OPENS DOOR

Foreign investment is entering Yugoslavia at a rapid rate follówing the government's decision to extend insurance cover to businessmen investing there.

The American decision follows similar action by the West German government, which decided in June 1970 to underwrite non-commercial risks on investments in Yugoslavia.

Holland, • Belgium, France and Italy have already taken similar steps, giving their own capitalists a guarantee against expropriation of their investments in Yugoslavia.

Their Yugoslav holdings are also guaranteed under the recent amendments to the constitution. Amendment 22 reads: "The right of an alien party to the resources that he has invested in an organizatior of associated labour in the country cannot be diminished by law or by any other act upon having entered into the contract.' This was designed to close loopholes 1n the original law of 1967 which first opened Yugoslavia to foreign investment. Many businessmen were at first reluctant to take advantage of the new conditions because they feared expropriation of their capital.

According to the ultramerce foreign 'the system of internal conservative 'Journal of Comand guarantees... indubitably produces a favourable climate for investments in Yugoslavia's industry'.

And over the past few years, more and more foreign firms have been moving in. In 1968, five capital investment contracts were entered into bh Yugoslav enterprises foreign firms. Since January this year there have been more than 45.

According to figures from the Yugoslav Ministry Industry, 462 agreements on long-term co-operation between Yugoslav firms and foreign capitalists were registered between 1968 and 1971.

The aggregate foreign invest. ment amounts more than 1.1m dinars-or 4.4m dinars when the share invested in the enterprises by Yugoslav partners is counted in.

Agreements signed in the past few weeks include one between the New York firm, Bieler National Industries and the Sevoino copper rolling mills concerning the establishment of two mixed companies both of which will have great freedom to operate inside Yugoslavia.

Similarly, a French consortium recently entered joint deal to provide credit and finance for nickel mining at Kavadarci, Macedonia. Soviet companies also participate in these arrangementsone Moscow firm has concluded a deal with Energoinvest of Sarajevo for the construction of second aluminium plant in East Bosnia at a total cost of 4,000m dinars.

Most of the foreign investment goes into the metal goods; electrical engineering Above: Yugoslavia's Marshall TI More and more foreign Invaatn busine abol goes up in Bell BLIN BUNDESREPL and electronics industries.

In the first two years of th foreign investment scheme enterprises in the metal-good industries signed 151 agree ments with foreign firms, whil electrical and electronics firm signed 65.

The penetration of foreig capital into Yugoslavia i taking on an extremely wid scope. It means that a con siderable section of th country's industry is operatin;