"The DPS...official Montenegro, will not in any way participate in the
forthcoming elections. The DPS main committee took a clear and unanimous
stand on such elections, both presidential and parliamentary, several days
ago. The view of the DPS's coalition partners on the matter is unequivocal
as well...All those who care about the state dignity and the future of
Montenegro, about their own well-being and that of their families...will
ignore the electoral farce on September 24. There is also an increasing
number of the SNP members and members of similar parties who are not
prepared to shoulder the blame for an attempt to humiliate Montenegro and
its citizens through the recent unlawful constitutional changes, on the
basis of which the elections were called. So there is a simple solution for
all of them on September 24 - they must have better things to do on this
date, which should not be difficult. The official Montenegro will not take
part in these forced elections, but it will not ban them either... People
who decide to vote will, whether they are aware of it or not, effectively
vote against Montenegro's pro-European path. But this will not make
Montenegro veer off this path. And those who are elected in Montenegro in
this way can represent themselves or anyone else, but not Montenegro."
Milo Djukanovic, Montenegro's president Quoted by Vijesti daily, August 21 -- Podgorica
"No matter how much the arguments of the leading Montenegrin coalition about
not taking part in the elections might be acceptable, it is hard to
understand such arguments when union of Montenegro and Serbia is concerned.
Democratic Party of Socialists and National Party are faced with a dilemma:
to keep the union of Serbia and Montenegro or to keep their power in
Montenegro at any cost. It is obvious that the latter one is more important
to them. Thus Djukanovic's socialists are bringing into question the very
democratic character of their power that they are so much talking about."
Vojislav Kostunica, presidential candidate, Democratic Opposition of Serbia
Quoted by Blic daily, August 23 -- Belgrade
"We will stoke up fierce opposition so that everyone who is in favor of a
democratic Montenegro boycotts them [federal elections]. We are not making
the Serbian opposition's work more difficult, we are doing our job in
Montenegro."
Miodrag Vukovic, executive board chairman, Democratic Party of Socialists
Quoted by Glas Javnosti, August 15 - Belgrade
"The initial position of the Montenegrin Government was to ignore the
federal elections. Now they're announcing an active anti-election campaign
in which they will hint that anyone participating in them is against
Montenegro. This is a change of position since our last meeting, but we
respect it. However, it effectively renders our idea of participating in the
parliamentary elections in Montenegro in any way meaningless."
Zoran Djindjic, coordinator, Democratic Opposition of Serbia
Quoted by V.I.P. Daily News Report, August 23-Belgrade
"Dear citizens, I think that there is no danger of civil war breaking out in
Montenegro. It is possible that there are unwise men on all sides, but
yesterday the SNP and the DPS assumed the commitment to use all their
political resources to preserve peace and order, which is very
important...The SNP agreed during these talks that political and democratic
means are the only possible way to resolve all issues, including the state
and legal status of Montenegro ...If independence for Montenegro is what is
wanted, then the referendum question must be clear: Are you in favor of an
independent Montenegro? Secondly, we must discuss the democratic
environment, the issue of the media, the electoral roll and other legal
issues, which are important. Only in this way can the referendum be a factor
of stability, regardless of its result. Even if the outcome of the
referendum is an independent Montenegro, the SNP will welcome it."
Predrag Bulatovic, deputy chairman, SNP
Quoted by state TV Crna Gora, August 19 - Podgorica
"Those who are threatening the army should reflect on this. At a recent
meeting with representatives of the Montenegrin authorities a group of
General Staff officers very clearly warned the authorities not to try to
repeat the scenario of Slovenia, Croatia and Bosnia-Hercegovina. It is
obvious, however, that confrontation with the army suits some individuals in
the Montenegrin authorities, and they are trying hard to undermine efforts
to overcome the tense situation."
Statement, Yugoslav Defense ministry
Quoted by Vijesti daily, August 18 - Podgorica
IN THIS MONTENEGRO WATCH:
-- Poll: 70% will not vote
-- SRS: Djukanovic won't "hand-over power if he lost elections"
-- Djukanovic rejects supporting DOS list
-- Djindjic: DOS, Montenegro interests now differ
-- Belgrade asks PM to organize elections
-- Podgorica: FRY elections "do not exist"
-- Burzan: Montenegro can only count on losing
-- Kostunica: Joint referendum on FRY future
-- Serbia opposition silent on "legal violence against Montenegro"
-- DPS-SNP message: Preserve peace & democracy
-- VJ sacks pilots for "preparing mutiny"
-- VJ blocking northern roads to RS
-- VJ electricity to be cut for unpaid debt?
-- VJ officers arrested for smuggling Chinese to Europe
-- New official rate 1 DM = 30 dinars
-- Dual currency devaluing Serbia's dinar?
-- V.I.P. analysis of dual-currency system
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. FRY ELECTIONS
POLL: 70% WILL NOT VOTE
***" 'If Milosevic remains at the head of FRY, the citizens of Montenegro
shall decide whether they shall live with the dictator and under the
dictator. Our position is equal in relation to the Serbian opposition, if
it rejects the concept of Montenegro as a state', said [Miodrag] Vukovic and
added that the holding of a referendum is an inevitable consequence of this,
rather than the aim of Montenegro's state policies, and that the referendum
can only take place through procedures outlined by the constitution and the
laws. In the interview with Montena TV, Vukovic stated the details around
the latest opinion poll, which shows that close to 70% of citizens are
'decisively against what is being done to Montenegro'. Around 35% of
citizens are for an independent Montenegro and around 40% support loose
relations with Serbia which includes full equality between the two states
and '20% believe that what Milosevic is doing is Yugoslavianism', said
Vukovic." (Vijesti daily-quoted by MNNews, Aug. 22) " 'The last survey is
showing that somewhere between 75 and 80% of the citizens will not
participate at the so-called federal elections, but they will stay at their
homes with their families and with their state on 24 of September. They will
stick to their attitude that they must not participate at this farce since
they would risk their state, their future and the future of their families'
said Miodrag Vukovic...'Those who are to participate at the elections are
those who do not believe their eyes, as well as the nationalists, those
whose aim is non-existence of Montenegro. Those who plan to participate at
the elections are absolutely against Montenegro and its right to exist as a
state' claims Vukovic." (Pobjeda daily-quoted by MNNews-Podgorica, Aug. 22)
SRS: DJUKANOVIC WON'T "HAND-OVER POWER IF HE LOST ELECTIONS"
***"Tomislav Nikolic, the federal presidential candidate of the Serbian
Radical Party (SRS), said in Podgorica he expected a landslide victory in
the elections scheduled for September 24. Nikolic said he believed the
citizens of Serbia and Montenegro had no one else to vote for. He said that
the SRS's goal was for him to become FRY president and for SRS leader
Vojislav Seselj to become federal Prime Minister. He accused the Montenegrin
authorities of making the preparation of the SRS list of candidates
difficult for the Radicals by not issuing the SRS candidates with residence
and citizenship certificates. He said that the Radicals would solve this
problem by complaining to the Federal Election Commission. Commenting on the
statement by Montenegrin president Milo Djukanovic that the citizens have
better things to do than to vote in the September 24 elections, Nikolic said
that this means that Djukanovic does not intend to hand over power if he
lost the elections. Nikolic accused the Democratic Party of Socialists (DPS)
of running away from the elections because it 'can no longer conceal the
fact that its policy is openly separatist'. He said federal elections would
be held in Montenegro notwithstanding. The pro-Government daily Politika
paid a lot of attention in its report from Nikolic's press conference in
Podgorica to his criticisms of the Montenegrin leadership." (V.I.P. Daily
News Report, Aug. 23) "Djukanovic wants Montenegro's secession, to separate
two Serbian states only because he cannot become their president, Nikolic
pointed out and called on Djukanovic to join 'the election run and try, if
he can, to accomplish his aspirations.' " (Tanjug state press
agency-Belgrade, Aug. 11)
NIKOLIC: DJUKANOVIC "THREATS, BLACKMAIL" AGAINST VOTERS
***"Tomislav Nikolic, candidate of the Serbian Radical Party (SRS) for
Yugoslav president, held talks today with the head of the Herceg Novi
municipality, Djuro Cetkovic, about problems that the participants in the
federal elections have been faced with in Montenegro. During the talks at
the Herceg Novi town council building, the municipality where the For
Yugoslavia coalition won the early local vote two months ago, it was
concluded that incumbent Montenegrin President Milo Djukanovic has been
trying in all possible ways to prevent the elections from taking place.
Pointing to the problems with which the candidates of the parties that are
taking part in the elections have been faced in Montenegro, Nikolic and
Cetkovic particularly singled out the perfidious attempt by the authorities
to obstruct the elections by refusing to issue the necessary documents, such
as the residence certificate. In addition to such obstructions, Djukanovic
has begun to use threats and blackmails, like yesterday for instance, when
he warned the citizens of Montenegro not to take part in the elections if
they wish themselves and their families well, Nada Vasiljevic, deputy head
of the municipality, said. Wishing the pro-Yugoslavia parties a lot of
success in the elections, Nikolic conveyed the message to the citizens of
Boka Kotorska that the most important thing for them is to protect
Serbianhood and the joint fatherland." (Tanjug state press agency, Aug. 22)
"Nikolic particularly emphasized that no one in our country has no right to
divide the same people and to destroy the state against the will of Serbian
citizens, because the Serbs are the same everywhere even if they live in
Podgorica, Belgrade, Banja Luka or Subotica." (Politika state
daily-Belgrade, Aug. 24)
DJUKANOVIC REJECTS SUPPORTING DOS LIST
***"The Montenegrin authorities will under no circumstances participate in
the elections on 24th September, Montenegrin President Milo Djukanovic told
'Vijesti', rejecting speculation that the Democratic Party of Socialists
[DPS] would give support to the election lists submitted by the united
Serbian opposition in Montenegro. Djukanovic said that there had been
speculation after the meeting between the DPS and the Socialist People's
Party that the ruling party in Montenegro, even indirectly, would
participate in the federal elections, i.e. that an election list is being
prepared with its approval, which consists of some well-known names from the
Montenegrin public and cultural life, or who have Montenegrin background,
and who the DPS would support behind the public's back. Djukanovic said that
this was 'only malicious speculation, aiming to discredit the DPS leadership
in Montenegro and create confusion among the citizens before the coming
elections. Somebody wants to create the impression that the ruling
coalition, i.e. the DPS as the leading party, says one thing in the public
and does something else behind its back. There are different sources and
motives for such insinuations." (Vijesti daily, Aug. 21)
DJINDJIC: DOS, MONTENEGRO INTERESTS NOW DIFFER
***"The Coordinator of the Alliance for Change, Zoran Djindjic has stated
that the Democratic Opposition of Serbia shall not engage in proposing
candidates for the federal representatives of Montenegro. 'The conditions
for the activities of DOS clearly no longer exist in Montenegro, because the
governing Montenegrin parties have, from claiming they shall ignore the
federal elections, radicalized their position and stated that they shall
actively boycott these elections. In such a situation, any kind of
participation of DOS would lead to a political confrontation with the
government in Montenegro, which is what we do not want', said Djindjic to
the Beta agency. 'Our concept was to have young, politically inactive people
who live in Montenegro, but studied in Belgrade to stand as Montenegrin
candidates for the Republican Assembly, and to have well known Montenegrins
who partly live in Serbia and partly in Montenegro to stand as candidates
for the Citizens Assembly. The development of political events is however
leading to the conclusion that having such candidates would lead to a
deterioration in the relations with the government in Montenegro', said
Djindjic. He added that it is no longer useful to 'mention the logistical
support' of the Montenegrin government to DOS at the elections in Montenegro
because now 'the interests of the government in Montenegro and DOS around
the elections are different and DOS does not want to enter into conflicts
with the Montenegrin government around these.' " (Vijesti daily-quoted by
MNNews, Aug. 24)
VUKOVIC: ONLY SERB NATIONALISTS WILL VOTE
***"After the call to all those in Montenegro who are for democracy to
boycott the elections, it is only Serbian national and nationalist parties
that will take part in the elections, those whose state program is a Greater
Serbia, assessed the chairman of the executive board of the Democratic Party
of Socialists, Miodrag Vukovic, in an interview to the Belgrade daily Blic
on Wednesday...He concluded that those in Montenegro who want to vote would
do so, and that the Montenegrin majority would do everything for all this to
pass peacefully and without any incidents. Vukovic stated that there existed
no contradictions in the DPS stands as regards assistance to the Serbian
opposition in the announced campaign against the federal elections in
Montenegro, and that 'only those who, knowingly or not, agree to the concept
of unitary relations do not differentiate between the state of Montenegro
and individual or united political parties in Serbia'." (V.I.P. Daily News
Report, Aug. 17)
DOS TO CAMPAIGN FOR KOSTUNICA IN MONTENEGRO
***"The chairman of the Movement for a Democratic Serbia, Momcilo Perisic,
stated on Aug. 23 that the Democratic Opposition of Serbia (DOS) will run an
active presidential campaign in Montenegro for its candidate Vojislav
Kostunica. At a news conference, Perisic said that the DOS will not,
however, put forward in Montenegro a list of candidates for the federal
parliamentary elections." (BETA news agency, Aug. 24)
SNS REFUSES TO SUPPORT SLOBO
***"Following political confrontations in a number of municipal
organizations of the Socialist People's Party [SNP] over participation in
the September elections, similar reports are coming from several municipal
organizations of the Serbian People's Party [SNS] whose officials are
refusing to give their support for the candidacy of Slobodan Milosevic for
president of the Federal Republic of Yugoslavia...The deputy chairman of the
SNS in Kolasin, Darko Medenica, announced he did not want to support
Milosevic's candidacy and, in a sign of protest, froze his position in this
party. The same source says that several other members of the Kolasin SNS
municipal committee did the same in solidarity with Medenica." (Montena-fax
news agency, Aug. 19)
BELGRADE ASKS PM TO ORGANIZE ELECTIONS
*** "The President of the Federal Election Commission (FEC) Borivoje
Vukicevic sent a letter to the prime ministers of Serbia and Montenegro,
Mirko Marjanovic and Filip Vujanovic in which he requests cooperation of the
republic's governments in conducting the federal elections, scheduled for
24th September. As Radio Belgrade has stated, Vukicevic has requested from
Vujanovic that the relevant Montenegrin authorities secure the space in
which the election commissions of the election units shall work, as well as
space for the work of the election boards to be located at each polling
station in state owned buildings. In the letter, the president of FEC, said
that he had written to the presidents of the Montenegrin municipalities, but
had received a response only from 7 out of 21, and that this is why he
requests the engagement of the Montenegrin state authorities in this issue."
(Vijesti daily-quoted by MNNews, Aug. 22)
PODGORICA: FRY ELECTIONS "DO NOT EXIST"
***" 'Borivoje Vukicevic does not exist for Montenegro as president of the
Federal Election Commission because that commission and the federal
elections do not exist either,' said [Miodrag]Vukovic... He added that the
view of Montenegrin deputy prime minister Dragisa Burzan that state
buildings should not be allowed to be used as polling station was reasonable
and that this position was 'in line with the view that Montenegro, as a
state, does not recognize the elections and will therefore not service them.
Nor will we respond to requests for issuing residence and citizenship
certificates. The Montenegrin police and the General Administration
Secretariat will dismiss these and similar requests because in this case
they are not obligated to issue these certificates but only in the event of
a regular election,' said Vukovic." (V.I.P. Daily News Report, Aug. 23) "The
People's party is not at all interested in results of the federal elections,
since they are invalid. The Social Democratic Party is of the same opinion."
(Vijesti daily-quoted by MNNews, Aug. 19)
NO STATE-OWNED PROPERTY FOR POLLING STATIONS
***"Dragisa Burzan, Montenegrin deputy prime minister and high ranking
official of the Social Democratic Party (SDP), said today that the
Montenegrin authorities would not let state-owned premises be used for
polling stations. He told Beta that, as far as the Montenegrin authorities
were concerned, the federal elections did not exist and 'nothing that is
part of the state apparatus will be placed at their service.' " (BETA news
agency, Aug. 22)
JUSTICE MINISTRY: FRY LACKS AUTHORITY TO "OBLIGE" REPUBLIC COOPERATION
***"Assistant to the Justice Minister, Djordje Blazic stated that the
republican and local bodies in Montenegro shall not take any steps in order
for the elections to be held in Montenegro, stating that all
responsibilities relating to the federal elections are under the authority
of the federal state. 'There is no possibility for the federal state to
oblige the member republics to conduct activities which are under the
authority of the federal state', said Blazic. The Justice Ministry informed
the local authority institutions that they are not obliged to engage in the
organizational activities around the federal elections to be held on 24th
September." (Vijesti daily-quoted by MNNews, Aug. 23)
SNP: DPS SHOULD PROVIDE "TECHNICAL SUPPORT"
***"DPS obliged itself not to obstruct the federal administration to conduct
the elections and the SNP representatives expressed their expectations that
they would be given the technical support, up-to-dated electoral lists and
organization of the polling places. However, it is still not clear how DPS
is to control number of voters, which are to participate at the federal
elections. Both DPS and the SNP count on these data as on a very significant
argument in proving the legality of the elections in September but also
proving of their power and influence in Montenegro...Vuksan Simonovic,
political director of the SNP, claims that he has nothing against DPS
controlling the elections on condition that, let's say, they support one of
the electoral lists and in that way make their presence at polling places
official. But what with the boycott then? It would be possible to realize
this control through some organizations or by providing the technical
support, for example, for the election list of the Serbian opposition in
Montenegro." (Vijesti daily-quoted by MNNews, Aug. 19)
P. BULATOVIC: SNP TO MANAGE ELECTIONS
***"Predrag Bulatovic, deputy president of the SNP, has stated that the
Montenegrin government is making a mistake for refusing to participate in
the federal elections. 'I would like to utilize this occasion to emphasize
the rightful decision of the Montenegrin government to refrain from
forcefully preventing the holding of the federal elections. Such a move is
crucial with respect to peace and security in Montenegro. At are recent
meeting we told them that it would be good if they could recognize those
citizens, who are for Yugoslavia, who honestly believe in Yugoslavia and who
are to participate in the elections, and to provide space in the state owned
buildings in which voting has always taken place. This would be an act of
good will and would demonstrate the readiness of the governing leadership to
avoid undermining their own citizens. However, if they do not do this, the
Federal Election Commission shall conduct the elections with the assistance
of the most powerful single party in Montenegro, and it shall set up its own
polling stations and boards', said Bulatovic." (Vijesti daily-quoted by
MNNews, Aug. 22)
BOYCOTT: "PROVE TO SLOBO HE HAS NO SUPPORT IN MONTENEGRO"
***"Support for any of the lists of candidates for the federal elections
would be political suicide for the Democratic Party of Socialists (DPS),
judged Saturday Srdjan Darmanovic, political analyst, report the Belgrade
media Saturday. For the Podgorica daily Vijesti Darmanovic stated that
'DPS'a official support would be an invitation to the elections, and if more
than half the voters in Montenegro were to vote, then a boycott would no
longer make any sense'. Darmanovic found that the point of a boycott is to
prove to FRY President Slobodan Milosevic that the has no support in
Montenegro. He added that 'finding a way to logistically support one of the
opposition lists is an entirely different matter. In that case, DPS would
ensure control over the voting process and prevent the possibility of
manipulations with the turn out', he stated. The federal election commission
has once again called on municipal bodies in Montenegro consistently to
fulfill their obligations concerning the holding of the federal
parliamentary and presidential elections on September 24, reports Saturday's
Politika. It was pointed out that certain parties had complained about
municipal bodies in Montenegro not allowing the citizens to see the
electoral rolls and not issuing adequate documents. The president of the
Serbian Radical Party (SRS) Vojislav Seselj stated that, in certain
Montenegrin municipalities, SRS members were unable to obtain residence
papers and other documents necessary for voting." (V.I.P. Daily News Report,
Aug. 21)
BURZAN: MONTENEGRO CAN ONLY COUNT ON LOSING
***"Dragisa Burzan, member of presidency of Social Democratic Party and
deputy prime minister...prefers independent Montenegro and even proposes
that either before or maybe even on September 24, the referendum be
organised in which Montenegrin citizens would state their will on
sovereignty of their state. However, forcing the referendum would for the
time being, according to numerous estimates, be a risky experiment. The
Montenegrin regime, however, cannot disassociate itself completely from
September elections. It will lose the role of a neutral observer because of
the obligation to put the central electoral register of Montenegro at the
disposal of Socialist People's Party (SNP) as the main Milosevic's
stronghold in Montenegro, and to open state media for the election campaign
of those who wish to participate in it. This is an interesting precedent in
political history: Montenegrin regime which does not recognise legitimacy of
the federal state will have to partly participate in the organisation of
federal elections although it will neither be able to control the voting nor
count the votes, and therefore neither will it be able to decide whether the
elections were regular or not. Everything is in the hands of the
'administration of the camp'. This means that in any case, the part of
Montenegro which wishes to break away from dictator Milosevic can count only
on losing, because the possibility of Milosevic losing these elections by
ballots is pure fantasy. The impatient international community does not seem
to realise that Milosevic is invincible." (AIM-Podgorica, Aug. 10)
KOSTUNICA MORE ANTI-MONTENEGRIN THAN MILOSEVIC?
***"Prominent Podgorica law professor Radovan Radonjic said that Vojislav
Kostunica, who is the Serbian opposition's presidential candidate against
Milosevic, is more anti-Montenegrin 'than even the regime in Belgrade,'
Montena-fax reported. Radonjic was referring to some recent remarks by
Kostunica in which he belittled Montenegro as an unequal partner of Serbia.
Novak Kilibarda, who is Montenegro's diplomatic representative in Bosnia and
an independent-minded politician, said that Kostunica and Serbian Democratic
Party leader Zoran Djindjic do not respect Montenegrin equality with
Serbia." (RFE/RL Newsline, Aug. 17)
***"Former president of the People's Party, Novak Kilibarda, has stated that
far more important for the presidential candidate of the Democratic
Opposition of Serbia (DOS) and Democratic Party of Serbia (DSS) leader
Vojislav Kostunica was to tie Montenegro into the knot of Belgrade's unitary
hegemony, than to remove Slobodan Milosevic from power, report the Belgrade
electronic media on Wednesday. Kilibarda reacted to Kostunica's statement in
which he accused the ruling parties in Montenegro of actually supporting,
with their stands, the fortification of the policy of incumbent FRY
President Slobodan Milosevic. Commenting on the statements by Kostunica and
Djindjic in regard to the decision of the main board of the Democratic Party
of Socialists (DPS) of Montenegro to boycott the federal elections,
Kilibarda told Wednesday's Podgorica daily Vijesti that the two of them
would like to see voters in favor of Unitarianism in Montenegro." (V.I.P.
Daily News Report, Aug. 17)
KOSTUNICA: JOINT REFERENDUM ON FRY FUTURE
***"Vojislav Kostunica, has rejected statements by some politicians that he
is a unitarian, adding that he had never said or written anything that could
justify such statements. In a statement for today's edition of 'Pobjeda' he
said that regardless of what he thought of the nations which were 'created'
on these territories by the communists, as somebody who abides by the law,
he appreciated the rights they had achieved and had nothing against people
declaring themselves as Montenegrins, Muslims or Macedonians. Kostunica
believes that Serbia and Montenegro should remain as one community with the
consent of the people, which should be decided by a referendum in both
republics, because, as he said, it would benefit both Serbia and Montenegro.
'I would never say that Serbian and Montenegrin ties should not be severed.
I am only saying that I am absolutely sure that neither Slobodan Milosevic
nor Milo Djukanovic and their supporters have the right to sever these ties.
The people must have the final say,' Kostunica said, adding that referenda
must be held in both republics, asking the unambiguous question: Do you
support a common state? He said that he was 'in a way flattered that he was
accused of unitarism and secessionism', because as he said, the accusations
came from circles close to the authorities in both republics. Kostunica
concluded that in the end, the truth would be somewhere in between, because
he was neither of the two." (Montena-fax-Podgorica, Aug. 22)
SERBIA'S OPPOSITION SILENT ON "LEGAL VIOLENCE AGAINST MONTENEGRO"
***"Memories are still fresh in Montenegrin democratic public that except
for Serbian Renewal Movement, not a single Serbian opposition party has
raised its voice against rash amendments of the Constitution of FRY and
legal violence against Montenegro. But this does not prevent them from
persistently persuading Montenegrin regime to participate in something that
cannot be significantly affected by Montenegrin voters, but that can cause
them to sacrifice democracy and future of Montenegro. That is why it is
difficult to understand the intensive pressure of Serbian opposition to
which Dragisa Burzan, member of presidency of Social Democrats, sent the
following message after the talks in Podgorica: 'Because of their
several-year long support to the traditional assimilative policy of official
Serbia in relation to Montenegro, leaders of Serbian opposition will not
have the support at least of those citizens who are in favour of sovereign
Montenegro'. This is quite certain and their number is not at all
negligible." ( Alternative Information Network/AIM-Podgorica, Aug. 10)
RADICALS FIRST TO BEGIN CAMPAIGN IN MONTENEGRO
***"Serbian Radical Party (SRS) candidate for FRY president Tomislav
Nikolic, together with SRS leading persons, started Monday his election
campaign in Montenegro, touring several municipalities along the Montenegrin
coast...SRS stated that this Party's electoral caravan will pay a visit to
some villages in the vicinity of Zeta, followed by Nikolic's
press-conference to be held in Podgorica. Wednesday's plan is a tour of
Berane, Bijelo Polje and Pljevlja, and, as it was stated from the SRS
Municipal Board in Pljevlja, Nikolic will be accompanied by Aleksandar
Vucic, this Party's general secretary and Information Minister with the
Serbian Government. The radicals are the first to start an electoral
campaign in Montenegro, while, for some ten days now, posters with photos of
party leaders Vojislav Seselj and Tomislav Nikolic, along with party
messages can be seen in several Montenegrin cities. The Serbian parliament
information service said that the session of the Election Commission for the
Serbia election unit declared valid the election list of the Serbian Radical
Party (SRS) Vojislav Seselj for the elections to the FRY parliament Chamber
of Republics, Politika says on Tuesday. The SRS list for that chamber has 20
candidates on it." (V.I.P. Daily News Report, Aug. 22)
***"Tomislav Nikolic, the candidate of the Serbian Radical Party (SRS) for
FRY Federal Republic of Yugoslavia president, toured the Kolubara region
today as part of his election campaign... In response to questions by the
locals about the current political situation, Nikolic said that no one in
the Serbian government or the federal government was even giving a second
thought to the possibility that we could stay without Montenegro. The
country's constitution, in the creation of which Montenegrin President
Djukanovic also participated, clearly says that one federal unit cannot
secede without the consent of the other, Nikolic said, stressing that
Djukanovic could not take Montenegro out primarily because of the Serbs in
the republic, but also because all of those who wanted coexistence in the
federal state." (Tanjug state news agency, Aug. 11)
II. POLITICS
DPS-SNP MESSAGE: PRESERVE PEACE & DEMOCRACY
***"The talks between the ruling Democratic Party of Socialists [DPS] and
the opposition Socialists People's Party [SNP], held in Villa Gorica in
Podgorica today, concluded with a joint message that preserving peace and
democratic principles in Montenegro was of the utmost importance, and with
an announcement that talks between the DPS and SNP would resume in the
future. DPS deputy chairman Filip Vujanovic...said: 'The talks were frank.
We agreed that preserving peace in Montenegro was an issue of the utmost
importance. We pledged our commitment to democracy and our commitment to
resolving all disputed issues only by political means. We acknowledged the
differences of opinion about the forthcoming elections and agreed that these
disagreements must not be a reason for conflicts in Montenegro and that
elections should pass off in a peaceful atmosphere." (Radio Montenegro, Aug.
17) "SNP deputy chairman Zoran Zizic said that today's meeting was not 'a
sign of an endangered civil peace', and stressed that these two parties
would agree on all issues about which they had different views. 'We tackled
questions that are important for the functioning of the federal state and
Montenegro: the creation of conditions for the peaceful and democratic
implementation of the federal elections, the question of the position of the
Montenegro-Coastland Diocese, then the functioning of the Yugoslav Army and
its media presentation,' Zizic said. He said that Montenegro's status as a
state had been discussed, which should be settled in a manner envisaged by
the constitution. In addition to Vujanovic, the DPS delegation included
deputy party chairman Svetozar Marovic, Miodrag Vukovic, chairman of the DPS
Executive Committee, and Dragan Djurovic, the DPS floor leader in the
Montenegrin parliament. The SNP was represented by deputy chairmen Predrag
Bulatovic, Zoran Zizic and Srdja Bozovic, as well as by political director
Vuksan Simonovic." (BETA news agency, Aug. 17)
P. BULATOVIC: POLICE OVERSTAFFED, TV "SCARE-MONGERING"
***"The deputy chairman of the opposition Socialist People's Party (SNP) in
Montenegro, Predrag Bulatovic, has said he rejects any possibility of any
conflict or civil war in Montenegro. Appearing as a guest on state-run
Montenegrin TV: [Bulatovic:] 'I would also like to welcome the agreement we
reached with the management of Montenegrin TV, even before the talks between
the SNP and the DPS, to allow me to express a different opinion on state TV
regarding the current political situation and the meeting between these two
parties. This is a new trend, I hope, because according to the SNP, the
management of this TV station was mainly favorable to those political views
and those political positions which are opposed to those of the SNP... I
think that the current regime has unjustifiably heightened tensions. I even
think that [Montenegro's] state TV, in its news bulletins and current
affairs programs, is part of the effort to increase tensions, and I do not
want to start a discussion on whether this happens for political reasons and
because of the state TV's views, because there is allegedly a possibility of
a conflict or civil war breaking out. I completely reject any possibility of
any conflict or civil war in Montenegro. The two political parties, the SNP
and the DPS, as the leaders of the two blocs, can politically control all
the political and non-political structures, which could be a factor of
discord. As far as I am concerned, this was directly told to our political
opponents, the DPS delegation, during the talks. If we have an appropriate
attitude towards the armed structures - and the armed structures in
Montenegro are the Yugoslav Army and the Montenegrin Interior Ministry, and
I must note here that the Interior Ministry is very much overstaffed, as it
has 20,000 members - (Mediator interrupts) And the army? (Bulatovic) I think
that the army is still within the staffing levels from before the war and
that the army still has a proper peacetime structure. [Q] Do you have the
information on precisely how many soldiers the Yugoslav Army has in
Montenegro? [A] No, and I can hardly be expected to have this information
since it is the army's internal matter, but I know that the staffing of the
7th battalion is overblown, it is said that it has twice or three times as
many members as it really has... All I want to say is that the current
regime and the pro-regime media, or the media controlled by the regime, are
using scare-mongering tactics, and telling the citizens of Montenegro that
there will be war."(state TV Crna Gora, Aug. 19)
M. BULATOVIC: "CITIZENS DID NOT ELECT" DJUKANOVIC
***[Interview with Yugoslav Prime Minister Momir Bulatovic in the
pro-Milosevic "Dan" Podgorica-based daily.] Bulatovic: "Djukanovic's task is
to say that the Federal Republic of Yugoslavia no longer exists, and that
means that there is no culpability for the US government which, under UN
regulations, is obliged to allow all countries to participate in the work of
the United Nations notwithstanding their political relations with the United
States, on whose territory the UN General Assembly convenes. [Q] If that is
the scenario, why is the Montenegrin government taking part in it? [A] The
overall development of political circumstances in Montenegro in the last
couple of years gives the unequivocal answer to that question. The
Montenegrin people, the citizens of Montenegro did not elect the current
Montenegrin government. This government has been imposed on them by the
State Department. That is why its task is to protect foreign, not
Montenegrin interests. I see no valid reason, no single benefit that could
motivate the Montenegrin government to make such moves against its own
country... [Q] Recently Mr Djukanovic said NO to the demands put to him by
Madeleine Albright. [A] Mr Djukanovic did not say no, he said I cannot. He
did not refuse to carry out the orders, he only admitted that he was
incapable of carrying them out. Mrs Albright accepted his excuse when he
explained that by taking part in the federal election he would be committing
political suicide and would suffer a terrible political defeat. That is why,
in a diplomatic sense, Djukanovic has been 'conserved', because they figured
that it would be less harmful if he were to carry on, no matter how weak and
powerless he may be, than to be destroyed immediately trying to implement
what for him would be a mission impossible. Conserving the situation creates
a total absurdity in the Montenegrin government's policy. Their master will
not allow them to achieve full secession because they know that the people
of Montenegro do not want that and that a referendum would be the end of the
Djukanovic era. On the other hand, the job that Djukanovic is there to do
for them - and that job is to fight against President Milosevic, in other
words, the fight against the Federal Republic of Yugoslavia - he is simply
not able to do, and so he has been 'conserved'...[Q] The official
Montenegrin media have launched a thesis according to which the Federal
Republic of Yugoslavia no longer exists and that therefore there is no need
for a referendum. They claim that all that needs to be done is to proclaim
sovereignty, expel the Yugoslav Army from Montenegro, and call in NATO to
protect Montenegro. [A] I have seen such a scenario and I am deeply
concerned because of so much irrationality that has been taking the form of
official statements. That is not the way to conduct political dialogue and
democracy. That is the way to create conflict, a war whose consequences we
cannot even imagine. The Montenegrin government's political course is being
determined by that minuscule and pitiful Democratic Party of Socialists
[DPS]. But you know what they say about poison always being kept in very
small bottles. The upcoming dialogue between the SNP and the DPS will
hopefully contribute to preserving civil peace and respect for the
constitution and the laws of Montenegro as an equal member of the Yugoslav
federal state. It is a very good thing that the Yugoslav Army and the
Montenegrin MUP have intensified their cooperation. And as far as the NATO
protectors of Montenegro are concerned, it would be better for them not to
come here. Not only would they be unwanted, but we would prepare them a
'welcome' and a 'farewell' such as Montenegro has always prepared for
invaders, because the Yugoslav Army in Montenegro are the honourable and
freedom-loving citizens of Montenegro, who have the right and the obligation
to defend themselves and their ancestral homes...[Q] In view of all this
foreign and inside pressure, what are your predictions for the future of the
Federal Republic of Yugoslavia? [A] We have already won, even though some
people still cannot see that. You win when you succeed in defending your
people and your country...The Federal Republic of Yugoslavia enjoys the
support of the vast majority of countries in the world. This US
Administration is going away soon, and that will be an opportunity for the
European Union to rectify all its mistakes in its relations and its attitude
towards the Federal Republic of Yugoslavia. I expect that such a day is just
around the corner." (Dan daily, Aug. 14)
DPS-SNP DISCO BRAWL
***"A few days ago the disco owned by brothers Bratislav and Vlastimir Jukic
in Andrijevica was the scene of a mass brawl between supporters of the
Democratic Party of Socialists and supporters of the Socialist National
Party in which, according to claims by the Montena-fax news agency, members
of the military police were involved as well. Furthermore, the agency claims
that passions had to be soothed by members of the Andrijevica Secretariat of
Interior Affairs. In an attempt to learn some details about the incident,
'Vesti' has repeatedly hit a wall of silence. Although it is almost certain
that there were slightly injured persons among those involved in the brawl,
that the police arrested around 20 most belligerent troublemakers, of whom
eight were detained for questioning, we were told at the security center in
Berane that they 'did not have any idea' about it. The material damage
caused to the WBW disco is huge. Andrijevica municipality officials told the
'Vesti' correspondent to go to the local Yugoslav Army barracks, because it
is believed that soldiers were among the persons involved in the brawl as
well, but at the barracks 'nobody knew anything' either. Obviously, there is
a general desire to not raise too much of a dust about the entire event in
order to not further aggravate the already tense situation. This is
confirmed by the fact that the owners of the disco are not going to press
any charges against the persons involved in the brawl." (Vijesti daily, Aug.
19)
III. SECURITY
VJ SACKS PILOTS FOR "PREPARING MUTINY"
***"The Yugoslav Army (VJ) has sacked three of its pilots, accusing them of
plans to take over the military airport near Podgorica, the capital of
Montenegro...The VJ has fired Dragan Brinic, Miroljub Anastasijevic and
Slobodan Grujic, accusing them of 'preparing diversions on the airport in
Golubovci, its takeover and surrender to the Montenegrin Interior Ministry
and the use of weapons against their colleagues'. Four more VJ pilots were
under suspicion but they weren't indicted and have eventually appeared in
the investigation only as witnesses, the paper said. All three of the
soldiers - a major and two captains - denied the charges. Major Brinic was
sacked because he 'failed to inform his superiors about the thoughts of
officers under his command', Vijesti said. Captain Anastasijevic was fired
because 'he participated in talks in which he complained about the
conditions in VJ and loudly thought about possibly refusing orders, planned
a mutiny and contacted members of other units'. He has also been degraded.
Captain Grujic was fired because he 'took part in meetings organized by
Anastasijevic and actively participated in rallying members of other units'
for the alleged plan. The VJ acquitted three other pilots innocent of
charges that they 'conspired to assume control over the airport, sabotaged
and requested assistance from the Montenegrin police', the paper said."
(Deutsche Presse Agentur, Aug. 23) "Miroljub Anastasijevic said that there
was resentment in the unit before and during the war and that the commander
of the escadrille mayor Brinic was informed of this. Captain Slobodan Grujic
said that he signed the minutes of the hearing because he was so tired after
being questioned for 20 hours, but that the text from the hearing is
incorrect. The witnesses all confirmed that there was resentment among the
pilots mainly because of their financial situation and because of the
general political problems, and that none of them participated in any kind
of conspiracy."(Vijesti daily-quoted by MNNews, Aug. 23)
VJ OBSTRUCTS AIRPORT ROAD BUILDING
***"The army authorities are persistent in obstructing the realization of
the project on reconstructing the main road from Podgorica to the airport in
Golubovci. With no explanation and on no legal basis, people in army
uniforms do not allow this road to be widened. The army command gave no
official announcement on this occasion but it very eagerly stops the further
works on this main road. 'The fund has on time informed the Second Battalion
Command on the beginning of the works on the part of the road which passes
by the army barracks, although it is the land on government property' said
Boro Vucinic, the vice president of the Municipality of Podgorica. 'That is
why we are surprised by the act of the army command since it is
incomprehensible someone to make the realization of such an important
project impossible. It is the investment worth approximately 4 million
deutschemarks', reminded Vucinic, 'financed by the European commission,
thanks to the Montenegrin Government and it is supposed to be terminated in
six and a half months. Nevertheless, if things like this keep on happening,
then Europe maybe will not support the projects since they do not want to
'gamble' with the invested resources....'How come the 'people's' army in one
part of the country is trying to represent itself as 'the builder and
renovator' while in the other part of the country is trying to, if not stop
at least make harder every attempt of development. No comment. This is maybe
the best proof on how much the FRY army is Yugoslav and how much it actually
is in service of the political concept, which treats Yugoslavia as someone's
private district or 'dowry.' " (Pobjeda daily-quoted by MNNews, Aug. 23)
PODGORICA MAYOR: MOVE "RESEMBLES OCCUPYING ACT"
***"Podgorica Mayor Miomir Mugosa said that the Yugoslav Army decision to
block the reconstruction of the road from Podgorica to Golubovci Airport
'resembles the occupying act.' In an interview to the Aug. 23 issue of the
Podgorica-based daily Pobjeda, Mugosa said that this move harms the Yugoslav
Army, that is uselessly trying to present itself as 'the peoples' army.
Unfortunately, with its moves on daily basis, the army can no longer hide
behind the names of 'peoples' army,' said Mugosa." (BETA news agency, Aug.
24)
YUGOSLAV NAVY DELAYED US CARGO SHIP AT PORT
***"Members of the Yugoslav Navy prevented the US cargo ship the Delaware
Bay from docking in the port of Bar on Saturday [Aug. 19] morning for five
hours. Armed navy officers climbed on deck of the ship, which carried 4,000
tones of flour from UN humanitarian organizations. The navy held the ship at
anchor from 6:30 until 11:30AM, which is unprecedented, and then it finally
allowed the ship to dock in the port...According to the same sources, the
navy's reason for stopping the ship was its entry into the Yugoslav waters
from Albania and its delay of four hours. The captain of the ship was asked
for a cargo manifest - documentation on the cargo. The 'Vijesti' sources
said that the documentation on the cargo was not the captain's
responsibility. The documentation requested was forwarded to the navy
command on Saturday morning, and according to 'Vijesti' sources the arrival
of the Delaware Bay was announced 10 days earlier and it arrived in Bar
directly from Malta. The Delaware Bay, carrying humanitarian aid, had docked
in Bar three times before. The fleet of its owner, the company Farrell Lines
Inc. from New York, carrying humanitarian aid, had docked in the port of Bar
more than 10 times before. After the cargo was unloaded, the Delaware Bay
left the port of Bar on Sunday morning." (Vijesti daily, Aug. 21)VJ
ELECTRICITY TO BE CUT FOR UNPAID DEBT?
***"The Yugoslav Army has warned the local authorities in Montenegro that
any attempt to cut off power to the units of the 2nd Army would have fatal
consequences. 'The relevant authorities in Montenegro have been told that
the Yugoslav Army will react with determination to any attempt to cut off
power or water to Yugoslav Army facilities in Montenegro. The Yugoslav Army
members are quite restrained over the daily provocations by certain ruling
structures in Montenegro, but the authorities have been told that the army
will not just sit on its hands if the situation escalates,' 'Vesti' has been
told by sources in the Yugoslav Defense Ministry. The sources refused to say
just how the 2nd Army units would react if power were cut off to the 2nd
Army - as some Montenegrin officials had announced - over unpaid electricity
bills." (Vijesti daily, Aug. 18) "The Yugoslav Army (VJ) could be cut off
the power supply network on 27 August owing to its outstanding debts for
consumed electricity, announced the Montenegrin Power Company, report news
agencies on Wednesday. Director of the distribution department in the
Montenegrin Power Company Gojko Knezevic said that the VJ owed about DM 1.3
million for the electricity consumed thus far and that the army was ready to
pay out the debt, though not at the current exchange rate which is 1 DM =27
Dinars but at the rate in force at the time when the electricity bills were
received (1 DM =17 Dinars)." (V.I.P. Daily News Report, Aug. 17)
MONTENEGRO TO SET UP OWN CUSTOMS?
***"The director of the Montenegrin customs, Miodrag Radusinovic, has said
that Montenegro will soon be forced to set up its own customs points on the
border crossings with the Republic of Serbia, adding that the move has
become fully justified in the past year, since Montenegro took over the
customs from the federal administration. Radusinovic recalled that a long
time ago Serbia set up customs offices on the roads to Montenegro, and that
customs duties and tax were collected on all imported goods arriving to
Montenegro via Serbia, while Montenegro allowed the free flow of imported
goods for Serbia via Montenegro without collecting any duties. He added that
the setting up of customs offices by Montenegro was not based on the
principle of reciprocity because the Montenegrin customs would not be
collecting any duties there. 'All we want is to control the flow of goods,
primarily imported goods, both from and to Serbia,' Radusinovic [said]. He
pointed out that the federal customs directorate was refusing to cooperate
with the Montenegrin customs when it came to supervision. Since recently, he
said, 'it does not want either to register or confirm the entrance of
imported goods in Serbia, so the control carried out in the Montenegrin
territory is futile. In this situation we are forced either to put a stop to
the flow of imported goods for customers in Serbia, which is certainly worse
course of action, or to set up our own control points where we can register
the imported goods and verify that they really reached Serbia,' Radusinovic
said, adding that Montenegro has such a point on the Kula border crossing
with Kosovo." (Montena-fax news agency, Aug. 20)
BORDER CHECKPOINTS FUTURE CUSTOMS POINTS?
***"The Industry Minister, Vojin Djukanovic has concluded that Serbia has
imposed great damages on Montenegro by setting up customs check points where
customs duty and tax have to be paid for all goods intended for the
Montenegrin market. Djukanovic said that this has forced Montenegrins to buy
imported goods at extortionately high prices. With respect to the decision
of the Montenegrin government to set up checkpoints at the border with
Serbia, Djukanovic said that initially only the amount and type of goods
imported from Montenegro to Serbia shall be documented and charges shall be
made. Minister Djukanovic did not exclude the possibility of these
checkpoints becoming customs points, at some time in the future." (Vijesti
daily-quoted by MNNews, Aug. 22)
"CUSTOMS CHECKPOINTS DIRECT ATTACK ON FRY"
***"Srdja Bozovic, the president of the Citizens Assembly of the Federal
Parliament, accused the government in Montenegro of establishing 'customs
checkpoints' on roads leading to Serbia and said these were 'a direct attack
on the federal state. The government in Montenegro is trying to acquire the
resources and the functions which belong at the federal level in an illegal
manner', said Bozovic." (Dan daily-quoted by MNNews, Aug. 23)
VJ BLOCKING NORTHERN ROADS TO RS
***"The Yugoslav army has blocked roads leading from the town of Pljevlja in
northern Montenegro toward Bosnia's Serb republic, Montenegrin State radio
reported Wednesday. The radio said ramps and roadblocks had halted traffic.
Only people on foot could cross the border, it said. It did not say when or
why the army took the action, and no army spokesman was immediately
available for comment... The radio said the army action had cut off people
in four villages in the area from jobs or schools in Bosnia. A local
official in one of the villages, Sol, criticized the army's move. 'This
blockade is one of the most stupid things, invented by somebody who does not
care about these people,' the official, Sreten Ristanovic, told the radio."
(Reuters, Aug. 23)
("The Yugoslav Army has placed mobile barriers - instead of the stone
barricades which they removed two days ago - on the local roads in the
villages of Toljevina and Koravlica, which link the border villages of the
Crkvice local community in the Niksic municipality with the villages from
the Bileca municipality in the [Bosnian] Serb Republic. Yugoslav Army
members are guarding the checkpoint. According to military sources, this was
a response by the military authorities to the demands of the locals, who
protested and rallied for several days. Therefore, ramps had been placed
instead of the barricades and all vehicles crossing the border are being
checked. The citizens of the surrounding villages transporting hay and
timber are allowed to cross the border freely. It was announced that the
barricades on the roads near the villages of Vrbica and Kovaci would also be
removed and ramps, guarded by Yugoslav Army members, would be placed
instead." (Montena-fax news agency, Aug. 19)
FRY BORDER INSURANCE FEES IGNORED
***"Montenegro will not apply the regulation of the Yugoslav government
whereby Bosnia-Hercegovina citizens are required to pay a motor insurance of
150 deutschmarks for cars, 350 deutschmarks for lorries and 300 deutschmarks
for coaches at border crossings [with Yugoslavia]. The Montenegrin minister
of transport and maritime affairs, Jusuf Kalamperovic [said:] We have our
own regulations which we shall apply strictly,' the Montenegrin minister
said. As for the road tax, Kalamperovic said, there is a Montenegrin
government regulation for citizens of the former Yugoslav republics,
according to which no such payment is required for passenger vehicles until
15th October this year. As for the motor insurance, it is as follows: 30
deutschmarks for cars and 60 deutschmarks for coaches payable until 15th
October, he said, and after this date we shall revise the situation and
decide whether any changes are needed. 'In any case, the federal government
regulation may be applied at other border crossings, but not at those
between Montenegro and the Serb Republic or Bosnia-Hercegovina,'
deutschmarks was categorical. The Montenegrin transport minister classed the
Yugoslav government regulation as 'yet another step towards self-isolation
by the Belgrade regime. Montenegro is opening its borders, which is
demonstrated by our own regulation according to which - on very favorable
terms - people could enter Montenegro without a visa,' Kalamperovic said in
conclusion." (SRNA news agency, Aug. 19)
VJ OFFICERS ARRESTED FOR SMUGGLING CHINESE TO EUROPE
***"The Montenegrin police broke an illegal immigrant smuggling ring in an
efficient operation at the Stanisici checkpoint near Budva last night, where
they discovered a van with the Yugoslav Army registration plates, in which
Chinese nationals were being transported across our territory to Italy,
Montenegrin TV has reported. Even though they opposed the search of the
vehicle, quoting the Yugoslav Army rules, senior Sgt. Zeljko Modosan from
Zrenjanin and Aleksandar Todorovic from Podgorica were detained. Twenty-five
Chinese nationals and Dragoljub Vlaovic from Podgorica were found in the
van. They were given first aid, as they were very exhausted because of
inhumane conditions in which they were transported, in very high
temperatures and in the almost hermetically sealed space. The criminal
proceedings have established that the van belongs to Miljan Kuljic from
Bileca, so it is assumed that officers Modosan and Todorovic put Yugoslav
Army registration plates on it and forged the paperwork for the trip.
Todorovic and Modosan admitted that they were illegally transporting the
Chinese nationals from Podgorica to Jaz [on the Montenegrin coast] and the
Platamuni [cape], where they were to be put on a speedboat to take them to
Italy, at the price of 500 deutschemarks per person. According to Sgt.
Modosan's statement, Dragoljub Vlaovic, in agreement with Capt. Todorovic
organized the transport, while Modosan himself forged the paperwork. After
they signed their statements, Todorovic and Modosan were handed over to the
competent military authorities, while Dragoljub Vlaovic is being held in
detention." (Radio Montenegro, Aug. 20)
BELGRADE MANAGES MAJOR FLOW OF ILLEGAL CHINESE
***"Yugoslav consulates in China freely grant tourist visas to Chinese, and
the legal passage to Yugoslavia eases the way for illegal entry to the rest
of Europe. Typically, the Chinese arrive by plane in Belgrade, then travel
to Bosnia and on to Croatia. Then they head for the Adriatic coast and hope
to reach Italy... The authorities here have caught 10,000 illegal immigrants
trying to cross into Croatia in the first half of this year, compared with
8,000 in all of 1999. On Aug. 12, for instance, 52 illegal immigrants were
sent back to Bosnia, with which Croatia shares a 1,200-mile, largely
mountainous and unpatrolled border. A few days later, 36 more migrants were
caught in the town of Varazdin, close to the border with Hungary and
Slovenia, said Miroslav Cindori, the head of a detention center outside
Zagreb... The 85 men and 2 women detained here have mostly come through in
groups, organized by a shadowy but extensive criminal network of human
traffickers, who are suddenly using the Balkans for access to Europe, said
Duc Tran of the International Organization for Migration, in Zagreb... a
sophisticated and far-reaching network of human traffickers from Asia has
switched its attention from the United States and is now looking to Europe.
The traffickers have found that the troubled and unruly countries of the
former Yugoslavia, with porous borders and a lack of immigration laws and
agreements are an ideal gateway to the West... Chinese gangs have switched
the focus of their activities toward Europe, Mr. Tran said. 'There has been
a change in the final destination since the clampdown by the U.S.
government, which has cut down illegal immigration to the United States,' he
said. 'Europe is now the specific destination of the Chinese...What
triggered it was the granting of visas by Belgrade,' Mr. Tran said. 'Two
DC-10's come in a week to Belgrade. You pay $500 to $900 for a ticket, and
you are in Belgrade.' The groups of Chinese arriving by plane 'are not going
to Serbia for business,' Mr. Tran said. 'They may do some trade, but their
final destination is Europe.' Belgrade is almost certainly making money out
of the scheme, said Dr. Thomas O'Rourke, acting chief of mission in Zagreb
for the International Office of Migration. Besides the visa and ticket
sales, there is talk that the Chinese can buy residency permits in Serbia
for a few thousand dollars, Mr. Tran said...The real concern is that the
movement of illegal immigrants appears to be highly organized and run by
international criminal rings who have realized that smuggling people for
high fees is more profitable and less risky than trafficking drugs, Mr. Tran
said." (New York Times, Aug. 23) "The western media are increasingly
writing about how the illegal transfer of Chinese citizens to the West via
Belgrade as part of the state policies of FRY and the responsibility of
Slobodan Milosevic given the loan in value of $300 million from the Chinese
government which enabled Milosevic to stay in power. According to the French
paper Figaro at least 80,000 Chinese have entered into Europe via Yugoslavia
in the last ten years. 'Four years ago, the Chinese were coming into Italy
via Albania, and today nearly all of them come via Montenegro', said one
Italian official for Panorama." (Vijesti daily-quoted by MNNews, Aug. 21)
100,000 CHINESE IN BELGRADE, ITALY-BOUND
***"Vojin Djukanovic, Minister for Economy with the Montenegrin Government
stated that the exposing of the attempt of Army members to smuggle 25
Chinese citizens into Italy is only the tip of the criminal iceberg, which
is yet to be fully exposed to the public, reports Monday Radio B2 92 on its
web site. Djukanovic stated that such criminal activities have been going on
for some time. 'The arrest of the to VJ members proves that, instead of
dealing with the country's defense, VJ is dealing with matters in the
interest of the regime - and that is the smuggling of Chinese citizens, for
that is what brings them money', stated Djukanovic. 'They probably have
orders from the regime heads for these operations, which is, all in all, one
big tragedy for this country. The people should finally realize that VJ de
facto is not a VJ which should protect the borders, but one which has turned
into Slobodan Milosevic's guard, which carries out his orders, meaning that
it is now into crime', stated Djukanovic. He further said that 'the very
fact that there is approximately one hundred thousand Chinese in Belgrade
waiting to get to Italy, via Montenegro this same way proves that this is
all an organized operation of the regime on the level of Serbia and FRY. "
(V.I.P. Daily News Report, Aug. 22)
V. ECONOMY
NEW OFFICIAL RATE 1 DM = 30 DINARS
*** "As of Wednesday, one German mark will be exchanged for 30 dinars, the
Monetary Council of Montenegro decided, Belgrade media reported on Tuesday.
The decision to raise the official exchange rate was taken because of the
increase of dinars in the overall money mass which the National Bank of
Montenegro said was caused by the tourist season." (V.I.P. Daily News
Report, Aug. 23)
DUAL CURRENCY DEVALUING SERBIA'S DINAR?
***"The Yugoslav dinar started to melt down on the [Serbian] black market
during the weekend, falling to 26.0-28.5 against the German mark on Monday
in what street dealers said was a decline that would take it to the 30.0
level. The dinar was changing hands at 25.5-27.0 to the mark last Friday.
Most street traders were buying on Monday at 26.0 in cash deals and some
have been reported offering as much as 28.0 in goods-related deals. But few
were ready to sell the German mark, which they said was a very scarce item
in the past week. Some said they feared arrest as plain-clothes police were
spotted in the streets. 'The dinar is bound to fall to 30 to the German mark
by the end of the week and settle there for a while. But first, it's got to
come in line with the rate in Montenegro. Right now, it's purely
psychologically driven,' one street dealer said. Montenegro, Serbia's last
and glowingly reluctant partner in federal Yugoslavia, launched a dual
currency system last November, legalizing the mark alongside the Yugoslav
dinar. Although hard currency in Montenegro accounts for most daily
payments, some dinars remain in circulation as the Yugoslav army in the
republic is still being paid in dinars."(Reuters, Aug. 21)
***"According to data of the Economic institute in Belgrade the government
is controlling 61% of products prices in Serbia, whether the prices are
determined by the Serbian Government or the local authorities. However, in
Podgorica the government is controlling only the prices of flour (wheat),
fresh milk, electric power and public services, was stated in the magazine
'Monet' the Montenegrin economic trends, published by the Podgorica's
Institute for the strategic studies and prognosis in cooperation with the
Brussels institute CEPS. 'Monet' has been following the prices in Podgorica
and Belgrade for 20 main products. 'Monitoring' of the prices in Podgorica
and Belgrade was done on 13 June and 24 June in three different shops in
both towns and for 20 products bread, milk, flour, oil sugar, beans, rice,
potato, onions, cheese, season vegetables and fruits, eggs, soap, shampoos,
detergents, cleansers, electric power, water and public services. According
to 'Monet' the price control is obviously very strong in Serbia, and this
administrative measure provokes shortages so it is very hard to find
products with controlled prices in Belgrade shops, except for the bread.
Consequently, 'Monet' writes about the queues of over 200 people in front of
the shops where for example oil is sold on the administrative, low price.
Contrary to the official, controlled price of 0.63 DM, the price of oil on
free market, without waiting in queues is 1.30 up to 1.52 DM, what is not
very much different from the oil price in Montenegro, where it is sold only
on free market. 'Monet' also deals with the causes of somewhat higher prices
of the basic product in Montenegro comparing prices in Serbia. Despite the
existing economic blockade on the border, Montenegro still gets the goods
from Serbia. However, it is the illegal trade and that is why the buyer is
paying a premium to the seller and to the customs as well as the transport
expenditures. That is why the very same products must be more expensive in
Montenegro then in Serbia. Montenegro also imports the goods from abroad.
There are usually small amounts of goods, since the importers can not afford
the storage of bigger amounts of goods, since they usually have to pay in
advance. That is why they cannot buy goods on more favorable prices. The
buyers have to pay the import taxes, transport expenses, food inspection for
these imported products, and it is what makes them expensive, 'Monet'
explains." (Pobjeda daily-quoted by MNNews, Aug. 23)
NIKSIC BEER CHICAGO-BOUND
***"The Niksic brewery 'Trebjesa' has, through the port of Bar, sent two
containers of beer to Chicago and tomorrow the brewery is to send one more
container. By this delivery of three containers, that is 60,000 bottles of
beer, cooperation with the American buyers, interrupted by imposing
sanctions on the FRY, was renewed. But before the sanctions 'Trebjesa'
exported 20 to 30 containers of beer a year for the American market, said
Miodrag Novakovic, commercial director of the brewery 'Trebjesa.' " (Vijesti
daily-quoted by MNNews, Aug. 19)
STABILITY PACT PROJECT UNDER WAY
***"Mr. Benedict Stumph, the representative of the CESO association, was
staying in Bijelo Polje yesterday. CESO association is engaged in
realization of the projects in the scope of the Stability Pact for the
southeast Europe. Mr. Stumph informed the hosts on the acceptance of two
projects of totally seven nominated by the Bijelo polje municipality. 'The
resources for the complete setting of the installation and system for the
steam heating in the kindergarten in the Pruska suburb. The project is worth
20,000 deutschemarks', said Refik Bojadzic, the vice president of the
municipality...These educational institutions are obliged to invite tenders
for the selection of the building contractors. The decision on the building
contractors is to be made by the joint commission of the local
self-management and the CESO association." (Pobjeda daily-quoted by MNNews,
Aug. 22)
DISPUTE OVER FOREIGN MANAGEMENT OF HOTELS
***"Representatives of the French Akor company signed agreements in
Podgorica on 24 August worth some $23 million to modernize six of
Montenegro's best hotels on the Budva Riviera. The new management of the
hotels will be French, Montenegrin Television reported. Montenegro, like
Croatia, has great hopes for the revival of its once highly lucrative
tourist industry. Tourism throughout the former Yugoslavia has suffered on
account of the conflicts of the past decade." (RFE/RL Newsline, Aug. 24)
***"According to a Bosnian news agency report, a scandal is brewing in
Montenegro over the government handing over the management of the most
exclusive hotels in Montenegro, including Sveti Stefan, to a French firm.
People oppose the deal with property rights on Sveti Stefan who are
threatening to sabotage the hotel if the contract is not cancelled. The
agency quotes an economist, Nebojsa Medojevic, as saying the move is 'yet
another illegal deal by the government that ... was merely another case of
privatization through the back door'. It is moreover alleged that the
incident marks a struggle... After the Montenegrin government signed a
management agreement with the French firm Akor, entrusting the firm with the
management of the most exclusive hotels in Montenegro - Sveti Stefan,
Milocer, Maestral and Kraljicina plaza - this was opposed by the management
of the Budvanska rivijera hotel company, which owns the hotels. People who
owned the land or had houses in Sveti Stefan [15th century fishing village
built on an island which was turned into a deluxe resort in 1950s] now want
their share of ownership. The association for the return and protection of
private property has sent a letter to the French firm calling on it to
cancel the contract, as otherwise, the association threatens, it will be
'forced to obstruct with various rallies the normal functioning of the
hotel, which will inflict huge damage on the company's reputation'. The
association has already started its campaign by opening an Internet site to
inform potential foreign investors not to invest in Montenegro until
property disputes between former owners and current users of the property
nationalized after WWII have been resolved. Montenegrin Deputy Minister of
Tourism Dragan Ivancevic has told 'Pobjeda' that 'the contract with Akor
means an improvement for Sveti Stefan and Milocer hotels, with property
rights being preserved and only the management structure being
changed'...Branko Vujovic, has explained that contracting out the management
of these hotels to another company does not put at risk the property rights
of their owners, describing their reactions as misplaced since the deal
would only increase the value of their shares of equity. Nebojsa Medojevic,
a member of the group of 17 independent economists, has said that the
government body - the Privatization Council - has suspended the lawful
tourist organizations and has not been in a position to sign any deal since
the Budvanska Rivijera Hotel Company owns the hotels. Medojevic described
this as only the beginning of yet another illegal deal by the government
that would result in a scandal and that this was merely another case of
privatization through the back door. The deal with the French, which
threatens to flare into a new scandal, is seen by some as a desire by
certain government groups to steal from the powerful Budva lobby the best
part of the spoils which was returning a healthy profit. There is an obvious
political dimension to this case, with the so-called Budva faction losing
its positions within the governing structures. The Privatization Council,
instead of abiding by the law, acts upon government instructions by
transforming the state into a private institution,' Medojevic said, hinting
at the Budva lobby led by the deputy chairman of the [President
Djukanovic's] Democratic Party of Socialists, and the chairman of the
Budvanska Rivijera executive board, Svetozar Marovic, who is losing his
influence and power with the latest developments. Sections of the public
bent on criticism have described the events as a struggle between the Budva
and Podgorica factions within the top echelons of the government over
redistribution of the state-owned capital." (BiH press news agency, Aug. 18)
V.I.P. ANALYSIS OF DUAL-CURRENCY SYSTEM
***"Even though little time has passed since the introduction of a
dual-currency system in Montenegro (in November last year) in order for us
to be able to reliably evaluate the effectiveness of that solution, the
first results are contradictory. Adverse effects in the production sector
accompany clearly favorable effects in the monetary sector. The
methodological problem of isolating the effects of introducing the
dual-currency system from other events that have undoubtedly affected
economic processes - makes the reliability of the conclusions relative. In
other words, it is still not possible to detach the effects of the monetary
reform from the effects of the growing political risks. These two sets of
factors operate in the opposite directions. The monetary reform has a
stabilizing effect and stimulates economic activity and the income of the
citizens, companies and the state. On the other hand, the extremely high
political instability is inhibiting economic activity and the use of
profits. Only the key effects of the official dollarization of Montenegro's
monetary system will be analyzed in the following text.
1. Improvements in the monetary sector: Increased supply of money and loans
The increased supply of money is probably the most important short-term
effect of the introduction of the dual-currency system (official
dollarization) in Montenegro. In about half a year the amount of money in
company accounts with the Office for Settlements and Payments (ZOP) has
increased from DM17.8 million to DM42.6 million. The total M1 in the
accounts reached about DM88 million by the end of May. While the M1 in
D-marks has increased, the nominal and real amount of dinars has dropped
rapidly - from 920 million dinars in early November 1999 to 170 million
dinars in early June 2000 Apparently, the population is getting rid of
dinars much more slowly than the companies. The total amount of dinars in
banknotes has fallen to about 12.20 million dinars. The rise in the DM M1
has not been accompanied by the same rise in the loan supply...Obviously the
credit multiplication mechanism in the Montenegrin banking system is not yet
producing effects. This is the consequence of both the weaknesses of the
banking system itself and of the monetary aggregate structure. Even though
the M2 figures are still not reliable, it is certain that private savings
are still not returning to the banking system, which means that the citizens
do not yet trust the banking system. The experience with monetary reform in
Bosnia suggests that it will take a lot of time and that the political risks
will have to be reduced to a tolerable level for the citizens to start
trusting banks again. Another group of factors slowing down credit
multiplication has to do with the regulation of the banking system. A
temporary regulation restricts banks to extending DM loans covered by their
own monetary resources or by deposits of corresponding maturity until new
banking regulations are enforced. These restrictions will probably be
inevitable until the banking system becomes stable and until savings start
returning to financial institutions. The conclusion reached by analysts (V.
Vukotic, Ekonomist, Vol LII, No 3.2000., p. 25) that the investment climate
is improving and that the credit demand is rising is encouraging. Another
important conclusion by Vukotic is that foreign companies are increasingly
interested in investing in Montenegro.
2. Deterioration in the production sector
One anticipated effect of the rise in the supply of money and credit was the
rise in the level of activity in the production sector. This change has not
yet taken place in Montenegro. The results of reconstruction in the
production sector are not satisfactory. The real level of GDP in June 2000
was even lower than in June 1999. Montenegrin analysts estimate that a
strong recovery of the production should be sector expected to result from
both the transitions to the Euro currency and from a relative normalization
of the political situation. They have also offered a possible explanation
for the fact that the production sector is not recovering: the break in
trade with Serbia has resulted in a rise in costs as the less expensive
products from Serbia have had to be replaced world price imports from the
rest of the world. Even though the effects of the substitution of the supply
markets have not yet been measured, it can be concluded by analogy that this
estimate is reliable. A similar thing happened in the economy of Republika
Srpska (RS), Bosnia, after Serbia imposed a trade embargo on it. Of course,
the substitution of the import markets is not the only cause of the
unfavorable trends in the production sector. In addition to this,
undoubtedly important factor, there are also other causes that can be
jointly designated as the low efficiency of the production sector in
Montenegro. Most companies, especially the large ones, have not yet been
restructured. One of the unfavorable effects of the monetary reform is that
it has revealed the inefficiency of the production sector in the short term.
Unless macroeconomic reforms are accompanied by appropriate micropolicies
for restructuring the production and financial sectors, the results will be
unfavorable in the sense of a degradation of the production sector in the
first step and another destabilization of the monetary sector in the next.
3. The rise in unemployment and wages
The unemployment rate in Montenegro is rising rapidly. The rapid rise in
unemployment (much more rapid than the decline in employment) is to be
attributed mainly to the inflow of refugees from Kosovo and immigrants from
Serbia. In a sense, this is comforting because a relative stabilization of
unemployment should be expected when this population is registered as
unemployed. Wages are rising along with unemployment.
4. Inflation
One of the reasons for introducing a dual-currency system in Montenegro was
the establishment of price stability. Montenegrin analysts have concluded
that the results may be considered disappointing despite evidence of a lower
inflation rate than before and some signs of stabilization in June 2000. The
year 1999 ended with very high price rises in dinars (17 percent, 22 percent
and 23 percent respectively in October, November and December). Since
January, when the full euro-ization (or dollarization) of prices may be said
to have taken place, prices in D-marks have not stopped rising: in January
prices rose by 5 percent, in February by 1.1 percent and in March by 1.8
percent. Such monthly figures give to an average 36-percent annualized
inflation rate for the first quarter. In the second quarter, inflation stood
at 1.8 percent, 3.1 percent and -0.1 percent in April, May and June
respectively; on average, this makes a 20 percent annualized rate, still
very much by European standards. It could be said that the inflation trend
is declining, with a bright end of total price stabilization in June 2000.
However, a detailed analysis of the June performance shows that it is mainly
due to the seasonal drop in the prices of agricultural products (which
account for a large part of the consumer basket), and it is not granted that
stabilization is long lasting. At the end of the first half-year, prices in
D-marks were 13 percent higher than in December 1999. The second part of
this issue proposes an analysis of why there may still be inflation in DM
prices, and why DM prices in Montenegro may remain twice as high as Serbian
dinar prices converted into DM at the market exchange rate." (V.I.P. Weekly
Economic Bulletin, Aug. 24)
