S E R B I A W A T C H # 142- August 30, 2000

Serbia Watch, a bulletin reporting civil society, political and economic

developments on Serbia, is issued by the Open Society Institute (Washington office-John Fox, director). Please communicate any questions, comments

or requests to receive Serbia Watch to Kristine Powers (researcher) at

202-496-2401 or kpowers@osi-dc.org

"[Slobodan Milosevic], master of consuming and reproducing chaos...At the

end he must be destroyed, most people are against him, and they will get

him...He will never go in peace."

Ivan Stambolic, former president of Serbia

From interview broadcast in Montenegro, quoted by the London Sunday Times, August 27 -- Podgorica

"After Stambolic's disappearance...Serbia has gone deeply into dangerous

violence and torture. When darkness begins to swallow people and police keep

detaining them...only because they are political opponents of the regime, we

all have reasons to fear and stand against this...This government's

trademark is repression and it has shown readiness to go to any length in

cracking down on opponents... When innocent people disappear without trace

and the government keeps this from the public, only two conclusions are

possible - either it is directly involved, or it is protecting the one who

has a finger in the abduction."

Statement, Democratic Alternative

Quoted by Associated Press, August 26 -- Belgrade

"Now is an excellent time to intimidate opposition leaders who are thinking

of campaigning more openly...Having seen what's happened to Stambolic,

they'll think twice now."

Unnamed Western source

Quoted by Sunday Times, August 27 -- London

"I am afraid that we are generally in a situation of pathologic

helplessness, convinced that the regime may do with us whatever he pleases.

That is why every public sign of revolt is important, and there may even be

a strong personal motive to do that. Namely, no one knows who's next."

Zarko Trebjesanin, Belgrade University professor

Quoted by Media Center, August 28 -- Belgrade

"Using the court case against the journalist Miroslav Filipovic as a

pretext, [Natasa] Kandic acted as an alleged human-rights activist, even as

a leader in the field, thereby abusing not only the law and humanitarian

principles but also the truth, by extending support precisely to those who

have committed crimes and who are still committing evil deeds...Accusing the

defenders and forgetting or failing to mention real criminals and

terrorists, makes for an additional crime. A crime against mankind and

homeland. Against law and humanity. And against many other things. An

unavoidable part of responsibility for this belongs with those who are not

preventing it."

statement, Joint Chiefs of Staff of the Yugoslav Armed Forces

published in Danas, August 17 -- Belgrade

"Gentlemen of the General Staff, I have no dilemma as to whom you regard

criminals, terrorists and spies. In present-day Serbia, the regime suspects

all citizens, including minors and children, of being terrorists. When

someone dares raise the issue of the Yugoslav Army's responsibility, you

reply to them by a trial in secrecy. I belong to those people who will not

keep their mouth shut, not even at the price of your trial. I will not keep

silent about the horror you generals arranged for young conscripts in

Kosovo. I will also not keep silent about the atrocities committed against

civilians, which I saw in Kosovo.

Natasa Kandic, Director, Humanitarian Law Center

letter to Yugoslav National Army general staff, August 21 - Belgrade

"She...accuse[s] the Yugoslav Army -- only and exclusively because it

represents the symbol of state integrity and life together of all the

peoples in our fatherland - of alleged mass crimes against civilians during

the civil war in Bosnia and Kosovo."

Tanjug state press agency

Quoted by Politika state daily, August 23 -- Belgrade

IN THIS SERBIA WATCH:

-- Serbia's ex-president abducted?

-- Regime daily: Stambolic "probably kidnapped"

-- Crackdown on OTPOR intensifies

-- Politika: U.S. training OTPOR as spies

-- State TV: CESID works for NATO

-- VJ to press charges against Natasa Kandic

-- Regime murdered officials who laundered billions?

-- Mira runs for parliament

-- DSS: on fraud in Kosovo refugee vote

-- Regime's "thorough preparations" for fraud

-- SPO files separate parliamentary list

-- SPO split on opposition unity deepens

-- Kostunica: DOS-SPO partnership at local level?

-- Poll: DOS 34%, SPS-JUL 22%, SPO 7%

-- Albright: elections unfair but "opposition can do well"

-- Russia, FRY sign free trade agreement

-- Ivanov: need democratic elections - with int'l observers

-- Austria, COE chief: Lift oil embargo before elections

-- State Dept. Details VJ "harassment" of U.S. aid ship

POLITICAL PARTIES, MOVEMENTS, LEADERS:

Serbia's Opposition

DA - Democratic Alternative (Nebojsa Covic, president)

DAN - Coalition of DA, DC, ND

DC - Democratic Center (Dragoijub Micunovic, president)

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

DOS - Democratic Opposition of Serbia (18 parties united for elections)

DS - Democratic Party (Zoran Djindjic, president)

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

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

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

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

ND - New Democracy (Dusan Mihajlovic, president)

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

OTPOR - Youth movement "Resistance"

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

Reform Democratic Party of Vojvodina (Mile Isakov, chairman)

Sandzak Coalition (Rasim Ljajic, chairman)

SD - Social Democracy (Vuk Obradovic, president)

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

SDU - Social Democratic Union (Zarko Korac, president)

SPO - Serbian Renewal Party (Vuk Draskovic, president)

SZP - Alliance for Change (Zoran Djindjic, coordinator)

Vojvodina Coalition (Dragan Veselinov, president)

SNV -Serb National Council of Kosovo (Metropolitan Artemije, chairman)

FRY/Serbia Ruling Coalition

SPS - Serbian Socialist Party (Slobodan Milosevic, FRY President)

SRS - Serbian Radical Party (Vojislav Seselj, Serbia's Deputy PM)

JUL - Yugoslav United Left (Mira Markovic, president)

SNP- Socialist People's Party of Montenegro (Momir Bulatovic, FRY PM)

Other

SSJ - Party of Serbian Unity (Borislav Pelevic, president; founder: Arkan)

VJ - Yugoslav National Army (Gen. Nebojsa Pavkovic, chief of staff)

FRY - Federal Republic of Yugoslavia

I. STAMBOLIC DISAPPEARANCE

SERBIA'S EX-PRESIDENT ABDUCTED?

***"The family of Ivan Stambolic, a former Serbian president and arch-foe of

Slobodan Milosevic, said Sunday they were without news of his whereabouts,

more than 48 hours after he was reported missing...Stambolic, Serbia's

communist president until 1987, was reported missing early Friday after

failing to return from a morning jog in a wood on the outskirts of Belgrade,

and a police search using...dogs has so far failed to yield any clues. He

was last seen by a guard at a car park, 'at the same time as a white van

drove by,' his family's lawyer Nikola Barovic said, adding that 'after that,

Stambolic was not there any more.' Police have so far not commented on the

case, and Barovic said the official silence surrounding the incident 'shows

that the disappearance is a political act.' Stambolic was a one-time mentor

to Milosevic, but he was pushed out from Serbia's political life in 1987 by

his former close friend, who criticized him for a moderate policy towards

the southern Serbian province of Kosovo. Until 1997 he headed the Yugoslav

Bank for International Cooperation, but was again dismissed. As an activist

of non-governmental European Movement in Serbia and the Forum for Ethnic

Relations, Stambolic has sometimes openly criticized his former protege,

blaming him for a worsening situation in the country. He also supported the

1996-97 anti-Milosevic protests in Serbia. Stambolic was recently mentioned

as a possible presidential candidate of the Democratic opposition of Serbia

(DOS), grouping some 15 opposition parties, to run against Milosevic in the

September 24 polls." (Agence France Presse, Aug. 27) "Stambolic was last

seen in public on Wednesday at the stadium of the Red Star football team,

where he was watching the club's match against Dinamo Kiev. He was to leave

this weekend for Guca, in central Serbia, for the annual festival of

trumpeters from all over Serbia. At the weekend, the independent media gave

this case great publicity, carrying it as the top story. The state-run

electronic and print media, however, made no mention of Stambolic's

disappearance all weekend. This served a larger number of opposition

parties, which came out with statements regarding Stambolic's disappearance,

as an additional reason to suspect that the state or someone close to it was

standing behind everything." (V.I.P. Daily News Report, Aug. 28)

***"After a period of public withdrawal, Stambolic recently emerged as a

fierce critic of the Milosevic family and regime, giving interviews to

Serbian and Montenegrin media as Sept. 24 elections near. Stambolic's

disappearance appears to reflect a pattern of violence against those once

close to the Milosevic family who have since broken ranks and spoken out

against the regime...Stambolic was most likely kidnapped, according to a

security guard who saw him last. 'A security guard at a restaurant saw Ivan

resting in the parking lot. A white van stopped briefly in front of the

restaurant and when it moved on, the guard couldn't see Ivan anymore,' said

Stambolic's lawyer, Nikola Barovic. Police combed the woods near the

restaurant, where Stambolic disappeared, but have made no statements on the

progress of the investigation. Stambolic's wife, Kaca, said she did not

believe her husband's kidnapping had a political motive, but some opposition

leaders and Stambolic's lawyer are pointing the finger at the regime.

'Stambolic was president of Serbia, an important former political figure who

disappeared in the middle of an election campaign, yet state-media and

government officials haven't even mentioned his disappearance. The message

is that this was a political act,' said Barovic. Serbia's largest opposition

party, the Serbian Renewal Movement, demanded Stambolic's immediate release

and referred to the kidnapping as a 'terrorist act.'...A funeral can draw a

large crowd, which in itself becomes a political event. When someone goes

missing, there is an added element of fear. Though Stambolic was not active

in opposition politics, he did maintain contacts with some opposition

leaders. His recent interviews were a reminder to the Yugoslav public of

President Milosevic's personal and political failings. As Milosevic's mentor

and former best friend, Stambolic spoke with singular authority about the

man who betrayed him...Opposition leaders agree nobody knows President

Milosevic as well as Stambolic. 'Stambolic knows Mr. Milosevic's soul,' says

Nebojsa Covic, a former member of Milosevic's party, now turned opposition

leader." (Christian Science Monitor, Aug. 30)

REGIME DAILY: STAMBOLIC "PROBABLY KIDNAPPED"

***"On Aug. 30 the pro-government daily Politika indirectly brought in

connection the disappearance of former Serbian president Ivan Stambolic with

his business contacts, which include companies in Republika Srpska (RS) and

Montenegro. Reporting that Stambolic has 'most probably been kidnapped',

Politika explained that he had ventured into private business dealings in

the past few years with companies from RS and Montenegro. The paper also

recalled that Stambolic was the head of a bank for international business

cooperation, Jumbes Banka, before his retirement. Politika reported that

Stambolic was supposed to travel to Guca with a director of a large RS

company on the day of his disappearance. Quoting sources close to the

Belgrade police, the paper reported that 'the intense search for Stambolic

has lasted for a three full days' but that, unofficially, 'it has yielded no

results.' A report identical to that published in Politika was also printed

by its sister publication Politika Ekspres, while Vecernje Novosti, another

Belgrade-based pro-government daily, published a similar article. Although

Stambolic disappeared on the morning of Aug. 25, the pro-government and

state-owned media maintained a veil of silence about his disappearance until

Aug 30." (BETA news agency, Aug. 31)

OPPOSITION: "DANGEROUS POLITICAL DEVELOPMENT"

***"Serbian opposition parties on Saturday expressed concern at the

disappearance of former Serbian President Ivan Stambolic, Belgrade media

reported. Democratic Party (DS) leader Zoran Djindjic, chief of election

staff of the Democratic Opposition of Serbia (DOS), said Stambolic's

disappearance 'speaks volumes about the country we live in, the current

situation we find ourselves in and the stability of the legal and political

system'. He voiced hope that this was 'a money extortion scheme usual in a

criminal world' and 'not a political affair, as that would get our country

still deeper in crisis and instability'...The Democratic Alternative (DA)

warned that, with the unexplained disappearance of Ivan Stambolic and the

arrest of Belgrade's Cukarica District Mayor Zoran Alimpic and six other

Democratic Party (DS) activists in Belgrade's Sopot suburb on Friday, Serbia

had sailed into dangerous waters of violence and torture. The party

condemned the state media in Serbia for keeping quiet about Stambolic's

disappearance, saying that in this way 'the government has accused itself of

involvement' in the affair..The Civic Alliance of Serbia (GSS) warned that

the disappearance of 'Milosevic's predecessor and opponent Ivan Stambolic at

a time of the start of the election race is a highly dangerous political

development'. The Social Democratic Union (SDU) demanded most strongly that

'government bodies find and release Ivan Stambolic. 'The handwriting of his

abduction is regrettably well known and points to circles within the regime

itself', the SDU said. OTPOR activist Ivan Marovic said the movement was

urging government bodies to do all in their power to find Stambolic and

restore him to his family. Marovic said that, in case the competent bodies

do not do their all to find the former first man in Serbia, 'I am afraid

that we shall have to think that they are involved in Stambolic's

disappearance.' " (V.I.P. Daily News Report, Aug. 28)

Otpor called on Milosevic to get personally involved in

finding...Stambolic... 'not only because it is Milosevic's duty but also

because Stambolic is his friend and associate.' " (V.I.P. Daily News Report,

Aug. 30)

REGIME AFRAID OF STAMBOLIC CANDIDACY?

***"Vuk Draskovic said in a statement for Nis TV on Monday evening that

Stambolic 'was removed to prevent him from running for Yugoslav

president...I am convinced that Stambolic was kidnapped because Milosevic's

analytical service read the article by excellent analyst Dusan Janjic in the

Belgrade press in which he said the two opposition candidates are excellent

and proposed another presidential candidate Ivan Stambolic,' Draskovic said.

SPO spokesman Ivan Kovacevic said on Tuesday that the abduction of Ivan

Stambolic took place 'at a moment when the collection of signatures for his

presidential candidacy' for the September 24 elections had already begun in

Serbia. Kovacevic said that 'Stambolic would divide the voters of the

Socialist Party of Serbia in two'. Belgrade journalist Aleksandar Tijanic

told the BBC on Tuesday that Ivan Stambolic's disappearance is directly

linked to the coming elections on September 24 and predicted more abductions

and arrests in the next few days. 'If I am right, there will be more people

who will disappear or will be arrested in the next few days. I think that,

if the official or powerful Serbia is behind this abduction, Stambolic is

undergoing so-called preparation to break him and get a statement from him

in which he accuses others for some kind of conspiracy and agreement with

foreigners on taking power in Serbia after the Americans or NATO forces come

here...I assume that these will be well known names and a process like this

will deafen the Serbian media sphere and the people who possibly thought

this up assessed that this will change the stand of the electorate,' Tijanic

said and added that he believes that 'the next 48 hours will bring some kind

of outcome. Either more people will disappear or someone will find Stambolic

dead somewhere,' he said." (V.I.P. Daily News Report, Aug. 30) "We most

strictly condemn the abduction of the former president of Serbia, Ivan

Stambolic, yesterday and demand his immediate release. This terrorist act,

as well as daily arrests of the activists of the Serbian Renewal Movement,

Otpor and other opposition parties, in addition to open interference of high

military and police officials in the election campaign of the ruling regime

convincingly prove that SPO was right in demanding that such elections be

boycotted." (statement, Serbian Renewal Movement, Aug. 26)

"TAUGHT HELPLESSNESS" INFLICTS SERBIA?

***"[Belgrade University professor Zarko Trebjesanin said]: 'Unfortunately,

the disappearance of Ivan Stambolic, is merely one in a series of

persecutions of political dissenters, although it is even worse in one

respect, namely the ways of persecution have changed and we have lived to

see that a person merely disappears as was once the case in Argentina or in

Chile. This is really surprising, although all of us have long raised our

threshold for shock. Another surprise is the lukewarm reaction of the

public, primarily political agents who, by definition, should react much

more sharply, precisely because Stambolic's disappearance might be opening a

new chapter in the history of local repression. This all the more since we

are talking about the former president of Serbia, an office which in most

countries implies the protection of the person who performed it even after

his terms of office had expired, for the simple reason that he, in a way,

still represents the state. If a person like that could disappear what could

we, the ordinary people, expect? Reaction is necessary because of a

phenomenon of 'taught helplessness', which has become the prevailing form of

behavior here. The phenomenon is known to psychology and experiments to

prove it have been conducted with animals. A dog in a cage is, let's say,

exposed to electric shocks, and the shocks are announced by red light

lighting up in the cage. At first, when the red light goes up the dog barks,

squeals and in time, learning his own helplessness, stops to fight and

quietly allows infliction of this pain. However, the phenomenon is about

something else when after a certain time the door to the cage is open and

the dog given the possibility to escape he would not do that but obediently

continues to take the electric shocks." (Media Center-Belgrade, Aug. 28)

II. REGIME REPRESSION

CRACKDOWN ON OTPOR INTENSIFIES

***"Ivan Marovic, an activist in the Otpor (Resistance) movement told a

press conference that the police are intensifying their crackdown on Otpor

during Otpor's He's finished campaign...As part of their He's Finished

Campaign, Otpor activists are calling on citizens to vote in the federal

elections in large numbers and thus ensure the removal of Slobodan Milosevic

from power. Marovic said that in August the police brought in 122 Otpor

activists for questioning and that the proof of the success of the He's

Finished campaign was the amount of time dedicated to demonizing Otpor on

state television." (V.I.P. Daily News Report, Aug. 30)

***"The police in Zemun arrested this evening 10 Resistance Otpor movement

activists in Zemun, who are still held in detention, Beta has been told by

OTPOR. The police arrested activists Igor and Vladimir Novicki, Zdravko

Stankovic, Zeljko Ciric, Jelena Stevanovic, Dusan Kerecki, Vanja Petrovic,

Branko Bobanovic, Milana Marjanovic and Tuhin Ramadan while they were

handing out invitations for a film promotion as part of the Resistance

campaign for the elections. Resistance says that more activists took part in

this action but they 'managed to run off', and that an OTPOR lawyer is

expected to visit the arrested activists in the police station in Zemun."

(BETA news agency, Aug. 24) "The police throughout Serbia continued to take

in for questioning activists of the OTPOR movement and other opposition

parties. Subotica police took in for questioning eight Otpor activists, who

were released after several hour questioning, and after they had taken off

T-shirts with the movement's signs. Two juveniles were among the those

detained by police. The Belgrade police confiscated a large quantity of

Otpor propaganda material from four movement's activists, who were kept in

the police station for four hours. Member of the Democratic Party Nis

chapter committee, Marko Dimitrijevic, was taken in for questioning, that

lasted hour and a half, after which he was released. The police took

Dimitrijevic from his apartment and cuffed him without any explanation or

warrant. He did not receive any call for questioning. The Nis Mayor and the

local Democratic Party chapter head, Zoran Zivkovic, told BETA he learned in

the police station that Dimitrijevic was taken in for questioning over 'his

potential trip to Belgrade to attend the Red Star Belgrade - Dinamo Kiev

soccer game.' The Otpor activists in Novi Sad, Nenad Seguljev and Zoran

Popovic, were taken in for questioning in the night between Aug. 22, and

Aug. 23, while they were trying to write graffiti. They were released after

two-hour questioning." (BETA news agency, Aug. 24) "Serbian police continued

to arrest activists of the Otpor movement between Aug. 25 and Aug. 27. On

Aug. 26, eight Otpor members were arrested in Belgrade, Jagodina, and Guca

near Cacak, and released after several hours of interrogation. In Belgrade,

husband and wife Slobodan and Rada Drulovic, both 65, were arrested. Police

opened files on them and impounded all Otpor material in their possession.

Four Otpor members were arrested in Kragujevac on Aug. 27 for putting up

posters. Activists of the Social Democracy party, Sasa Nastasic and Ruzica

Karajlic, both residents of Rakovica near Belgrade, were arrested late on

Aug. 27 while collecting signatures for the presidential candidacy of

Vojislav Kostunica. Besides them, two members of the Democratic Party were

arrested. Social Democracy lawyers immediately left for the local police

station, where they were not allowed to contact the detained people or given

any information on the reason for their arrest, the party said." (BETA news

agency, Aug. 28)

POLITIKA: U.S. TRAINING OTPOR AS SPIES

***"The Belgrade daily Politika on Saturday accused the US of planning the

'political training' of members of the Otpor movement which would be

conducted by 'experienced spies' with the aim of influencing the public

opinion in the FRY pending the September 24 elections. 'At the US embassies

in Sofia and Bucharest, to begin on Monday are 'thoroughly planned special

ten-day courses that will be attended by two groups, each consisting of 40

members of the Otpor movement from a number of towns in Serbia', the

newspaper writes. Politika claims that the courses presented as advanced

training in the spheres of the public opinion and the creation of media

images, 'are actually nothing other than a short training course of an

unequivocally political nature, financed by the American intelligence

service'. The courses, this daily writes, were initiated, during his Balkan

tour, by CIA director George Tennet, and they will be conducted by 16

'experienced propagandists and spies which are known to have been included

in the dramatic turmoil on the territory of the Socialist Federal Republic

of Yugoslavia ever since its bloody turn... and that they had undoubtedly

given their contribution to and placed their stamp on them.' The envisaged

training, 'which has so far cost $1 million, bears strong anti-Serb and

anti-Yugoslav overtones and represents yet another attempt by the US to bear

influence on the political public opinion in the FRY prior to the elections

scheduled for September 24' , writes Politika. One of the preconditions for

including Otpor members in the free-of-charge 'political training for

undermining the regime in the FRY' is, according to the Belgrade daily,

'readiness of the organization members, in the meantime, to collect and give

away...in Sofia and Bucharest, or actually to sell all available information

on the political events in our country...especially about the activities and

morale of the Yugoslav Army.' " (V.I.P. Daily News Report, Aug. 28)

STATE TV: CESID WORKS FOR NATO

***"Radio and Television of Serbia (RTS) on Friday accused the Belgrade

non-governmental organization the Center for Free Elections and Democracy

(CeSID) of being tasked by the NATO countries to proclaim in advance the

elections in Serbia irregular, reports Saturday's Politika. 'According to

the idea of the NATO countries' governments, CeSID is to represent some kind

of OSCE in Serbia which would proclaim in advance the elections in Serbia

irregular, thus creating an alibi for the NATO countries before their public

for the failure of their opposition NATO proteges', claims RTS...'CeSID

presents itself as a non-governmental organization, but it is in fact an

organization formed and financed by the NATO countries' governments. The

main financier is the notorious George Soros and his crisis group whose

mouthpieces are the even more notorious Louise Arbour and the biggest war

criminal Wesley Clark', claims RTS and adds that ' these are the forces

which have been endeavoring to break up Serbia and Yugoslavia for years'.

'For this reason, CeSID is in the direct function of the endeavors to

undermine our state at any cost. Standing behind this organization are

people who, a few days ago, brutally snatched (the mine in Kosovo) Trepca

and who, with the help of this organization, want to create conditions to

continue their snatching and looting in Serbia as well', the commentary

says. The RTS commentary also claims that, due to such goals 'certain

leading figures (of CeSID) have received considerable amounts of dollars for

betraying their country'. In a statement to Srna on Saturday, CeSID

spokesman Marko Blagojevic rejected RTS's accusation that this organization

intended to proclaim the upcoming elections irregular on NATO countries'

instructions. He expressed the hope that this accusation would not 'result

in some kind of moves by the authorities towards CeSID'. Blagojevic also

said that CeSID had a plan in case the authorities did not grant this

organization a monitoring status, as they had not done at the previous

elections in Serbia either. He did not want to specify what this meant, so

that the plan would not be 'jeopardized by the regime.' " (V.I.P. Daily News

Report, Aug. 28)

VJ TO PRESS CHARGES AGAINST NATASA KANDIC

***"Yugoslav Army (VJ) spokesman Col. Svetozar Radisic told a press

conference on Tuesday that the VJ would sue Natasa Kandic, the executive

director of the Humanitarian Law Center, for 'untruthful statements' made

recently in an interview with the Belgrade daily Danas [ titled 'I Do Not

Want to be Silent about Horror']...In this interview, Kandic linked VJ

troops to crimes against Albanians in Kosovo. Col. Radisic said that it was

not the VJ's style to engage in public debates about the statements in

question and that that was the reason why the VJ had decided to take this

matter to court." (V.I.P. Daily News Report, Aug. 30) "The Army today wrote

to Danas, citing the Public Information Act and saying that Kandic would be

required to prove her allegations in court." (Radio B2-92, Aug. 24)

REGIME BLASTS "SOROS MERCENARY" KANDIC

***" 'The financially powerful like George Soros and his mercenaries such as

the director of the Humanitarian Right Fund layer Natasa Kandic still think

they can rearrange the world according to their desires and criteria,' a

Tanjug comment carried by Politika says on Wednesday: 'The unrealistic

ambition is being especially fanned by some of our bribed media. Recently,

in Belgrade daily Danas (which is also partly funded by the businessman of

Hungarian origin), Kandic, under precise instructions from her financier

George Soros, contributed, however modestly, to the campaign against the

FRY, in which she used the usual impotent form to accuse the Yugoslav Army

(VJ) - only and exclusively because it represents the symbol of state

integrity and life together of all the peoples in our fatherland - of

alleged mass crimes against civilians during the civil war in Bosnia and

Kosovo. Even though she knows that its members did not could they commit

those crimes? Despite that, Kandic still accuses the Yugoslav Army,

'overlooking' the fact that the only true victims of violence, terror and

daily brutal executions in the southern province are the Serbs and the small

non-Albanian population. Mrs. Kandic does that because she set a high

foreign currency price for her 'humanitarian' efforts and for every false

accusation against the army and legal leadership of the state it belongs to

she gets a fee of 5,000 German marks. Can anyone be surprised by the

anti-Serb statements of the hypocritical and selective 'protectors of

humanity and rights' who, in 1996 in Vukovar, accused the Serbs of

committing crimes against Croatian civilians and of allegedly hiding mass

graves in eastern Slavonia which, we now know, never existed. Perhaps those

statements can surprise the naïve and uninformed but certainly not the

journalists who were expelled from the Federal Republic of Yugoslavia last

year whether because of false reporting on events on our territory or

because they were spying in the interest of the governments of the states

that sent them. The fact is that all the expelled spies cited one source of

information - Natasa Kandic - is the loudest testimony of the false humanity

of Soros' mercenary.' " (V.I.P. Daily News Report, Aug. 23)

KANDIC: "I DO NOT WANT TO BE SILENT ABOUT HORROR"

***"Director of the Belgrade-based Humanitarian Law Fund (FHP) Natasa Kandic

sent a letter to the General Staff of the Yugoslav Army (VJ) on 21

August...In her letter she responds to the statement of the Information

Service of the VJ General Staff, published in the daily Danas on 17

August...'I will also not keep silent about the atrocities committed against

civilians, which I saw in Kosovo. I saw Albanian villages encircled by tanks

with my own eyes, I heard grenades and saw thousands and thousands of people

leaving their homes with plastic bags in their hands, escorted by the police

of army, because they were told that Kosovo was not their homeland. I met

columns of civilians on the roads. Someone would dare say to me that the

army had shelled the village, ordered them to go to Albania and that on

their way out they had seen the police rushing in, looting and burning their

property. Gentlemen of the General Staff, you bear a grudge against me for

not praising the Yugoslav Army. Do you really imagine that citizens of

Serbia and Montenegro think that in Kosovo or Serbia you really fought an

enemy in flesh that you call NATO criminals and that you won. Gentlemen,

each and every victim of the NATO attacks is your victim as well. Gentlemen

at the General Staff, you are accusing me of hiding crimes committed by

'Albanian terrorists' since 1 January 1998 to date. Which name do you use

for those on 'our' side who committed a crime, are they, too, 'terrorists'

to you or are they national defenders? I am asking you what you have done to

clarify the fate of Serbs, Romas, Bosniacs or Montenegrins who disappeared

in the period while you were in control of the territory of Kosovo. Both

back then and after the arrival of international forces in Kosovo, for you

they have been only numbers, in line with the principle the more killed and

abducted the better for the Serbian side. You do not like to meet in person

the parents of killed and missing soldiers. You took their children where

you did not take yours, you are decorating them for bravery while they

demand to know where their graves are. I am staying on my ground: to defend

the right to life, the right to the free use of one's mother tongue, the

right to the freedom of movement, the right to publicly criticize those in p

ower and to support every court which punishes the perpetrators of war

crimes and those who issued orders for crimes against humanity, regardless

of their ethnic origin. A crime is a crime.' " (letter to Yugoslav army

general staff, Human itarian Law Center, Aug. 21)

REGIME MURDERED OFFICIALS WHO LAUNDERED BILLIONS OVERSEAS?

***"Two senior figures in the regime of Slobodan Milosevic who were shot

dead earlier this year knew where billions of dollars of bank savings had

been hidden during the collapse of Yugoslavia, according to western

intelligence officials. The sources believe that Zika Petrovic, the head of

Yugoslav Airlines (JAT), and Pavle Bulatovic, the defence minister, were

assassinated - perhaps on Milosevic's orders - 'because they knew too much'.

Reports being compiled in western capitals, including Washington, suggest

that the savings of millions of now penniless Yugoslavs may have been

laundered through private offshore accounts in Cyprus, Lebanon, South Africa

and China. Petrovic, who was gunned down in April while walking his dog near

Belgrade's central police station, was an old friend of the Milosevics. He

grew up with the future president in the industrial town of Pozarevac and

was a faithful member of the Yugoslav United Left communist party led by

Mira Markovic, Milosevic's wife. Intelligence officials who have interviewed

former JAT pilots have learnt that Petrovic personally oversaw the loading

of suitcases stashed with cash onto flights. Bulatovic, a quiet but powerful

force in Milosevic's Socialist party, became defence minister in March 1993

and acquired an intimate knowledge of the Yugoslav army's logistics

channels, which, the same sources believe, had previously been used for

drug-running. He also had access to the military's contacts with former

eastern bloc army officers. Intelligence officials say such connections

ensured that air routes into Russia, Belarus and other countries friendly to

Yugoslavia were available to transfer cash. However, none of Bulatovic's

powerful contacts could prevent him from being slain in a hail of bullets in

a Belgrade restaurant in February. Ten years ago Yugoslav investors held

savings valued at roughly $12 billion (£8 billion) in a handful of

state-owned banks. At the same time the central bank had foreign reserves

worth nearly $10 billion. As war broke out in Croatia and Bosnia in the

early 1990s and UN sanctions began to bite, Milosevic, a former banker,

froze all private savings accounts and commandeered the central reserves.

Although some money was left in Croatia, Slovenia, Bosnia and Macedonia -

all of which broke away from Yugoslavia - the rest has disappeared over the

past decade. While the Milosevic regime spent much on the war effort and on

shoring up the police states that the rump Yugoslavia became, financial

analysts estimate that billions of dollars in cash were transported abroad.

Investigators at the US Treasury's Office of Foreign Assets Control believe

as much as $4 billion (£2.7 billion) could have ended up in Cyprus alone.

More than 500 Yugoslav companies, mostly in the 'export-import' sector, were

set up there during the early 1990s. Western investigators trying to track

down Milosevic's millions believe some of these were fronts for laundering.

American officials are monitoring the case of one Yugoslav citizen who

claims to have had his Beogradska bank account hijacked by money launderers.

Predrag Djordjevic attempted to ship cotton into Yugoslavia in 1994 with a

United Nations permit. His Bulgarian business partner deposited about

£180,000 in Deutschmarks into Djordjevic's company account in Belgrade, and

the money was supposed to be transferred to the Beogradska bank in Cyprus.

The transfer was mysteriously blocked, however. After a protracted legal

wrangle with the Beogradska, Djordjevic found his money had been moved into

an account with another Cypriot bank, the Popular. The account was

controlled by a company he had never heard of. When the accounts were

examined in court, Djordjevic discovered that about £300,000 had been

transferred to a Popular account bearing the same number as his account with

the Beogradska. Djordjevic, who finally got his money far too late to save

his cotton deal, plans to press charges against the Popular bank, which

denies any impropriety. The Serb, who has been left almost destitute by the

lengthy legal battle, also intends to take Cyprus to the European Court of

Human Rights. He maintains that the Cypriot ruling establishment is in

cahoots with the Milosevic regime. 'How many other cases are there out

there?' he asked. 'The state, the police, they all know about this. Even the

policeman in charge of fighting money laundering here advised me to leave

the country.' Djordjevic's case may be one of the first clues to a financial

web that has sustained the Milosevic government through a decade of

sanctions. A European Union investigation into his assets, launched during

the Kosovo crisis, yielded little, according to insiders. In Washington, the

Office of Foreign Assets Control has maintained a wall of silence." (Sunday

Times-London, Aug. 23)

LESKOVAC NGO ERASED FROM REGISTER

***"The non-governmental organization Human Rights Protection Committee has

been stricken from the register of social organizations and citizens'

associations reported the independent media at the weekend. The explanation

for this move, signed by the head of police in Leskovac, southern Serbia,

says that the decision was taken because 'criminal court proceedings were

being conducted' against the Committee's chairman, Dobrosav Nesic, 'for

violating the law on hard currency business operations'. The second given

reason are 'political activities by some of the Committee's members, which

is not in accordance with the provisions of this non-governmental

organization.' "(V.I.P. Daily News Report, Aug. 28)

REGIME BANS RE-BROADCASTING OF TV CRNA GORA PROGRAMS

***"Following the Yugoslav Information "Ministry's ban on broadcasting news

programs of Montenegrin state-run TV, Croatian TV, Sarajevo-based OBN TV

station, and Hungarian Duna TV, all five cable networks in Novi Sad have

stopped broadcasting news from the TV stations. The ministry issued the ban

based on the Serbian Information Law's Article 27, which bans local media

from 'partially or in full broadcast live or re-running radio and TV

political propaganda programs' of foreign radio and TV stations. The cable

network covers is subscribed by some 50,000 households in Novi Sad, that is

some 200,000 can view the cable programs. The Independent Journalists'

Association of Serbia said that the introduction of such a ban at the

beginning of the election campaign is aimed at 'depriving the people of Novi

Sad of all information on political events.' " (BETA news agency, Aug. 31)

ANEM PROTESTS ARRESTS, RADIO JAMMING

***"The Association of Independent Electronic Media protests against

yesterday's arrest of journalist Zaharije Trnavcevic as the regime continues

to repress the independent media in the run-up to the September elections.

At about 6:00 p.m. yesterday, police arrested journalist Zaharije

Trnavcevic, a senior official of the Democratic Party and a candidate for

the Federal Parliament elections, along with the president of the Cukarica

Municipal Assembly, Zoran Alimpic, and another five officials of the party.

The arrests were made at the Tresija police checkpoint while the party

members were driving to a lecture which was to have been held on in the

village of Ducin near Sopot. Democratic Alternative president Nebojsa Covic,

who heads the united opposition's list of candidates for Cukarica, told

Radio B2-92 that the police claimed to have had warrants for the arrests

because the lecture hadn't been reported to police and because those

arrested were found with party and Otpor propaganda material. 'What was

unusual was that the police took prints of all five fingers of the arrested.

All this is creating an ugly impression of somebody pushing the police into

this election campaign, which is not part of their function,' said Covic...

The Association notes that three days earlier, police in Sombor had arrested

Danilo Sekulic, the acting director of Somborske novine, journalist Stipan

Benic and Anita Beretic, the acting director of Radio Sombor, who was struck

several times while in custody...ANEM reiterates its demand to state bodies

to respond to this and take steps to ensure that journalists and media may

work without hindrance." (statement, Association of Independent Electronic

Media/ANEM, Aug. 28)

***"The Association of Independent Electronic Media protest over the

continued campaign of jamming independent electronic media in the Serbian

provinces. The signal of NIS television NTV has been intensely disrupted in

Leskovac since August 18. NTV, an ANEM members station, has been the only

independent broadcaster whose signal can be received in the Leskovac region.

The signal jamming is intensified during news broadcasts. Slavisa Popovic,

the director of INFO Nis, which operates NTV, has told ANEM that the local

cable operator in Leskovac had also complained that the disruption had made

cable rebroadcast of the NTV program problematic. Popovic said that INFO Nis

would report the jamming to the Federal Ministry of Telecommunications and

demand that the disruptive signal be removed. ANEM also notes that jamming

of Radio Jasenica in Smederevska Palanka from August 17 and Radio Globus in

Kraljevo from August 21 continues. Both stations are members of the

Association. The Federal Ministry of Telecommunications has not responded to

complaints about this disruption. ANEM believes that the jamming of

independent broadcasters is part of a campaign of systematic repression of

the freedom of expression as the September elections approach. The

Association demands that the Federal Ministry of Telecommunications take

steps to facilitate the free operation of independent radio and television

stations in Serbia." (statement, ANEM, Aug. 28)

LESKOVAC POLICE HALT NGO BREAD DISTRIBUTION

***"The Leskovac police interrupted on Aug. 26 a humanitarian action by the

Human Rights Board in which free bread was distributed to the town's

citizens. The police came to Leskovac downtown around 9.15 a.m., and

dispersed the board's activists. Having asked the board president, Dobrosav

Nesic, to show them his ID, the police ordered the humanitarians to remove

their makeshift stand and stop the action. While delivering bread, the

activists were wearing T-shirts with a message saying 'Let's Go To The

Polls.' " (BETA news agency, Aug. 28)

SOCCER FANS PICKED UP FOR ANTI-REGIME SONGS

***"Over the last seven days, the Belgrade police have on several occasions

apprehended leaders of the Red Star Belgrade football club fans...One of the

fans requesting anonymity told our radio that in order to discipline the

most devoted fans, almost all the prominent 'fans from the north terrace'

were interrogated by the police, some of them even as late as this morning.

'Pressures on us are enormous and are coming from all sides. Everything is

being done in order to prevent us from singing anti-regime songs,' our

source said and added that this was the reason why a number of fans had not

slept home for days. The police beat Red Star fans at a match last month

when they sang a popular song telling Yugoslav President Slobodan Milosevic

to 'save Serbia by hanging himself'. Red Star Belgrade will host Dinamo Kiev

from Ukraine tonight in Belgrade in a return match in the qualifications for

the European Champions League." (Radio B2-92, Aug. 23)

INDEPENDENT MEDIA FINED 7.5 MILLION DINARS THIS YEAR

***"In the first seven months of this year, the media in Serbia have been

fined 7.5 million dinars by courts according to the Serbian Information Act,

announced Djura Vojnovic, a official of the Independent Journalists'

Association of Serbia (IJAS). During the presentation of the fourth volume

of the 'Dossier of Repression' on Aug. 29, Vojnovic said that 'repression of

the authorities against the media in Serbia increased in the past few

months' and that the Information Act 'in the past few months has become an

auxiliary means of carrying out the repression.' " (BETA news agency, Aug.

30)

III. ELECTION PREPARATIONS - REGIME

MIRA RUNS FOR PARLIAMENT

***"Mirjana Markovic, the influential wife of President Slobodan Milosevic,

will run for election in the Sept. 24 voting for the federal Parliament. Ms.

Markovic, leader of the neo-Communist Yugoslav Left Party, heads a list of

candidates from Pozarevac, the couple's hometown in central Serbia. The

English-language newsletter VIP said it was the first time Ms. Markovic had

run for Parliament since her husband rose to power in the late 1980's."

(Reuters, Aug. 26)

SPS-JUL SUBMIT 108 CANDIDATES FOR LOWER CHAMBER

"The Socialist Party of Serbia (SPS) and the Yugoslav United Left (JUL)

submitted in all 26 constituencies in the Yugoslav republic of Serbia joint

lists of candidates for the Chamber of Citizens (lower house) of the federal

parliament. The lists of the two leading parties of the ruling coalition go

under the heading SPS-JUL-Slobodan Milosevic and contain 108 candidates,

namely Yugoslav government ministers, the parties' current federal

parliament members and senior party officials, including: Ljubisa Ristic,

JUL president, Mira Markovic, JUL Directorate president, Zivadin Jovanovic,

Yugoslav foreign minister, Nikola Sainovic, Yugoslav deputy premier, Milomir

Minic, outgoing Chamber of Citizens speaker, Jovan Zebic, Yugoslav vice

premier, Cedomir Mirkovic, Yugoslav minister for international cooperation

in science and culture, Goran Matic, Yugoslav minister of information,

Slobodan Cerovic, Serbian minister of tourism, Nada Sljapic, Yugoslav

minister of development, science and the environment, Milan Beko, Yugoslav

minister of the economy, Zoran Vujovic, Yugoslav minister without portfolio,

Bratislava Morina, Yugoslav minister for refugee and humanitarian affairs."

(Tanjug state press agency, Aug. 24)

SPS-JUL SUBMIT 20 CANDIDATES FOR UPPER CHAMBER

***"SPS and JUL on Thursday submitted a joint list of candidates for

upcoming elections for the federal parliament's Chamber of Republics (upper

house), called for 24th September. Senior party officials Uros Suvakovic

(SPS) and Srdjan Smiljkovic (JUL) submitted the list of names of 20

candidates, going under the heading SPS-JUL-Slobodan Milosevic, to the

Central Electoral Commission. Young Socialists and JUL representatives also

submitted 850,000 signatures of supporters of the SPS-JUL-Slobodan Milosevic

list. Among the 20 candidates for the upper house are: Gorica Gajevic, at

present Chamber of Republics deputy Speaker, Milutin Mrkonjic, head of the

Reconstruction Directorate of the Yugoslav republic of Serbia, Milovan

Bojic, Serbian minister of health, Zeljko Simic, Serbian minister of

culture, Vlajko Stojiljkovic, Serbian minister of the interior, Ivan

Markovic, Yugoslav minister of telecommunications, Branislav Ivkovic,

Serbian minister of science and technology." (Tanjug state press agency,

Aug. 24)

***"Federal election commission yesterday held its 6th session in the

federal Parliament. This body concluded that all preparations for elections

had been successfully carried out at this stage. According to documentation

2l political parties in Serbia have submitted their election lists, and 7 in

Montenegro. Commission has decided that only 4 parties in Serbia fulfil

conditions to delegate their representatives. These parties are SPS, JUL,

SRS, DOS-Dr Vojislav Kostunica and SPO." (Blic daily, Aug. 28)

ELECTION COMMISSION AND VOTING LISTS

***"The Federal Election Commission (SIK) said that the total number of

citizens who will have the right to vote in the September 24 elections would

be made public on September 11, Politika writes on Wednesday. On that date,

the SIK, based on the figures submitted to it by the election commissions,

will make public the total number of voters and the number of voters in each

electoral district. Under the election rules, the voting roles must be

completed no later than 15 days before election day, and the SIK has set

September 8 as the deadline for the completion of the voting rolls. On that

day the SIK will report that the voting rolls have been completed. This

report will be submitted to the election commission on whose territory the

voting roll has been completed within 24 hours. After it receives figures on

the completion of the voting roll on September 9, the election commission of

the electoral district in question must submit these figures to the SIK

within 24 hours. These are figures on the total number of voters in the

electoral district in question. The last date for submitting reports on the

number of voters is September 10, and as early as the next day the SIK will

make public the total number of voters and the number of voters in each

electoral district." (V.I.P. Daily News Report, Aug. 30)

JUL: ELECTION RIGGING POSSIBLE

***"The Yugoslav Left (JUL) Board for Belgrade's Zemun District on Saturday

appealed to the people in the district to check if they are listed in the

voters' registers and to report possible changes in their status 'because

there are indications that there may be attempts at manipulating or rigging

the will of the people in the coming elections', the Politika newspaper

writes on Sunday. The candidates on the joint list of the SPS and JUL are

guarantors of a better life for the people of Zemun, and support for this

list will be support for peace, tolerance, culture, reconstruction, reform

and autonomy, the JUL statement said. The Serbian Radical Party...is in

power in Zemun District." (V.I.P. Daily News Report, Aug. 28)

***"The Executive Board of the Belgrade City Assembly on Tuesday denied

announcements by the Yugoslav Left (JUL) that the Belgrade authorities are

preparing to rig the elections by doctoring voting rolls...'We are convinced

that the Belgraders need not be reminded that the city authorities are being

accused of nonexistent electoral fraud by the very people that brazenly

stole the previous elections,' the Belgrade government said in a statement.

The statement says that the JUL, 'fearing it will not win the Belgraders'

trust in the next elections again, is stubbornly looking for the guilty

party on the other side instead of turning to itself and analyzing the

results of the harmful policies of the coalition of the Socialist Party of

Serbia (SPS), the JUL and the Serbian Radical Party (SRS) at the Serbian and

federal levels.' " (V.I.P. Daily News Report, Aug. 30)

SRS: ELECTION RIGGING UNDERWAY?

***"Natasa Jovanovic, head of the district Serbian Radical Party (SRS) board

in Kragujevac and federal MP, warned that the citizens in some

municipalities in the Sumadija region are encountering obstruction by the

municipal authorities who are disputing their places of residence, Politika

says on Wednesday. 'That leads to suspicion that certain municipal election

staff intend to manipulate the electoral rolls,' she said and called voters

to check whether they are registered in the electoral rolls. Jovanovic said

that 'a modified election geography of deleting voters from the rolls

overnight won't influence citizens to vote for the pro-NATO opposition.' "

(V.I.P. Daily News Report, Aug. 30)

"EXPELLED PERSONS" FROM KOSOVO TO VOTE IN "SPECIAL POLLING PLACES"

***"The Yugoslav Election Commission adopted on Aug. 23 a special regulation

for creating conditions for 'undisturbed implementation of the elections'

and enabling 'expelled persons' from Kosovo and Metohija to cast their

ballots. 'These citizens will be able, according to the established

procedure, to vote at special polling stations and in other voting

districts, where they are temporarily staying,' the commission decided.

According to this regulation the special polling places would be in

municipalities with more than 100 people expelled from Kosovo and Metohija."

(BETA news agency, Aug. 24)

DSS: ON FRAUD IN KOSOVO REFUGEE VOTE

***"The Democratic Party of Serbia (DSS) cautioned on Saturday that

'Milosevic's regime, with its imprecise decision on the formation of special

polling stations for refugees and expellees from Kosovo has caused

reasonable doubt that it would abuse these votes as it did in the past, and

use them for new election manipulation' FoNet writes. The decision is

'democratic at first sight' but 'full of traps in practice', the DSS writes

in a statement, adding that 'it was not even outlined who and in which

manner will verify these electoral rolls, so that the situation dating back

from 1996, when Kosovo Albanians allegedly gave their votes mostly to the

candidates of the regime' will repeat. Likewise, the DS pointed out that it

was not specified how the cases of expellees voting several times in

different municipalities would be prevented. This party also stresses that

data on the number of registered expellees from Kosovo are different, so

that the regime mentions the number of more than 350,000, while the UNHCR

has registered around 240,000 mostly Serb expellees. President of the

Socialist Party of Serbia (SPS) for Kosovo, Zivorad Igic, said that 116

polling stations in the territory of FRY have been secured for displaced

persons from Kosovo where there is the greatest concentration of them' Glas

Javnosti writes on Monday." (V.I.P. Daily News Report, Aug. 28)

REGIME'S "THOROUGH PREPARATIONS" FOR FRAUD

***"Dusan Batakovic, chairman of the non-partisan Council for Democratic

Changes in Serbia, also warned on Monday of 'thorough preparations by the

authorities for election fraud'. Batakovic said that in some companies,

employees 'are being given filled out election ballots with the candidates

of the ruling coalition circled, and they are obliged to show blank ballots

which they get at polling stations after the vote'. Those employees are

being blackmailed into voting for Slobodan Milosevic in the presidential

elections with threats of loss of jobs, he said. Zoran Lucic, an expert of

the Center for Free Elections and Democracy (CESID), said that a possible

election fraud 'will be visible only if the opposition has good control in

every, even the smallest polling station. The opposition has to be able to

immediately announce the results of the elections even before official

bodies,' Lucic told the latest issue of Ekonomist magazine. 'The

information needs to get to the party centers before the results are

announced by the SIK, and (the opposition) has agreed many ways to

communicate - by phone, fax, e-mail - and if that isn't possible the vote

registers will be taken to Belgrade by car,' Lucic said. Lucic was a member

of the SIK at the previous elections." (V.I.P. Daily News Report, Aug. 29)

OSCE WON'T BE INVITED TO OBSERVE

***"Yugoslav Ambassador to Austria Rados Smiljkovic said, on Aug. 24, that

he did not believe the Organization for Security and Cooperation in Europe

would be invited to monitor the upcoming elections in Yugoslavia. 'It wasn't

us who excluded the OSCE from Yugoslavia, but it was the OSCE that illegally

excluded us. The OSCE also took part, directly and indirectly, in the

preparations for the aggression against Yugoslavia and fully supported it.

It is also known that part of the observer mission in Kosovo, which we had

accepted, directly took part in NATO's preparations for the aggression,'

said Smiljkovic at a press conference in Vienna. Speaking about the

elections, Ambassador Smiljkovic emphasized that the West was exerting

pressure on Yugoslavia by announcing that it would not recognize the results

of the voting. 'As the date of the presidential, parliamentary and local

elections in Yugoslavia is nearing, and so is the date when the U.S.

administration will be replaced, pressure is being increased by some Western

centers of power, causing new tensions in Yugoslavia, and Kosovo in

particular. Before the elections were called, in some Western media, the

predominant opinion was that the Yugoslav authorities were afraid of

elections. But now that the elections have been called, those same media

spread doubts of their regularity,' said Smiljkovic." (BETA news agency,

Aug. 25)

SPS CAMPAIGN CENTER TOLD TO "ENSURE 2.5 MILLION VOTES" FOR SLOBO

***"Milovan Drecun, a former war reporter with Serbia's state television

(RTS) and one of the candidates for the post of FRY president, said in an

interview with Glas Javnosti on Wednesday that the campaign center of the

SPS had received instructions to ensure 2.5 million votes for Slobodan

Milosevic in the first round of voting and declare his victory as early as

midnight on September 24'. Drecun said that the proof of this is the fact

that 'not far from Surdulica and Lake Vlasina, in southern Serbia, special

riot police are getting intensive training these days because Milosevic does

not want a run-off.' " (V.I.P. Daily News Report, Aug. 30)

CESID DEMANDS DOMESTIC MONITORING

***"The Center for Free Elections and Democracy (CESID) will demand

authorization for domestic monitors at the September elections. 'The Federal

Election Commission has said that international monitors are welcome, but

OSCE representatives who wanted to establish a monitoring system have been

refused visas,' said the Center in a statement today, adding that it would

insist that domestic monitors be given the same rights of scrutiny as would

international observers." (Radio B2-92, Aug. 24)

SPS AIRS NEW TV STATION IN NOVI SAD

***"The Socialist Party of Serbia is part-owner of a new television station,

TV Most, which began broadcasting officially today. Novi Sad Socialist

spokesman Dusan Bajatovic told a press conference that the party was 'one of

the owners' of the station but declined to give further details." (Radio

B2-92, Aug. 28)

TOP SPS ISSUE: HOUSING

***"Yugoslav Vice Premier Nikola Sainovic, senior official of the Socialist

Party of Serbia (SPS), said on Sunday the chief plank in the election

platform of the SPS and the Yugoslav Left (JUL) was housing

development...'This is our policy. It must of course be further promoted

within our program for 10,000 new homes and for industrial and agricultural

development, and this policy will be safeguarded by putting a circle next to

the name of Slobodan Milosevic', Sainovic said at a ceremony of presenting

keys to new homes in the industrial town of Bor." (V.I.P. Daily News Report,

Aug. 28)

TANJUG CHIEF DIES OF ILLNESS

***"Dusan Djordjevic, the director and editor-in-chief of the official

Yugoslav news agency Tanjug, died Wednesday aged 55 after a long illness,

the agency said. Djordjevic, an economist, was a member of the SPS central

committee. He became head of Tanjug in 1988. He began his journalistic

career in his native town of Pirot, in eastern Serbia." (Agence France

Presse, Aug 30)

IV. ELECTION PREPARATIONS - OPPOSITION

SPO FILES SEPARATE PARLIAMENTARY LIST

***"Pursuant to the decision of the Presidency of the Serbian Renewal

Movement to participate in the federal parliamentary elections, SPO today

submitted the lists of deputy candidates for the Chamber of Citizens and

Chamber of Republics. We will participate in these elections independently,

under our own name and we expect citizens' support. Vuk Draskovic is the

leader of both SPO tickets, because he and the party he leads have proven in

the past ten years that they are uncompromising fighters for the change of

the political and economic system and the greatest victims in the struggle

for democratic Serbia. SPO has confirmed both in peace and in wartime that

it is on the side of its people, that it shares its fate. The evidence are

the names of the candidates running for deputies in both chambers. It

suffices to mention that the first on the ticket for the Chamber of

Republics is University Professor, architect Spasoje-Paja Krunic, who run

the city government of Belgrade during the NATO aggression together with our

candidate for the president of the FRY, Vojislav Mihailovic, and in the

tragic time passed the most difficult examination before Belgraders and

citizens of Serbia. The SPO ticket for the Chamber of Citizens includes the

names of Milan Komnenic, Gordana Anicic, Mitar Mrkela, Tomislav Jeremic,

Srdjan Mikovic, Pera Sijacki, Jovan Tucovic, Zivko Topalovic, Milos

Filipovic, Branislav Jovanovic, Aleksandar Djordjevic, as well as 97 other

candidates whose qualities guarantee that they would be worthy

representatives of citizens' interests in the Federal Parliament...A vote

for SPO is a vote for Serbia in Europe and for Europe in Serbia."

(statement, Serbian Renewal Movement, Aug. 24)SPO SPLIT ON OPPOSITION UNITY

DEEPENS

***"No sooner had he kicked-off his presidential election campaign south of

Belgrade, Democratic Opposition of Serbia presidential candidate Vojislav

Kostunica has helped to uncover the increasingly unsustainable position of

opposition arch rival Serbian Renewal Movement. The very voters and

activists of Vuk Draskovic's party met with Kostunica and openly stated that

they want the Democratic Opposition of Serbia and the Renewal Movement to

run jointly in local elections and in some cases, even in the federal

presidential elections. Renewal's officials in Serbia proper are desperately

trying to win over other opposition parties for a compromise, while the

Democratic Opposition of Serbia relishes the idea that its growing

popularity may allow it the tactical luxury of putting off such deals until

the last moment. [SPO] headquarters in Belgrade, however, continue to spread

only accusations that the democratic opposition umbrella group wants to tear

apart Draskovic's party. On the other hand, accusations that Renewal and

Draskovic are on their way to committing political suicide are also become

more frequent. The last such assessment was made by New Democracy leader

Dusan Mihajlovic, who had been Renewal's ally until recently. As the

deadline for submitting the lists of candidates is approaching, the choice

that the [SPO] faces becomes more uncomfortable: they will either accept the

Democratic Opposition of Serbia's conditions for forming joint lists of

candidates or almost surely lose power in several towns in Serbia. The

latter, because of the internal conflicts that are already smoldering, may

lead to the almost inevitable break-up of the party." (BETA news agency,

Aug. 31)

D. MIHAILOVIC: VUK COMMITTING POLITICAL SUICIDE

***"New Democracy chairman Dusan Mihajlovic stated on Aug. 30 that the

Serbian Renewal Movement and its leader Vuk Draskovic 'do not exist on

Serbia's political scene. Vuk Draskovic did not damage the Democratic

Opposition of Serbia with his policies, but has practically committed

political suicide and only a miracle can now reinstate him in political

life,' Mihajlovic told BETA in Krusevac. He said that Draskovic, 'through

irrational moves' has allowed Yugoslav President Slobodan Milosevic to

'create conditions to extend his presidential mandate.' According to

Mihajlovic, the purpose of the disappearance of the former communist

president of Serbia, Ivan Stambolic, was 'to intimidate the people and

political opponents' of the authorities in Serbia." (BETA news agency, Aug.

31)

SPO-SOKO BANJA QUESTIONS SURVIVAL OF SPO

***"Chairman of the Serbian Renewal Movement's (SPO) Soko Banja board and

member of the party's main board, Dragoje Lukovic, on Saturday sharply

criticized all opposition parties in Serbia and assessed that 'no one is

innocent' on the Serbian opposition scene, reported Radio B292 on its web

site. Lukovic criticized his own party for 'having changed its decision at

the last moment despite daily statements that it would not participate in

the federal parliamentary elections', stressing that this could cause

'additional confusion among the electorate'. He said that, for this reason,

'certain dissention has already appeared in the SPO with a view to such a

trend continuing' and assessed that 'in the event of almost certain poor

results at the elections, it will come as no surprise if the very survival

of the SPO comes into question'. Lukovic said that, for years now, the SPO

'has been in the hands of a business lobby in Belgrade, which had absolutely

no political, and obviously no other ambitions either', and that 'ever since

that moment the SPO has been demonstrating pronounced readiness to make

impermissible compromises and resort to collaboration'. He also said that in

the party 'there existed a major rift between the membership and the

officials', since 'officials have either gotten something or expect to get

something, so they demonstrate absolute loyalty', while 'the membership in

the field is encountering unpleasant citizens' reactions to the SPO's

policy' and it is, therefore, becoming 'passivized.' Lukovic also criticized

the Democratic Opposition of Serbia (DOS), assessing that 'because of a

presidential candidacy in a fictitious and imaginary state such as the FRY,

which few in the country and world still see as a state community, it is

ready to sacrifice local power in practically all the cities and

municipalities'. He assessed that 'the only tangible result achieved by the

opposition so far is the winning of power in a larger number of cities and

municipalities at the 1996 elections'. It is, for this reason, most

important of all to maintain the already 'achieved democratic changes' in

these cities, Lukovic said, adding that the boards all of the opposition

parties in Soko Parties have taken a 'final decision' to participate in the

local elections with a single list, since this is 'the citizens' request.' "

(V.I.P. Daily News Report, Aug. 28)

SPO-BAJINA BASTA ELECTION STAFF FIRED

***"The Serbian Renewal Movement (SPO) election staff in the town of Bajina

Basta was dismissed because its members demanded that the party stand united

with the rest of the opposition in the coming elections...The dismissed

members of the election staff told Beta news agency that an oral order for

their dismissal came over the weekend from the party central in Belgrade."

(V.I.P. Daily News Report, Aug. 30)

CHETNIK MOVEMENT TO MIHAILOVIC: WITHDRAW

***"The main board of the Ravna Gora Movement of Serbia on Saturday offered

support to the Democratic Opposition of Serbia (DOS) and the coalition's

presidential candidate Vojislav Kostunica, reported Radio B292 on its web

site. It was proposed at the gathering that the Council of the Ravna Gora

Movement address a public appeal to the presidential candidate of the

Serbian Renewal Movement (SPO), Vojislav Mihailovic, to withdraw from the

elections, so as to facilitate a change of power. The Council of the Ravna

Gora Movement comprises the fellow combatants of the leader of the World War

II guerilla movement, Draza Mihailovic, the grandfather of Vojislav

Mihailovic. The SPO and its presidential candidate attach great importance

to the family ties between Vojislav and Draza Mihailovic." (V.I.P. Daily

News Report, Aug. 28)

SPO-SOKO BANJA QUESTIONS SURVIVAL OF SPO

***"Chairman of the Serbian Renewal Movement's (SPO) Soko Banja board and

member of the party's main board, Dragoje Lukovic, on Saturday sharply

criticized all opposition parties in Serbia and assessed that 'no one is

innocent' on the Serbian opposition scene, reported Radio B292 on its web

site. Lukovic criticized his own party for 'having changed its decision at

the last moment despite daily statements that it would not participate in

the federal parliamentary elections', stressing that this could cause

'additional confusion among the electorate'. He said that, for this reason,

'certain dissention has already appeared in the SPO with a view to such a

trend continuing' and assessed that 'in the event of almost certain poor

results at the elections, it will come as no surprise if the very survival

of the SPO comes into question'. Lukovic said that, for years now, the SPO

'has been in the hands of a business lobby in Belgrade, which had absolutely

no political, and obviously no other ambitions either', and that 'ever since

that moment the SPO has been demonstrating pronounced readiness to make

impermissible compromises and resort to collaboration'. He also said that in

the party 'there existed a major rift between the membership and the

officials', since 'officials have either gotten something or expect to get

something, so they demonstrate absolute loyalty', while 'the membership in

the field is encountering unpleasant citizens' reactions to the SPO's

policy' and it is, therefore, becoming 'passivized.' Lukovic also criticized

the Democratic Opposition of Serbia (DOS), assessing that 'because of a

presidential candidacy in a fictitious and imaginary state such as the FRY,

which few in the country and world still see as a state community, it is

ready to sacrifice local power in practically all the cities and

municipalities'. He assessed that 'the only tangible result achieved by the

opposition so far is the winning of power in a larger number of cities and

municipalities at the 1996 elections'. It is, for this reason, most

important of all to maintain the already 'achieved democratic changes' in

these cities, Lukovic said, adding that the boards all of the opposition

parties in Soko Parties have taken a 'final decision' to participate in the

local elections with a single list, since this is 'the citizens' request.' "

(V.I.P. Daily News Report, Aug. 28)

SPO-BAJINA BASTA PRO-UNITY STAFF FIRED

***"The Serbian Renewal Movement (SPO) election staff in the town of Bajina

Basta was dismissed because its members demanded that the party stand united

with the rest of the opposition in the coming elections...The dismissed

members of the election staff told Beta news agency that an oral order for

their dismissal came over the weekend from the party central in Belgrade."

(V.I.P. Daily News Report, Aug. 30)

DOS-SPO JOINT LIST IN PIROT?

***"The secretary of the "Pirot chapter of the Democratic Party, Sreten

Savov, stated on Aug. 30 that the 'stands of the Democratic Opposition of

Serbia and of the Serbian Renewal Movement are coming closer regarding a

joint run in local elections in September." (BETA news agency, Aug. 31)

SPO-NIS CALLS FOR JOINT ELECTION RUN

***"On Aug. 30 the Serbian Renewal Movement chapter in Nis once again called

other opposition parties to reverse their decision about not running in

Sept. 24 local elections with the Renewal Movement. 'I call on the people of

the Democratic Party to do everything and convince their central office to

withdraw the decision of running in elections independently of the Serbian

Renewal Movement. It is a fatal mistake,' the chairman of the Nis chapter of

the Serbian Renewal Movement, Branislav Jovanovic, said at a press

conference. Jovanovic said that his party was ready for the local elections

and that it will run independently in case the other opposition parties fail

to reverse their decision." (BETA news agency, Aug. 31)

KOSTUNICA: DOS-SPO PARTNERSHIP AT LOCAL LEVEL?

***"On Aug. 30 Democratic Opposition of Serbia (DOS) presidential candidate

Vojislav Kostunica launched his election campaign with tour of several towns

south of Belgrade, including Pozarevac, the home town of Yugoslav President

Slobodan Milosevic. In Pozarevac, Kostunica said that he was satisfied with

the first day of his campaign, and called on citizens not to give in to

possible provocations by the authorities. Kostunica said that the situation

in Yugoslavia is worse than ever before, adding that this would not

discourage the opposition, whose trump cards are its transparency of work,

the truth, and open contacts with the people. He added that DOS and the SPO

might run together in the local elections in certain towns. Kostunica's

visit to Pozarevac went off without incidents. Together with several hundred

locals, he walked along the town's main street, although it was not closed

for traffic. Before over 1,000 people in Velika Plana, Kostunica described

the Sept. 24 vote, as 'decisive for the survival of the country.' He added

that the only way to succeed in the elections is 'to respond with

non-violence to the violence.' In Petrovac na Mlavi, DOS's presidential

candidate promised to the assembled crowd 'a normal and better life' and

preservation of the joint state of Serbia and Montenegro. In town, Kostunica

visited the local Renewal Movement chapter, whose members asked him to use

his influence to have DOS and Renewal run together in the forthcoming local

elections. Several thousand people welcomed Kostunica to Smederevo. In a

brief address to the gathered townspeople, Kostunica said that the

authorities in Belgrade 'cannot imagine that those who think differently

also exist.' " (BETA news agency, Aug. 31)

POLL: DOS 34%, SPS-JUL 22%, SPO 7%

***"The DOS has an advantage over the SPS and JUL in the local elections in

Serbia but less than in the federal parliamentary elections, according to a

poll conducted in August by the Center for Politicological Research and

Public Opinion of the Belgrade Social Sciences Institute...The poll,

conducted for the Beta news agency, showed that at the local elections the

DOS would win 34% of the vote, the SPS-JUL 22%, Serbian Radical Party (SRS)

7%, Serbian Renewal Movement 6% and other parties 5%. Of the total number

of people polled, 17% said they can't decided who to vote for and 9% said

they would abstain. The poll was conducted from August 8 to 13 in Serbia in

85 randomly selected local communities. It covered 1,700 people of voting

age including 108 displaced persons from Kosovo. A joint stand by the DOS

and SPO would improve the united opposition's election results. In that

case, the DOS-SPO coalition would win 40% of the vote at local elections,

the SPS-JUL 22% and the SRS 7%. Five percent would vote for other parties.

The pollsters simulated an election competition between the united

opposition (DOS and SPO) and the SPS-JUL-SRS coalition. The poll showed that

in that case the opposition would enjoy a convincing advantage. The DOS-SPO

would win 45% of the vote and the ruling SPS-JUL-SRS coalition 28%, with 14%

undecided and 13% abstinence. The least favorable scenario for the

opposition is for the DOS and SPO to stand independently and the ruling

parties in a coalition but even then the advantage would be with the

opposition (35% to 28%), the poll showed." (V.I.P. Daily News Report, Aug.

29)

POLL DIRECTOR PREDICTS KOSTUNICA 2ND ROUND WIN

***"The director of the Medium public opinion and market research agency,

Srbobran Brankovic, has announced that the presidential candidate of the

Democratic Opposition of Serbia (DOS), Vojislav Kostunica, will certainly

enter a second round of elections and then win. 'It is certain that the

candidate of the ruling party will not win in the first round of the

forthcoming elections if the political will of the voters is to decide on

the outcome of the elections. I am also certain that Vojislav Kostunica,

will win the elections for Yugoslav president,' Brankovic announced at a

news conference in the Media Center on Aug. 29. According to Medium's

survey, 35.3% of those polled said they would vote for Kostunica, 24.4% for

Milosevic, 9% for the candidate of the Serbian Radical Party, Tomislav

Nikolic, and 6.8% for the candidate of the Serbian Renewal Movement,

Vojislav Mihailovic. A whole 13.2% of those polled said that they were

undecided, and 11.2% that they would abstain from voting. "In order to

neutralize the advantage of Vojislav Kostunica, something really big would

have to happen, bigger than the rigging of (local) elections in 1996," said

the director of the Medium agency." (BETA news agency, Aug. 30)

POLL: 79% VOTER TURNOUT EXPECTED

***"The Mark Plan marketing research agency predicted that 79.2% of the

voters in Serbia will turn out for the coming elections, independent media

reported. The agency conducted its poll the agency between August 21 and 27

covering 3,588 people including 780 in Montenegro. The poll was conducted

in 27 electoral districts with two municipalities chosen, on the average,

from each of the electoral districts in Serbia and seven in Montenegro. The

published results are preliminary, not final, Mark-plan said. According to

the replies by the first 988 people polled, just 12.4% won't turn out for

the elections, 6.3% are undecided and 2.1% wouldn't say who they'll vote

for. According to the 738 people who said they will turn out, Democratic

Opposition of Serbia (DOS) presidential candidate Vojislav Kostunica will

win 42% of the vote, Yugoslav President Slobodan Milosevic 20.5% and Serbian

Renewal Movement (SPO) candidate Vojislav Mihailovic 15.8% while Serbian

Radical Party (SRS) candidate Tomislav Nikolic will win 7.3%. The

preliminary poll results showed that in the local elections, the DOS will

win 29.9% of the vote, the JUL-SPS coalition 17.7%, the SPO 10.7% and the

SRS 7.3%." (V.I.P. Daily News Report, Aug. 29)

KOSTUNICA SHOWS SUBSTANTIAL LEAD

***"The Democratic Party of Serbia's presidential candidate, Vojislav

Kostunica, has the best chance to win the federal presidential elections

scheduled for Sept. 24, shows a recent public poll conducted by the Belgrade

Institute of Social Sciences' Center for Politicological Research and

Canvassing Public Opinion. The poll, commissioned by BETA, encompassed 1,700

citizens, including 108 displaced persons from Kosovo. It shows that 35

percent of the voters said they would cast their ballot for Kostunica and 23

percent for incumbent Yugoslav President Slobodan Milosevic. According to

that poll, which was conducted in 85 randomly chosen local communities

throughout Serbia between Aug. 8 and Aug. 13, the Serbian Renewal Movement

and the Serbian Radical party's presidential candidates, Vojislav Mihajlovic

and Tomislav Nikolic respectively, would now win five percent of the votes

each, and all remaining candidates a total of three percent. Ten percent of

the canvassed citizens said they would refrain from voting and 19 percent

have not yet decided if they would vote. If there is a second round,

Kostunica would enjoy a big lead and win with 47 percent of the votes,

whereas Milosevic would receive the support of 27 percent of voters.

Considering the results of the public opinion poll, the researchers

concluded that as the elections are getting closer, 'the political will of

the majority of voters has crystallized and the major contest will be that

between Kostunica and Milosevic.' " (BETA news agency, Aug. 25)

MUSLIM COALITION WITHDRAWS CANDIDATE, SUPPORTS KOSTUNICA

***"The coalition 'List for Sandzak - Dr. Sulejman Ugljanin' has abandoned

the idea of putting up the presidential candidacy of one of its officials at

the upcoming elections and supported the candidacy of the Democratic

Opposition of Serbia's (DOS) presidential candidate, writes Monday's Glas

Javnosti. At the local elections, Muslim voters will mostly be choosing

between two large groups of parties - the People's Movement of Sandzak,

which comprises eight parties (including the Sandzak coalition) and the List

for Sandzak - Sulejman Ugljanin, which scored a convincing victory in three

Sandzak towns with a majority Muslim population at the previous elections.

The Sandzak coalition, led by Rasim Ljajic, is a member of DOS." (V.I.P.

Daily News Report, Aug. 28)

ALBRIGHT: ELECTIONS UNFAIR BUT "OPPOSITION CAN DO WELL"

***"The United States does not believe that next month's Serb elections will

be fair, but we do believe that even under Milosevic's rules the opposition

can do well and emerge as a movement, bringing democracy to all of

Yugoslavia. So we encourage the people of Serbia to take advantage of even

this flawed opportunity, because we look forward to welcoming a democratic

Yugoslavia as a full participant in the new Europe." (statement, Madeleine

Albright, US Secretary of State, Aug. 23) "A recent statement by U.S.

Secretary of State Madeleine Albright was important insomuch as it revealed

a positive change in the U.S. attitude towards the developments in

Yugoslavia...There were no threats and no promises in her statement, nothing

that could be seen as an offense to the dignity of our people or something

Slobodan Milosevic's regime could use against his political foes...As our

elections draw near, I sincerely hope that Washington's comments and

judgements will stay within this framework." (statement, Vojislav Kostunica

, Aug. 24)

5,000 ATTEND LESKOVAC YOUTH CONCERT

***"Approximately 5,000 young people attended the 'rock and roll for

elections' concert in the center of the southern Serbian town of Leskovac

last night. This was the ninth concert in the tour aimed at encouraging

young people to vote in the forthcoming elections." (BETA daily news, Aug.

27)

DJINDJIC: ELECTION THEFT WILL TRIGGER STREET PROTESTS

***"Zoran Djindjic, told Saturday's Danas, that if the regime did not

recognize an electoral victory of DOS and its presidential candidate

Vojislav Kostunica, DOS would call on the citizens to take to the squares

and block Serbia. Djindjic assessed that it will 'then only be a matter of

time when Milosevic will leave. We are taking into account the possibility

of Milosevic thinking of not recognizing the results, but it they are

convincing enough to our advantage, we believe he will not dare do so. We

believe the army and police will immediately recognize them', Djindjic said.

He also stated that the opposition would congratulate Milosevic on an

electoral victory, if he won a majority at the elections. Djindjic added

that DOS would 'ignore' the presidential candidate of the Serbian Renewal

Movement (SPO) Vojislav Mihailovic and other candidates, stressing that the

main rival of DOS was the FRY president and left-wing' presidential

candidate Slobodan Milosevic. Asked whether DOS would support Vojislav

Mihailovic in the event that he made it to the second round of the

presidential elections, Djindjic said it would, but he, nevertheless,

emphasized that this was 'an extremely hypothetical question.' Djindjic set

out the DS proposal for non-party candidate Milan St. Protic to be the mayor

of Belgrade if DOS were to win the elections." (V.I.P. Daily News Report,

Aug. 28)

V. INTERNATIONAL

RUSSIA, FRY SIGN FREE TRADE AGREEMENT

***"The FRY and Russia signed an agreement on free trade which took effect

immediately, abolishing customs duties between the two countries...The

agreement was signed in Belgrade's Palace of the Federation by FRY Foreign

Trade Minister Borislav Vukovic and the Russian Federation's Minister for

Trade, Industry, Science and Technology Aleksandar Nikolayevich Dondukov.

The signing ceremony was attended by FRY Ambassador to Russia Borislav

Milosevic and Russian Ambassador in Belgrade Dmitri Yagoshkin. 'The signing

of the agreement is an act of political will, decisiveness and the

determination for cooperation,' Borislav Milosevic said. 'For us, Russia is

a strategic partner and that is what it will remain,' he said. 'With the

few exceptions listed in the annexes, Russian goods in Yugoslavia and

Yugoslav goods in Russia, on condition that they are manufactured by our

companies, won't have any customs barriers as of today,' Borislav Vukovic

said. He added that the average customs duties on Yugoslav goods on the

Russian market stood at 25% and that Yugoslav goods will become that much

more competitive on that market. The origin of the goods will be controlled

by the Russian Federation's Committee for Customs and the FRY Customs

Service with a separate joint body formed to control the implementation of

the agreement. Vukovic said that the agreement will increase the trade

between the two countries by an estimated 7%-10% a year. He said the free

trade agreement does not cover certain Yugoslav textile products, excise

goods on the Russian market such as cigarettes and alcohol and furniture.

'There is a special regime for Yugoslav medication: in some cases the

customs have been abolished, in some cases decreased,' Vukovic said. For

Russian goods, the agreement will not be implemented for cars and vehicles,

some special transformers and compressors. 'There is an article in the

agreement under which all goods will be included in the customs-free regime

within five years,' Vukovic said. The FRY has a similar agreement with the

Republic of Macedonia. Borislav Milosevic said Russia does not have this

kind of agreement with any other country. Serbian state media gave the

signing of the agreement great publicity and Dondukov's meeting with FRY

President Slobodan Milosevic was headline news. Milosevic said during that

meeting that the lifting of the customs barriers between the FRY and Russia

is a big and radical step in bringing the two states closer together and

promoting overall economic relations." (V.I.P. Daily News Report, Aug. 29)

MILOSEVIC RECEIVES RUSSIAN INDUSTRY MINISTER

***"Yugoslav President Slobodan Milosevic received on Monday Russian

Minister of Industry, Science and Technology Alexander Dondukov and his

host, Yugoslav Minister of Foreign Trade Borislav Vukovic. Earlier on

Monday, Dondukov, who co-chairs the Russian-Yugoslav intergovernmental

committee, and Vukovic signed a free trade accord between Russia and

Yugoslavia, which had been in preparation for months. Milosevic said on the

occasion that the removal of tariff barriers between the two countries was a

huge and radical step in the direction of bringing the two countries closer

together and promoting overall bilateral economic ties. This is the only

trade liberalization accord between Russia and a country outside the

Commonwealth of Independent States (CIS). Milosevic congratulated the

ministers on the accord, which establishes a free trade regimen in bilateral

relations. He stressed this was a huge step in the direction of mutual

linkage which would accelerate the two states' economic development, improve

conditions of life and work and boost employment, and which would certainly

promote economic stability in both countries. Openness and closer economic

ties are in both countries' vital interest and their firm commitment which

reaffirms the friendship and understanding between their nations and their

determination to develop equal relations and cooperation, according to

Milosevic. Yugoslav Prime Minister Momir Bulatovic and Vice Premier Nikola

Sainovic, Premier of the Yugoslav republic of Serbia Mirko Marjanovic,

Russian Ambassador in Belgrade Valery Egoshkin and Yugoslav Ambassador in

Moscow Borislav Milosevic attended." (Tanjug state news agency, Aug. 28)

IVANOV: NEED "DEMOCRATIC & FAIR " ELECTIONS - WITH INT'L OBSERVERS

***"On August 26, Minister of Foreign Affairs of the Russian Federation Igor

Ivanov, received Minister of Foreign Affairs of the Federal Republic of

Yugoslavia Zivadin Jovanovic, on transit through Moscow to Cuba for an

official visit... Stress was laid on the fundamental importance of ensuring

the territorial integrity and sovereignty of the FRY and on the necessity of

strict and consistent implementation of UN Security Council Resolution 1244

on Kosovo in all respects...In discussing the situation within Yugoslavia,

Igor Ivanov noted that the question of the elections scheduled for September

24 in that country was a matter of the peoples of the FRY. Now it is

necessary to create all the conditions for the elections to be held in a

democratic and fair atmosphere, including an invitation of international

observers, and for their results to contribute to stability in the country

and to strengthening its federal foundations. It was noted that an early

removal of Yugoslavia from international isolation and the lifting of the

sanctions imposed by the EU and the U.S. would help to improve the overall

situation in the Balkans." (statement, Russian Ministry of Foreign Affairs,

Aug. 28)

AUSTRIA, COE CHIEF: LIFT OIL EMBARGO BEFORE ELECTIONS

"Austria said Wednesday that the oil embargo designed to weaken the regime

of Yugoslav President Slobodan Milosevic had failed and the opposition would

profit if it were lifted before elections next month...'We said a year ago

the oil embargo was not achieving its political aim and should go. With the

elections approaching it has become even more important,' Albert Rohan, the

Austrian foreign ministry's general secretary, told AFP. 'Some states,

notably Britain and the Netherlands, oppose this move on a moral basis,

perhaps because of their closer transatlantic ties. We see it as a practical

question. We believe the removal of the embargo could be portrayed as a

victory of the opposition, and that would be immensely useful,' he said.

Voters will go to the polls on September 24 to elect a president and

parliament for federal Yugoslavia, which comprises Serbia and its junior

partner Montenegro. Although analysts believe popular support for Milosevic

has steadily eroded, the opposition, which is is fielding two rival

candidates in the September 24 polls, has failed to woo voters, a recent

report from a Brussels' foreign policy think-tank stated. On Monday, the

Council of Europe's secretary general, Walter Schwimmer, appealed for a

lifting of sanctions. 'These sanctions should be lifted. Europe should think

over the effect of these sanctions and impose them only on the regime in

power,' he told the European Forum of Alpbach, in Austria's Tirol region."

(Agence France Presse, Aug. 30)

STATE DEPT. DETAILS VJ "HARASSMENT" OF U.S. AID SHIP

***"Yugoslav military personnel armed with automatic weapons boarded a U.S.

vessel carrying humanitarian food supplies in the Adriatic Sea last weekend

and allowed the ship to leave after payment of a $3,200 fee, U.S. government

and shipping sources said. The vessel, the Delaware Bay, was carrying grain

bound for Kosovo. It was seized off Montenegro, the smaller of Yugoslavia's

two republics...State Department spokesman Philip Reeker said the Yugoslavs

demanded that the crew of the Delaware Bay shut down its communications,

take the ship to a military port, and hand over the bill of lading and crew

list. The ship's master handed over the crew list but refused to shut down

communications, and the Yugoslavs allowed the ship to dock at the

Montenegrin port of Bar, its original destination, Reeker said. He said the

cargo was off-loaded after the Yugoslavs demanded and received payment of a

fee. 'This kind of harassment could impede future humanitarian shipments,'

he said. The incident was first reported by the newsletter of the American

Maritime Congress, which said the ship, chartered by Farrell Lines, also was

carrying military cargo for Israel and Egypt. According to the newsletter,

the seven or so Yugoslav military personnel who boarded the ship believed

that it had off-loaded arms and ammunition in Albania. Reeker did not

address that issue, but the newsletter said the allegation was false."

(Associated Press, Aug. 27)

HAVANA, BELGRADE SIGN INVESTMENT AGREEMENT

***"Yugoslav Foreign Minister Zivadin Jovanovic arrived in Havana Sunday for

a two-day official visit. He was welcomed by his Cuban counterpart Felipe

Perez Roque. Jovanovic told the press on his arrival that the goal of his

visit was to discuss the expansion of bilateral cooperation and joint

activities in international organizations. Initial talks with Minister Roque

have demonstrated that good conditions and mutual will for such cooperation

exist already, Jovanovic said. Jovanovic is accompanied by a big delegation

of businessmen who will discuss future economic cooperation with Cuban

partners. Jovanovic hailed Cuba's principled condemnation of last year's

NATO aggression on Yugoslavia and pointed to the long tradition of friendly

relations and cooperation. Yugoslavia and Cuba, as nonaligned countries, are

united by the common goals of peace and cooperation among states on equal

footing and by their abidance by the UN Charter, he noted. Roque said he

expected the visit to provide a fresh impetus to bilateral relations through

an exchange of views on issues of common interest and on the international

situation in the expectation of the forthcoming Millennium Summit. The Cuban

people are following with great attention Yugoslavia's reconstruction and

recovery endeavors following the NATO aggression, he said." (Tanjug state

news agency, Aug. 28)

***"Cuba, which has sharply criticised western efforts to sanction and

isolate Yugoslavia, moved on Monday to strengthen its own links with

Belgrade by signing a bilateral investment promotion and protection

agreement with the beleaguered Balkan state. The accord, signed in Havana by

visiting Yugoslav Foreign Minister Zivadin Jovanovic, appeared to be largely

symbolic in immediate economic terms because both countries face financial

difficulties, especially a shortage of hard currency. But it signalled

Havana's apparent desire to show political support for Yugoslavia...Mr

Jovanovic said after talks with Cuban Foreign Minister Felipe Perez on

Monday that Cuba and Yugoslavia shared 'the same objectives and principles'

in their foreign polices and would strengthen their cooperation in the

United Nations and the Non-Aligned Movement." (Financial Times, Aug. 28)

JOVANOVIC IN CUBA: OUR PRISONERS WELL-TREATED

***"Yugoslav Foreign Minister Zivadin Jovanovic, on a visit to communist-run

Cuba, told Western nations on Monday not to pressure Belgrade in the case of

two Britons and two Canadians held as suspected terrorists. 'We consider any

pressure, interference not to be conducive with the court procedure,'

Jovanovic said when asked about calls for the release of two British

policemen and a Canadian businessman and his nephew, all detained about a

month ago. Jovanovic, in Cuba to thank President Fidel Castro's government

for its solidarity during the 1999 Kosovo crisis, insisted at a news

briefing in Havana that the four men were being well-treated as a judicial

investigation got under way. 'The process, court procedure is in development

... They are charged for violating the laws of Yugoslavia, and threatening

conducting terrorist actions on the soil of Yugoslavia against Yugoslav

representatives,' he said at a news briefing in Havana. 'What is

important -- they enjoy all rights to a defense and consular visits, so

there are not any reasons for concern.' Arrested in the border area between

Kosovo and the Yugoslav republic of Montenegro, the four are being held by

Belgrade's military court pending possible trial. The men -- Britons Adrian

Prangnell and John Yore and Canadians Shaun Going and Liam Hall -- have all

denied they were planning to mount terrorist attacks in Yugoslavia. Ottawa

and London both said the suspicions of espionage and terrorism were

unfounded, and urged the men's immediate release. Britain alleged last week

its nationals were being held in 'inhumane' conditions of solitary

confinement with only short periods of consular access and permission to

make just one telephone call to their families. The Yugoslav province of

Kosovo has been under UN administration, backed by NATO-led troops, since

mid-1999, after an 11-week NATO bomb campaign to stop Belgrade's alleged

oppression of the Albanian majority and allow refugees back." (Reuters, Aug.

28)

FRY-SOUTH AFRICA ECONOMIC COOPERATION?

***"The Federal Minister for Cooperation with International Financial

Institutions, Borka Vucic, has met South Africa's National Bank and leading

commercial banks in the country to discuss cooperation with Yugoslavia.

State media report today hat Vucic's visit had aroused great interest in

Pretoria's business circles and should increase trade between Yugoslavia and

countries in southern Africa by four or five hundred per cent." (Radio

B2-92, Aug. 24)

KOSTUNICA QUESTIONS REGIME COURTSHIP OF ROGUE STATES

***" 'The regime is running a race around the world in order to provide as

intensive diplomatic activity before elections, as possible. Slobodan

Milosevic behaves as early Broz did and is trying to establish new

non-aligned movement', Vojislav Kostunica leader of Democratic Party of

Serbia and DOS presidential candidate said at yesterday's press conference.

'What is the meaning of the agreement on health care concluded with Iraq, or

agreements on trade with Cuba and Ghana?' Kostunica asked. He compared the

present situation in Serbia with that in 1945 and 1946. 'At that time the

communists exploited sufferings of the people during the WW II. Today,

Milosevic, in the same way, is exploiting destruction by NATO. NATO is

responsible for bombing, but with a different policy regarding Kosovo issue,

that war could have been avoided.' "(Blic daily, Aug. 28)

VI. ECONOMY

PRICES UP 40% MORE THAN OFFICIAL FIGURES?

***"The Economics Institute in Belgrade announced that retail prices

increased by 5.3% in July, and estimated that monthly inflation in August

will also exceed five percent. Retail prices increased by 106.7% in the past

12 months, and not 68.5%, as stated by the Federal Statistics Bureau, and

this difference is hidden inflation, said economist Nebojsa Savic." (BETA

news agency, Aug. 24)

***"The Federal Statistics office said the average salary in the FRY in July

stood at 2,375 dinars and was nominally 4.6% higher than in June while its

real value rose by 1.6%, the Belgrade press says on Tuesday. Employees in

the economy received an average 2,347 dinars and in the non-economic sector

2,462 dinars. Salaries in the economy were nominally raised by 8.1% and in

the non-economic sector by 4.8%. The average salary in Serbia in July stood

at 2,197 dinars and at 4,643 dinars in Montenegro. Compared to the previous

month salaries in Serbia rose by 4.9% and in Montenegro by 2.3%. The

figures for Kosovo were not covered since March last year." (V.I.P. Daily

News Report, Aug. 29) "The average net salary in Serbia in the month of

July was 2,197 dinars, which is a 5.3 percent more than in June. According

to data provided by the Serbian Statistics Bureau and published in the

recent issue of the Official Gazette of Serbia, the average salary in the

industrial sector was 2,237 dinars and 2,069 dinars in the non-industrial

sector." (BETA news agency, Aug. 25)

***"The Federal Statistics Office said there were 803,333 unemployed in the

FRY in May, or 0.2% more than in the previous month and 8.6% less than in

May 1999, the Belgrade press says on Tuesday. The largest number of

unemployed were unqualified workers - 265,044 -, high school educated -

227,066 - and highly educated and qualified workers 217,195. Over half the

number - 457,209 - were women. The statistics did not cover last year's

employment figures for Kosovo." (V.I.P. Daily News Report, Aug. 29)

FOREIGN CURRENCY RESERVES SOLD FOR OIL

***"On Aug. 24 the Yugoslav government decided to sell from its foreign

currency reserves $18 million in order to supply the market with crude oil

and oil derivatives. In its announcement, the Federal Ministry of

Information said that the decision was made in support of the Serbian

government's program and activities. It was also said that the government

'supports the National Bank of Yugoslavia governor's activities towards

tightening the financial discipline and the withdrawal of a share of the

dinar money supply.' " (BETA news agency, Aug. 25)