Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON February 3, 1947 SUMMARY OF TELEGRAMS FRANCE Caffery has heard that the French will tell Stalin that France will agree to Germany's present eastern frontier with Poland if the USSR agrees to the economic union of the Saar with France and also agrees to a satisfactory internationalization of the Ruhr. INDIA Commenting on recent developments in India, our Charge in New Delhi states that the prospects for the establishment of a union Indian Government have become dimmer than ever. He adds that it is difficult to see how or when an agreement can be reached between the Congress Party and the Moslem League as long as partisan and communal prejudices and personal vanity play as important a part in the situation as they have during the past 10 months. ITALY Although the maintenance and disposal of 11,400 Chetniks and 9,000 Ukrainians in the Mediterranean Theatre is a British responsibility, SACMED believes their continued retention in Italy without the prospect of removal has serious Allied implications. JAPAN We have informed Embassy Manila that while our position is that the conduct of Japanese foreign trade should be placed in the hands of private business as rapidly as possible, this does not mean immediate and complete elimination of the present system of govern- ment to government trading nor does it mean that SCAP will cease exer- cising Supervision and control over the formulation and implementation of Japanese export and import programs. PALESTINE The British have informed our Charge in London that Bevin told the Arab delegation that the UK is faced with the un- welcome prospect of imposing some solution to the Palestine problem. He said that if no agreement is reached, the matter would be referred to the United Nations, either with or without a proposed solution suggested by the UK. He asked the Arabs as he had earlier asked the representatives of the Jewish Agency, to consider the possibility of a bi-national central government combined with a large measure of local autonomy. DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- HL NARS, Date 11-12-to