(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005800040077-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 20, 2016
• Document Release Date: July 17, 2006
• Sequence Number: 77
• Publication Date: December 31, 1946
• Content Type: SUMMARY

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ARMY review(s) completed.
State Dept. review completed
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 S 1 DEC 1946
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GENERAL
British intervention in Indochina
London reports that Bevin has rejected the Chinese proposal for Stma-
1. UK rejects Chinese~rosal for intervention in indochtna--US Embassy
2. Chinese fear Dairen incident strengthens Soviet position--US Embassy
Nanki ngreports that the Chinese Foreign Off tee has informally taken
exception to the State Department's announcement that Soviet authorities
were within their rights in refusing recently to permit private US citi-
zens to land at Dairen. The Foreign Office considers that the Soviets
are not acting within their rights in refusing permission for Chinese
occupation of the city. It fears the US statement may strengthen the
Soviet position.
4. Bern fnte r? tation of ch o~?3et attitude is o N- According to US
Charge Brussels, Foreign Minister Spaak attributes the "improved
atmosphere" in the General Assembly to a specific Soviet policy decision
reached between the Parts and New York Council of Foreign Ministers
meetings, Spaak believes the decision was dictated by: (a) the drag on
Soviet industrial recovery of present military forces abroad and at home;
(b) possible unanticipated difficulties in atomic research; (c) the realiza-
tion that Soviet obstructionist tactics at Paris had proved ineffective, had
Document No. 6O_
ARMY & DOS review(s) completed. NO CHANGE in Class. CJ
r-i nV0T.ACCTVTV7)
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DDA Memo, 4 Apr 77
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' DENTIAC'
placed the USSR in a slightly ridiculous light, and had hampered its
propaganda; and {d) a realization that only by more elastic tactics could
the USSR hope to achieve anything through the UN.
5. Us urges nddudication of UK-Albanian case--The State Department has
gested to the US Delegation In New_rk that it suggest to Cadogan
that the UK-Albanian case might be handled by the International Court
of justice. The State Department understands that the British favor a
political rather than legal solution of this case.
EUROPE
6. YUGCLAViA: Espionage trial to be used to discredit US officials>-
A Yugoslav defense lawyer has informed U Charge Hickok that trial
of rso accused of aiding members of the US Embassy Belgrade in
"unfriendly work and espionage against the Tito r me' will open on
31 Dotnber Hickok be-
lieves the trig o an effort to Intimidate the Embassy staff, to terror-
ize the Yugoslav people, and to limit Embassy contacts to representatives
of the Tito Government.
7. ITALY: Deliberate anti-Allied a ration--The Supreme Allied Commander
Mediterranean reports that anti-Allied 4agitators" were active during
the recent demonstrations In Padua. He adds that a large section of the
Italian press, particularly Communist and Socialist papers, is directing
an inflammatory campaign mainly against the British. SACMED expects
Increasing attempts to foment public demonstrations against Allied forces.
8. GERMANY: l tr'eni to be raolac ACC--US Ambassador Caffery in
Paris has been informed that General Koe will soon be replaced as
the French member of the Allied Control Council reportedly because of
his failure to obtain clearance from Paris before making "numerous
declarattons." Cs fiery adds that Admiral Baijot (Assistant Chief of Staff
of National Defense) is apparently receiving "most serious consideration"
as successor to Koenig.
9. HUNGARY: Mass arrests of non-Commu fists--Thhe Smallholder Minister
of Information, Bognar, has told US Minister Schoenfeld that the 300 persons
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recently arrested by the Communist-controlled political police include
the "leading figures of all Hungarian non-Communist anti-German war-
time resistance movements." Bognar admitted "the possibility" of an
attempt to implicate the 'US and UK in a subversive plot, but said that
the Smallholders regard the arrests as related primarily to the domestic
situation and as Communist preparation for seizure of power by elimin-
ating potential centers of resistance. Bognar added that the Smallholders
are postponing any action until the "degree of Soviet implication" in the
arrests is determined.
10. FRANCE: Position of the Communist Party--According to US Ambassador
Caffery, qualified observers consider that, because the Communist Party
has nothing to gain from participating in a bourgeois Government which
will have to carry out highly unpopular measures, a majority of French
Communist Party leaders now favor swinging vigorously to the left and.
passing into opposition to the next Government. Soviet diplomatic inter-
ests, however, demand that the Communists continue their strategy of
gaining as many high offices and as much influence within the Government
as possible. Caffery doubts that any party or group in France can ex-
ploit the "widening contradiction" between French Communist and Mos-
covw interests.
Blum not 'o be ntesident al candidate--Leon Blum. has informed
Caffery that'4under no circumstances 'will he be a candidate at the forth-
coming elections either for the Presidency of the Republic or of the
Council of Ministers (Cabinet). Caffery, however, "is not convinced"
that Blum would decline the former post.
FAR EAST
IL INDOCHINA: New Vietnam Government may be estabU$h i--US Consul
General Saigon reports that the eventual solution of the present Franco-
Vietnam difficulty may be found in a new Vietnam Government to be
formed under either the former Annansite Emperor Bao Dal or the pro-
Chinese former Vietnam Foreign Minister,.. Nguyen Tuong Tam. The
latter is now reportedly forming a refugee Vietnam Government at Nan-
king. French authorities could deal with a new government without losing
face and could then more successfully insist upon the independence of
Cochin-China.
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A.2. CHINA: Anti-US demonstrations--US Consul General Peiping believes
hat current anti-US demonstrations and public feeling are to be taken
seriousty, and reflect discontent both with US policy and with the National
government.
THE AMERICAS
13. BOLIVIA: Ar tin rasa s Bolivia for minerals--US Ambassador
Bowers reports from Santiago that Bolivia s Ambassador to Chile states
that (a) Bolivia will receive no Argentine food supplies during 1947 un-
less it sells Argentina tin, lead, and antimony; (b) Argentina is offering
to buy these minerals at prices above those paid by other countries and
to install foundries to process them, and (c) shipments of necessities
from the US might reduce Argentine pressure on Bolivia. Ambassador
Bowers` informant predicts that unless the US makes a new contract
for Bolivian tin, meeting Argentina's price offer, a collapse of mining
production in Bolivia Is inevitable."
14. PERU: Argentina offers Peru food and credit--Haya de la Torre, leader
of Pert s poweiful APRA Party, has told Embassy Lima that (a) Argen-
? ina has offered Peru large credits and food In return for a trade agree-
ment. similar to the recent Argentine-Chilean agreement; (b) he believes
Peron's plans for a southern economic bloc could and should be countered
by a Peruvian-sponsored plan for increased trade among the countries
of South America, In the Embassy's opinion, Maya is attempting to force
she 11S to aid Peru financially without a prior settlement with Peru s US
creditors. The Embassy advises against "any loans to Peru until the
debt is settled."
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