YUGOSLAV FOREIGN TRADE IN 1949 AND 1950 FOREIGN TRADE IN 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700070149-8
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: August 19, 2011
• Sequence Number: 149
• Publication Date: June 25, 1952
• Content Type: REPORT

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CLASSIFICATION RESTRICTED
SECORI ORHATION
CENTRAL INTELLIGENCE AGENCY REPOR
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS
COUNTRY Yugoslavia
SUBJECT Economic - Foreign trade
HOW
PUBLISHED Handbook
WHERE
PUBLISHED Belgrade JUN 26 1952
DATE
PUBLISHED 1950 - 1951
LANGUAGE
DATE OF
INFORMATION 1950 - 1951
DATE DIST. ~/ JTr* 1952
NO. OF PAGES 8
SUPPLEI.ENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
TOU SOCOMINT CONTMilr lUPOfl0TO0 U00rnil5 Till NATIONAL 0100551
Or Till OMITSC STMI0 ?17010 Till OGOIM Or lIMOPJ5l ACT 50
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Informativai riruo, k o Jugoelavi i; Book 1, Section 9, 1950;
Section 10-11, 19 1.
YUGOSLAV FOREIGN TRADE IN 1949 AND 1950
The following re"'-t is O taken from the Infor-
mativni prirncnik_ o _ .goslaviJi, a handbook published irregularly
since late 19k y the Yugoslav Directorate of Information.
Yugoslav foreign trade was forced to make an abrupt reorientation in the
second half of 1948 and throughout 1949 because the Eastern Bloc countries
severed economic connections and instituted an economic blockade. Participation
of the Eastern Bloc countries in Yugoslav foreign trade was substantial (in 1947
they shared 49.1 percent of the export and 51.8 percent of the import; and in
1948, 49.6 percent of the export and 43.3 percent of the import). These countries
not only withdrew from every commercial agreement with Yugoslavia in mid-July 1949,
but also refused to deliver the goods 'Yugoslavia had already paid for.
It was necessary to expand the country's economic relations with countries
other than those of the Eastern Bloc. Yugoslavia continued its economic con-
nections with all countries that strictly adhere to the principles of equality
and independence.
Volume and Structure of Foreign Trade
Imports in 1949 remained on approximately the same level as in 1948, reach-
ing prewar levels, while exports were considerably less. This resulted iron
the fact that Yugoslavia was required to seek new markets, that prices of exports
slumped on international markets in 1949, that Yugoslavia Aid not avail itself
of all existing possibilities, and that currency devaluation was put into effect
in 1949 by a number of countries with which Yugoslavia had trade relations.
CLASSIFICATION RESTRICTED
STATE MAW NSRA DISTRIBUTION
ARMY ? AIR X FBI-~
1
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The 1935/39 - 1949 foreign trade of Yugoslavia with individual countries
was as follows (in percent of total imports and exports):
Imports
Exports
1935
39
1948
1935 39
1
43
9
1949
USSR
C
0.1
10.7
1.6
0.1
0
15
4
zechoslovakia
11.5
17.5
6.2
11.2
.
16
o
,9
4
Hungary
3.3
4.4
3.0
4.3
.
8
9
,5
2
6
Poland
1.2
7.3
2.3
1.0
.
7
9
.
1
6
Rumania
2.1
1.8
0,4
0.8
.
1
0
.
0
2
Bulgaria
W
0.2
1.7
0.2
0.2
.
1
0
.
0
1
est Germany*
A
31.1
4.2
5.4
26.4
.
1
7
.
6
ustria
7.8
4.7
8.8
9.7
.
6
2
5.
u
o
Great Britain
8.o
4.6
12.8
7
7
.
6
3
.
1
4
Italy
8.3
10,7
11.7
.
9.2
.
8
2
9.
10
3
United States
5.9
3.4
8.5
5.0
.
2
6
.
8
0
France
2.7
1.9
2.9
2.6
,
1
5
.
4
3
Switzerland
1.9
4.1
6.7
2.2
.
3
4
.
3
2
Belgium
1.6
5.4
5.1
5.9
.
2
2
.
2
2
Netherlands
1.4
7.2
8.7
1.6
.
6
4
.
0
Argentina
E
1.5
2,3
4.7
0.7
.
0
5
7.
0
3
gypt
0.9
1.8
3.2
0.9
.
2
3
.
1
Sweden
0.5
1.6
2.5
0.6
.
2.8
.7
2.7
*Figures for West Germany are for 1949 only f--i--7,
The import structure for 1935/39 - 1949 vas as follows (in percent of total
imports):
1935/39
1948
Production
51.7
62.4
65.5
Raw materials
1.4.5
22.3
22
5
Semifinished products
Fuels
29.2
20.9
.
21.0
5.4
9.0
12
0
Technical material
2.6
10.2
.
10.0
vital Goods
21
8
6
.
29.
25.1
Machines and equipment
7.2
10.5
11
4
Investment material
10.0
12.1
.
9
5
Transport facilities
4.6
6.7
.
4
2
Livestock for breeding
0.0
0.3
.
0.0
Consumers' Goods
26.5
8.0
9,4
Agricultural and livestock
3.2
o.8
1
0
Food industry
0.2
0.1
.
3
6
Textile, leather, and
rubber goods
10.0
5.1
.
1
8
Metals industry
3.9
1.2
.
2
3
Other industries
8.4
0.6
.
0
6
Goods for cultural purposes
0.8
0.2
.
0.1
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Specific exports for 1935/39 - 1949 were as follows (in percent of total
exports) :
1935/39
1948
1949
Wheat
5.8
2.7
o
6
Fruit, vegetable
s, and their products
5.6
4.8
.
-6
3
Alcoholic bevera
ges
0.2
4.6
.
2
6
Industrial plant
s
12.1
17.4
.
9
8
Livestock, meat
products, and fats
17.8
2.5
.
3.7
Poultry, eggs, a
nd milk products
6.0
0.8
0
7
Cut lumber
11.5
13.2
.
24
6
Forest products
4.5
13.2
.
9
0
Finished wood pr
oducts
0.7
1.7
.
1
8
Industrial produ
material, chemi
alloys, etc.)
cts (construction
cal products, iron
6.7
7.6
.
5.6
Ores and metals
(other than iron)
14.6
12.4
18
0
Iron ore
Coal
1.3
0.1
1.6
1.5
.
1.5
2.3
Trade Agreements
During 1949, Yugoslavia concluded new trade agreements with Great Britain,
West Germany, France, Egypt, and Israel, and renewed agreements with Sweden,
Finland, Denmark, Norway, and Austria. Although Eastern Bloc countries did
not officially cancel agreements, they ceased to be valid, since these countries
had ceased to honor them.
A trade agreement between Yugoslavia and Great Britain was concluded on
26 December 1949 for a 5-year period, It insures all conditions ner'dec for
equitable exchange of goods. It provides established quotas for basic articles
in two lists. The agreement makes it possible to exchange other goods in which
both parties are interested. In addition, equal rights are insured for maritime
shipping. The agreement provides for credit assistance in the form of short-
term and long-term loans,
At the same time, both governments agreed upon the method and conditions
of paying for British property involved in Yugoslav nationalization.
Two agreements were concluded with Egypt on 12 June 1949, one a trade and
the other a payment agreement. The trade agreement contains the usual stipu-
lations concerning the issue of permits and elimination of difficulties when
issuing them. In addition, compensations LEo counteract change are provided
for.
The payment agreement regulates payments by means of an account at the
National Bank of Egypt. A special protocol regulates the liquidation of
balances after the agreement's expiration, the p-oblem of re-export, and some
other questions.
The agreement on exchange of goods between Yugoslavia and Israel contains
the usual stipulations governing the issuance of import and export permits
and agreement to give favorable consideration to import and export applications
for goods not included in quota lists. Payments are to be made as follows:
60 percent of exports from Yugoslavia are to be paid for with free dollars,
20 percent with imports from Israel, and 20 percent with property of emigrants
who have left Yugoslavia for Israel. In addition, an exchange of notes pro-
vides for delivery of box parts by Yugoslavia.
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The trade agreement concluded 31 March 1949 between West Germany and
Yugoslavia contains lists of Yugoslav exports and imports. Tobacco export
and payments for imported coke are regulated b; later correspondence. An
amendment broadens and changes the previous payment agreement of 28 April 1948.
Amendments of 19 August 1949 change the list of imports and exports and in-
crease the amount of manipulative credit. A supplement to the agreement of
31 March 1949 increases the scope of export and import and regulates the import
of Yugoslav agricultural products. A payment agreement signed on the same day
provides for existing accounts in national currencies to be merged into a joint
account in US dollars, thus solving the question of the amount of manipulative
credit and the question of payments for various services.
One-year trade and payment agreements between Yugoslavia and France con-
cluded on 21 May 1949. The trade agreement provided for the ma.t favorable
handling of applications for import or export permits within the limits of
quota lists, provides for expanding the lists, and provides for compensations
to counteract change]. The payment agreement regulates payments to be made
through the national banks of the two countries and establishes a manipulative
credit.
The protocol between Sweden and Yugoslavia of 21 May 1949 establishes new
quota lists for ,ae following year. The protocol of the joint Swedish-Yugoslav
commission of 17 September 1949 replaces the former export list with a new one,
provides for utilizing export credits in Sweden, and solves the problem of an-
nuities to be pail for nationalized property
A supplementary protocol to the trade agreement of 12 September 1949 be-
tween Yugoslavia and Finland establishes new quota lists for 1 October 1949
to 31 December 1950.
A protocol on trade between Yugoslavia and Denmark establishes new quota
lists for 1 April 1949 to 31 March 1950.
An exchange of notes between Yugoslavia and Norway extends the trade and
payment agreement of 30 August 1946, establishes new quota lists for 1 May 1949
to 30 April 1950, and establishes a special list for investment purchases.
Two protocols were signed by Yugoslavia and the Netherlands in accordance
with the existing trade agreement. The first one, concluded on 18 June, pro-
vides for extension of the previous quota lists to 31 October 1949. The second
protocol, signed on 7 November 1949, establishes quota lists for the next year.
The payment agreement was also extended and provisions were made for increasing
manipulative credit. The protocol also solves the problem of liquidation of
prewar clearings and also of clearings which involved the Netherlands during
the German occupation of Yugoslavia.
The protocol of 12 November 1949 between Yugoslavia and Austria establishes
the validity of new expanded quota lists and contains payment regulations for
goods of less economic importance. The protocol is supplemented by notes re-
garding individual items on quota lists and certain general questions.
Yugoslavia's economic relations with foreign countries continued to develop
in 1950 along the same lines as in 1949, The Eastern Bloc continued its economic
blockade of the country, resulting in no trade relations with those countries.
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Yugoslavia secured new markets in which to sell and Purchase goods and developed
economic relations with foreign countries in a way and to an extent most suit-
able to the country's interests.
Price increases in world markets and the 1950 drought influenced Yugoslav
foreign trade unfavorably and created
payment balance. spec! difficulties in trade and is the
The e 1950 because f thiscarciitty and and food the federal egoverr.meent forbade ceased in
export
because of the guaranteed supply system. In 1950 - 1951, export as a whole
will be about 30 percent lower than usual because of the drought. Therefore,
various measures were taken to increase exports in other sectors and to reduce
imports to a minimum.
Volume and Structure of Foreign Trade
The table following shows imports and exports in 1950 (in percent of total
imports and exports) :
Country
Imports
Exports
USSR
0
0
Czechoslovoia
.
0.0
Hungary
0.0
0.0
Poland
0.0
0.0
Rumania
0.0
0.0
Bulgaria
0.0
0
0
0
0
.
West Germany
.
0.0
Austria
Great Britain
16.2
7.3
10.3
10.1
Italy
17.7
2
19
United States
France
10.5
20.7
.
10.9
11
1
Switzerland
2.9
.
3.2
Belgium
2.6
4.0
Netherlands
1.5
2.9
Argentina
3,5
3.8
Egypt
5.7
5.3
Sweden
6.7
5.0
1.3
2.5
The import structure in 1950 was as follows (in percent of total imports):
Raw materials
26
3
Semifinished products
Fuels
.
24.6
Technical material
8.9
8.3
Machines and equipment
In
t
10.6
ves
ment material
Tr
10.5
ansportation facilities
Liv
t
5.0
es
ock for breeding
0.0
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Agricultural and livestock
0.9
Food industry
2.8
Textile, leather, and rubber goods
0.5
Metals industry
1.0
Other industries
0.6
C',ods for cultural purposes
0.0
wheat
0.4
Fruit, vegetables, and their products
2.8
Alcoholic beverages
0.3
Industrial plants
10.8
Animals, meat products, and fats
5.9
Poultry, eggs, and milk products
1.4
Cut lumber
25.4
Forest products
5.1
Finished wood products
0.2
Industrial products (construction material,
chemical products, iron alloys, etc.)
5.4
Ores and metals (other than iron)
19.0
Iron ore
2.3
Coal
1.1
In 1950, Yugoslavia continued to develop favorable economic relations with
all countries with which relations were maintained in 1949. Additional im-
portant agreements were concluded, a very important one being that vita west
Germany; these agreements closed substantial gaps in economic relations with
foreign countries, including several Latin American countries,
A 2-year trade and credit agreement signed with Brazil on 24 February 1950
provides for vex- liberal handling of trade permits, based on maintaining balance
in the trade and payment relations between the two countries. The quota lists
are facultative; new ones will be decided on after expiration of the original.
Both parties to the agreement are to examine and resolve all trade difficulties
through diplomatic representatives. Equal participation of national ships in
transport was agreed on.
The payment agreement provides for a clearing account in the Bank of
Brazil, all payments to be made in US dollars. The agreement also provides
for a manipulative credit of one million dollars.
A 2-year trade agreement concluded with Uruguay on 4 January 1950 provides
for very liberal handling of permits and designates verj liberal procedures re-
garding the allotment of quotas and foreign exchange credits. The payment agree-
ment of 7 July 1948 was extended with slight changes.
A 2-year trade and payment agreement witL Paraguay concluded on 17 January
1950 provides for mutual assistance in thn issuance of permits within the limits
of the manipulative credit. The payment section of the agreement establishes a
non-interest-bearing clearing account at the National Bank of Yugoslavia for all
payments, which are to be in TIS dollars.
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A trade agreement with Mexico signed on 17 March 1950 provides for very
liberal handling of permits.
A one-ye_r mg cement with Peru, s. I on 20 July 1950, contains suggested
elected] quota lists for export and import and provides for the possibility
of trade in goods not included on the lists. The agreement stipulates payment
in PS dollars.
In addition to the trade agreement of 7 June 1948, two supplementary
protocols were concluded with Argentina on 20 January 1950.
The first supplementary protocol regulates commercial trade, provides for
mutual assistance in the import and export of goods specified by facultative
quota lists, aid provides for import permits to be issued for items not on quota
lists. It also provides for a joint commission to be created to promote trade
and supervise fulfillment of the terms of the agreement.
The second supplementary protocol regulates payment. All payments are to
be in US dollars in a single account except for 10 percent of the leather and
wool purchased by Yugoslavia. A manipulative credit is also established by the
protocol.
In addition to the trade agreement of 31 March 1949 between Yugoslavia and
West Germany, two supplementary new protocols were concluded.
The first protocol, signed on 18 April 1950, stipulates that trade will be
conducted in accordance with Yugoslav and West German import and export regu-
lations and establishes quota lists for import and export. A payment agreement,
made in an addendum to the protocol, provides that each country maint.ain a sepa-
rate account in its national currency; the trade balance is to be expressed in
US dollars in a non-interest-bearing acco at.
The second protocol, concluded on 1 November 1950, provides for the first
time since the cessation of hostilities, for very liberal handling of permits.
In addition to regular trade, two-way export amounting to 147 million German
marks is planned for 1950 -? 1955. Yugoslav deliveries are fixed to begin in
1952. Various regulations are planned in regard to Yugoslav export, payment,
credit, and balance adjustments. A joint commission to settle difficulties
that may arise is planned.
An economic and financial agreement vas signed with Italy on 23 December
in accordance with Article 74B of the Peace Treaty. Italy Is to put funds at
the disposal of the Yugoslav goveroment as a first reparations payment, and
Yugoslavia is to place certain funds at the disposal of Italy as payment for
nationalizing Italian property, rights, and interests. Italy is to deliver to
Yugoslavia a number of specific items and Yugoslavia is to furnish part of the
raw material for the production of these items.
A one-year trade agreement signed with Egypt on 7 August provides for very
liberal handling of permits, for compensations Zt-o counteract change], and pro-
vides terms for the liquidation of eventual balances.
A trade and payment agreement signed with Turkey on 5 January provides for
very liberal handling of permits and contains import and export quota lists.
The payment agreement provides that payments for imports to Turkey will. be paid
into the National Bank of Turkey in US dollars at the official exchange rate;
payments for imports to Yugoslavia will be paid into the National Bank of
Yugoslavia in the same manner. The agreement also provides for a manipulative
credit.
xrsrxicrEO
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Trade extended for dpsysent agreements, signed with Norway on 30 August 1949, were
year by a protocol signed on 26 May 1950. New annual trade
lists were established for the same period.
A trade and payment protocol was signed in Belgrade with Sweden on 19 August_
cxL 1 s the trade agreement of 12 April 1947 to 30 June 1951. New quota lists
were established for the same period.
A protocol between Yugoslavia and Denmark, signed on 16 October, extends
the trade agreement of 8 April 1949 we the supplementary protocol of 26 June
1947. Nov quota lists were established.
New trade lists were established with Switzerland on 1 April 1950. These
lists were renewed on 30 December 1950 for 1951.
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