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

204. Draft Telegram From the Department of State to the Embassy in Yugoslavia¹

Washington, undated

SUBJECT

• Reply to Yugoslav President Stambolic From President Reagan.

1. The following text of a reply has been approved for delivery to Yugoslav President Stambolic by Defense Secretary Weinberger during his December 3–4 visit to Yugoslavia. Weinberger will not rpt not be carrying a signed version of the reply, and Post should prepare text for the Defense Secretary to deliver.

2. Begin text: Dear Mr. President: Some time ago you informed me of your country’s efforts to achieve closer cooperation between Yugoslav and American banks and to secure additional credits to help provide the foundation needed for your government’s economic stabilization program. I am particularly pleased that the arduous and protracted negotiations between American and Japanese lenders and Yugoslav financial institutions have now resulted in the signing of a $200 million loan syndication.

I have followed your stabilization measures with close attention and can assure you that many Americans admire the Yugoslav people for the sacrifices they are making now to improve Yugoslavia’s future economic and financial situation. We are aware that your country faces a difficult period during the first half of 1983. In view of the importance which we place on our relationship with Yugoslavia and our desire that your stabilization program have the best possible chance to succeed, I have instructed U.S. authorities to reexamine carefully ways in which our financial cooperation can be strengthened in the crucial months ahead. As you are well aware, the general international financial situation is at a difficult and complex stage. You can rest assured, however, that the United States, like other Western countries with whom Yugoslavia enjoys good relations and mutually beneficial economic ties, is concerned that everything appropriate and feasible be done during this period to assist. My representatives will continue to work closely with your authorities as we pursue concrete measures.

Please accept renewed assurances of my highest consideration and warm personal regards. Sincerely, Ronald Reagan. End of text.

3. Department plans no release of the text of this reply, but has no objection if the GOY wishes to release it.

1. Source: Reagan Library, Paula J. Dobriansky Files, Yugoslavia (3). Confidential; Immediate. Drafted on November 29 by George Humphrey (EEY); cleared by Palmer, McGonagle, Davis, Burt, and Assistant Secretary of the Treasury for International Affairs Marc Leland. A sent copy of this telegram was not found.