"Japan said it supports Russia's proposal for a special meeting of the Group of Eight industrialized nations on the Kosovo crisis. "Japanese Prime Minister Keizo Obuchi ``strongly supports any diplomatic efforts that would lead to an early political solution.'' Vatican: Cease-Fire 'Sign of Peace' VATICAN CITY (AP) -- The Vatican greeted Yugoslavia's unilateral cease-fire with Kosovo's rebels as a ``sign of peace'' on Tuesday and again urged NATO to halt its airstrikes. Vatican envoys have been working without success for an end to the NATO bombings as well as a return of Yugoslav leaders and ethnic Albanians in Kosovo to the negotiating table. ``One thing is certain: to continue the violence of the last few days represents a grave obstacle to the search for a negotiated peace,'' said the Vatican secretary of state, Archbishop Jean-Louis Tauran. Tauran, who met with Yugoslav President Slobodan Milosevic last week, said Tuesday that the cease-fire was a ``very important step towards peace.'' Pope John Paul II has repeatedly called for an end to the conflict and on Easter Sunday he implored Yugoslav authorities to open a ``humanitarian corridor'' so aid can reach Kosovo's desperate refugees. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1998 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P. NATO Allies Reject Yugoslav Cease-Fire Declaration Belgrade, April 7 (Bloomberg) - NATO rejected the Yugoslav government's unilateral declaration of a cease-fire in Kosovo, saying the alliance won't halt its bombing until President Slobodan Milosevic allows the province's ethnic Albanians to return and accepts an international peace-keeping force. NATO forces stepped up their attacks, hitting targets early today in Kosovo's capital Pristina and the Yugoslav capital Belgrade, Agence France-Presse said, citing eyewitnesses. Targets at around at least five Yugoslav cities were struck, yesterday including a chemical plant, an airport, and an army firing range, according Yugoslav state television. The Yugoslav offer is ``clearly insufficient,'' NATO Secretary-General Javier Solana said after meeting with NATO ambassadors. Milosevic must end his crackdown and accept a political settlement based on the Rambouillet accords, he said. By meeting those conditions, ``Mr. Milosevic could end this now,'' U.S. President Bill Clinton said earlier. ``The United States would never choose force for anything other than a last option.'' Serbian Television described the cease-fire pledge as temporary to mark the Orthodox Easter holiday, but when asked if it was permanent, Belgrade Deputy Mayor Milan Bozic told Sky News: ``Let's try for that.'' Improved weather has enabled allied forces to launch the most intense raids so far on targets throughout Yugoslavia, British Defense Secretary George Robertson said Tuesday. NATO is destroying bridges and highways critical to Yugoslavia's military communications, as well as tanks, artillery and barracks, he said. ``With every sortie, Milosevic's war machine is being weakened,'' he said. Attacks Intensify MSNBC reported anti-aircraft fire and at least a dozen explosions in the Belgrade area Tuesday night. Three powerful blasts rocked the Kosovo capital of Pristina and a Yugoslav army firing range was hit in a village near the Podgorica, the capital of Montenegro, Serbia's smaller partner in the Yugoslav federation, Agence France Presse reported. One U.S. bomb landed in a civilian area Monday night, U.S. Defense Department spokesman Ken Bacon said. The 500-pound laser- guided bomb hit an apartment building in the central Serbian coal-mining town of Aleksinac. NATO Air Commodore David Wilby said the strike had been aimed at a nearby artillery brigade. Yugoslav media said 12 people died and dozens were injured. While Robertson dismissed the Yugoslav cease-fire declaration as ``just a propaganda ploy,'' the euro rallied to its biggest one-day gain against the dollar. The offer ``gives the market a bit of hope that we might get an agreement that would stop the bombing,'' said Rainer Guidon, manager of foreign exchange at Erste Bank. ``Still, I wouldn't load up on euros right now,'' he said. ``It's a bit too early.'' The euro rose to $1.0847 from $1.0712 late yesterday in New York. Bonds Rallied European bonds rallied, and U.S. bonds rose for the second time in three days. ``The proposed ending of hostilities would make people feel better about taking on risk,'' boosting the allure of long-term bonds over safer, short-term securities, even though the U.S. and U.K. rejected the offer, said James Tesone, who manages $500 million of bonds at Carret & Co. Public opinion in the U.S. has begun to swing in favor of sending ground troops to beat back the Yugoslav army, end the repression of ethnic Albanians and ensure a measure of autonomy for Kosovo. A full 73 percent of the U.S. public supports a ground invasion as a last resort to stopping the conflict, and 53 percent support it under current conditions, according to a Wall Street Journal-NBC News poll released Tuesday night. NATO countries and non-governmental organizations are beginning to document possible war crimes occurring inside Kosovo, including summary executions, the forced detention of thousands of ethnic Albanians, the disappearance of what could be hundreds of thousands of Kosovar Albanian men, and widespread looting by Serb forces, NATO spokesman Jamie Shea said. Won't Be Back ``People have been told to have a last look around because they won't be back,'' Shea said. ``They've had to trade in their property rights for a train ticket to oblivion.'' Milosevic will be held responsible, U.S. envoy Richard Holbrooke said. ``What is happening in Kosovo, and he is directly responsible for it, is clearly a war crime,'' Holbrooke said on NBC's ``Today'' program. Japan said it supports Russia's proposal for a meeting of the Group of Eight industrialized nations on the Kosovo crisis. Japanese Prime Minister Keizo Obuchi ``strongly supports any diplomatic efforts that would lead to an early political solution,'' Obuchi's press secretary Akitaka Saiki said. German Foreign Minister Joschka Fischer said foreign ministers from the group may meet on Sunday or Monday to discuss the situation in Kosovo. He said senior foreign ministry officials from the eight countries will meet first to see whether such a meeting ``would make sense.'' Military Committees Separately, U.S. Defense Secretary William Cohen left Tuesday for NATO consultations in Brussels and then Aviano Air Base in Italy. Traveling with him are a dozen members of the U.S. Congress active active in military affairs or serving on military committees, including Senator Carl Levin of Michigan, the ranking Democrat on the Senate Armed Services Committee, and Senator John McCain of Arizona, a Vietnam war veteran, member of the Armed Services Committee and an outspoken supporter of military action against Yugoslavia. About 1.1 million ethnic Albanians in Kosovo have been displaced in the past year, the U.K. Defense Ministry said. French President Jacques Chirac said he and German Chancellor Gerhard Schroeder will propose a European Union summit to discuss ``new measures'' to handle the refugee problem. Refugee Airlift Begins In the past two weeks alone, 135,000 have fled to Macedonia, with another 100,000 headed to the Macedonian border. An estimated 62,000 are in Montenegro, with another 100,000 headed to that border, the U.K. said. NATO began airlifting refugees to temporary facilities in other countries. Five planes carrying a total 800 ethnic Albanians landed Monday night in Turkey, AFP reported. A plane with 91 refugees landed in Norway early Tuesday. The U.S. is preparing to house 20,000 refugees temporarily at its naval base at Guantanamo Bay in Cuba, White House spokesman Joe Lockhart said. Cuba's vice minister of foreign investment, Raul Taladrid, criticized the plan, saying, ``The refugee problem is a European problem,'' Agence France Presse reported. All told, temporary sanctuary will be given to between 100,000 and 200,000 refugees, U.S. officials said. Governments that agreed to share in the airlift emphasized that the longer- term objective is for all refugees to return to Kosovo. The European Commission said that it's close to exhausting its 20 million euro ($21.5 million) annual budget for humanitarian aid to Kosovo and plans to tap into a reserve fund for more. Aid Pledges The commission is also planning a separate aid package to help shore up infrastructure in Albania, Macedonia and Montenegro, said Nico Wegter, spokesman for Hans van den Broek, the EU commissioner responsible for relations with eastern Europe. France tripled its refugee aid to 225 million francs ($37 million), Prime Minister Lionel Jospin said. The World Bank is leading an effort to raise funds to help Macedonia's government cope with the refugees. It's drawing up plans for a $40 million loan.
