By DUSAN STOJANOVIC Associated Press Writer

PRISTINA, Yugoslavia (AP) -- Serbs and ethnic Albanians alike are eagerly awaiting

the arrival of thousands of international observers and aid workers to Kosovo. But

cash -- not peace -- is foremost on most minds.

``I doubt the outsiders can establish lasting peace in Kosovo,'' said Gani Smajli, an

unemployed French language teacher applying for a job as a translator. ``But I know

they'll be spending bucks and creating jobs.''

The Organization for Security and Cooperation in Europe is forming a 2,000-member

mission of unarmed verifiers to monitor a U.S.-sponsored peace deal for Kosovo that

was reached in October.

The mission's budget is expected to be about $200 million for one year -- much of

which will be used to employ up to 6,000 local residents as translators, drivers,

secretaries and mechanics.

Those wages and the money that foreigners are expected to spend in Kosovo mean

better times for the Albanian-majority Serbian province that has always been

Yugoslavia's poorest area.

``It's a great amount for this region, and the impact on the economy is going to be

huge,'' said Duncan Bullivant, an OSCE spokesman in Kosovo's capital, Pristina.

Unemployment is hovering around 75 percent of the 1.3 million workforce, and

average monthly salaries amount to no more than $50. The past several months of

destruction, which forced hundreds of thousands of ethnic Albanians from their

homes, have made traditional hard times even worse.

On Friday, Serbs and ethnic Albanians stood together in long employment lines in

front of the OSCE office in Pristina. The prospect of a job shunted aside enmities -- at

least for the moment.

Some people hope the increased foreign presence may boost long-term prospects for

peace.

``The fresh influx of money and the creation of new jobs is certain to lead to the

improving of the economy,'' said economist Muhamed Mustafa. ``This could

eventually lead to people concentrating more on their living standards, and not on

waging wars.''

Others are skeptical.

``Foreigners and their money cannot make us ... forgive,'' said Zoran, a Serb hoping

to get hired as a driver, even while conceding that well-paying, steady jobs could help

ease hatreds. He would not give his last name.

Since the government crackdown on separatist ethnic Albanian guerrillas began in late

February, thousands of foreign diplomats, aid workers and journalists have descended

on the drab and sleepy provincial capital.

Their presence has already had a huge effect on the fortunes of local restaurants and

hotels, and has guaranteed employment for good translators and car mechanics.

Agencies offering private accommodation have popped up for the first time.

Dining in Pristina, which used to offer a choice between huge portions of meat,

Serb-style, or the more Mediterranean Albanian fare, now has a handful of restaurants

serving fine international cuisine.

And the state-run Grand -- known among insiders as the world's worst five-star hotel,

serving the world's worst breakfasts -- faces competition from several cozy private

hostels.

``I can't argue: The clashes have brought me prosperity,'' said Faik Morina, the owner

of the Hotel Dea, a popular residence for American diplomats, visiting U.S. senators

and other public figures.

Morina said that with foreigners pouring in, he plans to open a casino and a nightclub

in his 20-room hotel.

Even newspaper street vendors are trying to cash in -- with varying success.

One of them, who identified himself only as Mehmet, said his new sideline selling

English, Italian and French dailies wasn't working out as well as he hoped.

He shrugged when told his problem -- that his papers were weeks old.

``I noticed there was something wrong,'' he said. ``But I thought foreigners are big

spenders, no matter what.''

AP-NY-11-16-98 1201EST