Military

DATE=11/13/00

TYPE=CORRESPONDENT REPORT

TITLE=YUGOSLAVIA / AID (L-O)

NUMBER=2-269180

BYLINE=BARRY WOOD

DATELINE=WASHINGTON

INTERNET=YES

CONTENT=

VOICED AT:

INTRO: Officials from the two republics that make up what remains of Yugoslavia agree that the country needs foreign aid. But at a private sector conference Monday in Washington on economic assistance to Yugoslavia, a Montenegrin official made clear the republic wants to maintain a course of economic independence. V-O-A's Barry Wood reports that the larger republic, Serbia, is burdened by serious economic problems, and reforms are likely to be slowed by political upheaval.

TEXT: Dragana Djuric, an economic advisor to Yugoslavia's new president, Vojislav Kostunica, says major shifts in economic policy are unlikely until after the elections to choose a Serbian parliament on December 23rd. Ms. Djuric emphasized that it has only been five weeks since Mr. Kostunica became president in an election that sparked a popular revolt to oust Slobodan Milosevic, who is blamed for leading the country into war and poverty. She suggested there will be no quick decisions to lift price controls or introduce a new currency to achieve monetary stability.

/// DJURIC ACT ///

We are now in a fluid situation for the moment. It takes time to organize the state and to see, because we are changing judges (in the courts), we are changing directors (of companies), we are changing everything. That's the problem. There is a vacuum in state organization, as I can say.

/// END ACT ///

But while Ms. Djuric pleaded for time, representatives from Montenegro said speed in economic reform and separation from Serbia are their priorities. Predrag Nenezic, an advisor to Montenegro's prime minister, said his republic won't give up any of the economic power and autonomy it has achieved over the past year.

/// NENEZIC ACT ///

It should be clearly stated and understood that Montenegro could not possibly move backwards and restore the previous condition, nor could it be expected to renounce those functions and authorities it adopted in order to protect itself in the area of the economy. Therefore, Montenegro has the full economic sovereignty, starting from fiscal, then foreign trade, visa and monetary. And these functions and authorities severely abused by Milosevic, may not be reverted by Montenegro. That represents the foundations of our future relations with Serbia.

/// END ACT ///

Montenegro, which comprises less than 10-percent of Yugoslavia's population, intends to hold a referendum on independence next year. It has this week outlawed the use of the Yugoslav dinar and accepts only the German mark for transactions within Montenegro.

Although it is clear that relations between the two constituent republics of Yugoslavia are still being defined, both sides admitted that they are in urgent need of assistance. Mr. Nenezic said the Montenegrin economy has shrunk by 50 percent in the past decade, and that official unemployment is 35 percent.

Yugoslav officials are seeking to normalize relations with the International Monetary Fund so that Yugoslavia can, for the first time in a decade, receive money from international institutions, which shunned the country during Mr. Milosevic's decade-long rule. (Signed)

NEB/BDW/TDW