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

411.6831/12–2254: Telegram

No. 718
The Ambassador in Yugoslavia (Riddleberger) to the Department of State

confidential

Belgrade, December 22, 1954—11 a.m.

485. Reference: Department instruction A–88.¹ This is joint Embassy/FOA cable.

1. Our cable 449² sent following initial submission draft agreement to Kopcok, who raised only minor questions of language. We therefore assumed agreement quickly attainable.

2. Two days thereafter Kopcok reported vigorous Tempo reaction to sales principle, allegedly based on use of word “grant” in Stassen statement of November 22.³ Tempo has made wild assertions about being “deceived” and “a denial” of US assurances given in Washington. Reaction of US representatives has, we fear, exceeded bounds of diplomatic language and following fireworks, discussions have resumed more normal course.

3. We have sought to develop language reflecting statements of Governor Stassen as accurately as possible, at same time maintaining very clearly basic concepts of Title I and legislative intent. We have repeatedly cited record of discussions, especially those of November 19⁴ and statements by Tempo and Mates to illustrate clarity of Yugoslav Government understanding at that time.

4. Yugoslav Government now considering our revised draft proposal, copies of which forwarded in letters Kleine and Colbert December 20.⁵

5. Killen expecting to see Tempo again next day or two.

6. We believe Tempo, in short session with Tito, immediately on return from states and on day Tito’s departure for India, gave less than full account of Washington talks and now finds himself in difficulty. Simultaneously wheat crisis approaching Yugoslav Government door step.

7. Will keep you advised.

Riddleberger

1. Instruction A–88, Dec. 2, authorized Riddleberger to negotiate an agreement with Yugoslavia covering the sale of wheat and cotton under Title I of P.L. 480. The agreement was to cover 425,000 tons of wheat and such cotton up to $10 million worth which the Yugoslav Government might wish to purchase for dinars. A copy of the draft agreement, concurred in by the Departments of Defense and Agriculture and the Foreign Operations Administration, was attached. (411.6831/12–254) On Dec. 6, a copy of the draft agreement was given to an official of the Yugoslav Embassy in Washington, who said that his government would accept the U.S. offer to sell $10 million worth of cotton. A memorandum of this conversation is in file 411.6831/12–654.
2. Telegram 449, Dec. 8, reported that Riddleberger had submitted the draft L/C agreement to the Foreign Office and that he anticipated no difficulty in obtaining approval. (411.6831/12–854)
3. See Usfoto 115 to Belgrade, supra.
4. The Nov. 19 meeting was described in telegram 498 to Belgrade, Nov. 20. (033.6811/11–2054)
5. Neither the letters nor the revised draft proposal has been found in Department of State files.