750G.00/9–2454: Telegram

No. 285
The Chargé in Yugoslavia (Wallner) to the Department of State1
top secret

244. Limit distribution. At Murphy’s telephonic request I called on Bebler this morning and informed him:

Scelba had agreed to recommend to Cabinet acceptance of one of the territorial alternatives proposed by Murphy. (I did not go into details and Bebler did not mention the quarry.) I explained that Scelba preferred to present agreement to Cabinet with all points agreed and ask them to accept it with one of the territorial alternative.
That financial aspect of cultural houses deal could now be settled to satisfaction of Yugoslavia.
That it was most important that Velebit receive immediate instructions to conclude with all speed on outstanding main points.

Bebler exuded satisfaction. He says he had just despatched by special courier detailed instructions to Velebit on all outstanding points which would enable him to conclude them. These instructions should arrive in London tomorrow and were conceived “in a broad spirit”. He cited as example that Velebit was charged with pressing for frontier demarcation in Gorizia area but was on no account to allow it to hold up overall Trieste settlement. He then said with some emotion that a settlement would open new era for southern Europe. However painful to both parties in points of [Page 560] detail it would in effect, be a victory for both Yugoslavs and Italians since it would mean removal once and for all of an obstacle to international harmony which the present world could ill afford, and he mused for some minutes on this theme.

It would of course be a mistake to conclude from this that Velebit will agree to settle all outstanding points in Italy’s favor, but it does reflect the mood here which is for rapid wind up.

  1. Repeated for information to London, Rome, Paris, and Trieste.