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the OFFICE OF THE SECRETARY OF STATE DECLASSIFIED 3-402 WASHINGTON E.O. 12065, Guidelines, Sec. March 6, 1982 P 5 January 6, 1953 State By Dept. DET NLT, Date 9-11-8 SECRET SECURITY IFORMATON SUMMARY OF TELEGRAMS YUGOSLAVIA We expect to inform the Yugoslav Government on January 7 of our decision to make available $20 million for extraordinary drought assistance through an ad- justment in our previous aid program. In informing Marshal Tito and the Yugoslav Ambassador in Nashington of this supplemental aid to relieve the serious drought situation in their country, we plan to deliver an aide memoire discussing various problems of Yugoslav foreign relations. We will point out that the US has not endeavored to exert pressure or to impose political conditions to any aid -- military, economic or financial -- which it has extended to Yugoslavia or any other government. Nevertheless, we feel impelled under the circumstances to call Yugoslavia's attention to certain factors which are making it increasingly difficult for the US to pursue its policy of developing closer relations with Yugoslavia. In this connection, we will refer to frequent recent public utterances by high Yugoslav officials, including Marshal Tito, adversely criticizing US policy toward their country and by so doing attempting in effect to exert pressure on the US to alter these policies, particularly in the economic sphere. Such criticism is not conducive to furtherance of good relations and was being sounded at the very time we were working out the difficult financial rearrange- ments to make the additional grant aid available. Second, in line with our conviction of the necessity to create a strong collective security system against Soviet aggression in all parts of the world, including southeastern Europe, we believe an Italian-Yugoslav rapprochement is indispensable. We therefore will express in- creasing concern over the growing friction between Yugoslavia and Italy, our NATO ally, which has recently become so apparent. Finally, we will point out our sincere endeavor and desire to im- prove US-Yugoslav relations, adding that such cooperation must be mutual. The emergency drought aid has, we will add, been made available in this spirit. We will also say that our expression of views which will be kept secret and not discussed with other governments. SEGRET SECURITY INFORMATION