No. 863

768.00/2–1651: Telegram

The Ambassador in the United Kingdom (Gifford) to the Secretary of State

secret

4485. From Perkins. Accompanied by Holmes I had general round-up this morning with Makins, Dixon, Noble, Mallet and Cheetham at FonOff.1 I gave them a general report of my conversations in Yugoslavia and impressions resulting therefrom. They are along lines of Allen’s telegram from Belgrade.2 British stated that after discussions with Yugoslavia latter had furnished list of military equipment they desire with priorities indicated. In opinion of FonOff it seemed wise to consider Yugoslavia requests in tripartite forum in order to avoid danger of Yugoslavs playing one against the other. British will therefore recommend in course of few days that Yugoslav list of requirements be examined by tripartite working party in Washington.3

[Page 1735]

Makins outlined the work and tentative conclusions of British economic commission presently in Belgrade. Indications are that deficit for ’51 through ’53 after allowing for World Bank financing may be nearer 250 million than 120 million figure submitted by Yugoslavia to US. He felt that short term economic aid is well in hand but that there should be very close coordination of consideration of Yugoslav request for long term economic aid. British expected to have full report from their delegation Belgrade in near future and expect to be in position to make suggestion to US as to how we may jointly consider Yugoslav economic needs.

[Here follows the concluding paragraph of the telegram dealing with Austria.]

[Perkins]
Gifford
  1. This was the concluding stop in Assistant Secretary of State Perkins’ February tour of Western Europe; see Document 850.
  2. This is presumably a reference to telegram 1101 from Belgrade, Document 861.
  3. The British Government sent copies of the Yugoslav list to their Embassy in Washington for distribution to the Department of State. Lord Jellicoe provided the list during a call at the Department on February 23 at which time he expressed the belief that the Yugoslavs were not aware that the British had informed the United States of the Yugoslav request. (Memorandum of conversation, February 23, 768.5/2–2351) The Department of State provided the Department of Defense with copies of the Yugoslav list under cover of an explanatory memorandum of March 1. (768.5–MAP/3–151)