Foreign Relations of the United States, 1947, Eastern Europe; The Soviet Union, Volume IV

860H.48/2–347: Telegram

The Chargé in Yugoslavia (Hickok) to the Secretary of State

secret

Belgrade, February 3, 1947—3 p. m.

97. ReDepcirtel January 28, 6 p. m.¹ Embassy assumes UN committee actions subject to discussion and approval. Embassy possesses no information re justification $68,200,000 program and would appreciate opportunity to review Yugoslav statement. Embassy agrees political consideration should not influence relief grants but feels on exclusively economic grounds there is no case for continued grants to Yugoslavia unless: (1) Yugoslav Government can justify maintenance army which requires 51% national budget; drains food, construction and transportation supplies; withholds men and resources from productive labor. (2) Yugoslav Government satisfactorily accounts by receipts and by expenditure projects for profits from UNRRA sales now estimated over $350 million. (3) Yugoslav Government accounts for distribution all UNRRA supplies processed in Yugoslav factories. (4) Yugoslav Government presents foreign trade data and explanation for heavy export balances to USSR.

Re food supplies. Embrep 120, December 16, 1946² presents data showing adequacy Yugoslav diet. Question re industrial supplies is of more concern to Embassy. Yugoslav industrial needs and uses have never been reviewed by non-UNRRA experts and only superficially by UNRRA observers. Without impeaching latter’s efforts, Embassy believes it highly undesirable to tender further assistance until data available to establish current capacity Yugoslav industry, extent employed for army materiel and movements, and extent utilized in currently uncompensated foreign trade.

Embassy has no desire to discuss political aspects maintenance Yugoslav army and relationship Yugoslav Government with USSR. Embassy strongly of opinion that there are purely economic aspects to army size, foreign trade and diversion of UNRRA profits to non-relief and rehabilitation purposes which indicate Yugoslav Government has not fully devoted its own economic resources to problems and that future relief supplies will be diverted to similar economic inefficiencies.³

Hickok

1. Not printed; it stated that the United Nations Special Technical Committee concerned with relief programs following the termination of the United Nations Relief and Rehabilitation Administration had estimated Yugoslavia’s relief needs at $68,200,000 (800.00 Summaries/1–2847).
2. Not printed.
3. Telegram 78, February 14, to Belgrade, not printed, informed the Embassy that the findings of the UN Special Technical Committee were not binding upon governments and that the “U.S. has no present intention of making relief grant to Yugo following termination of UNRRA shipments”. (860H.5018/2–347)