Thank you for your second message about the Istria-Trieste area. I have also read Mr Harriman's Note setting forth the proposals of the U.S. and British Governments to the Government of Yugoslavia for a settlement.

I gather from your communication that agreement has been reached in principle between the U.S. and British Governments, on the one hand, and the Yugoslav Government, on the other, concerning the establishment in the Trieste-Istria territory of an Allied Military Administration under the Allied Commander-in-Chief in the Mediterranean. I think, however, that a complete settlement of the situation in Trieste-Istria necessitates agreement with the Yugoslav Government also on the concrete proposals made by the U.S. and British Governments. Now that the Yugoslav Government has consented to the establishment of an Allied Military Administration in the Trieste-Istria territory it is my hope that nothing will be put in the way of Yugoslav interests being fully met and that a happy solution will be found to the entire problem of the present strained situation in the Trieste-Istria area.

June 8, 1945