Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

750G.00/4–1254: Telegram

No. 183
The Ambassador in the United Kingdom (Aldrich) to the Embassy in Yugoslavia¹

top secret

London, April 12, 1954—7 p.m.

153. Limit distribution. From Dulles.² In absence Popovic, please communicate in conjunction with your British colleague who will receive similar instructions following message to acting Foreign Minister or highest available Yugoslav authority:

“Mr. Eden and I have taken the occasion of my visit to London to review the status of the negotiations on the settlement of the Trieste problem. We are extremely disturbed that after two and a half months of negotiations, at the last meeting the Yugoslav representative indicated there was little possibility of prompt conclusion of the present phase of the negotiations and the beginning of discussions with the Italian Government. We are particularly disappointed that at the last meeting subjects were reopened on which it was thought understanding had been reached.

I am bound to point out that the longer the discussions with Italy are delayed, the more difficult it will be to secure the agreement of Italy to the proposed settlement. Mr. Eden and I consider this continued delay will seriously jeopardize possibilities of a solution and urgently hope that the present phase of the discussions be promptly concluded in order that we may open discussions with the Italian Government with a view to arriving at an agreed solution at the earliest possible date.”

While it is not desired that the Ambassadors in Belgrade get involved in the negotiations, if questioned as to what is meant by reopening subjects, they might point out that Yugoslav Foreign Minister had agreed to accept the offer of the good offices of the US and UK Governments to endeavor to facilitate settlement of financial questions outstanding between Yugoslavia and Italy. Yugoslav representative at London talks has now taken position that lump sum settlement must be agreed upon simultaneously with the solution of the Trieste problem, thereby making the solution of Trieste problem contingent upon settlement of reparations and other financial questions. Moreover, Yugoslav representative had earlier indicated steps which Yugoslav Government considered necessary before it could agree to assumption of administration of Zone A by Italian Government. In case of minorities, he had stated that it would be sufficient for two governments to agree in principle to negotiate on a reciprocal basis a minorities statute covering certain subjects. Yugoslav position now appears to be that there must be two different statutes and that they must actually be completed before US and UK Governments could relinquish administration of Zone A.

These and other positions which Yugoslav Government have adopted appear to indicate an unwillingness to bring London discussions to conclusion. Believe Embassy is sufficiently familiar our position on other points to handle any discussion but suggest in particular that if territorial issue comes up, they should insist firmly upon enlarging area to go to Italy to include San Servola.³

Aldrich

1. Repeated for information to Rome, Trieste, and to the Department of State with instructions to pass to Defense for Nash and Lemnitzer.
2. Dulles flew to London on Apr. 10 for brief talks with Eden. In telegram 4520 from London, Apr. 13, Thompson reported that he and Harrison had attended a meeting between Dulles and Eden regarding Trieste. According to Thompson, there appeared to be general agreement that the two countries should continue their effort along the lines already agreed upon and that they should insist upon the inclusion of San Servola in the area transferred to Italy. It was also agreed at this meeting that they could not insist upon Italian acceptance of international administration of the free port. Eden said that he wished to make clear that any additional British economic aid was contingent on getting a solution of the Trieste problem. (750G.00/4–1354) Dulles flew from London to Paris the evening of Apr. 14 for brief talks with Foreign Minister Bidault before returning to the United States on Apr. 14.
3. The letter from Eden and Dulles was delivered to Acting Foreign Minister Bebler the evening of Apr. 13 by Wallner and the Counselor of the British Embassy in Belgrade. The discussion which took place at this time was described in telegram 1117 from Belgrade, Apr. 13, summarized in footnote 5, infra.