The Case of Trepça Mines (Kosovo) in Yugoslav-British Relations (1944-1948)

Abstract

The purpose of this research paper is to analyze British policy in the Balkans at the end of the Second World War, focusing on the diplomatic dispute with Yugoslavia over the Trepça mining complex in Kosovo. It investigates Britain’s efforts to safeguard strategic economic interests in Southeastern Europe, curb Soviet regional influence, and oppose the proposed Yugoslav-Bulgarian federation, which London viewed as a potential extension of Soviet hegemony in the Balkans.

The scientific novelty consists in its contribution to the underexplored field of British economic diplomacy in the post-war Balkans. Drawing on British diplomatic sources from 1944 to 1948, it shifts attention from dominant geopolitical narratives to the strategic role of British capital. Particular focus is given to the London-based Selection Trust, which by the late interwar period controlled approximately 80% of British mining investments in Yugoslavia, most notably Trepça.

Conclusions. The paper explores how efforts to protect these assets became entangled with broader regional diplomacy. Following the war, British attempts to regain control of Trepça were rejected by Yugoslavia’s new authorities, prompting a shift from ownership claims to compensation demands. Although Tito initially offered assurances regarding the protection of British property, nationalization policies rendered restoration unfeasible. Bilateral negotiations culminated in a 1948 agreement under which Yugoslavia paid £4.5 million in compensation to British investors. Simultaneously, British policymakers regarded the Balkan federation project as a Soviet-aligned threat to Western influence, particularly in Greece, and sought to delay its implementation within the broader context of early Cold War rivalry.

British policy in the Balkans at the end of the Second World War and during the immediate post-war period reflected a calculated effort to balance geopolitical containment with the protection of key economic interests. The Balkan federation was perceived as a challenge to Western influence, particularly in the eastern Mediterranean. British diplomacy prioritized securing major investments in Yugoslavia’s industrial sector, with Trepça emerging as a site of both economic and strategic significance. Although efforts to reassert control were blocked, sustained diplomacy secured compensation. The 1948 settlement marked a pragmatic resolution of Britain’s claims. The Trepça case illustrates how resource sovereignty, foreign capital, and geopolitical rivalry shaped British-Yugoslav relations during a pivotal moment in postwar European realignment.