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SECRET In addition to these minerals, smaller quantities of gold and manganese are known to exist, although it is not believed that they are being currently extracted in any appreciable quantities. Exploitation of these resources to a point where they will become of practical strategic or economic value to Yugoslavia or the USSR is still a goal attainable only in the long-range future. With the exception of asphalt, and coal to a lesser degree, Albania itself cannot use these materials until domestic refining and industrial facilities are developed. Under present circumstances most of Albania's mineral resources are being used only as items for export. The extent of even such ex- ports, however, is limited by a lack of railroads, machinery, skilled labor, and capital. Prevented from turning to the West, Albania must rely upon Yugoslavia and the USSR for assistance in extracting these minerals. Since Yugoslavia also has substantial undeveloped deposits of iron, chrome, copper, and coal, it is unlikely to divert its short supply of capital, machinery and technicians to Albania. Yugoslav partici- pation in joint companies established by the Yugoslav-Albanian eco- ncmic agreement will, therefore, provide little material assistance to Albania, which is in the frustrated position of being unable to tap its major source of wealth-- and without tapping it is in turn unable to afford those facilities (transportation, skilled labor, machinery, etc. ) without which these resources cannot in turn be developed. Meanwhile, it is unlikely that Yugoslavia or the USSR will allow Albania to open the door to Western capital. Although not immediately available to them, these countries do not intend that Albania's resources become available to their potential enemies. (3) Other Resources An abundance of water power and rather extensive forests con- stitute Albania's only remaining major resources. The Hoxha regime is making every effort to speed electrification of the country as part of its program to raise the standard of living. At present only one hydro- electric plant (at Korce) is in operation, and the country's limited supply of electricity is generated by steam plants which are a drain upon limited coal and oil supplies. Development of Albania's timber production from some 2,000,000 acres of good quality coniferous and hard types again has been retarded by the lack of communications facilities, machinery and capital. In fact, these factors forced Albania prior to the war to import wood and wood products. As in the case of other Albanian resources, little help can be expected from Yugoslavia since development of that country's ample timber resources also is retarded by the same factors which obtain in Albania. II-5 SECRE

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Page context
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    "ocrText": "SECRET\nIn addition to these minerals, smaller quantities of gold and\nmanganese are known to exist, although it is not believed that they\nare being currently extracted in any appreciable quantities.\nExploitation of these resources to a point where they will\nbecome of practical strategic or economic value to Yugoslavia or the\nUSSR is still a goal attainable only in the long-range future. With\nthe exception of asphalt, and coal to a lesser degree, Albania itself\ncannot use these materials until domestic refining and industrial\nfacilities are developed.\nUnder present circumstances most of Albania's mineral resources\nare being used only as items for export. The extent of even such ex-\nports, however, is limited by a lack of railroads, machinery, skilled\nlabor, and capital.\nPrevented from turning to the West, Albania must rely upon\nYugoslavia and the USSR for assistance in extracting these minerals.\nSince Yugoslavia also has substantial undeveloped deposits of iron,\nchrome, copper, and coal, it is unlikely to divert its short supply\nof capital, machinery and technicians to Albania. Yugoslav partici-\npation in joint companies established by the Yugoslav-Albanian eco-\nncmic agreement will, therefore, provide little material assistance\nto Albania, which is in the frustrated position of being unable to\ntap its major source of wealth-- and without tapping it is in turn\nunable to afford those facilities (transportation, skilled labor,\nmachinery, etc. ) without which these resources cannot in turn be\ndeveloped. Meanwhile, it is unlikely that Yugoslavia or the USSR\nwill allow Albania to open the door to Western capital. Although not\nimmediately available to them, these countries do not intend that\nAlbania's resources become available to their potential enemies.\n(3) Other Resources\nAn abundance of water power and rather extensive forests con-\nstitute Albania's only remaining major resources. The Hoxha regime is\nmaking every effort to speed electrification of the country as part of\nits program to raise the standard of living. At present only one hydro-\nelectric plant (at Korce) is in operation, and the country's limited\nsupply of electricity is generated by steam plants which are a drain\nupon limited coal and oil supplies.\nDevelopment of Albania's timber production from some 2,000,000\nacres of good quality coniferous and hard types again has been retarded\nby the lack of communications facilities, machinery and capital. In\nfact, these factors forced Albania prior to the war to import wood and\nwood products. As in the case of other Albanian resources, little help\ncan be expected from Yugoslavia since development of that country's\nample timber resources also is retarded by the same factors which obtain\nin Albania.\nII-5\nSECRE"
}