Yugoslav Daily Survey, 97-08-19

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Yugoslav Daily Survey

CONTENTS

[01] LILIC: KOSMET ISSUE SHOULD BE RESOLVED ONLY THROUGH DIALOGUE

[02] BULATOVIC RECEIVES EU REPRESENTATIVES

[03] ZORAN LILIC - INTERVIEW TO USA TODAY

[04] MONTENEGRIN GOVERNMENT PRESENTS DEVELOPMENT PROJECTS IN CANADA

[05] BOSNIAN COUNCIL OF MINISTERS FAILS TO PASS CITIZENSHIP LAW

[06] YUGOSLAVS HAVE NO PROBLEMS TRAVELLING ON NEW PASSPORTS

[07] UNTAES DENIES ALLEGED LIST OF 178 WAR CRIMES SUSPECTS

[08] R.S. CONSTITUTIONAL COURT RULES PLAVSIC'S DECISION UNCONSTITUTIONAL

[09] YUGOSLAV GOVERNMENT OFFICIAL SAYS IMPLEMENTATION OF REFORMS PROCEEDS WELL

[10] DEMOCRATIC PARTY OF SOCIALISTS ENDS ITS CONGRESS

[11] RUSSIAN FOREIGN MINISTRY SAYS TENSION REMOVED IN REPUBLIKA SRPSKA

[12] RUSSIAN PEACEMAKERS NOT TO TAKE PART IN BOSNIA ARRESTS

[13] YUGOSLAV FOREIGN MINISTER EXTENDS INVITATION TO OSCE DELEGATION

[14] MONTENEGRIN PARLIAMENT SPEAKER INVITES OSCE OBSERVERS

[15] MARJANOVIC: REFORMS AIMED AT PRESERVING POLITICAL AND SOCIAL STABILITY

[16] VUCIC: INCREASING INTEREST OF FOREIGN INVESTORS

[17] YUGOSLAV ARMY REPORTS INCREASING ILLEGAL BORDER CROSSINGS FROM ALBANIA

[18] YUGOSLAV GOVERNMENT HOLDS SESSION

[01] LILIC: KOSMET ISSUE SHOULD BE RESOLVED ONLY THROUGH DIALOGUE

Tanjug, 1997-08-15

Socialist Party of Serbia (SPS) Vice-President and Serbian presidential nominee Zoran Lilic said in an interview to the Belgrade weekly NIN on Friday that the issue of Kosovo and Metohija (Kosmet) should be resolved as befitting the most democratic countries and only through dialogue, and any other way chosen by ethnic Albanians would not be good, primarily for them.

"No-one can dissuade me that those who want a better state than this one, which guarantees them all their rights, the right to study in their native language, have their own culture, their TV programme, participate in office, participate in elections, vote, be elected, if that is not enough, should be told to seek another state," Lilic said.

Kosmet Albanians should participate in elections because "all analyses by parties in office and those in the opposition show that they can have 25-30 deputies, which would probably be one of the strongest groups in Serbian Parliament."

"That is the best way for them to settle their problems, if they in fact exits," Lilic said.

Commenting on the developments in Montenegro, Lilic said the SPS had not opted for any side in the personal sense. "We have in fact opted, primarily, for a strong Serbia, and I believe a strong Serbia is the guarantee for Yugoslavia's future. However, at the same time, it is necessary for Montenegro to be that as well. Therefore, those who are on the side of true, and not false reforms, on the side of Montenegro's development, the togetherness of Serbia and Montenegro, deserve our support. Time will show if we were right," he said.

This country must face certain problems which exist in Serbia and Montenegro, primarily the high degree of criminalization of society, because 'the sooner it faces this the better for its citizens," he said.

Speaking about the privatization process in Serbia, Lilic pointed out that there was exceptional interest for placements of foreign capital because of the geo*strategic and geopolitical and overall economic potential.

It is logical for foreign capital to be invested primarily in systems from which it can profit quickly, but it is also logical that additional capitalization or joint investments in telecommunications or the electric power industry will secure finds for their own development as well.

"Excess capacities, however, must be restructured in some other way, taking care of social aspects. However, there should be no investments at all costs and indefinitely into what is not profitable or not attractive for us, " he said.

Lilic said he hoped he would win in the first elections round on September 21, but said there should be respect "for all candidates who believe they have good chances at the Serbian presidential elections."

"I am deeply convinced that what we wish to do really presents the interests of Serbia and the Serbian people and all citizens of Serbia," Lilic concluded.

[02] BULATOVIC RECEIVES EU REPRESENTATIVES

Tanjug, 1997-08-15

Montenegrin President Momir Bulatovic received in Podgorica on Friday Head of European Union Observer Mission Dan Everts with his associates, the Presidential Office said in a statement.

Bulatovic and the EU officials exchanged views of the political situation in the former Yugoslavia and the Balkan region in the context of international community's stepped-up activities towards a continuation and upgrading of processes that are aimed at their permanent stabilization.

The meeting especially focused on the current phase in the implementation of the Dayton Peace Accords for Bosnia-Herzegovina and on the political situation in Albania, which borders Montenegro and the Federal Republic of Yugoslavia.

As for the political situation in Montenegro, Bulatovic said the developments in the past few months have resulted in grave political conflicts and the crisis in the functioning of state bodies, which made a holding of early parliamentary elections inevitable.

The political situation in Montenegro and the functioning of state bodies are totally out of line with a political programme, which has won the support of the electorate, annulling in fact the November 1996 election results, the statement said.

Bulatovic said the political crisis in Montenegro could be only settled in a successful and long-term manner through democratic means and a full observance of constitutional and legal principles, namely, by a free voting of Montenegrin citizens in the coming presidential and early parliamentary elections.

He said it was significant and positive that EU and OSCE observers were witnessing election activities in Montenegro.

[03] ZORAN LILIC - INTERVIEW TO USA TODAY

Tanjug, 1997-08-17

The supreme goal and the principal activity of the future President of Serbia and its future Government will be to strengthen the stability of the Republic of Serbia and improve the standard of living of its citizens, while preserving the social dimension which is so important for us, Vice- President of the Socialist Party of Serbia (SPS) and its candidate for the office of President of the Republic of Serbia Zoran Lilic said in an interview to USA Today.

Lilic told USA Today journalist Michael Jordan that he believed that one man alone can do nothing great, not only in this country but in any country.

Lilic underlined that his candidacy for the office of Serbia's President represented above all the wish of his party and its 600,000 members, and reflected the need for pursuing the policy that was followed for all these years. That policy has brought about considerable stability in Bosnia- Herzegovina and protected the F.R. of Yugoslavia from the war in its neighbourhood, and should in the future ensure peace in Serbia and Yugoslavia to enable them to firmly guarantee the stability of the Balkans and consequently Europe, Lilic said.

We wish, Lilic said, to pursue the policy which has kept destruction away from Serbia, its considerable potentials and resources, and its greatest advantage - the know-how of its people.

Much has to be done here and much has been undertaken, especially in the past few months: economic recovery, intensive production growth, work on infrastructure projects, considerable progress in international economic cooperation, Lilic said.

Priority should be given to a persistent and efficient fight against the heritage of the past four years under sanctions and with war in the neighbourhood - the considerably grown crime rate and, to some extent, drug abuse, Lilic said.

Answering a question on privatization, Lilic said that over one half of companies in Serbia were either private or mixed, in line with laws passed much earlier than in the majority of countries in eastern Europe.

The new law which has been in force for a relatively short time now provides full freedom for the privatization of all companies, both state- owned and mixed, or those that used to be described as "social property", Lilic said.

We are not against privatization. Privatization brings additional resources, provides prospects for a considerable development of technological resources and for fuller and richer cooperation with the world. Such cooperation involves speaking in the language of the market. What can be more logical than that we should communicate with the world in the language that it understands the best. Such logic prevails in the United States, western Europe and all developed countries, Lilic underlined.

Unfortunately, the four years of sanctions had largely hampered Serbia's ambition to develop its economy in that manner, but now this obstacle is behind us, despite some attempts at hindering the implementation of reforms, Lilic said.

The process of ownership transformation has been considerably intensified. A Law on concessions has been passed. This is the hand that we are extending to Europe and the world, a hand of cooperation. We are counting on joint interests. The world market is cruel, but realistic, as it recognizes only those who are the most efficient and capable, Lilic said.

Keeping in mind what has been done in Montenegro, Serbia plans to return in a big way to the world market, where it will not be only an observer but will demonstrate the level it has attained with its know-how, its products and its efficiency, Lilic underlined.

We can do it and we shall do it, he stated.

Referring to the need for the lifting of the outer wall of sanctions and the pre-conditions for that, Lilic said that Serbia had a clear stance regarding the issues of human rights and war criminals.

Regarding human rights, sporadic problems do exist in Serbia in relations among members of different nationalities, but it is also certain that where terrorism and separatism are concerned, the same rules that are applied in the US should also be applied here, Lilic said.

Our Constitution guarantees all rights to national minorities, of which there are more than 24 here, Lilic noted.

The problem in Kosovo-Metohija is a problem of separatist aspirations of (ethnic Albanian) nationalist extremists. All other problems can be resolved within the framework of Serbia, but only and exclusively within the framework of the Republic of Serbia! I sincerely expect the US to help in resolving any problems that may come up in line with our law and our Constitution, in the only manner appropriate for any state which intends to exercise its sovereignty in its own territory, and that is what we want, Lilic said.

Lilic pointed out that members of national minorities had the right to be educated in their own language, to preserve and develop their culture, to elect and to be elected, to participate in the exercise of power, and to regulate local self-rule as they like where they live.

Over 80 dailies are published in national minority languages, 51 of which in Albanian, Lilic said and asked whether any other democratic country could say the same.

[04] MONTENEGRIN GOVERNMENT PRESENTS DEVELOPMENT PROJECTS IN CANADA

Tanjug, 1997-08-15

Within its several-day visit to the United States and Canada, a Montenegrin Government delegation held working meetings at the Canadian External Affairs Department, Department of the Environment and agency for investments abroad, a Montenegrin Government statement said on Friday.

The Montenegrin delegation said they expected Canada to support Yugoslavia's reintegration into the international community and presented some of the Government's development projects to be realised with the support of foreign capital.

All institutions showed readiness for cooperation, especially through the engagement of the two countries' specialised institutions and confirmed the readiness, in principle, for a visit to Yugoslavia and Montenegro of Canadian representatives.

[05] BOSNIAN COUNCIL OF MINISTERS FAILS TO PASS CITIZENSHIP LAW

Tanjug, 1997-08-16

The Bosnia-Herzegovina Council of Ministers failed once again on Saturday to pass the laws on citizenship and travel documents which it has been debating for several months.

The reason for failing to reach agreement on the draft proposed as a compromise by the Office of the High Representative of the international community Carlos Westendorp was not disclosed. Westendorp had set August 4. as the deadline for passing the law, under the threat of sanctions.

According to earlier statements by the Council of Ministers Co-Chairmen Boro Bosic and Haris Silajdzic, the three sides had been unable to reach agreement on the status of Bosnia-Herzegovina, Republika Srpska and Muslim- Croat Federation citizenships, refugee citizenship, dual citizenship and revision of citizenship certificates issued so far.

As for the Law on travel documents, the Council failed to reach agreement only on the design of the passport front cover page.

The Saturday session of the Council in Sarajevo was attended by the Deputy High Representative of the international community Gerd Wagner.

[06] YUGOSLAVS HAVE NO PROBLEMS TRAVELLING ON NEW PASSPORTS

Tanjug, 1997-08-15

Yugoslav citizens who own new passports have had no problems in being granted visas, which means that there are no negative reactions to our new travel documents, head of the Yugoslav Foreign Ministry Directorate for Consular Affairs Milorad Ivanovic told a press conference at the Yugoslav Government.

He said that one month ahead of introducing new travel documents, the F.R. of Yugoslavia had informed other states about this move in the usual way and that there had been no negative reactions.

Commenting on whether the Yugoslav diplomacy can do something to facilitate the granting of Croatian visas to Yugoslav citizens, Ivanovic said that the "granting of visas is a sovereign act of each state, determined by internal regulations."

At the Croatian Embassy this procedure is "complex, it takes much time and creates an atmosphere of nervousness and impatience, but we have no knowledge of actions that would be an insult to dignity," Ivanovic said and added that Yugoslavia and Croatia should open talks, in the near future, about abolishing visas for all types of passports.

[07] UNTAES DENIES ALLEGED LIST OF 178 WAR CRIMES SUSPECTS

Tanjug, 1997-08-15

Chief Prosecutor of The Hague-based International War Crimes Tribunal Louise Arbour released in The Hague on Friday an official statement denying that her office had sent a letter to the Vukovar-based UN Transitional Administration of Eastern Slavonija (UNTAES) containing a list of 178 persons indicted, the Vukovar-based UNTAES Press Office said in a statement.

Arbour said the letter had not come from her Office or from anyone else in the Tribunal. The letter is a complete forgery and should be ignored, Arbour said, adding that Transitional Administrator Jacques Klein informed her on Thursday about the letter, which circulated in the UNTAES region.

According to the same report, Arbour had allegedly sent the letter to a UN Civilian Police Commissioner, seeking information on 178 persons allegedly indicted by the War Crimes Tribunal.

The UNTAES statement said the prosecutor intended to launch an immediate investigation to establish who was behind this letter and to take adequate steps against the forgerers. UNTAES also urged all those who have received or are about to receive a copy of the letter to hand it in enveloped to the UN Headquarters in Vukovar.

Beside the copies of the letter, sent by mail to 178 alleged suspects, some citizens of the region have lately received notes urging them to leave the region "as soon as possible", said the statement. The statement categorically denied reports that these notes had allegedly come from the UNTAES Civilian Affairs Office.

UNTAES strongly condemns these provocative attempts to saw anxiety and insecurity among the people of the area, said the statement, adding that such attempts aimed to directly undermine the UNTAES mandate.

The statement said that all these alleged "documents" were malevolent forgeries and called on the residents of the region not to fall for such provocations.

[08] R.S. CONSTITUTIONAL COURT RULES PLAVSIC'S DECISION UNCONSTITUTIONAL

Tanjug, 1997-08-16

The Constitutional Court of the (Bosnian Serb) Republika Srpska has ruled unconstitutional President Biljana Plavsic's decision to dissolve the Parliament and call for early parliamentary elections.

The Court decided late on Friday that Plavsic's decision was contrary to the R.S. Constitution both in the formal as well as the material sense.

Plavsic denied comment on the Court's ruling in a R.S. television prime time news programme, saying she had not been officially informed about it.

[09] YUGOSLAV GOVERNMENT OFFICIAL SAYS IMPLEMENTATION OF REFORMS PROCEEDS WELL

Tanjug, 1997-08-17

Secretary-General of the Yugoslav Government Ljubisa Popovic has said that the implementation of reforms is proceeding well and that, consequently, the government plans increased activity in various fields in August and September.

Popovic told Tanjug that this primarily referred to an increase in output and exports, the country's return to the international community, further implementation of economic and political reforms, consolidation of public spending, curbing the grey economy and bringing into accord federal laws with the Constitution.

He said conditions set for the country's return to international financial, trade and other organisations and its normalisation of relations with regional and subregional communities were still of political nature, saying the Government therefore planned intensive international activity in the domain.

"This international activity will primarily include the removal of obstacles to and the creation of optimum conditions for Yugoslavia's speedy reintegration into the international community, especially into the world's major organisations," he said.

He said Yugoslavia would continue stepping up bilateral relations with a large number of countries, saying it would continue its international activity throughout the summer. Subsequently, Yugoslav Prime Minister Radoje Kontic, Foreign Minister Milan Milutinovic and other ministers are to pay a series of visits to foreign countries, he said.

Popovic also said that the Peace Process remained Yugoslavia's foreign policy top priority considering the country's crucial role in the implementation of peace agreements. He said the country would continue to help fully implement the Dayton Peace Accords, this being vital for the stabilisation of the situation and peace in the former Yugoslavia. Accordingly, major contacts with parties to the Peace Process are being planned, he said.

He said the Government's responsibility in defining and following its internal and foreign policy and in drafting laws and regulations had made it necessary for it to work without interruption throughout the year. Popovic also said that, over the past month or so, the Government had undertaken a series of measures and activities in coordination with Serbia and Montenegro to curb efficiently the grey economy, saying it had already achieved some success in the domain.

He said the Government would continue to bring into accord the federal legislation with the Constitution, especially those laws that were to secure a more efficient functioning of the market economy and major technical and technological systems as well as those concerning the freedom, rights and protection of citizens.

The Government will draft by the end of the summer a large number of laws to be reviewed by Parliament in its Autumn session, he said adding that the drafts in question referred to the so-called old foreign currency savings, prices, commodity reserves and market inspection, air transport and railway, land and sea transport safety, he said.

Furthermore, the Government is to draft laws on the Foreign Minister's duties, health care insurance and a series of laws on bringing into accord the federal legislation with the Constitution as regards the terminology used, he said.

He said 29 draft laws had already been submitted to Parliament, including those on money transfers, legal profession, copyrights, international agreements and archives. He said the Government had withdrawn 15 drafts in order to amend them.

Popovic said the work on bringing into accord the federal legislation with the Constitution was nearly finished, saying only about one fourth of laws were yet to be dealt with.

Once this major activity is over, the new legal system will be created as well as conditions for the full implementation of the Constitution, he said.

[10] DEMOCRATIC PARTY OF SOCIALISTS ENDS ITS CONGRESS

Tanjug, 1997-08-16

The Democratic Party of Socialists (DPS) ended its Third Congress on Saturday evening in Podgorica by electing its new Main Committee. The new Main Committee comprises 121 members and its new Vice-Presidents are Srdja Bozovic, Zoran Zizic and Predrag Bulatovic.

Closing the Congress of the ruling Montenegrin party, DPS President Momir Bulatovic said the Congress had successfully completed its task by consolidating the DPS policy and taking decisions clearly confirming the party political and program continuity.

We embody the original, political, state, ethical, moral and human principles contained in the DPS program which is known and accepted by our widest public, Bulatovic said.

The principal option of the program is the Federal Republic of Yugoslavia, and the constitutional position of out joint state and member-republics needs no review but must be implemented and developed, Bulatovic underlined.

The Yugoslav idea had always been the line of division between progressive, freedom- and justice-loving ideas, programs, movements and individuals in Montenegro from those others who have made no contribution to our history and whom history will not remember, Bulatovic said.

The Congress has confirmed that Montenegro does not lose its greatness, statehood or future by being a part of Yugoslavia. On the contrary, like a jewel, Montenegro continues to shine while being incorporated sincerely into the Yugoslav community, brotherly concord and understanding with the Republic of Serbia, Bulatovic said.

Administering a state is a serious and difficult job whose severest judges are the people and history. For the people and for history and on the basis of our policy, we must exert utmost efforts to promote and develop our joint state, Bulatovic said.

[11] RUSSIAN FOREIGN MINISTRY SAYS TENSION REMOVED IN REPUBLIKA SRPSKA

Tanjug, 1997-08-14

It is Russia's assessment that the tension has been removed so far over a reorganization of Republika Srpska's special police force, the Russian Foreign Ministry said on Thursday. Ministry Spokesman Valery Nyesteruskin told a press conference on Thursday that a decision by the SFOR Command to transform Republika Srpska's special police force into a civilian one, including a turnover of excess weaponry, did not clash with the Dayton Peace Accords. Nyesteruskin said the Bosnian Serb leadership shared this opinion. He also said that the Republika Srpska leadership had reached an agreement in contacts with the SFOR Command to reorganize its special police brigade in the near future.

Representatives of the international force and the Republika Srpska Ministry of Interior should agree on specific aspects of the reorganization, said Nyesteruskin and added that "the tension over the issue has been removed so far."

He said that SFOR had conducted an unhampered inspection of the special units' positions and that a Russian brigade in charge of the special force was acting in this situation strictly in line with its status and orders. These orders had come through a chain of command, which had been set up in an exchange of letters and other documents coordinated in agreeement between Russia and the NATO command on Russia's involvement in the peace operation in Bosnia-Herzegovina, said Nyesteruskin.

He also said that a Russian representative to Bosnia-Herzegovina and a political advisor to the Russian Brigade, acting in line with instructions of the Russian Foreign Ministry, had actively contributed to seeking an acceptable solution to the problem.

[12] RUSSIAN PEACEMAKERS NOT TO TAKE PART IN BOSNIA ARRESTS

Tanjug, 1997-08-14

Russian peacemakers in Bosnia will not take part in war crimes suspects' arrests because this clashes with the mandate of the SFOR, Commander of an operative group within the Russian airborne brigade Gen. Valery Yevtukhovitch said in an exclusive statement to Russia's ITAR-Tass news agency on Thursday.

Gen. Yevtukhovitch denied some media reports that SFOR units in Bosnia had gone on heightened alert, saying that the Russian Brigade, as well as a US Division in operative command of the Russian special force, operated under normal, working regime.

He also described as rumours reports that SFOR special groups or NATO were making preparations for capturing Radovan Karadzic. He confirmed, at the same time, that Russian troops took part in a control of Republika Srpska's special police force that was in the zone of their responsibility.

[13] YUGOSLAV FOREIGN MINISTER EXTENDS INVITATION TO OSCE DELEGATION

Tanjug, 1997-08-14

Yugoslav Foreign Minister Milan Milutinovic on Thursday invited an Organisation for Security and Cooperation in Europe delegation to the coming elections in Serbia. Milutinovic's invitation, conveyed through OSCE Chairman Niels Helveg Peterssen, followed a letter by Serbian parliament speaker and Acting President Dragan Tomic, requesting that OSCE members send their observers to the September 21 elections.

A large number of countries have already expressed readiness to send observers to the elections.

[14] MONTENEGRIN PARLIAMENT SPEAKER INVITES OSCE OBSERVERS

Tanjug, 1997-08-14

Montenegrin Parliament Speaker Svetozar Marovic on Thursday invited the Organization for Security and Cooperation in Europe (OSCE) to send its observers to Montenegro to witness directly all the stages of presidential elections scheduled for October 5.

In his letter to OSCE Chairman Niels Petersen, Marovic said that Montenegro was sincerely committed to developing an open, free and democratic society. He also said that "believing in a modern and democratically strong Federal Republic of Yugoslavia, Montenegro confirms, with its results achieved so far, its determination to implement comprehensive economic reforms based on a strengthening of democratic institutions and the rule of law."

Marovic informed Petersen that, on the basis of an agreement among all parliamentary parties, parliamentary elections in Montenegro had been planned for the first half of 1998. He said that, to that effect, activities of an expert team, comprising representatives of all parliamentary parties, were underway to elaborate election regulations. Marovic also assured Petersen that, even in this regard, Montenegro was open for cooperation with the OSCE.

[15] MARJANOVIC: REFORMS AIMED AT PRESERVING POLITICAL AND SOCIAL STABILITY

Tanjug, 1997-08-14

Serbian Prime Minister Mirko Marjanovic said in the southern Serbian town of Pristina on Thursday that the objective of the Government of national unity in the past four-year period had been to preserve political and social stability and the economic and natural potentials.

Speaking at a meeting of the political-economic group of activists of Kosovo and Metohija, Marjanovic said the Government had set the reform project globally with the objective to cover all segments of society and treat Serbia integrally.

"Proof of that is today's presence of the Government in Pristina, on the occasion of the setting up of the republican Directorate for regional development. This institution presents an instrument of material support to the stepped up development of undeveloped areas of Serbia, and sources for its work will be secured from the republican budget," he said.

Pointing out that the Directorate would act within its competence and answer to the Government, Marjanovic explained that the fact it was based in this part of the Republic "best confirms our resolve and Serbia's readiness speedily to work on the development of this autonomous province of ours."

Kosovo and Metohija (Kosmet) as a constitutive-legal and political integral part of Serbia must also be an economically integrated part of the republic, Marjanovic said, adding that more than one-third of all funds of the republican development fund had been aimed at Kosmet in the past few years.

Marjanovic said that divisions would not contribute to the speedier resolving of problems in Kosovo and Metohija. The way to resolve all problems is through respect of two fundamental principles, he said.

"Kosovo is an autonomous province within Serbia and any concepts based on the secession of this part of Serbia are out of the question for all times, and the guaranteed civil and national rights must be respected and used through legal institutions of the system, and better solutions must be sought in that way. That is in the interest of ethnic Albanians, Serbs, Montenegrins and Muslims and all those who live here," Marjanovic said.

[16] VUCIC: INCREASING INTEREST OF FOREIGN INVESTORS

Tanjug, 1997-08-14

There is increasing interest and readiness among foreign businessmen and investors for concrete business engagements in our country, Belgrade Banking Group President and member of the Federal Government Working Group for financial reforms Borka Vucic said in interview to the Friday issue of the Novi Sad weekly Nedeljni Dnevnik. Vucic singled out among the reasons for this the "reform processes launched in our economy, the improved legislature, and new organizational solutions and younger personnel in the authorized state organs."

She said the increased interest was evident in the "sales of part of the telecommunications to Italian and Greek partners for 1.5 billion D-marks, one of the biggest investments in Europe at present."

"The ownership transformation of Serbia's electric power system EPS is in the offing, and some German and Italian firms have already said they are interested in participating in the restructuring of certain parts of this big system," Vucic said.

Foreigners are especially interested in buying shares of our factories which manufacture cement, tobacco, beer, and some other consumer products, she said.

Speaking about the reform of the financial department, she said the Federal Working Group had agreed at its first session to prepare a consistent programme with concrete legal solutions covering, among other things, the consolidation of banks and the improvement of financial operations.

The founded Belgrade Banking Group, which comprises 20 banks, is a solution based on such organizations in developed countries, she said.

Vucic said the Yugoslav National Bank account with the BB COBY bank on Cyprus had been deblocked after a Cyprus court rejected charges filed by Slovenia against the Yugoslav National Bank regarding private foreign currency savings accounts of the former Yugoslavia.

She said she was very optimistic regarding the negotiations with the London Club on the rescheduling and payments of Yugoslavia's 2.5 billion dollar debts to creditors of about 400 foreign commercial banks. Yugoslavia's proposal was based on the "real possibilities of our economy to fullfil its obligations to all cerditors in the coming years and proceeds from the fact that only an economy with a stable growth, based on export-oriented production, can meet its obligations on a long-term basis," Vucic said. Vucic said this proposal had been received with understanding by the co- presidents of the London Club.

[17] YUGOSLAV ARMY REPORTS INCREASING ILLEGAL BORDER CROSSINGS FROM ALBANIA

Tanjug, 1997-08-14

There is an increasing number of illegal border crossings from the Albanian territory and other violations of the Yugoslav state border with Albania, containing all the elements of organized terrorist activities, the Yugoslav army General Staff Press Office said in a statement released on Thursday.

Group attempts to illegally cross the state border are, as a rule, backed with gunfire from the Albanian territory and take place in collision with certain forces in the territory of the Federal Republic of Yugoslavia. Familiar tactics of using women and children have lately been resorted to in an effort to check the alertness of Yugoslav border guards and possibly open a corridor for crossing the border, said the statement.

On August 13, 1997, a group of nine people aged between 5 and 15 were arrested in an attempt to illegally cross the border in the area of the Mt. Sara border point, in the Prizren municipality. Another group, backing the former by gunfire and opening fire on a Yugoslav border patrol, wounded an Albanian national in the hand. Yugoslav border authorities transported him to a medical centre in Dragas, taking the remaining eight to a Krusevo police station, the statement said.

Thanks to its composed and humane conduct, the Yugoslav army border patrol refrained from opening fire on the children, thus preventing a major incident, for which the Albanian side alone is to blame, the statement said.

In line with decisions by the Yugoslav Supreme Defence Council, Yugoslav army border units have stepped up security measures and control of movement in the border area, uncovering and effieciently preventing such incidents and other violations of the border regime, acting consistently in accordance with the guards' rules of conduct and implementing adequate security and protection measures, the statement said.

[18] YUGOSLAV GOVERNMENT HOLDS SESSION

Tanjug, 1997-08-14

At the Thursday session presided by Prime Minister Radoje Kontic, the Yugoslav Government adopted by-law acts creating preconditions for the Yugoslav economy's more efficient joining of the world market under the internationally recognised ISO 9000 quality system, the Government said in a statement.

Under a special act, the Government set up the Yugoslav Accreditation Body that would assess the ability of companies and other legal persons to carry out the certification of products and services, quality system, system of environment protection and those assessing jobs in these systems.

The Government adopted draft laws on the ratification of agreements with Greece, Slovakia, Poland and Macedonia in the field of investment, taxation and agriculture, which would be submitted to the Federal Parliament. The ratification of these agreements will create preconditions for strengthening and promoting Yugoslavia's cooperation with these countries, especially in the field of agriculture, it was said.

The basis was set up for talks between Yugoslav Economy Minister Rade Filipovic and Czech Industry and Trade Minister Karel Kuhnl in Prague on August 18-19. During the visit to Prague, the Yugoslav delegation, which would include representatives of companies interested in cooperation in the realisation of the thermo-electric power plant Kolubara B project, will meet with Skoda Director-General and co-owner Lubomir Soudek and discuss possibilities for crediting the construction of power equipment in Yugoslavia.

The Government determined the basis for talks and conclusion of an agreement with Peru on the abolishment of visas for those travelling on diplomatic and service passports.

The Yugoslav Foreign Ministry is in charge of informing the Albanian side on the acceptance of proposals for organising a meeting on the problem of organised crime and border incidents.

The Yugoslav Interior Ministry will propose the organisation, date and venue of the talks about the fighting of organised crime, the statement said.

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