Belgrade, March 16, 2007

KOSOVO METOHIJA

• AHTISAARI'S PROPOSAL PRESENTED TO BAN KIMOON
• KOSOVO SERBS CONCERNED, 3 YEARS AFTEE VIOLENCE
• KOSTUNICA: PROPOSAL IS NOT FOR SC, SOLUTION LIES IN FRESH NEGOTIATIONS
• ALBANIANS CANNOT RETURN UNDER SERB RULE, SAYS WISNER
• RUECKER ON NEW MUNICIPALITIES, DECENTRALIZATION
• TITOV: PREMATURE ACCELERATING OF KOSOVO PROCESS
• KOSACHOV: HUMAN RIGHTS FIRST, THEN U.N. SECURITY COUNCIL

• DRASKOVIC CONGRATULATES MONTENEGRO ON SIGNING SAA
• MISCEVIC: FIVE MONTHS BETWEEN RESUMING TALKS AND THE SAA
• LECTURE IN THE CENTER FOR EUROPEAN STUDIES OF THE PRESTIGIOUS PEOPLE'S UNIVERSITY IN BEIJING
• INDONESIA SUPPORTS TERRITORIAL INTEGRITY OF SERBIA
• INCREASE PRESSURE ON HUNGARY OVER KEPIRO, SAYS ZUROFF
• BELGRADE HOSTS CONFERENCE ON PROPERTY FORFEITURE
• IMF RECOMMENDS BUDGET SURPLUS IN 2007
• SERBIA REPAYS FINAL INSTALLMENT OF DEBT TO IMF
• MILOSAVLJEVIC SUPPORTS EUROCHAMBRES DECLARATION

NEW YORK, Mar 15 (Beta)-The deputy U.N. Envoy for Kosovo, Albert Rohan, on March 15 presented the proposal for the solving of the province's status to U.N. Secretary General Ban Kimoon.

According to a report of the Serbian Broadcasting Corporation, the debate on Kosovo in the Security Council should begin on March 26.

The contents of U.N. Envoy Martti Ahtisaari's document would not be announced in public before its translation into the languages of all Security Council member countries, which should be completed in the next ten days.

An attachment to the proposal being presented to the U.N. on March 15 unequivocally recommends independence for Serbia's breakaway Kosovo province, political sources said.

A source in the U.N.run province told Reuters that it counsels "independence under international supervision." Another source confirmed the information, saying that the document makes frequent references to independence for Kosovo.

KOSOVSKA MITROVICA, March 16 (Tanjug) - The political representatives of Kosovo Serbs said on Friday , three years after the March violence in Kosovo and Metohija, they were still concerned about the absence of the rule of law in the province. Serbian List for Kosovo and Metohija (SL) leader Oliver Ivanovic has told Tanjug that the chief perpetrators of murders, demolition of Serbian houses, churches and monasteries had not been found. Three years ago, on March 17 and 18 , the anti-Serb violence in Kosovo claimed 19 lives, eight of them Serbs, some 800 Serbian houses were torched and damaged, and 34 Serbian shrines were torched and desecrated. Some 4,000 Serbs were driven out of their homes, and they have not returned to them to date. More than 900 people were slightly or seriously injured in the rioting.

BELGRADE, Mar 15 (Tanjug) - Serbian Prime Minister Vojislav Kostunica on Thursday stated that Martti Ahtisaari's proposal for Kosovo and Metohija does not meet any of the conditions for a debate at the Security Council, evaluating that a solution lies in a fresh negotiation process. "First of all, this [Ahtisaari's] proposal does not meet formal requirements, because it is obvious that the solution is not a compromising one, but that Ahtisaari had taken one, the Albanian, side and had drawn up a one-sided proposal," Kostunica said in his statement with Tanjug. Premier Kostunica evaluated that Ahtisaari had thus also violated the leading principles of the Contact Group, under which a compromising and mutually agreeable solution should be found. "It is by far more important to underscore that Ahtisaari's proposal essentially does not meet the requirements for a debate at the Security Council, in view of the fact that the proposal bluntly violates the UN Charter and fundamental principles of inviolability of borders and respect of sovereignty and territorial integrity of internationally recognized states," underscored Kostunica. "That is why Serbia rejected Ahtisaari's proposal as unlawful and illegitimate," Kostunica told Tanjug. "We are confident that the Security Council may not back a proposal that is directly opposing the UN Charter," underscored Kostunica. The Prime Minister underlined that "Serbia sees a solution in starting a fresh process of real and true negotiations this time, which would lead to reaching an agreement, in accordance with international law and the Constitution of Serbia."

BRUSSELS, Mar 15 (Beta)-The U.S. Envoy for Kosovo, Frank Wisner, stated in the Belgian Senate on March 15 that U.N. Envoy Martti Ahtisaari has explored "all roads" for finding a solution for the status of Kosovo and that this issue should be referred promptly to the U.N. Security Council for resolving.

"Unfortunately, events from the 1990s have been so shocking that it is impossible to imagine the Albanians returning under Serb rule," Wisner said, warning that, in the case of a Russian veto, "Kosovo would burn and the victims will be the Serbs."

Wisner said Ahtisaari's plan would be presented in principle before the U.N. on March 26, and that an initial debate would be held in the Security Council between April 1 and 3.

"I expect a conclusion at the end of April or the beginning of May, since time is not on our side," an U.S. official said.

The Russian ambassador to Belgium, Vadim Lukov, said on March 15 that, according to the Helsinki Final Act from 1975, state borders cannot be changed without the involved sides giving explicit consent.

"We do not wish to be bigger Serbs than the Serbs themselves, but we believe that not all options have been explored and that diplomacy should be given a chance," Lukov said.

PRISTINA, March 16 (Tanjug) - Chief of the United Nations Mission in Kosovo (UNMIK) Joachim Ruecker assessed on Thursday that the proposed plan on decentralization in Kosovo envisages the setting up of new municipalities in which the responsibilities of institutions at the local and central level of government in the province will be clearly separated. The best policy for citizens everywhere, not only in Kosovo, is to enjoy a high level of local self-administration, Ambassador Ruecker said at a meeting with representatives of the Serbian and Croatian community in the municipality of Vrbovac, UNMIK released in a statement. A large part of status proposals deal with the ensuring of security for the Serb and other communities in Kosovo, that they feel safe and have a successful future in Kosovo, Ambassador Ruecker said.

MOSCOW, Mar 15 (Tanjug) - Russia believes that accelerating the process of resolving the future status of Kosovo is premature without the approval of both sides, the Foreign Ministry said Thursday. Deputy Foreign Minister Vladimir Titov made this statement meeting the US Ambassador to Moscow William Burns. Discussing the situation in resolving the Kosovo issue, Titov said it is premature to accelerate developments in the absence of agreement of the parties to the process, the ministry release says.

MOSCOW, Mar 15 (Beta)-Head of the Russian Parliament's International Affairs Committee Konstantin Kosachov said on March 15 that the U.N. Security Council should not review U.N. special envoy Martti Ahtisaari's plan for Kosovo until Resolution 1244 regarding human rights was implemented in full in Kosovo.

"I am convinced Russia should back a solution for the status of Kosovo which first must be supported by Belgrade. And since Serbia is now against Ahtisaari's plan for granting Kosovo limited sovereignty, I do not believe that Russia will support the document either," Kosachov told the news agency Interfaks.

He went on to say that the decision on Kosovo should not be rushed. "Today there are no specific grounds and reasons that would call for the international community immediately deciding Kosovo's status," the Russian representative said.

BELGRADE, Mar 15 (Beta)-Serbian Foreign Minister Vuk Draskovic on March 15 congratulated Montenegro on its signing the Stabilization and Association Agreement (SAA) with the European Union.

Draskovic sent greetings to Montenegrin Foreign Minister Milan Rocen, the Serbian Foreign Ministry announced.

Montenegro began the negotiations on the agreement together with Serbia, within the state union of Serbia Montenegro, in October 2005. In May 2006, talks were suspended because of the country's insufficient cooperation with the Hague tribunal, and Montenegro continued them after becoming independent in September 2006.

BELGRADE, Mar 15 (Beta)-Head of the Serbian government's Office for Association with the EU, Tanja Miscevic, expects Serbia will directly after forming a new government and a clear resolve to cooperate in full with the Hague tribunal be in the same situation as Montenegro, which initialed a Stabilization and Association Agreement (SAA) with the EU on March 15.

She told BETA that five months after resuming SAA talks may be enough for Serbia to initial the agreement.

Following Montenegro's initialing of SAA, Miscevic said that this on the whole was the most important moment for Montenegro as an independent state since the start of the process.

The Serbian delegation will next week in Brussels continue with the technical round of the negotiations, Miscevic announced, pointing out that the technical agreements were to be signed by late March or early April.

The EU talks participants estimated that after the reopening of the negotiating process Serbia would need two to five months to initial its own SAA, Miscevic pointed out.

Beijing, Mar 15 (Beta)-Serbia is very appreciative of the principled stand China has so far demonstrated on the solving of the status of Kosovo, the Serbian ambassador to China, Miomir Udovicki, stated at a lecture held in the Center for European Studies of the prestigious People's University in Beijing.

Udovicki pointed out that China's request was the only proper way to find a solution for Kosovo reaching an agreement through fundamental dialogue of the two sides, with no third parties imposing solutions, and with a respect for international law and the U.N. Charter.

The participants of the discussion demonstrated a very high degree of understanding for Serbia's position, stating that the secession of Kosovo would not only go against fundamental international principles, but also be a dangerous precedent for the entire world.

BELGRADE, Mar 15 (Beta)-Indonesia supports the territorial integrity of Serbia, the newly appointed Indonesian ambassador in Belgrade, Mohammad Abduh Dalimunde, stated on March 15.

Dalimunde was received by the Serbian foreign minister, Vuk Draskovic, the foreign minister's office announced.

The Indonesian ambassador declared his country's support to the territorial integrity of Serbia and pointed out that the U.N. Charter had to be complied with, it was said in the statement.

BELGRADE, Mar 15 (Beta)-The director of the Simon Wiesenthal Center from Jerusalem, Ephraim Zuroff, said on March 15 that diplomatic and political pressure against Hungarian authorities should increase in order to speed up investigation against Szandor Kepiro, who is suspected of committing war crimes during World War II.

Speaking at a news conference in Belgrade, Zuroff said it was necessary for Serbia "to draw international attention" to the case of the former captain of the Hungarian gendarmerie, as he is a very old man who might not live until the end of investigation and the raising of an indictment.

After World War II, Kepiro was convicted in Hungary for participating in the Novi Sad raid in 1942, when more than 1,200 Jews, Serbs, and Roma were killed. Kepiro has never served his sentence.

On March 14, Hungarian authorities confirmed that an investigation on Kepiro was opened for the criminal offense of violence against civilians.

Zuroff added that influence should also be exerted on Austrian and Croatian authorities on account of the cases of Ustashe war crimes, believed to have been committed under the command of Ivo Rojnica and Milivoj Asner.

Asner and Rojnica, as members of the Ustashe movement in Croatia, had committed war crimes on the territory of the fascist Independent State of Croatia during World War II.

BELGRADE, Mar 15 (Beta)-Participants of an international conference on organized crime said on March 15 that Serbia needs laws that provide for the confiscation of property derived from organized crime.

At the Belgrade conference, Justice Minister Zoran Stojkovic said that this is already envisaged in a law that set up a special agency to manage such property, adding that in cases of organized crime, the presumption of innocence might not exist and a defendant could have to prove that his property was not purchased with dirty money.

U.S. Ambassador Michael Polt emphasized that Serbia needs to take action against those taking money out of the country, adding that similar measures are needed against a range of criminals, as well as individuals charged with corruption.

The list of speakers included Italian Ambassador Antonio Merola, who stressed that one should "strike the mafia where it hurts." He added that illegal wealth is an assault on the state, that it needs to be taken away and used to enhance the general welfare.

Rorry Field, a legal adviser to the OSCE on organized crime, said that the fight against organized crime warrants special investigative techniques and the use of former mobsters as witnesses against other mobsters. He also endorsed the use of property confiscation against criminals.

Italian mafia expert Antonio Laudati underscored the importance of keeping track of cash flows, adding that almost 70 percent of the world's daily financial transactions are made in ways intended to hide money sources.

The international conference on property forfeiture was organized by the Office of the Special Prosecutor for Organized Crime, the U.S. Department of Justice's Resident Legal Advisor's Office at the U.S. Embassy, and the OSCE Mission to Serbia.

BELGRADE, Mar 15 (Beta)-The International Monetary Fund (IMF) Mission on March 15 said that the two biggest macroeconomic challenges facing Serbia are maintaining economic growth and keeping inflation at bay.In a document issued after several days of talks with government officials and National Bank of Serbia representatives, the mission recommended a detailed economic policy change, the continuation of structural reforms and a review of overall public spending.The IMF also advises that the state cuts the current payment balance, carries on with the extensive and unconditional privatization and bankruptcy proceedings, as well as with increasing competition and a relentless crusade against corruption.

In the document the also IMF says that the draft 2007 budget drawn up by the departing government stipulates a 2.75 percent GDP deficit and recommends its dismissal.Alternatively, temporary financing should be prolonged for another three months, preferably through amendments and additions to the budget system law.

The institution criticized the large nominal rise in wages in 2006 between 20 and 30 percent and the excessive easing of the budget policy.The biggest wage increases in 2006 and 2007 must be abolished immediately, which would be a clear indication of the government's intention to secure the realistic standardizing of wages and low inflation, says the IMF Mission, which visited Serbia between March 7 and 15.

BELGRADE, Mar 15 (Beta)-The National Bank of Serbia has announced that on March 15, with an ahead of schedule payment of the final installment of International Monetary Fund (IMF) debt totaling around US$232 million, it has fulfilled all its obligations toward the institution.The early repaying of the debt started in June 2006 due to growing privatization funds and direct foreign investments, as well as a constant increase in foreign currency reserves.Serbia's overall US$978.2 million debt to the IMF was repaid in four installments in June, September, December 2006 respectively, and on March 15, 2007.

The National Bank points out that continuing cooperation with the IMF is crucial "for the implementation of the country's successful macroeconomic policy," further reforms and the strengthening of Serbia's international credibility.

BELGRADE, March 15 (Tanjug) - Serbian Chamber of Commerce (PKS) President Slobodan Milosavljevic, on the occasion of the 50th anniversary of the European Union, on Thursday sent a letter of support to the declaration of the biggest European association of chambers Eurochambres which seeks the establishment of a unique market, the PKS said. The PKS strongly supports the initiative sent to heads of state or government of the EU member-states, which indicates and stresses the role of companies as the key part of the ongoing integration process and stimulates social, economic and political prosperity, the letter said.