768.5 MSP/9–2854

No. 704
Memorandum of Conversation, by the Director of the Office of Eastern European Affairs (Leverich)

secret

Subject:

  • Mr. Murphy’s recent trip to Europe.

Participants:

  • The Yugoslav Ambassador1
  • Mr. Murphy, GIM
  • Mr. Leverich, EE

By appointment made at his request the Yugoslav Ambassador called on Mr. Murphy this afternoon. He said that there were two matters upon which he wished to comment briefly, in the light of [Page 1407] Mr. Murphy’s recent trip to Belgrade and Rome, namely, wheat for Yugoslavia and Trieste.

With regard to the former, the Ambassador had been pleased to learn upon his return to Washington this morning from the UN that it would be only a matter of a few days before the 150,000 tons of wheat under the FY–55 aid program would begin to move and that his people had been successful in chartering ships to handle it. He was appreciative of the promptness with which we had acted to meet the acute problem facing Yugoslavia as a result of the short crop and now ventured to hope that there would be only a minimum delay in arranging for the 250,000 tons of wheat under ATDA (Agricultural Trade Development and Assistance Act) which Mr. Murphy had discussed in Belgrade. The Ambassador was sure we were familiar with the seasonal factors rendering urgent the early shipment of this wheat.

Mr. Murphy was gratified that shipment of the 150,000 tons was under way and said that we were pushing the matter of the 250,000 tons as hard as possible. He explained that there was bound to be some delay since the ATDA was a brand new law in which several agencies, including the Department, were involved, and consequently new procedures had to be worked out for its implementation. This of necessity would require a little time. He wished to assure the Ambassador, however, that we were well aware of the urgency and that the 250,000 tons would be forthcoming as rapidly as possible. He suggested that the Ambassador wire his government in this sense if he so desired. Mr. Murphy requested Mr. Leverich to telephone the Ambassador personally in New York, where he is presently serving as a member of the Yugoslav Delegation to the UN General Assembly, as soon as the procedures and timing for making the 250,000 tons of wheat available have been worked out.

As regards Trieste, the Ambassador voiced the fervent hope that at last the settlement of this very tough problem was actually at hand and that it would be finalized very soon. Mr. Murphy, commenting on the sincere, statesmanlike desire to conclude the Trieste matter which he had encountered during his trip on the part of both Yugoslav and Italian leaders, stated that as far as he could see all major obstacles to a settlement had now been eliminated and there remained only to wind up the tag ends of the negotiations in London. He hoped and believed that this could be done quickly, since announcement of a Trieste settlement would be particularly advantageous for both the Yugoslavs and the Italians at this time.

  1. Leo Mates.