EE files, lot 67 D 238, “Miscellaneous”

No. 712
Memorandum by the Assistant Secretary of State for European Affairs (Merchant) to the Secretary of State1

top secret

Subject:

  • Memorandum to the President on Soviet-Yugoslav relations.

Attached is a draft memorandum to the President (Tab A) on the “normalization” of Soviet-Yugoslav relations and its implications for US programs vis-à-vis Yugoslavia which has been prepared in EUR at your request.2 The first three paragraphs of the memorandum dealing with developments in the “normalization” process and analyzing their import for US policies have been informally coordinated in substance with the Office of National Estimates, CIA, through R.

[Tab A]

Paper Prepared in the Department of State3

Memorandum for the President

Subject:

  • Effect of the “Normalization” of Soviet-Yugoslav Relations on US-Yugoslav Relations.

The intense and bitter Soviet-directed campaign from June 1948 through 1952 to subvert the Tito regime in Yugoslavia and to have it replaced by one subservient to the Cominform has been gradually dying out since mid-1953. This diminution of overt Soviet hostility has also been accomplished by a slow build-up of positive gestures pleasing to Yugoslavia from the Soviet orbit. These Soviet moves to curry Yugoslavia’s favor have taken place in many fields and their temp has accelerated markedly in recent months. The only positive Yugoslav counter-gesture, however, has been to allow some Soviet-orbit planes to overfly Yugoslavia to and from Albania.

[Page 1418]

To Tito the switch in Soviet tactics is welcome both as a sign that he has won out over Russia’s efforts to unseat him and also as a portent of more normal Yugoslav relations with neighboring states in the Soviet bloc, which could in time perhaps lead to a substantial easing of Yugoslavia’s difficult economic picture. Tito believes that the so-called “new look” in Soviet foreign policy has been forced on the Russian leaders by the compulsions of their domestic problems. In his view, this has very greatly lessened the danger of Soviet-sponsored aggression in Europe. It thus opens the way for further concrete steps to reduce East-West tension and for additional efforts to evolve new forms of collaboration among Western European countries to build a strong region acting more independently of the US than formerly.

Tito’s reactions appear partly sincere and partly an attempt to provide him with a little leverage in his dealings with the West. At the same time, he has explicitly stated that many important substantive issues from the past are still unsettled between Yugoslavia and the Soviet bloc, that relations cannot be restored to their pre-1948 status, that there is no sign that basic Soviet strategic objectives have changed, and that, in any event, he does not intend to sacrifice Yugoslavia’s ties to the West established since 1948.

Although we must recognize that the situation calls for continuous close watching, the foregoing developments to date do not justify questioning the US policy assumption that Yugoslavia will prove an element of strength in Western plans for the defense of Southern and Southeastern Europe. Continued US action along established lines would avoid any sign either that we have allowed Moscow’s unilateral gestures to stir up our suspicions of Tito and to cause us to reassess our policies towards Yugoslavia or that we are increasing our beneficence to Tito to purchase his future cooperation with the West. At the same time, it is important that following the Trieste settlement we pursue our planned programs vigorously lest any doubt enter Tito’s mind that firm ties to the West are essential for the security and prosperity of Yugoslavia.

In the military sphere, the settlement of the Trieste dispute has removed the chief obstacle to the further integration of Yugoslavia into Western defense planning. At present, active consideration in the US Government is being given to pleas for bringing the NATO into closer association with the Balkan Alliance, in which Yugoslavia is the only member not also belonging to NATO. This framework should permit a greater degree of working level cooperation in military planning for the area of Southern and Southeastern Europe.

In the economic sphere, discussions of US-Yugoslav economic relations are scheduled to start in Washington on November 12 between [Page 1419] Governor Stassen and Under Secretary Hoover on the one side and General Vukmanovic, Vice President of the Federal Executive Council, on the other. These talks will cover a wide range of Yugoslavia’s domestic and foreign economic problems including the imbalance in its foreign payments, its heavy debt repayment obligations, and current and future US assistance. Our chief talking point during the discussions will involve the possibility that we may be able to offer to ship the Yugoslavs sufficient quantities of wheat under the Agriculture Trade Development Act to meet the requirements which they are expected to set forth.

While the foregoing line of action should provide convincing evidence for Tito of the positive US interest in maintaining close relations with his regime, we hold, as a reserve trump card, an invitation to Tito to visit the US. As we know from abundant indications from the Yugoslavs, this, more than anything else, could cement official relations between the two countries for a substantial period. Because such a trip, following Tito’s journey to London in 1953, would mark his full acceptance into the councils of the Western world as an equal, it would also raise problems in the US due to the opposition of many Americans to according him any such recognition. Apart from the question of his personal safety thus engendered, his visit might well bring to a boil all of the relatively quiescent hostility felt in this country for a Communist dictator whose authoritarian and avowedly Communist regime is still repressing civil liberties and persecuting many clerics.

To justify the risks implicit in an invitation to Tito, very tangible advantages for the US would have to lie in prospect. Since in the present intermediate stage of US programs vis-à-vis Yugoslavia, when the outcome of military and economic discussions on future programs is not known, there are no top-level problems crying for solution, we do not face any urgency in reaching a decision on a Tito visit. However, as a move of lesser import to establish greater personal rapport between the two Governments, I am considering a visit to Belgrade as a follow-up to the highly successful visits of Governor Stassen and Mr. Murphy. In addition to discussing any major problems which might have come to the fore by the time of my visit, I would also be able to broach the subject of a trip by Tito to the US, if it then seems on balance to provide net advantages to the US.

  1. Drafted by Mark.
  2. Dulles’ memorandum of Oct. 28 to Merchant making this request is described in Document 710.
  3. Drafted by Mark. A handwritten notation on the source text by Roderic L. O’Connor indicates that the memorandum was not sent to the President, but that the Secretary talked to President Eisenhower along these lines on Nov. 16. No other record of Dulles’ conversation with Eisenhower, Nov. 16, has been found in Department of State files or Eisenhower Library.