CURRENT SITUATION REGARDING YUGOSLAV ORDERS OF MILITARY EQUIPMENT IN FRANCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R010000290006-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: March 27, 1999
• Sequence Number: 6
• Publication Date: January 14, 1952
• Content Type: REPORT

CONFIDE1NTIA ..
Approved For Release 1999/09/09 : CIA
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SEC mI I1 'ON:tAT ION
CENTRAL INTELLIGENCE AGENCY REPORT NO.
9NF RMATION REPORT CD NOD
SUBJECT
PLACE
ACQUIRED
DATE OF
INFO.
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SUPPLEMENT TO
REPORT NO.
1. There has been a slowdown followed by a complete drop in French deliveries
of military equipment to Yugoslavia, since March 1951. It is reported
that the factor largely responsible for this drop lies within the realm
of the factory committees in France (comites d'entrepriee). These commit-
tees appear to have a great influence on the industrial market and. also
great political power where industry is nationalized, and these powers
are frequently in the hands of the French Communist Party
2. A law passed by French Communists after the liberation of France provided
that all industries or concerns employing more than fifty people mast have
a factory committee composed of employees or workers and of members of the
management. In support of the Soviet Union, the factory committees have
prevented the financing of French-Yugoslav armament negotiations by the major
nationalized banks,
3. When the Tugoslav Government placed an order with the Hispax&o Suiza firm
for 217-mm. cannonsl, the Credit Iyonnais (the chief transacting agent for
Hispano--Suiza) under various pretexts, refused to finance the transaction.
Excuses were proffered, such as lack of credit, large-scale negotiations
for Israel, at cetera. When the management of the Credit L7onnki.s attempted
in September 1951 to obtain the necessary backing from other banks, it was
not successful. The factory committee of the Credit Lyonnais bad reportedly
alerted the factory committees of the other banks. The banks could offer no
logical explaw-tion for their failure. The international agreement, 90 per
cent of which was guaranteed by the French Government through the State
Credit Office, was not being implemented.2
4. Similar 'a the case of Yugoslav orders for cannons, credit was likewise re-
fused or the purchase of the license for production in Yugoslavia of small
turto-jets from the Turbomeca factory at Bordes.3 LIa reason was given for
t ne refu alo Eighteen months have elapsed since the contract was
signed, and no action has been taken.
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CONFIDENTIAT
CLASSIFICATION /CONTROL - U
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FBI
L ARMY My, X AIR
-716--N-iii -Vnn Class.
1-1 Decla sified
Yugoslavia/France
Current Situation Regarding Yugoslav
Orders of Military iquipment in France
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Approved For Release 1999/09/09 : CIA-RDP82-00457RO10000290006-7