U.S.-JUGOSLAV AGREEMENT

Press, Volume LXXXIV, Issue 25552, 21 July 1948, Page 5

U.S.-JUGOSLAV AGREEMENT

FROZEN GOLD FREED MAY BE USED TO BUY GOODS FROM WEST (N.Z. Press Association—Copyright) (Rec. 8 p.m.) WASHINGTON, July 19. The United States and Jugoslavia today signed an agreement by which the United States frees 47,000,000 dollars’ worth of gold and other Jugoslav assets frozen since the war and Jugoslavia agrees to pay 17,000,000 dollars in American currency in settlement of United States claims and about 900.000 dollars in Jugoslav currency in settlement of its lend-lease account. The 17,000,000 dollars pay for American property nationalised by Marshal Tito’s Government, for two American aeroplanes shot down nearly two years ago, and for the loss of one American jeep captured about the same time. Jugoslavia has already indemnified the dead American airmen’s families. The 900,000 dollars will be used for building consulates and other American structures in Jugoslavia. In addition to the 47,000,000 dollars in gold, the United States frees about 220.000 dollars in other Jugoslav Government assets and about 10,000,000 dollars belonging to Jugoslav private citizens. The gold was brought to America for safe keeping during the war.

Although recognising Marshal Tito’s Government the United States had refused to hand over the gold until Jugoslavia settled American claims against her. The United Press comments: “The settlement came as Marshal Tito faced a growing economic boycott by the rest of the Soviet bloc. Diplomats have reported that Jugoslavia, as a result of the boycott by Rumania and Albania, has approached Western oil interests in an effort to buy oil. Her freed assets would be useful for obtaining oil and other commodities." Jugoslavia has decided to withdraw from the Czechoslovak international film festival because “the management brutally offended our State and people by demanding the suspension of the Jugoslav liberation film ‘This People Will Live,’ which shows pictures of Marshal Tito.”