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the problem of displaced persons of Allied nationality.
 
      As noted above, the operations in Greece have be-
gun, and will develop as the military situation there 
clears up. An UNRRA--Yugoslav agreement, preliminary 
work on which was done at Cairo last spring and at Wash-
ington in the autumn, must await the negotiations, now 
about completed, between the Allied military authorities 
and the Yugoslavs for the military period. The plan is 
for UNRRA to begin operations in Yugoslavia (and also in 
Albania) at an early date, under the military, and to 
shorten the military period as much as possible.
 
        Some progress has been made in the negotiations be-
tween the military and the Yugoslavs for relief in the 
military period, the chief difficulty having been Mar-
shal Tito's unwillingness to agree to Allied personnel 
as observers to make sure that relief supplies are not 
distributed in a discriminatory manner. There seems to 
have been an agreement made for a certain number of obser-
vers, and relief supplies are, in any case, being sent 
in on an ad hoc basis even in the lack of a formal agree-
ment. Some of these difficulties mentioned above may never-
theless extend over into the UNRRA period, since Marshal 
Tito seems to be frankly unfriendly to the program. For
example, there has been a recent report that a member of
his entourage has been urging him not to sell his coun-
try's independence "for a box of UNRRA chocolates." Mar-                                  
shal Tito's argument that the admission of Allied obser-
vers is a derogation of Yugoslav national sovereignty 
seems thoroughly unreasonable, but it is perhaps the best
explanation he can find for his unwillingness to allow
Allied observers of any kind to move about in Yugoslavia.
 
Policy Recommendations
 
      It is the American view that the UNRRA should operate 
independently and with full responsibility and authority 
as an international organization at the earliest possi-
ble date, with the minimum of advice or influence by the 
British or American Governments, even though these Gov-
ernments are the heaviest contributors. The British ap-
pear to favor keeping a guiding hand on UNRRA. They al-
so favor integrating the work of voluntary relief or
                              philanthropic