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United States Department of State / Foreign relations of the United States, 1948. Eastern Europe; The Soviet Union
(1948)

Yugoslavia,   pp. 1054-1118 PDF (25.0 MB)


Page 1059


The purpose of this action was to protect these funds from the invad-
ing Germans. In 1944 the Government-in-exile, which was recognized
by the US, furnished documents ratifying this transfer from the
Yugoslav National Bank to the Yugoslav Government and ratified
also all transactions consummated pursuant thereto.
  The Yugoslav Government funds in this account in the Federal
Reserve Bank have, under certification of the Secretary of State and
by license of the Treasury Department, been subject to certain with-
drawals by the Yugoslav Government-in-exile and subsequently in
1945 by its successor the National Provisional Government of Yugo-
slavia. Between 1942 and 1944 the Yugoslav Government-in-exile was
authorized to operate the account freely under a blanket license. (19.0
million were withdrawn in this period). Since 1944 specific licenses
have been issued for specific transactions totalling 1.7 million dollars
but, although Tito's present authorities have made numerous efforts
to obtain a general Treasury license, such a general license has been
denied. We have offered to unblock sufficient funds from this account
for Yugoslavia to pay its subscription to the International Bank and
Fund but the Yugoslavs have not availed themselves of such a limited
authorization. The amount now in this account is reported to be ap-
proximately $47,000,000, 46.8 of it in gold.
  Concerning Yugoslav private assets, the Department has no inten-
tion of using the private assets as a bargaining weapon in connection
with the settlement of US claims against Yugoslavia. However, it has
been the invariable policy of the Treasury 'Department to make gen-
eral agreements or to unblock simultaneously all assets of specified
foreign countries and consequently the Yugoslav private assets have
remained blocked pending the outcome of the negotiations with regard
to US claims and the Yugoslav Government assets. It is impossible to
estimate accurately the amount of the private assets so blocked. Under
the 1941 census there were'$13,800,000, but accretions by way of divi-
dends, interests, etc., and depletions by way of licenses (for example,
up to $1,000 per month can be withdrawn by individuals) may have
materially altered the 1941 figures.
2. US claibs agaist Yugoslavia.
  a) US Government claims against Yugoslavia are for lend-lease,
pre-UNRRA US military civilian relief (known as Plan A), the loss
of 2 US Army airplanes a confiscated jeep, etc. The US lend-lease
outlay to Yugoslav amounted to 32 million dollars approximately,
and for civilian relief (Plan A) approximately 6 million dollars. The
airplanes have been estimated by the Army Department at 180 thou-
sand dollars and the jeep at $2,000.
  b) US private claims against Yugoslavia arise as a result of Yugo-
1059
YUGOSLAVIA'


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