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SECRET 35 sharply reducing oil deliveries to Yugoslavia, failed and the Communist regime was firmly in mid-July 1948, Rumania delivered Tito one entrenched. of the most telling blows by the Soviet bloc The US and the UK, as signatories to the thus far. Rumanian peace treaty, have provided the Subsequent events have marked a further only overt, though ineffective, criticism of the deterioration of Rumanian-Yugoslav relations. Rumanian regime's arbitrary actions. De- Each country has taken action within its bor- spite generous US aid to Rumania during the ders against the interests of the other, besides Moldavian famine (winter of 1946-47), as well mounting a high-powered propaganda offen- as US signature of the Rumanian peace treaty sive. Continuing Rumanian policy toward in February 1947, the Groza Government has Tito will accurately mirror that of the Krem- maintained a consistently hostile attitude to- lin. ward the US. US and British protests during 1947 over the dissolution of the opposition f. Relations with the West. Peasant Party and the arrest of its popular (1) US Protests of Peace Treaty Violations. leader Maniu were summarily rejected as un- As Soviet influence in postwar Rumania has warranted interference in Rumanian internal progressively grown, Rumanian relations with affairs. the Western world have deteriorated. The (2) Elimination of Western Influences. Western Powers have fought a losing battle With the virtually complete elimination of in an attempt to guarantee to the Rumanian overt political opposition, the Rumanian re- people a government of their own choosing. gime increasingly turned its attention to the Not only have the Western Powers been un- eradication of remaining Western interests able to exert any moderating influence toward and influences in the country. The Western Rumanian compliance with its peace treaty legations themselves, and especially that of obligations, but they have been powerless to the US, have been the objects of an acceler- protect their nationals and property, and have ated campaign of pressure and vilification even been unable to maintain the legations from the Rumanian Government. The anti- themselves free from persecution by the Com- Western drive has been characterized by vi- munist government. US-Rumanian diplo- cious propaganda, coupled with efforts to matic relations since the war have been char- cripple legation activities by attempting to acterized by repeated, but futile, US protests link them with anti-Communist groups within of violations, made with Soviet encouragement the country. and connivance, of such international agree- (3) Nationalization of US Property. Al- ments as Yalta, Potsdam, and Moscow, the though the Rumanian peace treaty provides Armistice Convention of September 1944, and for the restoration of legal rights and inter- the peace treaty of 1947. ests of American nationals to their September By the end of 1946 the Communist regime, 1, 1939 status, the consistent policy of the Ru- with the support of the USSR, had effectively manian Government has been toward com- thwarted Western Power efforts to install a plete elimination of private enterprise, democratic government in Rumania. Previ- whether domestic or foreign-owned. Thus ously the US and the UK had ineffectively far, the Rumanian Government has not de- protested Communist attacks on opposition nied its peace treaty obligations to foreign political groups, and the delay in holding a nationals, but, by successive actions, it has national election. A US note challenging the relentlessly moved toward their nullification. impartiality of the November 1946 election, Governmental pressure against US-owned confirming the Communists in power, was re- business in Rumania had followed the familiar jected by the Rumanian Government. When pattern of steadily increasing repression until the opposition cabinet members installed at the Communist regime had a legal basis for US and British insistence resigned after the assuming control. In the case of the largest election as a protest, Western efforts to US-owned Rumanian enterprise, the Romano- broaden the Rumanian Government had Americana Oil Company, the Rumanian Gov- SEORE

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    "ocrText": "SECRET\n35\nsharply reducing oil deliveries to Yugoslavia,\nfailed and the Communist regime was firmly\nin mid-July 1948, Rumania delivered Tito one\nentrenched.\nof the most telling blows by the Soviet bloc\nThe US and the UK, as signatories to the\nthus far.\nRumanian peace treaty, have provided the\nSubsequent events have marked a further\nonly overt, though ineffective, criticism of the\ndeterioration of Rumanian-Yugoslav relations.\nRumanian regime's arbitrary actions. De-\nEach country has taken action within its bor-\nspite generous US aid to Rumania during the\nders against the interests of the other, besides\nMoldavian famine (winter of 1946-47), as well\nmounting a high-powered propaganda offen-\nas US signature of the Rumanian peace treaty\nsive. Continuing Rumanian policy toward\nin February 1947, the Groza Government has\nTito will accurately mirror that of the Krem-\nmaintained a consistently hostile attitude to-\nlin.\nward the US. US and British protests during\n1947 over the dissolution of the opposition\nf. Relations with the West.\nPeasant Party and the arrest of its popular\n(1) US Protests of Peace Treaty Violations.\nleader Maniu were summarily rejected as un-\nAs Soviet influence in postwar Rumania has\nwarranted interference in Rumanian internal\nprogressively grown, Rumanian relations with\naffairs.\nthe Western world have deteriorated. The\n(2) Elimination of Western Influences.\nWestern Powers have fought a losing battle\nWith the virtually complete elimination of\nin an attempt to guarantee to the Rumanian\novert political opposition, the Rumanian re-\npeople a government of their own choosing.\ngime increasingly turned its attention to the\nNot only have the Western Powers been un-\neradication of remaining Western interests\nable to exert any moderating influence toward\nand influences in the country. The Western\nRumanian compliance with its peace treaty\nlegations themselves, and especially that of\nobligations, but they have been powerless to\nthe US, have been the objects of an acceler-\nprotect their nationals and property, and have\nated campaign of pressure and vilification\neven been unable to maintain the legations\nfrom the Rumanian Government. The anti-\nthemselves free from persecution by the Com-\nWestern drive has been characterized by vi-\nmunist government. US-Rumanian diplo-\ncious propaganda, coupled with efforts to\nmatic relations since the war have been char-\ncripple legation activities by attempting to\nacterized by repeated, but futile, US protests\nlink them with anti-Communist groups within\nof violations, made with Soviet encouragement\nthe country.\nand connivance, of such international agree-\n(3) Nationalization of US Property. Al-\nments as Yalta, Potsdam, and Moscow, the\nthough the Rumanian peace treaty provides\nArmistice Convention of September 1944, and\nfor the restoration of legal rights and inter-\nthe peace treaty of 1947.\nests of American nationals to their September\nBy the end of 1946 the Communist regime,\n1, 1939 status, the consistent policy of the Ru-\nwith the support of the USSR, had effectively\nmanian Government has been toward com-\nthwarted Western Power efforts to install a\nplete elimination of private enterprise,\ndemocratic government in Rumania. Previ-\nwhether domestic or foreign-owned. Thus\nously the US and the UK had ineffectively\nfar, the Rumanian Government has not de-\nprotested Communist attacks on opposition\nnied its peace treaty obligations to foreign\npolitical groups, and the delay in holding a\nnationals, but, by successive actions, it has\nnational election. A US note challenging the\nrelentlessly moved toward their nullification.\nimpartiality of the November 1946 election,\nGovernmental pressure against US-owned\nconfirming the Communists in power, was re-\nbusiness in Rumania had followed the familiar\njected by the Rumanian Government. When\npattern of steadily increasing repression until\nthe opposition cabinet members installed at\nthe Communist regime had a legal basis for\nUS and British insistence resigned after the\nassuming control. In the case of the largest\nelection as a protest, Western efforts to\nUS-owned Rumanian enterprise, the Romano-\nbroaden the Rumanian Government had\nAmericana Oil Company, the Rumanian Gov-\nSEORE"
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