Memorandum of Telephone Conversation with Secretary of State Dean Acheson and William C. Foster

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365 coof 295 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,