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SECRET and Yugoslavia through stronger economic, political and cultural ties. Friendly relations will continue to be cultivated with Poland, Czechoslovakia, France and, in particular, with Bulgaria. Improved relations will be sought with "the other Allies", but Albania will resist any territorial encroachments by Greece. In practical terms this means that: (a) politically, Albania seeks to strengthen its relations with nations having Communist governments ( or large Communist representation in the government), and to participate in inter- national conferences on an equal footing with other nations, thereby making its maximum contribution to the Soviet-dominated Balkan bloc; and (b) eco- nomically, Albania seeks the integration of the national economy with that of Yugoslavia and Eastern Europe as an alternative to former dependence on Italy. 2. Significant Relations with Other Countries Albania's emergence as a pawn of Yugoslavia and the USSR has wrought pro- found changes in the temper of its foreign policy. Aware of the strength of its backing and anxious to pose before the people as a vigorous supporter of Albania's interests in the world, the Hoxha regime has pursued a policy far more bellicose and defiant than the size of the country would justify. Hoxha, in his zeal to please, may even have exceeded his instructions by arousing Western opposition to Albania's bid for membership in the UN. Thus, the Hoxha regime, prompted by the urge to compensate for the relative insignifi- cance of the country, can be expected to play with vigor and determination its role in the USSR's master plan in the Balkans. Albania's relations with other countries must be viewed in the light of how it can best serve the USSR, both internationally and in Eastern Europe. Paramount short-range Soviet objectives for Albania include (1) cooperation with Yugoslavia, primarily as the most effective and least expensive means of controlling the country; (2) denial to the West of a toe-hold on the Balkans; (3) assistance to the Greek Communists; and (4) membership in the UN in order to increase the voting strength of the Soviet bloc. Albania's ultimate posi- tion in the Soviet hegemony depends primarily upon whether and how the USSR implements its plans for a South Slav or Balkan Federation, but the effect will be the same. a. Balkan Federation In the event of such a federation, Albania will either be included as a Federated Republic of Yugoslavia or as a separate member on a par with Yugoslavia, Bulgaria, and possibly Macedonia. A decisive factor will be the USSR's attitude toward the UN when such a federation is brought into being-- Albania's chances of maintaining nominal independence being in direct ratio to Soviet intentions and capabilities to increase the voting strength of the USSR in the UN. In any case, formation of a Balkan Federation will only create a substitute instrument for continuing Soviet domination of Albania. III-2 CRET

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    "ocrText": "SECRET\nand Yugoslavia through stronger economic, political and\ncultural ties. Friendly relations will continue to be\ncultivated with Poland, Czechoslovakia, France and, in\nparticular, with Bulgaria. Improved relations will be\nsought with \"the other Allies\", but Albania will resist\nany territorial encroachments by Greece.\nIn practical terms this means that: (a) politically, Albania seeks to\nstrengthen its relations with nations having Communist governments ( or large\nCommunist representation in the government), and to participate in inter-\nnational conferences on an equal footing with other nations, thereby making\nits maximum contribution to the Soviet-dominated Balkan bloc; and (b) eco-\nnomically, Albania seeks the integration of the national economy with that\nof Yugoslavia and Eastern Europe as an alternative to former dependence on\nItaly.\n2. Significant Relations with Other Countries\nAlbania's emergence as a pawn of Yugoslavia and the USSR has wrought pro-\nfound changes in the temper of its foreign policy. Aware of the strength of\nits backing and anxious to pose before the people as a vigorous supporter of\nAlbania's interests in the world, the Hoxha regime has pursued a policy far\nmore bellicose and defiant than the size of the country would justify. Hoxha,\nin his zeal to please, may even have exceeded his instructions by arousing\nWestern opposition to Albania's bid for membership in the UN. Thus, the\nHoxha regime, prompted by the urge to compensate for the relative insignifi-\ncance of the country, can be expected to play with vigor and determination its\nrole in the USSR's master plan in the Balkans.\nAlbania's relations with other countries must be viewed in the light of\nhow it can best serve the USSR, both internationally and in Eastern Europe.\nParamount short-range Soviet objectives for Albania include (1) cooperation\nwith Yugoslavia, primarily as the most effective and least expensive means of\ncontrolling the country; (2) denial to the West of a toe-hold on the Balkans;\n(3) assistance to the Greek Communists; and (4) membership in the UN in order\nto increase the voting strength of the Soviet bloc. Albania's ultimate posi-\ntion in the Soviet hegemony depends primarily upon whether and how the USSR\nimplements its plans for a South Slav or Balkan Federation, but the effect\nwill be the same.\na. Balkan Federation\nIn the event of such a federation, Albania will either be included as\na Federated Republic of Yugoslavia or as a separate member on a par with\nYugoslavia, Bulgaria, and possibly Macedonia. A decisive factor will be the\nUSSR's attitude toward the UN when such a federation is brought into being--\nAlbania's chances of maintaining nominal independence being in direct ratio to\nSoviet intentions and capabilities to increase the voting strength of the USSR\nin the UN. In any case, formation of a Balkan Federation will only create a\nsubstitute instrument for continuing Soviet domination of Albania.\nIII-2\nCRET"
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