179. Telegram From the Embassy in Yugoslavia to the Department of State1

1294. Informal GOY reaction to Food for Peace Law as enacted by Congress is one of utter dismay.3 Latest telegraphic report from Ambassador Micunovic to FonOff apparently indicates that immediately upon signature by President law would close door on further PL-480 Title IV commitment to Yugoslavia. Presburger, Deputy Director Western Hemisphere Division predicted yesterday it will be impossible for FonOff to counter impression in upper levels GOY that U.S. has taken discriminatory step specifically and solely directed against Yugoslavia. He said Yugoslavs could draw no other conclusion in view USG promotion of expanded trade possibilities with other Communist countries in Eastern Europe, and fact that upshot of Congressional action is to give freedom to administration to pursue its policy in every respect except with regard to issue of PL-480 vital for Yugoslavia. Similar reaction although not as pointed heard yesterday from other Embassy contacts in FonOff and other government departments.

  1. Source: Department of State, Yugoslav Desk Files: Lot 79 D 230, Pol 1966 US. Confidential; Priority.
  2. Beginning in spring of 1965, the dates and transmission times of all incoming Department of State telegrams were in six-figure date-time-groups. The “Z” refers to Greenwich mean time.
  3. P.L. 89–808, November 11, 1966, extended the Food for Peace program. It eliminated surplus disposal programs and replaced them with grain sales in dollars supported by long-term credits. It also banned food sales to nations selling or transporting goods to North Vietnam or Cuba. For text, see 80 Stat. 1526.