(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005800040071-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Document Release Date: June 2, 2008
• Sequence Number: 71
• Publication Date: December 23, 1946
• Content Type: SUMMARY

Approved For Release 2008/06/02 : CIA-RDP78-01617AO05800040071-3
TREA has not reviewed. Processed IAW CIA TREA arrangement letter dtd
4/11/08.
ARMY review(s)
completed.
DIA review(s)
completed.
State Dept. review
completed
Approved For Release 2008/06/02 : CIA-RDP78-01617AO05800040071-3
 Approved For Release 2008/06/02 : CIA-RDP78-01617A005800040071-3 40 1946
261
~N"tkTIAL'
(' ENERAL
38
British plan for SC action against Albania--A British Foreign
five ictai has i arm ` l m~ba sy 1,ondon that the UK desires
the Corfu Channel mining incident to be treated by the Security Conner
il, as a "situation," not as a "dispute." The British, who consider
, e former more embracing wish to have Albania charged with
` outrageous actton~s"not only toward Great Britain, but toward all
goons, because Corfu Channel is an international waterway.
Views on the effects in Spain of UN actions--US Embassy Madrid
considers that while the short-term effect of the UN debate and
Resolution on Spain is favorable to Franco's domestic positi+,
long-term effect is unfavorable, Mae Embassy believes that
farther discussion of the Spanish case before the Security Co cil
j7-.- %ld favor those who hope that the regime's intransigence will result
3 v oient upheaval, and would be prejudicial to the interests those
who seek an orderly evolution.
3. British re a Chinese proposal to intervene in frdc_chi as--TJS Embassy
London reports that the British Foreign Office has rejected a Chinese
proposal that the two countries jointly "intervene" in Indochina.
SC..P urges revision of Japanese reparations program-4a a strong
recommendation for a downward revision tnlpanese reparations
Yomoval program (which provides for "interim" removals of Indus-
trial capacity subject to "final" removals later on), SCAP states that
the industrial levels left to Japan by the present "interim" schedules,
after some readjustments, will give Japan "a reasonable peacetime
onocmmy, stripped of a war potential and developed to the maximum
leg ree of national self-sufficiency."
SCAP believes that efforts to make additional "final" removals
should be abandoned, and notes that these efforts reflect both an over-
er stimate of Japan's industrial capacity, and a failure to appreciate
Japer`s economic needs. Additional removals, SCAP feels, will cut
into Japan's ability to import raw materials vital to minimum indus-
trial recovery, and will result in a heavy financial burden upon the US.
ARMY, DOS & DIA
review(s) completed.
Document No. 0
NO CHANGE in Class.
D DECLASSIFIED
Class. CHANGED TO: TS
DDA Memo, 4 Apr 77
C?M AIA 11 Ctthe : fp~ ? 77 B17 y63
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TO1C@N"'7ENTIAV
EUROPE
5 AUSTRIA: British gmee bilateral Austro-Soviet nee otiations--The
S t a t e Department ban Informed US M u s t e r Erhardt that he British,
in an aide memoire, have expressed opposition to bilateral Austro-
Soviet negotiations on the problem of German assets and have
described the Austrian Government's attitude as "astonishing, most
untimely and Ill-advised"
0 The British position Is on a ew a a ra
negotiations will lead the Soviets to demand further concessions;
(b) Austria lacks the necessary foreign exchange for repurchase,
and (c) there is a possibility of British or other UN Interest in the
assets under consideration. Erhardt Is advised that the British in-
tend to discuss the matter "on quadripartite basis" at the meeting
of the Austrian deputies on 14 January in London.
6. POLAND: Lenient attitude toward 'oland suested--In a recent
talk with [Z5 Ambassador Lane, Premier Osubka-Morawski declared
that, although his Socialist Party favors closer relations with the US,
the Communists Insist that the USSR is Poland's only friend. The
Premier suggested that if he could obtain some tangible sign of US
friendship, such as a credit for the purchase of coal-mining machinery,
he could refute the Communist charge. Lane recommends that the US
R `give sympathetic attention" to any Polish proposals, but make no
commitments until the Polish Government takes "definitive action" on
US demands for ~a) access to those who claim US citizenship, (b)
adequate compensation to US owners of nationalized property, and
(c) conclusion of a bilateral aviation agreement.
7. RUMANIA.- met tail demands--US Representative Berry reports
that the Soviets have accused the Rumanian Government of failure to
meet its obligations in the joint Soviet-Rumanian oil company and have
made demands which "can only be construed as a deliberate attempt
to gain a dominating position in the Rumanian oil Industry."
Press repression continues- -Berry also reports that the Opposi-
tion newspaper which attackede Government for Its fraudulent conduct
of the elections has been
suspended Ind y and that authorities are considering its permanent
suspension.
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TOIC
NriAV
FAR EAST
8, PHMIPPr s: Mi3itary baser-President Roxas has told US Aaabas--
sador McNutt that the Philippine Government desires maintenance of
US bases and retention of such US troops as may be required. President
Kolas regards this matter as a "mandate and settled policy" of the
Philippine people.
9. C HT'A : Chinese set" British financial cooperation in do *Iso - -
Central Bank of Nina officials have advised the Assistant US Treasury
Attache in Shanghai that a Chinese financial delegation, headed by the
Central Bank's Governor, has left for Hongkong to obtain British coop-
eration in dealing with (a) the flight of capital from China to Hongkong,
(b) the increasing diversion of Chinese overseas remittances to Hongkong,
and (c) the smuggling and other diversion of gold and Chinese exports
through Hongkong, The Bank officials further hinted that the British,
increasingly restive over their secondary position in China, may seek
larger share of Chinese trade in return for cooperation.
l teralational financial sition ars precarious--According
to new international balance -of -payments estimates submitted to Embassy
Nanki. by T.V. Soong, China will show a deficit equivalent to US $332
million for the second half of 1946 and to US $ x81 million for the full
year 1847. Soong also provided figures showing that as of 18 December,
the Central Bank of China possessed net holdi of foreign exchange and
bullion worth about US $423 million. He added ? at "U the prospective
deficit for 1947 has to be financed out of official holdings, there will be
nothing left for currency reserves."
10. FRENCH INDOCHINA: Motives in Hanoi incident--US Consul Hanoi re-
ports that the Vietnam attack on French civilians and military forces
at Hanoi on 19 December was "undoubtedly premeditated" by the Viet-
nam Government. The Consul is certain that, in forthcoming conversa-
tions in Indochina between Vietnamese representatives and Marius
Moutet (French Minister for Overseas France), Vietnam will insist
upon greater independence than the French had ever envisaged.
_3-
TOP W E NT1 M
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TO
THE AMERICAS
I.I. ARGENTINA: Enemy aliens elude iwlice net--US Ambassador Messer-
smith reports that (a) of 52 enemy aliens whose arrest and deportation
has been ordered by the Argentine Government, 32 are still at large
after an intensive six-weeks police round-up, and (b) of the 20 who have
been arrested, four have obtained writs of habeas corpus from the
courts, which have repeatedly held the deportation proceedings invalid.
He adds that the Argentine Government is making a "determined effort"
to apprehend the missing 32, two of whom may have escaped to other
countries, and is investigating other persons on the lists submitted by
the US and UK Embassies.
12., BRAZIL: P ce. s~ d~x~s c3 ~a with US$R -US Military Attache Rio de
Janeiro reports that some Brazilian news papers are demanding severance
of dipomatic relations with the USSR because of the alleged mistreat-
ment of a Urazil.ian diplomat in Moscow. He believes that, however the
incident is settled, it will weaken Brazil's Communist Party.
TONOWNTIAL
Approved For Release 2008/06/02 : CIA-RDP78-01617A005800040071-3