4.   Freedom for American philanthropic and educa-
tional organizations to carry on their  activities in the 
respective countries on the  basis of most favored-nation 
treatment.        
 
          5.   General protection of American citizens and the 
protection and furtherance of legitimate American econo-
mic rights, existing or potential.
 
          The United States should also be prepared to partici-
pate through recommendation in territorial settlements of 
questions involving general security.
 
          Since each of the Balkan countries presents separate 
problems, the solution of which would carry forward the 
ideas expressed above, separate papers have been prepared 
discussing them.                                       
 
          There are two correlated questions which may shortly 
require attention, with reference to the whole Southern 
European region; namely, the project for a union of Bul-
garia with Yugoslavia,  and the agitation for an integral 
Macedonia. Both of these questions really involve con-
sideration of the scheme for a Balkan federation. The 
British Government has just informed us that it would wel-
come such a grouping, to include both allied and enemy 
states, and possibly to include Turkey, but would not favor 
an exclusive union or federation involving only Yugoslavia
and Bulgaria, since this would be unlikely to promote the 
larger grouping and would also isolate Greece and endan-
ger her position. As regards Macedonia the British Govern-
ment is willing to acquiesce in the formation of a Mace-
donian state as a federal unit in Yugoslavia provided only
territories previously belonging to Yugoslavia are in-
volved leaving the "Macedonia" parts of Bulgaria and Greece 
to these respective countries. The British have also 
communicated these views to the Soviet Government. The De-
partment is now considering its reply to this communica-
tion. Our present thinking is generally in line with the 
British attitude.