(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A006000020040-6
• Release Decision: RIFPUB
• Original Classification: T
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: December 11, 2000
• Sequence Number: 40
• Publication Date: February 14, 1949
• Content Type: SUMMARY

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State Dept. declassification & release instructions on file
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State Dept. declassification & releasestructions on file
GENERAL
1. Re orted shift in Dutch.policon Indonesia--The Netherlands
6re*11_X We or med US saor Baruch that as
a result of the resignation of the Minister for Overseas Terri-
tories, Dutch policy toward Indonesia will probably develop
along the 1i+nes laid down by the Security Council resolution,
particularly with respect to both liberation of Republican offi-
cials and participation by the UN Commission in the negotia-
tions for the establishment of a, federal Indonesian govern-
ment. Dutch Foreign Minister Sttkker subsequently told
B ruch that be will accept the resignation of the Dutch High
Commissioner for Indonesia If the Commissioner refuses
to release the captured Republican leaders. According to
Baruch, Stlkker believes that if his ideas prevail and Republi-
can demands "do not prove too drastic and unreasonable,
the Netherlands can transfer sovereignty to a federal Indo-
nesian government by I Idly.
2. KS Plan for Berlin currency---The Department of State has
informed US US End ss on that unless the USSR accepts
a satisfactory solution of the Berlin currency problem before
10 March, the US and the UK will have to Introduce the west-
ern mark in Berlin by that date, regardless of whether the
French participate. The Department is requesting that Gen-
eral Clay, in concert with the UK Military Governor, Inform
the French Military Governor of this plan.
EUROPE
3. GREECE: US a lidMoses Greek Arm increase--The
Department of 8 has instructed US Athha s a Grady
to inform the Greek Government of the Department's opinion
that any increase in the Greek Army, such as that recently
proposed by Commander -in -Chief Papagos, would: (a) be
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unwarranted militarily; (b) impose an h erable burden
on the Greek economy; and (c) involve expenditures of
money and materiel by the US which would be incoratible
with a balanced program of itign military aid. Grady
is also to declare that a depforable impression has been
created both by reports Mat the Greek Government is call -
ing up conscripts without reforonce either to the authorized
ceiling or to availability of tuaft and by the peremptory
manager in which Papagos has implied that the accepUnce
of his present post was con ti ,ral an implementation of
the proposed increase.
m '_ R E S`IKA?t( CA
4. PALESTINE: U8-UK. statement it --U$ Ambassador
Griffis in Cairo transmits his (in which Mark
Ethridge concurs) that no final settlement in Palestine t--
he reached prior to high-level agreement between the US
and UK regarding: (a) Jewisa?-Axe borders; (b) rehabill t-
tion of refugees; and (c) luterratlt izatton of Jerusalem.
According to Griffis, the Egyptians, who realize other Arab
states except `trans jorc a .irLve tittle further interest in the probe
lem, want to be "coerced" into a solution. Griffis, therefore,
feels that a strong public statement made jointly by the 'S
and UK would go 11 r i owara promu ing a settlement. lie adds,
however, that such a statenierc : would have to be backed by
the strongest representaturas to both Egypt and Israel at the
highest US and UK leve,!s.
Israel ted adamant at Rhodes --According to
K.. -YRa .lr.'sR~y
us Consulate~rGenet. i' ern ems c n& Mediator Bancbe
has informed Mark Ethridge that the Israeli delegation at
Rhodes continues to be completely adamant on all important
points. According to Runche, the Egyptians assert they will
make no more concessions until the Israelis "throw in souse."'
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