Abstract: This paper explores Yugoslav-Albanian economic relations in the interwar years (1918–1941), utilizing Yugoslav archival sources, relevant literature, and contemporary press reports. Particular emphasis is placed on cross-border trade and the complex issue of dual-ownership properties. The regulation of these matters was intrinsically tied to the signing of the 1926 Yugoslav-Albanian trade agreement and its subsequent ratification in 1929. However, the contract concerning cross-border trade, as part of this agreement, was subject to prolonged negotiations, and it was finally signed in March 1934 and took effect in February 1935. The longstanding efforts to establish cooperation between Yugoslavia and Albania were disrupted by the Italian occupation of Albania in 1939. However, the agreement on border traffic remained in force as "provisional".

Keywords: Albania, economy, Italy, dual-ownership properties, Yugoslav-Albanian relations, Kingdom of Yugoslavia, Kingdom of Serbs, Croats, and Slovenes, cross-border trade

Summary

The Yugoslav and Albanian states had two types of trade, maritime trade via the sea and overland trade across the land border. The trade agreement between these two states was signed in 1926, but, due to the political situation, it only came into force in 1929. Therefore, it was necessary to remove the difficulties of trade with Albania, and especially border traffic, as soon as possible. It was very important that the regime in the border zone be associated with fewer formalities, so that the Yugoslav border towns would become trading centers for the population of Albania. A Yugoslav-Albanian delegation was appointed, which determined that there were controversial points in resolving the issue of border traffic. Also, the issue of dual owners and their properties needed to be resolved as soon as possible because the Albanian authorities were causing trouble for the Yugoslav dual owners. In March 1934, the Protocol on Albanian-Yugoslav Border Traffic was initialed at the Ministry of Foreign Affairs of the Kingdom of Yugoslavia. This Protocol regulated the details of the crossing of the inhabitants of the Albanian border zone for the purpose of selling their products in the markets of the Yugoslav zone, i.e. 15 km from the border line and for the purpose of purchasing the things they needed. It also regulated the issue of the use of dual-owner properties 15 km from the border line. The Supplementary Agreement to Annex B (Border Traffic in Regard to the Skadar Market) of May 5, 1934 and the Protocol on the Implementation of this Agreement of May 8, 1934, regulated in detail the border traffic for the Skadar zone. Finally, on February 7, 1935, the Protocol entered into force and the border traffic between Yugoslavia and Albania was opened. Border traffic was to the Yugoslav advantage. After the occupation of Albania by Italy, the Albanian state no longer controlled its borders. The Yugoslav-Albanian treaties lost their validity after April 7, 1939, with only the Agreement on Border Traffic remaining in effect as “provisional”.