860h.51/192a: Telegram

The Secretary of State to the Minister in the Kingdom of the Serbs, Croats and Slovenes (Dodge)


22. With reference to Department’s no. 20, June 1, 7 p.m., Blair & Co. informed the Department this morning that their representative had informed them that the Yugoslav Government had accepted their bid and had refused the Hallgarten bid, and that he had been invited to appear to conclude the business today.

While Blair & Co. have not been advised definitely that the Yugoslav Government has signed the loan agreement, the Department is reluctant to believe, in view of the assurances expressed in the last paragraph of your no. 26, May 28, 2 p.m., that the Yugoslav Government would not sign any agreement with American bankers until after an expression of the Department’s views in the matter, that the signature has taken place. The Department has so advised the Serbian Minister here.