462A.6831/9–650: Telegram

The Secretary of State to the Embassy in France

secret   priority
niact

1146. Brit Emb informed Dept Sept 5 UK will not veto Ger credit Yugo even up to $65 mil, but wld like Allies point out Ger that credit wld be “economically unsound”. Urtel niact 1112 Sept 1.1 Dept strongly disagrees latter proposal position remains to press urgently tripartite approval Ger credit $30 mil only now, with possibility reexamining Yugo need additional Ger credits later date. Dept today approached Fr Emb and expressed hope Fr will agree to $30 mil credit now, stating matter wld be raised Fon Min mtg2 if unresolved. Request you so inform FonOff immed.

Rptd London as 1215, Frankfort as 1808, Belgrade as 163.

Acheson
  1. Not printed. It reported that numerous representations to the French Foreign Ministry over a number of weeks had been unfruitful due apparently to a lack of an agreed French position. On September 1 the Foreign Ministry finally informed the Embassy that the French Government was prepared to agree to a small Federal loan to Yugoslavia in the neighborhood of $10 million (462A.6831/9–150).
  2. The reference here is to the meetings of the American-British-French Foreign Ministers at New York, September 12–18, 1950; see the editorial note, infra.