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Date sent:              Thu, 27 May 1999 12:11:47 -0700
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From:                   Sid Shniad <[EMAIL PROTECTED]>
Subject:                Selected pieces of analysis of the Kosovo situation from
        Stratfor

Stratfor Analysis

Current Status of the War                       2100 GMT, 990516 

As the new week begins, it is time to take stock of the war. This is not 
particularly difficult as we have clearly entered a period of stalemate in 
which neither side is able to bring the conflict to a close and indeed, for 
the moment, neither side is motivated to bring it to a close. From the 
NATO perspective, the air war is not particularly costly or risky. Given 
the fragility of the NATO coalition, the policy of air war intensification 
without either a diplomatic breakthrough or a ground war is the lowest 
risk option. The advantage of this strategy is threefold. First, it keeps 
open the possibility, however distant, that the Serbs will crack under 
the bombing attack and capitulate to NATO’s demands. Second, 
absent that, it allows NATO to keep further war fighting options open 
while also keeping open diplomatic options. Third, as we have said, it 
also avoids decision-making in NATO’s councils. The less decision-
making goes on, the less likely the coalition is to come apart.

>From Belgrade’s side, the stalemate is also acceptable. First, while 
daily tragedies occur, from a strictly military viewpoint, the bombing is 
not affecting Sebia’s long-term war fighting capability. The light 
infantry forces that would be used in an extended resistance to a 
NATO invasion are not being sufficiently hurt by the bombing to force 
a strategic reconsideration. Second, Milosevic’s political standing has 
been strengthened by the bombing. While NATO’s psychological 
warfare staff is trying to generate a sense of impending disintegration in 
Milosevic’s support, both among civilians and military, and some war 
weariness is certainly setting in, it is our view that the sense of 
victimization at the hands of NATO is sufficient to hold his support 
together. Appearing to be too eager to seek a settlement may actually 
hurt him rather than help him. Finally, the Russian internal political 
situation has become so unsettled that the basic premise that allowed 
Milosevic to resist NATO has become problematic. It is in Milosevic’s 
interests to wait until the situation in Moscow clarifies itself and 
hopefully the pro-Serb factions reassert themselves, before entering 
negotiations.

Thus, the major tendency is toward gridlock. There are, however, 
forces on the horizon that can generate movement. On NATO’s 
side, the Italian political situation is deteriorating daily. The 
government could move into crisis by mid-week over the bombing 
issue. That political crisis could end the war unilaterally. Should 
Italy deny NATO the use of its air bases for the bombing 
campaign, it would signal the end of the war. Italy is absolutely 
necessary for the war. This means that NATO, in anticipation of 
the outcome of the Italian crisis, might be forced to seek some 
diplomatic initiatives. Indeed, the Italian situation is one reason 
that Milosevic not only might, but must, hold out. It is his major 
hope for a breakthrough.

Yugoslavia has its own pressures leading it to make concessions. While 
the current situation in Moscow is an argument for waiting, there is 
tremendous long-term danger there for Yugoslavia. If victory in 
Moscow’s political wars goes to western-oriented leaders, which might 
happen if only for a short time, and Milosevic loses his support from 
that quarter, his strategic position will deteriorate dramatically. China
is simply too far away to matter. A shift in Moscow could trigger a shift 
in Greece and Macedonia, opening the way to a ground war. In 
addition, while the air campaign is not decisive, it does hurt. All of 
these factors cause movement toward diplomacy.

The key question continues to be the makeup of the peacekeeping 
force and the quantity and type of force Serbia will be permitted 
to keep in Kosovo. It is interesting to us that the discussions on 
this seem to be going on in slow motion. Discussions that should 
take hours are taking days. Discussions that should take days are 
taking weeks. One reason for this is the situation in Moscow and 
Rome. But the underlying problem is that each side believes that 
the other’s problems are more serious than its own. Milosevic 
hopes that Clinton’s problems with Rome will cripple him. 
Clinton hopes that Milosevic’s problems with Moscow will cripple 
him.

>From our perspective, there is an ongoing tragedy here. There is a clear 
structure for a peace agreement in place. It has been there from the 
beginning. The discussions have now degenerated to what weapons 
peacekeepers will carry. The real problem is not one of substantial 
issues, but of appearance. Clinton cannot appear to have fought 
this war for nothing. Milosevic cannot appear to have put his 
country through this pounding for nothing. Each must find a way 
to claim victory while allowing the other to do the same. 

In an odd way, Clinton and Milosevic are similar men. They are willing 
to fight wars for domestic political reasons even when the strategic 
issues could be settled fairly readily. Each knows that the victory he 
wants is impossible. Clinton cannot invade Serbia and impose a new 
government. Milosevic will not be able to avoid foreign troops in 
Kosovo. Each is more concerned about how the final, obvious 
agreement will be arrived at than what that agreement will contain, 
because each knows pretty much what will be in the agreement. It is 
not a question just of stubbornness, although both are extraordinarily 
willful men. Rather, it is the reasoning behind fighting wars. 

Wars fought for geopolitical reasons are ultimately manageable. 
Wars fought for domestic political reasons are the hardest to 
solve. That means that the nations whose geopolitical interests are most 
affected by this--Italy, Germany and Russia--will ultimately have to 
take responsibility for imposing an agreement. The problem is that 
everyone’s attention is on other things, and there is no pressing urgency 
in the war. That is the most extraordinary fact: Kosovo refugees and 
the bombing of Serbia aside, no one at all seems to feel a sense of 
urgency.

This has surprised us during the past few weeks and it continues to 
surprise us. However, if we had looked closely at the careers of these 
two men, perhaps we would have been less surprised. For men to 
whom appearance is everything, how war is settled can be more 
important than what is achieved. 


Slouching Toward Peace                  0337 GMT, 990519 

We continue to see strong indications that we are in the terminal phase 
of the war. The decision of Finnish President Martti Ahtisaari to 
accompany Viktor Chernomyrdin to Belgrade is a strong indicator that 
the United States and Russia have now reach detailed agreement on the 
terms needed to end the war. Ahtisaari had said that he would not 
travel to Belgrade unless Chernomyrdin and Strobe Talbott made 
substantial progress and, by implication, had a common position. 
Ahtisaari, the EU representative on Kosovo, with close ties to the 
United Nations, was not prepared to commit his offices to negotiations 
until after a unified position was crafted between the U.S. and Russia. 
His reasoning was sound. If the U.S. and Russia weren’t working from 
a common script, nothing he achieved in Belgrade would hold together. 
Moreover, Milosevic would try to use any gap between the U.S. and 
Russian position to extract further concessions. Given that, no progress 
was possible until the U.S. and Russia had a common position.

That common position, clearly based on the G-8 agreements 
already achieved, is now in place. The presence of Ahtisaari in 
Belgrade means clearly that whatever troops enter Kosovo will be 
under UN and not NATO command. The presence of Chernomyrdin 
further guarantees that the political oversight of those troops will not be 
solely in the hands of NATO and the United States. Finally, Ahtisaari’s 
involvement signals the commitment by the continental EU countries to 
end the war. In short, Ahtisaari is going to Belgrade to give 
Milosevic guarantees on behalf of the UN and EU while 
Chernomyrdin is going to give him guarantees on behalf of 
Russia.

Chernomyrdin is also going to deliver a harsher message: that unless 
Belgrade accepts the deal as it stands, Belgrade will be alone, China 
being irrelevant to the equation. In our view, Milosevic would not have 
been able to resist NATO with the tenacity he has had he not had 
Russian support. The threat of the loss of Russian backing changes the 
strategic and geopolitical foundations of his decisions. Therefore, with 
the premise on which his decision was based dissolving, the decision 
itself has to be altered. Belgrade is already indicating that it is
prepared to live with the deal. Milosevic will undoubtedly want to
scrutinize the details and attempt to extract whatever technical points
possible that would increase the probability of retained sovereignty over
Kosovo. 

He will also have one additional demand: disarming the KLA. That 
will be easier to agree to than to enforce. This actually will help 
Milosevic in the long run. By agreeing to withdraw most Serbian 
forces from Kosovo, Milosevic shifts the responsibility for 
controlling the KLA to the United Nations and to Russia. KLA 
actions will create an opportunity to drive a wedge between Russia and 
NATO as Russia blames NATO for its actions. Indeed, it will drive a 
wedge between NATO members Germany and Italy on one side and 
the U.S. and UK on the other. Germany and Italy will want the KLA 
controlled and will hold the U.S. and UK responsible for its actions. 
Since the KLA has become uncontrollable and will have a vested 
interest in maintaining tension, this will give Milosevic leverage in the 
post-war environment.

Thus, the next few days will be filled with discussions of how to 
control the KLA and how to return the Albanians to their homes. 
Milosevic will use the former as a means to make himself the 
aggrieved party. Delays in the latter he will blame, with some 
legitimacy, on the damage caused by NATO bombing of Kosovo’s 
infrastructure. Milosevic will concede many points, but he will be in 
a fairly good position to control the post-war evolution of events. 
Indeed, having filed charges against NATO for war crimes 
already, he will even be able to counter demands that he face war 
crimes tribunals with full agreement, provided Bill Clinton and 
Tony Blair also go on trial. Milosevic’s position: let the courts 
judge us all.  Milosevic is in an excellent position to complicate the 
peace. 

So as we close in on the end game, we will be seeing merely the 
beginning of a new chapter in the eternal book of Balkan politics, into 
which few wise men intrude without good reason. We are now finally 
moving to a peace agreement not fundamentally different from 
what could have been achieved in the second week of the war. 
Indeed, had NATO not made Rambouillet accords a take it or 
leave it proposition, something like this might have been achieved 
before the bombing began. As we slouch toward a sullen peace 
which is merely the preface for future warfare, it will soon be time to 
dissect the decisions on both sides that led us to war and then back to 
where we were before the first shots were fired.


U.S. Concedes Important Point in Kosovo  2209 GMT, 990523

While movement toward a negotiated settlement in Kosovo appears to 
have slowed significantly, with each side weighing and perhaps 
misjudging the other’s resolve, it has not altogether stalled. In an 
important concession to Belgrade, U.S. Secretary of State 
Madeleine Albright said in an interview on CBS’s "Face the 
Nation" that, following a negotiated peace settlement with NATO, 
some Yugoslav troops may be permitted to remain in Kosovo, 
though they would be limited in number and authority.

This step back from NATO’s demand that all Yugoslav forces 
withdraw from Kosovo is a necessary element of any negotiated 
settlement in Kosovo and may be an indicator of progress toward 
reaching that settlement. On one level, Belgrade can not and will not 
accept a settlement that leaves it no official politico-military presence
in Kosovo. This would be tantamount to surrendering the province to 
foreign conquerors and, but for lines on the map, would be 
indistinguishable from Kosovo independence. Belgrade will not 
abandon Kosovo without a fight.

On another level, NATO actually needs Yugoslav forces to stay in 
Kosovo for a negotiated settlement to succeed. The international 
security presence envisioned by the Group of Eight will take time to 
gather, time to organize, time to deploy, and time to gain familiarity 
with the province, let alone control over it. In the meanwhile, NATO 
needs a force to maintain order in the province. It certainly can not rely 
on the KLA to do this – not without acknowledging that it is NATO’s 
intention to create an independent Kosovo under the leadership of the 
KLA guerrillas. Instead, as the Western allies did with German troops, 
officials, and police in the immediate aftermath of World War Two, 
NATO will have to rely on the forces it only recently bombarded in 
Kosovo to keep the province from spinning into chaos. 



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