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jj The Yugoslav railways are almost entirely owned and operated by the
State (only 3 per cent of all the railways on Yugoslav territory are operated by private
companies). All the construction work on the new lines is carried out by order ol
the central authorities—the Ministry of Communications and on behalf of that
MmlThe'new lines are, for the most part, built by private firms in accordance with
existing laws and under the control of the Ministry of Communications. The private
firms are awarded the contract after public tender. . ,
The work connected with the improvement of existing lines is carried out under
the system of direct administration. The material required for such improvement is,
however, also purchased after public tender.
HI. — The cost of building new lines is partly covered by extraordinary credits
entered in the State budget (in some cases a small part of such expenditure is covered
by ordinary budget appropriations) and partly by means of external or internal
loans.
XV. — The material required for the work mentioned under No. I is purchased in
Yugoslavia in so far as national industries exist which are capable of supplying it.
The labour is recruited from among Yugoslav workmen and artisans. The total cost
also includes social expenditure (contributions to sickness funds, workmen s insurance
funds etc.). This social expenditure is paid in accordance with existing laws i.g.,
half is paid by the employer (the State) and half by the workmen themselves. Part of
the material (rails, points, etc.) and special installations (telephones, signallmg-
blocks, etc.) are purchased abroad.
V. — The Ministry of Communications considers that this work has brought about
9. decrease in unemployment.
ROYAL MINISTRY OF MINES AND FORESTS.
State Forests Development Section.
The information obtained by the State Forests Development Section shows that
the public works under State administration have been financed, not by means of
foreign loans, but by regular appropriations in the ordinary budget.
It has for a long time been recognised in Yugoslavia that the Administration of
forests required improving from all points of view ; but, unfortunately, it has not been
possible to carry out all the necessary works and undertakings, owing to inadequate
financial resources. Only during the past five years have larger budgetary
appropriations been made for the various forestry institutions.
When the necessary measures—which, thanks to this fact, are now in progress-
have actually been completed, there will be every prospect that the programme
initiated will be carried to a successful conclusion.
Thus, in the first place, the roads and railways required by the forestry industry
have been constructed. They have greatly facilitated clearing operations, especially
on the territory of the State Forestry Directorates of Zagreb, Susak and Vinkovci.
A road has been constructed on the territory of the Zagreb Directorate to facilitate
the rational development of the Kalnik State Forest. The cost of constructing this
road is estimated in round figures at 190,000 dinars.

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