DAILY SUMMARY - 1946/06/05

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02578610
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2578610
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2578610
Approved for Release: 2018/09/05 CO2578610
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
CRE
DENIM! 4
GENERAL
5 Jun IJ46
94
1. Anglo-Yugoslav financial negotiations--The British Treasury has
advised Harriman that the T.M and Titoslavia are about to sign agree-
ments relating to monetary exchange (200 dinars to the pound), property
and war debts. The only question outstanding concerns 'certain assur-
ances" desired by the British regarding treatment of foreign property
in Yugoslavia_
The State Department has recently instructed US Embassy Bel-
grade to attempt again to obtain a diplomatic rate of exchange more
favorable than the current "unrealistic" 50 dinars to the dollar.
EUROPE -AFRICA
2. USSR: Smith urges broadcasts to combat anti-USpropKanda--Ambassa-
dor Smith reports that "vie have no means of combatting ' the anti-US
propaganda which has "been pushed very hard" in the Moscow press
since the Paris Conference. Smith is very disturbed over "the headway"
made by such propaganda and recommends a nightly broadcast to the
USSR as the only effective way to refute false allegations as they arise.
UNRRA renort pa B laida--The UNRRA Mission to Belo-
russia, in its first report, notes tilat (a) German wartime confiscation
of horses and tractors is seriously hampering food production; (b) the
area is completely dependent on UNRRA for fats and oils; (c) destruc-
tion of housing is estimated at more than 80 percent and construction
materials are desperately needed; and (d) both officials and the general
public are "completely aware" of UNRRA assistance.
3. HUNGARY: Leftist concessions--According to Minister Schoenfeld,
leftist concessions, following the ultimatum of Premier Nagy's Small-
holders Party (see Daily Summary of 3 June, item 7), are sufficient to
permit further negotiations and prevent Nagy's threatened resignation.
The Leftists have agreed (a) to hold municipal and county elections in
the fall, and (b) to discuss a government reorganization which would
give the Smallholders a "proper proportion of positions."
Nagy invited to US--The State Department has invited Premier
Nagy to visit the US between 11 and 18 June. Harriman reports that
the UK is also agreeable to receiving Nagy, but has not yet specified
a date for the visit.
�L,(41).-nent No. 12.
NO CHANGE in Class. [1]
-0 DECLASSIFIED
Class, CHANCED TO: TS s
ALlutra� DDDD:AA... _ rM , 4 Apr 77
G' . 77 1763
Approved for Release: 2018/09/05 CO2578610 1
Approved for Release: 2018/09/05 CO2578610
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
3.3(h)(2)
41ktiss,
4, RUMANIA: Reply to US-UK protests--The Rumanian Government
has given the following reply to the recent US and UK protests
against its failure to implement pledges of political freedom and
early elections: (a) Rumania has taken "all measures" to ensure
the exercise of the public liberties guaranteed by the Moscow
decisions, (b) preparations for elections are under way, and (c) the
impression that the Rumanian Government is attempting to evade
its obligations is the result of "a certain propaganda' which aims
to misrepresent the Rumanian Government and 'to ignore realities
In our country."
Attempts to compromise US missions�The US political
representative in Bucharest reports that (a) several "independent
sources" have hinted that the recent arrests of Rumanians employed
by the US were designed
to secure evidence involving the local US missions with "Rumanian
reactionaries planning subversive activities," and (b) according to
an informed Rumanian source, documents "which would prove American
culpability" have been stolen from the US military mission, photo-
stated, and then returned.
5. RUMANIA: Icing explains Groza award�King Michael has explained
to the US political representative in Bucharest that his recent award
of the second highest Rumanian civil decoration to Premier Groza
was made only after (a) prolonged and intense Soviet pressure, and
(b) threats by Rumanian cabinet ministers that, if he failed to make
the award, political violence would increase throughout the country,
probably culminating in the elimination of the opposition parties and
arrest of their leaders.
CZECHOSLOVATJA: Country is calm after elections--Ambassador
Steinhardt, reporting on the results of the recent elections, comments
that (a) the Communists "seem sobered by their responsibility' and
are not minimizing the extent of the anti-Communist vote; and (b) the
moderates have accepted the vote "r,hilosophically" and are consoled
by the Communists' "responsibility for meeting the serious economic
problems expected before the next election in 1948.
2
Approved for Release: 2018/09/05 CO2578610
Approved for Release: 2018/09/05 CO2578610
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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7. YEMEN: Implementationtta of trade treatv US-The US represents.-
tive at Sena repo the rnmemen (a) has offered to
sell the -US 3,000 tons of grain (sorghum), with the prospect of "larger
=omits" in the future, and (b) has left no doubt that it wishes to imple-
ment as fully as possible its trade agreement with the US.
8. MAN: Anti-"Democrat" activities in Azerbaijan�US Consul Tabriz
reports that, according to a previously reliable source,' the lcurds
in Azerbaijan have (a) instigated students to agitate against the "Demo-
crats" in Azerbaijan and (b) declared that they would rather be a
minority under the central franian Government than under a Soviet-
supported Azerbaijan regirae.
TILE AMERICAS
9. ARGENTINA: Rumored conflict between US War and State ; 4 *14 eats�
Ambassador Messers s coma .t van
Becke's visit to the US, that high Argentine officials have received
"Improper and unfounded information" that a "strong divergence of
opinion and actual conflict" in policy exists between the US War and
State Departments. Messersmith believes that if such an opinion gains
credence tn the Argentine Goverment it will destroy any US hope for
"real performance and collaboration" from Argentina.
Soviet offer of trucks rsoorted�Messersmith has been unable
to obtain confirmation of a rumor tfiai the USSR has offered to sell
10,000 fracas and 10,000 tractors to Argentina. Ile believes that, while
all types of equipment probably are being offered, Argentine attic/els
have no Illusions as to Soviet ability to make early deliveries.
cowl,
CRET
Approved for Release: 2018/09/05 CO2578610