740.5/7–2051: Telegram
The Secretary of State to the United States Deputy Representative on the North Atlantic Council (Spofford), at London1
Todep 40. 1. In order be able provide rapidly mil supplies to Yugo at such time Yugo required and wld be prepared receive overt mil assistance, US undertook earlier this year special stockpiling program with MDAP funds appropriated for FY 1951 in amt of (FYI) $77.5 million. On June 28 fol visit this country of Gen Popovic Yugo Army Chief of Staff Yugo Amb presented Secy formal request for mil supply aid.2 We are now preparing make immed deliveries to Yugo from this stockpile under auth of sec 408 (c) of MDAA. While these funds have been already expended or obligated, before deliveries can be made to Yugo the Pres must find that provision of mil assistance to Yugo will contribute to preservation of peace and security of No Atl area and is vital to US security. Finding by Pres must be preceded by consultation with other NATO members as well as by Congressional consultation.
2. Consultation with NATO countries also required on related problem further use MDAP funds for gen econ aid to Yugo. In [Page 1832] order maintain flow of US econ assistance to Yugo pending adoption proposed MSA for FY 1952, we contemplate extending immed under sec 408 (c) of MDAA interim econ assistance, amounting $25–30 million from MDAP funds, as first installment to total US econ aid to Yugo during FY 1952. MDAP funds are available under gen Cong res appropriating funds through July 31, 1951 to continue US Govt activities. It is contemplated Cong will pass further continuing resolutions until appropriations made MSA.
3. Fol procedure contained in Todep 312 of Mar 31 [21] (rptd other posts)3 and in order create written record showing consultation, it is desired that you provide each dep with aide-mémoire which shld read substantially as fols:
“The agreed minute contained in D–D (51) 294 refers to the question of giving mil support to the Yugo Govt in advance of any open attack, either from Sov Russia or from the satellite states, as well as to the provision of econ assistance to Yugo.
In consequence of the continued rapid increase in the armaments and mil forces of the satellite states, and of the request which the US Govt reed on June 28 from the Yugo Govt for aid in strengthening Yugo’s defenses by providing mil equipment, the US Govt is contemplating providing immed mil equipment to Yugo on grant basis. It is intended that this assistance will help Yugo to maintain its independence and will serve to promote important strategic and security objectives of the member govts of NATO.
US Govt is also contemplating the immed provision to Yugo Govt of additional econ assistance intended to fin the importation of materials and services required if Yugo econ is not to risk serious deterioration with resulting weakening of that country’s capacity to resist aggression in the threatening internatl situation. This additional economic assistance will comprise a portion of the United States contribution to the aid program described by the US, UK and Fr Deputies in their statement to CD July blank.5
US Govt wld appreciate confirmation that Govt of blank continues to believe that immed increased ability of Yugo to defend itself will contribute to preservation of peace and security of NA area, bearing in mind direct importance to NA area of strategic location of Yugo and serious effect on security of NA area resulting from inability of Yugo Govt to obtain mil as well as other equipment and supplies it requires in order to provide for the defense of its territory.”
You shld further remind Deputies in this connection of your observations to them reported para 4 Depto 52.6 Also shld explain [Page 1833] this will not affect directly amts intended for other countries in US assistance programs. If Deputies cannot give response of their govts immed, we request that their govts reply individually through our missions in their countries directly to us at earliest possible moment to reach us preferably not later than July 27.
- Drafted by Gannett and cleared with Knight, Bonbright, Matthews, Vigderman of L/E, Kaufman of ECA, Bell of S/ISA, and Dziuban of Defense. Repeated to the other NATO capitals.↩
- A copy of the Yugoslav note is in file 768.5/6–2851.↩
- Document 879.↩
- Transmitted to the Department of State in telegram Depto 457 from London, Document 840.↩
- This is a reference to the aid program formula contained in the Final Report of the Tripartite Official Conversations Concerning Economic Aid to Yugoslavia, Document 906.↩
- Not printed.↩