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RESTRICTED. saying that "Western Europe will either achieve its own security, with Germany's participation, or it will not have any security at all"; and Madrid calls attention to the fact that "as happened in the Far East, half of the beaten country (Germany), occupied by Soviet troops, has been given paramilitary units equipped with modern war materiel, militarily and practically instructed, while the other half under Western occupation is completely disarmed and pledged not to set up any fighting organization." There are no available Western-oriented comments of the opposite nature, opposing the rearming of Germany or Japan. Communist radios, however, have made clear what their reaction would be to any such step. East-German radios repeatedly suggest the possibility of an American "aggression" in Germany comparable with that in Korea, and Moscow makes use of Japanese and West-German statements of support for the U.N. position as evidence that "the broken-down fascist Axis is again emerging with the help of the American reactionaries." NEGOTIATIONS: While Moscow is silent on both the British and the Indian efforts to promote negotiation, non-Communist Asian sources devote some attention to both, and especially to Nehru's proposals. Nationalist Chinese spokesmen in Formosa claim that the British effort is pointless--that it will not even produce a Munich. The Hong Kong TIGER STANDARD says that the British gesture "is likely to strengthen the hands of the Russians" since it comes at a time of American reverses. "Any attempt to come to honorable terms with Soviet Russia does not make sense unless democracy is prepared to accept a dictated peace." The MANILA BULLETIN attacks Nehru by saying that his offer was made to Stalin because of internal politics; it was a gesture for home audiences only. Delhi reports the All India Radio's "special representative" as believing that the reply is favorable--Stalin welcomed India's peace initiative. According to Britain's SUNDAY DISPATCH, the contents of the reply include: an offer to visit Moscow, Washington, and London; a proposal for a plebiscite in Korea; and a proposal to include Communist China in the Security Council, after which it would reconsider the Korean situation. RESTRICTED

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    "ocrText": "RESTRICTED.\nsaying that \"Western Europe will either achieve its own security, with Germany's\nparticipation, or it will not have any security at all\"; and Madrid calls attention to\nthe fact that \"as happened in the Far East, half of the beaten country (Germany),\noccupied by Soviet troops, has been given paramilitary units equipped with modern war\nmateriel, militarily and practically instructed, while the other half under Western\noccupation is completely disarmed and pledged not to set up any fighting organization.\"\nThere are no available Western-oriented comments of the opposite nature, opposing the\nrearming of Germany or Japan. Communist radios, however, have made clear what their\nreaction would be to any such step. East-German radios repeatedly suggest the\npossibility of an American \"aggression\" in Germany comparable with that in Korea, and\nMoscow makes use of Japanese and West-German statements of support for the U.N. position\nas evidence that \"the broken-down fascist Axis is again emerging with the help of the\nAmerican reactionaries.\"\nNEGOTIATIONS: While Moscow is silent on both the British and the Indian efforts\nto promote negotiation, non-Communist Asian sources devote some attention to both, and\nespecially to Nehru's proposals. Nationalist Chinese spokesmen in Formosa claim that\nthe British effort is pointless--that it will not even produce a Munich. The Hong Kong\nTIGER STANDARD says that the British gesture \"is likely to strengthen the hands of the\nRussians\" since it comes at a time of American reverses. \"Any attempt to come to\nhonorable terms with Soviet Russia does not make sense unless democracy is prepared to\naccept a dictated peace.\" The MANILA BULLETIN attacks Nehru by saying that his offer\nwas made to Stalin because of internal politics; it was a gesture for home audiences\nonly. Delhi reports the All India Radio's \"special representative\" as believing that\nthe reply is favorable--Stalin welcomed India's peace initiative. According to Britain's\nSUNDAY DISPATCH, the contents of the reply include: an offer to visit Moscow,\nWashington, and London; a proposal for a plebiscite in Korea; and a proposal to include\nCommunist China in the Security Council, after which it would reconsider the Korean\nsituation.\nRESTRICTED"
}