860H.00/9–1448: Telegram
The Chargé in Yugoslavia (Reams) to the Secretary of State
1245. We strongly disagree certain conclusions drawn Depcirair September 3, 10:50 a. m. re Yugoslav approach for oil equipment. All evidence here indicates equipment solely intended Yugoslav use under five year oil exploration and development program. USSR withdrew experts and equipment several months ago and Yugoslav approach intended obtain replacements to continue program halted by Soviet action prelude to Cominform resolution. Yugoslavia feels obliged continue drillings in face Albanian and Rumanian refusal ship oil.
While we recognize Yugoslavia remains faithful supporter as ever of Soviet foreign policy this fact hardly pertinent to case. It is much too early to think of extracting political concessions from Yugoslavs who are clearly unprepared to consider them and might well publicly denounce such approach to advantage own political ends re USSR.
We feel if critical Yugoslav ores and metals are obtained in exchange we would benefit more than Yugoslavs whose petroleum program is at best visionary and remote, at same time unobtrusively stepping in where Russians refused to tread.