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

No. 754

Sir: With reference to my telegram No. 321 of October 23, 5 p.m., in which I reported a portion of my conversation with the Minister of Finance, regarding his desire to obtain a credit of $500,000 from the Export-Import Bank for the purchase of raw cotton, I have the honor to state that the reason for my interview with Dr. Šutej was to discuss the affairs of the American-Yugoslav Electric Company. This phase of my conversation is reported in my despatch No. 753 of today.27

The Minister of Finance said that Prince Paul had very recently asked him why Yugoslavia had never obtained from the United States a credit for the purchase of cotton. The Minister continued that Dr. Glomažić,28 who had just returned from the United States, had written a letter to the Minister which Dr. Šutej proceeded to read to me in Serbian, his Chef de Cabinet translating it into English. The substance of the letter was that it is important for the Yugoslav Government to obtain a credit of $500,000 from the Export-Import Bank in order to purchase raw cotton from the United States, greatly needed here.

I informed the Minister of Finance that I had negotiated this matter with his predecessor Dr. Djuričić last summer and that the Export-Import Bank was prepared to grant such a credit, provided the Minister of Finance would designate a representative in the United States to carry on the negotiations in Washington. I said that if Dr. Šutej would designate a representative now, I felt certain that my Government would be glad to discuss the matter once more. The Minister said that the Yugoslav Minister in Washington, Dr. Fotić, is competent to handle the matter and that he would immediately get in touch with the Minister for Foreign Affairs in order that instructions should be sent at once.

Shortly after this interview I met the Minister for Foreign Affairs at a luncheon at the Italian Legation and informed him of the foregoing. Dr. Cincar-Marković said that he would see that instructions were sent to Dr. Fotić immediately.

Respectfully yours,

Arthur Buss Lane
  1. Not printed.
  2. Momir Glomožić, president-director general of Credit Foncier of Yugoslavia. He was member of mission to the United States to negotiate regarding cotton credits and to discuss trade relations between the United States and Yugoslavia.