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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Yugoslavia,   pp. 584-595 ff. PDF (4.3 MB)

Page 590

  If our exports to the United States should rise to 120 million dinars,
the import of controlled articles would reach a total of 100% of the
import for the year 1935. Naturally, if this percentage should be
exceeded the import would be larger than in 1935.
  As will be seen, this system also excludes compensation and is now
applied to England with very satisfactory results for both sides.
The general standard of exchange has greatly increased.
Memorandum by the Assistant Chief of the Division of Near Eastern
                        Affairs (Barnes)
                                     [WASHINGTON,] June 4, 1937.
  The Yugoslav Minister called at the Division this morning to leave
his Government's reply to our latest note on Yugoslavia's war-time
indebtedness to the United States.10 The opportunity was taken to
read to the Minister the attached memorandum outlining our position
with respect to the trade proposals communicated by his note of April
6, 1937. The Minister had previously been advised orally that neither
of his Government's two proposals was sufficiently in harmony with
our trade policy as to make it likely that we could give a favorable
reply with respect to either.
  The discussion which followed the reading of the memorandum
indicated that the Minister would comment favorably to his Govern-
ment upon its contents. It was clear to the Minister that the memo-
randum contained a counter proposal to those of his Government.
He was supplied with a copy of the document and said that he would
send it to Belgrade by mail with his comment on June 9.
  It was explained orally to the Minister that if the year 1935 as a
base year seemed disadvantageous from the Yugoslav point of view the
Department would probably have no objection to the choice of a more
representative period for the application of the formula suggested in
paragraph one of the memorandum.
       Memorandum Conceining Yugoskav Trade Proposals
                                                   JUrN 4, 1937.
  (1) This Government cannot accept any restrictions on Yugoslav
imports of American goods which do not conform broadly to the
principles of equality of treatment outlined in the note which was
handed to the Yugoslav Minister on December 17, 1936.10a This Gov-
10 Department of State. Press Relea.ee8, June 12, 1937. p. 407.
lea Foreign Relations, 1936, vol. II, p. 825.

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