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DATE=10/08/00

TYPE=CORRESPONDENT REPORT

TITLE=YUGOSLAVIA / DIPLOMAT (L-O)

NUMBER=2-267635

BYLINE=STEFAN BOS

DATELINE=BELGRADE

CONTENT=

VOICED AT:

INTRO: One of the first Western diplomats to meet Yugoslavia's new president, Vojislav Kostunica, has promised the new leader a multi-million-dollar aid package and the lifting of sanctions. Stefan Bos reports from Belgrade that the comments were made by Norway's foreign minister, Thorbjoern Jagland.

TEXT: Speaking in front of the burned-out federal parliament building, Norway's foreign minister, Thorbjoern Jagland, told V-O-A he came to Belgrade with a message of reconciliation.

Although Yugoslavia's new president, Vojislav Kostunica, was only inaugurated Saturday, the foreign minister says the western community should no longer hesitate to lift the sanctions and invest in Yugoslavia.

In his talks with the new leader, Mr. Jagland made several promises.

/// JAGLAND ACT ///

I have reiterated what the Norwegian government said during the election campaign, that we are ready to support the new government financially. In the transitional period, we will get the sanctions recalled so that the whole international community can support the new government, and I think it is very important to get Yugoslavia into international cooperation again as fast as possible.

/// END ACT ///

He adds that Norway, which had close ties with the Serbs throughout history, will give about 17-million dollars to help rebuild Yugoslavia after a decade of wars. In addition, the country has plans to support other projects, including providing scholarships and involvement in the international Oil-For-Democracy program.

But some western diplomats warn that the international community should remain cautious because of concern over President Kostunica's alleged nationalism.

Like his ousted predecessor, Slobodan Milosovic, the new leader has already made it clear he wants to keep Yugoslavia united - a clear reference to Kosovo province and the republic of Montenegro, which have moved away from Belgrade's control. He has also criticized the NATO alliance, which bombed Yugoslavia last year before sending tens-of-thousands of peacekeepers to Kosovo.

But Foreign Minister Jagland believes the new atmosphere in Yugoslavia will make it easier to discuss those thorny issues.

/// JAGLAND ACT 2 ///

The most important thing Mr. Kostunica has said is that he wants to establish real democracy here and he wants to get Yugoslavia into the European framework cooperation. And that is the new basis for Yugoslavia, and I think it is easier to cope with Kovoso and Montenegro on this new basis.

/// END JAGLAND ACT ///

The Norwegian minister says he realizes that Mr. Kostunica will face political difficulties because of divisions within the same parties that supported him.

In addition, the Yugoslav leader is being pressured by the international community to extradite Mr. Milosovic to the U-N tribunal in The Hague for alleged war crimes. Mr. Jagland says international assistance is crucial to permit Yugoslavia's new president to overcome the difficult road ahead. (SIGNED)

NEB/SB/ALW