Subject: Y D S, March 15
Date: Fri, 15 Mar 2002 09:54:43 -0500
From: YugoEmb-Ottawa <diplomat@...>
To: (Recipient list suppressed)




YUGOSLAV DAILY SURVEY


Belgrade, 15. 3. 2002. No.
3674


C O N T E N T S :

SERBIA MONTENEGRO AGREEMENT
- YUGOSLAVIA CEASES TO EXIST
- PROCEEDING POINTS FOR THE
RESTRUCTURING OF RELATIONS BETWEEN
SERBIA AND MONTENEGRO
- PRESIDENT KOSTUNICA SATISFIED WITH
AGREEMENT
- AGREEMENT BASIS FOR STATE UNION WITH
A FUTURE - YUGOSLAV PREMIER
- POLITICALLY A CONFEDERATION,
ECONOMICALLY TOWARDS A COMMON MARKET, LABUS
- NBY GOVERNOR SAYS SOLANA IS ONLY WINNER
- NEW STATE WILL BE CHEAPER THAN
PREVIOUS THREE, SAYS SERBIAN PREMIER DJINDJIC
- UN SECURITY COUNCIL RESOLUTION 1244
VALID EVEN AFTER AGREEMENT ON NEW
FEDERATION, COVIC
- AGREEMENT GOOD FOR SERBIA, IF
IMPLEMENTED CONSISTENTLY, SAYS DJELIC
- DJUKANOVIC :MONTENEGRO PRESERVES
RESULTS OF ECONOMIC REFORMS
- MONTENEGRO ONCE AGAIN IN EUROPE UNDER
ITS NAME, MONTENEGRIN PREMIER
- AGREEMENT - STEP TOWARD STABILITY OF
BALKANS, SAYS SOLANA
- WASHINGTON WELCOMES AGREEMENT BETWEEN
SERBIA AND MONTENEGRO
- SERBIAN-MONTENEGRIN AGREEMENT MARKS
VICTORY OF COMMON SENSE - CE
- EUROPEAN COMMISSION GREETS AGREEMENT
ON FUTURE RELATIONS OF SERBIA, MONTENEGRO
- FISCHER WELCOMES SIGNING OF AGREEMENT
BETWEEN SERBIA, MONTENEGRO
- REPUBLIKA SRPSKA PREMIER PRAISES
PRESERVATION OF COMMON STATE
- CROATIA WELCOMES BELGRADE AGREEMENT
- WORLD REACTS POSITIVELY TO SIGNING OF AGREEMENT

(...)

SERBIA MONTENEGRO AGREEMENT

YUGOSLAVIA CEASES TO EXIST
BELGRADE, March 14 (Beta) - A
historical agreement was signed in Belgrade
on March 14 entitled "Proceeding Points
For the Restructuring of Relations
Between Serbia and Montenegro."
The agreement was signed in the
Federation Palace in Belgrade by Serbian
and Montenegrin premiers Zoran Djindjic
and Filip Vujanovic, Montenegrin
president Milo Djukanovic, Yugoslav
president Vojislav Kostunica, Yugoslav
deputy prime minister Miroljub Labus
and EU high representative Javier Solana.
The name of the new state union is -
Serbia and Montenegro.

PROCEEDING POINTS FOR THE RESTRUCTURING
OF RELATIONS BETWEEN SERBIA AND MONTENEGRO
BELGRADE, March 14 (Tanjug) - This is
the integral text of the Proceeding
Points for the Restructuring of
Relations between Serbia and Montenegro:
Agreement on Principles. The Agreement
on Principles of relations between
Serbia and Montenegro within the state
union shall be signed by
participants in the talks: the
President of the Federal Republic of
Yugoslavia, the Deputy Federal Prime
Minister, the President of the
Republic of Montenegro, the Serbian and
Montenegrin Premiers and, as a
witness, the EU High Representative for
Common Foreign and Security Policy.
The document shall be submitted for
debate to the Parliaments of member
states and the Federal Parliament.
Constitutional Charter. On the basis of
opinions put forward in
parliamentary debates, that is,
parliamentary conclusions, a constitutional
commission, whose members shall be
delegated by the Parliaments of the
Federal Republic of Yugoslavia (FRY),
Serbia and Montenegro, shall draft
the Constitutional Charter, the highest
legal act of the state union of
Serbia and Montenegro. The text of this
act shall be adopted by the
republican parliaments first, and then
submitted to the Federal Parliament.
Such procedure would reaffirm the
elements of Serbian and Montenegrin
statehood, stemming from the
present-day factual situation and the
historic rights of the two member states.
Provision of Reconsideration. Upon the
expiration of a three-year period,
the member states shall be entitled to
instituting proceedings for a change
of the state status, that is,
withdrawal from the state union. If
Montenegro withdraws from the state
union, international documents related
to the FRY, the UN Security Council
Resolution 1244 in particular, shall
relate to and fully apply on Serbia as
its successor.
A member state that uses this right,
shall not inherit the right to
international and legal status, and all
debatable issues shall be regulated
specifically between the state
successor and the newly established state.
If in a referendum process both member
states declare themselves in favor
of a change of the state status
(independence), all debatable issues shall
be resolved in succession proceedings,
as was done in the case of former Yugoslavia.
The laws on Referendum shall be adopted
by the member states, taking full
account of internationally recognized
democratic standards.
The name of the state: Serbia and Montenegro.
Institutions of Serbia and Montenegro:
the Parliament, the President, the
Council of Ministers and Court.
Parliament: A unicameral parliament
providing certain positive
discrimination for Montenegrin
representatives. The Laws on the Election of
Representatives to the Parliament of
Serbia and Montenegro shall be adopted
by the member states, in compliance
with the principles defined by the
Constitutional Charter. Mechanisms to
protect against outvoting of member
states shall be provided for.
President of Serbia and Montenegro: The
President, elected by the
Parliament of Serbia and Montenegro,
shall propose the composition of the
Council of Ministers and direct its work.
Council of Ministers: The Council of
Ministers shall be composed of five
departments: foreign affairs, defense,
international economic relations,
internal economic relations and
protection of human and minority
rights.
The competencies of the ministries
shall be defined in detail subsequently.
The Court of Serbia and Montenegro: The
Court shall have
constitutional-court and administrative
court functions, and shall deal
with harmonization of court practice.
The administrative court function
shall be exercised in relation with
administrative acts of
the ministries of the Council of
Ministers. The Court shall take legal
views and give opinions related to the
harmonization of court practice. The
Court is not an appellate court and has
an equal number of judges from the
member states.
The Army: The Army of Serbia and
Montenegro shall be under the command
of the Supreme Defense Council, composed
of three presidents. The Supreme
Defense Council shall make decisions by
consensus. Conscripts shall serve
the army on the territory of their
respective member states, with the
possibility of serving on the territory
of the other member state, if they
wish so.
Elections and Appointments: Upon the
promulgation of the Constitutional
Charter under specified procedure,
elections shall take place, the
Parliament of Serbia and Montenegro
shall be constituted, the President of Serbia
and Montenegro shall be elected, as
well as members of the Council of
Ministers and judges of the Court of
Serbia and Montenegro. It shall also be
possible to provide for rotating
during a term in office. (In the
Ministry of Foreign Affairs and the
Ministry of Defense, the minister and
his/her deputy from different member
states shall take turns when
one half of the term in office expires).
In representing the member states in
international organizations (UN, OSCE,
EU and the Council of Europe), parity
shall be provided for through
rotation, whereas special models for
representation shall be defined for
international financial organizations.
In diplomatic and consular
representative offices of Serbia and
Montenegro abroad, a special agreement
shall be made on proportionate representation
of the member states.
The Constitutional Charter shall be
submitted to the Parliament for
deliberation by the end of June 2002 at
the latest.
Dislocation of federal institutions.
Some federal institutions can be
headquartered in Podgorica.
Constitutional reconstruction of the
member states. Within the activities
aimed at the promulgation of the
Constitutional Charter of Serbia and
Montenegro, the member states shall
amend their respective constitutions in
compliance with the Constitutional
Charter of Serbia and Montenegro or
promulgate new constitutions by the end
of 2002 at the latest.
Economic sphere. The level of economic
reforms reached in Serbia and
Montenegro shall be a proceeding point
for regulating mutual economic relations.
The member states shall be responsible
for unhindered operation of a common
market, including the free flow of
people, goods, services and capital.
Harmonization of the economic systems
of the member states with the EU
economic system shall overcome the
existing differences, primarily in the
spheres of trade and customs policies.
In both regards, economic reforms that
have already been carried out in the
member states shall be taken into full
account, while solutions that would
provide for the quickest integration
into the European Union shall be
accepted. Transitional solutions in
harmonizing trade and customs policies
should take into account the interests
of the member states.
The European Union shall assist in the
accomplishment of these objectives
and monitor the process on a regular basis.
The modalities for the achievement of
these objectives shall be elaborated
in parallel with the Constitutional
Charter.
If one of the member states believes
that the other does not live up with
commitments under this agreement
concerning the operation of a common
market and the harmonization of trade
and customs policies, it shall
reserve the right to raise the matter
with the EU in the context of the
Stabilization and Association Process
with the view to the adoption of
appropriate measures.
The EU shall guarantee that, if other
conditions and criteria for the
Stabilization and Association Process
are fulfilled, the agreed principles
of constitutional organization shall
not be an obstacle to a rapid
conclusion of the Agreement on
Association and Stabilization.
President of the Federal Republic of
Yugoslavia Vojislav Kostunica
Deputy Federal Prime Minister Miroljub Labus
President of the Republic of Montenegro Milo Djukanovic
Premier of the Republic of Serbia Zoran Djindjic
Premier of the Republic of Montenegro Filip Vujanovic
Witnessed by
EU High Representative for Foreign and
Security Policy Javier Solana
Belgrade, March 14, 2002

PRESIDENT KOSTUNICA SATISFIED WITH AGREEMENT
BELGRADE, March 14 (Beta) - Yugoslav
president Vojislav Kostunica said on
March 14 that proceeding points for the
restructuring of relations between
Serbia and Montenegro represent "a
political agreement providing basic
guidelines and a sketch of future new,
even brand new, relations between
Serbia and Montenegro."
Expressing satisfaction with the
agreement signed, Kostunica said the
document will first be debated in the
Yugoslav Parliament and the Serbian
and Montenegrin Legislatures and then
included in the Constitutional Charter.
The agreement on the restructuring of
relations of Serbia and Montenegro
represents political agreement to be
adopted by the Yugoslav Parliament and
Serbian and Montenegrin Legislatures,
said the Yugoslav president upon
signing the agreement in the Federation
Palace in Belgrade.

AGREEMENT BASIS FOR STATE UNION WITH A
FUTURE - YUGOSLAV PREMIER
BELGRADE, March 14 (Tanjug) - Yugoslav
Premier Dragisa Pesic said Thursday
that the proceeding points for
restructuring the relations between Serbia
and Montenegro contain all elements for
creating a new state union of
Serbia and Montenegro with good
political and economic prospects.
Pesic told Tanjug that the adoption and
signing of the agreement to this
effect has realized the priority
endeavors of the federal government, which
focused on preserving and strengthening
the federal state, for which this
document constitutes a promising foundation.
Pesic thanked the international
community, and particularly the European
Union and its High Representative
Javier Solana, for their important role
in overcoming the very serious state
and legal crisis in this country.

POLITICALLY A CONFEDERATION,
ECONOMICALLY TOWARDS A COMMON MARKET, LABUS
BELGRADE, March 14 (Tanjug) - In the
political sphere, a confederation was
agreed "and it will remain as such,"
while in the economic sphere, there
will be two markets - in Serbia and
Montenegro with the obligation to
integrate into a common market, Deputy
Federal Prime Minister Miroljub
Labus said in Belgrade on Thursday.
Labus was speaking to journalists after
talks on the restructuring of
Yugoslavia ended by the signing of the
joint political document in the
Federation Palace today.
Labus said that guaranteed is the
freedom of movement, a single passport,
property and joint courts, free
university studies and unimpeded
medical treatment.
All sides undertook a political
obligation not to work against the
joint state, each republic will be
financially responsible for its foreign
debts and the European Union will do
everything to prevent the non-fulfillment of
obligations.

NBY GOVERNOR SAYS SOLANA IS ONLY WINNER
SUBOTICA, March 14 (Tanjug) - The
agreement between Serbia and Montenegro
is a political issue with no spirit,
life or economic contents, National
Bank of Yugoslavia (NBY) Governor
Mladjan Dinkic said in Subotica, Serbia's
northern province of Vojvodina, and
added that new conflicts were possible
regarding the redefinition of relations
between the two state entities, since
"nothing has been solved."
The good thing about this entire affair
is that the problem will be
resolved peacefully and that Yugoslav
President Vojislav Kostunica was
right when he said that the agreement
implied neither a loose federation
nor federation, but an "original
solution," Dinkic said.
"The solution is really original,
because there can be no state without
common monetary and customs systems,"
Dinkic said and added that EU foreign
policy chief Javier "Solana is the only
winner in the entire affair."
Dinkic said that he favored "clean
solutions," and in this case this meant
that Serbia and Montenegro should
either constitute one state or they
would represent two separate states.

NEW STATE WILL BE CHEAPER THAN PREVIOUS
THREE, SAYS SERBIAN PREMIER DJINDJIC
BELGRADE, March 14 (Beta) - Serbian
Premier Zoran Djindjic said on March 14
that the new union of Serbia and
Montenegro will be cheaper than all the
previous ones, which have been based on
a lack of budget control.
"The previous states were based on the
principle - all can spend as much as
they want and only one or two major
members invest something," Djindjic
told journalists during his visit to
Smederevo on March 14.
"We now have 10,000 members of the
federal administration, we have budgets
out of our control - one of them being
the military budget - where we could
save money for sure if we had control.
We also have federal government
expenses that are not always related to
work," Djindjic said.
He said that future budget control will
order each republic when adopting
its budget also adopts a share in the
federal budget.
Djindjic pointed out that "there is no
excuse for early elections" in
Serbia, because the Democratic
Opposition of Serbia held a majority in
the Legislature and that it would be
"unnatural" to announce early
elections.

UN SECURITY COUNCIL RESOLUTION 1244
VALID EVEN AFTER AGREEMENT ON
NEW FEDERATION, COVIC
BELGRADE, March 14 (Tanjug) - The
agreement on the restructuring of the
federation changes nothing with regards
to Kosovo-Metohija, Serbian Vice
Premier Nebojsa Covic, who is also the
head of the Coordination Centre for
Kosovo-Metohija, told Tanjug on Thursday.
"UN Security Council Resolution 1244 is
fully valid and this has no effect
on it, its implementation and on
Kosovo-Metohija itself," Covic set out.
He recalled that "the foundation or
basis for redefining the federation was
made with this in mind" and was signed
by the Yugoslav, Serbian and
Montenegrin governments and by the
European Union's Foreign and Security
Policy Chief Javeir Solana.

AGREEMENT GOOD FOR SERBIA, IF
IMPLEMENTED CONSISTENTLY, SAYS DJELIC
BELGRADE, March 15 (Tanjug) - Serbian
Finance Minister Bozidar Djelic said
late Thursday in reaction to the
signing of an agreement on restructuring
relations between Serbia and Montenegro
that it will be a good agreement
for Serbia if it is realized consistently.
This means that, in this system
organization, Serbia will get all the
economic attributes of a sovereign
state," Djelic said in a statement for
Belgrade-based Serbian Radio Television (RTS).
Djelic explained that this means Serbia
will have its own customs, foreign
policy, its national bank, emission and
fiscal policy.
Something that would have seemed like a
bad economic compromise has been
avoided, he said. "Since there is no
common customs system - we have two
customs systems," Djelic said.

DJUKANOVIC :MONTENEGRO PRESERVES
RESULTS OF ECONOMIC REFORMS
BELGRADE, March 14 (Beta) - Montenegrin
president Milo Djukanovic said on
March 14, upon signing the agreement on
future relations between Serbia and
Montenegro, that with the document
"Montenegro has preserved the results
of its economic reforms" and secured its
interests before international
institutions.
"The most important thing is that all
the results of economic reforms as
well as important levers of the
economic system for further dynamic process
of harmonization of our (Montenegrin)
economic system with the EU system
have been preserved," Djukanovic told
the press.
Djukanovic said "through the mechanism
of rotation, full representation of
Montenegrin interests in international
institutions has been secured."
"Finally, the document does not
jeopardize the right of Montenegro to
consult the will of its citizens
regarding the question of its future
upon the expiration of a certain period,"
said Djukanovic. Upon his return to Podgorica,
Djukanovic said he did not give up state
independence, but that he signed the
agreement on new relations with Serbia
since due to specific circumstances the
referendum on state status should be postponed.
Djukanovic told the press conference
that Solana guaranteed Montenegro the
right to hold a referendum, the results
of which would be recognized upon
the expiration of three-year period.

MONTENEGRO ONCE AGAIN IN EUROPE UNDER
ITS NAME, MONTENGRIN PREMIER
PODGORICA, March 14 (Tanjug) -
Montenegrin Premier Filip Vujanovic assessed
Thursday that the "signing of an
agreement between Serbia and Montenegro,
their relations are based on new
foundations, as they are no longer
relations of two republics of
Yugoslavia, but of two states members
of a state union carrying their names."
"In this way Serbia and Montenegro, for
the first time since 1918, are
represented in the international
community under their names and on an
equal footing," Vujanovic told
Podgorica electronic media.
Vujanovic explained that the new union,
compared to the current FRY, will
be different in so far as "this
community is no longer constituted by a
Constitution, adopted by federal
parliament, but by a Constitutional
Charter."
He pointed out that Montenegro
preserved "all instruments and content
of economic sovereignty, preserved its
monetary, customs and foreign trade
sovereignty with a liberal foreign
trade regime."

AGREEMENT - STEP TOWARD STABILITY OF
BALKANS, SAYS SOLANA
BELGRADE, March 14 (Beta) - EU high
representative Javier Solana said on
March 14 that the signing of an
agreement on redefining relations
between Serbia and Montenegro was "a step
toward stability" in the region and
Europe.
After the signing of the agreement at
the Federation Palace in Belgrade,
Solana told the negotiators that they
will keep receiving aid and support
from the EU.
"I want to tell all my friends here
that they need not doubt they will get
support and aid from the EU in today's
task. They should know that from
today we will start building European
institutions," Solana said.
"Today is not the end, but the
beginning of a new chapter, which we
will write together and which will lead us
to EU membership. We will be with you
every day of the process," Solana concluded.

WASHINGTON WELCOMES AGREEMENT BETWEEN
SERBIA AND MONTENEGRO
WASHINGTON, March 14 (Tanjug) - The
United States administration has
welcomed the agreement on new relations
between Serbia and Montenegro,
stressing it was in keeping with the US
stand that Montenegro should not
break off from democratic Yugoslavia.
"The agreement is in line with our
long-standing view that there should be
a democratic Montenegro within a
democratic Yugoslavia. We believe that the
agreement signed today will help Serbia
and Montenegro best achieve their
aspirations to fully integrate with
Europe and will promote stability
within Yugoslavia and the region,"
White House spokesman Richard Boucher
said on Thursday.
Commending the leaders of Serbia and
Montenegro for arriving at an
agreement, Boucher said that "much work
remains to be done." Washington
expects the leaders of Serbia and
Montenegro to realize this agreement in
full through constructive work, he said.

SERBIAN-MONTENEGRIN AGREEMENT MARKS
VICTORY OF COMMON SENSE - CE
BELGRADE, March 14 (Tanjug) - Council
of Europe (CE) Parliamentary Assembly
President Peter Schieder and CE
Secretary General Walter Schwimmer on
Thursday welcomed the signing of an
agreement on the reorganization of the
Serbian-Montenegrin relations as an
important factor in bringing stability
to the Balkan region.
"Dialogue, responsibility and common
sense have prevailed. We wish to pay
tribute to the political leaders in the
Federal Republic of Yugoslavia for
reaching a solution acceptable to all
and to the EU envoy Javier Solana for
helping them to do so," the CE said in
a statement sent to Tanjug.
Schieder and Schwimmer said that "from
now on, time and energy should be
devoted to the real challenges facing
Yugoslav society: the consolidation
of democratic institutions, the
implementation of the economic reform
and the compliance with the country's
international obligations."

EUROPEAN COMMISSION GREETS AGREEMENT ON
FUTURE RELATIONS OF SERBIA, MONTENEGRO
BRUSSELS, March 14 (Tanjug) - The
European Commission greeted Thursday
the signing of an agreement on the
restructuring of relations between Serbia
and Montenegro as huge progress towards
stabilization in the Balkans.
This is good news for Europe and the
future of the western Balkans on the
road to the European Union, said
European Commission spokesman Gunard
Wiegand at a press conference in Brussels.
Wiegand added that the signing of the
agreement on the principles of
relations of Serbia and Montenegro
within a state union represents a huge
step towards securing stability in the
entire region, Reuters news agency reported.
The signing of the document, Wiegand
assessed, will enable governments and
parliaments to devote themselves to the
challenge of modernization of
Serbia and Montenegro, make their
economy competitive and give concrete
prospects to the population.

FISCHER WELCOMES SIGNING OF AGREEMENT
BETWEEN SERBIA, MONTENEGRO
BERLIN, March 14 (Tanjug) - German
Foreign Minister Joschka Fischer on
Thursday welcomed the readiness of
Belgrade and Podgorica to collaborate on
the resolution of relations within the
common state.
Fischer said that the Agreement on the
Principles of Relations between
Serbia and Montenegro was a very
important progress.
"We hope this moment will be used for
concluding the constitutional process
speedily and successfully," Fischer said.

REPUBLIKA SRPSKA PREMIER PRAISES
PRESERVATION OF COMMON STATE
BANJA LUKA, March 14 (Tanjug) -
Commenting on the signing of a
Serbian-Montenegrin agreement in
Belgrade on Thursday, Republika Srpska
Premier Mladen Ivanic said that it was
important that the common state of
Serbia and Montenegro had been
preserved.
Ivanic told Tanjug that the agreement
on future relations between the two
republics was correct, enabling a
normal functioning of the new state,
which would preserve the continuity of
Yugoslavia as a guarantor of the
Dayton agreement.
"This is a matter of the two republics
and from the point of view of the
(Bosnian Serb) Republika Srpska this is
a correct solution," Ivanic said.

CROATIA WELCOMES BELGRADE AGREEMENT
ZAGREB, March 14 (Tanjug) - The
Croatian Foreign Ministry on Thursday
welcomed the signing of an agreement
between Serbia and Montenegro, saying
that Croatia had always urged that the
only remaining members of the former
Yugoslav federation resolve their
relations in a new way, primarily
through an agreement.
The Croatian Foreign Ministry statement
voiced belief that the agreement
marked the final ending of a period in
history and that the reaffirmation
of the statehood of Serbia and
Montenegro, that is the organization of
their relations on this basis, opened
new horizons for relations and
normalization in this part of the world.
Croatia regards stable neighborhood as
its strategic interest for the sake
of preserving peace and security and
encouraging progress in the entire
region, the statement said.

WORLD REACTS POSITIVELY TO SIGNING OF
AGREEMENT
BELGRADE, March 14 (Beta) - French
ambassador to the Yugoslavia Gabriel
Keller said on March 14 that Paris
welcomed the signing of the agreement,
saying he was certain that it would
contribute to the improvement of
internal trends and relations in the
region.
Vienna also welcomed the agreement
between Serbia and Montenegro. The
Austrian Foreign Minister Benita
Ferero-Waldner said at a news conference
in Vienna that she welcomed the
solution which enabled Montenegro to
give up the independence referendum.
The signing of the agreement was also
welcomed by the Slovak Foreign Ministry.