9.
Since the breach between Tito and the Cominform, the scale of Yugoslav assistance to the Greek rebels has steadily dwindled. This was noted in the September report of the United Nations Special Committee on the Balkans and has been publicly indicated by the recent removal of the rebel radio station from Yugoslav territory. Cominform attacks on Yugoslavia, which have included stirring up Macedonian aspirations to inde- pendence, have brought Yugoslavia to the point of being anxious for a settlement with Greece, though she finds it difficult to reach agreement with the present Greek Government.
10.
There is a risk that the settlement of the civil war in Greece with active Soviet "assistance" would lead to increased Soviet pressure on Tito, and in any general Balkan settlement it might be well to demand from the Soviet Government the cessation of economic and political pressure on Tito by the Cominform and to suggest that he should be allowed to reach his own modus vivendi with the Western Powers. and with Greece.
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(ii) Albania
Albania has been the principal Soviet base for assistance to the rebels, although material can now only reach that country from the Soviet orbit countries by sea and air. The internal position of the country is unstable and discontented elements might at some stage overthrow the Hoxha government. Albania maintains no relations with any of the Western Powers except France and Italy and by the recent Hague Court decision was held responsible for the mining of the two British destroyers in the Corfu Channel in October, 1946. She is the weakest of the satellites and one of the most intransigent towards Greece.
12.
The Greek Government maintain their claim to Northern Epirus (Southern Albania) but declare that this will be pursued through appropriate international channels. Any settlement reached between Greece and Albania as a result of Dr. Evatt's negotiations or any other discussions would have to take this claim into consideration. It might, however, be necessary for the United States Government and ourselves to try to induce the Greeks to abandon this claim as the price of obtaining a settlement with Albania,
13.
(iii) Bulgaria
The Greek Goverment have made successive attempts to resume relations with Bulgaria since the signature of the Peace Treaty;
these have been rebuffed and twisted into propaganda adverse to Greece. Bulgaria has failed (except for one small token delivery) to carry out her obligations in respect of reparations to Greece or even to discuss questions of claims and restitution as laid down in the Peace Treaty. Bulgaria has also failed to observe other provisions of the Peace Treaty e.g. human rights) and, as has been established by successive reports of the United Nations Special Committee on the Balkans, has furnished assistance to the Greek rebels.
14.
Our optimum demands in a general settlement would be for the cessation of aid by Bulgaria to the rebels, the resump- tion of diplomatic relations with Greece and the discussion of reparatiPage 28 of 366 tution under the Peace Paget of 366vould be
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