Yugoslavia Key Points
Secessionist sentiment seemed lo be growing as Slovenia headed toward the lint lound of assembly and presidency electionspril.
The campaign for April assembly elections in Croatia was increasingly dominated by Ihe ultsanatlonalisiic CroaDan Democratic Union, whose growing support was pushing the other parties toward more nationalistic positions.
New violence by ethnic Albanians In Kosovo over allegations that several hundred Albanian school children had been poisoned was exploited by Serbia to tighten control over the province.
The signing in mid-March0 million IMF standby loanuch-needed boost lo Premier Markovic's economic reform program, but the retained dghiening of moneysuppty almost certainly will force ihe shutdown of many firms dependent on government funds-J
nationalist Sentiment further itrained Yugoslavia's political irj social cocicsion.
Political Proee-vs. Natiotvol 1st tensions and secessionist scnUmcnt intensified ss tne campaign for April elections in the northern republics of Movents and Croatia reached high gear. In Slovenia. iIk social democratic opposition coalition DEMOS appeared to be pulling ahead wish its call fories to the federation. In response to the public'i growing
"Sloveniaifeboat chained to the Yugoslav Titanic.-Dimitrij Rupel, DEMOS candidate for position on the Slovene state presidency.
"and-Belgrade" outlook, the Slovene Assembly In early March declared the republic's economic irKlcpendertce and decided toroposalconfedenil" Yugoslavia. Assemblyned lo^onstder secession if Belgrade rejected
The electoral campaign also stirred up strong nationalist feeling in neighboring Croaua The ultranationalist Croatian Democratic Union (CDU) claims lo have emerged as the largest single party. The CDU may have Increased iu support as Ok result of an unsuccessful attack on its leadererb! an gunmanrovocatory rally In mid-March. Adding to the tension is the fact thai ethnic Serbs are forming aimed vigilante groups. The CDU's popularity has forced the leading oppositioncenter-right Coalition of Nationalmore nationalistic positions. It recently demanded ihe right to secede and invited leadersationalist group quashed byo1 lo join it Support for the Cwnmunisis appeared even weaker than in SloverUajtfHB
Control of Society. Belgrade's aUlily lo maintain order was once again tested in Serbia's Kosovo province. Mobs of angry ethnic Albanians attacked and injured several Serbs and Montenegrins in late March following allegations that several hundred
Albanian schoolchildren had beenMedical examiners could find no evidence of poisoning and Icdcral and Army speVesmen labeled tlierovocation by clhnic Albanianextremists. Serbia exploited the Incident to extend control over the province, replacing Kosovo's Interior Minister and purging police officials In several Kosovo towns. There was also an upsurge of ex Irani* Serbian demands earlier in the month, as ultiarutionalist alternative groups in Serbia called for banning all ethnic Albanian political parties, ending Kosovoautonomous" sumsjndjlaclng it under martial law for lite next decade.
Management of the Economy. The signing in mid-March0month IMF standby loan providedmuch-needed Impetus for Premier Mirkovic'i economic reform program The Fund, however, imposed severe retirements that will he very unpopular politically,ercent reduction in Ihe money supply by yeanrnd and near-eliminationc_banking system's ability 10
Yugoslav businesses already reeling from Ihe sharp reduction In the money supply since February, pressure was building for Markovic to ease up. The usually supportive Slovenes were leading the opposition and were withholding tax payments to Ihe federation in order lo prop up money-losing Slovene
Foreign Kii.iiions. Premier Markovic reportedlytrong pitch for association status with the EC and for increased economic assistance during talks will) EC Commission President Odors in Brussels in early March. No Finn commiimeixs were made on either request Belgrade did. however,CO million loan from the European Free Trade Associationevelopment fundestructure the economy..Original document.