(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005900020001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 74
• Document Creation Date: December 9, 2016
• Document Release Date: March 21, 2001
• Sequence Number: 1
• Publication Date: December 31, 1947
• Content Type: SUMMARY

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"Mingsawie DAILY SUMMARY
1 Oct 1947 (#497) - 31 Doc 1967 (#572)
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GENERAL
1. Greece yrotests to Yli.goslavia--US Embassy Athens reports that the
GrL Goyerimekai iapres.r.11.ted a xiote to the Yugoslav Legation pro-
testi.ng the dissenitnation of news by the Belgrade press and radio
designed totax,tiE,,ate revolt hi Greece. The note also states that Greek
authorities have evidence that the rebel radio is established on Yugoslav
territory. Th z note concludes that: (a) there can no longer be any doubt
of
the support given by the Yugoslav Government to the rebellion of
the bandit Markos and Mr, followirig", and (b) the Yugoslav attitude is
contrary te the UN Charter and constitutes open intervexition in the
internal afafra of Gnece.
2. Eo,r11 Yuvoslav recoo.,,.tipn pf 1,V.iarltos hinted.--The UK Ambassador
Belgracle, has informed US Ambassador Cannon that he gained from
"general atmosphere" of a conve.rsgion with the Yugoslav Deputy
re.-Te.ign Mester the impression that "the Yugoslav government is
centnmplating early recognition of the Markos group."'
3. Arabs turn to UK at 011,2_01152 of US---US Charge Dorsz reports from
Baghdad that, in view of US and Soviet support of the pa.rtitico of
Palestine, the Arabs feel that the UK is the only big power to whom,
they can turn for assistance, fie adds that the USSR has never inspired
friendshtp and that the US now "has let the Arab world down" to such
an extent that the Trsgis consider the US unfriendly.
EUROPE
4. GERMANY: Continued Soviet pressure on political opposition?US
Political Adviser Murphy reports that in a further move to oust the
leadership of the Christian Democratic Unior, (CDU) in the Soviet
Zone, the Soviet Military Administration has simultaneously: (a) recog-
ized a new party eRecutive; and (b) named new editors and a new licensee
for the CDU Berlin paper :3-Eld authorized an increase in the paper's etr-
e lation from 50,000425,000. Murphy adds that the recently ousted
party officials, Kaiser and Lemmer, still consider themselves legitimate
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CDU heads and have been conferring with CDU officials from the
Soviet and Western Zones; these officials have not yet reached a
decision regarding dissolution of the party in the Soviet Zone.
E___steslAcily_let efforts to oust West from Berlin--US Am-
bassador Smith shares Ambassador Murphy s misgivings over the
reported UK suggestion that "some reparations" be given the USSR
to keep Soviet officials from creating intolerable conditions in Berlin
for the Western Powers (see Daily Summary for 26 December, item 5).
Smith considers that any such attempt to appease the USSR would dis-
regard "what we have learned from experience in dealing with the
USSR." Smith also anticipates that Soviet officials in Berlin will
undertake a "noisy campaign" and make conditions as unpleasant
as possible to "scare" the Western Powers into evacuating the city
(see CIA Special Evaluation No. 23, 22 December). Smith believes,
however, that the Kremlin will not push matters to the breaking
point on any European frontlat least until the USSR has further con-
solidated and organized the Satellite economies and military estab-
lishments.
5. FRANCE: France desires improved relations with Franco S ain--
An official of the French Foreign Office has told US Ambassador
Caffery that, in view of the Cominform Declaration and the recent
activity of French Communists, France wishes to improve its rela-
tions with Franco Spain. As a step in this direction,the French hope
to begin official conversations with the Spanish in January looking
to the gradual reopening of the French-Spanish frontier and the eventual
resumption of normal commercial relations between the two countries.
Caffery's informant observed that because of open Communist efforts
to take over western Europe, France must strengthen its relations
with both Spain and Portugal, as well as its other neighbors.
6. USSR: No evidence of serious food shorta es Embassy
Moscow reports that, although certain bottlenecks have retarded dis-
tribution, there is no evidence of serious food shortages in Moscow.
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Although the people fear that the present availability of goods in state
Itores may not continue, there has been no increase in the state-con-
.irokled orices established at the time of the recent monetary decree.
NEAR EAST-AFRICA
7. TURKEY: Arab requests for arms refused--Foreign Minister Sadak
has informed US Ambassador Wilson that requests for arms made by
representatives of Arab states have been refused by the Turkish Gov-
ernment. Sadak informed the Arabs that: (a) such supply would place
the Turks in an 'Impossible" position with regard to the US, which is
now supplying arms to Turkey and which supported the UN decision to
partition Palestine; and (b) such aid would be a violation of Turkey's
obligations as a meraber of the UN.
8. 'DA LESTINE:?-rritish to- interce_pt PAN YORK and PAN CRESCENT--
US Consul Macy reports from Istanbul that the British have stationed
a frigate and two destroyers at the exit of the Dardanelles (with a
cruiser available for boarding operations) to intercept the Zionist
immigrant ships PAN YORK and PAN CRESCENT. (According to a
IA source, the two ships are due off the Palestine coast on 1 or 2
January.)
THE AMERICAS
9. PARAGUAY:psisiLittg....siium on of extraordinaz by MorIgko--
US Embassy Asuncion has been informed by the Argentine Ambassador
that Finance Minister Gonzalez, the Government's candidate for the
presidency, has so little support that he could only hold office as a
"'Presidential puppet." The Embassy's source added that a group led
by Foreign Minister Vasconsellos is now seeking a formula whereby
Morinigo can assume extraordinary powers until he can call for new
elections and hold a new convention to elect his successor.
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GENERA Is
1. UK_p_l_gmAtess concernime "free" Greek governmen?A UK Foreign
Office official has informed US Embassy London that the UK proposes
to. take, the following steps concerning the Markos regime: (a) instruct
UK representatives in Belgrade and Sofia to inform the Yugoslav and
Bulgarian Governments that "by no stretch of international law can
the Markos group be considered to have the rights even of a belligerent,
and therefore it does not have the status of a government"; and (b) in-
struct the UK Ambassador in Athens .to urge the Greek Government
not to suppress indiscriminately non-Communist leftist parties but
to endeavor to persuade leftist splinters" to condemn the Markos
group. The official saki that while Satellite recognition of the Markoe
regime would create a "tricky" situation vis-a-vis the UN, he thought
that "the Greek Govermzent could a.sk the US, or the UK to send troops
to Greece to assist it in meisting aggression." The official also ex-
prssed the opinion that recc.oeition of the Marko s regime might take
elace stag, and that Albania, .sti;.1 technically at war with Greece,
mig,ht,be the first to accord recognition "as a test."
2. Reported Satellite intentiosas in Greece?The US Military Attache in
Belgrade believes that the announcement of the "free" Greek govern-
ment strongly implies imminent recognition by the Satellites. The MA
considers that the USSR and its Satellites will 'do everything to estab-
lish a Communist Government in Greece sh.ort of bringing on World
War III." Tie expects the Satellites successively: (a) to step up con-
siderably shipments of materiel and supplies; (b) to assign military
missions to the "free" government, "thereby adopting a 'Truman
doctrine' for Markos"; and (c) to supply more volunteers and perhaps
inte.rnational brigades.
EUROPE,
3. GREECE: ' Strong, Greek aritffortnecessary for relief of Ko:aitsa.--
A ccording to US Embassy Athens, the Greek Commanding Officer of
the jannina area believes that the current guerrilla operation against
Konitsa is the work of Soviet and Yugoslav experts rather than of
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Crfitlefh$MECRT
E
"11Uilf/L I
amateurs because it is so well planned and executed. The
toiltant US Military Attaches believe that Konitsa can be relieved,
tiey point out. that: (a) the operation will require additional re-
1_71)!crcements and a strong effort by the Greek Army; and (b) if the
cyperation is successful, the resulting concentration of the Greek
iTJ-zny around Konitsa will leave jannina "badly exposed.** The Greek
Corhmanding Officer also declared that Greek Army casualties have
extremely heavy and that guerrilla ammunition is apparently
tualimited.
TRIESTE: -Yugpik.avs press for early appointment of Governor--US
A.rryJnssador Dunn reports that the Yugoslays are exerting pressure
the Italians for early agreement on a candidate for Governor of the
-Pros. Territory of Trieste. Dunn believes that this pressure reflects .
7..772.]Icslaviaas desire to get US and UK troops out of Trieste and has a
-Jery definite bearing on Yugoslav and Soviet intentions toward Italy.
adds that the UK Ambassador has hinted to De Gasperi that the
iTic "would not be at all sorry" if Italo-Yugoslav discussions regard-
Lig a Governor came to nothing.
5. ITA LY: Anti-Communist moderates considering split with CGIL--The
uS Military Attache in Rome reports that the Christian Workers Union
is planning a congress in January to discuss the present policy of the
1talisn General Confederation of Workers (COIL) and the establishment
oZ a movement similar to the new Force Ouvriere in France. The Attache
believes that such action may lead to the secession of all moderate labor
groups from the CGIL, which would then be composed only of leftist
extremists.
(CIA Comment: The withdrawal of anti-Communist elements
from the COIL would deprive the Confederation of only about 18% of its
present membership. As the secessionists would be primarily white
collar workers, their defection would not, in the immediate future,
reduce the CGILis capability for instigating a paralyzing general strike.
On the other hand, a new anti-Communist labor movement could serve
as a nucleus for a far larger anti-Communist labor group which in
time could neutralize the capabilities of the Communist-dominated CGIL.)
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6. .UK: US statement welcoming UK-USSR_pact st_Igw_led?The UK
Foreign Office has told US Embassy London that the public does not
sufficiently recognize that the recently signed UK-USSR agreement
fits in with the purposes of the European recovery program. Accord-
ing to the Foreign Office, the agreement has been interpreted in some
quarters as a UK move to reorient its trade from the US to the USSR.
.A Foreign Office official believes that a formal US statement welcom-
ing the agreement in connection with the recovery program would be
most helpful in Europe.
NEAR EAST-AFRICA
7. TRANSJORDAN: Government's resignation may impair Arab solidarity--
US Consul General Macatee reports from Jerusalem that TransJordan s
Prime Minister, Samir Rifat, has resigned and King Abdullah has re-
quested former-Premie Tewfic Pasha Abul Iluda to form a new govern-
ment. The resignation marks the culmination of a feud between Abdullah
and Samir
(CIA Comment: This development may threaten Arab solidarity
?krirv' as Samir Rifai, unlike King Abdullah, has unequivocally supported the
A rab League's Palestine policy. The new Prime Minister will be more
amenable to the policies and personal wishes of Abdullah.)
8. INDIA: British fear Indian attack on Pakistan?According to US Em-
bassy London, Undersecretary Patrick of the UK Commonwealth Rela-
tions office regards the recently-expired Indian note to Pakistan con-
cerning Kashmir (see Daily Summary of 26 December, item 1) as an
ultimatum and fears that it will be followed by an Indian attack on
Pakistan within the next few days and by a complaint to the Security
Council.( Although Patrick believes some concession by Pakistan might
relieve the tension over what India regards as inivrference in its
integral territory, he points out that Pakistan has asserted its inability
to control the Moslem tribesmen who have invaded Kashmir in a spirit
of holy war. He also believes that the Sikhs might get out of control
and thus force an inter-dominion struggle. Patrick adds that although
the immediate withdrawal of British officers from the armies of both
dominions following outbreak of hostilities would "cripple" Pakistan's
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Army, the larger Indian Army is at present overextended so that Pakistan
would not be immediately overwhelmed. He stated his belief that Af-
ghanistan would probably make an alliance with Pakistan and that the
USSR also would probably take Pakistan's side. According to Patrick,
the 3ritish position has not yet been formulated.
(CIA Comment; Sikh ambition to regain lost territOry in the
West Punjab may prove a critical factor in the present situation. A large
concentration of Sikhs near the India-Pakistan boundary suggests that the
Sikhs may have determined to precipitate a conflict. In the event of hos-
tilities, Moslem tribal support might enable Pakistan to gain an initial
success over the overextended Indian Army despite the withdrawal of
British officers. CIA doubts that the USSR would align itself with
Pakistan, because India is more receptive to Communist doctrine and
would have greater long-range value as an ally.)
FAR EAST
9. PHILIPPINES: Immediate 3Rorisinffseported cancelled?The US Command-
ins! General in the Philippines reports that the probability of an immediate
uprising has been greatly lessened by apparent action of Communist
leaders in cancelling what promised to be an initial outbreak on Christmas
eve. Through a well-informed and reliable source, the Commanding
General has learned el recent conferences between three Communist
leaders and the President of the Philippine Senate during which: (a) the
Communists were informed that the Philippine Government was aware
of the plans for revolution; and (b) the participants discussed possible
Communist proposals to the Philippine Government regarding a compro-
mise settlement of the Central Luzon situation. Followirw these meetings,
it was reliably reported that plans for the uprising were suspended. The
Commanding General warns, however, that the dissidents do not appear
to have abandoned their original intentions, and that future action is a
(CIA Comment: CIA believes that conditions favorable to revolu-
tion exist in the Philippines, and that sporadic outbreaks and rumors of
revolt will continue.)
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10. CHINA: 121Loutct_s_falaiD/Mull--IJS Consul General Mukden
reports that the current Communist offensive in Manchuria apparently
is designed to hasten the fall of Changchun and Kirin and is not aimed
primarily at the capture of Mukden. He considers, however, that in-
ternal revolt, desertions, or fifth column activity may cause the fall
of Mukden within weeks or months. He expects that if the Nationalists
and Communists are able to negotiate an evacuation of the city, the
transfer of authority may be orderly, otherwise he believes it likely
that the turnover will be "wild and bloody."
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EUROPE
1. St'AIN: Eml_o_aA,nent on US policy toward Spain--With reference
to the State Department's ieceWolicy toward Spain,
US Charge Culbertson observes that: (a) Franco will not substantially
modify his regime so long as the US and other powers insist on his
personal elimination, and (3) if these powers seek a cooperative solu-
tion with Franco; "pressure would be so great that Franco would
liberalize and in time be eased out of power." Culbertson therefore
suggests that the US convince all elements including Franco of "the
practicability 4r# cooperative solution and long-term democratic
results" aml implement present US policy by a willingness to con-
sider now "governmental assistance coordinated with private credits."
(CIA Comment: CIA believes it most unlikely that Franco will
or can substantially modify and "liberalize's his regime.)
2. ITALY: fp.c.a..mitilof critical US aras_sx--US Ambassador
Dunn reports that an existing critical shortage of funds and foreign
exchange is likely to reduce seriously the amount of military equip-
ment and ammunition for which the Italian Government can pay.
Italian military officials have suggested to Dunn that the US "deposit"
in Italy such arms as might be needed by the Government to check
any Communist revolutionary attempt and thus permit the Italian
armed forces and police to pay for only those items actually used.
Dunn suggests instead that: (a) critical military items be
"deposited" in US-occupied tones in Europe and made ready for
rapid shipment to Italy; and (b) some consideration be given to air
delivery of this emergency military aid. Re observes that "the out-
come of the early days of the fighting would be all-important."
3. GREECE: Friction
ports that there is
in the Athens press
Communist Party).
ment of the Markos
within KKE reported?US Embassy Athens re-
'some supporting evidence" for current stories
alleging recent friction within the KKE (Greek
The press accounts suggest that the establish-
regime marks a victory for the "internationalistiss
,?
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over the "nationaliets" Tao_ sto:ries allege that the "ir.-7;:er
nationalists" have agreecl to the incorporation of Greek Macedo:lt%
Into the Yugoslav Federel Republic as a conditice for the authovizA-
tion and recognition If the "free" Greek government by the Balkan
Comernmist states.
7
4. SWEDEN: Government to realest US financial aid?US Ambassador
Matthews reports that the Swedish Government has agreed in principle
to authorize its financial adviser to the Foreign Office (now in Wash-
ington) to ask for US finaacial assistance (see Daily Summary of
22 December, item 8).
According to Matthews US refusal to grant a loan: (a) would
be interpretai as US disappro:ral of Sweden's postwar economic and/or
political policies; and (b) would result in "keen disappointment and
some resentment," which might prove salutary because a deterioration
of Swedish economic conditions might demonstrate that Sweden's future
is more closely linked to the West than certain Swedish officials have
been prepared to admit. Matthews does not think that such deteriora-
tion would result in a serious increase in Communist strength in the
country. In Matthews' opinion, a US refusal might also remove Swedish
complacency toward the European recovery program.
NEAR EAST-A FRICA
5. TURKEY: "Free" Greek reatatregarded.,s test of resistance-US ?
Ambassador Wilson reports that Foreign_Minister Sadak has expressed
concern over the formation of the "free" Greek government, which
Sadak regards as an example of the familiar Soviet technique of probing
for weakness. The Foreign Minister expressed his belief that ff the
USSR concludes that the Satellites can recognize and support the
Markos regime without great risk, it will "move in rapidly" and the
situation will then become extremely grave. Sadak added that, in his
opinion, only a prompt declaration of US interest in maintaining the
freedom and independence of Greece can prevent the development of
such a dangerous situation.
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At
FR EAST
6. FIC: French fall can en en is--US Consul Hanoi reports that from
all appearances the ac;..ve rni1tary operations in north Indochina
o I about the middle of December. Neutral observers do not believe
tha'z majority of the Viet Minh troops were destroyed or even engaged,
French have claimed. They also doubt the French claims that
th-.3 greater part of the Viet Minh supplies have been destroyed or that
French casualties have been as low as reported. The Consul expects
Frc.-nch losses to continue as a result of increased Viet Minh action
for owing th onset of bad weather.
THE AMERICAS
7. NICARAGUA: Dominican recomition accorded--The US Charge in
Managua reports that the Dominican Go-yermr.ent has recognized the
Roman y Reyes regime.
(CL.h. Comment: Other atn American Republics may now be
expected to follow the Dominic4n Government's lead in formally recog-
nizing the present Nicaraguan regime.)
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EUROPE
1. FRANCE: Bi.slmLlt_y_also requests militar talks with US --Foreign
Minister Bidault has reiterated to US Ambassador Caner.' Armed
Forces Minister Tietgen's recently exeressed desire for military
conversations between France and the US (see Daily Summary oi
22 December, item 4). Bidault likewise observed that France
"by definitely aligning itself with the 'West" and "by arresting and
exnelling Soviet agitators" has exposed _itself to possible Soviet
renrisals. He added that the Government is nlanning a further
,urge of "dissident elements" from the French Air Ministry, in-
cluding Chief of the Air Staff Major General Piollet.
2. GR:RECE: "Free" jtelvern-aent reported in Serbia--Greek Charge
Pappas has told US L'ile,rgQ Bruins t. Prague that he has "reliable
information" that l'ae "free" Creek govc.trnment is located in
f3erbia. Bruins considers Papas "usually well informed."
Greek morale lowered by announcement of Markos re ime--
US Charge Rankin reports from Athens that the .announcement o
the "free' Greek government has made a "surprisingly 'strong
psychological impact" on the Greek man in the street. Rankin adds
that the Proclamation cast a pall of gloom over Christmas festivi-
ties and caused some specu2ation as. to the prospeCts of (a) the
bombing of Athens; (b) uprising and sabotage in the capital; and
(c) the abandonment of Greece by the US. There is little confidence,
Rankin adds; that the US will take effective counter-measures in
the event that the "free" regime is recognized by the Satellites.
Prime Minister stresses need for arm?--Rankin also reports
, that Prime Minister Sonhoulis has emphatically reiterated his plea
for an increased sunnly of US automatic weapons and artillery which,
the Prime Minister says, "must be in the hands of the Greek Army
before Anril if catastrophe is to be averted."
CO
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GENERAL
le! India rna take Kaslys_n.k.'kakt_tp_StqEialt Council--US Charge
Donovan reports from New Delhi that the Government of India ha
delivered a note to the Government of Pakistan requesting ,that
Pakistan deny to the Kashmir invaders "all access to and use of
Pakistan territory for operation against Kashmir, all Military an
other supplies, and all other kinds of aid which !night tend to pro-
long the present struggle." The note adds that, failing a satis-
factory response' the i`GOI will be compelled to take such action,
with due regard to its rights and obligations as a member of the UN,
as it may consider necessary to protect its own interests, and those
of the people of jarnmu and Kashmir*" The Secretary General of
the Indian Foreign Office told Donovan that: (a) he sees little hope
of agreement between India and Pakistan on the Kashmir question;
(b) unless a favorable reply to the Indian note is received before
the end of December, the GOI will present the matter to the Security
Council; and (c) the GOI will not permit adjudication of the issue by
the UK or any other member of the British Commonwealth*
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2. Embassy Athens c6mments on "free" Greek overnment--US Embassy
Athens reports thafriiTHMni leant features of the announcement of
the "free' Greek government are: (a) failure to include any non-
Communists in the cabinet; (b) failure to identify the seat of the gov-
ernment; (c) emphasis on special friendship with the USSR and the
Balkan neighbors; (d) the reference to full equality of minorities
within Greece; and (e) the "ominous reference" to the organization
of a "democratic air force." The Embassy adds that the long-term
significance of the announcement depends on whether the government
Is recognized by one or more of the Satellites and/or the USSR and ?
the guerrillas receive substantially increased aid. The Embassy
expresses the opinion that "developments along these lines" will .
occur gradually, their rreellse nablre and rhythm depending on the
Soviet estimate o:r probable US and world reaction,
3. Yugoslav reactice toward "free' Greek governmInt?Yugoslav Deputy
e
Foreign Minister beble.,.. has professed to US Ambassador Cannon in
Belgrade that he does net know whether 'Yugoslav recognition of the
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(tfree" Greek government will be "early or deferred." Bebler
supposed, however, that "it would be Icc,ical to break with Athens
eventually dependirig on circumstances, Bebler described the
Greek situation as a "regular civil war" on which neighbors are
entitled to take a position. Bebler was clearly impressed when
Cannon pointed out that if the Markos regime were recognized by
nearby states, the world at large would consider Yugoslavia "in
the fotefront with large responsibilfties for the consequences?"
EUROPE
4. BELGIUM: Spaak critical of democratic leadershi --US Charge
Millard reports that Premier Speak has expressed to him a pessi-
mist:c view of: (a) the lack of enerrtic leadership among the
democracies as compared with the 'positive activity and vigorous
Plans of the USSR"; (b) the apparent lack of planning which preceded
the CFM; and (c) the probability that France and other European
countries would be unwilling to make the sacrifices necessaty for
domestic recovery without firm pressure from the US.
5. UK': 1122.sted views on Western position in Berlin--According to
US Embassy London, a high Foreign Office official believes that
"some reparations, however limited" should be given the USSR
to prevent Soviet officials at least for a time from creattng
in-
tolerable conditions for the US the UK, and France in Berlin, The
same official believes the Western Powers should carefully review
their position in Berlin, and if any doubt exists that their position
can be mi intained they should withdraw and make a public state-
ment blap-Ang the USSR. Otherwise, the official believes, an in-
tolerable sf:mation would be created, if the Western Powers announced
they would remain and then were compelled to withdraw. The same
official has also advised the Embassy that he believes a central
provisional government should be established immediately for the
Western Zones at Frankfurt and its provisional nature widely pub-
licized.
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7-Taxever, Ambassador Murphy reports from Berlin-that the
above views are contrary to his understanding of Foreign Minister
Ile7In's attitude on the establishment of a central government.
7:Aurohy disagrees with the view that reparations should be paid to
the 733311 to obtain respect for the four-power agreement authoriz-
ing he powers to occupy sectors of Berlin.
6, ITALY: No US ections on Soviet trade talks--The Department
of State has au orize a"-a?ssaa-di----? Dunn to inform the Italian
Government that the US sees no reason why Italy should not enter
Into trade negotiations with the USSR as currently olanned (see
Daily Summary of 18 December, item 2).
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1,, Aral,* b.,,..M7tarms for nossible f hti
1 'Memminger in fimascus reports that
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GENERAL
X6
Syria has made arrangerne
uy arms and ammunition to the value of $2,085,000. US Military
Attache Baghdad reports that Iraq has concluded an agreement
with the UK for the nurchase of arms and equipment to be de-
livered by 30 Anril 1948. The MA adds that the new equipment
(already arriving) is designed to strengthen Iraqi units for possible
fighting in Palestine.
25X1X6
in Palestine--US Char
EUROPE
2. FRANCE: RPF tactics distrust some De Gaullists--US Ambassador
Caffery observes that De Gaulle 's frt'ends in the Assembly have
_ demonstrated, by their request for new elections and their antagonism
to the Government's economic program, that they are bent upon
making trouble for the Schuman Government (see Daily Summary of
22 December, item 4), raffery notes with satisfaction that "some
supporters of De Gaulle are becoming disgusted with these tactics."
NEAR EAST-AFRICA
3.EGY"T: Tuck Rmests US take stem to ahet
rnbassad?or Tuck reports thii bs prestige in Egypt is at an all-
time low. Tuck states that Egyptian feeling will continue to be
governed by the US attitude, official and otherwise, toward the
im tlementation of the partition of Palestine. He considers that
Egyptien resentment may develop into an attitude of active hostility
toward the US. Tuck expresses the opinion that the US should care-
fully consider every possible step which could restore its lost
prestige. He suggests that some concrete gesture should be made,
such as an offer of direct assistadce ire Egypt's present financial
and economic difficulties.
0'!
' THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
THIS DOCUMENT.
t 4 APR 1978
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4. IRAN: Hakim' facing difficulties in formation of cabinet--US Ambas-
sador Allen in Tehran reports that Prime Minister-designate Hakimi
is experiencing considerable difficulty in forming a cabinet and that
the Shah is apparently pleased. According to Allen, the Shah seems
to believe that a continuation of the government crisis will create a
public demand that he take a leading role in resolving the situation.
Alien adds that reports that former Prime Minister Qavam has
becn arrested have "no basis" and that Qavam Will probably be
allowed to depart for Switzerland in a few days.
FAR EAST
5. CHINA: National Government again stresses ammunition shorta
The Chinese Vice-Minister of Foreign Affairs has stresse ? to
Ambassador Stuart the "dire need" of the Chinese armed forces
for US 50-caliber ammunition, stating that China has only two mil-
lion rounds remaining. Stuart comments that while there is no way
of ascertaining with accuracy the amount of ammunition possessed
by the Chinese Nationalist armies, the deteriorating military situa-
tion indicates that such a shortage is likely.
6. INDONESIA: ILLC officiression of situation--US Embassy
The Hague reports the opinion of Hugh Grey, recently appointed head
of the SEA Division of the UK's Foreign Office, that nothing tangible
can be expected from the Security Council's Good Offices Committee
(GOC). Grey believes that the US and the UK have a common interest
in a speedy solution of the Indonesian problem. He considers that:
(a) the major nroblem is how to make the Dutch realize that it is to
their own best interest to come to terms with the Indonesian Republic;
and (b) that the Dutch do not realize the "catalytic action of world
war in speeding up political evolution in the Far East dependent
areas and the consequent, inevitable Nationalist triumph."
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GENERAL
"Corninforna" for Latin America reported under discussion--US
Ambassador Caffery in Pails has been told bY a trustworthy source
that: 1..(a) the Comintern agent2, Vitorio Codovilla a major figure
bi the Argentine Communist Party:, attended the recent uNEscp
rneetingt in Mexico Pity and discussed with its communist partici-
, is
? pants the establishment of a Latin American Cominforrn ;and (b)
the question was left open because of indecision as to-whether the
new organization should be strictly secret or "more or less open"
like that in Belgrade,
(CIA Comment: CIA recently directed attention to the fact
that the creation of additional regional Communist groupings,
particularly in Latin America, is a possibility; see CIA Weekly Summa-
ry of 19 December, page 1?)
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EUROPE
2. USSR: Controls on missions and correspondents Increased.-US Embassy
Moscow interprets the n'irgi ro-ifiet restrictive measures as indications
that the Kremlin has made a basic decision to make living conditions
as unbearable and expensive as possible for foreign missions and
correspondents in Moscow, The apparent aim is to force many of
them to withdraw and thereby limit to the bare minimum the number
of eyes and ears which can report on actual conditions inside the USSR.
The Embassy feels that we should make concrete plans to x; e -
tn. liate immediately by placing restrictions upon both Soviet and Satel-
lite missions in the US similar to those placed on US representatives
in Eastern Europe,
New Deputy Chairman of the Council of Ministers a ?? ointed--
The US Millitary ttache in Moncow reports t at 1. A. MalysnevTas
appointed Deputy Chairman of the Council of Ministers on 20 December.
(CIA Comment: The Council of Ministers now has 12 Deputy
Chairmen; of these only two, including Malyshev, are not members of
the Politburo, Malyshev is a member of the Central Committee of the
Communist Party and, as a ColoncX,General, he was Commissar of the
- 1 -
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THE C.I.A. HAS NO OBJECTION
TO THE DECLASSIFICATION OF
,THIS DOCUMENT.
'APR 1978 0 k
No.
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tank industry until October 1945. Since then, he has been Minister
of Transport Machine construction. CIA believes that the purpose
Malyshev's appointment to one of the highest government posi-
tions is primarily to enable him to exercise more direct authority
and to concentrate his attention on the greatest single weakness in
Soviet economy--the shortage and disrepair of railroad transport
equipment, particularly locomotives and rolling stock.)
3, FRANCE: More publicity for US aid recommended--US Ambassador
Caffery expresiesiiis convicticiiiWhe French people are in-
adequately informed of the present scope of US aid to France. He
considers that this aid should receive increased publicity, prefer-
ably through the French Government and French news channels.
Caffery believes that French officials will cooperate provided they
are "continuously stimulated." He inquires as to the possibility of
obtaining additional funds to carry out this publicity program on an
adequate scale.
Bidault exnectureements soon on German coke--Caffery
also reports that Bidault s report to the Foreign Affairs Committee
of the National Assembly stressed the need of an "international
regime" in the Ruhr and of "concrete certainties regarding the ex-
rmrt of German coal and coke." Bidault added that he expected "very
soon" to conclude new agreements guaranteeing certain tonnages of
German coke for the French steel industry.
4.CZECHOSLOVAKIA: Communit dz.....1vIsmesthd ir_..mar --US
Charge Bruins in Prague reports current indications that beginning in
January 1948 the Communists will make every effort to achieve their
objectives in Czechoslovakia by constitutional rather than extralegal
means. He cites three reasons which militate against extralegal
Communist action: (a) because of their non-revolutionary character,
the Czechoslovak people would probably react unfavorably to un-
constitutional methods; (b) as Czechoslovakia is the only peripheral
country with a highly developed industry, unorthodox Communist
election methods would impair the country's ability to obtain necessary
raw materials from the West and thereby jeopardize the export of
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(..2echos1ovak products vital to the USSR; and (c) President Benes,
?ho is extremely popular and highly respected, would strongly re-
ist measures.
NEAR EAST-AFRICA
5. IRAN: Premier-desknate considered weak--US Ambassador Allen
teports that Ibrahim Hakirni? the Iranian Prime Minister designate,
is regarded as honest and patriotic but as having little force or
courage in emergencies. Allen adds that as the USSR /considers
Ilakimi a "Brftish stooge," he will be under attack by Moscow. Allen
believes that Hakimi will be fortunate to Last two months, if he takes
office.
FAR EAST
6. CHINA: Possible peace negotiations with Communists--US Ambas-
eador Stuart has learned fromGeneral Chang Clxih-chung that Chiang
*%??,' Kai-shek on 20 December, following a conversation in which General
Chang stressed the futility of continuing the civil war, gave the latter
permission to attempt to renew negotiations with the Chinese Commu-
nists. Stuart reports that Chang Chih- chung believes the Chinese
Communists are ready to respond to such a proposal. Stuart adds
that Chang has already approached the Soviet Embassy in an effort
to enlist Soviet assistance in persuading the Chinese Communists to
give up fighting and resume negotiations. In Stuart's view, however,
It is inconceivable that the Chinese Communists will accept peace
negotiations at a time when they are winning on all sides, except
I.Jossinly as a meat-16 cri ciiiscotiraging and h41.tkoering US aid to iLt
National Government
(CIA Comment: The Chinese Communists will probably not
enter into negotiations with the present National Government on
anything but their own terms unless: (a) their present advantageous
military position is seriously undercut by effectively-implemented
US aid to the Nationalist armies; and (b) any prospect of substantial
Soviet assistance to the Communists is removed.)
'CORD MIL
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