Yugoslav Daily Survey 96-05-15

Yugoslav Daily Survey Directory

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

CONTENTS

[01] MILOSEVIC, SMITH ON IMPLEMENTATION OF DAYTON AGREEMENT

[02] YUGOSLAV PREMIER: CRUCIAL MOMENT IN BUILDING NEW ECONOMIC SYSTEM

[03] YUGOSLAVIA, HUNGARY SIGN TRADE AGREEMENT

[04] INTERNATIONAL CONFERENCE ON ECONOMIC DIMENSIONS OF DIPLOMACY

[05] YUGOSLAVIA WILL NOT STOP PROMOTING RELATIONS WITH NAM MEMBERS

[01] MILOSEVIC, SMITH ON IMPLEMENTATION OF DAYTON AGREEMENT

Both sides agreed that cooperation in the implementation of the peace plan had helped stabilize peace in war-affected regions, the statement said.

Both sides said they expected progress to be made also in the implementation of civilian and political aspects of the peace agreement, the statement said and added that economic reconstruction and preparations for the coming elections for legal institutions in both Bosnian entities were a priority. In this context, the importance of the freedom of movement, which should be promoted, was specially stressed, the statement said.

The statement quoted both sides as saying that the easing of tension in the regions of former hostilities was an important condition for the strengthening of stability and overall normalization of the situation, which requires primarily a strict observation of obligations taken by the sides to the agreement and political settlement of all issues.

The talks were also attended by Yugoslav Foreign Minister Milan Milutinovic and Charge d'Affaires of the US Embassy in Belgrade Lawrence Butler, the statement said.

[02] YUGOSLAV PREMIER: CRUCIAL MOMENT IN BUILDING NEW ECONOMIC SYSTEM

Kontic said that favorable conditions had been created for a radical break-through in the finalization and arrangement of a market-oriented economic system, which was 'imperative for opening better development prospects.'

He said that a speedy normalization of relations between Yugoslavia and the world was a prerequisite for a regular functioning of state and economic institutions and for the setting up of new, modern institutions and practices, compatible with institutions and practices of highly developed industrialized economies, especially in the European Union.

Economic stability and development are not current tasks, but permanent and unavoidable aims, inseparable from the over-all prosperity of the country, said Kontic.

Addressing the Parliament, Kontic said: 'On that basis, Yugoslavia can expect support from international financial and other institutions and foreign partners in general.' He said that the ownership structure, despite some political changes, had remained insufficiently adapted to open market economy requirements.

Kontic said that the international blockade of Yugoslavia had dimmed the success of certain firms, but that some firms would nevertheless have to go bankrupt, and most others to adapt to new standards.

He said that the Yugoslav Government was 'preparing an expansive developmental policy, even though its success will depend also on outside factors.' Therefore, he said, 'full attention is paid to Yugoslavia's economic and political approach to the world.' Kontic said there were no difficult obstacles in communication between Yugoslavia and the world on essential economic issues.

The speedy normalization of relations with international financial-trade organizations and with European integrations present Yugoslavia's strategic interest, Kontic said. He added that, in spite of most EU countries being willing to regulate relations with Yugoslavia, 'there are certain political preconditions to the global development of economic relations.'

That is why the so-called realization in phases is quite acceptable to Yugoslavia, in which diplomatic relations are raised first, and then trade prefentials restored, and then Yugoslavia is included in the international phare program, he said.

'The Federal Government has therefore adopted a program for work on achieving harmony between Yugoslavia's legal system and EU regulations,' Kontic said.

Pointing out that there is no dynamization of economic activities or structural changes without a normalization of relations with international financial and trade organizations, Kontic pointed out that dialogue had already been opened with them. Accord has been reached with many countries for the continued implementation of inter-state agreements of the former Yugoslav Federation, which has realized the legal continuity of the Federal Republic of Yugoslavia, he said.

'We are not denying any economic aspect of the return of our membership rights in international organizations, but political issues are in the forefront, such as continuity and succession,' Kontic said, pointing out that these were 'categories which can have major consequences on our (Yugoslavia's) international position.'

The Yugoslav Government has therefore opted to separate property-legal and economic issues, which are within the authority of international financial institutions, from political-legal issues, of which the United Nations are in charge, Kontic said.

Underscoring the importance of the normalization of relations with the World Trade Organization, the Yugoslav Prime Minister said Yugoslavia would turn to a pragmatic solution which would not disrupt the principled national options.

'The promotion of economic-system-related conditions is linked with the promotion of international cooperation,' Kontic concluded.

[03] YUGOSLAVIA, HUNGARY SIGN TRADE AGREEMENT

After signing the agreement, the two ministers said they would do everything to re-estabish links between Yugoslav and Hungarian partners and to attain the level of trade from before the UN Security Council imposed sanctions on the Federal Republic of Yugoslavia.

Siradovic said that Yugoslav economists want to cooperate with everyone, especially with their neighbors. He said that Yugoslavia is currently adopting a new law aimed at liberalizing foreign investments to an even greater extent.

[04] INTERNATIONAL CONFERENCE ON ECONOMIC DIMENSIONS OF DIPLOMACY

Bulajic said that the Balkan countries were especially interested in becoming EU associate members and in adapting trade policies to fit the EU model. He said that this could be the most efficacious way to overcome distrust and occasional irrational behavior in the Balkans.

Bulajic said that the civil war in former yYgoslavia and some other matters outstanding between the Balkan countries had moved southeastern Europe out of the focus of the desired integration over the past five years.

He said that the trade embargo against Yugoslavia had caused damage to all countries of the region and hindered the development of inter-state cooperation, while it had not contributed, not in the least, to the peace process.

On the other hand, Bulajic said, the initiatives for Balkan cooperation which had been launched, confirmed a strong desire of all countries of the region to surpass the inherited problems which burden their relations and actively to take part in European integration processes. This includes the restoration of economic and other ties with the countries in former Yugoslavia, he said.

Bulajic said that 'commercial diplomacy' could play a crucial role in the region and finally transform the Balkans from 'a powder keg of Europe' into 'a region of peace and prosperity.'

[05] YUGOSLAVIA WILL NOT STOP PROMOTING RELATIONS WITH NAM MEMBERS

Yugoslav Assistant Foreign Minister Zivadin Jovanovic said that non-alignment was not equally important in the world today as in the cold war era and that it was not equally important for Yugoslavia too, but that it was still interested in keeping its place in the Movement which rightly belongs to it as one of its founders and in participating in all NAM fora.

The majority of NAM members have understood the crisis in the former Yugoslavia and have not joined campaigns against Yugoslavia, Serbia and the Serbian people, Jovanovic said and quoted Zimbabwe as an example.

He said that the majority of NAM members had expressed their disagreement with anti-Yugoslav campaigns by not participating in voting when the United Nations passed resolutions condeming Serbs and Yugoslavia.

Yugoslavia maintained its contacts with the majority of NAM members during the sanctions, Jovanovic said and added that ten out of 13 countries which kept their Ambassadors in Belgrade were non-aligned.

He stressed the importance of economic cooperation with non-aligned countries and said that an increasing number of Yugoslav companies were present in these countries.

Jovanovic said that cooperation with non-aligned countries was not incompatible with Yugoslavia's European orientation but that it was under different conditions, of different proportions and different contents.

Yugoslavia's strategic orientation is directed towards promoting cooperation with its neighbours and the European integrations, primarily the European Union, Jovanovic said. He said that there were wide possibilities for cooperation with regional countries on a multilateral basis, the same on which Europe's industrial countries have already been linked.

Yugoslavia favours gradual promotion of cooperation with wider region, Jovanovic said and urged its strengthening through bilateral arrangements and regional linking.