Telegram from Julius Holmes to Secretary of State Dean Acheson, Number 1058

NLT (PSF-SUBJ.) 288 INCOMING TELEGRAM Department of State copy 1 of 2 TELEGRAPH BRANCH 872 26-22 X TOP SECRET Action Control: 14017 Rec'd: August 27, 1951 EUR FROM: London 3:29 p.m. Info TO: Secretary of State SS G NO: 1058, August 27, 4 p.m. SISA DCR PRIORITY. SENT DEPT 1058, MOSCOW 24, BELGRADE 42 (MOSCOW AND BELGRADE EYES ONLY FOR AMB). PERSONAL FOR PRES AND SECY FROM HARRIMAN. NO (RPT NO) DIST EXCEPT AS DIRECTED BY SECY'S OFFICE. I spent some six hours with Tito on Saturday Aug 25. At luncheon we had interesting roundtable talk and after lunch I had long talk with Tito personally. Amb Allen and Gen Landry were present and also Kardeli, Min of FONAFFS, Kidric, Min for Econ Affs, Rankovic, Min of Interior, and Vilfan, Dep Min for FONAFFS, who translated. Tito and Kidric out- lined their priority requirements which all centered around mil equipment and raw materials and other industrial equip ment to increase domestic mil production. I expressed our desire to be of assistance but underlined shortages which now (rpt now) exist. I pointed out however that at a later date required equipment might be in better supply. NARA We then had a gen talk about Kremlin intentions. Tito ex- pressed his opinion that Stalin did not (rpt not) intend to become involved in a gen war but that real danger existed from miscalculation of Western reaction, particularly that of US, to local aggression by Sovs. He had of course directly in mind aggression by satellites against Yugo. He volunteered that he cld not (rpt not) join North Atlantic Treaty because of domestic polit considerations but that he cld make public reciprocal commitments with US and/or other countries. In other words he was prepared to state publicly that he wld consider an attack on West Ger as involving Yugo, providing we wld state that an attack on Yugo affected our security. In any event he said he was prepared to engage in secret detailed strategic talks and to invite Gen Collins to Yugo for such purpose. He and his associates showed determination to do everything within their power to increase their mil strength as the first requirement to "survival". They were concerned however (rpt however) over the balance of payments problem and the ability to obtain the needed imports tr sustain the mil effort. Tito indicated TOP SECRET REPRODUCTION OF THIS MESSAGE IS PROHIBITED