OFFICE OF STRATEGIC SERVICES
                    WASHINGTON, D.C.
 
 
                                   March 23, 1944
 
 
SECRET MEMORANDUM FOR GENERAL DONOVAN:
 
     1.  As requested by you this morning, I outline below certain facts not contained in the
formal report of the mission of today's date, regarding my personal and intimate discussions with
Monsieur Balbanoff, apart from the more formal relations which he had with the members of the
mission.  These facts are not known to my colleagues, and they are written here only for your
information and that of the highest political authorities.
 
     2.  My principal effort, as you know, was to accomplish by mutual agreement the
detachment of Bulgaria from the Axis. It was clear to me and to Monsieur Balabanoff that this
might be impossible and that it might be necessary to consider forcible means.  We discussed this
problem fully.  I asked him, in particular, whether he was prepared and able to form, with the
Army, a new government to replace the present government and take control of the country.  He
replied that if necessary he was entirely ready to act in this way but that he first wished to try to
convince the present government it should withdraw from the Axis, since he wished t oavoid the
horror of civil war in Bulgaria, and almost certain consequent occupation by Germany.  If his
freindly efforts failed, he said he would approach the Army with a view to a coup d'etat, pointing
out to me, however, that no coup d'etat could succeed without the material aid from outside
Bulgaria.  He said that neither he nor the military leaders were in a position to supply the
necessary material and that as a large number of army officers and government officials were now
recieving regular supplementary compensation since, in existing circumstances, their regular
allowance from the Bulgarian government is wholly inadequate for their essential needs.  I replied
that I could not make any definite promises in the name of the United States, but that if he could
satisfy me that in fact he could actually obtain the necessary support