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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON February 28, 1949 SUMMARY OF TELEGRAMS SYRIA We have instructed our Legation in Demascus to inform the Syrian government that we appreciate its desire to align itself with the US and the western powers, and to reiterate that our support of Israel does not lessen our basic policy of friendship toward the Arab countries. Our Legation should state however that we do not as yet envisage broadening our defensive security relationships beyond the contemplated Atlantic pact, which constitutes in itself a radical departure from traditional US policies. Nonetheless, we are gratified to learn of Syria's preoccupation with the problem of its relation to the west, and we will keep its views in mind. INDOCHINA We are informing Embassy Paris that in spite of the re- ported progress in the negotiations between the French government and ex-Emperor Bao Dai, we question whether the French are really making concessions to Bao Dai which will enable him to return to French Indochina and realize any successes there. We point out that over a period of three years the French have shown no intention or de- sire to make the concessions which are necessary to solve the Indochina question. We fear that the present formula for a solution may be only another French device to delay basic action, and as a consequence we do not want to be committed in any way to approval of the present French action. BERLIN We have informed Ambassador Douglas in Berlin that we have continued to impress upon the British here our strong feeling that we should aim at March 10 as a date for the establishment of the western mark in Berlin. At the same time, Caffery in Paris is urging similar views on the French. We have explained to Douglas that besides being critically necessary for the economy of the western sec- tors, establishment of the western mark in Berlin will place us in a stronger bargaining position in subsequent discussions of a solution to the Berlin problem. After establishment of the western mark has placed us in position of equality with the USSR, we will endeavor to explore further UN action with a view to lifting the blockade, establishing an equitable and workable currency solution, and unifying the city politi- cally. DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- 116 NARS, Dite 11-13-to