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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON November 10, 1948 SUMMARY OF TELEGRAMS SOVIET UNION Ambassador Smith reports that the post-election out- pourings of the Soviet propaganda machine and the pronouncements made in connection with the anniversary of the Bolshevik revolution suggest a tactical shift on the part of the Kremlin designed to create the impression that the USSR desires an international settle- ment and believes it can "do business" with President Truman. He notes that after a few days of surprised hesitation, Soviet propaganda prac- tically did an about-face on Truman, and now hails his election as a repudiation by the American people of reactionary and aggressive forces. Smith points out that this shift can only be a tactical one, for if Moscow really considers Truman "a social reformist", he is then worse in Communist ideology than a frankly reactionary regime. PALESTINE Our delegation in Paris reports a major split among the western members of the Security Council on the proposed Palestine resolution, with the UK still insisting on its November 4 text and France and Canada favoring a proposal along the lines of the resolution submitted by Acting UN Mediator Bunche. In these circumstances, there is a danger that no proposal can receive a majority vote, though our delegation is still hopeful it can bring the UK to accept a draft substantially along the lines of the Bunche proposal. Meanwhile Ambassador Griffis in Cairo and our repre- sentative in Transjordan report that the atmosphere in Arab circles is now strongly in favor of some kind of a negotiated settlement. Griffis feels that the King of Egypt is the only strong leader left in the Arab world, and that he would make very reasonable terms if assured of US support and backing. In Transjordan there are some leaders who suggest that if the King will not enter negotiations with the Jews, they will do it themselves. CHINA Our representatives in China report a continued serious deterioration of both the military and eco- nomic situations. There is little hope that the Nationalist forces can make a stand against the Communists, although the intentions of the government are still not clear, and the food situation has become DECLASSIFIED E.O. 12065, Sec. 3-402 nDcrcpm State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-13-80