740.0011 European War 1939/501: Telegram

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

285. Referring to my telegram No. 282 of September 21, 10 p.m.

It is in our opinion very significant that the Prince Regent, whose antipathy towards the Soviet regime is so well known, should now take the position that it is to the interest of Yugoslavia that the Soviet rather than the German troops are on the Rumanian border.
There are rumors current that Yugoslavia has decided not to make any further purchases of airplanes or war material. The Prince, however, stated to me that Yugoslavia must obtain airplanes and arms immediately and candidly admitted the reason for his desire to increase trade with the United States (see my 283 of September 21, 11 p.m.76) was to provide Yugoslavia with foreign exchange with which to finance arms purchases. He indicated that the amount required is many times more than $2,000,000 (approximately the amount which would be deposited to the credit of the Yugoslav Government at New York in the event that the concession to the Standard Oil Company of New Jersey were satisfactorily consummated).
The local morale has greatly improved since it has been known that the Soviets are on the Rumanian border. The Yugoslavs now feel that the danger of German invasion is lessened. The Bulgarian Minister states that the same feeling obtains in his country because of Pan-Slav sentiment.
  1. Printed in vol. ii , section entitled “Proposals for the Regulation of Commercial Relations Between the United States and Yugoslavia,” under Yugoslavia.