1. Links
2. Offensive of Lies against RS: Media War against Orao Aeronautics
(RS News)
3. Empire's Playground. Balkans Scandals Are Deadly Experiments
(Nebojsa Malic)
4. Tanjug and Beta dispatches
5. AFP dispatches

=== 1 ===


Saddam and the Yugoslav link (by David Isenberg)




Yugoslav arms dealer violating U.N. arms embargo was target of NATO
missiles in 1999
Thu Oct 24,12:35 PM ET
By MISHA SAVIC, Associated Press Writer - BELGRADE, Yugoslavia

> http://www.nytimes.com/2002/10/24/international/europe/24BOSN.html
THE NEW YORK TIMES, Thursday, October 24, 2002
Yugoslav Aides Are Fired for Sales of Fighter-Jet Parts to Iraq

Balkan Firm Is Supplying Iraq, U.S. Says
Weapons factory has been exporting military equipment, officials
contend. Leaders in
Yugoslavia and Bosnia pledge to investigate.
By Alissa J. Rubin and Zoran Cirjanovic Special to The Times
October 23 2002 - BELGRADE, Yugoslavia

> http://www.washingtonpost.com/wp-dyn/articles/A24696-2002Oct26.html
THE WASHINGTON POST: New Yugoslav-Iraqi Ties Alleged
U.S. Says Defense Firms Developing Cruise Missile for Baghdad
By Nicholas Wood - Special to The Washington Post
Sunday, October 27, 2002; Page A18

> http://www.guardian.co.uk/international/story/0,3604,820369,00.html
Serbs helping Iraq build cruise missile, US says
Washington's claims follow raid on aviation plant in Bosnia
Nicholas Wood in Belgrade - Monday October 28, 2002 - The Guardian

> http://news.bbc.co.uk/2/hi/world/europe/2373781.stm
Tuesday, 29 October, 2002, 21:28 GMT
Bosnia bans all arms exports
The claims centre on spare parts for Mig planes
By Matthew Price, Belgrade

> http://news.bbc.co.uk/2/hi/world/europe/2370505.stm
Tuesday, 29 October, 2002, 02:10 GMT
Bosnian officials quit over Iraq sales
Spare parts for Mig fighters were sold to Iraq

Bosnia Bans Arms Exports, Sacks Officials over Iraq
Last Updated: October 29, 2002 07:03 PM ET
By Daria Sito-Sucic - SARAJEVO, Bosnia (Reuters)

> http://story.news.yahoo.com/news?tmpl=story&u=/ap/20021029/
Bosnian Serb top military officials resign over scandal
involving exports to Iraq - Tue Oct 29, 1:28 PM ET
By IRENA GAJIC, Associated Press Writer
BANJA LUKA, Bosnia-Herzegovina

> http://news.bbc.co.uk/2/hi/world/europe/2381095.stm
Thursday, 31 October, 2002, 18:21 GMT
Bosnia mired in arms scandal
There may be a Balkan-wide network of arms traders
By Alix Kroeger, BBC regional analyst

> http://story.news.yahoo.com/news?tmpl=story&u=/ap/20021031/
Yugoslavia cuts all military, economic ties with countries
under U.N. embargo
Thu Oct 31,12:14 PM ET - By KATARINA KRATOVAC, Associated Press Writer

> http://www.washtimes.com/upi-breaking/20021031-015437-8058r.htm
THE WASHINGTON TIMES - October 31, 2002
Croatis says it is not arms trafficking
ZAGREB, Croatia, Oct. 31 (UPI)

> http://www.nytimes.com/2002/10/31/international/31BELG.html
THE NEW YORK TIMES, Thursday, October 31, 2002
Belgrade Accused of Involvement in Arms Sales to Baghdad

> http://www.guardian.co.uk/international/story/0,3604,822827,00.htmlA
Ashdown says arms row may hit Bosnia
Ian Black in Brussels
Thursday October 31, 2002 - The Guardian (London)

> http://www.boston.com/dailyglobe2/304/nation/
US reportedly ties Libya missiles to Serbia
By Reuters, 10/31/2002

> http://www.washingtonpost.com/wp-dyn/articles/A49272-2002Oct31.html
Yugoslavia's Arms Ties to Iraq Draw U.S. Scrutiny
By Daniel Williams and Nicholas Wood
Washington Post Foreign Service
Friday, November 1, 2002; Page A26

> http://www.timesonline.co.uk/printFriendly/0,,1-4064-466876,00.
THE TIMES (London) - November 02, 2002
Belgrade told to stop arms sales to Saddam
By Richard Beeston, Diplomatic Editor, and Zoran
Kusovac in Belgrade

Straw to press Yugoslavia over Iraq arms
Last Updated: November 04, 2002 12:58 PM ET
LONDON (Reuters)

> http://www.guardian.co.uk/international/story/0,3604,830067,00.html
Straw to tackle Belgrade on arms to Africa
Ewen MacAskill, and Nicholas Wood in Belgrade
Tuesday November 5, 2002 - The Guardian (London)

=== 2 ===




By Gostimir T. Popovic

Since the end of September 2002 and the beginning of the media war
against "Orao" Aeronautics Institute, a manufacturing and maintenance
facility in Republika Srpska, the media has provided us with daily
information regarding the supposed violation of a Security Council
resolution on supplying Iraq with arms - without presenting the public
with a single shred of authentic evidence.

The unfolding of this as yet unprecedented campaign and the production
of lies demonstrates that the key actors involved are people for whom
truth, law and justice are completely foreign categories while the
so-called "evidence" provided thus far is comprised of blatant
falsifications which even a layman can debunk (if he so desires).

First, officials of the BH Ministry of Foreign Affairs released
information that "someone from Republika Srpska" was exporting weapons
and military equipment to Iraq. They were immediately joined by a
chorus of officials from the U.S. Embassy in Sarajevo who confirmed
this, indirectly revealing that they were the
source of the original information.

Second, members of the multinational forces, completely overstepping
their mandate and standard procedures, illegally broke into "Orao"
Aeronautics Institute and removed whatever they saw fit - without
receipts, due process or any legal justification whatsoever.

Third, alleged evidence, that is, copies of supposed contracts began
to appear in much of the media. Representatives of stabilization
forces then announced the unveiling of new documents in the near
future, as if they had removed at least five tons of incriminating
evidence from "Orao".

Fourth, yet unnamed RS government officials began replacing everyone
holding any position from director to office clerk in both the RS
Government and RS Army General Staff.

Fifth, intensive psychological preparation of the RS population is
being carried out to get it to accept that "there must be some truth
to this" while some politicians are beginning their customary
flirtation with their U.S. mentors, positing their demands for
initiating a concrete investigation without knowing why or against

Brief commentary on these events:

The initiation of the campaign against "Orao" lies in Sarajevo but the
threads are being manipulated from a much greater distance. The
original information was only the fiery prologue to see how the RS
public will react. Since no political or legal reaction was
forthcoming, the creators of the offensive will go further.

By illegally breaking into "Orao" the so-called stabilization forces
have reminded us that they remain an uncouth and unbridled force; and
they have also informed us that they are quite skillful in the
collection of data which no one controls and in its subsequent misuse.
Details regarding the confiscation of remote
access computers, diskettes and notebooks, intentionally leaked,
served only to further fan doubt and prepare for the presentation of
the falsified copies.

The copies of the alleged documents which are being published are
blatant falsifications; however, the RS Government has not reacted at
all to this.

The staff changes which have been carried out are also illegal and
unjustified - yet another response by the RS Government to its own

Confusion is already present among the residents of RS regarding who
to believe; although the director of "Orao" has clearly and
unambiguously stated the facts, no one is listening to him.

On top of everything else, who should appear but the High
Representative who, in keeping with old habits, longs to punish
someone or something; and it goes almost without saying that the
targets are the Serb people and Serb institutions.

In this difficult situation, when much time has already been lost, it
is extremely difficult to draw conclusions regarding necessary
measures; nevertheless, truth will still stand a chance if RS
officials undertake at least some of these steps:

1. "Orao" Aeronautics Institute should IMMEDIATELY initiate legal
proceedings in the appropriate courts against the BH Ministry of
Foreign Affairs, the U.S. Embassy in Sarajevo and other officials who
are damaging its professional reputation by false statements;

2. The Republika Srpska Government not only should but MUST stand
behind its company and its workers, who are a group of the best
experts in their field and in the region and of incalculable value to
Republika Srpska.

3. Working together, the RS Government and "Orao" need to create an
intensive media "anti-campaign" to inform representatives of the
press; after all, they hold the aces in their hands - the truth and
the documents to support it.

If the RS Government and other high officials of Republika Srpska do
not engage all available resources to defend themselves from this
unprecedented campaign of lies, it is not difficult to imagine the
ramifications and what is yet to come upon our society as a whole.

=== 3 ===


ANTIWAR, Thursday, October 31, 2002

Balkan Express
by Nebojsa Malic

Empire's Playground
Balkans Scandals Are Deadly Experiments

The Serbs are arming Saddam Hussein's drive for world domination.


If it sounds like a plot of a pathetic spy caper, that's because it
But even Hollywood flacks, who habitually insult the intelligence of
American moviegoers, would never dare stoop this low. It just wouldn't
sell. Unsurprisingly, this particular plot was written in Washington,
where no one cares a whit about the audience. After all, they have no
choice but to listen and obey.

Imperial potentates greatly respect the power of human gullibility,
but they also know its limitations. Once in the right frame of mind,
people will believe the most outrageous things - but only up to a
point. Rabid warmongering propaganda may have succeeded in confusing
Americans to the point where most of their opposition to invading Iraq
- or conquering the world, for that matter - is technical in nature,
but it still exists. Lo and behold, to carry them over that threshold
of disbelief comes a scandal: "Iraq-Serbia."

Bombs And Missiles Imaginary

Having hit a snag in their efforts to resurrect Saddam Hussein's
nefarious reputation they'd crafted in the early 1990s, Imperial City
producers decided to bring in a 'supporting villain' that might still
be fresh in people's minds.

"US Says Two Serb Firms Are Helping Iraqis," declares the Washington
Post, adding four days later, "New Yugoslav-Iraqi Ties Alleged: U.S.
Says Defense Firms Developing Cruise Missile for Baghdad." The
Guardian, always eager to score a few Serb scalps, chimed in: "Serbs
Helping Iraq Build Cruise Missile, US Says," announced an October 28

The best lies always contain a kernel of truth. It is entirely
plausible and probably true that both the Bosnian Serbs and Belgrade
had done business with Iraq at the time when they were both under a
US-sponsored UN blockade, and maybe even after that. The old
Yugoslavia had traded with Iraq a lot. So did Britain, France, China,
Russia, and not the least of all, the US. But spare parts for aircraft
engines don't make a good plot point, especially since the Iraqi air
force hasn't flown in years.

Enter a ship full of powder, originating in Montenegro and impounded
by Croatian authorities. The mysterious powder, US officials claim, is
fuel for cruise missiles the Wicked Serbs have been developing for
Evil Saddam!

Of course, there is a theoretical possibility that the charge might be
true. But it makes no sense. If the Serbs had the technology to build
cruise missiles, wouldn't they have used it by now? Some such missiles
could have definitely come in handy during the NATO attack in 1999,
for instance. Just as, if that uranium fuel seized from Vinca Labs a
few months back really had been bomb-worthy, Serbia could have joined
the nuclear club years ago - and NATO would have found someone else to
occupy and abuse.

Curiously, the New York Times - usually a rabid Serb-baiter - took a
decidedly low-key approach to the matter. "Yugoslav Aides Are Fired
for Sale of Fighter-Jet Parts to Iraq," avers an October 24 article,
noting that the case "appears to focus on the violation of the United
Nations arms embargo rather than the military significance of any
Maybe those were hypothetical missiles Saddam "might" use one day??

Uncontrollable Fallout

More instructive is the way the charges have been met in Bosnia and
Serbia. The government in Belgrade, always overeager to please its
masters, has sacked several high-ranking officials in charge of the
defense industry, and promised "full cooperation" - whatever that
means. Tuesday's Belgrade daily Glas Javnosti reported an optimistic
prediction by one Prvoslav Davinic, Serbian coordinator for the
Balkans Stability Pact, that the scandal would accelerate Serbia's
entry into NATO's Partnership for Peace program, because
a crackdown on arms dealers would demonstrate its commitment to NATO.

The Pact was established after the Kosovo War, to bring all the
Balkans vassals into Empire's fold. Obviously, anyone associated with
it would lead in the worship of Imperial overlords - but Davinic's
attitude is reflected by most Serbian government officials. They know
which side their bread is buttered on, and it's not the side of the
Serbian people?

In Bosnia, where the entire sordid affair started, Muslim politicians
are using the affair to again call for abolition of the Serb Republic.
A commentator for Sarajevo daily Oslobodjenje minced no words in
calling the Serb Republic "a paradigm (sic) of aggression, genocide,
war profiteering and plunder."

Even though Viceroy Ashdown shares their desire for a unified Bosnian
State, he apparently decided to curb their enthusiasm, by reportedly
suggesting that some Muslim and Croat factories have engaged in
not-so-legal arms trade as well.

The intensity of the fallout comes as a surprise to the Imperials
themselves, then. They forgot that, in the Balkans, nothing is simple.
Even the tiniest attempts at manipulation create unexpected

Our Arms Traders, And Theirs

Take, for example, the infamous "Washington sniper," who killed ten
people in the Imperial City just this month. On October 20, days
before the arrest of a Gulf veteran suspected of the spree, Stacy
Sullivan penned a paean to gun control for the New York Times,
illustrating the ease of purchasing sniper rifles in the US by
describing in great detail - and sympathetically - how Albanian
expatriates armed the terrorist KLA in Kosovo and Macedonia. This is
why NATO couldn't stop the smugglers, just as it had said back in
2001. It couldn't have deployed troops in New Jersey.

Isn't it ironic that the Empire is now in furor over alleged Serb arms
trade with Iraq, though its own citizens were arming terrorists in the
But of course, the KLA were our terrorists?

The Future Is Now

This entire cheap melodrama about alleged arms smuggling diverts
attention from other experiments in the Balkans Laboratory. For
instance, expect new Imperial conquests to be treated with a heavy
dose of democracy- a religious practice brimming with mysticism but
utterly devoid of meaning - and elections, the main ritual of this
strange religion. Bosnia has had seven, Kosovo three; one for every
year they've been occupied.

And even if the ritual does not unfold exactly as planned, the Empire
always makes sure it fits the predetermined outcome, even if some of
the results need to be adjusted, as it is currently happening in
Bosnia. Praising the elections, the outgoing head of the UN mission,
Jacques Klein, shared this cheerful prediction with his bosses the
Security Council last week:

"the nationalists' strong showing created 'a more challenging
political environment that will require strong intervention and
continued commitment' on the international community's part."
Strong intervention and continued commitment. Music to Empire's ears.

The Fate of Heretics

So important is the ballot religion, that anyone refusing to
participate is deemed a heretic, persecuted and punished. Such is the
fate of Kosovo Serbs, who boycotted last weekend's municipal election,
having realized - albeit belatedly - that it would only legitimize
Albanian domination of the NATO-occupied province. Refusing to go
along with their captors is just about the only recourse they still
have, since appeals to NATO's humanity, international law, UN
resolutions, and common sense have all failed. But
don't expect the Empire to understand.

A glimpse of its rage was apparent in a recent Reuters report about a
political murder perpetrated by Albanians. Even though the elections
serve to justify their claims for independence, some Albanians still
honor the gods of violence when the ballot gods fail them. A former
KLA leader was killed by his comrades a day after the vote, presumably
for daring to represent a rival party. Yet somehow it's the Serbs'
fault. Well, isn't everything?

The Serbs who did vote thus supported "hardliners skeptical of
Serb-Albanian coexistence," while the boycott hurt "U.N. efforts to
integrate Serbs into the political scene and overcome ethnic divisions
threatening further violence." These are mere prevarications, of
course. The real bald-faced lies go something like this:

"Ethnically motivated killings have diminished since the United
Nations and NATO took control of the Yugoslav province three years

Yes, that's exactly what the Reuters article said. No wonder it ended
with a despicable comment that US bombing "ended a near century of
Serbian dominance," lifted straight out of the KLA manifesto.

Today The Balkans, Tomorrow The World

Intoxicated by their apparent successes in the Balkans, Empire's mad
scientists - social managers, to be precise - plot on, convinced
somehow that they will succeed where everyone before has failed. Iraq
is just the first step, the "cruise missile" affair just a casus
belli. The Balkans, having served as a laboratory for experiments in
Imperial intervention, will now become a template for the world.

For the unconvinced, there is Viceroy Ashdown's own confession, on the
pages of the New York Times this past Monday:

"History will look back on our engagement in Bosnia and Herzegovina as
the first faltering step toward a doctrine of international community.
Bosnia will be seen as a new model for international intervention -
one designed not to pursue narrow national interests but to prevent
conflict, to promote human rights and to rebuild war-torn societies.
We are already applying the lessons of Bosnia in Kosovo, East Timor
and Afghanistan. Perhaps they will be applied in Iraq as well."

It almost makes this column seem superfluous.

=== 4 ===

Yugoslav government commission to investigate DEFENSE ministry's work

BELGRADE, Oct 25 (Tanjug) - The Yugoslav government has set up a
three-member commission that should investigate whether there were any
irregularities in the Yugoslav Defense Ministry's license for the
of arms and military equipment and the operation of Jugoimport SDPR,
the Belgrade daily Vecernje Novosti reported on Friday.
The commission will be headed by Yugoslav Interior Minister Zoran
Zivkovic and the other members are Yugoslav Defense Minister Velimir
Radojevic and acting Yugoslav Finance Minister Veroljub Dugalic.
"I can't say anything at this moment. An investigation is under way
and as soon as it is completed, the public will be informed about its
At this point, I can only promise that our work will not last long and
that we will try to complete our work as soon as possible. We are well
under way," Zivkovic said.


Belgrade, Oct 24 (Beta) - Yugoslav ambassador and national coordinator
in charge of the army, police and judiciary in the Stability Pact,
Prvoslav Davinic, said on Oct 24 that the Yugoslav authorities had not
been issuing permits for the export of military equipment to Iraq.
Davinic told Radio B92 that according to the documents he had had the
chance to review, "it is certain that Yugoslavia has not willingly or
knowingly issued any permits for the export of arms to the countries
under an embargo."
"The question remains about whether these things have been done
The inquiry launched to investigate it shows that the country is ready
to initiate criminal proceedings against those who have violated such
an embargo," said Davinic.
The director of the Federal Customs Authority, Vladan Begovic, said in
the evening of Oct. 24 that the Jugoimport company had not exported
weapons and military equipment to Iraq in the past two years.

Yugoslav customs authority director says Jugoimport did not export
weapons to Iraq

BELGRADE, Oct 24 (Tanjug) - No weapons or military equipment have been
exported from Yugoslavia to Iraq, as had there been an attempt to do
so, the Federal Customs Authority (SUC) would not have allowed it in
compliance with relevant UN resolutions, SUC Director Vladan Begovic
said Thursday evening.
The Jugoimport SDPR company has been exporting weapons and military
equipment over the past two years, but according to SUC knowledge,
none of the exports were made to Iraq but only to several countries in
neighborhood, Begovic told Serbian TV.

UN coordinator says Jugoimport affair will not affect Yugoslav-UN

BELGRADE, Oct 24 (Tanjug) - The UN Coordinator for Yugoslavia Francis
O'Donnell said Thursday in Belgrade that the Jugoimport affair of arms
sales to Iraq in violation of US sanctions will not affect
relations with the UN.
He welcomed the measures taken by the Yugoslav government, which has
relieved of office the Jugoimport general director and undertaken an
investigation of the company's activities.

USA offers cooperation to Yugoslav authorities

SARAJEVO, Oct 24 (Tanjug) - The United States has offered full support
and cooperation to the Yugoslav authorities in the investigation and
is offering technical and expert aid in the implementation of
appropriate measures and mechanisms for the control of arms transfers,
the US Embassy in Sarajevo said in relation to the affair of military
equipment exports from Republika Srpska and Yugoslavia to Iraq.
The statement recalled that the United States welcomed steps taken by
the Yugoslav government following the revelation that the air force
institute Orao of Bijeljina and the Belgrade company Jugoimport were
implicated in the transfer of military technology and cooperation with
The Embassy statement also said that the authorities of Bosnia and
Herzegovina are expected to take appropriate steps to end immediately
any kind of cooperation with Iraq and to conduct an investigation and
find out who is responsible for the violation of the UN Security
Council resolution on an arms embargo.


BELGRADE, Oct 25 (Tanjug) - The Yugoslav Army (VJ) is not empowered to
trade in weapons or military equipment, and is not involved in any way
in any such trade with Iraq, the VJ General Staff said in a statement
Friday. The VJ reiterates that it is open and ready for full
implementation of civilian control
of the army by relevant state institutions in line with the
Constitution and their law, and this also
applies to this case, the statement says.


BELGRADE, Oct. 27 (Beta) - Yugoslav President Vojislav Kostunica has
said that he will meet with top federal government officials on Oct.28
over the Jugoimport affair.
At a Oct. 25 news conference, Kostunica said that Jugoimport's
business dealings were no matter to be dismissed, and that it could
cost Yugoslavia dearly. He said that the whole matter was an
business undertaking, but that the repair of outdated aircraft was
still of a much more benevolent scope than the alleged sale of weapons
in violation of the Iraq arms embargo and that it could not be
identified with the country's political orientation.
The Yugoslav president said that the affair could be solved by police
investigation, through the formation of a federal commission or
through a debate in federal parliament, with the prior formation of a
investigative committee.
BETA has learned that Yugoslav, Bosnian, RS and U.S. embassy
representatives in Sarajevo and Belgrade met on Oct. 25 on the affair.
One of the participants, who declined to be named, told BETA that
"information was exchanged and further investigation was agreed."
Serbian Premier Zoran Djindjic announced that his cabinet would insist
on bringing those responsible to account. Djindjic said that he had
confidence in the federal government to investigate the case.
Serbian Interior Minister and chairman of the Jugoimport weapon
dealer's executive board Dusan Mihajlovic said that his position did
not involve knowing about the company's business arrangements in
and denied any knowledge of such undertakings.
"According to the law, the executive board is charged with reviewing a
company's business dealings in general, and not contracts in
particular. This is the job of the management and the GM alone. I was
informed of any concrete arrangement, because it was not in my
jurisdiction," Mihajlovic said in an interview with the Oct. 26 issue
of Vecernje Novosti.
Yugoslav Defense Minister Velimir Radojevic said that no permits were
issued for arms or military equipment exports to countries under U.N.
or U.S. weapons embargoes while he was in office. He added that new
legislation was in preparation and that it would change how the field
was regulated.
Radojevic added that "contracts and possible permits in regard to the
affair," would have to date from the time when he and Yugoslav Prime
Minister were not in office.
The Yugoslav army also denied involvement in the affair. A statement
said that the army was not authorized to trade in weapons and military

Statement following meeting on Jugoimport company affair

BELGRADE, Oct 29 (Tanjug) - Top state officials met at the office of
Yugolav President Vojislav Kostunica late Monday to discuss the
Jugoimport-SDPR affair and concluded a state commission should be
formed. The commission will "professionally deal with the issue of
economic cooperation in the area of special-purpose production, having
in mind the mutual obligations which our country is determined to
honor in full, as well as the requirements and position of the
military-economic department in Yugoslavia," said a statement from
Kostunica's office received by Tanjug.
The meeting was devoted to measures taken so far to establish the
facts on business operations of the public company Jugoimport-SDPR,
which, according to available information, violated the UN embargo on
arms sales and military-technical assistance to Iraq. In addition to
the Yugoslav president, the meeting was attended by Yugoslav Prime
Minister Dragisa Pesic, Deputy Premier and Foreign Trade Minister
Miroljub Labus, Foreign Minister Goran Svilanovic, and federal and
republican interior ministers Zoran Zivkovic and Dusan Mihajlovic.

Evidence about Orao, Jugoimport sent to Belgrade, Sarajevo by United

WASHINGTON, Oct 29 (Tanjug) -State Department spokesman Richard
Baucher has confirmed that the US government sent firm evidence to the
governments of Yugoslavia and Bosnia and Herzegovina about the
transactions of the Belgrade Jugoimport and the military plant Orao
from Bjeljina with Baghdad,
in direct violation of the UN resolution banning exports of weapons
and equipment to Iraq.
At a press briefing in the State Department Baucher did not wish to
comment Monday on a Washington Post story in its Sunday edition
according to which Yugoslav experts were helping the Iraqis build a
cruise missile. He just repeated that Washington welcomes the steps
taken by Yugoslavia that include dismissing of those responsible for
the transactions, launching a full investigation, and committing
itself to take appropriate measures for regulating the transfer of
military technology and weapons. Washington,
Baucher said, welcomes the closing down of Jugoimport's office in
Baghdad and offers full support to the Yugoslav authorities in
conducting the investigation and the development of legal and police
measures and
mechanisms for the control of exports of military and other sensitive


BRUSSELS, Oct. 31 (Beta) - NATO spokesman Yves Brodeur said on Oct. 31
that the Alliance expected the
Belgrade authorities "to swiftly and completely clear up the Orao
affair" regarding military equipment
exports to Iraq.
He emphasized that it would not affect the rapprochement between
Yugoslavia and NATO in any way, including Belgrade's desire to enter
the Partnership for Peace.
Brodeur confirmed to BETA that the discovery that the Orao company
from Republika Srpska was exporting
military equipment to Iraq through a military company in Belgrade,
thus violating the UN embargo, has
commanded "attention and concern" in NATO circles.
He said that Orao company from Republika Srpska was delivering
"components for rocket engines."


BELGRADE, Nov 4 (Tanjug) - The Jugoimport scandal is over, Yugoslav
Interior Minister Zoran Zivkovic has said and added that a Yugoslav
government commission had determined that there had been cases of
violation of a UN Security Council resolution banning the export of
arms and military equipment to Iraq, primarily because of regulations
that allowed different interpretations.
Zivkovic told the Monday issue of the Belgrade daily Vecernje Novosti
that all measures had been taken aimed at preventing the repetition
of such as case not only with Iraq, but also with all other countries
under sanctions. He said that competent organs, primarily the Serbian
police, would continue doing their job and that those for whom there
is proof they had been violating the law, would bear legal
consequences. Asked about the possibility of production of cruising
missiles in the country, Zivkovic said that this was high technology
and that he was certain that they could not have been made in the
country. We do not have cruising missiles, Zivkovic said.


BELGRADE,Nov5 (Beta)-Yugoslav Foreign Minister Goran Svilanovic said
on Nov. 5 that Yugoslavia had stopped military hardware exports to
Iraq and emphasized that the authorities were keenly monitoring and
controlling the entire sector.
"A state commission has been established to investigate not only
Jugoimport, but the entire military trade sector, which includes a
number of other private companies. We want to find out whether any
U.N. arms
embargoes were violated. The state commission will take charge of the
process so that the country's military industry can get back to
business and we do not want to breach our international obligations at
any moment," Svilanovic said.

=== 5 ===

US demands more action against Bosnian firm that dealt with Iraq

WASHINGTON, Oct 28 (AFP) - The United States on Monday demanded Bosnia
take further action against a firm it claims sold military equipment
and sensitive technology to Iraq while welcoming Belgrade's steps
against a Yugoslav company accused of assisting in the transfers.
State Department spokesman Richard Boucher said moves by the Bosnian
Serb entity Republika Srpska against the Orao company -- firing the
general manager and removing a military officer and a senior
government official affiliated with the firm -- were insufficient.
"This is a good start, but more needs to be done," he told reporters,
noting that the company had close ties with the government and
"Orao's illegal activities would have required extensive coordination
with the ministry of defense and possibly other parts of the Bosnian
government," Boucher said.
"The United States expects the relevant authorities in
Bosnia-Herzegovina, and particularly the Republika Srpska, to conduct
a thorough investigation and to hold accountable those responsible
regardless of the seniority or position."
Orao is one of two firms in the former Yugoslavia that Washington has
publicly accused of transferring military parts and technology --
specifically airplane parts and mechanics -- to Iraq in violation of
UN sanctions.
Officials in Belgrade have punished the other company, Jugoimport,
taking action against company officials as well as military officers
as well as launching an investigation into the defense ministry and
moving to
tighten its export control regime.
Boucher called these moves, in addition to the closure of the
Jugoimport office in Baghdad, "significant and serious actions."
"We welcome these steps," he said, repeating Washington's offer to
assist Yugoslav authorities in their investigation and help revamp
the export rules.
The Yugoslav government has admitted that Jugoimport had acted as a
middleman in the supply of aviation parts and equipment from Orao.
Boucher declined to comment on reports that other companies in the
former Yugoslavia had also been supplying Iraq and Libya with missile
technology, a far more serious contravention of the UN sanctions that
spare aircraft parts.
However, one senior State Department official said the firms were
selling "far more than just aviation parts and training" to Iraq.
Earlier Monday, the Yugoslav newspaper Blic reported that Washington
had told Belgrade five months ago that a number of companies were
helping Iraq and Libya develop their missile programs.
In addition to Jugoimport, the daily also listed the Infinity, Bruner
Ede-pro firms as having ties with Baghdad and Tripoli and said that
experts from those firms had traveled to Iraq and Libya over the past
two years to assist in the development of cruise missiles.
That report followed one in Sunday's Washington Post that said the
United States had presented a document to Yugoslav government
officials outlining work done by firms in the country to develop a
turbo-jet engine for Iraq's cruise missile program.

AFP Bosnia bans military exports amid arms-to-Iraq scandal

SARAJEVO, Oct 29 (AFP) - Bosnia has banned all military exports
following the recent discovery that a Bosnian Serb defense firm made
secret military sales to Iraq, officials said Tuesday.
"The ban has been imposed for an indefinite period of time, depending
on the speed with which control procedures will be set up at the
state level," said Azra Hadziahmetovic, Bosnia's minister for foreign
trade and economic relations.
The move was the latest measure by the country's authorities to
prevent possible UN and US sanctions over the scandal.
The government of the Serb-run side has sacked five officials over
the affair, including its defense minister and army chief-of-staff,
following sharp warnings from the West.
The NATO-led force in Bosnia discovered earlier this month that a
defense company in the country's Serb-run part had been secretly
selling military material to Baghdad in violation of an UN arms
embargo on Iraq.
Production and sale of military materials has so far come under the
authority of Bosnia's two entities, the Serb-run Republika Srpska (RS)
and the Musleim-Croat federation.
After the secret sales by the Bosnian Serb firm Orao were discovered,
international officials demanded that control procedures to be set up
at the state level.
The 1995 peace deal that ended Bosnia's 1992-95 war split the country
into the two entities, which are linked by weak central institutions,
have separate governments, parliaments, police and armed forces.
Hadziahmetovic, whose ministry will take over control for the
weapons' trade, said it was uncertain how quickly the new procedures
could be set up as they depended on various state-level institutions.
He spoke after meeting with international representatives in Bosnia,
including the chief aide to Bosnia's top international envoy Paddy
"We totally support the current ban on exports of weapons and other
facilities that would eventually be part of the (state-level) export
regime," said aide Donald Hays.
He said Ashdown would travel to Brussels Thursday to brief NATO and
the European Union on situation in Bosnia, and specifically on the
Orao affair.
Robert Beecroft, head of the mission here of the pan-European security
and cooperation body (OSCE), said experts would be assigned to work
with Bosnian authorities to set up the new control procedures.

AFP More sackings expected over Bosnia's arms-to-Iraq scandal

BANJA LUKA, Bosnia-Hercegovina, Oct 30 (AFP) - An ongoing probe into
a Bosnian Serb firm which sold arms to Iraq in violation of the
United Nations arms embargo will result in more sackings, a senior
international official in Bosnia said on Wednesday.
"I made it clear... that the investigation that is being undertaken
will result in further dismissals," said Donald Hays, chief aide to
Bosnia's top international envoy, Paddy Ashdown.
"If there is political involvement, regardless of where that
political involvement stems from, there will be repercussions on
those involved, however high," Hays said adding that the scandal
"probably involves more than just one company."
He said there was a need for a comprehensive review, not only in the
Serb-run entity of Republika Srpska (RS) but also in the Muslim-Croat
Post-war Bosnia is composed of two entities -- the Serb-run RS and
the Muslim-Croat Federation -- which have separate governments,
parliaments, police and armed forces and are linked by weak central
The government of the Serb-run side has sacked five officials over
the affair, including its defense minister and army chief-of-staff,
following sharp warnings from the West.
The scandal emerged earlier this month after the NATO-led
peacekeeping force in Bosnia discovered that defence firm Orao had
been refurbishing military aircrafts for Iraq via a state-owned
Yugoslav company,
Bosnian Serb outgoing Prime Minister Mladen Ivanic agreed after
meeting Hays in Banja Luka that it was in the interest of the RS "to
have the whole truth" on the scandal discovered.
The investigation is to be wrapped up by November 27.
The US ambassador to Bosnia, Clifford Bond, said Washington was not
convinced the dismissal of the officials satisfied US demands for the
culprits to be punished.
"I think it is too early to say whether the dismissals so far are
sufficient," Bond told AFP.
"The investigation has to be completed before we determine who should
be accountable and on what level."
In a speech to EU and NATO leaders in Brussels, Ashdown warned the
Bosnian Serb authorities would have to choose "whether to take the
road to Brussels or to Baghdad".
NATO forces raided Orao following US allegations in September that
the company had breached the UN arms embargo on Iraq.
In an additional effort to avert possible UN and US sanctions over
the scandal, Bosnia's central authorities on Tuesday banned all arms
exports for an indefinite period of time.
The Bosnian Serb tax department said Wednesday it had also launched
an investigation of Orao, an aviation company operating under the
authority of Bosnian Serb military headquarters.

AFP Britain urges Yugoslavia to halt arms sales to Iraq, Liberia

LONDON, Oct 30 (AFP) - British Foreign Secretary Jack Straw called
Wednesday on Yugoslavia to halt the sale of arms to Iraq and Liberia,
in breach of UN sanctions, after a meeting with his Yugoslav
counterpart Goran Svilanovic.
Straw welcomed steps Belgrade had taken to deal with the issue but
expressed "serious concern at recent reports concerning the sale of
arms from the Federal Republic of Yugoslavia (FRY) to Iraq."
"I also raised other violations of UN sanctions including reports of
FRY involvement in arms sales to Liberia in contravention of the UN
sanctions regime," Straw said in a press release.
"I urged Dr. Svilanovic to ensure a thorough investigation into these
arms sales, leading to prosecutions as necessary," the statement
The British foreign secretary said he was also deeply concerned by
the failure of the FRY to fully co-operate with the International
Criminal Tribunal in The Hague (ICTY).
"I urge the FRY authorities to take immediate steps to settle this
matter once and for all, with full access to documents, witnesses,
including officials and military personnel, and the transfer of all
remaining ICTY indictees on FRY territory to The Hague," Straw said.
"Failure to do so," said the foreign secretary, "would undermine the
excellent progress made by Yugoslav authorities since October 2000."
The Iraqi arms scandal broke last week when Washington went public
with allegations that a state-run trading company, Jugoimport, had
acted as a middleman in the supply of spare parts for Iraqi fighter
The State Department said a state-owned Bosnian firm, Orao, was
manufacturing the parts and selling them through Jugoimport to Saddam
Hussein's regime in breach of UN sanctions.
Belgrade reacted swiftly by sacking the chief of Jugoimport and a
deputy defence minister.
Jugoimport's office in Baghdad was closed and a special committee was
established to investigate both the company and the defence ministry.
According to the British foreign office press release, a UN report
dated October 7 stated that six cargo aircraft in June, July and
August 2002 delivered 200 tons of Yugoslav weapons to Liberia.

AFP Yugoslav minister confirms one arms delivery to Liberia

BELGRADE, Nov 1 (AFP) - Yugoslavia's interior minister confirmed
Friday that at least one illegal delivery of weapons had been made to
Liberia in August in breach of United Nations sanctions.
Minister Zoran Zivkovic told AFP he was aware that a local private
company had sent one plane-load of weapons to Liberia, but he could
not confirm UN allegations that six shipments of weapons had been made
between June and August.
"I am aware of only one ... That aircraft had papers for Nigeria as
well as a certificate from the Nigerian defense ministry or
government that the weapons would go there," he said.
"Later on it was found out that it had gone to Liberia."
Zivkovic said an investigation was underway into the company, Temex,
amid damaging revelations that Yugoslav state-run and private firms
also have been selling military equipment to Iraq and Libya.
"An investigation has been launched into Temex, a dealer company that
exported weapons on the aircraft," he said.
A deputy Yugoslav defence minister and a director of the state-run
Jugoimport company were sacked last week after Washington went public
with allegations the company was helping to supply parts for Iraqi
fighter jets.
The government also closed Jugoimport's office in Baghdad, suspended
all military sales to countries under UN sanctions and launched a
wider probe of military-related businesses as well as the defence
"Inspections have entered all companies that have done weapons sales,
those are 32 or 33 private companies and one state-owned --
Jugoimport," Zivkovic said.