Created: 3/9/1990

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Yugoslavia Key Points

Of COlDBy rr-TKrl z'.OVJultiply ClfCOOfK. and SCVOfc) scheduled *OCCS were pCBIOOOcd IP iwjil

of inore liberal election law* and alio* opooiiuon {roups timerganize.

Even Serbia, whose leader Slobodan Milosevic has resisted change, is coniklrnng legislation legalizing exposition panics

ove toward poUueal pluralism has been acconspiinied by rising nationakim and increased icgtoiiul and ethnic tensions.

New protests in Kosovo rVrmnos led lo the rodtpkrymeni of federal troopsardening in positions of both Serbs and rthnic Albanians.

Heightened natorol feting in Slovenia led to an ircreajincly inoependent Stanceis federal authorities by the Slcnstne Communist party and government.

The government's anti-aiflaoon reform pn-gram was hurt by high money supply growth and widespread violations of trie wage freeze, but Premierointed In slowing inflation and sant In- would stay the uouJieffl tL%


continued tU rapid prugte siultiparty system dcjpne continuing rvcioaatink tensions and developingVj light hypcrinT.aiioa _H

Potilfcal Piocm.d mulnpatiyrktlons conttfrecd throughow: die counuy. ever, (houghto lSc Federal. Mactoonaan and probably Bosnia-Herogovwae Assemblies art being postponed to await passage of men: liberal election bwi ant in allow apportion groups lime tucnfaniac. The greatest progress has been made in diewnere the republic oTCnwia joined Severn* in approving conRioiiionaJ amendments removing the Comir.uniit party's privileged iums and providing tor free, multipartyoth republics will hold legislative elccdom in April. In Uio aouth. MoniencRro has Joined Bosnia and Macedonia In moving lo implement multiparty systems. Even -Serbia, whose conservative leader Milosevic ha? sleadfmUy resitted pluralistic reforms, hasraft election law ih.ii would legalize oppasitionpanies. The Serbian Isw, howevriairKHins numerous renncikms ilui Invite abuse H

Yugoslavia's move toward political pluralism has been accompaniedharpening of ethnic and regional rivalries that threaten Hie country'a political cohcUon. The hardline nationalist policies ot Serbian nrongmaa Milosevic, in panKuler. have not only promoted ethnic strife in Keaovo Province, but have also increased tensuv wi* Slovenia and Croatia and led lo mcreascd national feeing in to* republics. The Slovene Conwiunui pany has responded by adopting an increasingly independent stanceis federal authonues. rictrplificd by its severing of ues with the Yugoslav Communist pahy an early February. The Sloven* govenrmenl also reuli.ued against Serbia's economic boycoil by reducing payments to the fedcnlburfgci thai would goeibla and Kosovo.

Control of Society. Serbia's Kosovo Province remained tense as demonsuaiions continued througlioui die monthtirgcor protests in mid-month led federal authorities

posiionsolrv seemed lu harden fctlinic Albanians shsrply criuciud rtpnsslvc poIkc mcasuio and oiled (ot the icsignBiioa of theai leadership, vhile Sesb-an leaden called fen -msed intervention, mass eapolsions of ethnic Albanians (rowUKy compriseercent of the popublioo- and ine rcsctskaneni there of Serbs Iron outside the province Calls lor calm and dialogue within the province came from the new group "Democratic Alliance of Koso-rCwhKhtoignedembers

Management of the Economy. The govcmmcnt'i 'shock therapy" program lo tight hyperinflation ran into serious problems in February. Crowth of ihe ofUcial money supply, which has fueled hyperinflaiicn, rose to about twice the level aimed foe and anor unbacked enterprise credits added to suong consumer demand. Premier Markovic also conceded widespread violation ol his program's wage freeic. Ihe National Bank moved in mid-month to slash the money supply, which by tlx end or the month left aboutercent of the firms in Belgrade without lire cash needed to remain open, according to claims by Serbian bankers. Markovk nonetheless said he will stay the course and pointed to preliminary da la to show inflation was slowing.flH

Foreign Relations. Increasing ethnic strife in Yugoslavia Is souring relations with several of its neighbors. Belgrade'sosovo hasajor irritant in relations with Albania, which Serbia has accused o( fomenting unrest among Ihe province's cihnic Albanian population. Rising national feeling in the republic of Macedonia and desire lo steal the thunder ol new nationalist op position political panics that arc forming there led the Yugoslav government- -on behalf ol the Macedonian government-touarrel with Bulgaria ova ihe ticaiment of its 'Macedonianhich the Bulgarians tclnsc to rccop.nize- Tensions also appear to be increasing with Greece over the Macedonian is

art not Striving forut atosition within Yugoslaviaowwn lifether people* and nationalities in. Jnedonand equality."S'tfiffwni liy Kosovo opposUioi groups

lo redeploy military troopsi*iw of force. Despite calls For dialogue hy President Dmovsck and Premier Markovic.

Original document.

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