640.0031 Danube/28

The Minister in Yugoslavia (Prince) to the Secretary of State

No. 1264

Sir: Referring to telegram No. 10, of January 27, 1932, from Vienna, stating that the British Ambassador to Germany had suggested the feasibility of some sort of Danubian Federation between Austria, Hungary, Czechoslovakia, Yugoslavia and Bulgaria, I have the honor to report as follows:

When I questioned Mr. Kramer, the Acting Foreign Minister here, as to the possibility of such an agreement, he said seriously, that his Government hopes “some time in the future” to effect an “economic agreement” between the countries mentioned, which, however, should not be in any way connected with politics.

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He added that the object of the recent visits here of two Hungarian statesmen, Messrs. Gratz and Friedrich, had been to try to pave the way for a closer entente with Hungary, but that the Hungarians had sought to infuse a political tone into the matter, especially referring to the frontier question which Yugoslavia must regard as settled for all time.

Mr. Kramer concluded by saying, that an economic arrangement, especially bearing upon crops, between the six nations alluded to would be probably highly desirable, provided political entanglements could be avoided, which he seemed at present to doubt.

I did not mention to the Minister the source of my information on this subject.

Respectfully yours,

John Dyneley Prince