314. Notes of the Secretary of State’s Staff Meeting, Department of State, Washington, October 24, 19571
[Here follows discussion of unrelated subjects.]
Aid to Yugoslavia
5. In reply to the Secretary’s question Mr. Dillon said he plans to see the Yugoslav Ambassador later in the day to discuss the question of economic aid. He understood that Mr. Murphy plans to confer with Mates in a few weeks regarding military aid aspects. He said he plans to tell the Ambassador that, in view of the still closer alignment of Yugoslav policy with the USSR and the resulting adverse congressional and public opinion in this country, the time is not opportune to start PL–480 negotiations. He also intends to say that the prospects of finding funds for the Majdanpek copper project are not good at present and the Yugoslav Government may wish to seek financing elsewhere. Mr. Murphy noted that certain carryover PL–480 funds in the amount of $7.5 million are still available to Yugoslavia and that the US will continue to supply military spare parts for Yugoslav land forces. Mr. Murphy also said Ambassador Riddleberger has been instructed to return to post immediately.
The Secretary stressed the need for a complete and thorough examination of US policy toward Yugoslavia, commenting that we should not take impulsive actions on this subject. He cited the large investment we have in the policy that Tito, because of his personal ambition and personal influence within the Soviet Bloc, could be the one to lead the satellite states to a greater degree of independence. He said that although the US should clearly indicate its displeasure at the Yugoslav recognition of the East German regime, we should also be careful not to push Tito into the arms of the USSR unless we are satisfied that he has surrendered this personal ambition.
In the light of the Secretary’s remarks, Mr. Dillon said he would inform Ambassador Mates that we find it necessary to restudy the timing of the proposed economic negotiations with Yugoslavia in view of the effect of the recent actions of that government on public and congressional opinion in the US; and, therefore, it will be impossible for economic aid negotiations to commence next week as had been planned because the study is taking longer than had been anticipated. The Secretary authorized Mr. Dillon to make remarks in this vein.
[Page 795]Action: Authorized Mr. Dillon to restudy the timing of the proposed economic negotiations with Yugoslavia in view of the effect of recent actions of that government on public and congressional opinion in US; and to inform the Yugoslav Ambassador that it will be impossible for the PL–480 negotiations to commence in the near future as previously planned.
[Here follows discussion of unrelated subjects.]
- Source: Department of State, Secretary’s Staff Meetings: Lot 63 D 75. Secret.↩