Slovenia to Cut Support for Federal Government : Yugoslavia: With most of the republics jockeying for secession, the federation demands financial aid. Talks are to be resumed next week.

The tiny Alpine republic of Slovenia, intent on escaping economic and political turmoil by seceding from Yugoslavia, served notice on the crumbling alliance Wednesday that it will pay only limited support to the central government until the cost of its freedom is worked out.

Federal Prime Minister Ante Markovic has threatened to resign unless all six republics pay their full shares to ensure minimal government functions during the troubled search for a peaceful settlement between those for and against the breakup of Yugoslavia.

While there was no word from Markovic, who took part in what was apparently a tense daylong meeting of the presidents of the republics, the presidents and other government leaders agreed to meet again in Sarajevo on Feb. 22, indicating some easing of the volatile stand-off.

Croatian President Franjo Tudjman announced, however, that his republic of 4.5 million--the second largest in the federation--would also declare independence if Slovenia secedes, according to the Croatian news agency HINA.

The negotiations were the fourth attempt by republic and federal leaders to pull Yugoslavia back from the brink of civil war and control the dissolution of the alliance, which now seems inevitable.

Croatia boycotted last week’s talks because of a strident anti-Croatia rally staged by rival Serbia outside the offices of the Federal Presidency, where the meetings take place.

Slovenian President Milan Kucan abandoned that meeting, protesting “impossible conditions,” and announced that Slovenia would take immediate steps to secede and would abolish all federal laws as of next Wednesday.

Kucan told reporters that this week’s session was slightly more productive, although not one of the deeply divisive issues among the republics has been resolved.

Slovenia’s representative on the eight-man Federal Presidency, Janez Drnovsek, said that republic will meet only part of its federal obligations while the terms of its independence are being worked out.

Talks aimed at determining Slovenia’s financial responsibilities to the federation it wants to leave--such as how much of Yugoslavia’s $16-billion foreign debt it should cover--must begin immediately, Drnovsek said.

Serbian authorities used the session to attack the Markovic government. They accused the moderate prime minister of drafting market-oriented reforms that are “pushing Serbia toward complete economic collapse,” according to HINA.

Serbian and federal media issued only vague reports on the crucial meeting.

Bosnia-Hercegovina, which strongly favors a unified Yugoslavia because of its diverse ethnic makeup, is the sole republic contributing its full share to the federal treasury.

The government will face financial collapse by the end of this month unless the other five republics pay their debts, Deputy Prime Minister Kazimir Pregl said.

Pregl said that daily income has dropped to a third of the usual 600-million-dinar ($42-million) level, and he estimated total arrears at 40 billion dinars ($2.86 billion).

The Communist-controlled Army has been unable to meet its payroll because of the crisis, which has stirred rumors that it might install military dictatorships over the republics that refuse to ensure the federal government’s survival.

Yugoslavia’s army, nearly 200,000 strong, consumes almost two-thirds of the federal budget.

Armed intervention in Croatia was only narrowly averted last month, after the federal government ordered militia units there to surrender their weapons, a matter still in dispute.

Hundreds of thousands--if not millions--of Yugoslavia’s 24 million people keep firearms, many of which are unregistered and, in the view of the federal government, illegal.

Croatia recently bought 30,000 AK-47 assault rifles from Hungary, although Budapest says that only a third of the order was delivered.

Federal police on Wednesday accused Croatia of “continuing to arm and enlarge its paramilitary formations,” according to a dispatch from the Yugoslav news agency Tanjug.

Slovenia and Croatia have entered into a common defense pact in case either is attacked, the Slovenian daily Delo reported.

Under terms of that agreement, quietly approved on Jan. 20, any army intervention would result in both republics immediately declaring independence from Yugoslavia and calling on all Slovenes and Croats to defend their territories.

International peace-keeping forces from the United Nations and the 34-nation Conference on Security and Cooperation in Europe would be called on to protect both republics, Delo said.

Foreign reaction to what appears to be an increasing likelihood of Yugoslavia’s becoming several states has been mixed, at best.

European neighbors are concerned that redrawing the Balkan map could throw into question other borders fixed after World War II.

A redivision of Yugoslavia would also complicate trade and transport in the region, at a time when European Community member states are trying to unify their customs and border formalities.

Several countries, including Italy, have warned that Europe is not eager to see the emergence of tiny new states on the Continent.