Office of the Historian

768.56/12–1550: Telegram

The Acting Secretary of State to the Embassy in France 1

top secret
Washington, December 20, 1950—7 p. m.

3370. Re Embtel 3450 Dec 15 rptd Belgrade 51, London 840.2

1.
Defense instructing MAAG Paris to initiate investigations through Fr authorities of certain technical aspects military materiel which Fr contemplate selling Yugos and to keep Emb informed.3 Emb shld informally advise Fr FonOff nature and purpose these investigations.
2.
Dept favors and desires encourage this transaction whereby Fr supply arms to Yugo designed maintain strength of Yugo armed forces, even though there might be some question as to relative value some items in meeting most urgent Yugo requirements. To the extent that the items do not essentially duplicate material being supplied under MDAP and urgently required by Fr or IC,4 and do not represent significant requirements in other NAT countries, which requirements could be met by transfer to these countries by mutually satisfactory arrangements, then US prepared interpose no objection to the sale. You may so inform Fr, if you see fit, in order give them opportunity initiate adjustments in anticipation any adverse findings by MAAG. You shld make it clear, however, we will reserve our final views until after MAAG report.
3
As Yugos are making settlement of Fr debt and nationalization claims against Yugo contingent on arms sale by Fr, conclusion agreement on latter shld facilitate general finan settlement and so remove obstacle which Fr have hitherto raised on repeated occasions to more wholehearted participation in implementation agreed policy of giving econ support to Tito in his resistance to Cominform.
4.
Defense concurs.
Webb
  1. This telegram was repeated to Belgrade as 572. Copies were also sent to London.↩
  2. Not printed. It replied to questions raised in telegram 3069, December 4, to Paris, p. 1509. It reported that additional Yugoslav military orders for equipment had become known to the French Foreign Ministry, that it was not certain how many jet trainer aircraft had been requested by Yugoslavia, and that the French repeated their assurances that all Yugoslav military orders were being held in suspense pending a tripartite decision on the matter (768.56/12–1550).↩
  3. The reference here is to telegram WAR 99235, December 19, to the Chief of the Military Assistance Advisory Group in France, not printed.↩
  4. Indochina.↩