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Report from Yugoslavia

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X.A. (HO)
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Habsburg Ottó Alapítvány
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1952-08
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5
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KeAeBe August 5 e ~- page four = trade an absolute utopye Pressures put on the government were great and, in order to calm recriminations, Tito had to relax some of his more extreme measures. In June, a series of steps were taken to win over the rural aréas; the discriminatory assessments by local tax collectors were abolished, together with the system of compulsory deliveries of cereals; in poor regions collectivized farms were disbanded and the land returned to its previous owners; capital investment was increased not only for 4 industrial raw material, but also for the import of f@zm machinery and of rural equipment. in order to release industrial recriminations, the covernment promised to ease controls and to grant autonomy and self-rule to plants and workers! groups. Thus all direct responsibilities - such as planning, as allocation of raw material and of foreign exchange, as decisions on specific importations - would be turned over to the State enter= prises. The central government would only retain the over-all control and the forcign trade monopoly and would embody its principles in a small number cf basic laws, instead of a jungle of economic regulations. Finally, in order to relax the foreign currency crisis, Yougo&lav te authorities are now studying a possibility of establishing a free foreign exchange market. In conclusion, Yougoslavia has entered a new phase of economic experimentation. It is a headed towards a "socialism", characterized by a directed economy and by a State and not a private Capitalism. The public property = industrial State enterprise and collective farms= remains the basis for all planning, although, under latest pressures and reactions, it had to be softened either by greater autonomy or by a Slower tempo of collectivizatious. | One typical example of this “controled liberalization" has been the | abolition of the system of industrial production norms. They were | replaced by compuhory and pre-established contributions to a national accumulation fund. This reserve, amounting to about half of the national income, pays for such public expenses as army, industrializa= tion investments, social security and certain administrative needs of federal or State governmentse.. Oppositions and counter=-mcasures. Tito has one aim in view: a marxist Socialism, independent from Stalinism and fundamentally different from Western democracye having to maintain a delicate position between the Cominform he fears and the West he hates but needs, Tito cannot afford too great opp sitior in the country itself. “his opposition however exists: it comes from the nationalitis from the city intelligencia, from the peasants anf tke from the oppressed Churchese Faced with those most divergent difficulties, Tito passes from concessions to repressions and vice-ve:sa. xiim His attitude towards foreign countries and his attitude towards inner problems, bos to be one of constant balancing, of constant trial and error. This is why some obsorvers will call him a tyrant, others will interprete his decisions as heading. towards democracys one of the 34.

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