860h.51/255

The Yugoslav Minister ( Grouitch ) to the Secretary of State

P No. 319

Sir: By my letter of June 15th last, P No. 260,14 I have had the honor to inform you that out of the proceeds of the loan of $25,000,000 [Page 1019] by American bankers to my Government there would be appropriated, among other items,

1.
Repaying debt advances made by the National Bank, which means redemption of dinar paper currency, $2,000,000.
2.
For exchange stabilization $1,700,000.
3.
For erection of buildings for Ministries other than the Ministry of Communications, $1,500,000.

I have been informed now by my Government that the Committee of Finance of the National Skupstina (Parliament) has prepared the draft of bill concerning the loan which has to be passed by the Parliament, and has amended the appropriations above mentioned so that the whole amount of the sums effected to repaying debt advances made by the National Bank and for exchange stabilization, together with $1,000,000 out of the appropriation for the erection of buildings for Ministries—$4,700,000 altogether—should be used instead for repair and construction of highways, for repair and construction of hospitals and for erection of buildings for primary education.

I have been instructed to request the authorization of the United States Government for this amendment and to point out that the new uses to which the sum in question will be put are of an entirely productive character and in the opinion of the Royal Government would answer better to the intentions of the United States Government concerning this loan.

I will be very much obliged to you, Sir, if you will be kind enough to inform me at your earliest convenience of the decision of the United States Government concerning this matter.

Accept [etc.]

S. Y. Grouitch
  1. Not printed.