860h.51/181: Telegram

The Chargé in the Kingdom of the Serbs, Croats and Slovenes ( Boal ) to the Secretary of State


20. Refer Legation’s no. 19, May 22[23], 10 p.m.,7 paragraph 1. The Minister of Finance has stated in writing today that the Yugoslav Minister at Washington has been sent instructions to make proposals to the World War Foreign Debt Commission for the refunding and settlement of Yugoslavia’s indebtedness to the United States; the Minister adds that the Government considers the settlement of this question of the greatest importance.

The Minister has informed me further in writing that his Government expressly undertakes not to use the proceeds of the loan to repay governments other than that of the United States.

The Government’s checks for $200,000 have been placed in the hands of the representative of the Standard Oil Co. here today.

With reference to the Department’s telegram no. 17, May 22, 5 p.m.,7 the Minister of Finance assures me that his Government will not sign any loan agreement with American bankers before notification from the Department that it offers no objection.

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