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TYPE=CORRESPONDENT REPORT

TITLE=U.S. / YUGO (L 2ND UPDATE)

BYLINE=DAVID GOLLUST

DATELINE=WHITE HOUSE

CONTENT=

VOICED AT:

INTRO: President Clinton, expressing hope a democratic transformation in Yugoslavia is at hand, has reiterated U-S readiness to quickly drop sanctions against Belgrade once Slobodan Milosevic leaves the scene. VOA's David Gollust reports from the White House.

TEXT: The President is getting continual updates from his national security advisers on the unfolding situation in Belgrade and is again making clear the administration's readiness to drop the sanctions when a democratic government assumes control.

In an address to students at Princeton University in New Jersey, he expressed admiration for the demonstrators crowding central Belgrade, as well as the Yugoslav police who refused orders to use lethal force against striking coal miners on Wednesday. The President said "the march of freedom is gaining new ground:"

///CLINTON ACTUALITY///

They want their country back, they want to be free. They voted and they want their vote respected. The people of Serbia have spoken with their ballots. They have spoken on the streets. I hope the hour is near when their voices will be heard and we can welcome them to democracy, to Europe, to the world's community. When they do, we will move as quickly as possible to lift the sanctions and build the kind of responsible partnership that the people there deserve."

///END ACT///

The sanctions regime against Yugoslavia began during the Bosnian conflict and was tightened two years ago amid the Serb crackdown on ethnic Albanians in Kosovo. The measures have brought the country's economy to a virtual standstill.

In an event earlier in the day at the White House, Mr. Clinton said military intervention in the civil uprising in Yugoslavia was inappropriate and that the United States should not do or say anything that could strengthen Mr. Milosevic's hand.

/// OPT /// The United States has more than five thousand troops on peacekeeping duty in Bosnia and nearly seven thousand similarly deployed in Kosovo but Pentagon officials say they are not on a heightened state of alert and that no unusual Yugoslav army movements have been noticed. /// END OPT ///

Clinton National Security Adviser Sandy Berger said the administration was in contact with Moscow, which has heavy influence in Belgrade, to try to persuade the Russian leaders to as he put it: "add their voice" to that of the international community in supporting the will of the Serbian people. (Signed)

NEB/DAG