741.60H/11–1347: Telegram
The Chargé in the United Kingdom (Gallman) to the Secretary of State
6016. Belgrade’s 2208 November 11 to Department, repeated Moscow as 72. We have closely studied Belgrade’s observations regarding a possible shift in British policy towards the Tito regime. Belgrade says that this shift in British policy may date from Noel Baker’s visit to Yugoslavia last spring. This would coincide with a change in the personnel of the Southern Department in Foreign Office. Prior to this time, for last 6 years, that department has been run by conventionally minded British diplomats; however last spring Wallinger became head of department and Adam Watson his chief assistant. (The latter is well known to American FSOs who have been in Moscow during past 3 years where Watson was stationed.)
We have not and do not detect any softening of British policy vis-á-vis Yugoslavia since these men came to Foreign Office. They are both well aware of Soviet machinations (Wallinger was previously in China), and both extremely pro-American and the whole department has been invigorated by their energetic and clearly thought out activities. The Department will recall that the Embassy reported in its 3318 June 17 to Department, repeated Belgrade as 16 and Moscow as 217,1 the skepticism expressed by them when the Yugoslavs were so unexpectedly agreeable to Noel-Baker. Supervising the Southern Department is Christopher Warner who also supervises Eastern Europe including Soviet Union. We have not detected any change of line vis-à-vis Yugoslavia in him.
British Foreign Office does not show any signs of appeasing Yugoslavia and its present views re the FTT are based on the theory that FTT would never work, that the governor would be impotent, that strikes and infiltrations would result in eventual Yugoslavia annexation, and that it would, therefore, be impractical and against the interests of the UK and US to have FTT set up and functioning. It believes there is much more chance of the actual city of Trieste remaining in western orbit if US–UK zone is under Italian sovereignty. It feels that Yugoslav zone is already virtually annexed to Yugoslavia.
Foreign Office officials are under no illusions about Yugoslavia and they agree with Belgrade’s characterization of that country as an aggressive junior partner in the Soviet hegemony.
[Page 852]It is true that British Government is seeking trade with continental countries. This is partially explained by the necessity of British buying food from soft currency areas, but these trade negotiations should not be considered as any sign of appeasement towards Yugoslavia, Hungary, Russia, or any other continental country in Soviet orbit with which Britain has conducted or is conducting trade negotiations.
There is truth in the assumption that we must carry the burden, as Belgrade indicates, but in our view Britain is willing to help us as much as she can. In this connection the collaboration and determination of British Foreign Office that implementation of peace treaties with satellites should be a joint policy between US and UK must be borne in mind.2
Sent Department 6016; repeated Belgrade 35; repeated Moscow 320.