808.03/11–1450: Telegram

The Secretary of State to the Embassy in Yugoslavia

secret

378. Re scope Yugo food program. Program now stands as fol. All figures cover ocean transport and internal handling U.S.: (1) Emergency [Page 1499] stop-gap portion (not dependent on Congressional auth) totalling $30.8 million which divides a.) ECA flour approx 110,000 tons $12.2 million from Italy and Germany; b.) MDAP funds $12.5 million covering 32,000 tons flour, 25,000 tons corn, 25,000 tons barley, 6,000 tons lard and 20,000 tons sugar; c.) Export-Import Bank $6.1 million for beans, eggs, canned meat already procured plus 9,000 tons lard. Except ECA flour, all sched for earliest shipment from U.S., sugar ex Cuba, aiming at arrival prior mid Jan 1951. (2) Balance of program, portion dependent on Congressional approval, approximates $50.2 million and 251,000 tons. Largest items, 125,000 tons corn, 125,000 tons feed grains and 50,000 tons vegetables and/or rice and also 15,000 tons seed for $4 million. Note that $50.2 million figure includes Export-Import Bank contribution under stop-gap program for which reimbursement may be requested from Congress.

Total program covers commodities necessary meet Yugo request except lard and sugar have been cut to 20,000 tons each. Scheduling Congressional portion program will be attempted along lines suggested ur 441 and 468. Impossible provide any firm estimate until Congressional action resolved.

Pls note that contemplated program limited to Yugo request with exception lard and sugar and no grant being asked for raw materials. Best prospects mtg amounts outlined ur 441 now appears to be through CARE religious-welfare institutional type program and possible grants from other NATO countries. Pouching copies program.

Acheson