN allies over the issue of
crossing the 38th Parallel. CIA estimates, however, that the
Chinese Communists would not consider it in their interests
to intervene openly in Korea if, as now seems likely, they
anticipate that war with the UN nations would result.
I. The "reliability and accuracy" of the source of this
report are open to question. It is also entirely possible that
he is being used by the Chinese Communists to plant this
information in an effort to influence US and UK policy.)
EUROPE
g. GERMANY: Schumacher's views on defense role--US High
Commissioner McCloy in Bonn has been informed by West
German Socialist leader Schumacher that he believes the
Germans would consider sharing in the defense of their
country only after being firmly convinced by a sizeable in-
crease in US forces in Germany that there is a real chance
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to defend West Germany "as far east as possible." (The
cooperation of the Socialist Party will be essential to West
German participation in any West European defense system.)
Schumacher visualizes German participation in the form of
�a mobile force for which he thinks the Germans are traditionally
and psychologically best equipped. In regard to the projected�
West German police force, Schumacher felt it was of the "utmost
importance" for the police to be strictly separated from the
military. After a discussion of the police proposal with McCloy,
� Schumacher expressed the opinion that the police plan was "work-
able."
3. YUGOSLAVIA: Tito-Kremlth relations unchanged--US Ambas-
sador Allen in Belgrade reports that although there are in-
dications the USSR is adopting a "milder tone" in various
countries, he has seen no evidence of any shift in the Soviet
attitude toward Tito. The Ambassador doubts that the rumored
"secret meetings" between Yugoslav and Soviet representatives
have taken place. Allen concludes that although Marxists both
in and out of the Cominform might like to be reunited, he does
not believe Tito or any responsible member of his regime would
either take the initiative toward a rapprochement or listen to
any overtures from Moscow with anything but the greatest of
skepticism..
(CIA Comment: CIA concurs with Ambassador Allen's
estimate.)
NEAR EAST-AFRICA
4 Afghans penetrate Pakistani territory�US Embassy Karachi
has been told by the Pakistani Foreign Secretary that 500
Afghan tribesmen and army regulars penetrated Pakistani
territory near Domandai, Baluchistan, during the night of
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30 September4 October. The Embassy reports that the
Pakistani military commander in that area has orders to�
expel the invaders but not to pursue 'them across the Afghan
border, and that Pakistani air reconnaissance is on the
lookout for other troop concentrations or movements.
(CIA Comment: This incident is indicative of the
strained relations existing between Afghanistan and Paki-
stan, largely as a result of Afghan provocation. Pakistan
should have little difficulty in expelling the invaders and no
serious trouble is likely to arise from this incident.)
FAR EAST
5. INDOCHINA: International force proposed for Indochina-- C fif
The Commanding General of French forces in North Vietnam, ' �
General Alessandri, has informed US Consulate Hanoi of his
personal hope that a UN international force, such as that in
Korea, may be made available for use against the Viet Minh
� in Indochina. Alpssandri admitted that Korea was "politically
different," but said that Chinese Communist assistance to the
Viet Minh paralleled the Korean situation. He added that ten
additional battalions in North Vietnam would allow him to
"thumb his nose" at the Viet Minh but that, without these addi-
� tional troops, he must keep his own main force in the delta
area and risk the possibility that the increasingly strong in-
surgents may "spill across the Red River" into the region of
Annam and the associated state of Laos.
6. INDONESIA: Government attacks Ambon insurgents--The US
. representative on the UN Commissibn-for Indonesia (UNCI)
� reports that information from Dutch sources indicates an
� abandonment of Indonesian efforts to achieve a peaceful
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solution to the Ambon uprising. Indonesian troops reportedly
attacked Ambon on 29 September and landed additional forces
on 1 and 2 October, Although Indonesian Government officials
have not confirmed the attack, Foreign Minister Rum has told
US Ambassador Cochran that military action against Ambon
had been recommended. Rum, in an effort to explain his govern-
ment's rejection of UNCI good offices in settlement of the in-
surrection, expressed the opinion that involvement of a United
Nations group in the dispute would "encourage" the "rebellious
parties" and "could even do unpredictable harm."
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GENERAL
2 OCT
1408
I. Nationalists concerned over US Taiwan glans�US Embassy
Taipei reports that the Chinese Nationalist Foreign Minister
and other high officials are concerned over US aims regard-
ing Taiwan. According to the Embassy, the Chinese--both
Nationalist and Communist--are evidently convinced that the
US has already formulated a long-range plan for Taiwan,
perhaps in conjunction with the UK. As a result, the current
US attitude on the Taiwan issue is regarded by the Nationalists
as "something less than frank." In summarizing his govern-
ment's attitude, the Nationalist Foreign Minister informed the
Embassy that he would very much like to go along with the US
in UN neetiations, but that he must "first know where the US
is going .
EUROPE
2. UNITED KINGDOM: Analysis of political trends--US Embassy
London, in an analysis of recent political developments, ex-
presses doubt that "the Government will decisift to hold an
election this fall" and believes that at the Labor Party con-
ference beginning 2 October the party, under. Attlee's firm hand,
will present a united front. The Embassy -further believes that
unless the international situation deteriorates, intense warfare
between the Labor and Conservative parties will continue un-
'abated, although neither side will inject major foreign policy
or defense issues into the picture and the basic unity of the
' British on fundamental international issues will not be disturbed.
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FAR EAST
3. KOREA: Report on conditions in Seoul-11S Ambassador
.Nluccio reports his return to Seoul and indicates that
Virtually all members of the Korean Cabinet headed by
President Rhee are in the city and plan to remain. Mucci�
says that loss of life and property damage in Seoul and the
surrounding area are "terrible and beyond description."
Seoul is without water, electricity, and means of communi-
cation; food is short and the health hazard is great. He
comments that the population is "in dire straits as a result
of the harsh experiences of the past three months but is
remarkably cheerful in the face of tremendous losses."
He concludes that the rehabilitation work has already be-
gun and that steps are being taken to bury the dead, demolish
the roadblocks, and clear the streets.
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