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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON July 14, 1947 c IT SUMMARY OF TELEGRAMS SOVIET UNION Ambassador Smith considers that the Czechoslovak reversal, on Soviet orders, of its decision to attend the Paris Conference is nothing less than a "declaration of wart by the USSR on the immediate issue of control of Europe. He points out that (a) it must be assumed the Soviets are con- vinced of their ability to win and (b) our answer to this chal- lenge will have great influence on political developments throughout the world. POLAND Bevin feels that we should extend no aid or credit to Poland at this time since the Poles have declined to participate in any European reconstruction pro- gram, though he still hopes it may be possible to work Poland into a western group "through the back door" at a later date. HUNGARY Mission Budapest has learned that the Soviets threatened to suspend the return of Hungarian prisoners, demand immediate delivery of maximum reparations pay- ments, impose heavy wheat collections and delay indefinitely ratification of the peace treaty in the event that the Hungarian Government accepted the invitation to the Paris Conference. RUMANIA Public opinion is exceedingly depressed at what it considers the significance of the European split into eastern and western blocs a.s exemplified by the Paris Conference. The Rumanians now see themselves indefinitely and unwillingly committed to an eastern grouping. FINLAND The entire cabinet with the exception of the Communists is reported to have favored accept- ance of the invitation to Paris until the Soviets indicated that the Finnish reply should be negative. GREECE We have informed the British of our agreement that, if there is a Soviet veto of our pro- posal for a UN commission in Greece, we would consider it "most DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-11-50