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DATE=10-14-2000

TYPE=CORRESPONDENT REPORT

TITLE=YUGOSLAVIA GOVERNMENT (L-only)

NUMBER=2-267929 assignments.neb-wire

BYLINE=STEFAN BOS

DATELINE=BELGRADE

INTERNET=YES

CONTENT=

VOICED AT:

INTRO: Talks between Yugoslav President Vojislav Kostunica's supporters and allies of ousted Slobodan Milosevic failed early Saturday to finalize an agreement on a transitional government and new elections in the federation's main republic, Serbia. The failure is seen as a sign of continued political instability more than a week after Mr. Milosevic was forced out of office in what is being called a "Velvet Revolution". From Belgrade, Stefan Bos reports there is concern on the streets of Yugoslavia's capital that the latest developments could lead to violence.

TEXT: ///SFX OF SINGING, THEN UNDER TO...///

The song goes "This is the train to Serbia. Milo lost the elections. He tells his wife Mirjana: "Let's go to China".

The new song about former President Slobodan Milosevic has become an instant hit.---Shops selling the compact disc with this and other anti-Milosevic hits can't nearly keep up with demand, since the Yugoslav strongman was ousted in what has been called a "Velvet Revolution" more than a week ago.

But Yugoslavia's new leader, Vojislav Kostunica, has warned that the former ruler may not be packing his bags just yet. The new leadership is concerned about the refusal by the pro-Milosevic Government of Yugoslavia's main republic Serbia to resign and dissolve Parliament until new elections December 24th. A late night meeting between Mr. Milosevic's Socialist Party and President Kostunica's Democratic Opposition of Serbia broke up before dawn on Saturday, apparently with only an outline of what may become an agreement.

In addition, Mr. Kostunica's aides say they are concerned about attempts by Milosevic allies to regain control over the army and the 100-thousand strong police force. Supporters of President Kostunica, who is in France for talks with European Union leaders on the country's political instability, have threatened to hold new street protests if Mr. Milosevic's cronies refuse to back down.

The new tension in Yugoslavia is one reason why Serbs such as 20-year old Maria Kaplarevic, who sells CDs with anti-Milosevic songs, want to leave Belgrade

///KAPLAREVIC ACT///.

I always wanted to go in some other country to live. But now my boyfriend is saying we have to stay here, because maybe something will be changed. I don't know, I think everything in this country is too much, bad."

///END ACT///

Maria Kaplarevic adds that Mr. Milosevic and his supporters do not want to give up their power and money, much of which has been reportedly transferred to foreign bank accounts. She fears it may take another ten years before Yugoslavia is economically strong enough to join the family of democratic nations.

///SFX OF BELGRADE MARKET, ESTABLISH, THEN FADE TO...///

Until the time the country returns to economic health the sales man and woman of Belgrade's fruit and vegetable market are trying to survive on incomes of about 25 dollars a month. 43-year old Radica Stevanovic, who sells apples, hopes Yugoslavia's Velvet Revolution will succeed, so she and her two teenage children will experience a better life. But Ms. Stevanovic, who lived trough 13 years of Milosevic rule, expresses concern that radicals from the former government will somehow try to stay in power.

///STEVANOVIC ACT TWO///

Ms. Stevanovic explains that she fears the radicals could make a political comeback. For sales people like her, that could mean higher inflation and lower sales, because the Milosevic government printed money to pay its debts, without regard to principles of a market economy. To make her point, Ms. Stevanovic opens her purse and shows a stack of freshly printed dinars, the Yugoslav currency. She says "under Mr. Kostunica, life has to become better."

Ms. Stevanovic adds that she hopes that the people of Yugoslavia will still have cause to celebrate after the immediate euphoria of the revolution wears off.

///SFX OF MUSIC, ESTABLISH THEN FADE TO...///

But the latest political turf battles in Yugoslavia suggest that the popular Serb song about the demise of Mr. Milosevic, and his power base, may remain wishful thinking for some time to come. (SIGNED)

NEB/SB/PFH/PLM