>socialist economy and inviting Western corporations to swarm in. (16) > > Western aims were clearly spelled out in the Stability Pact for >Southeastern Europe of June 10, 1999. This document called for "creating >vibrant market economies" in the Balkans, and "markets open to greatly >expanded foreign trade and private sector investment." One year later, the >White House > issued a fact sheet detailing the "major achievements" of the Pact. Among >the achievements listed, the European Bank for Reconstruction and >Development (EBRD) and the International Finance Corporations are said to >be "mobilizing private investment." By 2002, "new private investment in > the region" is expected to reach nearly $2 billion. The Pact's Business >Advisory Council "is visiting all of the countries of Southeast Europe" to >"offer advice" on investment issues. Another initiative is Hungarian >involvement with opposition-led local governments and opposition media in >Serbia. > > The Overseas Private Investment Corporation (OPIC), on July 26, 2000, >inaugurated an investment fund to be managed by Soros Private Funds >Management. The Southeast Europe Equity Fund, "will invest in companies in >the region in a range of sectors." Its purpose, according to the U.S. >Embassy in Macedonia, is "to provide capital for new business development, >expansion and privatization." In March 2000, Montenegro signed an agreement >permitting the operation of OPIC on its territory. > Billionaire George Soros spelled out what all this means. U.S. involvement >in the region, he said, "creates investment opportunities," and "I am happy >to put my money where they are putting theirs." In other words, there is >money to be made. George Munoz, President and CEO of OPIC was also blunt. > "The Southeast Europe Equity Fund," he announced, "is an ideal vehicle to >connect American institutional capital with European entrepreneurs eager to >help Americans tap their growing markets. OPIC is pleased that Soros >Private Funds Management has chosen to send a strong, positive signal that >Southeast Europe is open for business." > > The final text of the Stability Pact for Southeast Europe suggested that a >Yugoslavia that would "respect" the Pact's "principles and objectives" >would be "welcome" to become a full member. "In order to draw the Federal >Republic of Yugoslavia closer to this goal," the document declared, > Montenegro would be an "early beneficiary." Western leaders hope that a >future pro-Western Yugoslavia would, as has the rest of Eastern Europe, be >"eager to help Americans" make money. (17) > > Western leaders yearn to install a puppet government in Belgrade, and >place their hopes in the fragmented right-wing opposition parties in >Serbia. In 1999, American officials encouraged these parties to organize >mass demonstrations to overthrow the government, but these rallies quickly >fizzled > due to lack of popular support. When Yugoslav Federal and local elections >were announced for July 24, 2000, American and Western European officials >met with leaders of the Serbian opposition parties, urging them to unite >behind one presidential candidate. Despite U.S. efforts, three candidates >emerged in opposition to President Milosevic. > > At the beginning of August 2000, the U.S. opened an office in Budapest >specifically tasked to assist opposition parties in Yugoslavia. Among the >staff are 24 psychological warfare specialists who engaged in psychological >operations during NATO's war against Yugoslavia and earlier against Iraq > in the Gulf War. During those operations, the team also fabricated news >items in an effort to sway Western public opinion. > > If President Milosevic is re-elected, then U.S. Secretary of State >Madeleine Albright expects street demonstrations to overturn the election >results and topple the government. In meetings held in Banja Luka in spring >2000, Albright expressed disappointment with the failure of past efforts to >overthrow the legally elected Yugoslav government. Albright said that she >had hoped sanctions would lead people to "blame Milosevic for this >suffering." An exasperated Albright wondered, "What was stopping the > people from taking to the streets?" Indicating that the U.S. was casting >about for a pretext for intervention, she added, "Something needs to happen >in Serbia that the West can support." (18) > > The paths of Yugoslavia's two republics are sharply diverging. Only Serbia >stands in the way of the West's grand scheme to integrate the Balkans into >an economic model in which the region's economies are subordinated to >Western corporate interests. While Serbia's economy includes a strong >socialist component with large and medium sized firms socially owned, >Montenegro has embarked on a program to place its entire economy at the >service of the West. November 1999 saw the introduction in Montenegro of >the German mark as an official currency and the passage of legislation >eliminating socially owned property. One month later, several large firms >were publicly offered for sale, including the Electric Power Company, the >13th July Agricultural Complex, the Hotel-Tourist firm Boka and many >others. (19) The republic's privatization program for 2000 calls for the > privatization of most state-owned industries, and includes measures to >"protect domestic and foreign investors." Three hundred firms will be >privatized in the initial stage of the plan. In early 2000, the U.S. signed >an agreement to provide Montenegro $62 million, including $44 million from >the U.S. Agency for International Development (USAID). According to the >agency, it will also undertake "assistance programs to support economic >reform and restructuring the economy….to advance Montenegro toward a free >market economy." U.S. policy advisor on the Balkans James Dobbins indicated >that the U.S. viewed the "market-oriented reforms of the Djukanovic regime >as a model and stimulus for similar reforms throughout the former >Yugoslavia." The U.S. is also offering guarantees for private investors in >the republic. Additional aid is provided by the European Union, which has >approved $36 million for Montenegro. "From the first day," admitted >Djukanovic, "we have had British and European consultants." (20) > > The Center for International Private Enterprise, an affiliate of the U.S. >Chamber of Commerce, is providing support to the Center for >Entrepreneurship (CEP) in Montenegro. According to the center's executive >director, Petar Ivanovic, the organization "focuses on elementary and high >schools," establishing entrepreneurship as a new subject to be taught in >schools. As Ivanovic explains it, "Introducing young people to the concept >of entrepreneurship will make them less resistant to the private sector." >The CEP also intends to "educate government officials about the potential >rewards of the private sector," and to help them "understand the benefits >of economic reform and privatization." (21) According to Djukanovic, when >he met with President Clinton on June 21, 1999, the U.S. president gave the >privatization process a push by telling Djukanovic that the U.S. planned to > "stimulate the economy" by "encouraging US corporations and banks to >invest capital in Montenegro." (22) > > Djukanovic has moved steadily toward secession from Yugoslavia, indicating >that he will push for separation if the right-wing opposition loses the >September 24 election. In a phone call to Djukanovic in July 2000, >Madeleine Albright promised that the U.S would provide him with an >additional $16.5 million. That same week, Djukanovic blurted out that >Montenegro "is no longer part of Yugoslavia." He also made the astonishing >claim that he considered it a "priority" for Montenegro to join NATO, the > organization that had bombed his country only the year before. The next >month, Albright announced that she and Djukanovic "try and talk to each >other and meet on a regular basis," and that the "United States is >supportive of the approach that President Djukanovic has taken in terms of >democratic development and his approach to the economic reforms also." (23) > > Western support for secession extends beyond Albright meeting and talking >with Djukanovic. More than half of the population of Montenegro opposes >secession, and any such move is likely to explode into violence. In >preparation for that rift, Djukanovic is building up a private army of over >20,000 soldiers, the Special Police, including special forces armed with >anti-tank weapons. Sources in Montenegro revealed that Western special >forces are training this private army. Djukanovic has requested that NATO >establish an "air shield over Montenegro" as he moves toward secession. One >member of the Special Police, named Velibor, confirmed that they were >receiving training from the British SAS. "If there is a situation where >weapons will decide the outcome, we are ready," he said. "We are training >for that." At a press conference on August 1, 2000, Minister Goran Matic >declared that the "British are carrying out part of the training of the >Montenegrin special units. It is also true," he added, that the Special >Police "are intensively obtaining various kinds and types of weapons, >starting with anti-aircraft and anti-helicopter weapons and so on, and they >are also being assisted by Croatia, as the weapons go through Dubrovnik and >other places." Furthermore, Matic pointed out that, "last year, before and >after the aggression, a group from within the Montenegrin MUP [Ministry of >Interior > Affairs] structure left for training within the U.S. police structure and >the U.S. intelligence structures." In August, two armored vehicles bound >for Montenegro were discovered in the port of Ancona, Italy. One of the >vehicles was fitted with a turret suitable for mounting a machine gun or >anti-tank weapon. Italian customs officials, reports the Italian news >service ANSA, are "convinced" that arms trafficking to Montenegro "is of >far greater magnitude than this single episode might lead one to believe." >Revelling in anticipation of armed conflict, Djukanovic bragged that "many >will tuck their tails between their legs and will soon have to flee >Montenegro." (24) > > A violent conflict in Montenegro would provide NATO with its long-desired >pretext for intervention. As early as October 1999, General Wesley Clark >drew up plans for a NATO invasion of Montenegro. The plan envisions an >amphibious assault by more than 2,000 Marines storming the port of Bar > and securing the port as a beachhead for pushing inland. Troops ferried by >helicopters would seize the airport at Podgorica, while NATO warplanes >would bomb and strafe resisting Yugoslav forces. According to U.S. >officials, other Western countries have also developed invasion plans. (25) >Richard Holbrooke, U.S. Ambassador to the UN declared, "We are in constant >touch with the leadership of Montenegro," and warned that a conflict in >Montenegro "would be directly affecting NATO's vital interest." (26) NATO >General Secretary George Robertson was more explicit. "I say to Milosevic: >watch out, look what happened the last time you miscalculated…" (27) > > President Milosevic and the ruling socialist-led coalition in Yugoslavia >enjoy considerable popular support, and many Western analysts admit they >are likely to emerge victorious in the September 24 election. A socialist >victory could precipitate a NATO strike, launched from Bulgaria within >months, to > overthrow the legally elected government of Yugoslavia. If the coup >attempt fails, then Montenegro could declare independence, setting in >motion a chain of events that would lead to a second all out war by NATO >against Yugoslavia. The war in 1999 brought immense suffering to the >Balkans. The next war promises to be catastrophic. > > NOTES > > 1) "Bulgaria - Press Review" BTA (Sofia), August 12, 2000 "Bulgaria - Us >CIA Director's Visit," BTA (Sofia), August 15, 2000 "CIA Did Not Tell Us >the Most Important Thing," Trud (Sofia), August 16, 2000 "Bulgaria - Press >Review," BTA (Sofia), August 14, 2000 "Bulgaria - Press Review," BTA >(Sofia), August 16, 2000 > > 2) Mila Avramova, "Italians Lease Training Ground for 400,000 Leva," Trud >(Sofia), August 9, 2000 Michael Evans, "Balkans Watch for 'Invincible'," >The Times (London), August 26, 2000. > > 3) Paul Beaver, "Clinton Tells CIA to Oust Milosevic," The Observer, >November 29, 2000. Fran Visnar, "Clinton and the CIA Have Created a >Scenario to Overthrow Milosevic," Vijesnik (Zagreb), November 30, 2000. > > 4) Douglas Waller, "Tearing Down Milosevic," Time Magazine, July 12, 1999. > > 5) Michael Moran, "A Threat to 'Snatch' Milosevic," MSNBC, July 8, 1999. > > 6) "Yugoslav Police Say Killer of Local Leader Worked for Opposition," >Agence France-Presse, May 15, 2000. "Arrested Assassin Gutovic Member of >Otpor and SPO," Tanjug (Belgrade), May 15, 2000. > > 7) "Yugoslav Official Accuses CIA of Being Behind Montenegro Murder," >Agence France-Presse, June 6, 2000. Aleksandar Vasovic, "Serb Aide Says CIA >Behind Slaying," Associated Press, June 6, 2000 "Yugoslav Information >Minister Accuses CIA of Complicity in Zugic Murder," Borba (Belgrade), June >6, 2000 > > 8) Statement by Richard Tomlinson, addressed to John Wadham, September 11, >1998. > > 9) "Serb Consensus: Draskovic Crash Was No Accident," Seattle Times News >Services, October 13, 1999. > > 10) "NATO: Milosevic Not Target," BBC News, April 22, 1999. > > 11) "Serbs Allege Milosevic Assassination Plot," Reuters, November 25, >1999. "France Plots to Murder Milosevic," Agence France-Presse, November >26, 1999. "SFOR Units Involved in a Plot to Kill Milosevic," Agence >France-Presse, December 1, 1999. Gordana Igric, "Alleged 'Assassins' Were >No Stranger to France," IWPR Balkan Crisis Report (London), November 26, >1999. Milenko Vasovic, "Belgrade's French Connection," IWPR Balkan Crisis >Report (London), November 26, 1999. > > 12) "Lt. Testifies at Milosevic Trial," Associated Press, April 26, 2000. > > 13) Aleksandar Vasovic, "4 Accused of Milosevic Death Plot," Associated >Press, July 31, 2000. "Dutchmen Arrested, Accused of Plotting Against >Milosevic," Agence France-Presse, July 31, 2000. Email correspondence from >Herman de Tollenaere, quoting from NRC- Business Paper of August > 1, 2000. "Arrested Dutchmen Admitted Plans to Kill, Kidnap Milosevic," >BETA (Belgrade), August 17, 2000. "Dutch Espionage Terrorist Gang Arrested >in Yugoslavia - Minister," Tanjug (Belgrade), July 31, 2000. "Yugoslav >Information Minister Says U.S. Behind Dutch 'Mercenaries'," BBC Monitoring >Service, August 1, 2000. > > 14) "West Sees Noose Tightening Around Milosevic," Reuters, June 9, 2000. > > 15) "NDI Activities in the Federal Republic of Yugoslavia >(Serbia-Montenegro)," NDI Worldwide Activities, www.ndi.org > > 16) "Britain Trains New Elite for Post-Milosevic Era," The Independent, >May 3, 2000. The New Serbia Forum web page, >http://ds.dial.pipex.com/town/way/glj77/Serbia.htm > > 17) "Final Text of Stability Pact for Southeast Europe," June 10, 1999. >U.S. Embassy, Skopje, Macedonia, "Southeast Europe Equity Fund Launched >July 26," July 27, 2000. White House Fact Sheet, "The Stability Pact for >Southeast Europe: One Year Later," July 27, 2000. > > 18) Borislav Komad, "At Albright's Signal," Vecernje Novosti, May 18, >2000. "US Anti-Yugoslav Office Opens in Budapest," Tanjug (Belgrade), >August 21, 2000. > > 19) Ljubinka Cagorovic, "Montenegro Assembly Scraps Socially-Owned >Property," Reuters, November 13, 1999. "Montenegrin Government Prepares to >Privatise Economy," Tanjug (Belgrade), December 25, 1999. > > 20) Central and Eastern European Business Information Center, >"Southeastern Europe Business Brief," February 3, 2000. Central and Eastern >European Business Information Center, "Southeastern Europe Business Brief," >April 27, 2000. Anne Swardson, "West Grows Close to Montenegro," Washington >Post, May 24, 2000. > > 21) Petar Invanovic, "Montenegro: Laying the Foundation of >Entrepreneurship," Center for International Private Enterprise. > > 22) Statement by Montenegrin President Milo Djukanovic, "Important Step in >Opening New Perspectives For Montenegrin State Policy," Pobjeda >(Podgorica), June 22, 1999. > > 23) "Albright Renews Montenegro Support," Associated Press, July 13, 2000. >"Montenegro Wants to Join NATO and the EU," Agence France-Presse, July 10, >2000. Office of the Spokesman, U.S. Department of State, "Secretary of >State Madeleine K. Albright and Montenegrin President Milo Djukanovic," >Press Stakeout at Excelsior Hotel, Rome, Italy, August 1, 2000. > > 24) "Montenegro Ahead of Elections: Boycott and Threats," BETA (Belgrade), >August 9, 2000. "Montenegro and Elections - Boycott Becomes Official," BETA >(Belgrade), August 17, 2000. Phil Reese, "We Have the Heart for Battle, >Says Montenegrin Trained by SAS," The Independent, July 30, 2000. "Yugoslav >Information Minister Says U.S. Behind Dutch 'Mercenaries'", BBC Monitoring >Service, August 1, 2000. "Yugoslavia Says British SAS Trains Montenegrins," >Reuters, August 1, 2000. "Information Minister Sees Montenegrin Arms >Purchases, Croatian Assistance," BETA (Belgrade), July 31, 2000. "Foreign >'Dogs of War' Training Montenegrin Police to Attack Army," Tanjug >(Belgrade), August 9, 2000. "Montenegro: Camouflaged Military Vehicles >Seized in Ancona," ANSA (Rome), August 21, 2000. "Montenegro: Traffic in >Camouflaged Armored Vehicles: Investigation into Documentation," ANSA >(Rome), August 22, 2000. > > 25) Richard J. Newman, "Balkan Brinkmanship," US News and World Report, >November 15, 1999. > > 26) "Clinton Warns Milosevic 'Remains a Threat to Peace'," Agence >France-Presse, July 29, 2000. > > 27) "NATO's Robertston Warns Milosevic on Montenegro," Reuters, July 27, >2000. > >******************************************************************* > > If you find emperors-clothes useful, we can use your help... > > (The Soros Foundation does NOT fund Emperors Clothes.) > > We rely on volunteer labor and donations. Our expenses include: Internet >fees, Lexis, our Internet research tool, and phone bills. We use the phone >a lot for interviews and to discuss editorial changes. > > Every month hundreds of thousands of people read articles from Emperor's >Clothes. By making a contribution you will be helping to spread the word. > > To use our secure server to make a donation please go to >http://www.emperors-clothes.com/howyour.htm . Or you can mail a check to >Emperor's Clothes, P.O. 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