Conference files, lot 60 D 627, CF 398

No. 677
Memorandum of Conversation, by the Assistant Secretary of State for European Affairs (Merchant)

confidential
  • Subject: Yugoslavia

Participants:

  • Premier Mendès-France
  • Ambassador Bonnet
  • The Secretary
  • Livingston T. Merchant

Mendès-France mentioned to the Secretary that French relations with Yugoslavia were on the whole good. He said that he had had feelers at different times regarding a visit to Paris by Tito and now that the Trieste matter had been settled they proposed to invite Tito to visit Paris in the near future. He also mentioned that there were some tentative plans for a state visit by the Italian President to Paris soon after the turn of the year.

The Secretary then took the opportunity to describe the current economic negotiations which we were having with the Yugoslavs.1 [Page 1499] M. Mendès-France seemed interested and appreciative. He mentioned the difficulty they were having over the matter of the short term credit to Yugoslavia which is in private hands. He said the Yugoslavs were behind on their amortization and the French citizens holding the obligations were making it embarrassing for the French Government to continue its contribution to tripartite aid to Yugoslavia. The Secretary indicated generally that anything the French could do in the Yugoslav financial situation would be helpful.

  1. Documentation on the U.S.–Yugoslav economic talks in Washington, Nov. 12–22, 1954, is scheduled for publication in volume viii.