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DATE=10/10/00

TYPE=CORRESPONDENT REPORT

TITLE=U-S / YUGOSLAVIA (L)

BYLINE=NICK SIMEONE

DATELINE= STATE DEPARTMENT

CONTENT=

VOICED AT:

INTRO: Five days after the fall of Slobodan Milosevic, the United States has dispatched a senior envoy to Belgrade to start the process of resuming diplomatic relations with Yugoslavia and help jump-start the country's devastated economy. Correspondent Nick Simeone has more from the State Department.

TEXT: Jim O'Brien, President Clinton's special advisor on democracy in the Balkans, is heading to Yugoslavia for what will be the first high level meeting with new President Vojislav Kostunica.

The Clinton administration is anxious to get on with the process of lifting U-S sanctions against a country whose economy has been virtually ruined from wars in former Yugoslav republics and embargoes imposed during the Milosevic years.

State Department Spokesman Richard Boucher:

/// BOUCHER ACT ///

We'll want to discuss how we can assist with the process of rebuilding and more generally with the process of integrating the new government in Serbia into international institutions.

/// END ACT ///

The European Union has already announced a partial lifting of sanctions, as well as pledges of billions of dollars in development aid. Washington is expected to take similar steps soon as it seeks to restore ties.

/// BOUCHER ACT 2 ///

As far as re-establishing formal diplomatic relations, this is still being discussed with the new government. We would hope to do this soon as well.

/// END ACT 2 ///

The U-S embassy in Belgrade has been closed since before last year's NATO air war over Kosovo. (SIGNED)

NEB/NJS/TDW






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