111. Telegram From the Department of State to the Embassy in Yugoslavia0
565. We appreciate your suggestions for action Embtel 7571 and agree we should take no steps vis-à-vis Yugoslavs, at least publicly and officially, until decision reached on PL 480. We now have under consideration possibility of coming to decision on this separate item before review of general policy and other assistance programs completed.
Re your point 1 we think it desirable at time when any PL 480 discussions begin with Yugoslavs to bring up subject Tito’s November 13 speech seeking clarification obscure references about economic relations with US and making point such statements subject to uncertain construction not helpful to interests either party in solution mutual [Page 237] problems and in continued development relations between the two countries.
Meanwhile we will suggest informally to Yugoslavs here along line of Kohler in conversation with Nikezic October 19 (Deptel 468),2 and hope you proceed in similar way, desirability avoiding public statements that are misleading or prejudicial US-Yugoslav relations particularly while we are trying to work out solutions to problems in our economic relations.
Re point 2 we believe public statement of type you suggest should be deferred until PL 480 agreement concluded if decision taken for such agreement. We have already released to press full information on sale of aircraft and given material on grant aid to number of correspondents who have made inquiries. Secretary’s press statement October 18 already makes point US not using aid to purchase agreement from Yugoslavs with our views.
Re point 3 we have carried facts of US assistance programs and US official statements re Yugoslavia over media to Yugoslavia and plan to continue do so as our future actions warrant.3
- Source: Department of State, Central Files, 611.68/11–1461. Confidential. Drafted by Vedeler; cleared by Tyler in draft, B, S/S, USIA and AID; and approved by Davis.↩
- Document 108.↩
- Document 105.↩
- In telegram 782 from Belgrade, November 20, Kennan replied: “Continuing delay over PL 480 is helping to spread general impression, not only here but apparently in other ‘non-aligned’ countries, that we have definitely refused consider further surplus food contracts unless Yugos publicly recant some of views expressed at Belgrade conference. This is of course exactly impression Tito wishes to establish, and it tends to become stronger with every day uncertainty continues. To extent it prevails, eventual affirmative action on our part will appear as evidence belated recognition Tito cannot be budged in his views and triumph for him in his determination not to have his policies dictated by us under economic pressure.” (Department of State, Central Files, 611.68/11–2061)↩