298 The Presidential Years
the bourgeoisie, which had started to reappear as a social stratum after the
repressions of the postwar years The reason for this was the economic stagna-
tion at the end of the decade, which the authorities tried to overcome with loans
that resulted in massive foreign debts, triggering inflation. This temporarily cre-
ated the illusion of a higher standard of living, but inevi tably led the country into
chaos when the bubble burst, the loans ran out, and the debts had to be repaid.^178
The situation was so tense that it was discussed at the Second Plenum, on 18
and 19 November 1959, in contradiction with its optimistic assertions. On that
occasion Tito openly dealt with the problem regarding aid to the republics and
branded every opposition to this aid as “localism.” He also more or less plainly
denounced the autonomist tendencies of the Croatian and Slovenian leaders.
Even more explicit was Ranković, who stressed on 1 December at the Serb
industrial center Kraljevo that it was urgent to enhance the underdeveloped
areas, not just for economic, but also for political reasons: “This development is
the first prerequisite for the unity and brotherhood of our people, because only
in this way can a perfect political and material equality be possible.”^179
According to rumors circulating in Belgrade at that time, relations between
Tito and Kardelj were increasingly tense because of foreign policy, but even
more so because of internal issues. The older and more dogmatic cadres fre-
quently complained that they were fed up with Kardelj’s “show of democ-
r a c y. ”^180 In the background of this malaise were the economic and national
interests of the Slovenes, who felt uncomfortable in Yugoslavia because of their
central European heritage, which was so different from the heritage of those
who lived in areas ruled for centuries by Turks. In November, at the Second
Plenum, Tito spoke mostly to the Slovenians when he observed that “national
chau vinism” was present even within that group. He had Kardelj particularly
in mind when he said: “Nobody here has the right to impose his opinion upon
the majority. And if this majority decides something, it should be carried out.
If someone is not ready to do this, he cannot be a member of the Central
Committee.”^181
The object of discussion was the railway line connecting Belgrade to Bar,
on the Montenegrin coast. The Serbians and Montenegrins believed the line
would boost the economic development of their republics but it was obstructed
by the Slovenes because of the enormous costs involved, which would be paid
mostly by them.^182 As the CIA observed, a split started to appear in the LCY
between “liberal” and “conservative” forces. The “liberals” wanted the democra-
tization of the party, the spread of self-management, administrative decentral-
ization on both political and economic levels, the affirmation of confederal
principles, the strengthening of the autonomy of each republic, and the im-
provement of relations with the West. The “conservatives” were opposed to the