OCR Output

XAs2e December 229

- page three =

ideology, before the Party Congress, the proceeding themselves
produced no such thinge In fact, the lack of a titoist ideology was
painfull obvious to all the participants at the Congres. On the
other hand, *ito himself seemed not to be overly worried by this
Situation for reasons, which obviously have their roots in the first
information of this dispatch.

In the meantime, the struggle between Church and State
Continues at least to a certain degree. The Yugoslav press has
been recently very vocal in its attacks on the Catholic hierarchy
over the question of the Church's ban on the State-sponsored association
of priestse The press and Party members have furthermore continued in
their campaign against Arbbishop Stepinac, especially since the latter
has continued energetically to denounce every step of the government
against religious freedom. But whilé thus the fight is very vocal,
few practical steps are taken at the present time. t is here, as
in other fundam ntal questions: a change in policy is under consiferatio
and henee the regime is unwilling to take any definite steps which
would commit it to one or another definite course of action.

in the economic field, the difficulties at the present time
are very grave indeed, Due to the tremendous industrialization, a
first-class food crisis is developing in the country. The government
tires to obviate to these difficulties by vast imports, but these in.
turn endanger the balance of the country's foreign trade. Hence the
Yugoslav government will have before the Spring to ask for increased
forcign aid. This situation too,if skillfully handled by the Americans,
can bring about a great revisiog of Yugoslav policies in the near
future.