Memorandum, State Department Summary of Telegrams

DECLASSIFIED auh DEPARTMENT OF STATE Pslato State Dept. E.O. Guideline, 12065, June 3-402 12, 1979 Sec. OFFICE OF THE SECRETARY By NLT- HL NARS, Bate 11-12-to WASHINGTON NARS By NLI- August 1, 1946 c IT IS SUMMARY OF TELEGRAMS 051- ICELAND The Undersecretary of the UK Foreign Office has informed our Charge in London that the UK regards Iceland as very important from a strategic point of view. He said the UK is very glad we have a foot- hold there adding that "If we British get involved in war, whether you are neutral or with us, it is to our interest to have you in Iceland and we want to see you there." 051- INDONESIA The ranking Dutch official in the Netherlands East Indies, Acting Governor General Van Mook, believes the "Indonesian NEIS Republic" is now falling apart. He told our Consul General that the Indonesians are split into many groups and that units of the Indonesian Army are surrendering to the Dutch daily in increasing numbers. He believes the vast majority of the natives want peace and are tired of present chaotic conditions. 051- IRAN The Shah of Iran has made a strong plea to our Ambassador for a US oil concession in Iran. Our Ambassador believes we should not now show interest in an oil concession because such action would weaken Prime Minister Qavam's hand vis-a-vis the USSR. 051 - PORTUGAL Our representative who is negotiating with the Portuguese on an agreement for US bases suggests that the British might advise the Portuguese that they ought to accept our proposals and overcome their susceptibilities on sovereignty. 051 - SPAIN Embassy London has been informed that Bevin is not only opposed to the restoration of the monarchy in Spain but also to any action that might look like pressure from the outside on Franco. 051 - TURKEY The Turkish Ambassador to the USSR has told our Ambassador in Ankara that the reported assignment of Marshal Zhukov to Odessa indicates a possible preparation for a Soviet military adventure. He said a strong group of Soviet leaders favor direct action if the USSR decides as e result of the Paris Conference that further profits by diplomatic methods are unlikely. 051 . USSR Soviet naval authorities have informed our Navy representative in Moscow that US naval observers at Odessa, Arkangel and Vladivostok should depart within three days otherwise local Soviet authorities in these ports will terminate the activities of observers' offices and escort the observers to Moscow. Embassy Moscow believes we will have to comply with this brusque action but that we might consider prompt retaliatory action with regard to Soviet Purchasing Commission personnel in the US.