136. Telegram From the Embassy in Yugoslavia to the Department of State0

441. Paris pass CINCEUR and DEFREPNAMA. United States-Yugoslav military aid agreement termination talks resumed at Foreign Office [Page 364] October 22. In brief session at which Yugoslavs represented by Rukavina and Bruner, Yugoslavs agreed to United States draft note on purchase military equipment (Department CA–1093)1 without change and to general form and approach reflected United States draft note on military aid termination. With respect latter, however, they questioned paragraphs 2 (D) re obligation furnish information Embassy, 2 (E) re surplus disposal and 4 re OSP memo understanding.2

According Bruner (who was spokesman his side throughout 60-minute session) paragraph 2 (D) appears unnecessary in view Yugoslav willingness assume obligations contained immediately preceding paragraphs. Inclusion, moreover, implies continuing United States-Yugoslav military relationship which Yugoslavs specifically seek avoid. We pointed out 2 (D) considered necessary in connection implementation other provisions this section and represented modest and reasonable requirement in circumstances. Certainly, for example, we should not be precluded from asking information on reports which may reach us concerning Yugoslav shipments United States arms. After further discussion this point we agreed, however, refer Yugoslav views Washington for consideration.

Re 2 (E) Bruner professed inability understand necessity spell this requirement out in such detail. Would it not be sufficient merely state “scrap” would be subject same obligations paragraphs 2(A) through (C)? We cited legislative requirement Section 511 (C)3 which reflected in 1955 United States-Yugoslav disposal agreement, noting especially that agreement contains no termination provision. We agreed consider counterproposal this paragraph which Bruner undertook draft but expressed doubt anything less than language contained our draft would be acceptable.

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Bruner commented re OSP memo that while Yugoslavs find proposed paragraph 4 acceptable they object various references “mutual defense” in remaining document. He indicated, however, retention memo would be acceptable if in addition amendments provided in draft paragraph 4 (as revised Deptel 292)4 first numbered paragraph OSP memo deleted. After discussion this point and in light authorization contained Deptel 226 we agreed to deletion proposed.

As reflected previous discussions this general subject Yugoslavs appear motivated primarily by political considerations and would obviously prefer wipe slate clean. This continues be shown in Bruner comments on draft 2(D) and (E) and OSP. Realistically, however, they apparently have come to appreciate fact their goal not attainable if they also hope obtain needed spares and United States military equipment. Debate within Yugoslav Government on this point may explain in part nearly three month delay in responding United States drafts (CA–1093) which confronted them with hard facts especially manifested in proposed purchase agreement. We can expect further Yugoslav resistance on information requirement and surplus disposal question but in view general acceptance all other points appears to us termination agreement now in sight. Our specific comments and suggestions on paragraph 2(D) and 2(E) follow by separate telegram.

  1. Source: Department of State, Central Files, 768.5–MSP/10–2358. Confidential. Repeated to Zagreb, Sarajevo, and Paris.
  2. CA–1093, August 1, provided negotiating instructions for the termination of the military assistance agreement and for an agreement for the resumption of military sales to Yugoslavia together with U.S. drafts of the texts of such agreements. (Ibid., 768.5–MSP/8–158)
  3. Paragraph 2 spelled out Yugoslav obligations under the agreement:
    to use the military equipment for strengthening Yugoslav defenses;
    not to transfer the equipment without U.S. permission;
    to maintain agreed upon security;
    to furnish information to the U.S. Embassy as requested;
    to notify the Embassy if the equipment (including salvage or scrap) is no longer needed so it may be disposed of as mutually agreed.

    Paragraph 4 made editorial changes in the October 18, 1954, Memorandum Relating to Offshore Procurement.

  4. Of the Mutual Security Act of 1954, P.L. 665, enacted August 26, 1954. For text, see 68 Stat. 832.
  5. Telegram 292, October 16, provided substitute language for paragraphs 6 and 12 of the draft termination agreement. (Department of State, Central Files, 768.5–MSP/9–2958)