ambassador rudolf v. perina - Association for Diplomatic Studies and ...

and clever. They are survivors, like everyone else in the Balkans. In most cases, they
found ways to beat the system, though it was hard.
The Embassy people were, of course, in a very privileged position. We had the hard
currency, we had the ability to bring in gasoline, food and other commodities for
Embassy use, so we did not really suffer. But some things were difficult. For example,
we could not use the banking system for Embassy transactions because Serb banks were
also under sanctions and thus had no links to foreign banks. Everything was on a cash
basis. Even salaries of our local employees were paid in cash. About every two weeks,
we sent a car to Budapest that would bring back tens of thousands of dollars in cash,
sometimes over a hundred thousand dollars. The cars were driven by Serb employees of
the Embassy and had an American on board but no guards. They thus aroused no
suspicion or interest. The whole system was based on secrecy. Otherwise, of course, local
criminal warlords like the infamous Arkan would quickly have targeted these cars, and
probably no number of guards could have protected them. At one point we had to put a
new roof on the Embassy residence because it was leaking. This was a major repair and
cost over a hundred thousand dollars. A car came from Budapest with the cash in a
suitcase, and we paid for it that way. I remember telling Dick Holbrooke this story when I
first met him in Budapest after he was nominated to be Assistant Secretary. He thought it
was fascinating and already then took a special interest in the Yugoslav conflict. I spent
an hour telling him stories from Belgrade, and that was how we first got to know one
another. I just happened to be passing through Budapest when he was there with his wife,
and I asked to meet with him.
Q: The Embassy was still in the same old compound?
PERINA: It was that same building, covering an entire block. We still used the main
chancery but there were a lot of empty apartments in the other wings because the staff
had been so downsized. The commissary was still active as well as the large cafeteria. In
my first year, I was there without my wife so that my younger daughter, Alexandra, could
finish high school in Virginia. I lived in the DCM residence because the main residence
was under repair. That was the most difficult and bleakest year. In the second year, my
wife joined me, and we moved to the main Embassy residence, which as you know is a
beautiful building with a huge pool, tennis courts, a wonderful property. It was without a
doubt the nicest residence we lived in through my entire career.
Q: What sort of a staff did you have? Did you have the equivalent of a DCM (Deputy
Chief of Mission)?
PERINA: By and large, there was an excellent staff of very committed people. My first
year I did not have a formal DCM because I was in the DCM position but I asked Jim
Swigert, the head of the economic and political Section, to serve as the acting DCM. He
was outstanding and helped me immensely because he had been there the previous year
and provided continuity. When I moved into the chief of mission position as a permanent
Chargé d’Affaires, I did recruit a DCM who was Larry Butler.
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