The Ambassador in Italy (Dunn) to the Secretary of State
976. After discussion with Yugo representatives, AMG Trieste has now submitted to G–5 section, AFHQ, proposed agreement between AMG and Yugo authorities for administrative handover to latter of areas now in zone A. ReDeptel 227 February 151 and Embtel 867, April 19.2
AMG also reports Yugo representatives refuse discuss handover with Italians, saying their instructions are to discuss with AMG.
Yugo position, and apparently similar Italian position, appear justified in view our invitation based on Department’s 227 to discuss administrative handover with allied military authorities.
However, Fan 724, February 8, paragraph 7,3 instructs SAC that he is not responsible for putting into effect procedure finally agreed. G–5 reply to Italian proposal for handover of Pola reported in my 867 was based on these instructions. G–5 feels it cannot approve arrangements AMG has tentatively made with Yugos but has agreed to issue instructions suspending all action pending clarification of apparent conflict between instructions to SAC and representations made to Yugo and Italian Govts. Military authorities feel AMG as interim administrator has no right to act as principal if turnover of areas from one sovereign state to another.
Suggest Department should urgently either obtain amendment to paragraph 7, Fan 724, or authorize Embassies Belgrade and Rome to make further representations Yugo and Italian Govts insisting their delegates should negotiate directly through good offices AMG.
Repeated Belgrade 44.