DAILY SUMMARY - 1946/03/29

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 03164633
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 C03164633
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GENERAL
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UK views on soviet moves relarding Iran�Embassy London has re-
ceivoa the following comments and information from British Foreign
Off Ice officials:
Recent Soviet announcements of troop withdrawals from Born.-
holm4 Iran and Manchuria and Stalin's statement on the importance
of the UNO in preserving peace are considered as indications that
(a) blunt statements by the UK and US had �registered". in. Moscow
(b) the USSR was admitting the failure of tactics followed dur-
in.g the past months These announcements, however, are probably
Lathing more than a momentary change of tactics and. lack long-
range implications
According to the British Embassy in Moscow, Stalin's reply
to Churchill had "deeply stirred" the Soviet public and the people
in Moscow, apparently interpreting Stalin's words- to mean that war
was immi nent, had tried to lay in as much food as possible Thi.s
strong popular rection and a desire to create a favorable atmosphere
for maneuvers at the Security. Council may have prompted Stalin. to
make his ..statement regarding the UNO.
By 28 March no new instructions had been given to Cadogan
in connection with the withdrawal of the Soviet delegation from the
Security Council meeting. The Foreign Office (a) believes that the
Soviet delegates .\!ii.11 not return to the Council before 10 April, 00)
hopes that the willtra,lce no decisions in their absence, and
(c) does not belie,,7,7, that the USSR intends or wishes to withdraw from
UNC.)
Ambassador Murray in Tehran comments that the apparent.
total lack of strong British policy in the present crisis has -given the
Traniahf3 the'impression that Britain has given up and is no longer in
in their country. British loss of prestige in Iran has been
treat., As an example, he cites an...attempt by the incarcerated, tra-
ditionally pro -British and rightist deputy; Seyid Zia ed-Din� through an
emissary to seek 'guidance from Murray himself as to what course he
(Seyid ) and rightist circles should now follow.
2 lEtaly's Treaty -Navv--Dunn reports that the composition of the Italian
'.i..reaty Navy and tJe Soviet demand for one-third of the Italian fleet
thil be discussed shortly in the. Council of Foreign Ministers, He
o-c.is:i.ders that scrapping Italiark naval units in excess ot those li.2,1y
441
,'.Document No.
NO CHANGE in Class. 0
CONB g DECLASSIFIED
Class. C'HEHG:D TO: TS S
DDA Menlo, 4 Apr 77
T-44P-gg9ftET Auth: DDA REG. 77/177:3
Ott
Date:t fir By:
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will be permitted to retain under the treaty, however desirable from
the US view, will be bitterly opposed by the Soviets. Since "distribu-
tion" of surplus fleet units will also be supported by the UK, France,
Yugoslavia and Greece, Dunn asks whether the US should not approve
the idea and thus offer the Soviets "a distinct inducement to get on
with the treaty." Dunn, however, proposes to insist that all Italian
submarines be scrapped.
According to Dunn, the Soviets consider that the return of
ships, which were previously transferred to the USSR on loan in lieu
of allocations from the Italian fleet, is related to the future distribu-
tion of the Italian fleet. The terms of the loan, he feels, provide the
Soviets with "some case in the disposition of the Italian fleet," des-
pite the phrase: "for use during hostilities."
3. Administration of Trieste�The State Department has given Dunn its
views on the proposed international regime for Trieste:(a) Trieste and
its environs should be "politically Italian;" (b) facilities of the free
port should be administered by Italy, in accordance with an inter-
national agreement and subject to review by a commission represent-
ing Italy, Yugoslavia, Czechoslovakia, Austria and Hungary; and (c)
issues that the commission fails to adjust should be referred to the
UNO.
A Soviet representative in the Council of Foreign Ministers
has indicated that the USSR would favor a larger degree of international
control over Trieste if it remains Italian, than if it is ceded to Yugo-
slavia.
�
4, Soviet interest in Micronesia--The Naval Attache in Moscow reports
that active Soviet interest in the final disposition of the Micronesian
Islands is foreshadowed by a recent article in the "Soviet Journal of
World Economics and World Politics." The article emphasized (a)
the strategic importance of Micronesia in the maintenance of a stable
peace, and (b) the danger these islands had presented when in the hands
of aggressive powers such as Germany and Japan. The Naval Attache
comments that this is the first public statement he has seen which
indicates "the plan of propaganda against the US as an aggressive im-
perialist power."
'ECIP-Sriewiker""
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EUROPE-AFRICA
5. AUSTRIA: Remoy9.1 of So21.9s221p.e atdationftnalaaione-On 13 March
General Clark asked that he be authorized to require the Soviet "re-
patriation" mission to. withdraw from the US zone by 1 April, since
(a) it had had ample time to complete its repatriation work, and (b)
Intelligence and espionage in the US zone represented "no small part"
of its activities (see Daily Summary of 14 March, item 2). On the
recommendation of the State Department, the joint Chiefs of Staff
have now granted. Clark the requested authority.
(3. AUSTRIA: UNRRAssmam�General Clark reports that Brigadier
Pa.rminter, Chief of UNRRA, Austria, agrees with him that UNRRA
will have to postpone from 1 April until 1 June the assumption of res-
ponsibility for the distribution of food in Austria. Parininter, however,
is proposing that UNRRA (a) distribute its imports in "deficiency"
areas during April and May, and (b) assume financial responsibility
from 1 April for military imports used to feed each zone, as well as
for imports brought in by UNRRA�
Clark is oAoosed to both propesals: the first, on the ground �
that UNRRA aid would be going into the Soviet zone � a "deficiency"
area -- before the settlement of questions relating to the reduction
of Soviet occupation forces and the use of local land for feeding Soviet
troops; the second, on the ground that UNRRAis limited funds might
better be reserved for future imports, since a poor harvest is to be
expected.
7 CZECHOSLOVAKIA: Pssttponement treaty_witIlimulavia�Foreign
Minister Masaryk has told Ambassador Steinhardt that he and President
Bones had succeeded in postponing the signing of a treaty with Yugo-
slavia. Ma.saryk predicted, however, that within "two or three months"
Czechoslovakia woudd sign an agreement with Yugoslavia similar to
the Polish-Yugoslav pat, but that it would not constitute a tripartite
agreement.
8., SWITZERLAND: USSR and France mattiate for Oerlikoassoducstails�
sa
Legation Bern has transmitted a report from crTaliable" informant
that both the USSR aid France have begun negotiations with the Oer-
likon Company (on the Allied Proscribed List). The USSR apparently
wants 3,000 cannon and all undelivered gun equipment ordered by
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Germany, under a contract in which Rumania and Bulgaria are to
appear as purchasers. France is reported to be interested in buying
a substantial quantity of machine tools.
FAR EAST
9. CHINA: Sino-Soviet economic ne otiations to be resumed--The Chinese
Foreign Minister has advised Embassy Chungking that Sino-Soviet
economic negotiations, which were broken off in early February, are
to be resumed but that no agreement will be concluded until Soviet
forces have completely evacuated Manchuria. The Chinase Government
does not intend to conclude any economic agreement with the USSR
that will preclude it from making similar agreements with other countries.
10. N.E.I.: NeEllations to shift to The_LIAgue--Embassy The Hague re-
ports that progress in the current Dutch-Indonesian negotiations has
been such that the principal negotiators are Scheduled to proceed to
The Hague within a fortnight. Sjahrir, however, will not accompany
the group because his presence in Java is considered essential in sta-
bilizing the internal political situation.
THE AMERICAS
11. BRAZIL: Sale of arms to Dominican Republic probable--On 26 March,
the Secretary General of the Brazilian Foreign Office again stressed
to the US Charge the "unimportance" of the proposed sale of arms by
Brazil to the Dominican Republic, and indicated that his Government
feels obligated to go through with the transaction (see Daily Summary
of 22 March, item 5).
A day later, the State Department instructed the Charge to
emphasize to the Brazilian Government that the US considers the pro-
posed sale to be "fraught with grave possibilities." He is to point
out that arms to be supplied (equivalent to two rifles for each soldier
and three cartridges for each citizen of the Republic) are not required
for hemisphere defense and could only be used against either Haiti or
the Dominican people.
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'E.112...SE.GRET
12. ARGENTINA: 1,LSLeagDomic..ppjky_bee,,v1sed--The State Depart-
ment is discussing plans to revise, with as little attendant publicity
as possible, its economic policy towards Argentina. The contemplated
changes in policy include the following: (a) special controls or res-
trictions on transactions with Argentina (except where these may be
used for bargaining purposes) are to be immediately removed; (b)
Argentina is to be dropped from the Group "E" list at the earliest
possible date; (c) there will be a gradual abandonment of the present
embargo on delivery of aircraft to Argentina, but stringent controls
will be retained on all military planes; (d) in order to increase Argen-
tina's contributions of cereals and fats, US surplus equipment and other
supplies are to be made available to it on an equitable 'basis with other
American Republics.
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