312. Telegram From the Department of State to the Embassy in Yugoslavia1
418. In light Yugoslav recognition East Germany which virtually completes total alignment Yugoslav positions on major international issues with Soviet Union we have concluded some adjustment aid programs desirable. Department has therefore decided on course action involving informing Yugoslavs 1) jet plane deliveries will be suspended effective November, 2) negotiation PL 480 and MSA programs for FY 1958 considered inopportune at this time, 3) US participation Majdanpek project considered infeasible at this time.
Military items other than jets will be delivered as programmed. Have not determined whether suspend negotiation supplemental PL 480 agreement as well as FY 1958 agreement.
Believe manner adjustment carried out of utmost importance. Wish avoid abrupt cessation all aid which especially if accompanied by publicity may impair our freedom of action in future not only respecting Yugoslavia but other Eastern European countries.
Intend therefore when informing Yugoslavs make clear we have not interpreted their recent actions as relinquishment their independence and that we respect their right as sovereign state pursue course action they deem in their best interest. US desires maintain good relations with Yugoslavia and believes basis for mutual cooperation exists. However, as we have pointed out on three recent occasions, choice they appear to have made in aligning their policies with USSR makes it difficult for us to continue support aid program for Yugoslavia [Page 793] before Congress and tends undermine basis for justifying such program.
Timing above action under consideration.
- Source: Department of State, Central Files, 768.5–MSP/10–2257. Secret. The proposals contained in this telegram were discussed at a White House Staff Meeting on October 24. The minutes of the discussion were initialed by the President. (Staff Notes No. 223; Eisenhower Library, Whitman File)↩