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Vassil Zarev
Vassil Zarev
prior to 1955, almost allied with a communist government to achieve their goals.1 Despite the
American animosity to communism during the Cold War, the singular case of Yugoslavia
surpassed this ideological standoff and led to a unique scenario of friendly relations. Why? This
essay argues that the United States adapted its foreign policy to include communist Yugoslavia
in its support programs for the purpose of setting an example for, and promoting the separation
of, other USSR satellite states. American foreign policy progressed with the evolving
relationship between the US and Yugoslavia. Initially considered to be a rebel of the Eastern
communist bloc due to their expulsion from the Com-inform (Communist Information Bureau, a
Soviet led organization meant to co-ordinate communist parties in Eastern Europe), Yugoslavia’s
willingness to cooperate with the US led to their increased economic and military support. This
support culminated in an attempt led by the USA to foster allied relations with Yugoslavia
during the Com-inform blockade, a blockade initiated by the Soviet Union to subvert
Yugoslavia’s attempt to remain independent of the Com-inform itself. Finally, these relations
diminished once Yugoslavia began to rebuild its ties with eastern communist countries. This
essay will examine the reasons and goals behind US-Yugoslavian policy shifts, their
Prior to its separation from the Eastern bloc, Yugoslavia’s relations with western
countries and particularly America were hostile. Their animosity could be seen from as far back
as 1939, when America rejected Yugoslavia from military loans to help fight in the second
1 Vassil is a fourth-year student specializing in Historical Studies at the University of Toronto Mississauga
with an emphasis on Cold War history. His research focuses on the socio-political relationships between the United
States, the Soviet Union, and eastern communist countries that were influenced by the Communist Information
Bureau. The featured paper was written for a course taught by Matthieu Vallieres. Vassil wants to thank his family
and colleagues for their ongoing support in his academic pursuits, and most importantly the editor of Prandium for
taking time to assist in the paper’s publication.
World War due to their inability to pay off their debts.2 When communist uprisings began in
Yugoslavia, America actively supported the old monarchial regime of Peter II, and upon the
victory of the communists pledged that they would offer no more economic aid until Yugoslavia
even proposed a complete severance of diplomatic relations, and in 1946, an open conflict arose
in which Yugoslavia arrested and shot down several US planes allegedly flying over their
airspace.5 Following Yugoslavia’s quarrels with Russia the idea of developing positive relations
between the two countries began to emerge in the US in the late 1940’s. These ideas were,
however, widely unpopular and did not seem realistic within the existing political situation.6
In June 1948 Yugoslavia’s drive for independence from the remainder of the Soviet
controlled eastern communist countries and subsequently their refusal to co-operate with the
USSR culminated in its expulsion from the Com-inform. When Yugoslavia’s expulsion from the
Com-inform occurred, it came as a shock and was not instantaneously greeted with great
enthusiasm within America. While the US had acknowledged that the fractured relationship
between Yugoslavia’s leader Joseph Tito and the USSR’s leader Joseph Stalin could have been a
beneficial opportunity for dismantling the Eastern bloc, there were still many uncertainties with
regards to how Yugoslavia would react in the future and how the US should deal with the
2 Lorraine M. Lees, Keeping Tito Afloat: The United States, Yugoslavia, and the Cold War, (University
Park: Pennsylvania State University Press, 1997), 2.
3 Memorandum by the Acting Chief of the Division of Southern European Affairs (Reber) to the Secretary
of State,” in Foreign Relations of the United States, 24 November 1945, Europe, Volume V, Part 2, Rogers P.
Churchill et al. eds., (Washington: Government Printing Office, 1969), Document 1043.
4 “President Truman to King Peter II of Yugoslavia,” in Foreign Relations of the United States, 2 July
1945, Europe, Volume V, Churchill, Rogers P. et al. eds., (Washington: Government Printing Office, 1969),
Document 994.
5 Lees, Keeping Tito Afloat, 10-14.
6 Lees, Keeping Tito Afloat, 33-40.
situation.7 The Policy Planning Staff (PPS), who were charged with making the initial policy for
US relations with Yugoslavia, concluded that it was in the USA’s best interest to offer
Yugoslavia economic support as long as Yugoslavia was ready to develop “a loyal and co-
operative attitude” in dealings between the two nations.8 Lees argues that this was a “wait and
see” approach that was meant to be cautious testing of grounds, rather than an all-out attempt to
separate Yugoslavia from the Eastern bloc.9 Yugoslavia’s unwillingness to adopt a more liberal
form of government made this strategy ineffective, as the US government would not support
Yugoslavia without a return of investment; something the Yugoslavs were not ready to discuss.
To Yugoslavia, according to their ambassador any political favours would be shunned and not
negotiated.10
the USSR. In 1949, a Stalin led Comin-form blockade of Yugoslavia, had left the country in a
desperate position due to lack of sufficient resources for rebuilding their country and economic
systems following the devastation of World War II.11 Thus, a risk of surrender threatened the
USA’s plans for the Yugoslavs. The Yugoslav reaction was, as expected, to plead with the US
for expedited aid.12 This was met with more enthusiasm than prior engagements by the US, who
were now at risk of losing the rebellious satellite13. In response to questions of aid the PPS
suggested that the US should lessen its control over Yugoslavian exports even though potential
States, 10 January 1949, Eastern Europe; The Soviet Union, Volume V, Roger P. Churchill et. al eds., (Washington:
Government Printing Office, 1975), Document 519.
11 Lees, Keeping Tito Afloat, 51.
12 Lees, Keeping Tito Afloat, 56-64.
13 Ibid.,
co-operation between the two states was not plausible.14 Their conclusion rested on the idea that
Tito was “a vital weakness in Russia’s expansionist plans” and was a perfect example of the idea
that a communist state could survive outside of the Eastern bloc.15 This unrequited support for
Tito, despite the lack of reciprocity, was dubbed the “wedge strategy.” It was meant to encourage
deviation such as that of Yugoslavia’s from the satellite states using Tito’s example. By
maintaining Tito’s Yugoslavia in stable condition, the USA could show the benefits of separation
from the Eastern bloc while simultaneously damaging Russia’s reputation.16 Thus the National
Security Council (a forum of high ranking officials meant to aid the President of the United
States in matters of military significance and foreign policy) report NSC 18-2, which was
adapted into US foreign policy in 1950, became the first attempt for the US to maintain
economic ties with Yugoslavia without demands on Tito’s internal policies.17 This policy was
government fort oil rigs and gasoline.18 Only months later, Tito severed his support from
communist Greek rebellions – something which was indirectly requested by the US.19 Clearly,
both sides were in an ideal position to benefit from each other’s co-operation.
Council report, NSC 18-4, expanded the US “wedge” strategy toward Yugoslavia. The NSC
influenced policy suggested that while Yugoslavia could survive communist expansion in the
14 “Paper Prepared for the Under Secretary of State’s Meeting,” in Foreign Relations of the United States,
14 February 1949, Eastern Europe; The Soviet Union, Volume V, Slany, William Z. and Rogers P. Churchill eds.,
(Washington: Government Printing Office, 1975), Document 525.
15 Ibid.
16 Ibid.
17 “Memorandum by the Secretary of State to the Executive Secretary of the National Security Council
(Lay),” in Foreign Relations of the United States, 16 October 1950, Central and Eastern Europe; The Soviet Union,
Volume IV, William Z. Slany, Charles S. Sampson, and Rogers P. Churchill eds., (Washington: Government
Printing Office, 1980), Document 844.
18 Lees, Keeping Tito Afloat, 67.
19 “The Chargé in Yugoslavia (Reams) to the Secretary of State,” in Foreign Relations of the United States,
24 June 1949, Eastern Europe; The Soviet Union, Volume V, Slany, William Z. and Rogers P. Churchill eds.,
(Washington: Government Printing Office, 1975), Document 549.
war, it needed not only full economic support from the United States, but also full military
support.20 The US believed with such help, Tito would not only provide an example for other
The success of Yugoslavia at the time can be measured through the influence of
Yugoslav policy toward other communist countries such as China. During the same period of
increased US involvement in Yugoslav foreign relations, the US had also begun to invest in
some Sino- Yugoslav policies. The first such National Security Council led policy, NSC-34,
outlined the USA’s hopes for China to move in the same direction as Yugoslavia, and in 1949
through NSC48-2 the US, attempted to “exploit” through: “political, psychological, and
economic means, any rifts between the Chinese Communists and the USSR”.22 These policies
geared towards China coincided with the progression of US-Yugoslav relations and illustrated
the value that the United States placed on Yugoslavian independence. The US believed that the
progress made in Yugoslavia was already substantial enough to foster a larger split between the
USSR and other eastern communist countries, and was waiting for the opportune moment to
Despite this, they could not create a further split while danger continuously resided in the
food shortages nation-wide and an inevitable food crisis, Yugoslavia became more than ever in
desperate need of US aid, and, in the context of the ongoing Com-inform blockade, military
supplies.23 While the Yugoslavs did not directly assert their need for military assistance, a report
20 “Editorial Note,” in Foreign Relations of the United States, 1949, Eastern Europe; The Soviet Union,
Volume V, William Z. Slany and Rogers P. Churchill eds., (Washington: Government Printing Office, 1975),
Document 595.
21 “Memorandum of Conversation, by the Deputy Director, Office of European Affairs (Thompson),” in
Foreign Relations of the United States, 17 February 1949, Eastern Europe; The Soviet Union, Volume V, Slany,
William Z. and Rogers P. Churchill eds., (Washington: Government Printing Office, 1975), Document 529.
22 Beatrice Heuser, Western "Containment" Policies in the Cold War: the Yugoslav Case: 1948-1953,
more militant, and should be countered with the USA’s “political, economic, and military”
support.24 The USA’s concern over losing Yugoslavia had already led to aforementioned policy,
NSC-18-4, which stipulated that if there was an attack against Yugoslavia the US would
intervene indirectly through military support.25 Due to the policies directive which enforced aid
for Yugoslavia’s defensive security, Yugoslavia’s desperate situation, it’s inability to feed its
population and subsequently allocate resources for defensive organization, required the US to
provide any aid necessary for its political independence (both military and economic). Over the
following year, the US authorized a shipment of military supplies to be sent from the US to
Yugoslavia, provided them with over $100 million in economic support and emergency food
As Yugoslavia continued to struggle against the Soviet-led blockade, the US found new
ways of providing them with indirect assistance. By stressing humanitarian reasons but also
focusing on Yugoslavia’s vulnerability to Soviet occupation the United States were able to
secure for Yugoslavia substantial aid from the Export-Import Bank, the Economic Cooperative
Administration, and most importantly the Mutual Defence Assistance Program (MDAP).27 To
access such funds however Yugoslavia could not remain impartial, but instead had to forge
diplomatic ties with the US. In order to receive access to any funds the US requested a mutual
bilateral defence agreement between the two nations.28 After deliberations between Ambassador
Allen and the Yugoslavian deputy foreign minister Mates, an agreement was reached which
October 1950, Central and Eastern Europe; The Soviet Union, Volume IV, William Z. Slany, Charles S. Sampson,
and Rogers P. Churchill eds., (Washington: Government Printing Office, 1980), Document 847.
included rights for America to distribute goods sent to Yugoslavia, annual reports on use of
goods by Yugoslav governments, and an agreement that the goods be used in Yugoslavia alone.29
In return, Yugoslavia promised to provide raw materials to the US, and agreed to defend and
supply the US “reciprocal(ly)” if such a “deficiency in its own resources” should arise.30
Following the agreement, the United States sent out subsequent economic aid provisions to
Yugoslavia totalling in 38 million dollars.31 The political and economic situation of the time was
As the aid from the US increased, so did the willingness of Yugoslavia to co-operate with
the country. In the weeks after the military aid program, Tito proclaimed his support for the UN
against Soviet aggression, and supported the UN in their “united action” which promptly
ideologies rather than the democratic invasion of Korea (yet also filled with connotative
meaning).32 Yugoslavia also began to shift into internal policies guided by Western influence.
They began to release thousands of political prisoners, including the Archbishop Stepinac, who
was arrested at the start of the communist revolution against American wishes.33 Additionally,
Yugoslavia allowed for churches and religious practices to resume their services, removed
housing privileges of those who work in government, and slowly started to decentralize their
industries.34 These actions were significant in the context of Yugoslavian-US relations as they
marked an official departure from communist policies followed by the USSR and other eastern
29 “The Ambassador in Yugoslavia (Allen) to the Yugoslav Deputy Foreign Minister (Mates),” in Foreign
Relations of the United States, 20 November 1950, Central and Eastern Europe; The Soviet Union, Volume IV,
Slany, William Z., Charles S. Sampson, and Rogers P. Churchill eds., (Washington: Government Printing Office,
1980), Document 865.
30 Ibid.
31 Lees, Keeping Tito Afloat, 94.
32 “The Ambassador in Yugoslavia (Allen) to the Secretary of State,” in Foreign Relations of the United
States, 23 October 1950, Central and Eastern Europe; The Soviet Union, Volume IV, Slany, William Z., Charles S.
Sampson, and Rogers P. Churchill eds., (Washington: Government Printing Office, 1980), Document 846.
33 Lees, Keeping Tito Afloat, 91-92.
34 Lees, Keeping Tito Afloat, 91-92.
European communist countries, and subsequently an official social integration into the Western
sphere of influence At this time the two countries were at this time almost at their peak of
mutual relations.
However, by 1951 the Soviet threat had not ceded, and an invasion by the Soviet army
seemed imminent. Yugoslavia was weary of asking the US for direct large-scale military
assistance, due to the alleged military neutrality between the two states. They were worried that
such a level of military involvement would threaten their authority as a communist regime.
Despite this, Lees states that there were private discussions between the CIA and Yugoslavia
which eventually led to small shipments of military aid being sent out.35 As Yugoslavia
continued to hesitate asking for help, the US took matters into their own hands and shipped
surplus military goods to Yugoslavia.36 A couple of months later Truman adopted another
National Security Council report in which the US stated its intent to provide Yugoslavia with
complete military support, if war were to break out in the East.37 In Julу of 1951 Yugoslavia had
finally made a formal agreement and military supplies were quickly shipped overseas, with an
additional $30 million in economic support, and $60 million set aside for the following year.38
By the end of 1952, the United States were no longer Yugoslavia’s economic support; they were
During the next two years, Yugoslavia began to affiliate themselves with the remainder
of the Western World. Due to the looming USSR threat, Yugoslavia began to actively discuss
joint defences between themselves, Turkey, and Greece.39 This led to the hope that Yugoslavia
would fully shift allegiances to the Western World and join NATO. In 1952, The US joint-chief
possible”.40 The US had also begun to make contingent plans, despite Yugoslavia’s clear
opposition, to gradually “integrate” the former into NATO.41 Yugoslavia responded quickly with
their complete refusal to join NATO and condemned the US for taking advantage of
Yugoslavia’s situation.42 This crossroads was then unknowingly, the beginning of a degradation
of US-Yugoslav relations. The threat of the USSR blockade was diminishing, and Yugoslavia no
longer required much military assistance, they were decidedly against joining NATO, and their
1953. This sudden shift was a result of Eisenhower’s foreign policy, which alongside his political
strategies varied greatly from that of Truman. Eisenhower, a Republican, campaigned on a more
forceful “New Look” in foreign policy, and specifically applied this perspective to communist
directly into the Western world.44 To Eisenhower Yugoslavia would have to add to the defences
of the West for continued economic support, rather than serve its previous purpose in stagnantly
exploiting ideological weaknesses of the USSR (which by 1953 had lost interest in militantly
incorporating Yugoslavia back into its regime). Eisenhower also argued for a hard-line
negotiation strategy.45 Tito would have to join NATO, inspire other satellite movements, or
otherwise provide tangible political gains for the West in order to receive any further aid from
States, 25 September 1952, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII, Edited by Baehler,
David M. et al. eds., (Washington: Government Printing Office, 1988), Document 655.
43 Lees, Keeping Tito Afloat, 121-123.
44 Lees, Keeping Tito Afloat, 121-123.
45 Lees, Keeping Tito Afloat, 121-123.
the US.46 The new policies enacted by Eisenhower would be reminiscent of the initial policies
enacted by the PPS in 1948. There would have to be reciprocity between the two nations for
This new approach was problematic from the start. Stalin’s death in 1953, gave little time
for the Eisenhower administration to prepare the anticipated policies and implement them into
US-Yugoslav relations. While the CIA predicted that USSR-Yugoslavian relations would not be
affected by Stalin’s death, the new USSR leader’s modernized approach soon proved
otherwise.47 Khrushchev’s ascent to power signalled a change in the USSR’s relations with its
satellites. With many countries protesting following the death of Stalin, Khrushchev’s policies
allowed for an open relationship between the USSR and its controlled states.48 The USSR’s
strong desire to rebuild ties with Yugoslavia as well as their new policies which allowed for each
satellite to find its own road to communism, as opposed to Eisenhower’s hard-line strategy,
Thus, by 1954, the United States had begun to adopt a less ambitious view towards US-
Yugoslav relations. They no longer attempted to incorporate Yugoslavia into NATO and did not
aim to provide them with aid. The adoption of report NSC 174, outlined new hopes for the
satellite. It stated that although Yugoslavia remained a threat to USSR’s authority, there was a
very limited chance that any other states would follow their example.50 As USSR relations with
Yugoslavia continued to improve, US changed the conditions for Yugoslavian aid. In short, the
In a decisive moment when Yugoslavia requested aid from the US in the amount of 700 000 tons
of wheat, the US replied that they would sell them 500 000 tons for 10 million.52 The free-
support of the US was running out. The rate of exchange between Yugoslavia and US fluctuated
for a number of years following the policy shifts. Those mostly depended on the Yugoslav’s
relationship with Russia, however overall, Yugoslavia proffered to deal with other communist
factions over the Western World.53 Yugoslavian and US relations would not reach another high
Although the “wedge strategy” from 1948-1956 had to some extent created a positive
relationship between the US and Yugoslavia, its ultimate failure in beginning a Com-inform split
illustrates one of the core downfalls of American Cold War foreign policy in the 1940’s and
1950’s. It was not so much an issue of negotiation or incentives that prevented other nations
from following Yugoslavia’s example or Yugoslavia from joining NATO. What the US provided
to Yugoslavia was in fact largely central to their political independence and the development of a
mutual relationship. Rather it was the inability of the US to understand the political, emotional,
and symbolic ties of Yugoslavia and the other satellites to their communist ideology that
hindered the strategies success. The US “wedge strategy” was centred on an unwavering
“westernized” ideology, would in itself be enough to foster a split between the USSR and its
satellite nations. Their approach however failed to account for deep-rooted cultural and social
issues which resulted in the preceding communist uprisings in these nations, the strongly held
state, and the inherent risks in opposing the Soviet regime. By focusing solely on the financial,
military, and political implications of their support the US was only able to establish a mutual
cost-benefit relationship with Yugoslavia, something that would hardly displace the strong
Bibliography
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