Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON July 25, 1949 m SUMMARY OF TELEGRAMS LIBYA Ambassador Douglas in London has suggested that we discuss the independence of Libya with the French, pointing out that the trend toward early Libyan independence is a reality which France must recognize in order to prevent the situation in French North Africa from deteriorating as it did in Indochina. Douglas points out that the British Foreign Office faces: 1) the realization that Libyan independ- ence is inevitable, and that by taking the initiative the UK can regain lost prestige in- Libya and elsewhere in the Near East; and 2) the ne- cessity of giving, in the interests of UK-French amity, full considera- tion to the French view that the immediate independence of Libya would have serious repercussions throughout French North Africa. Stating that we face a corresponding dilemma, Douglas stresses that we must take action to gain local good will in order to protect our strategic interest in Libya. AUSTRIA Our representative at the Austrian treaty t alks has stated that no real progress toward conclusion of an Austrian treaty has yet been made. He feels that should the USSR maintain its present rigid position, we must present our minimum treaty requirements, bearing in mind the necessity for determining whether the evacuation of Soviet troops and relinquishment of USSR-held industrial properties will accom- plish more toward limitation of the area of Soviet control than additional treaty provisions which can be attained only in return for other concessions. GERMANY We have advised McCloy in Berlin that he should maintain strict neutrality on the question of the location of the capital of the future west German government. We feel this is a problem for the Germans to decide. CHINA Ambassador Stuart reports from Nanking that the Chinese Communists have agreed to issue him an exit permit which will not require a shop guarantee, but insist that such guarantees will be required for other members of Stuart's party. Stuart points out DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- HC NARS, Date 11-13-to