Milosevic allies urged to fall in line

BELGRADE, Yugoslavia -- Allies of former Yugoslav President Slobodan Milosevic are being urged to accept the imminent creation of Serbia's transitional government seen as crucial for the country's democratic future.

As he prepares to take his place on the world stage -- attending a European Union summit in France -- the new Yugoslav president, Vojislav Kostunica, threatened to send his supporters back on to the streets if allies of Milosevic continue to resist his attempt to form a new administration.

The transitional government will oversee the elections due to take place in Serbia in December following last week's revolution in which Milosevic was ousted after 13 years in power.

IN-DEPTH Yugoslavia in Transition   • Balkan hotspots   • War crimes defendants   • Milosevic profile   • Kostunica profile   • Ambition and wealth   • Timeline 1945-2000   • Shrinking of Yugoslavia   • Message board   • Sanctions highlights   • Sick society   • Aftermath of an uprising   • Serbia: A day of change   • Protest in pictures     ALSO Mayor tells inside story of Belgrade uprising Inside Serbia: The watchdogs of democracy Struggling Serbian city awaits end of sanctions    VIDEO CNN's Nic Robertson reports on Yugoslavia's effort to redefine itself (October 12) Play video (QuickTime, Real or Windows Media) Yelimir Ilic, the revolt's mastermind, tells CNN's Alessio Vinci how he organized the protest and the takeover of key government buildings Play video (QuickTime, Real or Windows Media) CNN's Nic Robertson says the visit by Hubert Vedrin shows Yugoslavia's improving international relations Play video (QuickTime, Real or Windows Media)     TRANSCRIPT James Rubin on Yugoslavia

If Friday's deadline for the process to begin is not met, there could be protests on the streets.

The deadline was set after attempts by officials loyal to Milosevic to reclaim control of the Serbian police and government posts.

Kostunica's threat came after Milosevic supporters insisted they will stay in office in the Serbian parliament.

The military has warned of "negative consequences" if Kostunica attempts to replace an army chief.

Kostunica said despite "disruptive factors," the transition of power would go on and the "tensions and difficulties that exist in this society will be removed."

Despite the tensions, the new government achieved some progress on Thursday in stamping its mark on the country's key institutions, after Yugoslavia's chief banker was forced from office.

Borka Vucic, 72, who directed the Beogradska Banka under Milosevic, was removed from the bank's board after a vote by shareholders, the Beta news agency reported.

The shareholders' meeting was convened by the crisis committee set up by Kostunica and his supporters to run the country's affairs until a transitional government is established.

Meanwhile, Kostunica has been boosted by a decision of the United States to lift some of the sanctions imposed on Yugoslavia.

In another positive development, the International Monetary Fund said Yugoslavia could rejoin the lending body within months, paving the way for a restructuring of debt and an economic revival program.

Yugoslavia was expelled from the IMF and the World Bank in 1992 for its role in the Bosnian and Croatian wars.

President Bill Clinton followed the European Union in ending an oil embargo and a flight ban imposed in 1998, and said Washington had a "strong interest" in backing Yugoslavia's new leadership.

EU leaders are preparing to give Yugoslavia a "substantial" aid package to boost the new leadership at a summit beginning on Friday in Biarritz, France.

Kostunica will attend the summit and is expected to meet European leaders on Saturday.

In response to the move by the United States, which led an 11-week NATO bombing campaign against Yugoslavia last year, Kostunica said he wanted normal diplomatic relations to be resumed.

"After this meeting we hope we will bridge that gap and our relations will normalise," said Kostunica following a meeting with the U.S. special envoy to the Balkans, James O'Brien.

Clinton said: "We have a strong interest in supporting Yugoslavia's newly elected leaders as they work to build a truly democratic society.

"The removal of these sanctions imposed by the U.S. in 1998 is a first step to ending Serbia's isolation."

He added: "The victory of freedom in Serbia is one of the most hopeful developments in Europe since the fall of the Berlin Wall.

"It ended a dictatorship and it can liberate an entire region from the nagging fear that ethnic differences can again be exploited to start wars and shift borders."

On the eve of the two-day Biarritz summit, European Commission President Romano Prodi said he would present the 15 EU leaders with a large emergency aid plan.

"I shall propose a plan with ... a very substantial sum, notably for Serbia," Prodi said, although he did not reveal how much money would be given, but said it would be used to providing aid, such as medicine, food, and fuel.

Senior Yugoslav generals have warned against moves by Kostunica to purge military leaders appointed by Milosevic and one of the ex-president's allies -- Serbian Prime Minister Mirko Marjanovic -- has said he would be taking over direct control of the police.

Milosevic's party announced leadership changes on Thursday as it struggled to stem the steady erosion of its power and influence to the newly elected president.

In a statement, the Socialists, who have called a party congress for November 25, said the hard-line Gorica Gajevic had been replaced as secretary-general by the more moderate Zoran Andjelkovic, head of the Serb-run Kosovo government.

Serbian President Milan Milutinovic was named the party's vice president. Milosevic apparently remains at the helm despite losing the presidency in the September 24 elections.

There were also signs of a rift between the Socialists and their neo-communist allies, the Yugoslav Left, the party of Milosevic's influential wife, Mirjana Markovic.

Both parties said that, unlike in last month's elections, their candidates would run independently in the next Serbian elections

The Associated Press & Reuters contributed to this report.

Milosevic allies step up power struggle
October 12, 2000
Milosevic allies cling to power
October 11, 2000
Yugoslavia looks to end isolation
October 10, 2000
Yugoslavia appeals for international help
October 11, 2000
Belgrade appeals for international help
October 10, 2000

Yugoslav Government
International Monetary Fund
European Union

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