860S.00/3–3148: Telegram

The Acting Secretary of State to the United States Political Adviser (Joyce), at Trieste


164. Urtel 163 Mar 30.1 In order provide fullest public record our administration UK–US Zone at time world attention focused on FTT, consider desirable Airey proceed preparation his second quarterly report as directed by CCS and transmit same soonest. Since we have indicated our conviction FTT unworkable under existing circumstances, we consider most important we give all possible proof we have made every effort toward success FTT as originally envisaged and have faithfully carried out all treaty obligations. By contrast Yugos who have submitted no report their administration and refused press or other observation their Zone will bear full onus failure treaty concept FTT.

Suggest report include specific reference examples Yugo violation letter and spirit treaty obligations and suppression freedoms insofar as such actions have direct effect in our Zone. Airey shd not make reference to matters internal administration Yugo Zone which do not have effect upon or reaction in UK–US Zone.

With reference economic aspects administration, care shd be taken avoid impression UK–US Zone economically incorporated Italy. Point shd be made certain close economic ties necessitated by currency and foreign exchange agreements required by treaty.

Dept has seen Brit FonOff’s tel of Apr 3 this subject and in general concurs therein with additional observations set out above.2

Sent Trieste 164, rptd London 1186.

  1. Not printed.
  2. In Fat 37 (Warx 82498) of May 25, not printed, the CCS advised General Airey that his report would be released in New York on May 27 (860S.00/5–2548).

    By letter dated May 24, the British and United States representatives at the United Nations (Cadogan and Austin) submitted General Airey’s report on the administration of the UK–US Zone for the period January 1–March 31, 1948 (Document S/781, United Nations, Security Council, Official Records, Supplement for August 1948, pp. 46–77).