14. Memorandum of Conversation0
SUBJECT
- Farewell Call by the Bulgarian Minister—Reference to Claims Issue
PARTICIPANTS
- The Secretary
- Dr. Peter G. Voutov, Bulgarian Minister
- Nicholas G. Andrews, EE
Dr. Voutov began by referring to his eight years of diplomatic service in Washington and in New York at the United Nations and by expressing [Page 24] his deep gratitude for what the Secretary and his deputies had done for him and for the Bulgarian mission. He noted that the last three years had been particularly important because a start was made toward repairing the damage in US-Bulgarian relations. Dr. Voutov said he conceived that his primary task had been to find the best way to develop relations. In looking back, he believed that, although many things still had to be done, relations had been normalized by the exchange of diplomatic missions, by the resolution of some consular problems and the initiation of cultural exchanges and trade. Bulgarians had been happy to have American singers, professors, sportsmen and tourists visit their country. While we were still at the beginning stage of our relations, this was not a bad beginning. With good will, both sides could do more in promoting an active attitude toward relations and in finding a basis for mutual understanding. Both big countries and small could contribute to better relations, each going its own way and respecting the way of others. In his fifteen years of diplomatic service, more than half had been spent in the US. This period had been a kind of school for him and he expected, in whatever his future position might be, to do his best to help his Government in the consideration of its policies towards the US.
The Bulgarian Minister mentioned the recent graduation of his daughter, Svetlana, from Woodrow Wilson High School. She had just competed with 400 other Bulgarian and foreign students for one of the fifty available places in Sofia University and had come out first. Thus, at sixteen and a half years of age, she would be the youngest student in the University. In answer to a question, Dr. Voutov said that his son, who had been at Brightwood School, spoke Bulgarian badly, putting Bulgarian endings on English words.
Dr. Voutov stated that he wished to mention the most important element affecting the development of relations—namely, the question of a financial settlement. He noted that negotiating delegations had met for several months before negotiations were suspended and that informal conversations had been held since that time. The amount of the claims was on the verge of agreement when the difference in the positions of the two Governments reached only $200,000. At the last moment, he said, a new figure for the value of Bulgarian assets was given because the Office of Alien Property had erred in its evaluation of Bulgarian blocked and vested assets and the US asked for $550,000 cash above the value of Bulgarian vested assets. Dr. Voutov assured the Secretary that Bulgaria wished to settle the claims issue but not at any price. He appealed to the Department and to the Secretary personally to do everything possible to settle this problem. In Bulgaria, the Government was prepared to give something above the value of vested assets but questioned what Bulgaria would receive in return. Dr. Voutov said that he knew about the most-favored-nation problem. An attempt was being [Page 25] made to trade in small quantities, as the Department of Commerce proposed, but even this was difficult. The Bulgarian trade mission was sitting in Washington instead of New York because the question of a trade office in New York was tied up with the claims settlement. Trade would help provide Bulgaria with foreign currency to pay off the claims. A cultural exchanges program also required foreign currency. Concluding, Dr. Voutov emphasized that both sides must make an effort to settle this problem of claims.
The Secretary replied that he would review the claims problem.
The Secretary said that, by way of a personal remark, he felt the Bulgarian Minister, as an individual, had tried his best, within the limited possibilities of the policies of the US and Bulgarian Governments and the larger questions in which they were involved, to improve relations between our two countries and the US appreciated this.
The Secretary noted that there were no issues between the American and Bulgarian peoples. Historic ties of friendship existed between them. Furthermore, Bulgaria’s internal social system was its own affair and did not constitute an obstacle to good relations. However, there were some limitations of an overriding nature which the international scene imposed on both countries and which affected bilateral relations. These limitations necessarily placed obstacles and difficulties in the way of our relations. Nevertheless, the US would like to improve its bilateral relations with Bulgaria to the extent that these overriding international problems permit. This means that there are certain things which each side must be aware of. Dr. Voutov, he presumed, was familiar with the role of Congress in foreign affairs. We must have patience, persistence and good will in order to improve bilateral relations. The US has no hostility toward Bulgaria but the international problems in which Bulgaria is necessarily involved are of very much concern to the US.
In conclusion, the Secretary told Dr. Voutov that he had made a contribution to improved relations. He hoped Dr. Voutov was leaving the US with a sense of satisfaction and expressed his personal regard and that of his colleagues for Dr. Voutov.
Dr. Voutov replied he had always met with understanding in the Department.
The Secretary mentioned he had been most disturbed last year over the street attacks on members of Dr. Voutov’s staff. He said he could well understand how the affair could be regarded in the Bulgarian view as something other than a coincidence. He had been distressed that these incidents had raised questions which had not been in our minds.
Dr. Voutov replied that those far away (in Bulgaria) could not understand the affair or how it was possible.
- Source: Department of State, Secretary’s Memoranda of Conversation: Lot 65 D 330. Official Use Only. Drafted by Andrews and approved in S on September 17.↩