Foreign Relations of the United States, 1949, Eastern Europe; The Soviet Union, Volume V

501.BC/11–1849

Memorandum of Conversation, by the Secretary of State

secret

[Washington,] November 18, 1949.

Participants:	Mr. Kardelj, Yugoslav Foreign Minister1
	Mr. Kosanovic, Yugoslav Ambassador
	The Secretary
	Mr. Thompson—EUR

Mr. Kardelj opened the conversation by expressing his appreciation for the understanding which the United States Government hadshown of Yugoslavia’s economic and financial difficulties and for the help which we had given them. He also expressed appreciation for our support for Yugoslavia’s candidacy for a seat on the UN Security Council.² He said that looking back, although there had been many bolts of thunder, nothing catastrophic had happened, and he felt that Yugoslavia’s action had been the right one.

I observed that there was some speculation that the Soviet Union might take some drastic action at the time Yugoslavia took her seat on the Security Council, but said we were inclined to discount such rumors. The Foreign Minister agreed and said that he thought the Soviet Union in its own interest would not be inclined to take any serious steps in this connection.

Mr. Kardelj remarked that there had been reports in the press that Yugoslavia had been discussed at the recent meeting in Paris³ and he inquired if there was anything I could tell him on this subject.

I replied that there was nothing secret about the matter and I was very glad to tell him everything that had taken place. I said I had called the attention of the other two ministers to the difficult economic and financial situation of Yugoslavia with particular respect to its foreign exchange situation during the balance of this year and the coming year. I told them that we felt that if Yugoslavia could overcome this immediate crisis, her long-range economic prospects looked good. I informed them of the steps which the United States Government had taken to assist Yugoslavia in dealing with this problem and suggested that they also examine the problem to see what they could do. They had agreed to do so. I said that this was the only discussion of Yugoslavia’s problem which had taken place.

Mr. Kardelj thanked me for the information and said that the problem of reorienting their trade had been a difficult one, but said they hoped by the middle of 1950 to be in fairly good shape. He said that Yugoslavia was endeavoring to raise the standard of living of its people and that their chief problem was obtaining industrial equipment.

I said that in this connection I wished to put one thought in his mind. I pointed out that the assistance which we had given Yugoslavia in the present crisis had not been easy to render; the difficulties would be even greater next year. I said I therefore hoped that the Yugoslav Government would review very carefully any expenditures it contemplated making which would involve the use of foreign exchange, since any further assistance from us would involve very great difficulties.

Mr. Kardelj replied that his Government was doing this and that only the most essential items would be purchased at this time.

The Foreign Minister said he had been greatly impressed by his visit to this country and said that although he had read and studied a great deal about it, he had not fully understood its spirit until he had actually come here.⁴

I said I thought this was essential and that no matter how long he stayed or how long he looked, it would be very difficult for him to find any traces of capitalist imperialism.

Mr. Kardelj remarked that in political battles one made rather free use of expressions and he observed that a great many inaccurate statements had been written about Yugoslavia by people who had never been there or who had made only an official visit.

[Dean Acheson]

1. Foreign Minister Kardelj, who had been in the United States as head of the Yugoslav Delegation to the United Nations General Assembly, was about to leave for Yugoslavia.
2. On October 20 the United Nations General Assembly elected Yugoslavia to a seat on the Security Council.
3. The reference here is to the Secretary of State’s meetings with Foreign Secretary Bevin and Foreign Minister Schuman on November 9, 10, and 11. Regarding the discussion of Yugoslav matters during those meetings, see telegram 4716, November 11, from Paris, p. 977.
4. On October 27 President Truman accepted the resignation of Cavendish W. Cannon and announced the appointment of George V. Allen as the new Ambassador to Yugoslavia. Ambassador-designate Allen made a courtesy call on Foreign Minister Kardelj on November 18. According to Allen’s memorandum of his conversation, not printed, Kardelj observed that he was glad to have had an opportunity to visit the United States for the first time, and he was impressed that the United States was not only the most advanced country in the world as far as technical progress but was also a young and vigorous country. The remainder of the conversation was generally devoted to the need for increased travel, between the two countries and the recent acquisition of a new Embassy chancellery building in Belgrade (711.60H/1–1849).