Foreign Relations of the United States, 1950, Central and Eastern Europe; The Soviet Union, Volume IV

868.10/3–650: Telegram

The Ambassador in Belgium (Murphy) to the Secretary of State

secret

Brussels, March 6, 1950—4 p. m.

332. I discussed substance Deptel 292, March 4¹ with Van Zeeland² this morning mentioning at same time in that connection Department’s desire to see deferred for one year Yugoslav existing credits arising under Yugoslav-Belgian trade agreement, Van Zeeland having previously told me that he would go to outermost limit in supporting our wishes.

First of all Van Zeeland said he had had greatest difficulty with Minister of Finance³ on account Yugoslav item. The Finance Minister had said that Belgium is asked to extend credits and make concessions although in contrast with other European countries it is neglected and even its reasonable request for the $50,000,000 World Bank–Eximbank loan, is rejected. Its European neighbors all seem to fare better and enjoy American generosity such as Holland which is receiving ECA direct aid at the rate of $200,000,000 annually whereas Belgium receives nothing. I suggested to Van Zeeland that it might be well for Belgian Government to consider US position, as the latter is always expected to give and does give generously and in the mutual interest of West Europe; that in our policy of extending aid to Yugoslavia, which Van Zeeland says he supports and understands, there is an overshadowing political consideration which should not be lost sight of by overemphasis of strictly financial features.

Van Zeeland said he agreed heartily and that he approves our Yugoslav policy fully; that he personally will support the IBRD $25,000,000 loan to Yugoslavia of which it is understood that Belgian’s share would be the Belgian franc equivalent of 1.8 million dollars and also that he will push again for favorable decision on deferment of the existing credits under the Belgian-Yugoslav trade agreement. But he added he would have to ask me to make an end run and tackle the Finance Minister on both points.

I am seeing Libaert shortly and while he is now in the midst of a tax reform debate, I will ask him to support both items relating to Yugoslavia.⁴

Murphy

1. Same as telegram 996, March 4, to London, supra.
2. Paul van Zeeland, Belgian Minister of Foreign Affairs.
3. Henri Libaert.
4. In his telegram 404, March 15, from Brussels, not printed, Ambassador Robert D. Murphy reported that he discussed the proposed IBRD credit to Yugoslavia with Belgian Finance Minister Libaert. Libaert stated that he concurred in the proposed loan. Murphy observed, however, that it was obvious from Libaert’s remarks and the comments of other Belgian officials that current American policy toward Yugoslavia was viewed with considerable skepticism in Belgium (868.10/3–1550).