Foreign Relations of the United States, 1981–1988, Volume X, Eastern Europe

198. Letter From Yugoslav President Stambolic to President Reagan¹

Belgrade, July 6, 1982

Dear Mr. President,

In keeping with our established practice of exchanging messages on the highest level, which both sides deem to be highly useful, and in the spirit of the friendly relations and understanding between our two countries, I would like to take this opportunity to underline our great interest in advancing cooperation with U.S. commercial banks. Therein, in our view, the support of the government of the United States would be most helpful.

Your administration, as well as business circles and banks in the United States, have followed the efforts we have exerted over the past two years to achieve economic stabilization. This policy has yielded manifold results, particularly in terms of reducing our balance of payments deficit. In this context, our cooperation with the International Monetary Fund has been most productive. However, as you are no doubt aware, we are pursuing this policy against the background of highly unfavorable international developments, and particularly adverse economic and monetary conditions.

Although we remain firmly committed to reducing our foreign debt, at this moment new credits are essential in order to retain the complete solvency of our country and to continue our policy of economic stabilization.

Representatives of your administration have, on several occasions, reiterated their support and understanding for the course we have embarked on. We particularly value your willingness, Mr. President, which you conveyed to my predecessor, Sergej Kraigher, in Cancun,² to extend your support in securing new credits for Yugoslavia from U.S. banks.

Financial cooperation is a long-term and essential part of our economic and overall bilateral cooperation. This view was shared by preceding U.S. administrations also.

The campaign Yugoslavia launched toward the end of last year to secure new credits has not, to our regret, been brought to a close. However, I would like to inform you that the West European countries have manifested their understanding for the steps we have taken with regard to their banks.

I feel, Mr. President, that you are fully aware of the economic and political import that successful long-term cooperation between Yugoslav and U.S. banks has in terms of relations between our two countries. In view of our renewed efforts to secure the medium-term and short-term credits that we need, your personal attention, Mr. President, and the support of your administration in this regard would be highly appreciated.

I avail myself of this opportunity to express great pleasure at the successful development of relations and fruitful cooperation between our two countries on long-established principles which have an enduring value.

Please accept, Mr. President, the renewed assurances of my highest consideration.

Petar Stambolic (signed)³

1. Source: Reagan Library, Paula J. Dobriansky Files, Yugoslavia (2). No classification marking. Printed from an unofficial translation.
2. Reagan was in Cancun from October 21 until October 24, 1981, to attend the Inter- Meeting on Cooperation and Development.
3. Printed from a copy that bears this typed signature.