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BULGARIA AND YUGOSLAVIA BELGRADE Yugoslavia July 11 Belief that Bulgaria may be drawing closer to Ger ¬ many was partially dispelled today when Yugoslavia and Bulgaria announced by agreement that a policy of independence and neutrality best answers the interests of Bulgaria and Yugoslavia and of peace in the Balkans The understanding was reached in a conference at BJed between Premier George Kiosseivanoff of Bulgaria and Re ¬ gent Prince Paul of Yugoslavia