Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Yugoslavia Sava Kosanovich, and Mr. Campbell

CONFIDENTIAL 002772 DEPARTMENT 62$ 177 Memorandum of Conversation DATE: July 1, 1949 SUBJECT: PARTICIPANTS: Sava N. Kosanovic, Yugoslav Ambassador The Secretary Mr. Campbell - SE & THEIR COPIES TO: EUR CERT ARCHIVES AND NEA country ITP 1-1493 The Ambassador opened the conversation by saying that he was leaving the next day for Belgrade and wished to pay a courtesy call. He said that he had not been home since the previous November, intimating that this trip was a matter of routine consultation. Ambassador Kosanovic said that he wished to express his appreciation of what we had done recently for the improve- ment of economic relations between the two countries. I mentioned that US-Yugoslav trade had increased considerably in the past few months as compared with last year. He said that he was gratified at this increase, mentioning that Tugoslavia's commercial relations with Western countries were now of particular importance. I asked him to what extent trade had fallen off with countries of the Eastern bloc. He replied that it had fallen off very much, Ozechoslovakia and Hungary having stopped all trade and the USSR having cut its trade with Yugoslavia by sewen-eighths. He said that in this situation the Yugoslav Government was especially anxious for expanding economic relations with the West. I mentioned that I had talked recently with Ambassador Cannon in Paris. He took the occasion to voice the opinion that Ambassador Cannon had done a great deal to improve relations DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, 7-73-25 Bay NLT- H NARS Date 422.76 CONFIDENTIAL