Belgrade, 27. 02. 2008.

SERBIA - EU

• DJELIC OPPOSES SELFIMPOSED ISOLATION
• REHN: EU ENTRY DOES NOT RULE OUT GOOD RELATIONS WITH RUSSIA

• COUNCIL: DIPLOMATIC ACTIVITIES MUST NOT HURT SERBIA
• ORASANIN: NATIONAL SECURITY COUNCIL COMMENDS WORK OF POLICE
• DINKIC: SERBIA TO STOP PAYING KOSOVO DEBT
• PONOS, DE MARNHAC DISCUSS SECURITY
• CASEY: US WANTS GOOD RELATIONS WITH SERBIA
• SERBIA WILL SUE US AT ICJ
• U.S., GERMANY EMBASSIES STILL CLOSED TO PUBLIC

• MEDVEDEV: NATURAL GAS PIPELINE SUPPORT TO SERBIA OVER KOSOVO
• LAVROV, SOLANA DISCUSS KOSOVO
• ALEXEIEV: COMMON POLICY ON KOSOVO OF SERBIA AND RUSSIA
• BURNS: US WILL NOT ALLOW DIVISION OF KOSOVO
• BERISHA: INDEPENDENCE DECLARED OWING TO NATO, CLINTON, BUSH
• POLAND RECOGNIZES KOSOVO
• EU COMMISSIONER EXPECTS MOST MEMBERS TO RECOGNIZE KOSOVO
• CIOROIANU: ROMANIA WILL NOT RECOGNIZE KOSOVO'S INDEPENDENCE
• CYPRUS SAYS KOSOVO'S INDEPENDENCE IS LEGALLY VOID
• VUJANOVIC: MONTENEGRO HAS NO REASON TO MAKE HASTE
• MACEDONIAN PRESIDENT: KOSOVO DECISION WHEN SUITABLE
• DODIK: RS PLEDGES NEVER TO RECOGNIZE KOSOVO
• RADMANOVIC: LONG-TERM, KOSOVO BRINGS UPHEAVALS TO BIH ALSO

• SERB HIGH SCHOOL, UNIVERSITY STUDENTS PROTEST IN KOSOVO
• CVETKOVIC: BUDGET REVISION OVER KOSOVO POSSIBLE
• THACI WARNS SERBIAN AUTHORITIES
• KERMABON: EU MISSION TO BE DEPLOYED IN KOSOVO NEXT WEEK
• RUECKER: UNMIK WILL FULFILL ITS MANDATE
• UNMIK CONFIRMS IT HAS PLAN FOR TRANSFERRING POWERS TO EULEX
• SECURITY SITUATION IS "TENSE, BUT UNDER CONTROL"

• DJELIC: SECURE STABLE BUSINESS CONDITIONS TO INVESTORS
• DINKIC: FOREIGNERS DO NOT SEE SERBIA AS INVESTMENT PARADISE
• POVERTY BIGGER IN RURAL THAN IN URBAN AREAS, DJELIC
• BUBALO SAYS VISIT GIVES IMPETUS TO ECONOMIC COOPERATION
• AUSTRIAN EMBASSY RECOMMENDS TO ATECH TO STAY IN SERBIA
• AUSTRIAN KAPSCH FOUNDS COMPANY IN SERBIA

BELGRADE, Feb. 26 (Beta) - Deputy Prime Minister Bozidar Djelic has said he will travel to Brussels together with several other cabinet members next week for talks with EU officials on the bloc's visa regime with Serbia.

Speaking on Radio B92 on Feb. 26, Djelic said that the fact that EU high representative Javier Solana was the first EU official to visit Pristina after Kosovo unilaterally declared independence will affect Serbian-EU ties. "On the other hand, we can see that the EU countries are not united on this issue. Those that have not recognized the independence of Kosovo are telling Serbia to continue down the European path," he added. "We are at a fork in the road: one branch is the course advocated by the Radical Party, which wants ties with the EU broken off and a relationship with Russia, whereas the Democratic Party is clearly saying that it wants both Kosovo and Europe," Djelic stressed.

Djelic went on to say that self-imposed isolation and attempts to get back at the West "will only hurt the citizens of this country even more. This is not a policy with a future and the Democratic Party will not tolerate it." "The [cabinet's] Action Plan calls for a review of diplomatic relations with every country that recognizes Kosovo. The withdrawal of ambassadors for consultations, that's all. Nothing but that is the joint policy," he added.

Djelic said that Serbia will try to make sure that Kosovo is not admitted to any international organizations and will "endeavor to encourage the international community to recognize its mistake through intelligent action." "We will fight to ensure that this entity (Kosovo) appears nowhere," Djelic added.

BRUSSELS, Feb. 26 (Beta) - European Commissioner Olli Rehn said on Feb. 26 that Serbia could become a member of the European Union and at the same time have good relations with Russia, as do some other EU members.

Serbia has a very real and tangible European perspective, which is why the EU has offered Belgrade an interim political agreement, in expectations that conditions for signing the stabilization and association agreement will fall into place, Rehn said at a news conference with Montenegrin President Filip Vujanovic. I believe Serbian leaders will acknowledge the fact that 70 percent of the people in Serbia are for membership in the EU. We are prepared to move forward with Serbia as soon as Serbia is ready to move forward, having met political conditions, Rehn pointed out.

He added that it was important for Serbia to be able to turn a new page, to abandon its nationalist past and turn to a European future.

And membership in the EU does not rule out good relations with the Russian Federation. I know of many countries, including EU members, that are a good example of this, the European enlargement commissioner said.

BELGRADE, Feb. 26 (Beta) - On Feb. 26, the Serbian National Security Council voted that experts will be called in to evaluate the long-term economic and political impact of potential diplomatic action against countries that have recognized Kosovo.

Sources contacted by BETA said that after several hours, the Council also emphasized the need for all bodies to prevent violence resembling what happened in Belgrade last week.

The Council also stressed that the authorities need to identify and prosecute all individuals who took part in the rioting, also pointing out that people taking part in rallies are barred from wearing military uniforms.

The members of the Council also discussed the death of Zoran Vujovic in the U.S. Embassy fire, acknowledging a coroner's report that his death was not violent. A toxicology report has yet to arrive.

The National Security Council consists of the president, prime minister, justice minister, interior minister, chief of staff, Security Information Agency director, and director of the Military Intelligence Agency. It is chaired by the president.

BELGRADE, Feb 27 (Tanjug) - State Secretary of the Interior Ministry Mirjana Orasanin has said that at its session, the National Security Council has commended the work of the police.

"It is of particular importance that the National Security Council has commended the job the police did during the demonstrations that were caused by the illegal declaration of the false state of Kosovo on the Serbian territory," Orasanin told Tanjug late on Tuesday.

She said that she had attended the National Security Council session in the competence of a state secretary and deputy of the absent (Interior) Minister Jocic. "The work of Police Director Milorad Veljovic and the way in which the police did their job in suppressing the riots that broke out on February 21 were commended in particular. The Ministry and the police are pleased with the conclusion the National Security Council reached today," Orasanin said.

BELGRADE, Feb. 26 (Beta) - Serbian Economy and Regional Development Minister Mladjan Dinkic said on Feb. 26 that, in coordination with international creditors, Serbia should stop paying the Kosovo debt and announced he would broach the subject at the Feb. 28 government session.

Dinkic told a news conference that the funds in question were considerable from $100 million to $150 million, which could be routed to Serbs in Kosovo, instead of ethnic Albanians.

He stated that there was no unified opinion on the matter, but that he expected the proposal to be accepted by the government.

"If we don't pay the debt, it does not mean that we are giving up the political demand for Serbia's sovereignty. If that sovereignty returns one day, we can start paying that debt again," Dinkic said.

He stated that Serbia was in a delicate position, that it must not enter selfisolation, and that an economically weak Serbia could not fight the fight for sovereignty.

BELGRADE, Feb 26 (Tanjug) - Serbian Army (VS) Chief of General Staff Lieutenant-General Zdravko Ponos and Kfor commander Lieutenant-General Xavier Bout de Marnhac met Tuesday at the Nis airport to discuss security along the administrative line and the VS and Kfor responsibility zones.

The two generals underscored the importance of regular cooperation and exchange of information between VS and Kfor at all levels, the Serbian Defence Ministry said in a statement.

WASHINGTON, Feb 27 (Tanjug) - United States (US) State Department Deputy Spokesman Tom Casey has said that the US wants good relations with Serbia, as a European country of key importance for the stability of the Balkans, but reiterated that the US stand on Kosovo is clear and consistent, and that the resolving of the status of this province is a consequence of the disintegration of the former Yugoslavia.

Serbia is of key importance for the fulfillment of the vision of a free, integral and peaceful Europe that the leaders had at the end of the Cold War. Serbia should be a part of this and the US wants to work with Serbia on this, Casey said, addressing a press conference. Asked to comment on the statement by Serbian Prime Minister Vojislav Kostunica that an independent Kosovo does not exist and that there will be no stability in the region until the decision on independence is annulled, Casey said the US understands that this is a difficult question for Serbia and the Serbian people, but that the resolving of the consequences of the disintegration of the former Yugoslavia includes an agreement on the final status of Kosovo.

BELGRADE, Feb. 26 (Beta) - The U.S. Embassy is still closed to the public although embassy personnel are scheduled to return to work on Feb. 27, Rian Harris, the embassy's media representative, told BETA.

The visa department will be closed until the damage done during last week's rioting is repaired.

The Germany Embassy, which also sustained damage last week in rioting that followed a peaceful rally against the independence of Kosovo, is closed.

The embassy's website states that the diplomatic office will not be accepting visa applications until further notice.

The U.S. Embassy website features a notice urging U.S. citizens to exercise caution and avoid areas where demonstrations have taken place, as well as mass events.

BELGRADE, Feb 26 (Tanjug) - Serbia will file an application to the International Court of Justice against the US and all other countries which have recognized the declaration of independence of Kosovo-Metohija, Advisor to the Serbian prime minister Branislav Ristivojevic told Tanjug Tuesday.

The US and other countries which have recognized a false state in Serbia's territory will face charges by Serbia at the ICJ, he said. Reacting to a statement by UN Under-Secretary of State Nicholas Burns that Kosovo will never be Serbia, Ristivojevic said that the answer to that is that Kosovo is and will always be Serbia.

Burns said that Serbia has lost Kosovo forever and will never regain it. It would be best if the outgoing US administration were to revoke its decision to recognize the false state of Kosovo, or if the new administration were to do it immediately when it comes to power, Ristivojevic said. As the outgoing US administration has recognized the false state of Kosovo, it will face charges by Serbia, he said. If the US revokes this decision, Serbia will withdraw its application to the ICJ, he noted. If it does not, Serbia will sue it at all international courts, Ristivojevic said.

MOSCOW, Feb. 26 (Beta) - Serbia's inclusion in the South Stream natural gas pipeline represents an aspect of Russia's support to Serbia in the Kosovo issue, Russian First Deputy Prime Minister Dmitry Medvedev said on Feb. 26, in the city of Ufa, the ITAR-TASS agency reported.

Medvedev, who visited Belgrade on Feb. 25, the date of the signing of the agreement between Gazprom and Srbijagas on building a pipeline through Serbia, said the document meant Serbia's full inclusion in the South Stream project.

That is in itself a very important event, as it makes the project functional, complex, productive and mutually beneficial, said Medvedev, the head contender in Russia's forthcoming presidential elections.

Bearing in mind the current situation in Serbia, this is especially important as essentially an element of moral and economic support from Russia to a country in a very difficult position, a country whose territorial integrity has been challenged by the will of other countries, he said. Medvedev added that, by violating international law, measures were being taken to divide Serbia. We cannot stand by, we have stated our position long ago. We are categorically against the unilateral proclamation of Kosovo's independence and consider it an abuse of the existing principles, Russia's deputy prime minister said.

MOSCOW, Feb. 26 (Beta) - The status of Kosovo should be resolved in a safe and long-term manner, in accordance with international law, Russian Foreign Minister Sergey Lavrov said on Feb. 26 in talks with European Union High Representative for Foreign and Security Policy Javier Solana.

The Russian Foreign Ministry announced that Lavrov and Solana held a telephone discussion about the situation in the wake of Kosovo's unilateral proclamation of independence.

The Russian side again stressed that the Kosovo issue should be resolved in a safe and long-term manner, fully in compliance with international law and led by the U.N. Security Council, the announcement said.

BELGRADE, Feb 27 (Tanjug) - At this point, one can safely speak about a common policy on Kosovo of Serbia and Russia, Russian Ambassador to Serbia Alexander Alexeiev has said, pointing out that visit by the Russian state delegation earlier this week presents absolutely clear and unequivocal moral support to the position of Serbia.

"We can now safely speak about a common policy on Kosovo. Our non-acceptance of the open violation of international law has been confirmed also by the assessments on the negative consequences that such a step could have for the region and for all of Europe," Alexeiev said in a statement for the Belgrade daily Politika, published on Wednesday. The visit to Belgrade by the Russian state delegation, led by Deputy Premier Dmitri Medvedev, is of exceptional importance, because there has lately been much talk about Serbia being isolated, the ambassador said.

"They are trying to intimidate you. Under the given circumstances, it is important in principle that such a delegation visited Belgrade, negotiated with the Serbian leadership, and clearly charted out the directions of our cooperation. Primarily, this presents full support to Serbia's position on the question of Kosovo, our readiness to continue with the common policy," Ambassador Alexeiev said.

WASHINGTON, Feb 26 (Tanjug) - US Under Secretary of State for Political Affairs Nicholas Burns has said that the United States would not allow the division of Kosovo and that Serbia lost Kosovo forever at the time of the 1999 bombardment. Speaking before a forum on Monday evening, that was organized by the Council for Foreign Relations in Washington, Burns said that neither the European Union, nor NATO would permit the division of Kosovo, the Voice of America reported.

Burns stated that the independence of Kosovo has been a clear and final alternative since last year, when UN special envoy Martti Ahtisaari came out with his proposal. The adoption of UN Security Council Resolution 1244 in June of 1999 has in fact resulted in the UN taking Kosovo away from Serbia. Serbia will never regain Kosovo. Since 1999, until the end, the only question was: what will be the final status of Kosovo, whether it will be independent or autonomous and when this will take place, Burns set out.

He praised highly the Pristina leadership for its restraint. In Pristina we saw an exceptional leadership which endured a thousand provocations. They defended the Serb people, their churches and heritage. They did not cross the Ibar River to go to northern Mitrovica, as the Serbs from Serbia and Kosovo wanted. They have shown restraint, Burns claimed. He also strongly criticized the leadership in Belgrade for the attacks by a group of demonstrators on the US ambassy in Serbia's capital during last Thursday's riots and following peaceful demonstrations against the unilateral declaration of the independence of Kosovo.

TIRANA, Feb 26 (Tanjug) - Albanian Prime Minister Sali Berisha has said that the unilateral declaration of independence of Kosovo is a result of a process enabled by NATO's intervention against Serbia and policy of US President Bill Clinton and his successor George Bush.

Speaking at a joint news conference with Kosovo parliament speaker Jakup Krasniqi, Berisha said that the "two Albanian states will take joint efforts to demonstrate how friendship and readiness for cooperation towards all neighbors." "There is no wish to revenge, there is no hatred because independence has been achieved. I hope that Belgrade will gradually accept this message, like other neighbors became aware that the Balkans was presently freer and fairer than ever," Berisha said.

WARSHAWA, Feb. 26 (Beta) - Poland has recognized the independence of Kosovo after a week of debate, following the lead set by the U.S. and leading EU countries.

"We made this decision today with certain reservations, but it could not have been any different," Foreign Minister Radoslaw Sikorski told reporters after the Feb. 26 cabinet meeting.

Prime Minister Donald Tusk and Sikorski urged the cabinet to recognize Kosovo despite their own feelings, since Poland's allies the U.S., UK, France, and Germany have already done so. Tusk explained that Poland has no alternative but to take the side of its natural allies in the West, at a time when the West is in a political contest with Russia and China over Kosovo.

Sikorski also said he hopes that the decision will help bring both Serbia and Kosovo into the EU, stressing that Kosovo is not a precedent for separatism worldwide.

BRUSSELS, Feb 26 (Tanjug) - European Commissioner for Enlargement Olli Rehn said Tuesday in Brussels he expects the majority of European Union member-states to recognize Kosovo's secession from Serbia.

About a dozen EU members have already recognized Kosovo, he said, adding he expects the majority of the rest to follow suit. He was speaking after a meeting with Macedonian President Baranko Crvenkovski.

PODGORICA, Feb 26 (Tanjug) - Romanian Foreign Minister Adrian Cioroianu said Tuesday during his visit to Montenegro, that Romania did not recognize not it will recognize the unilaterally declared independence of Kosovo.

"Our concern was and is to not encourage a precedent for the recognition at international level of the principle of collective rights for minorities, he said after meeting his Montenegrin counterpart Milan Rocen. Rocen said that Montenegro's stand on Kosovo is clear and has not changed. "At present Montenegro does not hurry up to take a decision about the independence of Kosovo, however, at the appropriate time it will allow for the national objectives regarding the accession to NATO and the European Union," he said.

BELGRADE, Feb. 26 (Beta) - Cyprus has expressed regret over Kosovo's declaration of independence and stressed that the act is legally void, the Cypriot government said in a letter given to Serbian Deputy Prime Minister Bozidar Djelic on Feb. 26.

According to a news release from his office, in a conversation with Cypriot Ambassador to Belgrade Homer Mavromatis, Djelic thanked the Cypriot government for its principled decision not to recognize Kosovo's independence and for its support to Serbia's EU integrations. The Cypriot government voices regret over "the unilateral declaration of Kosovo's independence, an act that jeopardizes the territorial integrity and sovereignty of Serbia."

"Cyprus believes that this secessionist act is outside the boundaries of international law, hence it is legally void and in conflict with the U.N. Charter, the Helsinki Final Act and the U.N. Security Council Resolution 1244, which affirms the respecting of Serbia's sovereignty and territorial integrity by the U.N. members," the letter says.

Djelic and Mavromatis both underscored the importance of a dialog on lifting the EU's visa regime for Serbian citizens.

BRUSSELS, Feb 27 (Tanjug) - Montenegrin President Filip Vujanovic said in Brussels on Tuesday, following his meeting with European Enlargement Commissioner Olli Rehn, that Podgorica had no reason to make haste in reaching a decision on Kosovo status.

Montenegro will not reach any hasty decisions, and it has no reason to make haste in doing that, Vujanovic said. He underlined that there were three reasons for Montenegro's cautious stand - preservation of internal stability and good relations between Serbs and ethnic Albanians, preservation of friendly relations with both Pristina and Belgrade, and harmonization of the stand with Podgorica's European prospects.

SKOPJE, Feb. 26 (Beta) - Officials in Skopje will make a decision on whether or not to recognize Kosovo when they feel doing so would benefit their country. One of the reasons why the decision is on hold is the lack of unity in the EU and NATO on the issue.

Macedonian President Branko Crvenkovski said this in Brussels on Feb. 26, adding that Macedonia, a candidate for EU and NATO membership, wants to follow in the footsteps of these organizations. Following a meeting with EU Enlargement Commissioner Olli Rehn, Crvenkovski said that Macedonia is in no hurry to act since not even the EU and NATO are united in that regard.

"In choosing the moment when the decision on Kosovo will be made, the government in Skopje will rely on assessments of the impact on the national interest," he added.

The Macedonian president also said that the only obstacle to NATO membership for his country is Greece's threat to veto such a motion due to its displeasure with Macedonia's name.

BANJALUKA, Feb. 26 (Beta) - Republika Srpska Premier Milorad Dodik said at a Feb. 26 rally in Banjaluka that RS will never recognize Kosovo since the province is a part of Serbia.

"We will not recognize Kosovo because this is an issue that is vitally important to us," Dodik stressed, adding that the crowd on Krajina Square shares this opinion. Some 10,000 people were present at the rally protesting the unilateral declaration of Kosovo's independence. The organizer of the event was the Serbian Movement of Nongovernmental Organizations. Dodik also told the crowd that President Boris Tadic and Prime Minister Vojislav Kostunica appreciate the support of the people of RS.

Commenting on the status of the Bosnian Serb entity, Dodik said that RS wants stability and recognition from the Bosnia Herzegovina Parliament.

Rioting followed the rally and police took 20 people, 15 of them minors, into custody.

The Banjaluka Public Security Center issued a statement describing the Krajina Square rally as peaceful, adding that about 500 people tried to march on the U.S. consulate afterwards but were prevented from doing so by riot police.

BELGRADE, Feb 27 (Tanjug) - In the long run, the self-proclaimed independence of Kosovo province will bring upheavals to Bosnia-Herzegovina (BiH) as well, but these disruptions will be of lesser intensity if Bosnia-Herzegovina itself reaches agreement that it must be comfortable for all its citizens, and if they all have the same rights, Serb member of the BiH Presidency Nebojsa Radmanovic said in an interview for the Belgrade daily Vecernje novosti published on Wednesday.

Asked how he can explain to his people, as the Serb representative, why they do not have the same rights as, for example, Kosovo Albanians, Radmanovic pointed out the stand of Republika Srpska (RS) that Bosnia-Herzegovina should function and develop in keeping with the Dayton Accords and Annex Four which comprises the Bosnia-Herzegovina Constitution. As long as this is implemented, Bosnia-Herzegovina can be a comfortable state for all its nations and citizens, he said.

Radmanovic expressed his surprise at the sharp reaction from the European Union (EU) to the RS Parliament resolution in connection with the unilateral proclamation of the independence of Kosovo. What is being advocated in the RS Parliament is the right of nations to self-determination, which stems from the United Nations (UN) Charter, he said. "If most member-countries of the UN, or, roughly speaking, around 100 of them, recognize Kosovo's illegal act, then it is absolutely impossible to forbid some other countries from doing the same thing. If most UN countries accept an act that bypasses the UN Charter, then this means the international legal norms are being changed. Then the line is crossed and, after that, anyone can behave in such a way," Radmanovic said.

KOSOVSKA MITROVICA, Feb. 26 (Beta) - Over a thousand high school students from central Kosovo attended a rally in the yard of Miladin Mitic Elementary School in Laplje Selo to express their opposition to the independence of Kosovo.

The students urged Serbia's top officials to maintain their unity in the defense of Kosovo and Metohija, emphasizing to "those who would take away 15 percent of Serbian territory that Serbs will stay in the province." The rally passed without incident, although KFOR troops and Kosovo police were deployed nearby to provide security. Several local residents were also present at the event. The teenagers held up signs with the words "Kosovo is the heart of Serbia", "No surrender of Kosovo", "Thank you, Russia", and "Thank you, Putin".

The elementary school building also houses students and teaching staff from the Economics Middle and High School from Pristina which moved there in 1999. Students of Pristina University, which has relocated to the northern part of Kosovska Mitrovica, have been protesting for nine straight days. Not far from the bridge over the Ibar River, which divides the city into Serb and Albanian halves, students organized a performance to underscore their views. This was done in the form of a mock soccer game between Serbia and the countries that have recognized Kosovo. The referee wore a shirt with the words "U.S.", and Serbia was losing in the first half due to his "bias".

In the second half, players wearing shirts with "Russia" and "China" emblazoned on them helped Serbia stage a comeback, leaving the score tied and the outcome to be determined in overtime.

KFOR and Kosovo Police Service personnel were present on the bridge during the event. No incidents were recorded.

KOSOVSKA MITROVICA, Feb 26 (Tanjug) - Serbian Finance Minister Mirko Cvetkovic announced on Tuesday a possible budget revision for additional funds for Kosovo and Metohija.

After visiting the Treasury Administration office in Kosovska Mitrovica, Cvetkovic said that a large number of demands by Serbian institutions from the southern province were exceeding current budget reserves and funds for Kosovo and Metohija. Pointing out that additional funds for Kosovo abs Metohija would be allotted, Cvetkovic told reporters that "it is highly probable that there will be a revision of Serbia's budget." Cvetkovic conferred on Tuesday with Tax Administration and Treasury Administration representatives in Kosovska Mitrovica on the work of the two institutions.

PRISTINA, Feb. 26 (Beta) - Kosovo Premier Hashim Thaci on Feb. 26 warned Serbia to forget any notions of controlling parts of Kosovo.

"We understand and respect peaceful reactions, guaranteed by the law, but we will not allow the territorial integrity of Kosovo to be compromised," Thaci told journalists in Racak.

Thaci pointed out he was constantly in contact with NATO to prevent anyone from touching even one inch of Kosovo's territory.

Kosovo proclaimed independence on Feb. 17 and Serbs in northern Kosovo have held daily protests ever since, rejecting the proclamation as illegitimate.

At the same time, Kosovo Vice Premier Hajredin Kuci invited Serbia to calm ethnic tensions and stop provoking Kosovo authorities.

We ask the Serbian government to take a different approach to the future of Kosovo and build good relations with it, not cause or increase tension, Kuci told the Associated Press.

He said Kosovo authorities would have understanding for peaceful protests, but warned against the demonstrations turning violent.

BRUSSELS, Feb. 26 (Beta) - The deployment of the European EULEX mission to Kosovo is to begin next week throughout Kosovo, including the northern areas, EULEX head Yves de Kermabon said on Feb. 26.

Though its deployment will start next week, the mission "will not come into action for four months, around midJune," Kermabon told AFP in Brussels. This will allow time to see "how the situation evolves," added the retired French general. Kermabon said it was "inconceivable" that Kosovo Serbs could secede. "The international community has repeatedly said that Kosovo is indivisible," he said. However, Kermabon said he could understand the vehement reactions to the proclamation of Kosovo's independence, including the scenes of violence in Belgrade. "We need to wait a little, to see how our politicians can reestablish links" with the Serb authorities and "see what we can do on the ground," he stated.

According to current plans, the mission will be composed of 1,800 police, legal and customs personnel, to be stationed throughout Kosovo, including the northern areas.

An "emergency" plan would allow that figure to rise to 2,200, Kermabon went on to say.

PRISTINA, Feb 26 (Tanjug) - UNMIK chief Joachim Ruecker said Tuesday in Pristina that UNMIK is determined to fulfill its mandate in the police, customs and judiciary sectors throughout Kosovo.

After the regular weekly meeting with KFOR commander and Kosovo Prime Minister on the security situation, Ruecker commended the excellent job done by the Kosovo Police Service, UNMIK police and KFOR in times of need. KFOR Commander Xavier Bout de Marnhac said that peacekeepers are ready to act in any situation, but noted that they have been in the background so far thanks to excellent work of KPS in maintaining law and order throughout Kosovo.

He pointed to the very good police reaction during the Monday protests by Serbian army reservists at the Mutivoda checkpoint. Kosovo Prime Minister Hashim Thaci thanked the peacekeepers for their excellent work together with UNMIK police and KPS, noting that everything is proceeding according to plan.

KOSOVSKA MITROVICA, Feb 26 (Tanjug) - The EU preparatory team, the Kosovo provisional government and UNMIK have developed a plan for the transition and implementation of powers from UNMIK to the EU mission and the provisional Kosovo institutions, UNMIK spokesman Alexander Ivanko said on Tuesday.

Ivanko told Mitrovica Contact Plus radio that UNMIK has not implemented the plan in question and that currently it is operating within the framework of UN Security Council Resolution 1244. We have to plan for any potential reconfiguration of UNMIK, the plans will be carried out only if we get instructions from the New York headquarters, which have not arrived until now, Ivanko set out. He stated that the UN mission in Kosovo plans to transfer its powers to the representatives of the EU mission, but that nothing has been done so far.

KOSOVSKA MITROVICA, Feb 26 (Tanjug) - The security situation in Kosovska Mitrovica remains tense, but under control, the Albanian Security Committee said in Mitrovica, according to Albanian-language electronic media. Mitrovica Mayor Bajram Rexhepi voiced his belief that the withdrawal of EU staff from northern Mitrovica would not last longer than necessary to create security conditions.

It was said that the same applied to Albanian judges and security, who had been absent from work for several days. Rexhepi said that Albanians who lived in the mostly Serb-populated northern part of Mitrovica should not worry because the "security structures have taken the necessary measures for their protection." Rexhepi said that the "targets of attacks in the north is not the population, but state institutions."

As for the procedure of transfer of responsibility to the EU mission, Rexhepi said that the transition period lasted for 120 days and that there was "some confusion and not everything is clear" about it. Kosovo Protection Corps representative Emin Musa says that the withdrawal of EU mission staff from the north created "confusion regarding the future of the town and region from the strategic point of view" and that UNMIK should have been more persistent and created the conditions for the work and safety of Albanians.

BELGRADE, Feb 26 (Tanjug) - Serbia is open to domestic and foreign investments, as that is in its national interest, which is the reason why the government will secure stable and predictable conditions for doing business, said on Tuesday Deputy Prime Minister Bozidar Djelic.

"Serbia's budget envisages the inflow of three billion euros for investments, mostly foreign, and if we do not get this sum it will mean that life in Serbia will get worse," Djelic told reporters at the Sava Centre where he attended a meeting on strategic directions of rural development in Serbia. He added that at this point all investors were fearful, whether they are domestic or foreign.

According to him, there was absolute unity in the government on the issue of investment in Serbia and it will secure stable and predictable conditions of doing business in the country. "Serbia does not intend to enter any kind of self-isolation nor any kind of conflict," Djelic pointed out and added that Serbia was fighting for its territorial integrity by legal means.

BELGRADE, Feb. 26 (Beta) - Economy and Regional Development Minister Mladjan Dinkic said on Feb. 26 that at the moment foreign investors do not see Serbia as "an investment paradise," adding that several visits to Serbia have been canceled over the past few weeks.

"The situation is not alarming, but it certainly must not be overlooked or underestimated. We have a weeklong halt, crises on the stock exchange and an attack on the dinar. We must not let that continue," Dinkic told a news conference in Belgrade.

According to him, several Italian companies have ordered their lawyers to sell the land they had previously bought in Serbia and abandon further greenfield investments, and General Motors has also called off the visit planned for Feb. 26.

Dinkic invited investors to keep investing in Serbia and said that he was personally open to all companies looking to bring money to Serbian citizens, regardless of what country they came from.

Regarding a statement by Prime Minister Vojislav Kostunica that relations with the countries that have recognized Kosovo's independence will not be normalized until the decision is annulled, Dinkic said he interpreted that statement as diplomatic pressure.

"It is important to keep diplomatic efforts separate from the economic sections of the government, because Serbia must keep going. If there is peace and order on the streets of Serbia, investors will absolutely continue to invest," Dinkic said.He also said that peace and security are the only guarantees for investing, and urged all citizens protesting against the unilateral declaration of Kosovo's independence to do so in a peaceful manner. "We should secure order and peace, and when that lasts a while we will restore our credibility," Dinkic said.

BELGRADE, Feb 26 (Tanjug) - Poverty in rural areas of Serbia is much bigger than in the urban areas and this gap is widening and, in the past few years, Serbia has been launching various initiatives to help the rural population, Serbian Deputy Premier Bozidar Djelic said on Tuesday.

Last year, poverty in Serbia was halved compared to 2002, but the gap between the poor in urban and rural areas of Serbia is widening, Djelic told a meeting dubbed "Strategic directions of rural development in Serbia", held in Belgrade's Sava congressional center. Poverty was reduced much faster in the cities, than in the countryside and the most threatened are rural areas in southeastern Serbia, which had 18.7% poor inhabitants last year.

Djelic said that 85% of Serbia's territory are rural areas, which are populated by 55% of the population, which create 41% of the gross social product and which are dominated by agricultural production. In these areas, economic and political stagnation have restricted possibilities for work in other spheres, Djelic set out, adding that it is more difficult for the inhabitants of those regions to access education, health and social care and the infrastructure.

MOSCOW, Feb 26 (Tanjug) - A Serbian government delegation's visit to Russia is a chance to give an additional impetus to bilateral economic cooperation, Serbian Minister of Trade and Services Predrag Bubalo told Tanjug upon his arrival to Moscow on Tuesday.

"This visit is an opportunity to analyse what has been agreed on before and remained undone and to give an additional impetus to economic cooperation between Serbia and Russia, without neglecting other aspects of promotion of bilateral relations," said Bubalo, who heads the Serbian delegation in a three-day visit to Russia, where a meeting of an expert group of the Moscow and Serbian governments will be held. Bubalo recalled the Monday visit to Belgrade of Russian Deputy Prime Minister Dmitry Medvedev and signing of an agreement between Gazprom and Srbijagas, which made concrete the January agreement on energy cooperation between the two countries, stressing that it constituted the basis for a series of new forms of cooperation and strengthening of economic ties between the two states.

"It is only through frequent contacts and links among businessmen - both those who have already proven themselves on this market and those who are looking for an opportunity on it - that we can keep the high level of growth of our exports in order to settle the big foreign trade deficit," said Bubalo, who co-chairs mixed committees for the Russian-Serbian cooperation and cooperation between Serbia and the city of Moscow. The Serbian delegation also includes Serbian Minister of Agriculture, Forestry and Water Resources Slobodan Milosavljevic, numerous Serbian businessmen and Serbian Chamber of Commerce and Industry President Milos Bugarin.

BELGRADE, Feb. 26 (Beta) - The Austrian embassy in Belgrade has advised the Austrian company ATech, which has signed a deal on the purchase of the copper mine and smelter complex RTB Bor, to continue doing business in Serbia, the trade representative in the embassy, Tijana Jocic, said on Feb. 26.

Jocic told BETA that ATech requested an opinion of the Austrian embassy, which advised the company to come to Serbia and claimed there was no reason to halt its business plans. "Austria has invested EUR2.1 billion and created 20,000 new jobs in Serbia since 2000," Jocic said, adding that over 280 Austrian firms are operating in Serbia.

BELGRADE, Feb. 26 (Beta) - The Austrian company Kapsch, specializing in telecommunications and IT, on Feb. 26 announced it has founded a firm in Serbia.

Kapsch general manager for Serbia Jochen Nowotny told a news conference that the new company currently has four employees who work in service sale and technical backup, and announced the forming of a research and development center.

According to midterm plans, as he put it, the company's annual profit in Serbia is projected at between EUR3 and 5 million, and the future center is to employ 15 to 20 Serbian experts.