Memorandum from Acting Secretary of State Joseph Grew to President Harry S. Truman, Current Foreign Developments

TOP SECRET DECLASSIFIED E:8: 11692, See, @(E) and 5(D) or (E) Bept. 8f State letter, Aug. 10, 1972 By Date 6.26.25 By June 25, 1945 MEMORANDUM FOR THE PRESIDENT Subject: Current Foreim Developments Venezia Giulia Still Unsatisfactory. An analysis of the militery agreement on Venezia Giulia which General Morgen signed with the Yugoslavs shows that it is very unsatisfactory in many ways. Despite specific instructions from AFHQ he signed this docu- ment without first submitting its text to SAC for approval. It is full of loopholes of which the Yugo- slavs will take full advantage. The appendix on war booty is not even a.s good as the one SAC had previously questioned, as it left out the statement that if there is any dispute as to the disposal of war booty SAC's decision would be final. Kirk feels we are going to have a lot of trouble over this. SAC had specifically informed Morgan not to use terms like "joint economic committee" and "joint operat- ing committee" since the Yugoslavs will have no authority in SAC's area of Venezia Giulia. Morgan lamely explained he hed left these in because the Yugoslavs *became very suspicious" when he tried to leave them out. Though SAC had said that 2,000 troops in his area would be concen- trated in one place, Morgan has given them the right to transit our zone to enter the Yugoslav zone. Morgan did not even attempt to get rights on the railway between Pola and Trieste, saying that transit rishts on the highway were "more than adequate". The British "NATIONAL ARCHIVES A COROS SERVICE** benefits