The article examines the golden period in Yugoslav culture during the 1960ies and the early years of Bitef (Belgrade International Theatre) Festival in relation to the very specific Yugoslav cultural politics which was skilfully balancing betwee the East and the West during the Cold War political fragmentisation of the world. Although a socialst country, Yugoslavia never belonged to either of the blocks and had a very progressive and liberal cultural policy which resulted in the creation of one of the oldest and during the 1960ies and 1970ies - most radical festivals in the world - the Bitef Festival which played a very important role as the meeting point between eastern and western theatre artists untill the fall of Berlin Wall.