(11) More detailed prescriptions and instructions for the carrying out hereof shall be issued by the FPRY Cabinet Council for Commerce and the FPRY Cabinet for Agriculture and Forestry.

(12) The present order enters into force immediately.

The Premier of the FPRY and Minister of National Defense, Marshal of
Yugoslavia.

(Signed) JOSIP BROZ-TITO.

Member of the Cabinet of the FPRY and President of the Council for
Commerce.

(Signed) OSMAN KARABEGOVIC. Member of the Cabinet of the FPRY and President of the Council for Agriculture and Forestry.

BORBA, September 27, 1950.

532

(Signed) Engin. MIJALKO TODOROVIC.

OFFICIAL GAZETTE, No. 59

On the basis of the article 1 of the law authorizing the Federal Government to pass regulations concerning our national economy, and upon the proposal of the president of the economic council of the Government of the FPRY and president of the council of legislature and promotion of the people's authority of the Government of the FPRY, the Federal Government issues hereby the following:

ORDER ON STEPS FOR SAVING ARTICLES INTENDED FOR BROAD CONSUMPTION

The

(1) All foodstuffs and industrial articles destined for the guaranteed rations system from stocks (fund) of the guaranteed ration system which are to be handled by competent managements of the guaranteed ration system. guaranteed ration fund is given priority in getting produced or purchased goods. Articles from the guaranteed ration fund cannot be used for any other purposes except for the requirements of the guaranteed ration system.

Only goods of the guaranteed ration system and that sold at tied prices can be sold at low special prices but even then only to consumers entitled to them. Goods cannot be sold to certain categories of consumers or to particular persons at special prices (low uniform, commercial, or free prices) differing from those fixed for such goods by competent officers for prices.

(2) No one is entitled under any condition to get articles of the insured supply at low uniform prices in excess of the quantities determined for the R-1 category of consumers, except workers classified into categories R1a (miners), R-1b, R-forest workers, Rz-1 and Rz-2 for foodstuffs, and IR-1a for industrial articles, as well as persons quoted under paragraph 2, article 2, of this order.

For persons performing particularly responsible and strenuous federal and republic state and social functions and for those engaged in important scientific work, the council of trade of the Government of the FPRY is to set up norms in accordance with which they will get foodstuffs below the quantities provided for consumers of the R-1a category, and industrial articles up to the quantities provided for IR-1a category, but maximum

Grams of bread per day

Grams of flour per day

Kilograms of lard per month.

Kilograms of meat per month.

Grams of sugar per day.

Grams of coffee per month.

Grams of beans, peas or such like, per day.

Grams of marmalade per day

Points and coupons valued at 1,000 dinars for industrial articles___

700

70

1.5

6

60

210

300

70

192

Members of families of persons mentioned above are to be classified into categories of consumers in accordance with the general provisions and they are to enjoy no other privileges.

(3) All enterprises and stores which were specially supplying particular categories of consumers are hereby abolished. Exception from this is made for workers' supply services of enterprises, including restaurants and messes of

enterprises, institutions, and offices, enterprises supplying sailors and stores for persons mentioned under paragraph 2, article 2, of this order.

All the existing enterprises and stores for special supplying, abolished by this order, such as enterprises of people's committees, social and political organizations, particular branches of state administration, and so on, are to cease working and fuse with the general commercial network on the basis of their inventories which are to be made within 30 days from the date this order is put into effect. (4) All farms engaged in specially supplying certain categories of consumers, irrespective whether they are owned by the state or social organizations, are to be handed over to the Republic Ministries of Agriculture which are either to form from them agricultural estates or deliver them to certain enterprises or to the county or local people's committees for the purpose of increasing supplies of consumers of all categories. These farms are to be taken over by officers of the competent ministries of agriculture within 2 days from the date this order becomes effective, with the provision that all the transfer formalities be completed 8 days thenceforward. Excepted from this are farms of the producing enterprises (including transport), farms for supplying persons mentioned under paragraph 2, article 2, of this order, farms for supplying hospitals and those belonging to enterprises supplying exclusively restaurants and messes. Articles obtained from these farms, insofar as they are included in the guaranteed ration system, are to be sold at the free market prices. Farms belonging to enterprises are to supply exclusively their own workers and employees engaged in such enterprises, but not those engaged in directorates, ministries, and other high-rank bodies.

(5) Forbidden is the existence and formation of all kinds of special recuperation centers, picnic grounds, villas, and such like destined only for use of certain persons, institutions, or enterprises, irrespective of whether they are owned by the Government or social organization. Excepted from this are workers' recuperation centers under the administration of the central board of the labor unions of Yugoslavia. Certain of these buildings may be used for indispensable purposes of representation on approval of the Prime Ministers of the Federal or Republic Governments.

The president of the Committee for Tourism and Hotel Industry of the Government of the FPRY may approve, in agreement with the president of the Council of Trade of the Government of the FPRY, the existence of recuperation centers for members of certain state as well as of social organizations acting on the entire territory of the FPRY.

Special recuperation centers and other objects quoted under paragraph 1 of this article, together with their total inventories, are to be delivered to the general tourist-hotel industry network within 15 days from the date this order is put into effect.

(6) It is forbidden to give out foodstuffs from the insured supply system fund, and from other funds free of charge, or on account of the budget or at low uniform prices for receptions, feasts, conferences, or other manifestations. Excepted from this are receptions with the object of state representation held by the Prime Ministers of the Federal or Republic Governments, presidents of the Federal or Republic National Assemblies, Ministers of Foreign Affairs and Foreign Trade, president of the council of science and culture of the Federal Government and by persons designated by them in agreement with the council of trade of the Government of the FPRY as well as by the highest rank scientific and cultural institutions of the Government of the FPRY.

(7) It is forbidden to supply snack bars and such like of Government offices, institutions, and enterprises with articles from the insured supply fund and from other funds at low uniform prices. Special provisions of the president of the council of trade of the Government of the FPRY are to stipulate articles to be sold by such snack bars.

Also forbidden is the extension of any kind of service or sale of foodstuffs by these snack bars free of charge or at low uniform prices, as well as sale free of charge or at low uniform prices of industrial or other articles for the purpose of representation except such as quoted under article 6 of this order.

(8) Priority from the guaranteed ration fund is given to hospitals, health institutions, and institutions for protection of children, as well as to consumers of the categories D-1, D-2, D-3, B, and T (B and T stand for sick people and pregnant women).

Employees and workers of such institutions are not to get supplies from funds engaged in supplying such institutions nor can they avail themselves of their priority.

76048-50- -3

Milk from the insured supply funds is not to be given to any consumers for any purpose until consumers of the categories D-1, D-2, D-3, B, and T, as well as hospitals, are fully supplied.

(9) No priority with regard to supplies is to be given to any category of consumers or any persons which would deviate from the order established by the president of the council of trade of the Government of the FPRY in conformity with the priority mentioned under article 8 of this order.

It is forbidden for workshops or enterprises, no matter under whose manage ment they are, to supply certain persons or offices and institutions with their products free of charge or at low uniform prices except through the regular insured supply channel for particular categories of consumers.

(10) State offices, institutions, and enterprises, as well as administrative institutions of social organizations are forbidden to buy any kind of furniture. pictures, carpets, curtains, or any other articles for decorating their office premises, or any raw materials for such purposes.

All contracts signed with this object in view are to be canceled.

No repairs, adaptations, and so on, of state buildings is permitted except with the object of their proper maintenance. All repairs already begun are to be carried out only to the level which construction rules permit for proper protection of buildings.

Exceptionally and upon approval of the respective Minister of Finance one will be permitted to buy material for the proper upkeep of furniture and suchlike, but exclusively at the free market prices for goods of broad consumption which is not included within the insured supply system.

(11) Economic enterprises or institutions are forbidden to barter among themselves one kind of product for another except if such a barter is permitted by special provisions.

(12) Sale from funds of the insured supply system of textiles, wood, or any other kind of raw materials, building materials or industrial products at low uniform prices for the purpose of public performance, manifestation, rallies, and such like, is forbidden.

(13) Free supply of fuel for motorcars of any persons will not be permitted under any grounds. Ministers and category of persons designated by the Prime Minister of the Government of the FPRY are entitled to a fixed allowance for paying fuel for the minimum official use of their cars.

With the object of proper utilization of motorcars for official purposes one may organize certain auto-taxi services.

The due date for implementing these provisions is 30 days from the date this order is put into effect.

Detailed provisions for implementing provisions of this article are to be passed by the president of the council of communications of the Government of the FPRY in agreement with the president of the council of legislature and promotion of people's authority of the Government of the FPRY.

(14) Control commissions of the state and other bodies, ministries of finance and all officers of the financial service, councils of trade and all trade inspectors are hereby ordained to see that this order is implemented strictly and to report every infringer to the public prosecutor.

(15) All provisions and special decisions contrary to this order are rescinded. (16) Orders issued contrary to this order are not to be executed. Enterprises are obliged to report such orders to the public prosecutor immediately.

(17) Individual deviations from this order in case of exceptional necessity may be permitted only by the president of the council of trade of the Government of the FPRY in agreement with the Federal Minister of Finance.

Implementation of this order and issuance of detailed provisions for its application is assigned to the president of the council of trade of the Government of the FPRY and to the Federal Minister of Finance.

(18) In case that their acts are not of criminal nature, infringers of this order are liable to a fine up to 30,000 dinars or to imprisonment up to 15 days as follows:

(a) Persons infringing provisions quoted under articles 1, 2, 5, 6, 7, 8, 9, 10, 12, and 13 of this order;

(b) Persons availing themselves of their positions, who are trying to get for themselves or for others privileges to which they are not entitled, that is, persons issuing orders or instructions contrary to articles 8 and 9 of this order;

(c) Persons who through their information or otherwise should assist others in getting certain advantages with regard to the foodstuff or industrial articles supply;

(d) Persons who should fail to hand over farms within the specified period under article 4 of this order or who would hinder implementation of measures concerning such transfer;

(e) Directors of enterprises who should fail to report orders issued contrary to this order (article 16) to the public prosecutor immediately;

(f) Persons who would barter their products contrary to the article 11 of this order.

The administrative-punitive proceedings will be conducted and decisions in the first instance passed by executive boards of county people's committees. President of the council of trade of the Government of the FPRY or Republic ministers of Trade and Supply may on their own take up the proceedings in the first instance, irrespective of the stage it is at at that time, conduct them and pass their decisions.

(19) This order is effective from November 1, 1950. BELGRADE, October 10, 1950. No. 5140.

(Signed by) JOSIP BROZ-TITO,

The Prime Minister.
BORIS KIDRIC,

Minister of the Federal Government.
ENG. MILENTIJE POPOVIC,

Minister of Foreign Trade of FPRY.

Mr. HIGGS. I might add that just recently the Yugoslav Government abolished the preferential treatment on foodstuffs which went to the members of the party. Members of the party now do not have preferential treatment over other citizens.

Mr. SMITH. Is this program designed for civilian relief, or is the army also to share under this legislation?

Mr. PERKINS. It is for all the people of Yugoslavia, and that would include the army.

Mr. SMITH. Is there any breakdown as to what the percentage would be?

Mr. PERKINS. What percentage would go to the army?

Mr. SMITH. And what percentage would go to the civilians.

Mr. PERKINS. We can get that for you. I do not think we have it available.

Mr. SMITH. I wish that you would get it for the record.

(The information requested is as follows:)

It is not possible to state what percentage of the total foodstuffs supplied by the United States will go directly to the Yugoslav armed forces. However, foodstuffs up to $16,000,000 in value, equivalent to the needs of the Yugoslav armed forces for a period of 4 months at the rate of $4,000,000 a month, are being shipped under the terms of the Mutual Defense Assistance Act of 1949, as amended. It should be noted that the foodstuffs supplied with MDA funds under the stopgap program, or other foodstuffs in the total program, will not be specially earmarked for the Yugoslav armed forces. The bulk of the food requirements of these forces are being met from indigenous sources. The Yugoslay Government, however, has been able to draw on these sources for the army because it has the assurance that supplies will be available from the United States to offset the drain on supplies available for the civilian populace.

Mrs. BOLTON. I thought you said the $16,000,000 was given the army already, and that would satisfy their whole need for 4 months. Mr. PERKINS. It was estimated for 4 months. I am not certain. Mrs. BOLTON. And what we are discussing now begins after the end of the 4 months' period. The help, the food, the aid we are talking about, begin only after the 4 months' period is over?

Mr. PERKINS. No; the amount of food which is being shipped under the MDAP is estimated to take care of the army for 4 months. Mrs. BOLTON. Not the stopgap food?

Mr. PERKINS. The stopgap food.

Mrs. BOLTON. That is what I mean.

Mr. PERKINS. The reason that I hesitated to draw a conclusion regarding that $16,000,000 against the total is because I am not sure that is the total requirement for the whole army.

Mr. SMITH. Is it not true, Mr. Secretary, under the collectivization of the farm, there is 11 percent less production today than there was in 1939?

Mr. PERKINS. That I do not know. As I said earlier, I think you would probably get more information on that from the agricultural attaché who will be here tomorrow.

Mr. SMITH. Are there any conditions at all to be attached to this aid, or are we going along on faith, simply hoping and praying that they will do what is right?

Mr. PERKINS. We are going to attach the conditions, of course, of equality of distribution, fairness of price, and publicity, and that we have the right to inspect to see that the food is properly distributed. Mr. SMITH. No definite conditions as to the disposition of that vexing problem of Trieste?

Mr. PERKINS. No.

Mr. SMITH. Nothing so far as guaranteeing freedom of speech or the right to have free elections?

Mr. PERKINS. We have not proposed anything of that kind, sir. Mr. SMITH. What would be your attitude if such amendments were offered on the floor of the House in the event the committee approves this legislation?

Mr. PERKINS. I think that we would oppose such amendments as strongly as we could. We believe basically that our strength is getting on with free people, and not in dictating to them. One of the reasons that Yugoslavia broke away from the Kremlin is that they they were being told what to do and how to do it. I think that it would be very embarrassing and unwise for us at this time to try to adopt the Kremlin tactics in telling people what to do.

Mr. SMITH. Do you think the people in Yugoslavia are free today? Mr. PERKINS. I think they are relatively free. They are freer than the rest of the people back of the iron curtain.

Mr. SMITH. If I understand your statement, you said that it was an absolute dictatorship.

Mr. PERKINS. That is true, but there are degrees of dictatorship. Mr. SMITH. Define them.

Mr. PERKINS. There is a certain amount of free speech in Yugoslavia. There is access to information from the west which does not exist in countries farther to the east. They are decentralizing government controls, which we think is an encouraging sign. They have taken steps to grant amnesty to some of their political prisoners and have released several thousand already.

As has already been mentioned, they are removing the privileges of the Communist Party members and placing them on an equality with other people in Yugoslavia. I think those are the main differences.

Last, of course, and perhaps in a sense the most important, is they have a more liberal attitude toward religion than the other Communist states. That does not mean that they do not ever interfere with religion, but they are certainly more liberal about it.