(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005900030002-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 81
• Document Creation Date: December 9, 2016
• Document Release Date: April 24, 2001
• Sequence Number: 2
• Publication Date: February 28, 1947
• Content Type: SUMMARY

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GENERAL
l.. Turks will not raise Question of regional Straits defense--US Ambassa-
bison reports that the Turkish Premier and Foreign Minister share
W
the State Department's views on the inadvisability of proposing a regional
agreement for defense of the Straits (see Daily Summary of 21 January, ,
-Item 4). Because Soviet policy "unquestionably is to dominate Turkey,
the Foreign Minister feels that the USSR would not act in good faith but
would take advantage of any new proposal on the Straits question to
weaken Turkey's position. He therefore believes it would be Most un25X6
wise for the Turks to take any further initiative in the matter.
2.
2UROPE
3. FRANCE: NaMthisterwse stn deal to acquire _US_s~li -Navy
Minister Lauts Jacquinot has told US Ambassador C. e~t the French
Navy 'sorely needs ships" and that, if the US can supply some ships,"
. acquin of will "strongly support" the US in regard to privileges for the
us Navy at such North African ports as Port Lyautey.
4. USSR: US Embassy laps to protest Soviet detention of US citizens-?-US
Embassy Moscow plans to send a note of protest to the Soviet Foreign
rice regarding a number of claimants to US citizenship who, durIW
the past two years, have been arrested in eastern and southern Europe
and now apparently are being detained in labor camps in the USSR. The
note will point out that, since November 1945, over 100 such cases have
been called to the attention of the Soviet Government, and that the Embassy's
Inability to obtain a satisfactory reply is _"a matter of the gravest concern"
to the US Government.
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5. YUGOSLAVIA: Permission refused US Newsmen to visit guerrilla cap--
US Charge Cabot reports that USa newspaper correspondents haveI en
refused permission to visit Buses, Yugoslav camp for guerrilla training
of Greek refugees. Greek guerrillas reportedly are "being farmed out?
to small Yugoslav villages in anticipation of the UN Balkan Investiga.
Commission's arrival in Belgrade. (CIG sources confirm that all Greeks
are oef temporarily evacuated from Bulkjes and other training camps.)
S. FRENCH INDOCHINA:
old US Consul Reed of his be
Increasing among Chinese made
homeless by recent fires; (b) French, Chinese, and Soviet Communist
agents are active in Indochina but do not appear to be working In con-
cert; and (c) the Vietnam Government is dominated by Communists
who are establishing a nationalist state as a prelude to a Communist
regime In Viet m. Reed feels that, while Annamite Communism is
a p tenti l threat, it is overemphasized as a present danger.
T. JAPAN: War Department favors WFTU visit to and Korea--
Secretary of Tar Patterson, replying to General MacArt -nr a i ectlons
to the proposed visit of a World Federation of Trade Union mission to
Japan (see Daily Summary of 14 February, item 3), states that the exclu-
sion of the WFTU from Japan and Korea would result in criticism of US
policy both at home and abroad. As It appears probable that entry of
the WFTU into Northern Korea "can and will be accomplished," - Secre-
tary Patterson points out the US Government would be placed In an un-
favorable light if it refused a similar opportunity in areas under US
control.
THE AMERICAS
8. BOLIVIA: Arrival of special Ar, entire mission--US Am r Flack
reports that the unexpected arrival In La Pass on 25 February of a special
Argentine mission for negotiating economic and commercial agreements
(see Daily Summary of 20 December 1946, Item 4) was regarded by the
FAN EAST
Increase in Communist activt rep_ -
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Bolivian Foreign Office as "most untimely," Inasmuch as (a) definite
action on the agreements would have to await the seating of the new
President and Cabinet, and (b) shipments of Argentine food and other
products, dUring January and Febr+yshad not fulfilled Argentina's
commttan t for that period.
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GENERAL
27 E Lb izs+,
315
roves tee fulfilment of Cha mpulte
2. Arg"tina
Embassy Lima reports that, according asked what measures Peru has
Peruvian Foreign Office, Argentina his a.s agreement.
taken in fulfilment of its commitments under the Chapultepec (CIG Comment: This suggests that the Argentine Government
may be attempting to prove that other Latin American Governments have
done less than Argentina to fulfill their Chaapultepec commitments-)
EUROPE
3. HUNGARY: Soviets arrest Smallholder leacher--US Representative
Seb)mdeld reports that Soviet accupa Secretary-General of Bela
Kovacs, member of Parliament and former
Smallholders' Party, on charges of organizing espionage against the
USSR and participating "in the formation of armed groups, members
of which committed terroristic acts and murders in Hungary against
members of the Soviet Army." (The Smallholders had previously re-
fused Communist demands that Kovacs' parliamentary immunity be
waived to permit his arrest on charges of conspiring to overthrow the
Hungarian Government; see Daily Summary of 24 February, Item 4.)
(CIG Comment: The Soviets have not, until now, openly inter-
fered in the current campaign of the Communists to gain control of the
Government by Implicating leaders
'~his direct violation ls
Party in an alleged conspiracy.
sovereignty suggests that the USSR Is determined to obtain a Com-
munist-dominated regime prior to the withdrawal of Soviet troops.)
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4. GERMANY: Soviet condemnation of US-UK bi-zonal policy--According
to Acting US Political Adviser Mucclo, Mars awl Sokoracy, Soviet Repre-
sentative to the Allied Control Commission, on 25 February read before
the Commission a prepared statement bitterly attacking US-UK zonal
fusion. Mucclo believes the attack may possibly presage the Soviet line
at the coming Council of Foreign Ministers in Moscow. Should the bi-
zonal policy prevail, Sokolovsky declared, it will lead to the partition of
Germany and threaten European security by enabling the Junkers to re-
gain control.
(CIG Comment: Sokolovsky's condemnation is considered the
initial Soviet effort to defend the USSR's unilateral action in Germany
by placing on US-UK bi-zonal policy the onus for failure to implement
German economic unity.)
5. ITALY: P articipation in African territorial disposition ur--US Am-
bassador Dunn recommends that, it the Italians request permission to
accompany the Quadripartite Commission of Inquiry on Its visit to
Italian African territories, the US will favor this request. Dunn believes
that "some manner of Italian participation" would go a long way towards
reconciling the Government and public opinion to the final disposition of
the territories.
6. YUGOSLAVIA: Countermeasures to nationalization of. US perat --US
Charge Cabot, in view of Yugoslav failure to provide for US financial
interests In the recent property nationalization law, recommends the
following countermeasures: (a) blocking of Yugoslav assets in the US
until a settlement In reached; (b) payment of US claims from these
assets, if negotiations fall; (c) formation of a commission to pass on
US claims; and (d) blocking of all financial transactions between the US
and Yugoslavia except under license.
NEAR EAST-AFRICA
7. IRAN: Shah may be co em Plagm t avam's removal--US Ambassador
Allen reports increasing indications that the Shah, encouraged primarily
by the Army Command but also by political malcontents, may be seriously
contemplating the removal of Qavam prior to the convening of the Parlia-
ment. The principal basis. for such action would be allegations of cor-
ruption and fraud.
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(GIG Comment: Because of Qavam's political strength and
anticipated large majority in the next Parliament, it would be difficult
for the Shah to remove him from the Premiership without his ? ,isent )
FAR EAST
3.., FRENCH IIl CHINA: Federated state ested--US Consul Saigon
reports the opinion of the President the P oral Government of
Cochin China that a federation. rather than a union of the three districts
(Tonkin, Annam, and Cochin China) claimed by Ho Chi Mink's govern-
ment as parts of Vietnam, might solve the problem of Cochin China's
lure status. The President insisted, however, upon considerable
autonomy for Cochin China to avoid domination by Tonkin.
eco tl a o f im rial r e g i m e u likely -A Foreign Office
icial has told US Ambassador Caffery in Paris that while recognition
of an Imperial regime under the former Emperor of Annam cannot be
entirely excluded, it is extremely unlikely in view of the Socialist-
Communist completion of the present French Government.
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GENERAL
6 FEB 1947
314
1. Embassy Moscow ores permanent Greek Border Commission-US
Embassy Moscow fears that the US and UK may be presented with a
"lightning fait accompli" of Soviet domination in Greece unless an
effective permanent border commission is operating prior to the with-
drawal of British troops. The Embassy points out that Soviet prepara-
tions to exploit any opportunity in Greece. have recently been given
impetus by (a) the continuing political and economic chaos which, con-
trary to Soviet expectations, the US and UK have failed to check; (b)
the effect which control of Greece would have on the problem of Turkey
and the Straits; and (c) contemplated UK troop withdrawals.
EUROPE
2. RUMANIA: Reaction to US food gift--US Delegate Allied Control Com-
mission Bucharest reports that the gift of food by the US to relieve
famine conditions,has created "widespread satisfaction" throughout
Ru. tia. He believes that it will be a long-term factor in maintai
good will.
FAR EAST
3. C1f1NA: Third are~lrs on reor[aization of govern--Chinese
minority party leaders have expressed to Ambassador Stuart their fears
that the deteriorating Chinese situation will drive the liberal groups into
the Communist camp. Carson Chang, leader of the Social Democrats,
indicated he would not join the Government because he could be more
effective outside the Government in influencing change. The General-
issimo, according to Chang, is the greatest stumbling block to a genuine
reorganization because "he can not conceive" of any successful solution
by "democratic processes."
Soo doubts effectiveness of economic controls--According to
a report from US Treasury Attache Nanking, even T.V. Soo , President
of the Executive Yuan, believes that the Central Government a emergency
economic control measures will provide only temporary respite and do
not affect the underlying economic situation (see Daily Summary of
25 February, item 5).
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4. FRENCH DMOCHMA: Compromise on Cochin China exacted
Tess to -
or ery opinion that the government set tip in Cochin China by
Admiral. d'Argenlieu will not last long and that the French Government
will be compelled to enter into a compromise with Vietnam' regarding
Cochin China's future status.
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2 5 FEB 1947
313
GENERAL
:UROPE
. POLAND: Communist control increases- told US A~,~
.b. `M dor ~e that the now little Constitution pass Parliament,
~;ich gives absolute power to the "councils of state," will place "com-
control of the nation' ? In the Manse of Communists and will remove
.at r i s e of authority from the Council of Ministers and from Par-
A -r
a j it. Lane concurs pines and adds that the 1 x
v=ifl, for the time a perm d to believe that they P
-iprat part in the Government, but that actually the Communists
,} i -not allow them to make policy decisions.
Continued Us "symetic aids" sought--Herne Alphand,
i,, Off .cwo Economic Director, hp s expressed to a member of US
{~z ,f sy Paris the hope that the US would continue "sympathetic aid"
to stave off possible political and social repercussions which
~z "Impel" Impel" France to draw closer to "another" orbit.
np2d--US Political (7b-
4. G 1lII.A1'TY: Reorgization of French Zone jp
n , r Mayer reports from Baden-Baden that as administrative re-
al the French Zone is to be announced soon." According
l ~ I:V?are , the French plan is to decentralize authority by delegating
rhymer to the Regional Military Governments which will in turn
? more responsibility to local German authorities. Mayer adds that
t~l
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the reorganinatian might be considered "a suitable occasion to replace
General .Koenig " as Military Governor of the French, Zone.
FAR EAST
5. CHINA: Government's abili to carry out economic controls doubted
US Ambassador Shaft reports that grave skop -M IS= In EOF-
Chinese circles as to the ability of the Central Government to carry
out the emergency economic control program aced on 16 Febru-
ary. Many "Informed and Intelligent ' people feel that the measures
will prove only a stop-gap "which may for some time arrest economic
disintegration but cannot provide more than tempoarary relief."
C to mgft his m--Ambssador Stuart also
reports that the Chinese Minister of ommwnications is trying to per-
suade Chin rig Kai-shek to adopt a program whereby the Central Govern,
meat would (a) Institute complete political reform In China south of
the Yangtae River; (b) assume a defensive attitude in Manchuria; and
(c) clear the major rail lines passing through Communist-controlled
areas in Shantung Province and immediately south of Shantung. The
Communications Minister believes that this program (decidedly less
ambitious in Its military aspects than earlier Nationalist plans) to well
within the capabilities of the Government forces, but he notes that "arms
are desperately needed at the moment." The Chinese 0-2 has also in-
formed the US Military Attache that, at the present rate of consumption,
the Nationalists' supply of ammunition would last only three months.
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EUROPE
2 4 FEB 1947,
312
1. RUMANIA: Sr i t r wale--U3 Representative Berry reports
25X1 C that, Soviets
have Dlg= o or , by 15 April,
of all but four divisions of Soviet oc tion troops (currently estimated
at 10-12 division). oft Soviet miltt rl C
commander will have unaer his cow a "formidable civil osgsaiz~e-
tion Of Soviet operators to co trot the country- in elvillan guise.
2. USSR: Violent inbsasta lilt on U9--Atcordlg to US Embassy
Moscow, Soviet pry attacks an the US have reached an unprecx-
dleuted In nsity. The Embassy believes this attitsde maybe designed
to cover up certain Weaknesses made evident by rem failures of
Soviet Policy at home and abroad. In the Embastsy's view, the press
campaign is calculated to create am M the Western Pours an attitude
of Pessimism regarding the fortbcomissg CFM mom, so that the W04 25X6
erri delegates will be grateful for eve minor Soviet concessions.
3.
4. HUNGARY: Colkisge of coalition Government again roported imm t--
US Minister SCWbi e reports remier agg now expects om-
muniets and Social Democrats to withdraw from the coalition Governuctent,
because the Smallholders Party refuses to waive parliamentary immunity
for its former Secretary-General, Bela Kovacs, who has been accused by
the Communists of Participating in the alleged sashversive $ t against . 11 the Government (see Daily Summary of 2? January, item 5). NOW fears
that leftist -Inspired disturbances would make it Impossible for a purely
Su 1lboldera' Government to Maintain order and that new elections may
therefore have to be held.
25X1X
5. FRANCE: Possible removal of kept Army.
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,xeP-sue
omment: Should Petit become Commanding General of
the Army, the Communists will, have gone far in neutralizing the effective -
?te.s of the Army in putting down any Communist attempt to take control
the Government by force.) 25X6
$.
7. GREECE: Further views on Greek economic crisis--Paul Porter, Chief
the Economic Mission to Greece, reports that the Greek economic
c1-,x=is is so acute that if the Greek Government awaits the final recom-
mendations of his Mission, the situation will have "deteriorated to the
p'oin. where little could be accomplished." Porter is therefore cooperat-
ing -ith the US Economic Mission and the US-UK Currency Commission
to formulate "`specific immediate undertakings by the Greek Government"
to combat further wane and budget it
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FAR EAST
8. CHINA: Chinese Government re o zatlou-?US Ambassador Stuart
has be4m form Generalissimo that the reorganisation of his
government will be undertaken "in the closing days of this month?"
Courier shi dela d--Stuart also reports that on 23 February
(2 days before the scheduled departure of the US courier ship for Dairen),
the Soviet Embassy handed him a cote stating that it could not notify the
proper au cities concerning the ship's departure (as the US had re-
quested) because notiffa cm must be made through US Embassy Moscow
to the Soviet Minister of Foreign Affairs. The State Department has
Instinx-ted Embassy Nanking to hold the ship pending further instructions:
US aid In captgft rtvate foreign assets --T .V. Soong has
informed US bury Attache NsWki* that he is anxious to obtain from
the US and UK Governments a list of private Chinese holders of assets
in the US and the British Empire. According to Soong, the Cesea
Government Is considering taking steps to grain control of these private
assets. Soong believes that without US and UK cooperation such steps
"cold not amount to muck."
THE AMERICAS
g. PERU: Debt teettleem f et
ir umccep isl to US--US Ambassador Qj-
Cooper, on bistructions from Washington, has wormed the Peruvian
MinIter of Finance that Peru's latest dollar debt settlement offer is
completely unacceptable" to the US.
10. VENEZUELA: Revolutionary movement is reported ready--US Military
Attache Caracas marts. followers of ex-prey sl`y Lopes Contreras that assert that all local preparations for a revolutionary movement have
been completed (see Daily Summary of 12 February, item 4).
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OPF
aLiticai d fifcu #les anti
FRANCE: F ci ted-US Ambassador Caffery
e rrs that public confidence and morale has gradually deteriorated in
;U a past three weeks, because of a growing general conviction that the
Aresent broad coalition Government by its very nature to incapable of
a the decisions necessary to restore the French economy and save
Franc. The cold wave has also been a contributing factor. Caffery
believes that a political and economic crisis within the next several
.konths "`seems almost inevitable." The mza nitude of such a crisis,
he adds, probably will depend largely on how the financial and economic
Qt atton evolves; if it deteriorates too far, an "extremist" solution of
Frances's difficulties mmbt re
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