Yugoslav Daily Survey, 97-08-22

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Yugoslav Daily Survey

CONTENTS

[01] MILUTINOVIC RECEIVED AMBASSADOR EIDE

[02] GERMANY AND EU DO NOT SUPPORT ANY SECESSION WITHIN FRY

[03] VOJVODINA PREMIER MEETS HUNGARIAN PRIME MINISTER

[04] WESTENDORP IN FAVOUR OF ELECTIONS IN REPUBLIKA SRPSKA

[05] STABILITY OF PRICES AND RATE OF EXCHANGE OF NATIONAL CURRENCY

[06] REPUBLIKA SRPSKA GOVERNMENT: A SPECIFIC COUP IN BANJA LUKA SRNA.

[07] BLASKIC CASE SHEDS NEGATIVE LIGHT ON CROATIAN PRESIDENT AND HIS PARTY

[08] KONTIC RECEIVED THE NEWLY-APPOINTED YUGOSLAV AMBASSADOR TO INDIA

[09] INDUSTRIAL GROWTH UP 8.1% IN JANUARY-JULY

[10] CONSTITUTIONAL COURT RULING SAVED REPUBLIKA SRPSKA

[11] PROMOTION OF ECONOMIC COOPERATION BETWEEN YUGOSLAVIA AND THE CZECH REPUBLIC

[12] SERBIAN PARLIAMENT APPOINTED SUPERVISORY COMMITTEE MEMBERS

[13] RUSSIA'S STANCE ON REPUBLIKA SRPSKA

[14] MILUTINOVIC TO VISIT CHINA

[15] US ENVOY MEETS BOSNIAN PRESIDENCY MEMBERS

[16] OSCE RESPONDS POSITIVELY TO YUGOSLAV FOREIGN MINISTER'S INVITATION

[17] BELGRADE COMPANY WINS 6.5-MILLION-DOLLAR DEAL

[18] SERBIAN PARLIAMENT NOMINATES CANDIDATES FOR MONITORING COMMITTEE

[19] YUGOSLAVS HAVE NO PROBLEMS TRAVELLING ON NEW PASSPORTS

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

[21] BULATOVIC RECEIVES EU REPRESENTATIVES

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

[23] DEMOCRATIC PARTY OF SOCIALISTS ENDS ITS CONGRESS

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

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

[26] ZORAN LILIC - INTERVIEW TO USA TODAY

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

[28] MONTENEGRIN GOVERNMENT PRESENTS DEVELOPMENT PROJECTS IN CANADA

[01] MILUTINOVIC RECEIVED AMBASSADOR EIDE

Tanjug, 1997-08-20

Yugoslav Foreign Minister Milan Milutinovic received on Wednesday Ambassador Vigleik Eide, who chairs the Consultative Commission on the implementation of the Florence Sub*regional Arms Control Agreement.

The talks dealt with issues concerning the ongoing implementation of the agreement and measures to be taken to secure its consistent implementation. Interest was confirmed in continuing successful cooperation in the sphere. Moreover, Yugoslavia's contribution was stressed to the implementation of the agreement, specifically as regards timely measures for cuts in surplus arms.

[02] GERMANY AND EU DO NOT SUPPORT ANY SECESSION WITHIN FRY

Tanjug, 1997-08-20

Germany and the European Union do not support any secession in the territory of the Federal Republic of Yugoslavia, including the ambitions of Kosovo Albanians for the secession of Kosovo and Metohija, said Wolfgang Ischinger, Director of the Political Department of the Ministry for Foreign Affairs of the Federal Republic of Germany.

Ischinger is heading a ranking German diplomatic delegation for talks with Kosovo District Deputy Chief Veljko Odalovic.

Germany's only interest is that a political solution be found by peaceful means, said a statement issued by the Province's Secretariat of Information.

Renouncing the option for an independent Kosovo by ethnic Albanian political leaders would mean greater participation of ethnic Albanians in Serbia's political life, and their taking part in the elections in Serbia would enable the Albanian national minority to use its constitutional right and elect its representatives in the political system of the country they are living in, the statement said.

It was mutually assessed, the statement said, that all problems must be solved within the institutions of the system, by way of talks and dialogue.

The opening of foreign offices and the presence of missions in Kosmet would help perceive the situation more realistically in these territories, Ischinger assessed.

Veljko Odalovic stressed that all of this depended upon the full return of the FRY into international institutions, which would help observe the situation in Kosovo and Metohija from all angles, the statement said.

It was stressed in the talks that recent developments in Albania and in western Macedonia, in terms of security, were reflected on these territories, so that the perception of problems in the entire region was essential for peace and stability in the Balkans, the statement said.

[03] VOJVODINA PREMIER MEETS HUNGARIAN PRIME MINISTER

Tanjug, 1997-08-20

Premier of Serbia's northern province of Vojvodina Bosko Perosevic met Hungarian Prime Minister Gyula Horn on Wednesday in Opustaser, near Szeged.

Perosevic is heading a Vojvodina Government delegation to the celebration of Hungarian national holiday - the Szent Istvan Day - being celebrated as Statehood Day.

Horn and Perosevic pointed to the importance of linking the infrastructures of the two countries, and Horn said Hungary had been happy to learn that a section of the Belgrade-Budapest highway from Feketic to Horgos would shortly be completed.

They also pointed to the importance of creating the Euro-region Danube-Tisa- Maros that would include Vojvodina, Hungarian county Czongrad and some Romanian counties whose representatives were also visiting Opustaser on Wednesday.

The relations between Hungary and the Federal Republic of Yugoslavia could serve as a model for good relations between two peoples, Perosevic and Horn noted.

The talk also focused on the prospects for promoting the cooperation between the Socialist Party of Serbia (SPS) and the Hungarian Socialist Party. Horn said his party was ready to strengthen such cooperation.

During his visit Perosevic also met representatives of Hungarian counties Czongrad and Bacz-Kiskun and of the Romanian county Tamis.

[04] WESTENDORP IN FAVOUR OF ELECTIONS IN REPUBLIKA SRPSKA

Tanjug, 1997-08-20

Elections are the only solution for the political crisis in Republika Srpska, High Representative of the international community for Bosnia- Herzegovina Carlos Westendorp said on Wednesday in Vienna after meeting representatives of the Contact Group member-states.

Westendorp told the press that the activities of the international community in Bosnia would focus on creating and developing democratic institutions and free media and on reorganizing the police force.

The Contact Group, which met unexpectedly on Wednesday in Vienna to discuss the latest developments in Bosnia, namely Republika Srpska, has agreed that elections must be held in Republika Srpska and that they must be monitored by observers of the Organizations for Security and Cooperation in Europe (OSCE).

Russia's representative has expressed reservations regarding this initiative, Westendorp said and added that Moscow believed that Republika Srpska leadership should first reach agreement on whether to hold early parliamentary elections. Russia's representative said he thought there was no need to hurry with a decision on sending OSCE observers and that local elections in Bosnia scheduled for September 13 and 14 should be held first.

The OSCE Standing Council will discuss on Thursday the issue of sending observers to Republika Srpska following President Biljana Plavsic's decision to dissolve the Parliament and call for early elections.

The presence of war criminals is the greatest hindrance to the normalization of the difficult and complicated situation not only in Republika Srpska but also in the Muslim-Croat Federation.

War criminals must appear in The Hague - voluntarily or otherwise - and this concerns not only Radovan Karadzic but all war criminals of the three sides, Westendorp said.

Karadzic's appearance at The Hague does not automatically mean that he will be convicted, he added.

Asked about the so far unbalanced international community aid to the detriment of Republika Srpska, Westendorp said that he had encountered this situation when he assumed office, but that he would in the future see to it that all municipalities showing readiness for cooperation should get economic and financial support, including realization of projects in Republika Srpska to a greater extent than so far.

There is no alternative to the implementation of the Dayton Agreement. Some progress has been registered in this regard, despite difficulties, Westendorp said.

[05] STABILITY OF PRICES AND RATE OF EXCHANGE OF NATIONAL CURRENCY

Tanjug, 1997-08-20

Thanks to the current economic policy, basic indicators of the stability of prices and the rate of exchange of the national currency show that 1997 is the most stable year compared to a number of other years. This was assessed at an expanded session on Wednesday of the Central Coordinating Serbian Government team.

In Serbia, in the past seven months this year, industrial production increased by 8.3%, and compared to the same month last year, the increase is 9%.

Chairman of the Central Coordinating team Dragan Tomic pointed out that the Serbian Government will make efforts to further improve the realized economic trend by the end of the year. In that respect the activity of other coordinating teams will be intensified, Tomic said.

Tomic stressed that businessmen were expected to be fully mobilized, as the state had become one huge building site, and preconditions existed for further increasing production and exports.

The beginning of reforms and the work of the Serbian fund for development inspire hope that the economy will realize by the end of the year a satisfactory rate of growth, so as to become competitive on the world market, Tomic said.

Ownership Transformation Minister Milan Beko stressed that the Central Coordinating team and the Serbian Government should be given credit for the good results in the realization of the program of reforms and transition.

Beko pointed out that the adoption of the Law on concessions had opened the door to foreign capital, and announced that the Serbian Parliament will review at its upcoming sessions (September, October) a number of bills, the most important ones being the bills on frozen foreign currency deposits, taxes, information...

Beko pointed to the significant role of the Fund for development which received this year, from the privatization of infrastructure systems, 1.5 billion DEM, of which 1.2 DEM have been invested. A total of 164 export programs, which have received 257 million DEM, are expected to make a profit of 1.2 billion DEM, or one DEM invested in export programs will bring four and a half marks.

Beko said that the Serbian Government had invested in the revival of production of the Kragujevac Zastava motorcar industry 190 million dinars, and from the Fund for development 10 million DEM.

Minister of Trade Srdjan Nikolic announced the further liberalization of the trade system, activities for reducing the deficit and for a good supply of the market.

"There are no economic reasons for any price changes or corrections," Nikolic said.

Yugoslav Minister of Agriculture Nedeljko Sipovac said that the central obligation of all was the further increase of production, exports and the return of all workers to work.

Sipovac said that the wheat harvest this year was double compared to last years, that there was 300,000 tons of surplus of wheat, and that a record corn harvest was expected.

Sipovac added that agricultural production growth realized so far was 5.6%, which is double compared to the period prior to the introduction of sanctions, when it was 3%.

Beogradska Banka General Director Borka Vucic pointed to the contribution of the banking system to the stabilization of the overall economy, adding that huge progress had been made in the opening of credit lines.

"Although the International Monetary Fund and the World Bank are still far away from us, we have succeeded to open on the London market a 150 million- dollar credit line over a three year period," Borka Vucic said and added that 50 million dollars have been used so far, which is the first cash credit after the embargo.

She considered that work should be accelerated on the consolidation of our banks, in order to encourage deposits, as a condition for the arrival of foreign partners who are very interested in the privatization of our enterprises.

"We have lowered our interest rates, which is highly appreciated as a great achievement of our monetary policy," Borka Vucic said.

[06] REPUBLIKA SRPSKA GOVERNMENT: A SPECIFIC COUP IN BANJA LUKA SRNA.

Tanjug, 1997-08-20

The Republika Srpska Government released a proclamation describing today's developments in Banja Luka as "a certain state coup."

"Today's developments in Banja Luka present so far the most dangerous assault on the RS institutions, and thus also on its very existence," said the proclamation received by the local news agency

The International Peace Force SFOR and the U.N. police IPTF on Wednesday morning seized the Public Security Centre in Banja Luka, the Police Academy building and three police stations in the town, claiming the actions were part of an investigation of the RS Interior Ministry.

The action followed a meeting late on Tuesday between Biljana Plavsic and international mediators Carlos Westendorp and Robert Gelbard, who supported the RS President in her stand not to recognize the RS Constitutional Court decisions regarding the political conflict in that Entity.

Agencies said today's action by SFOR and IPTF, in which 350 British and Czech troops took part and about 50 armoured vehicles and helicopters, had been requested by Plavsic, while Associated Press said Plavsic was drawing even deeper international mediators and NATO into the intra-Serb conflict on the side of the RS President.

AP said Republika Srpska was closer to a de facto division after today's action.

The RS Government said in today's proclamation that the developments in Banja Luka were "more than a state coup, since it is evidently an attempt at foreign occupation with the help of domestic collaborators."

"Biljana Plavsic calls foreigners to help her concentrate all power in the country in her own hands, in order more easily to realize the goal of part of the international community - RS's closing inside the borders of an imaginary multi-ethnic and unitary Bosnia-Herzegovina," said the proclamation.

The Government said that, with the exception of the institution of republican President, all other RS organs are functioning as usual on Wednesday and in keeping with the Constitution, adding that it would see that this grave crisis is settled peacefully.

If this is not possible, "the RS Government will use all legitimate means available at its disposal to defend the constitutional organization and peace, as well as the Dayton Peace Process," the proclamation warned.

Bosnia-Herzegovina Presidency member from RS Momcilo Krajisnik warned in Banja Luka today against the danger of a possible duality of government and said he was concerned that Plavsic's unconstitutional decisions might lead to anarchy in the Republic, SRNA said.

Addressing members of the City Board of the Serbian Democratic Party (SDS) and the party candidates for the September elections, Krajisnik warned also against the danger of the "cantonization of entire Bosnia-Herzegovina" and attempts by certain factors to separate the western from the eastern part of the RS along geographical differences.

RS Prime Minister Gojko Klickovic, speaking at the same meeting, announced a possible revision of future cooperation with SFOR, unless they disarm and remove from the Public Security Centre in Banja Luka all those who seized the building by force.

IPTF Spokesman Liam MacDowell said on Wednesday that international organizations do not intend to expand actions against the RS Interior Ministry outside of Banja Luka for the time being, but added that this option was still open.

Speaking at a press conference in Pale, MacDowell explained today's actions in Banja Luka as part of a detailed investigation of the General Headquarters of the RS Interior Ministry. Following talks with High Representative Westendorp and Plavsic, the IPTF decided to continue with the investigation in all police stations in Banja Luka, he said.

[07] BLASKIC CASE SHEDS NEGATIVE LIGHT ON CROATIAN PRESIDENT AND HIS PARTY

Tanjug, 1997-08-19

A trial of Bosnian Croat army general Tihofil Blaskic before the Hague- based Criminal Tribunal for the former Yugoslavia sheds negative light on Croatian President Franjo Tudjman who has personally decorated the indicted, a lawyer told Tanjug on Tuesday.

Lawyer Slobodan Stojanovic represents the interests of Serb victims of the Celebici prison camp in the trial of Muslims Zejnel Delalic, Esad Landzo Zenga and Hazem Delic, and Croat Zdravko Mucic Pavo.

"By conferring on Blaskic the medal for his 'merits' and placing him at the Croatian Army Chief Inspectorate in November 1995, Tudjman practically decorated a war criminal and admitted Croatia's direct involvement in the war in the territory of Bosnia-Herzegovina," Stojanovic said.

Blaskic was accused of carrying out ethnic cleansing of central Bosnia of its Muslim population between May 1992 and April 1994, especially in the municipalities of Vitez, Busovaca, Kiseljak and Zenica.

The Tribunal has charged him with serious violation of the 1949 Geneva Conventions, violation of war conventions and crimes against humanity.

However, in addition to formal indictment of individual responsibility, Blaskic is also responsible as a commander and according to the trial so far it is highly unlikely that he will not be sentenced, Stojanovic said.

"On the other hand, the key Croatian Democratic Union (HDZ) figure in Bosnia, Dario Kordic, was the co-executor of the crimes so the Blaskic case can end up as a case against the HDZ, as the organiser of war crimes," Stojanovic said.

In the Blaskic case, evidence is being collected aimed at proving that the Republic of Croatia launched an aggression against Bosnia-Herzegovina, which is the condition for the implementation of war crimes provisions of Article 2. of the Tribunal's statute.

Under the prosecution's proposal, the Tribunal has ordered Croatia and Bosnia-Herzegovina to submit some relevant documents and subpoenaed some Croatian and Bosnian ranking officials.

In the Blaskic case, the panel of judges on July 18 decided that the Tribunal judges or panel of judges were authorised to order states and individuals, including ranking government officials, to submit documents which are necessary for the trial.

Any objections to the order for the presentation of documents, including those mentioning the jeopardising of national security, can not automatically justify a state or an individual for not acting, the panel of judges said.

Croatia has strongly objected to the Tribunal's demand to submit documents about Blaskic saying that this violated the state's sovereignty. The Tribunal's appeals council will review Croatia's appeal in September.

[08] KONTIC RECEIVED THE NEWLY-APPOINTED YUGOSLAV AMBASSADOR TO INDIA

Tanjug, 1997-08-19

Yugoslav Prime Minister Radoje Kontic received on Tuesday the newly- appointed Yugoslav Ambassador to India Cedomir Strbac.

A statement issued by the Yugoslav Information Secretariat quoted Kontic as saying that the renewal of diplomatic relations at the ambassadorial level after a six-year interruption marked the new beginning of the development of Yugoslav-Indian cooperation.

Kontic stressed India's role in international relations, saying the Yugoslav diplomatic mission to the country, which ranks tenth in the world regarding its economic potential, was of utmost importance.

Strbac said he was confident that the services of Yugoslav building enterprises would be much sought for in India, saying air and sea links would soon be established between the two countries.

He listed as the Yugoslav Embassy's priority the resumption and strengthening of Yugoslav-Indian political and economic cooperation, the statement said.

[09] INDUSTRIAL GROWTH UP 8.1% IN JANUARY-JULY

Tanjug, 1997-08-19

Industrial production in Yugoslavia went up 8.1% in the first seven months this year against the corresponding period of 1996, and up 9.7% in July against July 1996, the Federal Statistics Bureau said on Tuesday.

In Serbia, industrial production during this period went up 8.3%, and in Montenegro up 7.7%. Production increased in most areas of the industry. In the power industry, production increased 7.2%, in metallurgy 33.9%, metal processing and the electric industry 13.9%, chemical and paper industries 19.8%, and textiles, leather and rubber industries 4.8%.

The production of food items and tobacco went down 7%, wood processing 4.5%, and other areas 1.5%.

The production growth resulted in the constant moderate increase of exports, which went up 23% in the first seven months.

The value of exports was 1.192 billion dollars, with 56% of the goods going to Italy, Germany, the Russian Federation, the Republic of Macedonia, and Republika Srpska.

[10] CONSTITUTIONAL COURT RULING SAVED REPUBLIKA SRPSKA

Tanjug, 1997-08-19

Republika Srpska Parliament Speaker Dragan Kalinic said on Tuesday in Doboj that the Constitutional Court ruling was important for Republika Srpska as it had saved it as a state ruled by law.

Kalinic said there were in Republika Srpska some "screeching birds that were mistaken in believing that their dawn had come" and that made it "impossible to have normal voices heard".

Addressing the participants attending a celebration of the Transfiguration of Our Lord, Kalinic said that despite the crisis in Republika Srpska, some essential institutions have been preserved (the Government, Ministry of Internal Affairs, Ministry of Defense, Parliament). Had this not been the case, "the state, misled by the screeching birds, would deviate into chaos and agony from which there is no return".

Kalinic urged "all who are still facing a dilemma to come and enable the Republika Srpska Parliament to work normally", and underlined that much time and energy had been wasted in internal confrontations.

Kalinic added that there were "some who wish to have the confrontations and the political crisis continue, so that there can be no peace or concord among Serbs".

"This is a gamble with everything that is sacred, everything in which the lives of our best sons and daughters have been invested", Kalinic said and added he feared that "someone is once again playing the card of our discord and disunity, while many other important things are passing us by".

The most important are local elections, in which several thousand potential Serb votes will not be included in voters' lists, he said.

"While we are concentrating on ourselves, our internal disputes and political battles, we are facing a great danger of losing in the forthcoming local elections some very important municipalities in Republika Srpska, such as Brcko which is a key place for both the eastern and western parts of Republika Srpska. This is why we must put an end to internal conflicts and concentrate on removing the danger which is approaching very fast", Kalinic said.

Kalinic said international community representatives would be welcome in Republika Srpska provided "they bring peace and stability and help in economic recovery, not only now but also in the future".

"Many of them will keep pleasant and valuable memories of the Serbs and understand that they are a hospitable and friendly people, but also a proud people, a people that wish to negotiate everything and reach agreement on everything with the international community", Kalinic said.

[11] PROMOTION OF ECONOMIC COOPERATION BETWEEN YUGOSLAVIA AND THE CZECH REPUBLIC

Tanjug, 1997-08-19

Yugoslav Minister of Economy Rade Filipovic said on Tuesday evening on his return from the Czech Republic that his talks with Czech officials had been intensive and useful for the future development of bilateral cooperation.

Filipovic headed a Yugoslav economic delegation on a visit at the invitation of Czech Minister of Industry and Trade Karel Kuehnl.

The talks focused mainly on the prospects for cooperation in energy, traffic, machine-building and tourism fields, he said.

Filipovic said he had discussed with the General Manager and co-owner of Skoda-Pilsen company Ljubomir Soudek the prospects of cooperation on the Kolubara B power plant project in Yugoslavia and the prospects for Czech credits for manufacturing equipment for the power industry in Yugoslavia.

Soudek has offered another 300 million dollars as joint investments and other forms of cooperation, enabling Czech partners to take part in the Kolubara B project.

The project of a hydro-power plant on the Moraca river was presented to Czech partners who wish to take part in the tenders, Filipovic said.

Czech partners could also take part in the construction of gas storage depots of 800 million cubic meters annual capacity, and tenders will shortly be called for this project, Filipovic said.

Talks also concerned the reconstruction and revitalization of Yugoslav oil industry and joint ventures in third countries involving Yugoslav manpower and Czech experience and equipment, Filipovic said.

[12] SERBIAN PARLIAMENT APPOINTED SUPERVISORY COMMITTEE MEMBERS

Tanjug, 1997-08-19

The Serbian Parliament, at its fourth extraordinary session this year, appointed ten members of the Supervisory committee in charge of overseeing the work of political parties, candidates and the media during the 1997 electoral campaign.

Of 140 deputies present, 139 voted for the decision to set up the body which will help the holding of democratic and fair elections within the determined time frame.

Serbian minister without portfolio Ratomir Vico said the decision made by the Parliament on Tuesday completed the institutional framework of presidential and parliamentarian elections in Serbia.

Proposing candidates for half of the members of the 20-member Supervisory committee, the Serbian Government has carried out obligations from its competency to ensure that presidential and parliamentary elections in Serbia be held in democratic and fair conditions within the determined time frame, Vico said.

According to Vico, the acts proposed by the Government and passed by Parliament guarantee a full equality of participants in all phases of the electoral process and determine conditions for citizens to express freely their will and political views at direct, general and secret elections.

Pointing out that the presenting of political parties, their programs and candidates in the media is the most delicate phase of the electoral process, in view of the influence of the media on voters, Vico said that legal amendments and the Agreement on the number and duration of televised programs for political party presentation represent significant improvements. They are a further guarantee for the full equality of participants in the electoral process in the media.

An important novelty is the legal obligation, worked out in that Agreement, under which all information institutions, regardless of their form of ownership and means of financing, have the right to time both in media covering all of Serbia, and in the local media.

The Agreement with Radio-Television Serbia (RTS), open for signing by September 4, has been signed so far by 42 political parties, Vico said, stressing that he expected such agreements to be concluded also with other information institutions.

According to him, the fact that the electronic media are now able to work without difficulty during the electoral campaign, does not mean that they do not have to comply with legal obligations regarding equal conditions in informing about electoral activities and presenting of parties and candidates.

According to Vico, the electoral process for presidential and parliamentarian elections is completely transparent and carried out in conformity with democratic procedure as determined by law. The Government has for its part done everything to secure that, and that an agreement be reached on electoral conditions by all parties.

"As the Government of National Unity, we have aimed at achieving unity and consensus on issues of state and general interest. Open to citizens and the public, to parties both represented in Parliament and those acting outside Parliament, open to criticism and remarks, we have always shown a readiness for dialogue, our point of departure being that what divides us is less important than what should unite us", Vico said.

The Serbian Government, Vico said, will continue to carry out all obligations so as to secure free and democratic electoral conditions. The Government has called on political parties, citizens, on all participants in the electoral process to help create a democratic atmosphere, incite tolerance and refrain from all undemocratic activity.

Those who will not take part in the elections, who do not wish to see how their programs, policies and candidates will fare with the voters, should not obstruct others who are willing to make such a test, Vico stressed, noting that competent bodies will secure conditions for citizens to turn out and vote freely, and that every attempt of violence will be prevented as well as all other forms of undemocratic behaviour in the electoral campaign.

On behalf of the Socialist party of Serbia deputy group, Gorica Gajevic assessed that all legal, organizational and political conditions had been created in Serbia for the holding of democratic and fair elections, at which, citizens will decide which political party will have a majority in Parliament and whose candidate will win the presidential elections.

Gajevic stressed that the elections held this year will confirm once again Serbia as a stable state, in which parliamentary democracy is continuously strengthened, developed and promoted. They will also confirm Serbia as a state turned to the strengthening of FR Yugoslavia, development, economic and spiritual reforms and to improving the standard of living of citizens.

Gorica Gajevic pointed to the fact that the Supervisory committee has not been set up for lack of confidence between parties but as the result of their joint wish that no doubt be cast on electoral conditions determined democratically and on the basis of equality.

Radical party deputy group head Tomislav Nikolic welcomed the formation of the Supervisory committee and demanded that conditions be created for its members to do their job in accordance with their conscience.

Nikolic reproached the state media for giving too much time to some presidential candidates (Vuk Draskovic) and that the presidential candidate of the Radical party was not sufficiently represented in them.

Sandor Pal, Democratic Community of Vojvodina Hungarians (DZVM), pointed out that the committee should see what was the state in the media in the languages of minorities, particularly "Magyar Szo", as the only daily in the Hungarian language.

On behalf of the deputy group New Democracy, Zarko Jokanovic welcomed the formation of the committee as an additional democratic form of control of the elections.

At the Tuesday session, Serbian Parliament President Dragan Tomic informed deputies that the OSCE delegation, which will be monitoring the elections, was invited by him personally. That was done through the Yugoslav Foreign Ministry, Tomic said.

After appointing the Supervisory committee, the Serbian Parliament concluded its fourth extraordinary session.

[13] RUSSIA'S STANCE ON REPUBLIKA SRPSKA

Tanjug, 1997-08-19

Russia believes that it is still too early to draw definite conclusions on the possible effects of the recent Republika Srpska Constitutional Court ruling that President Biljana Plavsic's decision to dissolve the Parliament had been unconstitutional, Russian Foreign Ministry said in a statement on Tuesday.

The Ministry is presently studying the attitude towards the ruling within Republika Srpska and international reactions, and has initiated consultations with its partners within the Contact Group and with Bosnian Serbs, Ministry Spokesman Valery Nyestarushkin told a regular press conference.

He underlined that the Republika Srpska Constitutional Court had also recommended to the Parliament to take off its agenda the debates on the draft Electoral Law and on relieving the President from office, and that it had urged all Republika Srpska institutions and authorities to continue normal activities.

The Spokesman expressed hope that the complex problem in Republika Srpska would be overcome.

[14] MILUTINOVIC TO VISIT CHINA

Tanjug, 1997-08-19

The Federal Minister for Foreign Affairs Milan Milutinovic will pay an official visit to the People's Republic of China from 25 to 30 August 1997, at the invitation of the Vice*Premier and Foreign Minister Qian Qichan.

[15] US ENVOY MEETS BOSNIAN PRESIDENCY MEMBERS

Tanjug, 1997-08-18

Special US envoy to the Balkan region Robert Gelbard and Bosnia-Herzegovina Presidency Chairman Alija Izetbegovic and Presidency member Kresimir Zubak discussed on Monday in Sarajevo the problems hindering the implementation of the Dayton Peace Agreement.

The talk focused especially on the issues of joint currency and the creation of a Central Bank, the Law on citizenship and travel documents, and the Bosnia-Herzegovina Coat of Arms and flag.

Gelbard said he was dissatisfied with the slow process of resolving these issues.

The US envoy then left for Pale, where he met the third Presidency member Momcilo Krajisnik.

[16] OSCE RESPONDS POSITIVELY TO YUGOSLAV FOREIGN MINISTER'S INVITATION

Tanjug, 1997-08-18

Organization for Security and Cooperation in Europe (OSCE) Chairman Danish Foreign Minister Niels Helveg Petersen has responded positively to Yugoslav Foreign Minister Milan Milutinovic's invitation to send OSCE observers to Serbia's upcoming presidential and parliamentary elections scheduled for September 21, the OSCE said in a statement released late on Monday.

The statement said that Petersen had voiced satisfaction with the developments and hoped that this would step up the process started by the December 1996 Gonzalez report.

Petersen said he expected the Yugoslav Government to give all the expected support to the observer mission, the statement said.

[17] BELGRADE COMPANY WINS 6.5-MILLION-DOLLAR DEAL

Tanjug, 1997-08-18

At an international bidding for the reconstruction of a road section in Bolivia, the Yugoslav company Energoprojekt won the 6.5-million-dollar deal in the competition of seven construction companies from several countries.

Energoprojekt plans to finish the reconstruction of a 47-km section of the Cochabamba-La Paz trunk road within nine months after the advance payment, which will be effected soon.

The World Bank for Reconstruction and Development finances the reconstruction.

[18] SERBIAN PARLIAMENT NOMINATES CANDIDATES FOR MONITORING COMMITTEE

Tanjug, 1997-08-18

Candidates for the Monitoring Committee to supervise the September presidential and parliamentary elections in Serbia were nominated on Monday at a meeting between Serbian Parliament Speaker Dragan Tomic and the heads and representatives of the Assembly deputy groups, a Serbian government statement said.

The Monitoring Committee will carry out general supervision over activities by political parties, candidates, and public media regarding election activities.

The Socialist Party of Serbia (SPS) nominated Milorad Radevic, a sociologist and Director of the Serbian Archives.

The Serbian Renewal Movement (SPO) nominated Ilija Davidovic, a lawyer, Head of the Department for general and legal affairs of the Official Gazette of Yugoslavia.

The Serbian Radical Party (SRS) nominated Vesna Zobenica, an economist, a Zemun Municipal Assembly employee.

The New Democracy (ND) nominated Milenko Ostojic, a politicologist, Director General of "Vocarkoop" of Belgrade.

The Democratic Community of Vojvodina Hungarians (DZVM) nominated Janos Ceke, a chemist, Technical Director of the Industry of grinding tools of Ada.

The nominations of these candidates, and the ones proposed by the Serbian Government, will be discussed at a Parliament session on Tuesday.

The constituting of the committee contributes to the further democratization in the procedure of preparing and conducting the upcoming elections in Serbia.

It sets up a strong political and legal mechanism for monitoring the due implementation of legal and sublegal acts, agreements between all political subjects who will test their political authority by participating in the upcoming regular elections, the statement said.

[19] 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.

[20] 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.

[21] 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.

[22] 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.

[23] 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.

[24] 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.

[25] 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.

[26] 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.

[27] 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.

[28] 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.

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