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OCR Page 1 of 10October 25, 1950
SECRET
YUGOSLAVIA
Problem
To work out, under existing statutory authority, the means for
financing emergency food exports to reach Yugoslavia prior to January 1,
and therefore to be shipped from the United States prior to mid-November.
Discussion
The potential apparent sources of funds are principally the ECA, the
Commodity Credit Corporation, the Export-Import Bank, the Mutual Defense
Assistance Program, and the Department of Defense.
The whole of the emergency food program for Yugoslavia could theoretically
be undertaken either through MDAP or ECA. However, in the case of MDAP this
would require especially that Yugoslavia agree to sign a bilateral agreement
with the U.S. on MDAP. Ambassador Allen has stated that we have about a
fifty-fifty chance of getting the Yugoslav Government to sign an MDAP
bilateral and the matter is now being explored on a tentative basis with
Yugoslav officials. In the case of ECA, Yugoslavia would have to agree to
sign a bilateral agreement under the Economic Cooperation Act and to apply
for membership in OEEC and be accepted by the other members.
Tito has stated quite definitely within recent weeks that it would be
impossible for him, for internal political reasons, to participate directly
in ERP. Yugoslav participation would be equally undesirable from a U. S.
policy point of view, not to speak of the improbability that the membership
of OEEC could be induced to accept communist Yugoslavia into the group.
The U.S. is endeavoring to make short-term emergency food relief immediately
DECLASSIFIED
E.O. 12065, Sec. 3-402
State Dept. Guideline, June 12 1979
By NLT
NARS, Date 10.4+2
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