Memorandum, State Department Summary of Telegrams

ADDRESS OFFICIAL COMMUNICATIONS TO THE SECRETARY OF STATE WASHINGTON, D. C. DEPARTMENT OF STATE WASHINGTON June 27, 1949 SUMMARY OF TELEGRAMS TRIESTE Ambassador Dunn in Rome has expressed his opinion that US pressure on the Italian government to accept a parti- tion of Trieste would be most undesirable at this time. Dunn states that should the Italian government agree to partition now as a result of US pressure, some justification would seem to be given to Communist propaganda which has contended that the US proposal for return of Trieste to Italy was "an electoral trick. " Dunn fears that if partition is brought about through US influence now, Italian confidence in the US would be seriously diminished. YUGOSLAVIA Embassy Moscow comments that the withdrawal of USSR support for Yugoslav territorial and reparations claims against Austria represents the first open break in the united front which the USSR and the satellites have maintained against the west. The Embassy states that the Soviet decision openly to make this break coincides with stepped-up economic measures by the Cominform against Yugoslavia and with an increasing anti-Tito propaganda campaign. Pointing out that this action leaves Tito the undisputed defender of Yugoslav national interests, the Embassy feels that the action will result in pushing Tito toward the west and improving the chances for political concessions in Yugoslav foreign policy. BERLIN Commenting that the reaction of the Berlin city adminis- tration and the railroad workers to the end of the Berlin railroad strike is one of "quiet satisfaction" with the provision for west-mark payments, Ambassador Murphy points out that the crux of the matter is the willingness of the Soviet authorities to allow the Central Railroad Administration to cooperate. Murphy thinks that the Soviet authorities, after a brief period, may authorize this co- operation, achieving the "normal functioning" of transportation facilities agreed upon at the CFM. Murphy adds that the western powers have now done everything possible to achieve the strike's end. ISRAEL We have delivered to the Israeli Charge here an aide- memoire in answer to the Israeli reply to our note of May 29, pointing out that we consider it "regrettable" that Israel has not responded more affirmatively to the questions of Palestinian refugees and of boundaries. We regard the solution of the refugee problem as a DECLASSIFIED common E.O. 12060, Sec. 3-402 T State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-13-10