Military

DATE=10/17/00

TYPE=CORRESPONDENT REPORT

TITLE=YUGO / MONTENEGRO (L ONLY)

NUMBER=2-268084

BYLINE=STEFAN BOS

DATELINE=BUDAPEST

CONTENT=

VOICED AT:

INTRO: Yugoslavia's new president, Vojislav Kostunica, has failed in his attempt to persuade the leader of the country's smaller republic, Montenegro, to take part in the federal government. Stefan Bos in Budapest reports the development complicates Mr. Kostunica's efforts to keep the Yugoslav federation united.

TEXT: The Montenegrin president, Milo Djukanovic, praised the democratic changes in Yugoslavia's main republic, Serbia. But he made it clear that Montengro would not take part in the federal

government -- at least not yet.

Mr. Djukanovic said his government first wants to await the outcome of new elections in Serbia on December 23th before it could participate in national institutions.

Montenegro, which has moved towards independence, has expressed concern about the allies of ousted Yugoslav President Slobodan Milosevic who still dominate the Serbian parliament and government institutions. The leadership of Montenegro also is angry about a plan by President Kostunica to offer the federal prime minister's post to a former ally of Mr. Milosevic.

Despite the apparent setback on Tuesday, President Kostunica suggested he still hopes the Yugoslav federation can stay united by offering Montenegro more influence over federal power structures. In addition, he has even suggested changing the name Yugoslavia to the Union of Serbia and Montenegro.

In a possible sign of reconciliation, the Montenegrin leader referred to Mr. Kostunica's as Yugoslavia's president, which he had refused to do so far.

Mr. Kostunica made it clear he believes there still are difficulties ahead but that he is satisfied with the outcome of his first talks in Montenegro since he took office last week, ending 13 years of

Milosevic rule

Both the Yugoslav leader and the Montenegrin president suggested that with the ouster of Mr. Milosevic a new era has begun, which might prevent the further break up of what remains of Yugoslavia. (Signed)

NEB/SB/JWH