Memorandum, State Department Summary of Telegrams

NLT(Noval Aidel238 OFFICE OF THE SECRETARY OF STATE WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 September 6, 1951 State Dept. Guidelines, March 6, 1982 By DEB TOP SECRET NLT, Date 9-5-85 SUMMARY OF TELEGRAMS YUGOSLAVIA Embassy Belgrade, on the Department's instructions, has approached the Yugoslav Foreign Ministry concern- ing the resumption of Italo-Yugoslav negotiations for a Trieste settlement. Counsellor Beam went over with Assistant Foreign Minister Mates the Secre- tary's recent statement to the Yugoslav Ambassador here on the same subject, and re-emphasized the Department's opinion that the settlement should be based on such ethnical adjustments or exchanges as might be necessary to establish a practicable frontier. Mates made extensive notes of the con- versation with Beam and promised to pass this information to Marshall Tito immediately. Mates then explained the Yugoslav position as follows: Yugoslavia agrees in principle to a revision of the Italian treaty which would bring about a real settlement of the Italo-Yugoslav dispute and thus kill off this danger to Western cooperation. Yugoslavia understands that there would have to be a "1give and take" in the negotiations and it would not approach the negotiations with an inflexible position. Mates warned Beam, however, that he was stating this for US information only and could not agree to its being communicated to the Italian Government, since the latter might interpret it as a sign of eagerness and consequently raise its own demands. Mates also informed Beam that last spring negotiations had been begun between Italy and Yugoslavia on a diplomatic level but every time progress had been made the Italians withdrew their concessions. Mates said that his government was sincerely desirous of settling the issue, but that unfortunately the de Gasperi Go ernment had let itself be drawn into competition with the Italian Commun- ists who, since the Yugoslav break with the Kremlin, had been the most ardent opponents of any settlement of the issue, and had played the extreme nationalist line. INDIA-PAKISTAN Dr. Graham, the UN mediator in the India-Pakistan dispute, told Ambassador Henderson in New Delhi in utmost confidence yesterday that after a long talk with Nehru the day before he has almost concluded that it is useless for his mission to remain any TOP SECRET