CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A018400010002-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: July 28, 2003
• Sequence Number: 2
• Publication Date: February 26, 1971
• Content Type: REPORT

Approved For Release 2003/09/02 : CIA-RDP79T00975A018400010002-5
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Top Secret
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
Top Secret
C 196
26 February 1971
Approved For Release 2003/09/02 : CIA-RDP79T00975A018400010002-5
 25X1 Approved For Release 2003/09/02 : CIA-RDP79T00975AO18400010002-5
Approved For Release 2003/09/02 : CIA-RDP79T00975AO18400010002-5
 Approved For Releao
26 February 1971
Central Intelligence Bulletin
CONTENTS
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YUGOSLAVIA: The government is seeking financial
assistance. (Page 6)
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USSR - SOUTH AMERICA: Shipping (Page 9)
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YUGOSLAVIA: The government is seeking finan-
cial assistance to help stabilize the economy while
major political and economic reforms are effected.
Toma Granfil, a member of the Federal Executive
Council, has told the 'US ambassador that his govern-
ment intends to use the reform process to enter into
more open collaboration with the world economy and
to introduce a more democratic society. In the mean-
time, he asserted, the government needs $600-$700
million during 1971 and 1972 to increase its hard
currency reserves so that domestic economic stabil-
ity can be maintained and contribute to a smooth
change of government organization and economic poli-
cies. Granfil asked that the US contribute 20 per-
cent of this amount and help Yugoslavia to get the
rest from its other major non-Communist trading
partners and international lending organizations.
Granfil implied that the introduction of a more
democratic political system had been resisted, but
he asserted that all republics now accept this goal,
as well as. a continuing Western economic orientation.
He acknowledged, however, that various groups in
Yugoslavia differ on how to achieve such goals and
are still far apart on many issues. The sharpest
divisions are caused by traditional animosities among
the federation's various nationalities and by dif-
ferences in the stages of economic development of
the various regions. If such differences cannot be
resolved, he said, they will inevitably bring into
question national cohesion and security.
Granfil is not greatly exaggerating the breadth
of proposed reforms or the internal dangers which
they pose. The Federal Assembly's commission for
drafting the constitutional amendments necessary to
implement the reforms finished its frequently heated
work only on 11 February, weeks behind schedule.
This in turn will delay other steps and has delayed
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adoption of reforms until August, rather than in May
Central Intelligence Bulletin
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NOTES
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USSR - SOUTH AMERICA: 25X1
the Soviets intend to begin sc e
cargo service from Europe to the west coast of South
America on 1 July, calling at Colombia, Ecuador,
Peru, and Chile. With the exception of the US east
coast and most of Central America, this area is
virtually the last remaining region in the world not
served by regular Soviet commercial shipping; Soviet
cargo service to the east coast of South. America has
been fairly active for some time. This latest move
would facilitate any expansion of trade because di-
rect shipping linking the USSR and the Pacific coast
of Latin America now is on an ad hoc basis.
Central Intelligence Bulletin
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 25X1 Approved For Release 2003/09/02 : CIA-RDP79T00975AO18400010002-5
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Approved For Release 2003/09/02 : CIA-RDP79T00975AO18400010002-5