Military

DATE=10/26/00

TYPE=CORRESPONDENT REPORT

TITLE=YUGO / BALKANS (L-ONLY)

NUMBER=2-268485

BYLINE=STEFAN BOS

DATELINE=BUDAPEST

CONTENT=

VOICED AT:

INTRO: Three weeks after an uprising ousted Yugoslav leader Slobodan Milosevic, Yugoslavia Thursday officially joined the Balkans Stability Pact. Stefan Bos in Budapest reports the invitation came despite concern that Yugoslavia's new president, Vojislav Kostunica, is not fully cooperating with the United Nations War Crimes Tribunal.

TEXT: At a ceremony in Romania's capital, Bucharest, the Balkans Stability Pact's coordinator, Bodo Hombach, handed a large golden key to the special envoy of Yugoslavia's President Vojislav Kostunica to mark the country's entry into the international aid program.

Mr. Hombach described it as "a historic day" for the newly democratic Yugoslavia.

Mr. Hombach said that the international community wants to look to the future by providing the European Union's promised emergency aid package, worth around 166-million dollars, to help Yugoslavia through what he called "the difficult months ahead."

Despite demands by neighboring nations - such as Albania - that former President Slobodan Milosevic should be brought to justice for alleged war crimes before full cooperation is resumed, Western leaders invited the country into the Balkans Stability Pact.

President Kostunica has made it clear that handing over his predecessor to the United Nations War Crimes Tribunal in The Hague would lead to chaos in his country. Although American and European Union diplomats said they still want Mr. Milosevic to stand trial, they do not want to delay aid for Yugoslavia as the country prepares for winter.

Balkans Stability Pact members will meet again on November 14th to discuss major reconstruction projects in Yugoslavia, which was heavily damaged by NATO bombing last year. The European Union has already promised to take part in the reconstruction of bombed bridges, as well as the clearing of debris blocking the Yugoslav side of the Danube River.

/// OPT /// The Balkans Stability Pact was established last year in response to the Kosovo crisis. The program is modeled after the Marshall Plan that helped Europe recover from World War Two. It is aimed at providing economic support to the countries of southeastern Europe in return for democratic reforms. /// END OPT ///

Balkan analysts say more economic support is needed to boost the credibility of the new Yugoslav leadership because democracy in the country is still fragile. Elderly Yugoslavs are already warning that President Kostunica may become a victim of what they call a "hunger revolution," as prices have soared in recent weeks. In addition, average salaries have plummeted to around 30 dollars a month and unemployment in Yugoslavia is believed to be about 50 percent.

/// REST OPT ///

At a summit Wednesday in the Macedonian capital, Skopje, President Kostunica told the leaders of neighboring countries that Yugoslavia is now committed to cooperation instead of conflict. But Western diplomats say that it will take time before the wounds of recent conflicts will have healed completely in the volatile Balkans. (Signed)

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