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Forces in Serbia and Montenegro were spared. Serbs in Croatia and<br />

Bosnia-Herzegovina began to arm themselves in 1990 and 1991.<br />

While the ypa was being reorganized, the Army was also<br />

obstructing the social and political reforms necessary for modernization,<br />

including modernization of the Army. The ypa sided with Serbia,<br />

which was unprepared to embark upon a transition to a market<br />

economy. The ypa was not interested in economic reforms because<br />

it feared a return to capitalism, a redistribution of power in favor<br />

of the republics, and the loss of its privileged status. It only paid lip<br />

service to the economic reforms pursued by the Federal Executive<br />

Council (siv). The Army had by that time considerably boosted its<br />

independence by developing a network of its own production facilities.<br />

195 Reform-oriented efforts were checked in 1985; a ypa faction<br />

accused the government of placing undeveloped republics in an<br />

inferior position by its market orientation and of pursuing a policy<br />

aimed at draining the underdeveloped regions and Serbia of their<br />

income to the benefit of Croatia and Slovenia.<br />

Partly as a result of the increased influence of the ypa, a qualitative<br />

change in Soviet-Yugoslav relations occurred during the 1980s. In<br />

1985, the Soviet Union agreed to grant a license to Yugoslavia to manufacture<br />

the latest Soviet tank—a first for a non–Warsaw Pact country.<br />

This new relationship with the ussr affected the ypa’s equipment<br />

modernization program and, in turn, strengthened pro-Soviet sentiments<br />

within the ypa command. Yet fear of Soviet intervention<br />

was still rife and the southeastern theatre saw an increase in military<br />

maneuvers. The ussr grew increasingly insistent, especially in its<br />

demands regarding a base in the Mediterranean, its obvious choice<br />

being the Bay of Kotor in Montenegro.<br />

195 This included a major military-industrial complex that aimed at both technological<br />

and economic independence in the production of weapons and equipment . In 1990,<br />

the military-inductrial sector consisted of 53 enterprises with a workforce of some<br />

80,000 and 1,000 subcontractors . The arrangement brought about a cooperative<br />

spirit as well as group interests and their safeguarding, Borba, March 5, 1990 .<br />

141<br />

ChApter 2

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