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DATE=10/12/2000

TYPE=CORRESPONDENT REPORT

TITLE=YUGOSLAVIA / U-S (L)

NUMBER=2-267848

BYLINE=EVE CONANT

DATELINE=BELGRADE

CONTENT=

VOICED AT:

INTRO: President Clinton's chief envoy to the Balkans has met with Yugoslav President Vojislav Kostunica. Correspondent Eve Conant reports from Belgrade the meeting came as President Clinton announced that the United States was relaxing most U-S sanctions against Yugoslavia.

TEXT: The meeting between Balkans advisor James O'Brien and President Kostunica was the first top-level dialogue between the United States and Yugoslavia since the break of diplomatic relations on the eve of NATO air-strikes in 1999.

Speaking to reporters after his meeting with the U-S envoy, President Kostunica said he was ready for dialogue with the West but stressed that territorial accords reached with international negotiators in the Balkans should be respected. He said his round of meetings with foreign leaders shows the new Yugoslav government is ready to reach out to the international community.

/// KOSTUNICA ACT ///

This was a conversation about many questions which concern both nations, both states. There was a gap in these communications. After this meeting we hope that we will bridge that gap and that our relations will normalize.

/// END ACT ///

In his comments to reporters, James O'Brien said that by relaxing sanctions, the United States was living up to a promise it had made to the people of Yugoslavia: When Milosevic went, the sanctions would also go. The US envoy congratulated the Yugoslav leader on moving toward democracy.

/// O'BRIEN ACT ///

The President (Kostunica) and I had a far ranging discussing. He told me about political developments in Yugoslavia and expressed his confidence that the democratic transition will be consolidated and move forward with new elections so that we are able to see democracy take root in all the institutions and republics and federal government.

/// END ACT ///

Mr. O'Brien said that technical issues are now the only obstacle to full diplomatic relations between Yugoslavia and the United States. However, both the European Union, which lifted some sanctions earlier this week, and the United States have yet to lift key financial sanctions that directly target ousted Yugoslav leader Slobodan Milosevic and his allies.

/// OPT ///

But U-S Ambassador to Yugoslavia William Montgomery told VOA the U-S government would, for now, show restraint in urging President Kostunica to extradite Mr. Milosevic to face war crimes charges in The Hague.

/// MONTGOMERY ACT///

Let's just re-establish relations. There are all sorts of issues we have to deal with and that's one of them. Let's just take it one step at a time. We have a president that's in office, but they're still trying to form a government. They don't have a prime minister, they don't have a government to deal with yet, so there's a number of steps down the road.

/// END ACT /// /// END OPT ///

The top level meetings come as parties in Slobodan Milosevic's socialist coalition are making it clear they plan to hold onto control of the Serbian government despite the opposition's announcement earlier this week that the parliament would dissolve itself and call early elections.

/// OPT /// A top advisor to President Kostunica, Zoran Djindjic, told VOA that democratic forces would urge people to protest in the streets if an agreement with the Serbian government is not reached soon. But he added that there was some frustration within Mr. Kostunica's own ranks that the new leader was not moving fast enough to purge military leaders appointed by Mr. Milosevic.

/// DJINDJIC ACT ///

We should resolve all the problems we can resolve. The army is one of these problems and we don't understand why we must wait. (There is not a substantive) difference between Mr. Kostunica and rest of the democratic opposition; we have the same goals -- but we understand that Mr. Kostunica will move not as quickly as we would."

/// END ACT ///

President Kostunica has yet to form his government but is expected to fill key cabinet positions in the coming days. (Signed)

NEB/EC/KL/PT






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