800.51 W 89Yugoslavia/58: Telegram
The Minister in the Kingdom of the Serbs, Croats and Slovenes ( Dodge ) to the Secretary of State
[Received March 27—7:55 a.m.]
11. The Minister of Finance has requested me verbally to ascertain whether, if he accedes to the British refunding demand in connection with new issue of Blair loan, the Government of the United States will demand a similar reimbursement plan. Minister of Finance tells me that the new issue is to be used wholly for railroad construction beneficial economically to Yugoslavia, thereby increasing the security for American advances and that the British Government by offering to guarantee the British portion of the issue are offering a quid pro quo for the refunding plan. The Minister declares that if the Government of the United States insists upon similar reimbursement plan the new loan issue may be imperiled. In conversation he now appears to be indisposed to submit refunding proposal mentioned in my despatch No. 2572 of February 11, alleging as a reason lack of financial resources and that Yugoslav Government should not submit proposals before France. The present occasion may offer a favorable opportunity for pressing the Yugoslav Government to submit a moderate refunding plan for the post-war debt, if not of the entire debt, to the United States; without some such occasion as the present the Yugoslav Government will probably put off indefinitely submission of a plan.89
- In telegram No. 8, Apr. 3, 1925 (not printed), the Minister was instructed to state informally in writing that the Government of the United States is entitled to be treated on an equal footing with other governments with respect to its advances to the Yugoslav Government, and that the United States will insist that if any settlement is made by Yugoslavia with another creditor nation there shall simultaneously be made a suitable settlement with the United States of the indebtedness due it (file No. 800.51W89Yugoslavia/58).↩