Secret. 23:00.

Present: on the Soviet side — V.M. Molotov, Ambassador of the USSR to Yugoslavia A.I. Lavrentyev; on the Yugoslav side — Minister of Internal Affairs A. Rankovic, Chief of the General Staff Lieutenant General K. Popovic, Chairman of the Council of Ministers of Serbia Neskovic, Chairman of the Council of Ministers of Slovenia Kidric, Ambassador of Yugoslavia to the USSR V. Popovic.

At the beginning of the conversation, Comrade Stalin asked Tito what, in the event that a free city statute were established for Trieste, it would relate to — only the city or the surrounding area, and which statute would be better — of the Memel type or of the Danzig type.

Tito replied that in the surrounding area of the city Slovenes live. It can only be a matter of the city. But he would like to continue to insist on the inclusion of Trieste in the composition of Yugoslavia. Tito then, on behalf of the Yugoslav government, expressed gratitude to Comrade V.M. Molotov for the support rendered by the Soviet delegation in the examination of the question of the Italian-Yugoslav border at the Council of Foreign Ministers in Paris.

Comrade Molotov provided information about the difference between the Memel and Danzig statutes, indicating that the Memel-type statute is more favorable.

Comrade Stalin asked Tito about the situation in industry and agriculture in Yugoslavia.

Tito replied that all the land is sown, an average harvest is expected, and that industry is working well.

Comrade Stalin then proposed that Tito set forth the range of questions on which the Yugoslav delegation wished to speak that evening. Tito named the following questions: economic cooperation between the USSR and Yugoslavia, military cooperation, and Yugoslavia's relations with Albania.

On the question of economic cooperation, Tito said that if America agreed to grant a loan, this would be connected with demands for political concessions on Yugoslavia's part. Yugoslavia does not have the means for further industrial development.

The Yugoslav government would like to receive assistance from the Soviet Union, in particular through the creation of mixed Soviet-Yugoslav companies. Yugoslavia has sufficient mineral and ore wealth, but it is not able to organize production, since there are no necessary machines. In particular, Yugoslavia has oil, but there are no drilling rigs.

Comrade Stalin said: "We will help."

To Comrade Stalin's questions about whether aluminum, copper, and lead are produced in Yugoslavia, Tito replied affirmatively, remarking that "Yugoslavia has much bauxite and ores for the production of these metals."

Comrade Stalin remarked that the Ministry of Foreign Trade had declared to the Yugoslavs its readiness to conduct negotiations on the organization of mixed companies, but no definite reply was received from the Yugoslavs. Therefore the impression was created that Yugoslavia does not want to create these companies.

Tito objected, declaring that he had repeatedly spoken to Ambassador Sadchikov about the desire of the Yugoslav government to create mixed Soviet-Yugoslav companies.

To Comrade Stalin's remark that after the creation of mixed Soviet-Yugoslav companies it would not be necessary to admit other powers into Yugoslavia's economy, Tito replied that the Yugoslav government does not intend to admit the capital of other powers into its economy.

Then, as a summary, Comrade Stalin said that, consequently, Soviet-Yugoslav economic cooperation is conceived on the basis of creating mixed companies.

Tito confirmed this, declaring that the following day he intended to submit in written form his proposals on this question.

On the question of military cooperation, Tito said that the Yugoslav government would like to receive deliveries from the Soviet Union for Yugoslavia's military needs not in the form of commercial mutual settlements, but in the form of credit.

Yugoslavia has a small military industry; it can produce mortars and mines. In a number of places there are cadres. But there is no appropriate equipment, since the Germans removed it. The Yugoslav government wants to receive some machines from Germany in account of reparations for the restoration of some military factories.

But still Yugoslavia cannot satisfy its own military needs, and in this regard the Yugoslav government is counting on the assistance of the Soviet Union.

Comrade Stalin said that Yugoslavia must have some military factories, for example aircraft factories, since the Yugoslavs can produce aluminum given the rich deposits of bauxite. It is also necessary to have factories for the production of artillery guns.

Tito remarked that cannon barrels could be cast in the Soviet Union and processed in Yugoslavia.

Touching on the question of Yugoslavia's maritime border, Comrade Stalin said that for its defense it is necessary to have a good fleet. Torpedo boats, patrol vessels, and armored boats are needed. Although the Soviet Union is weak in this area, as Comrade Stalin said — we will help.

Regarding Albania, Comrade Stalin pointed out that the internal political situation in Albania is unclear. There is information indicating that something is happening there between the Politburo of the Communist Party and Enver Hoxha. A report has arrived that Koce Xoxe wishes to come to Moscow to examine certain questions. Before the party congress, Enver Hoxha also expressed the desire to come to Moscow together with Xoxe.

Comrade Stalin asked Tito whether he knows anything about the state of the Communist Party in Albania.

Tito, finding himself uninformed on these questions, replied that in the near future Hoxha's visit to Belgrade is expected.

Therefore he, Tito, thinks that a reply should be given to the Albanians that the question of Xoxe's and Hoxha's trip to Moscow will be examined after Hoxha's trip to Belgrade.

Comrade Molotov remarked that we had been restraining the Albanians' desire to come, but the Albanians are insisting on this.

Comrade Stalin indicated that the Albanians' visit to Moscow may provoke an unfavorable reaction on the part of the British and Americans and this will additionally complicate the foreign policy position of Albania.

Comrade Stalin then asked Tito whether Enver Hoxha agrees to the inclusion of Albania in the composition of a federative Yugoslavia. Tito replied affirmatively.

Comrade Stalin said that at the present time it would be difficult for Yugoslavia to resolve simultaneously two such questions as the question of the inclusion of Albania in the composition of Yugoslavia and the question of Trieste. Tito agreed with this remark.

Therefore, Comrade Stalin further noted, it would first be necessary to discuss the question of friendship and mutual assistance between Albania and Yugoslavia.

Tito said that in its basic part this treaty should provide for the protection of Albania's territorial integrity and national independence.

Comrade Stalin said that it is necessary to find the formula for this treaty and to bring Albania closer to Yugoslavia.

Comrade Stalin touched on the question of including Bulgaria in the federation.

Tito said that nothing will come of the federation. Comrade Stalin interjected: "This must be done."

Tito declared that nothing will come of the federation because in fact there are two different regimes. Moreover, in Bulgaria there is a strong influence of other parties, while in Yugoslavia all power, with other parties present, is in fact in the hands of the Communist Party.

Comrade Stalin remarked that this should not be feared. In the first period it is possible to limit oneself to a pact of friendship and mutual assistance, while in substance one must do more.

Tito agreed with this.

Comrade Molotov remarked that at the present moment difficulties may arise in connection with the fact that a peace treaty has not yet been concluded with Bulgaria. Bulgaria is being considered as a former enemy power.

Comrade Stalin indicated that this should not have material significance. It is known that the Soviet Union concluded a treaty of friendship with Poland when Poland had not yet been recognized by other powers.

Comrade Stalin then summarized the conversation thus: what the Yugoslav government wants on economic questions and on military matters can be arranged. Now it is necessary to create commissions for the examination of these questions.

Tito informed Comrade Stalin about Yugoslavia's relations with Hungary, reporting about Rakosi's arrival in Belgrade. Tito declared that the Yugoslav government had decided not to raise the question in the Council of Ministers about Yugoslavia's territorial claims against Hungary (claims for the Banya triangle). Tito expressed satisfaction that Yugoslavia had signed an agreement with Hungary on reparation payments.

Comrade Stalin remarked that if Hungary wants peaceful relations with Yugoslavia, then Yugoslavia must support these aspirations, bearing in mind that the main difficulties for Yugoslavia exist in relations with Greece and Italy.

Recorded by Lavrentyev.

Lavrenov S.A., Popov I.M. Sovetsky Soyuz v lokal'nykh voynakh i konfliktakh. Moscow, 2003. Pp. 707-710.
AP RF. F. 45. Op. 1. D. 397. L. 107-110.