Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON January 10, 1947 SUMMARY OF TELEGRAMS UNITED Our acting representative on the Security Council reports NATIONS there is no chance that our resolution on the subject of the general regulation and reduction of armaments will re- ceive the necessary support for its approval. He believes that if we press for a vote on our resolution we will receive little support and may stand alone. If we were to accept the principle of concurrent discussions of the question of general disarnament and of atomic energy control, our representa- tive believes the Council might be willing to accept a statement of principle that the work of the Atomic Energy Commission should receive first priority and should proceed with the utmost dispatch and that decisions with regard to atomic energy should be taken before any attempt is made to reach decisions on any other aspects of the regulation of armaments. BRAZIL The head of the South American Department of the British Foreign Office has expressed to our Charge in London his concern over what he believes to be a deteriorating political situation in Brazil. He feels that President Dutra and presumably other leaders of the present Brazilian Government are unable to handle adequately the difficult political and economic situation. CZECHOSLOVAKIA We consider that close and friendly relations between the US and Czechoslovakia depend upon avoidance of inept ac- tions that characterized the Czech Foreign Office from time to time during the past year in dealing with the US; a more independent role in international affairs; the establishment and effective application of procedures for handling equitably US claims to compensation for nationalized and confiscated proper- ties and a realization that our policy on further loans to European countries is to refer loans for reconstruction and development to the International Bank so far as possible and to take careful account, because of decreasing funds available for this purpose, of the urgency of the applicant's need. Our representative in Algiers reports he has heard that the Czech Government backed by the USSR is actively seeking a concession from the French Government to develop and operate an oil concession in Algeria. GERMANY Murphy has been informed by a German official in the Soviet zone that the need for goods in the USSR apparently is desperate and that the Soviets will try any method, coaxing or penalization to achieve greater production from the German plants which they have taken over and are running in their zone. The informant added that he was convinced DECLASSIFIED E.O. 12065, Sec. 3-/02 State Don' Guideline, ju. HC Dutu: 11-12-to