1. Security Council commenced discussion of Report of Balkan
Commission 27th June. United States opened debate in a statement
which after referring to Greece's record against the Axis upheld
the conclusions of the Commission. They stated that the Commission
was justified in its conclusions on the evidence before it and
emphasised the guilt of Yugoslavia, Albania and Bulgaria, pointing
out that invasion by organised armies is not the only means of
attacking a country but that 'force is effectively used today
through devious methods of infiltration, intimidation and
subterfuge'. They mentioned that it is the duty of the Council to
take necessary action to prevent further support of Greek
guerillas by its northern neighbours. They attempted, however, to
forestall a detailed discussion of the evidence and findings which
is generally anticipated on the part of the Soviet and Poland
proposals. In particular they emphasised the necessity to
establish an agency of the Security Council in the area to use its
good offices under Article 33 of the Charter for the settlement of
disputes in this area. The United States Government was stated to
attach great importance to this proposal and [it] was hinted that
enforcement action might be necessary if the position became more
aggravated. They stated that at this stage the Security Council
should continue to act under Chapter VI of the Charter, 'bearing
in mind that if the acts and practices found by the Investigation
Commission should continue, the Council will be compelled to
consider that there is no longer a dispute but that there exists a
threat to the peace, breach of the peace or an act of aggression
within the meaning of Chapter VII of the Charter'.

2. The United States submitted a resolution that the Security
Council adopt the proposals made by the majority of the Commission
as follows-
(A) The Security Council appeal to Greece, Albania, Bulgaria and
Yugoslavia to refrain from violence and future instances of armed
bands crossing from one country to another would be considered a
threat to the peace under Chapter VII.

(B) The Council asked the four Governments to agree to new
Frontier Convention.

(C) A Commission composed of representatives of all members of the
Council be established to use its good offices under Article 33,
to assist in the negotiation of the new Frontier Conventions, to
assist in other bilateral agreements for the pacific settlement of
frontier disputes, to assist in the implementation of the
recommendations made under (D) below, to supervise the
arrangements for transfer of minorities under (E) below, and to
have such other duties and powers as the Council may determine.

The Commission should commence its work as soon as practicable and
remain in existence until 31st August, 1949, before which date the
Security Council should review the necessity for its continuance.

(D) The Security Council recommend removing refugees as far as
possible from countries of origin.

(E) Security Council study the possibility of a voluntary transfer
of minorities among the four nations.

3. Albania made a long statement going into the details of the
evidence before the Commission and alleging that Greece was
responsible for all the troubles on the frontier.

4. Bulgaria made a statement denying its guilt and stating that it
was prepared to accept the first part of (A) and (B) of the United
States proposals but not (C).

5. The Council will resume its discussions on 1st July.