740.00119 Control (Rumania)/7–1345: Telegram

No. 315
The Acting Representative in Rumania (Melbourne) to the Acting Secretary of State
secret
us urgent

469. Several responsible sources confirm that Soviet armistice demands actually remain unchanged despite reported statements of War Minister Raşcanu and Premier Groza (my 449, July 3. Rptd Moscow as 1251). Not only has there been no official time extension for fulfillment of Article XII, but Soviet requests under Article X [Page 412] just presented for the third quarter of 1945 somewhat exceed in actual value the requirements for the second quarter. Thus Articles XI and XII are not being used to defray the upkeep of newly arriving Soviet troops.

Business circles are greatly depressed by, in addition to other Communist pressures, the real threat of an extensive capital levy under the guise of equalizing the armistice burden and relieving the peasants and workers. Vice Chairman Oeriu of the Rumanian Armistice Commission is the foremost advocate of the measure and is considered the instrument of the Rumanian Communist Central Committee. The project has split the cabinet with Premier Groza reportedly opposed. Finance Minister Durma depressed by the economic outlook has submitted his resignation suggesting that Mr. Oeriu bear as Finance Minister the responsibility for his own schemes.

The Soviet assurance that it would reequip a sizeable Rumanian army is regarded by some as a gesture of military policy to indicate that Rumanian troops would be beside Russia if additional pressure is necessary upon Turkey over the Straits question. Similarly the award of the Victory Order decoration to the King (my 457, July 82) is held to show him to the world as a complete Soviet ally.

While a strong official campaign …3 in use against the Peasant and Liberal party leaders, Maniu and Bratianu, the dissident liberals of Tatarescu have sought to capture the official Liberal party (my 450, July 34) and so called dissident Peasants of the National Democratic Front are organizing for a congress purporting to represent the National Peasant Party.

Over the above picture of realities the Russians are believed by responsible observers to be attempting to smudge a short term propaganda impression for both the Rumanian public and abroad that all aspects of relations with Rumania are improving. Soviet desires have been sponsored through wide diffusion of War Minister Raşcanu’s statements concerning “generous” armistice concessions, the announcement of the altruistic Soviet intention to equip a sizeable Rumanian army, press reports of speeches by Marshal Tolbukhin and General Susaikov insisting upon the generosity of the Red Army and the Soviet wish to establish friendly relations with the Rumanian people, and finally through hailing the decoration awarded the Kin[g] as an expression of Soviet willingness to cooperate with a monarchy.

Every effort is made to show that a popular and liberty loving regime exists in Rumania with strong bourgeois support in National Liberal Party of Mr. Tatarescu and impending conference of a group [Page 413] purporting [to] represent the National Peasants. Publicity was given to compromised [sic] Mr. Tatarescu, who during his party congress was allowed to declare that he was not a Communist and opposed a Communist doctrine for Rumania.

Local observers consider sole reason for the striking differences between the realistic subject and the happy portrait described above is based upon a Soviet desire to introduce a certain confusion into the present and future prospects of the Rumanian situation at a time when this may be discussed by the Potsdam Conference.

Melbourne
  1. Not printed.
  2. Document No. 306.
  3. There is a garble at this point in the original.
  4. Not printed.