Yugoslav Daily Survey 96-01-03

Yugoslav Daily Survey Directory

From: ddc@nyquist.bellcore.com (D.D. Chukurov)

3 January 1996

YDS-1050

CONTENTS

[A] NEW YEAR'S MESSAGES

[01] F.R.Y. PRESIDENT: STEADFAST POLICY BRINGS PEACE TO SERB PEOPLE

[02] SERBIAN PRESIDENT: 1996 WILL BE YEAR OF ECONOMIC RECOVERY

[03] MONTENEGRO PRESIDENT: 1995 WAS THE YEAR OF PEACE

[B] INTERVIEW OF THE YUGOSLAV PRIME MINISTER

[04] PEACE IN FORMER YUGOSLAVIA - EVENT OF THE YEAR

[A] NEW YEAR'S MESSAGES

[01] F.R.Y. PRESIDENT: STEADFAST POLICY BRINGS PEACE TO SERB PEOPLE

'For the citizens of the F.R.Y. it is great relief and joy that the entire Serb people can spend the new year's holiday in peace, and especially the citizens of the war-ridden Republika Srpska,' said Lilic in his message.

'In recent years, even in circumstances like a new year, when all of us ought to be joyous and festive, we have had to prove that the F.R.Y. is pursuing a policy aimed at peace and equality of the nations which had been in conflict. We have had also to keep in mind the need to persevere on this road and, in concord and solidarity, to hold out against all sanctions-induced hardships,' said the message.

'In the F.R.Y., although we have preserved peace, our citizens were sympathizing with the sufferings of their compatriots, doing their utmost to help them although they were themselves confronting problems that were not at all easy,' the message said.

As was said in the message, following the completed peace talks in Dayton and Paris, where the entire international community paid tribute to the just and steadfast policy of the F.R.Y. leadership, which had contributed decisively to the successful ending of these talks, what is ahead now is the F.R.Y.'s return to all international institutions, where, on the footing of equality, it should retake the place to which it is objectively entitled.

'For the peace agreement to be implemented down to its last item, the F.R.Y. is prepared to cooperate, in the fullest meaning of the term, with all the factors of the international community which guarantee this process, because peace has been and remains to be the objective and the inspiration of the overall policy,' said the message.

As indicated in the message, in the year ahead, the F.R.Y. faces the great and responsible tasks of economic reconstruction, and their accomplishment will require a great deal of work, endeavour and social solidarity from the leaderships, in the first place, as well as from every individual citizen.

'At an accelerated pace, we have to make up for what has been missed, to bridge technological lagging behind, and to generate conditions for the full economic and cultural upturn and for the inclusion into world integration streams,' the message said.

'We have to accomplish all these tasks with one basic aim - to raise the standard of living of all citizens, to improve the living conditions for the socially most vulnerable sections, and hence to create conditions for life worthy of man at the threshold of the twenty-first century,' said Lilic in his message, wishing all citizens of the F.R.Y. personal and family happiness and business success.

[02] SERBIAN PRESIDENT: 1996 WILL BE YEAR OF ECONOMIC RECOVERY

The message goes as follows:

'Citizens of Serbia, I would like to wish you a happy new year with justified optimism. The forthcoming year should be better and more successful, i.e. happier than the previous ones.

In this year, the most important turningpoint for all nations and peoples in this region has been achieved - a peace has been reached. You are all aware that in the past years the three top priorities of our policy have been: peace, economic development and the struggle against crime. Peace has been achieved. The suspension of the sanctions has liberated economic development from all restraints and obstacles, and we are initiating a merciless struggle against crime and the grey economy.

I expect 1996 to be a year of economic recovery, of rising employment, higher living standards, all of which will also create conditions for a successful and comprehensive cultural development. I am certain that all citizens of Serbia will contribute to the development of their country at schools and universities, in the factories and the fields, everywhere where efforts should be made to make our country more successful, prosperous and a happier place for all its citizens and the peoples living here. This will be a year which will see the start of a mass return of refugees to territories from where they have been ousted by pressure and the violence of war.

I expect the process of their return to gain in intensity especially following the first free democratic elections in the Republika Srpska and the Muslim-Croat federation which will create democratic institutions and normalize the situation in this region.

Our overall economic recovery, our total development is at this moment in our hands.

I am certain that everyone will do their best at work to give their maximum contribution to the development and success of our country.

I wish you a happy new year.'

[03] MONTENEGRO PRESIDENT: 1995 WAS THE YEAR OF PEACE

In his best wishes message to Montenegrin citizens on the occasion of new year, Bulatovic said the war in the former Yugoslavia could not be stopped without a joint and decisive action of the entire international community, as was demonstrated by the recent peace conferences.

Many countries have only now understood the reasons for war in the former Yugoslavia and have spared no effort to send troops for the latest and final peace mission, he said.

'Our duty is to help them, as their intentions are pure and noble, and this is why we must also forgive them for their mistakes, either towards us or others', Bulatovic underlined.

Bulatovic urged the people in Montenegro and the entire Federal Republic of Yugoslavia to join efforts once again so that all tasks may be completed successfully and more easily.

With the lifting of sanctions everything will be better and easier, but nothing must be taken for granted, Bulatovic said in his new year's message.

[B] INTERVIEW OF THE YUGOSLAV PRIME MINISTER

[04] PEACE IN FORMER YUGOSLAVIA - EVENT OF THE YEAR

He said the most important political goal at present was the implementation of the Bosnia agreement, reached in Dayton and signed in Paris, and the Croatian-Serb agreement on the Srem-Baranja region.

He said that a full lifting of the U.N. sanctions against Yugoslavia would be a major contribution to the peace process and added that this might take place in the first three months of next year.

One of the main objectives in 1996 is Yugoslavia's full reintegration into the international community, primarily the United Nations and the Organization for Security and Cooperation in Europe, and a normalization of relations with the International Monetary Fund, the World Trade Organization and the European Union, Kontic said.

He said that a normalization of relations with the former Yugoslav republics, particularly a restoration of their economic ties, was one of the important goals for the future, as well as the country's reconstruction and economic recovery and settling of the humanitarian problems relating to refugees and displaced persons.

'Yugoslavia's reintegration into the international community has already begun this year and its continuity is recognized by a growing number of countries,' said Kontic, adding that Yugoslavia was returning to the world market.

The Prime Minister said that Yugoslavia had this year achieved results that were objectively possible to achieve under the circumstances, i.e. under the tough regime of international sanction.

According to Federal Government estimates, the 'social product' (approximately GNP) in Yugoslavia this year rose six percent and industrial production four percent, while agricultural production decreased three percent.

Asked about the Government's economic program for 1996, Kontic said that 'the suspension of sanctions has created a lot of space for stepping up domestic economic activities and expanding foreign trade.'

'The Federal and Republican Governments, as well as the National Bank of Yugoslavia, reacted quickly to the suspension of the sanctions and immediately adjusted their concept of economic policy to the new situation,' he said, adding that a complete opening toward foreign markets was planned.

The new economic concept includes a liberalization of foreign economic ties, a sound monetary policy (i.e. convertibility of the dinar), free prices and salaries, and free forming of credit and debit rates, Kontic said.

He said an inseparable part of the economic policy would be a firm budgetary framework, i.e. a commitment to finance public expenditure solely from sound economic sources.

Kontic said export had to be made the pillar of Yugoslavia's overall economic activity.

The policy also includes structural changes, ownership transformation and improvement of the living standard and social welfare, Kontic said.

The new economic program should secure a 12.5 percent growth of the 'social product,' a 10.5 percent rise of industrial production, three percent rise of agricultural production and over 50 percent export increase.

A 50 percent export rise is the necessary condition for even a modest growth of the 'social product' next year, Kontic said.

Asked about the funds necessary to revive slack economy, Kontic said that relatively small funds would suffice in securing a gradual recovery.

He said that a significant influx of foreign capital could not be expected in the initial period after the suspension of the sanction and added that measures should be taken to normalize relations with the IMF and the World Bank.

'After that, we can count on free access to the world capital market,' Kontic said, stressing that the Federal Government was prepared to start talks on normalizing relations with those financial institutions.

Asked about the Government's stand on the initiative taken by some domestic political forces for Yugoslavia to join the Partnership for peace program, Kontic said that 'the Federal Republic of Yugoslavia has never cooperated with any military bloc.'