Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Yugoslavia Sava Kosanovich, Dean Rusk, and Mr. Campbell
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OCR Page 1 of 5241 003152
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DEPARTMENT OF STATE
SOIRED
E
16.22
Sec. 3(E) and S(D) or (E)
P of State letter, A68.37-1973 12-23-25
Memorandum of Conversation
conf
by NLT. HIG 2 NARS Date 14-2726
DATE: August 16, 1949
SECRET
SUBJECT:
PARTICIPANTS:
The Yugoslav Ambassador, Sava Kosanovich;
The Secretary; Mr. Rusk; Mr . Campbell, SE.
'NATIONAL
ARCHIVES RECOROS AND
=
COPIES TO:
EUR - Mr. Perkins
NEA - Mr. McGhee
E - Mr. Thorp
ITP
OFD
ED
SE
Amembassy, Belgrade
1-1493
Ambassador Kosanovich opened his conversation by
saying that on his recent trip to Yugoslavia he had
talked with Tito and Kardelj and with Ambassador Cannon,
and thought that the Secretary might wish to ask him
some questions.
The Secretary asked for information on the general
economic situation of Yugoslavia at present. The Am-
bassador said that the situation was "stabilized" but
confirmed that the need for loans was immediate and
urgent. He referred to the cutting off of trade from
other countries of Eastern Europe, saying that it was
now completely stopped except for the slight 'movement
of goods between Yugoslavie and the USSR under the
1949 trade agreement which had reduced trade to 1/8
of that of 1948. He said that Yugoslavia faced a
difficult period of readjustment and required assistance
in the form of credits. The Secretary inquired about
the current Yugoslav negotiations with the British.
The Ambassador said that these were proceeding and
that Yugoslavia hoped that they would result in an
agreement on trade and on credits. The latter were
needed in addition to the loans which Yugoslavia hoped
to get
SEORE
Relations
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