Foreign Relations of the United States, 1951, Europe: Political and Economic Developments, Volume IV, Part 2

No. 882

768.5–MAP/3–2451: Telegram

The Secretary of State to the Embassy in Yugoslavia ¹

secret

Washington, March 24, 1951—6 p.m.

998. Tomap. In likely event Pres, after current consultations with Congressional leaders and deputies other NATO countries, determines that US should assist Yugo in its present raw material crisis, pursuant Section 408 (c) Mutual Defense Assistance Act, it is presently contemplated you be asked exchange notes with Yugo Govt along lines transmitted in immed fol tel² only for your comment.

May be that current Congressional consultation will reveal necessity additional undertakings from Yugo Govt in connection raw materials, etc., supplied by US. You will be kept informed.

At time you are instructed present note Yugo Govt, you may state US contemplates extending immed assistance in form of raw materials and other supplies in amounts and kinds equivalent to certain consumption needs for supporting the Yugo armed forces.

In your discretion you may add it was originally contemplated here that US might send mission to consult with and advise Yugo Govt in connection with assistance requested and being furnished. We have preferred, however, rely at least for time being upon Emb staff, suitably augmented as may be necessary.³

Five percent counterpart provision is included to make terms on which this assistance is granted consistent with those on which economic portions of mil assistance generally will be extended elsewhere.

Acheson

1. Drafted by Warren A. Silver of the Office of International Security Affairs and cleared with Bray, EE, OFD, L/E, the Department of Defense, and ECA. Repeated to London and Paris.
2. Telegram 999 to Belgrade, March 24, contained the draft note which was virtually identical with the note addressed by Ambassador Allen to the Yugoslav Government on April 17. (768.5–MAP/3–2451) Regarding that note, see Document 892.
3. In telegram 1045 to Belgrade, April 3, the Department of State informed the Embassy that preliminary thinking favored the establishment within the Embassy of a separate, enlarged economic section integrating ECA personnel in order to deal with economic assistance to Yugoslavia. (768.5–MAP/4–351)