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SECRET -13- the defense of Europe. Press reports which indicate that US-UK forces in Trieste are to be placed under an Italian general have no basis in fact. **** As a result of a decision by the Italian Cabinet certain units of the Italian army have been assigned to the Atlantic Pact integrated force, and it is expected that eventually all army corps and divisions required for the defense of Italian frontiers will be assigned to the integrated force. The transfer of these units will be gradual as they attain a prescribed degree of efficiency. United Kingdom - The British Foreign Office has decided to invite US representatives to hold a series of informalcor sultations on colonial problems affecting UN in London toward the end of May. Yugoslavia - The Yugoslav Government has re- quested the USSR to close its Consulates in Zagreb and Split and to remove the personnel of these Consulates from Yugoslav territory immediately. The request was based principally on the grounds of lack of reciprocity since the USSR does not permit Yugoslav Consu- lates outside of Moscow. Netherlands - We believe that while the projected defense budget which the Dutch Government is proposing to Parlia- ment is disappointing, an immediate attempt to obtain a higher initial Dutch defense effort would risk further delays in having the Dutch make any concrete start on their NATO defense obligations. We in- tend to initiate negotiations with the Dutch involving a fairly definite commitment of dollar support to a Dutch economy capable of mounting a defense effort and to the defense effort itself, but have made it clear to the Dutch that US aid will be related as precisely as possible to the degree of increase of Dutch defense efforts. West Germany - The Bundestag Foreign Affairs Committee has agreed to request the German Federal Republic to negotiate with the French for the purpose of clarifying the Saar's status regarding the Schuman Plan prior to official German signature of the Schuman Plan treaty. Socialist faction leader Ollenhauer states that the Socialist faction in the Bundestag will unanimously oppose Bunde. - stag ratification of the Schuman Plan in its present form, and predicted that handling of the Saar issue could have a decisive influence as to whether or not Chancellor Adenauer is able to obtain a Bundestag majority in favor of the Schuman Plan. The Allied High Commission has ap- proved the UK-French draft letter to the Soviet Berlin Commandant con- firming the preliminary agreement of March 2,2 which enabled the flow of East-West barge traffic to be resumed.

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    "ocrText": "SECRET\n-13-\nthe defense of Europe. Press reports which indicate that US-UK\nforces in Trieste are to be placed under an Italian general have\nno basis in fact. **** As a result of a decision by the Italian Cabinet\ncertain units of the Italian army have been assigned to the Atlantic\nPact integrated force, and it is expected that eventually all army\ncorps and divisions required for the defense of Italian frontiers\nwill be assigned to the integrated force. The transfer of these units\nwill be gradual as they attain a prescribed degree of efficiency.\nUnited Kingdom - The British Foreign Office has\ndecided to invite US representatives to hold a series of informalcor\nsultations on colonial problems affecting UN in London toward the\nend of May.\nYugoslavia - The Yugoslav Government has re-\nquested the USSR to close its Consulates in Zagreb and Split and to\nremove the personnel of these Consulates from Yugoslav territory\nimmediately. The request was based principally on the grounds of\nlack of reciprocity since the USSR does not permit Yugoslav Consu-\nlates outside of Moscow.\nNetherlands - We believe that while the projected\ndefense budget which the Dutch Government is proposing to Parlia-\nment is disappointing, an immediate attempt to obtain a higher initial\nDutch defense effort would risk further delays in having the Dutch\nmake any concrete start on their NATO defense obligations. We in-\ntend to initiate negotiations with the Dutch involving a fairly definite\ncommitment of dollar support to a Dutch economy capable of mounting\na defense effort and to the defense effort itself, but have made it clear\nto the Dutch that US aid will be related as precisely as possible to the\ndegree of increase of Dutch defense efforts.\nWest Germany - The Bundestag Foreign Affairs\nCommittee has agreed to request the German Federal Republic to\nnegotiate with the French for the purpose of clarifying the Saar's status\nregarding the Schuman Plan prior to official German signature of the\nSchuman Plan treaty. Socialist faction leader Ollenhauer states that\nthe Socialist faction in the Bundestag will unanimously oppose Bunde. -\nstag ratification of the Schuman Plan in its present form, and predicted\nthat handling of the Saar issue could have a decisive influence as to\nwhether or not Chancellor Adenauer is able to obtain a Bundestag majority\nin favor of the Schuman Plan. The Allied High Commission has ap-\nproved the UK-French draft letter to the Soviet Berlin Commandant con-\nfirming the preliminary agreement of March 2,2 which enabled the flow\nof East-West barge traffic to be resumed."
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