641.68/12–1251: Telegram
The Ambassador in Yugoslavia (Allen) to the Secretary of State 1
779. Brit Amb and his staff have remarked to this Emb re some cooling UK-Yugo relations last few weeks. They say Yugos have been brusque as well as obstructive in their dealings here and have also subjected staff to increased surveillance. Brit Amb inclined to attribute this to Yugo reaction to UK Govt change, possibly Churchill’s remark concerning recreating spirit war-time three power conferences.2
This Emb believes above as well as rankling memories Churchill Stalin 50–50 deal on Yugo, may be partly responsible but following are other likely factors: (1) Sir Francis Mudie’s critical attitude in tridel econ discussions toward Yugo request for capital investment financing, (2) decline Brit prestige Middle East, (3) replacement Peake by new Amb Mallet who is cooler and less colorful personality although able representative. Conversely Yugo also annoyed by Peake’s reported monarchical enthusiasm in Greece.
It is possible Brit may be inclined exaggerate alleged Yugo slights due to hypersensitivity resulting from secondary role Brit being forced to play in international politics.