860h.51/10–1245
The Secretary of State to the Ambassador in Yugoslavia (Patterson)
The Secretary of State quotes below, for the information of the Officer in charge of the American Mission at Belgrade, an extract relating to Yugoslavia, from a memorandum prepared in the Division of Foreign Economic Development of the Department, concerning the status of loan negotiations with various European countries:
“Yugoslavia: Yugoslavia has requested, in a note dated August 29, 1945,61 a loan of $300 million. The Yugoslavs have had various conversations with officers of the Department in regard to this request. The Yugoslavs are preparing a detailed statement of their requirements to support their request, but this has not as yet been received.
“In view of the political situation in Yugoslavia, SE62 feels that the United States should be cool toward a loan to Yugoslavia at the present time. The Export-Import Bank is not contemplating any action on the request until questions of policy are settled by the Department. It is generally agreed, moreover, that the figure of $300 million is entirely too large.”