768.5 MSP/10–852: Telegram

No. 658
The Ambassador in Yugoslavia (Allen) to the Department of State1


489. Embtel 484, Oct 7.2 Appeal by Bebler re econ aid appears to have resulted at least in part from dispute which has arisen between Francis Mudie and Dep FonMin Crnobrnja over Brit shopping list. US and French dels have agreed put emphasis on urgently needed food and raw materials but Mudie seems determined force Yugos to adopt his own ideas and is holding out for irrigation works and tech assistance on Brit list. Mudie’s general approach during past year has been to delay aid program wherever possible and make Yugos “bow the knee”. He recently asserted to New York Times correspondent he had Yugos eating out of his hand. He has now gone off on two weeks leave, with indication to Yugos nothing can be done in his absence.

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Tactics being used by Mudie, supported by Brit Amb, may achieve some apparent temporary success in rendering Yugos more tractable but he represents type of Colonial official who held on too long in India and whose Nineteenth Century outlook was primary cause for spread of communism in Orient. I have reminded Brit Amb that Brit themselves wld be first resent Mudie’s tactics if US applied them in our aid policy towards UK.

Bebler attempted to involve French Amb and me in essentially Brit-Yugo dispute. Since Yugos know we and French have been ready sign aid agrmt for several days, only part of his request which concerned US was urgent Yugo need for raw materials, which Yugos cld have pressed with our econ del and which in fact they have already presented.

As soon as tripartite agrmt is signed, US, UK and French aid programs will be administered individually and there shld be less occasion for us to be concerned with Brit shopping list or Mudie’s quarrels.3

  1. Repeated for information to London and Paris.
  2. Supra.
  3. After the British Government indicated its readiness to sign the aid agreement, it was announced in Belgrade on Oct. 13 that the three powers and Yugoslavia, by an exchange of letters, had confirmed their understanding as to the basis on which tripartite aid was to continue for the 12 months from July 1952 to June 1953. The text of the agreement was not made public. The text of the tripartite communiqué issued in Belgrade, Oct. 13, as well as the text of the official Yugoslav news agency statement that day, were sent to the Department of State in telegram 558 from Belgrade, Oct. 18. (786.5/10–1852)