DAILY SUMMARY - 1946/09/26

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 02036398
• Document Creation Date: September 11, 2018

Approved for Release: 2018/09/05 CO2036398
APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
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Approved for Release: 2018/09/05 CO2036398
Approved for Release: 2018/09/05 CO2036398
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0 DECLASSIFIED Class. CHANGED TO: TS 4/7 188
DDA Memo, 4 Apr 77
Auth: DDA REG. 77/1763 GENERAL
Date: 1 4 -MAR 7978ByS Oti
1. Byrnes believes US must change foreign economic policy�Secretary
Byrnes has informed Acting Secretary Clayton that the present situa-
tion "has so hardened" that the US, in the light of the attitude of the
USSR and Soviet satellites, must reorient its economic policy in Europe
and the Near East. The Secretary believes that instead of determining
our economic assistance on the basis of need, capacity to repay and
world trade, we must now act on the policy of helping our friends in
every way and not assisting those who are opposing our principles.
The Secretary further believes that it is of the highest import-
ance to assist Turkey and Greece. He has discussed the question of
Turkey with Bevin and has suggested that Britain, in view of her Turkish
alliance, furnish direct military equipment, while the US would render
all feasible economic assistance and possibly provide a few technicians.
26 SEP 1946
2 cal UNRRA officials attack Y -lay Government�According to Embassy
Belgrade, some local UNRRA officials are suddenly concerned" by the
failure of the local mission to report to UNRRA Headquarters the "seamy
side of Yugoslav operations," including the Government's continued lack
of cooperation, diversion of supplies for military use and failure to
account for proceeds of UNRRA sales. One prominent UNRRA official
declared that "on practical grounds there is no need to continue" food,
clothing and transport supplies, and compared "continuing UNRRA aid to
Yugoslavia to supplying scrap iron to Japan."
S. Need for UNRRA tractors in Czechoslovakia questioned--US Ambassador
Steinhardt, commenting on the need for UNRRA tractors in Czechoslova-
Ida, states that (a) at the present time there are more tractors in Czecho-
slovakia than before the war, (b) many factories, which manufactured
tractors before the war, are now producing other types of heavy
machinery for export to the USSR and other Balkan countries, and (c) the
1946 bumper crop, which was planted when relatively few UNRRA trac-
tors were available, could also have been harvested without them.
4. US clarifies misinterpretation of Clayton statement�The State Depart-
ment has advised US Legation Reykjavik that Acting Secretary Clayton's
press remarks on 24 September (see Daily Summary of 25 September,
item 4) were misinterpreted and that Clayton stated, when asked about
withdrawal of US troops from Iceland, that "whatever promises we made,
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Approved for Release: 2018/09/05 CO2036398
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APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018
I am sure we will keep." Clayton now has directed Dreyfus to advise
Prime Minister Thors that (a) the disestablishment of the naval base
at Reykjavik is a "gesture of good will" and does not affect plans for
troop withdrawals, and (b) the US holds that unless a new agreement
Is reached, the 1941 agreement remains in effect until the US concludes
peace with Germany.
5. Ar entina believed to fulfil Chapultepec pact--Messersmith
re i e now s cone us ve e ence e e Peron Government's
determination, in the face of "real difficulties," to take "adequate and
appropriate action" to fulfil its Chapultepec commitments. He is con-
vinced (a) that the Government desires to collaborate with the US and
the other American republics, and (b) that many Argentines regard US
newspaper comment questioning their Government's good faith as offi-
cially inspired.
6. British encouraged over BBC broadcasts to USSR--US Embassy London
states that the British have received "encouraging reports" of the
reception of their special broadcasts in European, USSR and the Baltic
States, The British are confident that their audience in the USSR is
Increasing, "particularly since Soviet home broadcasts occasionally
endeavor to answer items on UK broadcasts."
EUROPE
7. GERMANY: Uncle round milfta izations--The State Depart-
ment has inform ssy according to Murphy two
German war aces are trying to build the nucleus of a new Luftwaffe
"in Spain or South America" and an unidentified military organization
apparently is being developed as the nucleus of a new Reichswehr.
8. HUNGARY: Split widens between Smallhers and C --US
Minister Schoenfeld reports that the Communists are increasingly con-
cerned by the efforts of the Smallholders' Party to isolate them in the
National Assembly. Schoenfeld states, however, that current political
maneuvering is "unreal," since the ultimate decision depends on the
extent to which the Soviets will support direct action by the Communists.
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9. BULGARIA: Air Force�According to US Delegation ACC Sofia, cur-
rent reorganization of the Bulgarian Air Force aims at the creation of
a small but efficient unit equipped with Soviet combat planes. The Dele-
gation states, however, that morale of Air Force personnel is such that
mass desertions would occur should the opportunity arise, and that
drastic measures have been taken to guard against this possibility.
NEAR EAST-AFRICA
10. IRAN: Qavam's difficulties increased�US Ambassador Allen reports
that Qava.rars difficulties have been increased by a "temporary cool-
ness" in his relations with Firuz, who had led Qavam to believe that
the Qashqai could be trusted.
The Azerbaijanis are taking advantage of the Government's diffi-
culties to stiffen their attitude in current negotiations and also have
offered 10,000 troops to aid in fighting the southern tribes.
FAR EAST
11. JAPAN: Repatriation from Soviet areas--The State Department has
instructed US Embassy Moscow to approach the Soviet Government with
a request for the prompt repatriation of Japanese nationals from Soviet
areas, particularly the estimated 800,000 Japanese troops captured by
the USSR in Manchuria and North Korea.
12. CHINA: Communist final recast unacceptable�US Embassy Nanking
reports that the 'last request" by Chou En-lai to General Marshall for
convening the three-man Military Committee is couched in such terms
that Marshall cannot accede to it.
Chinese urge ending of UNRRA shipment embargo--The State
Department has told US Consul Shanghai that the Chinese, arguing that
an unofficial "interim agreement" has substantially modified the UNRRA
embargo on shipments to China, have requested the State Department to
assist in persuading UNRRA to terminate the embargo officially and
publicly.
Approved for Release: 2018/09/05 CO2036398