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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON November 18, 1946 SUMMARY OF TELEGRAMS BELGIUM Kirk reports an inconspicuous but deep undercurrent of uneasiness in Belgium caused by the instability of the French political situation and in particular the strengthened position of the French Communists. BULGARIA Barnes believes the apparent caution with which political conversations on the formation of the New Bulgarian Govern- ment are being conducted in Sofia indicates that the situation is ripe for a conciliatory directive from Moscow if there is any way in which that could be obtained. CHINA The UK Ambassador in Nanking has informed our Ambassador that the UK proposes to keep in step with our China policy as far as this consists in giving moral support to the National Government and of encouraging the development of a strong and stable government on a broadly democratic basis. He added that the UK hesitated to intervene in Chinese political affairs for fear of complications with the USSR but that he would be ready to speak with President Chiang, Communist Party leaders and others whenever it was felt that this would be helpful. Our Military Attache in Nanking reports that Nationalist Govern- ment troops are in control of all the larger strategic places and the most important sections of the major railroads in Manchuria and North China. The consensus is that Nationalist forces will be able to keep the Communists out of the major cities but will not maintain lines of communication as well as the Japanese did. FRANCE Caffery reports that French Communists are continuing to attack the US and are trying hard to convince the French people that we are pursuing a policy of economic enslavement of the world in general. GERMANY The Social Democratic Party in Berlin intends to introduce as the first bill to be considered by the newly elected city Assembly a proposal for the socialization of the city's major industrial enterprises. Heath expects that if the issue is discussed by the Kommandatura, both the Soviet and UK members will support the right of the municipal administration to take this step. DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- HL NARS, Date 11-12-to