The Secretary of State to the Ambassador in Yugoslavia ( Patterson )
118. For your information I took occasion of call on Feb. 20 by Yugos Ambassador Simic, who has since left for Belgrade where he will take up appointment as ForMin, to discuss following Yugos affairs.
I referred to our note of Dec 21 9 requesting confirmation of continued recognition by the Yugos Republic of treaties and agreements [Page 871] in force between the U.S. and Yugos and expressed regret that no answer to that note had been received. Simic inquired as to the necessity of such reassurances, indicating that the Yugos Government had at San Francisco committed itself to carrying out certain obligations, but I told him that I saw no reason why any newly established Government should not state whether or not they would continue to recognize treaties and agreements which have previously been in existence.
I next turned to the situation of American interests in Yugoslavia, mentioning particularly the American-Yugoslav Electric Company, Socony-Vacuum Oil Company, and Corn Products Refining Company, and, in urging consideration of the problems of those companies, expressed the hope that in his new capacity the Ambassador could do something to achieve a fair and equitable settlement of the matter, just compensation being paid where due. Simic assured me he would do so, as the Yugos constitution obliges them to protect interests of American citizens.
I then expressed surprise and disappointment over the movement of Yugos troops into the Venezia Giulia area. I informed him that in London I had, in an effort to compose the opposing views, suggested in the CFM the formation of a Commission to investigate this situation, giving consideration to the ethnic and economic views of the people. In moving troops into the area the Yugos Government is not assisting the Commission to make the calm and judicious decision that should be made but is on the contrary endeavoring to influence the action of the Commission and to stir up demonstrations. There would not be much use in the Commission proceeding with an investigation if such an investigation could not be made as the Commission pleases but instead is to have demonstrations thrust upon it and have troops brought in to frighten the people. Simic stated that he did not know why the divisions were being moved in and mentioned the movement of Polish troops in Trieste. In the latter connection I reviewed the manner of the presentation to the United Nations in London of the Yugos Government’s memorandum in that regard and, in noting that the Yugos Government had not previously inquired of us concerning the charge that the Polish troops were to replace American troops, I stated that had the Yugos Government made such an inquiry we would have informed it that that allegation is untrue and it would thus have been unnecessary to raise the matter with the United Nations. I remarked on the 600,000 troops which the Yugos Government has under arms and the Ambassador exclaimed that they had only 300,000. He went on to summarize the previously expressed Yugos view that they could not demobilize large numbers of troops [Page 872] which are engaged in various aspects of the rehabilitation program of Yugoslavia.
In conclusion Simic assured me that in his new office as ForMin he would see to it that this country is kept fully informed on all matters of interest to it.
Repeated to Rome and to London for Dunn.10