Created: 11/21/1989

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rc complaining because diplomats were deaied access lo ihe courtroom. Kiting onj^nron to tire trial throughout the country could force Hie Sunsa facc-aviac ScJuuon. suchardon after convktkm. Aa acquittal orild sentence would hand Serb leaderu.e< defeat in the runuphe party congress and would challenge the legitimacy of Seebia'snewly adopted coruiituuonal conned* over Kosovo.

Management of Ihe Economy, There was no significant change In October to Yugoslavia's economic management system, already tin most decentralized in Paurru Europe. Decades before the torrent wave of economic liberal bat ion elicwlirirm Europe. Yugoslavia atiarvltm) rigid central planning, allowed private agriculture, and libentfeed trade. However. ammmmaaW government spending to fjisnce unproductive state enterprise* and support consumer subsidies has contributed lo chronic inflation that reached aboutercent per month in October- an annualiicd raic of0 percent. An IMF-World nank learn left Belgrade in inhlNovernbcr without reaching an MWaMBnl o" financial inigcisew standby program

ial kmc Yugoslavia ouunutined its uadili"na!ly nan aligned foreign policy sanrr. balancing conuxts between East and West. Premier Maitovics mid October visit to the Umicd Slates to ask for support for bis market oricnird refunn package and assisunce in IMF negotiations helped smooth over cracks rn bilateral n'l.iiioiii stemming. criticism of Belgrade's human rights record Positive Yugoslav press coverage of the visit lias also boosted luppoit for Markovic sod his reform pi ogrf improved his chances for completing his ion.



Foreignrxar's visa iooviet Union in last Oclobei failed to male any progress in resolving probttaBS stemming (run Yugoslavia's large trade surplus with the1 billion interest-free loan tn Moscow.l

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