Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE I OFFICE OF THE SECRETARY WASHINGTON May 6, 1946 Feled SUMMARY OF TELEGRAMS 051- BRAZIL The Brazilian Government is dissatisfied with existing arrangements for the division of German external assets and has requested that it be given a German merchant ship as well as ships from the Italian fleet. 051- - FRANCE Caffery urges that the announcement of the results of the present Franco-American economic conversations be made soon in order that attention may be focused on the assistance we are giving France. He believes the immediate turning over of US ships for which the French are now negotiating would hearten all elements in France which look to the West instead of the East. oat HUNGARY The Soviet High Command has ordered that all US and UK mili- tary and diplomatic personnel must apply to Soviet military authorities for passes to travel anywhere in Hungary outside the city of Budapest. Our representative reports this order may be connected with recent indications of substantial Soviet troop movements in Hungary. 051 Hungray The Secretary favors the extension of an immediate $10,000,000 Export-Import Bank credit to Hungary. Hungarian Finance Minister Gordon has told the Secretary that immediate financial relief is both economic- ally and politically vital to Hungary. IRAN 051 Embassy Tehran reported yesterday that Soviet troops had evacuated all of northern Iran except Azerbaijan where with- drawals are apparently still in progress. Prime Minister Qavam is sending a commissioner to Azerbaijan to see if the Soviet evacuation is complete and will report to the Security Council. Qavam's negotiations with the Azerbaijani delegation are deadlocked, principally over the disposition of the Azerbaijan army which Qavam insists must be disbanded. 051- ITALY Embassy Rome believes that any forsaking of the principles of the Atlentic Charter in disposing of Italian colonies and assets will be regarded by the great mass of disgruntled Italians as confirmation of Fascist propaganda during the war and will hopelessly weaken the position of our real friends in Italy. DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- HL NARS, Date 11.10 to