INTERNATIONAL ORGANIZATIONS GROUP WEEKLY SUMMARY NO. 32 FOR WEEK ENDING 9 AUGUST 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A004900010048-5
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: August 27, 2013
• Sequence Number: 48
• Publication Date: August 9, 1949
• Content Type: REPORT

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INTERNATIOVAL ORGANIZATIOrS-GRWP
OFFICE OF Rr_QORTS AND ':;STI!:;-Tt
CENTRAL INTI.LIGVCE AGNCY
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.011114g7
weiCING PAPY,R
NOTICE: This document Is a working paper4',n:
an official CIA issUance, It his -been co,-Ordlp
ted within ORES but not with the IAC Ageneifee
It represents current thinking by SpeCtaliSt**
CIA., and is designed for use by others prigaP;041'
in similar or overlapping studies. The eptutons;
lex,pressed herein nay be revised before final
official publ io at ion It is intended
the information of the addressee and n
ther dissemination 9
Document No.
NO CHANGE 14 a
feDECLASSITIED
Class. CHANGED TO,
DDA Memo, 4
Copy for:
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INTERNATIONAL ORGANIZATIONS GROUP
TEEKLY 3131:12r.ARY NO. 32
For week ending 9 August 1949
The international Week
Volume II
The Council of Europe, meeting in its inaugural session at
3trasbourg, elected Greece, Turkey and Iceland to membership.
The UK request for C!400 million dollars additional ECA aid this
year and a prospective ten percent Congressional cut in overall
ECA funds have raised a chorus of protests from continental
countries facing a consequent substantial reduction in aid. The
SC will probably' lift the Palestine ems embargo as a sequel to
its present consideration of radiator Bunches report.
A Concern over cuts in ECA aid. Faced with a likely cut of
,10 peRZWE-77-This year s ECA appropriations and with the UK
request for an additionel './4.00 million aid allocation, the conti-
nental rarshall Plan countries are gravely concerned over the
prospect of substantial reduction in their 1949-50 ECA aid.
Austria, Italy and the Netherlands have already protested that
prospective cuts may well undermine their ability to achieve
their ERP targets by 1952 and other countries are expected to
follow suit. Under t'ese circumstances, the division of this
year's aid, the most imlortant issue now before the ()EEC, will
place a severe strain on that organization. Each country, in
seeking to secure for itself the largest possible share of ECA
assistance, will be prcne to attack sharply the requirements of
other recipients, and the UK, in particular, is certain to come
under heavy fire0 a cut in ECA aid will require modification
of many recovery program items, it will also orove a beneficial
influence in forcine: the ERP countries to take a riore realiotic
view of their dollar nroblem. In particular it may lee to:
(1) still greater emphasis on meeting import needs from non-dollar
sources; (2) renewed efforts toward integration of the various
commodity programs to eliminate duplication and uneconomic pro-
duction; (3) increased pressure on high cost producers to achieve
more competitive prices and thus stimulate exports; and (4)
further steps to expand intrc-European trade.
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7:777-'17
A ECOSOC discussion of Point Fotr, UN Economic and Social
Council discussion of the proposed technical assistance program
has revealed disappoi.tment on the part of underdevelooed countries
and hostility on the part of the USSR. Most economically retarded
nations urged that the financial rather than the technical assist-
ance aspects of the program be given greater attention. Lebanon
and India expressed disappoiatment at the small scale of the US-
proposed program and joined Latin American members in stressing
the great need for foreign capital. A Brazilian statement that
capital should be supplied primarily by governmental loans and
credits, rather than through private investment channels as
favored by the US, undoubtedly reflects a viewpoint which will be
echoed more frequently by other underdeveloped countries as the
program develops.
The USSR, placed in the unfavorable position of opposing a
plan with an inherently wide appeal, attempted to draw a sharp
distinction between any UN economic development plan and the US
Point Four program. Thus, while paying lip service to the concept
of assistance to underdeveloped countries, the Soviet delegate
bitterly attacked Point Four as but another method of capite2tst
exploitation designed to alleviate the US recession and to wrest
control of dependent areas from the old and now enfeebled powers.
A second tactic utilized by the USSR was delay and obstructionism.
The c;oviet delegate oroposed that the UN program be referred to
the ECOSOC regional commissions for consideration and that overall
control be loose and decentralized. The Soviet Union, recognizing
the potential danger to world Communism represented by Point Four
but also the unfavorable effect of an open attack on such a pop-
ular program, is thus moving cautiously to subvert it by sowing
suspicion of US motives and by seeking to forestall the develop-
ment of centralized administrative machinery capable of producing
concrete results.
Aar 0 ow
Soviet tactics in the Palestine case. '1.hile recently playing
a rel ?atrr-ZynotFtrgri5?iro-rri-T.n the Palestine ease, the USSR has
consistently exploited every opportunity to add to confusion and
unrest in the Holy Land. There are multiplyins irdications that
a deal is in the offing whereby Israel will transfer title to the
Orthodox Russian. Church properties in Palestine to the USSR in
return for Soviet support for Israel's claim to New Jerusalem.
The church properties would give the Kremlin an additional foot-
hold in Palestine for espionage and propaganda. Furthermore, the
USSR would be only teo glad to block achievement of the Vatican's
desire for an internationalized Jerusalem. While France and some
Latin American countries are the special champions of an inter-
nationalized. Jerusalem, neither the UK nor the Arab states feel
-2.
MUrfitt
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naktee.
too strongly about the issue, Under such conditions, Slav bloc
opposition to a general internationalization of Jerusalem might
prove decisive in the GA.
Meanwhile, Soviet SC delegate Tsarapkin, in seeking to broad-
en the French-Canadian proposal to lift the Palestine arms embargo,
net only urged withdrawal of all UN observers from the area but
favored abolition of the Palestine Conciliation Commission, well
aware that it is US-dominated. Adoption of these proposals would
virtually withdraw the UN from Palestine, clearing the way for
direct Arab-Israeli talks. This would suit Tel Aviv to a tee by
permitting Israel to bring, without outside interference, its
present military superiority over the Arabs to bear on the negoti-
ations. These Soviet moves indicate that the Kremlin still sees
in Israel a disruptive force in the Middle East which it can use
in creating that confusion on which Communism thrives.
? 0 ?
French and British aims in Palestine refugee aid. Both
France -61=17137: may seek to =a ?the Pa3stine refugee
,resettlement program to expand their influence in the Near East.
The French have already manifested a desire to assume financial
and administrative responsibility for resettling Arab refugees
in the Syrian Jezirah as an entering wedge for reestablishing their
former sphere of influence in Syria and Lebanon Subsequently the
British Foreign Office suggested that it favors a dual function
for its candidate for deputy on the PCC refugee survey group,
Sir Desmond Morton, whereby he would, while serving the FCC,
retain his Foreign Office status and supervise the UK-financed
Jordan projects. The US, to forestall such use of the refugee
program, prefers entrusting its execution solely to UN organs,
-regardless of the source of the contributions. Syria, suspicious
of French intentions, shares the US view that unilateral French
administration of the program in Syria would be undesirable.
? 0 ?
Hawaiian strike isolates westcoast longshoremen and ma lead
to PadTFITTil'in marleLlat2smaization. The threat of arry
Bridges' Longshoremen's and :arehousemen's Union (ILeli) to retali-
ate against Hawaiian anti-strike legislation by blocking the move-
ment of government-worked ships to the US west coast has sharpened
the conflict between the Ile1U and its parent organization, the CIO,
Their differences, hingeing chiefly on international policy,
particularly on the Ile!TJ's determination to stay in the WTTU, will
probably end in the expulsion of the powerful westcoast union from
the CIO this fall. Expelling the ILWU would remove a major chal-
lenge to CIO's international leadership and check the inclination
of other US leftwing unions to join WFTU industrial departments.
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Bridges' usefulness to the Soviet-ied 7)7TU, however, would
not cease with his anticipated deportation and the expulsion of
the ILWU but would merely be transferred to other sectors. As
president of the 73'TU International Union of Longshoremen and
?eritime Workers, he would probably take a more active hand in
Far Eastern labor matters and would be able to call the confer-
ence of Pacific Basin trade unions demanded by his Hawaiian workers
at the last IL:U convention. He would eleo be in a position to
assume personal direction of any maritime strikes which the
Marseilles-based 'UPTU Longshoremen's International mieht organize
in the red5Aereanean area.
"Peace artisans" will em by new strattay_aLy.exic2_21a
Peace Conpress. The American voneriigiffET-U6ngress for World Peace,
scheduled for 5-10 September in I:exico City, will afford the
Communist-sponsored "Partisans of Peace" movement another oppor-
tunity for a "popular" demonstration against US "imperialism" and,
more specifically, ?the Atlantic Pact and Military Aid Programe
Unlike the New York and Paris "peace congresses, " however, it will
net be attended by delegations from outside the :,mericas whose
presence might prejudice the success of the mee',inge Since the
earlier congresses, the movement's Permanent Committee in Paris
has apparently revised its strategy. Latin emerican Communists
participating in the Paris Peace Congress reportedly reached
secret agreement that the :fixico City meeting should be confined
to delegations from the -;estern hemisphere. Their decision, con-
firmed by recently published lists of prominent US and Latin
American "sponsors," suggests that the Communist organizers of
the movement have decided, at least for the present, to soft-pedal
international coordination of the neace congresses and to stress
instead the improvement of relations with the USSR and tho strength-
ening of local Communist front orgenizations.
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