ECONOMIC ASPECTS OF COMINFORM RIFT AND YUGOSLAV RELATIONS WITH THE SOVIET IN AUSTRIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002200380008-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: January 7, 1999
• Sequence Number: 8
• Publication Date: December 29, 1948
• Content Type: IR

CENTRAL INTE GENCE AGENCY
INFORMATION REPORT
25X1A2g
COUNTRY Yugoeiavia/9SSR
SUBJECT Economic Aspects of Cominform Rift
Yugoslav Relations with the Soviet in
Austria
PLACE 25X1A6a
DATE OF IN
25X1X6
Approved For Release 1999/09/08 : CIA-RDP82-00457R002200380008-2= ---
CLASSIFICATION ~'T/CONTROL - U.S. (IFICIAIS ONLY 25X1 A ifM
REPORT NO.
)1O CRAtl:E is Clads. C1
DECLASSIr D
lass. C.W'T TO-:
SUPPLEMENT TO
REPORT NO.
1. The cause of the Tito-Cominform rift is primarily economic according to
source. Tito was dissatisfied with the preceding Yugoslav-USSR trade pact
because the Soviet Union dictated prices and terms without granting the
Yugoslavs aqy bargaining power. The Soviet Union has consistently failed
to meet its trade commitments. The Soviet failure to deliver 8,000
truck tires promised for early 191i8 resulted on ritical situation in the
Yugoslav truck transportation system. The Croatian Minister of Traffic has
stated that half the usable trucks in Croatia are immobile for lack of
tires and repair parts. The food and fuel situation in Yugoslavia is
catastrophic. Rationed goods are unavaible and prices on the free market
are exorbitant.
2. Yugoslav-Czechoslovak negotiations for a new trade treaty were broken off
abruptly during the first week of December by the Czechs. Source believes
that negotiations ended because the Soviet Union agreed to supply the
Czechs with commodities sousht from Yugoslavia.
Tito had been reluctant to contact the West for trade assistance for fear
of giving the Cominform a basis to confirm their accusations that he is a
traitor,
14. The Yugoslavs contuse to trade with the Soviets and UAIS in Vienna. No
instructions to the contrary have been received from Belgrade. All Yugoslav
shipments for sale in Austria are sent by rail addressed to Juschwneschtrane
in care of Soviet APO numbers. The Soviets drive hard bargains and dictate
all sales conditions, paying in schillings. They never purchase the entire
shipment and allow the Yugoslavs to sell the remainder on the Austrian black-
market. The Yugoslav commodities offered are mostly food stuffs. The total
Yugoslav sales in Vienna are about four million schillinge monthly. The
Yugoslavs utilize these proceeds from black market sales to buy tool steel,
sheet metal, rolled iron and wire. The Soviet, have allocated one D.D.S.G.
(a Danube shipping firm) warehouse to the Yugoslavs for the storage of these
purchases. The warehouse is guarded by Soviet troops. Each month about four
barges come from Yugoslavia to receive merchandise. The Yugoslav Commercial
Attache in Vienna not supply the Soviets with a monthly statement of items
exported in this manner; the statement contains a clause stating that the
Y products are for use in Yugoslavia. Source is aware, however, of several
instances where lead and copper obtained in Vienna, were shipped to Yugoslavia
and then sold in Trieste or Switzerland.
CLASSIFICATION S%QW/COYfWL - U.S. OFFICIALS ONLY
'1Ng11~..,.-
,a sSAW 0011sI-i "01
STATE X NAVY X NSRB RIBUTION
ARMY X AIR X FBI
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DATE DISTR. 3 January 19149
NO. OF PAGES 2
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CENTRAL INTELLIGE:ItE AGENCY
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F.tikola Lubisic, the new Yugoslav Commercial Attacrhe.in Vienna, in early
December 1948 failed to obtain a Soviet transport shipment and sent three
or four barges to Yugoslavia under cover of fog without Soviet Permission.
The barges carried ball bearings of German and Austrian origin, wire and
electric motors. According to Lubisic's deputy, the Soviets were annoyed
at this incident, but the matter was settled and on 22 December Osipov of
DAIS suggested to Lubisic that the Yugoslavs make all purchases in Vienna
through DAIS and Osipov would _?uarantee a Soviet export permit,
6. Source thinks that the only effect of the Tito-Cominform rift on Yugoslav.
Soviet commercial relations in Vienna is a Soviet coolness in personal
relationships. Business continues as usual thou.?h the Soviets are now
stricter in dr;rnanding prompt delivery and in making inspections. The.
business rela?,,ionship is mutually beneficial although Soviets derive the
larger benefit
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