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the same work in different industries remuneration varies in the pro-portion 1:2. A survey in Belgrade showed that personal incomes in the rangę of 1:4 are obtained for the same job in various enterprises. Whatever he does, a worker or engineer in a tobacco enterprise will have half of the personal income of his colleague in a petroleum re-finery, not to mention banks, insurance, re-export enterprises and similar monopolistic organizations. In that way self-managed auton-omy is liquidated; work collectiyes become victims of conditions of economic activity which they cannot control. Massive exploitation of the work of some collectiyes on the part of other collectiyes occurs. To avoid that exploitation, it is necessary to equalize the conditions of economic actiyity by:

(a)    reducing admimstrative limitations or interventions, which are by the naturę of things arbitrary, to a minimum, ensuring the maxi-mum mobility of economic resources on a truły free market;

(b)    making impossible the appropriation of successiye incomes by an institutional system and economic instruments. This is a matter of a very complicated problem the thorough elaboration of which we cannot enter into in the framework of this discussion. It is sufficient to mention that our economic theory and analysis are today adequatc to prepare a successful solution to the cited problems.

(c)    preventing the widening of the dispersion in distribution of personal incomes which occurs, as Professor Bajt’s research has shown, especially in the recession phases of cycles.

7. The whole complex of foreign trade demands reconsideration. This is still another weak point of the system:

(a)    A self-managed market economy requires liberalization of im-ports and convertibility of the dinar abroad.

(b)    Convertibility requires the liquidation of administrative distribution of foreign exhange.

(c)    To achieye that it is necessary to put under control the move-ments which influence the balance of payments deficit and to increase foreign exchange reserves.

(d)    For that it is necessary to stimulate exports and to control im-ports.

(e)    For (d) to occur by economic rather than administrative means, it is necessary to establish a foreign exchange market.

(f)    For that stable internal prices and point 5 are necessary.

(g)    Stable prices are not possible if the foreign trade regulations bring individual producers into very different positions on the market.

The methods of foreign trade direction require significantly grea‘cr flexibility, subtility and precision. Although the tariff system can be madę morę elastic, it should be had in view that the basie objective of customs duties is protection of domestic production by differentia-tion of prices, and that tarif policy cannot (a) regulate the volume of imports, (b) ensure the desired structure of imports nor (c) accomplish regional orientation. These objectives are solved partially by exchange ratę ingredients. The Capital market plays a certain role. Export sti-mulation must be stronger and structurally long-term, and particularly

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