Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 20, 2016
Document Release Date: 
July 17, 2006
Sequence Number: 
Case Number: 
Publication Date: 
December 31, 1946
Content Type: 
PDF icon CIA-RDP78-01617A005800040077-7.pdf331.65 KB
Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7 ARMY review(s) completed. State Dept. review completed Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7 S 1 DEC 1946 Approved For Release 2007/0 36 / 7 : CIA-RDP78-01617AO05800040077. 6 - 1 GENERAL British intervention in Indochina London reports that Bevin has rejected the Chinese proposal for Stma- 1. UK rejects Chinese~rosal for intervention in indochtna--US Embassy 2. Chinese fear Dairen incident strengthens Soviet position--US Embassy Nanki ngreports that the Chinese Foreign Off tee has informally taken exception to the State Department's announcement that Soviet authorities were within their rights in refusing recently to permit private US citi- zens to land at Dairen. The Foreign Office considers that the Soviets are not acting within their rights in refusing permission for Chinese occupation of the city. It fears the US statement may strengthen the Soviet position. 4. Bern fnte r? tation of ch o~?3et attitude is o N- According to US Charge Brussels, Foreign Minister Spaak attributes the "improved atmosphere" in the General Assembly to a specific Soviet policy decision reached between the Parts and New York Council of Foreign Ministers meetings, Spaak believes the decision was dictated by: (a) the drag on Soviet industrial recovery of present military forces abroad and at home; (b) possible unanticipated difficulties in atomic research; (c) the realiza- tion that Soviet obstructionist tactics at Paris had proved ineffective, had Document No. 6O_ ARMY & DOS review(s) completed. NO CHANGE in Class. CJ r-i nV0T.ACCTVTV7) Approved For ReleasC i Cla s. CHANGED T0: TS S (p,1 DDA Memo, 4 Apr 77 25X1 Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7 SECRET L, ' DENTIAC' placed the USSR in a slightly ridiculous light, and had hampered its propaganda; and {d) a realization that only by more elastic tactics could the USSR hope to achieve anything through the UN. 5. Us urges nddudication of UK-Albanian case--The State Department has gested to the US Delegation In New_rk that it suggest to Cadogan that the UK-Albanian case might be handled by the International Court of justice. The State Department understands that the British favor a political rather than legal solution of this case. EUROPE 6. YUGCLAViA: Espionage trial to be used to discredit US officials>- A Yugoslav defense lawyer has informed U Charge Hickok that trial of rso accused of aiding members of the US Embassy Belgrade in "unfriendly work and espionage against the Tito r me' will open on 31 Dotnber Hickok be- lieves the trig o an effort to Intimidate the Embassy staff, to terror- ize the Yugoslav people, and to limit Embassy contacts to representatives of the Tito Government. 7. ITALY: Deliberate anti-Allied a ration--The Supreme Allied Commander Mediterranean reports that anti-Allied 4agitators" were active during the recent demonstrations In Padua. He adds that a large section of the Italian press, particularly Communist and Socialist papers, is directing an inflammatory campaign mainly against the British. SACMED expects Increasing attempts to foment public demonstrations against Allied forces. 8. GERMANY: l tr'eni to be raolac ACC--US Ambassador Caffery in Paris has been informed that General Koe will soon be replaced as the French member of the Allied Control Council reportedly because of his failure to obtain clearance from Paris before making "numerous declarattons." Cs fiery adds that Admiral Baijot (Assistant Chief of Staff of National Defense) is apparently receiving "most serious consideration" as successor to Koenig. 9. HUNGARY: Mass arrests of non-Commu fists--Thhe Smallholder Minister of Information, Bognar, has told US Minister Schoenfeld that the 300 persons Approved For Release IQfi '.'8-01617A005800040077-7 Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7 RET recently arrested by the Communist-controlled political police include the "leading figures of all Hungarian non-Communist anti-German war- time resistance movements." Bognar admitted "the possibility" of an attempt to implicate the 'US and UK in a subversive plot, but said that the Smallholders regard the arrests as related primarily to the domestic situation and as Communist preparation for seizure of power by elimin- ating potential centers of resistance. Bognar added that the Smallholders are postponing any action until the "degree of Soviet implication" in the arrests is determined. 10. FRANCE: Position of the Communist Party--According to US Ambassador Caffery, qualified observers consider that, because the Communist Party has nothing to gain from participating in a bourgeois Government which will have to carry out highly unpopular measures, a majority of French Communist Party leaders now favor swinging vigorously to the left and. passing into opposition to the next Government. Soviet diplomatic inter- ests, however, demand that the Communists continue their strategy of gaining as many high offices and as much influence within the Government as possible. Caffery doubts that any party or group in France can ex- ploit the "widening contradiction" between French Communist and Mos- covw interests. Blum not 'o be ntesident al candidate--Leon Blum. has informed Caffery that'4under no circumstances 'will he be a candidate at the forth- coming elections either for the Presidency of the Republic or of the Council of Ministers (Cabinet). Caffery, however, "is not convinced" that Blum would decline the former post. FAR EAST IL INDOCHINA: New Vietnam Government may be estabU$h i--US Consul General Saigon reports that the eventual solution of the present Franco- Vietnam difficulty may be found in a new Vietnam Government to be formed under either the former Annansite Emperor Bao Dal or the pro- Chinese former Vietnam Foreign Minister,.. Nguyen Tuong Tam. The latter is now reportedly forming a refugee Vietnam Government at Nan- king. French authorities could deal with a new government without losing face and could then more successfully insist upon the independence of Cochin-China. Approved For Release WMF -Thk~1-01617A005800040077-7 Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7 66NW1Al' A.2. CHINA: Anti-US demonstrations--US Consul General Peiping believes hat current anti-US demonstrations and public feeling are to be taken seriousty, and reflect discontent both with US policy and with the National government. THE AMERICAS 13. BOLIVIA: Ar tin rasa s Bolivia for minerals--US Ambassador Bowers reports from Santiago that Bolivia s Ambassador to Chile states that (a) Bolivia will receive no Argentine food supplies during 1947 un- less it sells Argentina tin, lead, and antimony; (b) Argentina is offering to buy these minerals at prices above those paid by other countries and to install foundries to process them, and (c) shipments of necessities from the US might reduce Argentine pressure on Bolivia. Ambassador Bowers` informant predicts that unless the US makes a new contract for Bolivian tin, meeting Argentina's price offer, a collapse of mining production in Bolivia Is inevitable." 14. PERU: Argentina offers Peru food and credit--Haya de la Torre, leader of Pert s poweiful APRA Party, has told Embassy Lima that (a) Argen- ? ina has offered Peru large credits and food In return for a trade agree- ment. similar to the recent Argentine-Chilean agreement; (b) he believes Peron's plans for a southern economic bloc could and should be countered by a Peruvian-sponsored plan for increased trade among the countries of South America, In the Embassy's opinion, Maya is attempting to force she 11S to aid Peru financially without a prior settlement with Peru s US creditors. The Embassy advises against "any loans to Peru until the debt is settled." Approved For Release Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7 Approved For Release 2007/02/07 : CIA-RDP78-01617AO05800040077-7