868.00/11–1951
Memorandum of Conversation, by the Director of the Office of Eastern European Affairs (Barbour)1
Subject: Yugoslav Request for Economic Assistance
| Participants: | Vladimir Popovic, Yugoslav Ambassador |
| Milenko Filipovic, Minister Counselor Yugoslav Embassy | |
| Walworth Barbour, Director EE | |
| John C. Campbell, EE |
Ambassador Popovic called at his request in order to present two aides-mémoire (attached) with supporting data, one the request for $82,626,000 to cover the trade deficit of the period January–July 1952 and the other $42,700,000 representing a supplementary program of economic requirements for the armament industry and army supplies.2 The Ambassador noted that these requirements had already been presented by the Yugoslav Government to the US, UK and French representatives in Belgrade. Mr. Filipovic, in commenting on the requests, referred to the earlier conversations which he had had with representatives of the Department, of ECA and of the Department of Defense on the subject of common use items. He emphasized that the items on the list now being submitted were urgently needed and speedy action was necessary in order that the orders could be placed and deliveries not delayed. He said that the common use imports were even more urgent than the [Page 1864] items on the list for general economic assistance in the first half of 1952. The Ambassador spoke of the great political importance of Yugoslav acquisition of these materials and expressed the hope that the Department would do everything possible to assist in meeting Yugoslavia’s requirements. He asked with what US agency the Embassy should follow-up the request for common use items, mentioning ECA and Defense.
I said that I was aware of Yugoslavia’s situation and that the Department would see that the Yugoslav requests were given full and careful consideration. I said also that we would look into the question of how the requests for common use items would be handled within the US Government. Mr. Campbell mentioned the fact that the question of Yugoslavia’s incremental needs for common use items in the period up to July 1, 1952 had been considered by the US, UK and French Governments in connection with the general program of economic assistance, and that it probably would be dealt with in that context. I said that we were glad to have the data which the Yugoslav Government had provided in support of its requests and that we would lose no time in giving them careful study.
The Ambassador then brought up the subject of the Majdanpek Copper Project, expressing a certain degree of irritation that they had been given no decision on this matter since his conversation with Mr. Bonbright some weeks ago.3 He wondered whether I could tell him why the matter was being held up and whether any particular agency was blocking it, as he believed that ECA had already expressed itself favorably. I said that I was not acquainted with the background of this subject but would find out as soon as possible whether there was anything we could tell the Embassy about it. Mr. Campbell said that he understood the engineers’ report was still under consideration by various US agencies and that he did not believe that any decision had yet been taken. The Ambassador said that his Government regarded this project as of particular importance not only in itself but also because it could serve as a model for the exploitation of other materials in Yugoslavia such as aluminum and lead. He asked specifically for the Department’s own view on the Majdanpek Project. We said that we were unable to give him any Departmental view on the subject.