Foreign Relations of the United States, 1948, Eastern Europe; The Soviet Union, Volume IV

860H.00/11–948

Memorandum by the Director of the Office of European Affairs (Hickerson) to the Director of the Policy Planning Staff (Kennan)

secret

[Washington,] November 26, 1948.

Subject: Suggested addition to S/P’s June 30, 1948 paper on “US Attitude toward Events in Yugoslavia”¹

discussion

In view of recent statements by leading Yugoslav officials indicating a desire to improve US-Yugoslav trade, the present might be an opportune time to expand the references dealing with Yugoslav-US and Western trade in the latter half of Paragraph 2 on Page 3² of this paper. For example, during Ambassador Cannon’s recent talk with Foreign Minister Kardelj (Belgrade’s 1395 October 28) the latter referred to Yugoslav interest in improving trade with the US, mentioning specifically motor transport replacement parts, tires and fuel, and said that this subject must be discussed further. Belgrade’s telegram 1250 of September 15, 1948 recommended some relaxation of the present restrictions on US exports to Yugoslavia without regard to any political quid pro quo. Tito and one or two other Yugoslav officials have on several occasions since the Cominform split stated that they wished to improve US-Yugoslav trade provided no political strings were attached.

The Department has recently given careful consideration to a Yugoslav request for the approval of export licenses for oil well drilling equipment, but is unable to meet Yugoslav wishes in this respect, since such equipment is on the list of prohibited exports to Eastern Europe. Nonetheless, Mr. Lovett has approved the suggestion that we tell the Yugoslavs that while we cannot take favorable action on the drilling rigs, we would be glad to see what we can do to expedite arid if possible obtain favorable action on items for which export license applications have been made, if they will give us a list of the items involved.

In addition, EUR’s recommendation to the Secretary prior to his departure for Paris, and to Mr. Lovett before he saw the Yugoslav Ambassador on November 3,³ was that if opportune reference was made by the Yugoslavs to US-Yugoslav political or economic relations, we should not overlook such an opportunity to suggest some degree of receptivity on our part. Consequently, it was suggested that if such an occasion arose, it might be pointed out that the US position in respect to the establishment of healthy and peaceful conditions throughout the world is well known, and that the US Government would be pleased to consider carefully any Yugoslav proposals or suggestions relative to Yugoslav-US relations which might give promise of contributing to that end.

recommendation⁴

It is recommended that:

(a) Consideration be given to the desirability of inserting, just prior to the section headed “Recommendation” in the June 30 paper, an additional Point 4 somewhat as follows:

“4. The Line which should be adhered to by representatives of the Department in any discussions with Yugoslav officials who have on their initiative brought up the subject of US-Yugoslav political or economic relations should be substantially as follows:

‘The US position in respect to the establishment of healthy and peaceful conditions throughout the world is well known, and the US Government would be pleased to consider carefully any Yugoslav proposals or suggestions relative to Yugoslav-US relations which might give promise of contributing to that end.’”

(b) Belgrade be informed by cable, and other Field offices receiving the Department’s circular telegram of June 30, 1948, which transmitted the “Conclusions” reached in S/P’s June 30 paper, be informed by airgram, of the foregoing.⁵

1. The reference here is to Policy Planning Staff Paper 35, June 30, p. 1079.
2. The reference here is presumably to paragraph 2 of the “Conclusions” of document PPS 35, p. 1080.
3. Yugoslav Ambassador Kosanovic paid a courtesy call on Under Secretary Lovett on November 3 just prior to returning to Belgrade for consultation. No record of the conversation has been found.

4. In a memorandum of November 30 to Hickerson, not printed, Kennan expressed entire agreement with the recommendations contained in this memorandum. Kennan saw no need to await any formal action by the Policy Planning Staff nor did he regard it as desirable to concern the National Security Council with the matter (860H.00/11–3048).

   Hickerson’s memorandum was referred on December 2 to Under Secretary Lovett by whom it was duly approved.

5. The paragraphs quoted here were transmitted to Belgrade in telegram 647, December 7, and to all diplomatic posts in a circular airgram of December 8, 8:35 a. m., neither printed (860H.00/12–748 and 860H.00/12–848).