-6- #669, Eighteenth from London              
 
                                                            
 
 
          President Roosevelt informed constantly.          
 
                                                            
 
 
In pursuance of our joint policy, we encouraged the making 
      of an agreement between the Tito Government, which, with Russian 
      assistance, has now installed itself in Belgrade, and the Royal 
      Government of Yugoslavia, which is seated in London, and recognized 
      by us as, I believe, by all the powers of the United Nations. 
      Marshal Stalin and His Majesty's Government consider that agreement 
      on the whole to be wise. We believe that the arrangements of 
      the Tito-Subasic agreement are the best that can be made for 
      the immediate future of Yugoslavia. They preserve the form and 
      the theme of monarchy pending the taking of a fair and free plebiscite 
      as soon as conditions allow. King Pete II agrees in principle 
      with these arrangements, but he makes certain reservations. The 
      nature and effect of these are, I understand, at present under 
      discussion. I should hesitate to prophesy or to promise how all 
      this will turn out, but in all the circumstances, and having 
      regard to the chaotic conditions arising out of this war, I do 
      not see what else except this Tito-Subasic agreement could be 
      done by His Majesty's Government and the Union of Socialist Soviet 
      Republics than to contribute what they can to bringing about 
      the widest possible measure of agreement among Yugoslavs, and 
      to ensure that these