Memorandum by the Foreign Trade Adviser, Department of State (Young)

Mr. Forbes, of Blair and Company, called on Mr. Phillips this morning to discuss further the matter of that Company’s interest [Page 1006] in the proposed Yugoslav financing. He was given a copy of the letter addressed to his firm by the Department on May 15th.3

He inquired whether the Department would be willing that his firm, in order to avoid losing out in the business, should make a contract with the Yugoslavs subject to the reaching of an understanding between the Yugoslav Government and this Government in the matter of the debt. Mr. Phillips stated that this would seem inconsistent with the Department’s position that it could not view the financing in question with favor in the absence of an understanding regarding the debt. Mr. Forbes inquired whether he could show the Department’s letter of May 15th to the Yugoslav Government and Mr. Phillips said that he saw no objection. Mr. Forbes stated that he would take up the matter at Belgrade with the Yugoslav Government, rather than take it up with the Legation at Washington.

A. N. Y[oung]
  1. Not printed.