740.0011 EW/1–2745: Telegram
The Acting Secretary of State (Grew) to the Secretary of State
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Yugoslav situation. Subasic has agreed to King Peter’s latest proposal which calls for the resignation of the government and its immediate reconstitution under Subasic on a wider basis. Thereafter the new government would bring into operation the Tito-Subasic agreement taking into consideration the King’s two objections. If the King’s counter proposal is not accepted he will agree to regency clause. Tito has agreed to Subasic’s coming to Belgrade to implement the agreement including the appointment of a regency. Subasic plans to leave for Belgrade on January 29.
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