1. LINKS on the "Yugoslavia-to-Iraq equipment export" scandal
2. AFP dispatches
3. TANJUG and BETA dispatches


=== 1 ===


LINKS

COMMENTARY:

> http://www.antiwar.com/malic/m-col.html
Casus Belli: Balkans The Key To Iraq War? (by Nebojsa Malic)

NEWS AND ARTICLES:

> http://news.bbc.co.uk/2/hi/world/europe/2343355.stm
Sunday, 20 October, 2002, 00:45 GMT 01:45 UK
Bosnia firm 'sold arms illegally'
The Nato inquiry is expected to last several weeks
By Nick Hawton In Sarajevo

> http://breaking.examiner.ie/2002/10/22/story73662.html#
Yugoslav dealer exported equipment to Iraq

> http://english.pravda.ru/main/2002/10/23/38546.html
Yugoslavia Accused of Weapons Sales to Iraq (by Sergey Yugov)
PRAVDA (RUSSIA) 13:53 2002-10-23

> http://news.bbc.co.uk/2/hi/world/europe/2351795.stm
Wednesday, 23 October, 2002, 00:59 GMT 01:59 UK
Yugoslav officials sacked in arms row
Spare parts for Mig fighters are said to have gone to Iraq

> http://www.reuters.com/news_article.jhtml;jsessionid=
KUO1UKXX2FPY4CRBAEZSFEY?type=search&StoryID=1616602
NATO Gathers Proof of Bosnia Arms Export to Iraq
Last Updated: October 22, 2002 05:51 PM ET
SARAJEVO (Reuters)

> http://www.reuters.com/news_article.jhtml?type=
search&StoryID=1616531
Yugoslavia Sacks Minister over Arms-To-Iraq Charge
Last Updated: October 22, 2002 05:08 PM ET
By Will Hardie and Nedim Dervisbegovic

> http://story.news.yahoo.com/news?tmpl=story&u=/ap/
20021022/ap_wo_en_po/bosnia_intelligence_service_1
Bosnia's top international official fires head of intelligence service
Tue Oct 22, 8:40 AM ET
By AIDA CERKEZ-ROBINSON, Associated Press Writer
SARAJEVO, Bosnia-Herzegovina

> http://www.washingtonpost.com/wp-dyn/articles/A2549-2002Oct22.html
THE WASHINGTON POST
U.S. Says Two Serb Firms Are Helping Iraqis
Yugoslav, Bosnian Companies Accused of Repairing Fighters, Sharing
Technology
By Nicholas Wood - Special to The Washington Post
Wednesday, October 23, 2002; Page A24

> http://news.independent.co.uk/europe/story.jsp?story=345340
THE INDEPENDENT (London)
24 October 2002
Yugoslavia sacks minister in arms to Iraq scandal
By Vesna Peric Zimonjic in Belgrade

> http://www.dailytelegraph.co.uk/news/main.jhtml?xml=%2Fnews%2F
2002%2F10%2F24%2Fwirq324.xml&secureRefresh=true&_requestid=496098
THE DAILY TELEGRAPH (London) (Filed: 24/10/2002)
Serbian firms 'in arms deal with Iraq'
By Alex Todorovic in Belgrade

> http://www.reuters.com/news_article.jhtml;jsessionid=
O2LLZL1FLCQOKCRBAELCFEY?type=search&StoryID=1629406
Missile igniter smuggled towards Iraq
Last Updated: October 24, 2002 03:45 PM ET
RIJEKA, Croatia (Reuters)

> http://www.iwpr.net/index.pl?archive/bcr2/bcr2_20021024_1_eng.txt
Kostunica Blamed for Iraq Debacle (by Aleksandar Radic)

MORE:

> http://www.vj.yu/english/index.htm
The Yugoslav Army's Official Site - News


=== 2 ===


AFP: NATO uncovers weapons exports by Bosnian company accused of links
to Iraq

SARAJEVO, Oct 19 (AFP) - The NATO-led Stabilization Force (SFOR) said
Saturday it uncovered evidence of unreported exports of weapons parts
by a Bosnian Serb military company earlier accused by the
United States of links to Iraq.
"SFOR's preliminary inspection results uncover the existence of a
contract linking the ORAO factory... to the unreported export of
weapons systems components," a press release issued by SFOR said. SFOR
spokesman Yves Vanier declined to provide details, saying more
information will become known in the coming weeks.
The United States informed authorities here in September of its
suspicions that the Orao company, based in the Serb-run part of
Bosnia, was supplying Iraq with spare aircraft parts and that its
staff was travelling there to help with airplane maintenance. The
Bosnian Serb government denied the allegations following an
investigation.
SFOR inspected Orao earlier this month in what they said was a regular
"periodic review and inspection" of the country's military capacities
to ensure compliance with the 1995 Dayton peace accords. It said at
the time that the investigation had nothing to do with the US
allegations.
The 1995 peace deal that ended Bosnia's 1992-1995 war split the
country into the Serb-run Republika Srpska and the Muslim-Croat
Federation. Both entities have separate governments, parliaments,
police and armed forces, and are linked by central institutions. ORAO
comes under the authority of Bosnian Serb military headquarters.
SFOR informed Bosnian Serb authorities of the initial findings and
will also notify the country's central institutions and international
community officials, Vanier said.

AFP Bosnian Serb company sold weapons parts to Iraq via Yugoslavia:
official

SARAJEVO, Oct 22 (AFP) - A Bosnian Serb military company sold weapons
parts to Iraq via a Yugoslav state-controlled company, the country's
top military body confirmed Tuesday.
Stjepan Pocrnja, secretary general of Bosnia's Standing Military
Committee, told Bosnian television that Washington had informed the
body of "illegal activities by Orao (a military company) and its
Yugoslav partner Jugoimport."
"They (the United States) provided us with numerous photos, various
materials ... and a contract confirming" illegal sales of weapons
parts, Pocrnja told Bosnian television.
If confirmed, the sale of weapons parts by Orao to Iraq in violation
of UN Security Council's resolutions would "seriously damage the
international reputation of Bosnia-Herzegovina," Paddy Ashdown, the
top international envoy here, told Bosnian television.
"I hope the Bosnian people will understand that if that was the case,
the most serious actions would need to be taken to protect the
reputation of this country," he added.
Ashdown has wide powers to implement the 1995 Dayton peace accords,
including the power to sack the country's officials.
The 1995 peace deal that ended Bosnia's 1992-95 war split the country
into the Serb-run Republika Srpska and the Muslim-Croat Federation.
The two entities have separate governments, parliaments, police and
armed forces, and are linked by central institutions.
Ashdown's deputy, US diplomat Donald Hays, said earlier Tuesday that
an investigation by the North Atlantic Treaty Organization had
revealed that weapons parts sold by Orao ended up in Iraq via a third
party.
"The results so far indicate that there were items shipped (by the
company) to a second party that ended up in Iraq," Hays told
reporters, without elaborating.
The NATO-led Stabilization Force (SFOR) earlier said it uncovered
evidence of unreported exports of weapons parts by Orao, saying more
details would become known in the coming weeks.
However, Hays could not say whether Orao intended to export the
weapons parts to Iraq, stressing that the investigation's findings
were not yet confirmed.
"I'm not sure that it is clear that this had any governmental
connection," Hays added.
The United States informed authorities here in September of its
suspicions that Orao (Eagle) -- based in the Serb-run part of Bosnia
and under the authority of the Bosnian Serb military headquarters --
was supplying Iraq with spare aircraft parts and that its staff was
traveling there to help with airplane maintenance.
The Bosnian Serb government denied the allegations following an
investigation.
Hays said that there were "ongoing discussions in various capitals"
about this "serious" issue.
The Serbian interior minister said earlier Tuesday that Serbia, which
along with Montenegro makes up Yugoslavia, has begun an investigation
into press reports that a state-controlled company was involved in
exporting military equipment from Bosnia to Iraq.
Minister Dusan Mihajlovic told Belgrade radio B92 that a "very
serious and thorough probe has been launched" into the reports.
Mihajlovic, who is also chairman of Jugoimport's managing board, said
he had no information on "any exports of weapons to Iraq."

Belgrade launches investigation into sale of military equipment to
Iraq.

WASHINGTON, Oct 23 (AFP) - The United States Wednesday welcomed
measures taken by Belgrade to end the sale by a Yugoslav firm of
military equipment to Iraq in violation of UN sanctions, and is urging
the government of Bosnia-Herzegovina to do the same.
"We welcome the steps that were taken yesterday by the government of
Yugoslavia" State Department spokesman Philip Reeker said, adding that
the measures were "significant".
He said Washington had offered "its full support and cooperation" to
Yugoslav authorities in the investigation of this case.
Belgrade dismissed two people allegedly involved in the military
transfers and ordered an investigation into Jugoimport, a
state-controlled company suspected of providing Iraq with military
aviation supplies and expertise.
The authorities in Belgrade acted in response to a request by
American
authorities to halt any ongoing cooperation with Iraq, investigate the
sales and prosecute those found responsible for them.
Washington has also asked the authorities in Bosnia-Herzegovina to
look into the activities of the Arao Aviation firm in the Bosnian
entity Republika Srpska, also suspected of illegal sales to Iraq.
"We certainly expect the relevant authorities in Bosnia-Herzegovina
to
undertake the necessary steps to immediately halt any ongoing
cooperation with Iraq, to conduct a through investigation and to hold
accountable those responsible" Mr Reeker said.
The official said the United States had told Bosnian authorities of
its suspicions in September that Arao -- which is operates under the
aegis of the Bosnian Serb military headquarters.
Boucher said that in addition to violating the UN sanctions, the sales
by Arao contravened the terms of the Dayton Peace Accord which
requires that the NATO-led Stabilization Force (SFOR) be informed
about military export activity in Republika Srpska.
The 1995 peace deal that ended Bosnia's 1992-95 war split the country
into the Serb-run Republika Srpska and the Muslim-Croat Federation.

AFP Three Bosnian Serb officials sacked over weapons sales to Iraq

BANJA LUKA, Bosnia-Hercegovina, Oct 24 (AFP) - Three high ranking
Bosnian Serb officials were sacked Thursday over the sale of spare
parts for Iraqi fighter jets in violation of a UN arms embargo,
officials said.
Bosnian Serb Prime Minister Mladen Ivanic voiced hope that the
dismissals would "prevent further negative consequences" for the
Serb-run entity of Republika Srpska and Bosnia, according to a
statement released after the government held an extraordinary session
over the matter.
The government fired the head of the Bosnian Serb military factory
Orao (Eagle) Milan Prica, Air Force chief Colonel Miljan Vlacic, and
the head of government's weapons trade office Spasoje Orasanin.
Earlier in the day Bosnian Serb authorities said that Orao sold the
parts to Iraq through a Yugoslav state-run company, shifting
attention in the probe to Belgrade.
The government ordered an urgent audit of Orao's finances, while the
defence ministry was told to conduct a thorough investigation into the
case.
Orao was supplying weapons parts to "a country under UN embargo," the
defence ministry admitted in a statement.
"The shipment of weapons parts was done through the (company)
Jugoimport and firms" that Jugoimport is working with in Yugoslavia,
the ministry added.
A Bosnian Serb commission began investigating the company in
September
after the United States alleged that Orao, operating under the
authority of the Bosnian Serb military, was supplying Baghdad with
spare aircraft parts.
The United States also said that Orao employees had travelled to Iraq
to help with airplane maintenance.
According to Nezavisne Novine daily, the NATO-led peacekeeping
Stabilisation Force (SFOR) found during a recent inspection of the
factory a copy of a contract which showed that Orao, based in the
northeastern town of Bijeljina, had shipped weapons parts to Iraq
through Jugoimport.
It was signed by Belgrade-based Jugoimport and Bagdad-based "Al
Bashair Trade Company," the paper reported.
The contract stated that Jugoimport would deliver to Iraq weapons
parts from the Orao aircraft firm and that Orao's employees would
conduct repairs on Iraqi MiG-21 and MiG-29 fighter aircraft in the
period between October 2000 and October 2005, the daily said.
The Bosnian Serb defence ministry said Thursday it was trying to make
a list of tools, spare parts and equipment, which had been delivered
to Jugoimport and its partners.
Belgrade has dismissed two people allegedly involved in the sales and
ordered an investigation into Jugoimport.
The government has said the defence ministry would also be probed
along with Jugoimport, while Serbian police and justice officials
have already launched a full-scale investigation.
Washington said earlier this week it expected both Yugoslavia and
Bosnia to stop the arms transfers, investigate the sales and
prosecute those responsible.
In addition to violating the UN sanctions, Orao's sales to Iraq
contravened the terms of the Dayton peace deal, which requires that
the peacekeepers be informed of all military exports from the
Republika Srpska, US State Department spokesman Richard Boucher said.
Local analysts warned that the scandal was likely to have negative
consequences for both the Bosnian Serb entity and its army.
Due to the scandal "the reputation of Republika Srpska and its army
will be harmed," a military analyst, Ostoja Barasin, told AFP.
The 1995 peace deal that ended Bosnia's 1992-95 war split the country
into the Serb-run Republika Srpska and the Muslim-Croat Federation.
The two entities, linked by weak central institutions, have separate
governments, parliaments, police and armed forces.
Barasin stressed that the affair could give ground to those political
groups who claim that Bosnia should have a unified army, an idea which
is strongly opposed by Bosnian Serbs.


=== 3 ===


http://www.beta.co.yu/e/

BETA DAILY NEWS
October 23, 2002

Yugoslav Government Holds Emergency Session Following
Reports of Illegal Arms Sale to Iraq -- Kosovo Serbs
from Five Municipalities to Vote in Election -- Hague
Prosecutor Announces Indictments for Crimes in Kosovo
-- Solana Envoys Visit Belgrade, Podgorica --
Montenegrin Legislature to Hold Inaugural Session at
Beginning of November

FR YUGOSLAVIA

YUGOSLAV GOVERNMENT MEETS ON IRAQI ARMS AFFAIR. The
Yugoslav government fired on Oct. 22 Jugoimport
company GM Jovan Cekovic and Assistant Yugoslav
Defense Minister Gen. Ivan Djokic.
After an emergency session following press reports of
illegal arms sales to Iraq through the Jugoimport
military equipment dealer, the government released a
statement saying that Djokic was dismissed "as the
person in charge of arms and military equipment
trading."
The government called on state institutions to
investigate Jugoimport's trade deals and other weapons
traders as well, to establish if anyone else was
involved.
The government demanded that Jugoimport close its
office in Baghdad.
The federal government also said it would create a
commission to investigate the issue of permits for
arms and military equipment exports.

---

No trade of weapons and military equipment with Iraq, Yugoslav DEFENSE
Ministry

BELGRADE, Oct 22 (Tanjug) - Since the return of Yugoslavia into the
United Nations, the Yugoslav Defense Ministry has not received any
request to approve trade in weapons and military equipment with Iraq,
therefore, such trade has not been approved, the Ministry said in
Belgrade on Tuesday.
Regarding indications about the possible violation of the UN
sanctions, not only linked to Iraq, the federal Defense Ministry will
investigate each separate case with the aim of taking measures against
the possible perpetrators and reporting to the corresponding state
organs, the statement said.
The Ministry issued the statement following demands for its reaction
by several media regarding an article in today's issue of the Belgrade
daily Blic entitled "Yugoslav Experts in Iraq."

Yugoslav minister says Jugoimport SDPR scandal causes serious damage

BELGRADE, Oct 23 (Tanjug) - Yugoslav Interior Minister Zoran Zivkovic
said late on Tuesday that the scandal with the SDPR Jugoimport
enterprise had caused a lot of damage to Yugoslavia.
"Just a suspicion that something has been done with Iraq, which is
under sanctions, is reason enough to jeopardize the top state
interests," Zivkovic told the Serbian state television's late night
news broadcast on Tuesday. "So far we have succeeded in finding some
confirmation of this suspicion," he said and added that an
investigation aimed at establishing all details would begin on
Wednesday.

Serbian interior minister denies allegations, announces investigation

BELGRADE, Oct 22 (Tanjug) - President of the Jugoimport SDPR JP
company administration board and Serbian Minister of the Interior
Dusan Mihajlovic denied Tuesday allegations by some media on
violations of the UN embargo on exporting military equipment to Iraq,
and announced an investigation of the allegations and
consultations with Yugoslav Premier Dragisa Pesic and Deputy Premier
Miroljub Labus on future measures and activities regarding the affair.
Mihajlovic underlined that since he became Jugoimport SDPR board
president, the board has not discussed any documents containing
information on the export of military equipment to Iraq or on any
engagement of Yugoslav experts in the installation of such equipment
or in troop training in Iraq.
Mihajlovic expressed hope that the affair will soon be cleared up and
that it will not have a negative impact on relations with the UN and
the US in particular.

Jugoimport - SDPR company denies exporting weapons to Iraq

BELGRADE, Oct 22 (Tanjug) - The Jugoimport - SDPR company on Tuesday
denied reports in the Belgrade press that it had mediated in the
export of weapons and military equipment to Iraq allegedly
manufactured by the Orao Aircraft Institute of Bjeljina, Republika
Srpska.
"We do not know what is in question because we have no outstanding
contracts for the delivery of goods and services which have the
character of weapons and military equipment to Iraq," a statement said
adding that this company has not signed such contracts since August
1990 when the United Nations imposed sanctions on Iraq.
"We have strictly adhered to all UN resolutions which introduce
sanctions against Iraq," the statement said.
Jugoimport - SDPR recalled that during the 1970s and 1980s it had
engaged in significant business deals with Iraq which also included
the export of weapons and military equipment, as well as construction
work. This operation was conducted by the Federal Directorate For the
Trade of Special Goods - the legal predecessor of Jugoimport - SDPR.
From that period, there remain debts amounting to 1.2 billion dollars
and very valuable equipment owned by Yugoslav construction companies,
and their protection required that our company retains its offices in
Iraq, the statement said.

Washington calls on Yugoslavia, Bosnia to stop selling arms to Iraq

WASHINGTON, Oct 23 (Tanjug) - Washington on Tuesday called on the
authorities of Bosnia-Herzegovina and Yugoslavia to forbid their
enterprises to sell military equipment to Iraq in violation of UN
sanctions against the country.
The US Administration accused the Orao air institute in Republika
Srpska and the Yugoslav company Jugoimport of supplying military
equipment to Iraq. US State Department spokesman Richard Boucher said
that the US government had strong evidence that the Orao air institute
had been overhauling military aircraft for Iraq in cooperation with
Jugoimport.
The US State Department spokesman said that there were no elements to
indicate any involvement of the Yugoslav and Bosnian governments, or
the involvement of Bosnian Serb authorities.

---

http://www.beta.co.yu/e/

BETA DAILY NEWS
October 24, 2002.

Arms Trade Affair with Iraq Continuing -- USA Approves
Steps Taken By Yugoslav Government -- ICTY President
Reports Yugoslavia to U.N. Security Council -- Still
No Agreement on Constitutional Charter -- Serbian
Constitutional Court Discusses Kostunica Party
Mandates Today -- Incident during High School Student
Protest in Skopje

FR Yugoslavia

REPUBLIKA SRPSKA GOVERNMENT CONFIRMS SELLING WEAPONS
TO IRAQ. The government of Republika Srpska confirmed
on Oct. 23 that the Orao aircraft company from
Bijeljina had violated the embargo on exporting
military equipment to Iraq.
"On the basis of information provided by Republika
Srpska's defense ministry, the Republika Srpska
government has confirmed that the Orao aircraft
company has violated the embargo on exporting military
eqipment to Iraq," government PR Cvijeta Kovacevic
told reporters in Bijeljina.
She said that the government believed that the
responsible people in Orao, the Republika Srpska
general staff and the defense ministry must be
punished, which is under the authority of the
Republika Srpska's Supreme Defense Council.
The U.S. Embassy in Bosnia said that the U.S. has
clear proof that the company from Bijeljina together
with the Yugoslav company Yugoimport provided
maintenance for aircrafts exported to Iraq.
The U.S. Embassy delivered the information to senior
officials in Bosnia, Republika Srpska and Yugoslavia,
who have promised in turn to carry out a detailed
investigation into the issue.
The U.S. expect the relevant institutions in Bosnia
and Yugoslavia to take the necessary steps to
immediately stop any kind of cooperation with Iraq, to
conduct a detailed investigation and to bring the
persons responsible to justice.
The Belgrade daily Blic of Oct. 22 says that SFOR
members recently found ample evidence in the Orao
plant and the Obarska sugar plant in Bijeljina,
showing that despite the UN sanctions, a large
quantity of military equipment has been exported to
Iraq through the Belgrade-based export company
Jugoimport.
At a closed session last night, the Yugoslav
government dismissed Jugoimport's manager Jovan
Cekovic and Yugoslav defense ministry official, Gen.
Ivan Djokic.

KOSTUNICA ON ARMS TRADE WITH IRAQ. On Oct. 23,
Yugoslav President Vojislav Kostunica described as
"unpleasant" the arms trade affair of the Yugoslav
Jugoimport SDRP company with Iraq. However, Kostunica
said that the affair "cannot cause drastic harm the
country's reputation."
"Unfortunately, this affair has been also used for
launching new attacks on the federal authorities, the
Yugoslav Army, and myself, which are as absurd as all
the previous ones," said Kostunica.
"The country's reputation cannot be drastically
affected by a case that has been discovered and
promptly been placed under investigation. However, the
country's reputation, or better to say, the remains of
that reputation, after what are mostly fabricated
affairs, can be harmed by the campaign of backbiting
and tale-bearing at the expense of the federal bodies,
in which both republics are directly involved in a
swift and synchronized fashion," stressed the Yugoslav
president.

DJINDJIC: IRAQ AFFAIR HARMFUL TO COUNTRY'S REPUTATION.
Serbian Premier Zoran Djindjic said on Oct. 23 that
the affair concerning the export of weapons to Iraq
through the Jugoimport company was extremely harmful
to the country's international reputation, there being
no civilian control over the army in Yugoslavia.
Djindjic said that the country's international image,
which has been greatly enhanced over the last two
years, "can now be endangered."
"All those who spoil our image, are working against
the country's interests. What we least need at the
moment when the world is divided into countries who
are fighting against terrorism and those who cooperate
with terrorists, is to be grouped with the latter,"
said the Serbian premier.
He said that the President of Yugoslavia was
responsible for all issues connected with the army and
raised the question of civilian control over the army.
Member of the Atlantic Council of Yugoslavia steering
committee, Zoran Ostojic said on Oct. 23 that an
investigation should be carried out to establish
responsibility for the export of large quantities of
military equipment to Iraq.
"If we manage to react quickly and learn from this
experience, the consequences for the country's
international reputation does not have to be
devastating," Ostojic told BETA.
Asked whether "the Jugoimport affair" can slow down
Yugoslavia's admission to the Partnership for Peace,
Ostojic said that it depends on the state's stand on
the issue and other requirements of the partnership.
"Partnership means sharing the same values - respect
for human rights, adherence to UN resolutions
prohibiting trade with certain countries and respect
for commitments to The Hague Tribunal. We cannot say
that we have achieved anything significant in these
fields," said Ostojic.

---

YUGOSLAV LEFT OFFICIAL IS NOT ADVISOR AT YUGOSLAV EMBASSY IN IRAQ

BELGRADE, Oct 23 (Beta) - The Yugoslav foreign ministry stated on Oct.
23 that the former foreign trade minister, Borisa Vukovic, was not an
advisor at Yugoslavia's embassy in Baghdad.
The ministry views as necessary, for the sake of truth, to point out
that not only is Vukovic is not an advisor at our embassy in Iraq, but
also that his employment with this ministry was terminated in November
1992," it was said in the statement. Meanwhile, the Belgrade firm
Jugoimport closed down its office in Iraq, as the Yugoslav government
had ordered.
After the dismissal of Jugoimport's director and the official in the
Yugoslav Defense Ministry, the United States approved the steps the
Yugoslav government had taken regarding this affair.
According to reports in the Blic daily about illegal arms trade with
Iraq, Vukovic issued permits for such deals as an advisor at the
Yugoslav Embassy in Iraq. Vukovic is a member of the Yugoslav Left,
whose leader is Mirjana Markovic, the wife of the former Yugoslav
president Slobodan Milosevic.
A Yugoslav Left official, Dragana Kuzmanovic, confirmed that Vukovic
was in Iraq, but said that she did not know what he was doing there.