DAILY SUMMARY - 1946/02/19

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August 3, 2018
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Approved for Release: 2018/03/26 C03164668 APPROVED FOR RELEASE - Historical Programs Staff DATE: 15-Mar-2018 T-e14-5tti*ET . ' v 00 7 GENERAL Do cumen No. ________ NO CHANGE in Class. 0 ' \DECLASSIFIED Class. CHANGED TO: TS 1. D French formula for dis Osition of Geirn. an a1/91 Embassy Paris has forwarded a replY: t 1."47174)"''-'5".^ o' ' t66a... oil '..---m=P.1.1* 1.7DDAIemo , 4 Apr 77 . l will, Office to US proposals regarding German assets in Austria, The French reply includes the following: a. German assets in Austria before 19468, togeth6r with war plants removed from that country for reasons of security, should be available for reparations. All other German assets (e.1�ept former Allied property acquired by Germany since the Anschluss) should be given to Austria. b. If the Allies renounce their rights to reparations from Austria (as previously proposed by the US, and which the French are willing to do))Austria should agree to pay certain indemni- ties, make certain restitutions, and resume payments on debts contracted before 15 March 1938. EUROPE-AFRICA GERMANY: French views on US economic p_p_22222A--The French Foreign Office, in a mote commenting on the US memo- randum on economic policy toward Germany, places major stress on security considerations. The French agree that Germans should direct their own national economy, within necessary limitations and controls, but include a strongly worded reservation on the reestablishment of a central adminis- trative machinery before Germany's boundaries and the future central political regime have been clarified: Further reserva- tion is made regarding the French Ruhr proposal. GERMANY: ONIGUS osmoses transfer of Karlsruhe Mannheim. t_g_ELes_ch ,one--Murphy reports that the Office of Military Government, US, has recommended USFET. opposition to re- newed French requests for inclusion of North Baden (Karlsruhe and Mannheim) in the Frplch occupation zone. OMGUS points_ out that the transfer would.,pwer Amerl.can prestige by indi- cating lack of stability in the established state boundaries and -1- Approved for Release: 2018/03/26 C03164668 Approved for Release: 2018/03/26 C03164668 APPROVED FOR RELEASE - Historical Programs Staff DATE: 15-Mar-2018 would greatly increase difficulties of tran tion and com- munications within the T,JS Zone. 4. ITALY: Yugoslav reinforcement of Venezia Giulia�Embassy /tome reports an AFHQ estimate that Yugoslav strength in eastern Venezia Giulia has been doubled during the first hall of February. The US Commanding General in that area believes the purpose of this reinforcement is to intimidate the inhabi- tants of the Yugoslav zone and to exert psychological pressure on the residents of the Allied zone during the visit of the Allied Boundary Commission. 5. HUNGARY: lialleztegUSR offer on ontiers--The editor of the Smallholders Party newspaper has told Schoenfeld in strict- est confidence that Voroshilov has offered, on behalf of the Soviet Government, to support Hungary's revisionist claims in Transylvania, provided that the USSR can be confident that Hungarian economic and political policy will be favorable to Soviet interests. This may explain Hungary"s tendency to grant Soviet economic demands. d. HUNGARY: Cardinal Mindszenty was cleared oy Soviet authori- ties on 18 February to leave Budapest for Rome, and was sched- uled to depart the following day in General Key's plane. EGYPT: New cabinet formed�Minister Tuck reports from Cairo that Sidki Pasha's new Cabinet is composed primarily of tech- nicians with a slightly pro-British tinge. Tuck believes the new Government has an uncertain and troubled futufe. FAR EAST JAPAN: The Elnperor as a war criminal�The State Department considers that the positior of the Emperor as a war cr,minal should not be discussed by the War Crimes commission in Liondon and has so instructed its representative. The Depart- ment holds that the International Prosecution Section of SCAP should determine the list of Japanese war criminals in accord- ane with the policies formulated by the Far Eastern Commission. -2- Approved for Release: 2018/03/26 C03164668 Approved for Release: 2018/03/26 C03164668 APPROVED FOR RELEASE - Historical Programs Staff DATE: 15-Mar-2018 9. "VI N.E.I.: Independence is aim�Salim, Sjahr solitcal ad- viser, has told Consul General Foote that no discussion of economic problems or of a special colonial status will alter the Indonesian demand for independence. If their independence is recognized, Salim claims, the Indonesians are ready to enter into a far-reaching treaty with the Dutch which will pro- tect Dutch interests. 10. CHINA: Credit extension�General Marshall approves the ex- tension of a $32,300,000 credit to China by the Export-Import Bank for the purchase of transportation and telecommunication equipment. He emphasizes that unless transport facilities are rapidly rehabilitated, famine cannot be averted. Approved for Release: 2018/03/26 C03164668
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