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UNCLASSIFIED Imelosure to Despatch Noo 518, June 9, 1948, from american Embassy, Belgrade =3- From where does tie increase for Wallace core? First, from the ranks of the workers. In spite of labor union management, tue workers, and even all of the union branoles, are openly supporting ‘ellece. Wallace has long nad connections with farmers, and farners are today dissatisfied with prices and they see in \allace @ Man whe can velp thes. In tie United States there are 15 million negroes wiio feel tnat tney are enslaved, Tuey are turning tielr eyes toward Wallace. Further tuere are 15 million Slave in tne United States, most of whom Lave & progressive outlook, and tne majority of wuom will vote for Vallace. Small shopowners, industrialists, oruftamen, white collar people who ure at the mercy of large capital ate all searching for a way out of this serious orisis. Wallace expects to reesive votes. from this group. The workers in the United States have not succeeded — in organizing sufficiently to affirm themselves as a poltical party. The Communist Party is proportia:ally gmail and does not embrace enough workers, while otier so-called "workers® parties" are on tiie reactio:.ury side. Wallace's farty is neither tue workers’ party nor tie workerepeasant party, nor socialist, but it is progres- sive. It unites various democratic, anti-war, antic monopolist elements and groups. There are in the United States millions of voters who are willing to fight for their everyday needs, but who are not convinced tuat poltical actions are necess= ary. Those ore toe raw masses, and it cannot be pre- dicted on whicu side they will vote in the elections-- for Yalleee or for tie American reuction. It appears taut tie toughest fight Just now is for tne support of tuose masses, to draw those masses into tie struggle, not only on the questions of daily bread, but also on tiie questions of domestic and foreign policy. It is true that tnose . masses are today afraid of war, of economic depression, of fuscism and of monopoly. <All of tose wasses already nave a certain amount of experience of tue horrors of tie last war and of the last economic depression, during the time of Hoover,.when millions of unenplcyed American workers Lad to wait in long queues to get a ladle-full of soup from humanitarian organizations. However, if tue american reaction manages to convince,tiose masses tiat the policy of armament and the Marsiall Plan will ensure those masses against unemployxent and aguinsyt now queues for soup for the unemployed, tien wallace will not ave the solid support of tucse disconteiited but politically ineffectual nasses. . wallace UNCLASSIFIED. “68926