952           FOREIGN RELATIONS, 1946, VOLUME VI

the Embassy named Stefanovich, now under arrest by the Yugoslavs,
was a member of that ring and he asserted that that individual re-
ceived 30,000 dinars per month from the Embassy as compared to a
Yugroslav cabinet member's salary of 12,000 dinars which, he said,
was evidence of illegal activities. The Ambassador went on to refer
to the flights of American airplanes over Yugoslavia repeating the
previous Yugoslav allegation that 1070 such planes crossed Yugoslav
territory between February and August of this year. The Ambas-
sador then mentioned Yugoslav charges that Quislings and war crim-
inals are employed as advisers by Allied Government officials in
Venezia Giulia and showed a letter he claimed to have recently re-
ceived from a so-called Secretary of a prewar Yugoslav Fascist party
who is now in Italy. Mr. Kosanovich expressed surprise that Mr.
Machek, President of the Croatian Peasant Party, who is in this
country on a brief unofficial visit, had been issued a US visa,73 and
he stated that Machek is mentioned in Ciano's 74 Diary as having had
contact with Ciano. He further stated that Machek has no following
among democratic elements in Yugoslavia. In conclusion, the Am-
bassador said that, as a small country, Yugoslavia is fearful of the
consequences for her of what appears to him to be a general attitude
of officials of this country in regard to Europe tending toward a third
World War. As a case in point he mentioned a report in the press
of remarks attributed to Admiral Cassady in which the latter was
quoted as stating that there is much dynamite lying around Europe,
that Italy, France, Greece, England and the US should keep prepared
for any eventuality and that certain other powers should keep their
matches in their pockets.
  Mr. Clayton stated that we had been informed concerning the black
market incident referred to but that as to the alleged smuggling of
arms and spy ring this Government knew nothing. Regarding the

  7S Vladimir Madek had gone into exile in 1945 living temporarily in Paris.
In
January 1946, his secretary approached a member of the American Embassy in
Paris to ask advice regarding the advisability of Madek's returning to Yugo-
slavia and whether the United States would give him moral support if he
returned to Yugoslavia and resumed political activity. Telegram 262, Janu-
ary 17, 1946, to Paris, stated that the United States could not undertake
to
intervene with Tito to request permission for Macek's return or obtain a
guar-
antee of his safety there; the United States was ready to extend friendly
interest
in his efforts to foster political development along genuinely democratic
lines
(860H.00/1-1746). United States policy regarding a possible visit to the
United
States by Madek at the request of Croat groups was set forth in telegram
3478,
July 16, 1946, to Paris, which read in part as follows: "Although it
seems clear
visit US by Madek more than likely aggravate relations between contending
Yugo-American groups here and irritate Yugo Govt, Dept not inclined refuse
him
visitor's visa on political grounds in event he applies . . . If Macek receives
visa Emb should, however, make it clearly understood that he is proceeding
US
as private individual and guest United Croatians and not US Govt." (860H.-
00/7-1646)
  " Count Galeazzo Ciano, Italian Minister for Foreign Affairs, 1936-1943.