Memorandum of Telephone Conversation with Secretary of State Dean Acheson and William C. Foster
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October 26, 1950
MEMORANDUM OF TELEPHONE CONVERSATION
Participants: Mr. Foster
Mr. Acheson
Mr. Foster telephoned the Secretary to express his concern over
the way in which the matter of aid for Yugoslavia is turning out.
Mr. Foster said he was afraid that ECA was going to be the single
contributor to the program of aid, wheress at the meeting previously
held in the Secretary's office on October 18, it had seemed that the
burden would be carried by several agencies.
The Secretary said he thought Mr. Foster was misinformed.
The program, as he understood it, was that ECA would take care of
175,000 tons of wheat; the Ex-Im Bank will take care of barley and
the freight to an amount of somewhat under $4,000,000. Agriculture
has reduced its various prices to a point which does not strain them.
" are ready to put in up to $4,000,000 a month to a total of
$16,000,000 to take care of other items. This latter commitment
depends upon whether Tito will sign a very much watered down agreement
under MDAP, which Ambassador Allen thinks there is a 50-50 chance
of his doing. If Tito will not sign a military agreement, then the only
thing thát might be done would be to have Secretary Brannan take care
of these things from Bection 32 funds.
Mr. Foster said there was one point which had not been
mentioned in connection with the possibility that some deal might
be worked out to have flour shipped from Italy, and that was that our
own millers, who are a powerful and vocal group, would object if they
were not brought in to some extent. If it could be worked out in some
way that they could do some of the milling, their objection might be
minimized. The Secretary thought that this would depend on our
getting some money from Congress, with which Mr. Foster agreed,
suggesting that this be one of the points in asking for funds.
DECLASSIFIED
E.O. 12065, Sec. 3-402
State Dept. Guideline, June 12, 1979
Kn. of U.A. 1950 m IPP.
By NLT HC NARS,
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