(2/2 - fine)

THE COSTS OF THE AIR CAMPAIGN

Accusing the Serbian people and the former head of State of the crimes
committed by the
aggressor is intended to instill a sense of fear
and collective guilt on an entire Nation.

But there is something else which has so far not been mentioned:
Washington's design is
to hold President Milosevic responsible for the
War not as an individual but as the country's head of State, with a
view to eventually
collecting war reparations from Yugoslavia.

In other words, if the former head of State were to be indicted by the
Hague tribunal,
the country could be held "legally responsible" not only
for the costs of NATO's "humanitarian bombs", but for all the military
and
"peacekeeping" expenses incurred since 1992.

In fact, an army of accountants and economists has already evaluated --
on NATO's
behest-- the costs of the air campaign and the various
"peacekeeping operations". In this regard, the U.S. share of the costs
of the bombing,
"peacekeeping" and "refugee assistance" solely in
fiscal year 1999 was estimated at $5.05 billion. The amounts allocated
by the Clinton
Administration to pay for the war and the refugees in
FY 1999 were of the order of $6.6 billion. So-called "emergency
funding" appropriated by
Congress for operations in Kosovo and other
defense spending in FY 1999 totaled $12 billion. Moreover, the
Department of Defense
estimates the costs of deployment of American
occupation forces and civilian personnel stationed in Bosnia and Kosovo
since 1992 to be
of the order of $21.2 billion.28

In other words, indicting President Milosevic on trumped up charges
raises a fundamental
question of legitimacy. It sanctions the bombings
as a humanitarian operation. It not only absolves the real war
criminals, it also opens
up the avenue for the indictment of Yugoslavia as a
nation.

The former head of State is indicted; the people are collectively
indicted. What this
means is that NATO could at some future date oblige
Yugoslavia to pay for the bombs used to destroy the country and kill
its people.

There is nothing fundamentally new in this process. Under the British
Empire, it was
common practice not only to install puppet regimes but
also to bill the costs of gunboat operations to countries, which
refused to sign a "free
trade" agreement with Her Majesty's government. In
1850, Britain threatened to send in its "gun boats" ---equivalent to
today's
humanitarian air raids-- following the refusal of the Kingdom of
Siam (Thailand) to sign a free trade treaty with Britain (equivalent to
today's "letter
of intent" to the IMF). While the language and institutions
of colonial diplomacy have changed, the similarity with contemporary
practices is
striking. In the words of British envoy Sir James Brooke
(equivalent to today's Richard Holbrooke):

"The Siamese Government is hostile-- its tone is arrogant-- its
presumption unbounded...
Should these just [British] demands firmly urged be
refused, a force should be present, immediately to enforce them by a
rapid destruction
of the defenses of the river� Siam may be taught the
lesson which it has long been tempted, � a better disposed king placed
on the throne,
and an influence acquired in the country which will
make it of immense commercial importance to England... [Note the
similarity in relation
to Yugoslavia] Above all, it would be well to prepare
for the change and to place our own kind on the throne � This prince
[Mongkut] we ought
to place on the throne and through him, we might,
beyond doubt, gain all we desire�. And the expense incurred [of the
military operation]
would readily be available from the royal treasury of
Siam."29

Replace the head of State, impose "free" trade, bill the country for
the military
operation!

PRECEDENTS OF WAR REPARATIONS: VIETNAM AND NICARAGUA

In fact in the case of Vietnam --which won the war against US
aggression-- Hanoi was
nonetheless obliged to pay war reparations to the
United States, as a condition for the lifting of economic sanctions in
1994.

Although the historical circumstances were quite different to those of
Yugoslavia, the
pattern of IMF intervention in Vietnam was in many
regards similar. The decision to lift the sanctions on Vietnam was also
taken in the
context of a donors' conference. "Some two billion dollars
of loans and "aid" money had been pledged in support of Vietnam's IMF
sponsored reforms,
yet immediately after the Conference another
separate meeting was held, this time "behind closed doors" in which
Hanoi was obliged to
fully reimburse � the debts incurred by the US
installed Saigon military government."30 By fully recognising the
legitimacy of these
debts, Hanoi had in effect accepted to repay loans that
had been utilised to support the US War effort.

Moreover, Hanoi's acceptance had also totally absolved Washington from
paying war
reparations to Vietnam totalling $4.2 billion as agreed
at the Paris Peace Conference in 1973.31

NICARAGUA: "FREEDOM FIGHTERS" AND IMF ECONOMIC MEDICINE

Similarly the 12 billion dollars "reparations" that the US had been
ordered to pay to
Nicaragua by the Hague International Court of Justice
(ICJ) were never paid. In 1990, following the installation of a pro-
US "democratic"
government, these reparations --ordered by the ICJ-- were
erased in exchange for "normalization" and the lifting of sanctions. In
return,
Washington approved a token $60 million in "emergency aid"
which was of course conditional upon the payment of all debts and the
adoption of the
most deadly IMF economic shock therapy:

"The United States � provides severance pay to government workers fired
under the
U.S.-mandated [IMF structural adjustment] program to
reduce the size of Nicaragua's government. Among the results:
Nicaragua's social
security budget has been slashed from $ 18 million to $
4 million while unemployment has risen to about 45 percent. Health
spending has dropped
from $86 per person [per annum] five years ago
to $ 18 [in 1991 in the year following the elections]. Pensions for
disabled war
veterans have been frozen at $ 6.50 per month while food
prices have risen [1991] to nearly U.S. levels� In the words of a State
Department
official 'The US is committed to rebuilding Nicaragua, but
there's only a limited amount you can do with development aid.'"32


Yet the US did not hesitate in spending billions of dollars to finance
nine years of
economic embargo and war in which Washington created
and funded a paramilitary army (the Contras) to fight the Sandinista
government.
Heralded by the Reagan administration and touted by the
media as "freedom fighters", the Contras insurgency was financed by
drug money and
covert support from the CIA. And in fact the same
pattern of covert support using drug money was applied to financing the
Kosovo
Liberation Army (KLA) with a view to destabilizing
Yugoslavia. William Walker, head of the OSCE mission to Kosovo in the
months preceding
the 1999 war, was responsible together with
Coronal Oliver North in channeling covert support to the Contras which
ultimately led to
the downfall of the Sandinista government and its
defeat in "democratic" elections in 1990.

THE ROLE OF THE UNITED NATIONS COMPENSATION COMMISSION (UNCC)

Another case is that of Iraq which --in the wake of the Gulf War-- was
obliged to pay
extensive war reparations. The United Nations
Compensation Commission (UNCC) was set up to process "claims" against
Iraq. Thirty
percent of Iraqi oil revenues in the "oil for food
program" are impounded by the UNCC to pay war reparations to
governments, banks and
corporations. The UNCC "has awarded more
than $32 billion [in claims], and more than $9.5 billion has been paid
out under the
food-for-oil regime."33

These precedents are important in understanding the war in Yugoslavia.
Although no
official statement has been made by NATO, the
framework and bureaucracy of the UNCC could at some future date be
extended to
collecting war reparations from Yugoslavia. The UNCC's
claim procedures are based on a 1991 UN Security Council resolution
which establishes
Iraq's liability for the Gulf war under international
law.

In the case of Yugoslavia, President Milosevic is accused by the Hague
tribunal for
"crimes against humanity and violations of the laws or
customs of war", 34. Following the Iraqi precedent, a decision of the
Hague Tribunal
concerning President Milosevic could constitute the
basis for the formulation of a similar UN Security Council Resolution
establishing the
liability of the government and people of Yugoslavia for
the "direct loss, damage� to foreign governments, nationals and
corporations", including
"the costs of the air campaign." 35

REWRITING HISTORY

Recent events have shown how realties can be turned upside down by the
aggressor and its
propaganda machine. NATO's intent is to
blatantly distort the course of events and manipulate the writing of
modern history. It
is therefore essential that the Yugoslav people remain
united in their resolve. It should also be understood that
the "demonisation" of the
Serbian people and of President Slobodan Milosevic
alongside the triggering of ethnic conflicts is intended to impose
the "free market" and
enforce the New World Order throughout the
Balkans.

Internationally, the various movements against IMF-World Bank-WTO
reforms must
understand that war and globalization are
inter-connected processes. Applied around the World, the only promise
of the "free
market" is a World of landless farmers, shuttered
factories, jobless workers and gutted social programs with "bitter
economic medicine"
under IMF-WB-WTO custody constituting the only
prescription. Moreover, militarization increasingly constitutes the
means for enforcing
these deadly macro-economic reforms.

Yugoslavia's struggle to preserve its national sovereignty is --at this
particular
juncture in its history-- a part of the broader movement against
the New World Order and the imposition throughout the World of a
uniform neo-liberal
policy agenda under IMF-World Bank-WTO
supervision. Behind these organizations --which routinely interface
with NATO-- are the
powers of the US and European financial
establishments and the Western military-industrial complex.


ENDNOTES

1. Agence France Presse , 19 November 1997.

2 Quest Economics Database. West LB Emerging Trends, 8 March 2001,
Agence France Press,
16 March 2001.

3. Statement of Secretary of State Colin Powell quoted in International
Herald Tribune,
Paris, April 4, 2001

4. International Herald Tribune, op. cit.

5. B 92 News, Belgrade, 3 May 2001.

6. US House of Representatives, Bill HR 1064, section 302, September
2000, at
http://www.house.gov/house/Legproc.html., click 106th
Congress and enter bill number.

7. UPI, 2 April 2001

8. New York Times, 27 February 2001.

9. See Michel Chossudovsky, Washington Finances Ethnic Warfare in the
Balkans", Emperors
Clothes, April 2001.

10. See IMF, IMF Approves Membership of Federal Republic of Yugoslavia
and US$151
Million in Emergency Post-Conflict Assistance,
http://www.imf.org/external/np/sec/pr/2000/pr0075.htm.

11. See IMF, IMF Approves Membership of Federal Republic of Yugoslavia
and US$151
Million in Emergency Post-Conflict Assistance,
http://www.imf.org/external/np/sec/pr/2000/pr0075.htm.

12. Government of Serbia, Serbia Info, Belgrade 2 May 2001,
http://www.serbia-info.com/news/2001-05/03/23335.html.

13 For further details see Michel Chossudovsky, Dismantling Former
Yugoslavia,
Recolonising Bosnia, Covert Action Quarterly, Sprint
1996, available at http://www.ess.uwe.ac.uk/Kosovo/Kosovo-
controversies4.html or
http://www.emperors-clothes.com/articles/chuss/dismantl.htm.

14. See Group of 17 "Program of Radical Economic Reforms", Belgrade
1999 at
http://www.g17.org.yu/english/programm/program.htm.

15. New Serbia Forum, "Privatization", Budapest, 13-15th March 2000,
http://www.newserbiaforum.org/Reports/privatisation.htm.

16. The full text of the IMF program is available at
http://www.imf.org/external/pubs/cat/longres.cfm?sk&sk875.0 The
Government's
commitment under the IMF program is outlined in
Federal Republic of Yugoslavia, "Economic Reform Program for 2001"
Belgrade, December
9th, 2000,
http://www.seerecon.org/FRYugoslavia/erp2001.htm, see also "Synthetic
View" of main
economic policy measures at
http://www.seerecon.org/FRYugoslavia/epmeasures.pdf.

17. See Michel Chossudovsky, Kostunica Coalition Drives Up Prices and
Blames...Milosevic, October 2000,
http://emperors-clothes.com/articles/chuss/triples.htm.

18. See B 92 News, 3 May 2001 at
http://www.b92.net/archive/e/index.phtml.

19. IM Program, op cit. On Bulgaria see The Wind in the Balkans, The
Economist, London,
February 8, 1997, p.12 and Jonathan C. Randal,
Reform Coalition Wins, Bulgarian Parliament, The Washington Post, April
20 1997, p.
A21.

20. See the Statement of IMF Deputy Managing Director Stanley Fischer,
December 2000 at
http://www.imf.org/external/np/sec/pr/2000/pr0075.htm.

21. See Michel Chossudovsky, "Brazil's IMF Sponsored Financial
Disaster", Third World
Network, 1998 at
http://www.twnside.org.sg/title/latin-cn.htm.

22. For details see Michel Chossudovsky, Financial Warfare triggers
Global Financial
Crisis, Third World Network at
http://www.twnside.org.sg/title/trig-cn.htm.

23. See Michel Chossudovsky, The Globalization of Poverty, Zed Books,
London 1997,
chapter 12.

24. The IMF quotes the G-17 study, "Economic Consequences of NATO
Bombardment", Belgrade
2000 at
http://www.g17.org.yu/english/index.htm.

25. See Michel Chossudovsky, NATO Willfully Triggered an Environmental
Catastrophe in
Yugoslavia, June 2000, at is
http://emperors-clothes.com/articles/chuss/willful.htm.

26. See G-17, "Economic Consequences of NATO Bombardment", Belgrade
2000 at
http://www.g17.org.yu/english/index.htm.

27. USA Today, 10 October 2000.

28. GAO : Briefing report to the Chairman, Committee on Armed Services,
House of
Representatives, RPTno: gao/nsiad-00-125br,
Washington, 24 April 2000.

29. Quoted in M. L. Manich Jumsai, King Mongkut and Sir John Bowring,
Chalermit,
Bangkok, 1970, p. 21.

30. See Michel Chossudovsky, The Globalisation of Poverty, op cit.,
Chapter 8.

31. A. J. Langguth, The Forgotten Debt to Vietnam, New York Times, 18
November 2000, see
also Barbara Crossette, Hanoi said to vow to
give MIA Data, New York Times, 24 October, 1992.

32. The Houston Chronicle, 8 December 1991. To consult the
International Court of
Justice 1986 Judgement on "Nicaragua v. United States
of America" see: "Military and Paramilitary Activities in and against
Nicaragua
(Nicaragua v. United States of America) (1984-1991)" at
http://www.icj-cij.org/icjwww/Icases/iNus/inusframe.htm, summary at
http://www.icj-
cij.org/icjwww/idecisions/isummaries/inussummary860627.htm.

33. UPI, 7 December 2000.

34. See the text of 1999 indictment of President Milosevic by the Hague
Tribunal at
http://www.un.org/icty/indictment/english/mil-ii990524e.htm.

35. See the text of UNSC resolution 687 (1991) pertaining to Iraq at
http://www.unog.ch/uncc/introduc.htm.

C Copyright by Michel Chossudovsky, Ottawa, May 2001. All rights
reserved. Permission
is granted to post this text on non-commercial
community internet sites, provided the essay remains intact and the
copyright note is
displayed. To publish this text in printed and/or other
form, contact the author at chossudovsky@..., fax: 1-514-
4256224.

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