611.60H31/7–2648: Telegram

The Chargé in Yugoslavia (Reams) to the Secretary of State

secret

986. Olson, ex-Governor of California, has been here for several days. Embassy arranged interview with Bebler to whom he presented [Page 1098] letter introduction from Kosanovic. During conversation Olson expressed desire see Tito but stated realization difficulty in view Tito’s preoccupation Congress matters. Bebler called later to state Tito glad receive Olson.

During interview last night Tito made two points which he authorized Olson give to press. Yugoslav Govt very interested in trade agreement with US but had not met with favorable US response. He stipulated that any agreement must not contain political conditions. Second point was that Yugoslavs are convinced that time will prove they are right in quarrel with Cominform and have no intention changing their line.

During interview Tito showed considerable interest in Marshall Plan and in Olson’s insistence that plan designed solely to stabilize world economic conditions and had no political motivation. Olson assured Tito he would speak to President Truman immediately on his return re Yugoslav desire for trade agreement.

Tito also discussed Greece but I was unable get from Olson clear picture of discussion this question. Olson made point that our interest there was to stop Soviet aggression and that we were determined to stop it anywhere.

Safe to assume that Tito would have interrupted his Congress work only in order make some special point. Here it is obviously trade with US.

Sent Dept, repeated Moscow 186, London 150, Paris 135.

Reams