Tanjug Daily News Review, 96-05-16

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From: Tanjug, Yugoslavia, via Serbian Unity Congress <http://www.suc.org/>

May 16, 1996
NEWS AGENCY - TANJUG
DAILY NEWS REVIEW

CONTENTS

[01] U.N. CONCERNED ABOUT REPLACEMENT OF REPUBLIKA SRPSKA PRIME MINISTER

[02] ARGENTINIAN ARMS TO CROATIA - CROATIAN POISON GAS TO SOUTH AFRICA

[03] FRANCE CONCERNED ABOUT DISMISSAL OF RS PREMIER KASAGIC

[04] CZECH OFFICIAL ON POSTPONEMENT OF CROATIA'S ADMITTANCE IN COUNCIL OF EUROPE

[05] REPUBLIKA SRPSKA CABINET TO BE CHAIRED BY VICE PREMIERS

[06] YUGOSLAV PREMIER: GOVERNMENT HAS NO CONFLICT WITH NATIONAL BANK, BUT WITH ITS GOVERNOR AS AN INDIVIDUAL

[07] HAGUE COURT TO RETURN FORMER REPUBLIKA SRPSKA SOLDIER TO YUGOSLAVIA

[08] YUGOSLAV PARLIAMENT LOWER, UPPER HOUSES OUST NATIONAL BANK GOVERNOR

[09] KINKEL ARRIVES IN BELGRADE

[10] YUGOSLAV AND GERMAN FOREIGN MINISTERS BEGIN TALKS

[11] KASAGIC'S DISMISSAL IS A BAD AND RECKLESS MOVE, RS PARTY LEADERS

[12] MUSLIMS WRECK SERB MONUMENTS AND DEMOLISH A CHURCH

[13] ROMANIAN PRESIDENT ILIESCU ARRIVES IN YUGOSLAVIA

[14] MILOSEVIC RECEIVES KINKEL

[15] KLEIN: SERBS' STRENGTH LIES IN THEIR REMAINING IN EASTERN SLAVONIA

[16] BILDT, KASAGIC: WORLD COMMUNITY REFUSES TO RECOGNISE ILLEGAL ACTS

[17] KASAGIC: PARLIAMENT DECIDES ON DISMISSING PRIME MINISTER

[18] YUGOSLAV AND GERMAN FOREIGN MINISTERS ASSESS POSITIVELY NORMALIZATION OF YUGOSLAV - E.U. RELATIONS

[19] ILIESCU'S VISIT TO BELGRADE MAJOR STEP IN BILATERAL RELATIONS

[20] SUCCESSFUL POLICY OF 'SMALL STEPS' IN NORMALIZATION OF YUGOSLAV-CROATIAN RELATIONS

[21] SOLANA: WORLD WILL CONTINUE CLOSE COOPERATION WITH BOSNIAN SERB PRIME MINISTER

[22] MILUTINOVIC: TALKS WITH KINKEL ARE IMPORTANT FOR FUTURE RELATIONS

[23] YUGOSLAV-U.N. AGREEMENT ON COOPERATION WITH HAGUE TRIBUNAL SOON

[24] MILOSEVIC RECEIVES SOLANA AND JOULWAN

[25] YUGOSLAV, GERMAN FOREIGN MINISTERS ON TALKS IN BELGRADE

[26] MONTENEGRIN PRESIDENT, GERMAN FOREIGN MINISTER MEET

[27] YUGOSLAV AND ROMANIAN PRESIDENTS OPEN TALKS

[28] MILOSEVIC, KINKEL DISCUSS PROMOTION OF BILATERAL RELATIONS

[29] FIRST SERB-CROAT TRADE AGREEMENT

[30] BUHA: HASTY STATEMENTS BY INTERNATIONAL POLITICIANS ON OUSTING OF KASAGIC

[31] CHINA FOR YUGOSLAVIA'S SPEEDY RETURN TO INTERNATIONAL COMMUNITY

[32] CROATIAN REFUGEES FROM BOSNIA REFUSE TO MOVE IN HOMES OF EXPELLED SERBS

[33] SOLANA GIVES MESSAGE TO MILOSEVIC

[34] SERBIAN GOVERNMENT: KASAGIC'S OUSTING AGAINST INTERESTS OF REPUBLIKA SRPSKA

[35] YUGOSLAV GOVERNMENT: DISMISSAL OF R.S. PREMIER ILLEGAL AND UNDEMOCRATIC

[36] KINKEL: IT IS REALISTIC TO EXPECT YUGOSLAVIA'S REINTEGRATION IN INTERNATIONAL COMMUNITY

[37] GERMAN FOREIGN MINISTER KINKEL LEAVES BELGRADE

[38] BULATOVIC: NEW ERA IN YUGOSLAV-GERMAN RELATIONS

[39] YUGOSLAV AIRLINES JAT INTRODUCES REGULAR FLIGHTS TO SKOPJE

[40] PRESERVING STABILITY OF NATIONAL CURRENCY - PRIMARY TASK OF YUGOSLAV CENTRAL BANK

[41] SERBIAN, MACEDONIAN BUSINESSMEN ADVOCATE TRADE LIBERALIZATION

[01] U.N. CONCERNED ABOUT REPLACEMENT OF REPUBLIKA SRPSKA PRIME MINISTER

nato secretary-general javier solana has rejected the ousting of rs prime minister rajko kasagic.

solana told a press conference in luxembourg that he considered rs president radovan karadzic's decision to oust kasagic as invalid. 'i take no account of his (karadzic's) declarations,' he said.

'i will continue with my scheduled visit to banja luka with the prime minister of republika srpska.' solana said. he said kasagic was still the only person in the republika srpska with whom he would meet.

[02] ARGENTINIAN ARMS TO CROATIA - CROATIAN POISON GAS TO SOUTH AFRICA

responding wednesday evening to questions posed by members of the argentinian congress national defense council and to accusations that arms were illegally sold to croatia, defense minister oscar camilion said he suspected that britain sold the weapons to unidentified intermediaries who then sold it to croatia, ap from buenos aires reported.

'i'm not accusing britain of any direct operation', camilion said. but, he said, it's logical that these arms which were seized in the falklands were sold to go-between and then on to zones of conflict. he added that is how it was possible that the weapons appear at a military parade in zagreb, capital city of croatia.

opposition parties in the argentian congress demanded repeatedly in the last few days minister camilion's resignation on charges that argentina in 1992, at the time when it had its contingent within the u.n. peacekeeping forces (unprofor), sold to croatia 6,500 tons of arms, violating a united nations embargo.

according to available information, the arms include 36 heavy artillery pieces, more than 35,000 fal automatic rifles, pampero short-range missiles, mines, grenades and other munitions.

at the same time as the arms affair in argentina, the british agency reuters reported the surfacing of another scandal from 1992 involving racist south africa. an investigation has proved that the apartheid regime had paid zagreb, in 1992, 1.6 million dollars for the purchase of an exceptionally sensitive substance necessary for the production of chemical arms.

the sum was paid as the first installment for a chemical substance banned under international conventions and a time of a several decade long u.n. embargo on deliveries of any kinbd of military or strategic or tactical equipment to the apartheid regime.

activist of the south african movement for fighting apartheid barbara hogan said the chemical arms were supposed to be used by the racist army against guerrillas of the african national congress (anc).

evidence of covert deals started surfacing in public after the downfall of the racist regime in 1994 and jan swanepoel, chief of the government investigation bureau for grave trade offences said thursday that all the leads of the investigation about covert deliveries of chemical arms pointed to croatia.

a classified file of the racist regime's defense ministry about the purchase of chemical arms in croatia, coded 'file b', is accompanied by a memo saying that in view of the nature of the chemical substance, strict international control of its implementation as well as international implications of revealing covert deals with croatia, the most clandestine possible means of delivery and payment have to be found.

the reuters report drew attention especially to the payment carried out on an account in zagreb by the end of 1992, one year after the authorities of the still existant sfry confiscated in september 1991, 19 tons of arms and ammunition sent by south africa to croatian separatists.

[03] FRANCE CONCERNED ABOUT DISMISSAL OF RS PREMIER KASAGIC

france calls on the republika srpska and all signatories of the dayton peace agreement to actively take part in its implementation and favour all those who may be deemed as responsible and acceptable to the international community, doutriaux said.

[04] CZECH OFFICIAL ON POSTPONEMENT OF CROATIA'S ADMITTANCE IN COUNCIL OF EUROPE

bratinska was speaking after a meeting with former muslim sarajevo government prime minister haris silajdzic, who now heads the party for bosnia-herzegovina.

bratinska quoted silajdzic as saying that he believed that one of the biggest problems in the implementation of the bosnia peace agreement was the preservation of bosnia's ourside borders 'primarily from croatia' and that he felt the need for international pressure in this context.

[05] REPUBLIKA SRPSKA CABINET TO BE CHAIRED BY VICE PREMIERS

the cabinet appointed foreign minister aleksa buha member of the joint civilian committee for the implementation of the dayton accords for bosnia and coordinator of relations with the multinational peace implementation force (ifor) and the international community.

republika srpska president radovan karadzic informed the cabinet that he had relieved of duty prime minister rajko kasagic in order to protect the constitutional order and integrity of the republika srpska and secure the implementation of the adopted policies.

officials of international organizations strongly criticize karadzic's decision to dismiss kasagic.

[06] YUGOSLAV PREMIER: GOVERNMENT HAS NO CONFLICT WITH NATIONAL BANK, BUT WITH ITS GOVERNOR AS AN INDIVIDUAL

yugoslavia badly needs foreign capital and cooperation with international financial organizations, pimarily the international monetary fund (imf) and the world bank, and the government does not believe different in any stand, kontic said.

the prime minister underscored that the government had not sat idle in the past period and had not waited for the imf to address it to normalize relations, but had worked on preparing five standard economic projects in parallel with the activities on regulating its status in the imf.

the fund asks for these projects, he said, when it decides on new financial arrangements.

kontic pointed out that, under the constitution, only the yugoslav government is responsible for relations and is authorized to establish stands for such talks, which was done already in early 1993, when the national bank governor was a different official.

kontic said yugoslavia had at that time accepted the economic conditions set by the imf executive directors for legal-formal succession of imf membership, to participate with 36.52 percent in the overall assets and liabilities of the former federation, to carry out all statutary articles of the imf and settle all due obligations, but that it had at the time raised the issue of continuity.

'we said that our option for 36.52 percent could not be a precedent for regulating the status of the federal republic of yugoslavia in any other international financial or trade organization and that this especially could not be a prejudgement of the debate within the group for succession of the geneva conference,' kontic specified.

however, he said, the normalization of relations with the imf did not take place because of a fourth condition -- that the imf board of executive directors decide if the federal republic of yugoslavia can meet its financial obligations or not and be a member.

'it is evident that this was a purely political decision, since the united states practically dominates the imf, in fact the board of executive directors,' he said.

kontic underscored that yugoslavia's proposal that the deadline of june 14 for regulating relations with the imf be extended to dec. 14, does not mean urging that the talks resume only after six months.

this request was sent only as security in case relations with the imf were not normalized until june 14, since 'we would then be treated not as a country which legally-formally inherits imf membership, but as a completely new country,' kontic said.

the request for an extension of this deadline does not mean that yugoslavia shall not normalize relations with the fund already in july, or that this should not be done, he pointed out, adding that governor avramovic had also taken part in working out the platform for talks with the imf, except in march this year when he was abroad for a longer period.

kontic said he was confident the imf letter dated may 8 opened prospects for a continuation of talks with the fund. he reiterated that it was the government's stand that there should be no insistence on economic continuity and that the question of political and legal continuity be resolved in the united nations.

the yugoslav prime minister said the government had opted for the alternative of using facilities for debt servicing with the paris and london clubs, because it was their practice to grant 20-percent off a debt at the start and subject the remainder to reorganization.

kontic accused governor avramovic of having misinformed the public on this issue, when he said that the government wanted to sell the debts at 20 percent, while their market value was allegedly about 50 percent.

kontic denied avramovic's claims that the government wanted immediately to pay the fund 104 million of the debt from its reserves, and the world bank a 1.1-billion dollar debt, even though yugoslavia's hard currency reserves stand at 300 million dollars.

kontic said 'the platform clearly states that the only possible way to pay debts is through their refinancing.'

[07] HAGUE COURT TO RETURN FORMER REPUBLIKA SRPSKA SOLDIER TO YUGOSLAVIA

investigative proceedings against kremenovic have been completed and he is no longer needed by the court as a witness, so that he will shortly be returned to the federal republic of yugoslavia, the court statement said.

the second suspect in this case, also former rs army member drazen erdemovic will face the court council on may 28. he is suspected of possible war crimes.

yugoslav authorities extradited kremenovic and erdemovic at the request of the hague tribunal on march 30 as witnesses.

erdemovic and kremenovic were arrested in yugoslavia after they gave an interview to the fernch daily le figaro in which erdemovic said he had committed crimes against muslims near the town of srebrenica in eastern bosnia-herzegovina last summer.

the court has also asked yugoslav authorities for additional documentation on erdemovic and his possible participation in the events in srebrenica last summer, the court said on wednesday.

[08] YUGOSLAV PARLIAMENT LOWER, UPPER HOUSES OUST NATIONAL BANK GOVERNOR

all opposition mps who took part in the discussion on the dismissal motion in both parliament houses spoke in favor of the governor, while all mps from the ruling socialist party of serbia and the democratic party of socialists of montenegro criticized the national bank for not being sufficiently in the service of the national economy.

serbian agriculture minister and federal mp ivko djonovic tabled the motion for avramovic's dismissal tuesday after six members of the national bank council demanded the upper house dismiss either them or the governor, saying that further cooperation with the governor was impossible.

djonovic said that avramovic had parted with every person he should be cooperating with and had claimed the right to implement certain federal government decisions and discard others, thus creating a serious problem in the functioning of the central monetary authority, especially in the agriculture sphere.

djonovic said that avramovic should be blamed the most for the difficult situation in agriculture, adding that the national bank had been asked to direct only part of the credits for the economy to agriculture, but that it had 'categorically rejected' the request.

he also criticized the national bank for not cutting interest rates, emphasizing that too high interest rates on credits 'erode the economy' and that it was ridiculous to say that interest rates cannot be cut unless the budget is reduced.

in reply, avramovic denied the statement that credits for the economy can be redirected to agriculture without adverse economic consequences, adding that 'the incompetence of agriculture to repay loans last year caused the rise in interest rates.'

calling for a drastic reduction of the budget and sales of part of the state property, avramovic said that 'if taxes and budgets are not cut, only foreign credits can maintain the stability of the dinar.'

yugoslav vice premier and finance minister jovan zebic said that the country could not place monetary power into the hands of one man.

accusing avramovic of overstepping authority, zebic said that under the law on the national bank and the yugoslav constitution, the government had the right to conduct the country's economic policy, including the credit and monetary policies, and that the national bank should help implement it.

supporting the governor, opposition mps said that the dispute between avramovic and the government had been caused by his resolute decision not to issue fresh money to secure the government in power or prepare elections, adding that 'the current government will be responsible for what will happen in the towns of serbia tomorrow.'

opposition serbian democratic party spokesman milorad jovanovic told reporters during a break in the session that he feared the consequences of the governor's dismissal could be a return to the inflationary economy and a delay in talks with international financial bodies.

speaking at a separate news conference, president of the opposition civic alliance of serbia vesna pesic said that it was absurd that a man who had managed to stabilize and save the local currency and created a program for the reconstruction of the economy had to leave his office.

[09] KINKEL ARRIVES IN BELGRADE

kinkel was welcomed at belgrade airport by his yugoslav counterpart milan milutinovic and other officials.

kinkel will be received by serbian president slobodan milosevic and meet with senior yugoslav officials.

[10] YUGOSLAV AND GERMAN FOREIGN MINISTERS BEGIN TALKS

kinkel arrived for an official visit to belgrade at the invitation of milutinovic. he will be received by serbian president slobodan milosevic.

[11] KASAGIC'S DISMISSAL IS A BAD AND RECKLESS MOVE, RS PARTY LEADERS

president of the party of independent social democrats milorad dodig was quoted thursday by the belgrade vecernje novosti as saying 'the decision radovan karadzic took yesterday is the logic of a system that he and the serb democratic party (ruling party in repulika srpska) established in rs'.

'kasagic tried to really be a prime minister and not the messanger of karadzic and parlilament speaker momcilo krajisnik. that is one of the reasons he had to go,' dodig said.

the president of the social liberal party of republika srpska miodrg zivanovic said there were no doubts the pale leadership was against everything kasagic did well.

by sacking kasagic rs president karadzic is trying to close all the doors and windows through which they could see the world, said the president of the national radical party nikola pasic dubravko prstojevic.

kasagic was rs prime minister for only six months and in that time marked considerable achievements.

he believes that it is in the interest of rs to behave in line with the dayton accords and to respect the determined election rules.

in a statement to tanjug on wednesday kasagic reiterated that it was important for rs to have its representatives in the bodies of the bosnia-herzegovina union to enable it to have acess to information about foreign investments. this would also make it easier for donors to get information about rs development programmes.

he said the recognition of rs as an entity in bosnia herzegovina with rights to establish special ties was the maximum that was obtained in dayton.

he said he was satisfied with the relations with ifor and assessed its stay would contribute to restoring confidence between the two entities, the rs and the muslim-croat federation.

kasagic indicated there would ba a government reshuffle. he announced changes in the rs government because ''the government would have to be more moderate, on its peace-time footing and without some statements which lead to the obstruction of the dayton agreement.' instead of this, he was the one who was dismissed by a unilateral decision of rs president radovan karadzic.

kasagic paid most attention to the economic revival of rs. he estimated war damages in rs at 15 billion german marks. the now already former prime minister assessed that 100 million german marks would be needed to revive production in rs and resolve the problem of electricity.

the rs government prepared 2,260 economic programmes that it submitted to the world bank, the international monetary fund and foreign businessmen as well as to the office of the international high representative for bosnia.

[12] MUSLIMS WRECK SERB MONUMENTS AND DEMOLISH A CHURCH

more than 120,000 serbs lived in districts of sarajevo that were transfered to the muslim-croat federation under the terms of the dayton peace accord.

muslim extremists are intimidating the remaining two or three percent of serbs in an attempt to drive them away.

the most frequent method of pressure employed is the desecration of serb places of worship and tombstones.

muslim extremists have destroyed 28 serb tombstones in the cemetary of rosulja near the vogosca suburb and wrecked several monuments in reljevo cemetary a few kilometers away.

muslim vandals have demolished a serb orthodox church in the suburb of ilijas.

representatives of the democratic initiative of sarajevo serbs, set up in the suburb of ilidza prior to the serb exodus from the city, said the muslim authorities supported such acts.

serbs in sarajevo have reported the vandalism to the muslim authorities, openly expressing doubt that investigation would ever be thoroughly undertaken and the culprits ever found.

[13] ROMANIAN PRESIDENT ILIESCU ARRIVES IN YUGOSLAVIA

iliescu arrived in belgrade at the invitation of fry president zoran lilic, and during the three-day visit he will hold talks with top yugoslav officials. the schedule also includes a short stay in montenegro.

the romanian president was welcomed by president lilic, yugoslav prime minister radoje kontic, yugoslav deputy prime minister nikola sainovic, assistant yugoslav foreign minister zivadin jovanovic, yugoslav defense minister pavle bulatovic, yugoslav army chief of staff lieutenant-general momcilo perisic and yugoslav federal assembly upper house speaker milos radulovic.

president iliescu was welcomed at belgrade airport with the highest state honors.

[14] MILOSEVIC RECEIVES KINKEL

talks will include discussions on current issues linked to the stabilization of the peace process in the balkans and the promotion of bilateral relations.

attending the talks is yugoslav foreign minister milan milutinovic.

[15] KLEIN: SERBS' STRENGTH LIES IN THEIR REMAINING IN EASTERN SLAVONIA

speaking in an interview published thursday by the belgrade daily politika, klein said the citizens of the region had the right to live in croatia if they were croatian citizens, and said he was trying to convince them that they would be safe.

klein said the coming demilitarisation of the region as well as the adoption of a law on amnesty of all former combatants would guarantee a safe future to 99.1 percent of the population in eastern slavonia.

under an agreement reached by representatives of serbs in eastern slavonia, barania and western srem and croatian officials last november, the region was placed under a one-year u.n. transitional administration (untaes) that can be extended for another year.

up to this point, 4,812 u.n. troops and civilian officials have been deployed to the region. the operation will include participation of 5,000 troops and about 200 civilian officials.

klein said serbs should withdraw all heavy weapons during the demilitarisation of the region beginning in late may and ending by july 1. he said all weapons found after that date would be destroyed.

he said the next step was the demilitarisation of a large number of paramilitary units, finding jobs for former combatants and guaranteeing them amnesty under a bill which he said the croatian government had pledged to present shortly to parliament for approval.

klein said if this were not done, the demilitarisation would only be partial, because people would not feel safe and would refuse to surrender their weapons.

asked what would happen to 50 serbs, including the region's president goran hadzic, who, according to croatian sources, would not be amnestied under the law, klein said he did not know whether or who would have the right to arrest them if they remained in the region.

he said u.n. troops were only authorised to arrest persons against whom the hague-based international war crimes tribunal for the former yugoslavia had issued arrest warrants.

klein said that was the only mandate he had. he said the region's border with yugoslavia and the separation line with croatia would be controlled by untaes troops.

klein said he wanted trade to be carried out freely and people to move freely, saying he did not want to restrict them.

the european union is willing to earmark about 40 million ecus for the reconstruction of the region that should be invested according to a proposal to be submitted to the union, he said.

he said he did not think there were disagreements between the croatian and the serb side regarding reconstruction priorities, listing as such water supply systems, schools and kindergartens.

klein said oil-fields at djelatovci that were closed down on april 19 when between 500 and 700 people lost their jobs would be open soon. he said oil-fields would be controlled by the croatian oil industry once they were placed under u.n. administration.

he said the major obligation which croatia had assumed was to find employment for all workers -- those who had worked in oil-fields as well as those who had worked at petrol stations. consequently, oil-fields should be opened as soon as possible, he said.

[16] BILDT, KASAGIC: WORLD COMMUNITY REFUSES TO RECOGNISE ILLEGAL ACTS

kasagic was dismissed from the office late wednesday by republika srpska (r.s.) president radovan karadzic.

the statement quoted bildt and kasagic as saying that, in line with their joint statement of may 10, they would continue to work together to help fully implement the dayton peace accords for the benefit of the r.s. people as well as entire bosnia-herzegovina.

the statement quoted them as saying also they were resolved to fight against isolationist forces that were a threat not only to the implementation of the peace accords, but also to peace and prosperity in the republika srpska.

they said they were confident that the future lay in cooperation rather than confrontation.

[17] KASAGIC: PARLIAMENT DECIDES ON DISMISSING PRIME MINISTER

kasagic said he remained the prime minister until then.

this is a fateful moment for republika srpska to let decisions on the destiny of the people be entrusted to a small group, he said.

when i took over as prime minister, the state was in world isolation, in a feud with serbia and montenegro and the whole world, with the civilian and military leaders opposed, and many regional rifts,' he said.

kasagic told a press conference that he urged the opening of the bosnian serb republic to the world, cooperation with the world and the acceptance of international standards.

he added he was 'deeply convinced the world wants to help republika srpska' because many statesmen had said the entity had been recognized and would cooperate concretely with it.

citing parts of wednesday's talks with karadzic, kasagic said 'he (karadzic) wants everyone to think like he does.'

we parted in our views regarding relations with the world, because an isolationist policy is being conducted in republika srpska, and ministers who are isolationists are being supported, said kasagic.

he said he believed republika srpska had lost a lot politically and economically because the bosnian serb delegation did not attend the doner's conference in brussels.

i was also criticized for going to rome with serbian president slobodan milosevic although after that the international sanctions were suspended and payment operations reestablished with yugoslavia, he said.

'when karadzic began to control every statement i made to the press, i underlined that not only would i not be the prime minister, but i would move out of the country', said kasagic.

karadzic supports only those who are loyal to him and he demands obedience, said kasagic and added that politicians had to keep in mind the interests of the people.

he said he had been unable for a month to dismiss ministers who he thought had hindered the implementation of the dayton peace accords, and to which he had a right under the constitution.

'i guarantee the salvation of the people in these parts, and the road karadzic has taken leads to the destiny of the repulblic of serb krajina, and i made that clear,' said kasagic.

'the bosnian serb president is elected by the people, and karadzic was elected by the parliament and that's why he is an illegitimate president,' said kasagic.

[18] YUGOSLAV AND GERMAN FOREIGN MINISTERS ASSESS POSITIVELY NORMALIZATION OF YUGOSLAV - E.U. RELATIONS

the yugoslav foreign ministry said in a statement that milutinovic and kinkel assessed positively the normalization of relations between the federal republic of yugoslavia and the european union (e.u.) and the resulting rising of diplomatic relations between yugoslavia and germany to the level of ambassadors.

milutinovic and kinkel expressed mutual belief that this will improve the atmosphere in bilateral relations and positively affect the peace process, the statement said.

it is said that both sides agreed there exist significant joint interests and favourable conditions for speeding up cooperation in many spheres. with this aim it is necessary to establish and develop a regular political dialogue, without prejudice and limitations which would include both the foreign ministries and other bodies such as the government, parliament and political parties.

milutinovic and kinkel positively assessed the trend so far for resuming the previous and establishing new direct links between businessmen, their associations, the bearers of cooperation in the sphere of transport and communication, culture, science, humanitarian and numerous other government and non-government organizations.

the two ministers concluded that this is in keeping with the interests of both countries and that this is why they should continue encouraging and supporting it.

milutinovic and kinkel said that the consistent and full implementation of the dayton peace agreement on bosnia, and the serb-croat agreement on the srem-baranja region, are a priority in the two governments' efforts to reach a lasting peace and achieve stability in the territory of the former yugoslavia.

starting from the fact that peace and stability in europe cannot be separated, it was said that the consistent application of the former agreements has a wider significance and that the stabilization of the situation in the region would release huge natural, economic and human potentials aimed at achieving a faster economic, cultural and general social development.

the two ministers said that necessary are greater efforts of all international factors for the more efficient resolution of the civilian and political aspects of the dayton peace agreement, especially for speeding up preparations for the timely holding of the first fair elections in bosnia, creating conditions for the free return of refugees and the reconstruction of all war-torn regions, with special emphasis on the unbiased and equal treatment of both entities in keeping with e.u.'s basic approaches.

the yugoslav side underscored the huge problems resulting from the several hundred thousand serb refugees from croatia and bosnia who have found refuge in yugoslavia and pointed out the difficulties arising from the lack of conditions for the free return home of those who want to do so. milutinovic positively assessed the cooperation between the yugoslav and german humanitarian organizations in aiding the refugees.

milutinovic informed kinkel about yugoslavia's efforts for the normalization of relations with international organizations and institutions, especially its status in the united nations, the organization for security and cooperation in europe (osce), international monetary fund (imf), world bank, and the world trade organization. the yugoslav side said it hoped germany would support these efforts in the interest of positive development both in the territory of the former yugoslavia and in this part of europe.

the yugoslav side specially underscored it expected germany, as a prominent and influential country, to contribute to the full normalization of relations and cooperation between yugoslavia and the european union, based on its rich and positive past experience and in view of the fact that yugoslavia fulfills all the conditions for genuine partnership in this cooperation.

it was said that the several hundred thousand yugoslav citizens who live and work in germany represent a significant factor of cooperation, create links and promote better understanding between the two countries.

also expressed was interest for speeding up the resolution of certain open issues in the social, labour and legal spheres, programs for additional school classes in the serbian language. also proposed were direct contacts of corresponding services and bodies.

the german side rised the issue of the false asylum seekers from serbia's southern kosovo and metohija province. this specific problem will be resolved gradually through talks, with regard to mutual possibilities, it was said.

milutinovic and kinkel underscored the need for the liberalization of the visa regime and other formalities in order to facilitate the travelling of the two countries' businessmen, tourists and citizens, as well as the functioning of road, river and other forms of transport. the two sides agreed to hold consular consultations as soon as possible.

talks between the two ministers were conducted in an open and constructive atmosphere in which both sides expressed interest in resuming and developing mutual cooperation as well as affirming peace, cooperation and trust in the balkans and europe, the yugoslav foreign ministry said. end mb/sk/mb

[19] ILIESCU'S VISIT TO BELGRADE MAJOR STEP IN BILATERAL RELATIONS

iliescu arrived in belgrade on thursday on a three-day official visit to yugoslavia, during which a bilateral treaty on friendship and cooperation is expected to be signed.

in an interview with radio bucharest, lilic said that the yugoslav-romanian relations were based on identical interests and mutual wish and readiness to cooperate.

i am confident that the signing of a treaty on friendship, goodneighbourliness and cooperation will expand groundwork for cooperation and pave the way for an overall development of our relations. the treaty, the implementation of european principles and a wide-ranging dialogue will produce excellent results in yugoslav-romanian relations, lilic said.

yugoslavia's and romania's efforts have significantly contributed to multilateral cooperation in the balkans and its becoming a zone of peace and stability, lilic said, adding that the two countries had already been fully committed to the task in the past.

the ethnic serb minority in romania and the ethnic romanian minority in yugoslavia are fully enabled to affirm their national, cultural and religious identities and are becoming a growingly important factor in promoting wider forms of cooperation, the yugoslav president said.

our active participation in the development of balkan cooperation and other forms of regional cooperation is part of our firm commitment to the establishment of the closest possible ties with european forums and participation in european integration processes.

we and our neighbours are confident that our efforts will create the best possible conditions for bringing the balkans closer to europe and enriching europe with our specific values, the yugoslav president said.

lilic said that yugoslavia favoured peace, stability and the creation of optimum conditions for a speedy development of all forms of economic cooperation in the region.

on the domestic plane, yugoslavia is going through a decisive period of dynamic development whereas on the international plane it is normalizing its positions, lilic said, adding that it was a result of its consistent peaceful foreign policy and active participation in the quest for a solution through negotiations.

such a stand is praised by friendly states, particularly among our neighbours. we are pleased to say that romania has taken the lead in the matter, lilic added.

following the suspension of the sactions whose adverse effects of scores of billions of dollars had also affected romania, the economy and society in yugoslavia, which had provided shelter to about 700,000 refugees, were heading towards transition.

the yugoslav government works on the implementation of a programme of paving the way for overall economic and social development and yugoslavia's reintegration into international business trends, lilic said.

[20] SUCCESSFUL POLICY OF 'SMALL STEPS' IN NORMALIZATION OF YUGOSLAV-CROATIAN RELATIONS

this policy resulted in the opening of the belgrade-zagreb highway , an oil pipeline, and ptt communications, and it is expected that a railway line will be opened in early june, simonovic said in an interview to the zagreb daily vecernji list.

the yugoslav foreign office has from the start insisted on such a policy as the best way to normalize relations with croatia.

simonovic said that another specific agreement aimed at normalization might be signed following his visit to belgrade last monday. the ultimate strategic objective, he said, should be a full normalization and establishment of diplomatic relations between the federal republic of yugoslavia and the republic of croatia.

simonovic said belgrade and zagreb were also ready tom apnnghmutually acceptable way the problem of the strategically important premontory of prevlaka on their common border.

[21] SOLANA: WORLD WILL CONTINUE CLOSE COOPERATION WITH BOSNIAN SERB PRIME MINISTER

solana said that he regarded kasagic as prime minister of the (bosnian serb) republika srpska and that talks on the implementation of the dayton peace agreement had been held with him in this capacity.

in addition to solana and kasagic, the closed-door talks were attended also by international community's high representative for bosnia-herzegovina carl bildt, nato europe commander gen. george joulwan and bosnia peace implementation force commander for sector southwest gen. michael jackson.

after the talks, kasagic said he believed that the 'world wishes to help the republika srpska and its people in the restoration of lasting peace' and that 'borders towards this world should be opened in the interest of the movement of people, capital and goods.'

he said he saw his wednesday replacement by republika srpska president radovan karadzic as an 'attempt to isolate this part of the republika srpska which has a vision of creating a democratic society and cooperating with the world.'

asked whether he will enjoy the support of yugoslavia and serbian president slobodan milosevic in the continuation of this course, kasagic said that 'yugoslavia and president milosevic are the signatories to the dayton peace agreement and since i advocate the implementation of the agreement, i am certain that i enjoy their support.'

[22] MILUTINOVIC: TALKS WITH KINKEL ARE IMPORTANT FOR FUTURE RELATIONS

after a longer break in political contacts, the talks had enabled an exchange of views on the promotion of bilateral relations, peace process, prospects for the development in the balkans and processes in europe, milutinovic said in a special statement to the press.

he said that the yugoslav side to the talks had said it expected germany to support yugoslavia's efforts for a full normalization of relations with the european union, which would give an impetus to the promotion of yugoslavia's bilateral cooperation with germany and other e.u. members.

'we are confident that such expectations are realistic, on the line of both side's interests and in keeping with the trend of improving the overall situation,' milutinovic said.

he said it had been agreed that a consistent and comprehensive implementation of the dayton agreement and the agreement on the srem-baranja region was esentially important for achieving permanent peace and stability in this part of europe, to which yugoslavia has given and continues to give an irreplaceable contribution.

'we will jointly cooperate in further comprehensive and immediate implementation of the agreement, starting with the assessment that the most important task now is to speed up preparations for a timely holding of elections, ensure the restoration and reconstruction of bosnia-herzegovina with an equal treatment of the two entities,' milutinovic said.

he said that special attention in the talks had been paid to bilateral relations and prospects for cooperation between yugoslavia and germany, which have always been important partners in economy and other spheres of cooperation.

both sides agreed that there existed joint interests and favourable possibilities for restoring the former scope and quality of cooperation and even exceeding it in future, milutinovic said.

[23] YUGOSLAV-U.N. AGREEMENT ON COOPERATION WITH HAGUE TRIBUNAL SOON

klikovac told journalists that the yugoslav government had on wednesday adopted certain decisions regarding the hague tribunal, adding that 'a certain agreement had been reached with the representatives of the hague tribunal and the corresponding federal bodies.'

'the agreement opens the possibility for opening the tribinal's office in belgrade and determines concrete authorities and the immunity of its staff,' klikovac said.

he said that the authority of the tribunal's staff in their dealings with yugoslav citizens, organizations or state bodies has been precisely determined and that these contacts will be conducted in keeping with yugoslav laws.

'direct hearings, investigations and possible proposals for opening proceedings will be conducted only through state organs,' klikovac said and added that the agreement does not cover extradition issues because this has already been regulated by the yugoslav constitution.

the hague war crimes tribunal was set up by a u.n. security council resolution adopted in may 1993.

so far, the tribunal has indicted mainly serbs justifying this by the non-existence of a serb liason bureau and the inability of the investigators to obtain relevant data about muslim and croat crimes. end zn/sk/mb

[24] MILOSEVIC RECEIVES SOLANA AND JOULWAN

their meeting is expected to be devoted to prospects for stabilizing the peace process in the former yugoslavia and particularly the implementation of the dayton peace agreement in bosnia-herzegovina.

[25] YUGOSLAV, GERMAN FOREIGN MINISTERS ON TALKS IN BELGRADE

milutinovic said that the talks had been very meaningful and open.

'i hope that we have opened a new era following five years of inactivity in our relations and i hope that we will have a rich and very meaningful cooperation in the following period,' milutinovic said.

he also expressed hope that 'today's meeting indicates a turn towards the future, towards radical changes' in relations between yugoslavia and germany.

'i believe that we have opened a new era in our relations with today's talks and mr. kinkel's visit,' milutinovic said.

kinkel said he had had long talks about many issues with his yugoslav counterpart, followed by an intensive two-and-a-half-hour meeting with president milosevic.

kinkel, who will hold a press conference in belgrade later today, said that he had arrived here after difficult years which had stayed behind and following a german government decision to normalize relations with yugoslavia and open the door to bilateral relations.

[26] MONTENEGRIN PRESIDENT, GERMAN FOREIGN MINISTER MEET

the talks focused on the implementation of the dayton peace agreement and relations between f.r. yugoslavia, particularly montenegro, and germany.

kinkel met earlier in the day with serbian president slobodan milosevic and yugoslav foreign minister milan milutinovic.

[27] YUGOSLAV AND ROMANIAN PRESIDENTS OPEN TALKS

the two presidents will first meet alone, to be afterwards joined by the members of both delegations.

after the talks, the two presidents will sign an agreement on friendship, good-neighbourly relations and cooperation.

[28] MILOSEVIC, KINKEL DISCUSS PROMOTION OF BILATERAL RELATIONS

the talks passed in an atmosphere of openness and mutual understanding. views were exchanged on the most important issues in international developments, with emphasis on current trends in the balkan region and steps aimed at strengthening peace and stability in the territory of former yugoslavia, said a statement released by the serbian president's office.

the statement said milosevic and kinkel especially considered the course of the implementation of the dayton peace accords on bosnia-herzegovina. they assessed that positive results had been recorded in this process.

these results form the basis for a comprehensive normalization of the situation in areas of former hostilities and the construction of a free, civilized, and economically prosperous life of all citizens, the statement said.

the two sides agreed that efforts should be stepped up in order to intensify the implementation of civilian and political aspects of the peace accords.

the key task, which should be completed by the planned deadline, is the election of legal institutions in both entities in bosnia-herzegovina, which will, as both sides agree, facilitate the construction of a normal order, relations, and a safe life, as essential preconditions for the return of a large number of refugees, the establishment of normal communications, and the restoration of confidence among the citizens.

a special place in the milosevic-kinkel talks was given to questions of common interest to yugoslavia and germany, the statement said.

it was underscored in the talks, in this respect, that a normalization of relations between the two countries would provide a strong impetus, primarily to their economic cooperation, having in mind the fact that germany had in the past presented one of the most important foreign trade partners of yugoslavia, with developed business ties of the respective economic subjects.

yugoslavia urges the development of relations and cooperation with germany on an equal basis and believes all common issues can be resolved by a joint constructive approach through regular political dialogue, which implies also agreement on concrete bilateral issues, the statement said in closing.

[29] FIRST SERB-CROAT TRADE AGREEMENT

under the agreement, croatia will deliver to the serb area artificial fertilizers and pesticides which will be paid by the serb side in wheat and corn.

the serb area of eastern slavonia, baranja and western srem is the only part of the republic of serb krajina which has not been seized by the croatian army. croatia forcibly took other parts of the republic of serb krajina last year.

the serb area of eastern slavonia, baranja and western srem was put under u.n. transitional administration (untaes) in january 1996 in keeping with an agreement reached between the two sides.

commenting on the agreement, untaes head of civilian affairs fischer said that the basic message to the local population after the important event was that it was a step towards normalization.

[30] BUHA: HASTY STATEMENTS BY INTERNATIONAL POLITICIANS ON OUSTING OF KASAGIC

'republika srpska will continue fulfilling all provisions of the dayton peace agreement, without any conditions,' buha said.

in a statement carried by republika srpska press bureau, buha said that kasagic is being blamed for 'ignoring the position of the main board of the serbian democratic party, the national assembly, the president of the republic, and the government itself, and for trying to change the policy of the republika srpska leadership.'

buha said that kasagic's failure to adapt to his duties had rised the hopes of those who do not hide their wish 'to annul the independence and borders of republika srpska.'

[31] CHINA FOR YUGOSLAVIA'S SPEEDY RETURN TO INTERNATIONAL COMMUNITY

the federal republic of yugoslavia is an important state in the balkans and has significantly contributed to peaceful efforts for a political solution to the crisis in the former yugoslavia, zhu said in a speech delivered at the institute for international politics and economy in belgrade.

zhu said that china and yugoslavia had traditionally friendly relations and good cooperation and that a visit by yugoslav president zoran lilic to peking last december had further given an impetus to their relations.

the chinese ambassador pointed to the support lent by peking to the signing of the dayton agreement and said that his country hoped all sides would consistently implement the agreement's provisions in the interest of lasting peace.

china has advocated a peaceful solution to differences and disputes and rejects the use of sanctions or military intervention as a means to resolve problems, zhu said.

[32] CROATIAN REFUGEES FROM BOSNIA REFUSE TO MOVE IN HOMES OF EXPELLED SERBS

a letter by croat refugee association published thursday by slobodna dalmacija daily from split says that the intention of croatian ministry of development and recovery to have croat refugees settle in former serb homes demonstrated complete emptiness of heart and soul and legalized ethnic cleansing and genocide perpetrated against these people.

the letter recalls that the dayton agreement envisages the return of all refugees to their homes, and gives this same right also to serbs in croatia and bosnia-herzegovina,

croatian ministry of development and recovery and its counterpart in herceg-bosna (bosnian croat community) recently invited representatives of croat refugees from posavina to discuss their resettlement in north-western bosnia from which serbs were expelled and which was assigned to the muslim-croat federation by the dayton agreement.

refugee representatives did not go to the meeting and expressed their rejection of the idea in their letter to slobodna dalmacija.

[33] SOLANA GIVES MESSAGE TO MILOSEVIC

solana said work should proceed in the right direction so that the positive trend in the implementation of the dayton accords is maintained, which implies that people who are ready to stick to their obligations from dayton should have responsible functions in bosnia-herzegovina.

[34] SERBIAN GOVERNMENT: KASAGIC'S OUSTING AGAINST INTERESTS OF REPUBLIKA SRPSKA

'the serbian government considers this decision as yet another in a series of those which are directly aimed against the interests of republika srpska and its citizens, and which compromise the development of democratic processes and results being realized in the economic recovery of republika srpska,' the statement said.

the serbian government pointed out that 'the decision on (kasagic's) ousting was not preceded by a parliamentary procedure, when the people's deputies in the assembly give their vote on confidence in the prime minister,' said the statement.

'that is why the serbian government considers this decision invalid and insist that the republika srpska assembly convene so that the interests of republika srpka and its citizens are finally protected from such arbitrary actions,' the serbian government's information ministry said.

republika srpska president radovan karadzic gave the decision on kasagic's dismissal on wednesday.

[35] YUGOSLAV GOVERNMENT: DISMISSAL OF R.S. PREMIER ILLEGAL AND UNDEMOCRATIC

the decision was taken without usual parliamentary procedure and without a vote in the r.s. parliament, yugoslav information secretariat said in a statement.

yugoslav government underlines that the dayton peace agreement has paved the way for negotiations and for a just and lasting settlement of the bosnian crisis. the agreement is fully supported by the international community and protects the interests of the serb side, the statement says.

all decisions and activities of r.s. leadership must be geared for, not against, the peace process and principled implementation of the peace agreement, the statement says.

this is why the decision must be nullified and r.s. parliament members must be enabled to state their views in a democratic procedure, the statement concludes.

[36] KINKEL: IT IS REALISTIC TO EXPECT YUGOSLAVIA'S REINTEGRATION IN INTERNATIONAL COMMUNITY

after meeting yugoslav foreign minister milan milutinovic and serbian president slobodan milosevic, kinkel said at a press conference that germany would not support any separatist tendency inside fry, referring apparently to the aspirations of ethnic albanians in serbia's southern province of kosovo and metohija (kosmet).

the talks with president milosevic and minster milutinovic had focused on the implementation of the dayton agreement so far, kinkel said, adding it was essential that both civilian and military components of the agreement be successfully implemented.

kinkel said german government was ready to promote economic cooperation with fry.

the problem of false asylum seekers from kosmet in germany was also disussed, kinkel said, adding it could be resolved gradually and with belgrade's active participation.

asked how he assessed the prospects for the repatriation of several hundred thousand serbs in croatia, kinkel said croatian president franjo tudjman and foreign minister mate granic had been informed of germany's stance that croatia must provide for the return of refugees not in theory, but in a practical manner.

[37] GERMAN FOREIGN MINISTER KINKEL LEAVES BELGRADE

kinkel had talks in belgrade with yugoslav foreign minister milan milutinovic.

the german foreign minister was also received by president of the yugoslav republic of serbia slobodan milosevic and later in the afternoon by president of the other yugoslav republic, montenegro, momir bulatovic.

kinkel also met with borislav mikelic, president of the committee for the protection of rights and interests of displaced persons.

[38] BULATOVIC: NEW ERA IN YUGOSLAV-GERMAN RELATIONS

bulatovic described kinkel's visit to belgrade as important, as it paves the way for a new era in bilateral relations since germany is one of leading members of the world community, nearly dominant in europe and extraordinarily influential in the balkans.

he told the press after the meeting that he had informed kinkel of montenegro's attachment to the yugoslav federation, provided that various mechanisms and individual programs be used inside the federation to statisfy particular interests.

kinkel said that germany attached a great importance to relations with montenegro, that his talk with bulatovic was interesting and that it had focused on pursuing the traditionally good relations in economic, touristic and other fields.

he said he had been informed of montenegrin problems and added that germany followed with great attention the liberalization and privatization processes in that republic.

bulatovic said he had also informed kinkel of montenegro's views on the demarcation of borders between fry and croatia.

he expressed hope that montenegro's determination regarding the prevlaka peninsula in southern adriatic would be met with understanting by germany and help achieve lasting normalization between belgrade and zagreb.

the peninsula is at present a demilitarized zone monitored by u.n. observers. in the former yugoslavia, it was inside the administrative border of the then yugoslav republic of croatia.

the talk also focused on cooperation in economy, tourism and culture, bulatovic said.

he expressed hope that kinkel's visit would intensify dialogue, the exchange of economic delegations and further development of bilateral relations.

[39] YUGOSLAV AIRLINES JAT INTRODUCES REGULAR FLIGHTS TO SKOPJE

jat will have flights to and from skopje three days a week -- on monday, thursday and sunday.

a delegation of yugoslav businessmen who arrived on thursday's flight to skopje includes directors of belgrade's leading companies.

the delegation, headed by president of the serbian chamber of commerce vlajko stojiljkovic, is expected to meet with macedonian businessmen for a plenary session at the macedonian chamber of commerce later in the day.

on arriving in skopje, the yugoslav delegation was greeted by macedonian officials, including president of the macedonian chamber of commerce dusan petreski.

[40] PRESERVING STABILITY OF NATIONAL CURRENCY - PRIMARY TASK OF YUGOSLAV CENTRAL BANK

the statement, issued on the occasion of the dismissal of central bank governor dragoslav avramovic, by the yugoslav assembly, said that the central bank will not issue money without realistic cover.

the national bank of yugoslavia is of the view that a restrictive monetary policy has to be pursued, and added that there had been no disagreement in that regard between the bank's board of governors and avramovic in the past.

the national bank of yugoslavia will intensify control over credits, the statement said.

in that respect, all necessary measures will be taken to prevent possible speculation and attempts to put into danger the achieved degree of stability of the exchange rate and of prices, because, the statement said, the primary task of the central bank is to preserve the stability of the dinar - yugoslav national currency.

the national bank of yugoslavia expects it will enjoy the full support of the federal and two republican governments - of serbia and of montenegro - creating conditions for the successful realisation of the fry economic policy, said the statement signed by deputy governor bozidar gazivoda in consultation with the bank's board of governors.

[41] SERBIAN, MACEDONIAN BUSINESSMEN ADVOCATE TRADE LIBERALIZATION

the presidents of serbian and macedonian chambers of commerce vlajko stojiljkovic and dusan petrevski added that pressure would be brought on the two governments to adopt customs concessions in order to promote bilateral economic cooperation.

serbian and macedonian company directors who met in skoplje expressed hope that the two governments would provide better conditions for doing business.

about 30 serbian businessmen thursday discussed new business arrangements with their macedonian partners.

conditions for the promotion of bilateral cooperation were laid by the agreement on the normalization of relations between yugoslavia and macedonia in the beginning of april.

macedonia seceded from the former yugoslav federation in a peaceful manner in 1991.

Copyright © Tanjug, Yugoslavia, 1996

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