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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON February 13, 1950 T SUMMARY OF TELEGRAMS TRIESTE We have advised Embassy Rome that we intend to inform the UK of our agreement that a settlement of the Trieste problem is desirable, and that we feel we should in conjunc- tion with the British work out a procedure for implementation of any Trieste agreement satisfactory to us which Italy and Yugoslavia may reach. We will request British opinion on a procedure which would establish an interim de facto regime in Trieste to continue until the Peace Treaty is amended and SC responsibility for Trieste is terminated, and we will be prepared to consider maintenance of troops in Trieste sufficient to produce the desired psychological effect. We have authorized our Embassy to inform the Italian government of our satisfaction with indications that direct Italian-Yugoslav discussions on Trieste may be initiated spontaneously, and of our conviction that a settlement would be in the interest of both parties. The possibil- ity of successful outcome of these discussions we believe would be enhanced by an Italian willingness to make small compromises in the Yugoslav zone on ethnic grounds. YUGOSLAVIA Our Embassy in Belgrade reports the belief of Yugo- slav officials that the USSR is beginning to prepare for a political set-back in the Far East, as a result of the develop- ment of Titoism in China, and that consequently the Soviets will make every effort to win a compensating victory in western Europe or the Balkans during 1950. The Yugoslav Deputy Foreign Minister thinks that Soviet efforts will be directed towards France, Italy and possibly Germany, since the USSR, although it would prefer to liqui- date the Tito regime, is aware it cannot do so short of outright armed attack. Our Embassy comments that the Yugoslav views are based partly on the belief that Sino-Soviet difficulties are increasing and partly on wishful thinking. KASHMIR DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 S ECRET By PEB NLT, Date 5-13-85