840.51 FC 60H/3–2747

The Yugoslav Ambassador (Kosanović) to the Acting Secretary of State

P. No. 465

The Ambassador of the Federal People’s Republic of Yugoslavia presents his compliments to the Honorable the Acting Secretary of State and on behalf of the Government of the Federal People’s Republic of Yugoslavia has the honor to inform that the Yugoslav property in the United States of America videlicet the property of the Government, of the National Bank and of Yugoslav Nationals as well as Yugoslav gold, since March 24 1941 has been subject to control and restrictions of the regulations imposed pursuant to the Trading with the Enemy Act as amended.1 Such Yugoslav property is still governed by the aforementioned regulations, which have been imposed in a period of emergency as necessary in the interest of national defense and security.

The Government of the Federal People’s Republic of Yugoslavia consider that the exercise of control over such Yugoslav assets by the United States Government has been inspired by the principles and aims which were solemnly set forth in the United Nations Declaration of January 5, 1943,2 and resolution No. 6 of the United Nations Monetary and Financial Conference, and that the application of those principles has effectively prevented the common enemy from looting Yugoslav assets in the United States during the war. They consider, however, that the reasons for the said restrictions and control, have as far as Yugoslav assets are concerned, ceased to exist, and that therefore any further necessity for the application of such regulation to Yugoslav property no longer exists.

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While the Yugoslav Government has with satisfaction taken notice that the assets of other Allied countries in the United States of America, have been released on the basis of agreements reached, at the same time they cannot fail to express their surprise that Yugoslav assets are still subject to the above control and restrictions.

The Yugoslav Under Secretary of State for Foreign Affairs on August 22, 1946, addressed two letters to the Honorable the Secretary of State of the United States of America, dealing with this matter: first concerning the certification of Yugoslav gold deposited with the Federal Reserve Bank in New York and the second, sent with reference to the note of the Department of State dated June 13, 1946, concerning Yugoslav property administered by the Alien Property Custodian. In this second note the idea of discussing this question was accepted and Belgrade proposed as the place for these discussions.3

The Yugoslav Government note with regret that no answer whatsoever has been received to the second note, and that only the receipt of the first has been acknowledged.

Desirous of settling this pending question, regardless of whether such Yugoslav property is administered by the United States Treasury or by the Alien Property Custodian, and also desirous of resuming normal financial and trade relations between the two countries, the Government of the Federal People’s Republic of Yugoslavia has the honor to express once more their readiness to discuss the question of the Yugoslav property administered by the Alien Property Custodian, and are prepared to appoint their representatives to discuss the matter with the Department of State and the Custodian. Furthermore, the Yugoslav Government has the honor to propose that the discussions should cover the inclusion of the Federal People’s Republic of Yugoslavia in the General Licence No. 95; the release of gold and account of the Yugoslav National Bank under the United States Federal Reserve Act, and the issue of a licence to the National Bank under the United States Gold Reserve Act of 1934, authorizing it to earmark and export such gold.

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The Government of the Federal People’s Republic of Yugoslavia is anxious to discuss all these questions with the Government of the United States of America within the shortest possible time and has the honor to request the Government of the United States to determine the place and the time of these negotiations.

The Government of the Federal People’s Republic of Yugoslavia earnestly hope that full and friendly agreement will be reached through these negotiations.

S. N. Kosanović
  1. Regarding the Yugoslav assets blocked in the United States, see telegram 84. January 30, from Belgrade, footnote 4, p. 754.
  2. For text, see Foreign Relations, 1943, vol. i, p. 443.
  3. The two notes under reference here, neither of which is printed, were delivered to the Department of State by Yugoslav Embassy officers on September 13, 1946. The first note reviewed correspondence carried on in 1945 and 1946 between the Federal Reserve Bank and the Yugoslav National Bank on procedures relating to the unblocking of Yugoslav gold held by the Federal Reserve Bank. Velebit’s note urged that the necessary measures be taken by the United States to unblock this gold in order that it might be used to meet the urgent needs of the Yugoslav Government. The second note stated that the Yugoslav Government was prepared to discuss with the United States Government those questions relating to the unfreezing of the assets of Yugoslav citizens in the United States and to conclude with the United States appropriate agreements covering such matters (840.51 FC 60H/8–2246). The note of June 13, 1946, from the Department of State to the Yugoslav Embassy under reference here is also not printed.