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

768.5 MSP/9–1854: Telegram

No. 703
The Ambassador in Yugoslavia (Riddleberger) to the Department of State

secret

Belgrade, September 18, 1954—6 p.m.

227. This is joint Embassy–USOM cable.

1. Following conference of Bebler, Murphy and Riddleberger September 18,¹ Killen called on Vukmanovic and advised as follows:

(a) US Government had given serious consideration to Tempo proposal of June 18² for bilateral talks on general economic problem of Yugoslavia;

(b) US Government had also studied proposal of Vukmanovic of August 31³ that, due urgency of wheat problem, this matter be discussed separately and at earliest possible time;

(c) US Government recognized the desirability of the talks proposed by Tempo on June 18 and hoped they could take place this fall;

(d) US Government recognized the growing urgency of Yugoslavia’s wheat needs and, in answer to Tempo’s August 31 request, was prepared to make 400,000 tons available as soon as possible to meet winter consumption needs;

(e) 150,000 tons would be provided from FY 55 economic aid funds and 250,000 from ATDA resources;

(f) 125,000 tons of the ATDA supplies would be a grant, requiring no local currency payment. The US Government reserved the right to utilize the local currency from remaining 125,000 tons in any manner it may find desirable and would be prepared to discuss such uses in any bilateral talks that may occur.

2. Tempo said he first wanted to express his thanks to the US in the name of his government and the Yugoslav people. Then he laughed and said he now could give the Russians an appropriate answer. He said this would ensure adequate supplies through the winter which was the greatest concern.

3. Tempo asked re timing of shipments and Killen replied that shipments would be undertaken as quickly as possible. He recognized the limitations of Yugoslav wharving and transport facilities and time would be required to make necessary shipping arrangement. He hoped shipments could start arriving by November 1 or earlier.

4. Tempo then asked about the timing and location of bilateral talks. Killen replied that he could give no firm answer to either but suggested that talks probably should not occur prior to Governor Stassen’s visit to Yugoslavia, tentatively set for October 21 and 22. Some time would be necessary to make proper preparation for talks. Tempo voiced hope talks could take place in Washington shortly after Governor’s visit here. He cited some of matters he hoped to discuss and Killen said US side, too, had several matters which we desired to place on table. He suggested possible desirability of preliminary discussions in Belgrade of some items US Government would like to explore in talks. Tempo reacted favorably.

5. Yugoslav Government officials were advised of importance that US action on wheat be kept strictly confidential until further advice from US Government. This was agreed.

6. At end of visit, Tempo again voiced his appreciation this action of US, saying it meant a great deal to his country.

Riddleberger

1. See Document 277.
2. Vukmanović-Tempo’s proposal is described in despatch 864 from Belgrade, June 24. (868.00/6–2454)
3. Reference is apparently to the proposal Kopcok made on Aug. 31 described in telegram 175 from Belgrade, Sept. 1. (750G.00/9–154)