ent have been exported almost exclusively to
communist and developing countries. In 1968, the last year for which
information was available, machinery and equipment constituted only 1.8
percent of exports to Western industrialized nations.

Imports in the 1960-70 period consisted predominantly of machinery and
equipment, fuels, raw and processed industrial materials, and raw farm
commodities. Imports of foods and industrial consumer goods were limited
to about 10 percent per year. Machinery and equipment constituted from
40 to 44 percent of imports; fuels and industrial materials accounted
for about one-third; and agricultural raw materials made up the balance.

In the 1960-70 period the country's overall trade balance was negative
each year with the exception of 1969 and 1970. The trade deficit for the
entire period amounted to 580 million leva, including 530 million leva
in the trade with noncommunist countries and 50 million leva in the
trade with communist partners. A breakdown of the trade balance by all
four trading areas was available only for the 1965-70 period. For that
period the overall trade deficit amounted to 278 million leva. Whereas
trade with communist and developing countries had positive balances of
148 million leva and 154 million leva, trade with developed Western
countries accumulated a deficit of 580 million leva. Almost all of this
deficit was incurred in the years 1965 through 1967, when government
controls over foreign trade were temporarily relaxed in an aborted
economic reform. Under the system of bilateral agreements governing
Bulgaria's trade, the surplus in the trade with communist and developing
countries cannot be used to offset the deficit with Western trading
partners.

Data bearing on the balance of payments have never been published. The
Soviet Union has granted substantial loans to Bulgaria since 1946, some
of which were used to finance imports from that country. Bulgaria, in
turn, has made some loans to developing countries to help finance its
exports. A portion of the deficit with Western trading partners may be
offset by income from the rising Western European tourist trade,
particularly with West Germany. A reputable Western source reported
Bulgaria's indebtedness to Western nations to have been US$88 million in
1971, but the basis of this estimate and the degree of its reliability
are not known.

CHAPTER 13

AGRICULTURE

In the spring of 1973 the country's politi