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

203. Summary of Conclusions of a Meeting of the Senior Interagency Group on Yugoslavia¹

Washington, November 23, 1982, 3 p.m.

SUBJECT

• SIG Meeting on Yugoslavia, November 23

PARTICIPANTS

• See List Attached²

SUMMARY OF CONCLUSIONS

The SIG convened to discuss the draft IG memorandum and NSDD on Yugoslavia. Three points emerged from the discussion.

On the issue of technology transfer, a difference of view exists between State and Defense on the likelihood of compromise of high technology sold to Yugoslavia. Chairman Eagleburger asked the two agencies to produce alternate language for decision in an NSC meeting.

On the issue of short term credit measures versus long term bilateral policy toward Yugoslavia, it was Treasury’s view that the immediate credit crisis faced by Yugoslavia should be dealt with in the SIG-IEP in parallel with similar credit issues involving other countries. Treasury therefore objected to the appearance in the NSDD of detailed financial prescriptions for the Yugoslav problem. State and NSC took the view that an overall study and NSDD had been mandated in NSDD 54 and were due the White House. Yugoslavia’s condition increased the urgency of this task. After an animated discussion, it was decided to remove the details of the short-term financial prescriptions from the draft NSDD and redirect this issue to the SIG–IEP for consideration in a meeting to be held Monday, November 29.³ The draft NSDD would be revised to focus on the larger policy questions, including the need for a major financial effort to help Yugoslavia, and would be circulated to the SIG membership for approval as soon as possible.

On the issue of CCC credits for Yugoslavia, Agriculture took the position that the CCC program was being improperly used in the NSDD as the centerpiece of a financial relief program. The CCC mandate allowed it to lend to expand markets or reduce risk, but not for general foreign policy aims. In rebuttal, the NSC noted that CCC credits had been approved in 1981 for another East European country on political grounds and that the President had the option of so deciding. The SIG had a duty to set forth the options available to the President. State and Agriculture agreed to develop language to address this issue.

Chairman Eagleburger closed the meeting with the hope that the credit-related work in the present texts would be useful in the SIG-IEP meeting November 29. He also stressed the urgency of getting on with a U.S. financial package and consultations with key allies.

ACTION ASSIGNMENTS

1. State and Defense are to insert alternative language on the subject of technology transfer.

2. State will remove the details of the short term credit package from the NSDD and study package and rework the package along larger policy lines.

3. State and Agriculture will develop language on the role of CCC in U.S.-Yugoslavia relations.

4. Treasury and State will move ahead on the financial package as a matter of urgency, including early consultations with key allies.

1. Source: Central Intelligence Agency, Office of the Director of Central Intelligence, Job 84B00049R: Subject Files (1981–1982), Box 5, Folder 118: SIG Meeting Re: US Policy Toward Yugoslavia 23NOV82. Secret. Drafted on November 26. The meeting took place in Whitehead’s conference room. The memorandum was Sent to Gregg, Wheeler, Lett, Cormack, Robbins, Stanford, Draper, Siegman, Keel, Pickford, and Whitfield.
2. Attached but not printed.
3. A summary of conclusions for this meeting was not found.