CorD Magazine No.9 by CorD Magazine

interviews | opinions | news | comments | events October 2004

MUTUAL CONCERNS

Editor in Chief: Dragan Bisenic d.bisenic@cma.co.yu Assistant Editor: Mark Pullen m.pullen@cma.co.yu Editorial: Milan Culibrk, Dragan Bisenic, Nina Nicovic, Nebojsa Kotlajic, Jelena Grujic, Maja Vukadinovic,Vesna Musulin, Zoran Milosavljevic, Slobodan Kostic, Dragan Novakovic, Jelica Putnikovic, Lela Sakovic

“The plan for decentralisation of Kosovo drafted by the Serbian Government is a very important initiative. It does not solve every problem, but my personal impression is that it provides solutions to several problems.”

H.E. Hugues Pernet Ambassador of France to SCG

Translators: Milos Milosavljevic, Dejan Zubac Photo: Danka Ninkovic, Dragan Milosevic, Andy Dall Photo Agencies: FoNet, Tanjug and Beta Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Marketing Director: Sasa Maric s.maric@cma.co.yu Advertising: Milos Krstic m.krstic@cma.co.yu Office Manager: Sonja Rados sonja.rados@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Director: Ana Novcic ana.novcic@cma.co.yu Printing: Politika AD CorD is published by CMA (Consulting & Marketing Agency), Kneginje Zorke 11a, 11000 Belgrade, Serbia & Montenegro. Phone: +(381 11) 444 21 53 +(381 11) 444 50 47 +(381 11) 38 07 066 Facsimile: +(381 11) 456 564 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved © CMA 2003/2004

32 NOT READY FOR EUROPE “SCG has spent two years unsuccessfully trying to find a common language. It is obvious that these two state members have opposing opinions regarding the quality, benefits and perspective of the state union.”

Mihailo Crnobrnja Serbian Government European integration advisor

TRADING ARMS

“It is up to the State to realise that it is in the country's best interest to support the military industry, as exporters, considering that contracts in this branch are long-term and a crucial source of much needed finance.”

Stevan Nikcevic General Director of Jugoimport-SDPR

CorD | October 2004

contents 24 ROYAL ROOTS “The European Union has to address what it can do for Serbia and transform their constant veiled threats into constructive, objective, workable results for our citizens that produce meaningful results, instead of incessantly repeating what will happen to us if we do not do perform this or that request.”

Crown-Prince Aleksander Karadjordjevic II

E X P O R T C R I S I S Radovan Jelasic Serbian National Bank Governor LOOMING

”Only a significant increase in export can prevent Serbia from entering a debt crisis, forecast by economists to happen during the critical period after 2007, when the annual instalment for repaying foreign debt will pass the 1-billion-dollar mark”

38 LOOKING AHEAD “Lebanon is a country of religious minorities. There are 19 official minorities and religious communities living peacefully in Lebanon. Any foreign element interfering with this formula could affect the balance”

H.E. Chehade Mouallem Lebanese Ambassador to SCG

ECONOMIC FOUNDATIONS

Obrad Spremic Siemens Managing Director, Serbian operations

“The importance of the local company is huge here, since nobody can better estimate which business strategy to adopt than a local partner who is well acquainted with the local scene.”

68 LAND OF THE RISING SUN The latest economic figures show that the Japanese economy has come out of the dark tunnel of recession and has stepped onto the path of stable recovery, after falling on the lowest branches in January 2002.

Japan CorD | October 2004

Comment

The Hague bear hug The outstanding cases of Ratko Mladic and four other generals indicted by The Hague Tribunal, coupled with genocide charges filed against Serbia & Montenegro by the governments of Croatia and Bosnia & Herzegovina, and the law suit filed with the International Court of Justice by SCG against NATO members states for the 1999 bombardment of the country, all served to bring state union diplomacy to a virtual standstill, thus halting any chances of Euro-Atlantic integration in their tracks.

Zoran Sekulic, FoNet Editor-in-Chief

on The Hague indictment against him. Further exacerbating Serbia's situation is that leaders of state union partner Montenegro are growing increasingly unwilling to be held hostage by their partner nation and, consequently, Podgorica has increased its pressure on Belgrade vis-Ĺ&#x2022;-vis The Hague: vowing to withdraw its members of the National Council for Co-operation with The Hague unless the Serbian side initiate several urgent, tangible steps. It is unlikely that this state of limbo can continue indefinitely, with Belgrade soon likely to find its back against a wall of Hague related pressure. Earlier this summer, Washington and others fired proverbial shots across Serbia's bows. The U.S. Government issuing a "60-day term", The Hague Tribunal warning that chief prosecutor Carla del Ponte is likely to pay an unofficial visit to Belgrade on 1st October, and the EU indiState union institutions appear wholly incapable of nav- cating that senior officials Javier Solana Chris Patten are to be expected in igating their way through the labyrinth of The Hague and Belgrade a few days after del Ponte. requests, despite the politically bold and potentially Adding to the mounting pressure, damaging efforts of SCG Foreign Minister, Vuk Draskovic Europe's Monitoring Committee's latest report - to be debated in Strasbourg by the Council of Europe's Parliamentary Assembly on 4th Minorities Minister Rasim Ljajic, now chairman of the October - insists that co-operation between SCG and The National Council for Co-operation with The Hague Hague Tribunal is rapidly deteriorating as a consequence Tribunal. of the efforts of a segment of Serbia's political elite. Perhaps one explanation is that internal differences of Excuses are wearing thin and delaying tactics are runopinion, unending elections and the obvious weakness of ning out of time. The 'hot potato' of The Hague issue may the minority Serbian Government have tied the hands of burn tongues, but it must be eaten, rather sooner than those clinging to power and desperately attempting to prelater. Only once this ghost has been laid to rest can serve their roles. Deferring direct action and calculating progress be made; various international concessions be their approach, the Government has sought to buy more requested, and probably granted, with regard to the and more time, while circulating internal statements of International Court of Justice lawsuits, the Kosovo issue dissent regarding The Hague. and the nation's approach to the EU or potential for receivMeanwhile, some of those indicted by the tribunal have ing international aid. made defiant public appearances and threatening ultimaAs such, a swift disentanglement from "The Hague tum-like statements; Radovan Karadzic, former Bosnianbear hug" is crucial not only to achieving fresh normalisaSerb political leader recently published his latest book and tion of domestic diplomacy, but also to rekindling the Goran Hadzic, former leader of Croatia's Krajina Serbs, prospects of the state union as a whole.â&#x20AC;˘ nonchalantly vanished into thin air as the\seal was broken

he global decision-making centres crucial to SCG principally Brussels, Washington and Strasbourg have jointly issued indubitable messages insisting that SCG co-operation with The Hague has ground to an unacceptable halt and that Belgrade should not expect any further advance towards NATO's Partnership for Peace, progress towards EU accession or to receive any international assistance until The Hague situation has been unequivocally resolved. In recent months, this message has apparently not sufficiently penetrated the corridors of power in Belgrade, nor has it reached the SCG general public. State union institutions appear wholly incapable of navigating their way through the labyrinth of The Hague requests, despite the politically bold and potentially damaging efforts of SCG Foreign Minister, Vuk Draskovic, and former Ethnic

CorD | October 2004

Interview

Hague impasse Rasim Ljajic, SCG Minister for Human and Minority Rights

Rasim Ljajic, Serbia & Montenegro Human and Minority Rights minister and head of the National Council for Co-operation with The Hague Tribunal, has said that the Council of Europe report claiming state union co-operation with The Hague Tribunal has stagnated does not correspond with the facts. According to Ljajic: "there have been problems with co-operation, in terms of extradition, but activities under the jurisdiction of the Council, namely the provision of documentation and steps to exempt witnesses from obligations to keep state or military secrets, have seen an upward trend". By Safeta Bisevac

jajic explained to CorD this month "It is true that co-operation has been problematic with extraditions, since the whereabouts of Ratko Mladic are still unknown, while a major omission was made with Goran Hadzic. The investigation that has to determine how he escaped is still in progress. I showed the results of one such investigation to Tribunal officials during a recent visit to The Hague, but they did not consider them reliable. As for the four generals, the best thing would be for them to willingly surrender and have the Tribunal leave the case to the national judicial system with guarantees from the state". You recently said that SCG has to provide concrete signs that it was willing to co-operate with the Tribunal by extraditing one of those indicted by 1st October? I said that because Carla del Ponte is visiting Belgrade on 1st October and the meeting will be as unpleasant as were my talks in

Everyday is D-day: Head of SCG Council for Cooperation with ICTY Rasim Ljajic up with the elections. No one wants to deal with issues that bring negative political points and The Hague is one of them. Hence, it is important that we provide concrete evidence of co-operation with the Tribunal as soon as possible.

If the extraditions of Mladic, the four generals and Hadzic are not going smoothly due to familiar reasons, why don't the Serbian authorities hand some of the military personnel of the Belgrade has neglected the problems in Novi Pazar, the over Army of the Republic of Srpska [Bosnia] behaviour of the local government, the corruption and who stand accused of committing war crime. It is common knowledge that citizens pay several crimes in Srebrenica? I was asked that same question in The thousand euros for ordinary permits. However, the state Hague. More or less all of the officials I chose not to react, fearing problems on ethnic grounds. talked to said "okay, you don't know where Mladic is, Hadzic escaped, the generals are The Hague, due to a high level of distrust towards the state union a problem, but what of the 14 Bosnian-Serbs who are susgovernment. There are no deadlines or a particular D-day. Every pected of hiding on SCG territory?" I discussed this possibilday is D-day for us. I am wary of a new election cycle, since that ity with everyone I talked to in Serbia & Montenegro before would paralyse the process of co-operation. Everyone will be tied departing for The Hague. I raised this issue at Ministerial

CorD | October 2004

Council sessions and the meeting of the National Council for Cooperation with The Hague. When I said that we needed extraditions, I was referring to these cases. The District Court issued a warrant for their arrest in 2002. There is no reason for any of them to be let off the hook and not extradited to The Hague Tribunal. I think the handing over of these indicted personnel would give us a breather and reduce pressure on the country. Pressure has been mounting, particularly after Goran Hadzic's escape, and we have to show concrete forms of cooperation when we are on the back foot in our relationships with the Tribunal. Obviously, the country's leaders do not have a unified stance over the issue of co-operation with The Hague. SCG President Svetozar Marovic and yourself have announced a meeting to deal with that? I talked to President Marovic, who will probably schedule a session of the state leadership to discuss three issues: The Hague, European integration and elections at state union level. The Hague is top priority at the moment and it is very important that we reach a consensus. I believe that the dominant opinion is that without co-operation with The Hague, Serbia & Montenegro could lose a lot of ground in the international political arena. If we do not intensify co-operation with the Tribunal, the state union could come into jeopardy, since there is growing sentiment among Montenegrin citizens that they are hostages of Serbia. In turn, this would make solving the issue of Kosovo harder as well, since without co-operation, Serbia will lose its international reputation and political credibility. When are you scheduling the next session of the National Council and do you expect representatives of Montenegro to stay? We are currently preparing the session. Whether it will take place next week or after Carla del Ponte's visit, remains to be seen. I am confident that the Montenegrin representatives will take part in the National Council's activities. The damage would be great if they left. The activities of the National Council would grind to a halt as a result of such a decision and we must do everything to prevent that from happening. What caused the recent conflicts between Sulejman Ugljanin's and your own supporters in Novi Pazar?

Self defence as attack: Slobodan Milosevic in the court room We have a problem with the kind of policy that represents a miniature version of Milosevic's rule in Serbia. The use of force and intimidation, creating fear and an atmosphere of insecurity among the voters, the unlawful use of the media for these purposes, public gatherings that are meant to turn up the heat. The problem is that there are people who equate politics and authority with

There are no deadlines or a particular Dday. Every day is D-day for us. I am wary of a new election cycle, since that would paralyse the process of co-operation. Everyone will be tied up with the elections. life. Ugljanin works that way. For him, the political arena is a boxing ring and not a haven for compromise. He ran for Mayor of Novi Pazar and, if he loses, his political career is practically over. The stakes are high and that is why this kind of atmosphere was needed. He cannot accept defeat, but by the looks of the election campaign so far, it doesn't seem that he can win either.

TRIBUNAL COMMENTS Vojislav Kostunica, Serbian Prime Minister: "The claim that Ratko Mladic is not in Serbia is based on the carrying out of a very credible reinvestigation that went further and offered more information than anything coming from The Hague Tribunal or the office of The Hague prosecutor". 2nd September 2004. Predrag Boskovic, Deputy SCG Foreign Minister: "The entire process of the European integration of Serbia & Montenegro is jeopardised because of non-fulfilment of our internationally recognised obligations regarding The Hague Tribunal. We do not see the point in participating in the National Council [for Co-operation with The Hague Tribunal] if international obligations are not fulfilled". 5th September 2004. Vojislav Kostunica

Vojislav Kostunica, Serbian Prime Minister: "When talking about surrendering those indicted, I consider voluntary surrender to be a far better solution [than arrest and extradition]. It offers those indicted certain privileges before the court, but also obliges the state to offer them appropriate help. Moreover, voluntary surrender is the best solution for the state itself in view of international obligations". 6th September 2004. Rasim Ljajic, Chairman of the National Council for Co-operation with The Hague Tribunal: "If non-co-operation with The Hague continues, SCG risks being completely omitted from the European integration process. These days, foreigners give us their business cards with the message to get in touch when we have resolved The Hague problem". 7th September 2004.

Zoran Stojkovic

Zoran Stojkovic, Serbian Justice Minister: "If the generals do not give themselves up the state will have to take certain measures to fulfil its obligations. I expect that, by active political means, we will succeed in putting them on trial here". 7th September 2004. CorD | October 2004

Interview Your supporters were among the rioters as well? It is because I advised them to volunteer, they defended the head office of SDP, fired shots into the air and when they came to me I told them to go to the police and give a statement. They were arrested, while those who started the trouble are now hiding in the woods. The police used excessive force and we shall ask for the Chief of Police in Novi Pazar to be replaced. It is very clear that Ismet Granic started the incident. He fired two magazines of bullets. There are witnesses who saw this happen. The police are not

Pressure has been mounting, particularly after Goran Hadzic's escape, and we have to show concrete forms of cooperation when we are on the back foot in our relationships with the Tribunal. revealing his name, supposedly because the investigation is in progress, but then they stated that he was hiding in the woods. If he is innocent, why doesn't he turn himself in? According to Minister of Justice Zoran Stojkovic, one could almost conclude that criminals hold the whole area and there is almost nothing that resembles a state. Are these conclusions perhaps too harsh? I think Minister Stojkovic has accurately defined the problem. We can agree or disagree on the final conclusion, but the definition is correct. Firstly, despite earlier warnings, Belgrade has neglected the problems in Novi Pazar, the behaviour of the local government, the corruption and crime. It is common knowledge that citizens pay several thousand euros for ordinary permits. However, the state chose not to react, fearing problems on ethnic grounds. The state wanted to make sure there was no inter-ethnic tension, but no one was concerned about how state institutions were operating at local level. What about his claims about criminal clans? I am not aware of any criminal clans, unless we count the local government as one, since it is almost totally privatised. Several families have all the power and handle municipal property as if it were their own. All this is a good reason for state organs to intervene.â&#x20AC;˘

Needless Internationalisation Ljajic said the degree to which the "Hungarian issue" in Vojvodina had been internationalised was unnecessary. "I speak as a member of an ethnic minority. You can attract attention with internationalisation and it can seem that you have the upper hand in the beginning. Brussels will bring certain resolutions, declarations, but they will not come here for good to solve your problems". Ljajic added there had been incidents against ethnic Hungarians in Vojvodina and that their number had increased after 17th March, but that they could not be described as a trend. "This observation was laid out during all of our discussions with representatives of the ethnic Hungarian community and no one brought it into question. To be honest, an idyllic image of Vojvodina as an example of inter-ethnic harmony and tolerance was more of an idealized picture than reality. Investigations show that there has been ethnic intolerance before these incidents took place. We shouldn't avoid talking about these issues, but problems shouldn't be blown out of proportion either". The Ethnic Minorities minister is of the opinion that certain political parties in Hungary tried to take advantage of the situation and manipulate their way through to some political points.

TRIBUNAL COMMENTS Florence Hartman, Hague Tribunal spokeswoman: "The Governments of Serbia & Montenegro, the Republic of Srpska and Croatia will finally have to understand, once and for all, that it is of utmost importance that all those indicted by the Tribunal be arrested. That particularly applies to Radovan Karadzic and Ratko Mladic. Karadzic is in Bosnia and Mladic is in Serbia. Whether or not one of them has crossed a border or not, we really do not know. But all information we have had for years tells us that they are hiding on the territories of the Republic of Srpska and Serbia". 8th September 2004. Vojislav Kostunica, Serbian Prime Minister: "If we add up all the facts, Serbia has done a lot [towards cooperating with The Hague]. Now it is the turn of the Tribunal to show us some understanding". 9th September 2004. Florence Hartman

Vuk Draskovic, SCG Foreign Minister: "All deadlines are running out and our nations should know that we will not see the Partnership for Peace [NATO's "steppingstone" programme], we will not see the B from Brussels, Euro-Atlantic integration will evade us and Europe will avoid us. We will be a desert island in the sea of the EU and that will happy very soon if we do not fulfil our international obligations". 13th September 2004. Prvoslav Davinic, SCG Defence Minister: [after stating that Ratko Mladic is not in Serbia] "if someone claims differently, then credible proof should be provided to back up such claims". 14th September 2004.

Vuk Draskovic

CorD | October 2004

Vuk Draskovic, SCG Foreign Minister: "Neither [un-harmonised] customs rates, nor anything else are obstacles. Quite simply, there is a big rock that we cannot jump over, cannot squeeze under and cannot avoid. Its name is "obligation" vis-Ĺ&#x2022;-vis The Hague Tribunal". 15th September 2004.

ICTY

Milosevic vs. Clark Lawyer Branislav Tapuskovic was asked, but refused, to be placed on the list of Milosevic's potential defence lawyers. Speaking to CorD, Tapuskovic said: "I didn't think I could act in contrary to Article 21 of the Statute of the International Criminal Tribunal for the former Yugoslavia, which explicitly states that every indicted person has the guaranteed right to defend him or herself and be present in the court room [throughout the proceedings". Despite having spent two and a half years at trial, Slobodan Milosevic still hasn't stopped "pestering" officials of the ICTY.

Branislav Tapuskovic, Lawyer By Safeta Bisevac, Photo Stanislav Milojkovic

hen the trial began, Milosevic displayed a complete lack of respect for the Tribunal by refusing to stand when the judges entered the trial chamber and refusing to accept official documents of the court. In time, he gave up on those practises, though he has not changed his opinion that the entire procedure is something of a kangaroo court. Milosevic continues to use the trial as an opportunity to promotion his politics and, with that in mind, the opening of his defence was expected to be Milosevic's magnificent performance. However, things did not happen according to the former Serbian and Yugoslav president's expectations. The decision of the Trial Chamber to appoint, or perhaps impose, legal defence representation on Milosevic prevented the man of the hour from performing. The unenviable task of defending Milosevic has fallen to former amicus curiae, "friend of the court", Steven Kay and Gillian Higgins, which, according to the rationale of presiding judge Patrick Robinson, was meant to enable the fair and swift trial of a sick, indicted person. After just one week and the testimonies of three witnesses, the intention to speed up the process backfired, with a month-

I considered that, had I accepted to be a possible defence lawyer, I would, to a large extent, influence his rights and deprive him of what was guaranteed by the Statute". long adjournment called due to Milosevic's deteriorating health and a complaint filed by the defence team regarding their appointment. According to Milosevic's legal advisor, Zdenko Tomanovic, of the 400 names on Milosevic's list of defence witnesses, as many as 265 have refused to be questioned by imposed defence lawyers, demanding instead to be questioned by Milosevic himself. The prospect of these very complications is what prompted Tapuskovic to refuse to be considered as a defence representation for Milosevic. He said: "At the moment I was thinking about that, I asked myself certain questions, the same ones which are, these days, in front of the Trial Chamber and the whole process itself. I faced the dilemma as to whether it is feasible and possible to accept a position which would restrict the elementary rights of the indicted one to defend himself. I thought that I could not act in contravention of Article 21 of the Statute of the International Tribunal for the former Yugoslavia, which explicitly states that every indicted person has the guarantied right to defend himself, personally, and to be present in the court room. I considered that, had I accepted to be a possible defence lawyer, I would, to a large extent, influence his rights and deprive him of what was guaranteed by the Statute".

What is garanteed by the Tribunal statut: Former Amicae Curie Branislav Tapuskovic

ICTY

Poor helth or obrstruction: Slobodan Milosevic According to Tapuskovic, he had considered what kind of problems court-imposed defence lawyers would find themselves facing, but he did not want to predict the decision of the Appeal Chamber. "It is distasteful to predict and I do not want to guess what the court will do in order to enable the continuation of the process". Tapuskovic insisted that certain witnesses could find themselves in roles which they did not have when they appeared on behalf of the prosecution. For example, former NATO Commander, General Wesley Clark, was one of the striking pros-

Non cooperative Belgrade: Carla Del Ponte

regarding General Clark, if he, under the new circumstances, is invited to testify. Regarding so-called "famous" witnesses, Tapuskovic said that names are unimportant if the Court uses its right to issue obligatory warrants to certain witnesses. Under obligatory warrants, or subpoenas, witnesses are threatened with fines if they do not appear to testify. These warrants are issued when the Trails Chamber estimates that the witness's statement is of essential importance to the trial. Tapuskovic said: "I always thought that issuing court summons' to defence witnesses would be important for "I always thought that issuing court summons' to the work of the Court. During the presentation of defence witnesses would be important for the work of the prosecutor's evidence, the Court was already obligatory summons to the witnesses, and it the Court. During the presentation of the prosecu- issuing is exactly one of the questions as to whether it will tor's evidence, the Court was already issuing oblig- act in the same way when Milosevic calls on some atory summons to the witnesses, and it is exactly witnesses" said Tapuskovic. Even though the current situation is slightly one of the questions as to whether it will act in the different, theoretically, the Court could issue obligasame way when Milosevic calls on some witnesses" tory warrants to those witnesses who are refusing to appear in The Hague unless questioned by ecution witnesses. Tapuskovic considers it a curiosity that Clark Milosevic himself. Members of the Trails Chamber warned that it was invited to testify on the basis of his book, Modern War, in is not possible, nor desirable, to issue hundreds of such warrants, which he wrote about negotiations with Milosevic and the thus that will not be done. Until 12th October, the Appeal bombing of Yugoslavia. "The Trails Chamber, however, decided Chamber should, at the request of witness-less Steven Kay, that he could not be questioned about his book. That was illogreconsider the decision about his appointment as defence attorical. He was a NATO Commander and was making very imporney. If the Appeal Chamber confirms the decision of the Trail tant decisions", reminded Tapuskovic. Milosevic himself, in his Chamber and refuses to accept Milosevic's right to defend himintroductory statement, quoted the book on numerous occaself, then perhaps they could at least to give him a greater role in sions. It will be, above all, interesting to see how the Court will the defence process. At this juncture, it is unclear how the resolve this contradiction from the previous part of the trial Tribunal will find a way out of this dead-end.â&#x20AC;˘

CorD | October 2004

Privatisation

Undesirable takeovers According to a recent statement of Deputy Serbian PM, Miroljub Labus, the Serbian Government hopes to invite minority shareholders of vegetable oil producer Vital, from Vrbas, Vojvodina, to join forces with the Share Fund and stockpile their shares into a majority parcel before the company is offered for tender. Labus, leader of G17 Plus, claims that Vital's management has accepted the proposal because it represents the only way of attracting a strategic partner capable of providing sufficient investment capital to safeguard the company's future and secure an adequate safety-net programme for employees. between 25 and 40 per cent of shares. If the transaction goes through, the new owner would have automatic control of the company, since the state - the largest individual shareholder with 41.28% - does not boast managerial rights. Pivovarna Lasko (Lasko Slobodan Radulovic, C Market Director Brewery) is offering to purchase 50% of shares at 16,100 dinars per share, while only Danone is interested in buying the entire company stock, or a minimum of 29.38%, at 15,000 dinars per share, By Milan Culibrk, Photo Stanislav Milojkovic, Mirjana Kotlaja which would provide a majority in the shareholder's assembly. Minority shareholders were left with less than 24 hours to deciabus said: "The Serbian Government would like to apply this policy with all good companies of which the state de which offer suited them best, before being invited by the goveowns around 40% of the capital". Had Prime Minister rnment to join forces with the Share Fund and offer their stock at Vojislav Kostunica's Cabinet taken similar measures on time in 20,000 dinars per share, with additional stipulations to the new the case of Knjaz Milos, there would not have been such a fuss owner to invest â&#x201A;Ź20million into the company in the first year and over the sale of the company's shares. Some economists point provide a safety net programme that will guarantee all 1,700 emploout that the state had not played by the rules because it waited yees would keep their jobs in the next three years, receive pay rises and receive annual dividends equal If the government had called on minority shareholders to to 5% of the company's profit. If the government had called on join the majority share parcel prior to receiving and publicis- minority shareholders to join the ing the bids of the three foreign investors, no one would majority share parcel prior to have reason to feel disgruntled, as the strategy is legitimate. receiving and publicising the bids of the three foreign investors, no until the public announcement of bids offered by investment one would have reason to feel disgruntled, as the strategy is legitfund Fabien Piquet & partners - FPP Balkan Limited (Cayman imate. It is based on economic logic, according to which the price Islands), Pivovarna Lasko (Slovenia) and French food industry of a share will rise if the stock parcel it belongs to is bigger. The giant Danone before announcing its own plans, which drastical- added value is accounted for by the fact that the new owner can ly altered competition propositions for majority ownership over control the company after just one transaction, instead of having to bid for several smaller share parcels. The timing of the governthe largest producer of bottled mineral water in SCG. FPP Balkan Limited made the highest bid for Knjaz Milos, at a ment's announcement, however, caused much controversy. The single share price of 17,200dinars, or around â&#x201A;Ź230, offering to buy state has legitimised itself as an "opponent of foreign investors"

CorD | October 2004

state-owned shares in companies that were privatised between with their strategy. Some accused it of favouring a certain bidder 1997 and January 2001 under the old Law on Privatisation from government echelons, while Foreign Investments when 60% of social capital was distributed to employees at â&#x201A;Ź200 Consultant, Milan Kovacevic, asked who would compensate the per year of service. Though the remaining 40% was available to losses of majority shareholders if there were no investors willing active and retired employees at a discount price, most of them to pay 20,000 dinars per share. Initial concerns over this possibildid not choose to buy stock, which then became the property of ity have relaxed somewhat after Pivovarna Lasko announced they the state deposited in the Share Fund Portfolio. The state, howwould purchase a majority share parcel if current bids failed and ever, only has ownership rights over the shares and no managea similar statement came from Vlade Divac, who had previously negotiated over recapitalisation of the company. Radenko Marjanovic, Managing Director of Knjaz Executive Director of the Privatisation Agency, Goran Mrdja, rebuked the accusations and said the Milos, believes the option to re-capitalise the state had two reasons to wait for the bids to go pubcompany should be reconsidered if there are no lic. "The first is because its own bid would have a bidders willing to pay the majority state-owned direct impact on price formation, which is illegal, and the second was the dilemma over what price to parcel at not less than 20,000 dinars per share. offer its own shares. Up to the moment when the rial rights, meaning that it does not have representatives in the seal was broken on the bids of the three foreign investors, the Shareholders' Assembly, nor does it partake in decisions that highest bid was 10,000 dinars. If the state had raised their offer shape the business strategy of the company. The state holds this by 20%, which is usually the case, the price of a share would still position in Knjaz Milos and Vital, as well as in other relatively be 5,200 dinars short of what FPP Balkan Limited has offered". successful companies attractive to the investment community. Some financial experts say the premium, which is customariThe state has already sold its shares in some companies at ly included in the share price when the stock parcel is large, was the Belgrade Stock Exchange, gaining more than â&#x201A;Ź100million for left out of the takeover bids and, in turn, this allowed the state the budget. The Share Fund teamed up with minor shareholders space for manoeuvre to raise the share price to 20,000 dinars. only in a few cases, which actually resulted in an increase to the Some say that shareholders should postpone the decision to sell share price on the stock market. The company Pekabeta is a their shares, since their value could rise even more and yield capgood example. In this case minority shareholders sold their ital gain to their owners at some point in the future. Besides, why stock at 600 dinars per share prior to joining up with the Share would an investment fund buy the shares now unless they were Fund. After they formed a majority parcel with the Share Fund, expecting the same? Most say, however, that a rational strategy the price of one share soared to 2,677 dinars and then fell to its and accurate forecasts require details on company business, whicurrent value of 1,300 dinars. Naturally, the state is not indifferch are confidential to all except their own management structures. ent about whether it will sell 41.28% of Knjaz Milos at 15,000 or The government obviously has its own strategy for selling

Privatisation 20,000 dinars per share, since the budget would receive €30.5million or €41million respectively. The difference is quite significant, bearing in mind that there have been no other significant gains from privatisation this year and the year's budget deficit is projected to hit more than €400million. Knjaz Milos is just the tip of the iceberg. There have been a series of public announcements for the takeover of healthy enterprises that were already privatised. The buyers were, however, forced to take these measures, also known as "unwanted takeovers", because the management opposed them. For years,

allowed to bid for Centroproizvod and C market respectively, other potential investors are free to do the same in the next 30 days. Everyone is now eagerly waiting to see whether Delta Holding will take up the challenge, after announcing that they would try to compete with Mercator, with mild support from the Serbian Government in a consortium with C market's biggest suppliers - Apatinska pivara, Imlek, Knjaz Milos, Grand kafa, Donkafa and others. The only thing remaining unclear in this case is why the Serbian Government should be siding with one of the bidders, especially since potential members of the consortium include Apatinska The state has already sold its shares in some companies at the Bel- pivara, almost entirely grade Stock Exchange, gaining more than €100million for the budget. owned by Belgian Interbrew, Imlek, of certain company managers refused to sign the stock market which the majority share parcel belongs to British investment prospectus and allow the company to be put for sale at the fund Salford, and Knjaz Milos and Centroproizvod, who could Belgrade Stock Exchange. This has put the shareholders in an soon have international strategic partners. absurd situation, since the management had made all the deciCommon to all cases of "unwanted takeovers", in cases such sions in their name and they did not have rightful access to their as that of Knjaz Milos, C market, Centroproizvod and other comproperty or the ability to sell it. The state, as one of the shareholdpanies, is that their shares were never before traded on the stock ers, had not defined its strategy up to this point and instead of exchange, so there is no relative market price to compare bids to. being an active player, reverted to the role of a passive observer. This is the key reason minor shareholders are confused and However, things have changed and the Government seems to have afraid that they will regret whichever decision they make.

Knjaz Milos production line noticed the mistake it made during the sale of Knjaz Milos shares. According to Labus, the Government plans to act on time in the future and cast aside mistrust in its policy, which could scare off potential investors from abroad and result in dire consequences for the national economy. There are also indications that the Securities Commission is seriously considering to abolish an absurd rule, according to which shares could be traded on the stock exchange only after the managing director of the company has provided written consent. Instead, shares will be open to investors if a certain number of shareholders show interest to sell. In that case, the buyers will not have to go through an "unwanted takeover", as was the case with Knjaz Milos and the malt producer Maltinex, from Backa Palanka. The largest Serbian supermarket chain, C market, also entered the privatisation process in mid-September, after the Securities Commission allowed Slovenian company Mercator to make a public bid for 33% of the company at 18,000 dinars per share. On the same day, Podravka from Croatia was allowed to bid for Centroproizvod, only one after Donkafa contributed €16million to re-capitalise the company, while Grand Kafa has also expressed an interest in buying stock. After Podravka and Mercator were

CorD | October 2004

One of C Market’s many supermarket Special attention should be given to statements made by several members of management structures of tendered companies. Radenko Marjanovic, Managing Director of Knjaz Milos, believes the option to re-capitalise the company should be reconsidered if there are no bidders willing to pay the majority state-owned parcel at not less than 20,000 dinars per share. Marjanovic insisted shareholders couldn't lose if they wait because if the company works well the price can only go up. However, he did not explain to the owners of Knjaz Milos why they had no control over their property for more than three and a half years, why he didn't pay them a cent of their dividends and how is it that a company of such calibre had an annual profit rate of only 2-3%. Unlike him, leading figures of Apatinksa pivara and Celarevo breweries acquired reputable strategic partners, Interbrew and Carlsberg respectively, and provided their shareholders with dividends and huge capital gains. Financial experts say that if the records are straight and Knjaz Milos really has an annual profit rate of less than 3%, then the company's profits had to have been siphoned elsewhere through "various channels". In that case, one should not wonder why the company is paying the price of an "unwanted takeover".•

Interview H.E. Hugues Pernet, Ambassador of France to SCG By Dragan Bisenic, Photo Stanislav Milojkovic

H.E Hugues Pernet, current Ambassador of France to SCG, has been a diplomat for three decades. Prior to his appointment to Belgrade, he served around the world, most notably in the former USSR and Washington D.C. Strolling through the ornamental gardens of Kalimegdan Fortress, past the grand Monument of Gratitude, gifted from France to Serbia, Ambassador Pernet declared "It's nice to be here".

Mutual concerns T

he experienced diplomat opened our interview by insisting: "Cultural ties are an essential component of our relations. We are very proud of being the guests of honour at the Belgrade Book Fair and we hope to meet expectations commanded by this role". The Ambassador promised an intriguing French presentation for the upcoming Book Fair: "We have prepared an exquisite presentation featuring prominent writers such as Andrei Makine, Patrick Rimbaud, Alain Robbe-Grillet, Jean-Marie Le Clesio, Olivier Rollin and Jacques Christophe Rollin. The cultural link between our two countries is fundamental. It has created a firm bond between us. We often have the same opinions over a number of issues, which is something held against us at times. We support the idea of cultural and linguistic pluralism and value the fact that there are still people reading in French and showing interest in the French language." What do you think of the traditional ties between France and Serbia and is it true that today they are a myth rather than a reality? We are a country strongly attached to our history. The ties linking us to other countries are very important to us. That does

CorD | October 2004

not mean that we can avoid incidents. Saying that we have a close relationship does not mean that we always share the same opinion, which is good. There is a quite realistic base to our relationship, which was justified during the recent visit by French Exterior Minister, Mr. Barinet. He was very touched by the gesture of his counterpart Minister Draskovic, who received him in front of the Monument of Gratitude to France at Kalemegdan Fortress. These are things that exist, that are respected and that will survive. We also have to think about the future, and try to deepen our relationship and have it valued even more. There are enough elements to work with in terms of improving our relationship. Firm bilateral relations have to hinge on economic ties as well. We have not always been the best economic partner, but things are moving forward there as well. The scope of bilateral trade is increasing. France is not among your top foreign trade partners, but it has had some success. French companies present on the SCG market include Alkatel, Lafarge, Societes Generale, as well as some small and mid-sized enterprises. There is also Danone, who are bidding for Knjaz Milos. We have other ambitions too. One day you could fly in European-made aeroplanes - Airbus. The third type of co-operation has been moving in several directions. We are helping to form a young elite by working on a series of projects with universities in Serbia. We would like to help modernise the Serbian administration, especially in its efforts to integrate into the EU. This includes projects involving the French language. What was the significance of the recent visit of Minister Michel Barniet in that context? Minister Barniet's visit aimed to show that France finds the Balkans increasingly important. The Minister also visited Croatia, Bosnia & Herzegovina; and recently toured Kosovo, Macedonia and Albania. His approach to communicating with the region was twosided - French and European. He also had the opportunity to meet some new figures on the political scene, such as President Marovic and President Tadic. He also met with Prime Minister Kostunica, who is a long-time acquaintance, and his counterpart Vuk Draskovic. Did Minister Barniet suggest to Mr. Draskovic that Serbia & Montenegro should drop legal charges against NATO? I believe the Minister did not make such as suggestion and I rather feel that Draskovic came upon the idea himself. The notion does make a lot of sense, however. It is quite difficult to ask for membership in Partnership for Peace and access to the structures

Mr. Pernet in front of Belgrade's majestic French embassy of the Euro Atlantic Alliance and at the same time file a legal suit against these same institutions. It's a question of consistency. We understand the consequences of such a decision and the problems it could cause in the context of the region in Belgrade, but some day this will have to happen.

of the trial is not predetermined. Individuals are entitled to give arguments and defend themselves in front of the court. People should consider their future when viewing these matters. Whether Mladic is in Serbia, Montenegro or Republika Srpska is not the central issue here... Efforts to prove that Mladic was not in Serbia lost some credibility when Goran Hadzic disappeared after being indicted by The Hague Tribunal. I do not know whether Mladic is in Serbia and I don't have that information. It is important to explain the search for Mladic and not just say "we are looking for him, but he is nowhere to be found".

What do you think of France's role in the Balkan conflicts? France was often described as "Serbia's traditional ally", while President Jacques Chirac demanded that certain designated targets not be bombed. There have been incidents in the course of our relations. It is Will there be a shift in the attitude of foreign factors after 1st true that President Chirac intervened on several occasions in October if, by that time, Mladic and other indictees do not show order to spare certain targets from being bombed. This was true up in The Hague? for Serbia as well as for Montenegro. It is truly a dark episode of It is clear that a lack of co-operation in this field is a problem. the past and not only the history of our own bilateral relations, The issue at stake here is sharing mutual concerns. When you since it had implications for the wider region. This is a chapter strive to become a member of a community, its integral part, there that we want to put behind us as soon as possible. In that respect, it is necessary to view our incentives not as pressure, but our determination and recomâ&#x20AC;&#x153;The plan for decentralisation of Kosovo drafted by mendations to round off the process of cothe Serbian Government is a very important initiative. operating with The Hague Tribunal in order to pull through these difficult times. It does not solve every problem, but my personal impreYou could create an opportunity to look ssion is that it provides solutions to several problems.â&#x20AC;&#x153; towards the future, instead of focusing on the past, which is something you have done for has to be mutual understanding and some common ground. It is too long and are finding it difficult to abandon. Things are moving very important that you understand why we are demanding this forward, countries are changing and the world is developing. and clearly explain the reasons to the public. Your statement that the best proof of Mladic's whereabouts The EU's Council of Ministers decided to interact with would be his appearance in The Hague was cited often. We are Serbia and Montenegro separately on their path of integration in the midst of renewed attempts to determine where he is. into the EU. Are these the first steps of a process of disintegraDoes France have any relevant information? tion, similar to that witnessed during the past decade? I was asked to say what would prove that Mladic was not in The proposal set forth in Maastricht a few days ago is not Serbia and I answered that the best piece of evidence would be his aimed at disintegration of your country. Mr Javier Solana was very appearance in The Hague. I have nothing to add. I am not aware clear on this issue. He plans to visit the region soon with much of Mladic's whereabouts, but this is not the central issue. It is clearer explanations. The idea is to see two very important things important to understand why the International Community wants happen: to create an opportunity for SCG to come closer to the EU your country to provide this information. There have been occurand to make sure the country does not lag behind the region, rences during the war that need to be unveiled and the outcome CorD | October 2004

Interview The Serbian Government is trying to present its model for the decentralisation of Kosovo as a way to improve the situation in the region. How do you value this plan? The plan for decentralisation of Kosovo drafted by the Serbian Government is a very important initiative. It does not solve every problem, but my personal impression is that it provides solutions to several problems. Firstly, the plan draws on the experience of the events in March in order to secure the survival of Serbs in Kosovo. It is a possible solution to the problem of the Serb minority in Kosovo. Secondly, the plan was presented in the midst of the election campaign, which brought about a consensus and prevented further debate on the issue. Finally, it reminds the International Community that Belgrade has its own place in the international debate on Kosovo. Looking at the first and third points, it is obvious that we have the attitude of one party in the debate, which excludes the possibility of automatic acceptance by the other side. We are now exerting efforts to have some parts of the plan harmonised with UNMIK and the local authorities. The basic issue has been highlighted, however, which is providing security to ethnic minorities. The Belgrade Plan contains certain elements that could successfully address security issues in Kosovo. Some current initiatives resemble trade-offs, with Mr. Petersen [UNMIK chief] trying to offer the implementation of some parts of the plan in exchange for Serbs accepting to take part in the upcoming elections. How do you view this link? This is pure logic at work and not trade. Namely, there is an ongoing process. If a part of Kosovo's population refuses to vote at the elections, it will not have representatives in relevant institutions that will make decisions about its future. This was also the mes-

â&#x20AC;&#x153;Firm bilateral relations have to hinge on economic ties as well. We have not always been the best economic partner, but things are moving forward there. The scope of bilateral trade is increasing.â&#x20AC;&#x153; sage conveyed by Mr. Barniet during his visit to Pristina, where he requested security for Serbs and other ethnic minorities in Kosovo. However, he also stressed the importance of Serbs taking part in a democratic process that will decide upon the future of Kosovo.

Ambassador beside Kalimegdan's Monument of Gratitude since it is quite obvious that your neighbours are moving forward at a faster pace, especially Croatia. Serbia & Montenegro are handicapped in several ways. One of them is the obligation to co-operate with The Hague and another is the harmonisation of economic relations between the two members of the state union. In light of the fact that the country is increasingly falling behind, there are attempts to find a pragmatic solution that would prevent a deadlock situation. The solution should resolve the issue of harmonising economic relations between SCG and prevent them from holding each other hostage on their path of integration into the EU. Our primary goal is to have SCG intrinsically approach the EU at a reasonably fast pace. There is no dilemma that the EU is advocating strong ties between Serbia and Montenegro for the time being. Countries are generally trying to approach each other, so it is hard to explain why some would want a divorce before entering a union. However, it is up to the citizens of both SCG to make a decision.

CorD | October 2004

A French general is now the chief commander of international troops in Kosovo. What kind of impact can this have on security in Kosovo? This is one of his priorities. By pure chance he is French, but he will follow instructions issued by the International Community. I talked to General De Kermabon and I know that one of his priorities is the safety of ethnic minorities in Kosovo. He is an experienced professional and knows Kosovo well. He already served there and will work to the best of his abilities. It is often speculated that next year could be decisive for resolving the status of Kosovo. How realistic are these speculations, bearing in mind that relevant UN documents do not specify a date for resolving the status? The agreement was to discuss standards first and then talk about status, as well as to evaluate in 2005 the progress made in creating the standards. There are two policy lines not mentioned in the relevant documents. On one side, there are those who want changes to develop at a slower pace with respect to their long-term effect, while others want these changes right away. Hence, there is a conflict on the issue of dynamics and time frames. As far as we are concerned, we would like enough time to be allowed for the standards to reach a satisfactory level, but sometimes people have to face things that they cannot control at every point in time. In any case, it is necessary to be cautious and to move forward.â&#x20AC;˘

royal roots Crown-Prince Aleksander Karadjordjevic II Prior to the Second World War, Serbia was a constitutional monarchy living in unity with fellow monarchies of Croatia and Slovenia. Dramatic events following WWII brought an end to royal rule and the then reigning family - the Karadjordjevic's - fled the country to begin a life in the West. By Dragan Bisenic, Photo Stanislav Milojkovic

rior to the 5th October 2000, Crown-Prince Aleksander Karadjordjevic, descendant of Black George (Anti-Turkish rebel Djordje Petrovic, nicknamed Karadjordje), who was arguably Serbia's greatest hero of the Ottoman occupation of the region, brought his family back to his homeland of Serbia to be with the people whose blood courses through his veins, and to argue the benefits of reinstating a constitutional monarchy. This month CorD editor-in-chief Dragan Bisenic speaks exclusively to his Royal Highness about the political scene in SCG, the potential for Kosovo secession and the notion of reinstating the monarchy. How do you feel living in Serbia? It has always been my dream to come home to my roots and to live in the residence where my father, King Peter II, and grand-

CorD | October 2004

father, King Alexander I, lived. My father mentioned his youth very often and the memories of his life in Yugoslavia. I feel good being home; back to my roots. In the recent past it seemed that you were more actively involved in the country - making comments and talking publicly. Now, you do so less often. Have you lost interest in current political issues? I have never lost interest in the current affairs of our country. I was more politically active before 5th October 2000 because my objective was to help bring democracy, human rights and a better future for all our citizens. After 5th October, I decided that the route should be to establish a meeting point and centre of unity. My view about the long-term solution for stability, unity and continuity for our country still stands in that the best solution is a Constitutional Monarchy like Spain, Norway, Denmark, etc.

Interview Karadjordjevics hope for a restored monarcy Parliamentary Monarchies allow the prime minister and government the leeway to rule the country. This form of government works very well in The Netherlands, Belgium, Japan, the United Kingdom, Australia, Canada, etc. You and your spouse were often seen with former U.S. Ambassador William Montgomery and his wife, working together on common themes. How would you describe your friendship with them? We are friends with ambassadors and their wives. It is so important to have good relations with the international community and we are proud to have good relations with the diplomatic corps in Belgrade. We were happy to know Ambassador and Mrs. Montgomery and their comportment to us on many occasions was friendly. How would you comment on the possible secession of SCG? This is a political matter and involves the ultimate decision of the people. I must say that before another divorce takes place, everyone must seriously consider the best interests of all citizens and what affect such a course would have on the future well being of all citizens. Politicians have the duty to put people first and not their personal interests. Do you think, ultimately, that Kosovo has been lost; and how would you describe such a loss from the perspective of the Karadjodje Dynasty - considering that, historically, your family has been completely dedicated to preserving the Serbian character of Kosovo? Our politicians have a difficult task to work on the future of Kosovo while maintaining a good relationship with the international community. We must all work together. The normal solution would be unity in a democracy where people peacefully coexist, but to do that the key must be found to switch off formerly created terrorist elements of the past. The destruction of Serbian Orthodox Churches is shocking and those that committed such cowardly crimes must be brought to justice. All places of worship must be respected and that includes Mosques and Churches. The violation of human rights and democratic principles in Kosovo will do no one any good. Violence will lead nowhere. People are lost when they do not respect each other. The future of the European Union is respect for all. There is no exclusivity for one religion or one ethnic group - everyone should be respected by the European Union and within the European Union.

The Royal family at their Belgrade residence From your perspective, how do you see the vision of "European Serbia"? Serbia is in Europe and part of Europe. Serbia belongs in Europe. We have to fulfil our international obligations and move ahead to comply with the requirements of accession to the European Union. We cannot afford to be overtaken and become an isolated island in the middle of Europe, surrounded by European Union members. Our people must know what the European Union is and what future it would bring and what benefits membership has. The European Union should curtail its threats and comprehend the historical background. Serbia has obligations to the European Union, but the European Union also has obligations to Serbia. The European Union has to address what it can do for Serbia and

Can Serbia ever permit the secession of Kosovo? There is no future in the European Union for an entity that only has a single religion or a single ethnic exclusivity. So, why should anyone permit secession when there is no basic respect of human rights? The perpetrators of violence must know that the European Union will insist on mutual respect for each other Parliamentary Monarchies allow the prime minister and and no more violence. Our duty in Serbia is to be firm and demand what is right. government the leeway to rule the country. This form of

government works very well in The Netherlands, BelgiI get the impression that you reserved the um, Japan, the United Kingdom, Australia, Canada, etc. right to voice an opinion on Kosovo until the recent abuse and banishment of Kosovo-Serbs? transform their constant veiled threats into constructive, objecAgain, I repeat, no more violence, no more violation of human tive, workable steps for our citizens that produce meaningful rights, no more destruction of churches and any place of worship, results, instead of incessantly repeating what will happen to us if swift punishment for violators and more. Switch off and decomwe do not do perform this or that request. We do not want to be mission the formerly internationally created elements once and driven into a corner. No sane person will undermine constructive for all. In addition, do not forget that the European Union cannot results that benefit the people as a whole. In fact, people will be maintain the principles upon which it was built if such principles much more co-operative and positive. We do not want to be an were denied to Serbia and to the Serbs in Kosovo. Move ahead island in Europe, but please do not compel us to become one. with democratic principles. CorD | October 2004

and when we are in Washington, we meet. Are you satisfied with the way you and your family are treated in Serbia? Yes. I am happy. Whenever my wife, boys and I travel throughout our country, we are always very warmly received. We are proud of our close relationship with our people, who are so very hospitable. Would you describe what happened during the flight to the Athens Olympic Games between yourself and MOC president Dragan Kicanovic? Our wish was simply to obtain accreditation to attend the Olympics in Athens, so that we could enthusiastically support our Olympic Team. Many people get accreditation and all one has to do is apply, which is what we did. There are various accreditations to the Olympics and we respectfully requested that Mr. Dragan Kicanovic include us in the appropriate one. The head of the Greek 2004 Olympics, Mrs. Yianna Angelopoulos, a friend of many years, had kindly invited us. However, to be included in our country's Olympic effort would have been wonand very touching for us. We had excelCrown Prince Aleksandar shoops pool with son derful lent support for this request from several of our political leaders at the highest levels. We were hurt by certain unwarranted remarks by the gentlemen such as What kind of relations do you have with Serbian President "this is my country and not your country" and when I tried to Tadic, Serbian Prime Minister Kostunica and Serbia & shake hands with the gentleman on the plane in a kind gesture I Montenegro President Svetozar Marovic? was asked "who are you?". I was annoyed and decided not to say I have excellent and warm relationships with President anything afterwards when it hit the media, because the important Marovic, President Tadic and Prime Minster Kostunica, and issue was the success of our Olympic Team. always look forward to seeing them. Our request was a straightforward one and could have been handled without any problems, according to the explanation we Do you support the extraditions of suspected war criminals received from the International Olympic Committee. I wish to say to The Hague and how would you evaluate the work of the that it was not my intention whatsoever to offend Dragan Tribunal? Kicanovic, but was rather an expression of pure anger. Anyone who may have committed crimes against humanity To move head in democracy it is important that any former must face justice. No one on our planet can be above justice and ideological personal views of the past era are put behind and that that goes for all citizens of all nations. There is no exclusivity. we move ahead in our democratic form to put our people first and Justice must be fair and swift. Alleged violators must be given a have good international relations. My wife and I are proud to have fair trial and be given the chance to defend themselves. The issue excellent international relations. I wish to remind those clinging to is crimes against humanity. The principle should be innocent the ideology of the past that Constitutional Monarchies are until proven guilty. When I think of the loss of life and suffering advanced forms of democracy.

The European Union should curtail its threats and comprehend the historical background. Serbia has obligations to the European Union, but the European Union also has obligations to Serbia. that took place in the former Yugoslavia and the continuing situation in Kosovo I am shocked. Our ministers and the international community are working hard to resolve certain issues and I hope that we can move our country forward. Serbian Finance Minister, Mladjan Dinkic, insisted that, ultimately, it was your relationship with Mr. Wolfensohn that ensured Serbia received favourable credit conditions. How would you describe your relationship with Mr. Wolfensohn and other distinguished world characters? It is a pleasure to have good friends across the world and to maintain this friendship. My wife and I are proud to have many friends. We have known World Bank President Jim Wolfensohn for many years and we always look forward to our next meeting. We were recently together in Munich for a World Bank conference

CorD | October 2004

You are a monarch by birthright and it is clear that you support the notion of reinstating the Monarchy in Serbia. Realistically, how possible is that - considering the similar notion of, say, Austria bringing back the Hapsburg Royal Family or the Italians, Germans or French reinstating their royals, or even Turkey bringing back a Sultan; do you real think such a "trend" is possible? It happened in Spain - a former dictatorship - and look where they are today. Spain is a great democracy and a member of the European Union. Our country needs a neutral head of state that respects everyone, brings everyone together, and allows the government elected by the people to rule. My roots and ancestors are from SCG. It is in my blood. Monarchy was always with the people during difficult times and good times. My ancestor, Karadjordje, was a great hero. Of course, the trend is possible and there is grass root support and interest. All it needs is good organisation and for our citizens to appreciate what a Parliamentary Monarchy is. In the past era, there were unjust negative things done against the Parliamentary Monarchy to discredit it. Today, everything is possible.â&#x20AC;˘

Interview

Radovan Jelasic, Serbian National Bank Governor Only a significant increase in export can prevent Serbia from entering a debt crisis, forecast by economists to happen during the critical period after 2007, when the annual instalment for repaying foreign debt will pass the 1-billion-dollar mark. An advanced warning of such a possibility was made by National Bank of Serbia (NBS) Governor Radovan Jelasic, speaking exclusively to CorD after meeting a delegation of major domestic exporters in the NBS conference room. By Dragan Bisenic, Photo Stanislav Milojkovic

fter hearing Jelasic's contention that European banks are being "Balkanised" instead of Balkan banks being "Europeanised", we at CorD were keen to speak to the man heading the National Bank. "We organised a meeting with the country's largest exporters to see what we can do for them in terms of foreign trade policy", explained the governor. "Last year we received close to $3billion in grants, which equated to the level of our annual export rev-

CorD | October 2004

Export enue. In the mid-term, the only way out is a marked increase in exports. When the National Bank made projections for the period between 2007 and 2009 two months ago, we laid down the aims of Serbia and what must be achieved to avoid becoming excessively burdened with obligations to service foreign debt when the country's annual repayment levels hit a billion dollars. There are four conditions that must be met: annual GDP has to increase by 5%, exports have to grow by 15% and investment by 10 to 13%; while consumption must not rise annually by more than 1 to 2%. Our major problem is not the extent of the debt, but rather the expense of servicing this scale of debt." Where are we now? This year we will probably achieve an annual GDP growth above 5%, but we are also facing a large increase in individual consumption that will result from an increase in real income and the payment of old foreign currency savings at a record level of â&#x201A;Ź175million financed from the budget. This is just as if we gave our citizens an extra salary and they spent it on imported goods. The state's interest was to have these funds deposited in savings accounts and used for investments and development.

Governor presents new 500 dinar notes What about exports? As far as exports are concerned, there was a mild increase in the first eight months of this year and there is still a lot to do in this domain. We are facing a record high trade deficit, while investments will be short of the required level of 10 to 13%. Customs and tax authorities will have to work on getting answers to why the trade deficit is so high. It does not add up to what is happening at the level of the National Bank, commercial banks and individual consumers. Do domestic companies trading with themselves create the trade deficit? Yes. This is something that goes on. We direct most of our efforts towards curbing illegal operations. For example, the National Bank has sold less currency to commercial banks in the first eight months of this year than last year. On the other hand, we have a record high trade deficit. The influx of foreign investments to the national economy can account for 300 - 400 million dinars. Furthermore, we have received less than two billion in grants. The problem is how to match the two ends of the equation, since the funds have to be coming from somewhere. The source is probably the grey zone of the economy, bloated invoices, etc. What should be done to raise export levels to the required level? As far as the National Bank is concerned, we are trying to do our end of the job quickly and efficiently through transparent communication with exporters. We have discussed what aspects of the currency exchange rate are important to them, such as predictability and value. I think that we have done our job well for the past year. The same goes for the payment of export subsides through the Bank. I hope they will be paid back to the Ministry of Finance and, since they are providing the funds, they should also be in charge.

crisis looming In the long term, our economy needs to be relieved of pressure coming from unfair competition and dumping prices. Serbian companies justly claim that they cannot enter the foreign market with a solid position if they don't have one at home. The responsibility in this case lies primarily with the Government, namely its fiscal, customs and tax policies. Exporters must receive serious attention instead of just audiences during election campaigns.

How would you evaluate the attitude of international financial institutions towards our own - as benevolent, soft, tolerant or stern, like that of The Hague Tribunal in its own area of competence? We could say that everyone has their own Hague. Some have it in political spheres and some in the economy. A part of the responsibility is ours, since the initiative was on our side from 2001 until mid-2002. We told the World Bank what we needed

The rebalancing of the budget is As far as the IMF and the World Bank are concerned, the planned for October this year. What kind programmes have already been divided between them of impact will it have on the economy? The rebalancing of the budget is a prac[the State Union members], which means that here in tical implementation of everything that has Serbia we have no information about the content of the been agreed with the IMF. The National arrangements the World Bank has made with Montenegro. Bank sincerely hopes that the state and the Ministry of Finance will remain steadfast in the process of implementation, i.e. stick to the planned 30-billionand then started turning more and more of our attention to dinar deficit in the budget. This will certainly not be an easy task, everyday politics. In the meantime, the initiative was yanked out since the budget deficit is traditionally created in the second half of our hands and now they are telling us what to do. The entire of the fiscal year and most of it in the last quarter. arrangement with the IMF was on standby until this April, when CorD | October 2004

Interview the IMF paid out its first instalment after a full year. September is an important month, during which our performance will be evaluated. The World Bank approved $560million, but only 340 million has been withdrawn and the last withdrawal was made in July. How much credit effectively enters our economic system is one thing, and another is the general agreement. Some of the responsibility is ours. We should have negotiated harder on the conditions that have to be met, but then there is the question of their responsibility and policy. Could they have been more flexible, bearing in mind that things might not have gone according to plan and that two laws were not adopted in Parliament? Serbia has been paying its dues since 5th October 2000, irrespective of

Are there any signals that the issue of The Hague might become influential in financial negotiations? Not for the time being, but the issue will almost certainly be brought into the limelight by the IMF in November this year, when we start to negotiate over the next instalment of the standby arrangement. We are conducting a revision of the three-year arrangement with the IMF to see where we stand with our fiscal and monetary policy, company restructuring and the banking system.

Earlier in the interview you mentioned the "Balkanisation of European banks" operating here. To my understanding, you are implying something that resembles corruption? There have been demands that the National Bank reveal the names of such banks and depositors, but this In the long term, our economy needs to be reliwould push it into the political arena, which is not the eved of pressure coming from unfair competition Bank's turf. If someone in Serbia makes an overnight and dumping prices. Serbian companies justly deposit at a 3.5% annual interest rate for a certain period time without a currency clause, a blind man would claim that they cannot enter the foreign market of see that something was amiss. On the basis of these 3.5% with a solid position if they don't have one at home. deposits, some banks are buying the National Bank's treasury notes at an annual interest rate of up to 19% and whether the World Bank will give us the $560million dollars state treasury notes at 22 to 24 per cent. I can responsibly claim agreed, or just 340 million. There is one more important issue: that we are not looking at the 20% interest margin here, but Serbia has been a net creditor this year, which means that we something else that has been typical in Serbia for the past 15 to 20 years. One would have expected that the entry of foreign banks would have raised transparency, but exactly the opposite has happened. What figures are we talking about? The total deposits of all self-managed units in the banking system are 10.5 billion dinars, which is quite a tidy sum of money. A lot of it has been deposited at market rates, but when you look at the interest rate for some of these deposits, anyone who knows the value of money could tell that there are some additional arrangements. I presume that the people in question, although they haven't been named, have recognised themselves in these accusations? Some have recognised themselves and have immediately started to respond with comments. It hurts me as the National Bank Governor but, believe me, I just cannot keep on replying to them anymore. I have documents, papers, correspondences and the people who are denying this have to be aware that the National Bank has the entire documentation relevant to this issue. Why is it important to keep the inflation at a onedigit figure? An inflation rate below the 10% mark is something that Serbia has not experienced in the last 15 to 20 years. This has an important psychological effect. It also has an impact on foreign debts, salaries and purchasing power. All of this has a general influence on the economy. When the inflation was 120% per annum, 1-2 percent up or down meant little. The same difference today will hugely effect citizens' budgets.

Tougher negotiators needed have paid back more credit than we have received from our lenders. This fact gives us reason to stop and wonder who is helping whom here, or rather how much support has arrived here in the form of cash and not just guarantees on paper? How can co-operation with The Hague Tribunal influence the nation's economy? The link between the two is quite simple. There are direct and indirect influences. The U.S. can not only vote against our arrangement with the IMF and the World Bank, but also lobby in these institutions and persuade everyone else to follow suit. In the event of this happening, our financial arrangements would go down the drain, which would have a dire impact on our macroeconomic policy. Macro-financial assistance from the EU is also hinged on The Hague. Wherever you sit to negotiate, the issue of The Hague looms around the corner and you keep waiting for the moment when someone will pull it out of the drawer and hamper the negotiations.

CorD | October 2004

To what extent does the state structure of Serbia & Montenegro influence financial flows in the country? There are few cross points where co-operation between the two members of the state union is possible. As far as the IMF and the World Bank are concerned, the programmes have already been divided between them, which means that we here in Serbia have no information about the content of the arrangements the World Bank has made with Montenegro. The same goes for the IMF. The European Union has now adopted the same policy in their financial policy towards Serbia and Montenegro.â&#x20AC;˘

Interview By Vojislav Stevanovic, Photo Dragan Milosevic

Mihailo Crnobrnja, Serbian Government European integration advisor

not ready for Europe In stark contrast to other Balkan states that have succeeded in working intensively towards European Union accession, SCG remains without a formal relationship with the EU and an unofficial member of that group of former communist states that still views EU membership as a somewhat exotic idea. 32

CorD | October 2004

hile Serbia & Montenegro warms its heels, The Balkan nations are undoubtedly moving forward on integration. Both Albania and Bosnia & Herzegovina are in formal negotiations with the EU on signing the Stabilisation and Association Agreement. Macedonia has already signed the Agreement and Croatia has received official candidate status. In an effort to get the low-down on just what's holding the state union back, CorD spoke exclusively to Mihailo Crnobrnja European integration advisor to the Serbian Ministry for International Economic Affairs. Crnobrnja, who was Yugoslavia's last ambassador to the EU before the state's collapse, said: "As regards official communication with the European Union, SCG has not made any step forward in the last two years and it is still where it was in August 2002. The Feasibility Study is not yet finished and we are not even close to commencing negotiations regarding the signing of the first formal agreement with the EU the Stabilisation and Association Agreement. "Serbia & Montenegro has spent two years unsuccessfully trying to find a common language. It is obvious that these two state members have opposing opinions regarding the quality, benefits and prospects of the state union." He elaborated: "While the Serbian position is that SCG should be the state union, the Montenegrin position from the very beginning has been that is should be a union of states. The difference in those two approaches is that the concept of the state union assumes, like the European Union's concept, the delegation of part of sovereignty at a higher level. On the other side, the Montenegrin concept of the unity of states does not allow for the transfer of any functions to the level of the joint state. "Of course, such a difference in approach was transferred onto the rather non-functional state unity, thus lots of time has been wasted. For instance, the State Union Court began working only a few months ago, in spite of the fact that such a body could have been established only a couple of weeks after the regulation of its establishment was adopted."

However, Deputy PM Labus insists that this assertion did not come directly from Brussels to Belgrade and is merely a desire of the EU, which would be prepared to accept alternative solutions. So, which position is the right one? I do not know what would be a clear message for Labus and some other politicians, such as Misko Vukovic[member of Montenegrin PM Milo Djukanovic's Democratic Party of Socialists]. I do not know what can be clearer than when the Ministry Council, the highest official body of the European Union, at every meeting regarding matters of SCG sends the message that the EU is interested in preserving the state union because they consider it to be the best and most effective way for association. There is no more official position than the EU Ministry Council's statement. This

Does that mean there is no political desire to make the state union effective? That is obvious. In your opinion, which state union member is least prepared to compromise, or has a lack of political will to maintain Serbia politically immature the state union? That is also clear. In Montenegro they do not hide the fact that they are not interested in the state union. SCG is an ineffective message should perhaps be written in the EU Constitution, thus it state mostly because of the efforts made by Montenegrin officials would become an official position for some politicians. to make it such, especially by the constant citing of the extremely conservative comprehension of the Belgrade Treaty and ConstiConsidering the types of policies led in the last couple of tutional Charter, without any desire to interpret those documents years, to what extent has the image of Serbia & Montenegro in a constructive way - one which would make SCG functional. been tarnished in the eyes of Brussels? "The main problem of the present state lies in the Belgrade All this hassle and dragging out over the past two years cannot Treaty. That document was written imprecisely and allows everyavoid creating a negative impression regarding our seriousness, one to interpret it in the way that most suits them. That is the the true intention of joining the EU and our readiness to comproessence of the problem. When the Belgrade Treaty was created, Europe was satisfied with â&#x20AC;&#x153;The main problem of the present state lies in the the very fact that the agreement was reached. Belgrade Treaty. That document was written impreOn the other hand, Serbian and Montenegrin cisely and allows everyone to interpret it in the way that officials were satisfied because they saw space in that Treaty for their own political aspirations. most suits them. That is the essence of the problem.â&#x20AC;? Vojislav Kostunica, who was one of the signatories, said then that the Belgrade Treaty extended the joint state. mise, which is the essence of the European Union. The EU was Montenegrins were extremely satisfied - despite not saying so at the built on compromise and has survived on it for half of century, time - because, by this, nothing was "nailed" or strongly resolved, while we cannot agree regarding much smaller matters. SCG but a lot of space was left for different interpretations. The only one "fails", therefore, to display basic European values. Thus it shows who expressed any scepticism in regard to the Belgrade Treaty was that is not mature enough to join the EU. Personally, I do not know Miroljub Labus [G17 Plus leader and current Deputy Serbian PM]. to what extent this image has fallen or whether Europeans think that we are not ready to join their club. Europe still insists that the fastest way for SCG to achieve When in contact with us they are firstly diplomats and they do formal association with the EU is through the state union. not always want to say what they really think, but it is indisCorD | October 2004

State Union functionality a must putable that they are becoming more and more frustrated with our position. That could be seen at the last two meetings of the Advanced Constant Dialogue, where our very position in the same place regarding the institutions of the state union and the harmonisation of our two economic systems leads Europeans to seriously question themselves as to where the main obstacle lies, since both Serbia and Montenegro claim that association with the Union is their strategic aim. To what extent is the lack of total consensus among political parties in Serbia endangering the strategic aim of EU accession? I think that in SCG, in contrast to other countries which have joined the EU, it will be very difficult to reach a general political consensus regarding this matter. It seems the reason for that is the great division of the political spectrum, but also the still immature

What are the possible scenarios resulting from changing relations between Serbia and Montenegro? One possible scenario is the appearance of a critical mass of political forces in SCG which would conclude that a joint state is untenable, after which SCG would fall apart. I think that such a break-up would be peaceful and I do not see any tragedy in such an act. But that could be a very dangerous event for the stability of the region. The break-up of SCG would be the impulse to the centrifugal forces in this region, of which there are a lot. If SCG cannot find the modus of co-existence in spite of the fact that the people living in this region are the closest ethnic groups, then how can we expect that from Serbs, Bosnjaks and Croats in Bosnia & Herzegovina; or from Albanians and Macedonians in Macedonia. In other words, that would be the message that it is just enough to be persistent and Europe will capitulate in the end. In a formal sense, such a development of events may not distance us from Europe. Separation does not necessarily mean that the process of integration will be stopped, it is even possible that it might speed it up; although it seems unbelievable that both countries would benefit from it and I think that Europe will attempt to recompense the one who behaved more constructively. But that is only a guess, since so far the EU has not officially suggested anything similar. However, it is certain that the general increase in instability and low level tension, such as in Ireland, will deter foreign investors from Serbia. The other scenario considers one more burst of forces in favour of the continuation of SCG, which would consolidate the state union and make it more efficient. That would mean faster movement towards Europe, especially after Serbia fulfils its obligations to The Hague Tribunal. Is the fear of sanctions for not meeting European expectations realistic? I do not expect sanctions according to the 1992 model, but there is the possibility of "silent" sanctions in the sense of maintaining the status quo and not giving new possibilities for the process to be improved. There is the possibility of the language and approach of the EU towards the situation in SCG becoming stricter and to increase the distance that already exists between Euro-Atlantic institutions and us. The general framework for our association is the process of stabilisation and association. Within that is the new set of regulations given through the document called the European Partnership - presented this summer. That document states that non-fulfilment of conditions agreed by the European Treaty could lead to the imposing of sanctions. More precisely, the deprivation of financial means from the CARDS programme the 1992 that finances technical aid.

"I do not expect sanctions according to model, but there is the possibility of "silent" sanctions in the sense of maintaining the status quo and not giving new possibilities for the process to be improved." political scene, where everything is out on the political counter. This even includes the most valuable things, such as the state symbols, matters of state and constitution or strategic determinations. Therefore, nothing is state oriented, but is the subject of political games. Until such time as our political scene matures, we cannot expect a political consensus regarding fundamental matters. Only after this maturing will politics deal with everyday problems instead of state ones. When do you expect this scene to mature? Political maturing is an element of political transition. In the same way as the economy cannot be turned from self managed to market-liberal over night, time is needed for the political scene to transform from national-authoritative into democratic-liberal. Therefore, such a state on the political scene is not a tragedy, but rather a normal process. I think that success in the implementation of economic reforms will speed up the processes of the maturing of the political scene.

CorD | October 2004

What essential steps must SCG take? Firstly, to bring to an end the story regarding functionality of the state union as soon as possible. Then SCG have to agree on harmonisation of the two markets and to make uniform economic space. The European Union is interested in only two things regarding trade: that there is somebody who can guarantee that goods are of domestic origin, which requires a strong customs authority able to deal with that; and that there is an institution which can guarantee the quality of goods, which means that there is a united sanitary and veterinary inspection. In order for those two services to be effective they must be authorised to control the origin and quality of goods on the whole territory of SCG, and not merely be two offices with one fax machine and one employee serving only coordination purposes. The EU also expects creation and implementation of the common anti-monopoly law at the state union level, as well as common measures for the protection of intellectual ownership. Those four things are expected to be functional on the level of the state union since they are common on the level of the European union too. At the moment it is not clear to the EU how we, as a state union, cannot reach that level of functionality if the EU, as a union, already has it.â&#x20AC;˘

Economics

Serbia's GREY market By Vojislav Stevanovic, Photo Stanislav Milojkovic

Serbia is facing a serious problem. Between January and August this year, 157 so-called phantom firms were identified in Serbia, principally in Belgrade and Novi Sad. If Serbia's tax officers truly want to rid the country of its image as a haven for dubious financial players, a serious effort will have to be made.

ccording to the figures of the Tax Administration Office, the 157 identified phantoms were responsible for importing goods to the value of 2.6billion dinars last year alone. Criminal charges have been brought against responsible individuals from 22 of those companies, suspected of tax evasion to the tune of 454.3million dinars, and goods with an estimated value of 392 million dinars have been seized from 40 companies. Tax evasion statistics show a 1.8billion dinar increase this year, despite failure to pay tax carrying a maximum penalty of ten years imprisonment.

WHAT ARE 'PHANTOM COMPANIES'? Phantom companies are not peculiar to Serbia & Montenegro and, in fact, can be found in almost every country in the world to a greater or lesser extent. Wherever such companies appear, they represent a serious threat to the state treasury. Though they appear all over the world, companies specialised in evading tax payments are most commonly found in the less developed countries of the world. This is perhaps because elements of the state apparatus itself are aiding and abetting illegal money flows, or perhaps because pourer countries have less funds available to train tax investigation officers to fight the trend effectively. In Serbia there are two kinds of phantom companies adept in the business of money laundering or tax evasion. The first are registered in Serbia though, as a rule, they do not actually deal in the area for which they are registered and are not based at their officially registered premises. They import goods to Serbia through a process that is completely legal until customs clearance is granted. In other words, the importer pays all customs taxes and then, once clearance is granted, the goods simply disappear, penetrating the grey zone and never again being subject to applicable taxes. The second kind of phantom company in CorD | October 2004

Serbia is the money-laundering outfit. These companies are mainly based in taxhaven states and they play the role of go-between. For example, a company from Serbia purchases products from abroad and those goods are invoiced - according to their real value - to a company registered in one of the tax-haven countries. Then the go-between company either fabricates rental of said goods to the Serbian company, thus bypassing customs and other taxes, or simply invoices the goods at Vladan Begovic, inflated prices, facilitating former head the transfer of foreign curof customs for Serbia rency from Serbia to legal floats abroad. According to research carried out in Serbia at the turn of the millennium, around 32 per cent of Serbia's gross national product is embezzled in different illegal ways. According to figures released by OECD between 1989 and 2002, the grey economy in developed countries accounts for between 8.7 and 28.5 per cent of economic activity. The lowest levels are found in the U.S. (8.7%) and Switzerland (9.4%), and both countries have managed to maintain such a low level throughout the last decade. The highest levels of grey market activity in the integrated world are found in Greece (28.5%), Italy (27%), Portugal and Spain (both 22.5%) and Belgium (22%). Countries experiencing an increase in recent years include Austria (1.6% rise) and Germany (1.4% rise). A review of such activity in countries of the former Soviet Union placed Georgia top of the list (66.1%), followed by

between the customs and tax authorities" during his time. "During that period", he explained, "the main task of customs officers was to prevent the smuggling of excisable goods - cigarettes, alcohol, etc. Officers of the tax police were only present at major border crossing and their duty was to check importers together with customs officers". Begovic added that confusion reigned because smuggling operations were constantly revealed, some of which were classic green-line smugglings and others were facilitated by border guard corruption. "However", he went on, "the other part was foreign trade circulation where the goods were declared at the customs, the custom taxes were paid, and then the tax was not paid because it was shown that those companies did not exist. I do remember that there was big trouble regarding the confiscation of goods because the owners of phantom companies went on to prove later either that the goods were only in transition or that the company did in fact exist. I think that such phenomena cannot be stopped without the help of the police". According to Begovic, though the most common goods being smuggled were excisable products, activities of phantom companies caused the state to lose out the most on electrical goods, computer equipment and textiles, mainly originating from Turkey or China. In addition to tax and customs administrations, civil courts also have a major role to play in discovering phantom companies. The electronic register of all courts, as one of the key sub-systems of the unique information system, began to function last year. The electronic register allows quick, accurate access to information relating to around 150,000 companies and banks. Milena Arezina, former president of Belgrade's Commercial Court, insisted that phantom companies in Serbia are a "speciality" of the commercial courts, as specialised judges work in cahoots with tax evaders, bringing them into the register. Arezina claimed that there are literally thousands of phantom companies in the country. The former official said: "Those companies experienced a boom in the period between 1994 and 1998. The know very well which judges have the "The main way to establish a phantom company is by police biggest number of phantom companies on their means of a "good connection" between the Commer- register. In 1997 one judge registered 25 phantom cial Court, where registration is carried out, the police, companies in one day. main way to establish a phantom compain order to prevent any "poking around", and all other ny is "The by means of a "good connection" between the jurisdictions in accordance with the owner's needs. Commercial Court, where registration is carried out, the police, in order to prevent any "poking Azerbaijan (60.1%) and Ukraine (51.2%). The same research cararound", and all other jurisdictions in accordance with the owried out in Central and South-East Europe revealed that the highner's needs. The establisher of the phantom company is, of coest percentage of grey economic activity is found in FYR urse, from the mafia milieu and his name always remains secret". Macedonia (45.1%), followed by Bulgaria (36.4%), Croatia The establishing of competent systems in all 18 Commercial (32.4%), SCG (32%), Hungary (24.4%) and the Czech Republic Courts in Serbia, to ensure key information regarding companies (18.4%). The lowest levels in the region were found in Slovakia is easily accessible to all interested parties, took place last year. (18.3%). Of the former Yugoslavia states, the lowest percentage This greatly enhances the process by ensuring it is no longer for 2000 to 2001 was found, not surprisingly, in Slovenia (26.7%). necessary to perform laborious searches of archives and antiIt is noteworthy that all the countries in these two groups quated registers. As such, the registering of companies is much experienced a marked rise in grey economic activity in the troueasier, as is the inputting, processing and changing of data, and bled period between 1990 and 1993. information exchanges. The electronic register should include all relevant company CUSTOM - TAX ADMINISTRATION CO-OPERATION data, its founding capital, authorised person/s and the sphere of the firm's activities. The database should also include the necThe tax police and Customs Administration only recently essary tax registry number required for every legal entity and began working together to identify phantom firms. The taxation any changes to the register. The electronic tax register was preadministration explained to CorD that this co-operation equates sented in January 2003, at which time it was emphasised that to "a constant exchange of data regarding companies suspected the new way of recording evidence would deal a serious blow to of avoiding payments of tax and companies identified as having phantom companies. It was also announced at the time that the breached tax, customs and foreign trade regulations". connection of this information system to the Interior Ministry, Vladan Begovic, former head of customs for Yugoslavia, and Statistics Bureau and Inland Revenue would prove crucial in the later Serbia, said that there had been "no direct communication fight against the grey economy.â&#x20AC;˘

CorD | October 2004

Interview H.E. Chehade Mouallem, Lebanese Ambassador to SCG The seemingly never-ending conflict of the Middle East has devastated many lives and caused untold suffering to millions of people. But of all the places to witness the horror of war, perhaps the Lebanon, and particularly its capital Beirut, will be remembered by all as one of the hardest hit. The war that raged between 1975 and 1990, which erupted as a result of internal religious tensions and foreign meddling, turned this once prosperous state into a rubble-strewn, rotting corpse of a nation. By Nina Nicovic, Photo Mirjana Kotlaja

owadays Lebanon is a country on the road to recovery; a nation rebuilding its cities, learning to co-exist again and creating economic prosperity. This month CorD speaks exclusively to H.E. Chehade Mouallem, Ambassador of Lebanon to Serbia & Montenegro, about the post-war challenges his country has overcome and the obstacles it has yet to remove. "There were many priorities after the war", explains Mr. Mouallem. "A lot of areas were destroyed during the conflict, particularly downtown Beirut. Two years ago central Beirut became the world's largest building site for several months. We have now completed reconstruction of all of central Beirut and the surrounding suburbs. We have also rebuilt our infrastructure and enhanced our road network and motorway system. We have rebuilt political institutions and Lebanon has held several parliamentary and presidential elections since the war. Everything was damaged by the war. Now we can say that we've resumed a very normal life. The war is behind us and we are looking only to the future." In 1991, the Lebanese Government introduced a General Amnesty Law granting immunity from prosecution to anyone accused of committing war crimes in the country between 1975 and 1989. Is that law making it difficult for the judiciary to do its job and prosecute suspected criminals? The Amnesty Law covers any crime committed during the war. However, crimes committed in the peaceful post-war period are not covered by the law and are the same as any other crime.

LOOKING regarding the Middle East crisis. There has been a lot of UN resolutions and one of them requests that Israel recognises the right of Palestinians to return to their homeland. None of these resolutions have been upheld. When Israel withdraws from Lebanese territory and other Arab areas, such as the Golan Heights, agrees to facilitate the establishing of a Palestinian state and withdraws from the West Bank and Gaza, perhaps peace will be very possible.

Turning to economics, what are the most appealing areas for foreign investors in Lebanon now? There are investments in all fields in Lebanon. We particularly rely on investments from the Lebanese Diaspora. We estimated the funds of Lebanese people living abroad to be dozens of billions of dollars. We are trying to create tax and other incentives to Lebanon is a country of religious minorities. There attract this money so it can be invested in Lebanese projThere have been lots of investments in tourism. We are 19 official minorities and religious communities ects. have built many new, modern hotels in Beirut. Furtliving peacefully in Lebanon. Any foreign element in- hermore, large, ambitious tourist projects are to be impleterfering with this formula could affect the balance mented in Lebanon. We estimate that the number of foreign tourists visiting Lebanon by the end of the year will How are relations between Lebanon and Syria at this time? reach around 1.3 million - almost half the Lebanese population. So We have a very good relationship with Syria, which covers all far we have, I think, played host to around a million tourists, mainkinds of individual relations. ly from Arab countries or Lebanese people who live abroad. Have the Lebanese people put behind them everything that went on between them and the Syrian people during the war? Many terrible things happened during the war, but we have now got over them. We are finished with the war. Will Lebanon seek to reconcile differences with Israel? We have an ongoing problem because Israel is still occupying parts of southern Lebanon and is not respecting UN resolutions

CorD | October 2004

It is estimated that Lebanese citizens living abroad bring back $1.95billion to the country every year. How is the government using these funds to boost reconstruction or investment? Lebanese expatriates send money to their parents or other relatives. Many Lebanese people remained in the country during the war, despite the country's economy being all but destroyed and no work being available. These people relied solely on their relatives or friends abroad to survive. The money they now send back is

Israel must respect UN resolutions

AHEAD pumped into the monetary and financial circuit and contributes greatly to Lebanon's economic growth. Are the ports of Sidon and Tripoli active again as terminals for petroleum from Saudi Arabia and Iraq and, if so, has the war in Iraq affected them? As far as I know, they should function normally. The war in Iraq minimally affected business, but other pipelines transporting petrol from other countries are working normally. Your country has accepted many Palestinian refugees. Are they still part of your society? They are still here, living in Lebanon like Lebanese do. The Lebanese Constitution stipulates that when Palestinians have their own state they should have the right to go back to their homeland. This stipulation enjoys unanimous consensus in Lebanon. This [the lack of a Palestinian state] is a major obstacle to peace in the Middle East because having such a large number of Palestinians in Lebanon affects the country's political and social balance. We are determinedly working continually to implement the UN resolutions acknowledging the rights of Palestinians to return to their homeland. How precisely does the large number of Palestinian refugees affect the political and social balance? It creates problems in every area because it affects the demographic balance. As you know, Lebanon is a country of religious minorities. There are 19 official minorities and religious communities living peacefully in Lebanon. Any foreign element interfering with this formula could affect the balance and have consequences on coexistence and everything in Lebanon. It could endanger everything.

How was the disarming of ordinary citizens handled after the war, consider the abundance of weapons in the country? I think many Lebanese people possessed arms and they were asked to surrender these weapons to the legal authorities. Now we have a situation that is very much under control with regard to the possession of weapons, the fight against terrorism and the struggle against crime. Considering how widespread the problem of terrorism is, have there been any reports of attacks in Lebanon or similar activities? No. Lebanese authorities are controlling the security situation very well. We are enjoying a climate of security and living quietly. Interpol has classified Lebanon as one of the best countries in the world in the fight against crime and terrorism. You can see on the daily news that, post-war, terrorism does not exist in Lebanon. We have almost never suffered from terrorist attacks or activities because our authorities actively co-operate with international organisations in the war on terrorism, drug trafficking and all kinds of crimes. What do you expect to happen regarding war crimes committed during the Lebanese War that could be tried before international courts, considering that The Hague Tribunal and the Belgian Court are not authorised to handle the issue and it remains unclear whether German courts will prosecute any crimes against humanity? Personally, I think the UN should take charge in this matter and create a single tribunal to prosecute against all crimes against humanity committed worldwide. However, many countries oppos the formation of such a tribunal. It would prove very difficult to create a tribunal that would be recognised by every country in the world and be empowered to judge all war crimes or crimes against humanity committed across the globe. This should be the result of long and lasting political progress, international relations and co-ordinated efforts.â&#x20AC;˘ CorD | October 2004

Local elections

Opposition

rules By Mirjana Vujovic, Photo Mirjana Kotlaja

Nenad Bogdanovic

The recent local and provincial elections in Serbia resulted in a sense of deep satisfaction for the country's largest opposition parties - Serbian President Boris Tadic's Democratic Party (DS) and Hague inmate Vojislav Seselj's Radical Party of Serbia (SRS) - while the parties of the Government coalition continue to flounder in the sea of Serbian politics. Aleksandar Vucic

ust as was the case in June's presidential elections, the city and municipal elections have left the two opposition parties in a position where they could, if they so desired, take power from the government with ease. DS and SRS, if they were so inclined, could take power in the greatest part of Serbia and, with a little help from weaker opposition parties in the Serbian Parliament, bring down Vojislav Kostunica's government. The local elections only served to further highlight the weaknesses of the ruling coalition, with Kostunica's Democratic Party of Serbia (DSS) placed third nationally, and the three other government parties - G17 Plus, The Serbian Renewal Movement and New Serbia - making up the also-rans. These results came as a shock to nobody, except perhaps the strategic marketing companies paid by the government's parties. One surprising result was the poor showing of media mogul Bogoljub Karic's Force of Serbia, which was predicted to consolidate its position on the scene, but actually won much less support than party leader Karic achieved at the presidential elections. Despite an extremely low turnout - just under 35% - participation was much higher in the more multiethnic areas of the country, such as Vojvodina and Sandzak. In Vojvodina, apart from SRS, DS and DSS, the Alliance of Vojvodina Hungarians and the Together for Vojvodina coalition received significant support. In Sandzak, Bosnjak parties, led by Rasim Ljajic and Suljeman Ugljanin, won the majority of votes. The Radical success in Vojvodina was no surprise to the general public in Serbia, considering recent ethnically motivated incidents in the northern province and, perhaps more significantly, the great

CorD | October 2004

influx of refugees from Croatia and Bosnia & Herzegovina over the course of the past 15 years. Though overall results favoured opposition parties, it has become clear, once again, that no single party will be able to form local governments alone and the forming of coalitions will be a must. None of Serbia's four largest cities - Belgrade, Nis, Novi Sad and Kragujevac managed to elect a mayor in the first round of voting and a secondround run-off has been scheduled for 3rd October. It is noteworthy that DS candidates will compete in all four second-round elections: in Belgrade, Nenad Bogdanovic against SRS candidate Aleksandar Vucic; in Novi Sad, Borislav Novakovic against SRS candidate Maja Gojkovic; in Nis, Goran Ciric against New Serbia's Smiljko Kostic; and in Kragujevac, Dragutin Radosavljevic against Veroljub Stevanovic, candidate of the Together for Kragujevac coalition and senior official of the Serbian Renewal Movement. Before election results had even been released, DS were already officially expressing their openness to form coalitions with any or all democratically orientated parties; and their expectation that their candidates for mayors and borough leaders would gain support from followers of other democratic parties wherever they face SRS in the second round of voting. Nenad Bogdanovic, DS deputy leader and Belgrade mayoral candidate, stressed that negotiations on forming local government coalitions would be held during the next fortnight. He noted that the most likely partner would be DSS, with whom they have led the Belgrade City Council for the past four years. However, poor showings by both parties in some Belgrade municipalities - such as Zemun and Zvezdara - ensure that a DS-DSS coalition will not be sufficient to establish control without the seats of the Force of Serbia.

As such, Bogdanovic has not ruled out such a coalition. Regardless of their inability to win an outright majority, Bogdanovic insisted his party is "satisfied" with local election results. DSS also expressed their openness for coalition-forming talks with DS and other political options, logically hoping to continue cooperation with the parties with which they have successfully led local councils to date. Kostunica's party indicated that the executive board of the party would make decisions regarding coalitions and secondround support. They added that any co-operation with SRS should not be expected, despite the fact that many DSS members and followers find the Radicals much more attractive bedfellows than DS. That call came after Tomislav Nikolic, SRS deputy leader, called on Kostunica to cooperate with his party, as he had after both the parliamentary and presidential elections. As with DS, The Radicals expressed their deep satisfaction with election results and, although they are widely expected to win the mayoral race in Novi Sad, analysts claim that they are unlikely to be in a position to form local governments. This is because, even if they were to combine forces with Slobodan Milosevic's Socialist Party of Serbia, parties of the democratic bloc boast the majority in most towns and municipalities if they agree to join forces. With the success of the opposition parties, the question of how long Kostunica's minority government can cling to power has once again arisen. According to DSS, "parliamentary elections are one thing and local elections are another". In other words, the Government will remain in place as long as it maintains its slim parliamentary majority. Tadic's DS has also indicated that the administration is not under threat, again repeating their intention not to bring the government down. However, they added that they would not join the government and are, rather, in favour of cohabitation. According to analysts, the situation is of great benefit to DS, which is slowly winning support from voters previously loyal to other parties of the democratic bloc. They also note that, if push came to shove, they could easily "jump in" if the Socialists revoke their government support.

Making post-election comments, PM Kostunica said: "Local elections influence and reflect the mood of voters. They can, and do, influence the results of parliamentary elections, but there is no direct connection between them. We are satisfied with the results and will continue the work commenced by the Serbian Government, which includes finalising the new Serbian Constitution and implementation of legislation that has to be passed". Analysts warn that, despite no direct link between local and general elections, the Serbian Government has been severely "shaken" by

Analysts warn that, despite no direct link between local and general elections, the Serbian Government has been severely "shaken" by these latest results. these latest results. Respected political analyst Vladimir Goati told Belgrade's media that the latest election results are in direct contrast to the balance of power in the Serbian Parliament and will prove yet another element obstructing the work of the minority government. According to Goati, this problem could be solved by a cabinet reshuffle or fresh parliamentary elections. Failing that, the Government is likely to "plod along with its work". Many expect extraordinary general elections to be called for spring 2005, at the latest. However, it is abundantly clear that this would not suit a faltering ruling coalition still reeling from local election results, coupled with the fact that PM Kostunica hopes to implement the new Serbian Constitution during his mandate. Tadic is perhaps the only senior politician not obstructing the government. The Serbian and DS President's continued status quo is not only strengthening his party's support, but it is also appeasing an International Community that wants to avoid further instability in Serbia at all costs. If the current situation continues, DS and DSS could be forced to come closer together and again work in unity, as they did during the early days of DOS rule. This marriage would undoubtedly last until both parties estimate that it is time for a new division of power.â&#x20AC;˘

Politics

Constitution prepared in hiding?

According to recent claims of Belgrade's tabloid press, leading political parties in Serbia are negotiating the new Serbian Constitution. So, is the new Serbian Constitution being prepared far from the public eye? By Jasmina Spasic

Speaking to CorD, Markovic said: "Everybody knows how things stand since I informed both journalists and members of espite the reports of local sensation-driven print media, parliament when I presented the analyses of 16 draft proposals Serbian Parliament president Predrag Markovic - the for the Constitutional text. We have received another two such most authorised person to answer such a question in his proposals since then and we now have a total of 18. They are all secondary function as president of the Parliamentary recorded in electronic form and there are no great differences Committee for Constitutional Matters - flatly denied that there between them. was anything secretive about negotiations. According to "According to my estimation," he continued, "in order to Markovic, work on the wording of the new Constitution has reach an agreed version of the text we need to have the political will and solve three controversial technical issues. â&#x20AC;Ś it was agreed that the final proposal of the text for I am reminding you that the public and expert disthe new Constitution should be prepared in harmo- cussion with regard to the new constitution has been ongoing for the last three years, as well as the ny and that local election campaigns should not fact that the Serbian Parliament decided to pass the have any influence on the work of the Sub-Committee. new constitution in the way regulated by current Serbian Constitutional Legislation. I would also been kept out of the public eye purely to ensure that it is not like to remind you that the Sub-Committee, made up of one repinfluenced by campaigns for the forthcoming local elections. resentative from each party, was established in order to give an Following the elections, scheduled for 19th September, the G17 authorised opinion of the draft proposals. Finally, I must remind Plus member expects positive news regarding the process of you that it was agreed that the final proposal of the text for the finalising the new Serbian Constitution to be made public. new Constitution should be prepared in harmony and that local

CorD | October 2004

election campaigns should not have any influence on the work in a referendum on amending the Constitution - the very reason of the Sub-Committee. why previous such referendums were staged at times when "All those elements exist and after the local elections on 19th other elections were being held. As such, February next year is September we will see what the Sub-Committee tasked with recperhaps the most viable time for a constitutional referendum, onciling the text of the Constitution has done in the meantime. with those turning out to vote for Serbian & Montenegro instituI am expecting, therefore, that there will be steps forward after tions lessening the chances that the required turnout would not the electoral campaign." be achieved. Commenting on the two latest proposals for the Interestingly, when asked whether the Radicals have Constitutional text - one submitted by the Government and the dropped previous demands, Vucic alluded to the possibility that other offered by "a group of experts from one political party a more solid agreement on the Constitution had been reached the parliamentary speaker said that the latest presentation of a between his party and the ruling coalition. Previously, the oppoproposal for a draft Constitution was made on 31st August by sition giants blocked the Committee for Constitutional Matters Bogoljub Karic, Serbian media mogul and president of new politby opposing the suggestion that every party should provide one ical party Force of Serbia. representative to the sub-committee tasked with drafting the Also speaking to CorD, Constitutional Matters Committee Constitution. At the time, the Radicals argued that the group member Zarko Obradovic insisted that no progress had been responsible for drafting the Constitution should mirror the parmade on the work of the new Constitution. He said: "Nothing liament, with proportional representation. Responding to the connected with the work of the Committee was done, apart from question of whether or not their conditions had been accepted, the holding of two meetings. In the last four or five months comVucic said: "our conditions were mostly met and I think there mittee members have not met once. They did not even meet to will even be some additional agreement." discuss the Serbian Government's proposal, despite the draft of The Radical Party's blocking of the Committee occurred the Constitution being presented to the Parliament in June". prior to this June's presidential elections. Until that time, it was Obradovic is a senior official of Slobodan Milosevic's expected, and indeed announced, that the constitutional draft Socialist Party of Serbia (SPS), which currently supports the minority government. February next year is perhaps the most viable time for a Serbia's existing Constitution was adopted constitutional referendum, with those turning out to and implemented by SPS in the early days of vote for Serbia & Montenegro institutions lessening the their ten-year rule. As such, it is perhaps logical that Obradovic would interpret chances that the required turnout would not be achieved. Markovic's obvious optimism in a negative way. Continuing his attack on the Parliamentary president, would be finalised, passed through parliament and ready for a Obradovic emphasised: "the issue is that Markovic belongs to referendum to be held on the day of the second round of the G17 Plus, which is trying to present itself as an efficient party presidential vote. In addition to pragmatic, political reasons, this when in fact it is not at all". date was selected because the following day - when the Undoubtedly, the key to adoption of the new Serbian Constitution would have been declared - was Vidovan: a great Constitution will be the position of the Serbian Parliament's sinand historic Serbian religious holiday. gle strongest party - the opposition Serbian Radical Party. The The blocking of the Constitution's compilation, which was standpoint of the Radicals is particularly crucial because constinot even remedied by PM Kostunica - who admonished himself tutional amendment procedure calls for a two-thirds majority in in a June statement for not finding more time to dedicate to the parliament supported by a referendum in which 50 per cent of matter - whipped up a series of speculations. All the various the registered electorate participate. The Radicals, whose leader, rumours ultimately amount to one notion: that implementation Vojislav Seselj, is alongside Milosevic in The Hague awaiting of the new Constitution is a matter tactically crucial to the key trial, hold exactly a third of seats in the Serbian Parliament and, political parties in their estimation of whether or not it would be even if the parliament do manage to approve constitutional beneficial at a particular time. changes without Radical support, it is difficult to imagine a conOne such suspicion was that the Radicals and PM Kostunica, stitutional referendum succeeding if the party call on their supof the Democratic Party of Serbia, had agreed that victory for porters to boycott the vote. Democratic Party leader Boris Tadic in the presidential race Aleksander Vucic, senior Serbian Radical Party official and would prompt them to quickly change the Constitution to procandidate for Belgrade Mayor, is viewed as the man likely to vide for the post of Serbian President to be elected from within transform the orientation of the party from the far right to the the parliament, thus "depriving" Tadic of a genuine victory. moderate right. He concurred with Markovic by denying that Another rumour was that the Constitution would lead to secret negotiations regarding the new Constitution were being fresh elections at all levels, in order to re-establish all instituconducted. tions. For instance, if numbers of parliamentary seats were Vucic asked: "How can something be a secret if all of the decreased from the current 250 to around 150, as envisaged by media reported on talks between Tomislav Nikolic [Serbian many drafts previously circulated, the notion of tactical impleRadical Party vice-president] and Vojislav Kostunica [Serbian mentation would hold water. It is realistic, therefore, that politiPM]?" However, Vucic admitted that he knew nothing of the cians' promises that the new, non-communistic, non-socialistic activities of the Committee for Constitutional Matters, saying: "I Constitution must be passed are heavily dependent on party have no knowledge of when, or whether, the Committee has political popularity gauged by the upcoming local elections: if begun working. But I do know that there is some sort of politithe governing coalition parties fair poorly at the elections they cal accord to create a new Constitution". could estimate that passing the Constitution is one of their Asked if the deadline for adoption of the new Constitution strongest chances of boosting popularity. and scheduling of the required referendum could be February One thing is certain, and that is that constitutional matters 2005 - when elections for State Union institutions are due to be will become more tactical than ever before in the weeks and held - Vucic said: "It is possible that would be a feasible deadmonths ahead. Particularly because Serbian President Boris line, but I think it would be better if it were earlier". Tadic has stated that co-operation in drafting the new Vucic continued by voicing doubts as to whether it would be Constitution is one reason why his Democratic Party have not possible to persuade at least half of the electorate to participate yet brought the current Government crashing down.â&#x20AC;˘ CorD | October 2004

CorD Club ATLAS

Atlas coach immortalised Drazen "Praja" Dalipagic, team manager of SCG basketball club KK Atlas, became the latest Yugoslav to enter the American NBA's Naysmith Hall of Fame on 10th September. Dalipagic, whose nomination was supported by SCG basketball clubs, the SCG Basketball Federation and media representatives, was finally included in the prestigious hall of fame in recognition of his

contribution to European basketball as a player. This year was the third time he'd been nominated. Since ending an illustrious playing career for clubs in Serbia and Italy, Praja embarked upon a coaching career, initially as team manager of Red Star Belgrade, then as vice-president of Partizan Belgrade and now as team manager of KK Atlas. The hall of famer joined new club Atlas at the start of 2004 and he is attempting to use his vision and vast knowledge of the game to build a serious club capable of challenging the best Europe has to offer.•

EXPAT

Expat foundation established

A group of women among the foreign resident community in Belgrade last month established the EXPAT foundation. Explaining the aims of the new organisation, one of the founders, Camelia Fawzy, said: "Our goals are to support and promote social and humanitarian projects through the foundation's website, in order to help foreign nationals living and working in Belgrade to better enjoy living in Serbia & Montenegro. We also aim to better promote "corporate citizens" - companies involved in social and humanitarian activities." The foundation is to launch and English-language website www.expat.co.yu - the advertising revenue of which will be used to sponsor social and humanitarian activities in the state union. It is hoped that advertisers will be companies targeting the expatriate community in SCG. Visitors to the new website will be able to access useful information about Belgrade life and vote on their favourite social or humanitarian projects. According to Ms. Fawzy, "It is important to promote companies with a social conscience in Serbia & Montenegro's transitional economy. These companies can promote them themselves on the website as good corporate citizens by detailing their involvement in social and humanitarian actions and projects".•

AUSTRIAN AIRLINES

Austrian Airlines on the up Austrian Airlines has seen a passenger growth of 14% in the first eight months of 2004, compared to the same period last year. The airline, which carried 6,373,491 passengers during the period, credits their

strategic growth success to an increased focus on traffic to and from Austria, westeast transfers and long haul services, particularly to Asia and Australia. Austrian Airlines invites all residents of Serbia to fly from Belgrade, via Vienna, to the whole world. The airline runs 10 regular flights from Surcin Airport.•

U.S. STEEL

New U.S. Steel - Serbia project U.S. Steel - Serbia announced on 8th September that added investments in excess of $38million would increase productivity at the Smederevo forgery to 2.2 million tonnes per year, which is the projected capacity of the Smederevo works. Funds will be used to repair and modernise blast furnace #1, which has been out of use since 1987. Work on the blast furnace is scheduled to be completed by mid-2005, doubling current production levels. The project also aims to modernise two continuous casting machines, which are used to convert liquid steel into crude steel for production of flat milled steel sheets. Smederevo's oxygen converters will also be improved, increasing tonnage capacity from 90 to 112 tonnes. According to Thomas Kelly, U.S. Steel Serbia's general director, in a letter sent to more than 9,000 company employees: "the project has already started and our plan is to increase production of steel at Smederevo to 2.2 million tonnes before the end of next year, which will be well ahead of the planned deadline". He continued: "we are well on the way to economic success and are coming closer to the moment when we will start making a profit. It is clear that we are moving in the right direction. I am convinced, more than ever, that U.S. Steel - Serbia is a company with a very bright future".•

SWEDISH EMBASSY

Swedish embassy relocates Belgrade's Embassy of Sweden has moved to a new location in the Serbian capital. The doors of the new Dedinja embassy opened on 21st September. New contact

CorD | October 2004

CorD Club details for the embassy, located at 2 Ledi Pedzet Street, 11040 Belgrade, are as follows: tel: 011 20 69 200; fax: 011 20 69 250; fax visa: 011 20 69 251; e-mail: ambassaden.belgrad@foreign.ministry.se; e-mail visa: ambassaden.belgrad-visum@foreign.ministry.se; home page: www.swedenabroad.se/Belgrade.•

CONTINENTAL BANK

CONTINENTAL BANK a.d. NOVI SAD Novi Sad's Continental Bank a.d. operates as a universal bank with business dealings directed towards resolving the financial requests of its clients and business partners in accordance with their desires and needs. To its co-operative partners and clients, Continental Bank offers all kinds of banking services, in both dinar and foreign currency transactions. The Bank's head office is in Novi Sad and its business network includes nine main branches in the most important economic centres in Vojvodina and Belgrade. Continental Bank belongs to the elite club of banking institutions in Serbia. The main principle of operating and the longterm aims of the bank are directed towards making a profit on the basis of market criteria. Continental Bank is one of the first three Serbian banks to be involved in the process of privatisation. They are expecting that they will soon join prominent world financial institutions and, thus, be in a position to further improve their services. Within the business system of Continental Bank there are another three companies. Those are Conet - which deals with foreign trade, Contours - tourist agency, and Convest - a brokerage organisation, which offers full services in the field of mediating on the financial markets and consulting services.•

DELTA

International recognition for Delta Delta Bank's outstanding business activities and leading position on the domestic market has been internationally recognised at the highest level. International magazine The Banker, owned by the Financial Times Group, has awarded Delta Bank with the prestigious Bank of the Year in Serbia & Montenegro award in recognition of its excellent financial results for 2003/4. At a ceremony held in London on 7th September, Mrs. Draginja Djuric, director general of Delta Banka, received the award

on behalf of the Serbian bank, saying: "The secret of the business results and the leading position of Delta Banka, not only on the domestic market but region-wide, is its diverse and modern banking services, both in corporate and retail sectors, and operations according to current world standards." She continued, explaining: "Its sophisticated information system, as well as other technical, personnel and organisational advantages, ranked the Bank first even in new businesses like payment operations. Its permanent devotion to the needs of staff and clients, constant progress, good market knowledge, improvements in quality of services and business confidence distinguish the bank and increase its number of clients noticeably. The excellent market position with developed business network and many correspondent banks world-wide continue to significantly influence its success." This is just the latest in a series of inter-

national recognitions that Delta Banka has received this year. Three months ago, financial magazine Finance Central Europe, analysed activities of 100 banks in the region of south-east Europe and adjudged Delta Banka the best mid-sized bank in South East Europe, the best bank in Serbia & Montenegro, the best bank in Serbia & Montenegro by gross profit and by ROE (Return on Equity) in 2004. Mrs. Djuric has also been declared Banker of the Year in Serbia & Montenegro.•

OMV

Routex cards OMV is the leading Oil Company in Austria and Central Europe and offers a quality network in Austria, Bavaria, Hungary, the Czech and Slovak Republics, Bulgaria, Romania, Slovenia, Croatia, Serbia and Northern Italy. OMV offers first class fuels and convenience retailing to the traveling public. OMV sites are strategically located along the main traffic arteries of central Europe. Special services for commercial customers

are offered where appropriate. What is Routex? 1. More quality 2. More security 3. More convenience The ROUTEX alliance with Aral, BP, ENI, OMV and Statoil is offering you a high quality and quickly expanding network of excellent sites. The network is accessible through each participating company's commercial fuel cards which are accepted at over 17,000 participating sites in 33 countries across Europe. As part of ROUTEX, each participant provides national and international truck and fleet customers with the best possible offer of fuelling opportunities and related services in Europe and at the same time ensures the delivery of high quality products and services at the participating sites. With OMV Routex Card you will have two times in a month issued invoices for products and services bought during the month with seven days term for payment which will make your life easier. It will also decrease your administration, optimize your company costs and give you full control of transport costs. For your convenience together with issuing the invoice two times in a month you will receive detail report of products and services you bought on OMV petrol stations. This report is giving you detailed information about the site, date and hour of tanking fuel, type of bought product, quantity, price, car registration and by clients needs odometer status with average fuel cost. One more thing wich make you easy to track is that OMV Routex card gives you the possibility to limited costs of your employees in accordance with giving you special service through six service code for each OMV Routex card for buying products and using services. You can use card on all OMV petrol station on territory of SCG. Card identification is done with magnetic track and unique PIN code. Its PIN code makes this card impossible for missus. Hologram sign guarantee additional protection and identification of OMV Routex Card.•

CorD | October 2004

Interview By Jelica Putnikovic

n his interview for CorD, acting general director of NIS, Zeljko Popovic, claimed that "in such a way, all derivatives on the domestic market will be provided and there will be no shortage of petrol or diesel". It has been suggested that NIS does not have enough oil reserves. Could the price hike on the world's crude oil market prompt a serious crisis in Serbia? All these estimates that NIS has sufficient reserves of oil derivatives for only five days do not hold water. NIS currently has enough for 30 days. Half this quantity is stored in refinery reservoirs in Novi Sad and Pancevo, and the other half is in NIS Jugopetrol and NIS naftagas. Thus NIS is able to provide regular supplies of all derivatives to the market.

Serbia needs large, serious companies that will meet the energy balance and NIS needs competitors that will not misuse the inconsistencies of legislative regulations, but rather strictly respect contracts and their obligations. With the extraordinary import to come during October, NIS can also intervene with the additional import of 80,000 tonnes of crude oil in October. I am convinced that we can avoid any eventual shortfall.

Zeljko Popovic, acting General Director, NIS

No crisis In an effort to avoid entanglement in the world oil crisis, Serbian Petrol Industries (NIS) and the Serbian Ministry of Mining and Energy have announced plans for intervening import of 110,000 tonnes of crude oil, which was due to arrive during September. NIS is obliged, in accordance with the energy balance, to cover 75 per cent of requirements. However, company officials claim they have sufficient internal reserves to provide the domestic market with over 90 per cent of its needs. 46

CorD | October 2004

Yet the shortage has already been felt in Serbia - at private petrol stations. If there is no crisis, what was this really about? In the first quarter of this year, crude oil prices stood at $27 per barrel. By September it reached almost $45. Due to obligations to import 240,000 tonnes of crude oil in the third quarter, assumed for fulfilment of state energy balances, private companies signed contracts to import 180,000 tonnes. However, because they were waiting for a drop in prices they only imported 30,000 tonnes, which equates to only 12 per cent of requirements. Now, when the price of crude oil on the world market has begun to drop [to between $35-36 per barrel], private importers are waking up. Serbia, however, needs large, serious companies that will meet the energy balance and NIS needs competitors that will not misuse the inconsistencies of legislative regulations, but rather strictly respect contracts and their obligations. Such companies do not expect to generate a profit on every single business transaction. As a consequence of the shortages, private importers claim the market supply disturbance was a result of the State refusing to approve an increase in petrol and diesel prices. Is that so? Whilst waiting for the price decrease, private importers hold stocks of 50,000 tonnes of derivatives, yet they put pressure on NIS to provide them with derivatives. All of those attacks, particularly those from AD Nafta, are fabricated. Since 1st July this year, private companies have imported over 10,000

tonnes of fuel to Bosnia - mainly short supply derivatives such as euro diesel and unleaded petrol - which they obtained from NIS.

Did the Serbian State actively help NIS to overcome the petrol crisis and, if so, how? NIS provides 23 per cent of the Serbian Budget. A decrease of just a few percent has a significant affect on the country's budget. Our figures show relative participation of the State in the

Is it possible that such behaviour from private companies could result in some form of sanctions? It is possible that fourth-quarter contracts with those companies failing to fulfil Nobody was even considering purchasing refineries, but agreed third-quarter import levels could be now the situation has changed in our favour as a direct cancelled. But, at a time when world crude result of developing investments in refineries. Now we oil prices are high and not adequately reflected by fuel prices on the domestic marare in the position where we can privatise NIS under ket, NIS cannot "leap" from its 75 per cent much better conditions than was possible a year or two ago. provision obligation and suddenly take care price structure fell from 55 to 52 per cent and, as regards diesel of more than 85 per cent to "cover" the need for oil derivatives fuel, from 64 to 61 per cent. on the domestic market. Everybody with the right to participate on the domestic market also has a duty to meet obligations and Is Beopetrol-Lukoil among the companies that failed to satisfy the quotas they assumed responsibility for. fulfil agreed obligations? Yes. They too did not import a single tonne of petrol in the Why does NIS not penalise private companies for failing third quarter. to meet their obligations? It was only after I was appointed NIS general director that we Was it this company you were thinking about when you began charging private companies. They tried all sorts of ways mentioned that some firms are feigning shortages in order to to dispute those penalties and, thus, we are now calling for guarforce the government to increase petrol and diesel prices? antees in addition to contracts. If they do not fulfil their conLukoil is NIS's only serious competitor on the domestic martracts they will automatically pay penalties. ket. In fact, we do not consider it a competitor, but rather a partner. With such a company as Beopetrol-Lukoil, which boasts How much do those penalties equate to in real terms? almost 200 filling stations and is backed by parent company Depending on the period in question, they are between $5Lukoil [of Russia], we absolutely do not communicate with them 10 per tonne.

Industry more attractive to investors

CorD | October 2004

Reserves sufficent - for now in the same manner as we do with other players. Because Lukoil has suffered specific business losses, we at NIS have a degree of understanding for both their position and their demands. Is Lukoil one of the companies that you envisage as a future strategic partner of NIS? Absolutely. Our potential strategic partners are in the surrounding area. Firstly, there is MOL [Hungary], which has already purchased 25 per cent of stock in Croatia's INA and is very interested in participating in the privatisation of NIS. Then there is Greek firm Hellenic Petrol, which has already secured its place on our market by buying Kotor-based Jugopetrol. Austria's OMV is another. It competed hard during the sale of INA and is

Are such activities connected only with oil derivatives, or would they include exploration of crude oil and natural gas? Both. The expenses of fossil fuel exploitation are much lower than the cost of buying on the world market. As such, we would like to gain as much oil as possible from our own sources. At present, NIS provides only 16 per cent of the country's requirements from domestic sources. We are extremely interested in finding a partner to aid exploitation from external sources, principally in Turkmenistan and Kazakhstan.

You recently met MOL general director Mr. Bernardi in Budapest. Did you talk about the potential for future strategic co-operation? We agreed to form a working group to investigate all The expenses of fossil fuel exploitation are possibilities of co-operating. In the last few months NIS has balances and taken steps to regulate relationmuch lower than the cost of buying on the consolidated ships with China; we have regulated internal debts and world market. As such, we would like to gain debts to Russia. Therefore, we have become very attractive as much oil as possible from our own sources. to potential strategic partners. In addition, something very satisfactory for us is happening: our potential strategic partners have changed their approach and mindset, compared to just also very interested in the region. Then, of course, there is a year or two ago, and we have received confirmation that they Lukoil, which already has a strong presence on the Serbian marare now interested in the modernisation of our refineries. There ket and a strategic interest in widening its influence over the is a surplus of refineries in the region and, until recently, they market. Lukoil will certainly participate in the privatisation of only expressed an interest in buying the market itself. At the NIS as a potential investment partner. time we were under considerable pressure to sell only Jugopetrol and NAP. Nobody was even considering purchasing Does that mean that forming strategic partnerships will refineries, but now the situation has changed in our favour as a be the first step before privatisation? direct result of developing investments in refineries. Now we are Yes. Apart from easing regular supply of the domestic market in the position where we can privatise NIS under much better in the longer term, strategic partnerships also consider investconditions than was possible a year or two ago.â&#x20AC;˘ ments in domestic refineries and joint activities on other markets.

CorD | October 2004

Obrad Spremic, Siemens Managing Director, Serbian operations

Economic foundations German company Siemens has been doing business in Serbia for over a century, ensuring the company is well acquainted with the local business environment. However, today's poor levels of technological advancement create many difficulties for such a company. The considerable technology shortfall cannot be remedied by sound regulations. However, an environment permitting international companies to conduct their business in Serbia has been created. 50

CorD | October 2004

By Jelica Putnikovic, Photo Dragan Milosevic

here has been significant progress in all sections during the past three years. Regulations create an environment for attracting investors, but technological development requires concrete foundations - so said Obrad Spremic, Managing Director of Siemens for Serbia, speaking exclusively to CorD. The current political climate is most often blamed for the lack of foreign investments. Do you agree this is so? Everyone sees things from their own angle. We are not concerned whether we should come or not, since we are already here and are trying to integrate into the Serbian economy. In fact, we are a Serbian company registered in Belgrade, while our mother company is an international firm. Siemens is the owner of our company

Interview and we operate in accordance with the concern's business policy. The political climate is relevant for those who are still having second thoughts. It is quite normal for a firm to consider where to expand its business. There is also the issue of Serbia's competitiveness in comparison to other countries, especially in the region. When Serbia becomes competitive in the region there will be less reason to hesitate. Without a steady flow of foreign investment it will be hard to kick-start the economy. However, local economy and production has to be the foundation for this process. The base has to be provided by the domestic market. They say that Japan started mass export of photo cameras only after every Japanese citizen had one. Naturally, the segments of the economy that can realistically make it on foreign markets should be export-oriented.

Siemens was behind the revitalisation of the thermo plant generator in the electric plants of the Serbian Electric Company (EPS). Is the company currently involved in some other large projects in Serbia? There are a number of projects Siemens is involved in, but we have internal criteria according to which we evaluate the magnitude of the projects and our role in them. Recently, we took part in projects related to telecommunications, energy and medical equipment. These domains will target larger investments in the next 2-3 years and they will open up a lot of opportunities for labour. Industry is a separate issue. Heavy industry is in the process of restructuring and privatising. It needs time to gain momentum. Natural selection will create an environment in which certain branches of the industry will be able to develop further and

Germany was once Serbia's largest economic trade partner. What are the chances of this economic relationship returning to its previous level? The two countries are natural economic partners, since they are complementary in many ways. Serbian firms will have to win back their place on the German market. It won't be easy, but it can be done.

Large investments are required in the telecommunications domain. The issue is the magnitude of supply and demand. If someone provides a million connections in Serbia, the question is whether there are enough consumers to absorb them.

What are the prerequisites for this to happen? It is clear that harmonising regulations and the economy with EU standards is more than welcome. These are the basics, while there are thousands of concrete steps to take every day. What does Serbia have to offer to the German market? There is a lot of room for co-operation in electronics, energy, telecommunications, medical equipment, IT and automation. In the past there was a relatively high level of co-operation in specific domains and with certain companies. The basic presumption is that Serbian companies could become subcontractors or merge into larger systems. Such as the case of Minel co-operating with Siemens? Not just Minel. We have contracts and institutionalised relationships with close to 25 companies. There is lot of room for co-operation, a certain level of stability and clearly defined regulations are an important component of this relationship. If you have a subcontractor that has entered into the technological chain of production in its home country, you become dependent on this company to a certain degree. This means that business stability, regular delivery and efficient service must not be brought into question. Which other companies partner Siemens? When I say partners I refer to companies that take part in the process of production and creating business projects. There are several hundred companies in Serbia that co-operate with Siemens, who purchase products from us. Their names are not so relevant to list one by one. Siemens has various roles in the business chain, from delivery of equipment to implementation of entire projects in the most vital segments of the economy. We try to maintain this position. There have been a number of projects financed by the EU and international financial institutions, such as the European Bank for Reconstruction and Development, the European Investment Bank and others. There are certain procedures that have to be followed when calling for international tenders. We are well acquainted with these procedures and have a lot of experience in implemented projects such as these. However, one has to remain competitive. The importance of the local company is huge here, since nobody can better estimate which business strategy to adopt than a local partner who is well acquainted with the local scene.

Serbian firms must fight

become attractive for investment. Siemens has the largest number of partners in heavy industry. These companies are not large or widely known. However, with the help of our technology and often our experts who assist them or train their personnel, we cooperate well. Communications are widespread and the expertise of the staff is at a high level. Many, however, lack material resources to implement their knowledge base. If a doctor works on a thirty-year-old scanner, then they are professionally limited to the time when this piece of equipment was the latest technology. With up-to-date technology, the doctor will be able to keep pace with modern trends of the profession.

Spremic hard at work Which companies is Siemens interested in? I am not aware of the latest rumours in this respect. There are official places where these interests are laid out. We have done so with cases that are of value to us. Everything has its own logic. We will be present and active to pursue our interests when the time comes. The companies themselves have announced in many cases that Siemens had shown interest, so there is no point in listing them here. Will Siemens compete at tenders called by EPS for the procurement of counters for electrical energy consumption? Siemens does not produce these counters. How do you value the situation in telecommunications? Large investments are required in this domain. The issue is the magnitude of supply and demand. If someone provides a million connections in Serbia, the question is whether there are enough consumers to absorb them. Telecommunications are always dependent on the consumer base and the Serbian market is far from saturated with telecom services. Siemens has developed a solid co-operation with the University. How was that achieved? Our co-operation with universities in Serbia is fabulous. It goes without saying that our natural partners are faculties of electrical engineering in Belgrade, Novi Sad and Nis. We have agreements on co-operation with all of them, which is carried out in many Has Siemens participated in the privatisation of Serbian aspects. People often have a simplified idea of this co-operation companies thus far? and expect that it comes down to Siemens donating something to We are interested in the process of privatisation, but the comthe faculties. Naturally, we do that as well, but our co-operation is panies that we find attractive have not entered this procedure yet. at a much higher level. We include these faculties in various projThere is a general accord in the company that we should get ects and use the potential and knowledge that they have to offer. actively involved in the privatisation of certain companies. We support their young scientists and researchers during their However, Siemens will not push for any particular company to postgraduate studies or by organising visits to laboratories and enter this process. We are a firm that has specialised in certain research centres. Sometimes we provide them with software packfields of electric technology and it is in this domain that we are ages which they continue to develop. The co-operation is successsearching for a technological partner. This means that we are not ful and useful for both them and us. We have been organising comtrying to assert our presence on new markets, but rather find a petitions in multimedia presentations for primary and secondary partner in Serbia that will supply the Serbian market with our schools for the past four years. More than 400 schools take part in technology. There is one important element that needs further these events. The annual cost of the project is more than â&#x201A;Ź100,000 clarification with a concern such as Siemens. When a company is and it is organised under the auspices of, and in co-operation with, the Ministry of Education. The significance of The importance of the local company is huge here, since nobo- this programme is that, aside from the School of Mathematics that is dy can better estimate which business strategy to adopt than Secondary often the laureate of many international coma local partner who is well acquainted with the local scene. petitions and won third place at last year's event in Munich, the final of the European entering this kind of system, the first question to ask is whether competition was won by the primary school from Backa Palanka. there is a market to justify the partnership. The Serbian market is small in many aspects and the ten-year lag in Serbia has resulted The "Brain drain" is considered to be a big problem for Serbia. in many companies in the region taking over the Serbian market, What can companies such as Siemens do to prevent such a trend? as far as Siemens is concerned. We have to catch up with regional If there are job vacancies and investors in Serbia, meaning that standards, since entering Siemens spells export. In order to export if foreign companies enter the Serbian market, more people will goods, the product has to be competitive and unique in the region. find employment and stay. If there is none of this, what should a There is no sense in expecting a company to produce something young graduate do? The biggest software centres, those of in Serbia if they already do so in a neighbouring country. Siemens and of other large corporations as well, are not located in Germany or Europe, but in China, India and other countries that In which fields of economy do Serbian companies stand a have a large population of qualified personnel. Their earnings are chance? naturally lower than in Europe since the cost of labour is lower Energy and telecommunications have a chance to attract there. However, these countries have huge markets and potential investment and develop. There are concrete plans and activities and this is their decisive quality. Aside from the qualifications of that we believe will succeed. It is only logical that we should their professionals, that makes them attractive to big internationstrengthen our local base in the domain where we are most active al companies. Besides production, the dislocation of development and with strong positions in the world market. In other domains, and the provision of intellectual services are also well under way. however, a lot of time will pass before production is organised in Serbia. A factory has to work profitably 365 days a year. Only a What are the chances of Serbia building one such centre? profitable business is attractive for investment. For a company to Reality bites hard. Only projects that are tenable and provide establish its business, a period of two or three years does not mutual benefit have a chance of getting implemented. Everything mean a lot. The time scale is set to greater values here. else is a wish list.â&#x20AC;˘

CorD | October 2004

Interview

Beyond expectations By Lela Sakovic, Photo Dragan Milosevic

Just over thirty years ago, the U.S. military tested a new form of communication using computer technology. The message "qwerty" was sent out into the ether and the Internet was born. Though initially used for communication between American institutions, the Internet slowly grew into something not envisaged thanks to its capacity to transfer vast quantities of information instantly anywhere across the globe. The communication medium boomed in the 1990s and it was during that decade that the people of the then Yugoslavia first used the 'net. To date, a mere 10 per cent of the SCG population uses the Internet - the software for which remained wholly illegal under international law until just two years ago. It was then that the world's most powerful software company, Microsoft, established an SCG branch and began its campaign for legalisation of the nation's software.

Dejan Cvetkovic, General Director, Microsoft SCG

n an effort to gauge the success of the campaign and bring our readers up to speed on progress towards making the state union an information society, CorD spoke exclusively to Dejan Cvetkovic, general director of Microsoft operations in SCG. Considering the relatively low computer use and weak payment power of our citizens, did introduction of legislation governing software licensing have the desired effect in Serbia; and is it hard to convince our people to pay for their software? The legalisation campaign that ran from September to New Year 2002 was extremely successful, and continued to be successful last year. Thanks to the Protection of Intellectual Properties Law, we no longer have any major problems. Legal software - all software and not just Microsoft's - is considered a normal requirement in business. Everybody who uses tools to generate a business profit has to pay the manufacturer of those tools, who is also entitled to a profit. Moreover, the State must enforce legislation to provide for normal dealings because our local partners, which use our software to create solutions to sell to other users, will only get on board if they see a return on their investments. If the State support the "game rules", the forming of new companies and employment increases will occur. In terms of developing the information society, it is difficult to talk about with any accuracy. However, I would say that I wholeheartedly support mass use of computers at home and the subsequent penetration of information technology. It is rumoured that over 70 criminal charges were brought against those using illegal software in the last year. Do you

Dejan Cvetkovic is adamant that the State must support "game rules" for plans to succeed co-operate with the state in this area and, to your knowledge, was anybody actually prosecuted for illegal software use? So far, Microsoft's Belgrade office has not instigated any criminal charges and is not in direct contact with those enforcing the law protecting intellectual property, which includes software. There is a special organisation dealing with those matters, of which we are members, as are our partners and competitors. This organisation has solid co-operation with the police and I am in no doubt that those guilty of breaking the law will be punished in the end.

tions were donated and will remain in effect until expiry of the contract. We have also secured a donation of 100 MSDN (Microsoft Development Network) packages comprising small products and development tools, which are intended to enhance development of e-government solutions and solutions for public administration in general. E-government is the route to European and world integration and it presents the information structure and set of information solutions that supports the Government's programme. That process starts when the Government decides to offer its services to citizens and employees through information technol-

During the legalisation campaign, Microsoft software was cheaper in Serbia & Montenegro than anywhere else in Europe. Is "What we need here is to achieve a greater understanding of all that still the case? possibilities that information technology offers society or, more During the campaign, there was a 50 per cent reduction on our precisely, the state, economic sphere and the population at three-year contracts. Now the large. Government ministers need to elevate the development of price has been set up to correthe information society to a higher level on their list of priorities." spond with conditions in the region, while the actual price of software used in public services will be set to reflect the level of ogy in the interests of better business productivity and intelligross national product. gence, as well as greater efficiency for Government employees. According to the Strategic Partnership Contract, it was agreed that Serbia should receive 30,000 licenses for state administration and 50,000 for scientific and educational institutions. Was that agreement upheld? Yes. The State now owns those licenses and some other software products. Licenses for scientific and educational institu-

With regard to Internet penetration, is the situation in SCG worse than that of surrounding countries and, if so, is it possible to increase percentages? As a representative of a technological company, I cannot say I'm satisfied with the penetration of the Internet in Serbia simply because the percentage will not be satisfactory until the CorD | October 2004

Interview Greater understanding needed examples of how information technology has aided development in certain societies. Could the monopoly of the fixed telephone system in Serbia be considered an obstacle to development of the information society; and will the end of this monopoly - in June next year - influence Microsoft operations in SCG? According to our experiences globally, the greater the number of providers, the greater the offer, and subsequently the greater the quality of services. This is crucial to the introduction of new solutions and technologies. Thus a connection between the end of the monopoly and the faster development of information technology can be made. However, I do not think the ending of the monopoly will influence our business because our priorities are connected to business productivity and business intelligence.

Internet is in every home. However, compared to other countries in the region the situation in Serbia is better than could be expected, if we take into consideration gross national product

What is Microsoft planning for the future in Serbia & Montenegro? Our plan, quite simply, is further development of the information society. Currently in Serbia, we have 400 registered partner companies working with us on technology, selling software, using development tools and conducting training courses for our technologies. That involves around 20,000 people. I would like to see that figure raise four or five-fold in the next two to three years. For every dollar made by sales of our products worldwide, local economies make around seven dollars. We would be satisfied if Serbia reached a ratio of at least one to three dollars in the next few years. Microsoft and partners made a great step forward here when it localised Windows XP - the world's most popular operating system - in the Serbian language and with both the Latinate and Cyrillic alphabets. We have also localised Office 2003, which is the most popular software package for business productivity. Having removed the last barrier to use - language - we can directly introduce this software to computers in primary and secondary schools and train pupils and other citizens at user levels. Two years after our arrival in this area, we are approaching world trends and our aim is to maintain a leading role in the business with which we deal.

"E-government is the route to European and world integration and it presents the information structure and set of information solutions that supports the Government's programme." levels and circumstances in which people live and work here. In the end, the pace of development depends on the information development strategy of governments, or public sectors, in individual countries. What we need here is to achieve a greater understanding of all possibilities that information technology offers society or, more precisely, the state, economic sphere and the population at large. Government ministers need to elevate the development of the information society to a higher level on their list of priorities. That is only possible if they have a clear idea of how this can positively influence the general development of society. Microsoft experts, and our partners worldwide, can offer many

CorD | October 2004

What are the tangible advantages of using Microsoft operating programs, compared to free programs, such as those provided by Linux? In actuality, the acquisition of some operating systems is free. However, they have to be added to the database and application server and somebody has to physically do that, which incurs a charge. Thus, it so happens that the whole charge for the entire solution on the Microsoft platform is less than for any other. Free programs have their place. Firstly, they can be used for training. Still, they cannot be used for business because they do not provide technical support in the case of a problem arising. Standing behind Microsoft is a very well organised partnership structure developing solutions, offering technical support and ensuring that purchasing does not mean simple spending, but rather investment providing a clean return on the buyer's money.â&#x20AC;˘

Comment

Tunnelling finances A number of recent events have served to draw the nation's attention to the Serbian financial market: the appointment of the Securities Commission president, demands for payment of taxes on the capital profit of stockholders and disputes caused by offers made for domestic companies Knjaz Milos, C Market and Centroproizvod.

f the many truisms these unfolding events have shown, the most notable is the undisputable fact that the vast majority of stockholders and senior managers have not grasped the concept of stockholder ownership and corporate management and the Serbian Government's resolute intention to preserve the characteristic of political party ownership of companies and their monopoly of the financial market. In one way or another, the Securities Dr Branko Vasiljevic Commission has been at the centre of this attention. The role of the body is to ensure that the law governing the financial market is adhered to, with the precondition that it be a respected independent commission. However, the events previously mentioned have only served to show that the independence of the Commission is relative. On one side, the Government failed to respect the non-partisan character of the body that was envisaged as having a five-year mandate - it appears a practise was established by the precedent set by the Serbian National Bank, whereby a governing coalition will ensure the "independence" of institutions only for the duration of its own mandate. On the other side, Commission members have vowed to operate in accordance with the law, despite the Governmentâ&#x20AC;&#x2122;s overtly or covertly issued suggestions. Disputes regarding stockholder managers and their relations

defend against takeovers. The process of taking over or investing additional equity into these companies are two steps connected in the long term. Within organised markets one option does not necessarily exclude the other. Why then are they opposed here? Takeover operations have specific consequences, which is why participants have contrasting interests. Purchasing stock from minor shareholders and subsequent company ownership concentration forces managements to confront the spectre of their survival. Thus, such managers employ naive defensive methods - making use of demagogy by demanding additional social or investment programmes for the protection of their monopolistic market position that has nothing in common with the change of ownership. Managers appeal to shareholders not to sell, insisting that share prices will rise if stock is not sold to would-be investors and, instead, additional investment of equity is forthcoming. Yet shareholders cannot take such suggestions for granted because, on the whole, they have inadequate decision-making parameters. If, for instance, they were to access the Knjaz Milos website in order to establish profitability, no relevant information would be found, even though such companies are obliged to publicly present this data in accordance with the Accounting and Audit Law. Thus the logical tendency of minor shareholders to sell their shares and reinvest their money in real estate is not surprising. It was this exact reason that shareholders of Duvanska Industrija (Tobacco Industry) justified non-payment of capital profit tax on shares sold. In contrast to the Government, shareholders Disputes regarding stockholder managers and their do, at least, display appropriate investment relations with the Government stem from "re-thinking" behaviour. Instead of attempting to block or the takeover process by offering the sales of companies privatised in accordance with complicate shares the state received through the previous now defunct regulations. This applies to companies privatisation process, the Government should referred to by economic theorists as the "milk cow" firms hold off for implementation of the already prepared Investment Funds Law, transform the with the Government stem from the now common practise of "reStock Shares Fund and endeavour to maximise the long term benethinking" the sales of companies privatised in accordance with now fits of ownership of privatised companies. In one way, the defunct regulations. In particular, this applies to companies colloGovernment's inability to control companies any longer by quially referred to by economic theorists as the "milk cow" firms, installing stable managements through political means ensures that in terms of income generated. Moreover, these companies have it is certainly losing. However, in another way it gains by choosing been, and continue to be, the most vulnerable to managerial manipthe appropriate moment to withdraw from privatised companies. ulation - principally because the Government acquired the lion's Yet another story arises from circumstances already highlightshare of their stock and is attempting to keep them under control ed by comments made with regard to the situation - that is the probwith inadequate corporate management mechanisms. Consequelem of stable ownership and a wide base of stockholding citizens in ntly, these companies are not ranked on the stock market in spite of the co-operative sector. Prior development of the financial market obligations to the contrary, specified by current legislation; interdoes not provide the possibility for activation of the population's ests of minor stockholders are not protected and these lesser ownsavings through investments in securities. Foreign companies that ers are identifying original ways of protecting their interests have purchased successful local companies attractive to investors through the register of civil associations and alike. Through a varibought both the state's capital and that of minor shareholders and, ety of mechanisms, so-called "tunnelling" has been achieved. In as such, ownership structures of these companies has been other words, this equates to a reduction in impoverishment and resolved. Under existing privatisation legislation, a model offering flows out of companies, protecting the material privileges of the companies up for sale to the general public does not exist. As a management, etc. The knock-on effect of this is that managers are result of great uncertainty and financial market risks, the nation turning to the State in an attempt to protect themselves from tends to prefer spending to investment. takeovers, and together they are inventing strategies that have nothLast, but by no means least, sufficient financial transparency ing in common with the law and the practices of the financial market. within companies does not exist. In the long term, therefore, it is unreThe cases of Knjaz Milos, C Market and Centroproizvod are alistic to expect the establishment of "social capitalism" in this area. indicative of this trend and within them the differing interests both It is much more likely that we will continue to see patterns of non-prodispute and defend the need for additional investment of equity to ductive consumption, coupled with a deepening of social divisions.â&#x20AC;˘ CorD | October 2004

Interview Stevan Nikcevic, General Director of Jugoimport-SDPR

The SCG military industry has prospects so concluded Prvoslav Davinic, State Union Defence Minister, and Stevan Nikcevic, arms industry representative and general director of Jugoimport-SDPR. Intrigued by claims that Jugoimport SDPR can generate a profit for the country through sales of arms, CorD sought to speak exclusively with Nikcevic about what the future holds in store for the weapons and military equipment industry in Serbia & Montenegro. By Milan Culibrk, Photo Andy Dall international sanctions - and a lack of genuine development and modernisation investments. However, the SDPR top man noted that in the last year "following the scandal regarding the export of arms to Iraq" the company has managed to generate a profit of $60million. Can we expect our arms industry to attract buyers on new markets, as well as returning to the markets that have been lost to us in recent years? Our arms industry not only "can", but "must" become more orientated towards export. This notion is a direct result of the statement of Defence Minister Davinic, who stated that there would be a major cut in the military budget. Our domestic arms producers and merchants understood that and are acting accordingly. The new markets for us should be sought in the regions with which we have worked in last year, more than ever before. These include South America and Asia, particularly South-East Asia. In addition to political support, what other factors are needed to boost the industry?

Trading arms T

he current situation in the military industry is incomparable to the days when the country, as Yugoslavia, was one of the major powers of the Eastern Bloc dealing in the trade of arms and technical military equipment. According to Nikcevic, the chances of better days ahead for the industry are dependent on the country's integration into Euro-Atlantic structures, beginning with membership of NATO's Partnership for Peace programme. He added that arms are "political goods" and, as such, political support of all relevant parties is needed to facilitate their export. This, in turn, depends on the country's credibility within the International Community. Further impeding the domestic arms industry is the country's lengthy absence from the world market - a consequence of

CorD | October 2004

Above all, financial support. All our producers are lacking such support and are in an unenviable position, without sufficient working capital or the funding to support exports. That should be part of the state's strategy because, without such funds, we cannot expect better results from the branch of the industry exclusively geared towards export. This branch plays a crucial role in the current situation, with the country suffering from a large foreign trade deficit that is growing year on year. Should the State support the military industry more than other industries, as it lacks the required working capital? It is up to the State to realise that it is in the country's best interest to support the military industry, as exporters, consider-

Nikcevic speaks exklusively to CorD ing that contracts in this branch are long-term and a crucial source of much needed finance. This is principally because customers with whom we co-operate are unable to make advanced payments and, thus, without necessary banking and financial support - in the form of funds to stimulate the arms industry we cannot expect better results.

been established in that respect? That absolutely exists and good relationships between manufacturers and merchants from the former Yugoslav republics have already been made. This time, such a will is not the consequence of planned economic and political deals, which would push us into cooperation, but is the result of economic interests and the need to appear jointly on third markets. Currently, the most intensified co-operation is with arms factories in Bosnia & Herzegovina, because they are part of the technological chain enabling production of goods for which, at this moment,

Which of our domestically produced military industry products currently have the highest demand? The most sought after goods are artillery and rifle ammunition, followed by modernised plating for armoured vehicles and artillery systems. Currently, the most intensified co-operation is with This tells us what we need to know about arms factories in Bosnia & Herzegovina, because they the level of technological development and are part of the technological chain enabling producinvestment in the military industry over the course of the past 13 or 14 years. tion of goods for which, at this moment, demand is

strongest. We also have good co-operation with manDespite being technologically behind, does the SCG military industry have some ufactures from Slovenia, Macedonia and Croatia. advantages compared to its competitors? Our comparative advantages are certainly in the fact that we demand is strongest. We also have good co-operation with manhave, over recent years, succeeded in qualitatively integrating ufactures from Slovenia, Macedonia and Croatia. Economically the Eastern - or, more precisely, Russian - technology that we and politically, all doors are open for co-operation. mostly possessed. We have used this as a platform to build modernised systems conforming to the West: some sections of our What can Jugoimport offer NATO countries? production meet NATO standards. That ability to combine is our For starters, we can offer those goods that are of greatest greatest advantage, compared to competitors. interest to them: artillery and riffle ammunition, gunpowder and explosives, but also sporting and hunting arms. Is there any will to resume co-operation with the former What are the chances of essentially increasing the export Yugoslavian republics and, if so, have any contacts already of civil arms? CorD | October 2004

Interview How large are the monetary claims for arms exported a long time ago to some African countries and Iraq, and can we expect to be able to collect payments for those claims? There is a difference there. The business with Iraq, for which payment was not forthcoming, saw Jugoimport-SDPR work together with construction and project companies, thus such unpaid claims mostly affect them. Regarding unpaid claims in African countries, the arms industry faces the greatest problem because the level of those arms and military equipment sales were enormous. Payment of these debts owed to us would significantly improve the state of the arms industry. However, I regularly repeat with regard to this that those inter-state contracts were made 20 or more years ago and manufacturers were not asked anything other than to produce and deliver a certain amount of goods to specific customers. Those transactions were mostly a consequence of political deals and, thus, payment methods and conditions were unclear. As such, we had to invest much in court processes to protect our interests and prevent those claims from expiring. Jugoimport has paid, and is still paying, the highest price in all of this. It was not realistic to expect the factories to absorb the costs and they are now a great burden on us. We hope and expect the state to get involved in this because those contracts were, after all, inter-state agreements. What are you expecting with regard to involvement in the rebuilding of Iraq, considering that Jugoimport is registered with American contract holder Bechtel; have you discussed the potential for your involvement? Jugoimport has sent a large number of offers, not only to Bechtel, but to some other investors providing finances for the regeneration of Iraq. However, we are left frustrated and discontented because a great deal of the business we have applied for has not started because of the aggravated security situation. Of course, we will continue active co-operation with our partners in Serbia & Montenegro. We will make offers through our branch office in Baghdad and through other channels, but the level of that business is exceptionally low. As a result nobody, here or elsewhere in the world, is satisfied.

Future bright for arms exporters From this year, manufactures from SCG can export such arms to the U.S. under much better conditions and the greatest amount of sporting and hunting arms are being sold on the U.S. market. Export taxes have been greatly reduced. For some of our products they were as high as 65% and our manufactures were not able to be competitive under such strict tax conditions. Significantly reducing that has helped us make an important step on to the

The Serbian Government has announced that it will again speed up the process of privatisation. Should the arms industry be involved in that process? Personally, I am a supporter of rapid privatisation, even for the arms industry. That privatisation would have nothing to do with any eventual errors to the country's export policy. Through the introduction of adequate procedures and the control of exports, we can ensure that military equipment does not end up where it shouldn't. That, therefore, has nothing to do with the ownership structure of either the manufacturer or the merchant, but is connected with procedures that must be followed. As such, it is important that the law regarding foreign trade of arms and military equipment, which has been in preparation for a long time but is still not ready, is adopted as offers, not soon as possible.

Jugoimport has sent a large number of only to Bechtel, but to some other investors providing finances for the regeneration of Iraq. However, we are left frustrated and discontented because a great deal of the business we have applied for has not started because of the aggravated security situation. American market and I think that these are the products we should introduce to other countries too. However, that demands large investment in marketing and the modernisation of sporting and hunting arms because those markets are very choosy.

CorD | October 2004

Can surplus military equipment be sold or will we simply have to destroy it? I am totally opposed to the destruction of arms, or sales as scrap metal, because there are still those interested in buying our surplus arms. Many countries that have reduced their military capacity have met similar problems and we should learn from their experiences. We should exert great effort and sell as much of our surplus equipment as we can, in order to avoid the situation where we are forced to sell it all as scrap.â&#x20AC;˘

Bulletin Madl and Marovic: attacks not politically motivated

CG President Svetozar Marovic and Hungarian President Ference Madl agreed on 14th September that recent acts of vandalism and violence against Vojvodina Hungarians were not politically motivated. Addressing media after the meeting, President Madl said: "the ethnic unrest did not come from any government". He added that war, economic crisis and tensions in the past decade had indirectly led to the unrest, against which "both governments are obliged to fight". President Marovic said: "As some have assessed, the latest ethnically-motivated incidents may have been over exaggerated, but it is certain that they happened".

Solana: doors open to SCG

enior EU official Javier Solana has said that, despite agreeing to allow the state unions two constituent republics to take separate roads to the European Union, EU foreign ministers have not revised their stance on the existence of the joint state. Solana said: "I assure you that EU ministers are firmly adhering to their earlier stance on the state union of SCG and the need to maintain political conditions, especially when it comes to international obligations, including full cooperation with the International Criminal Tribunal for the Former Yugoslavia". The Spanish politician added that it is now up to Belgrade and Podgorica to demonstrate responsibility towards Europe.

Draskovic: pope supports Serb cause in Kosovo

uk Draskovic, SCG Foreign Minister, met with head of the Roman Catholic Church, Pope John Paul II, in the Vatican on 9th September. The pontiff and the Serbian politician discussed continuing tensions in the troubled Serbian province of Kosovo and Metohija. Speaking to agency BETA, Draskovic explained that the Pope had called for all destroyed and damaged Serbian churches, monasteries and houses in KosMet to be repaired; and for conditions to be created whereby displaced persons could return to their homes in the province.

Marovic sends condolences to Putin

ollowing the latest fatal terrorist attack in Moscow, Serbia & Montene-

gro President Svetozar Marovic sent a telegram of condolence to Russian Premier Vladimir Putin. According to the Serbia & Montenegro president's cabinet, the telegram said "we have received with great sympathy the news of the terrorist attack that took place outside a Moscow underground station, killing and wounding many, including children. Along with a feeling of great loathing for such an insane act of terrorism, we are more and more convinced of the need for a consistent, well co-ordinated fight against terrorism - the greatest evil of our time - which the whole community must participate in.

Government delegation visits China

redrag Bubalo, Serbian Minister for Foreign Economic Relations, led a delegation of the Serbian Government to China recently, taking part in an international investment forum in Xaimen. According to Bubalo: "During my stay in Xiamen I met and established a number of contacts with Chinese and foreign officials, including Vice Premier Wu Yi and Minister of Trade Bo Xilai, whom I invited to visit Serbia & Montenegro". Delegation members also held talks with representatives of the Sinochem Company, which were focused on specific ways of intensifying co-operation, promotion and the presence of Serbia & Montenegro businesses on the vast Chinese market. Sinochem's potential participation in the Serbian privatisation process was also discussed.

CorD | October 2004

38th BITEF

Radovanje

Reputation intact The highly respected Belgrade International Theatre Festival, BITEF, is taking place this year for the 38th time. BITEF is one of the rare annual Belgrade events about which it could be said that the quality has never suffered. Even during the '90s, when the International Community imposed sanctions on the country, BITEF organisers managed to distance themselves from the isolation and stage events that were truly worthy of BITEF's reputation. By Zeljko Jovanovic

he first highlight of this year's BITEF was the contribution of Vojvodina Hungarian Jozef Nadj - choreographer, director and theatre master - and his direction of Eden, performed on the Great Stage of the Atelje 212 theatre, on 15th September. Nadj, who has forged a global career in the theatre after first achieving recognition in the historic French city of Orleans, hails from the small Vojvodina town of Kanjiza, a town made famous for its ceramic tiles.

CorD | October 2004

According to the accomplished theatre director, his work is deeply rooted in the Vojvodina soil, and the myths and tales inspired by local traditions and legends. As a result, Nadj returned home to attempt to establish a new theatre and thus give something back to the province that inspired his career. The opening ceremony of this year's BITEF saw an inspired speech by famous local actor Predrag "Miki" Manoljovic, who paid tribute to the BITEF tradition and highlighted the secret of its success: "…by travelling around the world, the liberated word

of BITEF has opened many doors for us, not merely theatrical". Gabriaze. As to whether BITEF 38 is on track to emulate the He added that "BITEF - that liberated word" had been proachievements of previous festivals and accomplish its aim of nounced thousands of times in a multitude of languages, yet presenting "new theatrical trends", it could easily be said that "has always returned and is returning now to the place from this year's "offerings" have done nothing to harm the reputawhence it set out into the world". The regular BITEF programme The opening ceremony of this year's BITEF saw an inspired began the next day with a performspeech by famous local actor Predrag "Miki" Manoljovic, who ance of Sarah Kane's The Cleansed, paid tribute to the BITEF traditionâ&#x20AC;Ś noting that "BITEF - that directed for BITEF by Poland's Krzysztof Warlikowski. Polish theliberated word" had been pronounced thousands of times in a atre is by no means on the rise, havmultitude of languages, yet "has always returned and is reing been of the highest quality for a turning now to the place from whence it set out into the world" long time. Warlikoski, a young and already successful director, learned his trade from countryman Christian Lupe, who inspired much tion of this excellent traditional event. It is obvious from this enthusiasm among the audience of last year's BITEF. year's BITEF that contemporary plays and radically led perThe Germans, who rarely fail to impress the BITEF crowds, formances have supported intriguing stories, while the heroes contributed with another positive appearance at this year's festiof the stage have added much to their stature.â&#x20AC;˘ val. The play performed was the Anatomy Tit the Fall of Rome, written by Hayner Miller, directed by Johan Simons and performed by the Munich Chamber Theatre. Yet another worthy performance at this year's festival was provided by the Russian contingent, which traditionally performs magnificently at this festival of new theatrical trends. This year they selected the opening sections of Tolstoy's epic War and Peace, directed in characteristic fashion by famous theatre master Pjotr Fomenko. Formally described as the most intriguing performance of the 38th BITEF was the play Hotel Splendid, "packaged" by Enrico Kazagrande and Daniela Nicolo. Similarly to previous Italian contributors to the festival programme, Kazagrande and Nicolo opted for a highly experimental play for BITEF, addressing the common themses of American crime films and similar stereotypes. A similarly unusual project came to BITEF this year from Greta Britain. The play The Neighbours, by Henry Adam, is a black comedy taking an alternative look at what happens when a world event - in this case the horrific terrorist attacks of 11th September 2001 - transforms from a global to a personal issue when the play's hero, a lifetime TV and marijuana addict, is made to contact the suspected culprits. Lithuanian theatre was represented this year with a stylistic and alternatively themed interpretation of Shakespeare's classic love story Romeo and Juliet. Director Oskar Korsunovas provided the direction for the famous feud between the Montegues and Capulets, this time from the perspective of a social dispute in which, as in any dispute, love does not succeed. "About love, but in his own way", sang director Jagos Markovic, this year directing performers of Croatia's Rijeka Theatre in the play Filumena Marturano. This play was not only exciting, but also inspired much Yugo-nostalgia among the Belgrade audience. Also representing the former Yugoslavia, as is the BITEF tradition, Slovenian theatre artists travelled from Ljubljana to perform the play Three Sisters. The key quality of director Toni Janezic is his tendency towards new realism in theatre, which is so convincing that theatregoers have the impression that thy are actually on a trip to visit Chekhov's heroes. In addition to Nadj's Eden, domestic performance's at the 38th BITEF included the Yugoslav Drama Theatre's interpretation of the Merchant of Venice, directed by Egon Savin; Miroslav Benke's play "Panem et circenses", described as "the theatre of dreams in fifteen pictures". Completing the line-up for Belgrade's most important theatre festival is the puppet play Stalingrad's Battle, created, designed and directed by acclaimed Georgian director Rezo

Romeo and Juliet CorD | October 2004

Interview

Promoting politics After years of playing the role of one of the world's bad guys, Serbia needs a big event to show that democracy and changes are real in the country - so says Jacques Seguela, the man who twice ran campaigns that ensured the election of French leader Francois Miterand. By Dragan Bisenic, Photo Branko Pantelic,

Jacques Seguela, advertiser and campaign manager extraordinaire

acques Seguela was in Belgrade recently as guest of honour and keynote speaker at an event devoted to the promotion of creative ideas and advertising, organised by New Moment and Dragan Sakan. Afterwards, he spoke exclusively to CorD's Dragan Bisenic about the inextricable link between election victory and tactical campaign management. I am particularly interested in identifying a link between advertising politically and other advertising sectors of society. Politics hates advertising, and advertising loves politics. So, it's a bad couple. Politicians hate advertising because they want re-election only from their power and not exterior power. But they know they need to communicate. So, before an election they phone you [the advertiser], they love you, they kiss you, they hug you, they follow you. When the election is over, one day later they demonise and make killers out of you, they don't believe you, they're not attracted to you. They want only themselves. Advertising loves politics, but not to make politics. Advertising is control of politics and when you make advertising right there will be no lies. And they lie to win, for a game, to play. When you are in politics you lie only for you. So, it's an opposite kind of lie. And we love to advertise because when you make a political campaign you plunge deep into the psyche of the country and in three months you know everything about the socio-political links between a country and everything that happens. So, it's an elaborator. And you know in one day if you are good at that. The point of that is maybe you are good, maybe you are bad, maybe the "sell" is good, but it's just a game. It's like football. You win or you lose. What process is used to produce a winning strategy in a political campaign? There are some international unwritten rules. The first one: you work for a man and not for a party. So, you need, after the first day, to kill the party and speak only to the candidate. I don't want the party in my meetings, though you can't be elected without a party. But, if the party makes the campaign you will lose. So, the party is the party, the candidate is the candidate. My battle, my job is only to push the candidate. The second rule: people vote for the future and not for the past. So, you need to demolish the pillars. Every politician stands on his pillars and says: "I did this, I did that, I did the other", spending 80 per cent of his time saying: "look what I've done". But people have no memory of, nor respect for, your last job.

Bush makes perfect work of communication, and with him, you get a fantastic way of communicating

They paid you for that and whether you did a cannot become president. So, we need to be good job and they are happy or unhappy it an actor. We don't vote for them as an actor isn't a problem. They want to know what you and we don't want an actor to manage the promise for the future and what you can do country, but it's an obligation. We need to for the future. If you look at the recent open the door and an actor is just that - a Republican convention [U.S.] and the speech door. If you don't open the door you can given by Bush [President George W]. He very never see beyond it. After that, Bush. I hate clearly spoke only about the future. Kerry this guy, but he makes perfect work of commakes mistakes by always coming back to the munication and, with him, you get a fantastic past by mentioning Vietnam "Hello America. way of communicating. Vietnam, Vietnam! I was in Vietnam, but Bush is leading a war". Don't speak about that. We are in big trouble in terms of Serbian Speak about tomorrow. And maybe Bush can image in the world - The Hague Tribunal win as a result, because, you know, we need to exists and our image is one of war crimifight for the future. nals, aggressors and so on. Is it possible to The third rule: you vote for an idea and work on cases like ours? not an ideology. That idea is what you have in It is very difficult because the weight of hismind for the country for tomorrow. So, you tory is so difficult to manage. However, I don't vote for left or right. All the people want think you have one thing - awareness. the same thing - more for themselves. And Without awareness you cannot communicate. they want everywhere more and more social So, when you have awareness and when If we create here, in everything changes and Milosevic is in jail, I advances and more and more money. They want both the butter and the money to buy hope for all his life; when everybody knows an international that butter. that the country is fighting for a new econoforum, something The last rule: you don't vote for the candimy, a new life and democracy, people will about democracy; if change towards you. date, you vote for yourself. So, when you make a campaign you need to speak only to So, I think some day we need to find an we bring all the peoattract the consumer or the retailer - they are event to do with change. If we create here, in ple from the world's an international forum, something about the same people. Speak only about that. Don't speak about opponents. Say only "I democracy; if we bring all the people from the big democracies want, with you, to do that, for you". That is big democracies here, to Belgrade, for here, to Belgrade, for world's the only concept of the winner. After that you two or three days, and have all these presitwo or three days, have some type of campaign. dents and leaders speak about that, everyThe best campaign to make, because no body will understand that you've entered and have all these man is a winner, is a campaign of change. All presidents and lead- democracy definitely. the people want change when they vote. It's ers speak about that, This country has a great legacy of organreally difficult for a party to campaign for ising high-profile events, particularly continuity. Other than that, you should cameverybody will under- duringsuch Tito's time. Do you think it would paign for democracy because that is the easstand that you've be easier to show positive changes in such iest campaign: to fight for freedom and modernity. Afterwards, when only two canentered democracy a way than to merely convince individuals? There is only one way to show a change didates, like Jospin and Chiraq, remain, that definitely. to invite people to physically see the change. is the most difficult campaign because nobody is a change and nobody is the future. If I run a campaign I spend lots and lots of Euros so people can see what I am doing. So they have to enter They are both the past and the continuation, and the vote is this country to see things: to see the river, to see the boats, to see totally bullshit because there are no new ways, new ideas or new things. the girls, to see the beauty, to see the people. The girls here…for the first time I saw such beauty. They are the future. The beauHow can candidates accept the rules of advertising? They tiful, the powerful, these girls here are fantastic. All the new must please both the party and the voters. Is that easy for canblood is in the girls; the mayoral candidates running are girls. didates? You can't explain that by talking. They need to come here to see When the candidate is strong, no communication is an oblithat. You must organise a big, public event, with marketing. gation. He will know about the rules. If you take time to explain Democracy is the real concept to show. to him, or give him books to read. When you have time to If you asked Carter [President, Jimmy] to come here, he is explain…I spoke only about four rules, but there are actually very well respected all over the world and people would like ten. When you give some examples of how the rules work they that. will understand. They are clever and they follow the rules and win. If you look at Miterand, Reagan or Bush, you see that they In a certain sense we are victims of advertising because follow the same rules. during the war entire machinery and methods of PR were used to convince the people that this was the centre of the In your opinion, who is the perfect man for advertisers to world. promote? Yes. That is media power. You can't do anything about that. That is Clementis: the Canadian Gent. The modern politician Just change the spirit day by day. That was a long time to have a with modern communication and the key was his wife. For the dictator. You need five years to change the image of the country. first time, a wife was part of the poem. We saw his family, love And you need stars - writers, directors, actors, politicians, and for sport, everything for the first time. So, a Canadian is the masothers. Imagine if we make concerts and plays in ten countries, ter. After that, in America Reagan was a fantastic actor and we free of charge, with a lot of performers just to promote the culneed to accept that a president is an actor. If he is a bad actor he ture. That is how you will be a success.• CorD | October 2004

History

The man who knew

who Tito was By Dragan Bisenic, Photo Personal archive

In September this year, one of the most important diplomat's of Tito's Yugoslavia - Vladimir Velebit - died in Geneva. Born into a Serbian family from Croatia, Velebit was a third generation army general. Fortunate enough to personally know the great man, I spoke about his illustrious career as a Yugoslav military officer and diplomat on many occasions, the last being his 97th birthday on 20th August this year.

e started his exceptional career in the left movement and the Yugoslavian Communist Party just before the Second World War on the initiative of, at that time Tito's wife, Herta Has. He began to work with the Comintern resident in Zagreb, Josip Kopinic, thus during the conflict with Stalin he was accused of being a - British spy. The man who started his career in Comintern, deserved special merit for almost bringing Tito's Yugoslavia into NATO and became the central figure of defining the relationships between Tito's Yugoslavia and the West. During the war he was the partner in the western countries army missions which were coming to the Yugoslav war zones to establish what, out of a great deal of controversial information was actually true - who was fighting and who was not against the Germans. He established an exceptionally close relationship with two British officers - Sir. Ficroy McLain and William Dikin. Revisionist groups of historians will say that on the basis of their reports the partisans were accepted and declared as fighters against the occupiers, thus the allied aid, on the basis of that report, went to the partisans and that decided the result of the civil war in Yugoslavia. The result of that war was, it seems, decided much earlier - when the question was posed as to who was, in 1941, going to organise the rebellion and thus ease the position of the British Army in Greece.

First time in public with new wife Jovanka: Jovanka Broz, Josip Broz, Vladimir Velebit, Enthony IV and Enthony Eden

No political force in Yugoslavia was ready for such an action After the end of the mission in Washington, Velebit was appoapart from Tito's communists. Churchill's emissaries were cruisinted as the Ambassador to Rome. That was not a new mission, ing around the Balkans in search of partners for that event, with but the continuation of the previous one. While tones of military guarantees that the British Crown would not forget them after the aid and friendship with the USA were arriving at Yugoslavian victory over Hitler. This promise did not tempt either the commuports, on the other side lashes were braking out with the same allinists or the civil parties. The Communists were following Stalin's es, regarding the matter as to whom the town of Trieste will belong. line of collaboration with Moscow and the esteem of the Moscow - Berlin Agreement, while civil parties "Until then the Americans were not interested in what were making pacts with Hitler. In contrast to others was happening in the Balkans. The Balkans were comTito accepted the offer. It was a mystery, until these days, as to how Tito made contact with Western pletely left to the Brits. From then on began the countries before the war, but Velebit knew that. The American interest in the Balkans as an introduction to crucial role in that was Velebit's mission in 1939, their crucial influence on the events on this peninsula". when he met Tito in Istanbul and brought him a new false passport. Tito had a false Canadian passport, the subject of the British Crown, Spiridon Mekas. The British Velebit was also on the other side, the one which was necesagents, who wrote books about their mission in the Balkans, sary to reach a balance. On one side, in Washington, he was conclaim that before war connections between Tito and Western vincing them of the necessity of friendship, and on the other side countries were made through this passport. he appeared as a negotiator of one side in the conflict. At that time Velebit lead the first diplomatic missions in Cairo in 1943 and Velebit was already the Ambassador to London and was preparing London in 1944. In Cairo he met with numerous foreign military the spectacular visit of the Yugoslavian leader to London. As the delegates, but among them the most important was the meeting Ambassador he was having long secret negotiations regarding with OSS officer, Robert Joyce. "Until then the Americans were Trieste for months, which finally lead to the agreement of the divinot interested in what was happening in the Balkans. The Balkans sion of authorities over this town. were completely left to the Brits. From then on began the In Rome, he had another confidential task, but this time of a American interest in the Balkans as an introduction to their crupersonal nature. Tito asked him to prepare his future wife, cial influence on the events on this peninsula". During his misJovanka Budisavljevic, about whom nobody knew, for the meetsion in London, although unexpected, he met with the Prime ing with the west. Only after that was Jovanka introduced to the Minister Churchill. That was one of a chain of meetings which British Foreign Minister, Anthony Eden, as Tito's wife. would follow until Velebit was appointed as the Yugoslav Tito's foreign policy thus achieved the balance - to be the allies, Ambassador in London. but not the satellite either of Moscow or of Washington.â&#x20AC;˘ When Tito had clashes with Stalin, he had to find allies in the West. For a communist country, which Tito's Yugoslavia was, that Velebit with British Ambassador, Belgrade 1945, was a very delicate task. The greatest successes of Velebit's work were the absolute secrecy of the tasks he was carrying out. At the end of 1950 and the beginning of 1951 Velebit spent eight months in Washington, negotiating the possibilities that the USA would deliver aid in arms to communist Yugoslavia. Every Friday night, in the house of one of the CIA directors, Robert Joyce, Velebit was explaining to a select group of high officials from the Pentagon, the CIA and the State Department, how one communist country, in the middle of the cold war, can be supported from the main communist's rival. Among these officials were Franklin Lindzy, Averel Hariman, Frank Visner, Charls Bolen, Paul Marfy, the Alsop brothers and many others. The result of the long negotiation was the American acceptance to deliver arms to Tito's Yugoslavia. Velebit urgently travelled to Yugoslavia to inform Tito. He wrote the list of arms himself in order that nobody else saw it. To the next visit, two months later, Velebit came with the Yugoslav Army Chief of Staff, Koca Popovic. The talks in Washington lasted six weeks. On his return Popovic dropped in to Paris to meet the NATO Commander, Dvite Eisenhower. Some of the most paradoxical talks during the cold war were held in his residence, talks which explained how the close friendship and cooperation between the ideological enemies, and not just ordinary ones but communists and anticommunists, is possible. "As a representative of the democratic system, I am asking if you believe that it is possible that soldiers of your communists army can fight with our capitalistic army, next to each other, against the Soviet Army, which is also communist?" asked Eisenhower curiously. "Of course. The doctrinal factor does not play any role here, but Soviet communism is the imperialistic one", is how the Yugoslav Army Chief of Staff explained this controversy. The development of Tito's Yugoslavia will, in the next decades, follow the direction of this controversy - ideologically towards the east, and strategically towards the west. Tito, however, did not want any of those sides. CorD | October 2004

Japan

Land of the

By Milovan Jaukovic

rising sun Japan is one of the world's oldest civilisations and formerly one of the world's great empires. The world's second strongest economy, technological leader and cultural gem. With its recent recession fading into the history books and market domination once again assured, what makes this Eastern giant tick?

he view atop Tokyo's super luxurious Imperial Hotel is a captivating tale of two juxtaposed cities in one eastern metropolis: On one side is the expansive sprawl of the Japanese capital's Ginza Quarter - the city's famous trade centre - with its 5-storey brick buildings and the jealously guarded ambience of the early 19th century, when it was considered the most modern district of Tokyo. On the opposing side is the district that embodies Japanese-style sci-fi futurism - a concrete jungle of towering skyscrapers, interlaced with elevated roads and traversed by the raised railroad tracks of the Shinkansen bullet train, which darts through the city at speeds of upto 280kmph. Though they have preserved the parts that made the city great, Japan has undoubtedly leapt with both feet into the technological age of the 21st century, perhaps even surpassing the United States with their "Americanisation". Yet, the Japanese have managed to do so whilst retaining their strong culture and recognisable identity. Japanese people still bow while greeting, apologising or expressing gratitude - even the bullet train's trolley dollies bow as a show of respect when entering or exiting the carriages. Big city residents continue to sweep the section of street in front of their homes, a custom based on the principle that the area directly in

CorD | October 2004

front of your house is merely an extension of your dwelling. Traditional tea-drinking methods remain popular after hundreds of years, as do traditional sports such as Sumo and Judo, and traditional foods such as Sushi. It would prove difficult, if not impossible, to provide a comprehensive answer to the question 'What is modern Japan as a phenomenon?' in a single article such as this. One school of thought accuses the once great imperial Land of the Rising Sun of seeking complete Americanisation for itself. This, they argue, is being attained by over-indulgent, over-zealous Japanese people, anxiously attempting to adopt and assimilate to the material, mechanical West, and by so doing sacrificing much of their national identity and traditional aesthetic sensibility. The recent film Lost in Translation is a dull and frustrated banner to such criticisms. One would struggle to prove such a notion a complete fallacy. However, the Get West Quick phenomenon is not the overriding characteristic of contemporary Japan. Such ideas are over-simplis-

The latest economic figures show that the Japanese economy has come out of the dark tunnel of recession and has stepped onto the path of stable recovery, after falling on the lowest branches in January 2002. tic generalisations based upon the reality that Japan adopted certain Western customs and values and mixed them with their own culture under the heading of Japanese eccentricity, misinterpreted as a submission to foreign civilisations. In reality, Japanese culture is the result of a century of 'Japanisation' of foreign cultures; the harmonised juncture of old and new, tradition and cyber technology, foreign influences adopted and altered to suit Japanese culture, rather than merely copied. Today's Tokyo is the embodiment of Japan's economic miracle and the tangible face of the nation's unparalleled I.T. revolution. This the capital of the world's second strongest econom-

ic power is one of 47 territories that comprise Japan, though it is appeared. After five minutes she returned with batteries for which officially referred to as the metropolis. Tokyo Metropolis covers 23 I paid on the spot. districts, 26 cities, five towns, eight villages, the isles of Izu and As previously mentioned, this unique hybrid is more obvious Ogasavara and several small Pacific islands. Covering an area of in Kyoto - the Eastern Imperial capital. This unique city on the 2,187km2, just over 12 million citizens live and work in Tokyo. The Pacific coast is home to 1.4 million and was the Japanese capital city's 'centre' contains 23 city quarters and is home to eight million. for a full 1,200 years - from 794 until the 19th century, when the Tokyo is home to the largest Japanese corporations and media capital was moved to Tokyo (the Western Imperial Province). organisations. Yomuri Shimbun, a prominent and influential daily Kyoto is the cradle of Japanese culture, art and politics, the spirinewspaper, is featured in The Guinness Book of World Records as tual home of the Japanese nation. Without knowing Kyoto it is the daily with the highest circulation in the world - 10,310,091 impossible to understand the modern Japan. As much as 20 per issues per day. The country's gross annual product is around cent of the nation's treasures are concentrated in Kyoto, as is 15 $4,500billion, of which $1,327billion is generated in Tokyo Metropolis alone. Only four countries in the world - the U.S., Germany, Only four countries in the world - the France and Great Britain - have higher GDPs than Tokyo. U.S., Germany, France and Great Britain Moreover, Tokyo provides irrefutable proof that unparal- have higher GDPs than Tokyo. Moreover, Tokyo provides irrefutable proof leled technological progress and globalisation do not inethat unparalleled technological progress vitably bring alienation and the loss of national identities. and globalisation do not inevitably bring alienation and the loss of national identities. Characteristics such as hospitality, cordiality and solidarity per cent of its cultural wealth, of which 17 sites have been placed remain pillars of Japanese society and values for which Japan is on UNESCO's list of World cultural inheritance. This city symbolfamous world-wide. ises and sublimates everything that is characteristic of the spirit Perhaps the key to Japanese success and one of the first things and collective mentality of the Land of the Rising Sun, but also visiting foreigners recognise is that organisation has been brought what Japan is today. almost to a level of perfection. All is in tune. Delays are unheard At first sight, Kyoto can seem like a simple conglomerate of of in this clockwork society and to the first-time visitor Tokyo's contrasts. On one side there are thousand-year-old temples with system appears automatic and unreal. A longing for organisationstatues of Buddha, Shinto shrines and famous Japanese gardens. al perfection is a trait of the Japanese collective mentality, which Its antithesis presents the 47 highest educational institutions has in many ways been conditioned by the geography of the where many of Japan's top scientists lecture. Half of the Japanese nation. Japan, or Nippon as it is known to the Japanese, is in fact Nobel Prize recipients came from Kyoto's research universities. an archipelago encompassing four large islands - Hokkaido, The old era still lives on in quarters with wooden houses and Honshu, Shikoku and Kyushu. The total surface area is around narrow, twisty roads where it is possible only to walk. Only a few 387,000m2, which matches the surface of one and a half times the miles away the super fast Shinkansen trains roar by. The tradition size of the former Yugoslavia. However, of drinking and preparing green only 13 per cent is suitable for inhabitatea and ikebana live in peaceful tion and agriculture. 130 million people cohabitation with McDonalds. live and work on that area. Thus the However, this is not a simple list population density in cultivated areas is of random symmetries, but the highest in the world. rather examples of how Kyoto When, after a futile search for batterperfectly combines tradition ies around the various departments of and contemporary ideas, nature the Big Camera department store in and technology in order to creGinza, I approached the first shop assisate a unique city in the world. tant for help, she told me to wait and dis-

Japan The feeling of history that is present at every step does not feel like a burden, but is on the contrary the spring of new inspirations for the fusion of the old and modern. A great example of that is the company that uses traditional artistic forms and modern technology for the production of high-tech pottery. They also call the Eastern Imperial capital the Shrine City, since there are 1,200 Buddhist temples and pagodas and around 300 Shinto shrines.

city in which hardly any house is older than 59 years have healed, but Hiroshima does not forget that she is the most distressing testimony and symbol of human madness. On every 6th August at precisely 8.15am - the exact moment the first atomic bomb in the world was dropped - the bells of peace and the city's sirens resound. The ceremonial memorial prayer under the slogan 'No More Hiroshimas' takes place every year and the city's Mayor reads the Hiroshima Peace Declaration dediThough they have preserved the parts that made the city cated to the whole world. This declaration the destruction of nuclear weapons great, Japan has undoubtedly leapt with both feet into demands and permanent peace in the world. And they the technological age of the 21st century, perhaps even will continue to read it until there are no surpassing the United States with their "Americanisation". more nuclear weapons on our planet, because that is the testament of the survived Lovers of the bizarre calculated that at least two years would be citizens of Hiroshima and their descendants. needed to visit all such sites in Kyoto, provided you see two per On the site of the former Nikajima quarter, directly above which day. Still, that could only be achieved with good organisation and the bomb exploded, the Peace Memorial Park was built as an if one did nothing else. appeal to the world to renounce nuclear weapons. In addition to Nagoya is only 350km from Tokyo and the Shinkansen covers the Hiroshima Peace Memorial Museum, the park is filled with this distance in 1 hour and 45 minutes. This city of two million numerous monuments. The Genbaku dome, the only building to inhabitants is also known as Toyota City because it is the home of miraculously survive the bombing is there today to remind us of the Toyota Motor Corporation, the world's leading auto manufacthe terrible destructive power of atomic weapons. The Cenotaph turer in terms of total annual sales. Last year they sold no less dedicated to the A-bomb Victims and The Flame of Peace. The than 6.71 million vehicles and had a net income of 17.29 billion Children's Peace Monument and the Fountain of Prayer. yen - $172.9 billion. 6,500 workers and 7,000 robots serve two facIn the small port on Miyajima Island, around 200 meters from tory sections in Nagoya. Statistics show that half of all the robots the coast, the Icukusima Shrine has been standing proudly in the used in world industry are in Japan. In Toyota's factories, robots sea for 13 centuries. To get to Icukusima over dry land is only poswork while people supervise. People's hands are irreplaceable sible during low tide. The Shinto religion prescribes the shrine to only on the assembly lines for the final be built in the water in order not to mounting. destroy the natural harmony of the In Hiroshima - once devastated by the island and its primeval forests. nuclear bomb dropped by the U.S. in an The latest economic figures show effort to end World War II - the cherries that the Japanese economy has come now blossom again in the spring. The out of the dark tunnel of recession and grass grows again, and in the waters of the has stepped onto the path of stable nearby island of Miyajima the tastiest oysrecovery, after falling on the lowest ters in the world are still being farmed. branches in January 2002. The great These days, Hiroshima is a modern city part of that turnover lies in the real with 1.2 million inhabitants, wide bouleboom of the global demand for digital vards and modern architectural buildings. products, cameras, recorders, flat The wounds of the terrible tragedy of the screen televisions and DVD recorders, where Japanese producers take precedence. A visit to the exhibition salon of electronic giant Panasonic, the official suppliers of digital equipment to the Olympic Games in Athens, is a colourful illustration of the unbelievable technological progress and electronic innovation that should probably belong to the 22nd century.â&#x20AC;˘

Olympics

LACK OF MONEY, ABUNDANCE OF INDIFFERENCE Here in SCG, the Athens Olympics of 2004 will be remembered for the exceptionally poor results of the nation's competitors. Results were so bad, in fact, that the question has been raised of whether we actually sent athletes or merely tourists. Even Dragan Kicanovic, president of the SCG Olympic Committee, returned from Athens with a barrage of criticisms leveled against the State for investing so little in sport.

egardless of whether the State is the only genuine "investor" in domestic sport, the fact remains that preparations are significantly hampered by the fact that our swimmers train in unheated pools, our archers practice with second-hand equipment and our athletes can only run once the footballers have vacated their training grounds. In an effort to ensure such feeble results are not repeated, the State is looking for outside help from the European Union, the United States or anyone else willing to offer a helping hand. So, can we expect assistance to seriously combat the problems confronting our sporting institutions? One participant in a recent Internet discussion regarding the Olympic Games noted, probably correctly, that "sporting results are a reflection of the results of the state in the country as a whole". Adding to the misery of the country's lack of success was the fact that one of our sportswomen - canoeing specialist Natasa Janic - actually won two Olympic Gold medals, albeit for

There were bans on exporting small-calibre rifles to our country, thus we are deprived of quality rifles. This results in the impossibility of going to the ammunition manufacturers in order to test and choose the best weapon. Hungary. At the previous Olympics Janic, whose father won multiple golds for Yugoslavia in both canoe and kayak events, competed for us, finishing fourth. However, upon her post-war return to Serbia she found that there was no interest in her or her boats and so she went north and became a citizen of Hungary. If such indifference was shown to this successful competitor, how have those finding their competitive feet been handled? One sport with problems commonplace throughout the sphere is swimming. There is a lack of quality coaches and those with the skills and experience are not prepared to coach, some say because of vanity. In other countries entire teams of doctors, masseurs, physiotherapists and nutritionists support swimmers, but not in Serbia & Montenegro. Swimmer Mladen Tepavcevic told us: "Swimmers are a special sort of water-polo subtenant because they [water-polo players] have the first choice in practice terms. We do not have a single pool of sufficient dimensions. What is needed is to build two pools of 25 and 50 metres, with weightlifting rooms and other accompanying equipment. "For the time being we are forced to practice in Tasmajden Park's 20-metre pool. And there we encounter another problem: finances. The temperature of the water should be constant, but

(left) Milos Mijalkovic, judo competitor By Slobodan Vucicevic that is not the case. Maintaining, or more precisely heating, is expensive and the state, but also Belgrade, need to help in order to provide us with minimum acceptable conditions for training. We are aware that the building of a new pool or the reconstruction of the pools on Kosutnjak are big investments, but money should at least be found to heat the water." Swimmers are not the only "subtenants". Predrag Filipovic, who competed in the 20-kilometre walk in Athens, said: "In spite of the fact that athletics was the number one sport at the Olympics, we practice as guests on the football grounds. In Serbia & Montenegro there is no athletic stadium. Neither is there CorD | October 2004

Olympics

Mladen Tepavcevic, swimmer any closed arena, so we also practise outside when it is minus 15 degrees Celsius. Much poorer countries invest more in athletics than we do. Financial means are required to go abroad on seminars in order to learn from more developed and more successful competing nations. There is a lack of medical support, the importance of which is ever increasing in modern sport. Only after that can better results be expected." One of the rare sportsmen from Serbia & Montenegro who has had the opportunity to practice with the best in the world is Predrag Filipovic, judo expert Milos Mijalkovic, although even that was not on track athlete merit or with state support. Rather Milos's cousin, Rjy-Zmaj Mijalkovic, is a student at Tokai University in Japan. Thanks to that fact and to the kindness of the Japanese, Milos has visited Japan several times and practised with the best judo masters. Milos explained: "In Japan they practise for three hours twice a day. They work on technique and on stamina too. In European judo camps everything is focused on the fights, but they are good because there are a lot of sparring partners. In our country there are not and that is the big problem. On the other side, visits to those camps require considerable financial resources, and we are lacking in that department too. That is the biggest problem. If the 'sport cake' was divided in a different way, because for the time being collective sports get the biggest

CorD | October 2004

piece, I believe that in addition to myself, several other judo competitors from Serbia & Montenegro would also have participated at the Olympics. There are conditions for practising in the country, but every judo club is responsible for providing the money for its competitors to enter competitions abroad". Mijalkovic did not return home with a medal, but he thoroughly enjoyed the Olympic experience: "When the judo competition was finished we stayed in the Olympic Village for several days more. I went jogging every day, and one morning I saw an exceptionally beautiful woman on the field. We were running, everybody by himself, and later I saw her on the TV running in the 400 metres final. She won the gold medal. That was Tonic Williams-Darling from the Bahamas. That can only happen at the Olympics". Davor Stefanek was our only representative in the Greco-Roman wrestling. It was expected that this young man might surprise

There is a lack of quality swimming coaches and those with the skills and experience are not prepared to coach, some say because of vanity. In other countries entire teams of doctors, masseurs, physiotherapists and nutritionists support swimmers, but not in Serbia & Montenegro. us with a medal, but he was defeated as early as the second round. Stefanek told us: "There was a great desire to achieve success. I did everything under pressure and that took its toll on me. In the European and World Championships I was always relaxed, but here stage fright disrupted me completely. Along

with that, I did not have either a sparring partner or a coach with me. I was left all alone. I had to organise the printing of the name of Serbia & Montenegro on the back of my equipment by myself. In Subotica I have great conditions for training, a good coach and good sparring partners, but I miss the international camps. There was no money in wrestling before either, but it is certain that the state can help since not much is needed." Stefanek is obviously embittered by the blatant indifference of the state: "Last year Momir Petkovic offered me two months practicing in America. All was needed was to provide the return air ticket, but I did not go. The Hungarian National Squad offered me the chance to practice with them for the price of 10 euros per day, but there was no money again. In such cases the state should react and help, because such chances do not appear every day and the amounts in question are not too big". Marksman Stevan Pletikosic, who won the bronze medal at the Barcelona Olympics, went to Athens to compete in his fourth Olympics. He was able to provide a comparison of conditions throughout his career: "The financial situation in shooting has improved a bit, but not sufficiently. During the sanctions there was not a lot of competing abroad and collective sports were given less money so we got more. However, from 1994 our part of the budget decreased to the extent that we did not know if we would be able to travel to some competitions or not. Sometimes we had to cancel our participation in world events and had to pay penalties. We hardly ever go if those competitions are in America, Australia or Japan. We mostly go if it is in Europe, and that is where it is most difficult to gain the Olympic quotas." Conditions under which our marksmen practice are severely limited. The number of rifle ranges is small (Novi Sad and Sremska Mitrovica), there are no electronic targets, which cost €4,000. If we bought targets there would not be any money for competitions, leaving our marksmen in a catch-22 situation. An additional problem is that for marksmanship sanctions are still in effect! Pletikosic continued: "For us there is still the outer wall of sanctions, which some countries apply against Serbia & Montenegro. There were bans on exporting small-calibre rifles to our country, thus we are deprived of quality rifles. This results in the impossibility of going to the ammunition manufacturers in order to test and choose the best weapon. Since every deviation moves you even by 15 - 20 places it is very difficult to achieve success". Comparing the games in Athens with the previous ones he has attended, Pletikosic said that the life in the Olympic Village was on an average level. The Greeks paid too much attention to security, so there were no cafés, fun centres or restaurants with different cuisines. The great tension because of the fear of terrorism deprived the participants of socialising. Sportsmen and women were left largely to themselves and their clubs or coaches, who are finding different ways for their competitors to make some progress. There is not enough money in the budget for everybody, but the impression after talks with our Olympic representatives is that a different division of the budget would help many of them, in order for them not to remain only junior champions.•

Stevan Pletikosic, marksman

EU‘05 FOR RETURN By Todor Milenkovic

Reflecting on this summer's Athens Olympics, Borislav Stankovic, Honorary Secretary General of World basketball association FIBA, insisted that the games in Greece did much to contribute to the development and global status of basketball, adding that the 2005 European Championships - to be staged in Belgrade - will provide the chance Borislav Stankovic, for SCG's "blues" to return to the top. IOC member

peaking exclusively to CorD, he said: "We witnessed a magnificent tournament, regarding the matches, the results and the shocks. Some completely unexpected results occurred and new basketball forces appeared on the scene. This is a great contribution to the development of basketball. "It is rare to achieve such high levels of competition when everybody, by custom, is concentrating solely on the result. Argentina was among the favourites and achieved a completely deserved triumph. The second place finish of the Italians was perhaps the biggest surprise. The Americans had to be satisfied with the bronze medal and European Champions, Lithuania, went home empty handed. Spain played very well, but did not have any luck with only one defeat they still only finished in seventh place. "Sadly, our squad was the greatest disappointment; followed closely by Angola, which had claimed great improvements to the squad had been made prior to the tournament, but they really didn't perform and the standard of the team was far too low." SCG ended the tournament in an abysmal 11th place (of 12). "It is very hard to say why we did so badly and to predict what the future has in store for our basketball. It is distasteful to talk about that. Still, the fact that we lost three games by margins of three points or less shows that we did not have enough luck. However, that is a weak excuse for such a renowned team. "It seems that we were lacking some internal strength. It was obvious that we did not have a genuine match-winner. The captain, Dejan Bodiroga, famous for assuming that role, was not on form this time and nothing went right for him. But I think it's too early to talk about a crisis in our basketball". The result in Athens has seen the SCG national squad toppled from its position as World Number One on the FIBA world rankings list. Once again the U.S. tops that table, with SCG now second and Argentina third. With two weak tournament finishes in a row (6th in EURO 2003 - Sweden & Athens), SCG can afford no more poor performances. Now the nation is trying to forget the Athens nightmare and focus on the future. No mistakes can be made next year, when Belgrade plays host to EURO 2005. If not for pride and global rankings, then purely because the SCG public would struggle to forgive a team that does not shine on home soil in New Belgrade's brand spanking new 20,000 capacity arena. Stankovic insists. "The European Championships in Belgrade is a good chance for our basketball to experience a resurgence. However, the tournament could go either way. Being ranked among the favourites on home turf leaves a bad taste in the mouth, particularly after our Olympic disaster. We must make every effort to ensure all the best players we have are gathered together to compete. Only then will we be medal contenders, hopefully gold medal contenders."•

CorD | October 2004

Faces & Places A reception was held in Belgrade's Diplomatic Club this September to present the special German Chamber of Commerce supplement published in last month's CorD magazine. A number of business partners, members of other Chambers, embassy representatives and friends of CorD and marketing company CMA attended the event, opened by a speech of Martin Knapp, director of German Industry's representative office. Joachim Bleicker, from Belgrade's German Embassy, and CMA director Ivan Novcic, also addressed guests.

Martin Knapp, Joachim Bleicker and Ivan Novcic address guests at reception

This month Belgrade's Aeroclub provided the venue for a celebration marking Ukrainian Independence Day. H.E. Ruslan Demchenko, Ambassador of the Ukraine to SCG, and Military AttachĂŠ Volodimir Voina, hosted The 24th August reception. Guests, including a number of ambassadors and celebrities from Belgrade's cultural and political scene, enjoyed the pleasant atmosphere and champagne of the event.

Ana Novcic, CorD Director and Martin Knapp, Director of German Industryâ&#x20AC;&#x2122;s representative office, welcome the guests

As part of the Days of European Cultural Inheritance, the French Embassy opened its doors to all interested visitors on 11th September. Visiting groups followed by expert guides had the chance to tour the French Embassy and residence halls, which provide special testimony to the good relations between the two countries. Built in 1932 to the plans of French architect Rogear-Henri, this spacious building is a typical expression of French modern architecture from the period between the two world wars, enriched by classical elements such as the accordance of proportions, the elegance and wealth of detail and the simplicity of lines. The three bronze statues adorning the roof of the building, which represent freedom, equality and brotherhood, are the work of sculptor Carlo Sarrabezollesa. The embassy also boasts a grand white marble staircase and all wooden sections are made of Serbian oak.

Faces & Places

HVB Bank organised a festive reception and concert in the Yugoslav Drama Theatre on 7th September to bid farewell to outgoing general director for SCG, Christoph Greussing, and formally welcome his successor, Alexander Picker. Both guests of honour addressed the gathering, before attendees, who included representatives of Belgrade's diplomatic community and political scene, directors of other foreign companies and HVB staff, were treated to a concert.

Christoph Greussing and Alexander Picker welcome guests to Yugoslav Drama Theatre

H.E. Levanya Prasad, Ambassador of India to SCG, hosted a reception to mark India's Independence Day on 10th September. This year marks the 57th anniversary of the year India gained independence from Great Britain (1947.) The garden of the ambassadorial residence, in Senjak Belgrade, was packed with guests including representatives of the diplomatic corps and many Belgrade socialites. Attendants enjoyed traditional Indian music and cuisine.

H.E. Mrs Lavanya Prasad and Indian Embassy officials welcome guests

The Libyan National Bureau in Belgrade organised a reception to celebrate the 35th anniversary of the Libyan Revolution, which was led by Muammar Al-Qathafi in September 1969. The many guests at the reception, held in Belgrade's Intercontinental Hotel on 14th September, enjoyed the traditional Serbian National Dance.

H.E. Mrs Aisha Mokhtar Trhuni, Ambassador of Peopleâ&#x20AC;&#x2122;s Bureau of the Great Socialist Peopleâ&#x20AC;&#x2122;s Libyan Arab Jamahirya and embassy officials

Faces & Places AmCham held a lunchtime business reception on 15th September, with guest of honour Prime Minister Vojislav Kostunica in attendance. Addressing all members of the American Chamber of Commerce, Kostunica said that conditions for legally securing foreign investments in Serbia had been put in place. The Serbian PM said that American companies are leading the way in foreign investors in Serbia, and that they have recognised the advantages of the emerging market here. According to the PM, those advantages include favourable and competitive labour costs, decreased tax rates on profit of around 10% and the Free Trading Agreement with the Russian Federation. He said: "The biggest economic problems in Serbia are low productivity, lack of quality domestic competition and the foreign trade deficit", adding that foreign investments are a big part of the solution for both problems.

Vojislav Kostunica, Serbian Prime Minister

For the third consecutive year, the Belgrade Tourist Organisation has spent the summer realising their Summer in Belgrade - Summer of Good Vibrations programme. The programme, which ran from 12th June to 18th September, included a number of events - such as concerts, fashion shows and fancy dress parties - in the streets and parks of the city to entertain Belgraders and visitors to the capital. The Streets of Good Vibrations - Skadarska, Cika Ljubina and Vuka Karadzica - have seen different cultural events each Saturday, drawing large crowds to these central Belgrade streets. The programme has also had an international theme and, thanks to the tourist organisation's cooperation with various embassies and cultural centres, presentations of foreign towns, regions and states have been staged. The organisation also ran a 'Cultures of the World' programme, successfully staging events that presented the cultural traditions of African, South America and Europe. Representatives of around 30 countries participated in the programme.

H.E. Miroslav Lajcak, Ambassador of Slovakia to Serbia & Montenegro, hosted a reception on 7th September to mark the 12th anniversary of implementation of the Slovakian Constitution. Belgrade-based diplomats, local politicians, artists and Belgrade socialites attended the event, held at the Slovakian embassy. Representatives of Vojvodina's minority Slovakian community also attended the event, as did Jozsef Berenyi, Slovakian Foreign Ministry State Secretary, who is in Belgrade on an official visit to the state union.

H.E. Miroslav Lajcak greets Cuban Ambassador, H.E. Dr. Juan Sanchez Monroe

A farewell reception for outgoing Russian ambassador to Serbia & Montenegro, Vladimir Ivanovski, was held at the Russian embassy on 14th September. In attendance were a number of diplomatic community representatives, Serbian Orthodox Patriarch Pavle, SCG Foreign Minister Vuk Draskovic, Serbian PM Kostunica, Serbia & Montenegro Parliamentary Speaker Zoran Sami and Kosovo Co-ordination Centre head, Nebojsa Covic. Governmental and political party representatives, military officials, cultural figures and members of the scientific community also came to wish Mr. Ivanovski bon voyage.

Ambassador Ivanovski greets Patriarch Pavle

Newly Accredited European Commission Delegation to SCG H.E. Josep M. Lloveras Spanish diplomat, Ambassador Lloveras, arrives in Belgrade after four years as head of the EC's delegation to the Central African Republic. Ambassador Lloveras's career spans 32 years and he has spent the last 11 with the European Commission. Originally a career international banker, financier and consultant, he holds a Masters Degree in business administration, obtained in Spain and the U.S., as well as a Doctorate in finance, gained whilst in France. Born in Barcelona in 1948, he is married to Pilar Torres - financial controller of the Spanish Social Security Administration - and has a 12-year-old son, Boris. CorD | October 2004

Drazen Dalipagic (second from left) with this yearâ&#x20AC;&#x2122;s other Hall of Famers

Sporting

giants By Todor Milenkovic

razen Dalipagic is the personification of Yugoslav, and indeed European, fighting spirit in basketball. Declared European player of the year three times - 1977, '78 and '80 - his enormous contribution to the sport has finally been recognised by America, the basketball association of which granted him a place in their Springfield, Massachusetts-based Hall of Fame on 10th September this year. Dalipagic is only the eleventh non-American to receive such an honour, the first of which was honorary Secretary General of FIBA (World Basketball Federation) Borislav Stankovic, who gained his place in the Hall of Fame in 1991 - the centennial of the birth of basketball. There is perhaps no more modest a sporting ace than Dalipagic. For him, medals and records were taken in his stride. Never one to brag, he accepted the praise bestowed upon him humbly and with respect. To those who don't know the man, it may seem strange that he only found out about the records he set by reading about them in newspapers - he was never chasing such glory. Talking about his accreditation ceremony at Springfield, Dalipagic said: "Everybody at the ceremony was so cordial it left me speechless. That was the event of all time. Hundreds of famous players and coaches gathered in one place, prior to that I had only ever seen many of them on the television. However, it was as though I'd always known them because everybody approached me to offer their congratulations. Amongst them was the famous Julius Erving, and it was a pleasant surprise when John Havlicek told me how happy he was that I had become his heir." Whenever America's basketball pundits mention Dalipagic, they first associate him with Havlicek - a player that famous coach

CorD | October 2004

Nowadays, Serbian sports stars carry the flag of the nation worldwide. Basketball heroes have taken the U.S. by storm, water polo representatives have earned the respect of the water sport world, Mateja Kezman is already earning a reputation in the English Premier football league. Not surprising then that the U.S. basketball Hall of Fame has this year recognised the sporting genius of one of the nation's greatest sons of basketball - Drazen Dalipagic. This month CorD speaks exclusively to 53-year-old Dalipagic about his homeland, his award and his reasons for never joining the NBA, despite being heralded as the new John Havlicek (the famous "gutsy" player). Arnold "Red" Auerbach described as having "guts". Auerbach, who led the Boston Celtics to numerous NBA title victories with seeming ease, was immediately fascinated with Dalipagic when watching his performances at the Montreal Olympics in 1976. As Havlicek was then reaching the end of his playing career, Auerbach hoped the up-and-coming Yugoslav star would succeed the Guts of Boston, and so he invited him to sign for the Celtics. That was the beginning of the legend of the "sky flier from Yugoslavia". Though, ultimately, the story never got off the ground. Dalipagic explains: "Even today I am convinced I could have had a successful career in the NBA. America journalists in Springfield were still most interested in discovering why I rejected the offer from the NBA. The answer is the same as it was three decades ago: at that time, joining the NBA would have spelt the end of my time with the Yugoslav national squad and I simply wasn't prepared to pay such a high price. Also, I was not ready for a completely new way of life. I do not regret that. I had a career in Europe that I am very proud of." Fate ensured that Auerbach, Havlicek and Dalipagic never got together at Boston. But now, all three of them grace the walls of the Hall of Fame. Dalipagic, born in Mostar, Bosnia, on 27th November 1951, was exclusively a footballer until the age of 17. The only legacy of those days is his nickname - Praja - which grew out of his comparison to Mostar Velez's great star Dane Praja. Dalipagic was considered an

Interview extremely talented footballer and, were it not for the fact that he became a very tall man in a very short space of time, we could well be writing about a famous former footballer now. Praja says: "I stopped playing football because, at the age of 16, I suddenly grew a lot. I was a talented footballer and was practicing with players who formed the backbone of Velez. Soon after I started to play basketball in Lokomotiva, and at that time Ranko Zeravica, who was the national squad and Partizan coach, brought me to Belgrade. I also received an offer from Red Star, which was a much stronger team than Parizan. However, Zeravica's name was crucial, as was the fact that I knew I would get a chance at Parizan immediately". It soon became clear that Red Star had lost a crucial battle in the race to sign Dalipagic and Partizan went through such a solid period of strengthening that Red Star never fully recovered. Partizan certainly got their money's worth: the first trophy in the club's history - the 1978 Radivoje Korac Cup, the final of which was played against Italian side Cantu and saw Dalipagic amass a 50point haul; the highest scorer of all time - 8,278 points in 305 games (a ratio of 27.1 points per game) and a solid European image. Dalipagic made his representative debut as early as 1973, playing for Yugoslavia at the European Championships in Barcelona. He was the first and only player to by-pass the representative youth system and make it straight into the senior squad - a fact that, in itself, demonstrates his outstanding talent. The records that ultimately gained him his Hall of Fame place fell like rain. The basketball hall of fame, officially called Naysmith's Hall of Fame in honour of father of basketball John Naysmith, was established in 1952 to immortalise those giving the greatest contribution to basketball. Dalipagic's contribution to the sport is irrefutable: he is the Yugoslav squad's highest every scorer, with 3,131 points. With 243 appearances and 12 medals, he is second on the list of Yugoslavia's all-time representatives, after legendary great Kresimir Cosic (303 games, 14 medals). Dalipagic is FIBA

record holder, with four medals from four World Championships. He was top scorer and player of the tournament at the 1978 World Championships in Manila. He scored more points in a single match than any other player in Italian league history - scoring 70 points for Venice versus Cinder in the 1986/87 season, and has the highest play-off average in Italy (34.7). He scored 50 points in 15 matches at a time when the three-pointer didn't exist. During his career, he played for Lokomotiva (Mostar), Partizan Belgrade, Red Star Belgrade and three Italian clubs - Venice, Udine and Verona.

Hall of Fame - Class of 2004

Besides Dalipagic, five other basketball greats gained places in the Hall of Fame this year. They were Clyde Drexler, former Portland and Houston "sky skater", famous female star Lynetter Woodard, Pheonix Suns chairman Jerry Colangelo and, posthumously, Maurice Stokes (1934-1970), who lost his fight for life after battling against injuries received while playing the sport. Displaying the modesty for which he is well known, Dalipagic says: "I was lucky to co-operate with such extraordinary coaches and players, and many of them deserve to be nominated to the Hall of Fame. Here I firstly think of Zeravica, who had the biggest influence on me, and my long-time teammates Kicanovic and Slavnic. But there are many others to whom I owe this success. All of them, in their active days, gave me something which finally brought me to the Hall of Fame". The Hall of Famer maintains an active presence in the sport, as sporting director of New Belgrade's Atlas Club, which he hopes to lead into the SCG Super League this season. He also promotes AND 1 and is a member of ULEB - the Euro League Technical Commission.â&#x20AC;˘

CorD | October 2004

Belgrade's river clubs and cafes

Riverbank fun in Belgrade

By Maja Vukadinovic, Photo Mikica Petrovic

a rarity among the great cities of Europe. Parties on the river are few and far between in most capitals, but here in Belgrade they have become a way of life that's not to be missed. Anyone visitThis month CorD's Maja Vukadinovic reports ing Belgrade should go out and join in the adventure. It was only at the end of the 1980s that riverboat bars and on the exciting and varied hotspots of Belrestaurants became popular in Belgrade. These venues were inigrade's riverside bars, clubs and restaurants. tially stylish restaurants located on Usce - the confluence of the Danube and Sava rivers - and offering top-class local cuisine in elegant surroundings with relaxing music. Soon after, waterhe three overwhelming impressions of foreign visitors to borne discotheques and bars began to open, though these were Belgrade are the beautiful women, gourmet cuisine and not yet the "in" places to be. exciting nightlife. Whether visiting for just a weekend, or a This initial surge in popularity was halted in the early '90s, full fortnight's holiday, foreign tourists always notice Belgrade's when a series of violent disputes and alcohol-fuelled brawls heaving around-the-clock bars, packed nightclubs, eclectic archiruined the reputation of the riverside scene and the custom gained a reputation as being synony…such an abundance of floating nightlife venues is a rarity mous with violence and danger. However, some cult venues remained among the great cities of Europe. Parties on the river are few popular as live Gypsy music venues and and far between in most capitals, but here in Belgrade they great places to go between midnight and albeit with a degree of excluhave become a way of life that's not to be missed. Anyone daybreak, sivity and non-commercial popularity. visiting Belgrade should go out and join in the adventure. Even today, some of the most reputed riverboat clubs enjoy an exclusive statectural designs, stylish citizens and live music venues. However, tus, largely due to the fact that they are small, intimate venues the strongest impression is invariably left by the crazy nightlife only able to accommodate up to fifty 'select' guests. Moreover, of Belgrade's splavovi - riverboat bars, clubs, restaurants and these famous venues are often the most isolated and "off the cafes - because such an abundance of floating nightlife venues is beaten track", ensuring that one must 'know someone who

CorD | October 2004

knows' if one wants to sample the nightlife of such venues. Over the years "anchored cafes" have come and gone from Belgrade's riverbanks; changed names and concepts, polishedup the dĂŠcor, followed short-lived fads, trends and subcultures - from classic country clubs to blaring turbo-folk dance clubs, to

urban oases such as the renowned No Name, situated under the Sava's railway bridge. Music trends determined the styles of the boats, with exclusive techno parties giving way to contemporary styles of music becoming the sound-set of the current offering. Belgrade's river clubs and cafes are divided according to location, quality and the kind of entertainment they offer and clientele they attract. But one thing is for sure - all tastes and demands are catered for.

Consistently the most popular of these clubs are those on the Zemun waterfront by the Hotel Yugoslavija. Here the atmosphere is hot all year round and the stylish bars are a lure for those wanting to be seen. Designer-label clad young ladies and fast-car driving lads have made this place a home from home and clubs such

Techno Talk

Sony XDR-S1

www.sony.co.uk Leave it to Sony to sit back and learn from other's mistakes before delivering a crushing blow to the competition. At least, that's the Japanese giant's plan. The company is now throwing itself into the DAB portable market with this, the high-design XDR-S1. Though the Marmite styling (you'll either love it or hate it) might attract debate, the amount of development that has gone into the unit, coupled with the modest price tag, will be enough to silence critics, one hopes. The S1 has also Euro and UK DAB bands, as well as FM, MW and LW, which leaves no station united.•

Reebok Strikezone

Retail price : cca € 240

www.reebok.co.uk As unlikely as it is that any of we mere mortals will ever truly appreciate the sheer sweetness of scoring a screamer in a top-flight match, at least we can rest assured that we will be joining an illusion team when donning the latest incarnation of these massively successful football boots. Their number one selling point is that laces are tucked discreetly away, therefore giving a larger strike zone.• Retail price : cca € 120

Schwinn Sting-Ray

www.schwinnstingray.com Swaggering into the office with the macho bravado of a Steve McQueen or James Dean, the Schwinn Sting-Ray oozes masculinity. Part chopper, part cruiser, it bears what has to be more than a coincidental resemblance to Harley-Davidson's acclaimed V-Rod motorbike. From riveted saddle to oversized front wheel, this is a cycle that sneers at white-van man and gives passing Nissan Micras the middle-fingered salute. Attitude in a pushbike is a good thing by our reckoning, and this has it in spades. Sadly, it's tailored for seven-to-12-year-olds.•

CorD | October 2004

Retail price : cca € 300

Techno Talk

6630 and Video Call Stand

www.nokia.co.uk In the bar where the Four Horsemen first met, three strangers are nervously sharing a drink. The door opens, causing 3G, EDGE and series 60 to look up. As soon as they see the Nokia 6630 enter, they know that their new master is going to take them further and faster than they have ever been before. It wanders over, casually spinning a 1.23megapixel camera, and orders a round of whiskies. Before long, the liaison is assured, tongues become loose and the talk turns to live video streaming, always-on email, 384Kbps surfing and video calls. The other patrons of the bar, many of them still only 2G, overhear these words and know that their time is over. There's a new guy in town and is he ever powerful.• Retail price : tba

Mustek PVR A1 www.redstore.com How are you enjoying the age of the video Walkman? Getting home, hooking up your PVR A1 to the permanent AV-out from your TV. Sitting down to an evening of eclectic digital programming and recording the best bits to your portable device. Next morning, recording the news while you're dressing. Once on the train, enjoying the playback in 320x240 MP4 on a 2.5in LCD and tutting at people who determinedly read a broadsheet in a busy carriage. At work, using it as an MP3 player and storage device - though you might need to invest in a hefty SD card to supplement the 32MB internal memory. Although, in this age of video Walkmen, you really should have done that by now.• Retail price : cca € 180

Gametrak

www.in2games.uk.com There's a phease in Gametrak's own bumph that sums up this product perfectly: 'Intuitive maiming.' Intrigued? The Gametrak is a unique control system that will launch initially for the PS2. The device sits on the floor; you stand above it wearing gloves that are connected to it by some kind of high-tech string (or possibly just string). With a compatible game - at the moment only its own fighting game, Black Wind, which is bundled - you can now punch, jab and grab at your virtual opponent. Future applications include golf games and, think about this, a lightsaber. • Retail price : cca € 105 CorD | October 2004

Techno Talk Bushnell Spacemaster

www.jjvickers.co.uk This tiny tripod-mounted piece of gadgetry features 15-45x zoom magnification and heralds a new, portable era of voyeurism. Even more ominous is the option to window mount the Spacemaster, rubbishing any defence that you'll use it for fishing. As though you could reach out and touch it, says Bushnell.• Retail price : cca € 375

Alcohol and UV tester

www.silvercandy.co.uk With studied nonchalance, Bond looks at his watch. Just one hour remains until he has to rendezvous with the professor, and a dangerous drive to safety. He takes a pen from his jacket pocket and sharply blows into it. Hidden electronics measure the alcohol level of his blood, and a glaring red LED informs Bond that he is unfit to drive. 'Merde', thinks Bond, drily observing the church across the street from the bar. Ten in the morning, and too drunk to drive: M will be furious. Toying with the pen, he notices that the UV indicator also has bad news: his sinburn will ruin any cover story about imprisonment. Bond fingers his '00' standard cyanide pill… •

Noble M14

Retail price : cca € 28

www.noblecars.com The mighty Aston Martin is chewing its fingernails in worry. Fellow British sports car manufacturer Noble - maker of the superb M12, arguably one of the best track-day cars money can buy - has broadened its horizons dramatically. The stunning M14 will take Porsche, Ferrari and beloved Aston Martin directly on the nose. Behind your head is a twin/turbocharged 3.0-litre V6, creating 400bhp, 4.3 secs 0-60 time and top speed of 190mph. Supercar figures, with a suitably supercar interior, including full leather sourced from the same supplier as Ferrari and electronic trickery like sat nav. Our favorite feature: the rev counter needle changes color from blue to pink as the revs increase. • Retail price : cca € 112500

CorD | October 2004

Techno Talk

Sennheiser RS 120

www.sennheiser.co.uk Dogs, children, partners, flatmates….there are plenty of reasons why you might choose to wander around your home oblivious to outside interference. Wireless headphones are a good way to go about it, and these give up to 150m of isolation range. Sennheiser's experience in the field is apparent as soon as you put on these 230g cans and crank up the sound: the quality is remarkable for an RF wireless set-up. They run off a pair of rechargeable AAA batteries that juice up whenever you place the head set back on its stand. • Retail price : cca € 90

Moore Medio

www.kustompcs.co.uk

All too often, PC companies reckon they can make a 'lifestyle' machine by knocking a standard PC case on its side and bolting a plate of aluminium to the front. They're wrong, of course. But the Medio is a good example of how it should be done. Designed from the ground up, it has award-winning extruded aluminium fins that keep things cool without too many noisy fans. Inside, there's a top-drawer selection of PC bits, including a 2.8 GB Northwood processor, Radeon 9600XT graphics, Creative Audigy 2 sound card and a choice of analogue or digital TV cards.• Retail price : cca € 3000

Nike Alti Race

www.nikeacg.com Seals are cuddly little fellows. They wear black, catch fish, make daft 'arf' noises, fanny about on rocks and have no affiliation with watch manufacturers. US Navy SEALs, on the other hand, shoot more or less any nonAmerican they come across, make raucous 'whooping' noises, fanny about on high-powered jetskis and advise Nike on watch design; hence the Alti Race you're busily coveting as we speak. The Alti Race houses a host of handy alerts, including one hydration, two altitude and four time alerts. A resonance chamber amplifies the alarm so it's loud enough to be heard over a powerboat engine, a gunfight, or while eating a crisp sandwich. • Retail price : cca € 300 CorD | October 2004

Mediterranean flavours

t is far from easy to define and fully appreciate the myriad flavours of Mediterranean cuisine. Because the region consists of so many different countries, it contains vastly contrasting customs and traditions that are reflected in their specific cuisines. The Mediterranean Sea represents the blue heart of Southern Europe, granting life and prosperity to all the countries that call its coastlines home. However, the Mediterranean has not just brought material wealth and trade to its inhabitants, but also torturous conquests and war - with great and glorious empires fighting to control the strategic sea for millennia. Despite the vast differences, Mediterranean cuisine can be roughly divided into three types: North African (Morocco, Tunisia), Eastern Mediterranean (Egypt, Greece, Israel, Libya, Syria, Turkey) and Southern European (Italy, France, Spain). Mediterranean cuisine sparked the interest of scientists, nutritionists and laymen worldwide when it was proved that those enjoying a traditional Mediterranean diet tend to suffer less from serious illnesses and live longer. The key to this healthier life, it seems, is a regular diet of fish and other seafood, tomatoes and the different spices that provide the base for all Mediterranean fare. In addition, many healthy dishes, such as fresh olive oil laced salads, garnished with parsley, basil and garlic, add to the healthy nature of Mediterranean food. It is believed to be the freshness of vegetables, often devoured raw or el dente, that aids health. It is customary for Mediterranean meals to begin with an appetiser, such as crustini - small slices of French bread, topped with mozzarella cheese, tomato and olive oil and then baked in the oven, or dried, Palma-style ham, fresh olives, different cheese and baked vegetables. Soups are also a common starter. Main meals often comprise fish or other seafood, fried or grilled in olive oil, marinated, barbequed or even boiled and accompanied with one of a variety of sauces. A very wide range of seafood is used in Mediterranean cuisine and, depending on the region in question, one can enjoy sea perch, bass, tuna, salmon, cod, sea bream, carp and some rare fish. Other seafood used in the area includes squid and octopus, cuttlefish, mussels, clam, lobster, crab and shrimp.

CorD | October 2004

This seafood is prepared in a variety of ways. Sometimes fried or in salad with fresh vegetables, contained in risotto, paella or flavoursome stews and soups. Though fish and other seafood forms the basis of most Mediterranean cooking styles, other types of meat are, of course, on the menu. This is most often chicken, lamb or other white meats. Steak is also eaten, but it is usually sliced more finely than elsewhere in the world. Pasta dishes are another Mediterranean speciality. There are so many different kinds of pasta that it would be all but impossible to list them all. Every possible permutation is possible with pasta and almost any ingredient can be used to make a pasta sauce, ensuring it is an effortless alternative combining any ingredients one has to hand. The only essential element is that it be colourful and tasty. Hospitability is the imperative in Mediterranean countries, and also in all the places where Mediterranean cuisine is on the menu. Such places exist in Belgrade too. The smells and tastes of the Mediterranean, as well as the exceptional hospitability of the owner, with the sound of the deep sea, are available to you when you step into the Konoba at the Bottom of the Sea. The premises, decorated with many rare and authentic pieces from the bottom of the sea: amphora, shells and diving equipment gifted by divers and sailors from across the globe. Every object is authentic and unique. Konoba offers you maximum relaxation and enjoyment. So dive in and feel the smell and the taste of the Mediterranean.

TAVERN 'AT THE BOTTOM OF THE SEE' 30 Dobracina St., Belgrade, Tel: 011/625-869 Working hours: 9am-12 pm, Sunday closed

SHELLS- MIX ON GRILL Ingredients: 150 g mussels, 200g prstaci, 150 g vongolas, olive oil, garlic, dill, 0.05dcl white vine, lemon juice Heat the frying pan, put some olive oil and put shells into pan. Put cover lid on pan and wait that shells open, because it is the sign that they are ready for use.

'CORTO MALTESE ' PLATE 100 g smoked ham, 100 g black olives, 100g cheese from oilAll ingredients put on the plate and decorate as you wish. Serve as starters.

CRUSTTINI ' Welcome' Ingredients: 50g fresh tomato, 50g mozzarela cheese, 5g drained basil leaves, baget bread, olive oil, Tomatoes finely chopp( on cubes) add mozzarela cheese chopped on cubes, basil leaves, salt, pepper and litlle olive oil. Everything mix well and put on baget bread which is chopped on slices. These bread slices put in oven and bake.

SALMON ' AT THE BOTTOM OF THE SEE' Ingredients: 300 g fresh salmon, 80 g mixed vegetables (potato and carrot), Spinach sauce Spinach sauce: fry onions on olive oil, add little garlic, add cooked spinach, ad little chicken soup, salt, peper, muscat nut and double cream. All that put in blender and mix good. Fry salmon on olive oil. Serve hot and decorate as you wish. CorD | October 2004

Jugokoncert Wednesday, 6th October, 8pm. the National Museum's Atrium; The Saint George Church in Novi sad choir Sunday, 10th October, 11pm. the National Museum's Atrium National Creative work; The Balkans between East and West; Selector: Dimitrije Golemovic Monday, 11th October, 8pm. the National Museum's Atrium; Choir and studio for spiritual music, MELODY; Conductor Divna Ljubojevic • ETNOGRAPHIC MUSEUM

Theaters & Museums • THE NATIONAL MUSEUM 1a, Trg Republike Tel: 330 60 00 Fax: 62 77 21 narodnimuzej@narodnimuzej.org.yu www.narodnimuzej.org.yu Exhibitions 20th October - 28th November The National Museum Atrium - "KAREL APEL, works on paper" Hague Museum guest exhibition - "The new visual identity of the National Museum - The new life of Miroslav's Gospel"

- The National Museum's Atrium Presentation of the catalogue Italian paintings from XIV untill XVIII century, From the National Museum in Belgrade; Authors: Rosa D' Amico, Tatjana Bosnjak and Dubravka Preradovic October - The National Museum's Atrium The promotion of monograph LUBARDA Texts: Stanislav Zivkovic, Olga Perovic and Djordje Kadijevic

Studentski trg 13, Belgrade Tel: 3281-888 www.etnomuzej.co.yu 21.September- 30.November - exhibition of 'Traditional vessels' created by Zoran Rodic 28.September - 17. October- exhibition of 'still life - treasury out of time' • SAVA CENTRE 9, Milentija Popovica , Belgrade Tel: 2139-840, 311-4322 www.savacentar.com

International science meeting 3rd October - Contest for MISS SCG "With a guidebook around SouthEastern Europe"; 28th - 31st October - The National Museum The Serbian Academy of Sciences and Arts Balkanological Institute in cooperation with the Geo Economical Faculty of Megatrend University of Contemporary Sciences, the Goethe Institute in Belgrade and the National Museum.

5th OctoberJOY OF EUROPE 7th October - Main stage Opening of the Festival of electronic music DIS-PATCH

The Fresco Gallery 20, Cara Urosa t?l. 011 2621-491 e-mail: gfres@narodnimuzej.org.yu -regular exhibition Tuesday 5th October, 7pm About the perished monastery of Svetih vraca (the Holy sorcerers) in Zociste and temples of the same architectural structure in Metohija; Talks: Bojan Popovic, the art historian, the National Museum Belgrade

9th October BEMUS- Belgrade Music festival Madrid Ballet- Victor Ulate 13th October - Concert "4 ASA" Vlado Kalember, Rajko Dujmic, Alen Islamovski i Jurica Padjen

BEMUS (The Belgrade Music Festival) Promotions Friday, 8th October, 12noon - The National Museum's Atrium Book Promotion NOVO BRDO (The New Hill) Publisher: The Serbian Institute for the Protection of Cultural Monuments Tuesday, 12th October, 6pm

CorD | October 2004

14th October - Film Premiere "JESEN STIŽE, DUNJO MOJA" (Autumn is coming, my quince) Director: Ljubisa Samardzic 20th October - Ballet 'SAMSON and DALILA" Ballet ansamble of National Theatre 21st - 23rd October - Main stage 16th Belgrade Fashion Week

Belgrade Directory 25th October - Concert FEMI KUTI 27th October - Celebratory concert in co-operation with the Austrian Embassy Belgrade Opera Orchestra - Solo from Austria 28th October - 5th November - Film Review CINEMANIA • THEATRE ATELJE 212 21 Svetogorska St, Belgrade Tel: 3247-342 www.atelje212.co.yu atelje212bilet@beotel.yu MAIN STAGE 3rd October 8pm EGZIBICIONISTA - O.J.Traven (Exhibitionist) 4th October 8pm TRI VERZIJE ŽIVOTA - J.Reza (Three versions of life) 5th October 8pm DŽEPOVI PUNI KAMENJA - M. Džons (Pockets full of stones) 9th October 7pm POLJSKA KONJICA - M.Vešovic - gostuje Kamerni teatar 55, Sarajevo (Field ponies) 11th October 8pm PUKOVNIK PTICA - H.Bojcev - gostuje Kamerni teatar 55, Sarajevo ( Colonel Bird) 14th October 8pm ALISA - B.Srbljanovic - premiere 15th October 8pm CUDO U ŠARGANU - Lj. Simovic (Miracle in Shargan) 16th October 8pm CUDO U ŠARGANU - Lj. Simovic 18th October 8pm GRADJANIN PLEMIC - Ž.B.P.Molijer (Citizen nobleman) 19th October 8pm ALISA - B.Srbljanovic 21st October 8pm DŽEPOVI PUNI KAMENJA - M. Džons (Pockets full of stones) 22nd October 8pm ALISA - B.Srbljanovic 23rd October 8pm TRIPTIH, ballet -Chamber Opera "MADLENIANUM" 25th October 8pm EGZIBICIONISTA - O.J.Traven ( Exhibitionist) 26th October 8pm TRI VERZIJE ŽIVOTA - J.Reza (Three versions of life) 28th October 8pm ALISA - B.Srbljanovic 29th October 8pm ALISA - B.Srbljanovic 30th October 8pm AMERIKA - B.Srbljanovic 31st October 8pm AMERIKA - B.Srbljanovic THEATRE IN BASEMENT 3rd October 8.30pm DVIJE - T.Štivicic (Two) 4th October 8.30pm PUT DO NIRVANE - A.Kopit (Road to nirvana) 5th October 8.30pm SABRANE PRICE - D.Margulis ( Collected stories) 7th October 8.30pm UHO, GRLO, NOŽ - V.Rudan (Ear, throat, knife) 9th October 9pm HELVEROVA NOC -I.Vilkvist - gostuje Kamerni teatar 55,

Sarajevo (Helver's night) 10th October 8.30pm HENRIK IV - L.Pirandelo 11th October 8.30pm PRICA O DŽIPSIJU TROLMANU - D.Cvetic (Story of Gipsy Trolman) 12th October 8.30pm SILVIJA - A.R.Garni 14th October 8.30pm U POSETI KOD GOSPODINA GRINA - Dž. Baron (Visiting Mr. Green) 15th October 8.30pm M(J)EŠOVITI BRAK S.Koprivica (Mixed marriage) 16th October 8.30pm PUT DO NIRVANE - A.Kopit ( Road to nirvana) 17th October 8.30pm SABRANE PRICE - D.Margulis ( Collected stories) 18th October 8.30pm DVIJE - T.Štivicic 19th October 8.30pm SILVIJA - A.R.Garni 21st October 8.30pm U POSETI KOD GOSPODINA GRINA - Dž. Baron 22nd October 8.30pm HENRIK IV - L.Pirandelo 24th October 8.30pm UHO, GRLO, NOŽ - V.Rudan 26th October 8.30pm PRICA O DŽIPSIJU TROLMANU - D.Cvetic 29th October 8.30pm BRANA - K.Mekferson 30th October 8.30pm BRANA - K.Mekferson 31st October 8.30pm BRANA - K.Mekferson • BELGRADE DRAMA THEATRE 64a Milesevska St., Belgrade Tel: 2413-299 www.bdp.co.yu

22nd September ZVER NA MESECU (Beast on the moon) 23rd September VILLA SACHINO 24th September PANDORINA KUTIJA (Pandora's Box) 26th September PROKLETA AVLIJA- Krusevac Theatre 27th September FREDERIK 28th September PRIVATNI ŽIVOTI (Private lives) 30th September FREDERIK • JUGOSLAV DRAMA THEATRE

MAIN STAGE 8pm 1st September JE LI BILO KNEŽEVE VECERE? (Was that the Duke's dinner?) - National Theatre, Nis 2nd September SVINJSKI OTAC (Pig's father) - Krusevac Theatre 5th September VINSENT (Vincent) 7th September ZLATNO RUNO (Golden fleece) 8th September KRIVOVO - guest performers from Vranje 9th September FREDERIK 12th September VILLA SACHINO 13th September VILLA SACHINO 14th September VINSENT 15th September DUGOM PRUGOM DO SRCA (Long line to the heart) 16th September KAJ SAD? (What now?) 17th September ZLATNO RUNO (Golden fleece) 18th September VILLA SACHINO 19th September VINSENT 21st September KAJ SAD? (What now?)

50 Kralja Milana St, Belgrade Tel:3061-957; 644-447 www.jdp.co.yu Moliere MAIN STAGE 2nd October 8pm ZORA D. (The Down D). Conductor Premil Petrovic - PREMIERE opera (guest appearance at BEMUS - opening) 3rd October 11pm ZORA D. (The Down D) Conductor Premil Petrovic 7th October 8pm MLETACKI TRGOVAC (The Merchant of Venice) Dir. by Egon Savin 8th October 8pm MJERA ZA MJERU (Measure for Measure) Directed by Alesh Kurt (guest apearance, NT Sarajevo) 10th October 8pm POBUNA U NARODNOM POZORIŠTU (The Mutiny in the National Theatre) Directed by Haris Pasovic (guest apearance, National Theatre from Sarajevo) 12th October 8pm MOLIJER - JOS JEDAN ZIVOT (MOLIERE - One More Life) Directed by Dusan Jovanovic 13th October 8pm MOLIJER- JOS JEDAN ZIVOT Directed by Dusan Jovanovic 14th October 8pm MOLIJER- JOS JEDAN ZIVOT Directed by Dusan Jovanovic 16th October 8pm PSECI VALCER (The Dog's Waltz) Directed by Dejan Mijac 17th October 8pm Karl Orf MUDRICA, Conductor Gorjan Korunoski (guest apearance, Madlenianum Chamber Opera) CorD | October 2004

Belgrade Directory 21st October 8pm PSECI VALCER (The Dog's Waltz) Directed by Dejan Mijac 22nd October 8pm SINE (Tracks) Directed by Slobodan Unkovski 26th October 8pm PSECI VALCER (The Dog's Waltz) Directed by Dejan Mijac 27th October 8pm RODOLJUPCI (The Patriots) Directed by Dejan Mijac 28th October 8pm BURE BARUTA Directed by Slobodan Unkovski 29th October 8pm SINE (Tracks) Directed by Slobodan Unkovski THEATRE "BOJAN STUPICA" 3rd October 8.30pm R A Z V A L J I V A N J E (Demolition) Directed by Iva Milosevic 6th October 8.30pm BLIZE(Closer) Directed by Alisa Stojanovic 7th October 8.30pm SKUP (The Gathering) Directed by Jagos Markovic 8th October 8.30pm SUPERMARKET Directed by Alisa Stojanovic 9th October 8.30pm PAVILJONI (Pavilions) Directed by Alisa Stojanovic 10th October 8.30pm SKUP (The Gathering) Directed by Jagos Markovic 11th October 8.30pm RAZVALJIVANJE (Demolishing) Directed by Iva Milosevic 13th October 8.30pm SHOPPING & FUCKING Directed by Iva Milosevic 14th October 8.30pm PLAVA SOBA Directed by Alisa Stojanovic 15th October 8.30pm PLAVA SOBA Directed by Alisa Stojanovic 16th October 8.30pm GOVORNICA Directed by Jagos Markovic 19th October 8.30pm SHOPPING & FUCKING Directed by Iva Milosevic 21st October 8.30pm GOVORNICA (The Speaker's Platform) Dir. by Jagos Markovic 22nd October 8.30pm TERASA (The Terrace) Dir. by Tanja Mandic Rigonat 23rd October 8.30pm PLAVA SOBA (The Blue Room) Dir. by Alisa Stojanovic 24th October 8.30pm BUBA U UHU (The Bug in the Ear) Dir. by Ljubisa Ristic 25th October 8.30pm SUPERMARKET Directed by Alise Stojanovic 26th October 8.30pm TERASA (The Terrace) Dir. by Tanja Mandic Rigonat 27th October 8.30pm BLIZE (Closer) Directed by Alisa Stojanovic 28th October 8.30pm BUBA U UHU 29th October 8.30pm SHOPPING & FUCKING Dir. by Iva Milosevic 30th October 8.30pm BUBA U UHU (The Bug in the Ear)Dir. by Ljubisa Ristic 31st October 8.30pm RAZVALJIVANJE (Demolishing) Directed by Iva Milosevic • THE GOETHE INSTITUTE www.goethe.de/belgrad 50, Knez Mihailova St. Tel: 011/ 2622-823, 625-677, 631-935, 633-247, 184-575 7th - 10th October DIS-PATCH 3 The Electronic Music Festival

CorD | October 2004

8.10pm - 10pm, The Student Cultural Centre Bass Terror! From Germany: The T. Raumschmiere Band 11th October - The Goethe - Institute Lecture Prof. Dr Mihajlo Đuric, member of the Serbian Academy of Science and Arts Cant's Metaphysics of Nature 20th October - 3rd November The Contemporary Art Gallery, Nis Exhibition by Regina Smeken: New Centre. Photographs 1989 - 2000. 28th October 6pm The Goethe- Institute Lecture Prof. Dr Johen Reke, Slavist seminar Tibingen Speak Serbian so that everybody can

(Guidebook from UB funds, Matica srpska and the National Library) The opening in the National Museum's Atrium in Belgrade with the welcoming speech and two reports 29th and 30th October: The National Museum Belgrade Information: Prof. Dr Djordje S. Kostic, e-mail: jmkostic@eunet.yu Additional Information: 19th October - 25th October The Belgrade Book Fair information: www.sajam.co.yu 30th September - 2nd October The University of Arts, Belgrade, 29, Kosancicev venac Symposium: "Cultural Politics and Art Production" information: www.arts.bg.ac.yu 30th October - 1st November The Institute for Mental Health, 37, Palmoticeva Lecture: Dr Hajde Oten, Vinhauzen, The president of the international Balintfoundation and the secretary general of the Balint Society from Germany. Timetables for German language exams in the Goethe-Institute exam centre in I.M. Kolarac's Memorial: 13.10. Zentrale Oberstufenprüfung (ZOP) 20.10. Zentrale Mittelstufenprüfung (ZMP) 27.10. Zertifikat Deutsch (ZD)

understand you - about the difficulties experienced during the preparation of the German-Serbian dictionary 22nd - 26th October Jugoslav Film Library The 6th International Festival of Student Film Programme from Germany: The Film and Television Academy (DFF) Berlin, The Baden-Virtenberg Film Academy and the "Conrad Wolf" Faculty for Film and Television (HFF) Potsdam-Babelsberg.

For detailed information, prices and application deadlines ring Kolarac directly on: Tel: o11 630 480, e-mail: skola@kolarac.co.yu • BELGRADE CULTURAL CENTRE

"FSF06" - Tuesday, 26th October 12noon The Goethe-Institute Presentation: "Discovery Campus and Sunny Side of the Docs" Moderator: Siniša Juricic Programnme presentation/projects linked to the production and distribution of documentaries, discussion: 28th - 31st October Symposium - "With a guidebook around South-Eastern Europe" 28th October, AM: University library "Svetozar Markovic" Opening of the exhibition "On the Balkan roads"

6, Knez Mihajlova St, Belgrade Tel: 621-469 Exhibition Gallery, Knez Mihailova 6 (working hours : 10am - 9pm) 10th September - 31st October 45th October Art Salon:

Belgrade Directory Continental Breakfast Elke Rakauskajte (Lithuania), Maja Rakocevic (SCG), Maja Radanovic (SCG), Lada Cerar i Sašo Sedlacek (Slovenia) Gallery ARTGET, Trg Republike 5 /I (working hours: 10am - 9pm) 10th September - 31st October 45th October Art Salon: Continental Breakfast Aleksandrija Ajdukovic (SCG), Paula Mikloševic (SCG), Žana Poliakov (SCG), Filipa Sezar (Portugal)

Tel: 302-36-00 E-mail: ccf@ccf.org.yu 6th September - Animated film: Balkanima - DK Student city - Exhibition, electronic music: Dis-Patch Students cultural centre, 7pm 7th September - Film: Le coeur de hommes - 8:30pm

Thursday, 14th October at 8pm Sunday Concert The Ensamble Pacamama music group will present traditional music from the Andes as well as music from Peru, Bolivia, Argentina and Ecuador.

Music Programme tel: 26 22 058

Monday, 11th October. 8pm - Concert in Gallery Predrag Milanovic, bariton Jelena Džajic, piano Monday 18th October. 8pm - Concert in Gallery - 35th anniversary Concert Radmila Smiljanic Friday 22nd October. 8pm - Concert in Gallery Evening of conductor Predrag Miloševic Jasmina Jankovic, piano Aleksandra Rokvic, soprano Belgrade string quartet Monday 25th October. 8pm - Concert in Gallery Jelena Draškoci, flute Ivana Zaric, flute • FRENCH CULTURAL CENTRE

The photographs of young Serbian photographer, Bojana Bojovic, who is inspired by flamenco will be presented. The exhibition will be opened by the director of the Cervantes Institute in Belgrade, Juan Fernández Elorijaga. The exhibition will be open throughout October. Saturday 9th October at 8pm Spanish Cinema Club The projection of the film, the Stick, directed by Eva Lesmes with Mirabel Verdu and Carmen Maura. Original version with English subtitles.

Belgrade window, Knez Mihailova 6 10th September - 31st October 45th October Art Salon: Continental Breakfast Vlasta Delimar (Croatia)

Art Gallery "Cvjeta Zuzoric", Mali Kalemegdan 1 Friday, 8th October. 8pm - Concert in Gallery Trio "Balkan strings" (Balkan music on three guitars) Duo Starcevic - Nikola i Željko Starcevic (classical music)

Thursday 7th October at 7pm Opening of the photographic exhibition The Photo BEOgraphy of Flamenco by Bojana Bojovic

8th September - Symposium: 200 years of Civil Code- Rectorate 10th September - Electronic music: Dis-Patch - Centre for cultural decontamination 13th September - BEMUS - Belgrade musical celebrations - Strasbourg percussionists- Kolarac 8pm 14th September - Film: Pere et fils- Art cinema 8:30pm 16th September - Exhibition closure: Dis-Patch- Student cultural centre 18th September - Symposium: French-Serbian relations 1904-2004- Belgrade Archive House 19th September - Symposium: French-Serbian relations 1904-2004- Belgrade Archive House 19th - 25th September - BOOK FAIR - Belgrade Fair 22nd - 26th September - Students film festival- Film library 27th September - Film: Mercredis de L'Europe - French cultural centre

Saturday 16th October at 8pm Spanish Cinema Club The projection of the film, the Red Squirrel, directed by Julio Medema with Ema Suares, Nanco Novo and Carmelo Gomez. Original version with English subtitles. Saturday, 23rd October at 8pm Spanish Cinema Club Projection of the film, Murder in February, directed by Eteria Ortega Santiljana with Natividad Rodrigues and Begonia Elorza. Original version with English subtitles. Saturday 30th October at 8pm Spanish Cinema Club Film, You ´re the one, directed by Jose Luis Garcia with Lidia Bosh, Julio Gutieres Kaba and Juan Diego. Original version with English subtitles.

11 Zmaj Jovina St., Belgrade • SERVANTES INSTITUTE 19 Cika Ljubina St, Belgrade Tel: 623-573, 631-535 E-mail: servantes@sezampro.yu Saturday 2nd October at 8pm Spanish Cinema Club Projection of the film Luna's Game, directed by Monica Laguna with Ana Torent and Carlos Kaniovski. Original version with English subtitles.

CorD | October 2004

Belgrade Directory

How to... CorD's editorial staff will attempt to find and give answers to questions of current interest to our readers, so please send in your questions for future editions. In this issue, we reply to the most frequently asked questions amongst newcomers to Belgrade.

... visit the Royal residence? • Ever wondered how the royals live? Now you can see for yourself. His Royal Highness Crown-Prince Aleksandar Karadjordjevic and family welcome visitors to Belgrade's Royal Palace for tours and to view the artistic treasures of the residence. Those wishing to visit need merely contact the Palace Information and Press Department on 011/ 3064 000. Find out more information at www.royalfamily.org

... go racing? • If you are a lover of driving, and have still not tried go-karts, you now have the chance to do so. The Autocomerc Carting Centre enables you every day, from May to October, to come to the gokart track and experience an unforgettable adventure with the deafening noise of race carting. The track is situated next to the Belgrade - Zagreb motorway, and a team of driving-instructors are there to take care of your security during the renting, training or competing in the race itself. For detailed information call: 011/31-92-639 or 063/240-660, or visit the Autocomerc Carting Centre Tuesday-Sunday from 10:00am.

Belgrade Directory many Orthodox monasteries. They present the treasures of Serbian culture, spirituality and Orthodoxy in general. The majority of Serbia's monasteries were erected during the 12th to 15th centuries and some of them, according to their architectural and artistic beauty, are considered national treasures. The Dobrocinstvo Agency has, for many years, promoted and organised pilgrimages to the monasteries and, in addition to organising visits to the nation's monasteries and holy sites, the agency also runs trips to the jewels of spirituality in other Orthodox countries. For more detailed information, visit Dobrocinstvo Agency at Narodnog Fronta 76, Belgrade, call them on 68-64-45; 68-74-16 or visit the web site at www.spc.org.yu/dobrocinstvo

... organise a meeting with journalists? • For the expert organisation of a press conference, or any other form of contact with the public, a complete service can be obtained from the Media Centre at 5 Makedonska Street. Tel. 33-43-225, or you can visit www.mediacentre.org.yu This institution has the necessary techniques and personnel to complete all tasks, including the sound and video recording of the event and the distribution of information to chosen domestic and international media.

... send postal packages and mail? • If you wish to send larger quantities of packages and/or mail of all sorts and categories, the easiest way is to contact the Serbian Post Express Service. This service provides the fastest and safest transfer and delivery of items. Tel. 011/3607607 or visit the website at www.postexpress.co.yu.

... rent English-language videos and DVDs? • Thanks to the Serbian practise of not dubbing foreign feature films or movies, it is possible to hire English-language videos or DVDs from any video rental shop in Belgrade.

... take a trip in a hot-air balloon? • If you want to do something special and magical, or just enjoy

... see the sights of Belgrade from the rivers? • You have certainly strolled through the old city centre of Belgrade, seen the colourful window displays, wondered at the Kalemegdan Fortress and other monuments. But if you want to see Belgrade from an interesting alternative angle, we recommend sightseeing from Belgrade's rivers. From 15th May until 15th October, during an hour and a half boat trip with an expert tourist guide, you can discover all the beauties of the metropolis and enjoy the magnificent views from Belgrade's bridges and riverbanks. The boat sets off from the quay in front of the Yugoslavia Hotel, on Tuesday, Wednesday, Thursday and Friday at 18.00 and on Saturday and Sunday at 16.00 and 18.00. If you need more detailed information before you set off, visit www.tob.co.yu

... visit Serbia's monasteries? • One of the ways to get more acquainted with the history and the cultural inheritance of Serbia, is certainly to visit the country's

CorD | October 2004

a beautiful view for a couple of hours, flying in a balloon is the thing for you. It is not just that you will enjoy breathtaking views of picturesque scenery, you will also have something to remember forever. You can also arrange discounted group trips, as well as hiring the balloon for special occasions, such as weddings. For more information contact Beobalon. Tel: 3149145, or visit the website www.beobalon.net.

... obtain translation and interpreting services? • If you need an expert translation or an interpreter for business purposes, you may contact a selection of institutions providing high quality services, with expert speakers in a number of languages. We recommend: - Serbia Translators Association 9. Kicevska St., tel: 444-29-97 - Foreign Language Institute 35, Gospodar Jovanova St., tel: 262-30-22 - M&M translations. Tel: 063 373 472 Kosovksa 37, app. 17