No. 827

Editorial Note

Yugoslav Ambassador Popović called on Assistant Secretary of State for Economic Affairs Thorp on January 10 to elicit the opinion of the Department of State on his government’s request for a further $41 million of American assistance to meet Yugoslav raw materials requirements and to discuss other economic questions. Ambassador Popović anticipated that, if such assistance and other credits currently being negotiated materialized, no further assistance would be needed. The Ambassador was informed that the question was under careful study and that the Department of State would soon be in a position to discuss it. In reply to a question concerning the status of current negotiations with the IBRD, Popović indicated that the most recent discussions had centered on the needs of the Yugoslav economy for long-term financing, and it was hoped that consideration of the first phase of the Yugoslav development program would be concluded very soon. Popović also indicated Yugoslavia’s interest in American assistance through an ECA allotment to West Germany which would permit the West Germans to extend the duration of their outstanding credit to Yugoslavia and to extend further credits up to a total of $40 million. In response to an inquiry concerning Yugoslavia’s attitude toward the European Payments Union, Ambassador Popović indicated that he would be glad to explore such a possibility. A memorandum of this conversation was prepared, but no copy has been found in Department of State files. The information set forth here is based upon a précis of that memorandum included in the Daily Secret Summary for January 11, 1951. (Lot 52–241)