Memorandum from Lieutenant General Hoyt Vandenberg to President Harry S. Truman

CENTRAL INTELLIGENCE GROUP NEW WAR DEPARTMENT BUILDING 21st and VIRGINIA AVENUE, N. W. WALE WASHINGTON, D. C. 16 January 1947 MEMORANDUM FOR THE HR ESIDENT Two recent developments appear to be steps toward the creation of a Balkan federation under Soviet domination. They are (1) the conclusion of a Yugoslav-Albanian economic treaty which virtually completes the integration of Albania with the Yugoslav federation; and (2) a Bulgarian Cabinet proposal that Bul garian Macedonia be united with Yugoslav Macedonia, a step toward the formation of a composite Macedonian state in a Balkan federal system. Ever since Tito, in 1943, adopted a nominally federal political structure for Yugoslavia there has been speculation regarding the eventual development of a more inclusive Balkan federation dominated by the U.S.S.R. The Soviet Union itself afforded an apt demonstra- tion of how the federal principle could be employed to gratify the aspirations of various nationalities without sacrifice of effective central control maintained through the mechanism of a universally dominant Communist Party. If, by this device, the cleavages which had divided Yugoslavia (e.g., that between the Serbs and the Croats) could be resolved, the same solution might be applied to long-stand- ing antagonisms between Serbs and Albanians, Serbs and Bulgars. In particular the problem of Macedonia, an historic cause of conflict between Serbia, Bulgaria, and Greece, might be removed by the crea- tion of a united and separate Macedonia as a unit in the federal system. The development of an effective, all-inclusive Balkan union under Russian control would fulfil an often frustrated ambition of the Tsars, consolidate the Soviet domination of Southeastern Europe, and provide a secure base for penetration of the eastern Mediterranean. The political structure of Albania has already been assimilated to that of a state in the Yugoslav federation. Effective control is vested in Premier Hoxha, who, as Secretary of the Central Committee of the Albanian Communist Party, is responsible to the General Secretary of the Yugoslav Communist Party. The Albanian Army, trained and equipped by Yugoslavia, is virtually a part of the Yugoslav military establishment. To these political and military ties has now been added an economic treaty which integrates the economy of Albania with that of Yugoslavia. The Bank of Albania and all major industries in that country are to be administered as joint Yugoslav- Albanian companies. Yugoslavia will provide funds, material, and DECLASSIFIED SECRET GTM, yan are Zime. 9.25.41 E.D. 12065 Sec 3-402 State Dept. Guideline, June 12, 1979 PROJECT NLT 79-21 By NLT- HC NARS, Date 10-22-11