Memorandum by the Assistant Adviser on International Economic Affairs (Livesey)

Mr. Dunn23 having referred the Yugoslav Minister to me, I first telephoned Mr. Pierson of the Export-Import Bank, who said that Mr. Jesse Jones24 and he would be opposed to giving Yugoslavia any credit.

The Minister told me that the Government’s interest was in buying armament over here but that to finance this it would like to obtain credit terms for paying for some of its ordinary imports. I discussed the matter but told him that his best procedure would be to talk with Mr. Pierson and have the matter come before the Department by reference from the Bank. I indicated that it seemed very doubtful whether the Bank would want to do anything now in view of the unsettled European conditions, et cetera.

The Minister at no time mentioned any commitment of the Bank to Yugoslavia regarding a cotton credit. He took up the matter as though making a first approach. Apparently he has accepted Mr. Pierson’s suggestion that the previous negotiations have lapsed. So I did not mention anything about them.

  1. James Clement Dunn, Adviser on Political Relations.
  2. Administrator, Federal Loan Agency.