OFFICE OF STRATEGIC SERVICES
                    WASHINGTON, D.C.
                          25 March 1944
 
 
MEMORANDUM FOR THE PRESIDENT
 
     From our London office, we learn the following:
 
     1. "Effort is being made to construct the basis of a new government which will stand for
the potential middle element between Tito and Purich.  There are daily conversations in which the
following persons participate: Snoj, Banjanin Vilder, Srdjan Budslavljevic, Milan Grol, Bogulyub
Jeftitch, Slobodan Jovanovic, and Captain Kern.  The first three are Serbs from Croatia or Bosnia,
the second three are Serbs from Serbia.  No Croats have been asked to participate in the
discussions to date, on the theory that agreement must first be reached among the Serbian
factions.  Lambda is sure that Sutuj will join the group, but doubts that Krnjevic will do so.
     2. The group's program is approximately as follows:
          a.  Maintenance is friendly terms with USSR.
          b.  Mihailovic to be ultimately replaced as War Minister by a civilian.  Grol might 
                    be his