Memorandum, State Department Summary of Telegrams

THE SECRETARY OF STATE WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 August 22, 1951 By DEB NLT, Date 9-5-05 S E C R E SUMMARY OF TELEGRAMS PHILIPPINES Embassy Manila has reported that the Huk guerrillas are being routed at such a rate that the month of November should see their complete military disintegration if the present measures against them are pursued further. In the face of increasing Government troop activity deep into Huk territory, the destruction of Huk supplies and the lowering of morale among rank-and-file Huks, the Huk leaders are now promising a "big and victorious event" in November. It is felt that if this promise should fall flat, as seems likely, rank-and-file morale will completely collapse and members will either drift back to their homes or surrender. The Embassy adds that there are indications the Chinese Communists may be abandoning hope for the Huks and quietly setting about organizing a stronger, better disciplined and more clandestine force to supplant them. SWEDEN Embassy Stockholm reports that the Swedish Foreign Office is giving serious consideration to declining any American aid rather than to request exception under the Kem Amendment, although the final decision must be made by the Cabinet. The Foreign Office objects not only to the release of information calling attention to the extent of "unneutral" government controls, but it is also concerned that Eastern European countries would be encouraged to make new and more severe demands on vital trade agreement negotiations if the US were to announce publicly that Swedish trade is directed in favor of the West. Our Embassy comments that a more elusive and subjective consideration is the indignation that the Swedes may feel as a result of the United States "pre- suming" to direct Swedish trade policy on the basis of the relatively small economic intercourse which the US chooses to label "assistance", but which was conceived for mutual benefit and which, because of the quid pro quo, can now be considered as involving a contractual obligation of the US. The Foreign Office has therefore asked our Embassy whether the aid received by Sweden is considered as "assistance" under the Kem Amendment, and, if not, whether a decision can be expected shortly. KOREA The Korean Foreign Minister yesterday issued a strong official statement denouncing the exclusion of the Republic S