Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON December 18, 1947 SUMMARY OF TELEGRAMS USSR Embassy Moscow has been authorized to join in a protest by the Moscow diplomatic corps against the new Soviet decree calling for the exchange of cash on hand at the rate of ten old rubles for one new ruble. If no joint protest materializes, the Embassy is to deliver an independent protest insisting on a one-to-one conversion rate. PALESTINE The British Foreign Office has informed Embassy London that the UK intends to fulfill any contracts it now has for the delivery of war materials to Middle East countries but that any new orders from Palestine or the Arab states will be scrutinized with great care to determine whether the material is intended for use in Palestine. GREECE The British Minister of Defense has assured Ambassador Douglas that the British military missions positively will not be with- drawn from Greece but that the UK is reluctant to agree to complete integra- tion of these units with the American mission. The Defense Minister does, however, favor the erection of an integrated planning staff. A US representative in Athens reports that morale throughout western Greece is exceedingly low and that the Greek people are losing faith in the Americans. This observer also believes that the Greek army has lost its will to fight despite a superficial appearance of good morale. TRIESTE The Allied Commander in Trieste believes that for the moment the local situation is excellent, with the Communists on the defensive. Our political adviser reports that Communist efforts to stir up the people have largely failed and that pro-Italian groups are behaving with restraint and Italian morale is now improved. ITALY We are informing Ambassador Dunn that in view of the urgency of the need in Italy and the considerations of US national interest involved, the Army is prepared to furnish certain light arms from surplus in addition to appropriate ammunition, provided Italy can meet the dollar costs for procurement of the ammunition and for packing and shipment. DECLASSIFIED E.0. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-13