CONDITIONS IN YUGOSLAVIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A003300080004-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: January 13, 2010
• Sequence Number: 4
• Publication Date: January 12, 1954
• Content Type: REPORT

Sanitized Copy Approved for Release 2010/01/13: CIA-RDP80-0081OA003300080004-3
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY Yugoslavia
SUBJECT Conditions in Yugoslavia
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
REPORT
DATE DISTR.
NO. OF PAGES
REQUIREMENT NO.
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
12 Jan. 195+
5
RD
Political Situation
1. Life in Yugoslavia is always conditioned by internal and foreign events.
Last year when. the pressure of the Soviet Satellites was at its peak, the
main Yugoslav problem was to prosecute Cominformists. Strict measures
against suspected Cominformists were undertaken and numerous arrests were
made. Many individuals were interned in concentration camps merely for
criticizing the economy or living standards. One of the better known
concentration camps is Mermer, a: desolate and uninhabited island south
of the Island of Rab. The labor there was hard; an entire settlement was
constructed. This included a modern hotel for the administrative staff
and a detachment of guards. Many internees at Mermer died as a result
of the hard-work and severe treatment. This camp is reportedly organized
along, the same lines as concentration. camps in Nazi Germany. Pre-war
Communists were interned at Bilece, but recently this camp has been used
again by the Yugoslav Government. Life in various concentration camps has
allegedly been improved, with less hard labor, and increased emphasis on
political re-education, The Yugoslav authorities are apparently anxious
to show the rest of the world that we now have a democracy in Yugoslavia.
This, however, is still very meager.
STATE
NAVY x AIR---x IFBI AEC
(Note: Washington Distribution Indicated By "X"; Field Distribution By "#".)
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2. Yugoslavia is apparently not taking steps for a rapprochement with the
Soviet Union. Official speakers in Yugoslavia. still continue to talk
against the Soviet'Union and the Yugoslav people hate the Soviet Union.
too mucha The people fear the Soviet Union, but they also fear that
the Yugoslav Government may revert to"the situation which existed during
1948 in pre-revolutionary days.
Economic Conditions
3. J'udg; from all appearances, living conditions have improved
One can buy almost anything now, although prices
are still excessive. -Living is extremely difficult particularly for the
white collar class and intellectuals, who receive the lowest salaries.
The harvest helped a great deal; there was a good harvest inn the Banat
area and in Serbia, but- not in Slovenia.. Vineyards in Slovenia were
damaged by frost, hence the area is practically without wine. The coa
operatives received large shipments of grapes from Serbia,, and even
the peasants boukht quenti.ties of them.
4. On the one hand, commerce has been liberalized so that is is possible to
make small earnings on the side. On the other hand, restrictions con-
tinue. It appears that economic regulations may intensify the grave
economic situation. No one has been found capable of replacing the late
Boris Kidric as President of the Federal Economic Council. Svetozar
Vukmanovic-Tempo, who assumed Kidric's-post, is regarded as incapable
of mastering his job. Kidric is said to have destroyed everything and
reconstructed again. In principle, Edvard Kardelj, Vice Presient of the
Federal Executive Council, who is presently engaged in the planning of
economic policy, is merely a theoretician. Everything is going downhill.
Slovene demands are frequently ignored in favor of the Bosnians, Serb-
ians and Macedonians. The latter groups get everything, but the Slovenes
have to wait because "they are more papal than the Pope himself".
5. lest year, it seemed that things would improve with the establishment of
workers' councils to manage factories and workshops and determine the
distribution of profits. The Yugoslav authorities soon discovered the
impossible situation of allowing the workers themselves to share the
profits, so they have now ordered that all profits be deposited with the
:State Treasury. Lest year it was possible to obtain foreign exchange
for foreign travel and it was legal to obtain money drafts for the same.
Now it is illegal to obtain such drafts. Any individual who is found to
have such drafts in his possession is subject to fines and penalties.
On the one hand, poor management eats up everything; on the other hand,
heavy industry and the Army eat into our economy. The Army alone
reportedly costs over 250 billion dinars per year; this year this ex-
penditure may double.
Atural Situation
6. The agricultural situation in our country is very tragic. The Govern-.
ment refuses to understand that Yugoslavia is an agricultural country,
and is converting everything into industry, thus bankrupting agricul-
ture. The effect of this policy can be seen primarily in the process-
ing cooperatives, which were established by force, and as a result of
heavy taxation,, the peasants were forced to join them. Finally, the
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Government realized that it could not force results, so it dissolved most
of the cooperatives. This experiment was costly - farmers refused to work
as they would have done normally for themselves and their families without
a whip over them,-inasmuch as they were merely employees working according
to fixed schedule, a thing which does not make sense in our farming. Des-
pite'subsidie's by the State and tax exemptions for cooperatives, the'system
did not work. Farmers, who because of heavy taxes imposed upon them, could
not afford to modernize their equipment, as prescribed by Government decree,
were forced to declare bankruptcy, and as a consequence there was a rapid
decrease in overall agricultural production. The Government solved the
problem by importing food which at one time was a matter of surplus and
export o
7. The recentcrisis caused people to buy large quantities of food
items for hoarding. There have been queues in front of food stores, and
fats and flour disappeared in a few days. The Government and the press
initiated a campaign against hoarding. Sales employees in certain parts
of Slovenia, were imprisoned for overselling.
8. The new, law, which provides that no peasant may own more than 10 hectares
of lend, has resulted in poor economy. Some'of the land has been taken
from the peasants in order to be transferred to public estates. As a
result, the soil will again be uncultivated and lost to'the community.
Settlers have been sent to some communities, but these individuals are
not farmers and do not know how to till the soil. Farmers and peasants
are losing all, interest. The people are getting tired of the present
situation and are hopefully waiting for a change in the system. However,
Attitude of Yugoslav People Tovard West
9. The people in Yugoslavia have looked h efull
There has been constant talk that would help to bring
more democracy to our country, but now when a new blow is being prepared
against the tradespeople, all hope is again vanishing. At a recent public
meeting in Zagreb, the tradespeople demonstrated by shouting that they
would march to Mar?kov Square, as the rebels did in the days of Mati.s. Guber_l
10. Our police regime has made man concessions t, but all this
is turning into nothing now 7. The influence
of the West penetrated all public ' life including Communist Party member-
ship in Yugoslavia, to such a degree that the Central Committee of the
Party felt obliged to address an open letter to the working class with the
aim of combating Western influence among the Communists. This open
letter was studied in all Party meetings, and methods of halting this
Western influence were discussed. Police measures have allegedly been
taken,against Western-oriented individuals, particularly against intel-
lectuals and students. The Party appealed to the working class 'and
youth organizations to help halt the spread of Western propaganda. The
campaign was unsuccessful, even insofar as various decrees directed
against the Catholic clergy were concerned. The Government insists that
the clergy is in contact with Yugoslav Catholic emigres
in the West.
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