700.00(S)/5–150: Telegram
The Secretary of State to the Embassy in Yugoslavia
Infotel. In preparatory discussions for FonMin’s meeting1 French indicated willingness to join in our policy of financial assistance to Yugo after French-Yugo debt problem had been solved re which they seemed reasonably hopeful. Brit stated that Yugo sterling position good and questioned urgency IBRD loan. Bohlen2 stressed importance of this loan and great political importance we attached to seeing that Yugo situation does not deteriorate. Meanwhile re previous Brit understanding that IBRD had postponed further consideration Yugo loan until autumn IBRD states that consideration certain aspects loan (e.g. equipment to be covered and source) and discussions Yugos will continue but in view problems involved (e.g. dollar bond settlement and question participation West European countries) loan action appears unlikely “for some time”. Rogers FBPC thinks dollar bond negotiations may resume July if French settlement reached and thus earliest possible IBRD loan action probably August.3 This connection, Yugos requirements submitted Dept and Eximbank, during April, indicate we must expect during 1950–51 strong pressure for loans in addition those authorized and that contemplated by IBRD to finance chiefly capital imports much of which already contracted for.
- Regarding the Tripartite Foreign Ministers Meetings in London, in May and preceding preparatory meetings, see the editorial note, p. 1415.↩
- Charles E. Bohlen, Minister in France and United States Representative to the preparatory meetings referred to in footnote 1, above.↩
- Regarding the discussions between the Yugoslav Government and James Grafton Rogers, President of the Foreign Bondholders Protective Council, see the editorial note, p. 1396.↩