Albania and Israel agreed to establish diplomatic ties today, leaving Yugoslavia as the only East European country that has not resumed full relations with Israel.

Foreign Ministers David Levy of Israel and Muhamet Kapllani of Albania signed a memorandum of understanding to establish diplomatic ties.

Albania recognized Israel as a state in 1949 but never established even low-level relations. Now, emerging from nearly 50 years of Stalinist dictatorship and diplomatic isolation, Albania has its first freely elected Government but is in an economic crisis. It hopes for Israeli financial, health and agricultural aid, said Zev Dover, an Israeli Foreign Ministry spokesman.

In April, most of Albania’s small Jewish population secretly immigrated to Israel.