860H.00/7–2748: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
3431. I have grave doubts that we should make any secret approach to Tito (Deptel 2845 July 211). Such rift as exists is still entirely within curtain area and I know of no substantial indication that Tito has changed his attitude towards the west. There is a report in yesterday’s London press that Yugoslav Vice Premier Kardelj made it clear to Yugoslav CP Congress that Tito would not change his foreign policy but would continue support Soviet anti-imperialist policy. I think our attitude should continue to be very cautious regarding Yugoslavia.
As bait to keep open the Tito–Cominform rift, which may prove a deterrent to Soviet action in other sections, I agree that as a cautious [Page 1099] move and on a case by case basis in light of developing circumstances we should, if he approaches us, let Tito have a cargo or two of petroleum. Also there may be other things that we can do from time to time on the same basis. However, I suggest that we inform Tito that, as regards more permanent trade relations with US, a pre-condition is for Yugoslavia to adopt a foreign policy which rests on respect for the integrity of other countries, their frontiers, their right to determine the form of their internal regime, unobstructed by externally inspired activities and which is aimed at bringing Yugoslavia into the community of nations which holds that law and not force shall be the arbiter of International relations. As to ERP aid, the question is implicitly whether Yugoslavia should be admitted as a member of OEEC. This is a question for the participating countries to determine, so it seems to me. Obviously my judgment is purely vicarious.
In connection with foregoing I am not impressed with ex-Governor Olson’s statements concerning Tito’s interest in ERP and trade agreement with US (Embassy Belgrade 986 to Department2 and yesterday’s London press).