Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

768.5 MSP/1–2254

No. 686
Memorandum of Conversation, by the Director of the Office of Eastern European Affairs (Barbour)

secret

[Washington,] January 22, 1954.

Subject:

• Economic Aid for Yugoslavia

Participants:

• Mr. Vladimir Popovic, Yugoslav Ambassador,
• Dr. Mirko Bruner, First Secretary, Yugoslav Embassy,
• Mr. Robert Murphy, Deputy Under Secretary, Mr. D. A. FitzGerald, FOA,
• Mr. Walworth Barbour, Director, Office of Eastern European Affairs.

The Yugoslav Ambassador called by appointment made at the request of the Department on January 22. Mr. Murphy informed him in accordance with the briefing memorandum, copy attached.¹ The Ambassador expressed the appreciation of his Government for this assistance. He went on to discuss recent developments in the Yugoslav food situation, with particular reference to wheat, noting that, while the Yugoslavs had estimated an annual wheat consumption at the rate of some 102,000 tons per month, in practice consumption had amounted to 118,000 tons, which had made it necessary to increase the Yugoslav annual requirements figure by some 190,000 tons. It was estimated that such 190,000 tons would be worth some $13,000,000 or $14,000,000.

Mr. Murphy and Mr. FitzGerald took note of this additional requirement and, without indicating whether there might or might not be any funds available for such additional assistance, stated that it would be considered with the economic mission in Belgrade and in FOA in the light of available statistical data and FOA’s financial possibilities.

The Ambassador then raised the question of off-shore procurement, noting that while orders for some $5,000,000 worth of such items, principally small arms ammunition, had been let, there seemed to be considerable delay in additional orders up to the $20,000,000 estimated Yugoslav production capacity. Mr. Murphy suggested that this problem is a matter for Defense and would be brought to their attention.

Finally, it was requested that the Ambassador in talking to the press following this visit merely indicate that he had discussed general economic questions and not make public the specific $30,000,000 assistance figure which we do not intend to announce especially but will publish along with figures for certain other countries in a few days. The Ambassador concurred, although he professed to be unconvinced that our reason for the request is merely the confusion which might result from publicizing the partial $30,000,000 figure while the additional $15,000,000 for surplus agricultural commodities is still not firm.

1. Not printed; the briefing memorandum was in the form of a memorandum of Jan. 22 from Barbour to Smith, in which Barbour recommended that Ambassador Popović be told that, in light of reduced total appropriations from Congress for FY 1954 economic aid. Yugoslavia would receive $30 million in economic assistance, but that the United States planned to make available an additional $15 million for surplus agricultural commodities, although it was not possible to make a firm commitment at this time on the figure or on the commodities involved. Popović was also to be told that FOA was making an initial allotment of $20 million for FY 1954.