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SINISA KOSUTIC continued as Consul at Yugoslav Consulate General,San Francisco, California, in March 1954. He made trip to LosAngeles, California, in March -1954 for legal problems and atZama time visited Yugoslaviazigrant colony there. He planned asubsequent visit to Phoenix, Arizona. No new information asto possible transfer to Yugoslavia.

DETAILS:Information in this report was supplied by SanFrancisco T-1, San Francisco T-2, and San FranciscoT-3, all of known reliability.

SINISA KOSUTIC continued as Consul at the YugoslavConsulate General, 'San Francisco, in March 1954 and his residenceremained 290 Magellan Avenue. No information as to his transfer

. to Yugoslavia was received.

CONFIDENTIAL

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KOSUTIC continued to handle estates. Duringthis period he was in contact with B0GDAtN9P0VIC, of the Em-bassy, complaining of the slo ess of Belgrade in renderinga decision in the case of GSZA RMAY of Oakland, who was wait-ing to receive an inheritance flon -Yugoslavia. On parch 17,1954, the Yugoslav National Bank approved a transfer to RONAYof 630,000 dinars and also KOSUTIC was attempting to pleaseROVAY with his announcement of this. RONAY complained thatit had taken a long time to liquidate the property and it washis opinion that the Yugoslav Government had so many restrictionson property owners that no one wanted to invest in apartmentbuildings in Yugoslavia. KOSUTIC indicated that he hoped touse ROKAY subsequently to prove that reciprocity existed inestate matters. (T-2, 3/9,17/54).

In connection with estate natters, KOSUTIC wentto Los Angeles, California, during Larch 1954. He asociatedwith-an attorney named PERACCA in the estate of JACK. C.(T-2, 3/17/54). KOSUTIC expected to stay at the Sti well Hotelin Los Angeles. (T-2, 3/22/54).

While in Los An es, KOSUTIC toot the opportunityto see GEORGEXOVACEVIC, ANTO NDZ4, and N. AAMICK. He re-ported that theitik-Oslav-Amer can Civic Club, which had sponsoredthe Los Angeles reception for Ambassador FOPOVIC in February1954, had not yet been thanked for its efforts. IVANCEVIC in-dicated that he would see that this matter was attended to.(T-2, 3/29/54).

KOSUTIC also reported that he was not going tosee h. :4J4ARKUTJ who had resigned as Secretary of the Yugoslav-Anerican'Clirib Club because at a recent meeting among theCroatians this man had said he wanted to have nothing more todo with the Yugoslays. Als while In' Los Angeles, KOSUTIC

-11-saw MT KOVACEVIC and CHAR LE S PAULU inAN, who was organizing agroup to hire an attoorney,w ch-was believed to be in connectionwith the ARTUKOVICH Ircase. (T-2, 3/25/54).

T-2 indicated on March 9, 1954, that KOSUTIC, incontacting the Reverend JEROME VUKSICH, of San Francisco statedhe had sent him some material concerning some Serbs. VURSICHwas critical of the Serbs for continuing to support the side of

* RAFO IVANCEVIC, Yugoslav Consul General in an Francipco.

# ANDRIJNZTUKOVICH, former official of the wartime puppet state of Croatia, sthe TsfgOslav government is endeavoring to extradite from the U.S. as a warcriminal.

SF 105-751 CONFIDENTIAL

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the late DRAZA . NIHAILOVICH. KOSUTIC called IIIRAILOVICH atraitor. T-2 also indicated on March 3, 1954, that KOSUTICwas interested in learning the first name of one ZUKOVSKIwho was connected in an unknown capacity with San FranciscoState College.

T-3 recalled on April 22, 1954, that KOSUTIC, whenhe was discussing the case of ZaLOVAN DJILAS, recently deposedYugoslav Vice-President on alleged charges of being "pro-Western," had called DJILAS "an outstanding traitor" to Yugo-slavia.

OBRANCLUSCEVIC, Yugoslav film representative, wasin the San Francisco area to show some films in Oakland, Cali-fornia. KOSUTIC begged off attending this affair which wasbeing sponsored by JOIN FILCIC but promised to send a messageof support. (T-2, 3/6/54).

KOSUTIC told a an believed to be BILINNASON,of Butte, Montana, that he had not heard from him in a longtime as to his work, the condition in the Union, the colonythere, and his family. (T-1, 3/15/54).

In discussing a projected trip to Phoenix, Arixona,KOSUTIC asked SAk KEgTERA, of San Francisco, to recommendsoAeone to see in that—clty. KENTgA saidthe only one aboutwhose political views he was sure/5 DUSAINOWNICH and thatKOSUTIC should see him. OENTERA also suggested that KOSUTICmight see KRSTO and TOliONKWITERA but he was not sure howhospitable they would be since they were 100-percent Americans.(T-2, 3/23/54).

CONFIDENTIAL

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. SINISA Man:IC continues to reside at 290 Legal=Calif., and to serve as Consul at the YugoslavMaticet Street, San Francisco. -xosvric continueslegal affairs, haring stated that etherhave beeninheritance cases in California and expressinTthe ARBULIC appeal before the U. S. Supreme Court,establishingunfavorable solution of reciprocity in inheritaneeCalifornia, could with time spread to other statesKOSUTIC urged Stbassy to formulate new policiesmatters. KOSUTIC expressed desire to visit Phoenix,and Bisbee, aeisona in near Mures for purposepresent day Yugoslavia. KOSUTIC continued to contactwas in San Francisco and Loa Angeles areas, during

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Information in this report, supplied byand San Francisco T-2, of loaown reliability.

San Francisco T-1 and San Franc:1st:to T-2*member and December, 1953 that SINISA KOSIIT/C*.ally. San Francisco Consuls General, b61 Marketduring this period and to re de et 290 Magellan

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SF 105-751

together with his wife, MGDIAOSUTIC and son STEFHEN4SUTIC. SF T-1advised thlt as of November 30, 1953 KOSU1TC was receiving 4592.40as his monthly salary. t.ceordin3 to SF T-1 and SF T-2 KOSUTIC continuedto speculate as to when he would be transferred back to Yugoslavia.As of Decenber 30, 1953 no official vord of his transfer had beenreceived at the Yugoslav Consulate in San Francisco.

General Actiyia.ma Contacts

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Consul SMISA KOSUTIC reported in contact with one hies. nu =E.00, first e Ileum, of the Bige/oll Sanford Company

OT-& 1Vnranc ieco on November 3, 1953 having taken her out to lunch.It was reported tr; this source that Elsa VASSO had relatives residingin the Watsonville Area. This source was unable to detervdre thepurpose of this meeting. .(T-2, 1)13/53)

IOSUTIC also made plans to take Liss VS.SSC to lunch onDecember 1 * 1953* but called off the meeting the morning of December1, 1953 due to sone urgent official business. (T-2, 12/1/53)

On November 17, 1953 MST= wrote a letter to an unknown' person giving his impressions of San Francisco, where he said he hadpassed three very pleasant years. He felt that San Francisco was ademocratic and friendly city, where the standard of livinit was sohigh that he was unable to observe any Class differences. (T-1, 11/27/53)

On November 22, 1953 KOSUTIC received a letter from aDocto PAPO, first nare unknown, presently residing in Yugoslavia tothe effect that he, FOO had heard in Belgrade that NSW= was beingtransferred back to Yugoslavia. PAPO also indicated that he had epeicanto ITL.DO, presumablyVW.DC FerOVIC, Yuponlav Arhassador to Washington,D.C.,about KOSUTIC and that VIA.70 had infomed him that KOSVTIC wouldbe transferred back to Yugoslavia as soon as his rerla ement arrived.(T-2, 11/27/53).

SF T-1 learuod Dace: dr I., 1953 that KOSUTIC had expresseda desire to visit Phoenix* Tue=n, Globe, and particularly Bisbee*Arizona in the near future where he could give lectures concerningpresent day /tgoslavia. SIFISe. Kostrac was of the opinion that thereshould be cnough interest in these lceations to justify his goingthere.

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SF T-1 also, reported that with this in mind KOSU1TC hadwrittan to 2131.. I-est Madison, fhoenix, Arizona onDecer.ber Ii, 1953 and. requested I.T.TIK0S to ccntact his friends andascertain if there would be enough interest for such a visits

On Dece:aber 5, 1953 SITETC2AR4R''7ICII of San Francisco,expressed hope that he wculd see l'.0SUIIC before he departs forYugoslavia. .ccordirrj to this source KOSUTIC became very unhappythat members of the local Yugoslav colony t:ere aware of his possibletransfer. VSUITC imrediately inquired of,..T.r.ROviCilas to his sourceof infOrtntion and war inforred that L4020‘rOAL"Z, of Cupertino, hadinformed him concerning this news. 7.0SI7IC informed S7.1T7ICSthat he had requested to be relieved from his present positionand return to Be17rade, but that so far he had not received are,official notification of his transfer. (T-2, 12/5/53)

SF T-1 advised on December 15, 193 that S.L11/SA KOSUITCwas invited to eo hunting with L. C.111TLISMCH of Watsonville,California, According to SF T-1 'COSMIC made arrangements forHEMIL:.0.0731AROVIC and himself to gc hunting with L. C. VATIASIVICHon December 8 and 92 1953. (T-1, 12/5/53)

During Ice71-c t s stay in Los Angeles in the middleDecember, 1953 FO V.CEVJC instructed him to contactiCYugoslav film representative in regard to CUMLIC I s work in thatarea. (T-2, 12/16/53) KOSUTIC was expected to return from LosAngeles on December 19, 1953. (T-2, 12/19/53)

SF-2 learned on December 31, 1953 that SIMISA KOSUTIC hadinformed j101CFILRI:ULJ of Los ,sngeles that the arrival of ,Ambassador'JUD I INM‘POI=CVIC in Los Angeles cturing Febrvary,,t1.9513 shcnild be needby their newly organized club, believed to be eAugoalav-AnericanCivic Club to strengthen their position in the Los i.eAzu

KOSUTIC suggested that the dl.t take upon itself to send out theinvitations for the fartuell arfatr to be given for the Ambassador.According to SF T-2 titsRKUEJ acr*ared very- ?Inch in favor of such an

action. It was also reported by SF T-2 that 3‘P.KI'LJ informed ICOSUTICthat he had told no one concerning their correspondence inasmuch ashe, MARKULJ felt that he could accorgaish more that way.

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TIle Trieste Issue

SF T.91 acvised during November, 1953 that slum KOSUITCcontinued to asrist Consul General RAFO IMCI:VIC in the Trieste issueby contacting Yugoslav emigrants in the San Francisco Area and urgingthem to continue their letters of protest on the recent decision onTrieste.

On Novenb9r 5, 1953 KebUTIC wanted to discuss the Triesteproblem with FETE:I/GLAD, 533 Eddy Street, San Franciseo. KOSUTICinfolcmed"OWLD that he was bringing with him some new materialconcerning Trieste and that he would meet : 1E;AD at his place. Accordingto KOSUTIC this question was urgent and very irportanto OBAD agreedto meet KOSUTIC on Uovember 5,1953. (T-2, 11/5/53)

SF T-2 leaned on November 18, 1953 that KOSUTIC informedFRANKAUCHAI7 that they were in need of additional letters ofprotest on the Trieste issue and that he, =sung, had some new materialthat he would like to show =HAL KUVRA4 agreed to meet KOSUTICat his restaurant on November 18, 1953.

Legal Batters

SF T-1 and SF T-2 advised during this period that MISA.KOSUTIC spent most of his time on legal matters during)rovember andDeceMber: 1953 with particular, attention given to "-theraBULIC andfULCOLAV cases.

SF T-2 learned on December 16s 1953 that KOSUTIC plannedto arrive in Los Angeles on December lh, 1953 and remain there forseveral days. K9SUTIC also planned to attend the inherit/ems hearingof the milmmazdlaircruv case on December 16, 1953 in Los Angeles.SF T-2 also advised that KIMUTIO was to meet JOILISkTISTICH, LoaAngeles attorney, regardin the rcinrocity question on December17, 1953.

SF T-2 Veined dur. ingRovember, 1953 that ECSUTIC continuedto contact JERW.2,0LITT1E, San Francisco attorney, in connectionwith the ARBULIC appeal before the rnited States Supreme Court,

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7 7-2 lea?nad on &norther 27, 1953 th.at Bconutefcrovicof the Yugoslav Dobasrly in 1..as'Ainston, D.C. had instructed KOSUTICagainst using J.7R0.7 FuLITIZER in the .L.P13ULIC case inascauch asFOLITZER ::ept insit:Ltne on using roint 5, which could result

embarrassment to them. Tais source as unable to daterrIne thecontents of Point 5,

7 T-2 advised on ttcember 2, 193 that SINISA KOSUTIC wasquite upset over the loss of the APE' rLIC ap:eal before the UnitedStates SN.crer,e ':.00rt on licvomber 30, 1“?. 2.ccordins to SF T-2KOSLTIC inforred :30•:11:! PerOVIC of the fact that 'theykere losingroonoy on inheritance cares in Gislifornia and that this couldevontnaTly briar; about the loss of confidence in thorn by the peoplein Yugoslavia.

KOSUTIC alto expressed fear that the loss of the ARBULICappeal, entablisting an unfavorable solution of reciprocity inInheritance mars ir. C-.:lifcrnia, could with tine spread to otherstates in the Iiiited States. SF' 7-2 further advised that KOSUTICurged PWOVIC d the other Cmbaso- officials to formulate newpolicies resa..ding inheritance natters.

According to SF T-2?CralIC assured KOMTIC that they wouldfollow up the loss of the APBULIC appeal. roponc also Suggestedthe possibility of taking reprisal action against the State ofC.lifornia by taking the same attitude of more reciprocity forinheritance matters, arising frost claims submitted by reeidenteof California.

LF 7-2 pointedout that KOSUTIC was very much against anysuch reprisals, pointing out that the Yuc.oslave would be on thelosing end. POI'OVIC assured KONVIC th:-.t they would not take anysuch action trithout consultina him first.

SF IN-2 learned on 1,:o--:-,x-ter 27, 1953 that sinsA =armcomplained to BOODM POF07IC of t he Yugoslav babassy that PETER

N WABE, the Tu;oslav Consulate attornegr frog Portland. Oregon"was i gnoring and by-passing the Consulate in San Francisco andthat KOSUTIC was of the opinion that XMAEG should be straightenedout. According to SF 7-2 TOPOVIC felt that MIS/ABS Was tryihg .•to cause trouble between the C,onsulate and the tbassy.

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CONFIDENTIAL

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POPOVIC rromiscd EOMTIC that he would get in touch withI37. and Sea ir he could strai 3Oxten out the matter.

S:.7 T-1 advised on December 15, 1953 that KCarriC opposedfF,T1.12 A,2261- currastion that one of the Con=late Officialsappear in the 1.ITCHE1L 1 .111,301A11 case in Los Angeles on December169 1953 on the t-rouzds that.-SCM.ABE had enough documentary proof .of recip_rocity to fight the case.

On Describer 2, 1953 KOSUTIC asked :COCIDAr PORNIC to requestthe Tugs slav arthoritics in Yugoslavia to revIele a court decision,brought aaa'inst an old lady, resident of South_rn California,identity unIstc:rn, in 1950 whereby she was refused permission tosell a house left to her in Yugoslavia as part of an inheritanceand to hove s-aid mon ey transferred to her in the United States.

NU-WIC pointed out to TOPOVIC te.,.azt a decisionin her favor would be very helPful in the LILOGLAV case, comingup on December 16, 1953 in Los Angeles, inasmuch ae this lady wasa resident of a city in the vicinity of 1.03 ;uvulas. POPOPICassured KOMITIC that he -iould request The 'Lugoslav authoritiesto ,change their previous decision.

SF T-2 advised on December 232 1953 that KOSUT1C informedthe Yugoslav Debassy in 1:ashington, D.C. that the hearing in the1U:L(`GLIV case in Los Angeles had turned out to be saccessful andthat everyone in Los ..mgaless incirding KOSUTIC, expected thatthey would win the case.

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