Germany, U.S., and the Yugoslav Crisis

              By Sean Gervasi

              Winter 1992-3 # 43

              The Civil War As Lethal Shadow Play

              The horrors in the Balkan region displayed daily on
              television and in the newspapers show a country
              apparently torn apart by civil war. But what lies behind
              images of gaunt refugees, artillery duels,
              blood-spattered walls, combat patrols and devastated
              towns and villages? The only answer that most of us
              can give is that it is the struggle of Yugoslav against
              Yugoslav, of Croats against Slovenes and Serbs, of
              Muslims against Serbs, and of Serbs against all of the
              others.

              That is what the mass media have been telling us, and
              that is all they have been telling us. There are,
              however, other forces at work in the Yugoslav crisis
              beyond ethnic tensions. Yugoslavia has for some time
              been the target of a covert policy waged by the West
              and its allies, primarily Germany, the United States,
              Britain, Turkey, and Saudi Arabia, as well as by Iran, to
              divide Yugoslavia into its ethnic components, dismantle
              it, and eventually recolonize it. Not that, given hundreds
              of years of hatred and tension, that is a particularly
              difficult job. After all, the term Balkanization entered the
              political vocabulary to define a process of national
              fragmentation and fratricidal war. But while the internal
              dynamics of the war are well documented, the external
              forces of destabilization which were put into high gear
              years ago have received scant attention.

              The basic issues in Yugoslavia have always been
              independence and economics. Yugoslavia has been at
              the center of a tug of war. The Soviets sought its
              incorporation into the USSR; the West has tried to pull
              Yugoslavia--along with other countries of Eastern
              Europe and the Balkans--"into Europe," that is, into the
              capitalist world economy.

              To this end, the West has promoted de-industrialization
              and dependence and unleashed an arsenal of modern
              power including threats and pressure, a U.N.-sanctioned
              economic blockade, and covert arms shipments. Under
              Marshall Josip Tito's leadership, Yugoslavia established
              its independence from Moscow and formed a de facto
              alliance with the West and NATO. By the end of 1990,
              however, while Eastern Europe was well on the way to
              European integration--and economic crisis--Yugoslavia
              began to suspend the "reforms" to which it had initially
              agreed. That resistance brought down the wrath of
              certain Western powers, which then sought to break
              Yugoslavia by promoting separatism and igniting the
              ethnic tensions that had haunted the country for
              centuries.

              Yugoslavia and the Reagan Doctrine

              Since World War II, Yugoslavia--prized by both
              sides--has been molded by the forces of Cold War.

              Early in the first Reagan administration, the U.S.
              escalated the Cold War with an aggressive, secret
              strategy to undercut the Soviet economy, destabilize
              the USSR, and ultimately bring about the collapse of
              Communism. (1) In 1985, then-Ambassador Jeane
              Kirkpatrick dubbed this new strategy, which went well
              beyond containment, "the Reagan Doctrine." (2)

              At about the same time, according to recently
              declassified documents obtained by CovertAction, the
              U.S. adopted a similar strategy toward the countries of
              Eastern Europe, including Yugoslavia. In September
              1982, when the region seemed stable and the Berlin Wall
              had seven years to stand, the U.S. drew up National
              Security Decision Directive (NSDD) 54, "United States
              Policy toward Eastern Europe." Labeled SECRET and
              declassified with light censorship in 1990, (3) it called
              for greatly expanded efforts to promote a "quiet
              revolution" to overthrow Communist governments and
              parties. While naming all the countries of Eastern
              Europe, it omitted mention of Yugoslavia.

              In March 1984, a separate document, NSDD 133, "United
              States Policy toward Yugoslavia," was adopted and
              given the even more restricted classification: SECRET
              SENSITIVE. When finally declassified in 1990, NSDD 133
              was still highly censored, with less than two-thirds of
              the original text remaining. (4) Nonetheless, taken
              together, the two documents reveal a consistent policy
              logic.

              The "primary long-term U.S. goal in Eastern Europe" as
              described explicitly in NSDD 54 was "to [censored...]
              facilitate its eventual re-integration into the European
              community of nations." (5)

              Since the Eastern European states could not have been
              "reintegrated" into "the European community of nations"
              as long as they remained under Communist rule, the
              basic U.S. goal required removal of Communist
              governments. The implication of ending Soviet influence
              extends to the more cautiously worded remnants of
              NSDD 133. The goal of "U.S. Policy [toward
              Yugoslavia]," it states, "will be to promote the trend
              toward an effective, market-oriented Yugoslav economic
              structure...[and] to expand U.S. economic relations with
              Yugoslavia in ways which benefit both countries and
              which strengthen Yugoslavia's ties with the
              industrialized democracies." (6)

              Thus, the basic U.S. objective for Yugoslavia was much
              the same as for Bulgaria, Czechoslovakia, the GDR,
              Hungary, Poland and Romania: a capitalist
              transformation. The list of policy instruments described
              in NSDD 54 to promote change in Eastern Europe may
              help fill in some gaps in the more highly censored
              Yugoslavia-specific NSDD 133. The mechanisms included
              most-favored-nation status, credit policy, IMF
              stewardship, debt rescheduling, cultural and educational
              exchanges, information programs, high-level visits, and
              restrictions on diplomatic and consular personnel. (7)
              Even in this document, some items were completely or
              partially deleted in the declassified version.

              Today, the revelations in the two documents may seem
              banal. It should be remembered, however, that for many
              years, the government felt the need to keep secret
              even the more overt means of pressuring for change.
              Furthermore, significant parts of U.S. policy in the
              region, particularly in Yugoslavia, remain secret even
              today. Covert policies, which undoubtedly were
              implemented, are not usually discussed at any length in
              a National Security Decision Directive.

              The U.S. and Yugoslavia's Internal Crisis

              The existence of a separate document for Yugoslavia
              reflects that nation's special relationship with the U.S.
              After Yugoslavia left the Warsaw Pact in 1948 over
              disagreements with Stalin, the West saw it as a buffer
              state against Soviet expansionism. When the Soviet
              Union made threats against it in the early 1950s,
              Yugoslavia asked the U.S. for help and quietly undertook
              "certain military obligations" towards the West in the
              event of a conflict with the Soviet Union. (8) The
              agreement included a commitment to "protect northern
              Italy from penetration by Soviet troops based in
              Hungary." (9) According to a knowledgeable Yugoslav
              analyst, the "alliance with the West," along with
              expanded educational, diplomatic and commercial ties,
              "forced Yugoslavia Communists to open up to Western
              cultural and political influences." (10)

              During the post-war years, Western aid--amounting to
              several hundred billions of dollars, most of which came
              from the U.S.--helped to create a boom in Yugoslavia.
              And, although Yugoslavia remained poorer than most of
              the countries of the industrialized West, the relatively
              equitable distribution of the fruits of industrialization
              carried much of the country out of poverty. By the end
              of the 1980s, Yugoslavs were better off than most
              people in Portugal, Spain, Turkey, and parts of Greece.
              That economic success was crucial in diminishing
              regional and ethnic tensions.

              Thus, the Yugoslav socialist experiment was generally
              viewed as successful, even in the West, both for its
              economic progress and for the unity which Marshall Tito
              brought to an ethnically diverse state.

              Yugoslav planners, however, strove to combine
              structural change with rapid economic growth. And that
              policy was costly; it created a large trade deficit and
              weakened the country's currency. The oil crises of
              1973-74 and 1979 exacerbated Yugoslavia's problems.
              (11) By the early 1980s, the country faced serious
              balance of payments problems and rising inflation. As
              usual, the IMF, in the name of financial rectitude,
              stepped in and prodded the Yugoslav authorities to slow
              growth, restrict credit, cut social expenditures, and
              devalue the dinar. Although the trade deficit was
              reduced and the balance of payments showed a record
              surplus by 1970, (12) the IMF "reforms" wreaked
              economic and political havoc. Slower growth, the
              accumulation of foreign debt--and especially the cost of
              servicing it--as well as devaluation, led to a fall in the
              standard of living of the average Yugoslav.

              The economic crisis threatened political stability. Not
              only did the declining standard of living undermine the
              authority of the country's leaders, it also threatened to
              aggravate simmering ethnic tensions.

              The 1980 death of Marshall Tito--the one leader whose
              authority could hold the country together--plunged
              Yugoslavia into a dual crisis. And without leadership, the
              economic crisis suddenly become more difficult to
              resolve.

              Moreover, since Yugoslavia was linked to the world
              capitalist economy, it had suffered the same economic
              stagnation that affected Western Europe and North
              America during the 1970s. When the Reagan
              administration's supply-side economic policies
              precipitated a recession in 1981-83, the effects were
              felt everywhere, not least in Yugoslavia.

              It is hardly surprising that Yugoslav planners found it
              difficult to arrest economic decline in their own country.
              Some observers claimed that the inability of the
              economic system to respond to the 1980s crisis
              demonstrated the failure of the Yugoslav model of
              socialism. While there is some truth to the charge that
              the system was rigid, Yugoslavia's troubles were caused
              first and foremost by the transmission of the Western
              economic crisis to those countries on the edge of
              Europe which were closely linked to the West by aid,
              trade, capital flows, and emigration.

              The uneasy U.S.-Yugoslav alliance persisted throughout
              1980s. Because of Yugoslavia's unique "buffer" position,
              the U.S. had a special stake in its stability. Despite
              discomfort with its communist "ally," the new Reagan
              administration preserved the relationship, hoping to
              benefit from the developing instability in Yugoslavia in
              order to install a more amenable government.

              In the late 1980s, three factors suddenly altered the
              dynamics of the U.S.-Yugoslav relationship. Yugoslavia
              began to suspend its market-oriented "reforms." The
              Cold War ended and Yugoslavia was no longer so useful.
              And a newly united Germany, staking out a larger role
              for itself in Europe, demanded that the Bush
              administration adopt the German policy of working for
              the "dissociation," that is, the dismantling, of
              Yugoslavia.

              Diplomatic Coercion and Reform in the East

              The summer before the Berlin Wall fell, the major
              Western powers decided in Paris to press the emerging
              East European governments to establish "democracies"
              and market economies. (13) This goal was advanced by
              the 1990 elections throughout Eastern Europe, which
              produced broad support for non-Communist governments
              seeking to implement precisely the kinds of "reforms"
              (14) which the U.S. and its European partners had
              hoped for and worked toward.

              In an exercise more in coercive diplomacy than in
              persuasion, the Western powers determined to offer aid
              and trade only to those countries that agreed to
              market-oriented structural and policy changes.
              Furthermore, noted Richard Portes, chief economic
              adviser to the European Community (EC), the West must
              "build in ways of committing the authorities not to
              deviate from their basic policies." To this end, planners
              demanded four major and irreversible "reforms" in
              Eastern Europe: an opening to the world economy, i.e.,
              to the Western system; the liberalization of prices;
              privatization; and stabilization of of state finances and
              national currencies. These "reforms," argued Portes,
              should mark "a definitive exit from the socialist planned
              economy." (15)

              The governments of Czechoslovakia, Hungary and
              Poland acceded almost completely, while Bulgaria and
              Romania complied in part. Only two years later, the
              northern tier countries of Eastern Europe were

              "in the throes of a deep economic depression...[T]urmoil
              and starvation stalk the Balkans, social crisis and wild
              political swings plague Poland, nationalism threatens to
              tear apart Czechoslovakia, and social discontent in
              Hungary has led to a virtual boycott of existing political
              parties. Quasi-fascist movements have emerged on the
              far right, while the governments of the region have all
              considered initiatives to restrict civil rights." (16)

              Yugoslavia Steps Out of Line

              A crucial change in Yugoslav relations with the West
              occurred when Yugoslavia balked at carrying out the
              reforms urged by the west. As Yugoslavia had initiated
              market-oriented policies before any of the countries in
              the former Eastern bloc--tasting some the the bitter
              consequences--its halting of "reforms" in 1990
              particularly rankled the U.S. The Bush administration set
              out to farce the recalcitrant nation to accede to
              Western demands for a "change in regime." (17)

              In January 1989, when Ante Marcovic was named
              federation premier, the U.S. had anticipated a
              cooperative relationship. "Known to favor
              market-oriented reforms," (18) the new Prime Minster
              was described by the BBC correspondent as
              "Washington's best ally in Yugoslavia." (19)

              In Autumn 1989, just before the Berlin Wall fell,
              Marcovic visited Bush in the White House. The
              president, the New York Times reported, "welcomed Mr.
              Marcovic's commitment to market-oriented economic
              reform and to building democratic pluralism." In this
              friendly atmosphere, Marcovic asked for "United States
              assistance in making economic and political changes
              opposed by hard-liners in the Communist Party." He
              requested a substantial aid package from the U.S.,
              including $1 billion to prop up the banking system and
              more than $3 billion in loans from the World Bank. He
              also tried to lure private investment to his country. In
              exchange, Marcovic promised "reforms," but warned, as
              the Times put it, that they "are bound to bring social
              problems [including] an increase in unemployment to
              about 20 percent and the threat of increased ethnic and
              political tension among the country's six republics and
              two autonomous provinces." (20)

              Marcovic's new austerity plan, announced two months
              later in Belgrade, deepened the Yugoslav crisis. The plan
              called for a new devalued currency, a six-month wage
              freeze, closure of "unprofitable" state enterprises, and
              reduced government expenditure. Believing it would lead
              to social unrest, Serbia, the largest republic,
              immediately rejected it. Some 650,000 Serbian workers
              staged a walkout in protest. (21)

              Marcovic's proposal for some first steps toward political
              democratization--a multi-party system and open
              elections--fared a bit better and, in January 1990, was
              accepted by the Central Committee of the Yugoslav
              League of Communists. Not long afterward, however,
              the Slovene League of Communists seceded from the
              Yugoslav League. In April, Demos, the Slovene
              opposition coalition, described in the U.S. as "an alliance
              of pro-western parties," won a majority in parliamentary
              elections in Slovenia.

              Thus, as the unity of the Socialist Federal Republic of
              Yugoslavia weakened, a pro-Western, pro-"reform (22)"
              camp consolidated and pushed for separatism as the
              only possible way to realize nationalist aims--which
              would shatter the Yugoslav economy.

              By June 1990, when Prime Minister Marcovic introduced
              the second phase of his austerity program, industrial
              output in Yugoslavia had already fallen some ten
              percent since the beginning of the year, in part as a
              result of the measures introduced the previous October.
              Nonetheless, the second phase of the prime minister's
              plan called for further reductions of 18 percent in public
              spending, the wholesale privatization of state
              enterprises, and the establishment of new private
              property rights. To make the package more palatable,
              Marcovic also proposed lowering interest rates and
              conditionally lifting the wage freeze.

              Economic "reform" was the crucial issue in 1990
              multi-party elections held throughout Yugoslavia. In
              Slovenia, Croatia, and Bosnia-Herzegovina, separatist
              coalitions ousted the League of Communists. In Serbia
              and Montenegro, the ruling party--renamed the Socialist
              Party in Serbia--won. The federal government, including
              Prime Minister Marcovic, denounced the separatist
              tendencies to the two northern republics. President
              Borisav Jovic resigned as federal president when his
              proposal for a national state of emergency was
              rejected. (23)

              The line was drawn. The new separatist governments in
              the north wished--at least in the flush of their electoral
              victories--to join Europe and the parade toward
              capitalism. The federal government and some of the
              republics, including Serbia, balked. One European scholar
              summarized the West's view:

              "With the ending of the Cold War...Yugoslavia was no
              longer [a] problem of global importance for the two
              super-powers...The important factor was the pace of
              reforms in the East. What lasted nine months in Poland,
              took only nine weeks in the GDR and only nine days in
              Czechoslovakia. Yugoslavia lagged enormously behind
              [in] this process of democratic transformations. " (24)

              In an ideal world, there would have been a long national
              debate on the way forward, and the separatist
              republics, if still bent on secession, would have
              proceeded through the complex process provided for in
              the Federal Constitution.

              That was not to be.

              Germany's New Expansionism

              The years following the general adoption of the Reagan
              Doctrine saw the pace of change accelerate in all the
              countries of the Socialist bloc. Developments were
              carrying them toward the "quiet revolutions" the West
              desired.

              By the end of 1989, moreover, an equally important
              change--the third major one in Yugoslavia's relationship
              to its emergence as the giant of Europe would prove
              decisive for the fate of Yugoslavia.

              As Yugoslavia continued in crisis, a much-strengthened
              industrial and political leadership in Germany looked east.
              Its influence was rapidly becoming "pervasive, in
              personal contacts, business investments, and
              intellectual life." (25) In the post-Cold War era the
              means for expansion are economic, political, and
              cultural, rather than military. In Eastern Europe, German
              trade groups and banks suddenly became very active
              and German firms sought lower costs, especially lower
              wages and taxes. By 1991, one third of the trade
              between Eastern and Western Europe was based in
              Germany, according to a U.N. study, (26) and Germany
              became the major foreign investor in Eastern Europe,
              especially in Czechoslovakia, Hungary, and Poland.
              German firms now have 1,500 joint ventures in Poland
              and 1,000 in Hungary.

              But it was not just economics that drove Germany
              eastward. Form many Germans, the expansion also made
              historical sense. Their firms were reviving ties to the
              East which went back to the pre-Communist era and
              even to the time of the Austria-Hungarian Empire.

              And perhaps even more disquieting for partially
              recolonized Eastern Europe were the cultural campaigns
              which accompanied economic expansion. These promote
              the use of the German language, German books, and
              German culture in general. The German foreign
              broadcasting service recently announced "a media and
              cultural offensive in Central, Eastern and Southern
              Europe." Its director called the new Germany "the most
              important media and cultural bridgehead between East
              and West." (27)

              The aims and scope of Germany's drive east were
              summed up by the Chair of The East Committee, the
              industrial group promoting business in the East: "it is our
              natural market...[I]n the end this market will perhaps
              bring us to the same position we were in before World
              War I. Why not?" (28)

              German expansion has been accompanied by a rising tide
              of nationalism and xenophobia, igniting old Yugoslav
              fears. These have been fed by evidence that Germany
              has been energetically seeking a free hand among its
              allies "to pursue economic dominance in the whole of
              Mitteleuropa." (29)

              In 1990, Yugoslavia lay in the path of that gathering
              German drive. Given Germany's economic and political
              power, and its aid and trade ties with Yugoslavia, many
              expected Bonn to try to draw the region into its orbit.
              The most obvious beginning would be in the northern
              republics which had historically been considered part
              Europe, and especially in Croatia, which had strong
              German links.

              During the Second World War, Nazi Germany had
              installed a clerical-fascist state in Croatia. (30) After
              the war, more than half a million Croatian �migr�s moved
              to the Fatherland, where their organizations had
              considerable political influence.

              Milovan Djilas may have had these considerations in
              mind, when, more than a year before the secession
              crises of 1991, he warned:

              "It is definitely in the interests of the majority of other
              nations--for example, the Unites States, Great Britain,
              the USSR--to support the unity of Yugoslavia. ...But I
              doubt that Yugoslavia's neighbors...are so
              well-intentioned. I also suspect that in some states, for
              example, in Germany and Austria, there are influential
              groups who would like to see Yugoslavia
              disintegrate--from traditional hatred, from expansionist
              tendencies, and vague, unrealistic desires for revenge.
              (31)

              Europe Intervenes

              Yugoslavia walked a tightrope through the 1980s until
              economic and political crisis, particularly the fall in the
              standard of living, broke its balance. As rival ethnic
              groups shook the rope and the state teetered, European
              Community (EC) intervention helped push Yugoslavia
              into the abyss of disintegration and horrific civil war.

              After World War II, Yugoslavia brought together
              communities which had historically been at odds:
              Slovenes, Croats, Serbs, Muslims (the descendants of
              converted Slavs), Albanians, Hungarians, etc. At the
              same time , the federal government made enormous
              efforts after World War II to create a state which gave
              full play to "national identities" and entrenched the
              rights of minorities.

              Since there was, however, no way to draw the map of
              Yugoslavia to enclose each group in its own republic or
              autonomous region, large minorities would always exist
              within any republic or region. Thus, for instance, large
              numbers of Serbs--more than two million--found
              themselves living in Croatia or Bosnia or elsewhere
              where the boundaries of Serbia were drawn in 1945.

              Within the Balkan tinderbox, two specific actions set off
              the current war in Yugoslavia: the secessions of
              Slovenia and Croatia and the intervention of the EC. The
              former might not have occurred without the intervention
              of the latter. Continuous EC intervention from early 1991
              could not have been more likely to set off a war if it had
              been deliberately designed to do so. It turned a
              manageable internal conflict into appalling fratricide.

              Slovenia and Croatia were clearly driving toward
              independence well before widespread fighting broke out
              between the Yugoslav National Army and Slovene
              territorial forces in the spring of 1991. Their separatist
              aspirations received quiet encouragement and
              assistance from several European powers, particularly
              Germany and Austria, for some time prior to the
              outbreak of hostilities.

              In early February 1991, he Council of Europe stated
              that, to join Europe (as some Yugoslav leaders wanted),
              Yugoslavia would have to resolve its crisis peacefully
              and hold multi-party elections for the Federal
              Parliament. (32) This bland-sounding precondition was,
              in effect, an invitation to Slovenia and Croatia to push
              towards secession, for it linked economic advantages to
              "restraint' in federal dealings with those republics.

              By March, when its was clear that Croatia intended to
              secede, Croates and the Serb minorities began to clash.
              Croatian nationalists organized violent demonstrations in
              Split, besieged a military base in Gospic, and generally
              intensified their national campaign. On May 5, the
              federal government authorized the Army to intervene in
              Croatia (33) and two days later, the military began
              calling up reserves and deploying units in western
              Yugoslavia. "Yugoslavia," said Defense Secretary Gen. V.
              Kadijevic, "has entered a state of civil war." (34)

              The EC then began openly to apply pressure on
              Yugoslavia. In June, the EC foreign ministers gathered in
              Dresden and warned that future assistance would
              depend on "respect for minority rights," "economic
              reforms," etc. The EC was no longer posing conditions
              for Yugoslavia's entry into Europe, but simply for normal
              economic relations. (35)

              When Slovenia and Croatia declared independence on
              June 25, 1991, the EC openly intervened again, and
              again its actions prompted separatism. Within three
              days after the Yugoslav Army deployed units in both
              republics, the EC threatened the "cut-off of $1 billion in
              scheduled aid" unless Yugoslavia accepted mediation by
              three EC foreign ministers. (36) Slovenia and Croatia
              would otherwise have been occupied by Yugoslav troops
              and the secession halted.

              The foreign ministers imposed a cease-fire which called
              for a three-month suspension of the Slovene and
              Croatian independence declarations; withdrawal to
              barracks of all federal troops; and acceptance by Serbia
              of Stipe Mesic, a Croat, as federal president. (37) There
              was no settlement of the federal dispute with Croatia,
              and federal troops remained in parts of that
              republic--those inhabited primarily by Serbs. The
              Yugoslav Army ordered the withdrawal of its troops from
              Slovenia shortly thereafter.

              Although the EC intervention halted the secession
              temporarily, by preventing Yugoslavia from defending its
              own unity and territorial integrity, it worked to the
              advantage of Slovenia and Croatia. (How would
              President Lincoln have treated a similar foreign
              intervention in the U.S. Civil War?)

              In October 1991, the EC called a Conference on
              Yugoslavia in The Hague. The aim, in theory, was to end
              the crisis and negotiate a new federal structure for the
              Balkan nation. The Draft Convention on Yugoslavia
              prepared by the EC announced that the republics "are
              sovereign and independent, with [as] international
              identity." (38) Thus, while the Conference adopted
              seemingly reasonable principles for resolving the conflict,
              at the same time, in effect, it abolished Yugoslavia as a
              unitary state. Within a short time, and upon expiration
              of the three-month delay imposed in July, both Croatia
              and Slovenia formally seceded from Yugoslavia.

              One is left to wonder whether the EC wanted a unified
              Yugoslavia and acted consistently and stupidly to
              defeat this goal, or whether other factors were quietly
              at work. The key to the seeming contradiction between
              stated goals and actual consequences may be found in
              the behind the scenes maneuvering of an expansionist
              Germany. As William Zimmerman, former U.S.
              ambassador to Yugoslavia, noted:

              "We discovered later that [German foreign minister]
              Genscher had been in daily contact with the Croatian
              Foreign Minister. He was encouraging the Croats to
              leave the federation and declare independence, while
              we and our allies, including the Germans [sic], were
              trying to fashion a joint approach." (39)

              In fact, reunited Germany has been throwing its weight
              around for some time, and not just on Yugoslavia. (40)
              "The Germans," said a U.S. State Department official,
              "are now so much more stable and so much more
              powerful than anyone else in Europe that they can get
              away with almost anything." (41)

              From 1990, Germany was forcing the pace of
              international diplomacy on the question of secession. In
              December, within a few months of the de facto
              recognition of Slovenia and Croatia at the Hague
              Conference, Germany itself recognized their
              independence. "Germany virtually forced its allies to
              reverse themselves and grant recognition to Slovenia
              and Croatia." (42)

              Not Just a Civil War

              Just as foreign intervention helped foment the war in
              Yugoslavia, (43) outside forces have also helped sustain
              and exacerbate the conflict. Croatian political
              organizations in the Diaspora--especially in Germany,
              Canada, the U.S., and Australia--often espouse
              extremist, right-wing, and sometimes openly anti-semitic
              views. Through the generation which left Yugoslavia
              after World War II, they have maintained close ties to
              the Nazi-sponsored Croatian independent state led by
              Ante Pavelic and Archbishop Alois Stepinac. (44)

              Since 1945, Croatian �migr�s and �migr� organizations
              have actively and consistently supported the cause of
              Croatian independence. "These separatists," said a
              prominent Slovak �migr�, "want to prove that they were
              right 50 years ago, and they try to pass the mythology
              on to their kids...that things will be perfect when
              independence comes." (45)

              International �migr� support has been financial as well
              as political. According to the Los Angeles Times,
              overseas Croatians were largely responsible for funding
              Croatian President Franju Tudjman's victorious
              presidential election campaign in 1990. (46) After he
              won, the money continued to flow. "Canadians," said
              Toronto businessman Dick Bezic, "bankrolled [Tudjman's]
              new state and its army." (47) In December, Tudjman
              acknowledged the importance of the �migr�s' role.
              "Croatians, in Canada," he told the Canadian
              Broadcasting Corporation, "have helped a great deal in
              the establishment of a democratic Croatia." (48)

              In addition to cash, overseas Croatians have sent arms.
              Croatian and Bosnian Croatians claim that Bosnian Serbs
              possess large amounts of modern weapons and
              munitions. While the charge is true, it must be
              remembered that the arms factories in Bosnia are still
              producing, and the Yugoslav army left behind large
              stocks of weapons which were grabbed up by all sides in
              the conflict. Furthermore, in addition to their own
              supplies, the breakaway states are covertly receiving
              large amounts of arms from the Western powers despite
              the U.N. arms embargo. (49) Recently, overseas
              Croatians established an extensive network designed to
              evade the Untied States embargo on arms shipments to
              former Yugoslavia. (50) Documents indicate that
              weapons were moving to Croatia from Austria and
              Slovenia or Hungary, and senior U.N. officials
              acknowledge that "the Croatians are armed to the
              teeth." (51)

              The network existed well before Croatia declared
              independence. More than a year ago, a U.S. Customs
              official blocked a large, illegal shipment of weapons from
              Croatian activists to Yugoslavia. It included $12 million
              worth Stinger and Red Eye missiles, as well as
              thousands of M-16 assault rifles. The arms smugglers, a
              clandestine military organization known as OTPOR, had
              an alternative plan to ship weapons through a German
              front company. (52)

              OTPOR members had also requested Nigeria to supply
              end-user certificates for large quantities of weapons,
              including low-altitude surface-to-air missiles, armored
              Czech Tatra trucks mounted with launching frames for
              122 mm rockets, and 5,000 122 mm rockets. (53)

              It was reported in England last year, that there was "a
              booming trade in arms [supplied by]...Austria, Belgium
              and Hungary" to the Serbian and Croatian militias. (54)
              As none of the source countries named, with the
              possible exception of Belgium, was likely to be shipping
              arms to Serbian irregulars, the supplies were most likely
              going to Croatia.

              Political contributions and arms shipments on such a
              scale cannot take place without the knowledge of
              intelligence agencies, in this case, especially those of
              Germany, Austria, Canada, and the U.S. In countries
              actively seeking to destabilize Yugoslavia, these
              services are likely to have had official sanction to assist
              the transfers. There have also been repeated reports of
              foreigners--including British, U.S., and German nationals
              with extensive military experience--serving in the
              Croatian forces or militia. (55) Reportedly, some are
              absent-without-leave from active military units. In what
              amounts to an officially sanctioned policy of covert
              military assistance, active-duty soldiers (indulging some
              form the U.S.) sometimes leave undated letters of
              resignation with a commander and take official leave to
              serve as "mercenaries" in foreign wars.

              The movement of weapons in the region appears to be
              massive. German customs officials claim they have
              evidence of large military convoys of up to 1,500 military
              vehicles moving out of Eastern Germany bound for
              Croatia. In April 1992, east German military vehicles
              bound for Croatia were seized by Customs officials on
              the German-Austrian border. (56) Recently, there have
              been reports that Croatia has used German Leopard
              tanks and MIG-21 fighters in its invasion of
              Bosnia-Herzegovina. Although Germany denies these
              reports, (57) reliable Yugoslav sources state that a
              number of Leopard tanks were put out of commission by
              Serb irregulars at Kupres in Bosnia in May 1992. These
              sources also claim that a number of MIG fighters from
              the former GDR have been shot down over Bosnia.

              The use of MIGs has been confirmed by senior United
              Nations officials and supported by Croatia's air force
              commander. In February, he boasted that "within a
              month...[Croatia] would take delivery of fighter aircraft
              from unnamed European governments." (58)

              The Bosnian government has also reportedly received
              arms and troops from abroad, notably from Islamic
              countries seeking to assist fellow Muslims. The London
              Guardian has reported major arms shipments from
              Turkey, Iran, and Pakistan. A Bosnian government
              adviser admitted in Zagreb at the the end of August
              that Bosnian officials had traveled to the Croatian coast
              to take delivery of arms shipments from the Middle East.
              (59)

              Islamic countries have also sent trainers and
              "volunteers" to assist and fight with Muslim forces in
              Bosnia and have established secret training camps
              there. The soldiers came from Saudi Arabia, Turkey,
              Pakistan, Sudan, Afghanistan, Iran, and Syria. (60)

              Again, such large-scale activity cannot easily be
              organized by private individuals or organizations. The
              facts therefore strongly suggest the extensive
              involvement of foreign intelligence agencies and military
              personnel in what is still being called a purely internal
              conflict.

              During the past 18 months, the Western media have
              steadily hammered home the idea that Yugoslavia is in
              the middle of a civil war brought about the "aggressor"
              Serbia's attempt to "conquer" Slovenia and parts of
              Croatia and Bosnia-Herzegovina. While the internal
              factors of nationalism and ethnic strife are real, they are
              not sufficient to explain the bloody dynamic. External
              forces must also be considered. This more complex
              analysis does not deny that Yugoslavs are killing another
              and dying, nor does it dismiss the suffering of the
              hundreds of thousands who have been affected. Rather
              it recognizes the clear indications that the secessions of
              Croatia and Slovenia--which were crucial in the
              development of the Yugoslav conflict--were prepared
              with the assistance of foreign power. These powers also
              sustained and extended the conflict by sending arms,
              money, and personnel to Croatia and, more recently, to
              Bosnia-Herzegovina.

              During the 1980s, the West followed a dual policy. First,
              it pushed Yugoslavia toward a gradual political and
              economic transformation. The struggle to force changes
              in Yugoslavia was driven less by tensions between
              socialism and capitalism than by those between
              independence and recolonizaiton. In a central Europe
              dominated by Germany, the policies urged by the West
              will lead to de-industrialization and dependence as they
              have already in Czechoslovakia, Hungary, and Poland.

              The other edge of the West's policy sword was the
              promotion of separatism in the northern republics. When
              Yugoslavia balked at "reforms" that had exacerbated
              economic conditions and ethnic strife, some Western
              governments turned up the pressure. Germany,
              strengthened by reunification and expanding its
              influence throughout Europe, was impatient with
              Yugoslavia. Its push for quick recognition of Slovenia
              and Croatia set off a violent chain reaction. The U.S.
              and other nations faced a fait accompli and accepted
              Germany's demands that the west support German
              policies. Nonetheless, they saw Germany's strategy as a
              useful way to ensure that Yugoslavia carry out the
              political and economic changes they wanted.

              After World War II, the Yugoslav people struggled to
              achieve independence and a decent standard of living.
              The war in former Yugoslavia has shattered the nation
              and its many peoples. It is an unnecessary tragedy
              which can only be stopped if its real causes are
              understood.

              Footnotes

              1. See Sean Gervasi, "The Destabilization of the Soviet
              Union," CovertAction, Number 35 (Fall 1990) and Sean
              Gervasi, "Western Intervention in the USSR,"
              CovertAction, Number 39 (Winter 1991-92).

              2. Jeane Kirkpatrick, "The Reagan Doctrine and U.S.
              Foreign Policy," The Heritage Foundation, Washington,
              D.C., 1985, p. 5.

              3. National Security Decision Directive 54, "United
              States Policy Toward Eastern Europe," SECRET, the
              White House, Washington, September 2, 1982.

              4. National Security Decision Directive 133, "United
              States Policy Toward Yugoslavia," SECRET SENSITIVE,
              the White House, Washington, March 14, 1984. The
              SECRET SENSITIVE classification indicates that a
              significant amount of the information was based on
              intercepted communications or revealed the existence of
              confidential relationships with Yugoslav citizens or
              organizations.

              5. NSDD 54, p. 1.

              6. NSDD 133, p. 1.

              7. NSDD 54, pp. 3-4.

              8. Predrag Simic, "Yugoslavia: Origins of the Crisis,"
              Southeastern European Yearbook 1991, Hellenic
              Foundation for Defense and Foreign Policy, 1992, p. 109.

              9. Ibid, p. 120.

              10. Ibid., p. 109.

              11. "Eastern Europe and the USSR," Economist
              Intelligence Unit, London, June 1990, p. 212.

              12. Ibid, pp. 109-10.

              13. See Peter Gowan, "Old Medicine in New Bottles:
              Western Policy Toward East Central Europe," World
              Policy Journal, Winter 1991-92, p. 4.

              14. Ibid., pp. 1-33.

              15. Ibid., p. 5.

              16. Ibid., p. 1.

              17. Academics and bureaucrats concerned with
              developments in the former Socialist bloc use this term
              to describe fundamental political change. In practice, it
              refers to the capitalist transformation of Communist
              societies.

              18. Facts on File, January 27, 1989, p. 57.

              19. Misha Glenny, "The Massacre of Yugoslavia," New
              York Review of Books, January 30, 1992, p. 34.

              20. "Yugoslav Premier Seeks U.S. Aid," New York Times,
              October 14, 1989.

              21. Facts on File, December 31, 1989, p. 985.

              22. Facts on File, April 20, 1990, p. 291.

              23. Facts on File, March 21, 1991, p. 197.

              24. Jens Reuter, "Yugoslavia's Role in Changing Europe,"
              in D. Muller et al., eds., Veranderungen in
              Europa--Vereinigung Deutchlands: Perspektiven der 90er
              Jahre, Institute of International Politics and Economics,
              Belgrade, 1991, pp. 115-16. Cited in Simic, op. cit.

              25. Marc Fisher, "Eastern Europe Swept by German
              Influence," Washington Post, February 16, 1992.

              26. Ibid.

              27. Ibid.

              28. Ibid.

              29. Lanxin Xiang, "Is Germany in the West or in Central
              Europe?", Orbis, Summer 1992, p. 422.

              30. Some 600,000 Serbs and 70,000 Jews and Gypsies
              died in camps run by the Croatian fascist regime. See
              Jonathan Steinberg, The Roman Catholic Church and
              Genocide in Croatia, 1941-1945, unpublished, Trinity
              Hall, Cambridge, U.K.

              31. Argyrios Pisiotis, "Peace Prospects for Yugoslavia,"
              The Fletcher Forum of World Affairs, Summer 1992, p.
              97, quoting from an articles by Djilas.

              32. Predrag Simic, Chronology of the Yugoslav Crisis,
              January 1990 - May 1992, Institute of International
              Politics and Economics, Belgrade, 1992, p. 1.

              33. Facts on File, May 9, 1991, p. 342.

              34. Ibid.

              35. Branislava Alendar, European Community and the
              Yugoslav Crisis, Institute of International Politics and
              Economics, Belgrade, 1992, p. 8.

              36. Facts on File, July 4, 1991, p. 489.

              37. Ibid.

              38. Alendar, op. cit. p. 10.

              39. John Newhouse, "The Diplomatic Round," The New
              Yorker, August 24, 1992, p. 64.

              40. See Marc Fisher, "Germany's Role Stirs Some
              Concern in the U.S.," Washington Post, January 23,
              1992. The decision by Germany to raise interest rates
              also caused concern, as did Kohl's reneging on this
              promise to produce a compromise on agricultural
              supports in the GATT talks.

              41. Ibid.

              42. Ibid.

              43. There have been three wars: 1) the war in Slovenia
              between the YNA and Sloven territorial forces (very
              brief); 2) the war in Croatia between Croatian military
              forces and Serb irregulars (many of them local
              inhabitants); 3) the war in Bosnia between Croatian
              forces, Bosnian and Croat irregulars and Bosnian
              Muslims, on the one hand, and Bosnian Serb irregulars,
              on the other.

              44. Hitler characterized the Croats in the wartime
              puppet state as "genuine converts national Socialism."
              (H.R. Trevor-Roper, ed., Hitler's Table Talk, 1941-1944
              (London: Weidenfiled & Nicholson, 1973), p 95.

              45. Robert Toth, "�migr�s Fuel Old Hatreds," Los Angeles
              Times, February 19, 1992.

              46. Ibid.

              47. Ibid.

              48. Ibid.

              49. See, for example, International Defense Reports,
              Army Quarterly and Defense Journal (London), July 1991,
              p. 363.

              50. Christopher Bellamy, "Croatia Built Web of Contacts
              to Evade Weapons Embargo," The Independent
              (London), October 10, 1992.

              51. Ibid.

              52. Edward Lucas, "U.S. Sting Uncovers Croatian Arms
              Deal," The Independent (London), August 14, 1991.

              53. Bellamy, op. cit.

              54. Army Quarterly and Defense Journal, op. cit.

              55. "German magazine delves deep among the killers,"
              Searchlight (London), November 1992, p. 23; and Michel
              Faci, "National Socialists Fight in Croatia," The New
              Order (Lincoln, Nebraska), January-February 1993, p. 1.

              56. Christopher Bellamy, op. cit.

              57. Anna Tomforde, "Germany: Government Officials
              Deny Croatia Is Using Their Tanks," Guardian (London),
              August 5, 1992.

              58. Blaine Harden, "Croatia Acquiring Warplanes from
              European Countries, Air Force Chief Says," Washington
              Post, February 11, 1992.

              59. Blaine Harden, "Bosnia: Middle East Muslims Send
              Charity and Weapons," Guardian (London), August 28,
              1992.

              60. "Help from Holy Warriors," Newsweek, October 5,
              1992, pp. 52-53.


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