Belgrade, 29. 01. 2008.

• EU OFFERS POLITICAL AGREEMENT TO SERBIA
• EU OFFERS SERBIA INTERIM AGREEMENT, SIGNING ON FEB. 7
• JEREMIC: I AM CONVINCED PEOPLE WILL OPT FOR EUROPE
• BAKOYANNIS: GREECE STRONGLY BACKS SERBIA'S PROSPECTS TO JOIN EU
• PLASSNIK: NO PROGRESS ON EU SAA WITH SERBIA
• STEINMEIER: SAA WILL NOT BE SIGNED IN COMING DAYS

• ROMANIAN PRESIDENT ARRIVES IN BELGRADE
• SERBIA WILL OPEN EMBASSY IN MONTENEGRO
• EUROVISION SONG CONTEST BIGGEST EVER

• SAMARDZIC: SERBIA WILL NOT USE VIOLENT MEANS
• BAN: KOSOVO'S FUTURE IS, BEFORE ALL, EUROPE'S AFFAIR
• TACI: KOSOVO READY TO IMPLEMENT AHTISAARI'S PLAN AND EU MISSION
• BASHA: INDEPENDENCE DECLARATION IS A MATTER OF WEEKS
• BOTSAN-KHARCHENKO: RUSSIA HAS A DETAILED PLAN FOR KOSOVO
• LIKHACHEV: KOSOVO CONTINUES TO BE CRIMINAL HOTBED OF EUROPE
• MOSCOW CONCERNED OVER WEST'S "BACKSTAGE ACTIVITIES"
• DE MARNHAC: SERBIA ARMY KNOWS BORDERS

• DINKIC: VALUE OF FREE SHARES HINGES ON SITUATION IN SERBIA
• HEINEKEN AND EFES TO COLLABORATE IN SERBIA

BRUSSELS, Jan 28 (Tanjug) - The European Union proposed Monday a political agreement on cooperation with Serbia, including a framework for progress in political dialogue, free trade, visa liberalization and cooperation in education, to be signed on February 7.

Serbia plays a key role in Western Balkans, both as regards stability and economic development and prosperity in the region, the document says. The EU wishes to foster its relations with Serbia based on the rich and varied framework of cultural, historical, economic and human relations, and consequently invites Serbia to step up political cooperation in order to accelerate its progress towards the EU, including the issue of candidate status. The people of Serbia are a part of the European family. Fostering the relations between the EU and Serbia, conducive to membership, will bring specific benefits to the people of Serbia, above all through encouraging economic progress, trade and human contacts, particularly among students, the EU ministers said.

The EU recognizes the importance of easier travel for Serbia's nationals and the European Commission will initiate dialogue on visa liberalization, the document says. The EU also plans to enable more Serbian students to study in Europe through the Erasmus Mundus program and bilateral activities and will consequently consider increasing available funding, the ministers said.

The Stabilization and Association Agreement remains the best means for fostering relations and the EU is determined to sign the SAA as soon as the necessary steps are finalized. It remains convinced that SAA will benefit both parties and have positive effects in the region, the document says.

The EU is also determined to uphold Serbia's endeavors for fostering democracy and the rule of law, contribute to Serbia's political, economic and institutional stability and provide a framework for political dialogue, the ministers said. The EU is also determined to support Serbia's endeavors for fostering economic and international cooperation, including assistance in drafting legislation for its membership in the EU, including integration in the EU common market.

The EU is determined to uphold Serbia's endeavors to complete its transition to a functional market economy, develop a free trade zone and foster regional cooperation, the document says. The EU also decided to create a task force to consider ways of securing speedy development. The task force should start work immediately to formulate proposals to Serbia and the EU Council as soon as possible. The EU ministers also decided to remain in close contact in order to foster this process.

BRUSSELS, Jan. 28 (Beta) - The European Union on Jan. 28 proposed a political agreement with Serbia for improving overall cooperation in trade, economy, education and visa liberalization, to be signed on Feb. 7, in Brussels.

A task force to help in implementing the agreement will be formed, Slovenian Foreign Minister Dimitrij Rupel, who chairs the EU Council of Ministers, announced after a meeting in Brussels.

EU High Representative for Foreign and Security Policy Javier Solana said this was a very strong message that Serbia and the Serb people were an important part of Europe, that Serbia was important to the EU and a key country in the Western Balkans.

Portuguese Foreign Minister Luis Amado said the proposal represented a strong signal to the Serbian people on the eve of the second round of presidential elections, divided between those against Serbia's integration into Europe and those who rightly believe that Serbia is an integral part of the European family.

In its invitation to sign the agreement, the EU said the Stabilization and Association Agreement would remain the chief engine for progress in relations between the EU and Serbia and that the EU would sign the document with Belgrade "as soon as the necessary steps have been finalized."

The EU agrees to set up a task force to examine ways of delivering rapid progress, the invitation from Brussels reads. The task force will begin to work immediately so as to formulate its recommendations to Belgrade and the Council of the European Union as soon as possible.

BRUSSELS, Jan. 28 (Beta) - "I am convinced that the Serbian people will democratically opt to pass through the now open door to the EU on Feb. 3," Foreign Minister Vuk Jeremic said in Brussels in the evening of Jan. 28. Jeremic added that this has been facilitated by the EU offer to sign a special political agreement on overall cooperation with Serbia.

"After Feb. 3 and our referendum on Europe, Serbian representatives will again be in a position to come to Brussels on Feb. 7 and sign that very important agreement with the EU's 27 members," Jeremic underlined.

"Europe supports us. Serbia will back us and it has supported us thus far and it will confirm that it stands behind that project on Feb. 3," Jeremic stressed. He added that the proposed agreement represents an important element in the process of supplementing the EU region in the Western Balkans.

Athens, Jan 29 (Tanjug) - Greek Foreign Minister Dora Bakoyannis expressed satisfaction in Brussels late on Monday over the offered interim political agreement of the European Union with Serbia.

Today is an important day both for the EU and Serbia, Minister Bakoyannis assessed, pointing out that the achieved agreement proved that the Union wanted to see Serbia as part of it. Minster Bakoyannis said that it would be of exceptional and key importance that the EU sent a message to Serbia and the Serbian people that it wanted an European Serbia.

The Greek minister expressed particular satisfaction with the fact that the EU Council of Ministers had adopted the five points on EU-Serbian cooperation which the Greek government had proposed.

VIENNA, Jan 28 (Tanjug) - Austrian Foreign Minister Ursula Plassnik said Monday that no progress has been made regarding the signing of the Stabilization and Association Agreement between the European Union and Serbia. Views still differ on a timetable for Serbia's full cooperation with the International Criminal Tribunal for the former Yugoslavia, she said.

In Austria's view, signing the SAA now has a purpose, she said in a release on the occasion of the meeting of EU foreign ministers in Brussels. As regards Serbia's cooperation with ICTY, Austria has always advocated the application of the same standards as were used in Croatia's case, she said. Individual accountability rather than collective punishment is the principle upheld by Austria for reconciliation in the Balkans, Plassnik said.

The SAA is only a part of an overall strategy of offering a common European future gradually, she added. Visa facilities are an important aspect of this issue, she noted. She pointed to the importance of a clear signal of EU encouragement to Belgrade in the midst of a complex and sensitive international process, she said. The EU must make its stand clear, Plassnik added.

BRUSSELS, Jan 28 (Tanjug) - The European Union will not sign the Stabilization and Association Agreement (SAA) with Serbia in the next several days, German Foreign Minister Frank-Walter Steinmeier stated at the margins of the meeting of EU foreign ministers on Monday.

It is certain that the SAA will not be signed in the next couple of days, said Steinmeier. The Netherlands on Monday clearly reiterated that it will not approve the SAA to be signed before the remaining ICTY indictees are transferred to The Hague.

We do not wish to leave an impression that the rest of 26 member states have a more lenient stand in regards to the policy of conditioning the signing of the SAA with a full cooperation with the ICTY, underscored Steinmeier.

BELGRADE/BUCHAREST, Jan 29 (Tanjug) - Romania's President Traian Basescu will arrive on a working visit to Serbia on Tuesday, during which he will meet with Serbian President Boris Tadic and Prime Minister Vojislav Kostunica.

A statement issued by the cabinet of the Romanian president points out that the visit is a good opportunity to express the support Romania is giving Serbia in its efforts for stability in the Balkans and democratic development.

The visit also represents a good opportunity for a detailed analysis of bilateral relations, with a particular emphasis on Serbia's Euro-Atlantic and European integrations, it is specified in the statement, which the Romanian Rompers National News Agency reported on.

BELGRADE, Jan 28 (Tanjug) - The Serbian government has decided to open an embassy of Serbia in Montenegro, it was announced in the latest issue of the Official Gazette.

The Serbian Foreign Ministry was assigned to take the necessary measures for implementation of the decision, it was said in the Gazette.

BELGRADE, Jan 28 (Tanjug) - The upcoming European song contest in Belgrade will be the biggest up to now and for the first time in 53 years of existence of the global spectacle it will run according to a new system so that the final evening scheduled for May 24 will be preceded by two semi finals on May 20 and 22, it was said on Monday in the City Hall.

Belgrade and Serbia will host representatives of 43 countries, which is the biggest number of representatives up to now, it was specified at a press conference, and the director general of the organizer of the 53rd Eurosong, Serbia's public media service, Aleksandar Tijanic, said that ahead of us as hosts was the most exacting job ever done in Serbia.

BELGRADE, Jan. 28 (Beta) - Minister for Kosovo and Metohija Slobodan Samardzic stated that Serbia will not use violent means against Kosovo if the Serbian province declares independence.

The Ministry for Kosovo and Metohija announced that in an interview for the most watched Albanian television station, Tirana's Top Channel, Samardzic placed emphasis on the Serbian proposal for essential autonomy.

He said that this proposal is a positive concept, through which Kosovo would be a territory with a large degree of autonomy within Serbia.

"Serbia's proposal is peaceful. Serbia will not take any sort of violent action against Kosovo if it proclaims independence. It is important that at this time Kosovo's Serbs remain a part of Serbia, something which we will ensure. It is important that Kosovo's Albanians do not use violence against Serbia and Serbs. We want that way of solving our conflicts to remain a thing of the past," Samardzic said.

Serbia wants to keep Kosovo in an international legal sense, while not meddling in other aspects of the Kosovo Albanians' lives, Samardzic stated, adding that Belgrade's proposal offers benefits to the Albanian population in Kosovo and a degree of autonomy which no other territory in the world currently has.

BRATISLAVA, Jan 28 (Tanjug) - United Nations Secretary-General Ban Ki Moon stated in Bratislava on Monday that the future of Kosovo is, before all, Europe's affair, while Slovak President Ivan Gasparovic evaluated that there is no solution for the Kosovo status that would be fair for both sides.

Kosovo is basically Europe's affair and the European Union will have main responsibility, underscored Ban Ki-moon after his meeting with Slovakia's President. As reported by Slovakia's and Czech media, Ban Ki-moon also said that he would soon like to discuss the developments in Kosovo with representatives of the EU and Balkan states.

The U.N. Secretary-General said that he himself will take steps at a moment that is appropriate for the Kosovo issue, but refused to specify further. Gasparovic evaluated that "there is no solution for Kosovo that would be just for both sides." It seems clear that a unilateral decision will be made on whether Kosovo will be independent or not, but the problem is what will happen after that, said Gasparovic after his meeting with Ban Ki-moon.

PRISTINA, Jan 28 (Tanjug) - Kosovo's Prime Minister Hasim Taci confirmed in Pristina on Monday that the announced "declaration of independence" will practically include an invitation to the EU mission to come to Kosovo.

Kosovo has welcomed the document drafted by Martti Ahtisaari and it has assumed its implementation, which also implies international civil support and NATO's presence, Taci replied to a journalist question on whether the announced document will include an invitation to an EU mission.

As reported by Albanian-language electronic media, Taci told reporters after his meeting with Kosovo President Fatmir Sejdiu and Parliament Speaker Jakup Krasnici on Monday that they had discussed "a speedy completion of the procedure and preparations for proclamation of Kosovo's independence, as well as a celebration program. Media have earlier reported that representatives of the provisional Kosovo institutions will discuss "a declaration of independence" and a setting up of a working group for the document.

WASHINGTON, Jan 29 (Tanjug) - Declaration of independence of Kosovo is a question weeks and not days, Albanian Foreign Minister Lulzim Basha stated on Tuesday, adding that Martti Ahtisaari's plan "should be implemented."

I am afraid that the last possibility for continuing the talks had been closed with the termination of the Troika's (international mediators from Russia, USA and the European Union) activities, Basha said in a statement with the Russian news agency Itar-Tass in Washington.

Basha also said that Albania shares the position of the absolute majority of the UN Security Council and General assembly member states that implementation of Ahtisaari's plan should not be postponed.

MOSCOW, Jan. 28 (Beta) - The Russian foreign ministry representative for the Balkans, Aleksandar Botsan Kharchenko, stated on Jan. 28 that the unilateral proclamation of Kosovo's independence and its recognition could "de facto" lead to the province's partition.

At an expanded meeting of the International Relations Committee of the Russian Duma, Botsan Kharchenko said that the West will thus reach a variant that it has previously considered the worst and against which it has fought.

Botsan Kharchenko said that Serbian President Boris Tadic and Prime Minister Vojislav Kostunica, during their recent visit to Moscow, made it known that they are ready for further negotiations, but that they would not agree to independence and the separation of a part of Serbia's territory.

"Belgrade is prepared to take measures as a response to [the proclamation of Kosovo's] independence, not of a military character, but as we understood, of an economic character, with the cooperation of the Serbs in Kosovo," he said.

"Russia has prepared an entire series of measures in the event Kosovo unilaterally proclaims independence and if Western countries recognize that independence," the Russian diplomat said.

Botsan Kharchenko stated that there is close coordination with Belgrade in the steps and actions that will be taken, adding that it is not possible to reveal these measures "for understandable reasons." He said that they will be announced by the Russian leadership.

VIENNA, Jan 29 (Tanjug) - Member of the Russian Federation Council Vasily Likhachev has assessed that the Kosovo issue has to be resolved at the level of international law and the United Nations. This is a difficult issue, Likhachev said in an interview for the Vienna daily Der Standard.

Such a conflict has to be resolved at the level of international law and the UN, he underlined, adding that the question was whether Kosovo met the criteria Europe had set for itself. My opinion is that Kosovo continues to be a hotbed of crime in Europe, the official pointed out.

According to Likhachev, the United States was making use of the Kosovo issue. Although the final status of that province has not even been resolved, the US has already set up its base there, the official underlined, adding that new bases would be set up in Romania and Bulgaria. All this is happening by bypassing the cooperation with Europe and its partners, Likhachev said.

MOSCOW, Jan 29 (Tanjug) - Russian Foreign Ministry Spokesman Mikhail Kamynin on Tuesday expressed Moscow's serious concern over reports on "backstage preparations by Western countries" for a new mission in Kosovo and Metohija.

He said that these activities include direct pressure on the U.N. Secretary-General and the European Union Presidency, and that without participation of the UN Security Council preparations for an EU mission in Kosovo and Metohija and strengthening of the military component of the peace-keeping forces in Kosovo are being carried out.

We expect the U.N, Secretary-General and our partners to grasp the tragic consequences of unilateral scenarios and actions that violate the U.N. Charter, and that they will withhold from moves that imply a precedent that would be destructive to the system of international relations, said Kamynin.

PRISTINA, Jan 28 (Tanjug) - Kfor commander Xavier de Marnhac said in Pec on Monday that "the Serbian Army knows where the borders are," and that "responsibility for the security of Kosovo rests exclusively with Kfor and not with anyone else," said Pristina electronic media in the Albanian language.

De Marnhac said this after a meeting with Pec municipal president Ahmet Hasani, after he was asked by reporters to comment on the statement by Serbian Army Chief of General Staff Zdravko Ponos that, in the event that "something happens" in Kosovo that is related to the security of people and property, there is a readiness to respond in the appropriate way.

"I am meeting on a regular basis with representatives of the Serbian armed forces and this is a confidence building matter, but when security is at issue, the security of Kosovo rests exclusively with me, and I am cooperating with international police and KPS and no one else is in any way responsible for security," De Marnhac said. "This is why I am confident that the Serbian general clearly knows where his boarders are and I am confident that he will keep to these borders," the French general added.

BELGRADE, Jan. 28 (Beta) - More than 60,000 people registered for free shares in public companies on the first day of registering, with Serbian Economy and Regional Development Minister Mladjan Dinkic among the first.

Asked by journalists about the value of the shares citizens would receive, Dinkic replied it would depend, among other things, on political circumstances in the country.

"If Tomislav Nikolic wins the election, there is a great danger that foreign investors will no longer invest, and without buyers the shares will be worth nothing," Dinkic said.

In answer to the question whether the sale of a 51percent stake in the Serbian Oil Industry (NIS) for EUR400 million would influence the amounts citizens will get, the minister responded that the sale contracts were yet to be signed, that this would not happen quickly and that not all details had been worked out, as he had heard "a statement by the president" that additional negotiations on NIS were needed.

Dinkic said he expected shares in JAT Airways, NIS, Telekom Srbija and Galenika to be the first to sell, at approximately the same time.

Although citizens may register for the shares until July 31, 2008, Belgraders waited up to 15 minutes to register, the wait in downtown Nis was around half an hour, from 15 to 60 minutes in Novi Sad, while in Novi Pazar there were no big crowds.

By registering for free shares in the biggest Serbian public companies and including them in the financial market, investors will have a greater opportunity to invest in quality shares with probable long-term stability.

Nikola Cirkovic of PS Broker told BETA on Jan. 28 that foreign investors would see their interest in the almost certain difference in the price and dividends, as all the companies in question were the most profitable domestic firms.

BELGRADE, Jan. 28 (Beta) - Dutch Heineken and Turkish Efes announced on Jan. 28 that they will collaborate in Serbia, Kazakhstan and Uzbekistan during the first half of 2008.

A statement reads that Heineken will own 72 percent of a joint brewery in Serbia, with Efes owning 28 percent.

Efes with a ten percent share occupies third place in the Serbian market, and is the owner of the Weifert Brewery in Pancevo and the Zajecar Brewery, which have a total annual capacity of 1.4 million hectoliters.

Heineken is in the process of taking over the Rodic Brewery in Serbia, which is the fourth largest brewery with a market share of seven percent and an annual capacity of 1.5 million hectoliters.