360H.115/4–147: Telegram

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


338. Velebit today presented two notes to me. The first stated that Yugoslav Govt shares our desire for early settlement of questions concerning American property in Yugoslavia.1 Noting that nationalization law provides for compensation to property owners and that property evaluation should be effected with participation of property owners, note proposes direct negotiations between two governments and requests US suggest place and time for negotiations. Note expresses hope that successful conclusion of negotiations will contribute to resumption of commercial and financial relations.2

Second note is copy of note delivered by Yugoslav Ambassador to Dept regarding Yugoslav gold and assets frozen in US.

[Here follows a very brief description of the note of March 27 from Ambassador Kosanovich to the Acting Secretary of State, supra.]

I said to Velebit that I was sure Dept would be pleased to know of Yugoslav willingness to discuss our claims and that I believed we would negotiate simultaneously about Yugoslav gold. He said that it would be agreeable to Yugoslavia if a special US representative should come to Yugoslavia to negotiate as envisaged by Dept in its telegram 811, December 5, 1946.3

[Page 784]

Would appreciate early instructions as to what more I may say to Velebit.4

  1. The note under reference is not printed.
  2. In telegram 338, April 1, from Belgrade, not printed, Chargé Cabot reported that in the course of this same meeting, Velebit had emphasized the Yugoslav desire for the resumption of normal commercial relations but admitted that Yugoslavia had no specific proposals to make (611.60H31/4–147).
  3. Not printed.
  4. In telegram 347, April 4, from Belgrade, not printed, Chargé Cabot commented further on the Yugoslav proposals and made the following recommendation:

    “Since Yugoslavs are apparently anxious to obtain control their assets, Dept may wish to consider demanding settlement of other matters we consider of right, for example, translator and Wedge cases, as prerequisites for release of Yugoslav assets. I see no impropriety in insisting upon extraneous stipulations in this matter since only property is involved.” (360H.115/4–447)