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DATE=1/31/2000 TYPE=CORRESPONDENT REPORT TITLE=U-S / MONTENEGRO (L-ONLY) NUMBER=2-258646 BYLINE=KYLE KING DATELINE=STATE DEPARTMENT CONTENT= VOICED AT: INTRO: The United States is providing more aid for democratic reforms in Montenegro, and is vowing to stand by the tiny republic in the event of military action by Yugoslav President Slobodan Milosevic. From the State Department, V-O-A's Kyle King reports. TEXT: Montenegro's Prime Minister Filip Vujanovic and the director of the U-S Agency for International Development [U-S A-I-D] signed a seven-million-dollar grant agreement in Washington Monday. The funds are the final installment of last year's 44- million-dollar U-S aid package. The money is to be used to support democratic institutions in the tiny republic, which together with Serbia, makes up what remains of the Yugoslav federation. Speaking to reporters at the U-S A-I-D office in Washington, Prime Minister Vujanovic said the funds open a new phase of cooperation with the United States and are important for building a civil society. /// VUJANOVIC LANGUAGE ACT, FADES UNDER /// Mr. Vujanovic says the U-S aid program is also important because it shows the United States accepts Montenegro as a partner. The United States has pledged an additional 37-million dollars this year. Montenegro's pro-Western policies have angered the more powerful Yugoslav government in Belgrade, which accuses Montenegro's leaders of undermining the Yugoslav federation // OPT // Last week, a Yugoslav court ordered Montenegro to stop using the German mark as its official currency. Montenegro's government took that action last November to protect its economy from the effects of high inflation in Serbia, the other remaining Yugoslav republic. // END OPT // The United States has repeatedly expressed concern that Yugoslav President Slobodan Milosevic may try to oust Montenegro's pro-western leaders. U-S Undersecretary of State for Political Affairs Thomas Pickering told reporters in Albania Monday that the United States will stand firm against any military action by Milosevic. Yugoslav army troops in Montenegro are controlled by Mr. Milosevic. Montenegro's pro-Western government controls the police. (Signed) NEB/KBK/WTW 31-Jan-2000 16:32 PM EDT (31-Jan-2000 2132 UTC) NNNN Source: Voice of America .





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