mbassadors of European countries in
Helsinki. Most important, however, was the signing of a basic treaty
that established and regulated relations between West and East Germany,
a condition set by Bulgaria before diplomatic relations could be resumed
with West Germany. The open advocacy of the Soviet Union for improved
relations with West Germany also encouraged Bulgaria to expedite the
resumption of diplomatic communications.

Other Western Countries

The mid-1960s saw party chief Zhivkov "building bridges" himself with
other Western countries. In light of Bulgaria's interest in expansion of
trade, relations with France were improved with reciprocal visits in
1966 between Zhivkov and Foreign Minister Maurice Couve de Murville.
Also in the same year, partly as a result of these negotiations, the
French car manufacturer, Renault, established an assembly plant in
Bulgaria. Simultaneous with this move was the establishment of a
diplomatic mission in Canada. Agreements were negotiated with Belgium
and Italy on cultural, technical, and economic matters. Australia also
had a share of Bulgaria's trade attention; both countries signed a
long-term trade agreement in 1972, and an agreement was reached to
establish diplomatic relations at the embassy level.

Relations with Other States

Bulgarian interest in trade with the developing countries has increased
considerably. In 1971 and 1972 the volume of trade with third world
countries exceeded 316 million leva (for value of the lev--see Glossary)
as opposed to 113.3 million leva in 1965. The Arab countries rank first
in the amount of business conducted with Bulgaria. A considerable number
of Bulgarian experts are also engaged in the construction of industrial
enterprises in various developing countries.

MEMBERSHIP IN REGIONAL AND INTERNATIONAL ORGANIZATIONS

Regional Cooperation

Military cooperation on a regional basis was secured for Bulgaria and
its allies (the Soviet Union, East Germany, Hungary, Poland, Romania,
and Czechoslovakia) in a multilateral alliance known as the Warsaw Pact.
Albania, an original member, withdrew in 1968 (see ch. 16). Signed on
May 14, 1955, in Warsaw, Poland, the pact was and remains Eastern
Europe's answer to the challenges and security arrangements of the North
Atlantic Treaty Organization (NATO). In one sense it seemed to provide
legal grounds for the Soviet Union to keep its troops in east-central
Europe as well as to secure the bala