Belgrade, 16. 05. 2008.

SERBIA - SETTING UP NEW GOVT - REACTIONS

• LEHNE: EU FOLLOWS ATTENTIVELY POLITICAL PROCESS IN SERBIA
• U.S. AMBASSADOR URGES PROEUROPEAN GOVERNMENT
• PROEUROPEAN SERBIAN GOVERNMENT IMPORTANT FOR BOSNIA

• SERBIAN GOVERNMENT APPROVES STRATEGIC PARTNERSHIP
• KAVRAN: BRAMMERTZ PRESENTED REPORT TO UN SECURITY COUNCIL
• MOST GERMAN ENTERPRISES IN SERBIA SATISFIED
• EUROPEAN BANK'S STRATEGIC PRIORITIES IN SERBIA
• WORLD MILTIARY MARATHON CHAMPIONSHIP IN BELGRADE IN 2009

• TADIC WELCOMES RUSSIAN, INDIAN & CHINESE STANDS ON KOSOVO
• MCCORMACK: I HAVE NEWS FOR YOU - KOSOVO'S STATUS IS RESOLVED
• PONOS & ROLDAN ON SECURITY SITUATION IN KOSOVO
• PONOS: RUSSIA & SPAIN OPPOSED TO KFOR TRAINING KIM ARMY
• FITZGERALD: KFOR MANDATE REMAINS THE SAME
• THACI: CONTINUED RECOGNITION OF KOSOVO INDEPENDENCE
• KUCI: MOSCOW'S DEMAND IRRATIONAL

BELGRADE, May 16 (Tanjug) - EU Western Balkans Directorate head Stefan Lehne told Assembly President Oliver Dulic that the EU was following attentively political processes in Serbia after the recent elections. Dulic, in his talks with Lehne, said he expected an early forming of a new stable Serbian government which will step up the process of European integrations, while continuing the fight for the territorial integrity of the country, said the cabinet of the Assembly president. The Serbian Assembly president conferred with Lehne, who is the director of the Directorate General for External and Politico-Military Affairs Council of the EU, on the current political situation in Serbia and the future of its European prospects.

BELGRADE, May 15 (Beta) The U.S. expects the next Serbian government to be formed in line withthe will of the people, the majority of whom clearly supported aEuropean future, U.S. Ambassador Cameron Munter said. In an interview Munter added that the Socialist Party ofSerbia could contribute to creating a European Serbia if it enters acoalition with the proEuropean parties. Conversely, a governmentconsisting of it, the Democratic Party of Serbia, and Serbian RadicalParty would be "surprising" since it would not reflect the viewsexpressed by the people on May 11. He added that the next government could be a progressive one conduciveto EuroAtlantic integration even with a Socialist party presence init, provided that it is essentially proEuropean. The Socialist party, he said, could play a positive role in such asituation by advocating solutions to issues that could help thecountry get closer to the EU. These include socialist problems,pensions goals consistent with a strong economy and Europeanfuture. Munter said the details are up to the proEuropean and Socialist party, adding that he is convinced that could bring Serbia closer to afuture in Europe.

BANJALUKA, May 15 (Beta) The international community's high representative in Bosnia Herzegovina, Miroslav Lajcak, stated that for Bosnia and all the countries of the region it is very important, good anduseful that Serbia acquire a government that will lead Serbia toward a European path. "The citizens of Serbia made a decision and sent a clear message toEurope and the world about what they want. It is very important, goodand useful for Bosnia and all countries in the region that Serbia getsa proEuropean government," Lajcak told the press in Banjaluka. Stating that it is an undeniable fact that the government will beformed by those who manage to secure a majority in the parliament, headded that anything is possible in Serbia, and that it is not hisbusiness to speculate about those issues. Lajcak also said that Bosnia is to sign the Stabilization andAssociation Agreement with the EU in Luxembourg on June 16, and thatthe fulfillment of the agreement's conditions is to begin on July 1,2008.

BELGRADE, May 16 (Tanjug) - Minister of Economy and Regional Development Mladjan Dinkic said on Thursday that the Serbian government had approved the Memorandum on strategic cooperation between the Zastava car factory from Kragujevac and Italy's Fiat, and added that as soon as on Friday, work would begin on the finalisation of a draft contract that would make it possible for Kragjevac to become the centre of automobile industry in South-East Europe. Dinkic told a news conference, after the government's session, that the first step in that direction would be a conversion of all debts into Zastava's capital and the company's transformation from a public into a state company. After that, as he said, a contract will be concluded with Fiat on joint investments, and in the newly-set company, Serbia will be the owner of 30 percent of the shares for at least ten years, while Fiat will be a 70 percent shareholder. The state of Serbia will have its representatives in the company's management and supervision board, and it has also assumed the obligation of following Fiat's future investments, which are expected to amount to 700 million euros.

BELGRADE, May 16 (Tanjug) - ICTY Chief Prosecutor Serge Brammertz has presented his six-month report to the UN Security Council, spokesperson Olga Kavran told Tanjug on Thursday. Spokeswoman Kavran said that that was a regular six-month report on the Prosecution's work, which according to the UN procedures, would become an official document of the Security Council. The prosecutor himself will be in New York early in June, when he will present his oral report to the Security Council, and once he has addressed the Council, we will, of course, make the entire report and his address public, Kavran said.

BONN, May 15 (Tanjug) - Most German firms doing business in Serbia are satisfied, according to a poll conducted by the German commercial association and the Delegation of German Industry and Commerce (AHK) in Belgrade. Representatives of German firms assessed that the situation of their firms in Serbia was mostly good. Their current situation is seen by 52 pct as positive, 41 pct as satisfactory, and just 3 pct are dissatisfied. Three quarters of German firms covered by the survey view positively their future and expect a higher turnout - many are preparing also new investments. In 2008, as many as 74 pct expect improved business results, while not a single firm expects a worsening, said the Serbian Chamber of Commerce representative office in Germany.

KIEV, May 15 (Beta) The European Bank for Reconstruction and Development's (EBRD)strategic priorities in Serbia are the corporate sector,infrastructure and the financial sector, it was stated on May 15 in areport on Serbia issued on the creditor's website ahead of its annualassembly in Kiev. In the corporate sector in Serbia, the bank intends to continueproviding assets for privatization and postprivatizationrestructuring for both local and foreign companies, focusing more onthe consolidation of big companies and their expansion plans. At the same time, the new fund, created by the EBRD and Italy forcompanies in the Western Balkans, will enable the creditor to supportsmaller, fastdeveloping companies through various forms of financing.In the report, the bank pointed out that the privatization process inSerbia has slowed down in the past several years, and that thedeadline for privatization finalization has been extended, adding that1,737 companies have been privatized from 2002 to 2007, with a totalworth in excess of EUR2 billion.

MONTREUX,SWITZERLAND, May 15 (Tanjug) - The International Military Sports Council (CISM) decided at a session in Montreux, Switzerland, on Thursday that Belgrade will host the 2009 World Military Marathon Championship within the 22nd Belgrade Banka Inteza Marathon. Serbian delegation deputy head Branko Boskovic said that Belgrade has earned "this huge recognition by successfully organizing and hosting three regional military championships." Boskovic said that teams from over 30 countries, of which 20 from Europe, would compete in Belgrade. The Military World Marathon Championship is run both by men and women, four each per team, with the three best times counted for each team.

BELGRADE, May 15 (Tanjug) - Serbian President Boris Tadic welcomed on Thursday the efforts of Russia, India and China for the re-opening of talks between Belgrade and Pristina on the status of Kosovo, noting that Serbia's position is that a compromise and mutually acceptable solution can be reached only through negotiations. "It is very clear that a sustainable solution for the status of Kosovo is possible only through the continuation of the talks under UN auspices with the aim of reaching a compromise and guarranting longterm stability in the Balkans and many other regions worldwide with similar problems. The UN Security Council is the only institution which can adopt a legally valid solution," Tadic underscored. He stated that the principled position of these three countries is very important for Serbia, the defence of its territorial integrity and sovereignty, as well as for the defence of international law, Tadic's public relations service announced. Earlier today, Russian Foreign Minister Sergei Lavrov said, following talks with his counterparts from India and China in Ekatrinburg, that these three countries urge the revival of the Belgrade - Pristina talks on Kosovo and Metohija. Lavrov said that these countries believe that the "Kosovo issue" should be resolved solely on the basis of international law.

WASHINGTON, May 16 (Tanjug) - The US Administration views the issue of Kosovo and Metohija as resolved, State Department spokesman Soen McCormack said late on Thursday, while commenting on the efforts Russia, the People's Republic of China and India were making for a resumption of negotiations between Belgrade and Pristina. We have fresh news for you: Kosovo's status is resolved and it is an independent state, spokesman McCormack said in Washington, Russia's Itar-Tass reported. The foreign ministers of Russia and the People's Republic of China, two permanent member countries of the UN Security Council, and of India - Sergei Lavrov, Yang Jiechi and Pranab Mukherjee - pointed out in Yeketerinburg, in the Ural Mountains, earlier in the day that it was important that the issue of Kosovo status be resolved in keeping with the provisions of international law, with the leading role of the United Nations and on the basis of an agreement to be reached between the two sides. The three foreign ministers also called on Belgrade and Pristina to act in scope of international law so as to find a corresponding solution to the issue via negotiations, the Russian Foreign Ministry said in a statement.

BELGRADE/BRUSSELS, May 15 (Tanjug) - Serbian Army Chief of General Staff Lieutenant General Zdravko Ponos met Thursday in the NATO headquarters in Brussles with his counterpart from Spain, General Felix Sanz Roldan, to discuss the security situation in Kosovo and Metohija. "Another reason for this meeting is that Spain has not recognized the self-declared independence of Kosovo," General Ponos said, adding that he informed General Roldan about Serbia's position on Kfor's role in Kosovo, which is identical to what he told NATO Secretary General Jaap de Hoop Scheffer. Ponos has told Scheffer that Serbia's position is that Kfor should remain neutral with regards the status of Kosovo and Metohija and that it should act within UN Security Council Resolution 1244, the Serbian Defence Ministry announced. Ponos said that his Spanish counterart expressed full understanding for Serbia's position and that "Serbia will not change its stand and position on Kosovo." He added that "the conduct of Spain's peacekeepers within Kfor would continue to be professional and that there is full awareness about the need for good cooperation." According to Ponos, there exists mutual interest that Serbian - Spanish military cooperation is expanded in the future, especially in the sphere of cooperation between special troops.

BRUSSELS, May 15 (Tanjug) - Serbian Army Chief of General Staff Lieutenant General Zdravko Ponos said in Brussels on Thursday that his counterparts from Russia and Spain have informed him that they oppose changing the role of Kfor to include the training of the Kosovo "security forces" which Pristina intends to set up after the new constitution comes into force on June 15. "We discussed this and agreed," General Ponos told reporters after meeting with Russia's General Yuri Baluyevsky and Spain's General Felix Sanz Roldan. "Declarations and decrees do not change matters fundamentally. What is the responsibility of the Serbian Army and Kfor is that the security situation is kept under control," Ponos stated. He said that "political declarations - if they do not result in additional complications - are only a reason for additional political and legal action," which Serbia is already undertaking. Ponos described as "an excellent idea" that NATO Secretary General Jaap de Hoop Scheffer plans to go to New York next week to meet with UN Secretary General Ban Ki-Moon to discuss Kfor's role. "New York is the right place to discuss this," Ponos set out, adding that "what is important are the positions expressed in Brussels and in New York, rather than declarations issued in Kosovo." Ponos underscored that Serbia is on the brink of signing an agreement on bilateral cooperation with Spain, and that his meeting with the Russian Army Chief of General Staff represented "the start of the renewal of military cooperation between Serbia and Russia after a years-long pause." This cooperation will first be carried out in the military - techincal sphere, in view of the fact that the Serbian Army has Russian military technical foundations; while another form of cooperation will be in the miltiary education sphere." "General Baluyevsky said that there is interest for reviving this cooperation, i.e. to enable our officers to attend Russian military accademies," Ponos said. He announced a tender for equipping the Serbian Army, including the Air Force and armoured vehicles on wheels, adding that Russia would also participate in these tenders. Ponos recalled that Russia is now involved in the rehauling and modernization of the MIG 29 aircraft used by the Serbian Army, adding that new equipment would wait for 2011 or 2012.

PRISTINA, May 15 (Tanjug) - Commander of NATO Joint Forces Command Naples Mark Fitzgerald said Thursday that the KFOR mandate will remain the same - to ensure peace and security in Kosovo. KFOR will continue to operate under the UN Security Council Resolution 1244 and cooperates with all international organizations, he said at the end of his one-day visit to Kosovo. Freedom of movement, sustainable economic progress and exercise of human rights in Kosovo are the general goals, he said. No changes are planned for the time being as regards KFOR composition or numbers, he said. Fitzgerald conferred in Pristina with KFOR Commander Xavier Bout de Marnhac and inspected KFOR troops. KFOR currently has about 16,000 troops in Kosovo.

PRISTINA, May 15 (Tanjug) - Kosovo provisional government Premier Hashim Thaci said Thursday that "there are signals" from some countries that they could decide to recognize the independence of Kosovo soon, adding that Foreign Minister Skender Hiseni has already scheduled visits to the ambassadors and foreign ministers of the countries of Latin America. The Kosovo government is fully engaged on preparations for the Constitution to come into force on June 15, Thaci stated following Thursday's government session, noting that over the next few days six - eight draft laws, which stem from Martti Ahtisaari's package, would be sent to parliament.

PRISTINA, May 15 (Tanjug) - Kosovo provisional government deputy premier Hajredin Kuci said that the government of Kosovo viewed as irrational Russia's demand that countries that recognised the independence of Kosovo should review their decisions. He assessed in a government session that "the recognition of the independence of Kosovo is continuing at the required pace" and pointed out that Pristina expected Russia to follow suit.