We also received a simultaneous report from our representative in Belgrade on the Tito-Subasic agreement…: Finally, Churchill King assured that he did not have to worry about the Subasic-Tito conference for an agreement to be sanctioned. He said that Stalin was not unreasonable about the general situation in the Balkans, but that Stalin was of course a very intelligent man and that the situation had to be observed. Mr: I am honoured to report that Prime Minister Subasic has today given me translations of the following agreements between him and Marshal Tito: the Council of the Regency is appointed by a constitutional act of bang, on the proposal of the royal government and in agreement with the Chairman of the National Committee for the Liberation of Yugoslavia, Marshal J.B. Tito. and the president of the royal government, Dr Ivan Subasic. The Regent`s Council takes the oath to the king, while the government takes the oath to the people. “Saw Subasic yesterday, December 27th. He expressed great anger at the fact that the king had not seen him last week. Subasic explained that if King refuses to sign a deal, he will forever lose his chances of becoming king. According to Subasic, signing an agreement will arouse sympathy for King and enhance his prestige. Subasic added that if King refuses to sign, a new government will nevertheless be formed.
Subasic did not see Churchill. Churchill, who was holding a copy of the proposed agreement between Tito and Subasich, told Zukonig Peter that the project could have been worse and that it represented at least a partial victory because he recognizes the constitutional monarchy for now. “As you know,” added Churchill, “I am against the reign. … I thought Subasich was statesman enough to see the incomprehability of such an approach. But I think this clause can be abolished; agreement is not yet final. On the night of 10 January at 2300 hours, King Peter completed consultations with his advisers on his final response to Churchill on the proposed agreement between the Yugoslav government in exile and the administration of Marshall Tito`s supporters. The letter to Churchill [the rejection of the proposals on the regent and the delegation of legislative power to the Maquisen-Antifascist Council] was to be sanitized on the morning of 11 January.