Yugoslav Daily Survey, 96-10-09

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From: Yugoslavia <http://www.yugoslavia.com>

CONTENTS

[01] YUGOSLAV GOVERNMENT APPROVES BASES FOR NORMALIZING RELATIONS WITH BOSNIA

[02] YUGOSLAVIA AND GERMANY RENEW INVESTMENT PROTECTION ACCORD

[03] MONTENEGRIN PRESIDENT MEETS WITH U.N. REPRESENTATIVES

[04] CONDITIONS FOR FOREIGN CAPITAL INFLUX CREATED IN YUGOSLAVIA

[05] CYPRUS FOREIGN MINISTER ARRIVES IN BELGRADE

[06] BOSNIAN SERB PRESIDENCY MEMBER MEETS WITH GERMAN AMBASSADOR

[07] REPUBLIKA SRPSKA WILL ESTABLISH POWER IN VILLAGES SEIZED BY MUSLIMS

[08] REPUBLICA SRPSKA GETS 60 MILLION DOLLAR CREDIT

[09] CROATIAN PRESIDENT MEETS UNTAES CHIEF

[01] YUGOSLAV GOVERNMENT APPROVES BASES FOR NORMALIZING RELATIONS WITH BOSNIA

The Government said that the Joint Statement signed last Thursday in Paris by Serbian President Slobodan Milosevic and President of Bosnian Presidency Alija Izetbegovic represented an essential contribution to the establishment of lasting peace and stability in the Balkans and South-Eastern Europe.

The results of the Paris meeting are very important in the long term for Yugoslavia and its overall national interests as regards both internal and foreign affairs, the statement says.

The Joint Statement has a great diplomatic and political significance for the Federal Republic of Yugoslavia and its international position. It opens a new page in relations and cooperation between Yugoslavia and Bosnia-Herzegovina and in the Region, the Government noted.

The Government has entrusted relevant ministries with drawing up immediately agreements on trade, long-term economic cooperation, customs cooperation, protection and encouragement of investments, re-establishment of traffic, and scientific, technical and cultural cooperation. Regulating bilateral relations in all fields will contribute to free movement of citizens and trade and business activities without limitations.

The Government also heard a report on the talks held by Deputy Prime Minister Nikola Sainovic in Moscow on the development of economic cooperation between the Federal Republic of Yugoslavia and Russia. The Government noted that the talks were very successful and that foundations were laid for a great expansion of bilateral cooperation in the near future. It entrusted relevant ministries with preparing by the end of this month a Session of the Joint Committee for economic cooperation which will define concrete issues for the promotion of economic relations.

The Government also discussed a report on the implementation of the Trade Agreement between the Federal Republic of Yugoslavia and Republic of Macedonia and noted that bilateral trade was being carried out in keeping with the Agreement.

The Government defined the bases for negotiations and Draft Agreements between the Federal Republic of Yugoslavia and Republic of Zimbabwe on the avoidance of double taxation and mutual encouragement and protection of investments. The Agreements will constitute an important instrument for reinforcing bilateral cooperation in the fields which were already well-developed, especially construction and telecommunications.

The Government also defined the bases for the talks Yugoslav Minister of Transport and Communications Zoran Vujovic will have with the representatives of the UN Economic Commission for Europe, International Telecommunications Union and International Union for Road Transport to be held on October 10 and 11 in Geneva. Yugoslavia is again taking part in the activities of these international organizations, which will contribute to the development and unhindered functioning of all forms of traffic in Yugoslavia, the statement says.

[02] YUGOSLAVIA AND GERMANY RENEW INVESTMENT PROTECTION ACCORD

On the Yugoslav side, the Declaration was signed by Government Member Slobodan Djokovic, and on the German, by Ambassador in Belgrade Wilfried Gruber.

The Declaration is the result of two days of talks held by a visiting German state and business Delegation, headed by Assistant Minister in the Economy Ministry Hans Schill, with Yugoslav Government officials and businessmen.

Ambassador Gruber said that the two sides would meet in Belgrade again to discuss other Inter-State Accords signed between former Yugoslavia and Germany, adding he was certain that the two states could exchange Notes on these matters in the near future.

Assistant Minister Schill described the Declaration as signalling a normalisation in bilateral economic relations, stressing that Yugoslav authorities had given assurances that economic restructuring and market reforms were under way.

During plenary closing talks, Yugoslav Chamber of Commerce President Mihailo Milojevic said that the two states' businessmen had successful talks which had marked the beginning of the establishment of full Yugoslav-German economic cooperation.

Serbian Chamber of Commerce President Vlajko Stojiljkovic spoke about Yugoslavia's high deficit in trade with Germany, adding that trade barriers erected by the European Union were another big obstacle to Yugoslavia's exports to Germany.

Schill told a News Conference after the closing plenary meeting that it was not true that all German economic ties with Yugoslavia depended on the latter's relations with the International Monetary Fund. He added that there was room to consider restoring E.U. economic facilities to Yugoslavia.

Asked about investment cooperation prospects between Yugoslavia and Germany, Schill said that such cooperation had the best chance in the power industry, as well as everywhere else where the two sides could produce advanced technology goods.

[03] MONTENEGRIN PRESIDENT MEETS WITH U.N. REPRESENTATIVES

According to a statement released by the Montenegrin Presidential Office, it was said in the talks that the Monitoring Mission had helped preserve security in the disputed area and that, in view of the engaged representatives and its effects, it represented one of the most successful peacekeeping missions of the United Nations since its founding.

It was also said that the Yugoslav-Croatian Agreement on the normalization of relations represented a realistic basis for a negotiated settlement of the Prevlaka territorial dispute and that its provisions which ensured the U.N. authority and control and the presence of its military observers in the region had an important role in this process.

[04] CONDITIONS FOR FOREIGN CAPITAL INFLUX CREATED IN YUGOSLAVIA

Filipovic said that despite an export rise in the past two months, Yugoslav goods are unable to compete on world markets due to their high prices. The Yugoslav economy cannot as yet use the advantages of the 'privileged nation' status, as Yugoslavia is not a member of the World Trade Organization (WTO), he said.

Filipovic said that much is expected from the realization of the barter arrangements with China and Russia whose annual value amounts to about 500 million dollars. He said that this would considerably step up the engagement of Yugoslav capacities, especially in the metal-processing industry. Yugoslav exports from January until the end of August were worth 2.2 billion dollars, which is 40.9% up on the same period last year. Imports, on the other hand, reached 1.1 billion dollars and were 6.5% up on 1995.

Filipovic said that the structure of the exports and imports shows that mainly raws had been sold and bought. He said that the export structure is expected to improve by the end of the year and that the acquired raws would result in the increased export of final products.

[05] CYPRUS FOREIGN MINISTER ARRIVES IN BELGRADE

Michaelides was welcomed at Belgrade airport by Assistant Yugoslav Foreign Minister Zivadin Jovanovic.

Michaelides told reporters on his arrival late on Tuesday that the peoples of Yugoslavia and Cyprus shared historical, religious and political ties and that he was very pleased about his first visit to Belgrade. He said open prospects lay ahead for closer bilateral cooperation in political, economic and cultural spheres. Talks between Milutinovic and Michaelides are expected to focus on further strengthening historically friendly ties and all-round cooperation between Yugoslavia and Cyprus and on the situation in the Region and in Europe as a whole. The Ministers are expected to sign a Yugoslav-Cypriot Accord on cultural and educational cooperation and a Protocol on regular consultations and cooperation between the two Foreign Ministries.

Michaelides will be received by Yugoslav Prime Minister Radoje Kontic, and is expected to meet also with Slobodan Milosevic, President of the Yugoslav Republic of Serbia.

A Placard of the City of Belgrade will be delivered to Michaelides in a ceremony at the City Assembly Building.

[06] BOSNIAN SERB PRESIDENCY MEMBER MEETS WITH GERMAN AMBASSADOR

Speaking with German Ambassador in Sarajevo Johannes Puesinger, Krajisnik said he was ready to invite the Serb Deputies to sign the Declaration and thus contribute to the constituting of the Common Organs of Bosnia-Herzegovina. Krajisnik told reporters that he had informed the Ambassador about the Republika Srpska stand that the Dayton Agreement should be fully implemented, observing the equality of both Entities.

Speaking about the Serb Deputies' absence from the Constituent Session of the Bosnian Parliament in Sarajevo on Saturday, Krajisnik said that the whole affair had been politicized and that the Serb side wanted the Common Organs of Bosnia-Herzegovina to be set up. Krajisnik asked the German Ambassador to inform International Community's High Representative for Bosnia-Herzegovina Carl Bildt and 'Contact Group' members about this stand and the Serb Deputies' readiness to sign the Declaration. The Bosnian Serb side explained that its Deputies had not come to the Inauguration Session of the Bosnian Parliament's House of Representatives because the building of Sarajevo's National Theatre was not safe enough.

[07] REPUBLIKA SRPSKA WILL ESTABLISH POWER IN VILLAGES SEIZED BY MUSLIMS

After meeting with RS Interior Minister Dragan Kijac, Baumont said that they had discussed the situation in Jusici and Mahala, near Zvornik in Eastern RS, where the Muslims had moved in by force about ten days ago. Kijac confirmed that agreement had been reached and said that RS Police and the International Police would on Wednesday establish RS power in this region which the Dayton Agreement had given to Republika Srpska.

[08] REPUBLICA SRPSKA GETS 60 MILLION DOLLAR CREDIT

Kondic took part in an eight-day Annual Session of the World Bank and the IMF in Washington, when it was agreed that an IMF mission visits RS to determine conditions for financing projects of small and medium scale firms, forestry and the private sector. As one of the significant results of his stay in Washington Kondic pointed to the firm promise made by World Bank and IMF representatives that when it comes to financing projects, RS and the Federation of Bosnia and Herzegovina will have equal treatment.

[09] CROATIAN PRESIDENT MEETS UNTAES CHIEF

Klein said after the meeting that as the decision on the duration of UNTAES mandate is to be taken by the UN Security Council, the mandate will probably be extended until next summer. Klein could not predict when elections would be held in the Region, but hoped they would take place as soon as possible. A Joint Electoral Commission has been created, comprising two representatives of Croatian Government, two representatives of local Serbs and one UN official as chairman. The Commission will meet next Friday, Klein said.

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