COORDINATING COMMITTEE MEMORANDUM FROM THE UNITED STATES DELEGATION ON YUGOSLAV TRADE CONTROLS AND DOCUMENTATION SUBCOMMITTEE ON EXPORT CONTROLS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00647A000200030024-2
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: September 11, 1998
• Sequence Number: 24
• Publication Date: February 11, 1960
• Content Type: MEMO

Approved For Release 1999/09/16 : CIA-RDP62-00647A000200030022
CONFIDENTIAL
February 11, 1960 C000M Document 3877
000RDINATING COMMITTEE
MEMORANDUM FAOM THE UNITED STATES DEILGATION
ON
YUGOSLAV TRADE CONTROLS AND DOCUMENTATION
SUBr O ITTEF ON EXPORT CONTROLS
54
1. At the conclusion of the discussion on Yugoslav Trade Controls and '
Documentation in the Subcommittee on ]xport Controls during the May 19-22, 1959,
meeting (paras. 40 to 4 inclusive., COCON Doc. Sub-C (59) 2), the Subcommittee
chairman noted that there still existed some confusion regarding this matter
and requested, on behalf of the Suocommittee, that the United States delegation
endeavor to obtain a clarification. The following report is submitted for the
Committee's information in this connection.
2. Following indications of diversion or re-export to the Soviet bloc late
in 1957 of two shipments of US-origin borax intended for Yugoslavia, the United
States Embassy in Belgrade began a series of discussions on trade control prob-
lems with the Yugoslavs with a view to bringing about more positive safeguards
of US shipments of strategic materials to that country. The United States sought
to obtain assurances from the Yugoslavs that US goods would not be re-exported
contrary to US regulations, and that action would be taken to eliminate the
irregularities in the Yugcslav end use certificate and make it a more meaningful
document. The United States sought agreement from Yugoslavia to make available
duplicate copies of end-u4e certificates with a view to reducing the possibility
of forgery and also to provide delivery verifications upon request as evidence
that the goods were received in Yugoslavia and were made subject to Yugoslav
export regulations. The United States also discussed the desirability of closer
cooperation by the Yugoslavs with US Embassy personnel in conducting end-use and
post--shipment checks.
3. After discussions on the above matters extending over a number of months,
the Yugoslav officials informed the US Embassy that they did not believe that
duplicate copies of end-use certificates were necessary since they were issued
by the Chamber of Foreign Commerce on special water-marked paper which was be-
lieved to be difficult to duplicate or alter. They stated that they would stiffen
their procedures in the issuance of end use certificates. However, they were
not willing to issue duplicate end-use certificates. The Yugoslavs agreed to use
in their enduse certificates prepared in the English language the more precise
guarantee against re-export previously used in the German language version. The
Yugoslavs stated that they had, however, always exercised equally strict controls
regardless of language-of the German, French-or English versions of this cortifi
cate. The certificate, as presently printed, states "This material will be used
or consumed in Yugoslavia and will not be reexported without end-use certificate".
After some discussion it was agreed that the words "without end-use certificate"
would be deleted arz the deletion initialed by the issuing official. In the next
reprinting of enduse certificate forms this phrase would be deleted. It was
also understood that each application for an end-use certificate would be per-
sonally scrutinized by Barbalic, the responsible official in the Chamber of
Foreign Commerce, and., where the type of goods is such as to arouse his suspicions,
he would question the end-user directly.
4. The Yugoslavs confirmed that there would be no re-exports of US-origin
goods without prior approval from the US Department of 0ananeroe.
5. The Yugoslavs have agreed that physical end-use checks will be made by
the Chamber of Foreign Commerce when requested,
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6. The Yugoslavs are willing to issue delivery verifications on request
on a selective basis. US authorities have taken advantage of the availability
of such documents and require delivery verifications for all shipments of IL I
its to Yugoslavia and for certain significant shipments of a non IL I charac-
ter, The U. S. also plans to have physical end use checks made on a highly
selective basis, when the shipment is significant by virtue of either the quan-
tity, value or strategic importance.
7. There have been no known diversions of US shipments from Yugoslavia0ne
since the Yugoslav procedures were revised last stumer as described above.
instance had been reported of an apparent forgery of an end-use certificate for
10,000 tons of Turkish boracite, and the Yugoslavs indicated to a Turkish repre-
sentative that they were referring this case to the International Police in Paris.
8. United States authorities have not had sufficient experience under the
new procedures to conclude whether the Yugoslav documents and procedures provide
the desired security. The US authorities, 'however, consider it important to
request the available Yu,,oslav documents as a prerequisite in the licensing of
strategic corr_lodities to that country. In addition to the prescribed documents,
United States authorities base favorable action on a careful scrutiny of each
license application to assure that there is no question concerning the integrity
and reliability of the consignee and that the quantities of goods to be exported
are considered to be reasonable for the known or estimated needs of the Yugoslav
economy. This practice serves to identify cases which are questionable from the
standpoint of consignee and/or of quantity and which call for inquiry to the
Yugoslav Goverment via the US Embassy. In this manner the legitimacy of sus-
pect transactions can be fully verified or the suspicions further substantiated.
9. The nano and address of the office in the Yugoslav Government authorized
to issue end use certificates and deliveryverification certificates is, the
Yugoslav Federal Chamber of Foreign Commerce, Mose Pijade 12, Belgrade,
Yugoslavia. The names of the officials, only five, authorized by the Yugoslav
Government to certify these documents are the following:
No Barbalic, Secretary General of the Chamber of Foreign Commerce;
Milcrad Konjevic, Secretary of the Chamber of Foreign Commerce;
Milan Aleksic, - Secretary of the Chamber of Foreign Commerce;
Svetomir Tomic, Secretary of the Chamber of Foreign Commerce;
Dusan Marie, General Clerk of the Chamber of Foreign Commerce.
Facsimile signatures of the above Yugoslav officials have been de-
posited in the 000OM Secretariat.
10. A set of sample copies of Yugoslav end-use certificates in English,
French and German (the three languages used by the Yugoslavs on end use certifi-
cates) have been deposited in the COCOM Secretariat. The delivery verification
certificate, as described by the Chamber of Foreign Commerce is simply a letter
set up on Chamber stationery which carries a duty stamp. The form of the letter,
according to the Chamber, is generally the following:
"Based on Documents su1m.itteu by (name of enterprise) regarding
(commodity identification and value) we are satisfied that the
above (commodity) were received by..."
CONFIDENTIAL
Approved For Release 1999/09/16 : CIA-RDP62-00647A000200030024-2