Yugoslav Daily Survey 96-08-08

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From: Yugoslavia <http://www.yugoslavia.com>

CONTENTS

[01] MILOSEVIC, TUDJMAN - JOINT STATEMENT

[02] MILOSEVIC: MAJOR STEP TO THE INTEREST OF YUGOSLAVIA AND CROATIA

[03] TALKS ON PROMOTION OF OVERALL RELATIONS BETWEEN F.R.Y. AND CROATIA

[04] HISTORIC SIGNIFICANCE OF MILOSEVIC-TUDJMAN MEETING IN ATHENS

[05] MILOSEVIC MEETS SIMITIS

[06] KONTIC: LIFTING OF SANCTIONS PRIORITY TASK

[07] BULATOVIC, REHN ON HUMAN RIGHTS IN MONTENEGRO

[08] YUGOSLAVIA - BRITAIN

[09] HERCEG NOVI AND DUBROVNIK SIGN AGREEMENT ON WATER SUPPLY

[10] YUGOSLAVIA: FOREIGN-CURRENCY RESERVES

[11] KRAJISNIK - LOPEZ

[12] MUSLIMS, CROATS DO NOT COMPLY WITH AGREEMENT ON EXHUMATION

[13] COUNCIL OF EUROPE SATISFIED WITH MOSTAR AGREEMENT

[14] CROATIA PREVENTS RETURN OF EXPELLED SERBS

[15] UNHCR: CROATIA DISCOURAGES SERB RETURN TO KRAJINA

[16] GHALI URGES EXTENSION OF PEACE MISSION IN EAST SLAVONIA

[17] EUROPEAN UNION INVESTS IN SERB REGION OF SREM-BARANJA

[01] MILOSEVIC, TUDJMAN - JOINT STATEMENT

Milosevic and Tudjman held extensive talks here on matters of interest for the promotion of the Peace Process in the Region and normalization of relations between the Federal Republic of Yugoslavia and Croatia.

The two Presidents gave a positive evaluation of the development so far of mutual relations and welcomed the results achieved in the realization of concrete agreements in the area of economic relations, linking of the infrastructure and resolving of complex humanitarian issues, the Statement said.

Starting from the great importance of Yugoslav-Croatian relations for strengthening the Peace Process, for peace and stability in the Region in general, the two sides expressed readiness to proceed with the full normalization of relations, the Statement said.

They underlined the readiness of Yugoslavia and Croatia to establish and develop good relations between their citizens and peoples, to respect each other as independent and sovereign States and, in line with the U.N. Charter, to work on strengthening mutual confidence, and also to cooperate on promoting peace, stability and development in the Region.

Both sides expressed readiness to settle through negotiations the disputed issue of the Prevlaka Promontory so as to eliminate existing tension regarding this issue on both sides, concerning security of the territory of the F.R. Yugoslavia in the Boka Kotorska Bay and the Croatian territory in the Dubrovnik area.

Both sides will work to settle the disputed issues through negotiations in the spirit of the U.N. Charter and good neighbourly relations. Pending a solution to the Prevlaka issue, both sides pledge to respect the security regime established with U.N. monitoring.

Both sides expressed readiness to create necessary conditions for free and unhindered return of all refugees and displaced persons to their homes or other places which they freely chose and to allow them to recover their property or receive fair compensation.

It was also said that a safe return of refugees called for a General Amnesty.

The meeting also tackled the protection of private property of physical and legal persons, who have the citizenship of the other side, and it was agreed that such property should have equal legal protection as the property of citizens of that State. Both sides expressed the willingness to reach a special agreement on payment of pensions and realization of other rights in the field of labour and social insurance.

It was agreed to urgently speed up the process of resolving the issue of unaccounted for persons and both sides agreed to exchange all available information on the matter.

It was agreed that competent bodies would continue bilateral contacts in order to achieve a full normalization and upgrading of road, railway, air, river and post traffic and telecommunication links between the two States, which is crucial not only for both States but the entire Region as well.

Particular attention was paid to the promotion of economic and commercial links in all domains, as well as cooperation in the preservation and protection of living environment.

The two sides are committed to the principle of the free circulation of citizens, goods and capital, and will engage themselves on the creation of conditions to enable such a circulation.

A favourable appraisal was given of the so far implementation of the Erdut Agreement on East Slavonia, Baranja and West Srem. The need was pointed out for the further consistent implementation of this agreement and the prevention of or refraining from all the acts and moves that could bring into question the consistent and comprehensive observance of this Ageement. Support was given to the Transitional Administration of the United Nations in ensuring all the necessary conditions for a successful implementation of the Agreement.

The two Presidents voice full support to the enforcement of the provisions in the Dayton Agreement which was signed in Paris.

Particular gratitude was expressed to the Greek Prime Minister, Costas Simitis, for hospitality.

Also participating in the Milosevic-Tudjman talk were the Yugoslav Minister of Foreign Affairs Milan Milutinovic and Vice-premier and Minister of Foreign Affairs of the Republic of Croatia Mate Granic.

It was agreed in Athens that the two Ministers should meet in Belgrade before the end of this August in order to ascertain the details of and sign an Agreement on the normalization of mutual relations which will reflect the agreed approach in every respect.

[02] MILOSEVIC: MAJOR STEP TO THE INTEREST OF YUGOSLAVIA AND CROATIA

President Milosevic, in his statement to Tanjug's special reporter, said, 'in the fist place i want to say that we have had very constructive talk which has undoubtedly been held in the spirit of pronounced mutual responsibility for the promotion of Yugoslav-Croatian relations which we assess as most significant for the stability of overall relations in the Region.'

President Milosevic stressed that 'it is unnecessary to give my interpretation of the elements of the Joint Announcement that has just been published, but i do want to say that I am firmly confident that today's meeting was a very big step to the interest of the Federal Republic of Yugoslavia as well as Croatia, because it is beyond doubt that the promotion of these relations means not only a big step for these two countries but also a big step for the entire Region.'

In the end of the statement, the President of Serbia expressed particular gratitude to the Geek Prime Minister, Kostas Simitis, 'for hospitality accorded us for this meeting to be held.'

[03] TALKS ON PROMOTION OF OVERALL RELATIONS BETWEEN F.R.Y. AND CROATIA

Milosevic and Tudjman paid special attention to the economic and political questions which pertain to the possibilities of promoting Belgrade-Zagreb relations.

As for the economic relations, a good foundation was laid with the first, initial steps that enable somewhat better climate in relations between the two countries. This refers to the opening of traffic on the Belgrade-Zagreb Motor Road and to the establishment of relations between the oil industries. In this reference, also discussed were the possible further steps towards achieving, on the economic plane, something more in the cooperation between the concerned businessmen on the both sides, and in this way, towards creating somewhat better climate for overall negotiations which pertain to the Serbo-Croatian relations.

As for the political part of the talks, particularly discussed were the preconditions that Croatia should fulfil in keeping with the negotiations in Dayton and the ensuing Accords, and which would enable the complete political normalization of relations between the F.R.Y. and Croatia. The two sides in this respect appraised as very positive the implementation so far of the Erdut Agreement on the Slavonia-Baranja Region as well as the regulation of all questions that relate to these problems.

At the same time it was said that both sides would in the further period strive for the full normalization of relations and for the resolution of all outstanding questions between the two countries.

[04] HISTORIC SIGNIFICANCE OF MILOSEVIC-TUDJMAN MEETING IN ATHENS

The State Television carried nearly the full text of the joint Statement issued after the meeting, underlining that both sides had demonstrated extraordinary political will and readiness for promoting the relations between the Federal Republic of Yugoslavia and Croatia.

The commentator of SKY television said that Yugoslav-Croatian relations were a key factor of the overall situation in the former Yugoslavia and the entire Region, which is why the successful meeting between Milosevic and Tudjman has certainly paved the way for a period of peace and stability in the Region.

Television stations also carried a Statement by Greek Prime Minister Costas Simitis who said that peace and stability in the Balkans and friendship among peoples were goals shared by all in the Region.

The meeting between Serbian and Croatian Presidents was given a prominent place also by the media of other European capitals.

[05] MILOSEVIC MEETS SIMITIS

In a separate talk, which passed in a cordial and friendly atmosphere, Milosevic and Simitis exchanged views on the current questions of interest for the further successful development of bilateral relations and cooperation between the Federal Republic of Yugoslavia and Greece, as well as on the current international questions of importance for the strengthening of peace and stability in the world.

The two sides at the meeting pointed out that the stable friendly relations between the two countries, as well as the mutual nearness and understanding and the reliance of the two nations up one another were representing the significant factor of political stability in the entire Region. Here a special place may be given to the firm joint determination for intensifying and constantly promoting the links and cooperation between Belgrade and Athens.

Also discussed during the Milosevic-Simitis meeting was the further development of the economic cooperation between the F.R.Y. and Greece which, as jointly assessed, was successfully unwinding with the very good prospects for the further development.

Also participating in the Milosevic-Simitis talk were the Yugoslav and Greek Foreign Ministers, Milan Milutinovic and Teodoros Pangalos.

[06] KONTIC: LIFTING OF SANCTIONS PRIORITY TASK

In the area of home politics, Yugoslavia will continue with its firm option to maintain the stability of the National Currency and the Monetary System, Kontic said, and added that the restrictive policy will be pursued in this area.

Kontic said, however, that the export plans of the domestic economy were not being realized. 'We are not exporting because our economy is not competitive,' Kontic specified and explained that this was because Yugoslavia was outside of international financial institutions and could not enjoy the Most Favoured Nation Status in trade or use credits for raw materials and production materials.

[07] BULATOVIC, REHN ON HUMAN RIGHTS IN MONTENEGRO

The Yugoslav Republic of Montenegro is a civil State in which citizens are the protagonists of sovereignty, Bulatovic said during a lengthy and cordial meeting with Elizabeth Rehn who is in Podgorica on a one-day visit to Montenegro, Bulatovic's Cabinet said in a statement. Their meeting focused on the realization and protection of human rights in the F.R. Yugoslavia in the light of developments in the former Yugoslavia, the statement said.

Bulatovic said that inter-ethnic relations in Montenegro were good and that respect for national and ethnic characteristics was a traditional value and way of living. He said that the Yugoslav Republic of Montenegro had preserved high-level mutual understanding and tolerance even during the fiercest nationalist euphoria in the former Yugoslavia, which had been decisive for the stable political situation in Montenegro during the Civil War in its vicinity, the statement said.

Rehn showed interest for present democratic processes in Montenegro and upcoming Republican multi-party elections, scheduled for November 3.

The two officials agreed that the situation in the field of respect for human rights was the most exact indicator of success in the overall process of democratization and development of all transition states, the statement said. Respect for human rights in Montenegro is far better than in war-stricken areas, Rehn told a news conference in Podgorica. That does not mean, however, that everything is perfect, Rehn said, adding that efforts should further be invested to reach international standards in human rights and even upgrade them.

During her first stay in Montenegro since her appointment last September, Rehn also met with Montenegrin Interior Minister Filip Vujanovic, Justice Minister Miodrag Latkovic and representatives of non-government organizations.

[08] YUGOSLAVIA - BRITAIN

One of the main targets of the British Diplomatic Mission in Belgrade is Yugoslavia's return to the international community, Roberts said. He pointed out that many British companies had already established economic ties with Yugoslavia, and that many more were very seriously interested in deals with Yugoslav partners. Roberts said he expected their full involvement in British-Yugoslav economic relations as soon as United Nations sanctions against Yugoslavia were formally lifted, after the elections in Bosnia.

Roberts said it was very important that Britain's biggest financial corporation Natwest had been appointed Chief Adviser for Yugoslavia's return to the Financial Market. He said it was also very important that Natwest leaders included former British Foreign Secretary Douglas Hurd and Bosnia Contact Group former member Pauline Nevill-Jones, who are both very well acquainted with the situation and position of Yugoslavia.

The British Ambassador specifically mentioned the issue of succession among the major issues in normalizing relations between Yugoslavia and the world community. He pointed out that the international community believed Yugoslavia was one of the successor states to the former Federation, while Belgrade maintained it was a continuation of the former Yugoslav Federation. Roberts said it was very important to find a joint solution. He said one such solution was the model under which Belgrade's stand would be accepted in principle, while this would have no direct effect in practice. The basic approach to the matter of succession should be political, because debates on who owns what and how much would not be efficient, he said.

Britain is trying to help in this area as well, Roberts said. Prominent legal adviser Sir Anthony Watts heads the Subcommittee for these issues which was appointed by High Representative of the international community for Bosnia Carl Bildt, he said. This body will help avoid high costs for legal fees by agencies which could in the end spent all the money and property of the former Yugoslav Federation which is under dispute, Ambassador Roberts said.

[09] HERCEG NOVI AND DUBROVNIK SIGN AGREEMENT ON WATER SUPPLY

After one year of negotiations, the two sides signed the Agreement which concerns Herceg Novi's water supply from the system of the Trebisnjica River, which passes through Southern parts of the Republika Srpska, the Serb entity in Bosnia. The System ends at Plate near Dubrovnik. The agreement also covers the maintenance of the water pipeline from Plate to the Yugoslav border.

This Agreement is of crucial importance for Herceg Novi because it will ensure normal water supply from the Trebisnjica system, Djuro Cetkovic, the Head of the Herceg Novi Negotiating Team said. He said that the Agreement strictly defined relations, obligations and rights of both sides and procedure for arbitration in case of violation of the Agreement.

The Head of the Dubrovnik Negotiating Team, Luka Glavina, welcomed the signing of the Agreement and said that it would ease tension in this part of the border area.

[10] YUGOSLAVIA: FOREIGN-CURRENCY RESERVES

Gazivoda said in a statement published in the Belgrade daily Politika Wednesday that the National currency's rate of exchange and the money supply were stable because the Central Bank was not issuing money without coverage. The abrupt increases in prices of recently have no justification in view of the dinar's stable exchange rate, Gazivoda told the daily. He noted that price increases threatened the functioning of the economic system as a whole.

[11] KRAJISNIK - LOPEZ

Krajisnik conferred with the Commander of the Multi-National Peace Implementation Force (IFOR) on the implementation of the Dayton Peace Accords. This is the first meeting between Admiral Lopez, who recently replaced Admiral Leighton Smith, and representatives of the Bosnian Serb entity.

Following the talks, the U.S. Admiral said he hoped he would have the opportunity at every next meeting to speak about progress which will come from peace and democratic institutions, as well as free entrepreneurship.

Krajisnik specified that the exchange of Prisoners of War would be a priority issue over the next few days. He said the talks with Lopez had also covered arbitration on inter-ethnic demarcation around the Northern Bosnian town of Brcko, and cooperation with the Hague Tribunal for War Crimes committed in former Yugoslavia.

[12] MUSLIMS, CROATS DO NOT COMPLY WITH AGREEMENT ON EXHUMATION

The Government of the Serb entity in Bosnia-Herzegovina consequently insists on equal treatment by the international community and requests the respect of the principle of reciprocity as regards exhumations. If these requests are not met, R.S. will not allow exhumations in its territory, the Pale Government said.

[13] COUNCIL OF EUROPE SATISFIED WITH MOSTAR AGREEMENT

The Agreement was long in materializing taking into account Croatia's commitments made with the aim of joining the Council of Europe, Fischer said in a statement presented to Tanjug on Wednesday. She expressed hope that the agreement would pave the way for real cooperation between Muslims and Croats in administering Mostar and for a lasting unification of the town, and that such cooperation would be reflected also throughout the Muslim-Croat Federation.

[14] CROATIA PREVENTS RETURN OF EXPELLED SERBS

The warning is contained in a letter addressed by the Committee to the Embassies of the Big Powers in Zagreb, the President of the Federal Republic of Yugoslavia Zoran Lilic, the Presidents of Serbia and Montenegro Slobodan Milosevic and Momir Bulatovic, the leadership of the Srem-Baranja Region and various institutions and figures.

The letter points to the latest Croatian plan for settling Croats from Janjevo, Serbia's Southern Province of Kosovo and Metohija (Kosmet), in Kistanje, near Knin, Serb Krajina. The plan has caused justified consternation among the Serb refugees from the said area of the Serb Krajina temporarily accommodated in the Srem-Baranja Region, and jeopardizes a peaceful and just resolving of overall relations between Serbs and Croats, the letter says. The plan is contrary to the Dayton Agreement and violates the fundamental human rights of the people who used to inhabit the area for centuries, the letter underlines.

The letter also appeals to all addressees to do all they can to foil this plan for changing the ethnic structure of Serb areas.

[15] UNHCR: CROATIA DISCOURAGES SERB RETURN TO KRAJINA

Another problem was the existence of 'secret lists' of Serbs sought after by the Croatian Authorities for alleged crimes against Croatians, Redmond told reporters in Geneva. 'No one knows who is on the list,' Redmond said, adding one Serb had been arrested by Croatian Police after coming to Krajina to visit relations.

Redmond said about 10,000 Serbs in Krajina were being harassed and intimidated. Reports of this were discouraging most Serb refugees from returning, he said. Seven months since the Dayton Peace Accords have been signed and fewer than 100 people have returned to Krajina, said Redmond.

Redmond said the UNHCR would like to see the imposition of law and order in by the Authorities. What is happening in Krajina certainly does not encourage people of going back, he said.

According to the latest figures of the UNHCR, only 41 persons have returned to Croatia, and about 1,000 applications of Serbs to go back are being treated. Croatians alone have been returning, said Redmond. Croatia claims around 7,000 to 8,000 Serbs have returned to Croatia, but Redmond said the UNHCR had no record of this and did not know the names or locations of these people.

The UNHCR and International Committee of the Red Cross said they believed about 3,500 people to be particularly vulnerable in Krajina. These people live in remote areas, many are elderly and disabled and in need of assistance. The best solution would be for those persons to re-establish community life with their families. Croatia insists on applications for the return of Serbs to be treated on a case to case basis, which means they will remain refugees for a long, long time, said Redmond.

[16] GHALI URGES EXTENSION OF PEACE MISSION IN EAST SLAVONIA

Considering the situation in the Region, it is unrealistic to expect all remaining tasks to be carried out until the expiry of the UNTAES mandate, said Ghali and proposed that the Temporary Administration mandate, which expires on january 15. 1997, be extended to the end of the year.

The report underscored the responsibility of both sides to cooperate, reminding the Serbs that it was to their interest to fully cooperate with UNTAES, and criticizing Croatia for turning a deaf ear to its commitments. Ghali proposed that Croatia be reminded of its obligation to cover expenses for UNTAES. Unless talks with the Croatian Government are satisfactory, Ghali said he might have to report to the Council that Zagreb had failed to comply with its obligations.

[17] EUROPEAN UNION INVESTS IN SERB REGION OF SREM-BARANJA

'With this E.U. investment, the people will finally see economic benefits of the United Nations Mission,' Hadzic said in talks in Erdut with the Netherlands Ambassador to Croatia Jozef Sefers.

After the talks with Hadzic, the Netherlands Ambassador said the European Union believed the UNTAES mission should be successful. He said it was very important that the local Serb community present their views and stands on accepting Croatian authority. Sefers also said it was very encouraging that the Serb side was ready to continue contributing to the realization of the Erdut Agreement with its cooperativity.

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