PRINCIPAL BULGARIAN PROBLEMS
 
Allied Control Commission
 
       Pursuant to Article 18 of the Armistice terms, an Allied Con-
trol Commission has been set up to govern Bulgaria pending the con-
clusion of a treaty of peace. The article by its terms gives the 
Soviet Union a large measure of control over Bulgaria during the 
period from the signing of the Armistice until the termination of 
hostilities against Germany. The Soviet Government expects such 
control to continue also after this period, but the United States 
has not accepted the Soviet position. We maintain, and have so 
advised the Soviet government, that we wish to make the division of 
powers among the members of the Control Commission during the second 
period a matter of future discussion.
 
       Thus far the Soviet role in the Control Commission has even 
exceeded the proportions assigned it by Article 18. Developments 
have reached a stage disquieting to ourselves and alarming to the 
British. The latter have communicated their grievances to Moscow 
in the form of a personal note from Mr. Eden to Mr. Molotov. Bear-
ing in mind that the range of our complaints is not so wide as that 
of the British, we have taken a more moderate course, hoping to 
adjust some of the difficulties on the spot.
 
       We are preparing an approach to Moscow designed principally to 
effect a modification of the present Soviet practice of making de-
cisions and instituting measures in the name of the Allied Control 
Commission, without consultation with the American and British re-
presentatives. We also expect to effect the removal of restrictions 
on the movements of our representatives in Bulgaria, and better 
facilities for clearance of personnel and aircraft entering Bulgaria.
 
Conditions within Bulgaria
 
     The country is ruled - aside from the Soviet Chairman of the 
Allied Control Commission by a coalition government known as the 
"Fatherland Front" composed of representatives of the Communist 
Party and  the Agrarian and Union-Zveno parties, in which it appears
that the Communists are steadily gaining the ascendancy aided 
covertly by Russian occupation authorities. Although the Regency 
ostensibly perpetuates the monarchical form of government, there 
have been reports that the safety of the Queen Mother, and perhaps 
the boy-King, Simeon II, may be endangered.
 
                                                      Bulgarian