CorD Magazine No.17 by CorD Magazine

10 NEW BALKAN ATMOSPHERE

interviews | opinions | news | comments | events No17 - June 2005

The mutual relations of our two countries in continuity are excellent, friendly and in good-neighbourly style. It's a well known fact that the relations between the two countries, and also between our people, are traditionally remarkably close.

Director: Ana Novcic ana.novcic@cma.co.yu Editor in Chief: Dragan Bisenic d.bisenic@cma.co.yu

Branko Crvenkovski

Deputy Editor: Mark Pullen m.pullen@cma.co.yu

President of FYR Macedonia

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28 SERB AGGRESSION NOT TO BLAME Russian policy on Yugoslavia became an issue of the American elections in the '70s, when the Soviets made open comments about Yugoslav policy. In retrospect, it was quite clear that Yugoslavia was too important for the U.S. to allow something to happen to it.

Brent Scowcorft Former U.S. National Security Advisor

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Verica Barac

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CorD |June 2005

â&#x20AC;ŚDinkic did not respond to a single argument from the Council's report, but accused the Council members of being ignoramuses, claiming that they did not have a clue what they were talking about.

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TILTING AT WINDMILLS

President of the Anti-Corruption Council

44 RETURN TO THE INVESTMENT MAP The 14th Annual Conference of the European Bank for Reconstruction and Development passed successfully in Belgrade this May

EBRD AGM - BELGRADE

contents

20 WINNING HEARTS & MINDS Only when you know exactly what Europe can bring will you be in the right state to create the energy for the hard process of reforms which is awaiting you on the way towards European integration.

H.E. Andreas Zobel German Ambassador to SCG

24 32

NO STABILITY COMING

ENSURED SUSTAINABILITY

Dircetor of Chatam House

there are many people in the United States who believe that the main source of legitimacy for the country is the Constitution and that overrides all other considerations of international lawâ&#x20AC;Ś

In order to receive support from the international community, the recipient countries must implement appropriate reforms. SouthEastern European governments have taken it upon themselves to carry out economic reforms and fight corruption and organised crime within the context of the Stability Pact.

STABILITY PACT

BIANNUAL CONFERENCE

SELF-SUFFICIENCY REQUIRED We have co-operation with French and Belgian Ministries of Labour and will try to copy their good solutions for the simple reason that we do not need to reinvent the wheel

SPORT

Victor Bulmer Thomas

Slobodan Lalovic Serbian Minister for Labour, Employment and Social Policy

ECONOMIC REVOLUTION The top priority of the new Ukrainian government is to implement another revolution, this time in the field of economics. Unfortunately, political 'miracles' are not sufficient to build a prosperous country.

H.E. Ruslan Demchenko Ambassador of the Ukraine to SCG

MEXICAN CUISINE

82 CorD | June 2005

Comment

Ministers & Media Veselin Simonovic - Editor-in-Chief, Blic

he practitioners of a Belgrade Parliament will not pass the decriminalisation of libel act medical clinic that has been because MPs were angered over media reports on government labelled as 'suspect' have salary increases. The Serbian Culture Minister even went so far examined primary school pupils as to say that insulting comments published by one Serbian using the "pendulum and prism" daily were sufficient grounds to send journalists to jail for method in an attempt to prove the defamation of character. validity of an alternative treatment This was a tragically comical discussion that only conmethod. This was done without any firmed to me that this Government does not understand the parental consent, but with the writ- nature of the media and has no intention of regulating the ten authorisation of Serbian field on the basis of accepted European standards. Education Minister Slobodan VukTop of the list of priorities for the Government should be sanovic. co-operation with the media, coupled with implementation of The Headmistress of the school at a good law on Access to Information to replace the existing which pupils were used as prover- law, which is poor. They should also implement laws that bial guinea pigs has not lost her job for allowing the treat- have already been adopted, as well as preventing political ment, although she has admitted that she was so ashamed leaders from owning media companies and banning monopothat she could not bear to look parents in the eye. lies: publishers should not be permitted to own their own Minister Vuksanovic, however, showed no such humility retail networks, for example. and did not even call for her resignation in an attempt to The Government has merely been asked to provide prebypass his accountability. Moreover, the Serbian requisites that will create a level playing field for the market Government official defended his actions with untruths and applied pressure on the press by Whenever a senior Serbian official wishes personally writing to warn the editors of popular to mount a defence against public critilocal dailies that were 'out to get him'. As Editor-in-Chief of one such daily, I do not cism, the first move is to accuse the media deny the right of any citizen to appeal to publish- of 'fronting' for a certain political party. ers in order to defend ones actions, or inaction, but when ministers write open letters it is a blatant act of competition of media outlets, and nothing more. The current political pressure (and, at the same time, it is downright mayhem suits politicians well, because they are able to refer indecent). to the lack of media professionalism when they need to I would not be writing about him at all if this incident was defend themselves and their actions. not merely the latest in a series of cases where Serbian politiAn ideal step towards the professionalizing of Serbia's cians in power have simply trampled over every value they media sphere would be the provision that newspapers be fought for whilst in opposition. owned solely by publishing houses, and that licenses and Young minister Vuksanovic has seemingly forgotten that, broadcast frequencies are not granted to public companies, as a minister, he is obliged to assume public accountability major firms or political parties and their leaders (God forbid). for everything he does, or fails to do. Attacking the media Perhaps this suggestion is not based on legal grounds, but it and accusing journalists of fabricating affairs for political would be precious to the democratisation of the nation. gain is nothing more than a cheap attempt to distort personI also struggle to understand media professionals who al, ministerial responsibility. protest against foreign publishing companies because they Whenever a senior Serbian official wishes to mount a deem local tycoons to be somehow closer and dearer. Do they defence against public criticism, the first move is to accuse not feel sickened when confronted by their media? the media of 'fronting' for a certain political party. In order I will conclude by returning to the Minister of Education. to maintain objectivity, I must admit that there are those in In my opinion, the Government should have replaced him the media who publish half-truths (and even blatant lies) in simply because he did not personally offer his resignation. an attempt to tarnish the image of a political opponent: read- This would not be a great loss for the Government, but would ing the headlines over morning coffee, I can easily note who represent a massive gain in the democratisation of Serbia. By has paid what to whom in order to publicise which texts. forcing his resignation, the Government would gain the Two other ministers of the current Serbian Government respect of the professional media by confirming that the pubexplained to Editors and OECD representatives that the Serbian lic's interest is still at the top of their list of priorities.â&#x20AC;˘

CorD | June 2005

Interview CorD Exclusive

Branko Crvenkovski, President of FYR Macedonia

NEW BALKAN ATMOSPHERE I can completely objectively state that the condition in the region, after a decade of war and conflicts, bloodshed and economic destruction, is achieving the physiognomy of stability and a completely different, positive perspective so said FRY Macedonia's President, Branko Crvenkovski, speaking exclusively to CorD this month. By Dragan Bisenic; Photo: N. Milic, S. Milojkovic

ccording to Crvenkovski's personal analysis, the contributory factors leading to the new 'face' of the region are that "All countries have opened up to each other and finally realised that good neighbourly relations and intensive regional co-operation are imperative for development, firstly of their own countries and, afterwards, of the region as a whole. "Today there is no country in the region that hasn't set membership in the EU as its highest goal and which is not working seriously towards that goal. Moreover, among political priorities, economic interests have overtaken security interests and, in that context, the regional focus has returned to the practical interests of business communities. "Another important element I would emphasise is the existence of new leaderships in countries which, in contrast

tion and the joint European agenda. I think that, slowly but surely, we are overcoming Balkan stereotypes and replacing them with European values. That is a priority for the faster development of our countries and better living standards for our citizens", Crvenkovski emphasised.

How far has FYR Macedonia progressed in relations with the EU and when do you expect the country to join the Union? During the past three years Macedonia has made enormous progress on its road to the EU. We have focused on implementation of particularly hard and painful reforms for citizens, particularly regarding the economic and social fields, as well as hastening and globally implementing Ohrid's Ramkov Agreement, as a key political criterion for us. At the beginning of the year we applied for EU membership. After completing the Euro-questionnaire of then EC President Romano Prodi in Skopje, our capaciThe mutual relations of our two countries in conti- ty as a state was on trial and, more than anynuity are excellent, friendly and in good-neigh- thing, the state administration had to answer bourly style. It's a well known fact that the rela- all questions quickly, efficiently and with qualtions between the two countries, and also between ity. I think we passed that test successfully. Realistic expectations are that we will our people, are traditionally remarkably close. receive a positive response from the EC by the to the previous situation, now have joint interests and priori- end of the year and, as such, will have achieved the most ties and are oriented towards friendly co-operation. That has important thing for us in this moment: the status of an EU all contributed to the creation of a new atmosphere in the Candidate State. By so doing we will confirm that we are region, in which isolation and conflict are replaced with standing in the highest phase of relations with the EU but, openness and dialogue; while sharp, confrontational tones more than anything, we will open a path to other sources of and interests have been replaced by intensive communica- funding and enable the important arrival of foreign investors.

CorD | June 2005

Interview Previously, presently and, I am convinced, in the future period as well, the key elements depend on us alone. In terms of political criteria, I think that things are positive. We need a major boost to the economy, particularly in terms of the creation of new jobs. That is why we need foreign investments the most and why we need to shorten our journey to full Eu membership. How would you evaluate relations between FYR Macedonia and SCG? The mutual relations of our two countries in continuity are excellent, friendly and in good-neighbourly style. It's a well known fact that the relations between the two countries, and also between our people, are traditionally remarkably close. Additionally, they are making a new boost and experiencing a positive trend as a result of the democratic changes in SCG. Our joint obligation is to continue further in the same vein and maximise opportunities. We should continue with regular meetings at the highest level, the atmosphere of which is extremely positive and characterised by mutual understanding. I base my optimism on satisfaction and the constructiveness of my official and personal contact with the top of the state union. However, it remains necessary to duplicate this situation in terms of relations between our business communities in order to further stimulate our two economies. Which fields boast the best co-operation between FYR Macedonia and SCG, and where can co-operation be improved? I would emphasise that good co-operation exists in totality, but I would add that there is one large unutilised space in terms of raising economic co-operation, with which I, personally, am not satisfied. I consider that this new field of mutual co-operation will represent a hastening of Euro integration. We are ready to share our experiences with SCG and, within the framework of our possibilities, ease the promotion of SCG as a serious potential EU member. That is in our mutual interests. Besides that, we support SCGâ&#x20AC;&#x2122;s efforts for membership in NATO's Partnership for Peace programme. Considering that we are constituent parts of a former mutual sate, many of our production resources are compatible. Is this sufficiently exploited in our mutual cooperation? I would say that it's not even close to enough. I agree that our two economies are compatible and connected, and that business contacts and mutual orientation towards co-operation are a fact. However, political events in the region have caused them to gradually fade. And the creation of new links became harder and harder. We should do everything to take advantage of the existing Free Trade Contract, whilst also making possible a frame for increasing co-operation, particularly in terms of direct investments; as well facilitating the possible joint appearance of firms from the two countries on other markets. I expect the regeneration of long-term stability in the region, but also of our institutions. I also expect the fight against crime and corruption to stimulate co-operation in this direction. How would you evaluate Macedonia's transition process; where did you succeed, where did you fail and what would you do differently? Although I think we are slowly approaching the end of

Branko Crvenkovski: POLITICAL STALWART

Branko Crvenkovski was elected president of Macedonia on 28th April 2004 following the second round of the extraordinary elections that were called after the sudden and tragic death of former Macedonian President Boris Trajkovski in a plane crash on 26th February 2004. Crvenkovski was born on 12th October 1962 in Sarajevo, Bosnia & Herzegovina. In 1986 he obtained a bachelor's degree in Computer Science and Automation from the School of Electrical Engineering at the St. Cyril and Methodius University in Skopje. Crvenkovski was elected as a member of the Assembly of the Republic of Macedonia at the first multi-party elections in the former Yugoslavia in 1990, after serving for several years as a departmental head at the Semos company in Skopje. A former communist, Crvenkovski has been at the head of the Social Democratic Union of Macedonia (SDSM) since April 1991. On 5th September 1992 he became Macedonia's first prime minister after its secession from Yugoslavia, continuing in the post for another four years following re-election in December 1994. As the broad opposition coalition led by Crvenkovski's SDSM won the 15th September 2002 parliamentary elections, Crvenkovski was nominated by his party for the prime ministerial post and, on 7th October, former President Boris Trajkovski entrusted him with the mandate to form the country's new government. The ruling SDSM nominated Crvenkovski as their candidate for president in the 14th April elections. Due to lack of voter turnout, Crvenkovski and his opponent, Sasko Kedev - of the VMRO-DPMNE, faced-off in a second round of elections on 28th April. Crvenkovski was declared the winner with 63 per cent of the vote. "Good interethnic relations are the pillars of stability in Macedonia" and "the shortest route to becoming part of the European and Euro-Atlantic integration processes," Crvenkovski said in his inaugural address to parliament on 12th May. CorD | June 2005

Interview our transition period, I still think that it is very hard at this juncture to provide a rounded, globally objective and acceptable response to that question. In politics, as in life, there are always things you could do better and faster, but also things for which you don't have an alternative. Take, for example, peace and stability. In that regard I think Macedonia maximised possibilities during the collapse of the former federation by avoiding the horror and bloodshed that others suffered or witnessed. Likewise, with the peaceful agreement, global support and responsibility of our citizens - combined with the efforts of the international community - we managed to prevent a wider ethnic conflict erupting in 2001. The general course of the state is well installed. We make stable, permanent investments in the field of good multi-ethnic relations, while EU and NATO membership are obligations and projects where there is an almost unique consensus among citizens and political factors. There where we can achieve more and better. Other subjective factors that were not good were in the field of the economy, particularly regarding employment and the standard of living for citizens. The privatisation and post-privatisation period caused too many casualties. Because of that, the focus today is on how to entice as many investments as possible from abroad and, thus, create new jobs, particularly for young people. The assassination of PM Djindjic made it clear that all the governments of the region had a dangerous opponent in the form of organised 'mafia-style' crime with delusions of grandeur above states. What are your thoughts on that matter? I would correct you by noting that that fact was known even prior to the assassination. Unfortunately, Serbia paid the highest price. Today criminal structures in the region are maybe "more successful" than we are in the area of regional co-operation. Today we say that crime does not know borders, and has no political, ethnic or national limitations. For those very reasons our responsibility is even greater. We should work seriously and without compromise, individually within the state and also with joint forces as an integrated, regional response to this serious evil. Some results are

Today criminal structures in the region are maybe "more successful" than we are in the area of regional co-operation. Today we say that crime does not know borders, and has no political, ethnic or national limitations. For those very reasons our responsibility is even greater. already evident, but that cannot stop us. That is important for all of us, our stability and the maintenance of institutions. We can't expect to be part of Europe, or even be attractive and serious places for foreign investors if we don't confront this problem adequately. The Republic of Macedonia is undertaking major activities in this domain at national, regional and international levels. In short, I would emphasise that one of the aspects of reform of our judicial system will be increasing capacities and efficiency in the fight against organised crime and corruption. How does your Government see the resolving of the Kosovo issue and its influence of the future of FYR Macedonia? Our standpoint has been noted several times and is

CorD | June 2005

KOSOVO: DIAMETRICALLY OPPOSED "The problem is that Kosovars and the government in Kosovo see independence as the only solution, while Belgrade believes that Kosovo should remain a part of Serbia & Montenegro. This means that we are not simply talking about different viewpoints, but rather about diametrically opposed viewpoints. That is why I think it is the international community that will have the biggest role to play in resolving this issue, because I do not believe that Belgrade and Pristina will find a mutually acceptable solution", said Crvenkovski, talking to the Greek press recently.

Branko Crvenkovski talking to our editor Many believe that if Kosovo gains its independence then the Albanians in Tetovo [Macedonia] and southern Serbia will want to join them? In the recent past Kosovo has not been independent and yet we have still had problems. That is why I said earlier that, for us, the structure of the region, so that international rules and standards prevail, is more important than the status of Kosovo. The fate of Macedonia does not coincide with the fate of Kosovo. We are not part of the problem in Kosovo, nor are we part of the solution. The future of our country depends on us alone; on how we handle our domestic affairs. Yes, but the question of settling your country's borders with Kosovo has not been resolved and, in fact, only the other day Kosovo's President Rugova said that he does not recognise them. The borders have been determined, what remains is the technical question of setting them. If I said earlier that the international community will have a decisive role to play in Kosovo, I can openly say that that the international community itself does not question the existence, the territorial integrity, and the inviolability of our country's borders.

Interview unchanged. We see as acceptable, and support, the model of negotiations between Belgrade, Pristina and the international community in order to find a mutually acceptable solution. Macedonia is neither a part of the problem, nor a part of the solution to this last, huge open question in the region. In that direction I think that it is equally important to solve the final status issue, as is the methodology in which this process will develop. There should not be other alternatives besides the one where the solution to this question prevents the possibility of renewed destabilisation of the region. For us in that context, the priority is to close the question of the technical mark of our border with SCG in the Kosovo area before the final defining of Kosovo's status.

secure our borders with Kosovo. All in all, my evaluation is that the need exists for the international community, in both a civilian and military capacity, to maintain a presence in Kosovo for a long period of time. I feel that opinions should not be divided on that matter.

How would you describe FYR Macedonia: is it stable or unstable; has it solved its specific problems peacefully and successfully or has it put off the need to address the radical requests of the ethnic Albanian population? The answer to that question cannot, and must not, be a result of personal opinion or simple defining, We now need a but must rather be based on all the realistic and objective facts. redirection of all After all the tribulations, I can conenergy, potential and Is an independent Kosovo acceclude that the Republic of Macedonia activities towards our ptable to you? has successfully completed the task of I will repeat my answer to that stabilising security. Security and stanew strategic integraquestion. Negotiations between bility have been achieved on the entire tion projects for memBelgrade, Pristina and the internaterritory of the state and are beyond bership of the EU and tional community should provide a question. We dedicated the greatest solution. Regardless of what the final focus to these issues in the past three the NATO Alliance, with status will be, that must not have years and the results are highly visible. a focus on improving ramifications on the regional situaI expect Ohrid's Ramkov Agreement the living standards of tion. There have already been far too to be fully implemented this year and our citizens. many victims. Too much has been that will formally represent the sucinvested in peacekeeping and stabilicessful closure of that open question. ty to let everything be jeopardised. The basis for that agreement was built upon foundations of a mutual state for equal citizens. Speaking to NIN last year, you stressed that you did not We now need a redirection of all energy, potential and believe that politically-motivated, independence-minded activities towards our new strategic integration projects for aggression would occur. Yet the March pogrom soon fol- membership of the EU and the NATO Alliance, with a focus lowed. How do such events reflect on FYR Macedonia? on improving the living standards of our citizens. In order to I believe that those events were unexpected and unwanted achieve those ends, I expect a major political, social and by all, particularly the international community, which is interethnic consensus, which will be the main sustainers. As responsible for peacekeeping and stability in Kosovo. President of the Republic of Macedonia, I am working on it Unfortunately, these events showed that they should work and I am optimistic that my country will achieve a peaceful, much more competently on maintaining peace and improving safe and economically strengthened European future. the democratic standards of Kosovo's institutions, particularly with regard to the respect of minority rights in Kosovo. How far have you progressed with the problem of solvThat very need was actually the biggest failure in the past ing FYR Macedonia's official name? period; standards are far below what is required and their As is well known publicly, this is about one imposing and, implementation, before status, makes the solution of status I would add - according to international law and political crieven further away from realisation. We continually empha- teria, absurd conflict with Greece regarding the constitutionsise that the rule of law and continuance of peace in Kosovo al name of the Republic of Macedonia. are much more important than status itself. The stability of For some time, talks at the UN HQ in New York have been institutions is a guarantee of internal security. Of even greater led regarding our differences with Greece on this issue. Our importance is the need to stop unresolved internal issues position has been clearly represented from the get go and was from spreading to neighbouring countries. Luckily, that did- recently introduced as a formal suggestion. According to our n't happen last March, but we should be very careful. suggestion, there would be a two-sided formula whereby we For this very reason, following UNMIK's implementation would use our constitutional name of The Republic of of stricter border controls with Macedonia, I personally Macedonia for international usage and for bilateral relations demanded that the Macedonian Government lead an active with every country, but with Greece we would find a mutualpolicy based on reciprocal measures, whereby we also imple- ly acceptable name. Bearing in mind the sensitivity of Greece ment a visa regime and step-up control of our border. Our regarding this matter, our suggestion proves that we are makneed is to protect ourselves from the criminal groups which, ing a large and acceptable concession. The talks in New York unfortunately, still exist. Thus we have a greater need to are to be continued.â&#x20AC;˘

CorD | June 2005

THIRD COUNCIL of EUROPE SUMMIT

The Third Summit of the Council of Europe in Warsaw, which gathered European heads of state and government, marked a turning point for strategy-making and action policies of European institutions in the framework of ongoing global reforms. Instead of the largely diffuse and uncoordinated linkage and development of European institutions - the most important being the European Union, OSCE and the Council of Europe - the European heads of state adopted a strategy that will see the European Union feature as the foundation for continental integration and the Council of Europe that will resemble the United Nations within a European framework. Benita Ferrero-Waldner, EU Commissioner for External Relations

he leaders of the most powerful European states, Vladimir Putin, Tony Blair, Jacques Chirac and Silvio Berlusconi, were absent from the summit, but their foreign ministers supported the general direction that European states should take for an adequate reaction to the upcoming challenge of UN reforms. German Chancellor Gerhard Schroeder was present at the Summit and encouraged efforts to reform the Council of Europe. And, as expected, he placed emphasis on close cooperation between the CofE and the European Union. "We have to strengthen the main lines of co-operation in this new phase of CofE - EU relations", the German Chancellor said. The participants asked Luxembourg's Prime Minister and EU Chairman, Jean-Claude Juncker, to personally compile a report on relations between the Council of Europe and the EU. It seems likely that the United States will insist and probably succeed in spurring the United Nations to be more forthcoming towards U.S. interests globally. CofE Secretary General Terry Davis said that the Council of Europe will focus more on spreading the culture of democracy throughout the continent. He expressed his hope that their efforts would be as fruitful as

CorD | June 2005

By Dragan Bisenic

they were in the domain of human rights. Russian Minister of Foreign Affairs, Sergey Lavrov, concentrated on "challenges to the European society". "Such challenges are not becoming fewer; their acuteness is not abating. A part of the conflicts on social, economic, interethnic and religious grounds develops into real or potential seats of terrorism, which is the most dangerous violation of basic human rights, primarily the right to life. The fight against terrorism must be one of the priority areas of activity of our organisation", Lavrov said. He added that the recent experience of international development shows that a response to a terrorist challenge must be united and resolute; based on an express qualification of actions of terrorists as grave crimes entailing the inevitability of punishment for the perpetrators, organisers and sponsors of terrorist acts. Three conventions were prepared ahead of the Warsaw summit which embody a European perspective on the methods and rules that should be employed in the drive against terrorism in Europe. The convention on seizure and confiscation of assets and property that support terrorism prescribes direct security measures that provide for CofE involvement and activity in areas

that are far from the traditional methods for promoting human rights. The Convention is a reaction to a series of procedures introduced by U.S. authorities in cases where certain operations are suspected of financing terrorism. The first part defines measures that are applicable when there are indicators of terrorist activity and in the second part a number of limitations curtail the strategy to suit European preferences in combating terrorism. The Convention provides a number of measures that are binding for national law-making and law-enforcing bodies, but also creates a framework for co-ordination through international institutions and for controlling money flows that are used to finance terrorism. Several paragraphs are dedicated to information on bank accounts and monitoring bank transactions, which incorporates the banking system into the whole process in a new way. The "European review" of these measures begins with regulations that permit refusals to co-operate in this process. States can refuse to co-operate if the measures are contrary to fundamental principles of their legal system, if these measures will damage their sovereignty, security and order or other basic interests or if the state that is required to undertake certain measures finds they are not justified by the gravity of the case they apply to. Moreover, a state can also postpone taking measures if the authorities feel they should undertake appropriate investigations first. Host country Poland effectively ended their chairmanship of the Council of Europe with the Summit. The Polish Government displayed aspirations to take a leading role or a nexus point for EU integration for the countries that emerged after the breakdown of the Soviet Union. President Aleksander Kwasniewski has demonstrated this on several occasions by appearing at the youth concert in front of the Cultural Centre together with state leaders who came to power by virtue of a palette of revolutions in their respective countries - Georgia, Ukraine and Moldova. At the same time, the Summit and events surrounding it, including

SCG President Svetozar Marovic

bouring countries. Byelorussia had evicted the ambassador of Poland one day after the Summit's end, hence relations between the two countries are very strained at The Polish Government displayed aspirations the moment. The Polish public also have a conattitude towards Russia and to take a leading role or a nexus point for EU frontational President Putin, although to a lesser degree. integration for the countries that emerged Posters with a Chechen bounty on Putin's head were distributed at demonstrations against the after the breakdown of the Soviet Union war in Iraq and Chechnya and the media gave a press coverage, firmly confronted the regime in Byelorussia and lot of attention to inquiries into Putin's meeting with former its president Aleksandar Lukashenko. Byelorussia was the only Polish president Wojciech Jaruzelski during a celebration of the European state that was not invited to the Summit, while the par60th anniversary of the victory over fascism. ticipants voiced expectations of "democratisation in Speaking at the summit, Polish President Aleksander Byelorussia" in the final Declaration. Kwasniewski said that Poland is living in interesting times after Indirectly, the message was that Byelorussia would probathe death of Pope John Paul II [the late head of the Catholic bly face an uprising of students or wider segments of the popChurch had raised the reputation of his country to a high level ulation similar to those that had already taken place in neighin the course of his life] "and everything this Pole and

GIOVANNI DI STASI The President of the Congress of Local and Regional Authorities Giovanni Di Stasi: â&#x20AC;&#x153;The Kosovo issue will be viewed from an entirely different perspective if all the peoples of the Balkans and all the countries clearly envisage their future in the EU.â&#x20AC;&#x153;

VACLAV KLAUS

SERGEY LAVROV

Czech President, Vaclav Klaus, served an indirect ideological challenge to his hosts. In a short but vibrant speech he criticised everything that Pope John Paul II and former Czech President Waclaw Havel stood for.

Russian Foreign Minister Sergey Lavrov: "European countries have to take a leading role in managing the Kosovo issue". Lavrov added that the EU has to show that the Balkan countries are an inseparable part of Europe and that their accession to the EU is a top priority.

CorD | June 2005

THIRD COUNCIL of EUROPE SUMMIT European was, sharing all those values that are today the core values of the Council of Europe". He then named other figures and movements that influence the course of historical events. At the top of his list was the Solidarity Movement, founded 25 years ago, and then other people who had changed Europe: Lech Valensa, Waclaw Havel, Mikhail Gorbachov and Helmut Kohl. Czech President, Vaclav Klaus, served an indirect ideological challenge to his hosts. In a short but vibrant speech he criticised everything that Pope John Paul II and former Czech President Waclaw Havel stood for. In his challenging speech, Klaus put special emphasis on "attempts of manifold forces, structures and groupings, which - without a democratic mandate - try to directly decide, or at least basically influence, various crucial and sensitive public issues". The Czech President clearly spelled out these were manifestations of "NGOism, of artificial multiculturalism, of radical humanrightism, of aggressive environmentalism, etc". He claims that these activities are new ways of endangering and undermining freedom, just as communism had in its time. "Unity is not the priority. Values, based on freedom, rule of law and market economy, represent a true priority for all of us", said Klaus. Klaus's speech was taken as his continued confrontation with the concept of the EU and "civil society", although it cannot be denied that it was delivered in a place where this

Turkish Prime Minister, Taip Erdogan, told CorD: â&#x20AC;&#x153;We endeavour to meet the increasing demands and democratic expectations of the Turkish people. In this context, we take into account the specificities of our society and try to reach optimal solutions.â&#x20AC;? idea was first put into practice, while the role of John Paul II was paramount to the conceptualisation of the idea of civil society. The concept of civil society was formulated at one of the biannual conferences of leading Catholic intellectuals that the late Pope had hosted at his summer residence in Castelgandolfo. Challenges to European unification do not just lie in the domain of security or the overlapping of jurisdiction of European institutions. It is evident that some issues are ideological in nature and that they are bound to find their way to the top of the agenda in the turmoil of changes Speaking to press at the summit, Russian Foreign Minister Sergey Lavrov told Serbian daily Danas that "European countries have to take a leading role in managing the Kosovo issue". Lavrov added that the EU has to show, by taking this responsibility, that the Balkan countries are an inseparable part of Europe and that their accession to the EU is a top priority. "The European Union played a decisive role in the establishment of the State Union of Serbia & Montenegro and this is why it is only fitting that Europe should be given a central role in resolving this issue", Lavrov said. The President of the Congress of Local and Regional Authorities, Giovanni Di Stasi, was also in favour of faster integration of the Balkans to the EU. He said the Kosovo issue will be viewed from an entirely different perspective if all the peoples of the Balkans and all the countries clearly envisage their future in the EU. Di Stasi said he opposed the concept where decentralisation and combining localised solutions with ethnic issues are used to break up states.â&#x20AC;˘

CorD | June 2005

EXCLUSIVELY FOR CorD: CorD managed to speak exclusively to a number of participants at the Third Summit of the Council of Europe in Warsaw. SCG President, Svetozar Marovic, said: "I am aware that there are two concepts for the development of the CofE - one that relies on existing foundations and principles and the other that should see European countries searching for an adequate reply to the upcoming reforms of the United Nations. There are two reasons why this concept of "European United Nations" should not be rejected. The first is that we all increasingly share some typically European challenges. European countries are reaching a point where they are all ready to face their problems and solve them. On the other hand, the Council of Europe is the only place where all European countries can co-operate at once, including those that have yet to join the EU. They can also have their say on issues concerning the development and strategies for the Future of Europe". Benita Ferrero-Waldner, EU Commissioner for External Relations, told CorD that "the stronger affiliation of European countries into a regional organisation is in no way contrary to the ideas and principles of the United Nations. The level of integration that Europe has accomplished today and the acceleration of European unification, based on EU expansion, are facts that must be taken into account in the process of institutional framing of Europe. There is no doubt that the EU is the centrepiece of European unification and that the Council of Europe should be closer to this institution and its activities. "A lot of work has to be done to accomplish this and the most important task is harmonising and co-ordinating the activities of different institutions. A united Europe needs coherent institutions. The present European superstructure is comprised of 46 Council of Europe members, 55 OSCE members and 25 EU members. This "regional architecture" has to be modernised". Turkish Prime Minister, Taip Erdogan, told CorD that "Democracy has many prerequisites. First and foremost, it demands freedom of thought and expression. It has to be based on respect for the right to govern the majority and respect for the differences of those who are in the minority in politics; on the ability to come together for a common cause; on women's active role in society and politics; on transparency and accountability. We, in Turkey, are fully committed to these values. For this purpose, my government constantly seeks to achieve higher democratic standards. In pursuit of our targets, we closely follow Council of Europe standards. We endeavour to meet the increasing demands and democratic expectations of the Turkish people. In this context, we take into account the specificities of our society and try to reach optimal solutions."

Interview

H.E. Andreas Zobel, German Ambassador to SCG According to H.E. Andreas Zobel, German Ambassador to SCG, due to population size and geographical location, Serbia & Montenegro has a central role to play in the stabilisation of the region. He also said that Germany has a great interest in SCG strengthening both economically and politically, in order to become a factor of stability in the Balkans, and expressed his belief that co-operation with The Hague Tribunal is crucial to both SCGâ&#x20AC;&#x2122;s further development and approach to the EU. By Milovan Jaukovic

WINNING

HEARTS

& MINDS 20

CorD | June 2005

obel warned, "Your Government has to be aware that the European Commission and EU member states are closely observing the progress of SCG. In its annual report, to be published this autumn, the European Commission will present the current development of the situation and I find it difficult to imagine that the Stabilisation and Association Agreement will be signed next year, as was predicted, if co-operation with The Hague Tribunal is not successfully and fully brought to a conclusion". Zobel is of the opinion that the policy of uniting Europe is very important for the political stability and economic prosperity of the continent. Citing concrete examples of the benefits for each individual as a result of their country's membership in the EU, Zobel noted the advantages of operating on a huge single market, the use of structural funds for improvements to infrastructure and the possibility of studying in all European countries. He emphasised that it is essential for every citizen to be informed as to what the EU can do to improve the lives of every single citizen. "Only when you know exactly what Europe can bring will you be in the right state to create the energy for the hard process of reforms which is awaiting you on the way towards European integration. The experiences of other countries have clearly shown that the faster the citizens are won over to the European

Interview side, the faster the process of accession to the EU develops", said the German Ambassador. Snubbing those from the SCG coast who are calling for the dissolving of the state union, Zobel insisted that "Montenegro will not join the European Union faster as an independent country. I have already said on one occasion that it is difficult for me to understand why two member countries, whose desire is to be under the European Union roof as soon as possible, want to separate first. On the contrary, independence could slow down the process if internal political or regional dissension occurs". EU officials are warning that the referendum in Montenegro has to be carried out in accordance with democratic and European standards. Can you tell us something more about those standards? Those standards imply fair and transparent rules. They are there to ensure the necessary stability of the country. It cannot be in Montenegro's interests to organise a referendum which would, in a polarizing way, influence Montenegrin society and bring the country unrest instead of stability. I am sure that all of the political parties and political participants in Montenegro have feelings of responsibility and that they can reach a consensus regarding such an important issue. The consensus could be to give up on notions of a referendum in order to find a mutual solution with Belgrade. The State Union has received a positive Feasibility Study and negotiations regarding the process of stabilisation and accession should start in October. What should the state union and the two states' leaderships pay particular attention to in that process? The challenges which Serbia & Montenegro should overcome en route to the European Union are summarised in the European Commission's statement. These are: total and unconditional co-operation with The Hague Tribunal; the continuation of economic reforms; reforms to the judicial administration and public administration, as well seriously continuing the fight against organised crime and corruption. The Feasibility Study is a good base for defining the priorities for the operational work of the Government in the process of

Brussels gives bad or good marks to Serbia & Montenegro, but that such a process is necessary so the largest number of citizens are able to have a better quality of life. Without such an understanding of the process it is not possible to win over people's hearts for Europe. The responsibility for providing such an understanding of this process is jointly shared by politicians, both the Government and the opposition, but also Only when you know exactly what Europe can other parts of society too, such as intellectuals, bring will you be in the right state to create the ener- churches and trade unions.

gy for the hard process of reforms which is awaiting you on the way towards European integration. approaching the European Union. Now it is important to win over the population for such a process. The creation of a civil consensus is needed in order to release enough energy to complete the process of European integration. It must become clear that reforms are not carried out simply because some clerk in

The European Union represents the position of the European future of Kosovo in the European Union. Is the Serbian fear that this orientation is prejudicing the final status decision of the province at all justified? The European future does not talk about the future constitutional-legal status of Kosovo, but is more the perspective of a social structure based on democratic, European standards. Negotiations about the final status of Kosovo have not started

MONTENEGRIN SECESSION

KOSOVO'S FUTURE

TRADE & INVESTMENT

Montenegro will not join the EU faster as an independent country…it is difficult for me to understand why two member states which desire to be under the EU roof as soon as possible want to separate first…independence could slow the process if internal political or regional dissension occurs…It can't be in Montenegro's interests to organise a referendum which would, in a polarizing way, influence society and bring the country unrest, not stability

…every solution has to strengthen regional security and stability…the return of Kosovo to the status it had before 1999 is impossible, as are options which include the division of Kosovo or its joining to other states or regions...the protection of the rights of minorities in Kosovo has to play a central role…the best way to achieve that is offered by the concept of decentralisation; the redirecting of responsibility towards local authorities.

Economic relations between our two countries are good, but could be much better. We are experiencing the continuous growth of trade, but that applies only to exports of German products to SCG. The flow of goods and services in the opposite direction is still significantly lower...The potential for the extension of our economic relations does indeed exist, but the investment climate needs improving. We are working on that with our partners in SCG.

CorD | June 2005

Interview yet. Now it is much more important to improve the every day life of the people in Kosovo, especially the members of minority groups, and in the way that we can talk about the essential progress in the implementation of standards. Improved protection of minorities is a prerequisite for the beginning of negotiations about the future status of Kosovo. It is good that representatives of both sides, in Belgrade and it now seems in Pristina too, are ready to talk about open issues and find solutions through dialogue. Nicholas Burns, U.S. Under Secretary of State, recently presented the new American Strategy for Kosovo to the U.S. Congress. How would you evaluate his proposals? I think that Burns' approach was very balanced. He confirmed the Contact Group's positions that this regards very difficult issues which should be solved on the principles which lead us to see essential improvements in the positions of minority groups in Kosovo. That is a solution which will not be imposed only by one side, but a solution which is balanced and open for the democratic future of Kosovo. Among the main principles is also the notion that there will be no dividing of Kosovo or changes to the borders, nor the annexing of Kosovo to any other neighbouring countries or regions.

For an investor it is important that the country in which he invests is politically stable and has a clear democratic and market orientation. In that, SCG has undoubtedly made some progress.

Does 'no changing of borders' refer to the unchangeable nature of Kosovo's borders, or the joint borders of Serbia with Kosovo? The future status will be exclusively the result of negotiations and there are no advanced or predetermined models. The result has to be one which contributes to stability in the region and all of the involved sides. What do you think would be the most realistic solution to untangle the Kosovo knot? The Contact Group which, in addition to Germany, is made up of France, Great Britain, Italy, Russia and the U.S., has formulated certain parameters for future negotiations regarding the status of Kosovo on behalf of the international community. Among others, within the Contact Group's frame there is the consensus that every solution of the status has to strengthen regional security and stability and that, as a consequence of that, the return of Kosovo to the status it had before 1999 is impossible. Those options which include the division of Kosovo and its joining to the states or regions which border Kosovo are also impossible. The concord also exists regarding the position that the protection of the rights of minorities in Kosovo has to play a central role. I think that the best way to achieve that is offered by the concept of decentralisation in which framework the greatest part of the responsibilities would be redirected towards local authorities. Germany is, along with Italy, Serbiaâ&#x20AC;&#x2122;s most important foreign trade partner. Are you satisfied with the current situation regarding economic relations between the two countries; and what should be done to improve bilateral trade?

CorD | June 2005

The economic relationship between our two countries is good, but certainly could be much better. We are experiencing the continuous growth of trade, but that applies only to exports of German products to Serbia & Montenegro. The flow of goods and services in the opposite direction is still significantly lower. In order to improve the state of exports you need more foreign direct investments. Large German companies are well represented in this field too. Besides, many of those companies find their way to Serbia & Montenegro through their partner companies, so, statistically, they are not marked as German investments. What is also needed is the arrival of small and medium-sized German companies. The potential for the extension of our economic relationship does indeed exist, but for its exploitation what is needed is to improve the investment climate. We are working on that together with our partners in Serbia & Montenegro.

Foreign economic experts have noted that one of the obstacles standing in the way of attracting foreign investment is the failure to adopt legislation that is favourable for investors, as well as solving the problem of the use of construction land, where high compensation has already driven away foreigners. Is that the case with German investors? An investor will invest his capital wherever he sees the best chances for profit with a tolerable level of risk. Also, for an investor it is important that the country in which he invests is politically stable and has a clear democratic and market orientation. In that, SCG has undoubtedly made some progress. As regards bureaucratic obstacles, they are moving very slowly. During his visit to Germany in October last year, Serbian President Tadic sought German support for the re-evaluation of the Hermes Agency - which determines the risk of German investors - in order to realise two important projects. What progress has been made regarding that plan? In the perception of the risks of German export crediting guarantees - better known as Hermes Guarantees - Serbia & Montenegro has grade seven. That is certainly a negative mark, which means that guarantees for exporters are expensive and relatively unattractive. The grading of countries is not carried out by Hermes Insurance, but is rather a consequence of harmonisation within the OECD. At the beginning of 2005, the upgrading of the position of Serbia & Montenegro was discussed but, because of the unsatisfactory co-operation of SCG with The Hague Tribunal at that time, it was not possible to gain a majority for such a decision within the OECD. Meanwhile, co-operation with the Tribunal has significantly improved, which instils the hope that in any forthcoming OECD discussions Serbia & Montenegro will receive a better appraisal. However, these discussions will not take place until the beginning of 2006. If the OECD gives a more satisfactory appraisal, that will reduce the cost of Hermes Guarantees.â&#x20AC;˘

Interview

NO STABILITY COMING By Dragan Bisenic; Photo M. Milic

Victor Bulmer Thomas, Dircetor of Chatam House

The U.S. is no longer "A" superpower, it is now "THE" superpower...And in recognition of this, we at Chatham House feel that a new word is needed. "Superpower" somehow no longer does justice to the new reality. Former French Foreign Minister Hubert Vedrine suggested 'hyperpuissance', but that doesn’t translate well into English, and so we prefer to use the word 'Megapower' - so explained Chatam House Director Victor Bulmer Thomas, speaking exclusively to CorD.

have the incentives or the inducements that the European Union is able to offer by way of soft-power. But it has a lot of non-military sticks. The third is cultural: there is a great self-belief among United States' citizens in their status as a Megapower. There is, of course, a long tradition of American exceptionalism going back to the middle of the 19th century, and associated What is the objective basis for the 'Megapower' status? with a doctrine of manifest "Destiny". This is a very imporThe first is military: the defence budget of the United States tant part of being a Megapower: you can't be a Megapower is much bigger than almost all other countries' put together. unless your citizens genuinely believe that there is something It's not so much a function of the number of soldiers - there exceptional about your country. And there are many people are in fact more soldiers in uniform in China than there are in in the United States who believe that the main source of legitthe United States, but it has everything to do with the technol- imacy for the country is the Constitution and that overrides all other considerations of international law… ogy and research and development of equipment. Then there is the economic There are many people in the United States who believe that the dimension. America is still the main source of legitimacy for the country is the Constitution world's largest economy, and and that overrides all other considerations of international law… is likely to remain so for another thirty years… And finally, we should recognise externalities associated The second is political: the United States has huge influence in international organisations, for example the World with the United States' position as a Megapower. The United Bank, the International Monetary Fund, and also in inter- States' actions, even when unintended, can affect all the governmental organisations such as NATO. But it also has a world's states. And it's not limited by geography. I think this lot of leverage through soft power. It is true that the United is an important point, because often you see books and artiStates perhaps lacks many of the carrots, the inducements, cles now asking if the United States is an empire. I myself the incentives we associate with a soft-power, particularly in believe that the United States is a post-imperial state, having the case of the European Union. It's not in a position, for gone beyond empire. example… well, it is in a position, but it chooses not to use it How can other countries relate to the "Megapower"? to offer membership of the United States to other countries. There are a series of options, which we see adopted by Puerto Rico would love to be the fifty-first state … well, roughly half of the population of Puerto Rico would love to countries around the world, and I'll run through the list one be the fifty-first state of the United States, but there is no real by one. The first I call 'partial support for the Megapower'. This support for that in the United States Congress. So, it doesn't or many countries, as well as for Serbia & Montenegro, the relationship with this "Megapower" is of crucial importance for the future. Your country had specific troubles and experiences which provide the basis for an exact understanding of the meaning of this relationship - said Bulmer Thomas.

CorD | June 2005

Interview would seem to be the natural choice. First of all, to support the United States wherever national security interests coincide with those of the United States. Secondly, to abstain when national security interests are not involved. But thirdly, to oppose the United States when national security interests are not aligned, which is why I call it 'partial support'. If we take the case of China, the recent Anti-secession Law aimed at Taiwan is a clear case where China opposed a national security interest of the United States. Another example would be the decision of Russia to go ahead with the supply of nuclear fuel to the Bushehr plant in Iran. Again, (this is) a clear case of a country opposing a national security interest of the United States. Or, in the case of the European Union, the emphasis and priority they have given to the Kyoto Protocol as their way of promoting environmental sustainable development, and the International Criminal Court. The second option is full support for the Megapower. And the reason why countries might choose this option is because in return they can expect United States' support for

EU STATUS FOR KOSOVO "I believe that the EU is divided on certain issues, but after a certain time it will be united. There are two basic problems. Firstly, can the EU oppose U.S. interests and profit from that policy; and secondly, will the EU become a global player? We now have enough evidence of the EU becoming unified, such as in the case of the International Criminal Court; the EU can oppose the U.S. without being punished. It is important that there weren't demands from the EU to the 'exception' made for U.S. soldiers. This, of course, raises separate questions, but I wanted to emphasise that if you create a united foreign security and foreign Policy, even small and medium-sized states can continue to partially support the Megapower in a most beneficial way. "This is part of the world where the U.S. tried to fight and reconcile with EU Foreign Security and Foreign Policy. I can say that the EU will increase its role and I don't see Problems if the U.S. pulls out and leaves the EU to take over responsibility for the security of this region. However, diplomacy is extraordinarily important. The U.S. is a very complicated state with big differences, and it doesn't have a solitary voice. We don't have to think about the monolithic policy of the U.S., but elections have shown that the differences between the two options are very small." We are at the beginning of the process of EU integration. Does the EU really wish to include SCG? I don't see any Problem in the EU including SouthEastern Europe and Serbia & Montenegro, as well as Turkey and probably the Ukraine and Moldova. Real difficulties will be with Belarus and Russia. I don't believe the EU has the ambition of including countries beyond Turkey, such as the Caucasus and North Africa, despite some people claiming that this is a long-term objective.

Victor Bulmer Thomas and David Gowan at least one of their own vital national interests. There are plenty of examples. Israel is a very obvious example, which gives full support to the United States, but in return receives a security guarantee. The same is true of Japan. The third option is rhetorical support for the Megapower. This is popular with small states, in other words, they give support rhetorically, but they are not expected, nor do they particularly wish, to do anything substantial in return. Examples of this can be found among both democracies and authoritarian states. If you take a democracy, like Costa Rica for example, it joined the "Coalition of the Willing" in the case of the war, the invasion of Iraq, but Costa Rica has no army, so it had no way of participating in a realistic way in the Coalition of the Willing. Or take the case of an authoritarian state like Jordan in the Middle East. Jordan pays lip service to the plans that the United States has for the democratisation of the broader Middle East, but in practice hopes to do very little different from what it is already doing. The fourth option is strong support for the Megapower on at least one United States' national security interest. The implication being that in return there will be non-interference by the United States in the domestic affairs of that country. Again, we can give examples. There are countries that have provided military bases to the United States, meeting one of the United

According to the Washington Post, we are now experiencing the reverse process of decolonisation, with countries screaming "Colonise us! Colonise us!", but large countries are very reluctant. How is it possible for the EU to manage so many members? It is very important to distinguish between 'colonisation' with UN Protectorates, such as Bosnia & Herzegovina, and EU membership. It is possibly true that countries would like to join. But when they join they are not colonised. Rather, they are partners with full representation. Nobody can force them to stay. But it is true that, because of the problem of failed states, the number of protectorates is growing worldwide. This isn't a voluntary decision: it is imposed by the international community and is more akin to the type of colonialism we had in the past. Kosovo is now a UN protectorate. Can it become an EU protectorate? The real problem is finding a way of managing the change of the status of Kosovo, whilst protecting minorities and leaving a sufficient degree of autonomy to allow Kosovo to develop and eventually become a member of the EU, either as part of SCG or an independent countryâ&#x20AC;ŚOnce all the parts of this region become members of the EU, the question of status will become almost irrelevant. If Kosovo, as part of Serbia & Montenegro, becomes an EU member many of the issues which are now problematic will disappear.

CorD | June 2005

Interview States' national security interests - Uzbekistan, Kyrgyzstan, Bahrain, Qatar - but in return they expect lax examination of their internal affairs. Or take the case of Libya, which recently renounced weapons of mass destruction - again, a vital national security interest for the United States. The final option, of course, is opposition to the Megapower on its national security interests. And we have here the case of support for terrorist organisations, as defined by the United States, which is what Iran and Syria are accused of. Or we have the pursuit of weapons of mass destruction, as in the case of North Korea, or we have the socalled "Outposts of Tyranny", such as Cuba, Myanmar and Zimbabwe. Or the more controversial case of Egypt, which may find itself in distinct disagreement with the United States when it comes to the democratisation of North Africa. What do you think is the best option? I think partial support is by far the best in terms of the net benefits that countries accrue, because there isn't too much danger of opposition on specific policies resulting in serious collateral damage. But the trouble with partial support, as I emphasised earlier on, is that it seems to be only open to large actors or large countries. Full support might look attractive superficially, but there is, of course, a loss of independence associated with it. It makes coalition-building very difficult, and a very concrete example is when countries give full support to the Megapower, put forward candidatures for international organisations. In that they almost always fail because they are seen as somehow being a proxy for the United States. In terms of rhetorical support - well, small is beautiful, as it's often said, but the trouble with that is that there are no

Victor Bulmer Thomas

dangerous place in which securing national security interests is a hard and constant struggle. There is, therefore, an equilibrium of sorts between the Megapower and the rest of the world. The Megapower can undermine or reverse most activities seen as hostile to its national security interests. I call that "negative power". But it has much more difficulty in securing its national security agenda, what I call "positive power". The world as seen from the Megapower is a complex and danI think to answer that question gerous place in which securing national security interests is a we have to first ask ourselves, will hard and constant struggleâ&#x20AC;ŚThere is, therefore, an equilibri- the national security interests of United States change in the um of sorts between the Megapower and the rest of the world. the next few years? I think the answer guarantees that it will provide immunity from U.S. action. is that it's highly unlikely. You might think that if you keep below the radar, and small For the next few years we will still have a war on terrorism, countries often try to do that, that somehow the United States we will still have problems of proliferation of weapons of would not be too interested in what goes on internally in that mass destruction, we will still have problems of democratisacountry. But that's not always the case. tion in the broader Middle East and North Africa, and we will Then there is support for at least one national security still have energy security problems, particularly as a result of interest. The trouble is that national security interests - a competition from India and China.â&#x20AC;˘ despite what 19th century British leader Lord Palmerston once CHATHAM HOUSE said - are not eternal. And, as they change, the United States' evaluation of the utility of allies can also change. Finally, there is opposition by small and medium-size Chatham House is one of the worldâ&#x20AC;&#x2122;s leading organstates. Well, these countries do pay a very heavy price - as isations analysing international issues. It is memanyone who has been to Iran, Syria or Cuba will know bership-based and aims to help individuals and either through the unilateral sanctions that the United organisations to be at the forefront of developStates applies, or through the use of extraterritoriality, that ments in an everchanging and increasingly comis to say, laws that are passed in the United States which are applied to companies outside the United States seeking to plex world. Founded in 1920 and based at Chatham do business with the countries that oppose the United House in London, the Institute works to stimulate States. And countries that oppose the United States can cerdebate and research on political, business, security tainly find that their access to international organisations is and other key issues in the international arena. heavily restricted. The 'Chatham House Rule', famous worldwide for facilitating free speech and confidentiality at meetThat then raises a question - it may be a stable equilibings, originated here. rium, but is it stable or unstable in the long run? The world as seen from the Megapower is a complex and

CorD | June 2005

Interview By Dragan Bisenic

I remember my time in Belgrade very well. I found the country fascinating and complex, but it was never boring and I enjoyed it very much - so said Brent Scowcroft, former National Security Advisor to U.S. Presidents Gerald Ford and George Bush Senior, speaking exclusively to CorD. was a communist country that wasn't under the domination of the Soviet Union. That was really what we saw as an example to the Soviet block. We didn't attempt to influence your way of life, but we wanted you to be free from Soviet domination. We went out of our way to support Yugoslavia.

Brent Scowcorft, Former U.S. National Security Advisor

alking in his office on the fifth floor of a stout building on the Corner 17th Street and M Street in Washington, Brent Scowcroft introduced himself as a great friend of Greater Yugoslavia, despite the ideological differences between the country and his own. As a young diplomat, Brent Scowcroft served in the U.S. Embassy in Belgrade during a period when the Ambassador was then the veritable giant of U.S. Diplomacy - George Kennan. "We had very good relations indeed," explained Scowcroft. "I arrived just after we'd sold a number of fighter aircraft to Yugoslavia. It was a communist country and I was confronted with all the complications associated with that. My servants were interrogated every week and asked who had visited me, what I'd done, what I'd said and so on. "The internal structure was communist, but politically and in my relations it was a very friendly country. During the last year that I was in Belgrade the Ambassador was George Kennan. We had an aeroplane at the Embassy and when he came we flew around the country, introducing ourselves to various people." How did the U.S. evaluate Yugoslavia during the Cold war? We found Yugoslavia to be a very useful country, because it

CorD | June 2005

Did Yugoslavia fulfil your expectations? It didn't fulfil the expectations that it could be an example to anybody. It is hard to tell what influence it had, but it demonstrates that the U.S. had good and friendly relations with a communist country. It is difficult to say how much it was a model for the rest of the Soviet bloc. President Eisenhower considered Yugoslavia as a focal point of America's European policy.

Yes. In the early stages we had hoped that the rest of the Balkan countries would follow Yugoslavia, but it didn't happen. We weren't directly involved, but we had hopes. Therefore, we sold aircraft - modern fighter jets - to Yugoslavia. Interestingly enough, I wasn't allowed to visit that aircraft in Yugoslavia. I found the transcripts of talks between General Eisenhower and General Popovic, when Popovic promised that the Yugoslav Army would fight shoulder to shoulder against the Soviet Army if need be? Yes, and we believed that. Did you meet Tito? Yes, several times. He was a very interesting man and very easy to talk to. I found his wife very charming. I know their relationship became troublesome later on, but she was very influential over him. Obviously, he was very powerful and very self-confident. How did the U.S. assess the Russian consideration of Yugoslavia? The very complicated split between Yugoslavia and Russia was

Interview partly nationalism and partly personality-based. The split within the Yugoslav Communist Party was also complicated, but Tito managed to suppress the pro-Russian opposition. How would you describe the development of U.S. policy towards Yugoslavia? Russian policy on Yugoslavia became an issue of the American elections in the '70s, when the Soviets made open comments about Yugoslav policy. In retrospect, it was quite clear that Yugoslavia was too important for the U.S. to allow something to happen to it. Yugoslavia couldn't break apart during the Cold War.

A scene from Colin Powellâ&#x20AC;&#x2122;s Retirement Reception It was simply too dangerous. This was an important part of Western policy. It was not like 1988 or 1989, when Yugoslavia became simply less important to U.S. Policy. I must say that we were surprised when internal tensions arose. To be honest, we didn't pay much attention in the late '80s or early '90s. Why exactly did Yugoslavia become less important to U.S. foreign policy? This was because Yugoslavia had been a symbol for most of the Cold War, from 1951 to 1985. It had an importance disproportionate to its size. It was an example of the U.S. that could be used against the Soviet Union as a symbol of independent communism. We weren't concerned that it was communism, but rather that it was not dominated by the Soviet Union. Yugoslavia was no longer so important when Poland, Czechoslovakia and Hungary moved on their own to break from the Soviet Union. Yugoslavia then lost its unique importance to the U.S. How could the U.S. allow Yugoslavia to collapse, considering that it had been all but a U.S. creation since the Paris Conference of 1919? Initial efforts were aimed at preventing the break-up. Secretary of State Baker went to Yugoslavia and argued against the split, but Europeans were reluctant. When he came back a number of Yugoslav Americans - Croatian Americans - accused him of being opposed to the ideal of self-determination. Then the Europeans said "Let us solve Yugoslavia. You Americans took the lead in Iraq; Yugoslavia is in our backyard." We said "OK". Did you visit Yugoslavia together with Secretary Baker? No. I last visited in the mid-80s and met General Ljubicic. How did you consider Germany's early recognition of Slovenia and Croatia? We opposed it, but Germany insisted. Germany defied the rest of the EU, claiming that if the EU didn't recognise Croatian independence they would do so unilaterally. We used our diplomatic

GENERAL BRENT SCOWCROFT General Brent Scowcroft (born 19th March, 1925), USAF (Ret.), was the United States National Security Advisor under Presidents Gerald Ford and George H. W. Bush. He also served as Military Assistant to President Richard Nixon and as Deputy Assistant to the President for National Security Affairs in the Nixon and Ford administrations. Prior to joining the Bush administration, Scowcroft was Vice Chairman of Kissinger Associates, Inc. He is the founder and president of The Forum for International Policy, a think-tank. Scowcroft is also president of The Scowcroft Group, Inc., an international business consulting firm. He is a member of the Council on Foreign Relations. In the course of his military career, Scowcroft held positions in the Organisation of the Joint Chiefs of Staff, Headquarters of the U.S. Air Force, and the Office of the Assistant Secretary of Defence for International Security Affairs. Other assignments included faculty positions at the U. S. Air Force Academy and the U.S. Military Academy at West Point, and Assistant Air AttachĂŠ in the American Embassy in Belgrade. Scowcroft has chaired or served on a number of policy advisory councils, including the President's General Advisory Committee on Arms Control, the President's Commission on Strategic Forces, the President's Blue Ribbon Commission on Defence Management, the Defence Policy Board, and the President's Special Review Board (Tower Commission) investigating the Iran-Contra affair. Scowcroft was a leading Republican critic of U.S. policy towards Iraq before and after the 2003 invasion of Iraq. Scowcroft was criticized by others, including Andrew Sullivan, for his egregiously bad predictions on the Afghanistan War following 9/11. Scowcroft had an aeronautical rating as a pilot and has numerous military decorations and awards. In addition, President Bush presented him with the Presidential Medal of Freedom in 1991. In 1993, he was presented with the insignia of an Honorary KBE by Her Majesty Queen Elizabeth at Buckingham Palace. General Scowcroft was born in Ogden, Utah. He received his undergraduate degree and commission into the Army Air Forces from the U.S. Military Academy at West Point. He has an M.A. and Ph.D. from Columbia University. He co-wrote "A World Transformed" with George H.W. Bush. This book described what it was like to be in the White House during the end of the Cold War, as the Soviet Union collapsed in the early 1990s.

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Interview influence, but we didn't make it a fundamental issue. How important was Washington's new political generation to changing attitudes towards Yugoslavia? I don't think it was too important. What happened was that Americans misunderstand the nature of what was going on in Yugoslavia. Most Americans interpreted it as a case of Serbian aggression, rather than being a direct consequence of the collapse of Yugoslavia, which is what I think made war possible. Yugoslavia became a failed state. One thing I will never understand is why President Tito left the legacy of the 'rotating presidency' structure. That severely lessened the chances of Yugoslavia remaining together. Tito once said to his friend Averell Harriman "Yugoslavia will die after me". It seems he knew what would happen. For sure. Yugoslavia has a troubled history. I think it needed a strong central authority and when Tito destroyed that authority he made it easier for the problems to become more complicated and almost unsolvable. You mentioned that most Americans misunderstood the causes of the collapse of Yugoslavia. What was reason for that? My perception when I was in the Government was that the Croatian lobby in America was far stronger than the Serbian Lobby. Perhaps there are many more Croatian Americans than

Serbian Americans. But Croatians were dominant and they put pressure on the political structures. How would you assess the causes of the bombing of Serbia? Again, we didn't understand Yugoslavia well, nor Kosovo and how much it stirs Serbian emotions. I think we could have been more perceptive. Before Bush Senior left Office in 1992 he issued a Christmas Warning to Milosevic against taking action in Kosovo. We were aware of the sensitivity of Kosovo and I think maybe the succeeding administration didn't appreciate that very much. Perhaps the outcome would have been different if there'd been a second term for Bush senior? It's difficult to say. I had served in Yugoslavia and Secretary of State Eagleburger had been Ambassador in Yugoslavia. Thus, we had a good understanding of the country. You were the superior of current Secretary of State Condoleezza Rice. How did she react to the situation in Yugoslavia? She left the Security Council when Yugoslavia became an issue. I don't know what she did, but she was focused on Poland, Czechoslovakia. Do you expect the departure of Colin Powell to result in a foreign policy shift? It is difficult to say. Foreign Policy is basically determined by the President.â&#x20AC;˘

TRANSFORMATION OF COLIN POWELL Three hundred guests attended the dinner organised in honour of Colin Powell at Washington's Hotel Fairmont. Those in attendance included many associates and friends of the former Secretary of State, as well as senior State Department and Pentagon officials, congressmen, senators and Ambassadors of foreign countries. Some of them are well known in Serbia, such as German Ambassador Wolfgang Ischinger, how served for many years as the German representative in the Contact Group for Yugoslavia, and former UN High Representative for Bosnia & Herzegovina, Spaniard Carlos Westendorp. The main speaker was former Advisor for national security Brent Scowcroft. Scowcroft was an advisor for national security within President Gerald Ford's Cabinet and also within George Bush Senior's Cabinet. Since he was simultaneously a lecturer of Russian History at the famous West Point Academy, Scowcroft was speaking about the days when he met Powell as a young and talented officer who had

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been chosen to receive the White House scholarship. The White House programme allowed those receiving the scholarship to get to know the World, and the biggest challenge for them was travelling to the then Warsaw Pact countries. "I saw a few transformations of Colin Powell. The first one was from a talented young officer into an army leader. The second was the far harder transformation from a politician into a statesman", said Scowcroft, implying that Powell could run at the next elections as a presidential candidate; although there is a lot of time until then and that subject is not yet on the agenda. However, according to Henry Kissinger, "at Washington's social events only one topic of conversation is discussed: who is climbing the political ladder and who is falling from the Government". Thus, conversations like this and suggestions that Powell could be the next president are not out of the ordinary for metropolitan life in America. Colin Powell was very happy to

Colin Powell and CorDâ&#x20AC;&#x2122;s Editor

receive new copies of his Autobiography published in the Serbian language. "It is obvious that lots of effort was invested in printing and publishing this book. It will help me to remember Belgrade and my visit to Serbia every time I see it on the shelf. The tragic development of events made it impossible for me to extend my dialogue with your energetic and talented Prime Minister Djindjic, but I always wish your country great success", Powell said.

STABILITY PACT - BIANNUAL CONFERENCE

ENSURED SUSTAINABILITY

More than 500 representatives of the Balkan countries gathered in Sofia this May to attend the biannual meeting of the Stability Pact for South-East Europe. All those who participated presented achievements made in three key areas: infrastructure, democratisation and security. The topic of â&#x20AC;&#x2DC;Regional Ownership' was also presented as a crucial project of the Stability Pact.

rhard Busek, Special Co-ordinator of the Pact, stated that 2001. A similar agreement with Croatia was signed in October "regional ownership is of crucial importance with regard 2001, while negotiations with Albania started in late 2002. to the Stability Pact, as are the different regional co-operThe intention is to increase economic, political and social coation processes we have initiated". operation between the EU and the five countries through a tai"The Pact was not created as a permanent institution, but lored instrument: the aid regulation CARDS (Community one that should make itself redundant over time, as its tasks are Assistance for Reconstruction, Democratisation and Stabilisaachieved. This means that in order to ensure the sustainability tion). A total of â&#x201A;Ź4.65billion has been allocated over the period of regional co-operation processes established under the auspices of the Stability Pact, they have to become Today, the Balkan region is much more united self-reliant at some point", said Busek. than it was a few years ago and all states are Today, the Balkan region is much more united than it was a few years ago and all states are clearly con- clearly conscious that regional co-operation is scious that regional co-operation is one the priorities one the priorities on the road to EU integration. on the road to EU integration. Even some countries which initially opposed their membership in the organisation, 2002-2006 to accompany and support the reforms of the countries which is clearly addressed as "Balkan", become very active concerned. proponents of that Project. At the EU Summit meeting in Helsinki in December 1999, Bulgaria As a contribution to the Stability Pact and an interim step and Romania, which already have association agreements towards membership, the European Union set up a new gener- (Europe Agreements) with the EU, were admitted to full negotiaation of Stabilisation and Association Agreements. These are tions on membership with the EU. The EU-Western Balkans aimed at the five South-Eastern European countries which so Summit in Thessalonica in June 2003 reaffirmed the clear EUfar had no contractual relationship with the EU (Albania, membership perspective for the Western Balkans. Bosnia & Herzegovina, Croatia, FYR Macedonia and SCG). The In the implementation of the Stability Pact, important lessons EU signed the first SAA agreement with FYR Macedonia in April are being drawn from post World War Two reconstruction pro-

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FORCE OF INTEGRATION The Stability Pact is the first serious attempt by the international community to replace the previous reactive crisis intervention policy in SE Europe with a comprehensive, long-term conflict prevention strategy. On 10th June 1999, at the initiative of the EU, the Stability Pact for South-East Europe was adopted in Cologne. In the founding document, more than 40 partner countries and organisations undertook to strengthen the countries of South-East Europe "in their efforts to foster peace, democracy, respect for human rights and economic prosperity in order to achieve stability in the whole region". Euro-Atlantic integration was promised to all the region's countries and the Pact was reaffirmed at a summit meeting in Sarajevo on 30th July 1999. The idea of the Stability Pact arose in late 1998 and, thus, predates the Kosovo war. The NATO intervention acted as a catalyst to strengthen international political will for co-ordinated and preventive action in the region. The Stability Pact is based on experiences and lessons from worldwide international crisis management. Conflict prevention and peace-building can be successful only if they start in parallel in three key sectors: the creation of a secure environment; the promotion of sustainable democratic systems; the promotion of economic and social well being. Progress in all three sectors is necessary for sustainable peace and democracy. The Stability Pact is a political declaration of commitment and a framework agreement on international co-operation to develop a shared strategy among all partners for stability and growth in South-East Europe. The Stability Pact is not a new international organisation, nor does it have any independent financial resources or implementing structures. Organisationally, the Stability Pact relies on the Special Co-ordinator, Erhard Busek, and his 30-member team. His most important task is to bring the participants' political strategies in line with one another, to co-ordinate existing and new initiatives in the region and, thereby, help avoid unnecessary duplication of work.

STABILITY PACT - BIANNUAL CONFERENCE Erhard Busek for CorD

political commitment to the issue in question it is not possible to enhance regional ownership. This is a sine FROM REGIONAL OWNERSHIP qua non for regional ownership. So, is there a way to TO REGIONAL LEADERSHIP enhance political commitment? Either the issue at stake is of immediate political interest to the governments in By Dejan Berkovic question, so that they invest political capital and thus "The EU integration perspective of the countries of take ownership, or the 'return on investment' is of a South-East Europe remains the overarching driving longer-term nature: regional co-operation is, after all, a force. I am very glad that SCG achieved inclusion in the precondition for further European integration; for a "club of nations" and has been accepted as country country to take charge of a regional centre and make it with recognised capacities to join the EU", said special operational could well be considered an important Co-ordinator of the Stability Pact, Erhard Busek. check mark on regional co-operation within the "All our programmes are aimed at supportStabilisation and Association process. It ing this objective: much of this was clearly would be good if we could establish a list of spelled out in the Thessalonica Agenda. The benchmarks to breakdown this overall conEU, and in particular the European Commidition of regional co-operation into tangible ssion, is, thus, our key partner, also when steps. defining regional ownership in specific Secondly, qualified personnel are now at details. Moreover, large parts of CARDS are hand throughout the region, though regiondevoted to institutional capacity building al centres are still often staffed with interand, as such, are crucial to this process. nationals. Secondment of staff from SEE However, let me stress that one of the key countries for a certain period of time should roles of the Stability Pact is bringing togethbe seen as a way to enhance regional owner, in addition to the EU, all non-EU donors ership and build human resources at the from Canada, Japan, Norway, Switzerland same time. A very positive example regardand the U.S…. A third and final step is the ing the secondment of staff is the liaison Erhard Busek move from regional ownership to regional officers in the Trans-border Crime Fighting leadership, with more and more of the actual policy- Centre in Bucharest, where all member countries have making and political guidance of the centres being done seconded staff. The question how can we better tap into by the region and not by international representatives. In the available personnel resources in the region? some centres we are already seeing signs in this direc- A third and final step is the move from regional ownertion but, considering the limited administrative capaci- ship to regional leadership, with more and more of the ties and specialised expertise of most of the countries in actual policy-making and political guidance of the centhe region, it is not surprising that these are clearly the tres being done by the region and not by internationals. exceptions. In some centres we are already seeing signs in this I will not take you through the whole list of regional direction, but considering the limited administrative centres, but would like to look at the general require- capacities and specialised expertise of most of the ments for enhanced regional ownership as I see them: countries in the region it is not surprising that these are First of all, it is quite obvious that without a degree of clearly the exceptions.•

grammes, as well as the Helsinki process (CSCE/OSCE). The Stability Pact works as a two-way street. In order to receive support from the international community, the recipient countries must implement appropriate reforms. South-Eastern European governments have taken it upon themselves to carry out economic reforms (dismantling of trade and investment barriers) and fight corruption and organised crime within the context of the Stability Pact. In exchange, donors support the reconstruction process in a co-ordinated way through assistance and credits. It is not the amount of the money that is decisive for the success of aid. Rather, it depends on the activities to which the funds are directed. In other words, as far as financial support is concerned, it is not so much a matter of "how much?" but "what for?" This has been a guiding principle for the Stability Pact since the outset and financial pledges have always been linked to concise strategies and projects. May's working table meeting was aimed at assessing regional ownership and youth-related issues through panel discussions. Each Task Force evaluated the extent to which SP initiatives have been regionalised, before making recommendations on how to enhance this process further. There

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is awareness about the need to exchange experiences on regional ownership in order to better address similar problems through a common approach. Governments will intensify their efforts and undertake concerted steps to strengthen their institutional capacities and further regional co-operation. Participants recognised the very positive example given by initiatives coming out of the region itself, such as the Gender Task Force or the Cetinje Parliamentary Forum, and by those which have been transferred to the region with the establishment of regional centres, such as the Education Reform Initiative (ERI SEE) or NALAS on local government. The countries under the spotlight were called upon to take an even more active role, in particular with regard to the capacity building in parliaments in the region for both parliamentarians and parliamentary staff with regional structures such as the Cetinje Forum playing an important role, as well as regarding the implementation of the Zagreb Ministerial Declaration on Local Governance, with a view to capacity building at the level of local authorities. A particular focus of the meeting was devoted to the education reform process in SEE.• D.B.

Interview

H.E. Ruslan Demchenko, Ambassador of the Ukraine to SCG My estimation of the bilateral relations between SCG and my country is very high and I believe in the great prospects of its further development - so said H.E. Ruslan Demchenko, Ukrainian Ambassador to SCG, speaking exclusively to CorD this month. By Dragan Bisenic; Photo N. Milic

mbassador Demchenko elaborated: "First of all is the eternal factor of the genetic affinity of our Slavic nations; the similarities of our languages, proximity of our traditions, cultures and mentalities, as well as the similarity of our religions, which all add to our joint cultural wealth. Moreover, it is an historical fact that the ancestors of the modern Serbs came to their Motherland from Ukrainian territories. "The second factor is the similarity of our histories: centuries of tradition of mutual help and support in fighting for freedom. In the past, our nations fought together against Ottoman enslavement and, in the 20th century, thousands of Ukrainian soldiers gave their lives to free Serbian and Montenegrin lands of fascist occupiers. "The third factor is that we belong to the same geographical region of East and South-Eastern Europe, which leads to the closeness of our problems, tasks, challenges and threats. "The Fourth factor is a contemporary one and, thus, the most actual: we have the same strategic foreign policy goal, which is full integration into the European Union and EuroAtlantic structures. This goal requires implementation of fullscale reforms in our domestic policy, removing of the remnants of the former totalitarian communist systems, and the removal of the stereotypes that were inherited from those structures.

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"As you can see, all the aforementioned factors create a strong and stable basis for true friendship and long-lasting fruitful co-operation, and allow us to speak about the special meaning of our relations. "However, besides all necessary conditions, true partnership requires constant hard work of our governmental, economic, cultural, scientific and educational structures, as well as direct communication and co-operation between our citizens. "I would like to emphasise intensification of our political dialogue over the past few years. Since 2002, there have been five meetings of the presidents of both countries. SCG President Marovic's official visit to The Ukraine in 2003 provided a strong, fresh incentive for our relations. Since then, we have hosted the SCG Minister of foreign affairs, and our Minister of Defence has visited SCG twice. There have also been a number of consultations between our respect foreign affairs ministries, including one dedicated to the European integration topic. "In January 2005 the SCG Minister of foreign affairs participated in the inauguration ceremony of newly-elected Ukrainian President Yushenko and, in February this year, President Yushenko met his Serbian counterpart, President Tadic. Just recently, from 21st to 23rd May, Deputy PM Rybachuk held several working meetings with President Tadic, Serbian Prime Minister Kostunica and SCG's Minister for International Economic Relations, P.Ivanovic.

Interview "On 21st May Secretary of the National Security and Defence Council of the Ukraine, P.Doroshenko, visited Kosovo and Metohija, where he met the UNMiK leadership and spoke to the representatives of the Ukrainian peacekeeping force who are performing their honourable mission of securing stability in the region. "In the near future we are planning to hold an official visit to the Ukraine of Minister Draskovic. And there will also be a working meeting between the Speakers of our respective Parliaments, V. Lytvyn and Z.Sami. And, by the end of the year, there should be an official visit of the Head of the Ukraine's Verkhovna Rada [High Parliament] to your country. "We are also planning to organise official visits of our President and Prime Minister to SCG."

Revolution brought was the new global image of our country. For the first time the Ukraine emerged as an important subject of European and global politics; as a mature political nation. The Ukraine suddenly became a solid, desirable partner with sound democratic experience. I can say that after 15 years the Ukraine has truly opened itself up to the outside world, not only theoretically, but also in practical terms. We have already shown our good will by implementing a visa-free regime for the citizens of the EU who travelled to the Ukraine to watch the Eurovision Song Context. We now have a new and energetic government, which enjoys a considerably high level of trust from the people of the Ukraine: for the first time in the history of an independent Ukraine, 52% of Ukrainians support the government. Despite difficulties inherited from In which fields is bilateral cothe previous administration, the new operation most prominent and leaders abide by the principle of transwhere do you see the potential for parency in decision-making, indeWe feel quite a reluctant intensification? pendent judicial system, an anticorIt is the field of the economy that ruption policy and co-operation with attitude from some requires us to redouble our efforts, non-governmental organisations. European countries in though we have a very dynamic ecoThe top priority of the new admitting the Ukraine's nomic dialogue and the turnover Ukrainian government is to implement between our countries is constantly another revolution, this time in the field clear European perspecgrowing. For instance, in 2000 it of economics. Unfortunately, political tive. It is evident that a lot totalled $90million, while last year 'miracles' are not sufficient to build a of EU bureaucrats are turnover was more than three times prosperous country. The primary task higher at $325million. However, we do is to develop a market economy with either negative or neutral not exploit all the advantages of our strong social protection for citizens. As on this matter. economic co-operation. Despite the such, they are having a tough time now, rapidly growing figures, we are still far because first we must resolve the burbelow the level of turnover our counden of years of oligarchic economy. tries had as respective parts of the former USSR and SFRY. In the last few years our national GDP was the fastest growing There are a lot of prospects in the spheres of machinery and in Europe, growing on an average of eight to 12 per cent. You can equipment manufacture, as well as high-tech production, imagine the results when the economy starts functioning well. tourism and the agriculture sector. Our companies could work The government has already made quite impressive steps. together in building and construction areas here in Serbia & Almost overnight they eliminated all the economic privileges Montenegro, as well as in the Ukraine. So as you can see we that some businessmen enjoyed under the previous governhave a lot of jobs to do in the future. ment. The slogan "No more sweet deals" is a core of the new This June we will hold two Business forums: one in economic system in The Ukraine. They also removed almost Belgrade and another in Podgorica. These events will provide 20,000 managers at top administrative levels nationwide and excellent opportunities for our businessmen to establish direct appointed new people who have the abilities to rule the country connections with partners from your country, as well as preunder the new conditions. senting themselves on the Serbian and Montenegrin markets. What are the Ukraine's current external political priorities? Moreover, by the end of this year the third session of the Intergovernmental Ukrainian-Serbian-Montenegrin CommiThe political changes in the Ukraine brought changes to the sphere of foreign policy. First of all, our long-declared strategic ssion on economy and trade will be held and we expect a posicourse for European and Euro-Atlantic integration now has new tive outcome from that. impetus. At present, the whole of the Ukrainian leadership is At present, there is an active exchange of art and every year united in its dedication to the idea of membership in those we see a number of Ukrainian books translated into Serbian. European structures. This year the Ukrainian-Serbian phrase book was published. Secondly, the economic recovery of our country, as well as the The Department of Ukrainian language is intensively working goal of building a socially oriented market and transparent econoin Belgrade, as is the Department of Russian Language in Novi my would not be possible without membership in the WTO. Sad. At this very moment we are establishing co-operation Therefore, accession to this organisation is among the priorities for between our national television and radio companiesâ&#x20AC;Ś this year. It should be mentioned that there are clear indications from our partners that this aim could be achieved by this autumn. What are the most important changes resulting from the Thirdly, the key objective of the Ukraine is to help to estab'revolution'? lish stable, homogeneous co-operation with the EU. The The first and the most important change that the Orange CorD | June 2005

Interview Ukraine will use all its potential to become a regional leader; a new driving force towards European integration that can promote democracy in its neighbourhood. That means strategic partnerships with those of our neighbours which are striving to implement democratic European values and to integrate into European and Euro-Atlantic structures. Moreover, the paramount importance of our foreign policy is our strategic partnership with the U.S. and the Russian Federation. After a disappointing period of American mistrust of the former Ukrainian administration, the new Ukrainian leadership has managed to renew the spirit of true partnership in relations with the U.S. The Ukraine and the U.S. share the common goals of globally promoting democracy, fighting against terrorism and strengthening pan-European and Transatlantic security. We have a common vision of the future of Europe and this makes our partnership so much easier.

H.E. Ruslan Demchenko Constructive co-operation with the Russian Federation, as our neighbour and one of our biggest economic partners, will always take a strategic place in our foreign policy; although we still need to eliminate some problematic issues of our bilateral agenda which could hamper normal, friendly dialogue. First of all this concerns the removing of trade and economic barriers and finalising the necessary procedures of establishing our border regime. What are the Ukraine's policies vis-Ă -vis the EU, and is EU membership a high priority? As I already mentioned, the Ukrainian strategic development course is towards joining the EU, and the Ukraine will exert every effort to attain this goal. We are aware of the responsibilities this aspiration entails and we are perfectly aware of the inevitability of full-scale reforms in economic, social and political spheres. However, we feel quite a reluctant attitude from some European countries in admitting the Ukraine's clear European perspective. It is evident that a lot of EU bureaucrats are either negative or neutral on this matter. Such an attitude is quite disappointing, as over the last fourteen years the Ukraine has witnessed the encouraging effect on the reform efforts of EU candidate nations in Eastern Europeâ&#x20AC;ŚOur country has made the ultimate choice in favour of EU membership and there is no political dilemma about it, as there is no dilemma about any nation's sovereign right to become a part of a structure where principles of freedom, democracy, human rights and supremacy of Law prevail.â&#x20AC;˘

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REVOLUTIONARY COMPARISONS Though I would rather not draw any parallels, because these two events had quite different backgrounds, there were a number of similarities. Both Serbia in 2000 and the Ukraine in 2004 reached a critical point where the normal democratic development was no longer possible and people stood up for their integral right to live in a modern democratic country, recognised by the rest of the world. To the best of my knowledge, some members of Serbia's Otpor (Resistance) movement had contacts with the Ukrainian youth movement Pora, which took an active part in the Orange Revolution. Still, I would not overestimate the influence of foreign factors responding to the outcome of the last presidential election. The Ukraine was not an object of somebody else's geopolitical game and I think this angle was over exaggerated by the foreign media, including the SCG media. It was the Ukrainian people themselves who took their destiny in their own hands and decided about the future of their country. I have to say that the Ukraine did appreciate the solidarity and sympathy that many countries, NGOs and people all over the world expressed regarding the Orange Revolution. But I think that the main driving force of the Revolution was the desire of the Ukrainian people to win back their right to have free choice. The Orange Revolution marked a turning point in the modern history of the Ukraine. These were days when the Ukrainian nation had more solidarity than ever before. It was not just enthusiasm which led hundreds of thousands of people to protest on the streets in freezing cold weather for 17 days. I can say that it was clear determination to have a true moral leadership that could transform our country into a modern democracy where human rights and freedom of choice are not just shallow words. Such a determination has been building for years in Ukrainian society. But when the authorities crossed the line by falsifying the results of the election people resolutely confronted such cynicism. Half a year after those events our society still feels the Orange Revolution's inspiration. The revolution changed our minds and the perception of the country we live in. It also raised very high expectations for the new government, and the new politicians cannot let the people down.

NEW POST When we started our interview Ambassador Demchenko was receiving a large Ukrainian delegation in Belgrade to attend the EBRD's Annual Meeting. Afterwards the ambassador contributed to organising a visit of SCG Foreign Minister Draskovic to the Ukraine, during which the minister will meet the highest Ukrainian officials, including President Yushchenko and Prime Minister Timoshenko. Those were the last duties of ambassador Demchenko in Belgrade, as he received an invitation he could not refuse: President Yushchenko offered him a post in his Cabinet. We congratulate Mr. Demchenko and wish him every success.

Interview

TILTING By Vesna Damjanic; Photo Stanislav Milojkovic

Unless something dramatic happens in the meantime, for instance some new report about systematic corruption, the Anti-Corruption Council will celebrate its fifth anniversary at the end of this year. The reason things are so uncertain is evidenced by the almost daily friction in relations between this independent body and the members of the Serbian Government.

Verica Barac, President of the Anti-Corruption Council

he Anti-Corruption Council was established as an independent body on the initiative of late Prime Minister Zoran Djindjic, and, to date, it has compiled several detailed reports about cases of systematic corruption, whilst constantly at odds with Cabinet Ministers. Since its establishment, almost every time Council members have raised their voices or compiled reports about corruption starting with the sugar scandal, the privatisation report and Sartid etc. - Government Ministers have resorted to labelling the Council's members as "do-gooders" or even "ignoramuses". As such, the Council's fight against corruption has become tantamount to tilting at windmills. Among recent happenings was the much-publicised open letter to the public written by Council President Verica Barac. Barac was directly motivated to author the letter by an invitation she received to appear on a television broadcast alongside Borka Vucic. The invitation had also been extended to cabinet ministers, but it was their blank refusal to take part which prompted Barac to write the letter, though this was not the decisive factor. What was the decisive factor that prompted you to write such a letter? This concerned a text which I firstly offered to daily Blic,

CorD | June 2005

because I write a weekly column for them. However, since they did not publish it I sent it to Glas, where it was published. I wrote it because I was really surprised by the fact that no expert from these two democratic governments responded to the invitation to participate in the programme with Borka Vucic in order to explain how our money was going to Cyprus and Russia during the '90s and Borka Vicic's role in that. How can it be that Borka Vucic thinks that she has something to explain to the public in Serbia, while the experts who were brought to power by the citizens of Serbia in order to stop this theft do not have anything to say? I brought this issue up in a Council meeting with Prime Minister Kostunica and Minister Dinkic regarding the Council's report on Nacionalna Stedionica, which was held several days before I received the invitation to appear on TV Pink. At that meeting Dinkic did not respond to a single argument from the Council's report, but accused the Council members of being ignoramuses, claiming that they did not have a clue what they were talking about. The only argument Dinkic gave us was that the business premises of the former ZOP, its employees and the pay out of the old hard currency savings was offered to everybody, but that nobody except Nacionalna Stedionica wanted to take it on. When we asked the Minister to explain exactly how this had been "offered to everyone" he did not have an answer, because

UNRESPONSIVE

Interview

AT WINDMILLS there was no procedure. However, he continued to call the Council's members ignoramuses. When did you initially approach the Government regarding the Nacionalna Stedionica case? On 1st December last year the Council delivered an initiative to the Government to prevent the sale of the former ZOP's business premises, which was obviously set up for those who had used the premises in recent years for free - the Nacionalna Stedionica and other private banks. The BETA news agency published this initiative, but other media in Serbia mostly ignored it. Then, on 7th December, the Council delivered the report about Nacionalna Stedionica to the Government, which we published one week later. The Council reached an agreement with the former Government not to publish its reports until one week after their delivery to the Government, and we stick to that. However, apart from daily Politika, which published the whole report in instalments at the end of December, no other media mentioned the report at all. The reaction from Nacionalna Stedionica was strong propaganda on all television stations, especially on TV B92. The Government postponed a meeting with the Council regarding this report for a long time, with the explanation that they were waiting for the Ministry of Finance's report, which had not arrived for months. The aforementioned meeting with the Prime Minister and Finance Minister Dinkic was held three months after the Government received the report. Was there any reaction to your report? That text was written because of both certain reactions and also a lack of reaction to the Council's reports on the part of the Government. The Government reacted to our reports either by completely ignoring them or by accepting the reports, but explaining to us that they were not going to react because stamping out corruption would drive away foreign investors. They also responded to the reports by abusing the Council members instead of providing any facts. On the other side, in the first few months of the new Government, after resolving the problems regarding the Council's budget which had existed during Zoran Zivkovic's Government, soon after the press conference in July last year at which the Council protested because of the replacement of the Privatisation Agency's Director, Branko Pavlovic, the new Ministry of Finance started to find all kinds of administrative obstacles which made it very difficult for the Council to use its budget.

KEY ARGUMENT

â&#x20AC;Śthe Prime Minister and other ministers mostly tried to explain to us why we should not deal with cases of major corruption. The key argument was that the fight against corruption damages the country's reputationâ&#x20AC;Ś

THE LETTER IN QUESTION While I am making apologies to a journalist from Pink television for not being in a position to appear as a guest on her show, I must also mention that I am not an adequate speaker in the show with Mrs. Borka Vucic as another guest. So far, the Council has performed only a Report on the Joint Stock Company National Savings Bank, which is insufficient for the discussion (and perhaps not good either). I inquired why she did not summon a financial or banking expert. "They refused to come", said the journalist. "I have been postponing the show for the past three weeks hoping I will persuade one of them". "Not even Mr. Dinkic?" I asked. ''Not even him, nor Mr. Labus, nor Mr. Djelic", she replied. One of the basic reasons we believed in the necessity of having experts in power was that they alone could rectify illegalities, reveal secret accounts, return our money from Cyprus and Moscow, and eliminate other illegalities. And now this lady with a bun, voodoo of our impoverishment, has something to say to the public, and they do not? How that can be so is beyond my comprehension. The meeting with Prime Minister, Minister of Finance, and the Council regarding our Report on the Joint-Stock Company National Savings Bank was very helpful. Mrs. Vucic is innocent and should be left alone to enjoy her retirement; and be free to speak on television, if she wants. She was silent in due time, and now she should speak a little, and take it out on one of the members of the Council. Conclusions from the meeting are as follows: it was proved that everything had been in conformity with the law. The money in Euroaxis Bank, the establishment, recapitalisation, and the name, as well as the usage and sale of business premises and equipment, together with the payment of the "old" foreign exchange savings. The proof: no illegalities were determined, nor were any proceeding initiated, meaning everything was all right. It represents good business (maybe for the state, considering whose interests the speakers are advocating). The Governor was supposed to be commended, if not rewarded, for the unusual procedure which took courage, knowledge and, particularly, speed. The Council was pushed into someone else's political story and, due to the report on its web site, recapitalisation was stopped, damage was done, and a strategic foreign partner was sent away, although he was ready to give the money. The state will again own 13%, instead 37%, as it used to. If this is true for the National Savings Bank, as it is true for the companies Sartid, Jugore-

CorD | June 2005

Interview It is well known that the Council has experienced considerable problems covering its expenses. How does that affect the Council's performance? In the re-balancing of the budget in September last year, the Council's funds were halved, and even those resources which remained in the Council's budget could not be used because they were placed in the wrong economic classifications. Because of that, in addition to working with a halved budget, we had to request and wait for the funds from the budget's reserves, which served to make the work of the Council even more complicated. The budget re-balance took place at the same time as the Council's work on the Nacionalna Stedionica Report. The Ministry of Finance's Treasury Department, the Government's General Secretariat, everybody in fact, assured us that those were administrative errors; accidental mistakes. However, in the budget for 2005 the Ministry repeated the same mistakes, thus this year one third of the Council's resources were placed in economic classifications which the Council cannot use. In the end there was a meeting with the Prime Minister and Finance Minister regarding the Nacionalna Stedionica report, at which it became clear that the Government was refusing to co-operate with the Council and the fight against corruption. This month the pay out of the Council members' fees was stopped because the Treasury Department clerk had lost our documentation, and we received reminders for unpaid bills for the servicing and repairs of our office equipment, and even for the acquisition of newspapers. We carried out the public procurement of small value for the publishing of the second part of the Council's book, "Corruption, the Authorities and the State", but it remains uncertain as to whether there will be any money for the realisation of this procurement. I think that the attempt to block the Council's work through the budget and the announcements of some Cabinet Ministers that the Council will be cancelled are clear reactions from the Government to the work of the Anti-Corruption Council. How would you describe communication between the Council and the Government? On several occasions in the last year the Council met the Prime Minister and the members of the Government regarding reports about the sugar export, the bankruptcy of Sartid and Jugoremedija. At those meetings the Prime Minister and other ministers mostly tried to explain to us why we should not deal with cases of major corruption. The key argument was that the fight against corruption damages the country's reputation, even though EU officials constantly insist that, apart from co-operation with The Hague Tribunal, the level of corruption was the biggest obstacle confronting Serbia on the road to European integration. Some other reports, for instance the report on the Republic of Serbia's Privatisation Regulations with suggested amendments which we compiled together with experts from the OSCE - were simply ignored by the Government. Six months after we submitted that report we discovered, via the print media, that the Ministry of Economy had prepared the amendments to the Privatisation Law and Share Fund Law. When we looked at their proposal for amendments, we realised that not only had they failed to accept the suggestions from the report prepared by the Council and the OSCE, but that they had proposed completely opposite amendments which would create even bigger possibilities for corruption within privatisation processes. At the end of last year we warned the Government what the amendments proposed by the Ministry of Economy would provoke, but we were greeted by a flood of insults from Minister Bubalo that we were not experts. Yet minister Bubalo did not refute any of the Council's findings. However, regarding the Council's report on the Veterinary Institute, Minister Bubalo even publicly stated that he was not obliged to read the Council's reports, which is not even that terrible if we know that in the pri-

CorD | June 2005

Verica Barac vatisation of the Veterinary Institute, the Ministry of Economy did not accept the ruling of the Supreme Court in favour of the institute's employee consortium. How do you think the animosity between the Government and the Council can be resolved? There is no animosity between the Government and the Council. We are the advisory body whose duty it is to propose to the Government measures for stamping out corruption in senior administration. It is clear that some ministers in this Government do not want to co-operate with the Council, thus it is possible that

A MOVE FORWARD, BUT NOT SUFFICIENT International NGO Transparency International, which deals with the problem of corruption, has confirmed that Serbia has made a small step forward in the fight against corruption. The current level of corruption is 2.3, as oppose to the former figure of 1.7 on a scale of 10 - 1, 10 being the lowest level of corruption. However, all levels under four are considered as high corruption, and that places Serbia in the category of highly corrupt countries. However, compared to three years ago, corruption in Serbia was two times lower, but still three times higher than, for instance, Finland. The fact that more developed countries are not fully prepared to face the problem of corruption is evidenced by the fact that out of 110 countries which signed the international convention on the fight against corruption, only nine of them have ratified that convention. In order for the convention to take effect it needs to be ratified by 30 countries. Serbia has also signed the convention, but has not ratified it.

Interview the Government is incapable of fighting against corruption, because confronting the findings from the Council's reports and suspicions of serious corruption in cases which are linked to certain ministers would lead to the fall of the Government. You have emphasised on several occasions that there is no political desire to resolve the issue of corruption in Serbia. To whom did you address those concerns? Firstly to the executive authorities, because in Serbia even, after 5th October, the balance between the legal, legislative and executive authorities has not been established, i.e. the parliament and courts are completely subordinate to the executive authorities. I do not mean that the parliament is completely innocent when we talk about the catastrophic state of corruption in Serbia, but the executive authority has all of the mechanisms to fight corruption, but is, through the financing of political parties and other ways, completely controlled by the financial centres of power. To what extent will this situation change after the national strategy for the fight against corruption, which is already five months behind schedule, is finally implemented? I think that the Government's main motivation when it started to work on the draft of that strategy was that they saw it as a way to get rid of the Anti-Corruption Council. Namely, according to the national strategy a state body for the fight against the corruption was supposed to be established. We think that this is very good and we support the existence of such a body, but we are also in favour of the Council remaining in existence. Such a body as the Council, comprising independent people who do not have any executive power, supports the public's efforts in the fight against corruption. However, apart from the Council, the existence of a body which would have higher authority is indispensable. Regardless, I expect that the national strategy will soon be adopted because the fight against corruption is one of the basic segments of the Feasibility Study, and Serbia is one of the European countries with the highest level of corruption. The very fact that we have adopted some anti-corruption laws, that we have the Information Accessibility Law or the Conflict of Interests Law, is proof that we have already made a step forward.•

CORRUPTION FIGURES

In the last year alone the Council has received 697 citizen requests regarding cases of systematic corruption. Meanwhile, the Anti-Corruption Council has so far published reports about the policy and process of privatisation, a report on Mobtel, two reports about sugar exports, Jugoremedija, the bankruptcy of Sartid, the Veterinary Institute, Nacionalna Stedionica, Dunav Osiguranje, illegalities in the work of the Zvezdara Borough Council and the constructions of building annexes in the Konjarnik borough.

medija, Veterinarski zavod, Mobtel, Surcin Airport, Knjaz Milos, and sugar smuggling, then it is true for Mrs. Borka Vucic too. Therefore she is free and clear. Nothing has been proved and no processes have been initiated. That is proof that the judiciary is no longer corrupt or incompetent. The Minister is never going to repeat that, for when nothing was revealed, everything was in order, i.e. nothing happened. The problem is, therefore, the Council's ignorance. That was taken as an extenuating circumstance at the meeting. It was explained to us that the Governor, immediately upon entering office, increased foreign exchange reserves of the state with an insolvent bank, for everybody asked for it at that time and it was a favourable moment to win the award of business premises. The verbal consent of the Ministry of Finance was obtained (Mr. Djelic was still a friend, and not a 'connected person'). No one wanted the payment of the "old" foreign exchange savings, although everybody was offered, there was no documentation, but it was clear, hush - hush, premises were not given free of charge, but for salaries of employed workers the Government had a problem with business premises, but these are counters, no one needed them, for they have to remain counters forever, if not then cultural inheritance would be lost. Premises were sold at great cost and we, however, did not need any money, only shares in private banks, but not major ones - for that would not be good (again, I guess, for the state). The greatest ignorance on the subject of the economy was demonstrated by the Minister's professor of economics. Even the Prime Minister confirmed this, desiring to help the juvenile assistant at the meeting. According to the Prime Minister, our major stupidity was that we thought that a friend of the family could be a 'connected person'. And he explained the implementation of this instance as far as Equatorial Guinea. We were also dumb on the subject of comparative law. ‘True amateurs’, as the former Prime Minister would say. ‘Thank god’, I thought on the way out, ‘that the meeting was not in broader complement’. If Mr. Labus [Deputy PM, Miroljub Labus] had been there he would summon the public prosecutor to instruct us to rewrite the report performed under pressure, with the Office for Combating Organised Crime sitting in front of the doors while we copy. If Capital Investments Minister Mr. Velja [Ilic] were there, he would have kicked the report and cursed. If the meeting was held in the Assembly, Mr. Toma Nikolic [Radical Party acting president] could have told us all what bastards we were, lacking the quotes of his professor. The Report on Mobtel has been performed, but should we forward it? If no one else, I am familiar with the vocabulary of the capital expert, soon to be Master of Science for the railway. Unless he changes his thesis in the last minute, and chooses aeroplanes, in an effort to save Yugoslav Airlines. I will forward the Report. What else could I do?

CorD | June 2005

EBRD AGM - BELGRADE

RETURN TO THE

The main stage of the EBRD event, upon which the flags of all represented nations were flown

The 14th Annual Conference of the European Bank for Reconstruction and Development passed successfully in Belgrade this May. Speaking at the closing session of the Board of Governors, EBRD President Jean Lemierre said the meeting was a key event for a region with a significance that must not be underestimated. He thanked the outgoing governors for their work and dedication, as well as the authorities of Serbia and Belgrade for their generous aid to the successful outcome of the conference.

INVESTMENT MAP CorD

ositively assessing the event, Lemierre said "it was a good meeting for the region, for the Bank and for the Balkans. There were 2,500 participants, including more than 1,000 businessmen, which is a real success from the business, grass roots and investment points of view". Lemierre noted that the meeting with the prime ministers of the countries in the region was lively and positive. The regional leaders had laid out their views about what was necessary to improve the business environment and discussed solutions for institutional frameworks, inter-state relations, border issues and free trade. The business people addressed questions, such as the rule of law, the importance of simple, well-implemented regulations, and an efficient judicial system. "The region is making progress. The countries look to Europe and it is clear that European signals are better towards this region. There has been a change in the mood of the investors and they are keen to make investments. This region has great opportunities for investments and today it has its place on the investment map", said Lemierre, adding that the EBRD would continue to maintain its presence in South East Europe.

CorD | June 2005

Speaking about the proceedings of the meeting, the President said that governors welcomed the strong results of the bank and its management, as well as the plan to move towards the east. He also mentioned that there had been a normal debate about when the EBRD should move out of Central European countries. Commenting on the decision by Croatian authorities not to be represented at the level of the Prime Minister, Lemierre said each government is responsible to delegate their representatives. "We all know this has nothing to do with the EBRD or the Annual Meeting; it is part of the history of the region", he said. Nevertheless, Lemierre stressed that Croatia is very important to the region, is experiencing bright development and is clearly committed to the EU. Speaking to EBRD governors at the event, Lemierre said: "We see the priority continuing to shift towards countries further east and south. The new business model intends to implement this strategy. The Bank will face a series of challenges and we need to employ new instruments and methods of operation". He said there were diverging opinions on when the EBRD should pull out of certain countries, but the prevailing attitude was that the decision should be left to the demands of the markets. Lemierre said he believed the Board of Governors would come up

EBRD AGM - BELGRADE CRUMBLING BUILDINGS A BLEMISH Among the numerous praises that the participants of the EBRD Meeting showered over their hosts, there was one particular reprimand highlighted by Finance Minister Mladjan Dinkic, which relates to the crumbling buildings in central Belgrade. Dinkic noted that the visitors thought such buildings were a blemish on the city in which they had, otherwise, spent a wonderful time. As such, an initiative to rebuild these sites in the shortest possible time has been announced. "Belgrade is ready to contribute fully in that respect", said Belgrade Mayor Nenad Bogdanovic. However, he remarked that the buildings in question were owned by the Republic of Serbia and that the initiative had to come from the State.

with the right model for this issue in the course of this year. He also pointed out that EBRD governors encouraged more projects aimed at protecting the environment. "Thanks to the good Board of Governors, a lot has been done already. We have a difficult task; we risk a lot in the course of our work, we enter into strategic dialogues with states and that is why it is vital we work as a team in order to achieve our delicate mission", Lemierre concluded. Chair of the EBRD Board of Governors, Karl-Heinz Grasser, said the Board was honoured by the presence of four Prime Minister of the countries from the region, and that their attendance was a sign of cooperation. He especially attributed this progress to the efforts of EBRD President Jean Lemierre. "Hope was expressed that this meeting would send a signal to the international community that this region is open for business. I am sure we will see rapid change and, therefore, a clear path towards EU membership. Without political co-operation there cannot be the desired economic integration. And without that, there will be less growth, less employment and, consequently, greater political dissatisfaction", Grasser said. He reminded participants that the governors had commented during the meeting that the Bank's mission in these countries is not yet complete, but there would be a necessary change in the way the Bank operates in these countries. "The activities of the EBRD in these countries are, naturally, guided by the realities of the marketplace, though some Governors have suggested that there should be a timeframe set in advance. The governors of countries in early transition supported the ambitious plan to triple the number of transactions the Bank intends to finance over a three year period. "They noted that in moving south and east, the Bank has to finance a greater number of smaller and higher-risk projects. This poses a cost problem for the Bank, not only in project preparation, but also for the follow-up of projects", said Grasser. He added that steps had been taken to strengthen the Bank's own corporate governance, and that the governors were unanimous in their praise for President Lemierre's leadership, as well as the dedication of

the staff, which continued to be reflected in the Bank's achievements. The Chair of the Board thanked the SCG authorities and the people of Belgrade for their generous hospitality. He invited participants to attend the next EBRD meeting, scheduled for May 2006 in London. There were also some opposing opinions at the EBRD Meeting and those that stood out were the views of European Investment Bank Vice President Wolfgang Roth. Roth suggested that cases in which a stand alone policy of the EBRD and EIB was more efficient should be considered. He sees no need for the EIB to start to work in Georgia and Azerbaijan, as has been proposed, or for the EBRD to start to become active in Turkey, where transition is not the issue at all. Serbian officials, including Deputy Serbian PM Miroljub Labus, Finance Minister Mladjan Dinkic, Trade Minister Predrag Bubalo, International Economic Relations Minister Milan Parivodic and NBS Governor Radovan Jelasic were united in their stance that the country had succeeded in organising a very important event and truly showing that Belgrade is the world. They said that the meeting demonstrated that the image of Serbia is changing and that now is the time to invest into Serbia and the whole region. Summing up the two-day meeting, the Serbian officials noted that the idea that regions dissolve borders found ample proof at the meeting. Labus said "we proved that we can achieve anything if we want to by organising this meeting and now, I hope, it is time to show that this can become our everyday routine". The deputy PM pointed out that the entire operation of organising the event showed how well the Serbian Government and the City of Belgrade can combine forces. Recapping his discussions with EU Economic and Financial Affairs Commissioner Joachim Almunia, Labus announced that negotiations on the EU Stabilisation and Association Agreement would commence in October 2005. In the meantime, Labus noted, efforts will focus on the access of Serbia and other countries in the region to EU financial and investment funds and the manner of their implementation in the period 2007 - 2013 so that the whole region can move forward at a quicker pace. According to Labus, talks with U.S. Treasury Department Assistant Secretary Randy Quarles showed that Serbia's relations with the United States were good, and that the only open issue was full co-

VIBRANT CITY, HOPEFUL PEOPLE Following the close of the EBRD Annual Conference in Belgrade, bank President Jean Lemierre asked foreign journalists in attendance whether or not they liked Belgrade, saying that he thought the Serbian capital was "a vibrant city, with people full of hope". He added that the EBRD would have to come back another time". Responding to Lemierre, a journalist from Great Britain said that he hoped they would organise the next Annual Meeting in Belgrade because "the venue of the conference in London is dreadful". Undoubtedly, Belgrade has left a positive, lasting impression on all participants of the EBRD conference, whether they were bankers, investors, politicians or representatives of the international media. CorD | June 2005

EBRD AGM - BELGRADE

Serbian PM Kostunica and Montenegrin PM Djukanovic (3rd & 4th from left) participate in a panel discussion operation with the Hague Tribunal. The U.S. has given full support to SCG's structural reforms and accession to the EU. Labus stressed that Quarles had praised the attitude of Serbia in negotiations over Kosovo, Labus stressed. The G17 Plus leader also described his meeting with representatives of the Japanese Bank for International Co-operation, hinting that a visit by a Serbian delegation to Japan was possible this autumn. The visit would be aimed at attracting Japanese investors to the Serbian market. Labus placed special emphasis on talks with representatives of the Council of Europe's Development Bank, which has agreed to assist in relief operations to alleviate the damage inflicted by the recent floods in the Banat region, as well as to support undeveloped regions and internally displaced persons. Moreover, Labus explained, the European Investment Bank has agreed to provide financial support for developing infrastructure franchising. Announcing an official visit to Austria later this year in order to present investment opportunities in Serbia, Dinkic said: "After this meeting, I am confident that foreign direct investments will reach close to two billion dollars this year and I think Serbia can attract even more". According to Dinkic, another sure sign that many attendees of the EBRD Meeting in Belgrade will decide to invest in Serbia in the immediate future is a meeting that has been scheduled with investors from Canada, who have extended their stay in Belgrade by an extra day for this very reason. Summing up the direct financial effects of two-day meetings with representatives from the world of finance, Minister Dinkic said that total EBRD investments in Serbia, including agreements on 72-million-dollar loans, had reached â&#x201A;Ź800million, along with â&#x201A;Ź1.2billion that the bank had channelled from private sources. Dinkic announced five more loan agreements with the European Investment Bank in the second half of 2005 that are to be used to reconstruct the flight control system, build housing for socially marginalised groups, reconstruct the railroad infrastructure, the infrastructure of small and mid-sized municipalities and continued reconstruction of the Clinical Centre. "There is also a good chance that the foreign debt will be reprogrammed at much lower rates than

GUIDE TO SERBIAN BANKING SECTOR A special edition of CMA Publishing Division, entitled "Guide to the Serbian Banking Sector", was among the publications approved by the EBRD for presentation at the Annual Meeting. The publication showcased the biggest and most influential banks in Serbia. "This is a very impressive publication", said Chair of the EBRD Board of Governors, Karl-Heinz Grasser, after perusing our special edition. "The publication is of a standard appropriate for a major event such as this meeting", said Vice President of Reiffeissen Bank, Herbert Stepich.

CorD | June 2005

at present", said Dinkic. A draft agreement was signed with the Nordic Investment Bank to finance infrastructure, environment and health programmes. Another draft was signed with the Council of Europe's Development Bank, which has already prepared a 20-million-euro project to finance housing for socially marginalised groups and has agreed to maximally reduce procedures to approve additional funds for alleviating the damage inflicted by floods in Serbia. Predrag Bubalo highlighted his talks the EBRD Consul General about the aligning of domestic laws with EU laws and the aid that international institutions are willing to offer in terms of finance and expertise to support this process. Bubalo said the entry of Credit Agricole Bank into Serbia through the recapitalisation of Meridian Bank is a major event that improves loan availability to SMEs. Bubalo also said that a score of renowned candidates have registered at the tender for international advisors for privatisation or the telecommunications sector. According to Milan Parivodic, "the message that Serbia and Belgrade have sent out to the whole world is that Serbia is on the right track". Parivodic added that his claim is grounded in the political stabilisation of the country, its willingness to co-operate and determination to join the European Union, with full awareness that time is of the essence. "Foreign partners have been assured that our legal framework has been significantly amended, while key issues that we need to resolve and that others have pointed out are those pertaining to property ownership, urbanisation and construction", said Parivodic. During the course of the event, NBS Governor Radovan Jelasic and his associates held over 50 meetings with financial and banking experts from all over the world. The talks concluded that there is a solid environment for developing the banking sector and that another injection of $300million can be expected through recapitalisation. Speaking after a meeting with counterparts from neighbouring countries, Jelasic announced a joint appearance under Serbian leadership before the European Central Bank with the aim of hastening the EU integration of the entire region.â&#x20AC;˘

Interview

EBRD AGM - BELGRADE

REFORM'S NOT EASY

By Biljana Stepanovic

Prior to the start of the EBRD’s two-day meeting in Belgrade, the bank's president, Jean Lemierre, spoke to CorD of the EBRD's readiness to increase activities in Serbia, also assessing that Serbia had made a significant step forward.

Jean Lemierre, President of the EBRD

he participation of such a huge number of bankers, as well as EU Economic and Monetary Affairs Commissar, Joaquin Almunia, were signs to international investors that it pays to invest in Serbia & Montenegro, as well as neighbouring countries noted Lemierre. Asked whether he knows any potential investor willing to invest in Kosovo, as an extremely unstable area, Lemierre responded that the investors always search for strong, stable and reliable institutions. "Neverthless", he stressed, "there are investors making enquiries about Kosovo".

Why did the EBRD decide to hold its annual meeting in Belgrade? We have seen progress in the region and in Serbia, consequently the time had come to organise the annual meeting here and that is good. I was in Serbia four years ago. We had a different situation back then. We expect in excess of two and half thousand participants from all over the world. This region and Belgrade will be on the investors' maps and that is excellent. Can we consider this EBRD meeting as a very good sign and a great opportunity for our country to attract foreign investors? Yes. Investors will come here and participate in discussions, listen and ask questions. Both business and political leaders will attend, namely members of many governments and non-governmental organisations, as well as journalists. All of them will be able to see what is going on here and that is fine. This is one of the ways to strengthen democracy and market economy. I am acquainted with numerous investors. They have started to learn about the region and would like to understand it better and eventually make their decisions. I am confident that this is a unique opportunity for Belgrade to explain what can be accomplished here. The EBRD assessed two years ago that reforms had almost stopped here, especially when it came to the privatisation process. Then the Serbian Government stated that the reforms were rejuvenated by the end of last year. What is your opinion on this matter? In 2003 we stated that Serbia had progressed more in the previous two years than many other countries had managed in ten years, but after that we witnessed a slow-down. However, we see fresh acceleration today; we see changes. We have the positive Feasibility study and the agreement with the International Monetary Fund, as well as new reform programmes. I had a very fruitful meeting with Prime Minister Kostunica, who effectively demonstrated that there is certain acceleration and that the overall economic situation is better. Henceforth, we have definitely observed changes. The EBRD has financed a couple of major investments in the energy sector, and you are interested in the banking sector, telecommunications and SMEs. Which sectors have the best chances of propelling Serbia closer to the EU? We are the biggest investors in today's Serbia. We have invested

two billion euros in this country and that is very positive. We have started with SMEs and infrastructure and are very dedicated to the entities in this domain, where there is a great need to improve. We are turning now to the banking sector, production and the agricultural industry. I just visited the coffee factory and all that is good. What are the possibilities for investors here? Of course, that would be infrastructure and concessions, but it is mostly in production. There is a great potential in Serbia to attract investors, so that they further develop their trade and manage to export goods. That would be the best way for reforms to continue, and to strengthen connections with the European Union on a step-by-step basis. What did you discuss when you met PM Kostunica? It was a very good and open meeting. We know one another and have discussed the situation here for four years. I was here in February and I can feel the difference between then and now. In the meantime the Feasibility Study was approved and the mood is much different. In February we talked about steps to be taken to support the process of reforms in Serbia; we discussed our annual meeting and set up our priorities - banking sector, infrastructure, SMEs, foreign investments, production. We fully understand that it is not easy to carry out reforms. Transition is a very painful and difficult exercise. Our task is to support you, to bring the investments that we can and to abstain and refrain from lecturing. We know that it is not at all easy to accomplish all of that. Those are the topics we discussed. I think he has a good grasp of the situation and that he knows that everything cannot be changed overnight. He heard our opinions and I believe we will have a good understanding in the future.•

CREDITS In addition to EBRD credits, Serbian officials have announced that EU funds intended for the economic development of EU candidate countries are to be made more accessible to SCG. According to announcements made to date, the EBRD will invest a further €100million, while the European Investment Bank (EIB) will invest €250million for new projects in Serbia. Confirmed loans include: · EBRD: two credits for Belgrade-Novi Sad motorway and Beska Bridge, signed 20th May 2005. Total = €72million · EBRD & Volksbank: credits for SMEs. Total = €10million · EBRD: for Sevojno Copper Smelting Plant. Total = €16million · EIB: for reconstruction of air traffic control system. Total = €36million · EIB: for refugee housing and assistance to flooded areas. Total = €25million · EIB: for reconstruction of the national rail network. Total = €120million · EIB: for reconstruction of municipal infrastructure. Total = €25million · EIB: continuation of reconstruction of four Clinical centres. Total = €80million · EIB, Raiffeisenbank & Raiffeisen Leasing: credits for SMEs. Total = €30million

CorD | June 2005

Interview

SELF-SUFFICIENCY By Jelica Putnikovic, Photo Andy Dall

peaking exclusively to CorD this month, minister Lalovic explained that "up to now, we have somehow attempted to run away from this problem, while a major strategy requires serious assessment of the current situation. We in Serbia, however, only had empty talk and groundless promises. On the eve of any election we would listen to promises that a certain candidate would create jobs for millions. Of course, such pledges never materialised after the elections. This is a serious problem that I am trying to solve in the Ministry". What is the essence of the new five-year Employment Strategy? Roughly speaking, we stated two things in the Strategy: at the macro-level we quoted general conditions under which we may achieve proclaimed goals, and at the micro-level we identified tangible steps that can be taken. As far as the macro-plan is concerned, we started with a simple premise: direct investments in the Serbian economy must increase at an average of eight per cent per year. Such an increase in the next five years is necessary in order to achieve the Strategy's projected goal of having an unemployment rate of 10.5% by 2010. Our projection envisages a series of other interventions, but the aforementioned target is essential at the macro-level. Meanwhile, at the micro-level this Strategy represents a brand new approach and a new philosophy: namely, we would like to impose conditions whereby jobs are to be brought before the people and not the other way around, in order to push people towards employment.

Slobodan Lalovic, Serbian Minister for Labour, Employment and Social Policy Unemployment is without a doubt the biggest problem in Serbia. I have stated that fact many times since assuming this ministerial position. Indeed, unemployment is enormous. From the very beginning of my appointment in this Ministry I was practically engaged in tackling that issue. As a result, the Serbian Government recently adopted the Strategy for the Decrease of Unemployment - 2005 to 2010. That document defines ways to fight unemployment; to apply therein the conditions under which we can resolve that problem. This is one of the better documents prepared by this government in this regard - so said Slobodan Lalovic, Serbian Minister for Labour, Employment and Social Policy. 48

CorD | June 2005

Are you trying to prevent the internal migration of unemployed citizens from underdeveloped areas where there are currently no jobs available? We will make every effort to minimise migration, since we assess that it is unrealistic to expect that people who move because of jobs can be in a position to secure their subsistence in the next five years. Due to current salary levels, it is naive to expect that a person can leave his or her place of residence and find even the most modest place to stay with a pretty low income to pay his debts and housing overheads. To put it simply, it is a very forcible approach to the problem. How will the Strategy be practically implemented? We have divided Serbia into regions. The criteria employed included the degree of investment risk and other different parameters. By so doing, we have conditionally determined a possible policy for the forthcoming five-year period. We assessed where the state would pay greater attention, and where it would give less priority. That is a state policy and it includes a holistic reform of the National Employment Bureau, as well as amendments to the Law on Employment - work on which is already pending. Our idea is to ensure that the National Employment Bureau serves the interests of jobseekers. Thereafter, through individual agreements of the unemployed with their advisors (mediators in the employment bureaus), they should agree how they can jointly search for any job for the individual in question. That is a personal relationship, and represents correct co-operation with every single unemployed person.

Interview

REQUIRED Do you believe that this can solve the serious problem that, irrespective of the large number of jobseekers, employers are often unable to find appropriately trained and educated staff? It is important to note that in many areas we have so-called structural unemployment. Namely, there are vacancies for unavailable educational profiles and no vacancies for available qualifications. The idea is to place greater attention, through the National Bureau, on the further education or re-qualification of individuals needed on the market. We shall study what profiles are needed and will resolve that through a wide range of re-qualifications, further education and so on. That will be done strictly in accordance with the market requirements. What are the least represented occupations in Serbia? In today's Serbia this is common knowledge; no special analysis is required. It refers to production occupations where an employee is working with different types of specialised machinery. There are instances when the companies are unable to find suitable employees. However, at the same time, even in those companies, we have situations whereby qualified workers who became jobless are unable to find jobs simply because they are over 35, for example? This used to be a case, but it is not so anymore. At some point some foreign companies insisted on the age of prospective employees. However, nowadays that is not the case, since there are no suitable workers. I have concrete cases where the directors of companies made contact with me to discuss their problems of securing adequately trained workers. They say: 'Let me have such an employee, even if he is 50, if he is indeed willing to work'. This is, therefore, not a major problem. Rather, the problem is so-called structural unemployment. Was the Employment Strategy prepared in accordance with similar successful solutions implemented by other governments? The process began from the Lisbon Declaration of the European Union, which has a couple of general goals. We are, however, realistic in our goals. We do not dream about the same rules being valid in Serbia as they are in France or Germany. There are no required circumstances here. What is essential is that this document is adjusted to cater for local conditions, rather than just being copied. It is realistic. When I joined the Ministry I found that some of my predecessors attempted to copy solutions from some countries.

Slobodan Lalovic This is absolutely pointless, since each country has specific features. That is why we drafted an authentic document. There are lot of young, educated people among the unemployed who could well become statistics of the so-called "brain drain". How do you tackle this issue? The number of youngsters among the unemployed population in Serbia is far greater than some other transitional countries. We have identified a lot of the problems and agreed, in principal, how to resolve them. The quality of this Strategy is evidenced by the fact that both means and goals are quantifiable. This is not a general political story. We do work. Immediately upon the adoption of the

EMPLOYMENT STRATEGY

ENTERPRISE RESTRUCTURING

HANDICAPPED WORKERS

The macro-plan started with a simple premise: direct investments in the Serbian economy must increase at an average of eight per cent per year. This is necessary in order to achieve the Strategy's projected goal of having an unemployment rate of 10.5% by 2010. At the micro-level this Strategy represents a brand new approach and a new philosophy: namely, we would like to impose conditions whereby jobs are to be brought before the people and not the other way around.

By mid-2006 we have to accomplish separation of non-essential functions and thereafter we will have to specify the basic function of the eight biggest public enterprises. The entire process will have to be completed within the next two years, taking into account that some of those companies will be privatised. Dependant companies that will be taken away from the enterprise will have a privileged position and retain their jobs for a certain period of time.

A draft of the new Law on Professional Rehabilitation and Employment of the Handicapped is practically completed and will soon be sent for parliamentary adoption. That is a new concept, and society will do everything it can to equip a handicapped person for any job he or she is suitable for. The idea is to return the handicapped to normal life. We shall prescribe a quota of how many handicapped persons an employer is obliged to employ

CorD | June 2005

Interview Strategy we started with the preparation of the two-year Plan for Employment the provision of which was envisaged by the Strategy. The plan offers tangible solutions and results will be measurable. At the end of this year and during next year we will be able to see whether we can achieve our goals as is, or whether some changes are needed, additional means required and so on. Undoubtedly, foreign and domestic investments create new jobs. Have you received any private sector assessments of new legislation dealing with this sector? During adoption of the amended Labour Law we witnessed some unsettled dust for no apparent reason. I believe that the quality of this law will be evident once 'cleansing' has taken place. In other words, this law will prove itselfâ&#x20AC;ŚIn some of the institutes we incorporated important European Union standards. All our foreign investors are aware of this and I do not see any reason why such standards should not be applied here, particularly when one considers that some of them are not connected to financial issues and do not increase company overheadsâ&#x20AC;Śthe legislation's critics never noted specific elements that they oppose.

The re-structuring and privatisation of public enterprises with a surplus of redundant employees is currently pending. Do you foresee any greater resistance or protests of the affected employees? Those are state-owned companies. By mid-2006 we have to accomplish separation of non-essential functions and thereafter we will have to specify the basic function of the eight biggest public enterprises. The entire process will have to be completed within the next two years, taking into account that some of those companies will be privatised. Dependant companies that will be taken away from the enterprise will have a privileged position and retain their jobs for a certain period of time. Thus, the future buyer would know that he is granted a privileged position.

How heavily do we rely on experiences from other parts of the world? We have co-operation with French and Belgian Ministries of Labour. We will try to copy their good solutions here Our idea is to ensure for the simple reason that we do not need to reinvent the wheel. We have that the National especially good collaboration with Italy. Employment Bureau They transfer their experience with socalled co-operatives from the developed serves the interests of northern part of the country. That is a jobseekers Excessive production expenses system in which a great number of ensure that our products are internasmall, often family-based, enterprises tionally uncompetitive. Can the counproduce parts for big companies, which try's fortunes be revived by labour reforms? in turn assemble these parts into the final products we all know. We The main comparative advantage of Serbia is the quality of its will try to 'reproduce' that knowledge and practice here in Serbia. workforce. In comparison with other countries, our workers - from blue-collar to white-collar sectors - are ready and able to satisfy all That concept was developed some time ago by 'Simpo' in the working requirements. This is valid both in terms of productivity southern Serbia. and quality. Once you place them in an orderly system with normal Yes, and now there is one similar such project in Vojvodina, professional relationships, they perform excellently. For more than regarding agricultural production. However, we will first have to thirty years we have heard stories that our workers are excellent amend certain regulations. employees overseas. They worked there in an orderly system, while here it was problematic to function in a badly-ordered system. In an The country has yet to remedy the issue of employment and ineffectual system it is logical to expect people to behave inapproassistance to handicapped individuals. How is that progressing? priately. In the new circumstances our people tend to accept new A draft of the new Law on Professional Rehabilitation and standards. It is that quality of work, rather than cheap labour, which Employment of the Handicapped is practically completed and will will attract investors, irrespective of whether they are domestic or soon be sent for parliamentary adoption. That is a new concept, and foreign. This is because no serious entrepreneur would base his society will do everything it can to equip a handicapped person for business expansion upon enormously low wages and salaries. Such any job he or she is suitable for. The idea is to return the handiwages imply a certain level of dissatisfaction. In my conversations capped to normal life. We shall prescribe a quota of how many at UUS and other privatised companies, the managers pointed out handicapped persons an employer is obliged to employ and the that they seek high quality performance and better quality of final amount of money to be paid in a special fund in order to open new products, as opposed to lower salaries. positions for the handicapped. Privatisation arrived at a juncture when it would be difficult for some companies to find a buyer. What kind of problems has that brought in terms of employment, specifically within social policy implications? The completion of the privatisation and transition processes will be accompanied with a loss of working places for a certain number of people. If the sale of an enterprise is unsuccessful then the company in question will go bankrupt. That is the strategy we prepared for the resolution of similar situations. We have to sort out those companies and, inevitably, some will have to undergo transformation, whilst others will stay on the market as they are. This process will probably last for another two to three years.

CorD | June 2005

What about the reform of the pension system? In the past few days we have made various calculations and analyses in this regard, for instance in search of the lowest pension cheque. In conjunction with the International Monetary Fund, we reached agreement regarding the reform of the pension system. However, any more detailed discussion will be forthcoming once we complete our analyses. The government created the Council for Reform of the Pension System, since - apart from the completion of privatisation - this is one of the most important jobs in the country. We have prepared a draft of the new law on pension insurance and I expect that legislation to be adopted in the Serbian Parliament this year.â&#x20AC;˘

bulletin...bulletin...bulletin... OSCE Advises Kosovo

he Head of the OSCE Mission in Kosovo, Werner Wnendt, has called on the local political leadership to fully utilise the Kosovo Forum to facilitate a constructive dialogue on a range of key issues. "Discussion of all relevant matters and consensus on these issues is imperative to the further democratic development of Kosovo," he said. "The Forum is a place where all views can be put forward. Fruitful discussion in the Forum can lead to better internal relations and less time-consuming decisionmaking by institutions." He added that the consultative process within the forum can contribute to the future of Kosovo. Since internal dialogue amongst Kosovo's political entities is not enough, continued dialogue with Belgrade is essential for any progress and the OSCE Mission expects that all leaders will promote such relations. Furthermore, it is important that all political factors are included in discussions on the future of Kosovo. Ambassador Wnendt, who met all of Kosovo's political leaders in his first two weeks in office, said he was impressed by the willingness of the leaders to tackle the many difficulties ahead.•

mer Bosnian-Serb military leader would become a condition for further integration. "The Serbian public must grasp that more than seven thousand people were murdered in Srebrenica in 1995. Forces commanded by Mladic were responsible for the murders and because of that he must appear before the Hague Tribunal," said Hageman.•

Tadic: Government secure…for now

erbian President Boris Tadic told Radio B92 last month that the coalition Serbian Government can't be brought down "at the moment". Tadic admitted that negotiations on the potential of his Democratic Party joining the government have never been held with any senior government member. In order for that to happen, he said, both sides would have to want it, which isn't the case.

Kosovo a 'stumbling block'

uropean officials said in May that the final status of Kosovo and the failure to arrest ICTY fugitive Ratko Mladic would be stumbling blocks for Serbia & Montenegro on its road to EU integration. According to David Hudson, deputy head of the EC delegation in SCG, the EU does not want to prejudice the final status of Kosovo, but it does want Kosovo to achieve European standards and have a European future, regardless of the final status. The deputy head of the commission's delegation to the Netherlands, Hans Hage-

tive was first seen on 14th April, accompanied by his wife, at a restaurant in south-

He added that it would only be possible for the Democrats to be in a new government after the staging of fresh elections. The president reiterated that his party would continue to vote against the government which, he said, is not doing its job properly, particularly in the economic sphere. "The government is doing a good job in some other areas, such as co-operation with The Hague Tribunal, and anyone of good will would have to admit that. However, there is a whole series of other issues which the government, in my opinion, is doing badly. I will always speak about that and I won't forgive, just as the government doesn't forgive me," said Tadic.•

eastern Bosnia, and a second time a week later in Belgrade with his brother Luka. Hague Tribunal inspectors considered this information to be so sensitive that they did not even inform western information services, rather, just the Serbian government." "This was done because the western services have, in the past, not done anything with such information, and the Tribunal figured that there would be a greater chance of the Serbian Government arresting Karadzic because of the great international pressure being put on them to do so." The Guardian reported that ICTY Chief Prosecutor, Carla Del Ponte, "is bitter about the sterility of the international forces in Bosnia regarding war crimes and is threatening that she will publicly discuss how they are getting in the way of the process of searching for and arresting Hague fugitives."•

Mass Redundancy looming

he Serbian Government is to significantly lower the number of employees in the state administration, thus satisfying one of its key obligations. According to Serbian Finance Minister, Mladjan Dinkic, 3,000 public servants, who are surplus to requirements, will be

Karadzic spotted in Belgrade man, said that the Mladic case is becoming an even greater obstacle on Serbia & Montenegro's European road, but that he did now want to specify the stage of the process at which the extradition of the for-

ritish national daily, The Guardian, reported in May that Bosnian-Serb ICTY fugitive Radovan Karadzic has been spotted on the streets of Belgrade. According to the popular highbrow newspaper, "The most sought-after Hague fugi-

laid off by the beginning of July with the aim of making the government's work more rational and effective. The redundancies are expected to be only the first wave of sackings as the government prepares to streamline its administration.• CorD | June 2005

Interview By Jelica Putnikovic, Photo Andy Dall

ccording to economist Jovan Rankovic, the Solvency Centre "forms part of the NBS which, like other world institutions on the demand of companies or private persons, and for appropriate compensation, issues a solvency appraisal for any company". This month we spoke to Rankovic, who has compiled a general model for the NBS, according to which all data regarding the solvency status of Serbian companies will be compiled and distributed. Does your work ensure that anybody wishing to invest in a domestic company is now able to obtain a precise solvency appraisal of said firm? Yes, anybody; the same as how we used to be able to receive solvency data about any company from any country. That is possible because the company balances are public, legal documents and nobody can say that they are confidential business secrets.

Jovan Rankovic, Economist

Previously, such data was not easy to obtain in out country. Why the change? Such information was never officially secret here. It was only the companies who declared such data as secret, even though they did not have the right to do so. But now anybody, with minimal compensation, can obtain that data. Reports of companies' status and successes form the basis upon which the appraisal of their financial situation and profitability is compiled. That is a mark of great progress in Serbia, in comparison with the last 60 years. Not only did we have a great concealment of data, but we also had great ignorance too. Now we will receive the exact picture of some company. There will be no more fixed reports. How significant is this transparency to potential foreign partners? It will mean a great deal, not only to foreign partners, but also to domestic investors. They will be able to receive a correct survey of the company. That document is based on fact, accord-

Every year I make an analysis of the solvency of the Serbian economy. The balance sheets of companies show that six of the 35 branches of the Serbian economy are bankrupt. ing to the regulations of appraising financial situations and profitability. Potential investors will be able to base their research and projections on such data.

Transitional advances ensure that the National Bank of Serbia (NBS) is now the institution which receives all company balances. Those tasks which used to be carried out by SDK (Sluzba Drustvenog Knjigovodstva - Public Accounting Service) are now carried out by the Serbian National Bank's Solvency Centre. Company business data, which was formerly processed by statistics and SDK, is now processed by the Solvency Centre. 52

CorD | June 2005

Will that data be used on the Stock Exchange? Of course. Those interested in that data were supposed to receive it from the Security Commission, but they did not do so. This is due to the fact that the Security Commission will only be able to deal with real reports according to the NBS's solvency and, thus, formulate their report in such a way as is the norm on the stock exchanges of the U.S., France or England. The Security Commission will adapt NBS reports and, as such, securities in circulation can be evaluated. What does that mean exactly? For example, we have been hearing about Knjaz Milos for months, but nobody on Earth knows whether those shares were worth more or less than the amounts which were in circulation, and the price which was finally paid for them because there was

Interview no information about the value of that company. We just had information about how much had been offered and by whom, rather than knowing on which basis those offers were made. We often hear from economists that everything of value in Serbia has already been sold and that the remaining companies can hardly find a purchaser. How would you evaluate the privatisation process to date? Every year I make an analysis of the solvency of the Serbian economy. The balance sheets of companies show that six of the 35 branches of the Serbian economy are bankrupt. The chemical industry is in the worst position, followed by the electro industry. Another 500 companies have yet to be privatised and we can, frankly, evaluate that they have all but collapsed.

â&#x20AC;Śmaking advanced decisions is tantamount to lunacyâ&#x20AC;ŚNone of those people in the Finance Ministry and Privatisation Agency are experts. However, they are in power and they will not ask anybody. Moreover, of 680 large companies in Serbia 500 are bankrupt; these 500 firms employ 500,000 people. They have not been privatised and nobody will privatise them. It is rumoured that the Government are forming a new regulation which will change the principle of privatisation and see the introduction of an institute for takeovers. Take the example of the privatisation of the Smederevo forgery. That sale made a 92billion dinar loss because the capital was worth 24billion dinars and U.S. Steel took over the forgery for 23billion. That was given to them as a gift, without the losses. This is because foreign companies which would like to take over some Serbian companies want to do so without the losses and financial obligations. Takeovers, however, are only possible because those 500 companies have either lost their capital completely, or the major part of it. As many as 230 large companies have lost over 100 per cent of their capital value. For instance, the biggest capital is in the electro industry. Those 19 production firms which make up Elektroprivreda Srbije (the Serbian Electricity industry), with 28,000 employees, have lost 45 per cent of their company capital through debts. The Government has started to write off the debts of companies which have not been privatised. Will that help them find buyers? That is all being done without forethought. The only solution for failed companies would be to make a meticulous financial analysis of all of them separately in order to determine whether that company would be able to recover through its own capital and power; to see whether that would be possible through the help of creditors (that is composition with creditors), or through bankruptcy, so that the company would be taken over through liquidation. That is the only right thing to do. As such, making advanced decisions is tantamount to lunacy. I think that people who make such decisions are not experts. None of those people in the Finance Ministry and Privatisation Agency are experts. However, they are in power and they will not ask anybody. They do not want to admit their ignorance. I

Jovan Rankovic do not understand such behaviour. I was anti-communist and everybody knew that. But I was the president of the Commission for Balance System because knowledge was appreciated. Today they do not appreciate anybody and they do not want to ask anybody anything. And that is exactly why there are making such general, erroneous decisions in connection with privatisation. The negative consequences will be great; this will cost us a fortune. Thus, according to you, permitting foreign takeovers is a bad solution? Takeovers will jeopardise the state. With the privatisation to date the state earned money, but only squandered it. And now it will have to take over the debts. As a result of all this they had to dissolve four banks. Those banks entered the zone of bankruptcy because they could not collect from creditors. That will happen again now because the state has no way of recouping the money to settle those debts. The creditors will be ruined: the banks and suppliers. The same way the creditors of the Smederevo Forgery were ruined. In your opinion what are the prospects of the Serbian economy, if any?

THE END IS NIGH How long do you think the current government will remain in power? This Government has not got very long left. The economy is increasingly sinking. Those 500 companies have not been rehabilitated and 230 of them have lost major capital: no company can survive without its own capital.

CorD | June 2005

Interview In my opinion, bad. Cabinet ministers make general decisions that do not help. I think that they are unaware of the danger because ignorance is the biggest quality of their administration. But ignorance is not the only problem. Previously, at the time of the former Yugoslavia, everybody complained about Prime Minister Mikulic, saying: "he wouldn't even know how to lay an egg". That he did not know. But Mikulic knew what a rotten egg was, and you could not cheat him. That was his quality. A minister does not have to be a great expert, but his basic virtue should be to know what is a rotten egg is. And he should have both the courage and willingness to rely on experts. Does that mean that bankruptcy should be declared? If is not possible any other way. The Bankruptcy Law has been adopted. Could not that be a solution? Yes, but the Bankruptcy Law itself is not very precise. It does not predict what is written in other world laws. They did not copy it correctly. What would you suggest as a solution? They have to organise roundtables. The new Company Law has been passed, as well as another nine laws. Now they have to organise expert meetings because this concerns multidisciplinary items. Various people should be heard in order for the problems to be observed from all sides and the best solution reached. They have appointed the commission for ratifying laws regarding economic societies, but those people selected were

Cabinet ministers make general decisions that do not help. I think that they are unaware of the danger because ignorance is the biggest quality of their administration. not experts in that field. That was a mistake which will be paid back in practice. At the request of DSS I wrote the proposal for the Privatisation Law in 1995. That envisaged some solutions that were completely different. According to that proposal, not a single dinar from the privatisation of companies could go into the budget. But, DSS is governing now and has not implemented such solutions. That is because they wanted to cover the hole in the budget artificially. And they do not care what will happen afterwards. They will say, while we were in power it was OK. And how was it OK? At what cost? Public capital was spent. Who will take the chestnuts out of the fire if, as you say, the state should be declared bankrupt and the country owes vast sums to foreign creditors? We will not be able to pay them back. They will have to write something off and something will be given or sold for nothing, just like the Smederevo Forgery was sold to U.S. Steel. Twenty years ago officials of U.S. Steel completed the reclamation of Smederevo Forgery with me. They knew what there were getting: a company which had failed, but did not have losses. What will be sold if everything which is worth something has already been sold? They will be able to take what is public capital. It remains a question as to whether they will want to do so because those 500 large companies that are awaiting privatisation demand a huge investment of capital in order to work again. Foreign investors can also get privileges by obtaining concessions, for instance.â&#x20AC;˘

CorD | June 2005

Jovan Rankovic DISASTER LOOMING Do you think that the privatisation process has been successful so far? The majority of privatised medium-sized and large companies which were sold to domestic investors were sold incorrectly, as they were purchased through credits. Those credits will take the companies which bought them into bankruptcy. They have to pay back those credits with interest. In order to manage that, those companies have to generate huge profits, and that will not be the case. Those sales were only good for the state, because the money gained through the sale of companies went into the budget and was spent. Companies privatised in such a way could do good business, but the companies which bought them got themselves into debt and will not be able to pay back the credit or pay interest. Then it will enter the zone of losses. For instance, Jugoremedija was sold for a price six times higher than the real value of that company. In competition with the Slovenes, the buyer paid six times more than was reasonable. Instead of 150million dinars, the state received 959million. But Jugoremedija is not worth that much. And now, in one year, the buyer has increased the assets by 800million dinars. I ask myself how that company will settle that and how the banks will solve that problem. That could only happen because the one concern within the Ministry for Privatisation was how to sell it for more. They did not care how the company would fare afterwards. Meanwhile, the money from the budget will be spent, and those who overpaid will end up with no money. And the situation will arise where the banks which credited them will be forced to dissolve them.

bulletin...bulletin...bulletin... EU membership by 2012

eputy Serbian Prime Minister, Miroljub Labus, said in May that it is realistic to expect Serbia to join the EU by 2012. During his visit to a promotional booth on Belgrade's Knez Mihajlova Street, set up by the Serbian EU Integration Office to mark Europe Day on 9th May, Labus insisted that the Integration Office is of utmost importance in the process of EU integration. EU Integration Office Secretary, Tanja Miscevic, said that EU integration is the only ticket to a modern Serbia, or state union, as well as the only right way to obtain guarantees for future foreign investment. Minister of Public Administration and Local

"Today, on Victory Day, descendants express deep gratitude to heroes and defenders of their homeland. We have left behind us the misery of the civil war and internal divisions, paying due tribute to all those who gave their lives to defeat fascism."•

Haradinaj Held

Self-Government, Zoran Loncar, has welcomed the fact that the Serbian Government has finally started towards EU integration. He expressed his hope that a stabilisation and association agreement will be signed by the end of the year. On the occasion of Europe Day, the European Commission's Delegation in Belgrade, the British Embassy, and the Friedrich Ebert Foundation, combined forces to place a "Eurostarbus" on Belgrade's Republic Square. They also organised a quiz for primary school pupils.•

he ICTY will not release former Kosovo PM Ramush Haradinaj on bail and, instead, he will remain incarcerated until the commencement of his trial for war crimes allegedly committed against Serbs and other non-Albanians in the spring of 1998, whilst he was a KLA commander. The Tribunal has decided that, regardless of his surrender and UNMiKs' guarantees, there is still not enough evidence to suggest that UNMiK will be capable of arresting Haradinaj and returning him to The Hague if necessary. The decision also states that it cannot be guaranteed that witnesses will be safe if Haradinaj is set free.•

Victory Day Marked

erbian Prime Minister Vojislav Kostunica said on 9th May that Serbia and its citizens can proudly and rightfully join the celebration of the day of victory over fascism, thanks to its World War Two warriors. In his official address to the nation, PM Kostunica said "I congratulate you, respected citizens of Serbia, on the 60th anniversary of the victory over fascism. 9th May is a special date in the history of the world and for Serbia's destiny. The people who fought to defend freedom celebrate this great day with pride. "Our country and its people demonstrated the firm will to defeat the fascist aggressor and defend the mother country, even at the cost of countless victims.

No political will, says anti-corruption chief

peaking in Novi Sad last month, Verica Barac, president of the Anti-Corruption Council, said that there is a lack of political will to fight corruption in Serbia; that none of the key pieces of legislation had been implemented and conditions for an independent judiciary and other institutions

had not been created. Speaking to press, she said that the basic conditions for an independent, competent and effective judiciary are nonexistent. She added that the executive authority still holds the administration of justice in complete dependence and the judiciary itself can't take the burden of independence and responsibility. Barac added that the judiciary doesn't have its own independent budget, nor the necessary resources or personnel to deal with major problems. According to the anti-corruption chief, Serbia "today would be essentially different if the government, within its authority, had investigated all statements of suspicion about the importation of power, coal and crude oil, the Mobtel contract, cases of money laundering, unpaid services and the sale of the business premises of the Institute for Payment Operations".•

Progress lacking in Kosovo

he Greek Foreign Ministry has announced that UN Secretary-General Kofi Annan's upcoming report on Kosovo

will be used to express concern that progress in Kosovo has not been made in a number of areas. According to a ministry representative, Annan will emphasise that fully meeting the standards defined by the UN and the International Contact Group for Kosovo is a precondition for the commencement of final status negotiations for the breakaway Serbian province. Annan, who will present his report on Friday, is expected to name a special UN envoy to deal with this issue and will also underline the need for the Kosovo administration to commence direct dialogue with officials in Belgrade. Annan will present his report on Friday, the same day that the head of Belgrade's Kosovo Co-ordination Centre, Nebojsa Covic, will present the Serbian Government's new united position on the province, which was devised in late May at a meeting of the Serbian Cabinet, with the addition of Serbian President Boris Tadic, SCG Foreign Minister Vuk Draskovic and Covic.•

CorD | June 2005

Legislature By D.Berkovic

RECEIVERSHIP:

WHO GAINS?

Last week the Serbian Parliament completed discussions regarding the Government's Proposal for the law regulating relations between the Republic of Serbia and banks in receivership on the basis of taking foreign credits, i.e. loans. This law will almost certainly be implemented in the next few weeks, since only the Radicals have announced that they will vote against it and MPs will come out in favour of the legislation upon completion of debates regarding around twodozen items on the agenda of the session which started on 17th March.

erbian Finance Minister Mladjan Dinkic is convinced that the adoption of this "technical" law will speed up both the drawn-out bankruptcy proceedings of those banks which have been closed down and the privatisations of public and state-owned companies which are indebted to those banks. According to the legislation, the state will assume full responsibility for all of the banks' obligations under bankruptcy and liquidation, for which the state has provided guarantees to foreign creditors. This process regards seven banks: Beogradska, Slavija, Beobanka, Investbanka and Jugobanka from Belgrade, Privredna Banka from Novi Sad and Borska Banka.

CorD | June 2005

Goran Andjelic, assistant to Minister Dinkic, confirmed that "the largest part of obligations to foreign creditors which the state took over on the basis of previously concluded agreements with those creditors is located in those banks. Now the state will take over the bankrupt banks' claims towards their debtors, their legal successors and business banks". Interestingly, the state does not lose anything because it accepted all the obligations of the bankrupt banks towards the Paris and London Clubs, the International Bank for Development and Reconstruction, the European Council's Bank for Development and some other creditors. Now the state will become the formal creditor for companies, as well the end-user of those credits; and will acquire the right to

Legislature write-off all or part of those debts. Those companies will then become more attractive to strategic partners and all resources collected through their privatisations will pour into the budget and be used to pay off the country's foreign debts. Moreover, according to Dinkic: "corporate banks, which in some cases were guarantors or users of foreign credits, will be liberated from their obligations towards the banks which are in receivership, thus new solutions will contribute to their faster privatisation". Andjelic noted: "One of the basic obstacles standing in the way of privatisation was precisely the high debts of numerous public and state-owned companies to banks in

New solutions will simplify and shorten the process of bankruptcy proceedings of those banks of which the NBS revoked operating licenses. Even though some banks were closed as early as 2002, the bankruptcy proceedings against them have not yet been completed. receivership. Through the adoption of this law the state will become their creditor. Those claims will be managed by the Agency for the Insurance of Deposits, Financial Rehabilitation, Bankruptcy and the Liquidation of Banks, which will have the main task of easing the restructuring and privatisation of those companies and preparing them for further successful operating. That is of crucial interest to the state, considering that those companies employ a large workforce and their services are of public interest". Andjelic went on to explain that the final debtors will continue to present the full amount of their debts in their business books, but this time towards the state and not towards those banks in receivership. Considering that the Paris Club has written off 51 (+15) per cent of debts to Serbia, and the London Club 62 per cent of all debts, a large number of businessmen think that the obligations of those companies towards banks in receivership, i.e. the state, should be decreased by the very same amount as soon as possible, because this concerns companies which are in trouble. However, Andjelic stressed that the state will assume debts to the London and Paris Clubs, as well as many other creditors too. "By taking over the debts belonging to banks in receivership all the balances of those banks will be cleared, both the debts and claims. That will firstly serve to establish a direct relationship between the companies which are the final debtors, and the state. And, as a result, their privatisations and restructuring will be made easier. Secondly, the bankrupts' estate, after the clearance of the balances of those banks facing bankruptcy, will be bigger and, therefore, the remaining creditors will be able to collect a larger part of their claims. As a result, the adoption of this law will not put the other creditors in a less favourable position. On the contrary, they can only benefit from this operation. If, for instance, the state writes-off part of the debts to the end-users of the credit, other creditors will have a greater chance of collecting their claims after the privatisation of those companies. In contrast, their privatisations would hardly be possible if the obligations of those compa-

NEW LAW ON PARLIAMENTARY PROCEEDINGS

Among 29 agenda items of the Serbian Parliament Session which started in midMarch, there are several Government proposals for laws of importance to the economy - regarding the announcing and recording of repossessed property (the first step towards denationalisation), tourism, protection of competition, the Government, state administration, and the strategy for energy development until 2015. Parliament will consider the proposal for issuing concessions for building, exploiting and maintaining three sections of the Horgos-Novi Sad - Beograd - Pozega and Nis - Dimitrovgrad motorways, and discuss the candidates for the president and managing board members of the Serbian Telecommunications Agency, nominated by the Government and the NBS Statute. nies towards the banks under bankruptcy proceedings remained", said Andjelic, explaining that the total amount of debt will remain unchanged, because only the creditor will be changed - instead of the banks in receivership, the creditor will become the state. Dinkic emphasised that the state will initially attempt to collect the debts from the final debtors through income from privatisation. The Government is certain that the new law will enable the state to receive more resources more quickly than it would be able to collect from the assets of the closed banks as a creditor. According to current regulations, the state would only be able to collect in the final phase of the bankruptcy proceedings, through the partition of the bankrupt's estate, "in a minimal and extremely uncertain amount, i.e. in the same percentage as all other creditors from the second payment line", said Dinkic. Furthermore, all income from bankruptcy proceedings would go into the banks, thus all creditors would equally participate in the division of that bankrupt entity's estate, while all obligations would be loaded solely onto the state. It is also significant that new solutions will simplify and shorten the process of bankruptcy proceedings for those banks of which the NBS revoked operating licenses. Even CorD | June 2005

Legislature though some banks were closed as early as 2002, the bankruptcy proceedings against them have not yet been completed. New solutions will enable the debts and claims to be recouped from the bank's balance. Therefore, the trustees in the bankruptcy will have less work to do and will be able to carry out the process much faster, explained Dinkic. The aforementioned banks were all closed because their obligations exceeded their assets and they, thus, were in "serious arrears". The combined debts of Beogradska, Beobanka, Investbanka and Jugobanka were estimated at several billion dollars. The crucial reason why their financial rehabilitation was abandoned was the estimation that such debts would be too expensive and there were no guarantees that such an attempt would result in the recovery of those banks. "The claims of the State will be managed by the Agency for the Insurance of Deposits, Financial Rehabilitation, Bankruptcy and the Liquidation of Banks, and the final debtor will have to sign the contract which

Andjelic: "One of the basic obstacles standing in the way of privatisation was precisely the high debts of numerous public and state-owned companies to banks in receivership…" will regulate their obligations towards the state no later than three months after implementation of the new law, whilst simultaneously transferring all insurance assets and other "secondary rights" to the state. That will allow the Bankruptcy Agency, in co-operation with the Privatisation Agency, to write off debts to companies which have the chance of being privatised", said Dinkic, emphasising that decisions regarding this matter will be made on a case-by-case basis. Meanwhile, draft legislation to govern the issuing of bonds on the basis of the agreement with the London Club was finalised by the Government on 24th March. Plans are afoot for Serbia to commence issuing bonds over a 20-year period, with a five-year grace period, in the next few months. These bonds would then successively mature, starting from 1st May 2010 until 1st November 2024. In mid 2004 an agreement was made with the London Club which wrote off 62 per cent of Serbia's debts - around $1.7billion. According to that agreement, London Club creditors will be able to transfer the remaining $1.08billion of old debt for new bonds, which will be issued as soon as the Serbian Parliament adopts the Government's proposal. Minister Dinkic stated that all connected persons, which in the previous period gained those Serbian debts by "illegal (insider) trading" will be excluded from the exchange of the old claims into new Serbian bonds. Dinkic added that he could not reveal the names of those connected persons at this moment. The list of those names has already been compiled by the NBS in accordance with the London Club, claims Dinkic. The agreement with the London Club was made in the middle of last year and at that time it was announced that Serbia will issue new bonds before the end of 2004. However, that has yet to happen.•

CorD | June 2005

Superintendent Charles Taylor Addresses the Institute of International Bankers in New York

YUGO CASE “The cases of Serbia’s bankrupt banks were also considered in New York. It was taken as example of the problems for banking systems in New York. “In the case of a failure of a foreign bank with a branch or agency here in the U.S., the pledged assets provide a guaranteed source of ready cash to protect the interests of the U.S. liability holders and to begin the liquidation process. “We continue to consider it an important safety requirement and we feel that a one per cent pledge is not particularly burdensome. There is a misconception that we have opposed the statutory change to allow the Comptroller this discretion. “We are not opposed to legislation granting the Comptroller the power to set the CED, but we do feel that it is prudent to establish a "state floor" to make sure that some asset pledge is maintained for the reasons I just described. “Jerry also indicated in his speech last week that the OCC would accept this. So there is no disagreement and we would be supportive of any legislation to give the Comptroller discretion to set CED at any amount, provided it cannot be lower than that required by the respective state licensing authority, which would fulfill the state floor requirement. “Now, what happens when the CED is rendered irrelevant by the courts, as it seems to have been in the Yugo Bank case? “On the face of it, this may not seem to be of paramount importance to the foreign banking community, but believe me, it is critical. I am sure you are familiar with this case - Back in January 2002 we took possession of the assets of two Yugoslavian agencies that had been operating in New York until 1993, when their doors were locked by OFAC. “We acted because the parent banks were closed and placed into receivership in Serbia by the Bank Reconstruction Agency in that country. “Normally, when we close a branch or agency (and I use the term "normally" here to describe an event that takes place on the average of once a decade) we take possession of the assets and begin to conduct a liquidation of the office with the goal of making all the creditors of the NY office whole. “Unfortunately, in this case a federal judge has pulled the plug on creditors of these NY agencies. “After we took possession, the Bank Reconstruction Agency, which is conducting the bankruptcy proceedings in Serbia, filed a number of lawsuits to compel us to turn over the seized assets. “After much legal wrangling, the B.R.A. filed an action in U.S. Bankruptcy Court to open an ancillary proceeding. The court declined to exercise its jurisdiction, noting that the department "is the very type of regulatory agency, and its liquidation scheme the very type of scheme," to which the Federal Bankruptcy Code defers. “The B.R.A. appealed to federal district court, which overruled the bankruptcy court. “At issue is whether foreign banks should be excluded from the general provision of the bankruptcy law, since an alternative provision is made for their liquidation under various state and federal regulatory laws. “In the past, our ability to conduct such a liquidation has been upheld by the courts, but because in this instance the court seems to be looking at one section of the code in isolation, our ability to proceed with the liquidation is in question.”•

RETAIL THERAPY

EXECUTIVE PROCUREMENT T

his month we will be concentrating on cigars and cognac, both considered as the very definition of style. Indeed, cognac has been the drink of choice for political leaders and the 'Jet Set' ever since Napoleon himself declared it his favourite spirit; while cigars are the one luxury item associated with success, style and 'joie de vivre' the world over. The precise origin of the cigar is not known, though it is widely accepted that the first to enjoy tobacco in such a form were the natives of the West Indies. Christopher Columbus himself was the first European to witness what he described as "the drinking of smoke" on his first expedition to the Caribbean in 1492. He took the peculiar plant matter back to the continent with him and the European fascination with tobacco quickly followed.

By Bob Holt

People with style and class tend to be drawn to products that are a cut above the rest, be that fine wines, quality cigars or tailor-made attire. And, knowing that you, our readers, certainly belong to this group of connoisseurs of class, we at CorD have decided to provide you with the low-down on the products considered to be the veritable height of their respective classes. 60

CorD | June 2005

Spanish conquistadors were the first Europeans to indulge in the art of cigar smoking, believing the tobacco to contain medicinal qualities. However, church leaders soon condemned the act, saying that tobacco contained the powers of the devil. They punished those caught indulging and tobacco smoking became a clandestine activity for those who dared to defy the power of the Catholic Church. It wasn't until the beginning of the 18th century that the first industrial manufacturer of cigars began operating in Seville, and it was only in the early 20th century that cigar smoking became popular in Europe and North America. Despite cigar-smoking becoming a popular pastime of the wealthy and well-to-do the world over, cigar production has nonetheless remained almost exclusively in the region of its birth, with Cuba and Nicaragua home to the most renowned cigar manufacturers. Nowadays cigars come in a variety of shapes and sizes. There are common names that ensure that there is a degree of universality in the industry. Descriptive dimensions are approximate, but the guidelines state that short is less than 5.5 inches (14cm); long is greater than 6.5 inches (16.5cm); thin is less than 42 ring size. Thick is greater than 47 ring size. Manufacturers also add common adjectives to the shape name, such as Gorda, grande, grand, large, extra, or double, which mean that they are adding to the size, while petite, slim, finos, or demi imply some sort of reduction in size. There are also common cigar shapes with common terms. The most popular are Belvedere, Ascot, Demitasse: about 3 to 5 inches (7.6 to 12.7cm) long with a ring gauge between 30 and 36 and a smoking time of 15-20 minutes. Petite Corona: about 4.5 to

RETAIL THERAPY 5 inches (11.4 to 12.7cm) long, a ring gauge between 40 and 42 and a smoking time of 25 minutes. Robusto or Rothschild: about 4.5 inches (11.4cm) in length and a ring gauge of about 48. They have a smoking time of 2540 minutes. Corona: about 5.5 inches (14cm) long, a ring gauge of 42 and a smoking time 30-45 minutes. Corona Extra or Corona Royale: about 5.75 inches (14.6cm) long, with a ring gauge of 44 and a smoking time of 40 minutes. Panatela: about 6 to 6.5 inches (15.2 to 16.5cm) long with a ring gauge between 34 and 39. Smoking time 3545 minutes. Lonsdale: about 6 inches (15.2cm) long and a ring gauge of about 43. Smoking time 45-50 minutes. Corona Grandes: about 6 to 6.5 inches (15.2 to 16.5cm) long and a ring gauge between 44 and 46. Smoking time 45 minutes. Churchill: about 7 inches (17.8cm) long with a ring gauge of 47 to 48. Smoking time 45-60 minutes. Double Corona, Long Panatela: about 7.5 to 8 inches (19.1 to 20.3cm) long and a ring gauge of 49 to 52. Smoking time 45-60 minutes. Gigante, Presidente, or Immensa: about 8.5 inches (21.6cm) long and a ring gauge of 52. These cigars have a smoking time of 60-90 minutes. Uncommon cigar shapes include the Belicoso: about 6 inches (15.2cm) long and a ring gauge of 48 with a pointed cone shaped head; Petite Belicoso: about 5 inches (12.7cm) long and a ring gauge of 40 with a pointed cone shaped head; Pyramid: about 6 to 7 inches (15.2 to 17.8cm) long, tapering down from a ring

gauge of 52 at the foot to 42 at the head, with a pointed, cone shaped head; Torpedo: varies in length and ring gauge. Has a pointed cone shaped head, bulge in the body, and a relatively flat foot; Culebra: three cigars each 5 to 6 inches (12.7cm to 15.2cm) long with a ring gauge of 34 that are intertwined. The cigars have to be unwound to be smoked. In order to avoid breakage, cigars must be very well humidified. As with most pleasurable activities, judgements of class are ultimately subjective; brands come and go and tastes alter. Nevertheless, rankings are a good guide to knowing what to try and what to avoid. Here follows the top ten cigars in the world at the moment, as ranked by the public via the internet. The cigars are rated from one to ten and prices may vary: • 10 - Forbidden X: produced by Opus X in the Dominican Republic, the panatelashaped Forbidden X has a rating of 9.12 and a recommended retail price of €22.50; • 9 - Imperial (M): manufactured by Nicaragua's Padron 1964 Anniversary, the Imperial (M) has a Toro shape, is rated at 9.13 and retails at €10; • 8 - No.1 (Maduro): also produced in Nicaragua, by Padron Serie 1926, the No.1 (Maduro) is Double Corona in shape, has a rating of 9.19 and a price of €18.50; • 7 - Magnum 46: manufactured in Cuba by H. Upmann, the Grand Corona-shaped Magnum 46 also has a rating of 9.19 and is

RETAIL THERAPY the cheapest ranked cigar, retailing at just €7.50 per cigar; • 6 - Reserva Shark No.77: this Perfecto-shaped cigar is produced in the Dominican Republic by Arturo Fuente Anejo. It was given a rating of 9.23 and retails at €13; • 5 - No.2 (Maduro): the second cigar made by Nicaragua's Padron Serie 1926 to make the top ten, the No.2 (Maduro) has a Belicoso shape and a rating of 9.24. It is slightly more expensive than the No.1, retailing at €19; • 4 - No.6: yet another cigar produced by the team at Padron Serie 1926. The No.6 is Robusto in shape and, despite costing much less than the other Padron Serie 1926 cigars to make the top ten - just €10 - it has a higher rating of 9.27; • 3 - Exclusivo (M): again made in Nicaragua, this time by Padron 1964 Anniversary, the Robusto-shaped Exclusivo (M) has a rating of 9.38 and retails at €9.50; • 2 - Robusto Extra: produced in Cuba by manufacturers Trinidad (Cuba), the Robusto Extra has a Toro shape and a rating of 9.5. It retails at around €15; • 1 - Coronas: this legendary cigar is manufactured in Cuba, of course, by Bolivar. The Corona-shaped Coronas has an almost perfect rating of 9.67 and the highest retail price of any of our featured cigars, selling for €23. If you would like to try one of these cigars, or sample some other classic smokes that didn't make the list, we recommend central Belgrade's specialist tobacconists at the Cigar Shop & Bar, situated at 11 Djure Jaksica Street. When it comes to cognac, one's mind immediately turns to the so-called 'Big Four' manufacturers: Courvoisier, Hennessy, Martel and Remy Martin. It is not by chance that these four are the most internationally acclaimed distillers of cognac. Rather,

Spanish conquistadors were the first Europeans to indulge in the art of cigar smoking, believing the tobacco to contain medicinal qualities. However, church leaders soon condemned the act, saying that tobacco contained the powers of the devil. they are the oldest, finest and most professional cognac producers the world has ever seen. Cognac is a wood-aged distillate of wine produced solely from the grapes of the Charente region of Western France. Despite being as French as Napoleon, it was actually the Dutch who invited cognac as we know it when 17th century merchants from Holland brought French wine home for distillation and quickly discovered that wine from the Cognac region produced a smoother spirit than wine from anywhere else. Eventually, the Cognaçais began making wine expressly for distillation. The Big Four all produce a wide variety of fine cognacs, ranging in age, quality and price. However, each of them has its own 'flagship' cognac that is highly collectable and equally delectable. Courvoisier's top cognac is the L'Esprit de Courvoisier, which retails at around €4,000 for a 70cl bottle. The L'Esprit is a very rare, old cognac containing many of the finest vintages in history, some almost 200-years-old. According to the manufacturers, the age and vintages of L'Esprit de Courvoisier make it perhaps the ultimate cognac ever created. Hennessy's top cognac is the €1,400-priced Richard Hennessy, blended in homage to the company's founder and made up of more than 100 of the most exceptional eaux-de-vie, aged up to 200 years. According to the manufacturers, each one has been selected for its unique qualities. The finesse of the finished cognac is a testament to years spent slowly maturing in oak barrels. Martell's top cognac is the Martell L'Art, priced at around €2,000. The L'Art de Martell was launched in 1997 to commem-

CorD | June 2005

orate the retrocession of Hong Kong to China and is a limited edition. The decanter was designed by Daum, the French glassmaker, and there are only 1997 carafes in the world. According to Martell, it is an exceptional and unique creation, combining cognac and contemporary art. Rémy Martin's top cognac is their Louis XIII brand, which retails at €999.95 for a 70cl decanter. The company describe the spirit as the highest quality cognac on the market today. Louis XIII has been carefully tended by three generations of Rémy Martin cellar masters. The result is a magical combination of savoir-faire, art and patience. It is nigh on impossible to pit these four impeccable cognacs against one another and so we will not attempt to do so. Suffice to say that they are all perched at the very peak of the spirit world. The various cognacs of Courvoisier, Hennessy, Martel and Remy Martin are available throughout Belgrade. However, CorD recommends the recently established Wonderland Finest Wines, Cigars & Chocolates, located in central Belgrade at 25 St. Sava Street.•

CorD/AutoKomerc Go-Carting League

The CorD & Autokomerc Carting Centre's International Go-Carting League got off to a flying start on Sunday 29th May with the first invitational day of racing.

Competitors soak up the race day atmosphere

Racing gets underway

Victors celebrate on the winnersâ&#x20AC;&#x2122; podium

nterest in the go-carting league has proved exceptionally high and, in addition to CorD's own team of speedsters, teams representing Coca-Cola HBC, Alpha Bank, the Australian Embassy in Belgrade, KPMG, the British Council, Unimar-NBA, Tharton Trade, Colliers International, Informatika a.d. GfK, as well as no fewer than two teams from the Canadian Embassy in Belgrade and three teams from the U.S. Embassy, took to the professional carting track. The highly professional team at the Autokomerc Centre ensured that race day went off without a hitch and all the competitors thoroughly enjoyed the racing on a sweltering May afternoon in the city. After 12 rounds of racing, final victory was secured by Nikola Lazarevic of the Informatika teamâ&#x20AC;˘

FLYING START Race 1 Stanislav Bogunovic (Canada 2) Zoran Sarancic (USA 1) Patrick Harris (Alpha Bank) Ivan Milosevic (Unimar NBA) Branislav Nikolic (Tharton Trade) Louis Cote (Canada 1) Winner: Louis Cote (Canada 1) Race 2 Dusan Ingarac (GfK) Mario Rinaudo (Australia) Rajko Mitic (USA) Voja Dankovic (Canada 2) Aleksandar Borisavljevic (GB) Boris Bulatovic (KPMG) Winner: Voja Dankovic (Canada 2) Race 3 Marko Dulovic (Australia) Kevin Crisp (USA 1) Laurent Graziani (Tharton Trade) Dejan Cvetkovic (Alpha Bank) Danijel Bogunovic (Canada 1) Darko Calasan (Coca-Cola HBC) Ivan Varagic (Colliers) Winner: Darko Calasan (Coca-Cola) Race 4 John Casperson (Australia) Rod Moor (USA 2) Predrag Kukobat (GB) Davaid Winter (Canada 1) Marko Maksimovic (Unimar NBA) James Young (USA 2) Winner: Marko Maksimovic (Unimar NBA) Race 5 Dejan Cvetkovic (Alpha Bank) Vladimir Zaric (GB) Miroslav Krasnic (USA 2) Goran Basalic (Canada 2) Alkivyadis Roulis (Unimar NBA) Nunzio Rinaudo (Australia) Winner: Alkis Roulis (Unimar NBA) Race 6 Nikola Dulovic (Australia) Aleksandar Mirovic (KPMG) Jovana Cirkovic (GfK) Vladimir Culafic (Tharton Trade) Hassan Ahmed (USA 2) Momir Petrovic (Canada 2) Winner: Momir Petrovic (Canada 2) Race 7 Zoran Milicevic (USA 1) Mark Kunac (Colliers) Marko Milicevic (Tharton Trade) Mario Rinaudo (Australia) Milos Ilancic (Alpha Bank) Dejan Stojanovic (Canada 1) Winner: Mario Rinaudo (Australia) Race 8 Sinisa Cado (USA 3) Aleksandar Mirovic (KPMG) Nikola Lazarevic (Informatika) Milos Maksimovic (CorD0 Winner: Nikola Lazarevic (Informatika) Race 9 Aleksandar Rajcic (Coca-Cola HBC) Predrag Mijailovic (GfK) Vlasiadis Panajotis (Alpha Bank) Marko Mirovic (Informatika) Spomenka Bojanic (CorD) Winner: Marko Mirovic (Informatika)

Race 10 Dragan Vezmar (USA 1) Ivana Petkovic (CorD) Mile Ljepojevic (Coca-Cola HBC) Nenad Lezovic (Informatika) Stevan Vujosevic (KPMG) Brankica Pupar (Colliers) Winner: Stevan Vujosevic (KPMG) Race 11 Goran Tintor (GfK) Adam Ahmed (USA 3) Ognjen Siljanovic (Informatika) Nedeljka Maksimovic (Unimar NBA) Aleksandar Andjic (CorD) Natasa Ciric (GB) Ferenc Molnar (GfK) Winner: Ognjen Siljanovic (Informatika) Race 12 Nenad Suzic (Colliers) Spomenka Bojanic (CorD) Voja Dankovic (Canada 1) Mike Papp (USA 2) Nenad Petrovic (KPMG) Aleksandar Borisavljevic (GB) Vladimir Zaric (GB) Ivan Ciric (GB) Winner: Vladimir Zaric (GB) SEMI-FINALS Race1 Ognjen Siljanovic (Informatika) Momir Petrovic (Canada 2) Louis Cote (Canada1) Zoran Sarancic (USA 1) Alkivyadis Roulis (Unimar NBA) Darko Calasan (Coca-Cola HBC) Marko Maksimovic (Unimar NBA) Winner: Darko Calasan (Coca-Cola) Qualifier: Marko Maksimovic (Unimar NBA) Race 2 Mario Rinaudo (Australia) Nikola Lazarevic (Informatika) Marko Mirovic (Informatika) Stevan Vujosevic (KPMG) Voja Dankovic (Canada 2) Vladimir Zaric (GB) Winner: Marko Mirovic (Informatika) Qualifier Nikola Lazarevic (Informatika)

FINAL Darko Calasan (Coca-Cola HBC) Marko Maksimovic (Unimar NBA) Marko Mirovic (Informatika) Nikola Lazarevic (Informatika)

Podium placers 1st

Nikola Lazarevic (Informatika)

2nd

Marko Maksimovic (Unimar NBA)

3rd

Darko Calasan (Coca-Cola HBC)

CorD | June 2005

Golf Tournament In conjunction with CorD Magazine and the Belgrade Golf Club, Audi is proud to present the invitational Audi Diplomat Golf Tournament and Corporate Golf Day, to be held on 2nd July, 2005.

AUDI'S GOLFING DIPLOMACY

he tournament, which will be held at the Ada Ciganlija Golf Course, will provide an opportunity for leading company managers, resident diplomats, and other representatives of the international community who are resident in Serbia, to pit their golfing wits against one another and display their golfing prowess to the many who will be in attendance. The day will also include a demonstration of golfing strokes by Belgrade Golf Club's resident professionals and a mini school of golf, before culminating with a festive reception at which the tournament winners will be announced and presented with their prizes. Golf is one of the oldest sports being played in the world today, originating in Scotland around 500 years ago. Nowadays golf courses are used the world over by businessmen seeking respite from the hubbub of the city and hoping to do business in a beautiful, natural environment. Indeed,

Audi A6 Avant

many business deals are made on the golf course and some 67 million golfers currently enjoy the sport on over 100,000 golf courses worldwide. Audi chose to support this tournament for the simple reason that golf is one of the most exciting, challenging and popular sports in the world and provides a great business environment. Moreover, through this tournament Audi is helping to promote awareness of this truly global sport in Serbia & Montenegro. The one-day invitational Audi Diplomat Golf Tournament, Belgrade, is just one example of Audi's commitment to this sport. The company has been a faithful supporter of golfing tournaments worldwide for over ten years. Since the creation of the Audi Quattro Cup, more than 500 tournaments have been held in more than 28 countries with over 75,000 competitors. Audi will invite distinguished individuals to join the growing number of golfers around the world by taking part in this unique, exclusive tournament.â&#x20AC;˘

TRAVEL & TOURISM

By Jelica Putnikovic

History-spiced

Holidaymakers generally travel through Serbia by road, while rivers are frequented by tourist ships. However, the recent reinstatement of the railways means that funseekers and holidaymakers can now embark upon interesting railway journeys traversing Serbia's attractive and diverse countryside.

erbian Railways has brought several trains from a bygone era Zlatibor is not termed 'the mountain of miracles' only because out of their retirement home at the National Railway of its external natural beauty, but also because of the treasures it Museum. Thus, between the months of April and October, protects within. Geological studies have yielded remarkable one can now travel by 'Romance' train between the towns of results. Geologists insist that 250 million years ago Zlatibor would Sremska Karlovca, Vrsac, Palic, Vrnjacka Banja, Smederevo, have resembled a tropical haven, such as today's Bahamas. What Ljubicevo and others. are now lakes were then lagoons, intersected by sandbars. Zlatibor It is also possible to privately hire the 'Romance' locomotive sits atop a vast lake of hot water, which spreads as far as Tara and for larger groups and devise your own route across the country. Zlatar and could be utilised to create thermal spas. Perhaps the most famous train in Yugoslavia, Tito's Blue Zlatibor is the sunniest mountain in Serbia, with 104 days of Train, has also been given a new lease of life. This train was the clear skies during a year. It has more sunny days than the Swiss personal transport choice of life-long President of SFRY, Josip Davos and the average mid-summer temperature is 18 degrees Broz 'Tito'. The famous leader travelled throughout the republics Centigrade. on his Blue Train, often hosting world statesmen and nobility. A visit to Sirogojno is obligatory for anyone taking a trip to The authentic, fully-restored Blue Train is adorned with the Zlatibor. In the Native Construction Museum, under Staro selo's dĂŠcor selected by Tito himself, and dining passengers can select (Old village) open sky, a typical 19th century farmstead has been fare from the train's original menu, whilst enjoying the sights and presented, with all authentic elements. Special attention here has sounds of the country. At the junction on three borders - Zlatibor, been dedicated to maintenance and revival of traditional crafts. In Tara & Zlatar, the train chugs along narrow-gauge tracks dating the workshops of the Museum, copies of museum exhibits are back to the 1900s, crossing the fabled Sargan-Eight route. Close by manufactured and the skills of potters, coopers, masons, and is the idyllic Mokra gora (Damp Mount) with its newly built ethnic weavers are presented. village, at which nature lovers can enjoy the unspoilt beauty and Medical research has shown that Zlatibor's environment is benthe hospitality of the residents, who will offer passers-by Zlatibor eficial for maintaining health and fitness, as well as for curing variprosciutto, sheep's cheese or other local specialities. Visitors ous lung diseases, anaemia, neurasthenia, minor heart and blood should also take a trip to the nearby healing-water spring which, vessel disorders, and especially disorders of the thyroid gland. At according to local legend, has the power to cure many ailments. Zlatibor's Cigota Institute one can try popular dietary programmes On Zlatibor, at Negbine, there is a unique pine tree with yel- under the vigilant watch of a physician and other specialists. low needles, which shines in the sun like gold leaf. Of the many Re-boarding the Romance Train, one can travel onwards to visitors to Zlatibor, it is, unfortunately, only the few curious wanderers who make it as far as Medical research has shown that Zlatibor's environNegbine. This is because the interest of most of ment is beneficial for maintaining health and fitness, the mountain's tourists ends with the cafes, boutiques and shops of the main resort. Mores as well as for curing various lung diseases, anaemia, the pity, as the 1,000 metre-high Zlatibor's mild neurasthenia, minor heart and blood vessel disorsloping pastures, rugged peaks and steep cliffs ders, and especially for disorders of the thyroid gland. into narrow gorges are a joy to behold. Zlatibor also boasts the magnificent Crni Rzav and Tornik canyon, with Vrnjacka Banja spa, once an equal contender to the best European clear-day views stretching as far as the snowy climbs of Mount spas. The old glow slowly returns to Vrnjacka, and a new spa offer Durmitor and even Avala. This is one of the reason it's said that, is now available by way of the newly-opened 'Fons Romanus' during clear summer nights, the stars above Zlatibor are closer to Wellness Centre, or the 'Mercury' Rehabilitation Centre. Together man than anywhere else. with relaxation in the thermo-mineral water swimming pool (temClose to the village of Rozanstvo, beside the trout-rich River peratures from 27 to 32 degrees Centigrade), Jacuzzi bath, pearl Pristavica, is the much lauded Vapa spa. After recuperating at the bath or aroma therapy, visitors are also invited to utilise the servicspa, one can hike across to the right bank of Pristavica gorge and es of the classic Finnish sauna and masseurs. explore the Stopica cave, which is around two kilometres and As well as having fun in the pool cafĂŠ, one can spend a good reaches 50 metres in height at points. The cave also contains the part of the day here. However, visitors should certainly also take Ponor stream abyss, which forms an eight-metre waterfall at the time to discover the other treasures of this, the most popular entrance to the cave. Serbian spa. In Vrnjci an Olympic standard swimming pool has

CorD | June 2005

Holiday

oxen to the quay in the village of Radujevac, near Negotin. Though the wine history of Rajac has been forgotten, life is now slowly returning to them. Today, some sixty remaining wineries and breweries remind us of the olden, golden days. Visitors can sample and purchase wine prepared and cared for in a traditional way. The Shrine of Saint Trifun, patron saint of vineyards, helps the villagers, vineyard owners and wine producers protect the wines and entertain the wine-loving guests who are again flocking to the area. This February the first competition of winegrowers was organised under the guidance of the Association 'Prozor' (Window), which is a short expression of "Pivnice Rajca Odbor Za Obnovu, zaĹĄtitu i Revitalizaciju" (Rajac Breweries' Board for Renewal, Protection and Revitalization), which gathers together lovers of old values and wine tradition. It is noteworthy that 'Prozor' members include renowned professors, scientists, engi-

been opened and there are also a large number of covered swimming pools, football pitches and tennis courts. Vrnjacka Banja boasts a picturesque landscaped park, convenient for walking; and in the vicinity is Mount Goc, suitable for hunting trips and nature excursions. Also near to the spa are numerous cultural monuments, such as the monastery of Studenica, Zica, Gradac, Djudevi Stupovi, Sopocani, Ljubostinja, Kalenic, as well as fortifications of Maglic, Ras, Brvenik, which should all be visited. Mineral waters from Vrnjacka spa were used in Ancient times. During water tapping of warm wells (1924 - 1925) Geologists insist that 250 million years ago Zlatibor would around 500 Roman coins were found have resembled a tropical haven, such as today's Bahamas. at this spot, some of them even predating the time of Christ. The interest of doctors in Vrnjci minerneers, physicians and artists, and not one of the members origial waters dates from the mid 19th century. Vrnjacka spa's climate nates from this region. is moderately continental with an average annual temperature of Finally, more attractive destinations for tourists visiting the 10.6oC and average air humidity of 73.7%. Thanks to Vrnjacka's area include the excavations of ancient Roman city, Felix location - surrounded by high ground - the spa is protected from Romuliana, the Sarengrad archaeological site, Gamzigrad spa; strong winds: around 170 days a year are without a breath of Homolje villages, with its twisted log cabins, cottages, wattle and wind. For those to whom greenery, clean air and recreation are daub houses and some new, big houses. Regardless of the new not sufficient for a holiday, Vrnjacka spa boasts numerous events buildings, old native customs have been preserved in Homolje. All and cultural programmes. Adventurous tourists can cool down on told, there are ample reasons for holidaymakers to take time out to hot summer days by taking to the rapid waters and enjoying visit this part of Serbia this summer.â&#x20AC;˘ white-water rafting on the River Lim. The traditional "cheerful descent" gathers thousands of participants from the country and abroad every year. Moreover, sporting societies and tourist organisations arrange extraordinary "cruising" on the river, with breaks at sandbanks for resting or fishing. Another unorthodox experience for tourists in Serbia is a visit to the famous Rajac breweries, while Negotin and Krajina vineyards are famous for their high quality wines. Such specially constructed facilities exist nowhere else in the Balkans and, outside the village close to the vineyard in Negotinska krajina (border area), the sole industry is grape production and wine storage. Rajac has a complex of over 300 beer brewing facilities, which were constructed between the mid 18th century and the 1930s. These breweries are constructed from of trimmed sandstone, because new materials would "disturb the wine". Industrious winegrowers from the left bank of Timok have constructed their wine cellars two metres under ground, in order to have minimum variations of temperature during the year. They are decorated with shallow plaster and grouped as a larger rural whole. Similar ones have been preserved in the villages of Rogljevo and Smedovac. The international repute of the wines of the region was established as early as 1864 when Negotin wines first reached France and Switzerland. And in 1907 Negotin wines won medals at the London Exhibition. When phylloxera devastated the vineyards of the "land of wine", the French began a quest in order to find "their wines". Among the European vineyards, their choice was Rajac and nearby Rogljevo wineries. Legend has it that the French used to value "Game" and other wines so much that for fifty litres they gave one golden coin. They transported wine with a team of

Vrnjacka Banjaâ&#x20AC;&#x2122;s Merkur Hotel

Faces & Places Performers at a Traditional Indonesian Dance event, which was held in Belgrade's Cultural Art Centre on 10th May.

Israeli Ambassador to SCG, H.E. Jaffa BenAri, welcomes Ruzica Djindjic to the reception marking the 57th Independence Day of the State of Israel, which was held in Belgrade City Hall on 12th May.

Members and guests of the American Chamber of Commerce in SCG, pictured at an AmCham working lunch held in the Hotel Hyatt's Crystal Ballroom on 18th May.

Military officials gather at the 18th April reception at Dedinja's Villa Jelena marking Iranian Army Day. The event was attended members of the diplomatic community, military officials and other senior representatives of the domestic political scene.

Italian Ambassador to SCG, H.E. Antonio Zanardi Landi, discusses ecology with Aleksandar Popovic, Serbian Minister for Science and Environmental Protection, at a 9th May event held in Belgrade's Italian Embassy to mark the commencement of a project for the ecological regeneration of Pancevo.

Faces & Places Canadian Ambassador to SCG, H.E. Donald McLennan, talking to Polish-Canadian artist, Ela Kinowska, at the opening of the exhibition of her photographic project, 'CANADIANA', in Belgrade's USUFA Gallery on 10th May.

A scene from Earth Day on 22nd April, which saw the Embassies of the U.S., Poland, Canada, Croatia, Germany and Romania combine forces with representatives of the SCG Foreign Ministry to respect the 35th Earth Day by planting flowers and shrubs in front of each diplomatic mission on Kneza Milosa Street. British expatriates gather at Belgrade's British Ambassadorial Residence to await the results of the UK General Elections on 5th May.

Russian Ambassador to SCG, H.E. Alexander Alekseiev Nikolaevich, welcomes SCG Defence Minister, Prvoslav Davinic, to the 5th May reception marking Victory Day in Belgrade's Russian Embassy

SCG Foreign Minister, Prvoslav Davinic, is welcomed to the Norwegian Embassy's Constitution Day celebrations on 17th May by Norwegian Ambassador to SCG, H.E. Hans Ola Urstad.

Faces & Places Serbian President Boris Tadic pictured at Belgrade's Polaganja Venac during the 9th May commemoration of Victory in Europe Day.

Josep M. Lloveras, Head of the European Commission's Delegation in SCG, greets Serbian President Boris Tadic at the 9th May reception held in the Belgrade City Hall to mark Europe Day.

Serbian Finance Minister, Mladjan Dinkic, Economy Minister, Predrag Bubalo, and Serbian National Bank Govenor, Radovan Jelasic, pictured meeting foreign ambassadors to SCG. The Serbian officials hosted the diplomatic collective in order to present the country's economic development policy plan for 2005, as well as results of the Serbian Government's negotiations with the IMF.

Deputy Serbian PM, Miroljub Labus, is greeted by Royal Netherlands Ambassador, H.E. Barend van der Heijden, at the reception marking the Netherlands' Queen's day and the 25th anniversary of Queen Beatrix's accession, which was held in Belgrade City Hall on 26th April.

Attendees check out the new Serbian language website of the Islamic Republic New Agency (IRNA) at a 6th May reception marking the official launch of the site.

Jani Momberg, Ambassador of the Republic of South Africa, (right) welcomes guests to the 12th May reception held in Belgrade's Hyatt Regency Hotel to mark South Africa's National holidays.

Faces & Places Antoine Durrleman, Director of the International School of Administration, pictured in Belgrade's French Embassy on 16th May awarding a certificate of achievement to a successful civil practitioner. A number of practitioners were awarded for professional achievement by the school.

Serbian National Bank Governor, Radovan Jelasic, in discussion with H.E. Hugues Pernet, Ambassador of France to SCG, at May's EBRD Annual conference in Belgrade's Sava Centre.

CorD Editor, Dragan Bisenic, meets Greek Deputy Foreign Minister, Evripidis Stilianidis, at the Hyatt Hotel during Mr. Stilianidis' official visit to Belgrade on 9th May. Whilst in Belgrade, the Greek senior politician met SCG Foreign Minister Vuk Draskovic, SCG Defence Minister Prvoslav Davinic, SCG International Economic Affairs Minister Predrag Ivanovic, Serbian Economy Minister Predrag Bubalo and Gordana Lazarevic, National Co-ordinator of the Greek Plan for the Economic Revival of the Balkans.

One of Leonardo Da Vinciâ&#x20AC;&#x2122;s creations, displayed in Belgradeâ&#x20AC;&#x2122;s Italian Embassy at a 22nd May event organised by Banca Intesa and the Italian Embassy in SCG.

Israeli Ambassador, H.E. Jaffa Ben-Ari (second from right), and members of the Jewish community mark Remembrance Day on 11th May in the grounds of the Israeli Embassy.

Culture Cervantes Institute

By Marija Krickovic

MASTERS OF GRAPHICS

Through two exceptional exhibitions, the Cervantes Institute has introduced the Belgrade public to some of the most prominent names in graphics arts. During February, March and April, visitors to the Institute's gallery had a chance to see and enjoy the masterpieces of Francisco de Goya, as well as the rich collection from Barcelona's artistic atelier Barbara, which boasts the magnificent works of Salvador Dali, Richard Hamilton, Victor Vasarely, Juan Miro, et al.

ccording to Art History, painting has long been considered to be a greater, more superior art form than graphics. Thanks to his courageous, innovative techniques, expressed through his paintings, satiric copperplate engravings and belief that the artist's vision is more important than tradition, Francisco de Goya was considered by many to be one of the first modern painters. This great artist actualised graphics as being an equally essential and truly specific artistic medium. The travelling exhibition celebrating the 50th anniversary of artistic atelier Barbara included a collection of graphic art assembled by curator Tristan Barbara. The collection included the works of the most significant artists who passed through the graphic atelier of Tristan's father - famous painter and graphic artist Joan Barbara. Prior to its arrival in Belgrade, the roaming exhibition visited such cities as Lisbon, Milan, Rome, Istanbul, Athens and Thessalonica. Joan Barbara is renowned as a super-individualistic, extremely professional artist. Based in Catalonia, he is a member of Spain's Catalonian Royal Academy of Arts and has contributed greatly to the promotion of graphic art, receiving many prestigious awards throughout his career. Barbara set up his workshop in 1950. Originally a private studio, it later became a place of gathering for a multitude of professional artists wishing to perform various technical experiments and untested graphical projects. Barbara's significance grew out of his willingness to print the graphic works of such artists as Klee, Picasso, Miro and others. However, his greatness was recognised in the fact that he was a superior artist, in terms of imaginative powers and skilled techniques, to many whose works he displayed in his workshop. Friendships and acquaintances with the best artists of his time

CorD | June 2005

allowed Barbara to create a philosophy of studies which formed the basis of his work. The 50th anniversary exhibition includes a comprehensive collection of Spain's avant-garde renaissance, which began in the mid-20th century and continues today. Art and expertise are combined to form the legacy of Joan Barbara and create an equilibrium between intensive depth of artistic sensation and the formal perfection of the techniques he utilised. Francisco de Goya was born 30th March, 1746. His acclaimed paintings, drawings and copperplate engravings portrayed contemporary historic events and tremendously influenced artists of the 19th and 20th centuries. Goya's tempestuous life took him away from his modest artisan family to the royal court, where he became the Director of the Department of Painting at the Academy of Fine Arts in San Fernando. Goya was personal painter to the king of Spain and one of Spanish aristocracy's most famous painters, painting portraits of the most powerful, noble and influential families in Spain. Whilst so doing, he closely monitored the development of political and social issues in the country. In the same vein as greats such as Velasquez, Goya was a royal painter whose best works were created beyond his official obligations. Indeed, his frank portrayals of his time marked the birthplace of 19th century realism. From 1775 to 1792 Goya was preparing drawings and sketches and designing the Royal factory of tapestry in Madrid. This time represents the most important period in his artistic formation and, as a tapestry designer, Goya created his first genre-paintings. That experience made him a very punctual observer of human behaviour and character. His studies of Velasquez's works, kept in the King's collection, resulted in new and more spontaneous techniques of painting.

Culture Whilst Goya was a young artist, copperhe had personally witnessed. That would plate engraving techniques were very rare leave a stamp in his painting school which in Spain. During the second half of the 17th become darker, while his style become free century, copperplate engravings began and without contours. expanding as a part of cultural activities Goya's 'Traces of Tauromakije' projsponsored by dynastic rulers. The presence ect was published 1816. The work portrayed of Tiepolo in Madrid during Goya's formaa detailed description of the fiesta, while tive years as an artist, as well as the influGoya's characteristic expression and domiences of Rembrandt and Rivera, would nation of copper technique brought the essentially mark his later career. scene to perfection and incredibly harAround 1780 the undertone possibilimonised the possibilities of bullfighting and ties and light-dark contrasts of a new the maturity of the artist's style. French technique - aquatint - attracted After the war, Goya's style deviated Goya. After a couple of experiments on from the social requests and etiquette Velasquez's reproductions, he successfully expression of the desire for meticulous porused the new method in his 'Caprice' coltraits. He stopped being a painter for aristoclection and would continue to use a combiracy. After the restoration of the Spanish nation of aquatint and copperplate engravCrown, he withdrew from public life, movings until the end of his life. ing to his family home on the outskirts of The first, 'Caprice', series of Goya's Madrid. Freed from any royal restrictions, Goya was personal paingraphics was printed in 1799 at a time when he developed his own style. In the series of ter to the king of Spain Goya was seriously ill. The illness, in fact, Black Pictures, Goya painted his most intiand one of Spanish arisleft him deaf and he would never fully mate visions on the walls of his house. A tocracy's most famous recover. The 'Caprice' collection is free of combination of various moments and the artistic restraint and the individual works courageous experiments and strong painters, painting porwere probably created during his periods of Expressionism - the work paved the way for traits of the most powerremission. While he was isolated from the the newest forms of Artists. The Series of ful, noble and influential rest of world fantastic motives prevailed graphics 'Los Disparates [The Lunacy]', in families in Spain. Whilst through his works and imaginative freedom accordance with a formal repertoire, was so doing, he closely mowas utilised to emphasise his critical and indeed akin to the works from 'the Black nitored the development satiric perspective on humanity, producing Paintings'. Published posthumously under of political and social a unique and recognisable form. He created the title 'Los proverbious [The Proverbs]', issues in the country. a new style that was close to caricature. His the graphics were never completed due to portraits are powerful studies of characters the artist's voluntary exile to France, where discovering subjects the way Goya saw he died in 1824. them. In a fresco-painting he applied a free style and earthly Belgrade's Cervantes Institute, in conjunction with both the realism - unheard of at the time in religious paintings. The City of Belgrade's Department of Culture and the artistic pavilbeginning of this series was linked to the alleged collapse of his ion 'Cvijeta Zuzoric' organised the exhibition entitled 'Goya's emotional relationship with the Duchess of Alba in 1796. caprices'. The exhibition included one of Goya's most famous On 6th February 1799, the Madrid press announced the series of graphics - 'Caprices'. release of the collection under the banner 'the collection of This project was the first series that Goya embarked upon with graphics with cranky themes, thought of and printed in the coptotal artistic freedom; without any orders or instructions from on perplate engravings by Don Francisco de Goya'. In a voluminous high. As such, it represented his artistic enlightenment. Through text, the author justified Goya's work, confirming that through the medium of art, Goya passionately criticised the value system painting, as well as poetry, human errors and sins may be critiof the society in which he lived: a value system which was based cised and pointed out to creativity of an artist, technically counton the established patterns and absolutism of the Church. In terms er-balancing him with a 'hired plagiarist'. of the series' style, Goya opens up to modern sensibilities and The criticism of 'Caprices' caused a reaction of 'Inquisition', turns towards subjective-based creatively free art. which led to the works being immediately removed from sale. The exhibition was partly displayed in the gallery of Goya offered 80 unsold printed graphics and other works to the Belgrade's Cervantes Institute, while most of the works were king, and the works subsequently belonged to the National shown in the Cvijeta Zuzoric pavilion. Copperplate Engravings from 1803. Goya named them 'themes Prior to its arrival in Belgrade, the 'Caprices' exhibition with caprice tending to depict certain things as a parody and to appeared throughout Europe, the Philippines and the Middle condemn prejudices, false accusations and duplicity'. The first East: Manila [2002], Beirut, Amman, Damascus, Tunisia, Vienna, 36 graphics are inspired by the themes of love, prostitution, bad Tel Aviv, Lion [2003], Milan [2004]. parenting, marriages of convenience, cruelty of mothers, stingiThe collection comprises 80 graphics created between 1797 ness, gluttony and the crime of smuggling. People were symboland 1799 and printed in 1928 in time for the World Exhibition in ically depicted in the graphics as donkeys, and the sins are porSeville, which opened in 1929. trayed in the form of witches, ghosts, priestsâ&#x20AC;Ś The graphics are the property of the Cervantes Institute. Although graphics, often with puzzling topics, leave much to Aleksandra Zivanovic, organiser of the cultural section of the the imagination of the observer, Goya's contemporaries recogInstitute, revealed that the final destination of this exhibition, nised contemporary figures among them. The Caprices soon prior to its return to Madrid, will be a two-week showing in the became famous beyond Spain, transferring a new method of facPancevo City Museum. ing reality. "The exhibition was seen by more than 4,000 visitors. The From 1810 Goya worked on 'Desastres de la Guarra [Horrible co-operation with the pavilion 'Cvijeta Zuzoric' was excellent consequences of War]', which was a series of graphics through and we are indeed thankful to the City of Belgrade's Department which he condemned violence and violent behaviour - inspired of Culture, which provided the premises of the pavilion for the by the horrific scenes of the Spanish War of Independence that exhibition", said Zivanovic.â&#x20AC;˘ CorD | June 2005

Interview By Jelena Jovanovic, Photo Andy Dall

cantly. People always used to come here often, but that was the older generation which was familiar with the history of RussianSerbian relations and Russian culture. Now we see the arrival of new generations who have new interests and support, which is normal, and the orientation towards Europe and the accession of SCG to the EU. It is the same in Russia. We are trying to present processes which can be useful for this new generation, to present the new spirit of Russian society, to show the new impulses which Russian society, culture and science have received in the last ten to fifteen years, which were very difficult times."

Gleb Visinski, Director of Belgrade's Russian Home

The Russian Cultural and Science Centre in Belgrade, better known as Ruski Dom, is the oldest cultural centre in Serbiaâ&#x20AC;&#x2122;s capital city, having existed at its current address, Kraljice Natalije 33, for 72 years.

n the initiative of Russian emigration representatives and with the support of the Yugoslavian Kingdom and the Russian Cultural Council, the building of the Russian Cultural Centre was designed by famous Russian architect Vasilij Baumgarten. This institution, with its important educational and cultural activities (the Russian Gymnasium, the Russian Institute and the first library with books in the Russian language, all form part of this centre) has welcomed famous names such as Saljapin, Rachmaninov, Bunjin â&#x20AC;Ś and has "survived" all of the turbulent political events which marked the 20th century. According to Gleb Visinski, outgoing director of the Russian Cultural Centre, "The Russian Home is mostly visited by older generations. People over 40 make up two thirds of our visitors, while only a third is under thirty. Our task is to increase that number and we can only do that with clever programmes". Visinski, who ran Ruski Dom until April this year, was born in Sid, Vojvodina, to a family of Russian emigrants who returned to the Soviet Union at the beginning of the '50s. A physicist by profession, after Graduating in Moscow, Visicki joined the waters of Diplomacy in which he has swam for almost thirty years, fifteen of which he spent outside the country. Before Belgrade he held posts in Vienna, Prague and Budapest. "The tradition of the Russian Home is connected in a wider sense with Russian emigration in Serbia and with the historical, cultural and scientific inheritance it brought to Belgrade. When I arrived I found a nice inheritance, but life had changed signifi-

CorD | June 2005

What is particularly significant in the work and programmes of the Russian Home? We have continued the tradition of concerts and exhibitions, but have also focused on intellectual programmes too; programmes which we did not have before. The orthodox culture was always an integral part of Russian culture. That status of Russian culture was always interesting to the Serbian public. We have organised several events on that subject, showing Russian films about human spirituality, performing presentations of theologian literature, etc. In a narrower, philosophical sense, we presented those sources which are absolutely essential for the spiritual renaissance of Russian society these days. Those are Russian monasteries, old works of Russian literature and the works of religious Russian philosophers etc. As regards science, we have had significant programmes dedicated to new Russian technologies. The USSR was a highly technological country, more so in one segment of the economy - that connected to the military industry. Today those technologies are open to the public and are very competitive globally. We presented high Russian technologies from the sphere of new materials. All space rockets are made of new materials. We have that advantage over other countries. We presented Russian achievements in the sphere of information technology. The Russian information technology school is well known and its achievements are interesting to the whole world. We presented the achievements of new technologies Nanotechnology - invented by the Russians and for which our physicist, Aufjorov, received the Nobel Prize. We tried to show that Russia has remained a highly developed country; that in Russia there are achievements which could be useful for Serbia too. You have to develop and you need scientific co-operation with both the West and the East. We wanted to show that new technologies in Russia are very important and interesting. We held several seminars in which we wanted to present to Russian businessmen the possibilities of the Serbian economy within the spheres of privatisation and investment, as well as staging several seminars for Serbian businessmen to show them the opportunities on the Russian market. Within our intellectual programmes we tried to introduce the Serbian literary public to contemporary stars of Russian literatureâ&#x20AC;ŚContemporary Russian literature is being translated and published sufficiently in Serbia, with the works of the likes of Lyudmila Ulitskaya, Vladimir Sorokin, Viktor Pelevin, Lyudmila Petrushevskaya and many others. We tried to present the new wave of Russian literature. Those were serious programmes which attracted the attention of the younger generation of Serbian intellectuals. I would like to emphasise the presentation of contemporary Russian music. Everybody here knows about Rachmaninov, Rimsky Korsakov and Tchaikovsky, but the names from contemporary Russian music are not known and, through our music programmes, we tried to inform the public about what is happening in Russian classical music these days. The Glinka state quartet, the Bolshoi Theatre chamber orchestra and other Russian musicians held Concerts here, and their programmes also included new Russian classical music.

Interview How much do you do to popularise the Russian language, and which programmes deal with that? Our Russian language programme is very important. I have to say that my impressions from Belgrade are very positive, but one trend I do not understand in Serbia is that Serbs appear less and less to be learning Russian. We all have to know the English language, but I am convinced that Serbs absolutely need the Russian language, which is important for any further business co-operation and presents a channel to the Russian market. If this trend continues, in ten years time there will be no Serb experts who speak the Russian language. However, interest in the Russian language does still exist and the number of those who study the Russian language is constantly increasing. How does the Russian Home correspond with modern political times and social, historical changes? We have had a lot of programmes providing intellectual dialogue, with subjects such as Russian State Security, Russia and the Presidential Elections or the Social Doctrine of the Russian State. Those were questions from our practice which can be interesting for modern Serbia. We talked about privatisation in Russia, the social structure of Russian society, the period of transition; about what conflicts arise during the process of transition and how they are solved. That is interesting for contemporary Serbian society. Until 1992 this centre was the Home of Soviet Culture. The institution was ideological, but not a primitive ideological institution. Famous scientists and artists used to come, but within the framework of one ideology. These days we are trying to show that Russian society is a pluralistic society. For instance, we have the richest library of Russian magazines and newspapers - we have both leftwing and rightwing newspapers and, of course, democratic ones. We want to present the achievements of Russia over the course of the last fifteen years, the greatest of which is that the society has become open and that different ideas can be realised there. Now, of course, we have abandoned extremist ideas from both the left and right sides. We are trying to expose the scientific and intellectual ideas, which can be felt today in Russia.

isation without losing our national essence. I think that this is the biggest problem for Russian culture - to be part of the globalisation process, yet to preserve its Slavic, orthodox and authentic values. Which segments of this year's Russian Home programme would you emphasise as being of special interest and significance? Some programmes scheduled for May were interesting. The descendants of Nikolayevich 'Lav' Tolstoy gathered in Belgrade. Namely, three of Tolstoy's great grand children were born on the territory of the former Yugoslavia (Becej, Vrsac and Tetovo) and 11 of their descendents came to Serbia. The programme was called "The Return of the Serbian Tolstoys" and that was the first time that Tolstoy's descendents, some of whom are very famous in Russian cultural life, arrived in one country together. The presentation of one of the most popular publishing houses in Russia - the Antalia private company from St. Petersburg - is also significant. They publish exclusive scientific and humanities literature and focus on Russian literature abroad. They started the project called Serbica - a Serbica library within which they publish Russian research into Serbian history. In Russia there are several scientists who are occupied with that and they are writing the history of Russian-Serb relations, the history of Serbian literature,

There is one dilemma for both Russian and Serbian culture: how to traverse the process of globalisation without losing our national essence.

What is the current situation on the Russian cultural scene? The state is unable to support culture to the required extent, but since there are no bans, all that is of value has the opportunity to emerge. I would say that the most important current task in Russia is to survive this difficult time. There is one dilemma for both Russian and Serbian culture: how to traverse the process of global-

research dedicated to Serbia, the Balkans and the former Yugoslavia. In its Byzantium Library, Antalia has literary works dedicated to Byzantium - those are original works and resources which have never been made public before. That presentation is of importance to the Serbian public and publishing houses. I think that the second Summer Festival of Chamber Music for piano, with both Russian and Serbian artists, will also be very interesting. One programme which I would especially like to emphasise is connected with the 60th anniversary of the victory over Fascism. The Russian House is holding an exhibition of documentary photographs entitled People at War - the People who won the War. Those are illustrated stories of soviet reporters from the frontlines during the war, and the photos show the people who brought victory. Before the end of the year the Russian Aristocratic Society will present themselves here with their publishing house, which specialises in publishing historical literature. They will visit places connected to Russian-Serbian relationships and will inform the public about their activities.â&#x20AC;˘

CorD | June 2005

Implements AdBlue Infrastructure From May 2005, AdBlue has been available in SCG at the OMV filling station at Lapovo. AdBlue enables the reduction of sooty particle ejection of trucks by 80 per cent and nitrous oxide emissions by a third. OMV, Central Europe's leading oil and gas group, is adapting 67 OMV filling stations by the end of 2007 to dispense AdBlue. As part of this European wide infrastructure, the official launch of the first AdBlue filling station in Serbia & Montenegro took place on 6th May 2005 at the OMV filling station at Lapovo. Local officials, Serbian Government representatives, customers and journalists attended the launch event. The first truck in Serbia & Montenegro was filled with OMV AdBlue by Mr. Rainer Schlang, Vice President, Business Unit Manager of Retail & Commercial Cluster Two. As the precursor in Europe, OMV is putting the necessary AdBlue infrastructure in place for trucks with SCR (selective catalytic reduction) technology that are available on a standard basis from the beginning of 2005. In this way, OMV will ensure reliable coverage of the growing demand for AdBlue and make a significant contribution to environmental protection.

The Brand Products are made in factories, but brands are created in the mind. Audi's brand image is shaped to a very high degree by its products, but our approach at the point of sale, our communication measures and the way we handle personal contacts with our customers all contribute towards the overall image of the Audi brand. Products and their technical properties can be copied. The emotional profile of a brand, on the other hand, is unique - like the genetic code of a human being. Brand image, together with an attractive product range, is the decisive factor behind success - particularly in the premium segment. A consistent interpretation of the brand helps us to speak with one voice. This interpretation is based on the Audi brand identity guidelines, which unequivocally define the identity of the brand. The brand core "Vorsprung durch Technik" encapsulates Audi's philosophy in a nutshell. Everything that we do serves one single purpose: to deliver a Vorsprung to our customers, enabling them to reap the benefits of our superior solutions or lead over others. The notion of "Technik" encompasses both our technological expertise and our technique: the way we think and act. Our tireless urge to question the status quo, rather than being content with it, spurs us on to find new, trendsetting solutions in every domain. Vorsprung durch Technik - the very heart of the Audi brand This sporty spirit of the Audi brand is the basis for top performance in all areas, and is reflected by the young, dynamic and attractive world of Audi. An Audi conveys sheer pleasure, provides access to driving enjoyment and fully redeems what its design promises. But we

CorD | June 2005

Awarded Internationally Delta Banka's management is happy to announce that the bank has received a New Foreign Acknowledgements award. Based on rankings made by analysts of London-based financial magazine Finance Central Europe, and foreign consultant agencies, Delta Banka gained three prestigious

OMV Officials at Lapovo filling station In March 2003 OMV opened the world's first AdBlue pilot filling station in the Bavarian town of Dingolfing. This was the kick-off for the adaptation of its filling stations to enable them to dispense the urea solution. The goal is to set up comprehensive infrastructure and to provide a reliable supply of OMV AdBlue for transit traffic in Central Europe. For this reason priority is given to equipping filling stations along key traffic routes. believe sporty means more than sheer power. It also means being ahead of others without having anything to prove; being both competitive and fair. Audi is modern, innovative and visionary. Audi takes up the challenges of the future, thinks one step ahead and possesses the creative power to set new standards. Progressive technology, pioneering design and an open, human approach to customers and partners alike form the basis of our positioning as the progressive premium brand. Quality down to the smallest detail and superlative design are typical of Audi. The special sense of style of the Audi brand is moreover perceived by the customer not simply through its products. Audi conveys authenticity and substance in every area. Audi is cultivated, refined and fascinating. These qualities maintain a vital equilibrium within the image of the Audi brand. Audi is sporty, but not aggressive. Audi is progressive, but not avant-garde. Audi is premium, but not arrogant.

Draginja Djuric - banker of the year acknowledgments in 2005. Analysing the performances of banks from South-Eastern European, including SCG, Turkey, Greece, Bulgaria, Romania, Slovenia, Croatia, Bosnia & Herzegovina, Albania and FYR Macedonia, Delta Banka was rated in 2005 as The best mid-sized bank in SE Europe and The best bank in SCG, while General Manager of Delta Banka, Mrs. Draginja Djuric, was awarded as the banker of the year in SCG. Delta Banka has, thus, received prestigious acknowledgements from this influential industry magazine for three consecutive years. This year's recognition testifies to the leading position and constantly upgrading business results of the Bank in this region. Audi A6

Design, dynamism and dimensions The three outstanding features of the new BClass Mercedes-Benz Compact Sports Tourer are design, dynamism and dimensions. This new model will appear in the showrooms of Mercedes-Benz outlets and authorised dealerships all over Europe in the summer of 2005. With this novel Sports Tourer concept, Mercedes-Benz is once again asserting its role as the trendsetter among car brands and preparing the way for a young market segment with a promising future. The B-Class meets the wishes of today's motorists for a car with generous space, exemplary comfort, excellent

Inside, however, the new Mercedes model offers more than other cars of comparable size in this segment in all comfort-related respects, e.g. shoulder-room, legroom and headroom. Occupants in the rear benefit from the long wheelbase (2778 millimetres); this allows a distance between seats and generous kneeroom which almost matches that of the S-Class. The B-Class also reaches new dimensions where variability and load capacity are concerned. Thanks to a height-adjustable load compartment floor, an asymmetrically divided, folding and removable rear seat units, plus an optionally removable front passenger seat, the Compact Sports Tourer is quickly and easily converted from a comfortable touring car to a practical van. Depending on the number and position of the seats, the load capacity can be increased from 544 to up to 2245 litres (with rear seats and front passenger seat removed). This corre-

B-Class Mercedes-Benz Compact Sports Tourer practicality, an exciting design and a high level of driving pleasure. This new Mercedes development takes the advantages of different vehicle concepts and combines them into an interesting and distinctive profile of its own: as a Compact Sports Tourer, the B-Class is a touring, family and recreational vehicle with incomparable added experience value in terms of design and dynamism. One of the major advantages of the Compact Sports Tourer is the sandwich concept developed by Mercedes-Benz. Thanks to the spacesaving arrangement of the engine and transmission partly in front of and partly beneath the passenger cell, the new B-Class offers the interior spaciousness of larger saloons and estate cars, despite its compact external dimensions. The body has a length of 4270 millimetres, corresponding to the compact car class.

sponds to the load capacity of large estate cars. The maximum loading length is 2.95 metres. High-torque CDI diesel engines and up-to-date petrol units meet the need of the Sports Tourer concept for effortless performance and a high level of driving pleasure. There is a choice of six four-cylinder engines with outputs ranging from 70 kW/95 hp to 142 kW/193 hp. The top-of-theline B 200 TURBO is equipped with a new twolitre, four-cylinder engine which delivers a maximum torque of 280 Newton metres from as little as 1800 rpm thanks to turbocharging and intercooling, and maintains this value over a wide engine speed range up to 4850 rpm. This means that the most powerful of the Compact Sports Tourers accelerates from standstill to 100 km/h in just 7.6 seconds, takes the fifth-gear sprint from 80 to 120 km/h in 7.3 seconds and achieves a maximum speed of 225 km/h.

Global Offer The offer of Vojvodjanska Banka a.d. Novi Sad includes modern products and services for both retail and corporate clients, as well as extremely contemporary services in the bonds and securities field and investment banking, in which Vojvodjanska Banka has also taken the leading role. In the investment banking business, Vojvodjanska Banka is the absolute leader in comparison with all business banks operating in the country and members of the Belgrade Stock Exchange in terms of the calibre of trading bonds and securities, as well as the number of executed transactions. The corporate business of the bank is characterised by an active approach to the client. The bank's approach to corporate clients is significantly more aggressive, thanks to the important expansion of an assortment of services. Significant growth of retail client numbers, both month-on-month and year-on-year, confirms the positive attitude of clients of Vojvodjanska Banka and the high level of satisfaction regarding the methods and efficiency of realisations of retail services. Close to 70,000 clients are currently doing business through Vojvodjanska Banka. Corporate clients can utilise a large number of modern banking services, such as short-term and long-term loans, banking guarantees both at home and abroad, letters of exchange, acridities business, credits through foreign crediting lines, payment and salary inflow-outflow services both within the country and abroad. The crediting of clients for the purpose of financing mid to long-term exports is included in one of the most competitive advantages of the service offer which Vojvodjanska Banka a.d. is offering. To this end the bank has been undertaking Limited Credit Agreements, as well as approving merchandise credits which were signed with several banks and financial institutions from the European Union and Switzerland to cover credits by foreign export insurance agencies in the countries of the creditor. Vojvodjanska Banka is also orientated towards facilitating the execution of transactions through modern banking technology, in order to enable clients to manage their finances and follow changes on their account via SMS, by using services of electronic banking 24-hours-aday, managing their money from their home or office by electronic bank for corporate clients and VOB home bank by service of electronic banking for citizens.

Piraeus Takes the Helm Broker house Sinergy capital has released a public announcement regarding the takeover of 81,934 bonds (80 per cent of shares) of Atlas Banka at a price of 19,296.30dinars per share. Published terms, valid until 25th May were based on the strategic alliance contract which was signed between Serbia's Atlas Banka and Greek-based Piraeus Bank on 17th February. According to the agreement, the Greek bank

New Appointments Announced The United States Steel Corporation has announced that David H. Lohr has been appointed as higher vice-president for the European installations and President of U. S. Steel - Kosice, Slovakia, where he will relocate to live. This appointment means that, as well as managing the day-to-day production of U.S. Steel Kosice, Lohr will also be ultimately responsible for U.S. Steel - Serbia, which is a part of U.S. Steel - Europe. Lohr graduated industrial engineering and has worked in various sectors of the U.S. Steel Corporation since 1974. He is leaving behind a post as vice president for production in installations of U. S. Steel. Lohr's new post will see him report directly to John H. Goodish, who was recently appointed executive vice president of the company and general director for production. Lohr is succeeding Christopher J. Navetta, who held the presidency of U.S.Steel - Kosice for the past three years and is now returning to U.S. Steel's Pittsburgh headquarters to take over a

David H. Lohr new important position. Navetta has been appointed as higher vice president for purchasing, logistics and branching. His responsibilities will be to cover transport and real estate, as well as purchase and delivery of raw materials needed for U.S. Steel Kosice, U.S. Steel - Serbia and domestic factories in America.

Five Years of Recognition Branimir Markovic, Atlas Banka Director

is obliged to invest up to 80 per cent of in Atlas Banka's value, while the remaining 20 per cent of capital (18,483 shares) will remain the property of three companies: Atlas sistem d.o.o., Bukom Kft and Granexport a.d. The nominal value of Atlas Banka shares at the time of the announcement of the upcoming sale was 9,000dinars per share. Their current market value is 9,382dinars - their highest price in the last six months. Piraeus Bank has also assumed responsibility for providing funds to cover the long-term financing of existing Atlas Banka clients, whilst appointing a new Management and Controlling board. The future activities of Piraeus Bank on the Serbian banking market will be aimed at increasing loan services for corporate clients, especially SME's, as well as upgrading the retail client offer to provide long-term housing mortgages and mid-term consumer loans. It is expected that the Piraeus Bank will provide a large influx of long-term means, which will be disbursed for longer periods with lower interest rates than previously available. Interest rates should be levelled with the most-competitive banks operating on the local market. Piraeus Bank also plans to commence leasing operations for private vehicle leasing. And, since long-term sources are envisaged, very affordable interest rates are expected in this area too.

CorD | June 2005

Lexus has once again climbed to the top of the auto tree, having claimed the UK's 2005 J.D. Power and Associates Client Satisfaction Gold nomination for an unprecedented fifth consecutive year. The luxury car achieved a total of 848 of a possible 1,000 points in the owner's satisfaction class well above the industry average of 786 points. Lexus proved the industry leader in the categories of quality, reliability and attractiveness, achieving a grand total of 923 points in the quality/reliability category and 870 points in the attractiveness category. Lexus' IS200/300 range ranked second overall in total model classification. The 2005 CSI (Consumer Satisfaction Index) Study was based on the assessments of more 23,000 owners who have possessed the vehicle for an average over two years. Respondents provided detailed evaluations of their vehicles and dealerships, covering 77 attributes in four main satisfaction factors: Quality/reliability (30%) Vehicle attractiveness, including design, per-

formances, comfort and characteristics (28%) Satisfaction with dealership services (22%) Expenses of ownership, including fuel, insurance, services and repairs (19%) According to Karl Schlicht, vice president of Lexus - Europe "The Lexus brand is not only connected with quality and legendary client service, it is a full experience of ownership which starts with design of the interior and exterior of the car, and is moving towards a pleasure during the ride and the way we serve clients in our shops. We are honoured that our clients rewarded us once and we would like to thank our Lexus centre in Great Britain for making such a high level of service possible." Schlicht continued: "In the next 12 months Lexus will present a few new models, and we will continue to aspire to provide our well known service to our clients". Moreover, Lexus was announced as "The Best Producer" in terms of reliability and satisfaction for the fourth consecutive year.

Letter Crédit Agricole Signs Final Agreement Subject to the necessary authorisations of the relevant authorities, Crédit Agricole s.a. will recapitalise Meridian Bank A.D. by the end of June to reach a new shareholders' equity of 34million, thus becoming the 71% shareholder of Meridian Bank A.D. Together with the founders who will remain shareholders, Crédit Agricole s.a. will also provide significant long-term financing with a subordinated funding facility in order to capture opportunities in the rapidly growing Serbian market. According to the magazine "Finance Central Europe", in 2004 Meridian Bank A.D. was ranked fourth in South-Eastern Europe in terms of ROA (return on assets) and tenth in terms of ROE (return on equity), while it was third in Serbia & Montenegro by ROA, and second by ROE. Meridian Bank A.D., as a member of Crédit Agricole s.a. group, will target a leading role in retail banking, with a focus on individuals and SMEs, and will develop corporate banking. It will also aim at entering, through specialised units, the markets of life insurance, leasing and consumer finance. Bozidar Djelic, former Serbian finance Minister (2001-2004), will become the President of the Management Board of Meridian Bank A.D. And, on behalf of Crédit Agricole s.a., Tomislav Djordjevic, the founder of Meridian Bank A.D. will become its General Manager. Tomislav Djordjevic reported: "With Crédit Agricole, Meridian Bank will be in a position to accelerate its growth and provide its clients nationwide with a comprehensive range of services and products". Jean-Frédéric de Leusse, member of the Executive Committee of Crédit Agricole s.a., and Head of International Retail Banking, reported: "Crédit Agricole s.a. has chosen Meridian Bank to enter the Serbian market because it is a very dynamic bank with advanced technologies and qualified and motivated staff".

Left to right: Jean-Frédéric de Leusse, Bozidar Djelic, Boris Tadic and Tomislav Djordjevic after signing the contract

New Flights Announced Austrian Airlines is proud to announce the introduction of new regular flight services to Beirut, Alexandria and Amman. Flights to Beirut commenced on 17th May this year at a cost of €229 (+ taxes), while flights to Amman, at a cost of €399 (+ taxes), are to commence on 2nd June and to Alexandria - also €229 (+ taxes). Special fare reductions from Belgrade to these three new Austrian Airlines destinations are also being offered for a limited period. For all detailed information and reservations, prospective travellers are invited to contact Austrian Airlines' Belgrade office at Terazije 3/III. Tel: 3248077 / 3226812 or e-mail osbeg@aua.com or at our web-site www.austrianairlines.co.yu

Dear Sir, As a regular reader of CorD magazine, I can't help drawing your attention to two hardly pardonable errors in CorD's most recent issue (May 2005). On pages 61 and 62 you mentioned an English intelligence officer codenamed Intrepid. His real name is Sir William Stephenson and not Stevenson, but that spelling error is almost negligible. Gen. William (Wild Bill) Donovan (page 62) definitely was not "a British colonel"; he was a World War One hero and a Wall Street lawyer before he joined the OSS in 1941. The two men did work closely together and were known as Big Bill (Donovan) and Little Bill (Stephenson) in the Washington power circles of the '40s. Josip Broz Tito's second son's name is Misa (Misha) and he is definitely not "also called Zarko", as stated on page 63 of your magazine. I feel that it would be most appropriate to offer an apology to your readers in the next issue of CorD. Sincerely Yours, Milos Vasic, journalist, Belgrade. Dear Mr. Vasic, We appreciate that you are a regular reader of CorD magazine and would like to thank you for pointing out these unintentional errors. Apologies to all our readers for any confusion caused.

ARTS & ENTERTAINMENT

In 1961 I heard there was an audition for a singer who would travel to Belgrade. I applied and I passed. That was my first stage appearance out of Italy. This present stage appearance in Belgrade is one of my last concerts. Between those two trips to Belgrade is my entire carrier - so said Luciano Pavarotti, perhaps the world's most famous contemporary opera singer, during his May visit to Belgrade. By Vesna Damjanic; Photo Mirjana Kotlaja

he famous Italian tenor has enjoyed an illustrious international career which has spanned more than 40 years and happened to begin here in Belgrade. Last month, as part of his farewell tour, Pavarotti performed in Belgrade's Hala Pionira (Pioneer Hall), bringing the sound of beautiful music to this exclusively sporting arena for the first time in its history. The dark corners of the massive hall filled slowly and, as a change from the norm with stars of such status, it was the lateness of the attendees and not the fickle whims of the artist that caused the start of the evening's entertainment to be delayed. Perhaps this was due to the fact that these lovers of opera music had never before visited this sporting venue and so needed time to figure out the peculiar coding of the hall's various entrances and exits. As one of Serbia's famous writers during the period of protests and counter-protests in the 1990s would probably say, if there hadn't been any security

CorD | June 2005

some of those in attendance would probably still be seeking the entrance. While we have in mind the abnormal period of the '90s in Belgrade, it is worth noting that this concert, which has been causing a fuss all across Serbia since it was announced, happened to be held on the same day that the world's biggest banking event - the EBRD Annual Conference - was also opening across the city in New Belgrade's Sava Centre. Serbia has missed events of such magnitude and, after so many long years of isolation, it is satisfying to note that this great city has once again returned to both the world's cultural and business maps. That said, it will still take some time before the city's residents can afford to splash out quite so much on a ticket for such an expensive event as this. This was proven by the fact that Pioneer Hall, excluding the VIP seats which had been bought by bankers, government officials and the elite, was pretty empty. Indeed, it was obvious to the naked eye that the hall was only

ARTS & ENTERTAINMENT about two-thirds full. For some unknown reason, tickets for the Belgrade leg of Pavarotti's world tour were almost twice as expensive as they'd been in Dublin and Tulsa (U.S.). Belgradians and visiting EBRD-attending bankers and businessmen had to pay €120 for the 'cheap seats' and €305 for the best seats in the house, while Dubliners and the American fans of the Italian maestro paid a mere €165 for the most expensive tickets at their concerts. The arrival of this global star passed in the accustomed manner: loud, but with the limitations associated with international stars of such status. Upon arrival at Belgrade's Surcin airport, Pavarotti allowed the paparazzi to shoot him from a distance that was not quite close enough to be of much use to their editors, before swiftly departing to his accommodation without a word to the gathered media. With the usual skilful manoeuvring of Belgrade's experienced tabloid press, the media circus focused on the elite suburb of Dedinje and the villa that the Government had 'offered' Pavarotti to use during his stay. However, this had merely been a ruse to distract the media and prevent them from catching Pavarotti in some unusual pose, as the star had actually been invited to stay in the Royal Suite of Belgrade's Hotel Intercontinental , which he entered undisturbed via the back door. A day later, after fully recovering from his journey and mediaavoiding shenanigans, Pavarotti finally appeased journalists and held a press conference. The meeting was pleasant and friendly and attended by swathes of journalists who, despite smarting from being given the run-around the day before, were satisfied that Pavarotti was co-operating fully and unconditionally when he burst into song and gave a partial rendition of the aria Woman is Delusive from the opera Rigoletto. Reporters then decided to be on their best behaviour whilst the great singer was in town. The fact that Pavarotti's first ever international appearance was in Belgrade and the city would also host one of his last international appearances has been mentioned time and time again since the concert was scheduled with varying degrees of significance, from those of mere informative coincidence to those of downright euphoria. At times, and with certain editorial angles, it could have been determined that it was that lowly Belgrade stage some 44 years ago that had been solely responsible for the massive international career that was to follow. With the wisdom he has shown throughout his career, Pavarotti did not spoil the excitement of his hosts and highlighted the fact whenever it was evident that that was what was being sought. During his three-day visit to the city, Pavarotti more or less confined himself to the hotel and avoided any sort of media attention in the city - as is surely the done thing for stars of this class. Indeed, even his rehearsal at the Madlenijanum Opera Hall was so carefully planned that Pavarotti appeared early and as if out of nowhere, diving into the building before the mass of photo reporters could even whip off their lens caps. With so many high profile business, banking and political figures in town, the chances of snapping Pavarotti with a local 'face' should have been high. However, interestingly, Pavarotti declined to be introduced to the country's highest officials despite, as they say, the desire being their on our part. It was later confirmed by some well-informed reporters that Pavarotti had eaten two eggs for breakfast and mostly enjoyed his stay, enjoying the hotel's massage parlour and relaxing before his show. The concert itself was held on 21st May in front of around 5,000 enraptured guests. The atmosphere was befitting the event and aided in no small part by the carefully planned and beautifully executed performance of the famous Italian. The opening section of the concert included placid, but emo-

tional compositions, such as "Ave Maria", which Pavarotti sang in his declared capacity as a UN Goodwill Ambassador. The performance, and the status, were both well accepted by the audience. After the interval Pavarotti turned to the more popular arias of classical music, Napolitano songs which were well received by the guests, and O Solo Mio, which received rapturous applause and was dedicated by Pavarotti to all the ladies in the audience. Pavarotti's final concert in Belgrade climaxed with a superb rendition of the Wine Song from the opera Troubadour. In addition to the great tenor, the Belgrade audience was also treated to the voice of Simon Todaro, whose role was not merely to allow the star to rest, but rather to demonstrate his own silken skills. The audience also gave a lively welcome to the Belgrade Orchestra's 'Kamerata Serbika', which, for some, was as much a revelation as Pavarotti's first appearance in Belgrade had been. According to Serbia's Crown-Prince Aleksandar Karadjordjevic, Pavarotti's concert was a step on the road to making Belgrade a cultural centre of Europe, while local opera star Oliver Njego said that the sound of that noble vocal instrument that was Pavarotti's voice would resound in his ears for a long time. Similar reactions of praise and satisfaction came from attending politicians, past and present, as well as the foreign and domestic bankers and businessmen who'd enjoyed the show. Pavarotti himself said that the enthusiasm of the audience had been an inspiration and had helped him to overcome the handicap of appearing on stage in a sports hall. Noting that his ill health prevented him from moving around too much, the great singer expressed regret that he had not been able to see the city more closely, particularly the markets, which he'd hoped to tour in order to see exactly what the people of Belgrade buy and sell.•

SPORT - FOOTBALL

EURO CHAMPS Another season of football has drawn to a close on the continent, with two fantastic European finals that the bookmakers would never have predicted once again proving that European football is incontrovertibly the best in the world. By Bob Holt; Photo Beta/AP

n 18th May the UEFA Cup final was played in front of 48,000 fans at Sporting Lisbon's Jose Alvalade Stadium. Considering that no Russian team had ever won a major European title and Sporting had the added bonus of playing in front of their home crowd, the bookies would have been quick to back the hosts over CSKA Moscow. Everything started according to plan for the home club, with Rogerio blasting them ahead with a superb 29th minute strike from outside the penalty area, which left teenage CSKA keeper Igor Akinfeev floundering. And, as the half-time whistle blew the Portuguese fans must have been feeling comfortable in their seats, while the 4,000 Russian supporters who'd made the trip to the Iberian coast were surely wondering why they'd bothered. However, whatever was said by CSKA coach Valery Gazzayev during the interval certainly did the trick, with CSKA emerging for the second half like a team possessed. 12 minutes after the break Alexei Berezutsky got them on level terms and, with Sporting on the back foot, the Moscow team's dominance began to show. Despite the deafening chants of their massive support, Sporting were unable to breakdown a well-organised Moscow defence and, at times, looked totally out of sorts. CSKA, on the other hand, were beginning to look the more likely to score and it

CorD | June 2005

2005

was no surprise when they took the lead in the 66th minute. In a well planned and perfectly executed move, Carvalho sent a through ball to Zhirkov, who ran into the area and shot through the legs of Sporting keeper Ricardo to turn the tide and silence the massively partisan crowd. Sporting now needed a goal quickly. They piled on the pressure, mounting attack after attack as CSKA patiently defended and waited for a chance to counter. With just a quarter of an hour left to play they got their chance to put the victory beyond doubt after yet another Lisbon attack broke down. Sporting's Chilean midfielder Rodrigo Tello shot from distance and, as Akinfeev's acrobatic save rebounded into space, Rogerio - the hero of the first half - suddenly found himself unmarked in front of an open goal. However, he nervously rushed his shot and the ball broke up field to Carvalho. Carvalho skilfully brushed aside the challenge of Jospeh Enakarhire and crossed the ball accurately to team-mate Love. The Brazilian made no mistake, firing the ball into the net to make it 3-1 and, thus, seal the victory. With their victory, CSKA became the first Russian club side ever to win a European title: the closest one of the country's teams had previously come was when Dynamo Moscow reached the EUFA Cup Winner's Cup final in 1972, only to lose to Glasgow Rangers. CSKA's historic victory was not lost on the Russian public, with thousands of jubilant fans welcoming the team back to

SPORT - FOOTBALL Russia. Some 2,000 ecstatic fans greeted their heroes at Sheremetyevo international airport in the early hours of Thursday morning, while several thousand more were present a few hours later at a rally in front of CSKA's sports palace in the centre of Moscow. Dozens of politicians, including defence Minister Sergei Ivanov, joined in the chorus of praise for the CSKA players and coach Valery Gazzayev. The UEFA Champions' League Final, played in Istanbul on 25th May, was undoubtedly one of the most amazing European cup finals of all time between two of the most successful teams in the history of European Club football - A.C. Milan and Liverpool FC. All the records tumbled in a match that had everything. Milan began with their intentions plain to see, immediately going on the offensive. And their tactic achieved instant fruition, with Paulo Maldini striking from the middle of Liverpool's penalty area to make it 1-0 just 52 seconds after kick-off (the fastest goal in Champions' League history). Milan's first half dominance was total. The Italians appeared to be several classes above Liverpool: every pass, every movement and every strike was inch perfect. Not surprising then that more goals came. Milan had toyed with the Liverpool defence for much of the first half, but with less than ten minutes to go until the break Liverpool must have felt they could turn the tide. However, up stepped on-loan Chelsea striker Hernan Crespo to score a brace of goals in the 39th and 44th minutes to make it 3-0 and, seemingly, put the result beyond reasonable doubt. But Liverpool is not renowned for being the most 'reasonable' team. A major tactical rethink was needed at half time and Liverpool's Spanish coach, Rafael Benitez, did not disappoint, bringing on Ditmar Hamann for Steve Finnan and making three tactical defensive changes that allowed Liverpool's talismanic captain Steven Gerrard the space in which to perform. Liverpool's transformation was instantaneous. Suddenly, it was they who seemed a class above and their passes that found men in space, while Milan struggled to adapt to Benitez's tactical turnaround. Still Liverpool needed a goal quickly to have any chance of mounting what would be the greatest comeback in Champion's League history. Nine minutes after the restart they got exactly what they were

looking for, when Gerrard himself found space in the box and headed home to make it 3-1. Liverpool kept up the momentum in a six-minute spell that saw Vladimir Smicer - having also come off the bench to play his last match for the club - close the gap to just a goal in the 56th minute. Four minutes later Xabi Alonso's strike hit the back of the net and confirmed that Liverpool were capable of coming back from the dead, making it 3-3 to the delight of Liverpool's travelling army, and the despair of Milan's weary supporters. After such a momentous comeback it was not surprising that the Liverpool players were now somewhat drained. Milan once again turned up the pressure, but a series of outstanding saves by Liverpool keeper Jerzy Dudek kept the Italian attack at bay. Extra time did not yield a goal and the match went to a penalty shout out. Here Dudek, surely the man of the match, again thwarted the Italian giants, his Grobbelaar-esque 'wobbly-leg' tactic causing one Milan penalty taker to miss and allowing him to save two more. Liverpool's penalty strikes were clinical and when the dust had settled it was they, against all the odds and after having been written off by all and sundry, who lifted Europe's most coveted title. The victory marked Liverpool's fifth European Cup victory (another all time record) and UEFA have agreed to let them retain the trophy indefinitely - a fitting tribute to a fitting club that has seen just about everything that football has to offer. Perhaps the only record that Liverpool will not be happy to have set is that they will be the first European champions not to defend their title, having finished fifth in the English Premiership and, thus, not qualified for next season's Champion's League. But the celebrations on Merseyside will surely not be dampened by the news. Europe's major domestic competitions have also drawn to a close with the 'usual suspects' lifting the crowns in most countries and only a few upsets along the way. Champions of the noteworthy leagues are as follows: Belgium - Brugge KV; England Chelsea; France - Lyon; Germany - Bayern Munich; Holland - PSV Eindhoven; Italy - Juventus; Portugal - Benfica; Scotland - Rangers. Here in Serbia & Montenegro, Partizan Belgrade set a new record by winning the national title without losing a single match, while lowly Zeleznik performed their own giant-slaying feat by beating Red Star 1-0 to claim the National Cup.â&#x20AC;˘

CorD | June 2005

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Commodore 64 Direct to TV

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So you have a great idea for a homemade horror movie - Open Water on a parachute-jump, with an attack by a vicious flock of gulls. The problem is you can't capture the sheer terror of the pecking without surround sound. For this you'll need the DVD403: the first camcorder to include Dolby Digital 5.1 Creator, which records audio from five directions and encodes it onto a 3in DVD. Top of Sony's new 2005 range, it also has a 3.3megapixel CCD, a 2.7in LCD and a Carl Zeiss Vario-Sonnar T lens with built-in flash.• Retail price: tba

It's funny how selective we are in our nostalgia. Take 1982. While we leave Kenny Rogers and Tootsie festering in their barrel, we pluck out the Commodore 64. What's wrong with magnificently trimmed silver beards? Still, the C64 it is, now shrunk into a replica joystick and loaded with 30 games, including the rather good Impossible Mission, Speedball and Pitstop. Wonder of miniaturization? Certainly. Shite audio and a maximum video resolution that'll look about as big as a postcard on your hi-def plasma? Hell, yeah. We're off to the patent office to put in an application for the first BBC Micro-in-a-keypad.• Retail price : cca €45

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CorD | June 2005

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Scott Scale Limited www.scottusa.com It's spring again, the sun's shining but you still haven't even started to shift that spare flab tyre. Sure, winter's cold and experience is no fun but that didn't stop Scott's new mountain bike from slimming down. Just look at him, weighing in at a little over 19lb, with the lightest frame of any production mountain bike. It's as light as 2.13lb of very light feathers and, consequently, very light indeed. Puts you to shame, it does.But, then, you're not built using Scott's CR1 carbon racing tech. So you have some excuse.• Retail price : cca €4500

Techno Talk

Fujitsu Siemens T4010 www.fujitsu-siemens.co.uk

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Tablet PCs are like buses. You wait for ages and nothing. You wait around for a bit more and one comes sauntering down the road at a leisurely pace, misses your stop and forces you to the four winds before the driver pulls up sharply and embeds your face in his wing mirror. OK, so we've established that tablet PCs are nothing like buses at all. In any case, we hadn't seen a new one in some time before the T4010 turned up, and we were particularly impressed by its marriage of small form factor and potent spec, namely a nippy 1.6GHz processor and 512 MB of RAM, coupled with a 60 GB hard drive. It's certainly no slouch.• Retail price: tba

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www.timex.com Jolly useful things, compasses. Yes, they're kind of redundant in today's GPS era, but what happens when you can't get a signal because the US military has gone nutso and encrypted its satellites? You'll be needing one of mankind's oldest GPS systems and a little help from the earth's magnetic field, that's what. This offering from Timex is certainly not the first built into a watch - Sunto and Casio do stacks of them - but it does have a proper old-school compass needle rather than a dull digital indicator. Useful for hiking as well as survival in militaryindustrial-complex-goes-psycho scenarios.• Retail price: cca €60

Pino Robot

www.firebox.com Named after Pinocchio, Pino is a relative robot veteran, having been first manufactured in 2002. He can be programmed via PC and teaches himself movement and tricks through trial and error. Be careful with the little 30inc chap - he’ll become shy, friendly or naughty depending on how he is treated. You only have to ignore him to make him cry.• Retail price: cca €60

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Motorola A1000 www.three.co.uk Another Symbian-powered 3 benefit form Motorola. The A1000 hes none of the slab-like aesthetics of the A925 and makes a decent fist of its limited network. The onboard cam hits 1.2 megapixels, although previous Moto offerings have left us cold in the imaging stakes. Just a little too much light seems to be streaming into the Motorola’s lens. Try staring at the sun for five minutes and then looking around and you’ll get a similarly washed out effect. However, detail, a problem with previous Motorolas, is spot on, as shown by the picture of our exquisitely detailed tand, above.• Retail price : cca €75

Motorola Ojo PVP1000 www.motorola.com There's always mad stuff at the CES show in Las Vegas. Even make-aspade-look-like-a-spade companies such as Motorola go a bit crazy, hence the Ojo. Its functionality, however is wholly sensible. Plugged into a broadband connection, it allows you to make 176x144 30fps MP4 video calls, and has a 5.6in inverted widescreen display for squint-free viewing. The neck allows you to sit comfortably while you talk and watch, and features a cordless handset, should you fancy a video-free chat. The Ojo also has a photobased caller ID and phonebook, and customizable ringtones.• Retail price : tba

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CorD | June 2005

www.electrolux.co.uk If only a diminutive disc could wheel around, using ultrasonic signals to avoid objects, suck up all the debris from last night’s party and find its way back to its recharging station. Well, that’s the Trilobite in a nutshell.• Retail price : cca €1500

Techno Talk

Sony DCR-DVD403 url:

www.sony.com So you have a great idea for a homemade horror movie - Open Water on a parachutejump, with an attack by a vicious flock of gulls. The problem is you can't capture the sheer terror of the pecking without surround sound. For this you'll need the DVD403: the first camcorder to include Dolby Digital 5.1 Creator, which records audio from five directions and encodes it onto a 3in DVD. Top of Sony's new 2005 range, it also has a 3.3megapixel CCD, a 2.7in LCD and a Carl Zeiss Vario-Sonnar T lens with built-in flash.•

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HONDA ASIMO www.honda.com Honda ASIMO (Advanced Step in Innovative Mobility) was first manufactured in 1993 as a lumbering prototype with a suitcase for a head. Announced at the end of 2004, the next-generation version has made big, robotic strides towards human-esque movement. New Posture Control technology means it’s capable of running at 3km/hour, while obstacle-detection and visual sensorsallow it to interact autonomously with its environment.• not for sale

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www.fossil.com This Palm OS-powered watch from Fossil is a real winner, sating the desire of everyone who once coveted Dick Tracy's wrist communicator but had to make do with a calculator watch. First announced in 2002, the Wrist PDA looked to have been canned in 2003, when it made a remarkable appearance at CES with pretty much the original spec - 160x160 LCD screen, 66MHz processor, 8MB memory and USB connectivity, all powered by Palm OS 4.1. Another cheaper version with the same spec but different styling is also available under the Abacus brand.• Retail price : cca €360 CorD | June 2005

Mexican Cuisine

SOMBRERO STYLE By Spomenka Bojanic; Photo M. Kotlaja

Mexico has contributed greatly to international cuisine. Many ingredients used in various world cuisines originate from ancient Mexico, such as beans, corn, peanuts, cocoa, chilli peppers, pumpkins, papayas, olives, avocado, potato, rosemary, mushrooms, Tabasco peppers, vanilla and honey. Mexican cuisine also includes a wide variety of meats, including turkey, venison, rabbit, duck, pheasant and, of course, fish and seafood. Besides all kinds of meat, fish and seafood, Mexican fare also includes a wide selection of vegetables, generally served fresh as a side dish. Such a large diversity of vegetables, colours, aromas and tastes will not be found anywhere else. Tomatoes and peppers are the most common ingredients of Mexican dishes. Famous Mexican salsa (sauce) is an obligatory addition to almost every meal. Mexico also boasts a large number of bean species, each prepared differently, depending on the dish for which it is used. Spices are essential to the preparation of every Mexican dish. The most widely used is fresh coriander, which is often substituted with fresh parsley leaves when unavailable. As previously mentioned, one of the most notable characteristics of Mexican cuisine is hot peppers. These spicy chilli peppers are extremely healthy and contain vitamins C and E. Their specific, tangy taste stirs the appetite and strengthens the taste of the meal, as well as regulating one's metabolism. Chilli peppers are indigenous to Central America and, since helping to form the specific taste of Mexican cuisine, they have become a favourite ingredient of dishes throughout the world. Over 100 species of pepper are grown in Mexico alone, and still several more in Southern and South-Western America, the Caribbean, South-East Asia, China, India, North

CorD |June 2005

Africa, Spain, etc. They vary on the basis of strength, size and colour, and the names vary according to their shape. A single species may have several names, depending on whether it is fresh or dried. One of the ways to experience the taste of Mexico in the centre of Belgrade is the Burrito Bar, which was opened in 1997 as an idea of the owners who had travelled many times to Mexico and decided to transfer the spirit of the Central American country to Belgrade. The restaurant is characterised by its intimate atmosphere and congenial team. This fine eatery's menu has been compiled, and food prepared, with the generous assistance of culinary master Marie Eugenie Eskovedo De Andric, who hails from Mexico City. The Restaurant also offers discounts (of as much as 20%) for groups of 20 or more people. For those of you who simply can't wait to visit the Burrito Bar to sample Mexican fare, we at CorD have prepared a short selection of recipes for you to try at home. In order to discover the secret of preparing other Mexican delicacies, visit the Mexican restaurant: "BURRITO BAR" 27. Marta Street, 71, Belgrade 11000 Contact phone: (+381 11) 337 65 46

NACHOS GRANDE 150g of Tortilla chips, 50g red salsa (red salsa is a combination of tomato puree and various sorts of peppers, hot or sweet with spices), 10g sour cream, 10g beans puree - boil red beans, strain the water and mix with spices of choice, 10g guacamole sauce (avocado puree sauce)

BURRITO BAR COMBOS (BB MIX) Fresh vegetables - 50g white cabbage, 25g red cabbage, 10g sweet corn, 10g shredded carrot, 5g grated cucumber - Salad dressing 0.5dl Mexican sauce - 80g wheat tortillas 1. tortilla: 200g of boiled chicken breasts +50g mushrooms 2. tortilla: 200g of stewed veal + 50g of mushrooms 3. tortilla: 200g of bean puree + 50g of stewed ground veal - top tortillas with two chicken breasts and 2 veal chops. Cut fresh vegetables into small pieces and arrange them, pouring Mexico sauce salad dressing over the top. Tortillas should be filled with various types of meat, stewed and mixed with mushrooms. Bean puree is prepared by cooking red beans, straining excessive water and mixing with spices of choice. Chicken and veal chops are added just before serving. They are fried with a drop of fat or oil.

FIESTA 100g white cabbage, 50g red cabbage, 20g sweet corn, 20g shredded carrot,10g grated cucumber, 1dl blue cheese sauce, 50g small cubes of toast Finely chop fresh vegetables, arrange well and top with blue cheese sauce. Decorate with finely cut toast.

TORTILLA One tortilla: 100g of flower (corn or wheat), 10g sugar, 5g salt, 2g yeast, a trickle of oil and a trickle of water. Mix the dough and leave to rise for at least four hours, then stretch it and cook in a frying pan with a little oil until it becomes light golden-brown.

FLAN 1L milk, 6 eggs, 200g sugar, 10g vanilla sugar, 100g fresh peanuts CorD | June 2005

New Apparel

Doda Komad

fashion Studio 'Click', in conjunction with Hypo Alpe-A Adria Bank, used the opportunity offered by April's Hypo AlpeAdria 17th Belgrade Fashion Week to realise their idea of 'improving' the quality of Belgrade life, particularly for those who attended the week-llong fashion event. By supporting Belgrade Fashion Week for the third time, Hypo Alpe-A Adria Bank has again lent its weight to one of the most important events in the country and, indeed, granted "hyper" possibilities to contributors and participants: those building their reputations and presenting their creations at the event; fashion houses hoping to boost their positions on the domestic fashion market; upand-ccoming young designers showing their first works. All these factors combine to ensure that Belgrade, at least for a week, is a match to the world's great fashion metropolises, like London or Paris. Thanks to the Kent Explorer Award for Innovation and Fashion Studio 'Click', the spirit of innovation, creative freedom and fashion lifestyle values arrived in Belgrade. The Innovation Award was first introduced at last year's Fashion Week and this year's winners - the Prokovic sisters (JSP) and Nenad Radujevic, founder of Belgrade Fashion Week - were rewarded with a month-llong trip to New York and Paris in February. These acclaimed designers brought to the 17 th Hypo Alpe-A Adria Belgrade Fashion Week new ideas, new apparel and a new ambience, while Belgrade's Intercontinental Hotel played great host once again to fashion professionals and fans of style alike. Belgrade Fashion Week was opened with the celebration of Belgrade Days under the slogan "Belgrade Forever", which ran from 16th to 19th April and was organ ised by the Belgrade City Council, which was once again the patron of Fashion Week, together with the Serbian Ministry for Trade, Tourism and Services. This year's designs were adjudged to be new and unusual in form and material, with interesting atypical solutions as a basic element of the designs. These elements have ensured that fashion is leaving behind the recent notion that it is purely industrial and is again becoming a recognised art form. The Spring Fashion Week included the works of around 40 designers, whose works were presented to the Belgrade audience. One of the picks of the event was the new trendy Parisian brand ***** L (five-sstar deluxe), inspired by 5-sstar hotels. For this collection, Thierry Le Pil's men's selection delighted fashion followers, reflecting the designer's conceptual approach to contemporary fashion.

CorD |June 2005

Fashion week Other young, talented designers took part in the Week, bringing with them new styles and fresh ideas which are needed to reinvigorate the local fashion industry. Besides, fashion wouldn't be what it is if it didn't bring something new and different every season. Despite numerous organisational difficulties, the Fashion Week programme was again rich in terms of collections from local designers and worldwide brands, such as Tommy Hilfiger and Fila. Successful domestic houses included PS Fashion and Jasmil, with its already recognisable underwear line - Extreme Intimo. JSP were supported by wolrd leader in beauty products - L'Oreal Paris, which provided the necessary make-uup to help the sisters reinforce their brand at the very top of the domestic market. Beauty and modernism have become essential in the time in which we are living. Luckily, fashion advancements made it easier to achieve these qualities at this year's Fashion Week, with Max Factor and Redken assuming responsibility for the sparkling look of the models. Recognising responsibilities beyond the world of fash ion, Fashion Studio 'Click' chose to use Belgrade Fashion Week as a forum to support the humanitarian "Fight Against Human Trafficking" - an action which started last year in co-o operation with the MTV Foundation, NGO Astra and domestic TV Pink. Films dedicated to the cause, which were shot in Belgrade last year and hosted by supermodel Helena Christensen, were aired prior to the start of Fashion Week and also broadcast on TV Pink's channel. The world premier of the humanitarian films was on MTV Europe on 13 th May. Belgrade Fashion Week also saw the Serbia & Montenegro launch of world famous fashion magazine "ELLE", which arrived on the domestic market thanks largely to the quality of the Fashion Week here in Belgrade. Fashion is a huge global business, and successful countries achieve unparalleled success. Here in the state union the world of fashion is extremely turbulent, reflect ing the turbulent times in which we live. The transition process has a great influence over quality of life, and thin wallets don't allow lovers of fashion to enjoy fine styles as much as they may like. However, nobody can take away the right to hedonistically enjoy beautiful things and be, at least in spirit, up there with the likes of New York or Paris; money isn't everything - there is much to be said for originality and innovation. Here we invite you to enjoy the styles and scenes from this year's 17th Belgrade 'Hypo Alpe-A Adria' Fashion Week.

Tommy Hilfiger

CorD | June 2005

Tommy Hilfiger

Iva Stefanovic

Valentina Obradovic

Extreme Intimo

FILA

Thierry le Pil

Fashion week

CorD | June 2005

Fashion week

Boris Nikolic

Bata Spasojevic

Thierry le Pil

Doda Komad

Ana Ljubinkovic

Tommy Hilfiger

Boris Nikolic

CorD |June 2005

Belgrade Directory

Theatres, Music & Museums

THEATRES • ATELJE 212, Svetogorska 21, tel. 324-7342 • BELGRADE DRAMA THEATRE, Milesevska 64a, tel. 2423-686 • BITEF THEATRE, Skver Mire Trailovic 1, tel. 3220-608 • DADOV, Djure Salaja 6/I, tel. 3243-643 • DAH THEATRE, Humska 12, tel. 2441-680 • ISTER THEATRE, Koste Glavinica 7A, tel. 650-757 • JUGOSLAV DRAMA THEATRE, Kralja Milana 50, tel. 644-447 • KPGT, Radnicka 3, tel. 3055-082, 3055-070 • NATIONAL THEATRE (Opera, Ballet, Theatre Plays), Francuska 3, tel. 620-946 • CHAMBER OPERA MADLENIANUM, Zemun, Glavna 32, tel. 316-25-33 • THEATRE ON TERAZIJA, Trg Nikole Pasica 3, tel. 3245-677, 410-099 • SCENA RADOVIC, Aberdareva 1, tel. 323-8817 • SLAVIJA THEATRE, Svetog Save 18, tel. 436-995 • THEATRE T, Bulevar kralja Aleksandra 77a, tel. 403-570 • THEATRE BOJAN STUPICA, Kralja Milana 50, tel. 644-447 • THEATRE KULT, Bulevar kralja Aleksandra, 77a, tel. 242-860 • ZVEZDARA THEATRE, Milana Rakica 38, tel. 2419-664 CHILDREN’S THEATRES • BOSKO BUHA, Trg Republike 3, tel. 632-855 • MALO POZORISTE DUSKO RADOVIC, Aberdareva 1, tel. 323-20-72 • POZORISTANCE PUZ, Bozidara Adzije 21, tel. 2449-464 • POZORISTE LUTAKA PINOKIO, Karadjordjeva 9, tel. 2691-715 • THEATRE RODA, Pozeska 83a, tel. 545-260 CINEMAS • AKADEMIJA 28, Nemanjina 28, tel. 3611-645 • BALKAN, Brace Jerkovica 16, tel. 3343-491 • DOM OMLADINE, Makedonska 22, tel. 324-8202 • DOM SINDIKATA, Trg Nikole Pasica 5, tel. 323-4849 • 20. OKTOBAR, Balkanska 2, tel. 687-182 • DVORANA KULTURNOG CENTRA, Kolarceva 6, tel. 2621-174 • FONTANA, Pariske komune 13, tel. 602-397 • JADRAN, Trg Nikole Pasica, tel. 624-057 • JUGOSLAVIJA, Bulevar Mihaila Pupina bb, tel. 2676-484 • KOZARA, Terazije 25, tel. 323-5648 • MALA MORAVA, Spasicev pasaz, tel. 623-198 • MALI ODEON, Kneza Milosa 14-16, tel. 643-280 • MILLENNIUM, Knez Mihailova 19, tel. 2623-365 • MUZEJ KINOTEKE, Kosovska 11, tel. 324-8250 • ODEON, Narodnog fronta 45, tel. 643-355 • PALAS SUMADIJA, Turgenjevljeva 5, tel. 555-465 • RODA, Pozeska 83a, tel. 545-260 • SAVA CENTAR, Milentija Popovica 9, tel. 311-4851 • TUCKWOOD CINEPLEX, Knez Milosa 7, tel. 3229-912 • VUK, Bul. Kralja Aleksandra 77a, tel. 2424-860 • ZVEZDA, Terazije 40, tel. 687-320

CorD | June 2005

CULTURAL CENTRES • BRITISH COUNCIL, Terazije 8, tel. 3023-800 • CENTRE FOR CULTURAL DECONTAMINATION, Bircaninova 21, tel. 681-422 • STUDENTSKI GRAD CULTURAL CENTRE, Bulevar AVNOJ-a 179, tel. 2691-422 • BELGRADE YOUTH CENTRE, Makedonska 22, tel. 3220-127 • DOM VOJSKE JUGOSLAVIJE, Brace Jugovica 19, tel. 323-99-71 • FRENCH CULTURAL CENTRE, Zmaj Jovina 11, tel. 3023-600 • GERMAN CULTURAL CENTRE, Knez Mihailova 50, tel. 2622-823 • ITALIAN CULTURAL CENTRE, Njegoseva 47/III, tel. 244-23-12, 444-72-17 • BELGRADE CULTURAL CENTRE, Knez Mihailova 6/1, tel. 621-469 • INTERNATIONAL CULTURAL CENTRE - JUBIN, Terazije 26, tel. 687-836, fax. 687-760 • RUSSIAN CULTURAL CENTRE, Narodnog fronta 33, tel. 642-178, 688-300 • REX, Jevrejska 16, tel. 3284-534 • STUDENTS CULTURAL CENTRE, Kralja Milana 48, tel. 659-277 • FOUNDATION OF ILIJA M. KOLARAC, Studentski trg 5, tel. 630-550 • GUARNERIUS, Dzordza Vasingtona 12, tel. 33-46-807 EXHIBITION GALLERIES • GALLERY OF THE SERBIAN ACADEMY OF ARTS & SCIENCES, Knez Mihailova 35, tel. 334-2400 • BELGRADE GALLERY, Andricev Venac 12, tel. 323-8789 • BAZALT GALLERY, Lazarevacki drum 7, tel. 553-689 • PAVILJON CVIJETA ZUZORIC, Mali Kalemegdan, tel. 2621-585 • DOMA OMLADINE GALLERY, Makedonska 22, tel. 3248-202, ext. 25 • THE GREAT GALLERY OF STUDENTSKI GRAD, Bulevar AVNOJ-a 179, tel. 2691-442 • GALERIJA FAKULTETA LIKOVNIH UMETNOSTI, Knez Mihailova 53, tel. 635-952 • FRESCO GALLERY, Cara Urosa 20, tel. 2621-491 • GALERIJA GRAFICKOG KOLEKTIVA, Obilicev venac 27, tel. 627-785 • GALERIJA HAOS, Cara Lazara 12, tel. 627-497 • GALERIJA KULTURNOG CENTRA BEOGRADA, Knez Mihailova 6, tel. 2622-926 • JUGOSLOVENSKA GALERIJA UMETNICKIH DELA, Andricev venac 4, tel. 3238-789; Dositejeva 1, tel. 627-135 • GALERIJA-LEGAT MILICE ZORIC I RODOLJUBA COLAKOVICA, Rodoljuba Colakovica 13, tel. 663-173 • GALERIJA-LEGAT PAJE JOVANOVICA, Kralja Milana 21, tel. 3340-176 • GALERIJA-PETRA DOBROVICA, Kralja Petra 36, tel. 2622-163 • SANU GALLERY OF SCIENCE AND TECHNOLOGY, Djure Jaksica 2, tel. 3283-490 • GALERIJA PROGRES, Knez Mihailova 22, tel. 182-626 • GALERIJA PRIRODNJACKOG MUZEJA, Mali Kalemegdan 5, tel. 328-4317 • MUSEUM OF CONTEMPORARY ART, Pariska 14, tel. 630-940 • GALERIJA STARA KAPETANIJA, Zemun, Kej oslobodjenja 8, tel. 612-023 • GALERIJA SULUJ, Terazije 26/II, tel. 685-780 • GALERIJA 73, Pozeska 83a, tel. 557-142 • GALERIJA ULUS, Knez Mihailova 37, tel. 2621-954 • GALLERY OF THE YUGOSLAV ARMY, Brace Jugovica 19, tel. 323-47-12 • GALERIJA ZADUZBINE ILIJE M. KOLARCA, Studentski Trg 5, tel. 185-794 • ZEPTER GALLERY, Kralja Petra I no.32, tel. 328-1414

MUSEUMS CULTURAL&HISTORICAL MUSEUMS: • VUK AND DOSITEJ MUSEUM, Gospodar Jevremova 21, tel. 625-161 • ETNOGRAPHIC MUSEUM- Studentski trg 13, tel. 328-1888 • SERBIAN ORTHODOX CHURCH, Kralja Petra 5, tel. 3282-595 • NATIONAL MUSEUM, Trg Republike 1a, tel. 624-322, 438-886 • MUSEUM OF PEDAGOGY, Uzun Mirkova 14, tel. 627-538 • THE MANSION OF DUCHESS LJUBICA, Kneza Sime Markovica 8, tel. 638-264 • THE MANSION OF DUKE MILOSH, Rakovicki put 2, tel. 660-422 • DJURA JAKSIC HOUSE, Skadarska 34, tel. 324-7334 • MANAK’S HOUSE, Gavrila Principa 5, tel. 633-335

BELGRADE DRAMA THEATRE Date Thursday, 2nd Friday, 3rd

Titles

Time

Venue

The Pillowman