Secretary’s Memoranda of Conversation, lot 64 D 199, “March 1953”

No. 674
Memorandum of Conversation, by the Director of the Office of Eastern European Affairs (Barbour)

secret

Subject:

  • United States-Yugoslav Relations with Regard to Military Matters, Trieste, and Economic Assistance.

Participants:

  • The Secretary,
  • Mr. Vladimir Popovic, Yugoslav Ambassador,
  • Dr. Mirko Bruner, First Secretary, Yugoslav Embassy,
  • Mr. Walworth Barbour, Director, Office of Eastern European Affairs.

Ambassador Popovic remarked that the Secretary must have been bothered frequently by requests for ambassadors to see him in this busy period and the Secretary replied that he was endeavoring to spread out his reception of ambassadors in order to fit the visits in with his schedule.

Ambassador Popovic said there were three subjects he wished to discuss briefly, namely, military matters, Trieste and economic assistance.

[Page 1343]

Military

The Ambassador expressed appreciation for American military assistance and the opinion that with such assistance, US and Yugoslav cooperation, as well as Yugoslav cooperation with Greece and Turkey, is appreciably strengthening defense against the threat of aggression. He noted the conclusion of the Greek-Turkish-Yugoslav friendship treaty on February 28 and the fact that military talks in connection therewith were also proceeding.1 He stated that difficulties in connection with military assistance are being ironed out between the military establishments of the two governments. He urged that the US give consideration to including Yugoslavia in the offshore procurement program, with particular reference to the procurement of small arms ammunition.

The Secretary remarked that delays in deliveries on military items were not confined to Yugoslavia but it is the purpose of the new administration to endeavor to overcome such difficulties as rapidly as possible. He said that the US welcomes the signature of the tripartite treaty, which is a step in the right direction. As to off-shore procurement, the Secretary assumed that the military establishments of the two governments would consider that matter further.

Trieste

The Ambassador said he did not wish to expound on the separate views of Yugoslavia and Italy on Trieste, but he did wish to note that the Yugoslavs felt they have made important concessions in an effort to arrive at a satisfactory solution and that in their view the Italians have been intransigent. He appreciated that the Italians would no doubt tell the Secretary the contrary. He asked whether the Secretary could say anything as to the US position in regard to Trieste. The Secretary replied that he was not in a position to set forth the US views in this matter today, that the US still had the matter under consideration. The Ambassador made the point that he hoped Italy would not be able to use the pressure of her NATO membership, in contrast to the non-membership of Yugoslavia, in achieving Italian gains.

The Ambassador further noted that the Italian attitude of reliance on the March 20, 1948 Declaration2 as a point of departure [Page 1344] toward a settlement and as a device by which to claim Yugoslav territory is unrealistic and the Yugoslavs could never agree to a settlement on that basis. The Secretary said that Yugoslavia would not be asked to accept a settlement on the basis of the tripartite declaration. He emphasized that the US regards the settlement of the Trieste problem as of importance but noted that it is a relatively minor part of broader and more fundamental problems. He said that Prime Minister De Gasperi had talked about Trieste when he was in Rome but that he had declined to discuss the matter as he was not in Rome for that purpose.3 The Secretary reiterated that the matter is still under consideration by this Government.

Economic Assistance

Ambassador Popovic referred to the recent drought in Yugoslavia, which is the second major drought Yugoslavia has suffered since the war, and, while noting that US economic assistance has been provided to alleviate the food shortage, said that such assistance in the opinion of Yugoslav economists would cover the period only through May. He added that there is some difference of opinion between Yugoslav and US economists as to Yugoslavia’s needs but in the view of his Government, Yugoslavia will need to cover the period from May through this year’s harvest additional foodstuffs amounting to 200,000 tons of wheat, 200,000 tons of corn and 20,000 tons of lard. The Ambassador had in mind the possibility that CARE might be utilized to obtain or distribute such foodstuffs as could be procured and, in response to a request for further clarification, indicated that CARE has approached the Yugoslav Embassy with a suggestion that surplus US Government stocks might be available for this purpose. The Ambassador expressed the opinion that despite the differences in view among the respective economists, it might be assumed that a country would not ask for additional foodstuffs instead of raw materials unless such foodstuffs were essential.4

  1. For documentation regarding the signing in Ankara of a Friendship Pact between Greece, Turkey, and Yugoslavia, Feb. 28, 1953, and the subsequent military talks between the three governments, see Documents 328 ff.
  2. For documentation regarding the announcement by France, the United Kingdom, and the United States, Mar. 20, 1948, that they favored giving Italy control over the entire Free Territory of Trieste, see Foreign Relations, 1948, vol. III, pp. 502 ff.
  3. For records of Dulles’ conversations in Rome with De Gasperi, Jan. 31–Feb. 1, see vol. V, Part 2, pp. 1551 ff.
  4. In a letter of Mar. 20 to Ambassador Popović, Stassen wrote that the United States was allotting an additional $7 million to Yugoslavia for the procurement of wheat to assist in meeting the effects of the 1952 drought and to maintain Yugoslavia’s defensive strength. Stassen noted that this left only $8.75 million available to Yugoslavia from the fiscal year 1953 MSA program. (Secretary’s Letters, lot 56 D 459, “W–Z”)