DAILY SUMMARY - 1949/01-1949/03

• Document Type: SPECIALCOLLECTION
• Collection: Daily Summary Collection
• Document Number (FOIA) /ESDN (CREST): 06749334
• Document Creation Date: December 3, 2018

Approved for Release: 2018/11/19 006749334 50 ET GENERAL .* 3 JAN 104g 878 1. Dr4q1 ordkrf vittlidraval units from E -US Repre- sentative Mc.MmId in liC3 re accord vrith the Department of State's instructions he has informed the Israeli Government of the US views concerning the Israeli Weston of Egypt. The Israeli foreign Office has advised McDonald that orders have been issued for the withdrawal of Israeli units from Egyptian territory. US uraes British to restrain Z jj$1uin.The Depart- � ment its strong belief, in view of Israel's order to withdraw all troops from Egyptian soil as a result of US representations, that the British should impress on the Egyptians the necessity of refraining from further attacks similar to the 1 January attack an Tel Aviv. The Department fears that otherwise a chain of reprisale may jeopardhse the progress which has been made so far toward a final settlement. The Department � advises the Embastsy that this view ins been officially conveyed to the UK through the British Embassy In Washington. ill send tr to 'rrans ordan-- US Represen mman on teials of the British Legation that the UK ins decided to send "a unit of ground forces" to the Transjordan port of Aqaba. Stabler understands that the British will 1121110311C0 that the troop move- ment is in response to Transjordan's request, based on the Asglo-Transjordan Treaty. THE C.I.A. HAS NO OBJECTION TO THE DECLASSIFICATION OF THIS DOCUMENT. NO. tai Jocument No. 001 A0411: CliArGE � j.73 Class, .. Class V � Auth: Date: 478 Approved for Release: 2018/11/19 006749334 1-1 Approved for Release: 2018/11/19 006749334 50 TO RET GENERAL 4. JAN 1949 1. US comments on Israeli reaction to representations-The De- partment cl State has informed billtepresentate McDonald in Tel Aviv of its surprise at the comments made by Israeli officials on the US representations concerning Israel's invasion of Egypt. The Department Int tracts McDonald to inform the P01 (Prod- stoma Government at Israel) that the US has important interests In the Middle East and that the Israelis therefore have no just pounds on ',bids to resent the fact that the US should react strongly to any action by either Israelis or Arabs which might threaten to enlarge the Palestine conflict. McDonald is also to inform the PGI that the US is making strong representations to Egypt concerning Egyptian hostilities against Israel. ,US representations to Eng�The Department of State has instructed US Embassy Cairo to7W-orm King Farouk of the deep concern of the US over the renewed outhio cd hostilities be- tween Israeli and Egyptian forces in the Negeb and to express the conviction at the US Government and people that the time has come to make peace in Palestine. The Embassy is to point out that the Provisional Government di Israel, in response to US re- presentations, has promised to withdraw its forces from Egypt and that the US expects Egypt to act with '`wise restraint" con- cerning further hostilities against Israel. The Embassy is also to inform Farouk that the US would be encouraged if the Egyptian Government would promptly undertake armistice negotiations with Israel as recommended by the Security Council on 16 November. THE C.I.A. HAS NO OBJECTION TO DECLASSIFICATION OF THIS DOCUMENT. NO. 62% ioocument No. DOI 879 S NO CHAT= in Class. 0 DEGLAS3:' 'Class. OL - . TC S 4 Apr 77 77/1Y63 _ Ly: 621 ET Auth: ADA rrr Date: PI MAR we Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TOP 't5 TI1E C.I.A. BM NO OBJECTION THE DECLASSIFICATION OF tHIS DOCUMENT. JAN 1949 880 NEAR EAST-Aliftral I. PALESTME: Resorted_ Ingress in leraeli-Tesaidordan talks-- us Representative Maar kl AMNIA reports tharniosi progressu is apparently being made In laraell-Tranelordan negotiations and that the nest meeting will be bold in Jerusalem on 5 January. Stabler adds that the WWI attitude was *apparently more cordial at the last meetbeg than in previous esesicon. !AR Emir 2. INDONESIA: Diem: intim Representa- tin Cochran Cochran conerobn GI the UN Good Offices Committee (00C) should be effected as soon as possible and has suggested to the Department ad State tbat he be authorised to urge the GOC to recommend its own dissolution in a 41 January report to the Security Council. Cochran believes under Dutch sufferance and only within mob limited sense as that: (a) even as a reporter the GOC can now function only the Netherlands may consider expedisn4 and (b) further activities cd the GOC may seem to condone Netherlands action. 3. CEDIA: ChIn Kai-shek's retirement --US Ambassador Shaart has reaffirmed since iInsuary to Vice President Li Tsong-Jen his intentke to retire. According to the.. reports, which Stout is convinced are factually authentic, Chiang expects Li to act for him during a prolonged but not necessarily permanent retirement. if the Chinese Communists still prove intractable in peace negotiations, Chiang reportedly Wands to return and carry on the struggle. Chiang is said to plan to go first to his home in Chekiang Province and later, If the military situation necessitates, he will withdraw tentless where he intends to locate the Chinese Navy, the Air Farce, and the Government's movable assets. The US Consul General in Taipei has been told tint Chiang will definitely move to Taiwan and will attempt to continue resisting* there as a "National" Governroent:Ig ceiwarisbi ger Peace negotiations. NO CHANGE in Class. El 0 qt, Class. 0L". � CRET !'pr 77 Auth: rte: ittaltIka_ Li, Approved for Release: 2018/11/19 006749334 at 5-s s-f s -IS Approved for Release: 2018/11/19 006749334 TOP c ETTHZ C.I.A. HAS NO onzoitox TOHE DECLASSIFICATIONOF HIS DO GENERAL NO. 021 1. Ekandinavisp "showdown" on Atiantic Pact imminent�US Ambassador Bay in Oslo reports that the Prime Ministers, Foreign Ministers, and Defense Ministers of Norway, Sweden, and Denmark are now engaged in discussions which may re- sult in a "showdown" concerning the attitude of the three powers toward the North Atlantic Pact. Bay indicates tbat the Norwegians apparently have called such a meeting at this time in order to enable them to find out where Denmark and Sweden stand before invitations are extended for the Washington talks on the North Atlantic Pact. NEAR EAST -AFRICA 6 JAN 1949 2. PALESTINE: US urges Egypt and Israel to effect cease-fire-- The Department of Slate has instrucied US Embassy Cafro express to the Egyptian Government the hope of the US that Egypt will not alter its expressed readiness to enter into talks with the Provisional Government of Israel (WI) even though the PGI did not accept the Security Council% cease-fire before the 5 January deadline set by Egypt. The Department considers that a reasonable opportunity should be given the POI in which to accept the Egyptian offer. In a parallel message to US Representative McDonald in Tel Aviv, the Department has instructed McDonald to inform the PM that the US trusts that It may be still possible for Israel and Egypt to enter into nego- tiations following a prompt and effective cease-fire. The US representatives in both Cairo and Tel Aviv are to point out that the US is making a similar representation to each govern- ment. Document No. 5041 881 NO CHANGE in Class. 0 0 DECLASSL`'.1:-.D Class.. TO: TS S DDA 4 Apr 77 � Auth: DDA -S.1712. 77/1/63 0 Date: P78 By: 62s TO Approved for Release: 2018/11/19 006749334 5 -Ts Approved for Release: 2018/11/19 006749334 a 7 JAN 1919 HE C.I.A. HAS NO OBJECTION 882 TO Erin 7HE DECLASSIFICATION OF ,e THIS DOCUMENT. 00 GENERAL 14�' 1., US position on Berlin currency�The Department of State has informed US Embassy London that the US still believes that the reply of the western powers to the UN Technical Com- mittee should point out the inapplicability of the Committee's plan for currency reform in Berlin in view of the current situation resulting from Soviet action in splitting the city administration. The Department adds that if this approach Is unfavorably received by the British and French, the US Is prepared to consider the acceptance of the Soviet mark on the basis of its autonomous use in the three western sectors. The US would make such acceptance conditional upon Biltish and French willingness to agree formally to the establishment of the western mark by 30 January 1949 In the western sectors, if there Ms been no Soviet agreement to the western counter-proposal by that date. The Depart,- ment believes that the reply of the western powers to the Technical Committee should declare that: (a) this counter- proposal is the only possible basis for western use of the Soviet Zone mark; and (b) unless there is prior agreement along these lines, the western governments will soon be compelled to make a complete change-over to the western 1113" mark in their sectors. 2. Portuguese views on Atlantic Pact�US Ambassador Macireagh 5 - 7.11 In Lisbon has transmitted the text of a memorandum which the Portuguese Foreign Office has sent to the UK concerning the views of the Portuguese Government on a North Atlantic Pact. The Portuguese Government has expressed its emphatic view that some such pact is indispensable to the maintenance of peace but has indicated that Portugal: (a) regards as im- practicable any pact which would become linked to a close European federation; (b) does not favor the use of such a pact primarily for the establishment in peacetime of military bases on Portuguese territory; and (c) believes that the Spanish question must eventually be reconsidered in connection actument No:, 00( 0NAKC-21 i.Ys Glass . E TO CRETA,r V. -7 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 with a North Atlantic Pact. The Portuguese Foreign Minister has told the British Ambassador in Lisbon that he does not believe that the stationing of foreign troops on Portuguese territory could be considered, except in the Portuguese islands, until Spain becomes a signatory to the pact. � (CIA Comment: CIA considers that Portugal is not likely in the future to devlaba from these views which are in accord with long-standing policies concerning the protection of Portuguese sovereignty and recognition of the geographic unity of the Iberian Peninsula.) -2 6.6� TOP RET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TO? CRET 4). .1) GENERAL 8 JAN 1q49 883 1. Premier Spaak's views on Israeli aggression--Belgian 1:frem1er Tpaak Efts expressedto 1JXm1seador Kirk In Brusselis his concern over the Palestine situation, declaring that the "small military successes" of the b3raelis have gone to their heads. Spa& regards the recent advance into Egypt as very dangerous and =- presses his understanding of the UK's concern over the Incident. Spaak believes that Israel's "martial ventures" must be ended as quickly as possible, and he suggested that the US would do well "to RIO the brakes on the Pro- visional Government of Israel." ek,\ TO RET V\ THE C.I.A. HAS NO OBJECTION TO HE DECLASSIFICATION OF THIS DOCUMENT. NO. 0:93 'Jo aument No 9, 6 6 NO CHANGE in Class.; 0 El DECLASS:L-177D Class. C. -Dr.' TS S 77 Aut1-i r , D t 1978/ 1,0 Approved for Release: 2018/11/19 006749334 02 Approved for Release: 2018/11/19 006749334 TOP S ET the advancement of closer economic and political integration of weistern European nations as these nations themselves think practicable; (b) the nature and location of facilities necessary for the security of the North Atlantic area could only be determined in the future by consultative machinery _ in which all parties would be represented; and (c) the US fully realizes the importance of Spain to Portugal but be that non-inclusion of Spain at this time should not be a deterrent to Portuguese participation in such a pact. FAR EAST 4. CHINA: Nationalists ask mediation by major powers--The Chinese Acting Foreign Minister handed similar aide memoires on 8 January to the US, French, Soviet and British ambassa- dors inviting their governments to mediate the Chinese civil war. US Ambassador Stuart reports his agreement with French and British ambassadors that by this move the Chinese Government is playing for time and is trying to avoid the loss of face which would be involved in a direct approach to the Communists. The ambassadors point out that if the Government were sincerely interested in such nego- tiations, it could undertake them without outside assistance. The three ambassadors further believe there is little chance of successful mediation because it is unlikely that the USSR would participate in good faith. _Cl....iot!...w.wstancse.:12124--US Embassy Nanking reportsommunist rejection of recent Nationalist peace offers has strengthened Chiang Kai- shek's conviction that true peace negotiations with the Com- munists are impossible and that the Government must conse- quently continue the fight "all the way to Taiwan" if necessary. The Embassy considers the most likely immediate develop- ments to be: (a) the resumption of fighting by the Communists; (b) a further deterioration of the Nationalist will to fight; and (c) the continued authority of Chiang with a resultant paralyzing effect on Li Tsung-jen and others in the "peace group." - 2 - e 0 -Al a TOP RET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 0 TOP 10 JAN 1949 RET THE C.I.A. HAS NO OBJECTION TO 7HE DECLASSIFICATION OF i4 THIS DOCUMENT, NERAL NO. 6XS views on North A Pact�Concerning plans or a a official has in- formed US Embassy Brussels that the Foreign Office: (a) believes the geograMo scope of the pact should be "European, North American, and the Atlantic area lyieg between;" (b) opposes the inclusion of Daly. North Africa, and her Mediterranean areas and believes a Mediter- ranean regional arrangenrient should eventually be estab- lished; (c) prefers to have the pact come into force only upon ratification by all signatories, including the US and France; and (d) hopes for a treaty of the longest possible dmratioo. 884 - 15 2. vitas to seek de in bids for Was talks-- - TS A to OreAI Minister Unden has told the Dutch Minister in Stockholm that Norway and Denmark have both agreed to ask the US not to extend invitations for Scandinavian participation in the forthcoming North Atlantic Pact talks until current Nordic defense talks and subsequent political discussions have been concluded, somethne around 1 February. Unden also declared that Sweden would not join any association of western powers and would not join a Samdinavian defense pact which permitted any of its members any outside affilia- tion. 3. US Alms recent Porthgee memorandum�Thc Depart- me State-----g-a---afTIIIIMILI;1161:� ift MacVeagh in Lisbon to present to the Portuguese Government the follow- ing comments concerning its recently expressed views on a North Atlantic Pact: (a) the US favors such measures for -,ocument No, 001 NO CHANGE in Classc - I -o DECLASSIFI"D 1:1 PP' -, .. Class. CI -:" . -: ..7): TS S7 r7�), .. !pr 77 Auth: _II._:,. 2_7 7 z 17t3 A TOP CRET Dat e,.:A 7 MAR 1978 PF: --Cia,� Approved for Release: 2018/11/19 006749334 Approved for Release: 2018%11/19 006749334 144't\ . TOP ET FAR EAST 3. CHINA: French ti OI Ci -C 0110 US Embassy reports comment the Ambassador to China, concerning thia recent Nationalist re- quest for mediation, that it is to the French interest to support any Chinese regime which resists Communism. The French Ambassador remarked that such a policy as necessary be- cause all the repercussions which would be created in Indo- china by a Communist regime in China. He added that even though anti-Communist resistance would inevitably collapse, France would gain time by supportthg it. - 2 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 .tes 0 TOP 11 JAN 1949 RET THE C.I.A. HAS NO OBJECTION Ilk TO HE DECLASSIFICATION OF ire THIS DOCUMENT. GENERAL NO. 1. defense meat tentative reached--The Danish ore or or Marvel that Norway, Sweden, and Denmark have agreed to form a regional alliance obligatthg: each country to declare war in case of aggression against any one of the three. Marvel was informed that Norway, with Denmark's approval, Insisted on adding the "important condition" that participa- tion of these two countries be made contingent upon the will- ingness of the US to furnish arms to this regional group. Marvel was also told that Sweden's obligations in such a pact would be entirely dissolved if any member joked a North Atlantic Pact. EUROPE 2. ITALY: Government to withhold action on security pacts-- Foreign Minister Morn has informed US AmassFI5inn In Rome that although the Italians wish to participate in west- ern defense arrangements and the North Atlantic Pact, the Government is not requesting such inclusion at present be- cause certain governments reportedly oppose Italy's admission. Sforza believes that for this reason Italy should await some expression of favorable opinion from the other western powers. Dunn considers that sympathetic consideration should be given to the possibility of including Italy in the Atlantic Pact. (CIA Comment: It is doubtful that the Italian Govern- ment could make any military commitments at this time, regardless of the attitude of other western powers toward Italian participation, in view of the strong opposition within Italy toward such commitments.) 885 - TS Do oummt. Nth. 00$ VO MANGE In Class. a tllMCLASZIFIED - 1 - Dt TS s -r: 0., -II pr titiithZ .1. , 77:3 '763 44> tatt.e.: pit_pRAR4978 �er TOP ET Approved for Release: 2018/11/19 006749334 1. Approved for Release: 2018/11/19 006749334 12 JAN 1949 Hipc,I C.I.A. HAS 1I0 OBJECTIOL 886 z"'' TO giE DECLASSIFICATION OF THIS DOCUMENT. NO. 00 GENERAL � a on oinmittee's Berlin lan--Foreign Secretary con- corning the recent US suggestion that the UN Technical Committee's proposal for Eiscid reorganthation in Berlin should be regarded as inapplicable to the situation, that British technical experts consider the Committee's pro- posal to be workable with appropriate amendments. Sevin reportedly believes that die suggested US counterproposal (providing for acceptance ci the Soviet mark an the basis of autonomous use in the three western sectors) is "obviously unacceptable" to the USSR and might enable the Kremlin to place the blame on the western powers for the breakdown of the Security Council's mediation efforts. Bevin also expressed his fear that neutral members cd the SC would react adversely if the western powers rejected the Committee's proposals. Bevin also indicated that British experts in Berlin lave reported that "no compelling need" exists for the establishment of the western mark in the western sectors. Bevin asked the Embassy what US intentions in Berlin are and whether the US really wants a settlement. 2. Soviet c . 111.1 anise on Berlin dIarde believed unlikely--US s - TS Embassy � , oscow expresses its Cllei t th8i1a ai5oluteiy no indication of any Soviet willingness to reach an agreement on the Berlin dispute at any price which the US could conceiv- ably pay. The Embassy feels that the Kremlin will continue r to welcome any delays which do not interfere with the =fete- nance of the blockade and permit the strengthening of the 1110 . organization of the German Commtmist puppets. The Embassy also believes that the USSR is likely to "talk business" only if the Kremlin is convinced that the western powers can i "decisively win the battle for Berlin." Document No. 601 I NO CHANGE in Class. p D DECLA:1.:Lir, Class.. C : ...:3 3 0 77 . No'40 AUth: 1,0-_ '..:. "i7, . /63 . TOP CRE-Bat e i 1, MAR ,974 By g Org Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 %50 TO -RET /44 GENERAL 13 JAN 19B9 887 1. lipM6o stress mitten aspects in Rhodes talks--US Charge a cam) been informed* Prime Minister Nadi Pasha that Egypt considers the Rhodes conversation with Israel to be designed primarily to implement the Security Conseil resolutions of 4 and 18 November 1048 rather than to obtain a general political settlement. According to Patterson, Nadi gave no indication that the RAF incident would bale any direct bearbgr on the Rhodes talks and allowed it to be tinder- stood that if discussions on the military level proved prodac- tive, Egypt might then consider contbning the talks on a wider baste. yrwativittraticpact �. Uen "" " Icelandic For- . -U8 Minister coign Minister that he felt it advantageous to Iceland to be an Wend member cit North Atlantic but theta decision cannot be reached until more concrete If" ". tion is available concerning the increased security Icebuul will cbtain from the pact as well as the obligations Iceland will have to assume. Ile Foreign Minister added that Norwegian and Danish parti- cipation woad be necessary in order to make the pact poli- tically palatable in Iceland. (CIA Ccenment CIA considers it improbable that Iceiand will announce it decision concerning the pact prior to action by Norway or Denmark.) 3. p4 declines Chinese mediation regiest--In reply to the Is Amery Chinese regnant tole YOui1Powers for mediation of tb) civil war, the Department of Slate has instructed US Embassy Nanldng to inform the Chinese Foreign Minister that the US believes it would serve no useful purpose by "attempting to act as an intermediary in the present situation." '.)ocuifient No. 010 NO CHANGE in Class.; El THE C.I.A. HA- ' - 7T104 0 DECEASST:7�` TO THE DECLA- . ..r �.:)N Oil Cg. THIS Doc ."4, Class. C.': !. � TS NO. all TOP RET Auth � ' � r7".. , Date MAR 1978. By: 02ar� i- Ti Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 informed the Ambassador that the US view continued to be that Israel was entitled to the boundaries assigned it by the UN partition resolution of 29 November 1947, although the Israelis might have to relinquish part of the Negeb if they wished to retain territory conquered is the north. (Accord- ing to the UN partition plan, the Negeb-Transjordan road crosses both Arab and Israeli territory.) The Acting Secre- tary expressed the view that "real security" lies, not in any particular road in the Negeb, but in encouraging the development d a western outlook in Israel. Bevin also wished to know whether the US was prepared to back the various Security Council cease-fire resolutions. The Acting Secretary declared that although these resolutions are certainly valid in their aptolication to a momentary military situation, they do not delineate a final political settlement, as Bevin apparently considers. He concluded that if the UK attempted to arm the Arabs, such action would be in violation cl the SC resolutions and would make it necessary for the US to consider lifting its arms embargo. S. Chinese Nationalists may seek mediation by Security Council-- The Chinese Ambassador in Washington has told Acting 3 -5 Secretary Lovett that if the US, the UK, the USSR, and � France are unwilling to grant the Chinese 8 January request for mediation, the Government will consider the question d presenting the matter to the UN Security Council. The Acting Secretary has informed US Ambassador Stuart in Nanking that the Chinese Ambassador apparently regarded the 8 January request as an attempt to put the US on the side of the National Government against the USSR and the Chinese Communists. Undficial $grigt re*tion to mediation proposal-- US Embassy Nanking has learned that the Soviet Ambassador there has undfilcially expressed the view that the USSR is not interested in the Chinese proposal for mediation of the -$acument. mo. civil war. - 2 - NO CHANGE in Class.] DECLASSIMD Class. C7. : 1.:1 TO: TS S C LL l . (.7,- 77 - . TOP SE TAuth : r,...�2 ta Date: Bit a2f Approved for Release: 2018/11/19 006749334 Approved for Re-lease: 2018/11/19 006749334 TOP S ET �es, GENERAL I. US urges definitive Berlin action�The Department of State has given the British and French Ambassadors in Washington a memorandum expressing the US view that the deteriorating situation in Berlin requires prompt action and that the US counterproposal, providing for the possible use el Soviet currency in Berlin, is the only practicable solution. The US memorandum strongly arm the UK aid Fresco to consent to the introduction fi the western mark by 30 )umary if a nainimum solution along the lines of the US counterproposal is not accepted by the USSR prior to that date. The memorandum indicates that if the three western powers are unable to reach agree- ment concerning the introduction cf the western mark, the US will be obliged to consider what action it must take to protect itself against further drain on the resources of western Germany. � 1 Meanwhile, the Department of State has authorised US Repreientative Knapp to express to the Security Cain - cies Technical Committee in Geneva the view that the US counterproposal represents the only basis for the use of the Soviet Zone mark. 2. US views on Palestine settlement�The Deparbnent cf s - r4 Stale has informed US Embassy London that the British Ambassador in Washington, under the personal instruc- MAW of Foreign Secretary BaMilit recently requested a THE C.I.A. aft..".. :7: CBJECTIt clear statement of US TIMIS on a final territorial settle-To THE DECLASSIFICATION ! meat in Palestine in the light cd common US-U strategolls DOCUMENT. Interests in the Middle East. Bevin was particularly . 24/ Interested in ascertaining the US attitude toward the al"' maintenance of strategic land conununications between Egypt and the other Arab states, specifically the road from the Negeb to Transjordan. Acting Secretary Lovett 14 JAN 1949 888 - Document No. oil NO CHANGE in Class. 0 ...� 0 DECLASSIFIED ss. T): � TS 'S CRET D :a, 4 Par 77 Auth: T*.LA 77/1763 . SI Date 011.1KA*4978., By: 021 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 - 1)1k 50 TOM CRET �Pi ri4e. vG� ' NEAR EAST-AFRICA 1 5 JAN 1949 889 1. PALESTINE: koraelts urge immediate settlement for Jerusalem-- US Consulate General Jerusalem reports that an Israeli representa- tive has expressed to the French Consul General his pessimism regarding current talks on Jerusalem between Israel � Trans- Jordan and Israel's desire for French and US pres to secure a prompt separate settlement on the status ci the el . According to the Consulate General, the Israeli representative indicated that his government was willing to make specific territorial concessions In ceder to secure a quick settlement, but added that Israel was capable of solving the problem by force, if necessary. The Con- sulate General expresses the belief that: (a) the proposed division Cd the city is "extremely favorable" to the Arabs; (b) the Jews although genuinely desirous ci peace, will resort to force if the I prospects for an immediate settlement do not improv c) the US should, therefore, seize the present opportunity and press for a prompt settlement of the Jerusalem problem. THE C.I.A. HAS NO OBJECTION TO TIIE DECLASSIFICATION OF THIS DOCUMENT. NO. 628 � ucument No. &a NO CHANGE in Class.; El D DECLASSIFIJED Class. .) 7-3 TS s PD:. , 4 Apr 77 Auth: DDA LILO , 77/1'763 Date: L 4 MAR 1978 By: _al_ Approved for Release: 2018/11/19 006749334 .5- s Approved for Release: 2018/11/19 006749334 GENERAL 1. Sp resolution on bsdonesia--118 rnblivstpraeorgue�9=been told by the Netherlanas For- eign Minister that it would be "absolutely impossible" for the Netherlands Government to accept the newly-proposed Security Council resolution on Weasels and that tb3 Dutch "would rather starve" eon accept its terms. The Foreign Minister emphasized that "he very much feared" the Netherlands would withdraw from the UN if the resolution were passed. (CIA Comment: CIA believes that the Netherlands Foreign Minister is exaggerating Dutch reaction to the resolution in the hope of forestalling Strong SC action. CIA considers Dutch withdrawal from the UN moat un. � likely.) 17 JAN 1949 890 THE C.I.A. FAS NO OBJECTION TO IHE DECLASSIFICATION OF THIS DOCUMENT. 14� .m.......������������������������=1.M.M.0 5 S Doommont No. 1011_________77" uo %mu in Class. Q TACIAASSIZI7D � t1t5D. 1:: Ts s 4 Apr 77 D -2A 77 1763 ETbates i3e7AMR1918 By: o2 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 ANNEX � 18 January 1949 THE SOVIET PROPAGANDA SHUT The reoccurrence of a Soviet propaganda "peace offensive" does not reflect a sincere desire by the Kremlin to negotiate outstanding east-west differences, except on Soviet terms. Neither does the Kremlin expect the US or the western governments to give serious consideration to the avowed Soviet desire for east-west agreement. The Kremlin is attempting to weaken the position of the western powers and to delay positive western action by propaganda designed to: (a) create the illusion that the west- ern powers, led by the US, are blocking an equitable solution of east-west problems; (b) ostensibly alleviate world tension In an attempt to persuade the new US Congress that current proposals for defense and foreign aid expenditures are un- necessary; (c) instill doubt and hesitation, both in the US and in western Europe, concerning the need for participa- tion in the proposed Atlantic Pact; and (d) enable the Com- munist Parties in western Europe to regain some of the prestige and popular support last during the recent months of direct action. In making this tactical shift in its propaganda approach now, the Kremlin probably desired to take ad- vantage of: (a) the convening of the US, 81st Congress; (b) the appointment of a new US Secretary. cd State; (c) German dissatisfaction with, and western European misgivings over, the recent Ruhr decisions; and (d) the current discussions concerning the Atlantic Pact Adoption of this propaganda line, however, has not committed the USSR to any specific course of action. The USSR can be expected to emphasize this approach as long as the Kremlin considers that it Is con- tributing to the long-range Soviet program to defeat western recovery and defense efforts. On the other band, the USSR will probably make still another tactical propaganda shift if the present approach encounters vigoEmmeniksigtvince. - - NO CHANGE in Class. O DECLASSI.7.1.7D � 7;D: S S DaL P)r 77 Auth: DDA 1.1.2_ 1763 Date: Approved for Release: 2018/11/19 006749334 By: Approved for Release: 2018/11/19 006749334 18 JAN 1949 THE C.I.A. HAS NO OBJECTION TO 7HE DECLASSIFICATION OF 891 T THIS DOCUMENT. TOP GENERAL No. 1. =sea to UN on Berlin mrry--11111 Repre- vs KllePp t -re rettteStt1ahand French did not join with the US In rejecting the UN Neutral Committee's proposal on the Berlin currency question. Knapp indicated that although the British and French scented the Committee's plan, subject to ceriatn technical objectkos, they did request the Conunittee to consider the US counterproposal. According to Knapp, the Soviet dole- gate reportedly suggested only a few amendments to the Committee's draft proposals) leaving the impression with the Committee that the amended proposals would be accept- able to the MR. The US representative added that the US reply has given "great shock" to the UN Committee,in view of the Soidet attitude and the moderate response by the British and French. 2. UgalgegUiLlallerananaltanagt--The Department of State has informed US Embassy Parts, regarding settlement of the Indochina problem, that the US desires a French agree- ment with Bao Dat or any truly nationalist group which has a reasonable chance of success In Indochina. The US, however, cannot at this time irretrievably commit itself to the support of a native government which, by tailing to gain popular back- ing, might become a virtual puppet government supported only by French military forces. 3. P., Casiblq rforwedan lidloerence to Atlantic Pact--US Ambassador Bay in Oslo -expresses- the belief that Norway is the key to Scandinavkui participation in a North Atlantic Pact and that "Ices of Norway would threaten_ the entire concept of a North Atlantic community of nations." Bay adds that the slightest encouragement by the US of the current Danish argument that a neutral Scandinavian bloc would act as a deterrent to Soviet aggression might not only lose Denmark as a prospective mem- ber of a North Atlantic Pact but would undermine the whole Norwegian position. cament Noo ig0 CHAFGE in Clzssol 0 �,,004'' Dr..:7 14.e C TO RET 7T la\ Date:itAii J1-:113-- 1f � r Auth: " By: . - 1 C/14 - 75 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 19 JAN 1949 TEE C.I.A. HAS NO OBJECTION 892 EVO THE DECLASSIFICATION OF THIS DOCUMNT. NO. 0.11 1. on GENERAL ion in Atlantic Pact--US Embassy an ritish Foreign Office that the British will not object if the US wants Daly included in the Atlantic Pact bet that both Sevin and Schuman, at their recent meeting, doubted the destrab ?mamma tor naman partIcttiee when it became evident that a case could not be mdelor the Inclusion of North Africa. US Ambassador Kirk reports Vat-Belgian Premier Speak also doubts the wisdom of including Italy in the Atlantic Pact, particularly because Italy's amftssion to the Brussels Pact would logically follow. (CIA Comment: The Brussels Pact powers oppose the inchAsion of lialy in the Atlantic Pact largely because they fear that they would then receive a smaller share ce available US military aid.) 2. Danish desire toohl_thtlaatic Pact--Dattish Foreign Minister Rasmussen has I d1TSTsaador Marvel in Copen- hagen that a final decision in the defense discussions between the Scandinavian countries will be made on 28 January. Rasmussen expressed his belief that Denmark would then undoubtedly seek to Join the proposed Atlantic Pact. 3. Clow US-STK understanding on Palestine envisaged--US Charge Holmes in London expresses the belief that President Truman and the Acting Secretary of State, by their .recent talks with the British Ambassador on the Palestine issue, have made a "genuine contribution" to US-UK understanding NOTE: The next regular issue of the CIA Daily Summary will be distributed the morning of 22 January. - 1 C / A- -S 5 --TS � 3.3(h)(2) 5 - 5 Document No. 61's NO CHANGE in Class.. 0 DE::7,.,�,.7:7-71-- c .. � TS TOP . . . 0 v mAR Approved for Release: 2018/11/19 006749334 0111111...4 oat Approved for Release: 2018/11/19 006749334 TOP RET and have made US thinking clearer to the British Cabinet than ever before. Holmes feels that as a result of the authoritative and unequivocal statement of US policy by the President and the Acting Secretary, sympathetically transmitted by the British Ambassador, the British now !Tow "where they stand" and realize that the US has a "reasoned point of view" on the Middle East. Holmes adds that these statements have also ended Foreign Secre- tary Beviq's hopes of obtaining US-British cooperation on British terms. Holmes hazards the guess that the UK will do as little as possible about Palestine in the immediate future and will progressively but quietly un- bend toward the Provisional Government of Israel. FAR EAST 4. CHINA: Government withdrawal to Canton--The Chinese Foreign Office has notified US Ambassador Stuart that the National Government will begin moving to Canton on 21 January. The Foreign Office has officially requested Stuart to follow the Government to that city. (CIA Comment: Although the National Government will try to remain on the Chinese mainland as long as possible, it will continue to develop Taiwan both as a mili- tary base and as a final ref:age.) Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 DU GENERAL 21 JAN 1949 893 I. Italy desires invitation to Atlantic Pact--US Embassy Rome has been unofth1ally Informed by t1 Italian Foreign Office that the Italian Cabinet unanimously desires that Italy be Invited to join the Atlantic Pact. The Foreign Office ex- pressed the opinion,-however, tbalthe Italian public is not yet fully prepared to accept prior Italian participation in the Bresnan; Pact, but that such participation would be a logical sequel to Italian entry into the Atlantic Pact. Accord- ing to the Embassy, the Italian Foreign Office is fully aware of British and Belgian opposition to Italy's inclusion in the Atlantic Pact, but hopes that the US will support an invita- tion to Italy.. The Foreign Office believes that such support would have "the greatest weight" with the UK.� 7 2. US views on Italy2s inclusion in Atlantic Pact--The Depart- ment of State has instructed US Embassy Brussels to inform Premier Spaak that the US still favors inclusion of Italy in both the fAthintic and Brussels Pacts, the US would )accept Italian inclusion in the proposed "Council of Europe" as sufficient evidence of close ties with the Brussels Pact , countries to warrant Italy's inclusion in the Atlantic Pact. According to the Department, the US Joint Chiefs of Staff feel strongly that omission of Italy from either the Atlantic or Brussels Pacts is militarily unrealistic. The Depart- ment considers that the objectives of avoiding an unfavorable Italian reaction and strengthening Italian ties with the west would not be achieved by: (a) admitting Italy to limited mem- bership in the Atlantic Pact; or (b) issuing a statement that the Pact members would react strongly to any attack on Italy. 133E C.I.A. SNO OBJECTIOg To IFIE DECLASSIFI emon OF, THIS DOCUMENT. - I No. NI r lzument No. 01 NO CHANGE in Class. r TS S 1.pr 77 Aut1,2: Lat e 4 7 MAR 1978.__ ay: IE O�i 4 Class. Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TO CRET 3. Belgian concern over Europe4n unity talks --A high Belgian Foreign Office official has informedUS Embassy Brussels of his fetal that no agreement will be reached on European "union" at the forthcoming Brussels Pact Foreign Ministers meeting,/ and that real progress toward this goal will thus be postponed for another three months. According to the official, although there is general agreement on a European Council of Ministers, the British still strongly oppose a European assembly as favored by France and Belgium, and propose instead a "European Conference" of delegates vot- ing by country instead of individually. NEAR EAST-AFRICA 4. PALESTINE: UK urmIs Arab states to seek settlement-- US Embassy London reports that the British Fore has sent a circular messag governments to make armistice agreements with the Provisional Govern- ment of Israel and then to commence final negotiations; either through the UN Conciliation Commission or directly. Accord- ing to the Embassy, the British recommended that the Arab states coordinate their policies for this purpose. -2 TOP CRET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 40,1 U TOP RET NO. GENERAL 24 JAN 1949 894 1. Dutch position on SC Indonesian resolution-.-US Ambassador aruch The Rape reports that Dutch Foreign Minister Stikker has clearly indicated that the only insuperable objection to the proposed SC resolution on Indonesia is that it implies a reconstibitIon of the Republic of Indonesia to its former status. Stacker claims that this restoration of the Republic would be ruinous to the entire Dutch position. (CIA Comment: CIA believes that the Dutch Govern- ment nniy be forced to modify Its stand against a restored Republic by: (a) the continuing rapid deterioration di the Dutch military and economic position in Indoneskt; (b) the Dutch Labor Party insistence upon the reestablishment of the Republican Government; and (c) the resolution on Indo- nesia adopted at the nineteen-nation Asian Conference in New FAR EAST 2. CHINA: Re d Chinese-Soviet tinders -US Embassy Nanking lent through an intermediary to the Soviet Embassy tn Nanking, has concurred in principle to a draft agreement between china and the USSR on the following points: (a) strict Chinepe neu- trality in any future war; (b) the elimination of as muth US Influence as possible from China; and (c) the establishment of a basis of real cooperation between the USSR and China. Accord- ing to the Embassy, Soviet Ambasindor Roshchin has taken this draft agreement with him to Moscow. Meanwhile, Li Tsang- jen Ms requested the US to Issue a statement of approval for ' his government in order to strengthen the Chinese position in Moscow during Roshchin's visit there. J.I.A. HAS NO OBJECTION TO 7HE DECLASSIFICATION OF THIS DOCUMENT. ./10. -1 0 D-oument No. NO CHANGE in Class. 0 o DECT:ASeIFI7D C: ' TS S ), 4 Ap:,-� 77 Auth: L. 't,._77/1.7(c3a 0. 7 RARA-197E1 By; eat Approved for Release: 2018/11/19 006749334 '-S 3-5 Approved for Release: 2018/11/19 006749334 ye\ '04.> TOP ET � (CIA Commit CIA believes that, rather than seek to realise its aims in China enough Li's government, the wait for the establishment of a Comnnmist reghne which would: (a) ensure not only Chinese neutrality but active Chinese participation on the aidedi the USSR in a future NOW and 04 more effectively eliminate US in- timate from China as well es promote Soviet-Chinese co- operation.) Approved for Release: 2018/11/19 006749334 I. Approved for Release: 2018/11/19 006749334 eh, TOP ET 25 January 1948 THE CURRENT 811'111ATIO4 U4 CIFUNA The Masse Ccennamists will probably soon estab- lish a new government which will have a better claim than any Nationalist paw to de facto recognition as the Govern- ment cif China and which Will seek de jure recognition. Organised Nationalist military resistance, on a national scalelhas been destroyed and the final outcome of the civil fear is no longer in &wilt. Although the elimination d anti-Communist resistance in south and west China and. In Taiwan is inevitable, obstacles ce distance, terrain, and poor communications may require an extended period of Communist effort.. Chiang Kai-sbek's "retirement" has left the Nanking Government little bargaining poorer with which to negotiate a favorable peace settlemeat with the Communists who are ,,,ontinuing. to exert mwemitting military pressure on Nanking. camitulatice d the Nanking Government or the complete failure d its peace agets.atikliwobably be followed -Sewed resistance byfree large - of-NaHomillSt . who have little chance d surviving under a Commindst regime. All evidence indicates that soma d thesellfOurrneta - Nationalist center at anti-Comnivaist resistance in south China and that Chiang Kai-shek will probably emerge from "retirement" to provide the necessan leadership. Bath a � development is suggested by: (a) the large-scale withdrawal Cd Nationalist military supplies and material resources to southeast China and Taienui; and (b) the reshuitliag at key officials in the area in order to place authority in the hands , Cd persons definitely loyal to Chiang. The probable re-emerg- ence d Chiang, who would still retain the title of President as well as the support of many officials in the present Natioaal Government, would permit his regime to claim conthming International recognition. This Nationalist group, convinced that World War III is inevitable, would continue to hope for mat:tent foreign aid to resist the Communists._ .cument No. _ - 1 - 0\ DIO Cr.-H.NCE in Class. 0 %, D:F. : � ' -- ---;--.7.' - ite TO RET 77 - . Vuth 3 ..... 1 Date: By: TS S C Approved for Release: 2018/11/19 006749334 � Approved for Release: 2018/11/19 006749334 TOP RET Despite. Chiangssledremeni, the Comnundsts atW fiord him as their principal enemy. Current Comnmnist propaganda accuses the US and ihe Kuombdung of plotting to build up south China and Taiwan as bases from which "to destroy the revolution." Conumndst denunciation ri Chlanes retirement as a tactical maneuver inspired by be US also reveals the genuine concern ct the Communists Over Chieng's prospects, with US aid, for delaying the reali- sation dr the Communist program for establishing conbrol over all China. '. Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 \5O TOP It" GENERAL ET 1. US stresset importance se Rhodes taros --The Department at State has informed the US Mission in Tel Aviv of recent conversations with the Israeli and Egyptian representatives In Washington. The Department advised the Israeli repre- sentative of its apprehensitai uver reports indicating that Israel had postponed evacuation of Egyptian forces trapped at Yalu*, despite a voluntary agreement entered into by Israeli and Egyptian delegates at Rhodes for the uncondi- tional release at these forces. The Department also stressed to both the Egyptian and Israeli representatives the hope that neither government would take a position which would cause the armistice negotiations at Rhodes to break down, because the US very much desires a prompt and successful conclusion to the negotiations. 895 2.5 JAN 1111111 9-TS 2. Transiordan oreoared t9 motiate withimag--King Ab- (IA dullah has informed US Representative Stabler that he is still awaiting from the UN Acting Mediator a formal invitation for TransJordau to send delegates to the Egyptian-Israeli armistice talks at Rhodes. Abdullah declared that if the invitation did not arrive by 20 January, he planned to instruct his go, ernment to enter into direct peace negotiations with israeL Abdullah added that in this connection he had two worries: (a) possible Israeli trickery and intransigence; and (b) his awn desire to retain his position in the Arab world. Re expressed the hope that with regard to both paints he would find "friendship and understanding" on the part cif the US and the UK. 3. views an iierw Dep.t Confgroce go Indongip.--US Ambassador Henderson in New Delhi reports that, despite the moderation eshibited at the New Delhi Conference, the Asian nations are determined to achieve what they consider to be Justice for the peoples ci Indonesia. Henderson believes that Asian opponents of moderation and di cooperation with the west will be strengthened if the Conference's recommendations have no effect on the Security Council's actions concerning e Indonesia. Document No. 6( THE C.I.A. HAS NO OBJECTION TO 7HE DECLASSIFICATION cerOP THIS DOCUMENT. NO. OA - 1 - NO CHANGE in Class. 0 DECI,ASS-ru'TED Class. " � 7): TS S 0 CRET � � ' Auth: , Date' Approved for Release: 2018/11/19 006749334 . 4 :pr. 71 _21 '1763 By Approved for Release: 2018/11/19 006749334 .4\ TO RET 41:2, NEAR EAST-AFRICA 3. PALESTINE: Bunche considers armistice still ossible � According to rson a o, Tc Mediator Bunche has transmitted in a personal letter his opinion that the failure to conclude an Israeli-Egyptian armistice at Rhodes was not due to any lack of good faith on the part of the Egyptian representatives. Bunche be- lieves that an armistice can be concluded despite the narrow and rigid approach taken by the Israelis with re- gard to the withdrawal of their forces in the Negeb. Bunche declared, however, that if an armistice is to be achieved, the Israelis must be persuaded to be more generous and to cease their attempts to exclude the Arabs from the Negeb. - 2 - .6\ at, TO RET Approved for Release: 2018/11/19 006749334 - Approved for Release: 2018/11/19 006749334 CRET GENERAL 26 JAN 1949 896 no 1. rrench stress need of new labor international,According to bU Embassy IvarU,SIZR W&iCliIMETSts are increas- ingly concerned over the failure of British labor to realise the importance and urgency of establishing immediately a new international labor group which would effectively oppose the World Federation of Trade Unions (WFTU),now completely Comnsmist-dominated as a result of the secession of the � leading western trade unions. Non -Communist French labor leaders also hope that the CIO and the AFL in the US will appreciate the urgency of organising a non-Communist labor tnternattosil. (CIA Comment: CIA believes that unless a new western-oriented labor international is promptly established, the hard-core Communists in the WFTU will make important gains in the international trade union movement. CIA believes that, in addition to the attitude of British labor, antagonism between the AFL and the CIO is one of the main obstacles to the organisation of such an anti-Ccunnumist labor international.) 2. USSR rejects US counterproposal cm Berlin currency--US .5 - Representative Knapp-In tieneva reports that the udbR ins rejected,aEi a basis for discussion, the US counterproposal providing for acceptance of the Soviet mark on the basis of autonomous use in the three western sectors of Berlin. The Soviet rejection contended that the US counterproposal did not conform to the basic principles of the 30 August Moscow directive. The Soviet representative in Geneva, however, expressed the belief that, although It required significant amendments and additions, the UN Technical Committee's draft report did conform to the Moscow directive. (CIA Comment: CIA believes that Soviet insistence on the 30 August Moscow directive indicates that the USSR will continue to reject any settlement which would protect the Interests of the western powers in a split Berlin.) � ThTniEC.ID.EACLAS. HAS NO OBIECTION Document TTIiIS DOC TS.IFICATION OF miuI No. GE in c lass � 0 NO. % 1 1.;E�1 7; IT TS S C S EMT : � 17116'377 " 0/3 Date : 1 7 MAR 19713_ BY: Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 cat TOP RET supplies be shined either to Chin or Than for the Nation- alist Government. The PRIfilia Chief expresses the opinion eat, in wont of the compleb collapse of the thatiocalist Gav- evamont, these siggalies might Mil into the hands of the Communiats or be sold by uneerspuloss Nationalist persona In other areas of =Met In Southeast Asta. ehma stiat=le =La. Caa Genes in the 701111108ft League for Re-emanafpatkaa of an imminent native temarrection on Taiwan &wiped to forestall further development of the Mud as a reensistang stronghtad. US Cooed General ithaeghai believes tint, in view of the large Nationalist forces already established on Taiwan, Thiwanese revolutioaary leaders may envisage success In terms less of military victory than of worldAvide dramatisation of their CRUM (CIA Comment: CIA believes tint increasing Taiwanese resentment against the tall= of mainland Chinese may lead at any time to spontaneous acts of violence and sabotage. CIA believes�howenr, that although an Insurrection may be planned, Chinese military forces would probably be able to enplanes it.) - 2 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 50 TO' RET GE GE .27 JAN 1949 897 I. Swedes s to dela Nordic defense decision--US Arabas- espreisses that Sweden, with Danish acquiescence, will attempt to delay a decision on Scandinavian defense arrangements until long after 1 February. Marvel believes that such a delay: (a) would give the Swedish Socialists more time in which to attempt to convert Norwegian and Danish Socialists to a neutral policy for Scandinavia; and (b) may result in a Scandinavian agreement unacceptable to the US. Marvel therefore recommends that the US "torpedo" the Oslo conference by bringing pressure on Norway to withdraw from the conference and then seek immediately an invitation to Join the North Atlantic Pact. 2. US views on allocation of arms--The Department of State has instructed US Embassy London to inform the British Foreign Office, in view of the latter's fear that Italy's inclusion in the Atlantic Pact would divert US arms from the Western Union powers, that the US will be guided in allocating US arms by maim. strategic considerations and that Atlantic Pact membership will be the most important but not the only factor. The Department added that, lit fulfilling the established US policy to prevent Italy from falling under Soviet domina- tion, the US will supply Italy with arms whether Italy is or is . not a party to the Atlantic Pact. The Department also ex- pressed the hope that Italy, as a natural member of the west- ern European community, will be included from the outset in any Western Union political arrangements recommended by the Brussels Pact powers. FAR EAST 3. CHINA: Suspension of US munitions shipments urged--The Chief of the Joint US Military Advisory droup in Mina (JUSMAG) has recommended that no further US military 'HE C.I.A. HAS NO OBJECTI tO THE DECLASSIFICATION THIS DOCUMENT. NO. GA Document No. 3 - TS S- TS "� 1 "NO CHANGE in Class. 0 0 DECLAE-;. -z7.---'- - 0 C1as39 ',,.. . � TO II* ,e..CRII: ., th: 7-_;.:. . *\ Date:1 7 MAR 1978 Approved for Release: 2018/11/19 006749334 Yt. S 77 By: Approved for Release: 2018/11/19 006749334 TOP CRET (CIA Comment: CIA believes that in view of this growing opposition in Norway to an Atlantic Pact and in- creasing Danish reluctance to support Lange's attempts to draw Sweden into a western allianee, any delays in reaching a decision on Seandlantan defense will tend to weaken Norway's 'nation in Mbe current Scandinavian seg ttations.) FAR EAST 3. SURbIA: Karen-Burman fighting Increases--US Embassy Rangoon reports that the conflict between the Karens and Burmans has resulted in widespread burning of villages throughout the delta area north and west of Rangoon. The Embassy believes the strife is likely to Increase and suggests that the US "consider the possibility of international intervention to bait the genocide already going on." (CIA Comment: CIA believes that this conflict is becoming serious, and that the present Burmese Government Is not only incapable of csntrolling the situation but is perhaps even unwilling to seek a peaceful settlement between Karens and Burmans.) -2 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 CVO TOP ET 14.4 GENERAL 28 JAN 1949 898 1. New US awroach to Berlin currency Problem�The Depart- ment of- State has instructed US Embassy London to obtain British comments on a modified US plan In regard to Berlin currency. According to the plan, during the current Geneva meeting, the US, the UK, and France would: (a) again stress their objections to the UN Neutral Committee's preliminary plan; (b) urge reconsideration of the US counterproposal as a "stand-still interim" solution affording protection to all four powers in a split city, to be accompanied by an agreement to lift the blockade and hold an early meeting of the Council of Foreign Ministers; (c) indicate their will- ingness, upon the lifting of the blockade, to negotiate through the military governors reunification of the city administra- tion; and (d) express their willingness, if these negotiations are successful, to reconsider the Neutral Committee's preliminary plan, or a new plan, for the use of a single currency under a uniform city administration. The Depart- ment feels that this "new approach" would place the western powers on record as proposing a positive workable arrange- ment and would furnish the US with a concrete program for future discussion in the SC. 2. tlorwav's Position in defense discussions weakening-- Norwegian Foreign Minister Lange Ms expressed to US Ambassador Bay in Oslo concern that his fight against Swedish neutrality and in favor of the Atlantic Pact has been made more difficult by recent press reports under a Washington dateline implying that the US might supply defense equipment to a neutral Scandinavian bloc. Bay believes that Lange's present leadership in the Scandina- vian defense talks may be threatened unless the US again makes it clear that a neutral Scandinavian bloc cannot expect more consideration than Scandinavian nations singly. Lange also reported increasing opposition in Norway against an alliance with the west. - 1 Qocuraent No. NO CHANGE in Class�. 0 __�,---- THE C.I.A. HAS NO OBJEC � U DECLAc: - TO IHE DECLASSIFICATIOei'.. TS S THIS DOCUMENT, � Class. 1," e:'� ECRET - � ' ' - 77 NO. Ni '> Authg D te: 7 MAR 1978 By; 5 - T5 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 00649334 tot* TOP NET **4 FAR EAST 3. CHINA: fQ1Tatwan rem:_ted--According to the US Consul General in Slunglial, the Mayor of Shanghai, In a conference on 28 Jaimstry with US officials in that city� stated that Taiwan was planned as ajgsL Nationalist bastion . and indicated that the Chinese Irforce and A`e vy would with- draw to Taiwan to prevent a Communist invasion. The lilayor requggted that as much ECA aid as possible be diverbad to Taiwan and also raised the question of reestablishing trade between japan and 'raiivan. He added that the Nationalist Government had already shipped 1,000,000 ounces of gold to Taiwan and that he was asking that 500,000 more ounces be transferred there from the remaining government stocks In Shanghai. Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 29 JAN 1949 A 444. 50 THE C.I.A. HAS NO OBJECTfOic3 99 TOP?' RET TO THE DECLASSIFICATION OF ..P). THIS DOCUMENT. GENERAL No. OA 1. Bunche reports "complete impasse" at Rhodes--According to the US Igegation at the UN in New�York, Acting UN Mediator Bunche has_w_Kessed to UN Secretary General Lie his "inescapable conclusion" that the prospects for an Israeli-Egyptian armistice agreement at Rhodes are "virtu- ally nil." Bunche reports that although he has exerted every effort to induce concessions, both delegations have remained adamant Bunche acj_c_is that despite this "complete impasse," neither delegation wishes to take the responsibility of walk- ing cut of the conference. Bunche reports that as a last alternative he will seek an indefinite adjournment of the talks rather than their termination. Bunche suggests that some form of Security Council intervention ncrw�might be helpful, pointing out that the possibility of renewed fighting will be greatly increased if no agreement is signed. 2. Views on US policLtoward Asia--US Ernbassy_Moscow believes that the ICitionalist collapse in China calls for an urgent review of US foreign policy in Asia. According to the Embassy, it would be tragic for the US to miss the opportunity afforded by the crysializa_gon of forces in Asia around India, as revealed by the apparent sober accomplish- ments of the New Delhi ConferenceAlthauWaware of the difficulties involved in assisting anfr regional Asiatic group- ing, the Emil:any considers that the risk of Communist domination of all Asia must be weighed against the risk of disagreements with Weelern European nations having colonial interests there.( The Embassy recommends that the US take positive dramatic steps to emphasize US under- standing of and politicareripport for genuine nationalist movements in Asia. According to the Embassy, such steps should be backed by a long-range constructive program of economic technical assistance. z _.) OBJECTION 0. : .3IFICATION _ � 1 � NO CHANGE in Class. )10. DECLASS/TITT Document No. OVie .7""MINNO 0 OBJECTIO Class. CI', � . , , --�� TS iTIV ,Tc.33IFICATION0 :: - � � 77 ,4 -cP , �, Z. _ _ _ ,.....aIT. ...I 1-u CRET Auth: Date :A_Z_MAR_EN _Lj0 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TOP ET , '444 NEAR EAST-AFRICA 2. PALESTINE: Rhodes deadlock continues --US E mbassy Cairo reports tbai Egypt Is unwilling to accept, as a basis for an armistice agreement with Israel, the partial with- drawal of Israeli forces from the key road junction of El Auja, as proposed by Israeli officials. The Egyptian Government informed the Embassy that it could not con- sider the El Auja proposal until Israel Ms demonstrated Its good faith by an tmcanditional release of the Egyptian garrison at Faluja, "as already agreed upon between Egyptian and Israeli Rhodes negotiators." (The Depart- ment of State had instructed US Embassy Cairo to express to the Egyptian Government the earnest hope that Egypt would try to reach an armistice agreement with Israel on the basis of the proposed El Auja compromise.) -2- 0 TOP ET 11.' � Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 EUROPE 31 JAN 1949 I. USSR: :y.� -US Embassy Moscow � n :I-1i .4 I press inbtrview reflects Soviet COMM ever the rapid tievekipment of an effective Atlantic dustily auks and the Kremlin's deter-. mination to frustrate or delay tts conehtsion. The Embassy further believes Eat the interview is a part of Ow "peace often - she" and was timed to divert attunes from the bleat Soviet deutsche to Norway and the Kremlin's attack on the Atlantic Pact. In the Embassy's opinion, the vigor of the Soviet re- action to "an obviously defensive pace arouses suspicions concerning Soviet intentions, which should be exposed through ali available US media of information. (CIA Comment: CIA agrees that Stalin's latest inter- view is deeigned to prevent or delay western defensive efforts. CIA also believes that the interview reflects continued Soviet concern over the pueblo formation ci a west German gov- ernment.) Evidence of Soviet_participation in the Greek fighting-- The US Military Attache in Bucharest-has learned from a reliable source that: (a) 'wounded Greek, Rumanian, and Soviet partisans, including Soviet arra officers, have been transferred to Rumanian hospitals from the fighting front In Greece; and (b) Soviet planes have been evacuating Greek and Russian wounded men and have flown medical and military supplies into Greece. The MA points out that this is the first definite evidence of Soviet participation in the Greek fighting. (CIA Comment: CM has received no other evidence et Soviet or Rumanian military participatkin in the Greek fighting-) THE C.I.A. EAS NO OBJECTION TO THE DECLASSIFICATION OF THIS DOCIMIRNT. NO. - 1 - Document No. 613 9n0 3- TS Z NO CHANGE in Class. 0 fl DECLAS:317TED Class. Ci"..7 `.. *,�,1 TS S 4 1.- ,�� 77 Auth: Li _lie/ 3 Date: 1 7 MAR 1978 BY: 02; Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 eitt9N � TOPS MEM 1 FEB 1949 901 I. EF and isaneerao:rvenp: =sal os Death airren:go-bas 5 - S US liabassy BIM sad Frew* s -5 , lave impressed their approval of the modifted US plan regard- thar the Berlin currency prdAsin. The British and French opestion 'Mo(her the prapolal can phi florist acceptance but gay regard it as a good tactical move. Acoording to IX Repressatative Esapp in Ousels, the Soviet delepte bts IIIII flatly asserted that the 30 jiusery interview "makes no dertnio to committee watt." Macy empresses the Wow tat the Soviet representative may bale been aught without instroations and indicatom that bother clarification is beteg sought. NEAR EAST-AFRICA 3. IRAN: 138 reply to Elbah's wary toncerning more military aId s- is Tile Iranian Ambasssdmr thirashIngton is, on behalrollb Shah, inquired of the Department of State whether the US is villing to provide Iran with military assistance on the "Greek- Turkish model." in transmittthg Ms information to US Embassy Tehran, the Department tndicates tat the Iranian Ambassador was told that no definite answer could be given at this time because of: (a) lack of imowledge about the availability of funds and equipment for meeting the enormous world-wide demands being made upon the 1/8; (b) the necessity of wiz for Congressional authorisation of foreign military aid; and c) tbe expectation that ban's ports and transporta- tion facilities will be fully occupied this year In handling the current arms program's shipments. THE C.I.A. HAS NO OBJECTION TO THE DECLASSIFICATION OF THIS DOCUMENT. NO. OA Document No. 0A q NO CHANGE in Class. 0 0 DECLASSI717D Class. CP.'�' TS S ;� 4 p-: 77 Auth: D. � - Date: 144dAk_iti.___. By: Og OA, TOM CRET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 GENERAL 2 FEB 1949 902 1. British views of recent Soviet moves�According to US Embassy Larnaca, the Britkb foreign Office regards recent Soviet moves (winding the 28 janury statement on Western Union and the Atlantic Pact, the nate to Norway, and the 30 'miry Stalin interview) as part al the saw Soviet "peace offensive" to handicap or prevent further consolidation of the west. The Foreign Office emblem that the underlying reason for Soviet action at this time is the Kremlin's serious concern over the success at the Ituropean recovery program, the recent decision of the Western Unice powers to establish a European council, and the tmminence of the completion of an Atlantic Pact. 'the Foreign Office concludes that the pres- ent Soviet moves should prompt the US to "key up" all activi- ties building the strength of the west. 2. Norway ready for Atlantic Pact discussions--US Ambassador tiny in Oslo Ms been informedly Norwegian Foreign Minister Lange tint the Scandinavian defense conference failed to reach an agreement because of Norway's determination to remain free to initiate and pursue military discussions at arty time. Lange indicated that although the Government is opposed to providing foreign military bases in Norway, the licewegkum are now premed to initiate conferences with the western powers soon in order to plan military strategy and defense. Lange is extremely doubtful that the Danes will Join an Atlantic Pact because be believes such action would split the Government party through the middle. Denmark� � N _ma North Atlantic decision�US Ambassador es ses the view tint no clear decision will be made on Denmark's position re- garding the North Atlantic Pact for some time because of . 149-5-zc3sr,. euument No.: 4,0.41141 -- r, IftfAVVWi6.4 aN9k .114, ,NO CHANGE in Class.) SECRET Auth: � � Ef/3 t a 1/A5AR 1978 - Approved for Release: 2018/11/19 006749334 TF CiA - S 110 5- rs Approved for Release: 2018/11/19 006749334 the hope that still Was mow Danish officials that the VS will ghe its blessieg to a neutral floandfnovian bloc. Marvel considers that Deans* will empress this hope iv Washington id* the supporting argument that Danish adherence to the North Atlantic Pact would bring on a governmental crisis and cans* new electioss which would give radical and Communist parties oulticient galas to assure Communist repreemdation an perliamentary com- =Mess. Marvel buther believes ltat I this hope is en* tinguished, Denmark will, after a period of "mourning," seek ?forth Atlantic membersidp without Owing any serious Internal repercuseions. -2 Approved for Release: 2018/11/19 006749334 fl Approved for Release: 2018/11/19 006749334 Nts'- TO ET C. ANNEX, 3 February 1949 STALIN'S PRESS INTERVIEWS The dramatic and unprecedented intensification of the current Soviet propaganda"peace offensive," as revealed by Stalin's action in proposing a meeting *li President Truman, reflects the grave and increasing amdety of the Kremlin over the progress of western defensive planning and economic recovery in western Europe. Stalin's inter- views also reveal the conthmed determination of the Kremlin to prevent the containment of the USSR by an increasingly strong western bloc. By presenting his proposal for a Truman-Stalin meeting through the press rather than through official channels, Stalin Ins not committed the USSR to any speci- fic action and Ins been able to exploit the hope of the' world for peace. The insincerity ci Stalin's proposal 113 revealed by his refusal to meet President Truman outside the Soviet orbit, which is actually an attempt to create the impression that the West must go to Stalin. Although Stalin's health might keep him from making the long Journey to Washington, it presumably would not prevent him from going to a nearby country outside the Soviet orbit. Moreover, if the Kremlin were sincere in its desire to meet the West halfway, Stalin would not have made his proposal to the US alone. This approach was undoubtedly designed to create disunity among the western powers and to arouse the suspicions of the non- Communist world concerning the good faith and reliability of the US. Thus, although the Kremlin would welcome a Truman-Stalin meeting on Soviet terms, Stalin's recent statements offer no evidence of any change in basic Soviet policy toward the West or of any relaxation of Soviet efforts toward the expansion of world Communism. Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 In its timing; Stalin's interview appears to have been motivated primarily by the rapid development of the Atlantic Pact. Soviet concern over this development had already been expressed in the Kremlin's blunt note to Norway and In the recent Soviet "White Paper" on the Pact.. Although the USSR, owing to the proximity of Norway, is unquestion- ably dishwbed over possible Norwegbin adherence to the Atlantic Pact, the latest Soviet maneuver reflects Soviet determinants to prevent, delay, or at least minimise, the entire western defense effort. � ,� Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 GENERAL 1. Denmark desires to present defense Arabians to 115-11S Ambassador Warm' copenlageniii isarnecubit the final meetbg of the recent ficandisavies defense discus- sion called for a presentation to the 08 and UK of security problems special to Scandinavia. Marvel indicates that Denmark considers inch a "day is come a prerequistte to its decision on participation in the North Atlantic Pact discussions. Marvel believes that Denmark should be given a bearing in order to strengthen the Danish Prime Minister's hand in securing his Government's approval for Danish participation in the Atlantic Pact discussions. He also suggests that if an thvitation to these discussions is presented to Norway, Denmark should be given a simul- taneous invitation. Ireland to reject Atbutic Pact membership�Trish Minister for Ezterl Affairs Bharat has iniormed US Minister Garrett that the Irish Government can never enter any defense pact to which the UK is associated so long as Northern Ireland remains under British control. MacBride added, however, that in replythg to the US aide memoire concerning Irish participation be "proposed to keep the door open so as not to make the answer entirely negative." 2.8.sees little es 3 FEB 1949 903 6-7,5 4 to Western Union� S - TS Kirk in Brussels his deep concern over the lack of progress toward increasing the actual military strength of the West- ern Unica. Speak remarked that in existing defense arrange- ments there seemed to be "too many generals and no armies whatever." In particular, Spank expressed his dissatisfac- tion with: (a) the failure to allocate to the five Western Union powers individual responsibility for the manufacture and supply of weapons; and (b) the lack of coordination among Western Union military staffs. 3ocument No. 01(0 ... I ..N0 CHANGE Class., 0 0 DEcr,Asc:7.Tr) class. C.� � ---); TS � , .� 111.7.- 77 OUT:7/1,7763 � � - - Date:p.2 MAR 1978 B4,7; THE C.I.A. HAS NO OBJECTION TO 74E DECLASSIFICATION THIS DOCUMENT. 110. 3 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 /7451'1 TOP ET BOSOM a. AMIGA: --113 MOW 1111 osy doubt ibe serious de** d *slid= to coschade as Avalress etre* St is to the idausst et the mestere posers is deenoweirste os awry wale occasion thst they vest a astiosed viddi would safeguard Austrian trim* IN that dangtirS bhereatIa the waft's& ossegoties bras cos be reduced to a astabous if the trysts settles Soda ebbs to Gerson meets and establiebse adulate hobbit security forces. Se caoludes thst Soviet oi,oellies to the possibility el Ambles close Mattes with the western securdy system, which be believes can Mose parastee Austria's long-term aecurity, may be do most serious obstacle to a treaty. � Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 50 #1.\' TOPS 4 FEB 1949 904 EUROPE - 1. USSR: Moscow mee of Soviet-Satellite milt leaders-- s US Embassy 'oscow are ere imPTY level Czechoslovak and Polish mftitary delegations have arrived there. The Embassy believes that an "elaboration of Soviet-Satellite military integration" may be the next step after the recent establishment of the Council of Mutual Economic Assistance. The US Military Attache in Moscow suggests that a conference of Soviet-Satellite military leaders may foreshadow the announcement of a military pact which would be analagous to the mutual aid council in the economic sphere. (CIA Comment: CIA believes that the formation of a defense council is the Kremlin's next logical move as a countermeasure to the North Atlantic Pact. However, such a defense council would mean little more than a formaliza- tion of the existing integration of control of military forces.) Further Kremlin overtures predicted--The US Mili- tary Attache in Moscow, in an analysis of Stalin's second press interview, predicts that the Kremlin will make "further overtures" in the near future. The MA believes that the Soviet and Satellite populace, and perhaps a sizable segment of world opinion, will accept the Soviet-inspired thesis that "Stalin strove for peaceful settlement and Truman refused." (CIA Comment: CIA believes that the Kremlin will make addftional propaganda overtures in an effort to obtain US agreement to enter into bilateral negotiations with the USSR.) NEAR EAST-AFRICA 2. PALESTINE: Israeli steps toward absorb rusalem-- US Consulate General in lerusalem expresses the view that the extension of Israeli civil law to the Jerusalem area is Document No. dAi. NO CHANGE in Class. 0 DECLASCI.-2Tr.7) .r0 Class. ID: TS S ss, 4 Apr 7'7 cREArth: � � . 77%1763 Date: 17 MAR 1978 By: 0 a; THE C. I,!L. I;D oBsEcTIOR TO 7HE DECLASSIFICATION OF THIS DOCUIGAT. Zi0.. Odi � - 1 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 tantamount to incorporation of the Jewish-held sections of the city into the state of Israel. The Consulate declares that this action "faces the UN and US with a virtual faft accompli." In the Consulate's opinion, the Department of State should officially declare that; (a) US de jure recognition of Israel does not extend to the incorporation at any portion of Jerusalem into Israel; and (b) the US firmly supports the UN view that Jerusalem should be an international city. Transiordan favors partition of Jerusalem�US Representative McDonald in TeL Aviv has been reliably Informed that King Abdullah of Transjordan recently ex- pressed his opposition to the intentationalization of Jerusalem and his preference for part:ton. Abdullah repoftedly favors the assignment of part of the city to Transjordan and part to Israel, with both parts remain- ing under some form of UN supervisim Approved for Release: 2018/11/19 006749334 � Approved for Release: 2018/11/19 006749334 'CO GENERAL .1. Norway wants Atlantic Pact details from US--According to TM Am,asaadorbay in Oslo, theallorweglan Parliament las Instructed high Norwegian officials to obtain more complete Information on the Atlantic Pact from US officials in Wash- ington. Bay was told that a further objective of the mission was to secure information which would enable the Govern- ment to overcome party opposition to the Atlantic Pact. Pro-Atlantic Pact Norwegian officials reportedly hope that a US invitation to the discussions will not be extended to Norway before the conclusion of the Labor Party Congress on 20 February. (CIA Comment: The Secretary General of the Nor- wegian labor Party, who is extremely pro-US, bas been given the task of whipping into line the opposition within the Government party. CIA believes tbat he can succeed if he Is able to present authoritative information on Norway's obligations and benefits as envisaged under the Pact.) . THE C. LA. 7.13 :;0 OBJECTION TO 7HE NT:" P.ZSIFICATION OF THIS DOCUM.41T. NO. 073 Document No. o25 NO � NO CHAIIGE in Class. 0 .DECLASSI7:17) Class. .7.): TS S 4 frpr 77 � Auth: , 7712.783 Date: By: OX 1 2 at, Approved for Release: 2018/11/19 006749334 5 FEB 1949 905 Approved for Release: 2018/11/19 006749334 1. FRANCE: Atbintic Pact prime Communist target--The US Military Attache in Paris has learned from a reliable source that the French Communist Party has received Cominform instructions to drop the slogans against the European recovery program and to concentrate on the "fight � against the Atlantic Pact and Western Union." The MA re- ports that in the campaign for the March local elections in France, the Communists will stress Soviet peace efforts, as opposed to the "war plans of the Anglo-American im- perialists." � (CIA Comment: CIA believes that the French Com- ratmiata will, in view of the close connection between re-; cowry and defense measures, continue to work actively against the European recovery program despite the anticipated shift in propaganda emphasis.) NEAR EAST-AFRICA 7 FEB 1949 906 2. PALESTINE: Israel noncommittal to US compromise appeal-- Israeli Foreign Minister Shertok -has 6een preaenied with a memorandum from the US Department of State expressing the earnest hope that Israel will follow Egypt's lead in accept- ing UN Acting Mediator Bunche's draft proposal at Rhodes as a poesible bass for agreement. McDonald in Tel Aviv reports that Shertok, before departing for a Cabinet meeting at which the US memorandum was presumably to be discussed, re- sponded by pointing out that Israel had already made several concessions and by =pressing the view that the Buische pro- posal called for abandonment of vital strongpoints so as to leave Israel "wide open" If Egypt should resume hoatIlftIea McDonald comments that he is uncertain about what results the US memorandum may have, hi view of Israel's "basic fear" of Egyptian strength. - Concurrently, Mark Ethridge (US member on the Con- ciliation Commission) transmits from Jerusalem the opinion of UN Acting Mediator Bunche that the Egyptians have made "very substantial concessions" and that an armistice would be in sight if the Israelis would do likewise. Document No. 02.ff THE C.I.A. HAS NO 01),TNdttor).,A TO 7HE DECLASSIFICATION OBr� THIS DOCUMENT. NO CHANGE in Class, 0 "ei) . f � ECRET 77 Avth :3 " 3 Date: 1AR 194_ By : hitmi - 5 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 SSYr TI CRET On German affairs. Sevin feels that agreement on the occupation statute and the west German constitution should be reached before the end of February. (CIA Comment: CIA believes that continued delays In reaching agreement on the German question will strengthen German opposition to the proposed tri-zonal occupation statute and increase German susceptibility to current Soviet propaganda against the formation of a west German govern- ment.). 3. GREECE: Pressure be exerted for lar r arm --US Ambassadordigay re � ree .rve ores US support of an enlargement of the Greek Army has been set off by the new Conunander-in-Chief at a recent meeting of the War Council. Grad Y indicates his deep disturbance over the line taken by the commander-in-Chief at that meet- ing in which he: (a) stressed that the army was not large enough to do the job expected of Greece by its "allies"; (b) reiterated Greece's 30 Sepb3n3ber request for a 250,000- man army, implying that the US had not given consideratkni to this request; and (c) quoted his letter of last fall threaten- ing to resign if he was not given a 250,000-man army within four months of taking office. Grady adds that the Commander- in-Chief has already forced the Government to call up con- scripts without regard for the ceiling on the army's authorized strength. (The present authorized strength of the Greek Army, Including the National Defense Corps, is 197,000.) Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TO' GENERAL GENERAL c: FEB 1949 9 1 7 1. Norway to delay reply to Soviet pact proposal--The Norwegian Foreign Office has informed US Ambassador Bay that Norway will "take its time" in replying to the Soviet proposal for a non-aggression pact. The Foreign Office reportedly indicated that time will be needed to study Norway's obligations under the UN and other intenational commitments. Bay empresses the Judgment that Norwegian public opinion stronly favors joining a North Atlantic Pact but the Government's generally cautious attitude suggests an extreme desire to beep its party ranks intact before embarking on a course which will irrevo- cably align Norway with the western powers. Soylet ggressionst No held unlikely--US unlikel --US Embassifig magi�Fe-1M- irlEtTir�WM0-1111�ugge orweg now to join the Atlantic Plitt will present problems for both the US and Norway. The Embassy considers that if Norway refuses, Soviet propaganda will be able to exploit this refusal as proof of the aggressive character of the Atlantic Pact. The Embassy adds that other prospective participants may conclude that, the Pact has not been adequately planned to provide effective security. The Embassy is convinced that the Kremlin will limit its retaliation to propaganda and hostile economic and political maneuvers and that no "disastrous consequences" will follow a Norwegian decision to join the Atlantic Pact. EUROPE 2. GERMANY: UK urges prompt west German settlement-- According to US Embassy London, British Foreign Minister Sevin believes that further delays in settling the west German question will result in "extremely grave consequences" for the western powers. Bevin is seriously concerned French obstructionist attitude in the current London meetings THE C 7.".S NO 0BJECTIOPte5 TO aIr SIFICATION Or THIS DOC,LI.L.I. ro. 0121) - 1 Document No. 630 S. TS - CIA - S - NO CHANGE in Class. 0 DECIJA:r T.T.) Class. ( ): TS S E: ), i .Apz 77 uth: DDA 77,1763 7 MAR 797bL_� BY-7-6TC� at 41, .ez 1 � Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 9 FEB 1949 50 9'8 FAR EAST 1. CHINA; Taiwanese becoming increasingly_restive--US Consul General Taipei expresses his view.: t: (a) the situation in Taiwan is deteriorating rapidly; (b) the Taiwanese are becoming restive and resentful of the Chinese military; and (c) any Taiwanese revolutionary action will probably be aimed at "wholesale sabotage" rather than a direct clash with the Chinese. The Consul General notes increasing evidence of Chiang Kai-shek's directing influence and points to a trend toward harsh police government. THE 70 OBJECTION TO l'HE D_C7..17-SIFICATION OF THIS DOCUMENT. no. tal� Document No.. 03/ NO CHANGE in Class. 0 DEC:MASY::::".7 D Class. ": � Auth Date: 1. 7 MAR 1978 TS S 4. ;p: 77 BY: Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 -41 GENERAL 1 0 FEB 1949 99 1. New 13r1tieh attitude on Berlin settlement--Accarding to US Embassy LoncGen, the lieGovernment has become con- vinced there is no hope that the UN Committee of Neutral Experts will produce an acceptable solution of the Berlin currency problem and little hope that the Soviet blockade will be lifted in the foreseeable future. The Government has therefore decided to: (a) press for the consolidation of the western position in Germany as rapidly as possible; (b) approve the introduction on 10 March of the west mark as the sole currency in western Berlin; and (c) take steps, to improve the British share of the airlift, which they realise may have to be continued indefinitely. The British are presently seeking French agreement regarding the Introduction of the west mark. 2. jcsjand undecided on Atlantic Pact membersbls--US Minister Butrick in Reykjavik las learned from Iceland's Foreign Minister Benediktsson that the neutrality movement in Ice- land has gained great Impetus and Benediktssan is not now sure that Iceland wishes to pasticirte in the pact. Butrick indicates that opposition to the pact has been expertly whipped up, principally by the Communists. He warns that there nay be a bare possibility that Benediktsson is attempt- ing to maneuver Iceland into a bargaining position. EUROPE 3, NETHERLANDS: Dutch CabinetIndonesia--US crisis r Ambassador Baruch bee-sbee informed by Netherlands Foreign Minister Stikker that a Cabinet crisis has arisen because of Stikker's insistence that the Government stop "flouting the UN and approach the Indonesian problem realistically and cooperatively." In reporting that all the ministers have threatened to resign, Baruch comments that the situation looks like an "impasse." 03; � No, ;IC 3I". (11.- :3. 0 THE C.I.A. HAS NO OBJECTION TO HE DZCIASSIFICATION OF THIS DOCIMENT. NO. lit% -1-. ^ ' CR ET %1:;up.:fhe f9/8 Approved for Release: 2018/11/19 006749334 r0" - i 0 3 By pg - S Approved for Release: 2018/11/19 006749334 Otb TOP RET �?"e� (CIA Comment: CIA believes that the fall of the Government is unlikely, although some Cabinet changes are possible. The collapse of the Government at this time would not result in any clarification of Dutch policy in Indonesia.) THE AMERICAS 4. ARGENTINA: Peron concerned over financial crisis- TO'lowing an 8- -F-e ruary meeting on the Argentine economic situation President Perm offered to resign but was "prevented" from doing so by his economic advisers. the Argen- tine National Economic Council has been in almost continuous session over critical economic problems and express the belief that the increasing economic and political unrest may lead to a "major government shakeup." US Embassy Buenos Aires comments that even though the situation is tense and the administration is deeply concerned, there is little likeli- hood that Peron will resign. (CIA Comment: CIA concurs in the Embassy's estimate. Although the present crisis may bring a major reorganization and re-orientation of the Argentine Government, Peron's offer to resign was probably a gesture to force alignment behind his position on a major issue of economic policy.) -2 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 GENERAL 11 FEB 1949 910 1. Evidence of material Soviet aid to Chinese Communists-- US Assistant Military Attache Barren in Peiping reports that he has seen "hundreds of Soviet-made trucks" in the environs of that city. (CIA Comment: This eyewitness report by a reliable US observer is the first conclusive evidence that the Chinese Communists possess Soviet materiel in volume.) 2.e Eritrea urge--US Ambassador 3 Dunn in Rome-fin& "str grounds ounds for review" of the US position favoring the cession of the bulk of Eritrea to Ethiopia. In noting the "realistic appraisal" of the US Mission at Addis Ababa, which questions Ethiopia's com- petence to give Eritrea "a reasonably efficient government," Dunn emphasizes the extreme importance of this issue to relations between Italy and the western democracies. He therefore urges that serious consideration be given to a UN trusteeship over Eritrea by a group of three or more com- petent nations, including Italy. THE C.I.A. HAS NO OBJECTION TO HE MCIASSIFICATION OF THIS DOCILIENT. NO. 62.1 Document No. ov NO OFIANTE in Class�, 0 , Clans. TS 1r 77 Auth: 7 MAR-197-8 By g Date: � 111N. v4aal TOP CRET ' S. Approved for Release: 2018/11/19 006749334 TS Is fl Approved for Release: 2018/11/19 006749334 EUROPE 1. PORTUGAL: Possible Communist-inspired disturbances-. 3.3(h)(2) US Ambassador MacIfengh transmits a repor that Portuguese police expect the Communists to initiate a revolutionary uprising during or following the regular presidendal elections scheduled for 13 February. 3.3(h)(2) the police believe that the Government can contzoi such an uprising. The Ambassador comments that practiced observers believe the opposition lacks the popular leadership necessary for an effective coup but that police precautions are warranted in view of possible election disturbances and Communist exploitation. (CIA Comment: Although election disturbances are possible, CIA believes that government forces are adequate to control the situation and that Portugal's cooperation in world economic recovery and western defense will not be imperiled.) THE C.I.A. !LIS NO OBJECTION TO 7HE DECLASSIFICATION OF THIS DOCUMENT. Document No. 63 ( 12 FEB 1949 911 NO CHANGE in Class. 0 ElDECLA (lss. . TS S NO. 0 ti � , ,Apr 77 � Auth: DDA 77'1763 Date: 7 1978 By; , OZt Approved for Release: 2018/11/19 006749334 �,) Approved for Release: 2018/11/19 006749334 50 TOP GENERAL 14 FEB 1949 912 1. Retorted shift in Dutch policy _on Indonesia�The Netherlands Vtreign Office has informed US Ambassador Baruch that as a result of the resignation of the Minister for Overseas Terri- tories, Dutch policy toward Indonesia will probably develop along the lines laid dawn by the Security Council resolution, particularly with respect to both liberation of Republic= offi- cials and participation by the UN Commission in the negotia- tions for the establishment of a federal Indonesian govern- ment. Dutch Foreign Minister Stikker subsequently told Baruch that he will accept the resignation of the Dutch High Commissioner for Indonesia if the Commissioner refuses to release the captured Republican leaders. According to Baruch, Stikker 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 1 jelly. 2. US plan for Berlin currency�The Department at State has Informed US Embassy London 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 at 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 el -5 5 - TS 3. GREECE: US again opposes Greek Army increase�The - S Department of State has instructed US Ambassador 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-Chied Papagos, would: (a) be THE C.I.A. .1T.0 OBJECTION. TO 71-17. :IFICATION OF THIS DOCILLL-7..V. Document No. 0 _ jO CHANGE in Class. DECY.L.4f:.." 77, . '11 TS S DDA 77 1-'7%1'3 77 91tEeT: 1 7 NI By OZ Li Approved for Release: 2018/11/19 006749334 �ft Approved for Release: 2018/11/19 006749334 TO RET unwarranted militarily; (b) impose an intolerable burden on the Greek economy; and (c) involve expenditures of money and materiel by the US which would be incompatible with a balanced program of foreign military aid. Grady Is also to declare that a deplorable impression has been created both by reports that the Greek Government is call- ing up conscripts without reference either to the authorized ceiling or to availability of funds and by the peremptory manner in which Papagos has implied that the acceptance of his present post was conditional on implementation of the proposed increase. NEAR EAST -AFKICA 4. PALESTINE: US-UK statement urged--US Ambassador Griffis in Cairo transmits his opinion (in which Mark Ethridge concurs) that no final settlement in Palestine can be reached prior to high-level agreement between the US and UK regarding: (a) Jewish-Arab borders; (b) rehabilita- tion of refugees; and (c) internationalization of Jerusalem. According to Griffis, the Egyptians, who realize other Arab states except TransJordan have little bother interest in the prob- lem, want to be "coerced" into a solution. Griffin, therefore, feels that a strong public statement made Jointly by the US and UK would go far toward promoting a settlement. Re adds, however, that such a statement would have to be backed by the strongest representations to both Egypt and Israel at the highest US and UK levels. Israelis re ted adamant at Rhodes-According to US Consula enera e em, c g Mediator Bunche has informed Mark Ethridge that the Israeli delegation at Rhodes continues to be completely adamant on all important points. According to Bunche, the Egyptians assert they will make no more concessions until the Israelis "throw in some." - - %4 TO CRET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 606749334 5U TOPS 144 . tz) GENERAL 15 FEB 1949 913 1. Norway increasingly concerned about USSR intentions�US EmlbssEry Oslo observes a growing Norwegian apprehension of future Soviet intentions and reports that a high Norwegian official has expressed concern over possible Soviet seizure of north Norway or Spttzbergen. The Embassy expresses doubt that such action is likely but concurs in the view of the US Military, Navalland Air Attaches that the USSR will soon make "some move in relation to" Spitsbergen. (CIA Comment: CIA believes the Kremlin is unwilling to assume the risk of general war which would be involved In any direct action against Norway or Spitzlbergen. CIA con- siders it likely, however, that the USSR will again bring up the question of SpUzbergen in a further effort to intimidate Norway.) 2. British Norw French views on North Atlantic Pact-- s - Ts , :ri ore.s. ; ;Tin � �sy when Norwegian Foreign Minister Lange recentlyn met with Bevin, he did not appear "too discourazed" over his visit to Washington Lange indicated that Norway's decision on the North Atlantic Pact would probably have to waft until a final wording is available and told Sevin tint he is considering the possibility of having Norway come in later rather than as an original signatory. The British Foreign Office emphasized to the Embassy that any further whittling down of the terms of the Pact would be dangerous and that speed in its conclusion was essential. US Ambassador Caffery in Paris reports that the French would deprecate any changes in the present draft of the Pact and consider it to be of primary _importance tint there be no "stop, break, or undue delay" in negotiating it. TO 7E3 D. ":,-..:..:::::FICATION OF- 1 - Document No. 63/ -�-�-------- TILE CJ 'C3 7^.5 .70 OBJECTION THIS DoCaLui.r. NO CHANGE in Class. 0 NO. A2Lt._____ 0 l::] DECTJASL12.7.77) 7 -0,04,4, Class. C.= ...., :0: TS S 'Io DDA :-.:-_-:::,:.,, 4 r 77 l'p .-.i TO i� Date: CREATilth : 1D71f.AMAI. 197'8 77Bc17: 6362 I Approved for Release: 2018/11/19 006749334 3.3(h)(2) Approved for Release: 2018/11/19 006749334 RET Co FAR EAST 3. CHINA; tots ask US to delay Tsthgtao withdrawal-- US Ambassador 1f. transmits a reque�rom Acting President Li Tstutg-Jen that the withdrawal of the US Navy from Tsingtao be delayed for a few weeks. Li reportedly feels that the continued presence of the US Naval base at lisingtao strengthens the position of his Government during the critical phase of peace discussions with the Comnumists. Stuart believes that the US should support the Acting Presi- dent In any reasonable proposal which may be helpful to the Nationalist cause at this time; he suggests that the with be slowed down as much as may be operationally feasible so that some US naval units will remain in Tangle� over the next few weeks. .2 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 50 'RAP GENERAL 16 FEB 1949 914 1. Austrian security declaration suggested--US Legation Vienna suggestS that, becausitb�StR is extremely eensitive con- cerning possible Austrian incorporation into the western security system, no move should be made during current negotiations for the Austrian treaty to include Austria in the Atlantic Pact. The Legation feels, however, that Austria must eventually be clearly incorporated into the western security system aid suggests, therefore, a gradual integra- tion, commencing with a tripartite declaration on Austrian security when occupation troops are withdrawn. EUROPE 2. USSR: Soviet motives in arrest of US writer�US Embassy Moscow suggests that the arrest of Anna Louise Strong may have been prompted by Kremlin disapproval of her recent articles on China, which emphasize the "independence" of Mao Tse-tung and the Chinese Communists. The Embassy points out that Miss Strong has been unable to obtain a Soviet exit visa to go to China and that, because of her arrest as a US spy, she cannot be received by the Chinese. or Satellite Communists following her release. The Embassy warns that the incident may be a deliberate plot but indicates that Miss Strong's views have been becoming increasingly critical of the USSR because of her difficulties in maintaining personal contacts. NEAR EAST-AFRICA 5-7-6 - s 3. INDIA: Reaction to alleged US statements concern Japan� e - s US Ambassa d or Henderson reports concern overindlan press accounts of alleged statements in a Tokyo press conference by "a high US military authority," who reportedly implied Document No. O31 THE C.I.A. TY:.;1 03JECTION TO 7HE DECLASSIFICATION ONO XHANGE in Class. F- THIS DOCUMENT. �0 DECLASSIFIED NO. Class. CII.A.tr:2;.D 2.0: TS S DD it Mo ,4 Apr 77 D A REG . .77/1763 - MAR 1978 By: � oat Auth: Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 . � ot., TO RET that the US has no moral obligation to protect the Japanese people from Soviet domination and that US forces might. soon be withdrawn from Japan. According to Henderson, the Indians find a strildng contrast between this apparent willingness to permit the USSR to take over Asian peoples and the reiterated determination of the US to defend Euro- pean peoples from Soviet aggression. Henderson requests authority to inform the Indir Government that the US has made no decision to withdraw its forces from Japan and would not make such a decision without entering into full consultation with other interested powers. THE AMERICAS 4. ARGENTINA: Economic-political crisis remains serious-- The US Military Attache in Buenos Aires reports tfiat the current economic-political crisis remains tense and indi- cates that although President Peron will probably be retained, some of his close political associates will be forced out of office. The MA and Charge Ray both report that the Army is exerting pressure on Peron to force Senora Peron to dis- sociate herself from the Government and that Peron does not know how to deal with the situation which has developed from acute eccnomid and labor problems. -2 Approved for Release: 2018/11/19 006749334 4 A Amy - s e / � ail! Approved for Release: 2018/11/19006749334 ob GENERAL 17 FEB 1949 I. Possible Soviet taboo. concentration near Finland and Norwa he iy! ry c in Paris learne om I C French sources" that four to five divisions of Soviet troops have been concentrated on the northern Finnish and Norwegian � borders. French officials reportedly interpret this concentra- tion as a threat intended to influence Norway against ioinine � the North Atlantic Pact. WO MP (CIA Comment: CIA believes that if such Soviet troop movements are taking place, they are probably an intensifica- tion of the war-of-nerves against Norway, not an indication that a Soviet occupation of Finland is contemplated now.) 915 2.- -0_311s_gocern over Dutch plans for Incloneia�The Depart- ment of State has infornie-d-thiAlt-ffeU,--gatiol-i-fo the Good Offices Committee in Batavia of the following US-UK views concerning new Dutch plans for Indonesia: (a) the US considers that the Dutch plans neglect the most pressing problem in Indonesia�the need to.halt the fighting; (b) the US also considers itself obligated to support the 28 January Security Council resolution, which has the merit of setting a specific date for the transfer of sover- eignty, as opposed to the indefinite Dutch plan; and (c) British Foreign Secretary Bevin has misgivings about Dutch Intentions,,, as evidenced by the plan and feels they provide no proof that the Dutch are considering the Indonesian point of view. The Department suggests that the British are Increasingly concerned over the possible fall of the Dutch Government, a development which would delay resolution of the Indonesian problem and have serious repercussions on European recovery and the Atlantic Pact. THE C.I.A. HAS NO OBJECTION TO HE DECLASSIFICATION OF THIS DOCUMENT. No. c'ament No. 63/ NO CHANGE in Class.; E] DECT.AEST774P, C e, -rs 3.3(h)(2) C/14- 5 4 Apr 77 Auth � DrIA ; '77/1763 fqr By: Approved for for Release: 2018/11/19 006749334 � Approved for Release: 2018/11/19 006749334 50 GENERAL 18 FEB 1949 916 1 Nome enc d b Wash on visit�US Ambassador s T5 y �.o earn orw n delegation which recently accompanied Foreign Minister Lange to Washington feels that the visit was worthwhile and considers that the US position is now "crystal clear." Norwegian officials are reportedly encouraged concerning progress on the Atlantic Pact and are reassured regarding Norway's advantages and obligations under the Pact. Foreign Minister Lange has given Bay the impression that "everything is going accord- ing to plan." 2. French disa ee with US-UK proposal on Berlin currency-- g rur r er enc ili- tary Governor Koenig has informed his US and British col- leagues in Germany that he could not agree to the US-UK proposal for initiating an exclusive use of the western mark in Berlin on 10 March. Koenig reportedly requested that this action be postponed until a decision has been made by the UN Security Council or, failing a reasonably prompt decision by the Council, until the military governors can reconsider the subject early in March. Koenig added that the US-UK proposal would link Berlin to the western zones, which was contrary to French policy. The Department Slate has instructed US Ambassador Caffery in Paris to join the British Ambassador there in press- ing the French Foreign Minister to accede to the US-UK pro- posals on this subject. 2 ament No. NO CHANGE in Class. THE C.I.A. T.L9S NO OBJECTION TO '1:13 D::CT.V:;SIFICATION OF rEar,ACE:1-7.-'7) THIS DOCUMENT. Clasz. NO. Auth DD1 : � : Apr 77 : -172.A ; 77 /1763 Date: MIR 1478 By; .021 Approved for Release: 2018/11/19 006749334 5 - T5 Approved for Release: 2018/11/19 006749334 � 47�4, 50 TOP GENERAL 1. French oppose introduction of western mark in Berlin--US sa or a ery r ansm a note rom e French Government in which the French express their dis- agreement with the US-UK proposal for initiating the exclu- sive use of the western mark in Berlin on 10 March. The French base their disagreement on the grounds that: (a) it would be inadvisable to take such a step while the Security Council is still considering the Berlin currency issue; and (b) the US-UK proposal would irrevocably link Berlin with the western zones of Germany. The French instead propose that the creation of a special currency for Berlin be studied as a possible solution; and if such a proposal is found to be unworkable that the western mark be introduced in a way which would not attach Berlin to the western German bank- ing system. The French recommend immediate study of their proposals in order to permit a final decision after the Security Council has had a reasonable time to study the pro- posals now before it. THE AMERICAS � 2. ARGENTINA: Possible request for US aid--US Charge Ray has been told by high Argentine officials that no solution to Argentina's economic problems is possible without US assist- ance. According to Ray, the Government is also expressing an interest in joining the International Monetary Fund and World Bank. Ray recommends that as a condition for a loan the US require the Argentine Government to: (a) remove major artificial restraints on trade; (b) restore freedom of speech and press; and (c) guarantee fair treatment to US business. Document No. 041/ THE C.I.A. HAS NO OBJECTION NO CHANGE in Class. 0 TO THE DECLASSIPICATION OF DECLASSIFIT.:J) THIS DOCUMENT. NO. 02.k Class. 'n: TS S D=1L 4 ..'pr 77 Auth: D1-"A 77Z1763 Date: 17 MAR 1978 By: on Approved for Release: 2018/11/19 006749334 19 FEB 1111111 917 Approved for Release: 2018/11/19 006749334 TOP RET GENERAL 21 FEB 19 918 1. French wee to Berlin currency plan--French Foreign Mini- ster Schuman has told US Ambassa or Caffery that he has in- structed his representatives to prepare for the adoption of the western mark in Berlin on 10 March. Schuman has declared, however, that he does not want this action announced until the Security Council has disposed of the Neutral Committee's report, which Schuman assumes will occur in the next ten days. Si TS 2. Dutch, Republican, British views on Indonesia--The US repre- C IArt sentative on the United Nations Commission for Indonesia /g expresses his conviction that Indonesian Republican leaders will continue to refuse negotiations with the Dutch until they , sis are: (a) freed from detention; (b) returned to Jogjakarta with full governmental authority; and (c) assured that official ne- gotiatioss will be conducted under the aegis of the UN Com- mission. US Ambassador Baruch at The Hague has learned from the Foreign Office that the Dutch Government will prob- ably accept UN supervision and will release the Republicans, but will find it impossible to restore them to authority at Jogjakarta. According to US Embassy London, the British will, though reluctantly, support the US in taking a strong line against the Dutch ln the Security Council, but they hope that prior to then. the Dutch will adopt a conciliatory position. 2'HE C.I.A. HAS NO OBJECTION 2'HIS DOCINENT. 2'0 THE DECLASSIFICATION 011 Document No. PP NO CHANGE in Class. 0 0 DECLASSIFIED Class. 011T:;.) TO: TS S DDA , 4 Apr 77 Auth: DDA FJ. 77/1763 7 MR i Date: By: slor tizt� RET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 5 'y TOP GENERAL 1, Yu 0:4_1_ Greek rebels reported stopped--The US Political Adviser in Trieste transmits a report ndicating that the Yugoslav Government is seriously concerned over the removal of Greek rebel com- mander Markos and is holding up all shipments of arms and materiel to the Greek guerrillas. all Yugoslays serving with the guerrillas have been ordered to return to Yugoslavia immediately. (CIA Comment: It likely that the Tito Government has responded to Markos removal as indicated.) EUROPE 2, FRANCE: Atm Chief of Staff threatens to res --The US Military Attach1n Pans reports�M rmy e of Staff General Revers has threatened to resign ff Defense Minis- ter Ramadier's proposal to reduce drastically the size of the army is adopted. According to the MA, Ra.madier . is demanding an army of 281,000 (exclusive of the forces in Indochina); Revers insists on 365,000 but would accept a minimum of 320,000. Revers believes that Ramadier's pro- posal would reduce the army below the size required for internal security. (CIA Comment: CIA considers it unlikely that the French Arm7 will be reduced sufficiently to impair the Government s ability to maintain internal security.) d.t.A. VAS NO 011VCTIOR TO 7HE DECLASSIFICATION OF THIS DOCUPLINT. -roctunent No. CHANGE in Class. 0 DECT../. :Tr of3 28 FEB 1949 919 c-7-5 Claz AR.rny-s *""*? s - - ,.7G3 Data :1 By: A23,1 ' Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 U Atr TOPS GENERAL 24 FEB 1949 920 1. UK proposes compromise with French on Berlin currency-- According to US Ambassador Douglas in London, tie British Foreign Office is proposing that the US and the UK inform French Foreign Minister Schuman as soon as possible that they will agree to a compromise plan on Berlin currency, calling for the issuance of western currency in Berlin inde- pendently of the banking system in the western zones. The British further suggest that the US and UK agree to delay the currency changeover until 20 March, thus conforming to the French desire that the Security Council be permitted to complete its action on the Berlin problem. The British pointed out to Douglas that they are making this proposal because they feel that a compromise to meet the French position is desirable in the interests of speedy action. EUROPE 26, FRANCE: Implications of Communist leader's statement-- US Embassy Paris interprets Communist Leader ThlirreTir 22 February statement as added evidence that the Kremlin Is demanding a return by the French Communists to a purer form of Leninist-Stalinist doctrine and tactics, including more aggressive class warfare. (Thorez reportedly sug- gested that if the Soviet Army were to invade Francetthe French people would take the same attitude as the people of Poland, Rumania, and Yugoslavia.) The Embassy further regards the statement as: (a) proof of Kremlin determina- tion to thwart the consolidation of western Europe even at the risk of losing popular Communist support in France; ale (b) a signal to Communist militants to accelerate sabotage of Ftench efforts to strengthen national defense. (CIA Comment: CIA agrees that Thorez' statement Indicates a further tightening of Communist discipline and a reduction of the party to its "hard core." Moreover, even tit d.T.A. HAS NO 01137CTION TO THE DECLASSIFICATION OF - 1 THIS DOCUMENT. NO. 0131 ,--ument No. 91( �..3 CHANGE in Class, 0 0 h TS S 77 --404.141 L.72, 7'7/1763 ECUVEITe :1_44;w4978_ By: Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 though Thor& declaration will apparently be detrimental to Communist popularity in France, he may have made it at this time in an effort to convince prospective members of the Atlantic Pact that France would be unreliable in a defensive alliance. CIA does not believe that widespread strike action is probable in France in the immediate future.) Approved for Release: 2018/11/19 006749334 Approved for Relnsf: 2,018/11/19 006749334 TO ET (E.,o GENERAL 2� FEB 1949 921 1. Norway indicates readiness to acce Atlantic Pact 1Jiassf(Ys1� iWfen orm .--11F�rweWrdielign Office that Norway: (a) will shortly be ready to receive an invitation to the Atlantic Pact discussions; (b) believes it impor- tant, from the standpoint of domestic politics, to participate in the negotiations; and (c) will have few comments to make dur- ing the discussions. The Foreign Office indicated a desire to be in a position to accept an invitation to the Washington dis- cussions at the time Norway politely rejects the proposed Soviet non-aggression pact. 2. US views on Dutch decision concern1n Indonesia--The Depart- ment of State has inform US representative tochran in Batavia that the Netherlands Ambassador in Washington considers that the latest Dutch plan for Indonesia rejects the idea of restoring the Republican Government at Jogjakarta. The Department believes that if this rejection of Republican restoration causes the Republicans to tarn down the new Dutch plan, the UN Com- mission for Indonesia should immediately try to bring about direct negotiations between the Dutch and Republicans to re- solve this point. The Department warns, however, that such negotiations must not commit the US to any settlement which differs from the SC resolution, unless agreed upon by both parties. The Department believes that neither party should allow Republican restoration to become so important as to frustrate the plans for an independent United States of Indo- nesia. THE C.I.A. HAS NO OBJECTIM TO 7HE DECLASSIFICATION OF THIS DOCUMENT. r)ocument No. h0 CHANGE in � ID DE27:1;.7.7TI.1 C132S. Auth s A . Date: 5 - 5 Class. TS S � 4 k p 77 .., 7'7/1733 Approved - Approved for Release: 2018/11/19 006749334 By: Approved for Release: 2018/11/19 006749334 bU TOPS 00" GENERAL 26 FEB 1949 922 I. Spaak urged to advise Dutch on Indonesia�The Department of State expresses to US Embassy Brussels the view that Premier Spaak is fully justified in his, recently evidenced anxiety over the financial effect upon Benelux of continued Dutch failure to solve the Indonesian problem. The Depart- ment points out that special effort is required from the Belgian Government if the consequences of Dutch intransi- gence are not to fall heavily upon the Belgians. The Depart- ment therefore expresses the hope that Spaak will urge the Dutch Government to go further than it has recently in offer- ing a basis for prompt settlement of the Indonesian dispute. The Department considers that the latest Dutch plan lacks "the essential ingredient" for settlement: the restoration of the Indonesian Republic as a governmental entity with some seat of authority. FAR EAST 2. CHINA: Soviet "evacuation warn ' from Pei in re rted-- The Assistant Naval Attache in Peiping repo a former Soviet Consul has warned Soviet citizens in the city to be pre- pared to evacuate to Manchuria on 24 hour notice,on the basis that war with the US is imminent. The Assistant Naval Attache, who regards this report as "probably true," suggests that this information "may be in line with the Soviet grab of Man- churia." (CIA Comment: CIA has no information with which to confirm or deny this report of an evacuation warning. CIA .does not believe, however, that the USSR is preparing to take precipitate action in Manchuria. Soviet political maneuvers designed to secure eventual Soviet control of Manchuria are apparently already in process, but these will probably con- tinue to be gradualistic, especially in view of the obvious complications that would ensue with the Chinese Communists If rapid action were taken.) 37)ocument No. TO H:C 7 --7TSCTION NO. CHANGE in Class. n r 7 ..".....1:131CATION OF . s � .6. THIS DOCUMENT, DEC NO. Class. TS S ' '17 EETJ yi 117(.13 r'Dat. - By: �2 -7-MARIOR Approved for Release: 2018/11/19 006749334 Approved for Release: 201.8/11/19 006749334 50 (ft) Ferr11 Ezr2,14...er GENERAL 28 res 1949 923 1. US trusteeship for Trip�Mania s gested-- ritish Foreign Secretary Sevin bas &sled US A ssador Douglas in London whether the US would be willing to reconsider the possibility of a US trusteeship over Tripolitania. Douglas believes that because such a trusteeship "would be acceptable to France and would be acquiesced in by Italy," the US might well re- consider. the matter. THE C.I.A. HAS NO 03TECTION TO THE DECT:A1-FiCATION OF THIS DOCUMMIT. Document No. 0417 NO CHANGE in Class.; 0 El DECLAS-7-- . - 3 TS S 77 Auth: /1763 IiitAR-tan � 4321 Date: By: e/A- 5 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 1 MAR 1949 >5' l 'E.4* IP-7!1:44. CRET 924 GENERAL 1. Belgium, France favor Norway inclusion in Pact--Belgian Premier Staalc has urged most strongly to US Ambassador Kirk in Brussels that Norway be asked to join the Atlantic Pact as a charter member. Spank feels that if this is not done, Norwegian Foreign Minister Lange may be "in gravest trouble." Spaak expressed the view that if the French were, as he understood, holding out for a similar charter member- ship for Italy, their position was "unfortunate and unneces- sary.'' According to US Ambassador Caffery, however, French Foreign Minister Schuman has informed the British Embassy in Paris that his Government's approval of an immediate affirmative response to the Norwegian Govern- ment is unconditional and not tied to the Italian question, although the French attach the greatest importance to an early and favorable decision on Italy. Document No. wig THE C.I.A. HAS NO OBJECTIONNO CHANGE in Class.; 0 TO THE DECLASSIFICATION OF D DECLASF T7-7; THIS DOCUMENT. NO. Oldil Auth: � Dat -bay . B Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 50 GENERAL 14 Denmark ma re est Atlantic Pact invitation soon--US A sa or Marvel in n has learnecriSt the Danish Prime Minister has recently been assured of domestic political unity on the question of Danish inclu- sion in the North Atlantic Pact. Marvel therefore expects that following a meeting of the Foreign Relations Com- mittee on 2 March, Denmark will request an invitation to join in the discussions on the Pact. 2. US sweats Dutch complmaLston Republican capital--The Department ()Mate expresses to US Representative tochran on the UN Commission for Indonesia the view that a Dutch compromise proposal, providing for the establishment of the � Republican capital in Republican-held Sumatra instead of Jogjakarta, could be regarded as a bona fide response to the Security Council resolution on Indonesia. The Department has instructed Cochran to encourage immediate discussion on such a proposal in order that the Republican Government might be restored in Republican-held territory and that Dutch-Republican negotiations leading to a definite solution might begin in The Hague or some other place. 3. France conditional' acce ts Berlin currenc lan--US Ambassador Cafferyhas received a note from French For- eign Minister Schuman which agrees to the conversion to the western mark as the sole currency in the estern sectors of Berlhi,on the condition that the problem not be brought up for full discussion by the Security Council at this time. Schuman feels that the Security Council President should be informed of the proposed action and that the Security Coun- cil should be allowed a reasonable period of time to determine its course of action. Schuman therefore considers that the THE C.I.A. HAS NO OBJECTION TO THE DECLASSIFICATION OF THIS DOCUMENT. NO. cal 1 Document No. 2 MAR 1949 925 NO CHANGE in Class. E] El DECLAS::---.-; Class. C.' TS S 1- � Auth: D._ � � �, 12:, 77 �.,.. � 1 7 MAR 1978 By 0 Approved for Release: 2018/11/19 006749334 5- 5-5 5-7-s 3.3(h)(2) Approved for Release: 2018/11/19 006749334 tax' currency changeover cannot be made by 10 March; he suggests 27 March or, if this date is technically inconvenient, 20 March. Schuman believes that the western powers should reconsider their decision if any unforeseen development should change the situation before the date set for the changeover. TIE AMERICAS COLOMBIA: Possibility on against Pena--Us Ambassador Beaulai�in�Bogota reports that, reply to his direct question, the Colombian Foreign Minister indicated his country would probably retaliate with military action if the Colombian Embassy in Lima were attacked by a Peruvian mob in an attempt to seize APRA leader Ilaya de la Torre, who is now in asylum in that Embassy. Beaulac further re- ports that reinforcement of Colombian garrisons along the border is being expedited. Colombia would attack the Peruvian military base at Guepi on the Putamayo River. US Embassy Lima reports that it has received no information indicating either troop concentra- tions or significant ground or air movements by the Peruvians In the vicinity of the Colombian border. (CIA Comment: CIA considers that there is a distinct possibility of an attack upon the Colombian Embassy. If such an attack should occur, Colombia would probably retaliate as indicated.) - 2 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 GENERAL I. Denmark ready to join North Atlantic Pact discussions-- US Ambassador Marvel in Copenhagen has been informed by the Danish Prime Minister that Denmark will join the Atlantic Pact. The Danish Prime Minister reportedly hopes to send the Foreign Minister to Washington for direct dis- cussions with the Secretary of State and subsequently intends to request participation in the Atlantic Pact discussions. - Marvel believes that Denmark would be satisfied to partici- pate as an observer during the preliminary discussions if full participation is opposed by -member nations. 3 MAR 1949 926 5 - , 2. US views concern Colombian milita e rations--The Department of State has Instructed US Ambassador Beaulac In Bogota to inform the Colombian Foreign Minister that: (a) the US Government does not believe the Colombian Embassy in Lima will be invaded; (b) no clear indications exist that Peru is planning any bellicose actions; and (c) the US Government hopes Colombia will avoid acticns which could be construed as preparations for war and which might by themselves generate a war spirit in Peru. FAR EAST 3. SIAM: US nationals possibly en red--The US Military Attache in Bangkok reports that al sough actual hostilities have ceased in Bangkok, the situation is still tense and fraught with danger. He therefore strongly urges that no US nationals visit the city. (CIA Comment: US delegates are now in Bangkok to attend an international conference; another such conference is scheduled for 28 March. CIA believes that a renewal of hostilities is a distinct possibility.) -.70 OBJECTION TO 'IBS ASIFICATION OF THIS DOCUlaia. N0.t11_,----""l� 0 Class. .. TS S Document No. Allfity - if.. NO CHANGE in Class.. DECLASS-IF:T:0 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 -voU TOEJET .44 GENERAL MAR 1949 927 1. Austria rea for economic talks with Yugoslavia--According to U represen ve � r a us , ea negotiations In London, Austrian Foreign Minister Gruber has indicated his willingness to undertake direct economic conversations with the Yugoslays. Gruber proposes that such conversations be directed toward a satisfactory trade agreement under which Austria would export heavy industrial products on terms favor- able to Yugoslavia. Reber indicates that such an agreement might facilitate the conclusion of a peace treaty. He adds that Gruber would like, before entering upon such negotiations, to know the views of the US, particularly concerning future ship- ments to Yugoslavia. 2. lLigElkkurrexIcy_s_L_pALr set for 20 March--US Embassy Paris s been o �TT.or y e rezma have accepted the US position on the Berlin currency but are holding out for 20 March as the date for the changeover to exclusive use of the western mark. The US Army is advising General Clay of US acceptance of that date for the changeover. The Depart- ment of State advises Embassy Paris that it is essential for the three western powers to treat this date as a firm commit- ment and expresses the hope that military government experts will press forward with the necessary preparations. EUROPE 3. FRANCE: Government policy on Communist "treason"--US Em- bassy Paris has learned from a high French official that the Li- tenor Ministry intends, in combatting the "treasonable" Commu- nist line, to place emphasis "on what the Communist do rather than what they preach." The official believes that the Kremlin expects THE C.I.A. .:%70 OBJECTION TO 7HE DECLASSIFICATION OF THIS DOCUMENT. NO. 61 -1 Document No. 0 ri NO CHANGE in Class. 0 - 0 DECLASSI:;�.::: Class. C........ TS TS S Auth: ; � � - Mr. 77 17-HVIAR 1978. Approved for Release: 2018/11/19 006749334 ti4 - 5 .s 3 C Approved for Release: 2018/11/19 006749334 Western European Communists not only to undermine European morale but also to engage in military and industrial espionage and eventually sabotage. The official thinks it may sometime be necessary for France to mobilize the men in every plant which is working for national defense. (CIA Comment: CIA considers that the French Commu- nist Party is likely to make plans for sabotage, especially against the armaments industry, but that the Communists are not likely to possess the capabilities for brge-scale sabotage In the near future.) Approved for Release: 2018/11/19 006749334 � Approved for Release: 2018/11/19 006749334 5U TO RET GENERAL 5 MAR 1949 928 1. Frqnch insist on Italian inclusion in Atlantic Pact--French Foreign Minister Schuman has informed DS Ambassador Caffery that although the French Government does not insist upon Italian participation in the Atlantic Pact negotiations, it does insist that Italy be permitted to sign the Pact at the conclusion of negotiations if Norway signs at that time. Schuman explained that Italy's inclusion in the Pact is a matter of major psychological importance to the French, because without Italy the French people would say they had been placed "on one of the wings" of a defense system. US Ambassador Kirk in Brussels reports that a high official the Belgian Foreign Ministry has expressed a strong feeling that both Italy and Norway should be included as initial signatories of the Pact. The Belgian official be- lieves that if Italy is not thus included, the De Gasperi Government may be placed in a serious position between the initial signing of the Pact and a subsequent Italian adherence. THE C.I.A.. HAS NO OBJECTION TO THE DECLASSIFICATION OF THIS DOCUMENT. NO. 6Xit Document No. NO CHANGE in Class. DECLASS IFL7D Class., TO: TS S r .?!pr 77 Auth _____'. 77117L3 Date 1 7 mir.iFq By: --(55.1--- - TS 3-7S 5 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TO RET EUROPE 3. Possible Dutch-Indonesiancmipromise�US AMbassador � Baruch has been told privately by a high official of the Netherlands Foreign Office that a "bare possibility" exists that the Netherlands Government will agree to restore the Indonesian Republic at Jogjaka.rta if the Dutch can be assured that the Republican delegation would leave Batavia for a mid- March conference at The Hague. Baruch is convinced that a successful compromise could be worked out along these lines. He also notes signs that international considerations are slowly making headway over the largely national approach hitherto prevailing in the Netherlands concerning Indonesia. (CIA. Comment: CTA believes that the possibility suggested by the Dutch official is one of several recent indi- cations that the Netherlands Government may soon be forced to retreat from its previous position and allow the Republican leaders to return to Jogjakarta.) f:0� � /tv TOP RET icy Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 GENERAL 1. Embassy Moscow's view of Molotov's shift�US Embassy Moscow expresses the view that the Soviet Government's action in relieving Molotov as Foreign Minister and Mikoyan as Minister of Foreign Trade does not indicate that either has fallen from favor or that their position has changed in the hierarchy of the Party and Government. The Embassy believes that the changes do not foreshadow any fundamental shift in Soviet foreign policy. The Embassy points out that it has been expected for some time that Stalin would eventu- ally retire as Chairman of the Council of Ministers and that Molotov would return to that position (which he held from 1930 to 1941). The Embassy suspects that these shifts may have been designed to sow confusion in the West at this time and in the immediate future. (CIA Comment: CIA concurs in general with Embassy Moscow's analysis.) 7 MAR 1949 929 2. Denmark wishes to ba or. 1s t of Atlantic Pact-- US Ambassa rvel in ope gen s en ins c d by the Department of State to inform the Danish Government that the US: (a) expects to be able to communicate the approved text of the Atlantic Pact agreement to Denmark before 12 March; (b) plans a conference in Washington at the end of March for final consideration and signing of the Pact; and (c) prefers that Denmark should become an origi- nal signatory, Ambassador Marvel reports an increasing desire on. the part of Denmark to become an original signatory in order to avoid the interval of waiting between the original signing by the representatives and the subsequent ratification by the Individual governments. The Foreign Minister, who considers this period to be "extremely dangerous," believes that the Danish Parliament can probably reach an affirmative decision in time for him to come to Washington for signature during the very last days of March. Dooun2ent Noo 1"14 - 1 - NO CHANGE in Class�. lj _,-- 0 DECLASST:77: Class. C" ' THE C.I.A. HAS NO OBJEC TO THE DECLASSIFICATION THIS DOCUMENT. NO. - ("4'4 T n 1 7 mkt 02. _ Approved for Release: 2018/11/19 006749334 S � 4 4 Approved for Relgaose: 2018/11/19 006749334 TOP GENERAL 1. US views on Ha ie conference on Indonesia�The Depart- ment of State has iipressed to at the UN the view that the main obstacle to Republican acceptance of the Dutch invitation for a round table conference at The Hague is the refusal of the Netherlands to restore the Re- publican Government to Jogjakarta. The Department there- fore suggests that the US delegation seek Security Council Instructions to the UN Commission for bidonesia to strive for agreement between the Dutch and the Republic on this point. The Department believes that the latest Dutch plan is consistent with the objectives of the 28 January SC reso- lution. 8 MAR 1949 930 According to US Embassy The Hague, a parliamentary leader of the Dutch Labor Party has declared that his party Is now convinced of the necessity for restoring the Republi- cans in Jogjakarta. The leader thinks, however, that only a token Republican city, including government buildings within an area of a few square miles, can be established at this time. Document No. THE C.I.A. E3 IO OBJECTION NO CHARGE in Class. Ci TO 7HE DECLASSIFICATION OR DECLASSIF.TE.D THIS DOCUMENT. 83. NO. Ott C14 TS Alat2 3 D APA. 77 Date el 2.184.19,....7p Er, Approved for Release: 2018/11/19 006749334 - Corvo 1- Approved for Release: 2018/11/19 006749334 50 TOP GENERAL 1. France withdraws reservation on Berlin currency plan-- French Foreign Minister Sciuman has informed US Ambas- sador Caffery that the French Government now: (a) no longer makes acceptance of the Berlin currency plan condi- tional upon the prevention of full discussion of the subject In the Security Council at this time; and (b) agrees to the proposed date of 20 March for the currency changeover in Berlin. Schuman indicates that General Koenig in Berlin has received instructions to accept the 20 March date and has agreed that technical arrangements should be considered immediately for the introduction of the western mark as the sole currency in the western sectors of Berlin. THE C.I.A. !MO ITO OBJECTION TO 7HE DECLASSIFICATION 0.1P, THIS DOCUMEET. NO. bri -71 Document No. NO CHANGE in Class. DECLASSIFIED Class.. .73: TS E13.1 4 A.pi. 77 Auth 17'1703 Date g L7.1gRA9/8_ By; � J � 9 MAR 1949 931 f.. Approved for Release: 2018/11/19 006749334 S - TS Approved for Release: 2018/11/19 006749334 TOP GENERAL 10 MAR 190 932 1. Israeli military moves--US Charge Stabler in Amman has been notified by King Abdullah of Transjordan and by Arab Legion Commander Glubb Pasha that Israeli forces have Invaded Transjordan proper and have attacked an Arab Legion post inside the frontier. Stabler was similarly in- formed that S' ;r� Israeli columns are continuing their ad- vance through � Negeb toward the Gulf of Aqaba, (Mean- while, the US Military Attache in Baghdad has been informed of Israeli troop concentrations opposite the Iraqi forces in Central Palestine.) � The Department of State has expressed to the Israeli Government its gravest concern over the situation and has � warned of the serious consequences if the reported Israeli Incursion into Transjordan should be verified. (CIA Comment: Whether or not Israeli troops have Invaded Transjordan, their advance through the Negeb violates the UN Truce of July 1948, CIA believes that this movement indicates a clear intention on the part of Israel to seize terri- tory in Palestine and present the UN and the Conciliation Commission With a new fait accompli. Such a seizure would: (a) go far to complicate the work of the UN Commission; (h) virtually preclude application of the proposed formula whereby Israel would provide compensation .for territory it retains outside the UN partition boundaries; and (c) give further support to the Arab contention that Israel 'does not have peaceful intentions but is acting aggressively and in bad faith.) EUROPE 2. FRANCE: Communist Party plans for sabotage cam/yip-- The US Military Attache in Paris has learned from a highly reliable source that the French Communist Party has made plans for organizing systematic, direct sabotage of all French AC Document No. v- THE C.I.A. II/13 NO OBIECTION TO THE DECLASSIFICATION 02 - 1 - THIS DOCUMENT. I0. Rest _ it/ iq 5 Aitiny - 5 i 14fUty - 5 NO CHANGE in Class. 0 0 DECLASSIF3 ED Class. C7:- � T.D: � TS S E': 77 MEV n 1978 By: - � - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 � RET � c� enterprises working for national defense. According to source, Communist leaders in charge of this program were cautioned to exercise great prudence and to avoid sensational sabotage. Source indicates that the Communist-dominated General Con- federation of Labor is no longer in a position to launch large strikes, but will continue to use rotating and slow-down strikes. Source adds that Communist propaganda will continue to appeal to French workers never to take up arms against the USSR. (CIA Comment: CIA does not consider that Communist capabilities for large-scale sabotage are sufficient atpresent to affect seriously French industrial production or national security.) - 2 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 U NEAR EAST-AFRICA i MAR 194� 933 1, PALESTINE: Israeli advance seen as threat to settlement-- US Consulate General Jerusalem expresses the view that the Israeli advance into the southeastern Negeb: (a) consti- tutes a violation of the. Security Council truce resolution of July 1948; and (3) is apparently intended to present the UN with a fait accompli before permanent armistice lines are drawn during the Transjordan-Israeli negotiations at Rhodes: The Consulate declares that the Israeli advance, besides jeopardizing the Rhodes negotiations and the work of the UN Palestine Conciliation Commission, will destroy the slowly developing willingness of the Arab states to negotiate a settlement with Israel. In the Consulate's opinion, strongest representations should be made to the Israeli Government against Israeli incursions into Transjordan and also against any advance by Israeli forces into the Negeb. British - to A. rrison--According to US Einbassy Lon. , ar ei a has sent the following instructions to the commander of the Aqaba garrison: (a) if Israeli forces open fire, either from Palestine territory or after crossing the Transjordan frontier, the fire is to be returned; (b) if Israeli troops cross the Trassjordan frontier without firing, the British commander is to warn them not to approach and then oy.3en fire if the warning is disregarded; and (c) if Israeli aircraft fly over British positions, they are to be engaged whether or not they lake offensive action. The Embassy adds that Acting UN Mediator Bunche and the Israeli Government have been informed of these instructions. (CIA Comment: It is unlikely that the Israelis will Initiate offensive action against the British or invade Trans- Jordan territory again intentionally.) CIA- S CI H-S � TIM C.I.A. HAS IO OBJECTION 0C TO TH3 DECIA3SIFICATION pl. Document No. THIS DOCUMENT. - 1 - NO CHANGE in Class. NO. 601 DECLASSIFIED Class. TO: TS : � 11 P7)3., 77 Autl-.. � .' ..3 7 ra.t.,-):1 7 MAR 13 ECFtET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TOP FAR EAST 2. INDONESIA: Dutch seek US support for proposal--Dutch Foreign Minis-lie/7 Stikker hasInformedUS mbassador � Baruch at The Hague that he will undertake to obtain Dutch Cabinet approval of a plan for the restoration of the Republi- can government to Jogjakarta, if he can be assured of US and British support. The Dutch proposal reportedly provides that: (a) Netherlands authorities will remain responsible for law and order throughout Indonesia; (b) civil police will be responsible for order within Jogjakarta and environs but the Dutch armed forces will remain there for use in an emergency; (c) the Republican government will immediately Issue a cease-fire order upon its return to Jogjakarta; (d) the Republican government will revoke the powers conferred on any government now acting in Sumatra or elsewhere; (e) the terms of the restoration of the Republic will be determined � by negotiations in Batavia with the assistance of the UN Com- mission for Indonesia; and (f) the Republic will subsequently send to The Hague a delegation including the president and the prime minister. According to Ambassador Baruch, For- eign Minister Stikker believes that it will be imperative to obtain US support to overcome Cabinet resistance to such a plan. Stikker believes that adequate British support has already been given through Bevin's general approval of the proposal. THE AMERICAS 3. PERU: US concern over Colombian-Peruvian dis eemen_t-- The Department of State has informed US embassies in Argen- tina, Brazil, and Peru that it continues to be preoccupied over' the possibility of an incident involving Peru and Colombia which would threaten the tranquility of the South American continent. The Department indicates that the Colombian Government has become more and more alarmed over the possibility of an attack -2 Approved for Release: 2018/11/19 006749334 � 5 ea40. Approved for Release: 2018/11/19 006749334 on its embassy in Peru Maya de la Torre, the leader of the now-outlawed APRA Party of Peru who has taken asylum in the Colombian Embassy there, cannot leave the country because the Peruvian Government refuses to grant safe- conduct). The Department requests information concerning the attitude of the Argentine and Brazilian governments on this situation. - 3 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 GENERAL 12 MAR 194z, 934 1. Austrian treaty talks reach critical stage--US Representative Reber in London reports that Austrian treaty negotiations have reached a critical point as a result of Yugoslavia's unwilling- ness to abandon its demands for frontier rectification and reparations. Reber points out that in backing the Yugoslav claims, the USSR has been using the conference to further Soviet ends in Yugoslavia and to attempt to prevent a further rapprochement between Tito and the West. Reber believes that: (a) as long as the question of Yugoslav claims remains unsolved no real progress can be made toward conclusion of a treaty; (b) the western powers "should not be led into the obvious trap" of agreeing to a discussion of other issues without further efforts to force a showdown on Yugoslavia's claims; and (c) avoiding such a showdown now would leave the West exposed to the danger of a later break over other issues which would be less clear to the public and to Austria In particular. Reber therefore recommends that the US should be prepared to accept in the near future any reason- able grounds for adjournment in the hope that after adjourn- ing: (a) the Yugoslav-Cominform rift might be further clarified; and (b) direct Austrian-Yugoslav negotiations, uninfluenced by the USSR, might result in Yugoslav concessions. TErr. C.I.!_. 03YECTION TO EI DL;CLAMFICATION Or liISDQCUMEI3T, NO. �1124---"":11 Document No G erg O CHARGE in Cir:zsc, 0 DECLASSIT7.7 Q1a2s0 Ci,;.1:7'.'" � r. Auth DPA Date g 17 MAR 1978 By Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 50 TOP SE GENERAL 14 MAR 1949 935 ' 1. us representative's views on Dutch plan for Indonesia--US representafive Coahran in Ba via considers thai ffie latest Dutch proposals for restoration of the Republican govern- ment, as outlined in a letter from Netherlands Foreign Minis- ter Stikker to UK Foreign Secretary Bevin, are "weak and unconvincing." Cochran recommends that the US strictly insist upon prompt Dutch compliance with the Security Coun- cil resolution calling for restoration of the Republican gov- ernment in Jogjakarta and free functioning of the government there. EUROPE 2. GREECE: Foreign()_ffice views on Macedonian issue-- According� ii.- gliff-ErEET-ik-ls, z-U-s-e-e-Froa"-'-eW--p 'Affairs Ministry is considering the possibility of making energetic representations to the Satellites because of recent Communist moves regarding Macedonia. Members of the Foreign Minis- try 'reportedly believe that such moves represent a plan to lop off Greek Macedonia and bring about Tito 's fall by depriving him of Yugoslav Macedonia. These officials therefore con- sider that these moves have created an "infinitely more grave" situation than did the formation of the Markos junta during the winter of 1947-48. US Embassy London reports that Foreign Secretary Bevin is considering making a statement in Parlia- ment designed to discourage proclamation of an autonomous Macedonia. NEAR EAST-AFRICA 3. PALESTINE: Israeli invasion unconfirmed by UN observers-- US Charge Stabler in Amman reports that preliminary accounts from UN observers in the area indicate Israeli forces have not crossed into Transjordan territory. Stabler adds, however, THE C.I.A. HAS NO OBJECTION TO 7HE DECLASSIFICATION OF THIS DOCUMENT. NO. Olt -1 J...)Jument No, - NO CHANGE in Class�. El 0 DECTILS3ITT72 S Clcodo' CCA: Crm DDA .o, Lr 77 CREIth: DDfif�F: lz 77 '17'63 Dat1 7 MAR 1978 Approved � Approved for Release: 2018/11/19 006749334 . Approved for Release: 20-18/11/19 006749334 fr that government circles in Tra.nsjordan have been badly shaken by Israeli actions in the Negeb. According to Stabler, there are indications that Transjordan officials, though possi- bly still willing to conclude a peace agreement at 'Rhodes despite Israeli occupation of the Negeb, are uncertain whether Israel will cease its expansion moves and are fearful of an attack on the Arab-controlled area in north central Palestine. Stabler urgently recommends that the US warn the Govern- ment of Israel of the serious consequences upon its relations with the US if Lsrael undertakes this or any other aggressive action. -2 hr-4-� CRET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 0u GENERAL 1- US favors continuation of Austrian talks--The Department of State 11�'ER..ER.M-tvis ive at the Austrian treaty negotiations in London of its view that a decision to break off the discussions must take fully into consideration the-effect on the general international situation. The Depart- ment believes that even though there is no indication that the USSR intends to conclude a treaty at this time, there can be no harm in attempting to negotiate other points of the Austrian treaty besides the Yugoslav claims, on which the USSR cannot be expected to make concessions until public attention has been diverted from the issue. The Department feels that international opinion would probably question the motives of the US if adjournment were to be taken with only a preliminary consideration of other disputed articles. The Department therefore considers that the US should not risk adjournment until there is some clarification of the inter- national situation or until every negotiating possibility has been exhausted. THE C0 IA. Eri5 NO OBJECT/ON TO 7HE DECLASSIFICATION Ojr THIS DOCUMENT. pot MIR 949 936 Do-.3ument No. O�i RO CHANGE in Class. 0 DECLASSIFITIT Class. CHANCED TO: TS S C DDA Memo, 4 Apr 77 Auth: DDA REG, 77 1763 Dates 1 By: 02t 4 TO CRET � Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 50 TOPS GENERAL 16 MAR 1949 937 1. British suggest inaction following Berlin currency__reform-- 5 - is US Embassy London transmits the British Foreignffice view that the best course for the western powers to take after the currency cpangeaver in Berlin may be one of "unconcern and inactivity," avoiding further action in the Security Council. The British reportedly base this conclusion on their estimate that the bargaining position of the western powers will be considerably improved following the currency changeover, further progress on the west German program, and the sign- ing of the Atlantic Pact. British officials therefore prefer to await Soviet reaction to these developments before deciding on the next move to make in Berlin. THE C. I .A. HAS NO OBJECTION TO 7HE DECLASSIFICATION OF Document No. 0 f. THIS DOCUMENT. NOe NO CHANGE in Class.� El att 0 DECLASSIFIED Class, CHANGED TO: TS S DDA Mo, 4 Apr 77 ' Auth: DDA RLG. 77 1763 Date: 7 MAR 194 By: Approved for Release: 2018/11/19 006749334 _ Approved for Release: 2018/11/19 006749334 50 v TOP S GENERAL 17 mAR1949 938 I. Present Soviet intentions in Iran--US Ambassador Wiley in "Ferran consiairarWMFimcertainty about Soviet Intentions in Iran is the timing of a Soviet move to return to the country. Wiley believes that the recent setbacks suffered by the Soviet Union, particularly the imminent conclusion of the Atlantic Pact, make it possible that the USSR may enter Iran in the near future. In transmitting Ambassador Wiley's views concern- ing Iran to US Embassy Moscow, the Department of State has requested the Embassy's judgment on the probable effect upon the USSR of a US statement of continuing concern over the security of Greece, Turkey, and bran, Such statement to be made simultaneously with the conclusion of the Atlantic Pact. The Department points out that the UK, which had previously urged that such a declaration accompany the conclusion of the Atlantic Pact, now opposes such a state- ment, especially the inclusion of Iran. (CIA Comment: The USSR is not likely to take overt action in Iran at this time, especially because such action would decisively facilitate the rapid and effective implementa- tion of the Atlantic Pact.) THE C.I.A. HAS NO OlatattLe TO THE DECLASSISICATIN VC DECLASSIFIED THIS DOCUMENT. NO. ozek , Document No. a G 3 NO CHANGE in Class. TO Class. CHANGED TO: TS S DDA Memo, 4 Apr 77 DDA RG. 77/1763 1 7 MAR 19/8 By: 021 Auth: Date: Approved for Release: 2018/11/19 006749334 - Approved for Release: 2018/11/19 006749334 b U TOPS GENERAL 1. Soviet anilressimst Iran held unlikely--US Embassy Moscow expresses its view that the USSR will not this year make any aggressive move with its armed forces likely to embroil it in major hostilities with the western powers. The Embassy therefore does not antici- pate any 'major effort" in Iran and does not foresee any likelihood of an invocation of the 1921 treaty or an occupa- tion of Azerbaijan. In reply to the Department of State's query con- cerning the possible effect of a declaration accompanying the conclusion of the Atlantic Pact, the Embassy asserts that a carefully worded statement expressing the interest of the US in the security of Greece, Turkey, and Iran would usefully supplement the Atlantic Pact and remind the Kremlin that the US is not dropping its guard anywhere. The Embassy believes it to be "almost essential" that the British join in issuing such a statement. (CIA Comment: CIA believes that any Soviet action against Iran at this time will largely consist of fomenting disturbances, particularly in Azerbaijan.) 2. Bunche reports Israeli intransigence threatens ccording to the US delegation at the UN, Mediator Bunche has reported that an armistice between Lebanon and Israel Is being blocked solely by Israeli intransigence on the subject of the removal of its forces from Lebanon. The Israelis reportedly demand Lebanese permission to retain forces in Lebanon until Syria concludes an armistice. Bunche has declared that he feels so strongly on this matter that unless Israel changes its position within the next few days, he will inform the Security Council that Israel is deliberately blocking a Lebanese agreement and will seriously consider withdrawing altogether from the armistice talks. THE C.I.A. HAS NO OBJEC TO 7HE DECLASSIFICATION THIS DOCUMENT. NO. 661 Document No. 18 MAR 1949 939 NO CHANGE in Class. P1D3CLASSIFIED Class. CHANGED I'D: TS S 4. Memo, 4 Apr 77 A WPE LG. 77 1763 Date: By: 02 Approved for Release: 2018/11/19 006749334 s- d/jg eo/IF Approved for Release: 2018/11/19 006749334 TO' ET ET 3. USSR seeks to prologAusfrIan treat talks�US repre- sez--ina lye Reber iUh�ustrlan treaty in London re- ports that in a recent private interview Soviet representative Zarubin gave the impression he wanted to use every excuse to prolong the present negotiations indefinitely. According to Reber, Zarubin apparently sought to imply that an agree- ment on autonomy for the Slovenes in Austria would reduce the difficulty of the Yugoslay. frontier issue. Reber indicates that although Zarubin urged that the talks be turned to other disagreed issues, he has agreed with the British and French representatives to continue the present pressure in order to gain some hint concerning eventual solutions on frontiers and reparations. 4_reek move to guarantee ted--US Ambassador Cannon in Belgrade connection with recent Macedonian developments, the Greeks should gain the diplo- matic initiative by proposing that a UN or four power guarantee should be made of present Balkan borders. Cannon suggests that Greece could then forego its claims to southern Albania provided that Yugoslavia, Albania, and Bulgaria would agree to the finality of their own' borders. Cannon points out that such a move would at least place the Cominform on the defen- sive by forcing a Soviet decision concerning its stand on the present borders of Yugoslavia as well as those of Greece. Cannon expresses the view that a US-UK demarche to Bulgaria on the Macedonain question would not be effective at this time. Approved for Release: 2018/11/19 006749334 - 5 diA -S Approved for Release: 2018/11/19 006749334 TOP ANNEX POSSIBLE MARCH UPRISINGS IN THE NEAR EAST According to a number of reports recently received from the Near East, serious uprisings are planned in the area for the latter part of March and will involve simultaneous Kurdish revolts in Syria, Iraq and Turkey. These reports, which cite details of time and place but cannot be evaluated at this time, indicate that Communist agitators are actively urging the Kurds to resort to violence and that the uprisings will be supported by the sabotage of military installations in Turkey, as well as the assassination of leading Arab govern- ment figures and possibly western representatives. Although the accuracy of these reports cannot be established, it is bone that Kurdish uprisings are always a distinct possibility and that the Communists in the area can be expected to exploit this traditional unrest. There is no evidence, however, to suggest that either the Kurds or the Arab and Turkish Com- munists are receiving substantial material assistance from the USSR or that the USSR Is planning any overt action on their behalf in the near future. If the predicted uprisings occur, they will be generally unsuccessful in all three countries. The effects on each coun- try, however, will vary. In Turkey, there is not the remotest possibility of a serious threat to the government. Communist activity in Turkey is almost non-existent, the Kurds there are less discontented, and the security services are more than adequate. In Iraq, disorders might spread rapidly and some changes in the government might result. The situation might be further complicated by the attempted return of the Barzani Kurds who fled to the USSR in 1947. Communist strength in Iraq has been seriously weakened by recent government action, however, and Iraqi troops now being returned from Palestine could prevent a successful revolution. In Syria, it is possible Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 AAN TOP that the outbreak of disturbances might touch off a counter- revolt by ultra-nationalist elements under the leadership of Colonel Zaim, Chief of Staff of the Syrian Army. Zaim Is reportedly planning such a move, which, if it took place, would probably be a quasi-legal seizure of power in which the present Constitution and President would be retained. Whether or not Zaim assumes power, however, Communist and Kurdish forces in Syria are too weak to make a success- ful bid for control of the government. - it � ' . Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 D U TOP SE CPv- GENERAL 19 MAR 19/19 940 I. ,,;11 concern over Isriintentions--UK Foreign Secretary Bevin has expressed11-3 USS-A-Woaifsidor Douglas in London his concern regarding Israeli intentions, particularly the possibility that the next Israeli move might be against Arab positions in north central Palestine. Sevin asked that Secretary Acheson be informed of his view that another Israeli fait accompli might damage UN prestige irreparably and confirm the Arab belief that they can expect no help from the west. On the subject of western aid, Sevin told Douglas that it is becoming more and more "ridiculous" for the UK to refuse arms and ammunition for the Arab Legion when arms continue to flaw into Israel on a large scale. He indicated that although the British have given the Legion no war materials as yet, it will be "extremely diffi- cult" for him to continue making flat refusals to King Abdullah's requests. Douglas reports that Bevin informed him tangentially that the Conservative Party plans next week to attack the Gov- ernment for "jeopardizing the vital UK-Transjordan friendship." The Department of State has informed Ambassador Douglas that the British Embassy in Washington has declared "It will no longer be possible to refuse to send arms to the Arab Legion." The Department indicates that great concern was expressed at "the working level" over this possible move and that it was pointed out what an adverse effect this would have on armistice negotiations, emphasizing the likelihood of pressure for the removal of the arms embargo against Israel and the possibility that the Israelis might seize upon this pre- text to reopen hostilities. fa C.I.A. 1115 CSIECT/012 5 pleassinCtoli011 2615 DOCUMMIT. _Mt Document No. 61r NO CHANGE in Class. C] DECLASSIT77? Class. C'.: � T3 77 Auth: -k-VMAR 191V- - By: Date : Approved for Release: 2018/11/19 006749334 �s 5 -TS Approved for Release: 2018/11/19 006749334 u 21 MAR 1949 941 TOPS EUROPE 1. PORTUGAL: Por gal seWtseaWmAitlant c Pact-- US Ambassador MacVeagh reports that the Portuguese Foreign Office wants to know whether some provision can be made which will enable Portugal to sign the Atlantic Pact for a 10-year period, either beginning now, or at some future date. MacVeagh has been told that the Foreign Office intends to put the Atlantic Pact question before the Cabinet as soon as an answer has been received to this query. MacVeagh believes Portugal will sign the Pact if granted an option to withdraw after 10 years. The Department of State has replied to Ambassador MacVeagh that although an answer cannot be given to the Portu- guese query without consultation among the participating gov- ernments, the reply will probably be negative. 2. FRANCE: Gover_._L_uner Indochina--US Idoclina --US Ambassador Celery ha,sireceivenoTina unofficial request from a high French official and an Indochinese official that the US give serious consideration to the possibility of supplying arms for the newnational Vietsam Army which is provided for in the recently drawn-up Bao Dai agreement. The French official indicated that the US will receive a formal re- quest for arms from Premier Queuille directly after the ratifi- cation of the agreement. (CIA Comment: The French Government is extremely anxious to obtain public approval and material support from the US for the new Indochinese agreement before Bao Dai arrives in Indochina on April 25. The promised ratification of the agreement by the French Assembly is dependent upon legal unification in Indochina which will probably take much longer than the few weeks which the French now anticipate.) s- rs 5 -r5 Document No. 0 6 G __ THE C. I. A. HAS NO OBJECTION .. ........_____.... Ii0 CHLIGE in Class, 0 ..�----- TO HE DECLASSIFICATION _OB. THIS DOCUMENT. 0 r_.:.7...-- 64, - 1 - C1a�.. � Auth3 NO (_. r..',i S :f_. .. 6_ , 77 D �., 4,11.-', '1/ '.7q3 Date: By: - Approved for for Release: 2018/11/19 006749334 Approved for Release: 201.8/11/19 006749334 TOP RET NEAR EAST-AFRICA 3. PALESTINE: US concern over IractilL�ont--The Department of State has advised US Ambassador McDonaldin Tel Aviv of Its concern over the possibility of an outbreak of fighting on the Iraqi front in Samaria (north central Palestine). The Department believes, in view of this possibility, that: (a) every- thing possible should be clone to facilitate the rapid conclusion of an Israeli-'rransjorolan armistice agreement; (b) such an agreement should be extended to the Iraqi front; and (c) Israel should interpose no objection if Iraq turns the Samaria front over to 'rra.nsjordan. The Department adds that it might be desirable to have the present cease-fire agreement extended automatically to the Iraqi front at the time that Transjordan assumes responsibility for it. - 2 - Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 5U TOPS GENERAL 22 MAR 1949 942 1. Austria_n_treaW_ta shift to economic articles --US repre - sentative Reber it t fr�ian eiry�EM-E-London reports that further discussion of the Yugoslav claims is futile and that he has agreed with the British and French representatives to pass to a consideration of the economic articles. Accord- ing to Reber, British and French representatives believe that the USSR might yield on frontiers and reparations in return for economic concessions.. Reber predicts that the British will be less insistent upon complete relinquishment by the USSR of its present control of industry in the Austrian east- ern zone if there seems to be a possibility of agreement on certain economic clauses. Reber believes it important that present Soviet control of Austrian industry not be continued, but he observes that because the Austrians themselves are inclined to dismiss the need for safeguards against Soviet en- croachment in the control of industry, US insistence on such safeguards might be misinterpreted and lend itself to Soviet propaganda. TO C.I.A.. 1163140 OBJECTIOS TO IBS DECLASSIVICA.TION Off. THIS DCaUlatn., Document No. 61 170 CHANGE in Cl DECLASSIrIED Class. CIT.:1,1F DLA LI: L17. Auth DDA Date; rrmAR- ass. 12J: TS S , Apr 77 1.1978=1763 By: 02 0 Approved for Release: 2018/11/19 006749334 Z- TS - Approved for Release: 2018/11/19 006749334 50 TOPS GENERAL 1. Dutch balk at proposed UN directive to UNCFI--According to US Ambassador Baruch, Dutch Foreign Minister Stikker believes that the proposed UN Security Council message to the UN Commission for Indonesia (instructing the Com- mission to assist the parties in removing the obstacles to the holding of the proposed conference at The Hague) will be unacceptable to the Dutch Cabinet. Stikker declares that he and the Prime Minister may have to resign if the Cabinet is forced to a decision on the message. Stikker points out that such an event would be unfortunate if it interfered with his signing of the Atlantic Pact. Ambassador Baruch believes that Stikker exaggerates the opposition in the Netherlands to the proposed message. (CIA Comment: CIA concurs in Ambassador Baruch's estimate and believes that the Dutch Cabinet will probably acquiesce in the UN proposals.) rrma C.I.A. HAS NO OBJECTION TO THE DECLASSIFICATION OF THIS DOCUMENT. NO. 041 --'1"*6*AN01 28 mAR1949 943 Document No. Olog NO CHANgE in Class. 0 0 DECLASSIFIED Class. '1,5 :a: TS S DLL .1. Apr 77 Auth: Dr A I:: E Y'173.:; Date: 3. 7 MAR 1978 By: 00. Approved for Release: 2018/11/19 006749334 . Approved for Release: 2018/11/19 006749334 GENERAL 24 MAR 1949 944 1. US will refuse to jeo.. rdize Austrian economic Independence-- Tie Department of State has Informed US represents ve . e r In London, in reply to his report that British and French repre- sentatives might be willing to make economic concessions to the USSR, that the US will not make concessions sacrificing Austrian economic independence in order to buy Soviet agree- ment on the frontier and reparations issues. The Department believes that the US must continue to insist on the relinquish- ment of Soviet control over eastern zone industry. The Depart- ment advises Reber that the US should closely link its resistance to economic concessions and Its opposition to frontier concessions In order to demonstrate to the Austrians, if negotiations break down, that the intent of the US has been to protect Austria's future. 2. Transjordan reports ultimatum from Israel�King Abdullah of Transjordan has informed US Charge 'Stabler in Amman that at the 22 March Israeli-Transjordan meeting, Israeli repre- sentatives made detailed demands for front-line adjustments on the north-central front. According to Abdullah, the Israelis announced that unless their final demands were incorporated Into a formal agreement within 24 hours, they would not acquiesce to the proposal that Transjordan take over the Iraqi front in Palestine. Stabler adds that Abdullah would attempt to obtain more reasonable adjustments if he could be certain that the US would prevent Israel from reopening hostilities. FAR EAST 3. CHINA: Acting President contemplates Moscow visit�Acting President Li Tsung-jen has requested US Ambassador Stuart to obtain US comment on Li's proposed journey to Moscow for the purpose of discussing the Chinese situation with Soviet THE C.I.A. HAS NO OBJECTION - TO THE DECLASSIFICATION OF THIS DOCUMENT.. NO. 1 dr- .)o.oument No. 6 V/ NO CHANGE in Class.. 0 TS S S.pr 77 uth3 r.D7 I 7711763 ECREEte: 1 7 MAR 1978 By ozt Approved for Release: 2018/11/19 006749334 - TS Approved for Release: 2018/11/19 006749334 leaders. The Acting President reportedly feels that a cool Soviet reception of his proposal to visit Moscow would indicate that the Chinese Communists have no intention of negotiating a peace but that a Soviet invitation would be encouraging re- garding peace prospects. Under these circumstances, Li would attempt to persuade Soviet leaders to restrain the Chinese Com- munists in the impending peace negotiations. (CIA Comment: CIA believes that the weakness of Li's position in China compels him to seek support' wherever he can find it. The USSR is undoubtedly aware of Li's weakness, however, and would not regard Li as an effective Instrument for advancing Soviet interests in China. The Kremlin response to any overtures made by Li concerning a visit to Moscow is likely to be noncommittal but essentially negative.) ' Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 tp/b T ECRA ,e01- GENERAL 25 MAR 1949 945 1. Portugal removes objection to Atlantic Pact--The Portuguese Foreign Minister has told US Anbassador ilactreagh that Portugal is satisfied that its desire to limit adherence to the Atlantic Pact to ten years is impracticable. The Foreign Minister emphasized that the duration of the Pact was the only point to which Portugal objected. He added, however, that several days must elapse before Portugal can reply to the Pact invitation because Spain has invoked the Luso- Spanish treaty which requires the two nations to consult on security matters. The Foreign Minister indicated that there � Is no disharmony between the Luso-Spanish treaty and the Atlantic Pact and added that "Portugal will not sacrifice her Interests merely to please Spain." (CIA Comment: CIA believes that Spain may have sought to delay Portuguese entry into the Atlantic Pact in the hope of gaining a bargaining position favorable to Spanish Inclusion in the Pact. CIA believes Portugal will sign despite Spanish opposition.) 2. Reported Soviet offer to cease Greek werrilla aid--US Ambassador Grady in Athens transmits a report that the Soviet Ambassador in Ankara has informed his Greek col- league there that the USSR would stop aiding the Greek guerrillas if the Athens Government would guarantee not to support Tito if trouble breaks out in Yugoslavia. Grady cites the French Embassy in Athens as his source. (CIA Comment: CIA gives little credence to this re- port. The USSR has consistently denied that it is providing aid to the Greek guerrillas, and it is highly improbable that a Soviet diplomat would admit in this fashion that the USSR had intervened in the Greek civil war. If such an offer has actually been made, however, it would probably be a part of the war-of-nerves against Tito rather than a serious attempt to win the support of the violently anti-Soviet Greek Govern- ment in an intrigue against Yugoslav*. ) .00cument No. 014� THE C.I.A. HAS NO OBJECTION TO 7HE DECLASSIFICAnakkON THIS DOCUMENT. May ; CiP -s _I _ AO CHANGE in Class. 0 DECLASSI7TED Class. C.771t:' TS S pr 77 sEcREtuth; DDA 1.-!."..C. 77/1763 Date: , olls, By: - 0.21 Approved for Release: 2018/11/19 006749334 � Approved for Release: 2018/11/19 006749334 3.3(h)(2) NEAR EAST-AFRICA 3. -2 Approved for Release: 2018/11/19 006749334 S Approved for.Release:618/11/19 006749334 ".� GENERAL 26 MAR 1949 946 1. Icelandic action on North Atlantic Pact�US Minister Buirick in Reykjavik has been told by Iceland's Foreign Minister that the Government is sure of the support of at least 36 of the 52 votes In the Althing for the North Atlantic Pact and that debate will probably begin 28 March. The Foreign Minister added that he anticipates two days of discussion prior to the vote and that there is real apprehension the Communists may attempt to prevent Althing action by force. (CIA Comment: CIA believes that although Communists In Iceland are capable of creating serious disturbances, they are unlikely to avert favorable action on the Pact by the Althing.) 03JECTIOg TO 7:13 IY:CLA3SIFICATION 014" THIS DOCUMENT. NO. Olt Document No. ei NO CHANGE in Class. 0 DECLASSIFIED Class. CHAEi TO: TS S DEA .McIpo, 4 Ppr 77 Auth: ,;:DDA -FL::1. 77/1763 Dte : 1 7 MAR 1978 By; 02r i tt`Si" /clo CRET Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 28 MAR 1949 6ok_ 5 RET 9 47 GENERAL I. US position regarding Israeli-Translordan negotiations-- The Department of State has advised US Representative Stabler in Amman of its view that US representations to Israel regarding current negotiations with Transjordan would not be productive at this time. The Department � authorized Stabler, however, to tell King Abdullah that the US would be prepared to give strong advice against any action leading to a serious breach of the secret Israeli- Transjordan agreement. In reply, Stabler has indicated that he slill believes the US should take a stronger line toward the Israelis in view of their "defiant and threatening attitude." Stabler suggests that if the US does not take such a line, Israel may extend its frontiers to the Jordan before peace is concluded in Palestine. 2. Denmark desires token arms shi ment from the US-- The Danish Prime Minister has expressed to the US Charge in Copenhagen his disappointment with the negative decision of the US regarding Denmark's request for arms. The Prime Minister indicated he hopes Denmark may promptly receive a "symbolic" arms shipment. The US Charge agrees with the Prime Minister that such a shipment would have a beneficial political effect and would bolster military morale. VIE C. I. A. EA3 NO OBJECTION TO TO DECLASSIFICATION OF THIS DOCUMENTa .0. Oat en/3 5 In 4 Document No. 110 CHANGE in Class. 0 0 DECLASSIFTED Class. CilAr:F.") TO: TS s Dr Jo, 4 Apr 77. Aut,h: DDA _.� 77 1763 Date :1 7 MAR 1978 By: Oq Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 TO GENERAL 29 MAR 1949 948 I. Presidentadviges A.1414.1ah of JJS position--US Representative Stabler in Amman has been instructed to transmit a message from President Truman to King Abdullah of Transjordan concerning the attitude of the US toward territorial adjust- ments in Palestine. The President's message reiterates the US view that Israel should offer territorial compensation for any additions to its territory beyond the boundaries established In the UN resolution of 29 November 1948. After pointing out that the draft Israeli-Transjordan agreement stipulates that its provisions will not prejudice an ultimate political settle- ment between the parties, the message assures King Abdullah that the US would regard any attempt at a major break of the � agreement as a serious obstacle to peace in Palestine and � would be prepared to make strong representations to any party making such an attempt. FAR EAST 2. CHINA: Continued US aid held necessary--US Embassy Nanking expresses the view that Acting President Li Tsung- jen has won the respect and admiration of the majority of politically articulate Chinese as a result of his vigorous peace efforts. The Embassy points out, however, that economic deterioration in Nationalist China has continued at an accelerated pace and declares that If the US does not continue economic aid on the present scale for the next few months, Li will probably be forced to make an early capitula- tion to the Communists. (CIA Comment: Li's political achievements of the past two months have been made possible by a lull in military operati ons and by widespread hopes in China for peace. Li's government, however, lacks the actual power to withstand renewed Communist military operations. CIA believes ex- ternal assistance during the next few months on the present scale would not alter this situation.) Document No. 0/3 MEC. I .A. f:213 NO OBJECTION TT IHE DECLASSIFICATION OP THIS DOCUMENT. NO CHANGE in Class. 0 0 DECLASSIFIED Class. CHANGED TO: TS S DDA yerno, 4 Apr 77 h: DDA REG. 77/1763' Date:1 7 MAR 1978 By: 027 Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 ANNEX PRELIMINARY APPRAISAL OF THE MILITARY COUP IN SYRIA Colonel Husni Zaim, Chief of Staff of the Syrian Army, seized control of the Syrian Government on 30 March. Although detailed information is lacking, Zaim and his ultra- nationalist followers will probably be able to consolidate their control over the Government and, by ruling with a strong hand, rirety be able to solve many of Syria s internal difficulties. Despite Zaim's nationalistic program, US-Syrian relations are not expected to deteriorate appreciably (Zaim is personally friendly toward the West). However, the coup will probably have certain adverse effects. It will check the scheduled Syrian- Israeli armistice talks; Zaim will unquestionably cite the deci- sion of the previous government to enter into these negotiations as proof of that government's unfitness to remain in office. There will also be inevitable delays in the ratification of the agreement for the Trans-Arabian petroleum pipeline and the French-Syrian financial agreement. Moreover, the danger exists that the Syrian coup may provoke distazbances in other Arab states, particularly Iraq and Egypt. Neither of these countries is sufficiently stable politically to insure surviving a serious local outbreak. Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 30 MAR 1949 TO RET 949 GENERAL 1. Dutch conditions for participation in UNCFI discussions-- US Representative Cochran in Batavia has received from the Netherlands delegation there a letter expressing the willing- ness of the Dutch to participate in discussions with leaders of the Indonesian Republic and UNCFI (the UN Commission for Indonesia), as proposed by the UN Security Council on 23 March. The Netherlands letter indicated, however, that Dutch acceptance is based on the understanding that such discussions will not prejudice the rights, claims, and posi- tions of the two parties and consequently will not prejudice the responsibility of the Netherlands for "freedom and order In Indonesia." Representative Cochran expressed his dis- appointment over the reference to Dutch responsibilities in this reply and expressed his fear that such a reference might cause the Republicans to impose conditions on their acceptance. (CIA Comment: The proposed Netherlands-Indonesian discussions with UNCFI are to be held for the purpose of assist- ing the parties in removing the obstacles--primarily the question of restoring the Republicans to authority in Jogjakarta --to the holding of a conference at The Hague on the over-all Indonesian problem. CIA believes that the Republicans are already seriously considering refusing to attend the UNCFI meetings and shares Representative Cochran's view that the Dutch reply may lead to Republican conditions on acceptance.) THE C.I.A. HAS NO OBJECTION TO THE DECLASSIFICATION OP THIS DOCUMENT. Document No, 07(1 NO CHANGE in Class. 0 DECLASSIFIED Class. CHANCED TO: TS S DDA Mamo, 4 Apr 77 Auth: DDA RLG. 77/1763 7 MAR 1978 Date: By: 427 Approved for Release: 2018/11/19 006749334 - SIR- S Approved for Release: 2018/11/19 006749334 %.) TOP GENERAL 31 MAR 1949 950 1. Possible Dutch delaying action--US Representative Cochran suggests tint the conditional Dutch agreement to participate In the impending Batavia discussions, together with the delay In assembling the Dutch delegation there, represents a delib- erate delaying action. Cochran further suggests that the Dutch hope thereby to permit the siltation in Indonesia to deteriorate to a degree that either the transfer of sovereignty to the Indonesians would appear unwarranted or the transfer would take place under such chaotic conditions that the new government would be unable to restore order and would be discredited. He indicates that the Dutch might then insist that Security Council policy had been in error from the start and request UN aid in putting down "a Communist war." Cochran believes tint unless the Dutch cooperate fully at the Batavia meeting, a vigorous and condemnatory UNCFI report to the Security Council is inevitable. din- s 2. US against proposed Soviet-Iranian bargain--The Department - s of State has informed US Embassy Tehran that the US has made a negative response to a tentative British recommenda- tion that Iran offer to withdraw its case against the USSR from the UN Security Council in return for a Soviet agreement to nullify Article 6 of the 1921 Soviet-Iranian Treaty (authorizing the USSR to send troops into Iran under certain circumstances). The Department informed the British of the US view that the Shah would be ill-advised to make such an offer and declared tint retention of Iran's case on the Security Council agenda, In view of the recently increased Soviet pressure on Iran, is more desirable now than ever. The Department added that in seeking the nullification of Article 6 of the 1921 treaty, Iran would be bargaining to obtain a position already possessed under annexes to the 1921 Treaty and under the UN Charter. 01( TiE C.I.A. FL1S NO OBJECIT� Document No. - TO E DECLASSIFICATION OF 1 - NO CHANGE in Class. THIS DOCUMENT. - Li ..-----' THE 6 ------7 0 DECLASSIFIED NO. 04 Class. CHANCED TO: TS S 1 Sr DDA. M31110, 4 Apr 77 1 / R1 rniAr"E----- pate :7 ci Auth: DrA FC. 77/1763 ____ c MAR 1978 By.; 0%1 � Approved for Release: 2018/11/19 006749334 Approved for Release: 2018/11/19 006749334 SW* EUROPE 3. GERMANY: Clay asks OMGUS break with Czechoslovaks-- According to US Political Adviser Riddleberger In Frankfurt, General Clay recommends that US military authorities in Germany break off all relations with Czechoslovaks until satisfaction has been received for the recent sentencing of US soldiers in Czechoslovakia. Clay indicates that such measures should include the expulsion of all Czechoslovak officials and the closing of the border to international transit traffic. Ridtheberger expresses his view that Clay's proposal would mean a break of relations between the US Military Gov- ernment in Germany and Czechoslovakia, not one between the US and the Czechoslovak governments. 4., GREECE: US aid program tit, succeeding--US Ambas- sador Grady, in recommending 1.- continuance of US military aid to Greece, expresses the belief that the outlook for a successful conclusion of the campaign against the guerrillas Is more favorable now than at any time since the inception of the US aid program. Grady feels that a solid basis for the reduction of the civil war to minor proportions has now been established through: (a) the vigorous leadership exercised by General Papagos since the "black" days of January; (b) the effectiveness of the new coalition government in furthering military and economic progress; and (c) the steady increase in popular morale which has taken place within the last three months. Grady stresses, however that the present outlook Is based on the assumption of continuing US aid. Grady com- ments that US failure to appropriate the funds required for continuation of the aid program would not only have a serious material effect but also, by damaging Greek morale, might well nullify the successes which have been achieved with such difficulty to date. - 2 - Approved for Release: 2018/11/19 006749334 d/A- 5