DAILY SUMMARY - 1946/07/05

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September 11, 2018
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Approved for Release: 2018/09/05 C06749291 APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018 XOP SECRET CO/lip/DEN- 11At! GENERAL 5 JUL 1946 119 1. Paule 9s views on Japanese external assets--Ambassador Pauley Heves that the US should not waive its right of ownership of Japanese external assets in Korea or Manchuria until it has approved final disposition of these assets. He bases his recommendation on the facts that the USSR has completely ignored the US position re- garding external assets and that Soviet removals from Manchuria constitute "a great miscarriage of justice." He recommends that a bilateral US-Soviet agreement regarding Korea be made to cover current production as well as removals of Industrial equipment, since, on his recent trip, he noted no evidence of substantial Soviet removals but found much evidence of Soviet requisitioning of current production. EUROPE -AFRICA 2. USSR: Smith advocates appointment of Labor Attache--Ambassador Smith, after receiving complaints from CIO delegates to the WFTU Congress that they were "operating in the dark" concerning US foreign policy, recommends that a Labor Attache be assigned to the Embassy in Moscow. Ile feels strongly that the US, in order to avoid "a source of trouble" in our foreign relations, should "guide and educate" US labor representatives who have official contacts with International labor organizations. 3. POLAND: Mikola c,ILmclu_._iews on refesendum ults--Ambassador Lane reports that Mikolajczyk is "delighted" with the results of the 30 June referenchun and believes that the Government is "seriously concerned" by the size oil the opposition vote. Although the refer- endum was conducted without serious disorders, Mikolajczyk reports that irregularities occurred after the ballots were cast and the official Government tabulation will ba false. (Mikolajczyk believes that the actual "no" vote on the Three questions was 85, 60 and 10% of the total, respectively, and predicts that the Government will announce the results as 40, 25, and 5%. His Polish Peasant Party participated in the referendum in order to "prove" that early elections could be held without disorders and to learn by experience how to prevent the Government from committing subsequent irregularities. Document No. 049 NO CHANGE in Class. � 0 0 DECLASSIFIED Class. CHANGED TO: TS $ DDA Memo, -4 Apr 7.7 C(Nrrpmffivit)uth: ,D4A G. 77/1763 1 � R 1978 By: 0// ate: Approved for Release: 2018/09/05 C06749291 Approved for Release: 2018/09/05 C06749291 APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018 4. RUMANIA: Smith's views on US-Soviet participation in industry-- According to AmbassadorSmith, the US would gain "no particular advantage" from participation with the USSR In Rumanian industry. He points out that the proposal amounts to "glorified technical assistance" rather than effective ownership or control and that the existence of such enterprises will not deter any possible Soviet designs to expel foreign capital from Rumania. Be adds that the "actual crux of the matter" is whether the US will encourage technical assistance to Soviet satellite areas prior to the definition of US economic relationships with the satellites. DALay in reduction of Army--General Schuyler, US Delegate ACC, reports that the planned reduction of the Rumanian Army has been delayed by the Groza Government's desire to investigate thoroughly the background and "political attitudes" of each officer and NCO in order to retain only those individuals who are "politically reliable." Possible increased train movements--Schuyler also reports that the Soviets have ordered Rumanian_ railroad authorities to put all railroad facilities "in perfect order" immediately. Railroad centers and diversion points, previously reported blocked with empty and loaded cars, have now been "largely cleared." Schuyler con- siders that these moves indicate the possibility of "imminent heavy activity." 5. BULGARIA: Arrests of US employees continue --General Robertson, US delegate ACC, reports that arrests of Bulgarians employed by the US are continuing, despite promises by the Ministers of War and Foreign Affairs and the Soviet delegate ACC that they would cease. Robertson points out that the Bulgarian Militia is "a law unto itself" and is succeeding in its attempt to "interfere with and discredit" thP US Military Mission. 6. HUNGARY: New currency not likely to stop inflation�Minister Schoenfeld reports that the Government's new currency stabilization, program scheduled for implementation on 1 August will probably only give the country a two-month breathing spell before the "runaway pace" of inflation is resumed (the US dollar now sells for 120 quadrillion pengoe). Schoenfeld notes that the Government program makes no - 2 - Approved for Release: 2018/09/05 C06749291 Approved for Release: 2018/09/05 C06749291 APPROVED FOR RELEASE - Historical Programs Staff 30 August 2018 TOP 17117141� provisions for combatting inflation by increasing the supplies available to consumers. FAR EAST 7. KOREA: Progress in formation of political coalition in US zone-- General Hodge reports that negotiations between South Korean political parties of the Right and Left have made slow but steady progress and now have resulted in formal exchange of proposals for the formation of a coalition. Hodge believes that the unifica- tion movement has gathered such momentum that it will be difficult, if not impossible, for any of the larger parties, except perhaps the Communists, to resist it. - 3 - NT1AC Approved for Release: 2018/09/05 C06749291
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