800.00 Summaries/9–348: Airgram
The Secretary of State to Certain Diplomatic Missions 1
US Views on Yugoslav Approach for Oil Equipment
The Department has been informed by three US oil well equipment supply companies that the Yugoslav Embassy here recently approached them with respect to purchasing quantities of drilling and auxiliary equipment in exchange for certain Yugoslav minerals and ores. After consideration we feel that, while now rendered less likely because of the Tito–Soviet rift, the possibility still remains that some of this equipment might go to the Soviets, who are desperately in need of such items. Yugoslav actions at the Danube Conference and in the Security Council indicated that they are still faithful supporters of Soviet foreign policy. In the light of these and other considerations we consider that the Yugoslav proposal, as now framed, appears unattractive. It is, however, conceivable that some or all of the oil equipment sought by the Yugoslavs may be of sufficient importance to Tito to provoke more significant concessions on their part, possibly of sufficient political magnitude to justify our favorable consideration of these exports. It accordingly seems advisable to us, in turning down the present proposals, to leave the door as open as possible to any further propositions the Yugoslavs might wish to make. We therefore plan to inform the US suppliers that, while a final determination of the US position regarding the exportation of this equipment would depend upon further consideration with other departments, the present short supply of certain of the material desired would make it difficult for us to recommend favorable action on such exports to Yugoslavia, but that [Page 1106] we are of course interested in promoting trade and will be glad to consider any proposals which Yugoslav representatives wish to make.2
- This airgram was sent to the Embassies in Yugoslavia, the United Kingdom, France, and the Soviet Union.↩
- Yugoslav representatives continued to press their request for oil drilling machinery during the remainder of 1948. In a conversation on December 13, Walworth Barbour, Chief of the Division of Southern European Affairs, informed Yugoslav Ambassador Kosanović that in view of the complicated factors involved in the export of oil drilling equipment, the Department could not recommend issuance of appropriate export licenses. Kosanović was informed that the Department of State would consider carefully any other items which the Yugoslav Government was interested in importing. (660H.119/12–1348)↩