Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Yugoslavia Vladimir Popovic, Dr. Mirko Bruno, and John C. Campbell

- SECURITY INFORMATION $15°191 DEPARTMENT OF STATE 118 225 Memorandum of Conversation DATE: July 17, 1952 SUBJECT: Economic Aid to Yugoslavia PARTICIPANTS: The Secretary Mr. Vladimir Popovic, Yugoslav Ambassador Mr. Mirko Bruner, First Secretary, Yugoslav Embassy Mr. John C. Campbell, EE COPIES TO: s/s (2) American Embassy, Belgrade EUR - Messrs Perkins and Bonbright American Embassy, London E - Mr. Thorp American Embassy, Paris EE - Mr. Barbour u. s. GOVERNMENT PRINTING OFFICE 16-61120-1 During a call made at his request, the Yugoslav Ambassador referred to the aide-memoire on tripartite economic aid presented to his government on July 10. He said that his government was astonished to note the severe criticism of Yugoslavia's efforts in the past year in the economic field and the references to limitations on Yugoslav action in the future demanded by the three governments in connection with their proposed aid program. He stated that the first reaction of the Yugoslav Government was to reject the aide-memoire; however, they were still considering it and he did not know what the final position would be. By way of more detailed criticism of the document he made specific objection to references to Yugoslavia's investment policy, to the requirement that Yugoslavia should have the approval of the three governments before contracting any loans, and to the statement that future aid, if any, would be progressively reduced. He said that Yugoslavia had done everything possible to balance its payments and had undertaken many internal reforms to this end, and accordingly resented the allegation that it had been delinquent in this regard. He characterized the aide-memoire as self-contradictory and as also not consistent with the US-Yugoslav economic aid agreement of January 8, 1952 or with the relationship of confidence which had been created between the United States and Yugoslav Governments. DECLASSIFIED The Ambassador E. O. 11652, Sec. 3(E) and S(D) or (E) Depr. of State letter, <02677 By NLT- H NARS Date/129.76 - SECURITY INFORMATION