S E R B I A W A T C H # 135 - June 18, 2000

Serbia Watch, a bulletin reporting civil society, political and economic developments on Serbia, is issued by the Open Society Institute (Washington office-John Fox, director). Please communicate any questions, comments or requests to receive Serbia Watch to Kristine Powers (researcher) at 202-496-2401 or kpowers@osi-dc.org

"This time again, only God saved Vuk." Milena Popovic, Serbian Renewal Movement spokesperson Quoted by Associated Press, June 15 -- Belgrade

"Our state is in the hands of murderers. It is run by a terrorist regime...[the assailants] could not have acted without the approval of Slobodan Milosevic...The Serbian secret service is no doubt hiding behind the assassination attempt...[the assailants were] the same ones who tried to kill me in October. But even if I am a target, my duty is to continue to fight. It is the only chance for my people and my country to survive. I am like Salman Rushdie, who was given to hunters by the Ayatollah Khomeini." Vuk Draskovic, president of Serbian Renewal Movement,after reported assassination attempt

Quoted by Agence France Presse, June 17 -- Budva

"Everyone was unhappy with Draskovic...There's a penalty for having one foot

in one camp and one foot in the other." Unnamed leader of "small opposition party" Quoted by Los Angeles Times, June 17 -- Budva

"It's impossible to understand what those actually think..What has happened,

is the activation of the first echelon of the regime's people within the opposition. What remains in the opposition agrees only on making the joint lists but there's a real hell waiting for them when they start drawing up those lists and setting quotas. That's when the second echelon will be activated... I'm afraid that this will cause new rifts. This is not a lone action but part of a plan which includes more pressure on independent media, more rifts in the opposition and probably preparations to set impossible election conditions and create as many possibilities as possible for election fraud. That is the only way the authorities could call elections since the current balance of forces gives it no chance of winning those elections...If Draskovic boycotts the elections, then a large number of his votes would go to the opposition. I don't believe he will leave it at that. He would do a greater favor to his employer if he turned out for the elections and divided the opposition voters than if he boycotts the e

lections. I think that's exactly what he'll do."

Srbobran Brankovic, director, Medium Index polling agency

Quoted by V.I.P. Daily News Report, June 14 - Belgrade

"This [government crackdown on NGOs] is a part of a broad campaign against

NGOs such as the Helsinki Human Rights Committee and Women in Black. I

assume that the list of NGOs will be extended in a desperate attempt by the

state to prove the alleged existence of a fifth column and a plot."

Dusan Janjic, director, Forum for Ethnic Relations

Quoted by Radio B2-92, June 7 -- Belgrade

"The new terrorism act would be expanded so as to include activities that

the previous act did not address... a comparative legal analysis has shown

that terrorism as a major evil also includes activities not covered by

existing regulations." Nikola Sainovic, FRY deputy prime minister, indicted by U.N. International Criminal Tribunal Quoted by Glas Javnosti, June 16 -- Belgrade

"This morning police came for me at 4:30 am. This is the fourth time I'm

being arrested and the procedure is already clear - they will take me to the

police station for sure, except I might also get slapped if I resist...On the way, the policeman explains that he's not happy to be doing this either, but, as he says 'he's following orders'...We are arrested without any reasonable cause...They mostly ask us the same questions...we have to convince them that we have no intention to call on the citizenry to demolish, burn and break...and finally explain that the recruitment doesn't mean we intend to become a military formation etc...After three psychologically exhausting hours we are finally free, till the next time, they warn us...As I go home, I watch the people of Subotica sitting in café gardens...I know very few of them will be worried about [OTPOR arrests] because this can never happen to them, for God's sake, they are not in Otpor. And everything is telling me I should give up all this, change my

address and live my little life with as few problems as possible, but I will

not give up. Someone might call me a masochist [but] in Serbia today you can

only live if you live Otpor! Everything else is only acting."

Slobodan Pavkov, OTPOR activist From a letter published on OTPOR's web site, June 10 -- Belgrade IN THIS SERBIA WATCH:

-- Vuk slightly wounded, shooting suspects caught -- Montenegro arrests suspects, sacks security officials -- Vuk, Danica: Slobo and Mira responsible

-- Podgorica: "Sponsor is from Belgrade" -- Belgrade: Podgorica, U.S. staged shooting -- U.S.: Belgrade "responsible" for "state terror"

-- Seselj rivalry motive for shooting? -- Canak: Shooting result of cooperating w/ regime -- New constitution gives Slobo lifetime rule?

-- Regime takes SPO seats in upper house -- Seselj threatens coalition breach

-- Mladic at 119 Blago Ja Parovica, Belgrade -- Police crackdown on Belgrade NGOs -- Journalist charged with spying -- SPO, DSS spurn Cacak protection plan

-- Opposition forms "solidarity network" -- All but SPO agree to prepare election slate -- SPO: Yes, we will not boycott the elections, maybe

-- Studio B to broadcast from Republika Srpska -- Milosevic embraced by, decorates Li Peng -- Ivanov: "Our partner" even if regime changes

-- Kraljevo veterans protest poverty -- Milosevic exploits grain sales to fuel regime -- E.U. partial sanctions lift may pressure non-regime business

POLITICAL PARTIES, MOVEMENTS, LEADERS:

Opposition

DA - Democratic Alternative (Nebojsa Covic, president)

DAN - Coalition of DA, DC, ND

DC - Democratic Center (Dragoijub Micunovic, president)

DHSS - Christian Democratic Party of Serbia (Vladan Batic, president)

DS - Democratic Party (Zoran Djindjic, president)

DSS - Democratic Party of Serbia (Vojislav Kostunica, president)

G-17 - Group of independent economists (Mladjan Dinkic, coordinator)

GSS - Civic Alliance of Serbia (Goran Svilanovic, president)

League of Vojvodina Hungarians (Joszef Kasza, chairman)

LSV - League of Vojvodina Social Democrats (Nenad Canak, chairman)

ND - New Democracy (Dusan Mihajlovic, president)

NS - New Serbia (Milan Protic, Velimir Ilic, co-presidents)

OTPOR - Youth movement "Resistance"

PDS - Movement for Democratic Serbia (Momcilo Perisic, president)

Reform Democratic Party of Vojvodina (Mile Isakov, chairman)

Sandzak Coalition (Rasim Ljajic, chairman)

SD - Social Democracy (Vuk Obradovic, president)

SDA- Party of Democratic Action of Sandzak (Sulejman Ugljanin, pres.)

SDU - Social Democratic Union (Zarko Korac, president)

SPO - Serbian Renewal Party (Vuk Draskovic, president)

SZP - Alliance for Change (Zoran Djindjic, coordinator)

Vojvodina Coalition (Dragan Veselinov, president)

SNV - Serb National Council of Kosovo (Momcilo Trajkovic, chairman)

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)

VJ - Yugoslav National Army

[Please note: Serbia Watch and Montenegro Watch will be taking a summer

break; we will resume publication in mid-July.]

I. ATTACK ON DRASKOVIC

VUK SLIGHTLY WOUNDED, SHOOTING SUSPECTS CAUGHT

***"Serb opposition leader Vuk Draskovic was slightly wounded when gunmen sprayed automatic weapons fire through an open window at his vacation home [in Budva, Montenegro] his party said Friday. The shooting occurred around midnight Thursday near this coastal town in Montenegro where Draskovic had been vacationing for two days. His Serbian Renewal Movement called the shooting a 'new assassination attempt' on its leader...a Draskovic aide, Milan Bozic, said Montenegrin police were questioning several suspects...About 20 heavily armed Montenegrin police were stationed around Draskovic's two-story, whitewashed Mediterranean-style house. A police inspector and another officer could be seen moving about inside the house. Local villagers said they saw Draskovic being driven to hospital early Friday but refused to talk about the attack...According to [Draskovic's wife, Danica] Draskovic had told local police he was in Montenegro but declined their offer of protection. After the first bullet grazed his temple, Drask

ovic threw himself on the living room floor, his wife said. One

of the bullets hit his ear lobe, she said. Montenegro's police chief Vukasin

Maras, interviewed along with Draskovic, told The Associated Press that

police now face attempts by Belgrade to export 'state terrorism' to Serbia's

junior republic. 'This is a monstruous conspiracy,' Maras said, adding he

felt personally responsible for Draskovic's injury...Draskovic said he was

alone in the house, watching television at the time of the attack. After the

shooting, he managed to run to a neighbor's house and call for help.

Draskovic was brought to a hospital in Kotor where he was treated and

released." (Associated Press, June 16) "Yugoslav state agency Tanjug quoted

Kotor hospital manager Nebojsa Bjelica as saying that Draskovic was treated

for two wounds -- one bullet went through his ear, while the other wound

caused a seven-centimetre (three-inch) long, one-centimeter deep wound on

his temple. According to several sources in Kotor, Draskovic has been placed

under police protection." (Agence France Presse, June 16)

***"Despite his charisma, [Vuk Draskovic] has failed to mobilize much

support on the streets in recent months or to unite convincingly with other

opposition leaders...[After the regime takeover of Studio B] Mr. Draskovic

apparently feared for his safety, and immediately traveled to Montenegro,

Serbia's sister republic in the Yugoslav Federation, and asked for

protection from President Milo Djukanovic, who leans toward the West. 'His

hands were still shaking,' said a foreign diplomat who saw Mr. Draskovic

shortly after his arrival...Mr. Draskovic thought that there were two

attackers who approached through the garden and broke the window glass as

they fired [Draskovic's advisor Ognjen] Pribicevic said...He left the

hospital for an unknown destination." (New York Times, June 16)

MONTENEGRO ARRESTS SUSPECTS, SACKS SECURITY OFFICIALS

*** "Montenegro's police announced Friday night they had arrested those

responsible for an armed attack on Serbian opposition leader Vuk Draskovic.

'We arrested perpetrators of this crime,' said Montenegrin deputy Interior

Minister Vuk Boskovic. 'We seized their weapons, we arrested people who

helped them and we know who ordered the crime.' Boskovic refused to provide

other details, including how many were detained, but said a full statement

would be released Saturday. Boskovic added that the gunmen 'followed

Draskovic all the way from Serbia with a murderous intention.' " (Associated

Press, June 16) "Embarrassed by the attack, Montenegrin authorities demoted

two senior security officers. Montenegro's interior minister, Vukasin Maras,

said he would offer his resignation." (Associated Press, June 17) "Two

high-ranking officials of the Montenegrin State Security Service (SDB) were

sacked Friday after an assassination attempt...The SDB leaders for Budva and

Bar, Velizar Marovic and Bozo Lakic, lost their jobs over the attack on

Draskovic in his vacation home in the coastal resort of Budva Thursday

night, the Podgorica daily Vijesti said...The newspaper said two other

security officials, Rajko Kuljaca, chief of the Budva Public Security

Department and Predrag Asanin, chief of the Bar Public Security Center,

would also be sacked." (Deutsche Presse Agentur, June 17)

VUK, DANICA: SLOBO AND MIRA RESPONSIBLE

***"[Vuk Draskovic] told reporters Friday that orders for 'my liquidation

could not have been reached without the knowledge of those who run the

country. And in this case, it is Slobodan Milosevic and his wife.' "

(Associated Press, June 17) " 'The Serbian authorities had me followed

knowing that I don't like security. What happened upon my return from

Moscow, when they arrested my security staff, was a prelude for what

happened in Budva. They stripped me of my security, they saw I was alone,

and decided to do what they did,' Draskovic claimed, adding that 'They've

turned this country into a concentration camp, there's no law, no judiciary,

there's nothing. It is worse in Serbia today than in 1945. It's the Balkan

Iraq,' Draskovic said. Reuters reported that Danica Draskovic, showed

journalists the bullet holes and bloodstains in the room. When asked who

should be blamed for this, she said, 'Slobodan Milosevic and Mira Markovic,

who else'." (Radio B2-92, June 16) "Draskovic's wife Danica also blamed

Milosevic's secret service, known by its Serbian language initials DB. 'It

was so much easier to get to Vuk here in Montenegro where he was alone,'

Danica Draskovic said." (Agence France Presse, June 16) "Ordinarily,

Draskovic travels with his own security. Two weeks ago, however, his four

bodyguards were arrested in Belgrade for illegal weapons possession."

(Associated Press, June 17) "[Draskovic] said Saturday he will remain in

Montenegro while recovering from a gun attack." (Associated Press, June 17)

PODGORICA: "SPONSOR IS FROM BELGRADE"

***"Montenegro's Deputy Interior Minister Vuk Boskovic also has accused

Belgrade of being behind the attempt on Draskovic's life, the republic's

Vijesti newspaper reported Saturday. 'It is perfectly clear that the sponsor

is from Belgrade,' Deputy Interior Minister Vuk Boskovic told the

Montenegrin daily. Police have uncovered the apartment in Budva in which the

attackers hid and planned the assassination attempt, as well as the weapon

used in the attack and other pertinent evidence, he added. Boskovic

announced Friday on Montenegrin television that he knew who ordered the

attack but could not release further details. He announced that the full

details would be revealed on Saturday, but by noon Sunday Montenegrin

police only said the 'investigation has continued,' noting that it would

announce its findings 'in the coming days,' state television reported.

Neither Draskovic nor the Montenegrin police have provided evidence to

support their claims against Milosevic's regime." (Agence France Presse,

June 17) "The Montenegrin Interior Ministry stated today that Vuk Draskovic

'during last night's assassination attempt was hit with two projectiles,

after which several unidentified perpetrators, left in an unknown direction.

While he was in his dining room, unknown perpetrator, or several of them,

approached the house from the courtyard and fired seven 7,65 calibre shots

through an open window, from an unknown weapon, in the direction of Vuk

Draskovic.' The statement said that 'the Ministry was undertaking broad

measures and actions in order to find and arrest the perpetrators of this

criminal act.'...Montenegrin Minister of Police Vukasin Maras has linked the

assassination attempt on Vuk Draskovic with the recent murder of President

Djukanovic's advisor Goran Zugic, saying that these two events warned about

efforts to move terrorism from Belgrade to Montenegro."(independent Radio

B2-92-Belgrade, June 16)

BELGRADE: PODGORICA, U.S. STAGED SHOOTING

***"In Belgrade, Yugoslav Telecommunications Minister Ivan Markovic

dismissed the charges, laying blame on pro-Western Montenegrin President

Milo Djukanovic, US Secretary of State Madeleine Albright and the Serbian

opposition itself. The official Yugoslav Tanjug news agency reported the

attack Saturday as a 'so-called assassination bid.' " (Agence France Presse,

June 17) "Yugoslav Telecommunications Minister Ivan Markovic ridiculed the

allegations of government involvement, saying Secretary of State Madeleine

Albright, Montenegrin President Milo Djukanovic and 'terrorists' from a

militant student organization had all decided 'to publicly support

Draskovic, with the aim to disrupt his vacation.' Indirectly, he was

inferring that the U.S. and pro-Western opposition had staged the shooting

to drum up popular support for Draskovic and discredit the Yugoslav

government. The state Tanjug news agency also sought to dismiss Draskovic's

accusations and cast doubts on his account of the attack. 'It is strange

that Draskovic was shot at four times from the terrace of his house, and

that he suffered only a pierced ear and a light flesh wound on his

head...Draskovic hurriedly left the scene, probably to think how to concoct

something,' the agency said. Tanjug said 'nobody in his right mind' wanted

to solve political conflicts 'through violence and assassinations.' It went

on to repeat allegations that Montenegro's government is subservient to the

United States, which wants 'by hook or by crook' to bring to power 'obedient

puppet politicians.' 'Mr. Draskovic is undoubtedly of that kind,' Tanjug

said." (Associated Press, June 17)

U.S.: BELGRADE "RESPONSIBLE" FOR "STATE TERROR"

***"I want to make clear that the United States strongly condemns the very

cowardly attack on the Serbian Renewal Movement leader Vuk Draskovic

yesterday on June 15th. We are heartened to hear that Mr. Draskovic suffered

only relatively minor injuries in the shooting and that he is out of the

hospital. We have conveyed our wishes to him for a speedy recovery. This

attack is the latest appalling incident reflecting the climate of violence

and lawlessness that the Milosevic regime has fostered in the former

Yugoslavia. In the last several months, the regime has been responsible for

a wave of arrests, beatings of students, closures of media organizations,

and court prosecutions to stifle any dissent. Regime insiders participate in

criminal activities. A wave of murders of senior figures has gone unsolved.

The regime has responded by launching ludicrous charges against nonviolent

dissenters and outside forces. The regime's responsibility for the violence

and oppression in Serbia, which Draskovic has rightly called 'state terror'

emphasizes again the importance of Serbia's making the transition to

democracy and assuming its rightful place in Europe...We do take seriously

the statements by Draskovic and by the Montenegrin government that assigned

blame to Belgrade...I don't have any independent information to share with

you. We have seen the statement by both Mr. Draskovic and by the Montenegrin

governments, and we treat those statements with great seriousness because we

believe that those are responsible people in this situation. As far as the

general climate and the many other things that have occurred, I said before

that we hold the Milosevic government responsible for the climate of

lawlessness and for many of these things that are occurring. Does that mean

I can actually accuse him of a specific crime? Maybe not, but the general

atmosphere that is being created there and the situation that has been

created there by the Milosevic regime to us is quite clear and is very much

his responsibility." (statement, Richard Boucher, U.S. State Department

Spokesman, June 16)

RUSSIA: "STRONGLY DEPLORE ACT OF TERRORISM"

***"On June 16, Minister of Foreign Affairs of the Russian Federation Igor

Ivanov sent a letter to Vuk Draskovic, chair of the Serbian Renewal

Movement, saying: 'It was with profound concern that I heard the news of an

attempt on your life. I strongly deplore this act of terrorism, an act not

only aimed against your personally, but also posing a threat to the

democratization process in Yugoslavia. 'I offer you my sincere sympathy and

wishes of early recovery. 'I hope that the official authorities will take

all the necessary measures to thoroughly investigate the incident and punish

the culprits.' " (statement, Russian Foreign Ministry, June 16)

SESELJ RIVALRY MOTIVE FOR SHOOTING?

***"The Serbian and Montenegrin capitals were rife with rival speculation

that more radical elements of the regime or even adversaries within Serbia's

bitterly divided opposition movement could have been gunning for the

53-year-old politician...Other politicians said Draskovic might have enemies

other than Milosevic. The opposition leader's recent reluctance to lead

street protests against the regime or commit his party to an all-out

electoral campaign fed speculation that he is seeking a power-sharing deal

with the strongman. That, according to the speculation, could have made

Draskovic a target of rival oppositionists or of Vojislav Seselj, an

ultranationalist who might be displaced from Milosevic's ruling coalition in

the event of such a deal...In the interview, Draskovic denied any hope of

joining forces 'with a dictator who is trying to kill me.' His opposition

party objects to participation in local and federal parliamentary elections,

which are likely to be called for November, under what he called 'the

current state of terror.' " (Los Angeles Times, June 17)

CANAK: SHOOTING RESULT OF COOPERATING W/ REGIME

***"President of the Vojvodina League of Social Democrats Nenad Canak

described last night's incident as a the direct result of Draskovic's recent

cooperation with the regime saying that what happened to him was the destiny

of all those who had dealings with the regime. Canak also said that the fact

that the attempt took place in Montenegro was an attempt by the regime in

Belgrade to involve the southern republic in 'the Yugoslavian story of

unsolved liquidations, just before the introduction of the new notorious law

on terrorism.' "(Radio B2-92, June 16)

OPPOSITION: "VIOLENCE PREVAILS ON POLITICAL SCENE"

***"The attack on Serbian opposition leader Vuk Draskovic confirmed that

'violence has fully prevailed on the political scene' in Yugoslavia, an

opposition leader said Friday. 'Instead of competing in elections,

(political) opponents ... more often draw guns than political arguments,'

Vojislav Kostunica of the Democratic Party of Serbia said in a statement,

the independent Beta news agency reported...The attack appears to have been

a 'terrorism act', despite the fact that no one has claimed responsibility

for it so far, said Budimir Babovic, a former Interpol offical and security

expert. 'If a terrorism act was organized by a state, then it would not say

a word, of course,' Babovic added. Serbian opposition leaders condemned the

attack, expressing fears that the violence which has rocked Serbia is

spreading to Montenegro...'A very bad thing is that the wave (of murders)

has spread from Belgrade to Montenegro,' Zoran Zivkovic, a top official the

Democratic Party, told AFP. 'It is very dangerous that the wave of violence

is spreading over ... and we can not see the end of that,' Zivkovic said.

'An attack on any political figure is an attempt at destabilizing the

country,' Goran Svilanovic of the Civic Alliance said. 'I expect the

authorities in Montenegro and Serbia to provide convincing proofs that they

were not involved,' he added." (Agence France Presse, June 16)

SHOOTING A DESTABILIZATION ATTEMPT?

***"Whoever tried to kill Draskovic in Montenegro took a large risk because

President Milo Djukanovic is certain to make sure that his police spare no

efforts to find the would-be assassin. If the attempted killing was indeed

politically motivated on the part of the Belgrade authorities, it is

possible that the assassin could find shelter among local pro-Milosevic

elements or with the Yugoslav forces. Helicopters as well as cars and trucks

connect Yugoslav military bases in Montenegro with those in

Serbia...Montenegrin Deputy Prime Minister Dragisa [said] Montenegro was

selected as 'the place of the assassination attempt...with the goal of

spreading violence throughout Montenegro. It is an attempt to destabilize

Montenegro, not only an assassination attempt on Mr. Draskovic.' In Budva,

Draskovic's wife, Danica, told reporters that Yugoslav President Slobodan

Milosevic was behind the attempt, Reuters reported. 'Slobodan Milosevic and

[his wife] Mira Markovic, who else?' she said." (RFE/RL Newsline, June 16)

SOLANA: "BRUTE FORCE STANDARD"

***"In Brussels, Javier Solana, the European Union's foreign and security

policy chief, said he was shocked at the attempt against Draskovic. Solana

said the 'escalation in the cycle of violence illustrates the sad state of

political affairs' in a country 'where the use of brute force seems to have

become an increasingly standard method of settling political differences.'

Russia's foreign minister, Igor Ivanov, sent a letter to Draskovic,

expressing 'great concern' and... condemning the 'terrorist attack' which

'threatens the process of democratization in Yugoslavia.' Draskovic's aides

said the attack 'came as a shock,' and grim-faced party officials gathered

Friday at the party's [headquarters]." (Associated Press, June 16)

BILDT: ATTACK LINKED TO SLOBO'S STAY IN POWER

***"Special Envoy of the Secretary General of the United Nations for the

Balkans Carl Bildt stated today that while other murders in this series

could have had a criminal motives, this can only have been political. 'There

can hardly be any doubt that it was linked to the efforts of the Milosevic

regime in Belgrade to retain its power over Serbia. . .Serbia is drawing

closer and closer to the abyss' he said." (Radio B2-92, June 16)

II. REGIME

NEW CONSTITUTION GIVES SLOBO LIFETIME RULE?

***"The Moscow 'Kommersant' daily writes that a new FRY constitution is

being prepared, according to which the federation shall be abolished, the

country divided into 8 cantons, and the Yugoslav president Slobodan

Milosevic shall be able to rule for the next 20 years. [see also June 9

Montenegro Watch #21, Section II]...Kommersant writes that the group met

with Milosevic at the beginning of June and submitted the project of the new

constitution. Kommersant writes that the project prescribes the existence of

one house of parliament (the Assembly of the Republics would be abolished)

and the representatives would be voted in, according to the one person - one

vote system. The paper states, that given that in FRY there are around 7

million Serbs, 2 million Albanians, and around 500,000 Montenegrins, 'the

parliament would exclusively represent the interests of Serbs'. The new

constitution prescribes that the president of FRY is to be elected at a

general election and not through parliament, as it was the case so far, and

this would assume a five year mandate. The same person can cover this

function four times in a row, which allows Milosevic to be in power for

another 20 years, concludes Kommersant. The new constitution extends the

existing authorities of the president - he appoints the government and the

governors of the cantons. The supreme defense council would be abolished and

the president would become the sole supreme commander. Kommersant states

that Milosevic is in a hurry to get the new constitution adopted because his

mandate expires next year, and, according to the present legislation, he

does not have the right to renew his presidency. ..The new constitution

would be rejected by both the West and Russia, who believe Milosevic should

depart from his presidential function in one year at the latest. Kommersant

also stated that the adoption of such a constitution could lead to a new

Balkan war." (Vijesti daily-quoted by MNNews, June 8)

BELGRADE: NO COMMENT ON NEW CONSTITUTION

***"Yugoslav government official, Vladan Kutlesic, today declined to comment

on reports of the secret drafting of a new Yugoslav Constitution, saying

that he had no idea what it was about... Asked by Beta agency to comment on

this report, Kutlesic said that he had seen something about it on the

Internet but believed that the reports emanated from Montenegro. He

dismissed the story as 'just one of a series' of similar claims. In response

to Vice President Kutlesic's denial, the foreign policy commentator of

Russian daily Komersant, Genady Sisojev confirmed the claims of the paper

that the Serbian regime had prepared a new constitution that would allow

Milosevic another 20 years in power. Sisojev reiterated today that the

report was based on true and proven facts: Milosevic decided to form a

commission to design a new constitution on May 8th, in a document marked

CONFID - 221/100. He added that Moscow is backing the current constitution,

and pleading for the reduction of tension between the two Yugoslav

republics." (Radio B2-92, June 10)

REGIME TAKES SPO SEATS IN UPPER HOUSE

***"On June 12, the upper house of Yugoslavia's Parliament verified the

election of new members of the house from the Serbian legislature and

elected MP Gorica Gajevic as speaker of the house. At the emergency

parliament session, members verified the election of 20 Serbian legislature

members, nine each from the Socialist Party of Serbia and Serbian Radical

Party and two from the Yugoslav Left, all elected at a May 3 session of the

Serbian legislature in accordance with a new bill on electing members of the

upper house of parliament. Serbian Renewal Movement members of the Serbian

legislature boycotted the May 3 legislature session and consequently have no

representatives in the upper house of parliament. In accordance with the new

bill, their seats have been allocated to other parties." (BETA independent

news agency-Belgrade, June 13)

SESELJ THREATENS COALITION BREACH

***"Signaling a possible rift in the Belgrade leadership, Serbia's

ultranationalist leader Thursday accused his leftist partners of seeking to

undermine his party in President Slobodan Milosevic's ruling coalition.

Deputy Prime Minister Vojislav Seselj, leader of the Serbian Radical Party,

accused Telecommunications Minister Ivan Markovic of 'harming' the Radicals

by promoting a minor party whose name also carries the Radicals' logo.

Seselj also claimed that government-controlled media were giving a

disproportionate amount of coverage to the 'Radical Party--Nikola Pasic.'

The party was created in 1993 but has no seats in the Serbian parliament. It

is generally considered a rival to Seselj's party. Markovic, who is

responsible for media policy, is a member of the Yugoslav Left...'Various

untruths of this minor party are granted more and more space on Tanjug and

in Politika,' Seselj told reporters...'I warn the coalition partners not to

do so any more because they shall only jeopardize the coalition in Serbia.'

" (Associated Press, June 15)

SRS: CROATIA "MUST BE CONSIDERED ENEMY STATE"

***"The Serbian Radical Party (SRS), one of the three parties in the ruling

coalition, on Tuesday demanded that the federal authorities withdraw their

diplomatic recognition of Croatia in the borders it had in the former

Yugoslavia, state media reported. The SRS presidential board issued a

statement which seemingly had no immediate cause, and which used harsh

wording to state that 'the occupation of the Republic of Serb Krajina (RSK)

was conducted contrary to all international standards and the UN charter'.

The statement called the FRY leadership to 'urgently raise the question of

the liberating of the territory of the RSK and the return of the Serb

population, which was expelled in 1995'...The SRS statement called the

federal authorities to break off all diplomatic relations with 'the new

Ustashi state which still does not allow the return of the expelled Serbs',

the urgent withdrawal of all Yugoslav diplomats and representatives of the

Serbian and Yugoslav state from Croatia...'Although there was a change of

the authorities in Croatia, the attitude towards the Serbs remains unchanged

since the hatred for all things Serbs is deeply rooted in the Croatian

people and there will be no difference regardless of who rules Croatia,' the

statement said. 'Until the end of the occupation of the RSK and the

liberation of all Serb ethnic territories, Croatia must be considered an

enemy state,' the SRS presidential board statement said." (V.I.P. Daily News

Report-Belgrade, June 14)

SAINOVIC: TERRORISM LAW COMING SOON

***"The Law on Terrorism will certainly be passed, but its passage is late

because it is still being refined, Nikola Sainovic, a member of the

leadership of the Socialist Party of Serbia (SPS) and Yugoslav deputy prime

minister, said on Thursday...Sainovic said that the Law on Terrorism might

be submitted to both the federal and Serbian parliaments in the next few

days. He said that 'in a few days' legal experts would complete the bill.

'After that we will decide whether the law will be adopted in the Serbian

Parliament or in the Federal Parliament because there are reasons for both,'

said Sainovic. Asked to comment on the trials of independent media outlets,

Sainovic said that 'these developments are on the descendant' because there

are 'fewer and fewer slanders and insults' in the non-Government media

'thanks to the Law on the Media.' " (V.I.P. Daily News Report, June 9)

MLADIC AT 119 BLAGOJA PAROVICA, BELGRADE

***"Neighbors call him the general, bodyguards patrol his garden and his

name still inspires fear, but Ratko Mladic's dreams of greatness are slowly

suffocating at 119 Blagoja Parovica... But guests are few, for Mr Mladic has

been cast from the golden circle of his former friend and mentor, President

Slobodan Milosevic. After the Dayton peace accord ended the Bosnian war Mr

Mladic moved to Belgrade, but not to a hero's welcome. He was judged to have

gone too far. The president's wife, Mira, is reported to have said the

general was 'not normal'. A deal was struck. Mr Mladic, 57, was given a

villa, not luxurious but comfortable, and a monthly salary in exchange for

staying out of sight. For a narcissistic general who came to believe the

mythology of his military genius, it was a painful fall, but he accepted.

'He still wants to be the center of attention. He can't help it, he thinks

he must always be important,' said one visitor to his home. On the first

night of Nato's bombing last year he hammered on neighbors' doors, ordering

them to evacuate since warplanes would target his house. In fact his home

was untouched. One Yugoslav Army general scoffed: 'No matter what he thinks

he's yesterday's man. He turned up at a medal ceremony in January and

strutted around as if he owned the place. He had no right to be there.

Unbelievable.' Many who served with him loathe him for alleged bullying,

hubris and egomania... neighbors include Vuk Draskovic, head of the

opposition Serbian Renewal Movement, Rade Markovic, head of state security

and Zdravko Colic, a pop star. A conspiracy of silence envelops the

neighborhood, for it is in no one's interests to advertise the presence of a

man whose favorite artillery commands were 'Roast' and 'Pound them

senseless'. When asked about Mr Mladic, several neighbors went white. The

government has withdrawn its bodyguards so Mr Mladic has had to make his own

arrangements. They stand outside green sentry huts at the front and back of

the villa with handguns and walkie-talkies in black leather shoulder bags.

Strangers who approach face arrest. Between shifts the guards sip beer on

the terrace of a nearby bar. Their boss, a heavy drinker, prefers to

socialize once a month at a racecourse less than a mile away... Even with

his address no longer a secret, Mr Mladic is likely to remain safe in his

villa as long as President Milosevic remains in power." (Guardian-London,

June 12)

JUL BRANCH DISSOLVED FOR "INSUBORDINATION"

***"The municipal committee of the Yugoslav United Left (JUL) in Prokuplje

has been dissolved for insubordination to the JUL central office in

Belgrade, BETA has been told today by the former members of this committee.

According to them, the municipal JUL committee in Prokuplje was dissolved

last week on orders from Slobodan Neskovic, the JUL coordinator for the

Toplice region. The same sources say that Slobodan Lukic, hitherto chairman

of the JUL committee in Prokuplje, was at the same time dismissed from that

post and from the post of director of the local school of medicine. A new,

six-member JUL committee has been formed in Prokuplje but most of the party

members in town do not recognize it." (BETA news agency, June 15)

JUL BREAK-IN BLAMED ON "LACKEYS OF THE WEST"

***"Unknown persons extensively vandalized the Belgrade offices of Mira

Markovic's United Yugoslav Left (JUL) for the second time in recent days.

JUL said in a statement that the opposition's 'lackeys of the West' were

responsible." (RFE/RL Newsline, June 12)

EDUCATION MINISTER DIES IN CAR CRASH

***"Milivoje Simonovic, education minister in the Serbian government, has

been killed in a car accident, state-run Tanjug news agency reported

Saturday. The accident happened late Friday near the town of Velika Plana,

some 60 kilometers (35 miles) southeast of Belgrade, at the main highway

linking the Yugoslav capital with the southern town of Nis, the agency said,

quoting local police. Simonovic probably lost control of his car due to

speeding. It turned over, crossed the barrier between the two lanes, and was

hit by a car on the opposite side of the highway, the agency said, giving no

further details." (Agence France Presse, June 10)

III. REPRESSION

POLICE CRACKDOWN ON BELGRADE NGOs

***"The financial police has knocked at the doors of non-governmental

organisations. Escorted by policemen, for a few days they have been checking

the books in Belgrade Helsinki Committee, Centre for Anti-War Action, and

the organization, 'Women in Black'. Premises of the Forum for Ethnic

Relations were immediately shut and sealed. Everything would have been

alright and pursuant the law if this police had checked only the 'flow of

money' which it is charged to do. However, in some NGOs, the activists were

interrogated about all their activities. The diligent control followed

immediately after the announcement that the new law on NGOs was in

preparation, the draft of which has not been made public yet...In the ten

years...this is the first time that the financial police has come to check

their books, practically at the same time to all of them. Yesterday at the

press conference, in his comment on the visits of auditors, Nikola Sainovic,

deputy federal prime minister said that 'there are many NGOs and their

activities differ, ranging from humanitarian ones to direct services of

NATO'. Dusan Janjic, president of the Forum for Ethnic Relations, is not in

Belgrade, so according to unofficial information, on Wednesday financial

police entered the premises of this organisation and sealed them because its

head was not present. Only the books were taken from the book-keeper. The

decision on sealing the office has not been issued, and we were unofficially

informed that they called the director of the Institute of Social Sciences

in whose building the office of the Forum is located and asked him to write

the decision that this office was sealed. According to the words of Vileta

Djikanovic, activist of the 'Women in Black', on Wednesday three inspectors

came to their office, two of them were from the police. She says that that

they introduced themselves as being from the department of economic crime.

President Stasa Zajevic was subjected to classical police interrogation,

claims Djikanovic. She herself was asked who had founded the 'Women in

Black', why she had become an activist, when the organisation had been

founded. They were interested the most in the contacts with Kosovo and even

took contact telephone numbers in Pristina although they are not in use any

more. At the same time they criticised this organisation for not defending

the Serbs in Kosovo equally as it advocated protection of the rights of the

Albanians and similar. 'They called me at home', Vileta Djikanovic explains,

and 'ordered me to come to the office the next day at ten o'clock. They took

all the filing folders in which correspondence, addresses were kept, and

allowed the activists to copy documents. The issued a certificate on

temporary confiscation of documents', says Vileta Djikanovic for AIM. Sonja

Biserko, president of Helsinki Committee, says that financial police is in

their premises for a week already and that their work is within legal

limits - they are controlling books. This is the first auditing since the

opening of the office. According to her opinion, it is obvious that it is a

campaign which cannot be observed outside the context in which we live. In a

few days the true aim of this auditing will be seen: whether it is

intimidation before new laws are passed or the forthcoming elections. In any

case, this is an expression of paranoia of the regime, Sonja Biserko

believes. Vesna Pesic, member of the management board of the Centre for

Anti-War Action...One possibility is, she says, that they wish to intimidate

people by sentencing NGOs to pay fines like in the case of media, and the

other is that they might even shut them down. Vesna Pesic reminds that there

are no legal limits for reception of donations from abroad, which is a ban

referring only to political organisations. Therefore, in this sense no

offence has been committed...[Yugoslav Committee of Lawyers associate

BiljanaKovasevic-Vuco believes that we are dealing with 'sophisticated

repression' and notes that the law on terrorism need not be passed at all,

because it has already psychologically achieved its goal - intimidation of

the citizens." (Alternative Media Network/AIM-Belgrade, June 12)

NGO DIRECTOR: "REGIME TRYING TO DESTROY ALL NGOs"

***"The financial police and Interior Ministry Special Forces have sealed

the premises of the Belgrade-based Forum for Ethnic Relations. Forum

coordinator Dusan Janjic [said:] 'I must say that this has nothing to do

with a normal financial inspection, since the Forum, like other NGOs, has

carried out regular financial checks and issued regular financial reports.

To cut a long story short, this is a political issue. I shall fight this

with political and, of course, legal means - if one can talk about law in

this country of Serbia.' " (Radio B2-92, June 7) "The Forum is a sister

organization of the Project on Ethnic Relations (PERof Princeton, New

Jersey). [It's] president Dr. Allen H. Kassof, has expressed his deep

concern over this event...The attack on Dr. Janjic and his organization is

malicious and short-sighted, said Dr. Kassof, and is yet another blow to

Belgrade's standing in the community of enlightened nations, and retards the

return to Yugoslavia's good tradition of interethnic tolerance." (statement,

Project on Ethnic Relations-Princeton, June 9)

WIB: "INTENSIFYING CAMPAIGN OF REPRESSING NGOs"

***"After the regime's campaign of repressing the media, the financial

police is expanding their campaign. Today, June 7th 2000, the police

accompanied by the financial police entered into the offices of Women in

Black [WIB]...We do not object to the above authorities making a regular

investigation. But the facts in these cases indicate to an intensifying

campaign of repressing NGOs. This was clear with the police interrogating

Stasa Zajovic on all our different contacts both locally and those in

Kosovo, during the `informative talks' that took place for 6 hours today in

the offices of Women in Black. Their agenda was above all political

repression aimed to intimidate and fracture the network of NGOs struggling

for a civil society. The Serbian regime is using the financial police to

obstruct and discredit the activities of WIB and similar organizations."

(statement, Women in Black, June 7)

AUTHORITIES CLOSING NEGOTIN MEDIA, NGO OFFICES

***"The city construction inspection of Negotin has warned that it will

close down and seal the offices in a private building in Negotin which

houses the Human Rights Committee and TV Negotin...The building, which

houses TV Negotin, has never been registered as fit for living, nor have

another 14 buildings in the same row in that neighborhood. TV Negotin's

owner, Dejan Grujic, said he would find a way to continue his work if the

offices are sealed." (V.I.P. Daily News Report, June 12)

NGO LAWS WILL FUEL "PURGE"

***" 'The new laws will be an opportunity to conduct a purge, because they

envisage the re-registration of all the existing political parties,

citizens' associations and workers' unions, at a federal level,' Dr Dragor

Hiber from the Alternative Academic Education Network and the Centre for

Promoting Law Study, said to 'Blic' in connection with the two draft federal

government laws controlling the work of political parties, civic

associations and workers' unions, as well as the work of foreign NGOs. The

regime will take advantage of this opportunity to conduct purges principally

as a form of threat... Financing, according to the bill, would be extremely

restrictive, in other words, foreign financing would be completely banned

and even Yugoslav emigrants would not be able to donate a single dinar. The

new law bans political activity of NGOs, which gives the regime a free hand

for all sorts of interpretations, so if some human rights organization says

that human rights are being violated in this country, that could be

interpreted as political activity and a reason for shutting down such an

organization,' Hiber pointed out. Zarko Paunovic from the Centre for

Development of the Non-profit Sector said that the new bill restricted the

freedom of association centralized the work of NGOs which, numbers about

25,000 in the country. 'The main problem is that you need 100 founders in

order to form an NGO. Everywhere in the world that number has been decreased

and now only two or three are enough, but in this country that number is

being increased... Paunovic said this law, once enacted, would overwrite the

Law on NGOs of Montenegro, which was passed last year and which is very

liberal one. Natasa Kandic from the Humanitarian Law Center also believes

that this bill is an attempt to directly block the work of NGOs. 'By

re-registering NGOs the regime will allow only those NGOs whose work it does

not find objectionable to pass through their filter, banning any independent

NGOs by not allowing them to register. I believe that this law will be

passed very quickly, perhaps even before the summer months, because NGOs are

increasingly frequently becoming a target of the regime'... According to

Dragor Hiber, the bill on foreign NGOS shows just how claustrophobic the

regime is. 'The law allows very restrictive conditions for registering

foreign organizations. Such organizations cannot be lead by Yugoslav

citizens and it is unclear whether our citizens can even be employed in such

a foreign NGOs. In order to be allowed to work, foreign nationals have to

have residence permits, and in order to get a residence permit they have to

be employed. This is a catch-22 situation and it is clear that the aim of

this bill is to drive out all existing foreign NGOs,' Dr Hiber said." (Blic

daily-Belgrade, June 1)

HUMANITARIAN GROUPS' EQUIPMENT STOLEN

***"The premises of three humanitarian organizations were broken into in the

central Serbian City of Kragujevac. The City Assembly's Bureau for

Humanitarian Affairs, the Swiss organization SDR and a private company,

Miami, lost equipment worth a total of 12,000 deutschemarks." (Radio B2-92,

June 11)

JOURNALIST CHARGED WITH SPYING

***"A Yugoslav military court in the southern city of Nis on Wednesday

charged [AFP correspondent Miroslav Filipovic] with spying. Goran Draganic,

lawyer for reporter Miroslav Filipovic, said he had not seen the charge

sheet, but expected to get it soon. 'I only know Filipovic was charged, but

I cannot go into details before I see it,' Draganic said by telephone. The

independent news agency Beta quoted court president Colonel Vukadin

Milojevic as saying Filipovic was charged with espionage and with 'spreading

false information,' a crime carrying a lesser penalty. Draganic said he

would go to Nis on Thursday when the court would rule whether to suspend or

extend detention for Filipovic, who has been held for just under a month.

'The defense filed a motion for Filipovic to be released pending trial,

while the prosecutor demanded an extension of the detention,' Draganic said.

If found guilty, Filipovic faces up to 15 years in jail. 'The charges will

not come into effect before the court rules on the previously filed

objections. Only after that will the court be able to set the date for the

trial,' Beta quoted Milojevic as saying." (Reuters, June 14)

MEDIA REPRESSION UPDATE

See attachment for grid

[Format]

Date

Publication/Organization

Location

Action

6/8

Danas

Belgrade

Trial postponed of Danas suit against Tanjug state news agency because of

absence of judge Vera Petrovic.

6/9

Tanjug

Belgrade

The Economic Court started an investigation in the case of Zoran Jevdjevic

and Slobodan Jovanovic, Tanjug's former directors, and Jadranka Jokovic,

Tanjug's former financial manager, to find out how local correspondents of

foreign media are paid. Danas not allowed to cover investigation.

6/9

Danas

Krusevac

Correspondent prevented from entering and reporting on municipal assembly

session.

6/9

Matroz

Belgrade

Dragan Lazic, Matroz state printing house director, denied the supply of

newsprint had been reduced to certain independent newspapers.

6/9

Author of "Cry, Mother Serbia"

Zajecar

Satirist Boban 'Bapsi' Miletic sentenced to five months in jail by the

Zajecar District Court for defamation of President Slobodan Milosevic.

6/12

Blic, Danas, Glas Javnosti

Belgrade

Reporters denied entry to FRY Parliament session because their credentials

had not been applied for on time, according to the official explanation.

6/13

Radio Free Europe

Majdanpek

Trial of RFE reporter Dejan Radulovic began; charged under the Serbian

Public Gatherings Act with organizing June 1 protest rally.

6/14

Danas, AFP

Nis

Danas, AFP Kraljevo correspondent Miroslav Filipovic indicted by Nis

Military Court for espionage and dissemination of false news.

Sources: BETA news agency, Media Center-Belgrade, V.I.P. Daily News Report,

ANEM Weekly Media Report, wire services

OTPOR REGISTRATION REFUSED

***"A spokesman for the Otpor (Resistance) student movement said in Belgrade

on 13 June that the Yugoslav Justice Ministry has refused to register Otpor

on the grounds that it has conducted 'illegal activities.' These allegedly

include calling on 'people to rebel and violently overthrow the

constitutional order,' Reuters reported. The spokesman added that the

decision shows that the regime is afraid of Otpor, which will begin to

pursue its campaign for registration in the courts." (RFE/RL Newsline, June

14)

LUKOVIC DENIED PRESCRIBED MEDICAL ATTENTION

***"Otpor activist Radojko Lukovic, who had suffered severe body injuries

after a fight with the guards of the Madona discoteque on May 2 in

Pozarevac, was examined in the Pozarevac hospital today, after his lawyers

yesterday appealed for medical treatment to the President of the Pozarevac

District Court Slobodan Coguric. The Otpor activist was examined by a

neurologist and a neuropsychiatrist, who diagnosed depression caused by his

serious physical condition and sent him to see an ophthalmologist. At that

point however, the deputy commander of the pre-trial confinement Velja

Zivkovic terminated the examinations and returned Lukovic to confinement,

explaining that the examinations had to be organised, Lekic said. The family

of Momcilo Veljkovic, the other activist beaten and imprisoned in the fight

today sent a letter to President of the Pozarevac District Court Slobodan

Coguric, demanding 'normal medical protection' for Veljkovic. Since his

regular physicial therapy had been terminated on Thursday by decision of

Zivkovic." (Radio B2-92, June 17)

JUDGE SACKED FOR OTPOR MEMBERSHIP

***"Serbia's Supreme Court on Wednesday sacked a judge for being a member of

the student-based protest movement OTPOR...news agency said Belgrade

District Court judge Miroslav Todorovic was dismissed for 'publicly

displaying himself as a member of presidency of the Otpor movement.' "

(Reuters, June 14)

POLICE: OTPOR "USING DRUG ADICTS FOR GROUP VIOLENCE"

***"The Serbian police on Friday accused the Otpor Popular Movement of

'using drug addicts for group violence', Saturday's Danas carried. A police

statement says that 'the perpetrators of crimes of vehicle theft, breaking

and entering flats and violence against citizens came from the ranks of drug

addicts', adding that drug addicts 'were used by violent and mafia groups as

well as members of the illegal so-called Otpor organization to carry out

group violence. In order to prevent the spreading of this security-wise

hazardous and detrimental occurrence', members of the Serbian police have

cut off several drug smuggling channels in the past five months and seized

12,717 kilos of marijuana, 5,238 kilos of heroine, 2,131 kilos of cocaine

and 51 ecstasy pills, says the statement." (V.I.P. Daily News Report, June

12)

OTPOR MUST REGISTER WITH POLICE TO JOIN QUEUES?

***"Otpor activists today joined citizens of Cacak in the long queues to buy

sugar and oil which can be seen these days throughout Serbia. They are

carrying banners, which read 'Nothing Out of Line in Serbia'. Otpor

representative Djordje Talovic told media that police had visited the

organization's local office to investigate whether an unregistered protest

was being planned and were told that members had no time to speak to police

because they had to queue for staple food products along with other

residents of the town. 'We told them that, as far as we knew, we were not

required to register with police to wait in queues,' said Talovic." (Radio

B2-92, June 12)

OTPOR ACTIVISTS ILLEGALLY DETAINED

***"Three activists of the Resistance (Otpor) movement who were arrested in

Pozarevac were held in police detention for five days before being taken

before the investigating judge, in contravention of the Yugoslav Criminal

Procedure Code which stipulates that suspects may be held for 72 hours at

the most, after which they must either be released or brought before the

competent investigating judge." (statement, Humanitarian Law

Center-Belgrade, May 30)

CHURCH PATRIARCH SUPPORTS OTPOR

***"Head of the Serbian Orthodox Church Patriarch Pavle today gave his

support to the efforts of the people's movement Otpor in its non-violent

struggle for democratic elections. Representatives of Otpor acquainted the

Patriarch with their views of the current situation in Serbia and the

Patriarch reminded them to refrain from unbecoming acts and words, because

those who endured until the end would be saved." (Radio B2-92, June 17)

POLICE DEMOLISH ROMA SETTLEMENT, BEAT WOMEN, CHILDREN

***"The International Secretariat of OMCT [World Organization Against

Torture] has been informed by the Greek

Helsinki Monitor that on 7th June, 77 children, along with 32 adults (See

Case YUG 160600), half of whom are displaced persons from Kosovo, were

ill-treated and insulted by police as bulldozers demolished their homes, the

Roma 'Antena' settlement in Surcin just outside of Belgrade. The police, in

uniform and plain clothes, arrived in the settlement in two groups. They

hurled racial insults at the Roma and slapped, punched and kicked a number

of them, including women and children. Prior to this, on 6th June, the

authorities of the Novi Beograd municipality ordered the demolition o the

'Antena' settlement, which was built in defiance of zoning laws, and the

eviction of the Roma inhabitants was ordered. According to the information

received, an appeal for more time to find other accommodation was turned

down." (statement, International Secretariat, World Organization Against

Torture/OMCT, June 17)

IV. OPPOSITION & RESISTENCE

SPO, DSS SPURN CACAK PROTECTION PLAN

***"Opposition parties and coalitions in Cacak, representatives of the town

Lawyers' Bar Association, non-governmental organizations, the Popular Otpor

Movement, the local trade union, independent media and the local authorities

in Cacak, on Friday adopted a plan for protection against the regime's

violence, writes Sunday's Blic. The meeting was organized on the initiative

of the local G 17 Plus office, and it was not attended only by

representatives of the Serbian Renewal Movement (SPO) and the Democratic

Party of Serbia (DSS). The plan envisages the preparation of leaflets and

instructions as to how to act in cases when citizens are arrested. Citizens

should report all such cases to TV Cacak or to the municipal authorities

which will further inform the public about this. Concrete assistance to the

arrested and harassed will be organized by the G 17 Plus office and teams of

lawyers ready to offer assistance free of charge." (V.I.P. Daily News

Report, June 12) "The Cacak Bar Association has offered legal assistance

free of charge to citizens detained by police and has pledged to intervene

rapidly as soon as being notified of arrests. The pledge came after

representatives of opposition parties, Otpor and a number of Serbian

municipalities met in Cacak to discuss the protection of media and the

public from government repression." (Radio B2-92, June 11)

OPPOSITION FORMS "SOLIDARITY NETWORK"

***"On June 12, representatives of major Serbian opposition parties and

coalitions, with only the Serbian Renewal Movement absent, formed 'a team

for the media promotion of the opposition and joint solidarity network.' At

a meeting of opposition officials held at the Alliance for Change offices in

Belgrade, the participants agreed to form an expert group that will be

tasked with drawing up the principles for the opposition's joint

participation in local elections. An announcement released after the meeting

said that the newly formed joint Solidarity Network will 'in the shortest

time possible' link all the democratic forces in Yugoslavia and secure

protection to everyone 'endangered by the regime's repression.' Democratic

Christian Party of Serbia leader Vladan Batic told the press that the

meeting's participants agreed to form an expert group to discuss criteria

for the joint election ticket, adding that the group will meet on June 14."

(BETA news agency, June 13)

PHYSICAL, LEGAL AID FOR JOURNALISTS

***"Vojvodina's Independent Journalists Association coordinating body held

their first meeting in Novi Sad last night. Nineteen media editors and

correspondents from Novi Sad agreed to provide physical protection and legal

assistance for all journalists placed in jeopardy as a result of their

professional activities. The body is to prepare an online catalogue of

incidents of repression of journalists." (Radio B2-92, June 17)

ALL BUT SPO AGREE TO PREPARE ELECTION SLATE

***"Representatives of all major opposition parties and coalitions, with the

exception of the SPO, agreed in Belgrade on 12 June to set up a joint public

relations committee. They also decided to establish a body of experts to

draft the principles for a joint opposition slate in the local elections

expected in the fall or winter, RFE/RL's South Slavic Service reported. In

addition, opposition leaders called on the West to back up its offers of

moral support for the opposition with concrete help. The G-17 group of

economists especially wants to be able to show the electorate that it has

firm plans and pledges from the EU's Stability Pact to carry out

reconstruction. G-17 leaders called on the EU to organize a donors'

conference for a post-Milosevic Serbia, 'Danas' reported." (RFE/RL Newsline,

June 14)

SPO: YES, WE WILL NOT BOYCOTT THE ELECTIONS, MAYBE

***"Ognjen Pribicevic, adviser to the chairman [opposition leader Vuk

Draskovic] of the Serbian Renewal Movement (SPO), has stated in Nis tonight

that the SPO 'most definitely will not boycott the coming election', adding

at the same time that the party would decide whether or not to take part in

the election on the day that it is called. In the Nis-based private

Television 5's Debate program, Pribicevic said that earlier elections had

shown that a boycott was the wrong strategy. Asked by a journalist whether,

if the SPO did not boycott the election, it meant that the party would take

part in it, as there was no third option, Pribicevic replied: 'There is a

third option, but some things just should not be brought out into the open.'

He said that it would be better to wait and fight for fair election

conditions, 'because by making a decision about participation in any sort of

election we are plainly jumping the gun'. Pribicevic said that 'there is too

much talk about the election in the media', particularly the independent

media." (BETA news agency, June 15)

***"Ivan Kovacevic, spokesman of the Serbian Renewal Movement (SPO), stated

today that for this party 'there are no elections in Serbia under the

current election conditions and in the circumstances of the regime's

continuing repression'. At a news conference he said that 'all parties

should declare a moratorium on their political work to expose the system of

violence and repression. Our attitude is that under the current conditions

one should not contest elections, but we are not going to organize any

anti-election campaign,' Kovacevic said, and declared himself in favour of

the election conditions that were enforced in the early elections in the

Montenegrin cities of Podgorica and Herceg Novi, or during the 1997

elections in Serbia. The SPO spokesman accused the remaining opposition

parties of violating the 10th January agreement and 'thereby enabling the

regime to step up repression against political opponents'." (BETA news

agency, June 13)

BELGRADE ANALYSTS: SPO REFUSAL "TEMPORARY"

***"Political analyst Vladimir Goati believes that 'it's good that the

opposition decided to start drawing up joint election lists' and that the

SPO's refusal to take part in that is just 'temporary'. Srbobran Brankovic

[director of Medium Index polling agency]...said that even with the current

balance of forces, the opposition stands a good chance primarily in federal

but also in elections in cities, but added that the problem is that the

opposition will probably lose in popularity up to the elections thanks to

the steps it takes. Brankovic said he does not believe the SPO will stand

firm on its boycott decision. " (V.I.P. Daily News Report, June 14)

SPO DELEGATION IN CHINA FOR TALKS

***"A delegation from Vuk Draskovic's Serbian Renewal Movement (SPO) led by

Belgrade Mayor Vojislav Mihajlovic returned from China on 12 June. SPO

spokesman Predrag Simic noted that delegates held talks with government and

business leaders in Beijing and Shanghai, 'Danas' reported." (RFE/RL

Newsline, June 13)

STUDIO B TO BROADCAST FROM REPUBLIKA SRPSKA

***"The director of Belgrade City broadcaster Studio B who was replaced in

May by the Serbian government when it seized control of the station has said

that sacked staff will resume producing and broadcasting the station's

programs. Dragan Kojadinovic told yesterday's meeting of the Pact for

Stability in South-east Europe that former Studio B staff would soon begin

broadcasting two hours a day from the Bosnian Serb republic by satellite and

the Internet. Kojadinovic said that he believed that attacks on the

independent media in Serbia would continue, adding that the seizure of

Studio B was the best indication of how drastic and dramatic these would

be." (Radio B2-92, June 10)

DS FILES SUIT AGAINST POLICE, POLITIKA

***"Criminal charges have been laid against the deputy police commander in

Zajecar, Zoran Djuric, the local branch of the Democratic Party announced

today. The charges allege that Djuric beat members of the party who were

arrested in the town on Friday evening while putting up posters. The party

announced that the distribution of party promotional material will continue

at noon next Wednesday in the presence of party officials from Belgrade and

other prominent personalities." (Radio B2-92, June 12) "Two opposition

leaders, Zoran Djindjic and Vladan Batic have charged the pro-regime daily

Politika under the infamous Information Act, following today's article

'Batic and Djindjic ready for a new Markale' The plaintiffs allege that the

article contains statements that violate both the constitution, and their

dignity." (Radio B2-92, June 10)

WOMEN'S POLITICAL ORGANIZATION PROTESTS "ARRESTS, BEATINGS"

*** "The Womens' Political Network sent a letter to ministries of the

Serbian government in which they sternly protested against 'arrests,

harassment and beatings', and urgently demanded a reception by Monday June

19, the organisation stated. 'If we don't receive an adequate response, our

representatives will on Tuesday June 20 personally hand over the letter to

the authorised ministers,' the statement said." (Radio B2-92, June 17)

VI. INTERNATIONAL

MILOSEVIC EMBRACED BY, DECORATES LI PENG

***"Li Peng, head of the Chinese parliament, yesterday started a three-day

visit to Yugoslavia by addressing the federal parliament, underlining the

closeness of the ties between the two countries. Mr Li, the second most

important politician in China's communist hierarchy, is the most senior

foreign official to visit Belgrade since NATO's bombing campaign. Isolated

by the west both politically and economically, his visit is seen as a

propaganda boost for Slobodan Milosevic, Yugoslav president, who has been

facing growing opposition at home. During his address to an extraordinary

joint session of the two houses of the Yugoslav federal parliament, Mr Li

attacked NATO's bombing of Yugoslavia and said one political bloc could not

impose its values on the rest of the world. 'This constitutes a violation of

the purposes of the UN Charter and the universally recognized norms

governing international relations, and poses a serious threat to stability

in Europe and peace in the world,' he said.... Chinese banks have provided

Serbia's regime with a refuge for hard currency, undermining western

attempts to freeze Yugoslavia's foreign assets. Mr Li's visit, which lasts

until tomorrow, comes after numerous high-ranking Yugoslav officials visited

China. It is seen as a courtesy visit after Mr Milosevic and Jiang Zemin,

his Chinese counterpart, signed an agreement on friendship and co-operation

in 1997. Observers say both China and Russia use Yugoslavia whenever they

want to score a point against the west. But...'They often use so-called

rogue states as a kind of tool against the US, but I don't think China will

push this visit too far,' said Dragoslav Rancic, a newspaper columnist, who

spent 10 years in China. He said China was keen to establish good relations

with the Balkan states and noted that Mr Li's visit coincided with a trip to

Croatia and Slovenia. Though China is reported to have extended a $300

million credit to Serbia last winter, further economic links have not

materialized." (Financial Times-London, June 13) "Milosevic presented the

Order of the Great Star of Yugoslavia to visiting Chinese parliamentary

speaker Li Peng in Belgrade on 12 June." (RFE/RL Newsline, June 13)

TIANANMEN SQUARE ARCHITECT SHARING EXPERTISE?

***"The Christian Democratic Party of Serbia believes that Chinese

Parliament President Li Peng visit to Belgrade and 'the current ruling

family was most probably used to exchange views on how to suppress

democratic processes.' The DHSS says in a statement that 'both the Yugoslav

and world public still remember events on Tiananmen Square which unfolded on

Li Peng's orders. The only mistake the Chinese students made was to ask for

more liberty for their compatriots. This was the reason enough for Li Peng

to suppress the people will with guns and tanks,' the DHSS says. The party

concludes 'in decorating Li Peng, the Serbian State leadership wanted to

secure support for its future moves aimed at suppressing democratic

processes in Serbia.' " (SRNA news agency-Bijeljina, June 14)

RUSSIA: MILD CRITICISM OF BELGRADE

***"Russia, in rare if restrained criticism of its ally Yugoslavia, said on

Friday that President Slobodan Milosevic was helping to deepen his country's

international isolation through his undemocratic actions. Addressing the

State Duma Lower House of parliament, Foreign Minister Igor Ivanov urged

Milosevic to adopt a more cooperative approach towards the outside world and

to begin a dialogue with his political opponents inside Yugoslavia. 'The

present position of Belgrade, following a 'besieged fortress' policy, does

not help (the cause of normalizing Yugoslavia's situation),' Interfax news

agency quoted Ivanov as telling deputies. He noted that Milosevic had

cracked down on independent Yugoslav media and was waging an economic

blockade against Montenegro, Serbia's tiny partner in the Yugoslav

Federation, while his political foes were calling for his overthrow. 'At

this time, Yugoslavia least of all needs domestic confrontation. A dialogue

inside the country is essential,' Ivanov was quoted as saying. He said

Moscow was doing its best to help Belgrade, but expected the authorities to

show reciprocal flexibility. 'Russia is effectively the only force in the

world which consistently defends Yugoslavia as the victim of aggression and

is striving to help this country to come out of international isolation,'

RIA news agency quoted him as saying... Ivanov repeated Moscow's call for a

lifting of international sanctions against Yugoslavia." (Reuters, June 10)

IVANOV: "OUR PARTNER" EVEN IF REGIME CHANGES

***"In a surprising statement after he avoided seeing Serbian opposition

leaders recently visiting Moscow, Russian Foreign Minister Igor Ivanov said

Friday his country sought partnership with whomever is in power in

Yugoslavia and criticized President Slobodan Milosevic's policies as not

always being helpful to Russia. Ivanov told the Duma, Russia's lower house

of parliament, that 'Yugoslavia should remain Russia's partner even if

authority there is changed and this is why Moscow is maintaining contacts

with the Serbian opposition,' according to the independent Belgrade news

agency Beta. This is the first time any Russian diplomat is known to have

said publicly that official Moscow does not mind who is in control in

Belgrade. The agency quoted Ivanov as saying 'It is important that

Yugoslavia remains our partner regardless of who is in power.' The minister

was answering criticism from the communists, the largest parliamentary

group, and their allies in the Duma who had expressed displeasure with the

recent visit to Russia of three Serbian opposition leaders... Ivanov was

also reported by Beta to have told the critics in the Duma that 'Belgrade's

attitude does not always contribute to the efforts Russia is making to help

solve the situation in Yugoslavia.' ...on Friday that Ivanov had expressed

skepticism about the Yugoslav government's demand to the UN Security Council

that the international peace-keeping force (KFOR) and the UN mission (UNMIK)

be withdrawn from Kosovo and replaced with Yugoslav army and security forces

after failing to carry out resolution 1244. Speaking at a press conference

after meeting his Albanian counterpart Pascal Milo, Ivanov said UN

withdrawal would not contribute to solving the Kosovo problem, adding it

must be resolved by strict respect for the Security Council resolution."

(United Press International, June 9)

AMB. MILOSEVIC UNSURE ON RUSSIA RELATIONS

*** "CNN: 'In light of a recent visit to Moscow by a member of the

opposition, don't you think that relations between Moscow and the Belgrade

government are cooling or that Russia is distancing itself from the Belgrade

government?' [Brother of Slobodan Milosevic and FRY Ambassador to Russia

Borislav] Milosevic: 'Sometimes I do. Russia has a right to maintain its

relations with all political forces in Yugoslavia. The Russians are having

contacts with the legal opposition and not with some kind of illegal bands.

These are political parties in Yugoslavia. On the other hand, I believe that

political dialogue of cooperation between Yugoslavia and Russia is growing

stronger and more intensive. Last month the Yugoslav Defense Minister and

Foreign Minister visited Moscow and only recently a high-level delegation of

the Yugoslav parliament was here...The legal framework of our relations is

growing stronger. So, I don't see what you are talking about.' " (Press

Conference, Yugoslav Ambassador Borislav Milosevic, Moscow, June 9)

VI. ECONOMY

KRALJEVO VETERANS PROTEST POVERTY

***"Kraljevo war invalids protest continues Members of the Association of

War Army Invalids from Kraljevo staged their third day of protest in front

of the building of Kraljevo Municipal Assembly. War invalids today put

benches in front of the municipal building and sat on them, preventing the

employees from entering or exiting. Invalids demanded from the Head of the

Raska District Milenko Stefanovic that their rightful salaries be paid and

that 20 apartments being built be given to members of the Association and

families of fallen fighters. They have vowed to protest until their demands

are met." (Radio B2-92, June 17) "Some 30 members of an independent veterans

group barricaded themselves inside the town hall in Kraljevo for two hours

on 15 June. A spokesman for the veterans told AP that they intend to stage

further protests until the authorities take steps to improve veterans'

living conditions. The men, who fought in Milosevic's wars in the 1990s,

charged the government with totally ignoring their situation." (RFE/RL

Newsline, June 16)

EDUCATION UNION DEMANDS PAY INCREASE

***"The Serbian Educational Union today demanded that the Government begin

urgent negotiations regarding new pay scales due to the 15% increase in the

cost of living. According to the agreement reached between the unions and

government which ended the strike at the beginning of the year, new pay

scales should be introduced in the case where the cost of living rises by

more than 10%." (Radio B2-92, June 13)

MILOSEVIC EXPLOITS GRAIN SALES TO FUEL REGIME

***"Yugoslav President Slobodan Milosevic is using a bumper crop of grain

sales abroad to suppress dissent and maintain his isolated government's grip

on power, a new study suggests...'Milosevic has succeeded in exploiting the

grain trade to fuel the state's repressive mechanisms,' according to a new

report issued this week by the International Crisis Group, a think tank with

offices in Brussels and Washington. The report said that Serbia's 1.7

million farmers have little choice but to sell to the country's state-owned

mills, which then market the processed grain for hard currency and for

much-needed gas and energy stocks. 'If members of the international

community... wish to limit the resources available to Milosevic, they need

to pay more attention to this little-noticed commodity and its crucial role

in the Serbian economy,' the report said. The resources available to the

Belgrade regime remain a source of concern to Western governments."

(Washington Times, June 11)

25-30% DROP IN WHEAT CROP PREDICTED

***"The wheat crop is in a disastrous state, assessed representatives of the

Vojvodina Association of Farming Cooperatives (ZSV) and warned of a harvest

poorer than anticipated, Belgrade media carry. ZSV advisor Igor Stuparski

said that this year's harvest would begin some 15 days earlier because of

the drought. The harvest is to begin in mid-June. 'The wheat is in a

disastrous situation throughout Vojvodina, it will be impossible to achieve

a yield of 3.5 tons per hectare', says Stuparski, assessing that an average

yield of 2.5 tons per hectare is the best that can be counted on. Daily

highs of below 30 degrees Celsius would be favorable for the wheat crop,

says Stuparski, but the temperature has been exceeding this level for some

ten days already. Wheat was sown on 650,500 hectares in Serbia, excluding

Kosovo, rye on 4,242 hectares, and barely on 68,374 hectares. The expected

wheat yield before the drought was between 2.3-2.5 million tons. Last year

the yield was 2.1 million tons. The still undetermined purchasing price of

wheat is troubling farmers, and the harvest is drawing close. 'If the state

sets the wheat price at under 4 dinars, that will be a preposterous and

unacceptable offer. Producers will not sell their wheat in that case, nor

will they be encouraged to sow wheat. In this situation full of

uncertainties, the price should correspond to the costs of production but

should not be lower than the price of maize, which is 4 dinars per

kilogram', assessed Miroslav Malesevic of the Novi Sad-based Institute of

Agriculture and Truck Farming. Malesevic assessed that the overall wheat

crop will be less than planned by 25% to 30%. The average yield, according

to recent assessments, will be around 3 tons per hectare, and a total crop

of around 2 million tons may be expected. 'This is just about enough to

cover domestic needs, with a small quantity left over', believes Malesevic.

Former chairman of the Serbian parliament's Agricultural Board, Zaharije

Trnavcevic, believes that the price of wheat must not be below 4.5 dinars

per kilogram. He believes that even this price would be sufficient to cover

only the costs of fuel and fertilizer." (V.I.P. Weekly Economic Bulletin,

June 15)

DROUGHT BRINGING "HUMANITARIAN DISASTER"?

***"The Democratic Party's agriculture expert, Radomir Popovic, judged today

that the agricultural situation in Serbia is approaching a humanitarian

disaster. If the heat continues, he warned at a press conference, this

country will have to import food for next year'. According to Popovic,

flour, sugar, oil and other food articles would be needed from international

humanitarian organizations. The Vojvodina NGO, Banatski forum, has warned

the Federal Minister for Agriculture Nedeljko Sipovic that they will call on

farmers to boycott the harvest if the Ministry does not correct the price of

grain. They warned Sipovic that next year the only well fed people would be

those on the state TV stations. Head of the Serbian Orthodox Church

Patriarch Pavle called on all believers and priests to pray for rain this

week." (Radio B2-92, June 13)

$51 MILLION OIL IMPORTS IN MAY

***"The FRY imported $51.7 million worth of oil and oil derivatives in May.

According to the latest data released by the Federal Statistics Institute,

the FRY imported $19.6 million worth of crude oil and $32 million worth of

oil derivatives. Montenegro alone imported crude oil, while both republics

imported oil derivatives. Serbia's share of the imported oil derivatives

amounted to $31,564,000, while Montenegro's share was $474,000. According to

the data, there were no imports of natural gas in May." (BETA news agency,

June 15)

BELGRADE 4000DM FEE TO PASS NOVI SAD BRIDGE

***"Seven Bulgarian ships have passed downstream and upstream along the

Danube in the area of Novi Sad, BTA was told by Capt Ivan Yordanov, head of

ships' directorate with SOMAT-Willy Betz Company. The pontoon bridge over

Danube was opened by the Serbian authorities at about 6.45 a.m. on 5th June

and Bulgarian ships which passed downstream were SOMAT's Khan Asparukh,

Olympi Panov, convoyed by two barges, of the national river shipping

company, and two private vessels, Donau Star and Loyzah, sailing under

foreign flags...Each ship pays DM4,000 to be let pass across the pontoon

bridge at Novi Sad. The bridge was last opened and vessels let pass on 9th

April, Yordanov said. The river area around Novi Sad has been cleared of the

debris of demolished bridges and navigation is significantly easier, Capt

Yordanov said. In addition to the charge, a special permission by the

Serbian authorities is required for a passage through the pontoon bridge."

(BETA news agency, June 15)

CURRENCY RESERVES FUNDING POWER INDUSTRY

***"The Yugoslav government decided on Thursday to sell $5 million from its

foreign currency reserves to the Serbian Power Industry, the daily Glas

Javnosti reported on Friday. The government said the money would be used to

import equipment and spare parts needed for the power supply system's

overhaul." (V.I.P. Daily News Report, June 12)

CHINESE BIKES IN LIEU OF VACATION PAY

***"Employees of some health care institutions in Belgrade will receive

payments of their vacation supplements in the form of mobile phones or

Chinese bicycles instead of cash, Danas says on Wednesday quoting

information received from its readers. 'I couldn't believe my ears. I asked

my co-worker if she was joking and she was deadly serious,' a reader, who

insisted on anonymity, told the daily. Danas contacted some of Belgrade's

health care institutions but failed to get more detailed information on the

form the vacation supplements will take." (V.I.P. Daily News Report, June

14)

UN: OVER 200,000 REFUGEES, DISPLACED IN SERBIA

***"Out of the 1,420,000 citizens of the most endangered municipalities of

Serbia, in which the teams of the UNICEF children's fund conducted research

of the conditions in the health and departments of education, communal and

social services, the number of refugees and displaced persons comes out to

203,000...The most endangered are the municipalities of Kraljevo,

Kragujevac, Jagodina, Barajevo, Grocka, Kursumlija and Blace, followed by

Loznica, Stara Pazova, Sremska Mitrovica, Backa Palanka, Prokuplje, Nis,

Babusnica, Bojnik and Leskovac." (V.I.P. Daily News Report, June 14)

NORWAY AIDS 12 OPPOSITION-LED CITIES

***"The mayors of 12 Serbian cities will visit Norway on June 12 to reach an

aid delivery agreement with the Norwegian government. In a statement, the

Norwegian embassy in Belgrade said that the mayors of Novi Sad, Nis,

Kragujevac, Pancevo, Subotica, Sombor, Uzice, Pirot, Kikinda, Trstenik,

Bajina Basta, and Arilje would visit Norway at the invitation of Foreign

Minister Turbjern Jaglan. The Norwegian aid package will amount to 700,000

German marks and its delivery will soon be initiated in cooperation with the

Norwegian embassy in Belgrade." (BETA news agency, June 13)

E.U. PARTIAL SANCTIONS LIFT MAY PRESSURE NON-REGIME BUSINESS

***"The European Union will lift its total blockade on Serbian companies in

the next few weeks by publishing a list of those permitted to do business

with Europe. The EU is concerned that economic sanctions are hurting

ordinary citizens. The list is an attempt to draw a distinction between

those companies earning hard currency for President Slobodan Milosevic's

regime in Yugoslavia and those that are not. The EU hopes that companies

with trade arrangements or those wishing to trade with companies in EU

member states will come forward and present proof that they are not owned by

members of the regime. Serbian companies, however, fear that the new

measures will mean that they need to get on to the list to do business with

the EU but, by doing so, they will risk being penalised by the Serb

authorities. Furthermore, even if companies do make it on to the list, the

authorities may prevent them from obtaining raw materials or withdraw their

import and export license. 'This is not an appropriate way to support the

democratic process and its effect will be counterproductive,' said

Aleksandar Vlahovic, a partner at Deloitte and Touche for the region. 'If

anyone wants to speed up the democratic process they should support a market

economy. These measures are so obviously political.' In April the EU decided

to tighten economic sanctions and banned all financial transfers into

Serbia. Though a ban on investments already existed, the EU noted that money

was still flowing into the hands of the regime and issued a blacklist of

companies earning hard currency for the authorities. But Serbian businesses

say that the regime controls every aspect of economic life and can overnight

stop a business from trading. Once on the EU's approved list, companies may

also come under pressure to work for the regime and become a conduit for the

authorities' transactions. 'They have developed fantastic methods to avoid

sanctions,' said Goran Pitic, the head of economic research at Belgrade's

Economic Institute. 'Keeping track of each company will be an impossible

task [for the EU].' Most deals are closed before they can be traced. One

businessman said money could change hands more than a dozen times in a day,

shifting from Ukraine to Uzbekistan to Cyprus. He noted that both legitimate

and blacklisted companies used offshore bank accounts in Cyprus and other

tax havens, where they are unaffected by EU legislation and where companies

may be unwilling to open their books to EU regulators. Once they are

blacklisted, the authorities can quickly shift their business transactions

to another company. Monitoring the transactions of import and export

companies will be particularly problematic. A trading company may export

strawberries one day, hand grenades another. At the same time the EU is

relying on member states to help monitor the sanctions, but not all

countries agree on what policy to pursue towards Serbia. The UK and Germany

may co-operate but Greece and Italy, which have greater business interests

in the region, are not as convinced of the merits of sanctions. Italy until

recently favoured lifting the oil embargo against Serbia. Even if the new

sanctions were effective, businesses say the paperwork will increase

transaction costs." (Financial Times, June 15)