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NLT (Naval Aide) 382 OFFICE OF THE SECRETARY OF STATE WASHINGTON Dept. 6, 1982 E.O. State By DEB NLT, Date 9-10 August 14, 1952 TOP SEGRET SECURITY INFORMATION SUMMARY OF TELEGRAMS TRIESTE: The British, the French and ourselves have agreed on the lines of a tripartite approach to the Italian and Yugoslav Governments urging them to resume negotiations looking toward a settlement of the Trieste issue. The notes will express the view that the best hope for a solution of the problem lies in direct talks between the two parties. We will suggest to the Italians that they might best contribute to the reestablishment of an atmosphere of confidence if, in any secret approach to the Yugoslav Government regarding the renewal of negotiations, they would state that they are pre. pared to take a continuous ethnic line settlement as a basis of negotiations. We will also suggest that the Italian Government avoid placing any conditions on such negotiations with reference to the action of the military government of Zone B (the Yugoslav part) since this might cause the Yugoslavs to request the suspen- sion of the London agreement of last spring which gives the Italians a major role in the administration of Zone A. Our note to the Yugoslavs will express our regret that they have apparently stiffened their terms for a settlement in recent weeks. It will point out that an early settlement of the problem would facilitate the strengthening of defensive arrange- - ments for each country, and it will urge the need for making reasonable concessions and for negotiating on the basis of a con- tinuous ethnic line. Our ambassadors in Belgrade will also have the discretion to add that if a mutually satisfactory settle- ment is reached the three governments would be prepared to state publicly that they consider that no territorial issue exists between Italy and Yugoslavia and that they would not support any claims of either country to territory assigned to the other by Italian peace treaty or by the settlement itself. IRAN: The British Foreign Office has informed us of the content of two telegrams it has just des- patched to the British Charge d'Affaires in Tehran, Mr. Middleton. The first telegram instructs Middleton to see Mosadeq and endeavor TOP SECRET SECURITY INFORMATLON