CZECHOSLOVAK-JUGOSLAV TRADE TREATY OF 24 MAY 1948

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001900440001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 15, 2016
• Document Release Date: March 8, 2001
• Sequence Number: 1
• Publication Date: October 6, 1948
• Content Type: REPORT

t. Le
4 CLASSIFICATION - T/GO..a oL - u. r,,. - imcI:~ of t'.r 25X1 A
Approved For ReleGMT2fi01MV22MVbk-RPM'0 0451
I OR AT ORT
COUNTRY Czechoslovakia/Jugoslavia
SUBJECT Czechoslovak J'u oslav Trade Treaty of 2/4. ':ay 1948
' 25X1C
PLACE
ACQUIRED
DATE OF M n
25X1X
25X1A
The followi.n ; text in English translaticri of the Czechoslovak,-Jueos Cav
Trade. Treat,- of 24 1'ay 194? is based on a Gerran translation of the Czech
ori,si.nal; throw` repeated tr^anslations, some difficulties In exact render-
in, of technical terms are to be exrectcdv though the rnoanin * is nowhere
irnpaircd.,
Section one cog ain;s a cov:r,mat.catiaarr fro.n the C3R d.:iinistry for Foreign Trade
to t,t e Office of tie C;aRR Presidorrt;119 indicatint: that a trade treaty has been
s? fined betr, ie'e i. the CSR and Juroslavia on 14 l94F: and ~,. requesting apprq"Vc7J.
fr?orr. the 03R Dove rnn nt,; Section tJvoos a part, of the sar,ie communication, further
explairla tE, o $t: a1 for the new treaty and gives a list of the documents
co rising t e original traeat. (It may be pointed out- that the 'material in
cuuat.ion -~a;:u;, not all available here; the present re-nort inclules only the treaty:
ass:, blic and the Federated Peopletls Republic of Jugoslavia which was
signed on 24 1 'ay 1946 in Prague. To the agreer-ant for exchange of merchandise
have been joined the lists of merchandise as well as the letters exchanged be-
tween the presidents of the two delegations,,
At the same d time, the ",inistry for Foreign Trade adds a confirmatory com-
munication and re p eats that .the
government in its next sitting; make the fo1
lowing resolutions.- The government is aware of, and in agreement with, the
agreement for exchange of inerchan: a between the Czechoslovak Republic and
the Federated Peoples Republic of Jugoslavia, the agreement concerning pay-
sent, as re:.'l as the letters which have been (exchanged between the presidents
of tie tr -la delegations;, all of which was drawn up on 24 'ay .1948'Execution will take place through the fli.nistry for Foreign Tr^ade, the
Ministry of Industry, and the Finance Unistr?y, in =njunction with the com-
petent of f'1 :es concerned,,
For the P.:inistera
J Vejvara
CONFIDENTIAL
Approved For Release 200 1103122 CIA-RDP82-00457 R001900440001-6
 Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
NT ROL
CNNTRAL INTELLIGENCE AGENCY
3-
Confirmatory Cormiunication
25X1A
CONFYDENTI,A
The previous agreement for exchange of merchandise between the Czecho-
slovak Republic and the Federated People?s Republic of Jugoslavia,-
original-ly valid until 30 August 194Fn has been extended until the conclusion of a
new agreement for exchange of merchandise, since the negotiations begun in
Belgrade were broken off in December 1947 because of considerable disagr?ee-
ment between the two delegations, provoked by the demands raised on the part.,
of Jugoslavia which would have forced. lur economy into Treat sacrifices.;
The present exchange of merchandise was so handled that licenses for
export and impart were granted within the limits of the quotas upon which the
delegations had agreed and, indeed, on the account of the new agreement with
retroactive validity from 1 October l947.
New negotiations were begun early in March in Prague and ended on 24 May
1948 with the drawing up of this agreement e The duration of the treaty ne--
gotiations is explained by the fact that the delegation has attempted to rent-
or the agreement as comprehensive as possible, and consequently that, parallel-
ing the negotiations concerning the present agreement, deliberations were
made for supplementing the investment agreement,, and further deliberations
were made concerning the manner of payment for machines and installations out
of the national renevel fund.
The exchange of merchandise between the two countries will be carried
out on the basis of the attached lists Aand 3 The. extent of the agreement
comprises 2,750,000,000 Czechoslovak crowns on each side,, consideration being
made of the fact that the goods exchanged by both parties are adjusted in
consideration of their economic impo=^tance
In accordance with the payment agreement the masse de manoevre has been
.increased from the original. 300,,000,)00 Czechoslovak crowns o the previous
treaty to 400,000,000 Czechoslovak crowns, with respect to the greater er
tent of the agreement, as well as onethird increase on down-payments for
merch-;arise ordered in the Czechoslovak Republic,, and also because the :ner-
chandise of Jugoslav origin for the most part has a seasonal character,:
A constituent part of the treaty is the agreement concerning payments of
a different nature than for merchandise. In connection with the previously
cited agreement for exchange of merchandise and for payments, eight letters
were exchanged, between the it esidents of both delegations which supplement
the treaty? There is one letter in which the official relationship of the
Czechoslovak crown to the U.,S? dollar is cited, a letter concerning financing
and compensation for tourist trade, a letter dealing with adjustment of pay-
ment for commercial services a letter concerning accommodation of transit of
Czechoslovak merchandise through Jugoslav harbors, in cases in which this
route offers at least equal conditions and is equally advantageous for the
interests of the Czechoslovak Republic as transport through other harbors.
Furthermore, a letter concerning payment of personal transport on Jugo-
slav ships outside Jugoslav territorial waters, a letter concerning increase
in the postal service, and concerning the cuestion of payment of obligations
which arise from freight on merchandise.,
In one of the letters exchanged, the obligation of the Jugoslav govern-
ment was recognized to deliver 4,000 tons of meat before the end of July 1948.
Tr2 /C0#-'r 1t,, r y v
U.S. OF IULLJ 4f1JLI
CONFIDEN TI'AI'-.
1RET
Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
 Approved For Release 2001 Io3f j F,&~82-004578001900440001-6
U.s,r? Zicp* ONLY
CENTRAL INTELLIGENCE A8CY
r 4 -
3. Text of Trade Treaty
Agreement
Concerning Exchange of lierchandise 3etrxeen
the Czechoslovak Republic and the Federated
People's Republic of Jugoslavia
25X1A
The Government of the Czechoslovak `republic and the Goverment of
the Federated People's Republic of Jugoslavia, induced by a desire to in-
crease mutual commercial relations as far as possible,, agree to the fol-
lowing;
Both treaty partners consider the commercial and navigational treaty.,
concluded on 14 November 1928, as still being a valid basin for mutual corn=
mercial relations in all subsequent supplementary agree .ents, Exception
is made only for the tariff provisions which no longer correspond to present-
day altered economic conditions provoked by war and occupation.; This does
not mean that this treaty cannot be replaced by a new treaty, as is the de:
sire of both parties, which corresponds in ?;reat,er measurer to the close
economic cooperation of the two states?
The exchange of merchandise betswsen the two stater, will be carried
out on the basis of the attached 1i3t;s of goods A and B, which constituy,e
a constituent part of the agreennent, In ad:Ution to these lists, during
the period of validity of the treat., now lists can be agreed upon which
supplement and enlarge lists A and 31..,
Both treaty rtners bind themselves to do everytr:-irr, to fulfill the
deliveries of merc1.andise in accordance wit 'a attached lists A and B.
Article I"
Both treaty partners will undertake all necessary steps so that be-
tween the exporters =d importers of the Czechoslovak Republic on the one
hand, 3n.d toe exporters and importers of the Federated People's Republic
of Jugoslavia, , the other purchase and sale atTreeiments are concluded and
carried out only within the framework of the quotas specified in lists A
and 3 attached to the treaty,,
According to pzragraph one of this article, the purchase and sale
agreernents are to be concluded as soon as possible,, In exceptional cases,
purchase and sale a[reemerrts can be concluded at the end of the validity
of the treaty, if, it is a ruestion of deliveries with a seasonal character
/CONThOL ?~--~
F -' ~ - : i CONFIDEi
Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
 Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
a TITaOL
U.S. OFFICIALS ONLY
CENTRAL INTELLIGENCE AGENCY
? _ 5
25X1A
c~~D
or quotas which by their very nature fall under the heading "11iscell aneous",
After conclusion of the purchase and sale agreements between importers
and exporters of both counti?ies, a mixed comr^.ission,which will be formed
in accordance with Article X of this agreement, will scrutinize prices and
delivery terms of proposed business negotiations in separate protocols?
Article V
The government of the Czechoslovak Republic will grant to authorized
import and export firms, export and import licenses for merchandise accord-
ing to lists A and B,, and will do so in the corresponding quantities or values
as they have been cited on the lists.
The government of-the Federated Peoples Republic of Jugoslavia will
grant to authorized exporters and importers, export and import licenses for
merchandise according., to lists A and B in the quantities or values which are
cited in the lists,
Article VI
The merchandise which in accordance with this agreement will be export-
ed from the Czechoslovak Republic to Juggoslavia,,wili be delivered f.oob. Czech-
oslovak frontier or f,,o,>b,Danube harbor.
The merchandise, which in accordance with this agreement will be export-
ed from Jugoslavia to the Czechoslovak Republic,, will be.delivered f,o,,b0 Jugo-
slav frontier or f,,o,.b. Jugoslav river or sea harbor.
The manner of payment in connection ,with the exchange of.merchandise is
laid do zi in the agreement concerning payment which is a part of this treaty,
The prices at which the goods which are cited in the attached lists A
and B will be delivered will be agreed upon directly between exporters and
importers of both countries,
If serious difficulties ar',se in reaching an agreement on prices, the
dispute will be settled. by joint mediation; either between the president of
the ezechoslovak element of the mixed commission which will be set up accord-
ing to Article X of the agreement an?i the corunarcial delegates of the Federated
People's Republic of Yugoslavia in Prague; or, b-twcen the president of the
Jugoslav ml tent of the mixed comrti.ssion and the commercial di-legates of the
Czechoslovak Rmpublic in Jugoslavia.
If the dispute cannot be settled within fifteen days by this 11eans, the
disputed matters will be laid before t:e mixed commission for final settle-
nent,.
CONFIDENTIAL
3?,M'1,_.T/CO. "T _ML
U.S. OFi7ICI1 LS ONLY
T
Approved For Release 2001/03/22 CIA-RDP82-00457R001900440001-6
 Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
60
ira71lrllw
,J.0
CENTRAL 1NTELLIGEtC,a AGC!
25X1A
In order to carry out and facilitate he exchange of merchandise between
the two countries, a mixed commission will be set up for which each of the
two treaty partners will send three ne'nbers with the folloning assignnentso
1) Swift settlement of all difficulties which come up in con-
nection with the exchange of merchandise, particularly with
regard to prices and dates of dellivery,,
Seeing to it that purchase and sale agreements are concluded
at the proper time between exporters and importers of both
3) Responsibility of seeing that the merchandise designated in the
purchase and sale a; reement,a is delivered on the appointed
dates, and that all other treaty conditions are met.
4) With a view to checking periodically upon the execution of the
agreement, to present proposals for imprwem.ent and increase
in exchange of merchandise and payment between both countries
and also to introduce suggestions for removin- critical con-
ditions which the exchange of merchandise might encounter,
Proposal of possible alterations and supplements to the quotas
indicated in lists A and B,
The mixed commission will be set up 45 days after preparation of. this
treaty and vwil`a.. meet every three months alternately in Prague and Belgrade.
The presidents of the Czechoslovak and Juoslav sections can convene them at
any time in case of need, The place of the meetinFFs will be set by common
agr eer:aent o
Article Xl
Under the leading "Miscellaneous". wIiLch is cited in both lists, merchandise
will be imported or exported which is not contained in lists A and 33; and If
both treaty partners agree, also :merchandise which is contained in lists A and 3,,
This treat; becomes valid the day it -s signed and All remain in force
until 31 Deca_rber'1948, Nevertheless, lists A and 3 comprise deliveries from
1 October 1947 to 31 December 1948. Deliveries of merchandise on the bats of
pirchasing and selling; agreevents wtiich are concluded according to this treaty
between importers and exporters of both countries before 31 December 1948, even
after the expiration of the above treaty, till be executed on the sane terns,,
If after the expiration of the period of validity of this. treaty, a balance ia,,
favor of one or the other par t.y remains, bath treaty partners will agree within
three months concerning the manner in which this balance is to be liquidated so
that the balance can be liquidated by export of merchandise within two -months
more at the latest,
~~ G n oL bN_ FIDES ?'
U.S. OFFICIALS ONLY
--
Approved For Release 2001/03/22 _:. CIA-RDP82-00457 R001900440001-6
 Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
U& OFFICIALS ONLY 25X1 A Q'~ a
CENTRAL INTELLIGENCE AGENCY
Article CII
This treaty has been drawn. up in two ec uival.ent ori'inui copies in Czech
and Serbo-Croatian.,
Drawn up in Fr j ue, 24 lay 194E
For the xovern,:aerit of the Czechoslovak Repuhlice
Evzen Loaf m,.p,, Pleva
For the Government of the Federated
People's Republic of Jugoslavia:
Vo jin Guzir:a v,.r,,
"i? T/C0''"
MeDET
Approved For Release 2001/03122._: CIA-RDP82-00457 R001900440001-6
 Approved For Release 2001/03/22 : CIA-RDP82-00457R001900440001-6
= I ,J` OL
U ,, S 0 OFFICIALS 0MY
CENTML INTI LLIGENCE AGENCY
APPENDIX A
Value in thousands Kos,,
25X1 A
Goods to be Exported from the CSR to the Federated
People's Republic of Ju o lavia
Type of praodR Quantity
2
10'000 tons
5,000 tons
3
Foundry coal
3,000 tons
4.
Rolling mill material of all
kinds including pipes and plate
28,000 tons
5 ,.
Steel products; castings, cast
steel? propeller shafts, metal
wheel bands (Radbandagen)
Serf.->rtanufactured ppods :jade of
bright me;:a1s
5O,,OO0
7.
F.
Refined =.ee1
Hard metal equipment and tools
530 tons
9.:
Welding electrodes
10,
Special fittings
11.:,
Nail
12,
Double rneels (Doppelraeder
13.,
Springs
14...
Metal sievves, except phosphur bronze
15, Chains
16,; Aluminum steel cable
49000
259000
17., Steel cable, various sizes (Stahlseile u Straenge) 30;0000
18? Various rietallurgical products 109000
19, Various tools, equipment, measuring enuipment
saw blades, etc.:. 35.,000
20.: Fittings (Armaturen) 4,000
21.: Pneumatic equipment 20 OOO
CONFIDENTIAL,
2F: ^0 ~_7. ~~^s for ro1l=.ry TMill.s
23, 'Fine lamps
24. Articles necessar? for processing textiles and
leather
25X1A
man text has "mil Ices";the
values expressed are rea-'
sonable if multiplied by
one thousand but impossible
if mulinlied by one million)
50.9000
25,000
1,000
5,000
37,,000
129000
4,500
49000
2,000
4,000
139000
Approved For Release 2 OP8 -00457R001900440001-6
 Approved For Release 2001/03/22 CIA-RDP82-00457R001900440001-6 aC . R, ETT LOL
!J S. OTFT^,T ?,S n"'v
C&.n tL IN"rTLL X AG C=
25X1A
2 s uar1ti ty ' Value in Thousands Kes
L= of Lo
o
25.,
.
-
Bozic brakes with parts
329000
26.;.
Injectors4, grease cups, turbo-generators for locomotives
39000
27,,
f;quipnent for mass transport (Seri entdransport.einriehtungen)
5.,000
28,
Various t:ec finical material of metal
59000
29
Diesel and tgasoline engines
~~ rOO
330;,
Metal-working fiaci1ir1es with accessories
308000
:3L
x'iood-.,workinf, machines with accessories
12 000
'32 ,
Construction machines
15,,000
:33a
Dredgers with accessories
159000
34
Transportes
3? 500
:35.
Compressors with acasss,or. ies
6, 500
'36;,
Diesel locomotives
10,000
37,.
Toy qms-app,
2,000
3E ,
Agricultural r achines and.. spare parts
30j,000
Tractors
59000
Machines for production . f rubber, texti`Iefi, and chemical
materials
10,000
4i
Shoemaking and tarni..ng m,,~c lnes
6.,000
4 :,
Various types Schoepfmase.hinen with eTA;ment for
*
1,,aso1ine stations
10,000
-'3