Az Eszterházy Károly Tanárképző Főiskola Tudományos Közleményei. 1994. [Vol. 2.] Eger Journal of American Studies. (Acta Academiae Paedagogicae Agriensis : Nova series ; Tom. 22)

STUDIES - Tamás Magyarics: The (Re) creation of the Relations between the US and the Successor States in Central Europe after the First World War

the Serbs ... with respect to the refunding and settlement of that Government's indebtedness to the U.S., the Department is not able to view with favor the proposed financing."

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6 The banks affected in the deal acquiesced to the State Department's wish and it was the Yugoslavs who had to modify their earlier standpoint Hardly more than a week later, on May 23, the Chargé was already able to inform the State Department that "the Minister of Finance has stated in writing today that the Yugoslav Minister at Washington has been sent instruction to make proposals to the World War Foreign Debt Commission for the refunding and settlement of Yugoslavia's indebtedness to the U.S.; the Minister adds that the Government considers the settlement of this question of the greatest importance."

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7 However much did the Yugoslav Government go out of its way to meet all the American demands, at last "only a 15 million loan was realized..."

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8 Nevertheless, the problem of funding the debt was not solved. Next year Hughes informed the Minister in the Kingdom of the Serbs, Croats and Slovenes, H. Percival Dodge, to "impress upon appropriate officials of the Yugoslav Government the particular importance to Yugoslavia of refunding its obligation to the U.S. because such a step might favorably effect the credit of Yugoslavia in the U.S. and the market for its securities."

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9 As the Yugoslav government did not do much in the desired direction from the Americans' point of view, the State Department kept vetoing its recurrent requests for loans at various American banks

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0 and when the Yugoslavs were successful at raising loans, they were able to obtain only small amounts.

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6 Ibid., 1005, 860 h. 51/174a: Telegram. 7

7 Ibid., 1008, 860 h. 51/181: Telegram. 70 ' Berend and Ranki, Economic Development, 226. 7

9 Papers, 1925, Vol. 1, 180. 860 h. 51/262: Telegram. 90 For instance, see Objections by the Department of State to Further I.oans by American bankers to Yugoslavia Pending Settlement of Yugoslav Debts to the U.S. Government. ibid., Vol. 2, 738—46. 8

1 860 h. 51/539, Blair and Comp. Inc. to the Secretary of State on March 18, 1925: "Dear Sirs: We have about concluded arrangements to purchase $ 3.000.000 six months 6 % 95