Yugoslav Daily Survey, 97-08-06

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

Yugoslav Daily Survey

CONTENTS

[01] CHERNOMYRDIN INVITES KONTIC TO VISIT RUSSIA

[02] SLOVENIA LOSES CASE WITH BEOGRADSKA BANKA CYPRUS

[03] UN MAINTAINS RELATIONS WITH BOSNIAN AMBASSADOR

[04] E.U. CALLS ON ITS MEMBERS TO SUSPEND CONTACT WITH BOSNIA AMBASSADORS

[05] REPUBLIKA SRPSKA AUTHORITIES ARE IN NO WAY INVOLVED IN PRIJEDOR INCIDENTS

[06] RS DEFENCE MINISTER: RS ABIDES BY MILITARY ASPECT OF DAYTON ACCORDS

[07] WASHINGTON SUSPENDS CONTACT WITH BOSNIA'S AMBASSADORS

[08] YUGOSLAVIA'S EXPORTS TO E.U. LIKELY TO GO UP CONSIDERABLY

[09] THREE PEOPLE INJURED IN TERRORIST ATTACKS IN KOSOVO

[10] KOSOVO OFFICIAL RECEIVES GERMAN AMBASSADOR TO YUGOSLAVIA

[11] GERMAN AMBASSADOR VISITS PRISTINA UNIVERSITY

[12] US, ITALY, AUSTRIA SUSPEND CONTACTS WITH BOSNIAN EMBASSIES

[13] WESTENDORP FAVOURS SUSPENSION OF CONTACTS WITH BOSNIAN EMBASSIES

[14] UN SPOKESMAN ON BOSNIA SITUATION

[15] SERBIAN VICE*PREMIER RECEIVES AUSTRIAN AMBASSADOR IN BELGRADE

[16] WESTENDORP-BOSNIAN MUSLIM AMBASSADORS FACE LOSING THEIR JOBS

[17] SERBIAN CONSTRUCTION MINISTER VISITS KENYA

[18] KRAJISNIK: SRPSKA WILL COOPERATE WITH WAR CRIMES TRIBUNAL

[19] YUGOSLAV, LONDON CLUB REPRESENTATIVES MEET

[20] GERMANY FIRST TO FREEZE CONTACTS WITH BOSNIAN AMBASSADORS

[21] YUGOSLAV VICE PREMIER ON IMPLEMENTATION OF ECONOMIC PROGRAMME

[01] CHERNOMYRDIN INVITES KONTIC TO VISIT RUSSIA

Tanjug, 1997-08-05

Yugoslav Prime Minister Radoje Kontic on Tuesday received Russian Ambassador to Yugoslavia Yuri Kotov. In a cordial and friendly meeting, Kotov conveyed an invitation by Russian Prime Minister Victor Chernomyrdin that the Yugoslav Premier pay an official visit to Moscow, the Yugoslav Government said in a statement.

Kontic accepted the invitation to visit Moscow in the third quarter of this year and said that the promotion of cooperation with the Russian Federation was Yugoslavia's absolute priority.

In addition to an official state delegation, Kontic is also to be accompanied by a group of Yugoslav businessmen and bankers, who will discuss the promotion and expansion of concrete forms of cooperation with Russian partners.

During a two-day official visit to Moscow, Kontic and Chernomyrdin are expected to exchange views about the intensification of the comprehensive Yugoslav-Russian cooperation and sign a memorandum on the liberalisation of foreign trade cooperation between the two traditionally friendly countries. An agreement on a credit arrangement for the import of Russian equipment is also planned as well as the signing of a number of other documents that should help intensify the Yugoslav-Russian trade and economic relations.

[02] SLOVENIA LOSES CASE WITH BEOGRADSKA BANKA CYPRUS

Tanjug, 1997-08-05

After a nearly one-year trial, a Cypriot court on Tuesday decided to dismiss Slovenia's charges under which it claimed 946 million German marks deposited with the Yugoslav National Bank. Under the charges, the funds, which allegedly include Slovenian citizens' hard currency savings, were deposited in Beogradska Banka Coby in Cyprus.

The dismissal of charges puts out of force a provisional measure of July 17, 1996, under which the Yugoslav National Bank's funds in Cyprus were frozen, Beogradska Banka said in a statement.

The court also ruled that all expenses of the trial should be borne by Slovenia, which seceded from Yugoslavia in mid-1991.

The court said that it was not competent in this case, because this was a dispute between two states.

Also, Slovenia has not submitted to the court complete and true facts about its citizens' hard currency savings and thus failed to prove that Slovenian citizens' hard currency savings were deposited at the Yugoslav National Bank's accounts with Beogradska Banka Cyprus.

The Cypriot court's ruling indicates that claims by Slovenia and other former Yugoslav republics for funds deposited at the Yugoslav National Bank to which they are allegedly entitled, should be resolved within the Succession Group of the Peace Implementation Council.

[03] UN MAINTAINS RELATIONS WITH BOSNIAN AMBASSADOR

Tanjug, 1997-08-05

UN Secretary-General Kofi Annan will not deny the Bosnian Ambassador to the UN the right to consultations if he requests them, Annan's Spokesman Fred Eckhard said Tuesday at a press conference. He was answering a question whether the UN would follow the example of many countries, including United States, which have suspended contacts with Bosnian Ambassadors pending an agreement of joint Bosnian authorities on dividing up ambassadorial posts.

The suspension of contacts with Bosnian ambassadors is an issue regarding the Bosnian government and the countries pressing for the implementation of the Dayton Peace Agreement, Eckhard said.

High representative of the international community for Bosnia Carlos Westendorp had said last week at a press conference at the UN Headquarters in New York that punitive measures would be taken against Bosnia- Herzegovina if its leaders did not reach agreement on the appointment of ambassadors by August 1. The deadline was later extended to August 4, but was not respected.

[04] E.U. CALLS ON ITS MEMBERS TO SUSPEND CONTACT WITH BOSNIA AMBASSADORS

Tanjug, 1997-08-05

The European Union called on Tuesday on its member states to suspend contact with Bosnia's Ambassadors in order to pressure Bosnia's parties into dividing ambassadors' posts in keeping with the Dayton Peace Agreement.

A brief statement issued by the Foreign Ministry of Luxembourg, which currently presides over the European Union, said the suspension of contact with Bosnia's Ambassadors did not mean the suspension of all diplomatic relations with Bosnia-Herzegovina.

[05] REPUBLIKA SRPSKA AUTHORITIES ARE IN NO WAY INVOLVED IN PRIJEDOR INCIDENTS

Tanjug, 1997-08-05

The Office of Republika Srpska Member of the Presidency of Bosnia- Herzegovina Momcilo Krajisnik has issued a statment firmly dismissing any involvement of Republika Srpska authorities in incidents following the killing of Simo Drljaca and the arrest of Dr Milan Kovacevic in Prijedor. The statement released after Republika Srpska President Biljana Plavsic's interview with the Associated Press news agency said it was unacceptable to accuse the Republika Srpska Ministry of Interior and Minister Dragan Kijac for the events that represented a "spontaneous response of the Republika Srpska people demonstrating their resistance and disagreement with SFOR actions in the Republika Srpska."

"Accusing the Republika Srpska leadership is a very grave matter and can only be understood as another instrument and political means in the power- struggle in Republika Srpska," said the statement.

The statement also said that monstrous combinations aimed at eliminating certian persons from the top leadership of Republika Srpska and even its entire institutions were acts highly inappropriate for a president.

The statement expressed belief that the interview did not give an authentic interpretation of Republika Srpska President Biljana Plavsic's views and voiced hope that the president was misinterpreted by reporters.

The statement said that the President had made similar allegations before and that irrefutable proof had to be supplied for them. Otherwise, those who make such accusations are informing on their own institutions to some Western circles, which are obviously no friends of the Serb people and the Republika Srpska, it said.

[06] RS DEFENCE MINISTER: RS ABIDES BY MILITARY ASPECT OF DAYTON ACCORDS

Tanjug, 1997-08-05

Republika Srpska Defence Minister Milan Ninkovic on Tuesday informed a Western European Parliament delegation, headed by Jan Dirig Blau of the Netherlands, that the Republika Srpska had fully abided by the military aspect of the Dayton Accords. It was said that the reorganisation of the Republika Srpska Army and the reduction of armament were about to be completed.

Blau, who has visited the Republika Srpska and the Federation of Bosnia- Herzegovina to get an insight in the security situation and the need for SFOR's possible stay after the expiry of its mandate, was informed that the Republika Srpska had called for the extension of SFOR's mandate as long as the other side threatened with war.

Ninkovic said that SFOR had overstepped its mandate in Prijedor, by kidnapping people with the assistance of helicopters and armoured vehicles. He expressed hope that the situation between the Republika Srpska and SFOR, which has deteriorated after the incident, would soon be normalised.

Ninkovic also pointed at the "double standards" which the international community applied towards the Federation of Bosnia-Herzegovina and the Republika Srpska, carrying out an intensive army programme within the 'Train and Equip' operation in the Federation of Bosnia-Herzegovina while demanding a strict reduction of arms from the Serb side.

Blau expressed hope that his cooperation with Republika Srpska and Federation of Bosnia-Herzegovina authorities would result in the establishing of a balance of power and full reduction of armament in the region.

[07] WASHINGTON SUSPENDS CONTACT WITH BOSNIA'S AMBASSADORS

Tanjug, 1997-08-05

The New York Times daily said on Tuesday that, despite its decision to follow the example of its Euroepan allies, the United States had strongly criticised Westendorp. This criticism was not made in public, but the daily quoted an unidentified State Department official as saying Washington was dissatisfied with a large number of moves that Westendorp had made. The official said Westendorp did not spend enough time in Bosnia-Herzegovina at what he called the crucial point of the Bosnian crisis.

The official also said Westendorp had taken too much liberty by proposing how ambassadors' posts should be divided among Croats, Serbs and Moslems. He said the three parties should reach agreement on the issue themselves, saying Washington was against Westendorp having a final say in the matter.

Washington's decision to sever contact with Bosnia's Ambassadors following decisions to this end by Germany, France, Great Britain, Austria, Sweden and Italy, came as U.S. diplomat Richard Holbrooke was getting ready for his new tour of Bosnia and the Balkans.

New York Times said Holbrooke was to arrive in Bosnia on Wednesday, saying the U.S. administration was becoming increasingly concerned about the slow pace at which the Dayton Peace Agreement was being implemented. Holbrooke's task will not be easy, the daily said adding that Washington had criticised also Serb representative in Bosnia's three-man Presidency Momcilo Krajisnik for his decision not to attend a joint meeting with Holbrook in Sarajevo on Thursday.

[08] YUGOSLAVIA'S EXPORTS TO E.U. LIKELY TO GO UP CONSIDERABLY

Tanjug, 1997-08-05

Yugoslavia stands a good chance of increasing its exports to the European Union considerably because it is yet to fill most of its export quotas, Svetozar Krasin, secretary of the Yugoslav Chamber of Commerce Committee for economic cooperation with the world, has stated.

According to June figures released by the E.U. Commission, Yugoslav exporters have filled only 6 of the 45 export quotas which the country shares with other states emerging from the former Yugoslavia.

Favourable conditions exist for exporting some agricultural and industrial products. Better export results are expected as of September since Yugoslav exporters started using E.U. trade preferences in late May, Krasin said.

He said that, in the January-June period, Yugoslavia's trade with E.U. countries had amounted to 1.24 billion dollars and was 35 percent up on the same period last year.

the country's exports went up by 54 percent, while its imports increased by 28 percent, he said adding that the export/import ratio was 42.7 percent compared to the last year's when it was 35.3 percent.

[09] THREE PEOPLE INJURED IN TERRORIST ATTACKS IN KOSOVO

Tanjug, 1997-08-04

The Serbian Interior Ministry said in a statement on Monday that three people were injured in two terrorist attacks in Serbia's southern Province of Kosovo and Metohija on August 3 and 4.

In the first attack, which took place on the local road Podujevo*Krpimej near the village of Bradas at about 7 p.m. (1700 GMT) on august 3, terrorists ambushed and damaged a Ministry vehicle. At about 9.50 a.m. (0750 GMT) on August 4, terrorists ambushed and opened fire from automatic weapons at Ministry members who were going towards Kosovska Mitrovica in an official vehicle. The attack took place on eh Pec*Kosovska Mitrovica regional road, on the territory of the Srbica municipality.

Offices Milomir Todic and Zoran Boskovac of the Srbica Police Station wee seriously injured in the attack and Paljus Sulja of the village of Turicevac, who was also in the vehicle, received light injuries.

The Serbian interior Ministry has taken intensive measures aimed at finding the perpetrators of the attacks, the statement said.

[10] KOSOVO OFFICIAL RECEIVES GERMAN AMBASSADOR TO YUGOSLAVIA

Tanjug, 1997-08-04

Kosovo District Deputy head Veljko Odalovic on Monday received German Ambassador Wilfried Gruber. Gruber was interested in the 3+3 Group's progress regarding an education agreement and possible return of ethnic Albanian students to schools, the Information Secretariat of Serbia's southern province of Kosovo and Metohija said in a statement.

Odalovic said that as far as authorities were concerned, this year as well as in the past, Albanian students could use schools, but that it was very important that those who had persuaded them to boycott schools should accept Serbia's legal curriculums.

Much attention was dedicated to an agreement on the return form Germany of alleged asylum*seekers and it was clearly said that all Yugoslav citizens could return freely despite the fact that many of them had posed as political asylum*seekers although they had actually left the country mostly for economic reasons during the crisis and war in the neighbourhood.

The question about the joining of social life of those who have already returned to the county was answered to the effect that the sanctions against Yugoslavia, the recent war in the neighbourhood and the economic crisis presented serious problems in the employment of these citizens and that Yugoslavia's speedier return in international financial institutions would largely help revive the economy and crate possibilities for opening new jobs.

Both sides agreed that it would be very good for ethnic Albanians if they exercised their civil rights and participated in the coming elections, because in this way they would be able to enjoy their rights through the legal institutions of the parliamentary system, the statement said.

[11] GERMAN AMBASSADOR VISITS PRISTINA UNIVERSITY

Tanjug, 1997-08-04

German Ambassador to Yugoslavia Wilfried Gruber on Monday visited the Pristina University in Serbia's southern Province of Kosovo and Methoija and met with University Rector Radivoje Papovic. Gruber and Papovic reviewed the implementation of the 3+3 education agreement.

Papovic said that all solutions had to be sought within the law and that this agreement should only be understood as ethnic Albanians' readiness to respect the state education system with a single curriculum and not as a possibility for parallel education on all levels, because this would strengthen separatism in education.

Answering Gruber's question about the political status of the region's autonomy, Papovic said that ethnic Albanians already had their autonomy with clearly defined rights and obligations.

Practice has shown that any further bringing of minority rights above international norms would inevitably lead to further speratist demands. Yugoslavia, as a civil state, in which the rights of all its citizens are guaranteed, has no reason to create political autonomies, Papovic was quoted as saying.

The task of every state, including this one, is to ingrate all citizens, provide them with social and economic possibilities throughout their territory, which is best achieved through a single education system. Otherwise, we would be the only country in the world whose laws would disintegrate both the citizens and the state, the statement quoted Papovic as saying.

[12] US, ITALY, AUSTRIA SUSPEND CONTACTS WITH BOSNIAN EMBASSIES

Tanjug, 1997-08-04

The United States, Italy and Austria on Monday suspended contact with Bosnian ambassadors in an effort to pressure the joint leadership of Bosnia*Herzegovina to divide ambassadorial posts in line with provisions of the Dayton Peace Accords.

The three countries joined France, Germany, Great Britain and Sweden, which have been the first to accept international community's High Representative for Bosnia*Herzegovina Carlos Westendorps's call to all countries for severing contacts with bosnian Ambassadors until the three*member Presidency of Bosnia*Herzegovina reached and agreement on appointing new diplomatic representatives.

Reuters quoted US State Department spokesman James foly as saying in Washington that the suspension of contacts with Bosnian ambassadors would not affect economic aid to Bosnia*Herzegovina.

The inerantional community has set a deadline, expiring at midnight on Monday, for the Presidency of Bosnia*Herzegovina to reach an agreement on dividing 33 ambassadorial posts.

Diplomatic sources in Sarajevo say that the current ambassadors have been appointed by the former Muslim government of President Alija Izetbegovic. Their appointments have not been confirmed by the three*member Presidency of Bosnia*Herzegovina, set up after the signing of the Dayton Peace Accords.

[13] WESTENDORP FAVOURS SUSPENSION OF CONTACTS WITH BOSNIAN EMBASSIES

Tanjug, 1997-08-04

International community's High Representative for Bosnia*Herzegovina Carlos Westendorp on Monday proposed a suspension of contacts with embassies of Bosnia*Herzegovina until an agreement was reached on appointing ambassadors.

Spokesman for Westendorp's Office Samuel Haselock told a press conference in Sarajevo that this was part of measures the High Representative had proposed to the Steering Board for the implementation of the Dayton Peace Accords. Haselock said the suspension should be in effect until the three*member Presidency of Bosnia*Herzegovina reached an agreement on dividing ambassadorial posts.

The Presidency of Bosnia*Herzegovina, which is in charge of appointing ambassadors, has been trying for several months to establish a diplomatic network abroad, failing to reach a final agreement. All three sides have agreed that Bosnia*Herzegovina should initially have 33 ambassadors' posts, but disagreed over their national structure. Unofficially, the reaching of an agreement of the issue is hampered by Croats urging parity, although Westendorp himself had proposed earlier that a diplomatic network should comprise 13 Muslims, 11 Serbs and 9 Croats.

Westendorp also proposed other measures to the Steering Board, because, except for an agreement on embassies, the Presidency and the Council of Ministers of Bosnia*Herzegovina had failed to reach an agreement on draft laws on citizenship, passports and opening of Mostar, Tuzla and Banjaluka airports to civilian flights by August 1, as previously agreed.

Haselock said a proposal for punitive measures had been communicated to the Steering Board and that these measures were to be taken if the council of Ministers failed on Monday to coordinate stands on the laws on citizenship and passports.

The deadline set by Westendorp expires at midnight. However, judging by statements made during a break of the council of Ministers' session, it is highly unlikely that the deadline will be met. Chances are obviously poor that the stands will be coordinated on Monday, as High Representative's Deputy Gerd Wagner left the session saying in a rief statement that the Council had failed to reach an agreement and that it probably would not do so by the end of the day.

[14] UN SPOKESMAN ON BOSNIA SITUATION

Tanjug, 1997-08-04

UN spokesman Liam McDowell said on Monday at a press conference in Lukavica referring to a recent incident in Vogosca, when about 700 Muslims attacked Serb refugees, that the muslim*Croat Federation police had acted rapidly and appropriately. The Muslims attacked the town hall where a few Serb families were discussing with international community representatives and Muslim authorities the prospects of inspecting and reoccupying their homes. Several policemen were injured in the incident, McDowell said.

Referring to the trial of the Prijedor hospital director Milan Kovacevic in The Hague, the spokesman said that Kovacevic pleaded not guilty at the War Crimes Tribunal hearing, but that there had been no mention of his health condition. Kovacevic has been released form hospital and the Tribunal has not yet received any complaint regarding his health, the spokesman said.

Asked to clarify the status of Milan Marceta who has been in prison in Bihac form months, the spokesman said the UN regretted the fact that the case was taking so long, and added that the War Crimes Tribunal had examined some evidence provided by the Muslim*Croat Federation and requested clarifications on some legal points.

Reminded that the Tribunal had already rejected once the evidence provided by the Federation as unfounded and requested Marceta's release, McDowell said that the evidence had from the outset been considered insufficient and that the Tribunal had consequently requested additional data after which it would announce its decision. Additional information has been provided, but the Tribunal has not yet made its decision public, he said without disclosing the legal points in question.

SFOR spokemsna John Blakely said that the Force had monitored 57 military movements, seven by Republika Srpska Army, 31 by the Muslim Army and 12 by the Croat Defence council forces. It also inspected last week*end nine arms depots of the Republika Srpska Army, 13 of the Muslim Army and 14 of the Croat forces.

[15] SERBIAN VICE*PREMIER RECEIVES AUSTRIAN AMBASSADOR IN BELGRADE

Tanjug, 1997-08-04

Serbian Vice*Premier Ratko Markovic received on a farewell visit on Monday Austrian ambassador in Belgrade Michael Weninger. Markovic thanked Weninger for his efforts in promoting relations between Yugoslavia and Austria, wishing him success in his new post.

Weninger welcomed the promotion of Yugoslav*Austrian relations, saying he was confident that they would continue to develop and diversify speedily.

[16] WESTENDORP-BOSNIAN MUSLIM AMBASSADORS FACE LOSING THEIR JOBS

Tanjug, 1997-08-03

The ambassadors of Bosnian Muslims in nearly 30 countries who claim to represent Bosnia-Herzegovina may be out of a job tomorrow. The High Representative of the international community for civilian issues in Bosnia Carlos Westendorp has confirmed that the deadline for appointing Bosnia- Herzegovina ambassadors had been extended until Monday, August 4, after which Bosnian diplomatic representatives will apparently no longer be recognized, Associated Press reports from Sarajevo.

Westendorp blamed Bosnian Muslims and Croats for hindering an agreement on the appointment of ambassadors, AP says, noting that Bosnian Serbs have no ambassadors anywhere in the world.

At a press conference held at the UN last week following Security Council consultations, Westendorp had threatened Bosnia-Herzegovina authorities with sanctions if they did not comply with the August 1 deadline for dividing up ambassadorships, set by the Contact Group at the recent meeting in Sintra, Portugal.

The same deadline was given also for reaching an agreement on citizenship and travel documents.

If Muslims and Croats do not cease hindering such agreements, about 30 countries and the UN will break all contacts with the current ambassadors as they do not officially represent Bosnia-Herzegovina, Westendorp said.

[17] SERBIAN CONSTRUCTION MINISTER VISITS KENYA

Tanjug, 1997-08-02

Serbian Minister of Construction Branislav Ivkovic, who heads a Yugoslav state and business delegation on a visit to Kenya, met in Nairobi the Assistant UN Secretary-General and Habitat Executive Director Vai Ndau.

Ivkovic informed Ndau of Yugoslavia's program for the settlement of refugees and expelled persons, underlining that Yugoslavia had made an inestimable contribution to the establishment of peace in the region of the former Yugoslavia, thus preventing another exodus of refugees, and had accommodated over 650,000 refuges in most difficult conditions, Serbian Radio-Television (RTS) reports.

This is why assistance of Habitat experts would be precious in obtaining international community approval and funding for Yugoslavia's refugee settlement program, which would provide a lasting solution for many refugees who wish to remain in the Federal Republic of Yugoslavia, Ivkovic said.

Expressing his appreciation of Yugoslavia's endeavors in this regard, Ndau said Habitat would fully support the realization of the program and other similar projects with humane goals.

Providing funds for Yugoslavia's program of settling refugees and expelled persons is essential and necessary, and the UN member-states and system must provide aid to Yugoslavia in this great endeavor, Ndau said, and added that Habitat would do its utmost to back Yugoslavia's interests in dealings with the international community.

Minister Ivkovic and his delegation met later in the day the Kenyan Foreign Minister Kalonzo Musioka and the Kenyan Finance Minister. Kenyan officials expressed their wish to raise bilateral diplomatic relations to the level of ambassadors and to promote bilateral cooperation in all fields.

Both sides noted that all cooperation protocols and documents signed in the past by the two countries should be updated and that new agreements should be signed on trade, transport, preferences, avoidance of double taxation and investment protection.

[18] KRAJISNIK: SRPSKA WILL COOPERATE WITH WAR CRIMES TRIBUNAL

Tanjug, 1997-08-01

The Republika Srpska member of the Bosnia-Herzegovina Presidency Momcilo Krajisnik told Tanjug that the arrests of people according to secret lists and SFOR activities beyond its precisely pre-determined mandate were strongly condemned by the Republika Srpska people and practically hindered the implementation of the Dayton Peace Agreement.

Underlining that Srpska leadership and people would not tolerate or endorse war crimes, Krajisnik said that any person guilty of such crimes must be punished accordingly, but that their guilt must be precisely and objectively established.

Radovan Karadzic, for instance, is not considered a war criminal by the people, but Republika Srpska will not object to an arrival of War Crimes Tribunal judges to carry out an investigation in Republika Srpska, whose Government and institutions will provide them with the necessary evidence, Krajisnik said.

Krajisnik proposed that preliminary investigation be carried out in Republika Srpska, to be followed, if necessary, by a trial under the full supervision of the War Crimes Tribunal and any relevant international community institutions.

The Republika Srpska people and authorities could never amnesty anyone who had committed a crime, but strongly oppose the strong doze of politics in the Tribunal's decisions. Srpska's offer provides an opportunity to disprove the widely held view that the Tribunal is not working independently but is acting in line with a specific policy, Krajisnik said.

Referring to the situation in Republika Srpska, Krajisnik said the crisis was serious and had been provoked mainly by President Biljana Plavsic. The constitutional crisis is a result of President Plavsic's attempts to appoint a man to her liking as minister of internal affairs. When she did not succeed, she turned not only against the police that she accused of criminal activities, but also against the members of Srpska leadership who did not agree with her moves, Krajisnik said.

Krajisnik said he did not wish to deny President Plavsic's merits, but noted that her recent decisions were detrimental to the state and its interests. He added that he was regretfully not sure that a compromise could be reached but that he was nevertheless ready to pursue talks with the President. According to Krajisnik, the crisis and the confrontation over prerogatives cannot be resolved by the Constitutional Court. The only solution would be that President Plavsic return to the policy she had had followed, to the party whose candidate she had been and to the state she represented.

Dualism of power will bring nothing good as it would be intolerable to have the President of the Republic advocate one option and the government another, although they belong to the same political party, Krajisnik said. If she continues acting this way, President Plavsic will isolate herself, Krajisnik said and reiterated he was ready to continue the dialogue with her. The policy being followed now by President Plavsic is not her own, she is an unconscious advocate of a policy contrary to the interests of Republika Srpska, created by powers who want to jeopardize or nullify everything that the Serb people had obtained in Dayton, above all a high degree of independence, Krajisnik said.

Referring to relations with SFOR, Krajisnik said that they were correct in general and that attempts were being made to overcome the animosity between the Srpska people and SFOR in order to restore the good cooperation with the force that had brought peace to the region.

Referring to the joint Bosnia-Herzegovina institutions, Krajisnik said a parity of the entities and a consensus in decision-taking had been established within the institutions, which means that nothing can be done without the approval of Republika Srpska.

The Muslim idea of a single Bosnia is gradually failing as expected, as the Muslims are in fact the greatest opponents of a single Bosnia but do not dare to say so, Krajisnik said.

The Serbs will not act against Bosnia-Herzegovina, although the people would still prefer a unification with Serbia and Montenegro. However, as this is not a realistic possibility, Republika Srpska will comply with the Dayton Agreement and maintain parallel relations with the Federal Republic of Yugoslavia, Krajisnik said.

Commenting the forthcoming visit of the principal architect of the Dayton Agreement, Richard Holbrooke, to the Balkans, Krajisnik said his mission would help accelerate the implementation of the Agreement.

[19] YUGOSLAV, LONDON CLUB REPRESENTATIVES MEET

Tanjug, 1997-08-01

Yugoslav representatives and a delegation of the international coordination committee of commercial banks, including the Societe General and West Deutsche Landes Bank co-presidents and Chase Bank economic experts, met in Belgrade on July 30-August 1. A Yugoslav Government statement said that progress had been made in economic preconditions determining the capacity of debt payment, which would be used in the coming talks in late August.

During the talks, the London Club representatives received additional information about the Yugoslav balance of payments, inflow and outflow of funds and other important financial projections, which completed the economic package which the Yugoslav delegation had presented at the previous meeting in London.

In the meantime, experts will continue with further consultations, the statement said.

[20] GERMANY FIRST TO FREEZE CONTACTS WITH BOSNIAN AMBASSADORS

Tanjug, 1997-08-03

German Foreign Minister Klaus Kinkel announced officially Sunday that diplomatic representatives of Bosnia-Herzegovina in Germany were boycotted as of yesterday, Saturday. Germany is the first country to take such a step.

A statement issued by Kinkel's cabinet says that all contacts were officially frozen as of Saturday, in compliance with the request of the High Representative of the international community for Bosnia Carlos Westendorp, who said such measures would be taken if Bosnian authorities did not reach agreement by August 1 on dividing up Bosnia-Herzegovina ambassadorships.

Kinkel's statement explains that the freezing of contacts was due to Sarajevo's destructive policy, but avoids stating that Muslim and Croat politicians are to blame for the non compliance with the commitments made last May 30 in Sintra, as Westendorp said Saturday.

Kinkel said that 1.2 billion dollars had been earmarked recently in Brussels for Bosnia's recovery, and added that the West's patience was running out as the Sarajevo politicians have not yet reached agreement on the tasks set by the international community.

Bonn's strong criticism of the avoidance of responsibility, albeit without directly naming the guilty side, seems to have hit the target, as all current Bosnian ambassadors come from the Muslim-Croat Federation and the entire funds for recovery have been earmaked for the Federation only.

[21] YUGOSLAV VICE PREMIER ON IMPLEMENTATION OF ECONOMIC PROGRAMME

Tanjug, 1997-08-01

Yugoslav Deputy Prime Minister Nikola Sainovic said on Friday that the Government's economic programme for this year was being implemented with success. "Industrial production is growing, exports in the first seven months of this year went 29 percent up on the same period last year, the living standards improved, prices are stable and the seven-month inflation amounts to 3.3 percent," Sainovic told a news conference.

This confirms that this year's economic policy is correct, he said and added that the Yugoslav and republican Governments would continue with intensive activities aimed at preserving the stability of prices and the national currency, the dinar, intensifying foreign trade, ensuring regular and sufficient supply of the market and consistent implementation of economic and political reforms.

Sainovic said that economic processes had been slower than expected in the first quarter but that they had significantly improved in the second quarter and that a more marked increase of exports was expected in the third quarter, both because of a normalisation of relations with the international community and of the effects expected from exports to the European Union under the trade preferences regime.

Speaking about public consumption, Sainovic said that there was a problem with the dynamics of inflow of funds in the federal budget and that measures would be taken on the federal and republican levels aimed at ensuring a more regular inflow of funds in the federal budget.

Speaking about Yugoslavia's international position, Sainovic said that the country had signed about 170 bilateral and multilateral agreements, which showed that the normalisation of Yugoslavia's relations with the world and former Yugoslav republic was improving.

Asked about an alleged blockade of the transport of goods on the boundary between Serbia and Montenegro, Sainovic categorically denied the term "blockade" and said that there was just a stricter control of the legality of the tranport of goods throughout the country, aimed at putting an end to the so-called grey economy. "This is just the control of illegal transfer of goods and under no circumstances can it be described as a 'blockade'. Not a single legal transport is jeopardised through this control, which lasts ten minutes at the most," he stressed.

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