."It is obvious that the Montenegrin authorities are increasingly sinking
into the separatist abyss and that the citizens of Montenegro will suffer
most from the consequences of such a policy...Offering hospitality to
Mesic, Albright and other enemies of our nation and adopting hostile
attitudes towards everyone who comes from Serbia or comes from Montenegro
but is a political opponent of [President Milo] Djukanovic shows that the
regime in Podgorica has entered the first stage of separatist activities,
which is characterized by a gross misuse of the Montenegrin police, which
the Radicals and a large number of Montenegrin citizens will resolutely
oppose."
Statement by the Serbian Radical Party
Quoted by Tanjug state news agency, Nov. 7 - Belgrade
"The attempt to make meaningless the justification of the survival of the
FRY by legalizing the German mark does not have as a consequence only the
causing of anarchy in the economy but is another in a series of unconstitutional and illegal steps by the secessionist regime in Montenegro."
Statement by The Council of Popular Assemblies of Montenegro
Quoted by V.I.P. Daily News Report, November 9 - Podgorica
"I have informed Mrs. Albright of the measures that the Montenegrin
Government has taken...to protect the economic interest of Montenegrin
economy and Montenegrin citizens...we have been compelled to take this move
because we needed to protect the living standards of our population and to
enable further implementation and proceeding of our economic reforms...This
is not a prelude to secession by Montenegro, but an attempt to relieve the
pressures on the Montenegrin Government coming from the economic and living
standards considerations so that these issues of the status of Montenegro
can be put off and the atmosphere and the pressures to bring up the status
of Montenegro could be taken up in a more relaxed atmosphere at a later time."
Milo Djukanovic, President of Montenegro Joint Press Conference with Secretary of State Albright, November 4 - Washington
"The United States supports a democratic Montenegro within a democratic and
reformed Yugoslavia, and President Djukanovic assured me that this, too, is
his objective. As we have repeatedly emphasized over the past year, we have
an important interest in the security of the region, including that of
Montenegro. President Djukanovic briefed me today on his efforts to
insulate Montenegro economically from Milosevic's disastrous policies by
legalizing the use of foreign currency. We understand the desire of all
Yugoslavs in Serbia and Montenegro for monetary stability and full
participation in the global economy."
Madeleine Albright, U.S. Secretary of State
Joint Press Conference with President Djukanovic, November 4 - Washington
"I want to say that Montenegro's security was a real focus of attention in
Washington, that great concern of their political circles in this respect
was reiterated. They also expressed a lot of good will towards Montenegro
and their willingness to offer both protection and support to the
Montenegrin democratic project, if it is threatened by violence in any
way...I tried to convince my interlocutors that it would be more rational
to make adequate and timely moves to express their support, which could act
preventative in pre-conflict situations and prevent many unwanted
situations and incidents which we experienced in southeastern Europe in the
past several years. I wanted to convince them that not only shall we profit
from such a policy, but it could be very useful for them as key
international players, and not only useful but very sensible as well.
Intervention after a conflict always costs infinitely more than a timely
intervention before a conflict."
Milo Djukanovic, President of Montenegro
Quoted by Montenegro's state TV Crna Gora, November 6 - Podgorica
IN THIS SPECIAL MONTENEGRO UPDATE:
Djukanovic meets senior US officials; gets "carefully worded" support
Djukanovic "expects concrete aid"
Pentagon on Montenegro security guarantee
Implementation of parallel currency
Monetary measures declared "illegal, dangerous"
Yugoslav National Bank bans transfer of money between republics
Independence referendum to be delayed indefinitely
Montenegro arrests Belgrade officials
Montenegrin militia, assembly councils organizing
Vujanovic meets indicted war criminal; Djukanovic won't risk arrest
Power shifts in federal ranks?
51% of Serbs believe in "full equality" of republics
POLITICAL PARTIES & LEADERS:
Montenegrin Political Parties
DPS-Democratic Party of Socialists (Milo Djukanovic, Montenegro pres.)
NS - People's Party of Montenegro (Novak Kilibarda, president)
SNP - Socialist People's Party of Montenegro (Momir Bulatovic, president)
SDP - Social Democratic Party of Montenegro (Zarko Rakcevic, president)
Serbian Ruling Coalition
SPS - Serbian Socialist Party: (Slobodan Milosevic, FRY president)
SRS - Serbian Radical Party: (Vojislav Seselj, Serbia's deputy PM)
JUL - Yugoslav United Left: (Mira Markovic, president)
I. DIPLOMACY
DJUKANOVIC MEETS SENIOR US OFFICIALS; GETS "CAREFULLY WORDED" SUPPORT
* "Montenegrin President Milo Djukanovic has expressed his pleasure over
the results of his visit to the U.S., and said that his talks with U.S.
officials had fortified their clear political support to Montenegro.
'Montenegro has received economic assistance that would enable our
reform-oriented projects to develop at a steady pace in the future,' the
Podgorica media quoted Djukanovic as saying on Nov. 7...Djukanovic said...
the [currency] move was a forced measure aimed at preserving the results of
economic reforms achieved so far." (BETA news agency-Belgrade, Nov. 8)
* U.S. Secretary of State Madeleine Albright: "President Djukanovic's
government was democratically elected. His proposals for reform enjoy
popular support and the United States wanted to help him succeed. To that
end, we have committed $55 million in support for Montenegro this fiscal
year. We have exempted Montenegrin enterprises from the sanctions Serbia
faces and we are looking at other ways to help. We are working with
Congress to insure that, although we don't yet have a budget for next year,
our support will continue. (Joint Press Conference of Secretary Albright
and President Djukanovic, Washington, Nov. 4)
* "The United States Thursday sent Belgrade an implicit warning to keep
its hands off Montenegro...'We have an important interest in the security
of the region, including that of Montenegro,' U.S. Secretary of State
Madeline Albright told a joint news conference after talks with Montenegrin
President Milo Djukanovic. 'That statement was very carefully worded and
it's a direct message,' added a senior State Department official...The
State Department official said one idea [to help Montenegro] was to allow
international flights to and from Montenegro, bypassing the ban on flights
imposed on Serbia. 'That was discussed,' he added." (Reuters, Nov. 4)
"During the Kosovo war last spring, NATO was said to have signaled to
Montenegro it would provide support if the province's relative autonomy
were threatened. But the gesture remained short of an explicit security
guarantee, a U.S. government official said in a Nov. 2 interview. Rather,
NATO conveyed its 'security interest' in the region, which 'by inference'
extended to Montenegro, the official said. Since the end of the war over
Kosovo, European governments have been inclined to avoid further military
action in the Balkans, despite their political support for the current
Montenegrin leadership, a number of regional experts have observed" (Inside
the Pentagon, Nov. 4)
* "President Milo Djukanovic has said that he obtained 'absolute support'
for Montenegro's recent monetary moves during his visit to the USA, and
that Montenegro is to get between $35-40 million in aid to secure the
implementation of its reforms...[Djukanovic said]: 'The visit to the USA,
which took place at the invitation of Secretary of State Madeleine
Albright, was an opportunity to maintain the continuity of the intensive
dialogue in which we and US officials recently engaged. The number and rank
of officials we met during the visit to Washington bear witness to the
importance the USA attaches to Montenegro and its project of democratic
reforms...the visit was characterized by the focus on the current status of
Montenegro's democratic reforms, security in Yugoslavia and the region,
and, finally, the issue of the economic support for further reforms in
Montenegro and for the democratization of the Federal Republic of
Yugoslavia...A part of the international community is in two minds about
the motives and the direction of some moves made by the Montenegrin
government recently with the aim of furthering reforms. I mean primarily
the monetary project, which, as you know, has met with a rather restrained
response from the international community. I think it is very important and
a great success that we resolved all dilemmas in Washington. We have heard
words of absolute support for Montenegro's move in the past two or three
days.' " (TV Crna Gora, Nov. 6) "Djukanovic pointed out as most
important the fact that in talks with US officials, he had received
promises that Montenegro would continue to have Washington's political and
economic support, and that the US would attempt to engage its European
allies in this direction." (V.I.P.-Belgrade Daily News Report, Nov. 8)
DJUKANOVIC "EXPECTS CONCRETE AID"
* "Montenegrin President Milo Djukanovic said that he understands the
concern of part of the international community that the latest steps by the
Montenegrin government could provoke FRY President Slobodan Milosevic into
launching 'the next destruction in the Balkans,' Podgorica media said on
Monday. He said that concern is not enough and that the international
community should take concrete steps to protect Podgorica. He added that
Montenegro expects concrete economic aid from the international community
and that it would be in the interest of not only Montenegro but the entire
region." (V.I.P. Daily News Report, Nov. 9)
* "The American Congress today pledged 40 million dollars in aid to
Montenegro, announced the US Secretary of Finance Lawrence Summers after
his meeting with Montenegrin President Milo Djukanovic. On his return from
the US, Djukanovic spoke on Montenegrin television about his meeting with
US Secretary of State Madeleine Albright saying that their meeting was the
opportunity for him to demand concrete economic aid for democratic reform
in the southern republic." (Radio B2-92-Belgrade, Nov. 6) Djukanovic told
Montenegrin TV Crna Gora: "The US Congress has adopted a law on external
financial operations whereby Montenegro will get between $35-40 million in
aid. I think that this is of great importance now that Montenegro's
monetary stability is of critical importance and when foundations are being
laid for long-term economic stability." (TV Crna Gora-Podgorica, Nov. 6)
"In the course of the talks with US Finance Department experts and USAID
representatives, Djukanovic agreed on the arrival of US monetary experts
in Montenegro. They are supposed to help Montenegrin government experts in
the monetary and economic reforms, but are also likely to control how the
financial assistance received from the US will be spent in Montenegro."
(V.I.P. Daily News Report, Nov. 8)
* "Serbian Vice-Premier and Serbian Radical party leader Vojislav Seselj
said on Nov. 9, that the Montenegrin authorities had received US$40 million
from the U.S. government 'to work against Serbia.' Addressing the Serbian
legislature, Seselj said that the U.S. authorities 'have set aside US$100
million' for the opposition in Serbia and that 'US$12 million have already
been delivered.' He went on to say that the opposition was split into
numerous parties so that 'as many leaders as possible would get money from
the Americans.' " (BETA news agency, Nov. 10)
PENTAGON ON MONTENEGRO SECURITY GUARANTEE
* "Q Has General Clark been authorized to begin planning for a defense
of Montenegro in the event that the government there gets overthrown by
Milosevic and Belgrade?
COL. CROWLEY: As you know, Jim, we have had our close and watchful eye on
Montenegro going back to the Kosovo conflict earlier this year. We have
specifically warned President Milosevic not to take any action that would
undermine the Djukanovic government. That said, we at all times are both
reviewing developments in the region; our CINCs are always developing and
updating contingency plans. I'm not in a position to make any specific
comment from the podium. But Montenegro is an area that we watch very
closely. President Djukanovic was here last week. And we continue to
support his regime within the rubric of the Federal Republic of Yugoslavia.
Q Was he given any assurances that the United States would come to his
defense if the Yugoslavs or Belgrade
COL. CROWLEY: We have specifically warned President Milosevic of the
seriousness of taking any move that would undermine the Djukanovic
government. I'll leave it there." (Dept. Of Defense daily briefing, Nov. 9)
II. ECONOMY
IMPLEMENTATION OF PARALLEL CURRENCY
* "Montenegro paid civil service salaries in marks on Saturday for the
first time since legalizing the German currency alongside the dinar. The
payments were a day late because of delays in bringing the small notes and
coins from Germany, an official said." (Reuters, Nov. 6) "The Montenegrin
government's decision on the introduction of dual currency is being
implemented with the increasing consistency, and there is less and less
hesitation and misunderstanding both in shops and among the public. The
first salaries have been paid in German marks, and pensions will soon be
paid in the same way. There are enough coins in circulation, and prices are
marked in both currencies almost everywhere. Teams of inspectors have
stepped up the control of the implementation of the government's measures.
The Monetary Council is in session every day and follows the implementation
of the dual currency system, seeking the least painful solutions to serious
consequences of Belgrade's unilateral decision to suspend payment
transactions with Montenegro. The Monetary Council set the German mark
exchange rate at 17 dinars for one German mark, and will announce the
official exchange rate on a daily basis from tomorrow." (Montena-fax news
agency, Nov. 7)
* "Director of the accounts and payments department of Montenegro
Dimitrije Vesovic, said...'Daily earnings are being paid in marks without
obstruction although there were fears that people will, customarily, keep
marks for other transactions, not for regular payments. Obviously, people
are being freed of that fear,' Vesovic said. He told TV Montenegro that
payments have started in marks, that the public sector received salaries in
marks and that soon pensions will be paid in marks. He said he expects
salaries in marks to be paid these days by the Aluminum Combine and
companies in...electricity, bauxite mines and coal mine - and that the
banking sector also received foreign currency through deposits in business
bank accounts. 'We expect that in two months, two thirds of the employed in
Montenegro, as well as those who have payments from the system of aid or
other payments, will receive payments in marks which is quite enough for
the system to come alive completely and the one third which won't receive
payments in marks to adapt its business relations with the environment and
to insist on payments in marks,' Vesovic said." (V.I.P. Daily News Report,
Nov.9)
* "The presidency of the Alliance of Independent Trade Unions of
Montenegro warned on Nov. 9, that the introduction of a dual currency
system 'has resulted in a sharp daily rise in prices, jeopardizing the
already difficult living conditions. Contrary to its announced purpose, the
dual currency system has additionally endangered the standard of living of
workers, pensioners and the population in general,' said the trade union's
presidency, demanding that a minimum wage be set at 82 German marks per
month." (BETA news agency, Nov. 10)
* "The Montenegrin Monetary Council also decided Saturday to impose tight
control over financial transactions between the two republics. Dimitrije
Vesovic, a member of the monetary council said that all interrepublic
financial transactions would be controlled and those suspected of attacking
the Montenegrin monetary system would be canceled. Meanwhile, newspapers in
neighboring Croatia quoted unnamed sources Saturday as saying that 34.5
tons of German marks had been flown in from Germany to Croatia's Dubrovnik
airport. Several metal boxes were then transported in two trucks with
Montenegrin license plates on Friday. The Croatian daily Vecernji also
reported that two trucks carrying German coins passed through the Croatia -
Montenegro border Friday." (Associated Press, Nov. 6)
* "The National Bank of Montenegro is preparing measures for limiting
hard currency and dinar amounts that can be taken in and out of that
republic. According to a source from the bank, a single person will not be
allowed to take more than 200 German marks out of Montenegro or to bring in
more than 3,000 dinars. The final decision on that issue will be made by
the Currency Board of Montenegro which, after the introduction of the
German mark as a parallel currency, has been charged with taking care of
the monetary system's stability in that republic." (BETA news agency, Nov.
10)
* "As of Nov. 7, the Jugopetrol of Kotor limited the sale of gasoline for
dinars at its gas stations in Podgorica. Drivers will be able to get only
20 liters of gasoline per month for their dinar coupons issued at the gas
stations. There are no restrictions imposed on the sale of gasoline for
D-marks, a salesman at one gas station told BETA, and added that the main
office in Kotor limited the delivery of oil derivatives. The Jugopetrol of
Kotor is the main supplier of Montenegro's gasoline market. The Jugopetrol
sells a liter of unleaded or super gasoline for 17 dinars or one
deutschmark, while diesel is sold for 11.9 dinars, that is, 0.7 deutschmark
per liter." (BETA news agency, Nov. 8)
* "Several experts also pointed out that economic recovery for Montenegro
will require more than this week's action on the currency. Without greater
privatization and banking reform, one U.S. government official told ITP
this week, Montenegro's economic situation remains shaky. The net effect of
the currency declaration could yet be greater destabilization to the
region. In this official's view, the announcement on moving to adopt the
mark appeared unnecessary economically and was meant mainly as a political
warning to Milosevic." (Inside the Pentagon, Nov. 4)
* "Predrag Drecun, Montenegro's minister for labour and social issues,
said that the republic now needs about half a billion German marks to
solve unemployment, media report on Tuesday. Drecun warned that there is a
real 'social bomb' in the Montenegrin economy because the state did not
aliment all the social needs of the population. 'Assessments are that 30%
of the employed in Montenegro are a technological surplus, which means
about 25,000 workers. If that number is multiplied by 6,000 marks needed to
open a new job, and to it added about 30,000 people who are prepared to
leave state companies to start small and medium businesses, and if that is
multiplied by 6,000 marks, a rough estimate shows that Montenegro needs
about half a billion German marks to resolve the problem of unemployment,'
Drecun said." (V.I.P. Daily News Report, Nov. 9)
MONETARY MEASURES DECLARED "ILLEGAL, DANGEROUS"
* "Federal Finance Minister Dragisa Pesic told Tanjug today that the
monetary measures and decisions that the Montenegrin Government passed on
2nd November are illegal and legally unfounded, because they were adopted
without regarding legal rules that regulate the monetary policy at the
federal level. We are talking about illegal and unconstitutional decisions
made for political reasons, even though those who made them claim that they
did so for economic and social reasons, Pesic said, adding that they were
aimed at directly inflicting as much damage on Serbia and the Federal
Republic of Yugoslavia as possible. Stressing primarily the economic damage
that these decisions would cause the federal state, the finance minister
said that for the purpose Montenegro had set up a special independent
bank, which could also issue money without cover, thus creating
inflationary chaos." (Tanjug state news agency, Nov. 6)
* "Ivan Dacic, the spokesman for Milosevic's Socialist Party, on 4
November described Montenegro's new currency policy as a 'move carried out
by NATO which is using this puppet creation only as a means to an end.'
Serbian Radical Party head Vojislav Seselj said Montenegro's leadership is
heading for 'all-out secession,' which he called 'a very dangerous
direction.' " (RFE/RL Newsline, Nov. 8)
YUGOSLAV NATIONAL BANK BANS TRANSFER OF MONEY BETWEEN REPUBLICS
* "The governor of the National Bank of Yugoslavia (NBJ), Dusan
Vlatkovic, today said that the NBJ 'has made the decision banning legal
persons from transferring money from Montenegro to Serbia from today.' That
decision was made 'with a view to preventing a possible uncontrolled money
issue on Montenegrin territory,' reads the announcement. 'Following the
decision made by the government of the Republic of Montenegro on 2nd
November 1999 regarding the sphere of monetary system, it has not been
possible for the NBJ, that is, the Accounting and Payments Institute [ZOP],
to carry out regular audits of payment transactions at the ZOP [branch] on
Montenegrin territory,' NBJ Governor Dusan Vlatkovic said." (BETA news
agency, Nov. 4)
* "Yugoslav minister for relations with foreign international
organizations Borka Vucic...said that the suspension would last until the
Yugoslav Payment Operations Service regains control over payment operations
in the FRY. Vucic said that 'normal work would resume when state control is
reestablished there [in Montenegro] and when we have a unified payment
operations system and as single Office for Settlements and Payments,
according to the law,' the state news agency Tanjug reports. During her
visit to the Belgrade Fair, Vucic said that the dinar's value in Montenegro
relative to the Deutschmark was not realistic and that the official
exchange rate in that republic should be six dinars to the mark, just as in
Serbia. Vucic, who is also president of Beogradska Banka, said that the
offices of that bank in Montenegro would continue their operation in
accordance with the Law on the National Bank of Yugoslavia and other
regulations." (V.I.P. Daily News Report, Nov.9)
* "Serbian pensioners living in Montenegro will have to exercise their
rights in Serbia, because of a unilateral break of payment traffic between
Serbia and Montenegro, Radule Nonovic of the Montenegrin Post told BETA on
Nov. 9. Nonovic said that no funds for their pensions arrived to
Montenegro, and that those pensioners will have to exercise their rights in
some other way. However, it was said in the Serbian Pension Fund that it
paid in all the money for the second half of the September pensions,
including some 3,000 pensioners living in Montenegro." (BETA news agency,
Nov. 10) "Belgrade's unilateral decision to suspend payment transactions
with Montenegro has led to the blocking of accounts with the postal bank on
Montenegrin territory, where 29,000 have current accounts with the post
office. All customers of the postal bank will be affected by the decision,
as were those whose salaries were supposed to be paid from Serbia into
their giro accounts (whose payments come from Serbia) with the postal bank
yesterday. According to Branimir Gvozdenovic, director of the Montenegrin
Post and Telecommunications, every effort will be made to ensure that giro
account holders are not short-changed, but is uncertain when this will be.
A solution has already been found for giro account holders in Montenegro
who will be paid in cash." (Montena-fax news agency, Nov. 6)
* "Zlatan Perucic director of Beobanka said that banks in Serbia had not
yet received instructions on dealings with Montenegro. He said he expects
this will be discussed at a session of the Association of Yugoslav Banks
which will be held this week, Blic says on Tuesday. He said it's early to
talk of the consequences of the introduction of a parallel currency but
added that this is a politically motivated step by Podgorica. Perucic said
only Montenegro might suffer damages because it's a big question whether
the republic has the economic strength to defend the legalization of a
foreign currency. Perucic said it's not realistic to expect an end to
payments and goods traffic between the two republics and added that
Beobanka branches are not having any difficulties in their operations. The
largest meat processor in the FRY, Carnex of Vrbas and the Vrbas food
producer stopped deliveries to the Montenegrin market at the request of the
Serbian government, B292 radio said on Monday. The station said that a
meeting with those producers was held in the Serbian government on Monday
which said the deliveries of goods were temporarily stopped because some
things in the functioning of the balance of payments with Montenegro were
not clear." (V.I.P. Daily News Report, Nov.9)
* "Montenegro's Prime Minister Filip Vujanovic has Saturday accused the
Yugoslav Central Bank governor of suspending payments between Montenegro
and Serbia...for entirely political motives, with the aim of destabilizing
Montenegro and causing further economic pressure...[Vujanovic] said he
assumed the Belgrade decision would result in a halt to the movement of
goods from Montenegro into Serbia and consequently, 'We have reduced
dependence on Serbia in large measure and have secured alternative
markets.' In the meantime, Montenegro's monetary council has decided to
accept dinar remittances from Serbia selectively. 'Whatever we estimate to
be an incursion into our monetary system we will not carry through,'
council member Dimitrije Vesovic was quoted by radio B2-92 as saying
Saturday. He said Montenegro had decided to take a softer line than Serbia
and to accept remittances from the neighboring republic selectively so that
Montenegrin firms were not adversely affected. Vesovic said, 'Serbia
refuses to accept dinar remittances from Montenegro and Montenegro will not
transfer foreign currency remittances to Serbia because of the
non-convertibility of its system.' " (United Press International, Nov.6)
* "The head of the Montenegrin institute for accounts and payment
transactions and a member of the Montenegrin monetary council, Dimitrije
Vesovic, has said that the unilateral decision to stop payment transactions
between Serbia and Montenegro is a purely political decision backed by - as
he put it - a ludicrous justification about Montenegro's possible incursion
into the payment transaction system in Serbia. Vesovic said that the move
by the Yugoslav National Bank governor was explained with the fact that
Vesovic had not allowed Belgrade controllers to inspect the monetary
council treasury. Vesovic added that this was just an excuse. Immediately
following the decision to introduce parallel currency, a couple of
controllers came from Belgrade to inspect our treasury and accounts. I did
not receive them because I do not regard them as authorized to do this, but
rather the Montenegrin National Bank, Vesovic said, adding that this was
allegedly the reason for the Yugoslav National Bank governor to end payment
transactions with Montenegro allegedly in order to prevent uncontrolled
flow or money from Montenegro to Serbia." (Radio Montenegro, Nov. 5)
* "Federal customs management is no longer functioning on the territory
of Montenegro, Customs Director Mihajl Kertes told media today. 'Montenegro
has not paid customs income into the federal budget for the past two years,
and that debt is now close to 910 million dinars,' said Kertes. The federal
customs director added that neither the border with Albania nor the border
between Montenegro and Kosovo were functioning. However, he said, illegal
entry of goods was being prevented by eighteen police checkpoints on the
border. Kertes added that the petrol now being sold on streets throughout
Serbia was not contraband, saying that this was from legal imports which
had proved the key to the success of the economy this year." (Radio B2-92,
Nov. 9)
* The Montenegrin Monetary Council responded last night to the decision
made by the Yugoslav National Bank ... with the introduction of a program
of selective acceptance of payments from Serbia. All payments from Serbia
will be checked and those that pose a threat to the new monetary system
will be rejected." (Radio B2-92, Nov. 6)
* "The Montenegrin Monetary Council has decided to allow selective dinar
payments from Serbia, to a level which would not cause problems for
monetary stability, it was reported in Podgorica today. The Montenegrin
Institute for Accounts and Payments [ZOP] verified yesterday the payment of
6 million dinars from Serbia to enterprises in Montenegro. ZOP said that it
will 'allow payments related to the flow of money, goods and production,
but payments for other purposes will not be allowed to enter the
Montenegrin payment transactions.' The Montenegrin ZOP has announced that
it will 'not forward foreign currency payments for customers in Serbia,
because the systems of the two federal units are no longer compatible.' ZOP
said that this was a response to the Serbian decision to ban dinar payments
from Montenegro. According to the ZOP report, 'foreign currency users from
Serbia could authorize someone in Montenegro to withdraw the foreign
currency and transfer it to Serbia, with proof that the foreign currency
was legally obtained' . The director of the Montenegrin Post Office,
Branimir Govzdenovic, said that the Postal Savings Bank has agreed to
forward salary and pension payments from Serbia to the customers' current
accounts." (SRNA news agency-Bijeljina, Nov. 6)
PODGORICA NULLS RESPONSE
* "The director of the Montenegrin Payment Traffic Authority and a
member of the Currency Board, Dimitrije Vesovic, said on Nov. 5 that the
board will certainly respond to a decision by the Yugoslav Central Bank on
the halting of payment traffic with Montenegro by taking reciprocal
measures. A member of the Montenegrin currency board Bozidar Gazivoda said
on Nov. 5 that Podgorica would not retaliate to the Central Bank's decision
to limit the payment traffic between Serbia and Montenegro. 'We will not
introduce sanctions as they did... for we believe that this was a rash act
by Serbia and that it will be abandoned,' said Gazivoda" (BETA news agency,
Nov. 8) "The economy minister of pro-Western Montenegro was quoted on
Friday as saying that the Yugoslav dinar might be taken out of
circulation....There had been reports that Montenegro's newly established
monetary council planned it for that measures against Serbia, but the body
met on Friday without any such decisions." (Reuters, Nov. 5) When asked by
a journalist whether there was a risk of a foreign currency drain to Serbia
if payment transactions were made exclusively in foreign currency, Vesovic
replied that economic subjects in Montenegro would continue to obtain
certain goods from Serbia which had to be bought anyway, if prices were
competitive compared to other countries." (Montena-fax news agency, Nov. 5)
III. POLITICAL AND SECURITY DEVELOPMENTS
INDEPENDENCE REFERENDUM TO BE DELAYED INDEFINITELY
* "The chairman of the executive committee of the Democratic Party of
Socialists of Montenegro [DPS - led by President Djukanovic], Miodrag
Vukovic, who is also presidential adviser for the constitutional system,
has said that Montenegro will hold a referendum on the status of the
republic regardless of whether the response from Serbia to Montenegro's
offer on the redefinition of relations is positive or negative. 'Our offer
to the Republic of Serbia is the offer for a new beginning. Montenegro will
act in line with the constitution in any case. If the response from Serbia
is positive, we shall ask our citizens if they want to live in such a
federation. If Serbia's response is negative, we shall ask our citizens on
the future status of Montenegro,' Vukovic said at a round table of
Montenegrin legal experts in Podgorica yesterday. He added that Montenegro
was already a state with a developed democratic infrastructure and that it
was striving towards European and wider integrations." (Radio Montenegro,
Nov. 7) "Should Serbia respond positively to the Montenegrin government's
offer to re-define relations between Montenegro and Serbia, at the
referendum, as Vukovic put it, the citizens will answer the question as to
whether they want to live in a re-defined community of two republics. On
the other hand, if Serbia gives a negative reply, the referendum will be
slated in order for the citizens to declare themselves on the state and
legal status of Montenegro." (V.I.P. Daily News Report, Nov. 8)
* "Montenegrin President Milo Djukanovic...has recently told Western
leaders he would delay indefinitely an earlier planned referendum on
secession from Yugoslavia, so as not to provoke a new military crisis in
the Balkans. But Djukanovic took the currency measure this week under
growing pressure to protect his nation's economy against the dinar's rapid
inflation." (Inside the Pentagon, Nov. 4)
* "Many believe the risk of a crisis remains low because Yugoslavian
President Slobodan Milosevic is eager to avoid a conflict with Montenegro
in the short term...Milosevic has said he would not use force to stop
Montenegro from declaring full independence from Yugoslavia if that is the
will of its people. But the Yugoslavian leader has warned that a civil war
could break out inside the province, leaving open the possibility that the
approximately 12,000 Yugoslavian troops stationed in Montenegro would
provide firepower and logistics support to pro-Belgrade factions there...If
war does break out, Djukanovic has at his disposal a security force of
10,000 to 15,000 troops -- roughly the size of Milosevic's force in the
province. But on its own the Montenegrin security force would likely be no
match for the armor Milosevic could bring in, sources said." (Inside the
Pentagon, Nov. 4)
BELGRADE: PODGORICA "IMPLEMENTING U.S. INSTRUCTIONS"
* "Serbian Information Minister Aleksandar Vucic has said that the
Montenegrin authorities are implementing separatist policies on US
instructions. What Madeleine Albright says, they will implement, Vucic told
the Belgrade-based Palma TV. He accused the USA of conducting barbarous and
totalitarian policies. He stressed that the Serbian Radical Party would
'protect Slobodan Milosevic's head as long as Americans were attacking him.
Milosevic is one of the USA's enemies. They want his head, and we shall
defend his head. The Americans accused him of committing war crimes. War
criminals accused him of war crimes. What better reason do you need to
defend him,' the Serbian information minister said. Asked whether he feared
that he would be brought to The Hague, Vucic gave a negative reply. I would
be glad to be invited there. I am proud of everything I did to the Albanian
terrorist media, Aleksandar Vucic said." (Radio B2-92, Nov. 5)
* "The deputy chairman of the [Montenegro] Socialist People's Party
Predrag Bulatovic, has announced the possibility of Serbia adopting its own
platform on redefining relations within the Federal Republic of Yugoslavia,
Podgorica-based Pobjeda reported in its latest edition. Bulatovic added
that a nationalist movement could appear in Serbia if Montenegro were to
secede. He said that such a movement could exert nationalist pressure on
(Serbian) citizens born in Montenegro." (Radio Bosnia-Herzegovina, Nov. 7)
MONTENEGRIN MILITIA, ASSEMBLY COUNCILS ORGANIZING
* "The council of popular assemblies of Montenegro, an association formed
after the recent clan gatherings and registered in Belgrade, organized an
action of signing statements under which citizens swear to consistently and
to the end defend the joint state of Montenegro and Serbia, V.I.P.'s
Podgorica correspondent reported. A statement by the council said that the
signed statement 'is an expression of the joint thoughts and feelings of
the citizens of Montenegro and obligations towards heirs because of which
Montenegrins lived and died.' " (V.I.P. Daily News Report, Nov. 9)
* "The Montenegrin Liberation Movement [COP, pro-independence
paramilitary organization based in Cetinje] has 20,000 members who are
prepared to defend Montenegro, COP leader Bobo Bogdanovic has said in
Cetinje. 'We now have 20,000 people under arms and they have been organized
into three territorial groups,' Bogdanovic told Reuters, and added that he
was not an enemy of the Serb people and that the COP would use force only
if Montenegro was directly threatened by the army of Yugoslav President
Slobodan Milosevic... Bogdanovic explained that the relationship between
the Montenegrin police and the COP was based on tolerance and that the
movement had been armed without the knowledge of the authorities. 'If we
are attacked, we will defend Montenegro regardless of what the authorities
would say or do. The Yugoslav Army is an occupying force here,' Bogdanovic
said." (SRNA news agency-Bijeljina, Nov. 6)
MONTENEGRO ARRESTS BELGRADE OFFICIALS
* "The Serbian Radical Party is informing the public that Nebojsa
Velickovic, federal minister without portfolio, was stopped by a
Montenegrin Ministry of Internal Affairs police patrol at the Ribarevina
police checkpoint [November 6], the party announced today. The head of the
police patrol told Minister Velickovic that the Yugoslav currency that he
was taking with him for travel expenses could not be taken into Montenegro
and that it must be taken away from him, which Minister Velickovic refused
to do. After being held for an hour, the minister was allowed to continue
his journey to Bar and was told in a very unpleasant manner 'not to try to
enter Montenegro in this way' in the future. The night before this
incident, Dusan Sekulic, assistant federal minister of internal affairs,
was stopped at the Kontari police checkpoint. A police patrol of the
Montenegrin Ministry of Internal Affairs tried to search his car, which is
federal government property. When Sekulic did not allow the search, he was
held for about an hour for no reason, after which the Montenegrin police
allowed him to continue his journey." (Tanjug state news agency Nov.7)
* "Radio B292 reported on Monday that the Montenegrin police controlled
drivers crossing from Serbia into Montenegro carrying foreign currency. The
Montenegrin government said drivers with larger amounts of foreign currency
will have their money temporarily taken away and added that the Montenegrin
police is obliged to give them receipts for the cash. Danas says on Tuesday
that the Montenegrin government decided that no one can take more than 300
deutschmarks out of Montenegro without a bank receipt but did not specify
when that measure was introduced. The Montenegrin police did not have
receipts on Monday nor did it know why the foreign currency was being taken
away, causing huge backups on the border, B292's Podgorica correspondent
reported but did not specify the amount of foreign currency taken away from
drivers. The station said that Montenegrin Industry Minister Vojin
Djukanovic said citizens could buy more than 20 liters of gasoline a month
for dinars but did not say how much more. Jugopetrol Kotor said over the
weekend that it would sell only 20 liters of fuel a month for dinars as of
Monday."(V.I.P. Daily News Report, Nov.9)
* "On Nov. 9 the Montenegrin Parliament discussed the Bill on Amnesty
which envisages the dropping of criminal charges against all persons who
failed to respond to a call-up in the March 15-June 30 period this year, or
willfully left the Yugoslav Army units in the same period. Representatives
of the coalition For a Better Life, who proposed the new amnesty law,
described it as a 'protective law' by which Montenegro 'will protect its
citizens from illegitimate actions of the illegitimate federal government.'
Representatives of the Socialist People Party contested the constitutional
grounds for passing a Montenegrin law on amnesty by pointing out that there
cannot be a republican law granting amnesty for offenses regulated by a
federal law. The discussion on the bill will continue on Nov. 10." (BETA
news agency, Nov. 10)
VUJANOVIC MEETS INDICTED WAR CRIMINAL; DJUKANOVIC WON'T RISK ARREST
* "President Djukanovic: "I wish first to state our firm commitment to
ensuring full cooperation with the International Tribunal in The Hague. We
regard this as an international obligation that Mr. Milosevic has assumed
at Dayton. And more than that formal consideration, we sincerely believe
that people who are indicted and suspected of having committed war crimes
must be held accountable for this. Still, I think that you will agree that
Montenegro is not the most responsible and is not that player which should
bring to the court, to the tribunal in The Hague, those who have been
suspected and indicted as war criminals, especially if such attempts from
our part were linked to a high degree of risks, risks that the
international community is cautioning Montenegro not to take."(Press
Conference of Secretary Albright and President Djukanovic, Nov. 4)
* "The Montenegro Helsinki Committee feels that the Montenegrin
government must respect the agreement which Montenegro signed by the
International War Crimes Tribunal in The Hague...The Montenegrin
authorities are still tolerating persons in Montenegro who have been
charged with war crimes,' committee Chairman Slobodan Franovic said
recalling that Montenegro was visited these days by General Dragoljub
Ojdanic who was charged with crimes in Kosovo. Franovic said that the
committee is additionally concerned because Ojdanic talked with Prime
Minister Vujanovic, but even more that the army is without any local
control and influence which could generate events in Montenegro according
to its will. 'We feel that because of obligations to justice, solidarity
and the victims all the obligations must be lifted from the people because
that is the certain way to sanction individuals who committed evil deeds
and violated human rights and liberties. A mood must be created for
individuals to be held responsible, not to bring entire nations under
suspicion,' Franovic said." (V.I.P. Daily News Report, Nov. 9)
* "Djukanovic and his U.S. hosts found reasons to explain away a meeting
on Thursday between Montenegrin Prime Minister Filip Vujanovic and Yugoslav
army chief of staff Dragoljub Ojdanic, who is an indicted war criminal
wanted for trial in The Hague. 'Montenegro is not the player which should
bring criminals, especially if such a step on our part were linked to a
high degree of risk, risk that the international community is cautioning
Montenegro not to take,' Djukanovic said. State Department spokesman James
Rubin added 'Secretary Albright has great confidence that if President
Djukanovic were free to act, than he would act in full conformity with the
need to cooperate with the War Crimes Tribunal. We believe that his
intention to cooperate with the tribunal is genuine.'" (Reuters, Nov. 4)
* "The Yugoslav Army is behaving in Montenegro like the private army of
Slobodan Milosevic, Montenegrin President Milo Djukanovic said in an
interview on CNN [Nov. 7]. Djukanovic said that the initiative for last
week's meeting between army chief Dragoljub Ojdanic and Montenegro's prime
minister, Filip Vujanovic, had definitely come from the army. The
Montenegrin president said that he was at a loss to explain the army's
motives, but said he seconded Vujanovic's view that there was great concern
about and opposition to the army behaving like a private security service
in Montenegro. Djukanovic added that he believed the army's attitude in
Montenegro was linked to Milosevic's plans to destabilise the democratic
government of Montenegro. (Radio B2-92, Nov. 8)
* "MP's of the Liberal Union of Montenegro accused the Montenegrin
authorities of not adhering to the previous pledge to arrest all those
suspected of war crimes who crossed into Montenegrin territory. 'Instead of
arresting the Yugoslav Army chief-of-staff, Gen. Dragosljub Ojdanic, the
Montenegrin Premier Filiip Vujanovic met with him in Podgorica,' said a
party MP Miodrag Zivkovic at a Montenegrin legislature session on Nov. 4.
Similar accusations also came from the former leader of that party, now an
MP, Slavko Perovic." (BETA news agency, Nov. 5)
* "Montenegrin Premier Filip Vujanovic and the Yugoslav Army's chief of
general staff, Dragoljub Ojdanic, discussed the current political situation
and security in the country, and Montenegro in particular. The talks,
conducted in the evening of Nov. 3, focused on relations between the
Yugoslav Army and the Republic of Montenegro's bodies and their
cooperation, with the aim of 'promoting peace, security and the general
well-being of citizens,' the premier's cabinet and the Second Army's
Information Service announced on Nov.4. The announcement specified that
Vujanovic met with Ojdanic 'in Montenegrin President Milo Djukanovic's
absence.' The Yugoslav Army general staff's Information service stated on
November 4 that General Ojdanic, accompanied by the Yugoslav Navy's Vice
Admiral Milan Zec, began the inspection of some Navy commands and units and
expressed satisfaction with their 'training and drill.' " (BETA news
agency, Nov. 5)
POWER SHIFTS IN FEDERAL RANKS?
* "Serbian health minister and Yugoslav Left official, Leposava
Milicevic, said in Lebane on Nov. 8, that her party will call for the
accountability of the Yugoslav federal government. At a special session of
the Lebane municipal assembly, commemorating the town's day of liberation
in World War Two, Milicevic said that 'this (federal) government and all
the parties in it turned a blind eye to the Yugoslav Left's proposals,
which can help this country in its misery and despair caused by the New
World Order' and she accused 'other parties' of usurping parts of the
Yugoslav Left's program and taking credit due others. She added that the
Yugoslav Left knows how the state and the people can avoid the nightmare
'towards which the world powers are pushing us,' and added that it will
call for the accountability of the federal government since, as Milicevic
said, the government was ignoring the renewal program recently sent by the
Yugoslav Left." (BETA news agency, Nov. 9)
*"Miodrag Vukovic, chairman of the executive board of the Montenegrin
Democratic Party of Socialists, told BETA on Nov. 8, he was not surprised
by the Yugoslav Left's announcement that it would 'demand that the federal
government be held accountable for what has happened, because everyone knew
that such a government could not last very long. That was a very unnatural
coalition of authentically Serb, allegedly civic, but in fact undeniably
national and nationalist parties, which clearly voiced their demands for a
united Yugoslavia, that is, a Greater Serbia,' Vukovic said. He added,
'There is also a political group from Montenegro that has been a faithful
servant of this coalition over the past two years, which manipulated its
voters by claiming to defend Yugoslavia from us 'separatists.' Vukovic went
on to say that statements by Serbian Radical Party leader Vojislav Seselj
alleging that '(Yugoslav prime minister) Momir Bulatovic has no say in what
goes on in the country,' and Yugoslav army chief of staff General Dragoljub
Ojdanic's claims that 'the two Bulatovics are to blame for conditions in
the army' and the Yugoslav Left's claims that the federal government is to
blame for everything 'can confuse only the uninformed.' In its Nov. 6
issue, the Podgorica based Vijesti newspaper quoted Gen. Ojdanic as saying
that prime minister Bulatovic, deputy prime minister Nikola Sainovic, and
federal defense minister Pavle Bulatovic were to blame for the poor
financing of the army. Momir Bulatovic's Socialist People's Party refused
on Nov. 8 to comment the above allegations, and party vice president
Predrag Bulatovic told BETA that he had yet to be informed of these
statements 'because it can turn out that this is a setup.' " (BETA news
agency, Nov. 9)
* "On Nov. 8 Yugoslav army headquarters denied allegations printed by the
Podgorica daily Vijesti that during his visit to the Second Army,
chief-of-staff General Dragoljub Ojdanic blamed Yugoslav prime minister
Momir Bulatovic, deputy prime ministers Nikola Sainovic, and defense
minister Pavle Bulatovic for the money shortage in the army. The army said
that 'the figures published in the daily represent a lie that confirms an
anti-Yugoslav and an anti-army editorial policy and another attempt to
encourage distrust of the state leadership and harm the many times proven
unity between the army and the people.' " (BETA news agency, Nov. 9)
* "Montenegrin vice premier Novak Kilibarda said on Nov. 8, that 'the
attack on the so-called federal government was expected. General Dragoljub
Ojdanic had hinted of such an attack, and it was clear that his criticism
of Momir and Pavle Bulatovic means the beginning of a process that will
bring new people into the federal government,' Kilibarda told BETA,
commenting announcements that the Yugoslav Left would call for the
accountability of the federal government. Kilibarda said that it 'is not a
bad thing,' but it could be if the government is replaced by a new one
'controlled by the Yugoslav Left.' Asked if it was possible that a new
federal government would include people from the ruling coalition in
Montenegro, Kilibarda said, 'They can only use people from the Socialist
People's Party who remain faithful to Milosevic. The Democratic Party of
Socialists, on the other hand, has an obligation to its coalition
partners.' " (BETA news agency, Nov. 9)
51% OF SERBS BELIEVE IN "FULL EQUALITY" OF REPUBLICS
* "Fifty-one per cent of the citizens of Serbia believe that the
Montenegrin leadership's demand for the full equality of the two federal
republics is justified, while 25 per cent believe that the Montenegrin
demand for constitutional equality in power sharing is unrealistic, a poll
conducted in September by the Mark Plan [Belgrade] agency has shown, as
reported by today's issue of Vijesti. Seventy percent of the citizens
polled in Montenegro were in favour of full equality with Serbia, while 12
percent said there was no justification for such a demand by the
Montenegrin leadership." (Montena-fax news agency, Nov. 5)
