CZECH-YUGOSLAV TRADE TREATY FOR 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002900700006-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 25
• Document Creation Date: December 19, 2016
• Document Release Date: October 25, 2005
• Sequence Number: 6
• Publication Date: July 21, 1949
• Content Type: REPORT

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 FORM NO. 51.4A
SEPT.1948
25X1A
COUNTRY Czedhoslovakia/Yugoslavia a.1.
SUBJECT Czech_Yugoslav Trade Treaty for 1949
PLACE_'
ACQUIRED
25X1 C
DATE OF INFO.
25X1A,
ILLEGIB
DATE DISTR. 21 JUL 49
NO. OF PAGES 24
Lj,
NCO 0 EF D BELOW)
SUPPLEMENT TO
REPORT NO.
COW?QENt_
25X1
25X1
25X1
Ministry of Foreign Trade
1. Section V/I
Yugoslavia---Agreement Concerning Exchange of Goods and
Payment for Goods
Reviewed by Dr, Sestak / Extension 197/
Confidential!
On 1 March 1949 an agreement was signedproviding for an exchange of
goods between Czechoslovakia and Yugoslavia during the period 1 March 1949 to.
31 December 1949.
New dontingent agreements are contained in the attached lists of goods,
.A/ imports and B/ exports?
Kce, and 126 items of -office egatpmoht -tota , 12,000,000 Kcsy The goods
which are a part of this lister are covered in letters exchanged between the dele--
gates`on 1 March 1949 and which are attached to the agreement. Exchanges be-
tween individual items in this category can be achieved-only after.mutual;.agree-
mefit has been reached,
App vv Ior I(efease 224 : C A RDP82-0045 R002 0070 0
CENTRAL INTELLIGENCE AGENCY REPORT NO.
INFORMATION REPORT CD NO.
The supplement to export'' B cc9ntains consumers goods primarily
usehold nedessfties total-l-
and, in-that category, there are 50 items covering
21
ing 55,000,000 Kcso 51 items for agriculture totall'g Z@,500,00 cs, 52 items
of sports'. goods, educational aids, and musiea -instruments tote _ , 21,500,000
According to Agreement 4, purchasing and sales contracts must be
completed within three months of the signing of the agreement, that is by
31 May 1949,
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CENTRAL INTELLIGE ICE AGENCY
-2-
B'3 6t'VWt the' d?Iet; -on I Marc
For the Minister
(Signature illegible)
6.j.II/1-3302/58-1949
TO. THE PRESIDIUM OF THE GOVERNMENT
The Ministry of Foreign Trade
25X1A
Q1 4,o 1949
IN PRAHA
F } R PUBLICS OF YUGOSLA1VI91I
XC:}W G E &G$ .B wwN tHE REPUBLIC OF CZECHOSLOVAKIA AND THE FEDE tADWN
PROTOCOL FOR THE RESOLUTION OF THE GOVERNMENT REGARDING THE MERCHANDISE
Renewed by Dr. Hacova / Extension 468/
B a de gag ion 3"n r _the fo owing do ants, covering
1 "Merchandise Exchange Agreement between Czechoslovakia and Yugoslavia"
:ed on 1 March 1949 and including List A regarding merchandise exports
from Yugoslavia to CSR and List B regarding merchandise exports from CSR
to Yugoslavia and, two letters of the Chairman of the Czechoslovak Trade
Delegation ad[dreased to the Chairman of the Yugoslav Trade Delegation.
2 "The Payment Agreement For Merchandise Exchanged Between CSR and Yugo?
sloes14is ratified on I March 1949 and three le;" of the Chairman of the
Czechoslovak Trade Delegation,
1 i9os a t* r o r Tr a Delegation addrr 3ed
40 C, h r f. TL .. ~fl41g
3 ""TieAgreement Regarding Payment Other Than For Merchandise" ratified on
1 Marfch 1949 together with three leof the Chairman of the Czechoslovak
Trade Delegation.
The agreements shall be valid from 1 March 1949 to 31 December 1949.
Should no new agreement be concluded by'the end of this year the validity
of these agreements shall be extended for three.months,
The Mi.niater r of Foreign Trade together with the MifiisteW of
Foreign Affairs submit the above mentioned agreements _together With enclo-
sures,l and as special report regarding the negotiations in Belgrade, and
propose to the Government the passage of the following resolutions:
ber_1948 Following our delegation the 21st meeting on 16 Novem-~
on for the purpose of negotiating
commercial-political questions with Yugoslavia (the letter of the Presidium of
the Government dated 16 November 1948 c.j.1575/48), the Government agrees to
accept the proposal of the Minister of Foreign Trade and of the Minister of
Foreign Affairs specified in the report of the Minis'er#y'af Foreign Trade
dated 16 March 1949 c0.II/1-3302/58-1949 and approves,
A /."The Merchandise Exchange Agreement Between the Republic of Czechoslovakia
and The Federated People's Republics of Yugoslavia" ratified on 1 March 1949,
together with It concerning mercWise exports from Yugoslavia to Czecho-
merok t 1..e Cza i aria
L I.fS!..QFF CI,ATS ONLY
This document is hereby regraded to
CONFIDENTIAL in accordance with the
letter of 16 October 1978 from the
Director of Central Intell.gence to the
Archivist of the Unite(A%d `For
Next Review Date; 2008
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Date;
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ugoe av :a f: Ch 1 Iarah
Delegation,
C "The Agreement Regarding Payments Other Than For Merchandise" between
the Republic of Czechoslovakia,and the Federated People's Republics of
Yugoslavia~1ratified on 1 March 1949 together with three letters of the
Chairman of the Czechoslovak Trade Delegation.
Fore action to the Minister of Foreign Trade and the Minister of
Foreign Affairs and other participating members of the Government;
749 together with three letters of the Chairman of the Czechoslovak Trade
Dr, Gregor v,r,
11/1-3302/58-1949
ALL ADMINISTRATIVE OFFICFS CLASSIFIED "A",
THE NATIONAL BANK OF CZECHOSLOVAKIA IN PRAHA
for Information
Dr. Gregor v.r:..
Commercial-political negotiations regarding the exchange of
merchandise between Czechoslovakia and Yugoslavia in 1949 were opened
on-24 November 194e, in Belgrade. From the very beginning there were
-great differences` f opinion. The Yugoslav Delegation expected the volume
of this agreement to be 2.5 billion Kcs, while the Czechoslovak delegation,
because of production and delivery capacity, would not agree to more than
1,6 billion Kcs.for both signatories..
In addition, the Yugoslav delegation offered merchandise of
secondary importance for us such as wine, distillate, tobacco, fruit,.and
vegetables, amounting to more than 50 percent of the total and did not
sufficiently satisfy our demand for more important articles such as non
ferrous metals, iron ore, pyrites and similar minerals, ea corn, and
fodder. In the course of the discussions we managed to minimize existing
differences,, but still the Yugoslav offer of,non-ferrous metals has note
been.satifying for us. The. Yugoslav delegation indicated that, to improve
their offer, Czechoslovakia would have to deliver to Yugoslavia more coke,
rolled material, steel machinery, fire-resisting-material, and tires, and
it would. also have to supplement'its offer of special military material,and
trinitrotoluene Because the Czechoslovak delegation could not satisfy this
specific demand without previously consulting the Prague office, negotiations
were broken off on 20 December 1948.
In January 1949, the Czechoslovak. delegation prepared new lists of
merchandise to be imported and exported and some of the Yugoslav.demands
.were included in them. The Czechoslovak export list quota was somewhat in-
creased for all the articles formerly demanded by the Yugoslavs, with the
exception o re esisting material. Special military demands,, and.trini-
trotoluene4'no includedin the list.
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After one mo WX, is 7T , 3:c mat 6r di zcult be~ cause of
Yugoslav insistence on their" ?revious demands and their stubborn refusal
to meet Czechoslovak demands in regard to the equalization of import and
export of economically important merchandise, it seemed that the negoti-
ations would be broken off entirely, but finally the "Agreement Regarding
Merchandise Exchange between the Republic of Czechoslovakia and the Fed-
erated People's Republics of Yugoslavia" and the "Agreement Regarding P
ments Other Than for Merchandise betwr:een Czechoslovakia and Yugoslavia"
were ratified on 1 March 1949.
The Merchandise Exchange Agreement is to be valid until 31
December 1949 and the volume amounts to approximately 1,540 billion Kcs
for both signatories.
~
J According to List A, Yugoslavia will supply Czechoslovakia
with the following economically important merchandise in the amount of one
billion Kcs?
FOODSTUFFS, corn, oil, oil-cake, meat,
poultry, and eggs
LEATHER, raw leather and tannin
TEXTILES, hemp and,tow
CHEMICALS, various chemical and raw materials
T =,R
MINERALS AND 1~2T:A.LS, iron ore, chromite, pyrites.,
ferro-alloys, bauxite, mercury
NON-FERROUS MBT.ALS, lead, copper, zinc, and bismuth
238 million Kee
31 million Kcs
112 million Kcs
30 million Kcs
80 million. Kcs
122 million Kcs
241 million Kcs
TOTAL 994 'million Kcs
Yugoslavia will alsoupply Czechoslovakia with the following mer-
chandi
f
se o
secondary importance:
FOODSTUFFS, apples, dried pltuns, grapes, nuts, figs,
fruit pulp, fruit juice, fish, marmalade,
wine, distillate, and molasses
TOBACCO
FEATHER, raw furs, pigskin
CHEMICALS, assorted chemical products
MINERALS . barium, plaster of Parts
OTHER MATERIALS AND PRODUCTS, horns and hoofs, sea mushrooms,
books, periodicals, merchandise
4layed at the Praa.e Fair
264 million Kcs
120 million Kcs
31 million.Kcs
10 million Kcs
3 million Kcs
14 million Kcs
442 million Kcs
In addition to the above lists there is.a quota of 100 million Kcs
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and half finished products,
other metallurgical products
10 million Kcs
is, ocrews,chains, welding
ectrodes, metal sieves 15 million Kes
PRODUCTS, machinery, automobiles, electric m
motors, cables
CHEMICAL PRODUCTS xna,eh a ..~,
PAPER, cellulose'
CERAMICS, fire-resisting material, electro-
porcelain, graphite products
RUBBER, TEXTILES, tires, felt
GLASS, sheet glass, special glass
Other .MTAL PRODUCTS, implements and tools, pumps,
automobile spare parts and
equipment,telecommunication
equipment, electro-technical equipment, optical
instruments, agricultural machinery and light
industry products
240 million Kcs
CHEMICAL PRODUCTS
26 million Kcs
?1PER, different qualities of paper paper
products
CERAMICS, clays, hygienic earthenware, tiles,
Czechoslovakia will supply Yugoslavia with the following goods
~nnrt:annm.
porcelain, pencils, graphite, asbestos
ical instruments, books,
periodicals, merchandise displayed
at the fair
4.5 million Kcs
95 million Kcs
5
13 '-
41?5 it
TOTAL 450. million Kos
In addition to the above, there is a quota of 100 million Kos
for merchandise not mentioned in the list.
In the course of negotiations,. we complied with the request of
Yugoslavia and consolidated separate Czechoslovak consumers goods items
into four distinctive categories, In order to assure that . within the
framework of these categories, the particular Czechoslova merchandise
to be exported is clearly understood, letters were exchanged between the
chairmen of both delegations through which it was agreed that any trans-
actions within the framework of these categlries can be made only if both
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Both Lists A and B are to be understood as obligatory deliveries
(Article 3 of the ,agreement) and contracts for sales within the framework
of agreed quotas sf be concluded within three months, except for sea-
sonal merchandiserticle 4) Other articles in the text of the agree-
ment correspond to texts of previous agreements.
Our delegation also negotiated terms of agreement regarding
the status of Delegates of privileged companies in both countries. The
Yugoslav demand did not correspond to our proposal and was based on the
establishment of a central commercial representation to which all dele-
gates would be subordinated both administratively and disciplinarily.
Since no agreement could be reached which was satisfactory to both
countries,the chairmen of both delegations agreed that, until the end
of trade negotiations, the present status would continue and that both
countries would guarantee that the principle of reciprocity is strictly
adhered to in accordance with valid legal arrangements of both countries.
According to the Article 2 of the agreement regarding payments
between the two countries, the so-called manipulation credit is fixed
at 300 million Kos, In this respect it was agreed between both chairmen
that the said credit should be increased by 50 million Kcs between 1 March
1949 and 30 September 1949. The purpose of this arrangement is to enable
exchange of Czechoslovak merchandise in periods of time when Yugoslav
deliveries? because of their seasonal character, cannot be fulfilled,
Also,?letters were exchanged, to confirm that the official rate
of exchange of" tie Czechoslovak crown and the US dollar in Czechoslovakia
shall be 50 to hand, at the same time, provisions were made in case this
ratio is changed;
Further letters were exchanged to confirm the agreement regard-
ing the manner of payment by letters of credit, which must be established
14 days prior to dispatching merchandise, and 30 percent of the purchase
price must be paid in advance.
The agreement regarding payments other than for-merchandise
specifies establishment of a special account for payments as outlined in
Article 2 ai well as other directives with regard to such payments,
Letters were exchanged to confirm the agreement regarding payments
for transportation, financing of tourist trips from Czechoslovakia to
Yugoslavia, and remittances by Yugoslav citizens in Czechoslovakia including
liquidation of personal and landed property and to confirm the agreement
stating that Yugoslavia will aid transportion of Czechoslovak merchandise
bir gi g the same advantages offered by any other country in questions
of tportation by land and sea,
The Merchandise Exchange Agreement and the Payment Agreement
and both w - 4rl ,antil December 31, 1949. If no other agreement Ia
will tome into force on the day of ratification, that is on 1 March 1949
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G+ V AL INT NCE N r
Both signatories recognize the Trade and Payment Agreement, ratified on
14 November 1928, with the exception of those customs regulations
promulgated in subsequent agreements which are not in accord with post-
war economic conditions, to be a satisfactory mutual trade arrangement unless
his agreement by another which is
Exchange of mere ana? yr ie` car-` t 7
both-of which are a part of this agreement.
additional lists may be agreed upon,extendi
Article 3.
Both signatories are obliged to insure the. delivery of merchandise accord
ing to Lists A and S.
Article 4,
Both signatories will take necessary measures to guarantee that, between
importers and exporters of the Czechoslovak Republic and Yugoslavia,
necessary contracts of sale will be negotiated and enforced within the
framework of stipulated quotas contained in List A and B.
According to the Article 1 of this agreement, contracts for sales and pur-
chases will be concluded within three months? In exceptional cases, con-
tracts for sales and purchases may be concluded in the course of the
validity of this agreement, especially in the. case of seasonal goods or
quotas described as;"various". Following the conclusion of contracts be-
tween importers and exporters,a special commission established according to
Article 10 of thisagreement-will review special, protocol price and delivery
terms of concluded contracts.
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Article 5,
The Government of the Czechoslovak Republic will confirm import and export
licenses. or permits to authorized import and exports companies for merchandise
enumerated in Lists A and B in corresponding amounts and prices (total values)
mentioned in both lists. The Yugoslav Government will grant import'and ex-
port licenses-to-authorized import and export companies for merchandise
enumerated in Lists A and B in amounts and prices (total values) mentioned
in both lists.
Article 6.
Merchandise exported from Yugoslavia to Czechoslovakia will be delivered
free of any charges to the Yugoslav border or FOB any Yugoslav river or
seaport.
Merchandise exported from the Czechoslovakia to Yugoslavia will be delivered
free of any charges to the Czechoslovak border or FOB the Czechoslovak
river port on the Danube.
Article 7,
As to the quotas enumerated in Lists A and B, no other compensations will
be permitted,
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Payments resulting from exchanges of merchandise will be regulated ac-
cording to the Agreement on Payments for Merchandise which is part of
the agreement,
Article 9,
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Priced enumerated in the &tt"0ed. )fists A and B will be negotiated dict-
ly between importers and Lxporters of both countries. If difficulties
arise during these negotiation y Misunderstandings shall be mediated
by mutual agreement betweentth airman of the Czechoslovak p43^t of the
Commission to be established according to Article 10 `off this agreement',
together with the Commercial Attache of Yugoslavia or with the Chair-
man.of the Yugoslav Delegation in the Commission,' If the dispute is not
settled within 15 days, the Commission itself shall decide.
Article 10,
For the purpose of facilitating the exchange of merchandise between
both countries, a special Commission will be established to which
each signatory will nominate three members whose responsibility will
be:
1 to remove any difficulties arising out of merchandise exchanges in
regard to price and delivery germs.
2 to insure that importers and exporters of both countries conclude
their respective contracts on time as outlined in Article 4 para-
.graphs 2 and 3 of this agreement,
3 to-insure that merchandise is delivered within the time limits fixed
by the terms of the respective contracts,
4 to' insure that the terms of this agreement are strictly adhered to
and to suggest proposals: for the removal of any obstacles which may
hinder the exchange of merchandise..
5 to suggest poenih&-b changes or supplements to quotas enumerated in
Lists A an' B.
The Commission will be nominated within 45 days after the ratification
of this agreement and will meet alternately in Prague and in Belgrade
every three months.. The chairmen of the Czechoslovak and Yugoslav dele-
gations to this Commission may summond a meeting at. any time if both of
them agree,toThe location of these additional meetings will be arranged
at the time. .
Article 11.
Quotas termed as "various" in both lists will usually be applied to
merchandise imported and exported which is not otherwise specified in
Lists A and B. but, if both signatories agree, merchandise from Lists A
and B may also be included,
Article 12,
This agreement will be valid from the day it is ratifiedand its validity
will expire 31 December 1949. If at this time no other' new exchange
agreement has been concluded, the validity of this agreement will be ex-
tended..for another three months. Deliveries of merchandise under con-
tracts made according to this agreement between importers and exporters of
both countries may be made even after the expiration of the 31 December
1949 time limit, If after the expiration of the validity of this agree-
ment, a balance remains to the benefit of either signatory., both of them
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al.l discuss within three months tie manner and conditions of settling
the balance, The balance shall be.. id in merchandise within three
months after agreement has been reached.
Article 13,
This agreement was prepared in two originals, in the Czech and Serbo-
Croatian languages,each of which is an exact translation of the other.
Belgrade, 1 March 1949
For the Republic of Czechoslovakia For the Federated People's
Ing. Pleva v.r. Democratic Republidirof
Yugoslavia:
Nikola Popovic v.r.
L I S T 'A.A
Quantity
Value in 1,000 Kcs,
2,
3.
4,
5.
6.
Corn
Bran
Fresh grapes
Winter apples
Nuts.in shells
Carbb
54,000 tons
1.2000 n
1,000 it
7,600
7., Figs
500
8,
Fruit *xtract
12,000
9.
Marmalade
13,000
10.
Onions
4,000
11.
Garlic
1.0000
1.2.
Dried plums
30 o00
13.
Oil cake
5,000
14.
Wine Distillate
200
15.
Wine
2.0800
16.
Mill refuse
17.
Fruit pulp
600
18.
Various agricultural products
12,0000
19.
Pork meat
45,,000
20.
Dressed poultry
15,000
21.
Mutton and lamb meat
15,000
22,
Fresh eggs
10,000
23.
Sea fish, fresh and salted
x,000
24.
River fish.
12,000
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Fish canned in oil
10,000
26.
Sponge
3,000
27.
Horns. and hoofs.
3,000
28.
Sheep skins
40 tons
29.
Goat skins
40 tons
.30.
Kid skins
60 tons
31.
Lamb skins
100 tons.
32,
Deer and other skins
25,000
33.
Pig skin
200,,000 sq, feet
34.
Tobacco
1,500 tons
35.
Tow and hemp
2,500 tons
36.
Green tow and hemp
2,000 tons
37.
Timber
80,000
38.
Potassium methyl-sulphate
20 tons
39.
Magnesium sulphate
600 tons
40.
Tartaric acid
p.m.*
41.
Glycerine
100 tons
42.
Dry;-dbstllate products
3,500
43.
Formaldehyde
200 tons
44.
Purple dye
150 tons
45,
Tannin
500 tons
46.
Pyrite extracts
1,500
47.
Etheriel oils
2,000
48,
Insecticides for industrial purposes
1,500
49.
Calcium soda
2,000 tons
50.
Medical herbs
3, 000
51.
Aromatic herbs
500
52.
Opium
3 tons
53.
Pharmaceutical products
2,000
54..
Various chemical products
5,000
55.
Barite
1,000 tons
56.
Amorphous magnesite
150 tons
57.
Caustic mapnesite
2,000
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 66.
Raw zinc
400 tons
67.
Mercury
SO tons
68.
Bismuth
10 tons
69.
Ferromanganese
p.m.
70.
Books,- periodicals,domestic
4rt products
3,000
71.
Merchandise displayed at the fair
5,000
72.
Various products
100,000
,2Rantity V. In,
58.
Roasted gypsum
1,000 tons
59.
Pyrites and concentrates
70,000 tons
60,
Iron ore
80,000 tons
61.
Chromium ore concentrate
8,000 tons
62.
Bauxite
3,000 tons
63.
Ferrochrome
250 tons
64.
Lead
6,700 tons
65.. Copper 2,500 tons
MERCHA L I S T
Coke
2 , Powdered coke
3..
4.
Rolled material
Refined steel and its
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5, Steel products including forgings and
pressed products
Non-ferrous metals and its semi-
1!antity
190,000 tons
20,000 tons
18,000 tons
2,000 tons
200 tons
Steel an cables 500 tons
8. Nails
9. Sheet-metal rivets
13.
400 tons
200 tons
Value in 1,000 Kea
Hard metal and hard metal tools
2,000
Forged chains
750
Welding electrodes
2,500
Metal sieves, excluding those made from
phosphorus bronze
2,500
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14. Cylinders for rolling mills 15,000
15. Various metallurgical products and
semi-finished products
16. Steel cables
17. Instruments for metal testing
18. Instruments 'bf ood working, and an
assortment of saw blades
19., Metal tubing
20. Boiler fittings
10,000
20,000
16,000
7,500
1,000
7,000
21. Wood working machines, including spare parts 10,000
22. Machine tools including spare parts 15,000
23. Riesel rollers and cement mixers 8,000
24. "Converters and similar equipment 10;000
25. Tractors including spare parts
5,000
26. '.Machinery and spare parts for the chemical
industry 5, 00:1
27. Leather and rubber industry machinery 1,500
28. Various pumps and equipment for gasoline stations 3,000
29...Equipment,for distillation-and refining of oil 10 000
30. Various machinery and spare parts 25,000
31. Motor vehicles:
at "tr~cks, .7 ton, with spare parts 00,,000
b/ bisssand spare parts 30,000
f
omobiles and spare parts 20,000
a/ a t
d/ motorcycles and spare parts 5,000
32. Semi-fin#hhed products for production of trucks 12000
33. Mechanical equipment for motor vehicles 15,000
34. Electrical equipment for motor vehicles 10,000
35. Machinery for high frequency metal hardening, 2,000
36. Electl measuring instruments 2,000
37. Electrical welding machines and weldings transformers 2,500
38. Magnets 1,000
39. Telecommunication equipment 30,000
40. Radio telegraph.equipment 3,000
41. Low-frequency switchboards 1,000
42. Electro installation equipment, including steel
insulation pipes 8,000
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43, Electro-iristaliation material
44.
45,
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Cables and electrical conductors
5o000
U
Optical and mechanical: instruments and tools
7,500
46. Electric rectifiers
47. Various electro-mechanical equipment, machinery,
tools, instruments, and spare parts
48. Detonators
49, Agricultural machinery and spare parts
50. Kitchen utensils and various material for trades
51. Various agricultural necessities
52, Athletic equipment and musical instruments
53.. Mined lamps and other lamps
54, .
Fireengines and spare parts
55,
Kitchen equipment
56.
Machinexyfor laundries and dye factories
57.
Lenses, including frames
58,
Fittings and locks
59
Dental instruments and tools
60.
Respiration instruments
61.
Radio sets, radio tubes 150 tons
62.
Naphthalene 100 tons
63.
Creosote.-oil 800 tons
64.
Active coal 100 tons
65.
Oxalic acid 75 tons
66.
Manganese 5 tons
67.
Lactic acid 100 tons
68.
Sodium hyposulfite 100 tons
69,
Sodium bisulfite 35 tons
70,
Sodium sulfite 100 tons
71.
Sodium fluoride 2 tons
72.,
Metal hardening salts and weld-
ing powders
500
15,000
4,000
25,000
55,000
10,500
21,500
2;,000
3,000
4,000
4,000
1,500
3,000
2,000
$,000
2,000
73.
Galvanic salts
500
74,
Formic acid
75 tons
75.
Photographic material
5,000
76.
Coal tar dyes
150 tons
77.
Laboratory chemicals
60 tons
78.
Sodium cyanide
60 tons
79.
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Quantity Value in 1.000 Kee
77.
Laboratory chemicals 60 tons
3,000,
78.
Sodium cyanide 60 tons
79.
Ammonium chloride 50 tons
80.
Ammonium nitrate 2,500 tons
81.
Diammonium phosphate 20 tons
82
Ex
l
i
.
p
os
ves 10,000
83.
Aniline salts and oils 45 tons
84.
Dinitro-orthocresol 10 tons
85.
Zinc chloride, chemically pure 30 tons
86.
Potassium hydroxide, 20 tons
87.
Phenol p.m.
88.
Phenol-creosol mixture 50 tons
89.
Dibasic. andtribasic sodium phosphates 50 tons
90.
Fluoran 100 tons
91.
Chemicals for graphic industries, in-
eluding printer dyes etc.
2,500
92.
Ceramic enamel and glazing 100 tons
93.' Carbon disulfide 50 tons
94.
Insecticide
1,500
95.
Pharmaceutical raw materials and dental
material
10,000
96.
Nitrocellulose 20 tons
97.
Coal tar and coal tar pitch 1,800 tons
1,
98.
Phonograph record resins 10 tons
99,
Benzine and.its homologues: 120 tons
101%
Textile and leather industry and raw materials
5,000
100,
Various chemicals
15,000
102
Cellulose 500 tons
.
103,
Special treated paper
1 500
104.
Multiplying dies
105.
Different cellulose and paper products
3,000
106.
Tires, all kinds and sizes
25,000
107.
Rubber goods
5,000
108.
'Leather technical products
109.
Technical felt
2,000
110.
Fireproof clay "SK 34"
3,000 tons
ill. Slate clay 4,500
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CEId I AL INTELLIGENCE AGENCY
Quantity
Value in 1,000 Kcs
110.
Fireproof clay "SK 34" 3,000 tons
111?
Slate clay 4,100 tons
112.
Burnt magnesite 1,750 tons
113.
Dinas, fireproof bricks 2,500 tons
114.
Fireproof bricks 4,000 tons
115.
Kaolin 2,000 tons
116,
Graphite products 30 tons
117.
Electro-porcelain 500 tons
118,
Hygienic earthenware
20,000
119,
Utility porcelain and china porcelain
40,000
120,
Carborundum 140 tons
121,
Chemical, technical, and acid-
resisting earthenware
1,500
122.
Fencikk and pencil leads
20,000
123.. Asbestos products
124.
Sheet glass
16,000
125.
Laboratory glass
2,000
126,
Office machines and utensils
12,000
127.
Books, periodicals, music,and similar material
3,000
128,
Merchandise displayed at the Fair
5,000
129.
Various merchandise
100,000
'Belgrade, 1 March 1949
Mr. Chairman,
I have the honor to acknowledge the receipt of your letter dated
1 March 1949,-"containing the following text:
During negotiations in Belgrade between the delegates of Yugoslavia and of
Czechoslovakia, we agreed that the h:nafter mentioned consumer goods are
to be divided into four quotas, which'ar6 to be a part of List B attached
to the.ratified agreement.
gera ar equ~'pmen a ce boxes 6,000,000
3, Stoves, wood stoves, and other than electrical
cooking stoves.
f CONTROL U. S. OFFICIALS ONLY
5,000,000
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 Approved For Rel~ease~2005101724 :BC&'-R'9SZ -%~t%MW2900700006-1
4. Razors
3, 000x,000
5?
Metal furniture
1,000x000
64
Various tin-coated and zinccoated products
3,5009000
7
Sheet metal kitchen and household utensils
3,500,000
8.
Brushes
100,000
9.
Shoe nails and tacks
5,000,000
10.
Various heaters
2,500,000
11.
Sewing machines and spare parts
800000000
12.
Bottles, hollow glass, and pressed hollow glass
8,000,000
13., Light bulbs
3,000,000
14.
Glassware
2,000,000
15.
Cellulose and plastic products
2,000,000
II. Tools, implements;and other needs for agriculture in the total amount
of 10.5 million Kos, consisting of the following quotas:
11
Cutleryincluding razor blades and hair clippers
4,500,000
Small metal articles ,including needles, buckles, and
fountain pens
3,000,000
3.
Garden and vineyard tools, cattle shearing equipment
3,000,000
III? Athletic equipment, educational needs, and musical instruments in
quotas:
1.
Bicycles and spare parts
7,500,000
Hunting firearms and ammunition
3,000,000
3.
Bicycle and motorcycle chains
1,000,000
4.
Wooden athletic equipment
2,000,000
5.
Educational needs
5,000,000
6.
Musical instruments
3,000,000
IV. Office machinery and other needs in the total amount of
consisting of the following quotas:
the total amourf-of 21,5 million Kcs and consisting of the following
12 million Kes,
1.
Typewriters, copying machines, addressing machines
4,000.060
Fountain pens and pencils
3,000,000
3.
Office needs
5,000,000
At the same time I have the honor to c onfir:n that any changes in
quotas as mentioned above may be achieved only by .mutual agreement
of both s1gnateriea and according to their delivery possibilities.
I seal appreciate, Mr. Chairman, if you would kindly confirm the
receipt of this letter,
To
Nikola Popovic
Chairman of the Yugoslav Trade-Delegation
Belgrade
Ing. Pleva, v.r..
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9. PANT AGREEMENT REGARDING EXCHANGE OF MERCHANDISE BETWEEN THE REPUBLIC
OF CZECHOSLOVAKIA AND THE FEDERATED PEOPLE+S REPUBLICS OF YUGOSLAVIA;]
The Government. of the Repbblic of Czechoslovakia and the
Government of Yugoslavia have agreed to arragge mutual payment, contracts
arising out, of the Merchandise Agreement ratified today?
Article 1.
The National Bank of Czechoslovakia henceforth shall maintain a banking
account, bearing no interest and valid in Kcs, in the name of the National
Bank of Yugoslavia under the name "Merchandise Account" (account A) opened
on. the basis of the Merchandise Exchange Payment Agreement of November 28,
1945 and the Merchandise Exchange Payment Agreement of September 20, 1946.
Into this account will go all, deposits representing the value, of Yugo-
slav merchandise as well as , er costs, The same: account will be charged
with the total value of Czechclovak merchandise, including other costs.
Article 2.
The $ational banks of both signatories are obliged to make payments ir-
respective of the balance of the accounts, as specified in Article 1 of
this agreement, with the provision that balance shill not be higher than
300,000,000 Kcs (three hundred million Kea).
Article 3,
The amount mentioned in the previous article may be modified by mutual
agreement by both national banks of the two signatories.
Article 4.
The account mentioned in the Article 1 of this agreement may also be used
for payments for other merchandise exchanges if both $ational banks agree
and if such payments are not regulated by other special agreements be-
tween both signatories.
Article 5,
If the account mentioned in the Article 1 of this agreement shows any
'balance after the termination of the validity of this agreement, it
shall. be settled by the debtor country in merchandise deliveries as
specified in Article 12 of the Merchandise Exchange Agreement ratified
today.
Article 6,
The national banks of both countries shall mutually work out technical
arrangements necessary for proper execution of this agreement.; With
approval of both national banks, transfers may be effected between dif-
ferent merchandise accounts with the provision that such amounts shall
be settled in the original merchandise account.
Article 7,
Payments and receipts for the account specified in Article 1 ofthis agree-
ment shall be made according to foreign exchange regulations valid ' in both
countries,
Article 8,
If agreement is reached between the National Bank of Czechoslovakia, the
National Bank of Yugoslavia, and the bank of issue -of a third country with
which Czechoslovakia and Yugoslavia have valid payment agreements, trans-
fers of amounts may be; effected from .the account specified in Article 1
of this agreement to the account of the'bank of issue of the third country
kept either by the National Bank of Yugoslavia or, by the National Bank of
C
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Czechoslovakia, and also transfers from the.bankof issue account may `be
made to the account of the National Bank o.f Cz.echoslovakia and to the
National Bank of Yugoslavia.
o s agreement.
p
Article 9,
This agreement is valid the day it. is ratified and its validity &@rminates
at the same time as the Merchandise Exchange Agreement which islindivisible
rt f thi
a
This agreement has been writteEh n two originals one of them being in the
other i Se an language, aIeh Mein
translation Czechoslovak
of and the the other.
.
Belgrade, 1 March 1949
Confidential I
Mr. Chairman,
I have the honor to confirm the receipt of your letter of
1 March 1949, which I take the liberty, of quoting here:
"In the course of trade negotiations which took place in Belgrade between
the Delegation of Czechoslovakia and the Delegation of Yugoslavia we
agreed to;
Increase the manipulation credit ` lBnare ded in Article 2 of the Payments for
Merchandise Exchanged Between the Repbblic of Czechoslovakia and Yugoslavia
to be ratified today, by.another fifty million Czechoslovak crowns.
U0
This increase will be valid from 1 March 1949,/30 September 1949, When
this time limit expires, the manipulation credit remains in the amount
anticipated in Article 2 of the Payment Agreement ratified today?
I would appreciate it very much if you would confirm the receipt of this
letter",
Ing. Pleva v,r.
To
Nicola Popovic,
The Chairman of the Yugoslav
Trade Delegation?
Belgrade
I have the honor to confirm that today's official-foreign ex-
change rate of Czechoslovak crown to the US dollar in Czechoslovakia is
50 Kes to 1 dollar,
Mr. Chairman,
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 should this relation of the Czechoslovak Brown to the US dollar
be modified by any changes, the banking account of the National Bank of
Yugoslavia kept by the National Bank of Czechoslovakia as well as balances
kept by other Czechoslovak banks, if they originated by transaction from
the original banking account kept by the National Bank of Czechoslovakia,
shall be modified in accordance with the new foreign exchange rate.
Ing. Pleva v.r.
Nikola Popovic
The Chairman of the Yugoslav
Trade Delegation.-
Mr. Chairman,
Belgrade, 1 March 1949
In the couu'eof the trade negotiations which have been taking
place in Belgrade between the delegations of Czechoslovakia and Yugo-
slavia we have agreed to:
Pay for wholesale manufactured merchandise by letters of credit to be opened
14'days. before shipment of the merchandise. The same day such merchandise
is ready: to be shipped, the seller will inform-the buyer by telegram, In
case that after such notification merchandise delivery is delayed, the
letter of.credit.may be cancelled and a new letter of credit be re-openddd
within 14 days before the day the merchandise is actually dispatched.
For merchandise specially made according to order,. a deposit
will bq demanded of not more than .30 percent of the purchase price.
The remainder of the purchase price shall be paid according to conditions
Of ,the contract with the same provisions as the preceding paragraph.
The mentioned payment conditions are obligatory for imports and
exports.
I shall appreQiate Or very much. if you will confirm the receipt
of this letter.
Ittg,,'. Plena ~r, r
.Nikola.Popovic.
The Chairman of the Yugoslav
Trade Delegation
Belgrade
The Government of Czechoslovakia and the Government of Yugoslavia have
agreed to effect payments other than for merchandise as follows:
Article 1,
Henceforth1the National Bank of Czechoslovakia will establish a banking
account in Czechoslovak crowns, bearing no interest, opened in the name
of Yugoslavia according to Article 1 of the Agreement Concerning Payments
Other Than Merchandise Exchange Payments ratified on 24 May 1948. The
title of this account is "Account For Payments Other Than For Merchandise
(Account C)". This account shall be used for payments in the Czechoslovak
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CETdMAL' MIT#LLIGE1ToAn fi1CY
0
Republic according to instructions received from the National Bank of
Yugoslavia, The National Bank of Yugoslavia shall keep a banking ac-
count in'dinars, bearing no interestpaccording to the Article l .of the
Agreement Concerning Payments Other than. Merchandise ExchangeiPayments
ratified 24 May 1948. This account shall be.used for payments in Yugo-
slavia according to instructions received from the National Bank of
Czechoslovakia.
Article 2,
Accounts mentioned in Article 1 shall be used for following payments:
1, Expenses of diplomatic and other official representatives as well as
expenses of diplomatic missions of both countries,
Expenses of official delegations of both countries.
3. Expenses of trade representations of both countries.
4. Expenses of travellers and tourists of both countries as well as
balances among various tourist agencies with the exception of
railroad tickets,
5. Subsidies to students and medical expenses of sick persons.
6. Subsidies to families and wages to workers.
7,
Pensions and social insurance payments.
Salaries and fees to scientists,.writers, artists, and teachers,
License fees., copyright feesyand other similar fees if such payments,
have not been arranged to be paid in another way.
Expenses of river boat crews.
All payments other than 'for merchandise if agreed to by the national
banks of both signatories and if not regulated by special agreement
between both countries,
Article 3,
All payments e, tfcipated in Article 2 shall be affected according to
foreign exchange regulations valid in the signatory states,
As soon as this agreement is in force, payments anticipated in Article?2;:
shall be effected by transactions made into accounts outlined in Article 10
Article 4,
All payments effected according to this agreement will be madefon the
basis of the exchange rate 100 dinars equals 100 Czechoslovak crowns?
In case the foreign exchange rate of either signatory is changed, the
national bank of the country changing its foreign exchange rate shall
notify the national bank of the other country by telegram one day before
such change takes place and, at the same time, shall stop all payments
to be charged to accounts for payments other than for merchandise. Both
national banks shall exchange mutual balances of accounts for payments
other than for merchandise and determine mutual balance. Any further pay-
Thant shall take place when new foreign exchange rates are agreed upon.
In case of change in foreign exchange rates, balances of both national
banks shall be adapted to the changed foreign exchange rate.,
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 ENT_FtAL IME,
_,LIGEN
If the account for payments other than for merchandise kept by the other
national bank is overdrawn to the amount of=40 million Czechoslovak crowns
or Yugoslav dinars, both national banks shall take measures for the smooth
execution of payments effecting. suck accounts.
The final balance shall be settled within three months after this agree-
ment expires in the manner agreed upon by the signatories.
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Article 6.
This agreement shall be valid the same day it is ratified and also is
valid concurrently with the Merchandise Exchange Agreement and the Agree-
ment Concerning Merchandise Exchange Payments which have been negotiated
I have the honor to confirm that during the negotiations which
were terminated today by ratification of the Merchandise Exchange
Agreement between Czechoslovakia ,and Yugoslavia, as well as by ratification
of the payments agreements, we also agreed that the following payments
concerning. transportation should be settled:
.1. Sea transportation payments for merchandise transported in Yugoslav
ships via Yugoslav seaports shall be paid one-third in foreign exchange
according to the agreement of both national banks and two-thi ds in the
"Merchandise Account (AccountA)n of the National Bank of Czechoslovakia.
2. The "Merchandise Account (Account A)"shall also be used for the fol-
lowing mutual payments,;
16. Chairman,
a. Seaports fees paid in Yugoslav ports, warehouse fees, loading,
and other similar fees,
b. Debts and other financial claims of both railroad systems
arising out of transportation of passengers, luggage, and merchan-
dise transported within both countries*as well as other mutual
railroad obligations,
c.. Charges for such services as local transportation, loading and
reloading charges, rendered by the railroad systems in Czechoslovakia
or Yugoslavia and other countries located between both signatories,
.h. Account ba $ice of air-transportation corporations charged with
passenger trans nation between -Czechoslovakia and Yugoslavia.
25X1A
3. Air transportation tickets for trips from Czechoslovakia to Yugo-
slavia,
 3. Air transportation tickets for trips from Czechoslovakia to
Yugoslavia, Albania, Bulgaria, Hungary, Poland, :lRumania,. and the
USSR as well as railroad tickets from Czechoslovakia to the above
enumerated countries shall be sold to Yugoslav nationals for Czechs..
Slovak crowns procured from t,.-,e "account of Payments Other Than
For Merchandise?"
Railroad tickets sold to nationals of the other signatory state shall
be sold for Czechoslovak crowns or dinars only to the last border
station in Czechoslovakia or Yugoslavia.
Passenger air transportation including luggage and merchandise trans-
.ported by air from Czechoslovakia to l3tfgerl European countries shall
be paid as follows:
25 percent in Czechoslovak crowns procured from the "Account
of,'Other 'Payments Than For Merchandiseft
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Approved For R.
75 percent in foreign exchange according to . agreement: between
both banks of issue.
Passahg%r? air transportation, including ltggage and merchandise
transported by air, from the Reptl[C.of Yugoslavia to other European
countries shall be paid as follows:
25 percent in dinars procured from "Account of Payments Other
Than For. Merchandise".
75 percent in foreign exchange according to agreement between
both banks of issue.
Air transportation tickets of Czechoslovak airlines fron{Czecho-
slovakia to Yugoslavia and from there to other countries shall be
sold, in Yugoslavia to Czechoslovak nationals for dinars- obtained from
the!AOcount of Payments Other Than For Merchandise",
4, Czechoslovak passengers transported in Yugoslav ships in`Yugo-
slav territorial 'waters shall be sold tickets for dinars procured from
the "Account of Payments.Other Than For Merchandise".
Transportation in Yugoslav ships in other than the territorial waters
of.Yugoslavia shall be paid in free foreign exchange.
Arrangements mentioned in Articles 1 and 2 also refer to any services,
rendered from 5 May 1945 to the day of ratification of this agreement,
which have not. been paid for thus far.
Ing. Pl4tva
To
Nikola Popovic
The Chairman of Yugoslav
Trade Delegation,
Belgrade,
M& U. Chairman,
I have the honor to confirn that, in regard to financing of
tourist traffic of Czechoslovak' nationals in Yugoslavia in 1949# we
have agreed that,, with the exception of Article 2 of the "Payments
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CENTRAL T~V"Prt.T.T( hzr?W n nTITTnv
II
Agreement Other Than For Merchandise between Czechoslovakia and Yugoslavia,
such traffic should be financed and paid for as follows:
1 One half (50 percent) of tourist expenses of 2eeechoslovak nationals in
Yugoslavia shall be financed by funds from the account "Czechoslovak National
Bank ,- Reemigration Property "deposited in the National Bank of Yugoslavia,
and shall-`be utilized.to the amount of 32 million dinars as agreed by the
national banks of both signatories..
The r The remaining 50 percent shall be settled by funds available
from the account of "Payments Other Than For Merchandise".
2. As soon as the agreed limit of 32 million dinars is reached, financial
claims of Czechoslovak reemigrants that had been deposited in this account
up to 24 May 194 shall be used for financing of tourist excursions to
Yugoslavia according to the following rule:
Twenty-five percent from the account "(?zechoslovak National Bank -
Reemigration Property" and
Seventy-five percent from the "Account of Payments Other Than for
Merchandise".
3. The arrangements dthscribed under paragraphs 1 and 2 of this letter shall
be utilized for all tovri t e~-,curs `.on e1;.pan c eo t?r__tii the exception of rail-
road tickets, which shall be paid for by funds deposited in the "Merchandise
Account",,
4. The account "Czechoslovak National Bank - Reemigration Property~'.shall
also be utilized for payments of claims to Yugoslavia including those
arising out of liquidation of real estate and personal property of Yugo-
slav nationals residing in Czechoslovakia.
The National Bank of Czechoslovakia shall grant permission for-such
transactions, without limiting the individual amounts., to a total of 10 mil-
lion Kcs. In case that there are not enough funds available in the "Reemigra-
tion Property" account"?transactions totaling not more than 10 million Kos will
be paid from the account of "Payments Other. Than For Merchandise."
This arrangement, has no reference to Yugoslav claims in Czechoslovakia
originating later than 9 May 19451which shall be.ar-ranged by special agree--
ment between both states and it also has no reference to claims bound by
legal Czechoslovak currency regulations.
This arrangement shall be valid to the end of 1949, and may be extended if
both signatories agree.toit in order to complete utilization of funds
mentioned in this agreement,
Ing. Pleva v,r,
Nikola Popovic
Chairman of the Yugoslav
Trade. Delegation
Belgrade
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Cu'NTRAL INTELLIGENCE AGENCY `
1.6. TH
CHAIRMAN OF THE CZECHOSLOVAK
TRAM DELEGATION
Mr. Chairman,
Belgrade, 1 March 1949
I have the honor to confirm that both delegations, having
in mind the great importance of transportation of Czechoslovak
merchandise via Yugoslav ports, agreed during negotiations regarding
the Merchandise Exchange Agreement for 1949 that the Czechoslovak
Government shall guarantee through its respective ministries and other
institutions that the transit of Czechoslovak merchandise via Yugoslav
ports is to be regulated according to the same principles utilized in
transporting merchandise via other seaports,
In the best interest of most effective coordination of Czecho-
slovak transit via Yugoslav ports and utilization of Yugoslav shipping,
the Czechoslovak Ministry of Foreign Trade, and particularly its trans-
portation Department, shall remain in close contact with the Economic
Section of the Embassy of Yugoslavia for the purpose of compilirif,
transportation plans and reserving ample shipping space to guarantee
smooth transit transportation*
The Government of Yugoslavia shall offer to Czechoslovak tran-
sit shipping the same advantages that would be offered to any other
country not only in transit but also in Yugoslav port facilities and
Yugoslav sea transport lines.
In/. Pleva v. r,.
'To:
Nikola. Popovie
Chairman of the Yugoslav
Trade Delegation
'Belgrade.'
CONFIDENTIAL
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25X1A I-Comment: This is apparently an abbreviation for "po na post" - as