Editorial Note
In 1950 Yugoslav pre-World War II bonded indebtedness in dollars to American investors amounted to nearly $50 million. This included nearly $40 million principal amount of bonds together with the defaulted service on the bulk of the debt. In December 1949 Yugoslav representatives notified the Foreign Bondholders Protective Council, Inc. (a nonprofit, semipublic organization for the protection of the rights and interests of American holders of public securities of foreign states) of the Yugoslav Government’s readiness to discuss a settlement of Yugoslav prewar bonded indebtedness. At the request of the Yugoslav Government, James Grafton Rogers, President of the Foreign Bondholders Protective Council, visited Belgrade from March 17 to March 31, 1950. During their discussions with Rogers, Yugoslav officials affirmed their government’s desire to arrive at a satisfactory settlement, but they pressed unsuccessfully for a reduction in the principal of the indebtedness. Throughout the discussions, Rogers made clear that a satisfactory settlement would be a prerequisite for the proposed loan to Yugoslavia by the International Bank for Reconstruction and Development. The discussions were adjourned on the understanding that they would be resumed later in the year. For Ambassador Allen’s description of the circumstances of the discussions, see telegram 427, April 3, from Belgrade, infra. Upon his return to Washington, Rogers discussed the subject with officers of the Department of State. Rogers was confident that when negotiations were resumed, the Yugoslav Government would retreat from its position of demanding a reduction of the principal of the debt. On April 12, 1950, Rogers released a statement to the press summarizing the essential facts of Yugoslavia’s bonded indebtedness, reviewing the course of the recent contacts with the Yugoslav Government, and suggesting that negotiations would probably resume in the fall of the year. They were in fact not resumed. For the text of Rogers’ [Page 1397] April 12 statement together with a summary of the facts in the matter, see Foreign Bondholders Protective Council, Inc.: Annual Report 1950 (New York: 1951), pages 201–203. Documentation on the efforts during 1950 to achieve a settlement of Yugoslavia’s prewar bonded indebtedness is included in the 868.10 segment of the Department of State’s Central Files.