440.6831/3–1650: Telegram
The Ambassador in Yugoslavia (Allen) to the Secretary of State
352. During conversation with Tito today1 question of trade relations between Yugoslavia and Western Europe arose. I said I would like clarify possible misunderstanding between our two countries in this connection. I wished make it clear if Yugoslavs had gained impression US desired Yugoslav participation in Marshall Plan, Yugoslavs were mistaken. I said we not only had no desire for Yugoslav participation but we appreciated Yugoslav government’s position in matter. I said any misunderstanding had resulted from inadvertence. I added US was nevertheless anxious assist Yugoslavia in reorienting its trade with West which had been disrupted by Cominform blockade. As example, I said we would be glad for Greece obtain lumber in Yugoslavia and might supply Greece with dollars on understanding Greeks would pay dollars to Yugoslavia for lumber.
Tito said he would welcome such arrangement with ERP countries and it was in fact only means by which Yugoslavia could participate in ERP.
Sent Department 352, repeated London 49, Paris 61, Rome 33, Vienna 37, Athens 21, Frankfurt 44.