228. Letter From Yugoslav President Djuranovic to President Reagan1
I am deeply convinced that personal contacts and the exchange of messages at the highest level have made a great contribution to the successful development of cooperation and friendly relations between the Socialist Federal Republic of Yugoslavia and the United States of America. The Presidency of the Socialist Federal Republic of Yugoslavia attaches exceptional importance to these exchanges.
Yugoslavia considers the promotion of all forms of cooperation with the United States to be of great significance. We are glad that our relations rest on a stable and lasting foundation and that they are being constantly enriched with new forms and substance.
On this occasion, I would like to raise with you an issue which is of importance both for the further stabilization of the Yugoslav economy and for the continued expansion of the overall relations between Yugoslavia and the United States, primarily those in the economic sphere.
Yugoslavia, like many other developing countries, is facing economic difficulties which are the result of both internal and external factors. They are particularly reflected in our efforts at maintaining the external liquidity of the country.
Yugoslavia has maximized its efforts in the implementation of the long-term program of economic stabilization. This program has met with the understanding of the developed countries’ governments as well as of international financial institutions. We highly appreciate the understanding and active support of the Government of the United States which found expression in the financial arrangements concluded in 1983 and 1984.
The measures undertaken for the purpose of adjusting the Yugoslav economy have yielded encouraging results. Where we had a balance of payments deficit in the past we are registering a surplus this year. Yugoslavia has met all its obligations toward the foreign creditors. Over the past three years, it has repaid more than 11 billion dollars. This has been achieved with great effort and self-sacrifice.
[Page 673]A debate is under way in the Assembly of the Socialist Federal Republic of Yugoslavia on the Program for the Normalization of the External Liquidity of the Country through 1990. This Program envisages a gradual reduction of debts and an increased inflow of hard currency through a revival of economic activity primarily with a view to increasing exports. This policy calls for a medium-term consolidation of debts, for which, in our assessment, all the necessary conditions have been created. To attain these goals the active cooperation and support of friendly countries is indispensable.
Commercial banks have in principle agreed to the multi-year refinancing of our obligations. This month we shall commence talks with the International Monetary Fund on forms of cooperation and the Fund’s participation in this arrangement. However, as in the past, the active participation of the creditor countries’ governments is indispensable. These governments, and the Government of the United States in particular, have been instrumental in the realization of the previous financial arrangements.
Mr. President,
The early commitment of the Government of the United States to multi-year refinancing and its support would be of exceptional importance to the realization of this Program. The Presidency of the Socialist Federal Republic of Yugoslavia would highly appreciate your understanding and personal support.
The Presidency of the Socialist Federal Republic of Yugoslavia has decided to dispatch to Washington the Deputy Federal Secretary for Foreign Affairs, Mr. Budimir Loncar, to exchange views with your aides and, should it be necessary, offer further clarifications.
I avail myself of this opportunity to renew my most sincere congratulations on the great trust the American people have placed in you by re-electing you their President. I wish you much success in the discharge of your responsible duties to the benefit of the American people and the promotion of understanding and cooperation in the world.
May I extend to you, dear Mr. President the most cordial greetings and best wishes of the Presidency of the Socialist Federal Republic of Yugoslavia, and assure you of my highest consideration.