DAILY SUMMARY - 1946/09/25

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02036425
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2036425
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Approved for Release: 2018/09/05 CO2036425
..Approved for Release: 2018/09/05 CO2036425
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
25 SEP 1946
NO CHANGE In Class. Utafillia
0. DECLASSIFIED OP 187
Class. CHANGED TO: TS
DDA Memo, 4 Apr 77
Auth4. DDA,REG. 77/1763 , GENERAL
I 4 ey.s
Date: _MUM
1,lleztriLne_niox sei loans to caechoslovakia�Secretary Byrnes
has asked Clayton to adVise the CzechGovenment that, since no agree-
ment has been reached on compensation for US property nationalized in
Czechoslovakia, the Ezim Bank is being requested to discontinue negotia-
tions for the proposed $50,000,000 reconstruction loan to Czechoslovakia,
Secretary Byrnes also opposes a $2,000,000 credit to Czechoslovakia for
commercial airline development unless such a loan will help US compa-
nies to establish regular airline service to Praha.
2. French Na welcomes Mediterranean visite of US Naval units--Caffery
reports� that the riiich Navy 'to have US Naval units in
the Mediterranean but would like to have informal advance notice so as
to be able te "brush off" Communist "squawks.?
Fames to propose '....!gradual" eniazcIpation from Danes--The UK Foreign
TEETEMITTiglin assy on aiEo-Failii-Ne UK Consul in
the Farces the ."teland authorities. will propose to the Danish Govern-
ment that the Faroes "progressively achieve independence" by assuming
immediately such functions as they can presently exercise.
EUROPE
4. ICELAND: Anti-US demonstrations feared--US Minister Dreyfus reports
that on 23 September the Reykjavik Chief of Pollee was taking measures
to control possible anti-US demonstrations. Dreyfus added that all indica-
tions confirm the "potential dangers" and that there are only about 75
police in the entire country, as against over 8,000 members of Communist-
dominated unions in Reykjavik alone.
Anti-COmmunist bloc considered�Dreyfus also reported on 23
SepteraWMINIZZii�seriatives, Social Democrats and Progressives
were secretly conferring ou the possibility of an anti-Commtmist bloc.
The Progressives are expected to demand amendments to the present
base proposals in return for their support. Prime Minister Thors, how-
ever, has stated to US negotiators that only amendments agreeable to the
US would receive his approval. Dreyfus believes that the creation at an
anti-Communist group at the price of minor concessions will be more
Important to the US than "forced' Althing acceptance of the proposals by
a narrow margin.
Approved for Release: 2018/09/05 CO2036425
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APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
Thors disturbed at reert of Clain's statement--Dreyfus fur-
ther reports that Thors sent for the US negotiators late on 24 September
to discuss the radio report that Acting Secretary Clayton had stated that
US troops would be withdrawn from Iceland irrespective of Althing
action. Mors asserted that in view of this report the Opposition would
argue that there is no need for the Milling to accept the US base pro-
posals, and that he might be forced to resign or to accent the Communist
proposal for a referendum. Dreyf4.7.s believes a formula should be found
to "save face" for Thors, who has placed his "political and personal
life in jeopardy" because of his support of the US proposals.
5. RUMANIA: Charae_that elections being. stolen now--Acting US Political
Representative Melbourne reports that the Government's election pre-
parations disregard both the rights of the Opposition and western opinion,
and that the "elections are being stolen now." Melbourne states that
the chief Soviet Censor has asserted that the USSR would help the pre-
sent regime by "absolutely all means to emerge victorious in the coming
elections.
6. FRANCE: pas expects to succeed in changim draft constitutidn�Fran-
cisque Gay,�WP lea er arid vt6e-presiaint offrance, has told Caffery
he believes that both Communists and Socialists, in order to prevent
rejection of the Constitution, will agree to MRP proposals to change the
draft so as to provide for (a) election of the president by secret ballot
and (b) strengthening of the second chamber.
NEAR EAST-AFRICA
7. IRAN: Shale ainst taking strong measures in South--The Shah has
told Us-7Aiiitlaisador Allen thersfrong measures cannot be taken in
southern Iran without a similar stand against Azerbaijan and that Qavam
must either follow a policy of unity of the whole country or see Iran dis-
integrate. Allen comments that the Shah "did not seem greatly dis-
pleased" over developments in southern Iran as they may give him an
opportunity to dispense with Qavam.
US Military Attache rk ehran reports that high Iranian military
authorities think the Iranian Army will do its utmost to quell the revolt.
Neutral opinion doubts that the Army will succeed.
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Approved for Release: 2018/09/05 CO2036425
Approved for Release: 2018/09/05 CO2036425
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
II. TURKEY: Civilianspprehensive on northeast frontier--According to
US Military Attache nkara, Turkish Third Army withdrawal from the
northeast frontier, which is probably part of the planned large-scale
maneuvers (see Daily Summary of 20 September, item 11), is causing
the civilian population to evacuate border towns. The evacuation also
has been attributed in part to activities of Soviet agents.
US Naval Attache Ankara reports that the Turkish Navy has
Issued orders for the laying of a boom at Kayak on the Bosporus to be
completed in three weeks. Much feverish activity is apparent in defense
preparations in and around the Black Sea entrance.
FAR EAST
9. CHINA: New NationaliAsp.jgn in Manchuria believed un_11.....kelzr-
The Commanding General First Marine Division reports that it now
appears there will be no further large-scale military operations in Man-
churia this year, and that possibly one or two Nationalist armies will
be withdrawn.
Exim Bank declines to consider Chinese credit_Eggleit_s--The
State Department has Informed General Marshall that the Exim Bank
recently refused to consider China's applications for railroad-construc-
tion credits in view of "present conditions in China."
10. FRENCH INDOCHINA: Mili conceitarm itiowmrted near border--
US Military and Naval Attaches at Bangkok report that both French and
Siamese forces are being concentrated in the Indochina-Siam border
areas. Both Attaches, however, doubt the probability of an imminent
attack.
THE AMERICAS
11. PANAMA: US views on termination clause of base amejl_ient--The
State Department has i tefli& Embassy Panama to inform the
Panamanian Foreign Office in writing that the instrument signed aboard
the USS Missouri on 2 September 1945 was not a definitive treaty of
peace and that continued US occupation of bases in Panama does not
in our view violate the Defense Sites Agreement.
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Approved for Release: 2018/09/05 CO2036425
Approved for Release: 2018/09/05 CO2036425
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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12. EL SALVADOR: State of sie e dclared--US Ambassador Simmons
reports that the Pres dent of Salvador has declared a state of siege as
a result of a general strike movement that yesterday extended to the
country's railways and threatened to become nation-wide. The weak-
ness of the Castaneda Government, he adds, is increasi ly apparent.
1.3. ARGENTINA: Messersmith compents wheitri,VILegst--Messer-
smith, in view ;Tnt�i . inadequate wheat surplus, urges that the
US undertake (a) joint action with Argentina to meet the pressing imme-
diate wheat requirements of Brazil, Uruguay, Bolivia and Peru, and
(b) prompt but unpublicised wheat sldpments to Brazil. Announcement
by the US of intention to meet minimum requirements of Argentina's
neighbors would, he believes, accomplish nothing.
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Approved for Release: 2018/09/05 CO2036425