Foreign Relations of the United States, 1958–1960, Eastern Europe; Finland; Greece; Turkey, Volume X, Part 2

133. Operations Coordinating Board Report⁰

Washington, August 6, 1958.

OPERATIONS PLAN FOR YUGOSLAVIA

I. Introduction

A. Special Operating Guidance

1. Short-Term Objectives

a. An independent Yugoslavia outside the Soviet bloc, capable of withstanding Soviet political and economic pressures, not actively engaged in furthering Soviet Communist imperialism, and with a potential for weakening the monolithic front and internal cohesiveness of the Soviet bloc.

b. Without jeopardizing the above objectives, reorientation of the Tito regime in the direction of political and economic liberalization and closer Yugoslav ties with the West in general and Western Europe in particular.

2. Long-Term Objective. Eventual fulfillment of the right of the Yugoslav people to live under a government of their own choosing, which maintains peaceful and stable relations with neighboring states, and participates fully in the Free World community.

3. U.S. Interest in Yugoslavia

a. The Tito–Kremlin break of 1948 and Yugoslavia’s remaining outside the Soviet bloc since then have served U.S. interests through the continued denial to the USSR of important strategic positions and other assets, and through the political effects, on both sides of the iron curtain, of a break in the “monolithic” Communist bloc.

b. U.S. policy in support of the maintenance of Yugoslavia’s independence constitutes an integral part of the broader U.S. policy which has as its objective the eventual attainment of complete national independence by all of the Soviet-dominated nations in Eastern Europe. The example or Yugoslavia, which has successfully maintained its independence of Soviet domination, stands as a constant reminder to the dominated regimes and serves as a pressure point both on the leaders of these regimes and on the leadership of the USSR. It is in the U.S. interest to exploit Yugoslavia’s role in Eastern Europe, insofar as it tends to advance U.S. objectives.

c. The Yugoslav Government and people should be encouraged to continue to stand firmly for maintenance of Yugoslavia’s independence in the face of Soviet pressures and blandishments.

d. The United States should avoid actions which, on the one hand, could be interpreted as unreserved endorsement of the Tito regime, or which, on the other hand, would encourage attempts to overthrow that regime by violence.

4. Level and Purpose of U.S. Aid. The United States will continue to furnish economic and technical assistance to Yugoslavia in the minimum amounts needed for either or both of the following primary purposes:

a. To encourage Yugoslavia to pursue policies which will contribute to the attainment of U.S. objectives.

b. To assist Yugoslavia in avoiding undue economic dependence on the Soviet bloc.

To the extent possible without prejudicing the above primary purposes, such assistance should also attempt to influence Yugoslavia to give greater play to free economic forces within Yugoslavia.

5. Closer Cultural Ties. Closer cultural ties should be developed between Yugoslavia and the nations of the Free World, particularly those of Western Europe.

6. Yugoslav Relations with Greece and Turkey. Although the Balkan Pact must be recognized as dormant, the development of closer Yugoslav relations with Greece and Turkey in economic, cultural, and related fields should be encouraged as a means of weakening Soviet power in the Balkans.

7. Controls on Exports. Yugoslavia is to be considered on the same basis as free European nations in evaluating Yugoslav requests for U.S. export licenses so long as Yugoslavia’s export control practices are generally consistent with the objectives of the multilateral trade controls imposed against the Soviet bloc.

8. Military Training and Supplies. The training of limited numbers of Yugoslav military personnel on a grant or reimbursable basis as appropriate is permitted. The purchase by the Yugoslavs of such U.S. military equipment and supplies as may be needed to avoid dependence on the Soviet bloc is also permitted, as long as satisfactory U.S.-Yugoslav political relations continue to exist.

9. Peaceful Uses of Atomic Energy. Opportunities should be utilized for cooperation in the unclassified, peaceful uses of atomic energy, including the training in the United States of Yugoslav scientists in non-sensitive fields.

10. Information Activities. Information activities should be directed toward building Yugoslavia’s will to combat Soviet encroachment and to encouraging ties with the West, while at the same time (a) avoiding endorsement of the internal policies of the Tito regime and taking account of the Yugoslav people’s hope for eventual attainment of greater freedom, and (b) avoiding antagonizing the Tito regime to the point of jeopardizing realization of our immediate objectives. Information activities should emphasize the peaceful and constructive nature of U.S. foreign policies and show them to be compatible with the best interests of the people of Yugoslavia; should acquaint the Yugoslavs with the facts of U.S. economic assistance in terms of a stronger Yugoslav economy; and to the extent possible and without antagonizing the regime, they should encourage liberalization of Yugoslav internal political and economic arrangements, and encourage the people in their pro-Western orientation. Audiences, roughly in the order of their importance, are the following: (1) government and party officials, press and radio (2) educators, university students and youth in general; (3) cultural leaders; (4) military; (5) professionals; and (6) industrial workers and peasants.

11. Evaluating Yugoslav Actions and Statements. In dealing with the Yugoslavs and evaluating their actions and statements we should realize that the close relationships into which the Yugoslavs may be led partly by their attempts to influence Soviet bloc leaders are one of the factors inducing them to make statements of which the U.S. cannot approve. We should not allow irritations caused thereby to affect our judgment unduly, but should evaluate Yugoslav statements within the context of Yugoslavia’s ideological and geographic position. It is likely that considerations of ideology and opportunism will in any event lead the Yugoslavs to adopt some positions inimical to U.S. interests, but we should recognize that, if they are to exert any significant influence in the Soviet world, they may be obliged to adopt these positions.

12. Utilization of U.S.-Owned Yugoslav Dinars Reserved for U.S. Use. A continued effort should be made to find effective uses for the dinar balances reserved for U.S. use, keeping in mind the following considerations:

a. With the exception of indeterminate amounts for market development, purchase of strategic materials, and education, the “U.S. use” dinars are subject to Section 1415 of the Supplemental Appropriation Act of 1953,¹ which provides that foreign currencies owned by the United States may be used by Federal agencies for any purpose for which appropriations have been made, but that the equivalent dollars must be returned to the Treasury from the agency appropriation; however, in case of local currencies generated by PL 480 programs, the President is authorized to waive the requirements of Section 1415.

b. Relative to the amounts held for U.S. use, normal U.S. requirements are few. There is at present comparatively little that we desire to obtain from Yugoslavia. Furthermore, even when locally produced goods could be used by the United States directly or in its aid programs for other countries, the understanding reached with the Yugoslavs that we will take their balance of payments position into account in using our dinars virtually precludes the purchase of goods for export.

B. Selected U.S. Arrangements With or Pertaining to Yugoslavia

13. U.S. Involvements Which May Imply Military Security Guarantees

None.

14. U.S. Commitments for Funds, Goods, or Services

• PL 480 Agreement of December 27, 1957—$7.5 million.²
• PL 480 Agreement of February 3, 1958—$62.5 million.³
• PL 480 Agreement of June 26, 1958—$3 million.⁴
• Mutual Security Program—FY 1958 (special assistance—$10 million; technical cooperation—$1.75 million).⁵

15. Other Arrangements

Information Media Guaranty Agreement, signed August 15, 1952.⁶

II. Current and Projected Programs and Courses of Action

Note: Individual action items when extracted from this Plan may be downgraded to the appropriate security classification.

A. Political

16. Encourage the Yugoslav Government and people to continue to stand firmly for the maintenance of Yugoslavia’s independence in the face of Soviet pressures and blandishments through appropriate programs and actions.

Assigned to: State

Supporting: All interested agencies

Target Date: Continuing

17. Express respect for and understanding of Yugoslav positions which reflect an independent point of view.

Assigned to: State, USIA

Target Date: Continuing

18. Seek to establish and expand direct contacts with high-level Yugoslav officials in order to increase their orientation toward the West.

Assigned to: State

Supporting: All interested agencies

Target Date: Continuing

19. Consider extending invitations to high-ranking Yugoslav officials to visit the United States, particularly when such invitations can be associated with visits, or proposed visits, to Yugoslavia by United States officials of comparable rank.

Assigned to: State

Supporting: All interested agencies

Target Date: Continuing

20. Exploit as appropriate the contrast between Soviet efforts to subjugate Yugoslavia as opposed to U.S. support of Yugoslavia’s independence.

Assigned to: State, USIA

Target Date: Continuing

21. While avoiding measures which would unduly increase Yugoslav influence in uncommitted countries, utilize Yugoslav experience with the USSR which serves to demonstrate the nature of Soviet imperialism.

Assigned to: State, USIA

Target Date: Continuing

22. Encourage Western European countries to adopt policies parallel to those of the United States with respect to Yugoslavia.

Assigned to: State, USIA

Target Date: Continuing

23. As appropriate opportunities arise, encourage the development of Yugoslav attitudes and policies which reinforce our efforts to achieve U.S. policy objectives toward the countries of the Communist bloc.

Assigned to: State

Target Date: As stated

24. While recognizing that the Balkan Pact is dormant, encourage the continuing existence of the Tripartite Balkan Secretariat.

Assigned to: State

Target Date: Continuing

25. Encourage the resolution of differences between Yugoslavia and Italy and between Yugoslavia and Austria with a view to promoting mutual understanding and improved relations in political, economic and related fields of activity.

Assigned to: State

Target Date: Continuing

26. Encourage as appropriate Yugoslavia and Free World countries to regularize emigration from Yugoslavia.

Assigned to: State

Target Date: Continuing

27. Continue to resist attempts by East European émigré leaders to associate Yugoslav exile groups with the Free Europe Committee and the Assembly of Captive European Nations.

Assigned to: State

Target Date: Continuing

28. Continue to seek procedures, consistent with internal security, for expediting the issuance of non-immigrant visas to bona fide representatives of Yugoslav industrial and trading enterprises.

Assigned to: State

Target Date: Continuing

29. Conduct U.S. naval visits to Yugoslav ports, including one formal visit annually with calls in Belgrade by ranking U.S. flag officers. Be prepared to extend invitations for reciprocal visits by Yugoslav naval units to U.S. ports when appropriate.

Assigned to: State, Defense

Target Date: As stated

B. Economic

30. Plan to continue economic and technical assistance, both of which are aimed at helping avoid undue Yugoslav dependence on the Soviet bloc, expanding the impact of Western ideas and methods in Yugoslavia, encouraging liberal tendencies within the Yugoslav economy and developing closer Yugoslav ties with the Free World. (For financial details, see attached pipeline analysis.)

Assigned to:ICA

Supporting: State

Target Date: Continuing

31. Plan to continue Title I PL 480 assistance to Yugoslavia bearing in mind the objective of assisting Yugoslavia to avoid undue economic dependence on the Soviet bloc.

Assigned to: Agriculture

Supporting: State, ICA

Target Date: Continuing

32. Continue the Title III PL 480 program in support of the activities of American voluntary organizations in Yugoslavia.

Assigned to:ICA

Supporting: State, Agriculture

Target Date: Continuing

33. Consider Yugoslavia’s request for assistance from the Development Loan Fund in accordance with normal DLF criteria, and the criteria set forth in paragraph 4 of this paper, giving especial emphasis to those projects which will serve to tie Yugoslavia more closely to the economy of Western Europe.

Assigned to: State

Supporting:ICA, Treasury

Target Date: September 30, 1958

34. Encourage expanded Yugoslav participation in the work of the Organization for European Economic Cooperation.

Assigned to: State

Supporting:ICA

Target Date: Continuing

35. Encourage the continuing expansion of U.S.-Yugoslav trade.

Assigned to: Commerce

Supporting: State, ICA

Target Date: Continuing

36. Encourage the further development of tourism between the United States and Yugoslavia and between Western European countries and Yugoslavia.

Assigned to:ICA, Commerce

Supporting: State, USIA

Target Date: Continuing

37. Consider Yugoslavia on the same basis as free European nations in evaluating Yugoslav requests for U.S. export licenses so long as Yugoslavia’s export control practices are generally consistent with the objectives of the multilateral trade controls imposed against the Soviet bloc.

Assigned to: Commerce

Supporting: State

Target Date: Continuing

38. Take all appropriate steps to facilitate the use of U.S.-owned Yugoslav currency earmarked for economic development projects in Yugoslavia.

Assigned to:ICA

Supporting: State

Target Date: Continuing

39. Continue to explore means for more rapid utilization of U.S.-owned Yugoslav currency reserved for U.S. purposes.

Assigned to: State, ICA, Treasury

Supporting: All interested agencies

Target Date: Continuing

40. Utilize opportunities for cooperation in the unclassified, peaceful uses of atomic energy, including the training in the United States of Yugoslav scientists in non-sensitive fields.

Assigned to:AEC, State

Supporting:ICA

Target Date: Continuing

41. Give those U.S. departments and agencies with export control responsibilities discretionary authority as regards the licensing for export to Yugoslavia of reasonable quantities of materials and equipment obviously intended for:

a. Basic research and instruction in the atomic energy field (including cooperation under any eventually concluded agreement for U.S. assistance in furnishing Yugoslavia with a research reactor and fissionable materials therefor, and related equipment).

b. Source material (e.g., uranium) exploration.

c. Medical or normal industrial use.

Assigned to: Commerce, AEC

Supporting: State

Target Date: Continuing

C. Military

42. Continue to permit the training of limited numbers of Yugoslav military personnel on a grant or reimbursable basis as appropriate.

Assigned to: Defense

Supporting: State

Target Date: Continuing

43. Continue to permit the Yugoslavs to purchase such U.S. military equipment and supplies as may be needed to avoid dependence on the Soviet bloc, as long as satisfactory U.S.-Yugoslav political relations continue to exist.

Assigned to: Defense

Supporting: State

Target Date: Continuing

44. Give consideration to exchange visits of high-ranking U.S. and Yugoslav military leaders.

Assigned to: State, Defense

Target Date: Continuing

D. Information and Cultural

45. Provide appropriate information and public relations support for political, economic, and military policies and programs set forth elsewhere in this Operations Plan.

Assigned to:USIA

Target Date: Continuing

46. Encourage visits to Yugoslavia by prominent Americans including both high-ranking Government officials and individuals well known in the fields of art, science, professions, etc.

Assigned to: State

Target Date: Continuing

47. Strengthen and expand exchange of persons programs with Yugoslavia by: (a) giving emphasis to educational exchange programs (students, professors and educators on full academic year or school term programs); (b) negotiating appropriate arrangements with the Yugoslav Government designed to facilitate use of local currencies for PL 402 purposes if, as anticipated, Congress authorizes such use; (c) to the extent funds are available, expanding present PL 402 “leader grant” programs (for educators, cultural leaders, journalists, etc.); and (d) continuing active consideration of the possibility of initiating the Fulbright Agreement with Yugoslavia. (Note: There is as yet no officially sponsored educational exchange program such as is called for in (a) above. Funds have been obligated to bring five Yugoslavs to this country under the “leader grant” program for FY 1958, referred to in (c) above. It is hoped to bring 18 additional Yugoslavs to the United States under the “leader grant” program for FY 1959.)

Assigned to: State

Supporting:USIA

Target Date: Continuing

48. Encourage the development of private exchange programs between the United States and Yugoslavia, such as those under the auspices of the Ford Foundation.

Assigned to: State

Supporting:USIA

Target Date: Continuing

49. Utilize cultural presentations under the President’s Special International Program, and otherwise, to depict American cultural achievements and mutuality of U.S.-Yugoslav cultural interests.

Assigned to: State

Supporting:USIA

Target Date: Continuing

50. Maintain normal field program of information centers at Belgrade, Zagreb and Novi Sad; daily wireless file; one weekly and three monthly periodicals; documentary films, publicity of U.S. economic assistance and technical cooperation programs; exhibits and English teaching.

Assigned to:USIA

Target Date: Continuing

51. Maintain Informational Media Guaranty Program to stimulate sale of American publications and distribution of American motion pictures.

Assigned to:USIA

Supporting: State

Target Date: Continuing

52. Continue VOA shortwave broadcasting of 2-1/2 hours daily in Serbo-Croatian and Slovenian, including 1-1/4 hours of original broadcasts and 1 hour of repeat broadcasts; continue VOA cross-reporting (to the Soviet bloc) of Yugoslav developments.

Assigned to:USIA

Target Date: Continuing

53. When appropriate, seek Yugoslav approval for an information center at Sarajevo.

Assigned to:USIA

Supporting: State

Target Date: As stated

54. Participate in the Zagreb and Belgrade fairs.

Assigned to: Commerce

Supporting: State, USIA, ICA

Target Date: Continuing

Note: The following NIE’s are applicable to Yugoslavia:

• NIE 31–57—Yugoslavia’s Policies and Prospects—11 June 1957⁷
• SNIE 31/1–57—Yugoslavia’s Internal Position—November 1957⁸

0. Source: Department of State, OCB Files: Lot 62 D 430, Yugoslavia. Secret. A title page, a memorandum noting OCB concurrence, a statement of purpose and use, and two appendices outlining expenditures under the Mutual Security and P.L. 480 programs are not printed. In the covering memorandum, Roy Melbourne, Acting Executive Officer, noted that the Board revised and concurred in the report at its July 30 meeting. No copy of the draft report presented to the Board was found. Minutes of the Board meeting are ibid., Minutes.
1. For text, see 67 Stat. 8.
2. For text, see 8 UST 2489.
3. For text, see 9 UST 256.
4. For text, see 9 UST 949.
5. For text of this agreement, which entered into force on April 5, 1958, see 9 UST 1493.
6. For text, see 3 UST 5052.
7. For text, see Foreign Relations, 1955–1957, vol. XXVI, pp. 777–778.
8. For text, see ibid., pp. 802–803.