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OFFICE OF THE SECRETARY OF STATE WASHINGTON State the Dept. E.O. 12065, Ivvidalines, NLT, Date. 4-10-8 8 Sec. March 3-402 6, 1982 August 20, 1952 BY DCB SECRET SECURITY INF ORMA TION SUMMARY OF TELEGRAMS Trieste The American, British and French ambassadors to Belgrade delivered to Marshal Tito on Monday the tripartite aide-memoire on Trieste which urges the resumption of Italo-Yugoslav negotiations and a settlement of the Trieste problem. The three ambassadors also made an oral statement that the three governments would not support further territorial claims of either Italy or Yugoslavia if a Trieste settlement were reached. Tito's immediate reaction to the aide-memoire was one of undisguised irritation and resentment. He said that the aide-memoire intimated that it was Yugoslavia's fault that no Trieste settlement had been reached. He asked why no account had been taken of several Yugoslav proposals for a settlement and why Yugosla- via alone was continually being asked to make concessions. Our ambassadors pointed out that previous Yugoslav positions had been taken into account but that it had been all the more surprising when the Yugoslav ambassador in London recently indicated a retrenchment in Yugoslavia's position. During an informal conversation at lunch which followed the presentation of the aide-memoire, Tito reviewed the Italo-Yugoslav negotiations in a more relaxed atmosphere, and emphasized Yugoslavia's desire to find a solution and its readiness to accept the ethnic principle "even though the city and port of Trieste itself was of considerable economic importance to Slovenia and of little economic importance to Italy". He discussed various aspects of possible "ethnic" settlements in some detail, but he emphasized that his remarks were not to be construed as definitive statements of the Yugoslav position which would be forthcoming, after consul- tations with his ministers, at the proper time. Iran Prime Minister Mosadeq yesterday sent for Ambassador Henderson's Persian assistant, Saleh, who usually accompanies Henderson when he calls on Mosadeq. Mosadeq was apparently somewhat stronger than on the previous day but in such a highly nervous and excited condition that Saleh was afraid SECRET SECURITY INF ORMA TION