158. Operations Coordinating Board Report0
OPERATIONS PLAN FOR YUGOSLAVIA
I. Objectives and General Policy Directives
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.
U.S. Interest in Yugoslavia
3. The Tito–Kremlin break of 1948 and Yugoslavia’s position 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 effects, both within and outside the Soviet bloc, of Yugoslav political independence and economic progress in the face of Soviet pressure.
4. 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 of Yugoslavia, which has successfully maintained its independence of Soviet domination, stands as a constant reminder to the [Page 417] 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 take advantage of Yugoslavia’s potential influence in Eastern Europe and in uncommitted and newly-emerging countries, insofar as such influence tends to advance U.S. objectives.
U.S. Economic Assistance to Yugoslavia
5. 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.
U.S. Attitude Toward Tito Regime
6. 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.
7. We should expect that, as a neutral nation, and as a Communist country, Yugoslavia occasionally may undertake actions and make statements which the United States cannot approve. We should not, however, be unduly irritated at this, or allow it to influence our judgment, as long as such actions do not undermine Yugoslav freedom of action vis-à-vis the bloc or otherwise jeopardize major U.S. foreign policy objectives. Moreover, we should evaluate Yugoslav statements within the context of Yugoslavia’s ideological and geographic positions.
II. Operational Guidance
Support for Yugoslav Independence
8. Yugoslavia continues to demonstrate the will to maintain its independence outside the Soviet bloc, despite Soviet pressures and blandishments. Its economy is developing favorably and its internal political situation appears stable. Nonetheless, as a small, still underdeveloped country, bordered on three sides by Soviet bloc countries, and viewed as a threat to bloc unity by Sino-Soviet leaders, it will continue to need economic and political support from the United States to help assure its independence.
[Page 418]Guidance
9. Make entirely clear, on a continuing basis, unflagging U.S. interest in Yugoslav independence through such means as high level visits in both directions, the provision of economic assistance, and effective U.S. diplomatic representation in Belgrade.
10. Continue to encourage Yugoslav trade with the United States and with other countries of the Free World and to provide such economic assistance as may be necessary in order to enable Yugoslavia to avoid undue economic dependence on the Soviet bloc.
11. Continue to permit the Yugoslavs to purchase 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, also to train limited numbers of Yugoslav military personnel on grant or reimbursable basis.
12. [11 lines of source text and footnote (3 lines of source text) not declassified]
Economic Assistance
13. As noted in paragraph 8, while Yugoslavia’s economic position has improved, it continues to need U.S. economic assistance and cooperation. Primarily this assistance is intended to strengthen the basis of Yugoslavia’s independence, but it is also intended to contribute to a level of economic progress in Yugoslavia sufficient to illustrate in pragmatic terms to the other countries of Eastern Europe the benefits of Yugoslavia’s independent policy and associations with the West.
Guidance
14. Consider Yugoslavia’s requests for assistance from U.S. lending institutions in accordance with relevant U.S. loan policy and the criteria set forth in paragraph 5 of this paper, giving special emphasis to those projects which will serve to tie Yugoslavia more closely to the economy of the Western Community.
15. Continue Title I PL 480 sales to Yugoslavia.
16. Continue the Title III PL 480 program in support of the American voluntary organizations in Yugoslavia.
17. Continue a Technical Cooperation Program1 for Yugoslavia since this not only will ultimately strengthen the Yugoslav economy but also is a most effective means of exposing influential Yugoslavs to Western equipment and technology and to the liberalizing influence of close working contact with Western colleagues.
[Page 419]Utilization of Yugoslavia’s Potential as a Divisive Influence on Soviet-Bloc Solidarity and as a Counter to Bloc Influence in Uncommitted Countries
18. The Soviet Union and Communist China have renewed their efforts to nullify the influence of Yugoslav “revisionism” within the bloc since the turbulent events in Poland and Hungary in 1956 and they have undoubtedly met with considerable success. They also have attempted to counter the influence of Yugoslavia in the uncommitted and newly emerging nations. It is in the U.S. interest that Yugoslavia continue to exert a divisive ideological influence on the bloc and afford the uncommitted countries beneficial advice on the dangers of becoming overly reliant on the Soviet Union. At the same time, Yugoslavia’s influence in the uncommitted areas poses certain problems for the United States since Yugoslavia represents a Communist economic and political system, albeit a revisionist one.
Guidance
19. Take advantage of appropriate opportunities discreetly to direct attention to Yugoslavia’s successful struggle for independence and to the beneficial results which have accrued from it.
20. Take advantage of appropriate opportunities to encourage the Government of Yugoslavia to influence adjoining Soviet-dominated countries to develop a more independent position vis-à-vis the Soviet Union.
21. Facilitate Yugoslavia’s efforts to remain in the public eye by such steps as high level visits to and from Yugoslavia and occasional support for Yugoslav candidates for prestige offices in international organizations.
22. Avoid a hostile or negative attitude toward Yugoslav representatives in Latin America and the uncommitted and newly emerging nations of Asia and Africa. Conduct ourselves toward such representatives in such a manner as to distinguish clearly between them and Soviet bloc representatives and to indicate that Yugoslavia, as an independent country, enjoys the respect and support of the United States. The United States should be prepared to accept a measure of Yugoslav economic and political influence in these areas, while remaining alert for any indication that Yugoslavia is actively encouraging the adoption of internal policies of a Communist orientation, particularly in Latin America, or systematically undermining U.S. interests in these areas.
Encouragement of Liberalization in Yugoslavia
23. Since Yugoslavia left the Soviet bloc many of the harsher aspects of Communist control have disappeared and a decentralized economic system has been established in which there are elements of a competitive-type market economy. Yugoslavia remains a one-party Communist [Page 420] state, however, and continuous efforts are made to orient the people towards a Marxist ideology. Thus the United States is faced with the problem of seeking simultaneously to establish and maintain a smooth and friendly working relationship with the present Yugoslav Government and to bring about a gradual liberalization in the Yugoslav economic and political systems.
Guidance
24. Continue to seek procedures, consistent with U.S. internal security for expediting the issuance of non-immigrant visas to Yugoslav nationals, including representatives of Yugoslav industrial and trading enterprises, whose travel to the United States will serve United States objectives in Yugoslavia.
25. 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.
26. Encourage the development of closer cultural ties between Yugoslavia and the nations of the Free World, particularly those of Western Europe.
27. Continue current exchange programs with Yugoslavia and endeavor to negotiate a Fulbright Agreement with Yugoslavia and appropriate arrangements with the Yugoslav Government to facilitate the use of local currencies for PL 4022 purposes to the extent such use is authorized by the Congress.
28. Cooperate with private organizations in the development and implementation of non-governmental exchange programs between the United States and Yugoslavia such as that now being conducted by the Ford Foundation.
29. Utilize cultural presentations under the President’s Special International Program,3 and otherwise, to depict American cultural achievements and thus bring to the Yugoslav people a clearer concept of the range of cultural development in the non-Communist West. In this connection, be prepared to facilitate the presentation in the United States of Yugoslav cultural attractions.
30. As noted in paragraph 17, continue a Technical Cooperation Program in Yugoslavia.
31. Continue an active but circumspect USIS program in Yugoslavia. Information activities should emphasize the peaceful and constructive [Page 421] 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 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.
32. Continue VOA shortwave broadcasts daily in Serbo-Croatian and Slovenian.
33. Maintain Informational Media Guaranty Program4 to simulate sale of American publications and distribution of American motion pictures and television films.
34. As appropriate, encourage the Free Europe Committee5 to continue to resist any attempts by Eastern European émigré leaders to associate Yugoslav exile groups with the Committee or the Assembly of Captive European Nations.6
Closer Integration of Yugoslavia in the Western Economic and Political Community
35. The strengthening of Yugoslavia’s ties with the West is an effective means of influencing its future orientation and of lessening its susceptibility to Soviet pressure.
Guidance
36. Encourage the continuing expansion of U.S.-Yugoslav commercial relations, including support of U.S. business in promotion of U.S. exports to Yugoslavia.
37. Encourage the further development of tourism between the United States and Yugoslavia and between Western European countries and Yugoslavia.
38. Continue U.S. participation in Yugoslav trade fairs and provide U.S. trade missions as appropriate.
39. Encourage expanded Yugoslav participation in the work of the GATT and such international economic organizations as OEEC, or its successor organization, and the introduction of such economic reforms in Yugoslavia as may be necessary to facilitate such participation. The question of supporting full Yugoslav participation in the GATT or [Page 422] OEEC should be decided in the light of the circumstances existing at the time Yugoslavia applies for such status.
40. 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.
41. Utilize the opportunities afforded by the recent understanding reached between Yugoslavia and the United States for cooperation in the peaceful uses of atomic energy7 to further contacts between Yugoslav and American scientists, to bring young Yugoslav scientists to the U.S. for training in non-sensitive fields and to export to Yugoslavia reasonable quantities of materials and equipment needed for basic research and instruction in the atomic energy field, for source material exploration and for medical and normal industrial and agricultural purposes.
42. While recognizing that the Balkan Pact is dormant, encourage the continuing existence of the Tripartite Balkan Secretariat and the development of close Yugoslav relations with Greece and Turkey in economic, cultural and related fields.
43. 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.
44. In general, encourage Western European countries to adopt policies parallel to those of the United States with respect to Yugoslavia.
Utilization of US-Owned Local Currency in Yugoslavia
45. The major portion of U.S.-owned dinar holdings is earmarked for economic development and social projects in Yugoslavia and its utilization no longer poses a serious problem. There are, however, large balances of dinars reserved for U.S. uses for which normal U.S. requirements are relatively limited. Moreover, the understanding reached with the Yugoslavs that we will take their balance of payments position into account in using these dinars is a major obstacle to the purchase of goods for export.
Guidance
46. A continued effort should be made to find effective uses for the dinar balances reserved for U.S. uses keeping in mind, however, current [Page 423] policy of the Bureau of the Budget, which subjects all “U.S.-use” local currencies to the appropriation process.
U.S. Personnel
47. The acceptance of the presence of official U.S. personnel on foreign soil directly affects our capability to achieve our national security objectives. To this end, programs should be developed and improved to encourage and strengthen the natural inclination of the individual American to be a good representative of his country and to promote conduct and attitudes conducive to good will and mutual understanding.
Guidance
48. The OCB has developed a comprehensive document which serves as a guidance for senior U.S. representatives overseas:
“Report on U.S. Personnel Overseas (July 1959), including a Statement of National Policy and a Presidential Letter as well as a reprint of the Conclusions and Recommendations of a 1958 report.”8
49. Hold the number of U.S. official personnel in Yugoslavia to a strict minimum consistent with sound implementation of essential programs.
Note: The following NIE’s are applicable to Yugoslavia:
- NIE 31–57 Yugoslavia’s Policies and Prospects—11 June 1957.9
- NIE 11–4–59 Main Trends in Soviet Capabilities and Policies, 1959–1964—9 February 1960 (See para. 108).
- NIE 12–59 Political Stability in the European Satellites—11 August 1959 (See para. 26).
- NIE 12.6–58 The Outlook in Poland—16 September 1958 (See paragraphs 51 and 52).10
- 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 three appendices (a list of selected U.S. arrangements with Yugoslavia, a financial and military aid analysis, and a list of P.L. 480 agreements and ICA-administered programs) are not printed. The report was approved by the OCB at its July 6 meeting. Minutes of the OCB meeting are Ibid., Preliminary Notes.↩
- For text of the economic cooperation agreement signed in Belgrade January 8, 1952, see 3 UST 1.↩
- For text of P.L. 80–402, U.S. Information and Educational Exchange Act of 1948, see 62 Stat. 6.↩
- The International Cultural Exchange and Trade Fair Participation Act of 1956, approved August 1, 1956 (P.L. 84–860). For text, see 70 Stat. 777. The OCB was responsible for the administration of the program.↩
- For text of the Information Media Guarantee Agreement, see 3 UST 5052.↩
- Created in 1949, this organization engaged in studies of conditions in the Communist-ruled nations of Eastern Europe.↩
- Established in September 1954, this body, made up of exile leaders and organizations from Albania, Estonia, Czechoslovakia, Lithuania, Poland, Bulgaria, Hungary, Latvia, and Romania, met annually to discuss the problems of their nations and encourage anti-Communist activities.↩
- Five officials representing the Yugoslav Federal Commission for Nuclear Energy visited the United States February 28–April 1 for a tour of U.S. nuclear installations and discussions with U.S. officials regarding bilateral cooperation in peaceful employment of nuclear energy. Documentation on the Yugoslav nuclear program is in Department of State, Central File 611.6845.↩
- This report commented on legal, personal, and community relations problems facing U.S. military and civilian employees serving abroad. (Ibid., OCB Files: Lot 62 D 430, Overseas Personnel)↩
- For text, see Foreign Relations, 1955–1957, vol. XXVI, pp. 777–778.↩
- The last three NIEs are in Department of State, INR–NIE Files.↩
- The Eisenhower Exchange Fellowships were established in October 1953 to facilitate extended visits to the United States and abroad for journalists, educators, government officials, businessmen, and other professional people.↩
- For text of the Mutual Security Act of 1954, P.L. 665, enacted August 26, 1954, see 68 Stat. 832↩
- Vukmanovic-Tempo, the head of the Yugoslav Trade Unions Front, visited Moscow January 6–26 for what was officially reported as a vacation. During his stay he met with Soviet Premier Khrushchev on January 26.↩