"As of today, officially, Montenegro will not be taking part in the federal
elections set for the 24th of September...The question of taking part in
such elections is, for Montenegro, a national issue and not an issue of any
one party because elections have been set on the basis of illegal
constitutional changes by which the foundations of a legal and
constitutional Yugoslav federation have been, for practical purposes,
destroyed and the equality of Montenegro has been abruptly suspended. Taking
part in such elections would mean that Montenegro would remain without
statehood identity and subjectivity, and at the same time, it would give
legitimacy to the efforts of the Belgrade dictatorship towards continuing
its political rule. Also, for Montenegro it would mean stopping short in the
direction of its political strategy which it has been successfully carrying
out over the last years."
statement, Milo Djukanovic, President of Montenegro, August 14 -- Podgorica
"Running away from elections is certainly not a characteristic of a
democratic society."
Vojislav Kostunica, Democratic Opposition of Serbia presidential candidate
Quoted by Associated Press, August 15 -- Belgrade
"We will call on everyone supporting DPS and [a] democratic program...to
boycott the illegal federal elections."
Miodrag Vukovic, chairman, Executive Committee, Democratic Party of
Socialists
Quoted by Reuters, August 16 -- Podgorica
"For such a decision they will be punished by their own supporters many of
whom I believe will turn their back to it at the elections...These elections
are a battle to preserve Yugoslavia. We will have to address and animate the
citizens of Montenegro to vote for the right candidate and for [the] united
and democratic state of Serbia and Montenegro." Vojislav
Kostunica, Democratic Opposition of Serbia presidential candidate
Quoted by Reuters, August 16 -- Belgrade
"To someone uninformed Kostunica's statement may mean that he doesn't
understand the essence of the position of Montenegro's democratic majority
of not wanting to participate in the so-called federal elections. But as
we're talking about a presidential candidate of the Serbian opposition and a
professor of constitutional law, this has to do not with ignorance but with
something completely different."
Miodrag Vukovic, chairman, Executive Committee, Democratic Party of
Socialists
Quoted by V.I.P. Daily News Report, August 16 -- Podgorica
"The [boycott[ announcement by Miodrag Vukovic, advisor to the Montenegrin
president is somewhat a knife in the back of the Serbian opposition."
Vladan Batic, president, Christian Democratic Party of Serbia
Quoted by V.I.P. Daily News Report, August 16 -- Belgrade
"The elections will be a confirmation of the unity of the people around
freedom and independence. These are not ordinary elections at which
politicians are to take posts. This is a referendum for the preservation and
progress of the country in peace and freedom or for its turning into a
colony. History shows that our people never hesitated when given those
choices. That is why they will elect Slobodan Milosevic, the symbol and
guarantee of the preservation and development of the state at the end of
September."
Mirko Marjanovic, Serbia's Prime Minister
Quoted by V.I.P. Daily News Report, August 16 -- Belgrade
"It is certain that the citizens of Montenegro will opt for an independent
Montenegro if Slobodan Milosevic wins the September elections."
Filip Vujanovic, Montenegro's Prime Minister
Danas, August 12 -- Belgrade
"So what will happen to Yugoslavia?...Yugoslavia will be a democracy or it
will not exist at all. In other words, the future of present-day Yugoslavia
is under a question mark as well. As for Montenegro, its future is certain.
Montenegro will be a democratic, economically prosperous state, a reliable
neighbor and a partner of the international community in southeastern
Europe, whether as a state joined to Serbia or as an independent state. The
only question is at what price. We hope the international community will not
allow itself to be late in the former Yugoslavia for a fifth time. The
international community's entire policy and long-term strategy for the
region of southeastern Europe is being tested in Montenegro."
Milo Djukanovic, President of Montenegro
article published by SENSE news agency (Brussels), translated by V.I.P.
Daily News Report, August 15
IN THIS MONTENEGRO WATCH:
-- Podgorica boycotts federal elections
-- Serbia's opposition condemns election boycott
-- Kostunica: Montenegro afraid to lose
-- Kilibarda: Opposition has same view as Milosevic
-- Belgrade demands mayors cooperate on elections
-- Djukanovic: FRY "exists on paper only"
-- Niksic SNP leader resigns over constitution changes
-- Milosevic approves new military doctrine
-- VJ closes Republika Srpska border crossings
-- Maras-VJ meeting to "lower tensions"
-- Navy: MUP cooperation "unsatisfactory"
-- Clinton Administration "worried"
-- U.S., U.K. planning "no fly zone"?
-- Kucan: "Act before midnight" this time
-- Lukovac: "Good prospects" for UN special status
-- Montenegro wages 120% higher than Serbia
-- Retail salaries, industrial production up; imports down
-- 2001 currency: the Euro
POLITICAL PARTIES & LEADERS:
Montenegro's Ruling Coalition
DPS- Democratic Party of Socialists (Milo Djukanovic, Montenegro's
President)
NS -People's Party (Dragan Soc, president)
SDP - Social Democratic Party of Montenegro (Zarko Rakcevic, president)
Other Political Parties
DUA -Democratic Union of Albanians (Fuad Nimani, president)
DSS -Democratic Alliance of Albanians (Mehmet Bardhi, president)
LSCG -Liberal Alliance of Montenegro (Miodrag Zivkovic, president)
Montenegro's Opposition
SNP-Socialist People's Party of Montenegro (Momir Bulatovic, FRY PM)
SNS-Serb People's Party (Zelidrag Nikcevic, president)
NKPJ-New Communist Party of Yugoslavia (Branko Kitanovic, president)
Serbia's Ruling Coalition
JUL - Yugoslav United Left (Mira Markovic, president)
SPS -Serbian Socialist Party (Slobodan Milosevic, FRY President)
SRS - Serbian Radical Party (Vojislav Seselj, Serbia's Deputy PM)
FRY - Federal Republic of Yugoslavia
MUP - Montenegro's Ministry of Interior (Vukasin Maras, Minister)
VJ - Yugoslav National Army (Gen. Nebojsa Pavkovic, Chief of Staff)
I. ELECTIONS
PODGORICA BOYCOTTS FEDERAL ELECTIONS
*** "As of today, officially, Montenegro will not be taking part in the
federal elections set for the 24th September...It would be logical to ask
the question, why did we do all that we have done in Montenegro? Why are we
going through all of these pressures and carrying the cross that is a burden
from that very regime whose rules of conduct we would be accepting by taking
part in these elections? By this we would be denouncing the platform that
our Government proposed a year ago to Serbia regarding the regulation of
mutual relations on a new basis, suspending the Resolution which, based on
constitutional changes, was accepted by the Montenegrin Parliament and
brought the survival of the governing democratic coalition of Montenegro
into question. I think that the reasons for such a decision to not take part
in the elections are more than convincing. As far as the consequences are
concerned, I think that such a decision on our part will be pivotal for
Belgrade, regardless of the outcome of the September elections, to accept
the political reality...If no change takes place, than that is the political
reality, on the basis of which we in Montenegro will define the political
strategy of further conduct, taking into absolute account the vital national
and state-related interests of Montenegro...The political scene in
Montenegro is not monolithic. To the contrary, there are sharp political
differences and the percentage of those who support the political regime in
Belgrade, for whatever reason, is not negligible. The political leadership
of Pro-Serb parties has its own self-interest at stake while a great deal of
its members have been manipulated by the well-told story about preserving
Yugoslavia, thus they have been led astray. I hope that the very manner of
constitutional change and that act of disrespect towards Montenegro have
opened many of their eyes. The Montenegro democracy project has survived all
pressure and temptations and has reinforced its vitality and that is why we
have no intentions of being drawn into measures of repression of any kind.
Thus, we will not prohibit those who wish to do so from voting. Montenegro
has a strongly-developed capacity for democracy and to endure such an
attempt at destabilization, but also it has the democratic and state
mechanisms to control the election process to the end and to prevent the
manipulation of the same." (statement, President Milo Djukanovic, Aug. 14)
SERBIA'S OPPOSITION CONDEMNS ELECTION BOYCOTT
*** "The leaders of the Democratic Opposition of Serbia (DOS) on Tuesday
condemned the decision by Montenegro's ruling Democratic Party of Socialists
(DPS) to boycott the federal elections...Serbian Democratic Party (DSS)
leader and DOS presidential candidate Vojislav Kostunica said the DPS
decision does not contribute to peace and stability in the joint state. In a
written statement, Kostunica expressed disappointment with the DPS decision
and said that 'running from the elections is certainly not a trait of
democratic systems'. He said the elections were called on the basis of
legally disputed constitutional changes 'but that very constitution was
adopted as a legally dubious deal between the Belgrade and Podgorica
socialists'. Kostunica said that 'the DPS remains consistent in one thing.
All the MPs from that party once voted for Milosevic as president of the
federal state and the decision for the DPS not to turn out for the elections
is once again a vote for him,' he said. Serbian Christian Democrat Party
(DHSS) leader Vladan Batic said that it is 'bad' that the Montenegrin
authorities decided not to turn out for the elections but their decision to
call people to boycott the elections is even worse. He said Montenegro want
FRY president Slobodan Milosevic to remain in power with that gesture while
on the other hand it has an alibi to leave the FRY...Democratic Alternative
(DA) leader Nebojsa Covic voiced regret over the DPS decision. He said the
Montenegrin leadership will have a problem if over 51% of the electorate in
that republic turn out and added that 'Milosevic won't leave Montenegro
alone that easily'. Serbian Renewal Movement (SPO) spokesman Ivan Kovacevic
said the DPS decision was expected 'and from their point of view is fully
justified. We can't criticize them, we can only conclude that their decision
is politically consistent and clear but that certainly can inflict damage on
the opposition in Serbia,' he said." (V.I.P. Daily News Report-Belgrade,
Aug. 16)
KOSTUNICA: MONTENEGRO AFRAID TO LOSE
*** "If they boycott the elections I will not be able to accept any kind of
support from them, said Kostunica. That would be hypocrisy. By boycotting
the ballot these parties help Milosevic, out of fear that they might lose.
They say they are democratic authorities. But a democratic leadership allows
itself to be tested in the polls. If it were strong it would win. If
Montenegro changed its mind and decided not to boycott the election,
Kostunica said Serbian opposition parties might be prepared to offer
candidacy to someone from Montenegro. That must be a person who can
reconcile divided factions in Montenegro and thus become attractive to
voters in Serbia, he said." (Reuters, Aug. 14)
*** "'Whoever wishes well to Montenegro and wants to have some democratic
hope for Serbia and the whole region cannot expect Montenegro to take part
in that farce, which only gives legitimacy to the Belgrade dictatorship,'
[President Milo] Djukanovic told a gathering of Montenegrin Diaspora on
Saturday." (Associated Press, Aug. 13)
KILIBARDA: OPPOSITION HAS SAME VIEW AS MILOSEVIC
*** "Chief of the Montenegrin mission in Sarajevo and the former president
of the People's Party Dr. Novak Kilibarda, said that the Serbian opposition
'through its decision to participate in the elections, has shown that it has
the same view of Montenegro as Slobodan Milosevic'. In response to the
question of whether it is better for Montenegro that Milosevic wins or the
Serbian opposition wins, Kilibarda said that the real question is what is
worse for Montenegro. 'In any case there is nothing worse than Milosevic.
Any solution is better than Milosevic, but the current opposition is not
good... Vojislav Kostunica has unitary views with respect to Montenegro,
just like Slobodan Milosevic, but Kostunica would no doubt be better', said
Kilibarda." (Vijesti daily-quoted by MNNews-Podgorica, Aug. 10)
DOS: WON'T HAVE ELECTION LISTS IN MONTENEGRO
*** "Social Democrat Union (SDU) leader and coordinator of the Alliance of
Democratic Parties (SDP) Zarko Korac said on Tuesday that the Democratic
Opposition of Serbia (DOS) won't have an election list in Montenegro, Glas
Javnosti says on Wednesday. He said the DOS will help the campaign 'of a
number of Montenegrins who want to appear at the election and who won't be
hostages of Slobodan Milosevic and [FRY Prime Minister Momir] Bulatovic.' "
(V.I.P. Daily News Report, Aug. 16) "DOS...will support candidates who are
not members of Slobodan Milosevic's Red-Black coalition, the opposition's
campaign manager...Zoran Djindjic, said today. 'We want a community which
consists of Serbia and Montenegro, but we don't want to call on Montenegrins
to vote for Serb candidates,' Djindjic told SRNA agency, adding that the
Serbian opposition wanted Montenegrins to vote in the elections for the
democratic commonwealth of Serbia and Montenegro. 'Public figures in
Montenegro should give the republic's citizens a chance to do that and give
them the opportunity to have candidates to vote for,' said Djindjic."
Independent Radio B2-92-Belgrade, Aug. 16)
BELGRADE DEMANDS MAYORS COOPERATE ON ELECTIONS
*** "Borivoje Vukicevic, chairman of the Federal Election Commission, has
sent a letter to the mayors in Montenegro demanding that they create
conditions for voting in the upcoming federal parliamentary and presidential
elections on September 24. The letter says that under the federal election
laws and the laws of the two constituent republics, the municipal
authorities have obligations in holding elections, keeping records of voters
in the form of voter rolls and informing the citizens that they can check
the voter rolls and ask that any mistakes in them be corrected...The Federal
Election Commission has also pointed out that the Montenegrin authorities
must ensure special offices for the work of the election commission, rooms
for every polling station as well as technical and personnel conditions for
holding elections. The letter says that the local authorities in Montenegro
ought to inform the Federal Election Commission by August 15 of their
activity so far in preparing the elections...Podgorica mayor Miomir Mugosa
said he has not yet received any letter from the Federal Election
Commission...Commenting on the claim that there are people in Montenegro who
would want to vote in the September 24 elections, Mugosa said that 'anyone
can vote...As for the state bodies of Montenegro, we have many more
important things to do than to engage in farcical goings-on such as these
so-called federal elections,' said Mugosa." (V.I.P. Daily News Report, Aug.
11)
DJUKANOVIC: FRY "EXISTS ON PAPER ONLY"
*** "A lot has changed, even the constitutional and legal foundations on
which the FRY was created in 1992, so that this Yugoslavia exists on paper
only. Based on the almost illegally adopted constitutional changes in the
illegitimate Federal Parliament, Milosevic called federal presidential and
parliamentary elections for September. He is in a hurry to be elected in a
popular vote, thus hoping to avoid going to The Hague...In a referendum in
the 1990s the citizens of Montenegro did not vote for this kind of state
community with Serbia...It would be illogical for the majority of
Montenegrin citizens to take part in that farce and vote against their state
and national interests. This will certainly be accompanied by a new wave of
pressure from the Milosevic regime against Montenegro, on which he has now
focused all his destructive energy...All these years, since the democratic
turnaround in Montenegro, and especially in recent days, he has continuously
been preparing the infrastructural logistics for a conflict. That is why the
Yugoslav Army is increasingly being used against Montenegro's legal
institutions. Despite the pressure and its numerous economic and social
problems, Montenegro is safely on a democratic path. In accordance with our
potential, we in Montenegro are trying to help Serbia take that path too.
The Montenegrin Government is helping and encouraging the democratic forces
in Serbia in all kinds of ways because it sees democracy, reforms and
opening up to the world as the only way of preserving its joint state with
Serbia. This is how it will be in this election campaign. It is not up to
Montenegro whether Serbia will take that path as soon as possible. A
democratization of Serbia is possible only within Serbia, with the help of
the democratic international community. The more uncertain the beginning of
democratic change in Serbia, the more the people of Montenegro will favor
independence. All the more so because as a result of its current legal
status as a state Montenegro is not getting effective economic and financial
support from the international community which it deserves today as a factor
of peace and stability in the Balkans. That is why we should not rule out
the constitutional possibility of calling a referendum because the citizens
of Montenegro, as all other citizens, have the right to decide on their
legal-state status." (Milo Djukanovic article published by SENSE news
agency-Brussels, Aug. 15)
ELECTIONS NOT DEMOCRATIC WITHOUT OSCE MONITORS
*** "Predrag Drecun, chairman of the Executive Board of the [People's] Party
(NS), said that the upcoming federal elections, in which the OSCE would not
control the vote counting, 'cannot be democratic...'It is unbelievable that
the elections in Montenegro were held according to the highest standards,
with all the control mechanisms, while at the federal level we must turn to
federal bodies as if the federal administration is headed by the president
of the Labor Party of Mozambique and not the president of the Socialist
People's Party (SNP),' said Drecun commenting on a statement by a SNP leader
that he would allow OSCE presence if the federal bodies agreed to that.
According to him, the NS hopes that the citizens 'will not buy the so-called
patriotic word games from Belgrade and Belgrade's henchman in Montenegro and
that they will realize that the only way to preserve the Yugoslav state is
its integration into the E.U. We hope that the citizens of Montenegro, in
light of their previous experiences, will say no this time and preserve
peace in Montenegro on September 24. The most recent polls show convincingly
that fewer that 20 percent of the citizens want to vote in the so-called
federal elections,' said Drecun. 'Only when the Socialist People's Party
(SNP) turns away from FRY president Slobodan Milosevic and realizes that our
future is primarily linked to us who live in Montenegro, will we be able to
engage in dialogue with them and perhaps start some sort of cooperation that
would mainly be in the interests of Montenegro,' said Drecun." (V.I.P. Daily
News Report, Aug. 16)
SNP SUPPORTS MILOSEVIC TICKET, WILL GET PM SPOT
*** "Vice-president of the Socialist People's Party (SNP) Predrag Bulatovic
said in an interview to Monday's Blic that the SNP would run in the federal
election in coalition with the Socialist Party of Serbia (SPS). Asked why
the SNP did not have its own presidential candidate, Bulatovic said the SNP
would support the SPS candidate, Slobodan Milosevic, and that after the
elections the federal Prime Minister should be from the SNP." (V.I.P. Daily
News Report, Aug. 14)
*** "The government in the Herceg Novi municipality [pro-Milosevic, SNP-led]
is working on bringing the election lists up to date, and citizens are being
urged via local radio to check the election lists in good time and to
prepare to participate in the federal elections scheduled for 24th
September." (independent Montena-fax news agency-Podgorica, Aug. 10)
NIKSIC SNP LEADER RESIGNS OVER CONSTITUTION CHANGES
*** "The President of the municipal board of the Socialist People's party in
Niksic, Dragoslav Jaukovic resigned last night and returned his party
membership, because he no longer agrees with the moves the party has made,
especially in relation to the recent constitutional changes. At the SNP
meeting held to discuss the activities around the upcoming federal
elections, Jaukovic said that he believes that the constitutional changes
conducted in Belgrade with the participation of the SNP have revoked
Montenegro's equal status in the Yugoslav federation, and this is a retreat
from one of the basic program principles of the SNP which is supporting
Yugoslavia in which Montenegro and Serbia have equal status. Jaukovic said
that he does not wish to participate in policies, which are objectively
leading to the centralization of FRY. A significant number of members of
this body, some of which are councilors in the municipal assembly, agreed
with Jaukovic and left the session. Late last night, Jaukovic confirmed to
Vijesti that he has resigned and that he shall distance himself from
politics, but refused to give any further statements, noting that he shall
do so today. Veselin Zizic, one of the most prominent local members of the
SNP, is amongst those who supported Jaukovic and left the meeting." (Vijesti
daily-quoted by MNNews, Aug. 16)
SNP OFFERS TO BE DPS COALITION PARTNER
*** "The vice president of the Montenegrin Socialist People's Party, Zoran
Zizic, offered the Democratic Party of Socialists on Aug. 15, to form a
coalition in case the Social Democratic Party leaves the existing ruling
coalition in Montenegro. In an interview for Elmag TV, he pointed out that
there is a possibility that the Socialist People's Party could offers
support to the Democratic Party of Socialist in the legislature in order to
form a minority government, in case the Social Democratic Party leaves the
government...The chairman of the steering committee of the Democratic Party
of Socialists, Miodrag Vukovic, told BETA that such an alliance is not
possible because the two parties are very different and have conflicting
party programs. He also said that he doubts the sincerity of Zizic's offer."
(independent BETA news agency-Belgrade, Aug. 16)
SNP-DPS MEETING THURSDAY
*** "Leaders of the Montenegro's pro-Milosevic Socialist People's Party
(SNP) and Djukanovic's DPS are set to meet Thursday in the Montenegrin
capital Podgorica. The idea is for the two forces to keep the political
temperature down by peacefully settling any unresolved issues between the
two sides, said Miodrag Vukovic, an advisor to Djukanovic." (Agence France
Presse, Aug. 13) "Montenegrin President Milo Djukanovic's advisor Miodrag
Vukovic stated that the Presidency of the Democratic Party of Socialists
(DPS) was in session some ten days ago, at which time it was agreed on this
party's representatives in talks with the delegation of the Socialist
People's Party (SNP) on August 17'...In talks with SNP, the party deputies
Filip Vujanovic and Svetozar Marovic, Miodrag Vukovic and head of the DPS
MPs club with the Montenegrin Parliament Dragan Djurovic will represent DPS.
Podgorica daily Dan carries Saturday that the SNP delegation will consist of
party deputies' Predrag Bulatovic, Zoran Zizic and Srdja Bozovic." (V.I.P.
Daily News Report, Aug. 14)
II. SECURITY
MILOSEVIC APPROVES NEW MILITARY DOCTRINE
*** "President of FR of Yugoslavia Slobodan Milosevic adopted Military
doctrine of FR of Yugoslavia, on the suggestion of Yugoslav Army Chief of
General Staff General-Colonel Nebojsa Pavkovic." (FRY Ministry of
Information website, Aug. 14) "The doctrine draws its legal base from the
Yugoslav constitution, Yugoslav laws and international treaties and
conventions." (Agence France Presse, Aug. 12) "[In a statement for the army
General Nebojsa Pavkovic, Yugoslav army chief of staff said:] 'Yugoslavia's
military doctrine is based upon defending the sovereignty of the Serb and
Montenegrin people... [Our goal is to maintain] territorial integrity and
constitutional order of Yugoslavia and guard against all types of military
threats...[Main goals of the doctrine are to] dissuade the enemy from any
armed aggression, to successfully execute an armed struggle, and to organise
other ways in which to beat back an attack...[Yugoslavia is] determined to
protect its national interests, while taking into account the experiences
Serb and Montenegrin armies had in the past when they cooperated with other
friendly countries." (Agence France Presse, Aug. 12)
*** "Yugoslav Army Chief of Staff General Nebojsa Pavkovic said on Aug. 10
that the army would not attempt a coup in Montenegro, calling speculation on
a possibly armed conflict between the two Yugoslav republics at the end of
September this year 'supremely stupid.' In an interview to the Niksic radio
station Montena, Pavkovic also dismissed claims made in Montenegro that the
army had stepped up combat readiness in Montenegro, adding that it was only
'performing its usual daily tasks.' Pavkovic, however, said that the army
'will not allow terrorists and foreign mercenaries onto Yugoslav soil, who
have orders to provoke a conflict between the army and police in Yugoslavia,
causing chaos and ruining the country.' " (BETA news agency, Aug. 11)
VJ CLOSES REPUBLIKA SRPSKA BORDER CROSSINGS
*** "'In these regions all the border crossings with Republika Srpska have
been closed down. We request that you carry out all measures necessary to
ensure the barricades are removed, to enable normal life', it was stated in
the request sent by the residents of Crkvica to the Commandment of the VJ's
Second Division with the aim of trying to get them to lift the blockade of
local roads which lead to Republika Srpska. The request signed by 341
people from this municipality shall also be sent to the president of
Montenegro, the Prime Minister and the mayor of Niksic. The residents of the
Crkvica village and the surrounding villages made sharp criticisms directed
at the Yugoslav Army. The president of the municipality Radivoje Djedovic
said that this protest is not political, but is rather a move intended to
resolve the existential problems of this area 'Everyone else is erasing
borders, yet we are putting them up. This blockade has brought us many
problems. We have close family living in Republika Srpska. Our land is
there, we went there for medical treatment and we buried our dead there, and
now we cannot even go to visit the graveyard. This is intolerable. We have
had other occupations here before, but no one has done something like this,
like the army has done. If there were a Nobel prize for oppressing one's
own people, it would be awarded to the Yugoslav Army for this behavior',
said Bjeletic from the Kovaci village. He said that the residents of these
villages are requesting that the civilian authorities get in touch with the
VJ and influence them for the problem to be resolved and stated that he is
offended with the information stated in some media that the residents
allegedly support the blockade." (Vijesti daily-quoted by MNNews, Aug. 14)
*** "The Sula border crossing, between the Bosnian Serb Republic and
Montenegro, has stopped operating because federal Yugoslav bodies have
stopped traffic heading towards Bosnia-Hercegovina, SRNA has been told by
the customs office in Srbinje Foca . 'The Sula border crossing is officially
in the Serb Republic. However, there is no flow of goods for a simple
reason - because on the Yugoslav side there is no longer a border crossing
and because the road has practically been blocked off,' Slobodan Zelovic,
head of the customs office in Srbinje said and explained that smuggling
checks were carried out in this region. He said that surveillance of dirt
tracks used for smuggling people and goods was good. According to him,
traffic at the other two border crossings under this customs office, at Hum
and Metaljka, was flowing as normal." (SRNA news agency-Bijeljina, Aug. 15)
MARAS-VJ MEETING TO "LOWER TENSIONS"
*** "The Minister of Internal Affairs of Montenegro, Vukasin Maras together
with his assistants for public and state security Vuk Boskovic and Dusko
Markovic, met with a twelve member delegation of the VJ headquarters in
Budva last night, to discuss the lowering of tensions in Montenegro. The
military delegation was comprised of ten generals and two colonels and was
headed by assistant to the army chief, general-colonel Simic. The meeting
was organized after a range of heavy incidents, which took place across
Montenegro and were incited by members of the VJ...according to Vijesti
sources it was being held in the 'spirit of cooperation'." (Vijesti
daily-quoted by MNNews, Aug. 11) "In the course of open and constructive
dialogue they discussed...protecting the state border at sea and on land and
the adequate informing the public. The special attention was paid on
intensifying the cooperation between the Ministry of interiors and the FRY
army (VJ) with the aim of surpassing the accumulated problems and decreasing
the tensions. It was concluded that this meeting was especially significant
from the aspect of calming down the increased tensions and eliminating the
fear regarding the new confrontations, which would unavoidably result in
unforeseeable consequences concerning the personal and property safety of
the citizens and in worsening the total safety situation in the republic."
(Pobjeda daily-quoted by MNNews, Aug. 12)
NAVY COMMANDER: MUP COOPERATION "UNSATISFACTORY"
*** "The commander of the Yugoslav Army (VJ) Navy, Admiral Milan Zec has
denied all the criticisms directed at the Navy and the VJ articulated by
'individuals from the Montenegrin government' and compared them to the
situation in Croatia where, as he put it 'a false picture of the army which
is threatening the republican leadership is made, in order to impact on
international public opinion and obtain assistance'. In an interview with
the Borba daily, Admiral Zec said that the army shall not be swayed, and
that the people of Montenegro shall soon express their views at the
elections, emphasizing that 'the will of the people shall be respected by
all'. The interview was made only three days after a meeting held between
the MUP leadership and the VJ... Zec stated that 'the cooperation with MUP
is unsatisfactory, because MUP is allegedly not willing to cooperate, Zec
said that the Debeli Brijeg border crossing is illegal, because the federal
authorities have not given their agreement for opening this border. He
also asked the question of 'what is MUP looking for when following 'trading'
boats with their own speedboats and by doing so threatening to incite a
heavy incident. 'When the MUP is following such boats, every border guard
knows that there is some smuggling going on', said Zec, adding that the
Montenegrin MUP has a special police unit located in the Njivice hotel at
the Prevlaka 'yellow zone', for which Zec has determined that it is an
allegedly 'paramilitary formation', which is heavily armed." (Vijesti
daily-quoted by MNNews, Aug. 16)
NS: "WE ONLY INSIST UPON DE-POLITICIZED VJ"
*** "Predrag Popovic, the vice president of the People's party: 'We only
insist upon the de-politicized FRY army. I hope that the VJ will finally
understand that the FRY should be destroyed because of no one, not even
because of Milosevic and that we shall return to the previous state, I hope
without Milosevic, and that we shall establish the democratic country of
Serbia and Montenegro on new constitutional base that would enable good for
all the people in this country. I expect the VJ to act more constructively.
We are only asking the VJ to be de-politicized and to act in line with its
constitutional regulations and not to be the instrument in someone's hands
regardless to whether that someone is coming from Serbia or Montenegro. We
expect the VJ to respect the decisions of the legitimate organs of the
Supreme Council first of all and it also includes the Montenegrin president
and we do not want VJ to think that we are interceding in favor of taking
the 'command stick' from the hand of Slobodan Milosevic to the hand of the
Montenegrin president Milo Djukanovic." (Pobjeda daily-quoted by MNNews,
Aug. 12)
MONTENEGRINS ASK U.N. FOR OBSERVERS
*** "A group of 55 prominent Montenegrin intellectuals have called on the
United Nations to send observers to monitor what they claim are the
'destructive' activities of Yugoslav President Slobodan Milosevic in the
republic, reports said Saturday. 'We appeal to the Security Council to
urgently send UN observers with a mandate to monitor and speak up about
destructive activities of Milosevic's army and paramilitary troops,' the
group said in a letter, published in the dailies Vijesti and Pobjeda. The
letter was addressed to Malaysia's ambassador to the United Nations, Agam
Hasmy, who holds the rotating presidency of the council this month, the
reports said. '(Milosevic) has been preparing to repeat the gallows of
Srebrenica, Vukovar and Mostar,' the group said, referring to the brutal
ethnic cleansing in Croatia and Bosnia that erupted after the break-up of
the former Yugoslavia. The group includes some of Montenegro's most
prominent intellectual figures, from Podgorica University and the
Montenegrin Academy as well as several well-known writers and artists."
(Agence France Presse, Aug. 12)
VJ SENTENCES SLOVENE TOURIST, RELEASES WIFE
*** "On Aug. 16, the Podgorica Military Court sentenced Slovenian citizen
Milos Glisovic to three months in prison, one year suspended, with an
explanation that he had entered military facilities without authorization
and had taken photographs. The prosecution dropped charges against his wife
Natasa Zorz, who was accused of the same crime." (BETA news agency, Aug.
17)"The two tourists, a 36-year-old man and his girlfriend, were arrested a
week ago near Lake Skadar close to the Albanian border, STA reported, citing
foreign ministry sources. The woman was freed shortly afterwards but the man
remains in detention, the foreign ministry source said, adding that the
couple's identity had not been released at the request of their families.
The government is lobbying for the man's release but the country does not
have diplomatic relations with Belgrade. On Monday, Slovenia issued a
warning to its nationals holidaying in Montenegro to stay away from any
military bases and border areas, STA said." (Agence France Presse, Aug. 12)
CZECH TOURISTS ARRESTED IN TRANSIT
*** "Czech Consul in Belgrade Petr Smeijal said that scores of Czech
tourists were arrested in the FRY for not having valid Yugoslav visas, Danas
says on Wednesday. The daily says they were mainly tourists who want to take
a short cut through Serbia on their way home from Montenegro. He added that
the punishment for being in the FRY without a visa ranges from 100
deutschemarks to seven days in jail. Danas says that Czech travel agencies
are taking tourists to the Montenegrin coast without FRY visas across a
border crossing with Croatia because they have guarantees from the
Montenegrin authorities." (V.I.P. Daily News Report, Aug. 16)
MOSCOW ASKS BELGRADE TO "RECONSIDER" ARRESTS
*** "Russia has intervened to put pressure on its traditional ally
Yugoslavia to free two British police officers and two Canadians facing
possible terrorism and espionage charges in Belgrade. In a breakthrough in
the battle to avoid a show trial for the four men, Igor Ivanov, Russia's
foreign minister has written to the Yugoslav government of President
Slobodan Milosevic urging them to 'reconsider' the cases. Britain and Canada
yesterday welcomed the letter which has provided a second hopeful
development in two days for the two Britons, Adrian Prangnell and John Yore,
as they sit in solitary confinement in their sweltering prison cells. On
Friday, three of the Yugoslav army border guards who detained them 12 days
ago told a court that, contrary to earlier reports, the four Westerners had
not resisted arrest. Prospects of an early release for the Britons and the
Canadians - a businessman Shaun Going, 45, and his nephew Liam Hall, 19 -
remain bleak as Mr Milosevic will use the case as a propaganda tool to whip
up anti-Western fervor before next month's elections." (Interfax news
agency-Moscow, Aug. 13)
TRIAL DECISION ON ARRESTEES BY MONTH-END
*** "Belgrade's military court ended its investigation into four Canadian
and British detainees Monday and a defense lawyer said the prosecutor should
decide by the end of the month whether to put them on trial. 'Based on the
testimony heard so far I think there is really no case,' Djordje Djurisic,
the defense attorney for the two Britons, told reporters at the end of three
days of hearings... Ivan Jankovic, the lawyer for the two Canadians, agreed
that based on the evidence the prosecutor should drop the case but said this
may not necessarily happen. 'With all due respect to the prosecutor himself,
I do not believe it will be his autonomous decision, I believe that politics
will influence this decision,' Jankovic said... Jankovic said the four men
could be charged for not holding Yugoslav visas but that that was an issue
for police, not a military court, to decide." (Reuters, Aug. 16)
VJ SOLDIERS' TESTIMONY SUPPORTS ARRESTEES
*** "Soldiers who arrested two British policemen and two Canadian aid
workers on suspicion of terrorism in Yugoslavia admitted to a court
yesterday that the four behaved as normal tourists when they were stopped.
The soldiers' version of events surrounding the arrests in Montenegro 12
days ago supported the accounts already given to the military court by the
four, according to the men's defense lawyers... 'The soldiers agreed there
had not been any resistance to the arrests and the men had behaved very
normally. 'In my view the three soldiers were perfect defense witnesses
because they have corroborated everything said by the defendants. 'The men
were again visited yesterday by British and Canadian diplomats. Robert
Gordon, the British Foreign Office representative in Belgrade, said: 'the
men are in much better spirits today. They have been able to contact
relatives back home and to reassure them everything is ok.' Mr Gordon took
fresh clothes, fruit, chocolate and books to the officers. He added: 'They
are being kept in separate cells but appear to be in good health and are
being well cared for.' " (Daily Mail-London, Aug. 12) "Their testimony is
important because it counters earlier Yugoslav army claims the suspects had
resisted arrest and backs up Going and Hall's statements." (Edmonton Sun,
Aug. 12)
ALBANIA'S ARMY PREPARING FOR CONFLICT IN FRY
*** "The Albanian army has begun to reinforce its troops at the northern
border with Montenegro, 'Albanian Daily News' reported on 8 August. The move
is designed to prepare for possible emergencies in the case of tensions or
conflicts between forces loyal to Milosevic and those backing Montenegrin
President Milo Djukanovic. Albanian President Rexhep Meidani urged Defense
Minister Ilir Gjoni recently to prepare the army for such scenarios.
Chief-of-Staff General Aleks Andoni pledged to send more recruits to the
Shkodra garrison. Andoni stressed that there is no increased level of alert,
however." (RFE/RL Newsline, Aug. 12)
"CULTURAL SCHIZOPHRENIA"
*** "At the heart of the conundrum of Montenegro lies what Professor Milan
Popovic of Podgorica University calls a 'cultural schizophrenia'. Many
Montenegrins, despite regarding Montenegro as home, owe their loyalty to
Serbia. Montenegro is for them, in effect, no more than a postal address.
Many of the most vocal and violent champions of Serb nationalism during the
past decade were Montenegrin - men such as Radovan Karadzic, the former
Bosnian Serb leader, and Arkan, the paramilitary gangster who was gunned
down in Belgrade. Despite this, a powerful belief in a separate national
identity has existed for centuries in parts of Montenegro. The country was
recognized by the world as an independent state for 40 years, until the end
of the First World War. Then Montenegro was blotted off the map and the
division based on national identity triggered a decade-long civil war.
Montenegrin nationalists fought fellow Montenegrins who wanted union with
Serbia. It lacerated this society, and its scars remain. The two sides
resurfaced after the 1997 elections that brought Djukanovic to power,
rekindling the division that had lain dormant since the Second World War.
Bobo Bogdanovic is regularly seen in the street-side cafes of Cetinje, the
former capital. He is known as the 'general' because of his involvement in a
local militia committed to fight for Montenegrin independence. 'Montenegrins
have clean blood, they are genetically clean,' he claims, 'especially
compared to Serbia.' The Serbian side has its men of committed belief and
matching bravado, now organized by Milosevic in the traditional clans that
knitted Montenegro together." (The Independent-London, Aug. 13)
III. INTERNATIONAL
CLINTON ADMINISTRATION "WORRIED"
*** "The Clinton administration is worried that Yugoslav President Slobodan
Milosevic may be preparing to move against Montenegro. The concerns were
being raised as UN officials on Saturday set Oct. 28 as the date for
Kosovo's first-ever internationally supervised elections, an event promoted
as a step toward a democratic society... U.S. officials say the Yugoslav
military is being put on higher states of alert more frequently, and the
United States has seen increased activity in Montenegrin communities
considered loyal to Yugoslavia. Also, the Yugoslav army is starting to
monitor the flow of traffic in and out of Montenegro, the officials say. For
the first time, the Yugoslav military is searching ships arriving in
Montenegro. Army troops in Montenegro, which are controlled by Milosevic's
government, have established checkpoints on main roads into the republic
from Bosnia and Croatia. 'All of that is new in the last few weeks,' a U.S.
official said. Politically, the most opportune time for Milosevic to move
against Montenegro would be after national elections in September, assuming
things go Milosevic's way as expected." (Chicago Tribune, Aug. 13) "The
United States is warning Milosevic to let the republic live in peace. As
early as January, Undersecretary of State Thomas Pickering was asked in the
Albanian capital Tirana about possible Milosevic moves in Montenegro. 'Any
further conflict in the region should be avoided,' Pickering said. He added:
'We are prepared to stand firm against any military actions of Milosevic's
in the region.' Senior administration officials speak now of obvious actions
by Milosevic to increase pressure on Montenegro, apparently intending to
provoke a crisis in the republic...'The administration has been far less
vocal about the situation in Montenegro than it was at the time the Kosovo
crisis was building in early 1998 and culminated with the 78-day U.S.-led
air war... The U.S. official acknowledged little has been done toward
planning a military response to any assault by Milosevic on Montenegro. But
he said once a political decision is made to use force, NATO forces could be
able to gear up quickly." (Associated Press, Aug. 12)"OPTIONS REASONABLY
LIMITED" AGAINST "NIGHTMARE SCENARIO"?
*** " '[U.S. National Security Adviser Samuel] Berger and that crowd are all
terrified' about a late September or early October crisis, a Pentagon
official said...'The nightmare scenario...is that first he, Milosevic, wins
his election, then he takes over Montenegro, and so, because there's nothing
we can do, he exposes our Balkans policy as a sham.' The Pentagon official
said the administration had asked General Joseph Ralston, the NATO supreme
commander, and General Henry Shelton, the chairman of the Joint Chiefs of
Staff, to prepare plans for a possible military response. 'You could throw
around some cruise missiles, fly some jets, make some buildings shake - but
there isn't really much you can do,' the Pentagon official said. A State
Department official conceded that 'the options in Montenegro are reasonably
limited.' He said that if Mr. Milosevic 'wanted to overthrow the government,
he could probably do it in fairly quick fashion, leaving the international
community to figure out how to respond.' The official added: 'the question
is, 'Do you go to war over Montenegro?' That's not easy in the best of times
and the fall of an election year makes it even more so.' " (Washington Post,
Aug. 10)
STATE DEPARTMENT: "WE REMAIN VIGILANT"
*** "I guess I'll -- I'll avoid commenting on the [Aug. 10 Washington Post]
story itself and just tell you what the facts are. I think our allies and we
have made abundantly clear our strong interest in the security of
Southeastern Europe, including Montenegro. Milosevic is well aware of the
West's capabilities to respond should he again threaten regional security.
He's already on notice. Over the last year, Secretary Albright and other
U.S. officials have reiterated many times our strong interest in the
security of the region, including Montenegro. And in addition, NATO
ministers and officials have also made clear that NATO is concerned about
the situation in Montenegro. So I think we've been quite clear about this
situation. We remain vigilant. NATO is watching, we are watching the
situation very closely, and we're working to support democratic forces in
the region, which we believe is the best way for the region as a whole to
find stability." (statement, Richard Boucher, State Department spokesman,
Aug. 10)
U.S., U.K. PLANNING "NO FLY ZONE"?
*** "There are fears that Mr Milosevic might attempt to topple the
Montenegrin president, Milo Djukanovic, while the US is engrossed in its
presidential elections this autumn and reassert his control. There are
already Serb garrisons in the autonomous republic. According to western
diplomats, the US and Britain are drawing up contingency plans to impose a
'no-fly zone' over Montenegro if Slobodan Milosevic threatens to use force
against the republic. But a Yugoslav foreign ministry official said any such
zone would be an unprecedented provocation. Strobe Talbott, the US deputy
secretary of state, and General Wesley Clark, the former NATO commander who
led the campaign in Kosovo, are both convinced that the Serb leader will
strike in the next few months. General Clark, in particular, urged the White
House and the Pentagon to begin making preparations: putting aircraft in
place and securing the backing of as many Nato allies as possible...Foreign
Office officials in London said yesterday that NATO governments wanted to
'keep Milosevic guessing' over any action they may take over Montenegro."
(The Guardian, Aug. 4)
PODGORICA ASKED NATO FOR NO-FLY ZONE?
*** "The Montenegrin government has raised the stakes in its war of nerves
with Yugoslav president Slobodan Milosevic. It has asked Western governments
to declare its air space a 'no-fly zone' and to increase significantly the
NATO naval presence in the Adriatic Sea. A 'no-fly zone' patrolled by NATO
warplanes would prevent the Yugoslav Air Force from taking offensive action
in the republic in the event of a conflict...A renewed naval presence off
Montenegro would also leave the Yugoslav military guessing as to whether any
military landing would follow a request for help from the Montenegrin
government. A Montenegrin minister, who asked not to be named, confirmed
that 'messages had been sent' to Western governments requesting the 'no-fly
zone' but added that there was no agreement on how 'it is defined'...For
several months Western politicians - including Lord Robertson, the NATO
Secretary-General - have warned Milosevic not to provoke trouble in
Montenegro, but they have always refused to specify what they would do in
case he did." (The Observer-London, Aug. 13)
ECONOMY MINISTER: NO NFZ REQUEST
*** "Minister of Economy with the Montenegrin Government, Vojin Djukanovic,
denied that the Montenegrin authorities requested from the governments of
Western countries to place a ban on flights over the territory of
Montenegro, proclaiming its air space a no-flight zone...'Montenegro is
capable of defending its own statehood without the need for a no-flight
zone', assessed Djukanovic. He added that, 'However, most probably the West
and America are considering the possibility of banning flights, because,
despite the fact that it has always been defeated in all its adventurous
operations, it is possible the Belgrade regime will try to attack
Montenegro, and they will try to make Montenegro's position easier, so that
is why they are considering the possibility of a no-flight zone'. Commenting
on the relations between the Montenegrin regime and the Yugoslav Army (VJ),
Minister Djukanovic stated that 'that is no longer a Yugoslav Army, but Mr.
Milosevic's guard.' " (V.I.P. Daily News Report, Aug. 14)
KUCAN: "ACT BEFORE MIDNIGHT" THIS TIME
*** "The most dangerous place in Europe today is Montenegro... Slobodan
Milosevic could intervene there at any time, overthrowing the freedom-minded
Montenegrin government and once again challenging the West...[Slovenia's
President Milan Kucan said:] 'Have a greater presence of the Sixth Fleet in
the Adriatic...Be willing to provide military instructors if [Milo]
Djukanovic asks for them. Support Djukanovic.'... Mr. Kucan said the U.S.
and its allies should stop urging Mr. Djukanovic not to boycott the Yugoslav
presidential election...The world has the 'illusion' that Montenegro can
combine with Serbian opposition parties and defeat Mr. Milosevic, he said.
But those parties are weak and divided, and Montenegro cannot remake Serbian
politics. Mr. Kucan said Montenegro 'must not remain a hostage in
Yugoslavia. It has the right to live democratically and become a European
state.' Mr. Djukanovic 'cannot legitimize Milosevic's election -- he'd be
compromising himself in front of his own people.' A Milosevic move on
Montenegro, if it comes, could be intensely troublesome for President
Clinton -- and Vice President Al Gore. It would be difficult to find a legal
basis for military intervention, given the fact that Montenegro is still
formally a part of Yugoslavia. President Kucan said Mr. Milosevic was
'looking for an excuse to intervene.' He said there was a fundamental
element that had to be understood: 'Milosevic has to be re-elected president
of Yugoslavia. It guarantees not just his political but his physical
existence. He's knows very well what happened to [Nicolae] Ceausescu' -- the
Romanian Communist dictator who was killed by his people when they revolted.
Russia could be 'a very important factor in his existence,' Mr. Kucan said.
He suggested that Vladimir Putin, the Russian president, could 'guarantee
Milosevic refuge, in Russia or somewhere else. 'Putin is a pragmatist...To
raise Russian standards of living he needs the help of the West. He knows
that, and he knows help has a price. He cannot pay the price if it's
Chechnya, but he can if it's Milosevic.'...'From the very beginning of the
Yugoslav crisis in 1988,' President Kucan said, 'the West has always acted
five minutes after midnight. Now it's time to act five minutes before
midnight.' " (New York Times, Aug. 10)
MESIC: "FORCE MILOSEVIC TO DESIST"
*** "As is well known, the leader of the current Serbian regime, Slobodan
Milosevic, has so far caused four wars, four crises, which he controlled and
for which he's responsible. And he holds power simply because he controls
the crises which are of his own doing...His goal now is to cause a crisis in
Montenegro. And therefore, the international community should now send a
message to Milosevic...which would force him to desist from causing any
crisis in Montenegro, and he should not be permitted to engage in a war
adventure in Montenegro. And then he will face a crisis in Serbia, a crisis
he will not be able to control any longer, and that will be the end of his
regime and of himself... We do not like to enter into any formal relations,
which Montenegro currently has with Serbia within the Federal Republic of
Yugoslavia. Milosevic's regime is today the only disturbing factor in
Europe, and this is why it certainly suits our purposes and goals to see the
democratic process currently going on in Montenegro, and we do hope that
these democratic processes will also spill over into the territory of
Serbia...However, he has drawn no lesson whatsoever from the past wars. And,
therefore, I believe that the message of the international community should
read something along the following lines: Considering what happened after
his aggression in Kosovo, he should never be made, enabled, to engage in any
further war adventure in the future. And Montenegrin citizens have the
right, are entitled, to choosing their own way, their own road, because
Montenegro was one of the constituent elements of the former Federation.
Therefore, it's only up to Montenegrin citizens to say which way Montenegro
will opt... However, if we analyze the situation in retrospect, let us just
consider what would have happened if Montenegro had chosen independence
together with -- at the very beginning, together with Croatia, Slovenia,
Bosnia and Hercegovina, and Macedonia? I believe that the brunt of the first
attack would have been on Montenegro and that today there would be no
Montenegro." (statement, President of Croatia Stipe Mesic, Aug. 10)
MONTENEGRIN, RUSSIAN FOREIGN POLICY ADVISORS MEET
*** "The adviser to Montenegrin President Milo Djukanovic on foreign
affairs, Milan Rocen, met in Podgorica today Sergey Prikhodko, Russian
President Vladimir Putin's assistant for foreign policy [deputy head of
presidential administration], who is on holiday in Montenegro. They
exchanged views on the current situation in Montenegro and Yugoslavia."
(state TV Crna Gora-Podgorica, Aug. 10)
LUKOVAC: "GOOD PROSPECTS" FOR UN SPECIAL STATUS
*** "Montenegrin Foreign Minister Branko Lukovac has said that there exist
'good prospects' for Montenegro to acquire a special status in the UN.
'There are realistic chances of our request to be granted the same status as
is currently enjoyed by Serbia in the UN being accepted. We ask for the
recognition of our right to have a mission that would represent our
interests. The fact is that one can no longer speak about FRY institutions
since they have, objectively, been taken over by Serbia and through them it
presents its assessments, stands and interests', Lukovac stressed. 'There
is, therefore, nothing left for Montenegro to do but to request the same, or
similar status, so that it too would be able to present it own interests and
stands and prevent others, who portray themselves as such, from doing so
instead of it in the future. We have already informed the Security Council
that no one can speak on our behalf', Lukovac said. Obtaining a special
status, according to him, does not automatically mean Montenegro's
membership in the UN. Such a request, Lukovac assessed, will actually be
decided on by the citizens of Montenegro at a possible referendum." (V.I.P.
Daily News Report, Aug. 10)
NO CHANGE IN U.S. POLICY UNDER BUSH?
*** "The chief of the Montenegrin diplomatic mission New York Zeljko Perovic
said: 'Judging on the every day contacts I have with the world diplomats,
especially with the members of the UN Security Council, we have
confirmations that Montenegro does not have to be too much concerned because
of the Belgrade regime behavior since they are following the happenings in
Montenegro and the region. They are not only concerned about Montenegro but
truly believe in what the Montenegrin government is doing.' He reminded that
three weeks ago George Pataki, the governor of the state of New York, who
was staying in the region as a special delegate of George Bush visited
Montenegro. After returning to USA, in a number of public appearances, he
clearly emphasized that he supported what the Montenegrin Government and the
president Djukanovic are doing. 'That is why I am of opinion that if there
are changes regarding the presidential function, there will be no changes in
the attitude or foreign policy of the USA. So, it is certain that the
Montenegrin democratic, pro-European processes and policy of the Montenegrin
Government are going to be recognized also by the new American
administration', concluded Zeljko Perovic." (Pobjeda daily-quoted by MNNews,
Aug. 11)
FRY MINISTRY REFUSING DIPLOMATIC PASSPORTS, EXIT VISAS
*** "The Federal Ministry of Foreign Affairs has been refusing to issue or
extend diplomatic passports and to issue exit visas in valid diplomatic
passports to officials of the Montenegrin government, for over a month.
There has been no formal decree of any kind reached in Belgrade, but these
practices are implemented persistently. According to Vijesti sources, the
federal MIP (Ministry of Foreign Affairs) started implementing these
'diplomatic sanctions' directed at officials from Podgorica after the visit
of the Montenegrin foreign minister, Branko Lukovic, to the UN Security
Council at the end of June... Amongst those whose application for extension
of their diplomatic passports has been refused is a minister from the
Montenegrin government as well as a member of the cabinet of the president
of the Republic. Even though Montenegro is not yet able to issue its own
passports, including diplomatic passports, the Montenegrin foreign affairs
Ministry has prepared an appropriate response to the sanctions imposed by
Belgrade." (Vijesti daily-quoted by MNNews, Aug. 11)
IV. ECONOMY
MONTENEGRO WAGES 120% HIGHER THAN SERBIA
*** "According to the Federal Bureau of Statistics (SZS), the average wage
in June was 2,094 dinars in Serbia and 4,540 dinars in Montenegro, which is
120 percent more than in Serbia, FoNet reports on Tuesday. The same source
says that the average wage in the FRY in June was 2,271 dinars." (V.I.P.
Daily News Report, Aug. 9) "According to data issued by the Montenegrin
Ministry of Commerce, the basic consumer basket, consisting of 65 products
necessary for feeding a four-member family, cost 429 deutschemarks in
Podgorica, while in Kotor it cost 419 deutschemarks. In Berane, the basket
cost about 323 deutschemarks, while in Bijelo Polje, the price was somewhat
higher, 327 deutschemarks." (BETA news agency, Aug. 10)
RETAIL SALARIES, INDUSTRIAL PRODUCTION UP; IMPORTS DOWN
*** "The July retail salaries have increased by 1.4% in comparison with last
month' it was stated by Office for Statistics. The increase in retail
prices for the first seven months of this year amount to 14..9%. Industrial
production has risen in all fields in July, and is 9% higher than the
average production last year and 14.4% higher than June's production and
somewhat higher than the production last July. Montenegrin companies have
exported goods in value of $15 million which is 62.9% higher than last year
and the total exports for this year amount to $108.954 million, which is
51.6% higher than in the same period last year. Imports amounted to $19.65
million which is 32.5% lower than in July last year and the total imports
for this year amount to $216.768 million. This is 1.9% higher than in the
same period last year. The trade deficit amounts to $107.814 million, which
means that 50.3% of imports are covered by exports." (Vijesti daily-quoted
by MNNews, Aug. 16)
BANKING ACT ADOPTED
*** "The Monetary Council adopted the working draft on the Act on Banks at
yesterday's meeting. The Act together with the Act on the Central Bank
represents the basis of the credit, monetary and banking system of
Montenegro. 'With the adoption of this Act essential changes to the system
in line with the achievements of the developed world are made and outmoded
provisions in this field abandoned. In the working draft of the Act on Bank
which the Monetary Council is to forward to the Government of Montenegro it
is prescribed that banks can be founded by domestic and foreign entities
under the same conditions, as share-holding companies. Capital in value of
5 million DMs is needed for founding a bank." (Vijesti daily-quoted by
MNNews, Aug. 9)
2001 CURRENCY: THE EURO
*** "The president of the Monetary Council of Montenegro Momcilo Cemovic
declared today that, beginning with the next year, the official currency in
Montenegro is to be euro. In the statement for the Montenegrin state
television he said that all the countries members of the EU beginning from 1
January of 2001 are to have euro as the official currency. 'Concerning the
fact that we use the German mark (DM) as a mean of payment, next year we
shall start with using euro', said Cemovic. He added that introducing of
euro in Montenegro was predicted by the Law on the central bank." (Pobjeda
daily-quoted by MNNews, Aug. 11)
PODGORICA ASSUMES FEDERAL INSURANCE POWERS
*** "[Miroslav Ivanisevic, Montenegro's finance minister said:] 'In order to
protect Montenegro's economic interests, the Montenegrin government decided
at its session today to adopt a decision on the insurance of people and
property, transferring temporarily the jurisdiction and the powers of the
federal authorities in this matter to the competent bodies in Montenegro.
Having taken over jurisdiction over the banking system, monetary policy and
securities, the Montenegrin government has in this way rounded out the
functioning of the financial system in the republic...The government adopted
a decision on the insurance of people and property, transferring temporarily
the jurisdiction and the powers of the federal authorities to the competent
bodies in Montenegro, to safeguard the republic's economic interests. The
government tasked the Finance Ministry and the public revenue directorate
with taking measures to implement the law on insurance. In this way the
government of the Republic of Montenegro will take over the control over
insurance organizations, i.e. its state bodies will carry out control and
monitoring if insurance companies have earmarked the necessary funds for the
reserve and security funds, and if the funds have been paid into a special
account. It will also ensure that the insurance premiums are paid as
envisaged by the law, and assume control over a number of things, which have
often been misused and abused in the past.' " (state TV Crna Gora-Podgorica,
Aug. 11)
DUAL CURRENCY "CAUSED SHARP RISE IN PRICES"
*** "The introduction of a dual-currency system in Montenegro has caused a
rise in the prices of essential products. It should be taken into
consideration that only the prices of one type of bread, short-life milk,
electricity, telephone services and fuel are under Government control. A
loaf of bread costs 30 pfenings for the type whose price is set by the
government, while the market price of the bread, which is of much higher
quality, is 38 pfenings. A liter of fresh milk whose price is controlled is
DM0.3, while a liter of long-life milk is between DM1.2 and 1.4. A liter of
yogurt in supermarkets costs from DM 1 to 1.2. The cheapest meat in
Podgorica is poultry, whose price ranges from DM3.8 to 4.2. A kilo of pork
costs about DM7.5 in butcher shops, a kilo of beef about DM9, and a kilo of
lamb about DM10. Citizens buy meat not only in butcher shops but also at
livestock markets, where they buy livestock. The price of flour in
Montenegro is not under Government control and ranges from 75 to 85
pfenings, a liter of cooking oil costs between DM 1.6 and 1.8, and a kilo of
sugar from DM1 to 1.2 A kilo of beans costs from DM2.5 to DM 3, a kilo of
potatoes from DM0.8 to DM1.5, a kilo of onions costs DM1.5, and a kilo of
garlic from DM2.7 to 3.5. On egg costs 20 pfenings in Montenegro, the price
of a soap is from DM1 to 1.3, a tube of toothpaste costs between DM 2 and 4,
half a liter of shampoo costs between DM3 and 8, and a kilo of detergent
between DM3.65 and 4.3. A packet of ten rolls of toilet paper costs between
DM4 and 5, while a family of four must pay DM7.6 for water and other
utilities. A kilowatt of electric power for households costs 2.5 pfenings,
while one telephone call unit costs 0.9 pfenings. The prices of these
services are twice as high for companies. A liter of lead-free gasoline and
super at Jugopetrol's' stations costs DM1.3, while a liter of diesel costs
DM0.9. These types of fuel are between 10 and 15 pfenings more expensive at
private gas stations. It should be noted that there is always fuel at
Jugopetrol's' stations even though its prices are under government control.
Entering a taxi in Podgorica costs one D-mark, as does each kilometer drive
in a taxi. Monthly rent for a one-room apartment in Podgorica is about
DM400, but a landlord can raise the rent significantly if a foreign national
rents the apartment. Rent for a square meter of office space for month costs
between DM1 and 20 depending on the location, while business space (shops
and restaurants) is somewhat more expensive. It is important to note that
Podgorica is by far the most expensive town in Montenegro and that rent in
other towns is much lower. Also the prices of catering services are the
highest in Montenegro." (Only the seaside is at the same level in high
season.) A cup of coffee at restaurants costs about DM1, a juice costs
DM1.5-2, a beer costs DM1.3-3.5, while the prices of food depend on the type
of restaurant. At any rate, one can have lunch for DM10-15. The difference
between these prices and those in Belgrade is obvious and can be accounted
for by three things. One is the transaction cost. After the break in payment
operations and the trade embargo on the border between the two federal
units, the goods coming from Serbia to Montenegro are much more expensive
than they are in Serbia. That is why quite a few products imported from
third countries are cheaper than those coming from Serbia. In addition, the
discovery of alternative markets after the embargo called for extra
expenses, which are eventually being paid by the consumers. The second
reason why prices in Montenegro are higher is the market structure. A
smaller market implies a smaller number of suppliers and less competition.
The income-related flexibility of prices, i.e. the fact that the average
wage in Montenegro is nearly double that in Serbia has also affected the
difference in prices between the two republics. The third reason is the
overrated value of the D-mark. The constant drop in the value of the dinar
boosts the value of the D-mark, which is why the prices in dinars are
relatively low. During the period of hyperinflation in 1993, prices in the
FRY were almost the lowest in the whole world. On the other hand, the
Montenegrins are already 'thinking in terms of deutschemarks, which is why
the prices are more stable but also higher. According to the Montenegrin
Bureau of Statistics, the average wage in June was DM185. This amount should
be taken with a grain of salt because about 50 percent of the Montenegrin
economy are in the gray sector. An example of this is private entrepreneurs
who report minimum wages as their employees' income, while they give them
the rest in cash. That is why economists believe that the real average wage
ranges from DM300 and 400. The Montenegrin Bureau of Statistics has not
officially analyzed the cost of living for a family of four. The only
figures come from the unions, which have calculated that, by international
standards (included culture, clothing and other such expenses) it covers 46
items and amounts to DM1, 450." (V.I.P. Weekly Economic Bulletin, Aug. 10)
HENKEL-RIVIJERA FACTORY RESUMES PRODUCTION
*** "After four years the machines in 'Henkel-Rivijera' are to start working
again. This optimistic news came from this factory after the first part of
the credit worth 350,000 DM from the Montenegrin Government had arrived.
This credit is to be used for the machines and equipment maintenance, and
twenty workers have already been engaged in doing it, and also for
purchasing of the raw materials and wrapping materials." (Pobjeda
daily-quoted by MNNews, Aug. 9)
