PROBLEMS OF MAJOR POWERS
Red Coup in Hungary.—On June 1 Ferenc Nagy, Hungarian Premier and a member of the majority Small Landholders Party, while on vacation in Switzerland was accused of “plotting against the republic” and was forced to resign. His place at the head of the government was taken over by Lajos Dimmyes, a pro-Soviet member of his party. The charges against Nagy were the culmination of a long series of investigations and arrests of parliamentary deputies carried out by the Soviet occupation forces, very evidently as part of a systematic campaign to put the communists (who polled only 17 per cent of the vote in the Hungarian elections of last year) in actual control. Sometimes the “plotting” was represented as against Hungary, sometimes as against the Soviet authorities, but at no time was the Allied Control Commission given an opportunity to study the evidence or share in the investigation. As an outcome of the final coup, the American State Department on June 11 delivered a sharp protest to General Sviridov, Soviet chairman of the Control Commission. It charged the Russians with “flagrant interference” in Hungary’s internal affairs, violation of Potsdam pledges, and disregard of the rights of other nations on the Commission. It called for a three- power investigation, failing which the United States would “consider such further action as may be appropriate.” The general’s rejoinder coolly denied an investigation, describing the changes in Hungary as wholly constitutional and a strictly domestic concern.
On June 2 the United States suspended a $15,000,000 credit to Hungary pending a clarification of the situation. From Budapest came a report that the Hungarian Army was now to be Soviet trained and equipped. Desco Sulyak, leader of the small Right Wing Liberty Party, described his country as now a police state, and declared his party would boycott a prospective election under the stifling restrictions of the new regime.
Purge in Bulgaria.—Premier Georgi Dimitrov of Bulgaria, former Secretary- General of the Communist International and leader of the victorious Communists in the rigged election of last year, opened in June a more thorough purge of the small Agrarian opposition party. Its leader, Nikola Petkov, was jailed on June 6 on charges of plotting to overthrow the government, and a week later 23 members of his party were ousted from the National Assembly as “tools” of their chief. Following American and British inquiries and protests, the U. S. State Department on June 11 described the political developments in Bulgaria as “in complete disregard of both the spirit and the letter of the Yalta accord.” It declared that in the trial of Petkov the present regime would be on trial “in the minds of many Bulgarians and certainly in the opinions of all freedom supporting peoples outside Bulgaria.”
Deadlock on Atomic Control.—The United Nations Commission on Atomic Energy, continuing its discussions through the summer period, made very dubious progress. In a statement on June 11 the Soviet delegate on the commission, Andrei A. Gromyko, confirmed the Soviet Union’s previous acceptance of the principle of international inspection and outlined the functions of the proposed international control commission, whose make up, he said, should, like the Atomic Energy Commission, correspond to the membership of the Security Council. Mr. Gromyko, however, reiterated his opposition to international operation of atomic plants, insisted that punishments should be determined by the Security Council and thus subject to veto, and renewed the Soviet demand that a ban on atomic weapons must precede an agreement on control. A week later the Commission agreed on a procedure for study of the new Soviet proposals in detail.
Meanwhile in public addresses in this country Mr. Fred H. Osborne, Mr. Austin’s deputy on the Atomic Commission, described the Soviet proposals as “a fraud on the people of the world,” and Mr. David E. Lilienthal, Chairman of the U. S. Atomic Energy Commission, declared on June 10 that pending “a foolproof system of control, the United States must maintain its preeminence in atomic weapons.”
Economic Aid for Europe.—Speaking at Harvard on June 5, Secretary of State Marshall made what was at once recognized as a highly significant definition of American foreign policy in the economic field. He stated first, that the United States recognizes a responsibility for aiding in European recovery, and second, that this aid would be far more effective if coupled with a comprehensive economic program worked out by the Europeans themselves. As quoted in the press, the most noteworthy part of his speech ran as follows:
“Our policy is not directed against any country or doctrine, but against hunger, poverty, desperation and chaos. Its purpose should be the revival of a working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist. Such assistance I am convinced must not be on a piecemeal basis as various crises develop. . . . The initiative I think must come from Europe. . . . The program should be a joint one, agreed to by a number, if not all, the European nations.”
In this country, Senator Vandenberg endorsed the Secretary’s proposals but suggested a bipartisan advisory council to make recommendations and also to carry out a close survey of American resources to decide what aid we can afford to give. In Europe, and particularly in England and France, the proposals were received with assurances of full cooperation. Foreign Secretary Bevin stated that Britain would take the initiative with other European states in preparing a joint economic program, and he opened discussions on the subject during a two-day visit to Paris in mid-June. The French initial plan was for four committees —on transport, fuel and energy, agriculture, and iron and steel—which would draw up a balance sheet showing the maximum aid the European states could give each other during this year and next in each field, and the further aid needed from overseas. It was clearly indicated by Secretary Marshall that the Soviet Union and the states of Eastern Europe were included in his proposal, but initial invitations from London and Paris to Moscow met with no favorable response.
Palestine Inquiry.—The United Nations Commission of Inquiry in Palestine opened its sessions in Jerusalem on June 15, under the chairmanship of Emil Sandstroem of Sweden. Its first undertaking would be a tour of Palestine to study local conditions. The Arab Higher Commission of Palestine had already decided to boycott the inquiry on the ground that the only feasible solution would be an end to Jewish immigration and the establishment of an independent state, in which the Arab population would be dominant. The Jewish Agency in Palestine would call for unlimited entry of Jews and for an independent Jewish state. Despite the request of the Security Council for a cessation of disturbances, the Jewish terrorist organizations continued their undeclared warfare. At the suggestion of Britain, President Truman on June 5 called on U. S. citizens to refrain from measures which would promote violence, i.e., by support for the extremists.
UNITED STATES AND LATIN AMERICA
Arms for Americas.—At the close of May, President Truman submitted to Congress, with a supporting message, a draft bill authorizing a comprehensive program of military collaboration with all other Western Hemisphere nations. As summarized in the press, the bill authorized the government to
(1) Train soldiers, sailors and airmen of other Western Hemisphere nations; (2) maintain, repair or replace military equipment of these nations; (3) transfer American arms and ships to these nations; (4) accept in payment any kind of benefit, direct or indirect, which the President deems satisfactory.
This program, providing a practical scheme of regional defense for the Americas, was strongly supported by Secretary of State Marshall. It would integrate weapons, and provide the Latin American nations with means of putting down disturbances arising from non-American sources and of providing better self-defense in time of world conflict. Canada would be included, and this cooperation would mean a link between the American nations and the states of the British Commonwealth. The chief objection has been that the scheme of rearmament might strengthen undemocratic regimes, and that any plan of regional preparedness would be out of harmony with the ideals of the United Nations.
Rapprochement with Argentina.— On June 3, following an interview between President Truman and the Argentine Ambassador, it was announced that this government was now satisfied with Argentina’s compliance with the anti-Nazi provisions of the Act of Chapultepec, and that renewed moves for a Western Hemisphere defense treaty were in order. It was indicated that the projected meeting in Rio de Janeiro for this purpose would probably convene in late summer. A further clearing of relations with Argentina was indicated by the resignation, to take effect June 30, of Mr. Spruille Braden, Assistant Secretary of State for American affairs, former Ambassador to Argentina, and a vigorous opponent of fascist trends in the Argentine dictatorship. His resignation was accompanied by that of George Messersmith, his successor at Buenos Aires, who had pursued a more conciliatory policy and could now regard his mission as accomplished.
Minor Diplomatic Moves.—Among United States diplomatic developments during June the following are given briefer mention:
State Department Changes. The resignation of Spruille Braden, noted above, was followed by the appointment of Norman Armour as an Assistant Secretary. Mr. Armour, a veteran career diplomat with a wide knowledge of the personnel and policies of the service, was to have general supervision over the four divisions of the Department covering European, Mid-Eastern, and Far Eastern affairs, as well as those of the American republics. He would also head a new policy-forming group or staff within the Department, the purpose being to formulate general lines of policy which could be applied to particular situations, rather than to leave policies, as sometimes in the past, to be shaped under stress as difficulties arose. Prior to his retirement last fall, Mr. Armour had served in fourteen posts on four continents.
Peace Treaties Approved. On June 5, the Senate by a vote of 79 to 10 approved the peace treaty with Italy, and by acclamation approved those with Hungary, Rumania, and Bulgaria. In signing the final ratifications on June 14 President Truman took occasion to criticize the present regimes in Rumania, Bulgaria, and Hungary as governments which had “disregarded the will of the people and resorted to measures of oppression.” Britain had already approved all four treaties but the U.S.S.R. had not yet acted on the Italian agreement.
Administrators of Aid in Europe. To head the Greek aid program the President, on June 5, named Dwight P. Griswold, former Republican Governor of Nebraska and since last November an executive in administering the occupied zone in Germany. As field administrator of the $350,000,000 foreign relief fund, he named Richard F. Allen, who had had wide foreign experience as director of European aid for the Red Cross. Eligible for aid under the last-named fund are Italy, Greece, Hungary, Austria, Poland, China, and Trieste.
Delegates to Labor Conference. In June the State Department announced the personnel of the delegation to represent this country at the International Labor Conference, meeting in Geneva from June 19 to July 11. The chief delegates are Assistant Secretary of Labor David A. Morse and Senator E. D. Thomas of Utah, with some 30 advisers and aids. The conference is the legislative body of the International Labor Organization, supported by 52 nations.
Defenses in Greenland. Press discussion of Greenland defenses have been renewed as a result of notification from Denmark that the wartime arrangements must come to an end. It has been pointed out that Julianhaab at the southern end of Greenland is only about five hours’ flying time from New York and that the island is centrally located on the great circle sea and air routes to Europe. At present the installations are reduced to a naval refueling base and some half dozen A.A.F. weather stations. Negotiations for a new treaty with Denmark are in prospect but not yet started.
President Visits Canada.—In the second week of June, President Truman made a three-day official visit to the Canadian capital. His stay at Ottawa served to return Governor General Alexander’s official tour to Washington last year, and like the Mexican exchange of visits, tended to strengthen the warm friendship and cooperation of the North American nations. Addressing a joint session of Parliament on June 11, the President outlined our foreign policy as aimed to promote world recovery and support those peoples who were “determined to govern themselves in their own way and who accorded others the same right.” He counted Canada “in the forefront of those who share these objectives and ideals.”
Somoza Coup in Nicaragua.—On May 25, former President Anastasio Somoza of Nicaragua, controlling the country as head of the armed forces, deposed President Arguella, who had been Somoza’s candidate in the recent election and had held office only 26 days. Succeeding after 10 years of Somoza’s dictatorship, Arguella had shown some signs of unwillingness to carry on a puppet rule. General Somoza quickly arranged the appointment of Benjamin Sacassa as temporary President and himself retained control as War Minister and Commander-in- chief. Opening consultations, the United States and neighboring republics showed some hesitation in recognizing the new regime.
EUROPEAN POLITICS
New German Economic Control.—At the close of May, Britain and the United States announced a new economic setup for their combined occupation zones, granting to German officials a large measure of economic control. An Economic Council was created, composed of representatives of the seven German states, which would establish policies and directives, subject always to the veto of the occupation authorities. Subordinate to the Council was an Executive Committee to carry out policies and “supervise and coordinate the work of the five bi-zonal economic agencies already established. The Council would control production and distribution, exports and imports, price control and finances, and could easily be converted into a political government. Headquarters was fixed at Frankfurt-am-Main.
Troop Accord Fails.—Though requested to reach a decision by June 1, the Allied Control Council at Berlin had failed on that date to attain any agreement on a proposed reduction of armed forces in the occupied areas of Germany. The Americans had proposed a reduction to 140,000 each for U. S. and British forces and to 200,000 for the U.S.S.R., but Russia insisted on a strength equal to the other two combined. Thus, like the Allied failure to agree on a Governor for Trieste, another supposed accomplishment of the Foreign Ministers’ conference at Moscow came to naught.
Austrian Treaty Blocked.—Only slight progress was made at Vienna during June in efforts of the Allied Control Council to reach agreement on the vexed question of ex- German assets seized by Russia. Oil properties were taken up, but Soviet delegates insisted on exercising a veto over other types of property to be considered and also over evidence to be admitted.
In a speech at the close of May, after his return from duty in Austria, General Mark W. Clark stated specifically that Soviet forces, in direct violation of the Potsdam agreement, had seized and even exported Austrian farm products when parts of the nation were starving. Properties illegally seized by the Soviets, he said, included the entire shipping facilities of the Danube and oil wells originally owned and developed by American interests.
France Racked by Strikes.—In France a five-day strike of railway workers early in June soon reached nation-wide proportions, adding to the troubles of Premier Paul Ramadier’s reorganized all-Socialist Cabinet. It was settled by pay increases estimated to cost the government $82,500,000 by the end of the year. On June 13, several hundred thousand public service employees also went on a 24-hour token strike. French Communists, out of the government and controlling 7 out of 13 seats in the executive committee of the General Confederation of Labor, used their influence to encourage labor’s demands.
Spain Votes on Franco Rule.—Madrid announced in June that on July 6 a national plebiscite would be held to approve the law of succession passed by the Cortes on June 7, 1947. This law defined the government as a “Catholic Monarchy,” confirmed Franco as Chief of State, and made provision for choice of his successor. Like all such votes in totalitarian states, the result would be a foregone conclusion, with about 1,700,000 Republicans excluded from voting and no provision for freedom of the press or unrestricted discussion. It could be used, however, to bolster the Generalissimo’s claims to popular support.
Italian Reds Oppose Gasperi.—The long government crisis in Italy was finally ended in early June by the organization of a new ministry, once more headed by Alcide de Gasperi. His fourth cabinet but the first from which both Socialists and Communists were excluded, it was composed of 13 Christian Democrats and four ministers from other moderate parties serving as independents. It was dependent for a majority on general support from the middle and rightist groups. Failure of Gasperi to make progress with his economic program, including aid from America, increased production, and a check on inflation, would probably mean a swing to the left. The Communists in a manifesto on June 8 declared they would use every “democratic means”—i.e., short of insurrection—to defeat the new government. They sought an early date for new elections, but were defeated on this issue in the Assembly, where the vote was postponed until the spring of next year.
ASIA AND FAR EAST
Partition of India.—Simultaneously in London and New Delhi, Britain in June announced her proposals for turning over India to native rule. In view of the inability of Indian factions to join in a united nation, the proposals outlined a plan for dividing India into two nations, Hindustan with some 230,000,000 people and Pakistan with about 70,000,000, together with a third element consisting of the 563 native states of about 100,000,000. Some of these latter would join one or another of the two main divisions, while others contemplated independence, though the congress party in approving the partition took a strong stand against separation of the small states. Pakistan, the Moslem portion, will consist of two widely separated areas in northeast and northwest India, along with other districts which may join of their own choice. According to the plan, the provincial legislatures of Bengal and the Punjab were to meet in Moslem and non-Moslem sections to decide on their own division; and Assam, the Northwest Frontier Province, Sind, and Baluchistan were also to vote as to their choice. The plan further provided: (1) that Moslem and Hindu constituent assemblies would frame separate constitutions for their respective states; (2) that dominion status in the British Empire would be extended to both states without prejudice to their right to choose for complete independence; (3) that power would be transferred as soon as possible, probably in the present summer.
Indian leaders of all factions joined in acceptance of the British proposals. In England they were warmly approved, since parts of India and almost certainly Burma may still retain links with the Empire. The Moslem League, meeting on June 11, chose Karachi, a port on the Arabian Sea, as Pakistan’s temporary capital, with prospects that the permanent capital would be established further north in a cooler area.
Invasion of Sinkiang.—In early June the Nationalist government of China ordered its envoy at Moscow to protest both to the Soviet Government and to the Outer Mongolian Minister over an alleged invasion of the Chinese border province of Sinkiang. The invasion across the Outer Mongolian border was supported by four planes said to have had Soviet markings. Later the invaders, who had occupied the town of Peitashan, were reported driven out. Soviet sources declared the planes probably belonged to a small Outer Mongolia air force, which had markings similar to those of the Soviets. Both the Outer Mongolian army and air force are Soviet-trained. Peitashan is only a few miles within the China-Outer Mongolian frontier as commonly marked, though old China claims extend much further north. The border foray had little apparent significance except as a test of China’s weak defenses and as a possible move under Russian influence to establish another area of disputed sovereignty in China’s northwest border.
Slow Progress in Korea.—After a week or more of preliminaries, the Soviet delegates in the Korea conference at Seoul agreed to consult Korean parties “on a broad basis” in laying plans for a provisional government. One sub-committee was to consider consultation procedures, another to study the type of government to be set up, and a third to consider the procurement of personnel and plans for transfer of control. There were to be daily press communiques and informal comment by General Bown and General Shtikov on matters not regarded as secret.
New Japanese Ministry.—Tetsu Katayama, Socialist Christian, and pre-war labor lawyer, was chosen Premier of Japan in late May by almost unanimous vote of both houses of Parliament. He experienced considerable difficulty thereafter in organizing a coalition Cabinet. Since the Liberals led by former Premier Yoshida objected to the radical trend of the Socialists, the Ministry was finally made up of 17 members representing the Socialist, Democratic, and People’s cooperative parties. Most of the ministers were little known in public life. Premier Katayama promised a vigorous program of economic reforms, including further socialization of key industries, in which he will be supported by the occupation authorities.
Dutch Demands in Indonesia.—Early in June the Dutch authorities at Batavia submitted what was described as a 14-day ultimatum to the Indonesian Republican leaders indicating a series of steps essential to the working out of the Cheribon agreement. The measures called for included (1) establishment of a joint commission to iron out disagreements, (2) return of Dutch properties to their owners, (3) establishment of a joint customs service, (4) establishment of an interim government, (5) joint action by Dutch and Indonesian military forces to maintain order. Other requirements were a universal currency, fixed exchange against foreign monies, joint control of exports and imports, and immediate shipments of rice from Java to other Indonesian areas short of food.