860H.00/1198: Telegram
The Minister in Yugoslavia (Lane) to the Secretary of State
[Received 6:23 p.m.]
395. A high Yugoslav Government official informed me at Bled yesterday as follows:
The present policy of the Yugoslav Government is to maintain a dignified position in the face of German pressure, that is, to refuse to permit Germany to dictate how Yugoslavia shall conduct internal affairs. On the other hand, Yugoslavia feels it is imperative to yield to German demands for foodstuffs. It is hoped that the United States Government will appreciate the position of the Yugoslav Government in endeavoring to keep out of the war at the same time maintaining its self respect.
Recently the German Government demanded that the Yugoslav Government should become authoritarian in character. Unfortunately Korosec, the Minister of Education, without consulting the Prime Minister26 who was then in Bled, issued an order prohibiting the admission into local schools of persons of Jewish race. The Prime Minister countermanded this order thus bringing about attacks on Cvetkovic in the German press. Korosec was deceived by German intrigues in taking action and now realizes his mistake. There will be no Cabinet crisis because of this incident although probably the Government will be “enlarged” to appease foreign nations (presumably Germany). Relations between Cvetkovic and Macek27 are excellent despite rumors of dissention.
As to repeated reports of Communistic activities in Yugoslavia which have come to our attention my informant said that these are spread by young students encouraged by both Italians and Russians but that they are not to be taken seriously. The Government knows how to control propaganda of this sort. The Yugoslav Government has obtained virtually nothing from its commercial agreement with the Soviet Union nor did it expect anything. No cotton has been forthcoming. The agreement was made solely for political reasons. Yugoslavia has no illusions regarding Soviet aims. Even the Prime Minister who admits that he is accused of being Communistic states [Page 519] that the best way to cure persons of pro-Soviet views is to send them to Moscow.
My informant as well as another Yugoslav official said to me yesterday that perhaps Germany would attack Yugoslavia or Greece in the event that the air attack on England does not result in German victory but according to German assurances there is no such danger. They agreed with my opinion, however, that no confidence can be placed in German promises.