611.60H31/11–149: Telegram
The Secretary of State to the Embassy in the United Kingdom
4022. We have been in close touch with Brit Emb here re Brit Yugo trade negots. In addition to Ex-Im Bank loan, support for drawing from Monetary Fund and efforts to ease Yugo trade balance with Ger, we have urged Belgs to extend their credit to Yugo. This problem was briefly discussed with Bevin and Schuman during their visit to Wash. We are concerned at apparent tendency of Brit to consider their proposed agreement with Yugo solely on an econ basis (Belgrade’s 1124 Nov 3, rptd London 901). If you think it wld be helpful suggest you urge upon Brit Govt giving full weight to polit considerations and importance we attach to Brit making their contribution to get Yugo through present crisis.2
- Not printed.↩
- Telegram 4494, November 9, from London, not printed, reported that Rumbold, the Head of the Southern Department of the British Foreign Office, had explained that the British offer of an eight million-pound credit to Yugoslavia was based on political grounds and that on commercial grounds alone no credit would have been offered to Yugoslavia. Rumbold further observed that Bevin’s decision not to meet the Yugoslav desire for a credit greater than eight million pounds might cause British-Yugoslav negotiations to break down, but he doubted such an eventuality (840.20/11–949).↩