656 Foreign Relations, 1958-1960, Volume IX



tion of $2.2 million by the United Kingdom; $1.5 million by France; $1.1
million by the Netherlands; $2.0 million by Canada, and $1.5 million by
the United States); and
    h. made voluntary contributions from 1950 to date to UNRWA
(Palestine Refugees) in the total amount of $65,400. In addition, Ger-
many has now pledged $360,000 for UNRWA's 1958 program.
    17. Breaking of Relations with Yugoslavia. With considerable reluc-
tance, the Federal Republic severed diplomatic relations with Yugosla-
via in October 1957 after Yugoslavia extended diplomatic recognition to
the "German Democratic Republic" (GDR). The Federal Republic
feared that its failure to react to the Yugoslav recognition of the GDR
might encourage other states, particularly the "uncommitted" ones,
to
follow suit. It now seems that both Yugoslavia and the Federal Republic
desire to find some formula for re-establishing diplomatic relations.
    18. Agreements with U.S.S.R. In April 1958, after nine months of dif-
ficult negotiations, the Federal Republic concluded Trade and Consular
Agreements and an understanding on the repatriation of German na-
tionals with the U.S.S.R. As evidenced by the attacks on the Soviet Em-
bassy at Bonn and the Federal German Embassy at Moscow after the
announcement June 17 of the execution of the leaders of the Hungarian
revolt, the progress toward the normalization of formal relations did not
denote an improvement in the general political relations between the
two countries.
    19. Relations with the Satellite Area. The Federal Government and
popular opinion within the Federal Republic showed increasing interest
in the establishment of closer relations with the countries of Eastern
Europe, especially with Poland. Sympathy with Poland's efforts to win
a greater measure of freedom from the U.S.S.R. tended to offset antipa-
thy based on the Polish annexation of former German territory. How-
ever, the Federal Government was inclined to move slowly in this area,
primarily because of the fear that the establishment of formal relations
with countries of the Eastern European area (which already have rela-
tions with the "German Democratic Republic") might tend to give
greater currency to the Soviet-sponsored concept of the existence of
"two German States".
    20. Status of Forces Arrangements. In December 1957 the German
Federal Government submitted a memorandum setting forth the "final"
German proposal on the main outstanding issues in this multilateral ne-
gotiation to work out arrangements supplementing the NATO Status of
Forces Agreement as a replacement for the Bonn Forces Convention. 5In
May 1958 the Ambassadors from the "sending states" (U.S.-U.K.-
France-Belgium-Denmark-Netherlands-Canada) presented to the

    5 The memorandum has not been found. For text of the Forces Convention,
October
23, 1954, see 6 UST 5689.