International records / Foreign Relations of the United States

193. Report Prepared in the Bureau of Intelligence and Research

ade is not likely to change in the near future. Belgrade consistently, and unsuccessfully, appeals to Moscow for even more oil. Thanks to its nonaligned connections, Yugoslavia can find other sources of oil relatively easily (it already imports from Nigeria, Algeria, and Libya, among others), but these would demand hard currency in payment. Furthermore, in the face of foreign indebtedness, high unemployment, rising inflation, and export difficulties in Western markets, Yugoslavia currently needs Soviet trade to keep its economy going and its workers employed. (C) Military Ties Essentially Unch…