Foreign Relations of the United States, 1950, Central and Eastern Europe; The Soviet Union, Volume IV

768.56/11–1650: Telegram

The Secretary of State to the Embassy in France

top secret

Washington, December 9, 1950—4 p. m.

3184. Re Embtel 2776 Nov 16 rptd Belgrade 38 London 660.¹

1. Fr Emb presented aide-mémoire Dec 5 stating:

(a) Report of tripartite comite on mil aid to Yugo (reDeptel 2401 to Paris Nov 3² rptd Belgrade 335 London 2334) raises basic question whether three countries are prepared approach Yugo Govt with view to proceeding to practical steps; (b) Fr Govt considers Yugo negots with France for mil equipment provide opportunity to sound out Belgrade auths and to initiate deliveries of materiel in manner which would appear, from polit viewpoint, to take full acct of position of Yugo Govt; (c) it would be desirable for three govts to settle questions which tripartite experts found beyond their competence, notably problem of financing; and (d) Fr FonOff proposes tripartite discussions on these questions be opened in Paris at early date and desires know whether this procedure acceptable to Dept.

2. Dept is of opinion Fr-Yugo negots, which have essentially commercial character and involve peculiarly Fr interests such as prewar debts and compensation for nationalized properties, should, as suggested in para 2 of Belgrade’s 511 to Dept (rptd Paris 68 London 35),³ be held separate and distinct from broader problem of developing general program of mil assistance to Yugo. US (and presumably Brit) role in Fr-Yugo negots should accordingly be confined to determination whether release of any or all of mil items by Fr to Yugo would be prejudicial to interests of gen rearmament program or of policies guiding program of assistance to Yugo. Dept accordingly considers it appropriate that all discussions concerning mil materiel involved in Fr-Yugo negots for financial-commercial agreement be centered in Paris and will undertake to provide you with necessary instructions for that purpose at early date. With respect to broad policies of mil aid program, however, Dept believes decisions can be taken only after further consideration of tripartite comite report and reconciliation of views of three govts thereon, and inclines to prefer in view of work already done here that discussions on this program remain in Wash. Views of Paris Belgrade and London Embs on this point urgently requested.

3. As possibly providing insight into actual Yugo needs, Dept would appreciate any info obtainable from Fr auths whether list given in reftel (and Paris despatch 1365 Nov 28 now received⁴) contains all items requested by Yugo or only those which Fr feel they are in position to provide.

4. Dept would appreciate as detailed as possible info re present status of current Yugo-Fr debt settlement and credit negots and nature of terms being discussed⁵ (see Belgrade’s 511 to Dept repeated Paris 68 London 35).

Sent Paris, repeated London as 2973, Belgrade as 507.

Acheson

1. Not printed, but see footnote 2, p. 1498.
2. Ante, p. 1496.
3. November 17, p. 1501.
4. Not printed, but see footnote 2, p. 1498.
5. Telegram 3336, December 11, from Paris, not printed, reported that the Embassy had been informed by the French Foreign Ministry that the negotiations with Yugoslavia had been held up pending American comments on the military items to be provided and a determination by the French Government of the degree to which credit could be extended to Yugoslavia. The Yugoslav representatives appeared to be most impatient to complete the negotiations for arms already requested and had made tentative inquiries about additional items (768.56/12–1150).