Cord Magazine No.5

interviews | opinions | news | comments | events May 2004

Editor in Chief: Biljana Stepanovic editorial@cma.co.yu Assistant Editor: Rob Dugdale r.dugdale@cma.co.yu Editorial: Milan Culibrk, Dragan Bisenic, Nina Nicovic, Tanja Vujic, Nebojsa Kotlajic, Jelena Grujic, Maja Vukadinovic,Vesna Musulin, Zoran Milosavljevic, Slobodan Kostic, Dragan Novakovic, Ron Davies, Nebojsa Grabez Editorial Assistance: Mary Gibson and Mark Pullen Translators: Milos Milosavljevic, Igor Adzic, Zoran Milosavljevic Photo: Danka Ninkovic, Dragan Milosevic, Djordje Popovic, Zoran Sinko, Latif Adrovic Photo Agencies: FoNet, Tanjug and Beta Special Thanks to: Austrian Embassy, Austrian Chamber of Commerce, Austrian National Tourist Office, FIC, Lou Chantal, Miomir Brkic, Rade Rakocevic, Russian Cultural Centre, Embassy of Tunisia, Dubravka Zverzhanovski, Nikola Nikolic Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Marketing Director: Jasmina Kamidzorac j.kamidzorac@cma.co.yu Advertising: Milos Krstic m.krstic@cma.co.yu Office Manager: Sonja Rados sonja.rados@cma.co.yu Publisher: Zoran Cadez z.cadez@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Director: Ana Novcic ana.novcic@cma.co.yu Printing: Politika AD CorD is published by CMA (Consulting & Marketing Agency), Krunska 24a, 11000 Belgrade, Serbia & Montenegro.

Phone: +(381 11) 30 33 020 Facsimile: +(381 11) 30 33 535 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved Š CMA 2003/2004

08 REALISM IN GOVERNMENT Mr. Miroljub Labus Serbian Deputy Prime Minister

MORE PACE NEEDED Mr. Walter Schwimmer Council of Europe Secretary General

14 18 POTENT ISSUES H.E. Mr. Barend van der Heijden Ambassador of the Royal Netherlands Embassy

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contents 22 HARD CHANGES Mr. Erhart Busek Special coordinator of the Stability Pact

32 TIME TO ACT

H.E. Mr. Kalman Mizsei UNDP Regional Director for Europe and CIS Countries and Assistant Secretary General to the UN

44 USING OPPORTUNITIES Mr. Hartmut Mayer Daimler Chrysler representative for SCG

40 EXPENSIVE SKYLINE Mr. Sinisa Nikolic Director of the Belgrade Agency for Building Land

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MAKING THE GRADE H.E. Mr. Carlos Rodriguez y Quezada Ambassador of Mexico

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SERBIAN ART IN THE METROPOLITAN MUSEUM

WHITE-WATER RAFTING Rafting on River Lim and Ibar

72 FRATERNAL ART The Italian Cultural Institute CorD | May 2004

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The New Government

No Assurances for Investment The Serbian authorities have not taken the advice of foreign donors and investors. Instead of setting conditions that would reassure foreign investors, the government is busy appointing its own staff as directors of public companies.

Misa Brkic

would enable free enterprise to work unfettered.

One of the requirements is to simplify the complicated administrative process in order to register ime is not on the side of the new companies. The rest of the lengthy list new Serbian government; includes: change the law on civil courts; pass a law there is not enough of it, and on concessions; stop blatant outside interference in the government is acting too slowly the securities law; urgently adopt a law on value in making the crucial decisions necadded tax; endorse international accountancy stanessary to improve the population's dards; reform real estate policy; overturn the living standard: one of its key manistate's monopoly over construction sites; and reorfesto pledges it made during the election campaign. ganise telephone companies. The government has, The new ruling coalition has been in power for so far, shown no readiness to meet the requiretwo months, and has showed eagerness only in crements of foreign investors who have already ating the conditions for unquestioned rule, while pumped almost two billion US dollars into Serbia's doing very little to encourage free enterprise and economy, and, more importantly, are prepared to fair competition in a free market. Reforms remain invest several hundred million more. The state's so much empty talk, easy promises made during silence on this matter can the election campaign, proving right all the critics The government has spent most of its time only be a very bad sign.

Unfortunately, there are who describe the governin office appointing its own party cadre as more bad signs. For examment as anti-reformist. directors to major public companies, ple, a large budget deficit The government has having ignored objections that most of has created a new rift spent most of its time in office appointing its own them do not meet the professional standards between the government and business companies. party cadre as directors to required for these jobs.

In an effort to allocate major public companies, additional resources to cover the budget deficit, whilst ignoring objections that most of them do not which accounts for 5% of GDP, the government meet the professional standards required for these has introduced a very unpopular increase in taxajobs. An excellent example of such 'promotion' is tion on certain products. the appointment of a restaurant owner from central The tariff on cigarettes went up by 2.9 dinars, Serbia as director of Serbia's railways. making Philip Morris and British American It has been a long time since international Tobacco very unhappy, and forcing them to walk financial institutions in Belgrade - notably, the out of the tobacco plants in Nis and Vranje. By World Bank, the UNDPR, the International implementing such an increase, the Serbian govMonetary Fund and The European Bank for ernment had breached its contract with the two Reconstruction and Development - asked the new foreign partners, which stipulated that it would government to put before parliament the new laws keep a uniform tax policy in the tobacco industry crucial for economic reform; which would in turn guarantee for five years, and thus ensure a predictable and security in terms of international investment and donations. safe enterprise in this sector. The fact that less The government has still offered no evidence that it underthan a year after the contracts were signed the stands the suggestions made by foreign investors, listed in this new government changed the rules does not bode year's edition of the 'White Book', and their expectations of the well. The answer is not short-term solutions to new authorities. Foreign investors, including the world's major solve long-term problems, and a serious governbanks and companies, have asked the government not only to ment cannot afford this kind of behaviour.• provide political stability but also economic conditions that

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Interview Mr. Miroljub Labus, Serbian Deputy Prime Minister

Realism in Government

By Milan Culibrk, Photo Dragan Milosevic

I don't think I have tied my hands with the statement promising a departure from the government in the event of a non-democratic candidate winning the elections, since a democratic President is vital if Serbia is to attract foreign investments and kick-start the economy. I have only pledged that I am going to do everything in my power to secure the victory of a democratic candidate, said Mr. Miroljub Labus.

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erbian Deputy Prime Minister Miroljub Labus confirmed that his party G17 Plus would leave Prime Minister Vojislav Kostunica's Government if Serbian Radical Party leader Tomislav Nikolic wins the presidential elections on 13 June, 2004. Labus said that crossing this line was unacceptable for G17 Plus, explaining that a democratic government could not operate without a democratic president. In his interview with CorD magazine, Labus pointed out that the parties from the democratic bloc should not squabble amongst themselves during the election campaign, since 13 June was the day that would determine which way Serbia was going.

"Confrontations between parties in the democratic bloc is what Serbia needs least at the moment, because it is very important that we elect a democratic president", said Labus. "Otherwise, the country could fall into isolation again. I am disappointed that we failed to reach an agreement with the Democratic Party to support a joint candidate at the

Interview

Interview

presidential elections. My open-door policy failed to gain significant support, but I still believe there is a chance to organise a good campaign that could help a democratic candidate win these elections".

Haven't you tied your hands with the statement that G17 Plus will leave the Serbian Government if Serbian Radical Party Candidate Tomislav Nikolic wins the elections?

No. I have pledged that G17 Plus and myself will lead an active campaign to support the democratic candidate at the elections. Without such a candidate there can be no political stability, and thus no foreign investment, no jobs and, consequently,

We never said the various parties were united behind one political programme, but Serbia requires a government and I think that what these parties have in common is also good for the country. more crime. Hence, I don't think I have tied my hands with the statement promising to depart from the government in the event of a non-democratic candidate winning the elections, since a democratic President is vital if Serbia is to attract foreign investment and kick-start the economy. I have only pledged that I am going to do everything in my power to secure the victory of a democratic candidate.

You said that the door was still open to the Democratic Party for co-operation. What does this mean, exactly?

As long as I am President of G17 Plus the door will be open to the Democratic Party. Whether this will lead to some kind of co-operation is out of my hands.

To what extent do the differences in policy between the parties constituting the government, especially SPS, hinder the activities of the Serbian Government?

The Government is not in danger of falling apart and we have all accepted the conditions under which it was constituted, even the Socialist Party's support to the minority government. There has not been a change in economic policy and I don't think the Government would have taken a different political course if SPS were out of the picture. SPS support was not in conflict with our demands. Secondly, we said at the very beginning that the government was made up of four parties with diverging political programmes that had certain elements in common and the objective was to implement the goals they had agreed upon. We never said the various parties were united behind one political programme, but Serbia requires a government and I think that what these parties have in common is also good for the country.

Previously, you spearheaded the Yugoslav economic policy as Deputy Prime Minister. Now you are in a similar position as the only Deputy Prime Minister in the Serbian Government. In what way,

I still believe there is a chance to organise a good campaign and to what extent, has the international community changed its attitude towards Serbia compared to the period immediately after the 5th October changes?

The main difference is that the country faced more difficult problems than today. On the other hand, the international community was more willing to support Serbia back then. I am confident, however, that we are going to see improvements in the economy this year, bar any major shocks.

Can the government offer some guarantees on that?

We are working on this and have started a dialogue with the trade unions. This is a very important step. Not only will the SocialEconomic Council resume its activities through these negotiations, but we are also on the way to signing a social agreement with the trade unions that should define the basic tasks and responsibilities of all parties involved, as well as priorities in economic policy.

Are there obstacles, other than co-operation with the Hague Tribunal, to establishing a better relationship with the international community, especially international financial institutions, and, if so, how do you plan to resolve these problems?

There are political and financial obstacles, but the essence of politics is to overcome them. I feel there was a lot more co-operation with the Tribunal than Hague officials claim, but we have not received certification from US Secretary of State Colin Powell, which has had an impact on the policy of international financial institutions. Since the US administration has adopted a policy of neither voting for our proposals, nor lobbying against them, it is still possible to gain support for financial arrangements between the international financial institutions and Serbia-Montenegro.

However, to do this we must work at overcoming those obstacles.

Similar problems also exist in our relationship with the European CorD | May 2004

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Interview IMF and the World Bank at the end of April with the aim of getting a green light and forging a deal.

However, I would be satisfied with an amber light because we would be free to co-operate with other international institutions, namely the World Bank and the European Union.

Do you expect any problems in the implementation of the agreement with the Paris Club, since the reduction of another 15% of our debt, worth 600 million US dollars, is hinged on successful realisation of the three-year arrangement with the IMF? I believe that both parties will do their best to realise the arrangement signed in May 2002, but I am not sure whether the state will have the freedom to act upon its own accord after that, or if there is going to be a new arrangement with the IMF. No one can give any assurances at this point, but there is mutual interest in continuing implementation of the current arrangement and the current negotiations are dedicated to this goal.

We have started a dialogue with the trade unions Union. Brussels made it clear that the EU expects SerbiaMontenegro to harmonise the domestic market and co-operate with the Hague prior to preliminary discussions on European partnership.

Can Serbia manage without the IMF and is an agreement with this institution possible, bearing in mind that they are requesting a significant reduction in the state budget deficit, from 3.6% to 2.5% GDP? Serbia cannot manage without the IMF, but the former government failed to reach an agreement on two occasions in 2003. We are close to an agreement, however, and our goal is to get a green, or at least anamber light in the next round of negotiations with the IMF. We are close because some additional assets that were not included in the state budget will reduce the deficit, which is the main concern of the IMF. On the other hand, we have to convince the IMF that the government is capable of managing the state, that the elections will yield a democratic president and that the situation in Serbia is stable. If the IMF calculates that the risk over here is too high, they will simply withdraw. It is true that the IMF want the budget deficit reduced to 2.5%, but this is a demand that even Germany cannot meet, which is a sign that the IMF is monitoring developments both in the economy and in politics. The IMF's estimate that there is a political risk in Serbia has given them reason to pay special attention to the 3.6% deficit, which is otherwise not particularly high.

What would an "amber" from the IMF mean?

To make things clear, we are going to the Annual Meeting of the

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When will the new Serbian Government try to resume negotiations with the London Club to reduce our 2.5 billion dollar debt, which has been a major barrier towards new commercial loans?

Finance Minister Mladjan Dinkic, Central Bank Governor Radovan Jelasic and I plan to talk to London Club representatives at the annual meeting of the IMF and World Bank in Washington. We await a reply from the London Club to the proposals of the former government that were put forward more than 6 months ago. And, we need to assess the attitude of commercial bankers to this issue. I think we have a reasonable chance of gaining an arrangement similar to that with the Paris Club, which has written off 66% of our debt.

There are political and financial obstacles, but the essence of politics is to overcome them.

I feel there was a lot more co-operation with the Tribunal than Hague officials claim, but we have not received certification from US Secretary of State Colin Powell, which has had an impact on the policy of international financial institutions.

How much foreign investment do you expect this year?

There was an influx of one billion dollars of foreign capital into Serbia last year. 1.2 billion was raised through privatisation but almost 200 million was paid to buy Telekom Serbia shares from the Italian partner. Unfortunately, this does not mean that we received one billion dollars of investment. There was much less and the money that went into the budget was spent to meet other needs. That is precisely where the problem lies: the foreign capital was not used to boost economic development. There will be less income from privatisation this year, but we expect more foreign direct investment than last year -

Interview somewhere between 400 and 500 million US dollars. FDI is one of the main reasons why we have to draft the new Serbian Constitution as soon as possible and put it into effect. The current Constitution forbids foreigners to own land in Serbia and no one will build new production capacities under such conditions; particularly as other countries in the region give green field land to investors without charge. FDI is crucial for modernising our economy and boosting exports, which are a key prerequisites for servicing the foreign debt. The very size of the debt is not the biggest problem, because its share of the GDP has fallen from 140% in 2000 to 70%. The problem is that servicing the debt will require around 20% of export revenue in 2007, which is why Serbia must not miss the opportunity that existed during the last decade, when we were isolated in the midst of global economic expansion. The world is entering a new investment cycle after falling into recession in 2000 and it is crucial that Serbia opens its doors to foreign investment this time round.

IMF want the budget deficit reduced

What is happening with the free trade agreements?

Free trade agreements with all countries except Albania and Moldova have been ratified and their implementation is under way.

We have resolved the problems that existed with Bosnia and Herzegovina.

There has been some speculation that the Serbian Government would modify some customs rates along with taking non-customs measures to protect the national economy.

What does this mean in practice?

We cannot change the customs rates, but we will strictly implement thet standards our exports to all foreign markets are subject to. The customs authorities have already started to implement these measures, especially with regard to the import of textile goods, keeping precise accounts of the value of imported goods, and taxing them accordingly. We are also working with the Ministry of Agriculture to qualify national laboratories and companies to issue certificates of origin, which are necessary for exporting domestic products to the EU market.

This will have to include an agreement between Belgrade and Podgorica on some common institutions at the state union level. As the authorised representative of the Serbian Government what will you press for in harmonisation negotiations between the Serbian and Montenegrin governments?

I am realistic. I have inherited an action plan that has to be carried out and what I think about it is not an issue anymore. The plan was adopted as a legally binding document and I will discuss with Montenegrin Deputy Prime Minister Miroslav Ivanisevic what can be done. However, we are not only talking about harmonising customs rates for 56 agricultural products, but also about setting up institutions at the state union level that will monitor export. Moreover, the EU expects us to lead a common economic policy - including exports.

How will the government face the challenge set by the biggest Serbian state-owned companies that need to be restructured prior to privatisation?

We have started to tackle the problem with the Ministry of Trade and are currently analysing the results of steps taken in 66 companies that have been placed under a special economic regime. The cases will be dealt with individually, and the Ministry of Trade will have to recommend appropriate measures for each of these companies.

G17 Plus members were criticised earlier for championing an economic policy that was way too liberal. Now they are criticised for supporting state interventionism. What has caused this sudden change?

Well, these critics would have scolded the US Government for raising currency issue and lowering tax rates after September 11th. Yet, these steps by the US administration and the Federal Reserves rescued the US economy. Fighting recession is not state

I believe that both parties will do their best to realise the arrangement that was signed in May 2002, but I am not sure whether the state will have the freedom to act upon its own accord after that, or if there is going to be a new arrangement with the IMF. interventionism, but a rational response to the current situation, and we can only discuss whether taking a certain set of measures will help fight recession or not. The market alone can never drag the economy out of recession without government led economic policy that will boost production. We simply have very little room for manoeuvre. The money from privatisation was spent last autumn and the economy has to be helped to reduce labour costs.

The reduced budget will have to be compensated elsewhere and the logical step is to raise taxes and levies on luxury products.• CorD | May 2004

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Interview Mr, Walter Schwimmer, Council of Europe Secretary General, visited Belgrade on the anniversary of the admission of SCG to the Council of Europe

Interview

More Pace Needed

The direction is good but you should be moving faster. The improvement should be accelerated in the fields of law, the elimination of corruption and the functioning of the State Union administration. These are the priorities

By Dragan Bisenic, Photo Latif Adrovic

W

alter Schwimmer, Secretary General of the Council of Europe (CE), the oldest post-war European institution, visited Belgrade and Podgorica on the first anniversary of the admission of the State Union of Serbia and Montenegro to that organisation. On 12 April, 2003 the Committee of Ministers of the CE voted to admit Serbia and Montenegro to the Council of Europe at the very moment that Serbian Prime Minister Zoran Djindjic was assassinated and a state of emergency was declared

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in Serbia. In spite of opposition by some countries to the admittance of Serbia and Montenegro, because the state of emergency led to curtailment of freedom of speech principles and sow some human rights violations, SCG was unanimously admitted.

One of those who helped to remove obstacles to admittance was Walter Schwimmer. "My objective was the admission of Serbia and Montenegro to the CE during my mandate. I am proud that that objective has been realised," said Mr. Schwimmer in his interview with our magazine.

Could the situation in Kosovo and Metochia evolve in an even more dangerous direction?

Of course it could. I would not exclude that possibility. And therefore the position of the international community must be extremely firm. Kosovo has only one perspective - the perspective of a multiethnic Kosovo - a Kosovo where people, who have been living there for centuries, have the right to continue to live there in peace and tolerance. This position of the international community will not change. First and foremost, the CE insists that the European standards already in effect in SCG, and which are based on the Convention on Human Rights, the European Convention on the Prevention of Torture and

It is absolutely unacceptable that cultural and religious sites, which have been in Kosovo for centuries and which, I repeat, are a part of European cultural heritage, were destroyed for political reasons.

Improvements should be accelerated in the fields of law, the elimination of corruption By sheer coincidence, his visit took place following the Kosovo-Albanian pogrom of Serbs and the razing of centuries-old Orthodox Christian Monasteries in Kosovo, by Albanians. Consequently, a part of our conversation was addressed the situation in Kosovo. “That is unacceptable‌ Europe was shocked by the violence and I would like to express my deepest sympathies to all those who lost loved ones or suffered damage to property. KFOR and UNMIK have an important role in confronting such criminal violence, but also in establishing trust. Hence, it is our firm position that, first, all those responsible for the events that took place should be delivered to the hands of justice and, second, all those who have been subjected to violence, whose property has been damaged, should be compensated. A very big effort has to be made so that the destroyed cultural sites can be restored.

Kosovo contains sites of common European cultural heritage. It is absolutely unacceptable that centuries-old cultural and religious sites in Kosovo, and which, I repeat, are a part of European cultural heritage, were destroyed for political reasons. In this connection, I requested UNMIK, UNESCO and the European Commission to do everything possible, within the framework of the independent international commission for the cultural heritage of Kosovo and Metochia. The final decision concerning the realisation of this proposal will be made in cooperation with the authorised institutions, in accordance with Resolution 1244.

Interview

Interview

Inhuman or Degrading Treatment and Punishment, and the Framework Convention for the Protection of National Minorities, are entirely implemented in Kosovo. Second, the CE blueprint for the decentralisation of Kosovo must be put into effect. That will mean the level of the participation of local government in decision-making will be legally regulated, thus creating conditions for further upgrading.

What is your view of the relations within the State Union of Serbia and Montenegro?

From the outside I do not perceive any particular problems. On the other hand, there are certain indications of instability but they can be overcome in cooperation with the international community. I would like such cooperation to continue in the future. The State Union is our unique relevant partner.

How far has SCG come in fulfilling its obligations with respect to the CE? I will be completely honest. The progress regarding the fulfilment of SCG's CE membership obligations is not as fast as we would like it to be. On the contrary, it is too slow. I believe that everybody understood the political difficulties that existed in Serbia during the past year. However, the new Government is in office now, the institutions of the State Union are functional and so is its parliament. We believe that the State Union Court has to be inaugurated as soon as possible - not in the interest of the CE but in the interest of the citizens of Serbia and Montenegro. The obligations that had been undertaken by the State Union by its joining the CE are not primarily in the interest of the CE but in the interest of the people of Serbia and Montenegro and must be honored.

In general terms, are we moving in the right direction? How much time will we need to achieve what is expected of us?

The direction is good but you should be moving faster. The improvement should be accelerated in the fields of law, the elimination of corruption and the functioning of the State Union administration. These are the priorities.

CorD | May 2004

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Interview

Interview You have mentioned the new Serbian Government. What are your expectations from it?

We will discuss all the afore mentioned issues with Prime Minister Kostunica. I have known Mr. Kostunica since the time he was the President of FRY. Right after his election he visited the seat of the CE in Strasbourg. I think he is a man devoted to the rule of the law, which is one of the three principles, up on which cooperation within the CE is based. I believe that now is the time for the new Government to start working in the interest of the people of

The progress regarding the fulfilment of CE membership obligations is not as fast as we would like. On the contrary, it is too slow.

Serbia; and together with the Government of Montenegro, in the interest of the peoples of SCG.

What kind of support from the CE can SCG expect on its way towards the EU? Membership in the CE involves procedures to monitor the fulfilment of obligations of membership. That is a big step toward EU membership. The values and principles of the CE - democracy, the rule of the law and the honouring of human rights - are the political criteria for membership of the EU. The more SCG follows these principles the closer it will come to membership of the EU. That is the key. In addition, doubts concerning the willingness of SCG to cooperate with the The Hague Tribunal should also be addressed. Active participation is expected in the struggle against certain regional problems in Europe, such as sex trafficking, white slavery, organised crime, corruption, money laundering and so on. Cooperation with neighbouring countries is also important.

When you compare the violence that recently took place in Madrid and the violence in Kosovo, do you see any similarities and connections?

I do not see any direct connections. Maybe some of the participants in the events are connected but that would be pitiful.

Terrorist acts in Madrid could have represented an encouragement to some. Nonetheless, violence cannot be the means to achieve any political goal. Violence and terrorism cannot be justified by anything. We have to confront violence and terrorism decisively, everywhere - including Kosovo.

In Kosovo, are we faced with simple violence, or do you think it should be called terrorism?

It is a matter of definition. Factually speaking it is terrorism! It is terrorism because it manifests itself through killing and torturing innocent people, and damaging and destroying their property.

Thus, there is no essential difference between these terrorist acts and those in Madrid. Another similarity is that both acts were well organised. Those who are responsible must know this: we will not tolerate or accept it; we will do everything to them to bring justice.

What is your comment on the reaction of the Serbian Government to the terrorism in Kosovo?

I think that it was a very good reaction. The violence aimed at Muslim places of worship was condemned. The reactions of the

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Government, in an extremely difficult situation, were exceptionally good. The dialogue with Pristina must be continued and it has to include a determination to create a multiethnic Kosovo.

Is a multiethnic Kosovo possible after all that has happened?

I believe that there is no other alternative. As I have already said, the only European perspective is a multiethnic Kosovo.

Within Serbia-Montenegro or not?

It is too early to talk about that. Naturally, the status of Kosovo will be on the agenda some day and Europe, Kosovo and SCG should not be afraid to talk about the final status of the province. Also, the point made by Javier Solana needs to be underlined - violence is not the shortcut to any final status!

Is the idea of cantonisation acceptable to Europe?

I think that we should talk about decentralisation and not ethnic division. That is not the way to the multiethnic Kosovo we envisage. Decentralisation offers political and administrative solutions and the CE has very concrete plans with respect to that.

How long are you prepared to wait for the implementation of European standards in Kosovo?

The sooner standards have been reached and decentralisation realized, the sooner we will start serious discussion regarding final status.•

Interview

Interview

H.E. Mr. Barend van der Heijden , Ambassador of the Royal Netherlands Embassy to Belgrade

Potent Issues 18

CorD | May 2004

Interview

Serbia and Montenegro should look for its comparative advantages and focus on quality products for export that are in line with international standards. With your, and people of good will and intelligence, this should be possible.

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he Netherlands is a country well known for both its tradition in trade, agriculture and water management, and its promotion of international law. With this in mind, His Excellency Ambassador Barend van der Heijden, of the Royal Netherlands Embassy in Belgrade, can point out the necessary changes in Serbia and Montenegro that can make the country attractive to foreign investors.

ment for foreign investments is of great importance. Above all, Serbia and Montenegro should look for its comparative advantages and focus on quality products for export that are in line with international standards. With your intelligent, good willed people, this should be possible.

How big is the influence of Dutch companies in Serbia and Montenegro?

Every economy can be attractive for those who are willing to take certain risks, but in general Dutch businessmen are not prepared to take enormous risks. Dutch companies usually keep some distance until the environment provides reasonable chances for profit. There is certainly Dutch interest in Serbia and Montenegro and there is room for further commercial relations. We are now in a phase where Dutch consultants assist in developing business plans or masterplans. The next step is to attract Dutch investors that will further strengthen the relationship. The agricultural sector is an interesting sector in this regard. We had a very strong connection in the past, particularly with Vojvodina, and I still think there is a huge potential for working together.

Given the strong economy of the Netherlands and its experience in export and trade in genSo what is the role of eral, what new basis can your embassy here, surewe use for the export of ly you provide some sort merchandise from Serbia of guidance or consuland Montenegro to other tancy for anybody that countries, in order to wants to invest here? strengthen the economy We basically explain here? the situation to the Dutch Every economy can be attractive for those businessmen and inform Creating a stable basis who are willing to take certain risks, but for trade is a complex them about areas of issue. You need to address potential interest. We also in general Dutch businessmen are not different issues at the have a unique proprepared to take enormous risks. Dutch same time and that cannot gramme that I am very companies usually keep some distance be done overnight. First of proud of, that enables until the environment provides reasonable all, the image of your companies from the chances for profit. country abroad is an Netherlands and Serbia important element that and Montenegro to set up has to be addressed. Of course this has a lot to do joint ventures. The Dutch Ministry of Economic with the past. I think that many people, including Affairs support the initial phases of setting up such entrepreneurs in my country, are stuck with the joint ventures through grants. Currently we have image of the Milosevic period and are therefore still some 25 projects amounting to 16 million Euros. reluctant to do business with your country. Those There is no other country with such a programme of us who live here know that it is different, seribringing companies together on commercial basis ously different, but it is a fact to be dealt with. and supporting their initiatives financially.

Secondly, political stability is of importance. I do not want to be interpreted as a pessimistic critic, What kind of legal remedies can Dutch busibut this element should not be underestimated. A nessmen take here to protect their interest if they businessman looks for a secure environment to decide to invest? invest his money, this means a democratic country The fact that your government is upholding busiwith a legal system in place and less bureaucratic ness administration law together with a business complications. Improving and enabling an environadministration agency shows that the economic

Interview

By Nina Nicovic, Photo Danka Ninkovic

CorD | May 2004

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Interview

Interview

Dutch company usually keep some distance until the environment provides reasonable chances for profit

Besides The Hague what are the other critical points of diplomatic relations between the Netherlands-SCG? First of all I have to say that concerning "the Hague" there seems to be widespread misunderstanding. You were rightly pointing out in the beginning that the Netherlands has a tradition of underlining the importance of international law.

What is your view on cleaning up the Danube and its signifTherefore the city of The Hague is willing to host icance, and what would a clean Danube mean for this region? several international institutions dealing with You have at least two aspects, I would say. One is the enviinternational arbitrage, like the, ICTY. The tribunal ronmental issue, with all its aspects, and the other is the transis supported by the internaportation issue. Being fond of Being one who is fond of nature and the tional community, including nature and the environment, I would like to see the cleaning of environment, I would like to see the cleaning of my country and your own. I sometimes feel that the pubthe beautiful Danube sooner the beautiful Danube rather sooner than later. lic here do not realise the rather than later. But of course, But of course, one has to be realistic, the econo- importance of the independone has to be realistic, the economy has to be able to support my has to be able to support these kind of activities. ent trials in the tribunal for the further development of these kinds of activities. The your country.

The world together agreed that the World Bank has developed a plan for cleaning the river and past has to be dealt with, your country and mine Dutch companies are very interested in participating in the exeincluded.

International law and tribunals to implecution of that plan. A clean river is of enormous advantage to ment those laws are there to protect us all. many sectors of the economy, like agriculture. And then we I don't think there is much that hinders the relahave the ships. The Netherlands has a lot of experience in the tions between our two countries, except perhaps shipping industry. We are well known for our many waterways, the element of organised crime.

The export of our ports, our dams and polders. Transportation over water has organised crime from a variety of countries in this been part of our life and economy for centuries. We can offer region is a source of major concern.

Fortunately, expertise in this field, for instance in making master plans for we have established good cooperation with your Serbian ports and their maintenance. authorities to fight this scourge. However, it cannot be denied that there is an interrelation between the Considering that the Netherlands hase one of the most modactivities of organised crime abroad and the image ern mobile telephone structures in the world, are there any of a country. We are then back to the beginning of hints of cooperation on that level, between Dutch companies this interview, namely the importance of image. and local ones?

The image of a country is so important, for promoProbably in the future, yes, but to date there has not been any tion of positive aspects of society, its strengths and cooperation, basically because you have a situation in which it is culture can do so much good. • very difficult for foreign companies to come in. team in the government is aware of the need to provide the environment I mentioned earlier. Otherwise, investors will simply stay home or go elsewhere. It should not be forgotten that many other countries in the same region have already established business relations with Dutch companies and that convincing arguments are needed to attract Dutch investors.

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CorD | May 2004

Interview Mr. Erhart Busek, Special coordinator of the Stability Pact

In 2003, four countries of the Stability Pact `family` managed to attract more than 1 billion euros in investments - Bulgaria, Croatia, Romania and SCG, whereas the other 4 countries - Albania, BiH, Macedonia and Moldova, received about 1 billion euros combined.

Hard Changes

By Dragan Bisenic, Photo Dragan Milosevic

The Serbian and Montenegrin reform process has been delayed. Now, with the new government in place, I hope we will see an increased speed of reforms.

n some aspects Serbia and Montenegro has been very successful, like in the easy registration of new companies. For foreign investments, it is true that Serbia and Montenegro has not attracted the same level of investors as - lets say the Czech Republic or Poland, but within Southeast Europe, Serbia and Montenegro is not bad at all, says Mr. Erhart Busek.

The level of direct investment is not so high in SCG as was expected, industrial production has declined and unemployment is growing. Are these the outcomes expected in the first part of transition, or, do you see some specific mistakes in managing the economy here?

The phenomena you are describing are not unique to Serbia. They can be observed in all transition economies. I do not think there were mis-

Interview

I

22

CorD | May 2004

What are the most important achievements of the Stability Pact during recent years?

It is where our mandate is. We have strongly improved co-operation amongst the governments of Southeast Europe. Prime Ministers are calling upon each other on a very regular basis. Organised crime is combated in a cross-border fashion, as it should be. We have brought a piece of European normality to the Balkans. I think, we can claim credit for that in the Stability Pact. We have also an increased regional ownership, with regional centres in Bucharest to fight organised crime, in Sarajevo to fight corruption, in Belgrade to collect Small arms and the latest addition in Skopje for migration and refugee issues.

What is your perspective on reform in Serbia and Montenegro?

The Serbian and Montenegrin reform process has been delayed. Now, with the new government in place, I hope we will see an increased speed of reform. takes as such. In some respects Serbia and Montenegro was very successful, like in easy registration of new companies. For foreign investments, it is true that Serbia and Montenegro has not attracted the same level of investors as - lets say the Czech Republic or Poland, but within Southeast Europe, Serbia and Montenegro is not bad at all. There are four countries which in 2003 managed to attract more than 1 billion euros in investments -Bulgaria, Croatia, Romania and SCG, whereas the other 4 countries of the Stability Pact `family`- Albania, BiH, Macedonia and Moldova were at about 1 billion euros combined.

Last year the Stability Pact concentrated on the fight against criminality. Are you satisficed with the results, and, what is the focus for next year?

This priority will stay also in 2004 and 2005. It is a huge challenge. I am satisfied with the level of readiness and activities regarding international

What we now have to improve is the capacity of the administration, I mean police, courts etc, to really implement what has been agreed politically. cooperation. What we now have to improve is the capacity of the administrations, I mean police, courts etc, to really implement what has been agreed politically.

What are the most important problems SCG has to deal with?

I think the fact that for quite some time a lot of political institutions were not filled had a paralyzing effect. I am glad that the new Kostunica government has managed to cut this Gordian knot.

The situation in Kosovo escalated last month.

The Commander of the southern wing of NATO, Admiral Gregory Johnson claims that this was

Interview

Interview

an organised attempt at ethnic cleansing. What do the leaders of Kosovo have to do to change the climate in the province, and, did these events surprise you personally?

I cannot speculate about who instigated the riots.

Lets wait until the investigation reveals some facts. I was surprised, yes. I had expected some manifestation of discontent later in the year, towards the elections. But let me make one thing clear, there is never under any circumstances a justification for such violence with loss of life. I condemn it.

The international community takes a 'softlysoftly' approach towards criminal elements among Albanian politicians, which isn't the case with Croats, Serbs or Bosnians. What are the reasons for this?

I do not see any distinction along ethnic lines, as you seem to insinuate. The various mandates of the international community are very different from one country to another. Therefore, the methods are also different. I would warn against such generalisations.

What are the most successful Stability Pact stories with regard to developing the process of regional ownership?

We have about 10 activities, which were initiated in the Stability Pact framework and whose ownership has now moved to Southeast Europe. In addition to what I mentioned before, I could add the Sava River Treaty, the free trade agreements and the joint activities to attract investments with the regular ministerial meetings in Vienna.

Southeast Europe is the geographic region of the next round of enlargement. This was made clear by the Thessaloniki Summit in June 2003. I cannot give you a date. I do not believe in dates as such. Reforms and actions are the key elements and then the date will become clearer. Not the other way round.

Concerning regional co-operation, what is happening in the energy sector, and, do you have any view about stories circulating about EFT which is major regional provider of electro energy?

The countries have agreed to accept the EU legislation in this field as a guideline for their reforms, and they want to liberalize the electricity market by 2005. A similar approach for the gas sector is underway. These are very ambitious plans and it will sometimes be hard to make the necessary changes, as was the case in western Europe. But at the end of the day, there is no alternative.

Trading energy is also cheaper than installing new capacities.

Once more regional cooperation will create win-win situations for all parties involved. - The case and situation of EFT I do not know.

There is a lot of speculation about the future of the Stability Pact. What really is its future and its role in regional integration?

We are an instrument to help the countries on their way to European and Euro-Atlantic integration. So, the goal is not membership of the Pact, but eventual membership of the EU. For the time being, we are still very much needed. How much

How do you evaluate the institutional performance of SCG in maintaining reform and its ability to meet European standards?

The EU Commission has just published the latest Stabilisation and Association report. I would strongly recommend that you read it and share it with your readers. It is a very comprehensive analysis.

longer depends on progress made. Also, we are not alone. The EU and NATO are other driving forces and so are the OSCE and the International Financial Institutions. The special thing about the Stability Pact is its coordinating role between the governments of the region and the donor community. In Southeast Europe it is very often forgotten or overlooked how unique this instrument is. Using a world-wide comparison, such a mechanism only exists for Southeast Europe and the governments in Southeast Europe are accepted as full partners in this.•

What does the enlargement of the EU and the addition of new member states mean for the Balkans? Is it encouraging, or a barrier to future extentions? Could you predict a date when SCG might achieve membership?

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Regional cooperation will create win-win situations for all parties involved

CorD | May 2004

I could add the Sava River Treaty, the free trade agreements and the joint activities to attract investments with the regular ministerial meetings in Vienna.

“White Book�

Photo Marko Cvetkovic/FIC Fokus

T

he Council of Foreign Investors in Belgrade, in its latest publication, has suggested which laws the Serbian government should adopt by summary procedure, in order to improve the economic conditions for investment. It contains ten urgent propositions and several suggestions. These detail how to entice foreign investment, so badly needed by Serbia for its economic recovery, and how to ensure that existing companies in the market can do business unhampered.

Foreign investors see the unstable political situation as the greatest potential threat, and the new government, formed with the support of the Socialist Party of Serbia, doesn't look very reassuring to them. The basic issue foreign investors are interested in is whether the government, headed by Prime Minister Vojislav Kostunica, will carry on with the reforms started by the previous administration following the democratic changes of October 2000.

The Council of Foreign Investors doesn't expect a dramatic rise in GDP over last year's 1.5 % rate; although the government expects agricultural and industrial production to rise significantly. It has also been estimated that foreign investment this year will not exceed an overall sum of $400 million. An anticipated rise in purchasing power, exceeding growth in industrial production,

Mr. Christoph Greussing, FIC President and HVB Bank CEO the law on labour should be brought into accord, and reminded the Serbian government, once again, of the organisation's many objections to the arduous admin-

Ten Urgent Propositions According to the White Book, by the Council of Foreign Investors, the basic issue foreign investors are interested in is whether the government, headed by Prime Minister Vojislav Kostunica, will carry on with the reforms started by the previous administration following the democratic changes of October 2000. could result in an inflationary situation. As far as Serbia's foreign debt is concerned the 2006 instalment payments are expected to be greater than 25% of total exports. Without a notable rise in foreign investment and a more efficient economy, a long-term rise in exports is impossible, which in turn makes the repayment of debts more difficult.

The council has recommended that the governments of both Serbia and Montenegro carry on with harmonising their two economic systems, as discrepancies in the markets cause many problems for foreign investors. Serbia and Montenegro have effectively discontinued this harmonisation, because they can't reach a compromise agreement on the most sensitive products.

The law on concessions is mentioned by the White Book, since it would make foreign investment in Serbia much easier, with the aim of simplifying future projects concerning public procurement.

It is suggested that a separate working group or agency be formed.

The Council has also suggested that all stipulations concerning

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CorD | May 2004

istrative obstacles faced while registering a business.

Foreign investors also want a simpler procedure specifying who is in charge of what, as well as clarification on Value Added Tax (VAT), the introduction of which has been postponed until the beginning of next year.

Foreign investors see the unstable political situation as the greatest potential threat. The new government, formed with the support of the Socialist Party of Serbia, doesn't look very reassuring to foreign investors Apart from this, the Council expects urgent adoption of the law on bankruptcy, so that the procedure for selling loss-making companies is made more rapid and efficient, and stops companies existing at the expense of their creditors.• B.S.

Privatisation slow-down

Privatisation

hammering out privatisation

This year, Vojislav Kostunica's new government of Serbia is counting on 16.4 billion dinars - around €234 million - of privatisation income to boost the economy. The lion's share of this is expected from the sale of the state's share in three major banks - Jubanka, the Bank of Novi Sad and Continental Bank - with a lesser, but equally important, share of the total to come from privatisations of socially-owned companies.

By Milan Culibrk , Photo Dragan Milosevic

O

ver the course of recent months the privatisation process in Serbia has suffered significant slow-down, if not completely ground to a halt. So far this year only a handful of sociallyowned companies have gone under the hammer and been handed over to private businessmen, as opposed to the first quarter of 2003, when as many as 211 companies were sold at auction.

According to executive director of the Privatisation Agency, Branka Radovic, income from tender sales for the first quarter of 2004 has yielded 206 million dinars. Krusevac-based Zupa Chemical Industries was sold company Vektra M for €3.8 million, but the agency was forced to annul the sale in April because Vektra M had failed to submit necessary bank guarantees for the investment pro-

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CorD | May 2004

gramme, worth €6.48 million.

Income from company auctions currently stands at 439 million dinars - around €6.3 million. If this tempo is maintained throughout the year, the annual income from privatisation will amount to a measly €25 million, which equates to 6.5 per cent of the sum recouped by the previous government from the single sale of the Nis Tobacco Industries' plant to Phillip Morris.

For proof of a dramatic privatisation slow-down, one need only look at the 2002 statistics, which show that of the 210 companies offered for sale 184 were successfully sold. The success rate for privatisation auctions in 2003 stood at a whopping 80 %, while in

February of this year only 34 of the 69 companies on offer were sold.

A similar trend can be seen with regard to tender offers. In 2002, 12 companies were successfully tendered, and in the first quarter of 2003 four firms Rumaguma, Crvenka Sugar Refinery, Zitopek and Frikom - were all successfully tendered. In contrast, the two tender sales offered so far this year have proved unsuccessful.

Serbia's new coalition government, headed by the Democratic Party of Serbia's Vojislav Kostunica, is hoping to recoup 16.4 billion dinars from privatisation this year, which equates to €234 million at the current rate of exchange. Serbian Finance Minister Mladjan Dinkic - deputy leader of G17 Plus and former National Bank governor - expects the bulk of that

During the previous election campaign suspicions arose that the vast majority of privatised companies had been sold behind closed doors and citizens now expect the new administration to annul any sale and purchase agreement found to have been conducted in this way. budget income to come from sales of the state's shares in Jubanka Bank, the Bank of Novi Sad and Continental Bank, with a smaller sum expected from the privatisations of other companies.

However, the majority of economic experts are convinced that the successes of the previous two years will not be repeated in 2004. In 2002, privatisation income amounted to €350 million, with an additional €380 million coming from investment and social programmes, which was €200 million more than planned.

In 2003, privatisation income stood at €350 million 3.5 times the expected figure.

The biggest problem for the new administration is that the most profitable companies have already been sold. There are no more factories like the Nis and Vranje tobacco plants, sold to Phillip Morris and British-American Tobacco respectively for a grand total of €437 million, without taking into consideration the additional €380 million in investment and social programmes coughed up by the tobacco giants. Beopetrol has gone: sold to Lukoil for 117 million with an obligatory further investment of €85 million; and the cement plants have also been sold.

As a result, not many experts feel that Serbia can match neighbouring Croatia: the destination for an unprecedented $9.28 billion of foreign capital in the past 11 years, of which $1.7 billion came last year alone. The key to this record-breaking investment in Croatia lies in the fact that foreigners invested $670 million of acquired profit in the purchased companies, with investment last year alone amounting to $151 million.

Between implementation of Serbia's Privatisation Law and the beginning of last month, 1,117 companies have been sold for a total of €1.3 billion. New owners accepted the obligation to invest a further €775 million and set aside €270 million for social programmes. More than 20 multi-nationals have participated in this process and, according to former privati-

sation minister Aleksander Vlahovic, the social programmes protected 55,000 employees of large, socially-owned companies that could not have achieved privatisation without prior restructuring.

Speaking at his farewell press conference, Vlahovic said that the restructuring process was nearing completion at Subotica's Sever, the Kikindabased foundry, Sremska Mitrovica's Matroz and Paracin-based Serbian Glass Factory. Once the process has been finalised these companies will be eligible for privatisation.

Among those yet to receive the restructuring treatment are Belgrade's Zmaj, Lola, DMB, Rekord and the Belgrade Wool Plant; Pirot-based 1st May, Novi Sad's Novkabel, Sabac-based Zorka, Loznica's Viskoza and Celuloza; the Ivanjica Carpet Factory, Prahovo's IHP, Baric's chemical plant Prva Iskra, Odzaci-based Hipol, Pancevo's Fertilizer Factory, Smederevska Palanka's Gosa and Railway Car Factory, Friboj's FAP, Subotica-based 29 Novembar, Kragujevac's 21 Oktobar and sugar refineries in Sabac and Cuprija.

A number of financial experts have stressed that the sales of these myriad companies is unlikely to happen this year because the budget has not designated sufficient recovery funds to complete their restructuring.

With a few exceptions among the large socially-

Among companies that could prove attractive to foreign strategic partners is Serbian Oil Industries (NIS)

Privatisation

Privatisation slow-down

Privatisation

The privatisation of a company like Mobtel would last at least six or seven months

owned companies awaiting reconstruction and privatisation - notably telecommunications firm Mobtel - most of the Serbian state's stock consists of unattractive companies that will only yield a profit once bankrupted.

In accordance with EU regulations, the state will have to sell its share in Mobtel's rival Telekom, of which it became the majority shareholder after buying shares from parent company Telekom Italy. The state has also made it clear that it wishes to sell its share of Mobtel. However, it must first settle its dispute with co-owner Bogoljub Karic (BK), and any profit coming from the sale will not reach the state's coffers until the end of the year. Minister Dinkic admitted this recently, highlighting that preparations for the privatisation of a company like Mobtel would last at least six or seven months.

Among companies that could prove attractive to foreign strategic partners are Serbian Oil Industries (NIS) and certain sections of the Serbian Electrical System (EPS). However, both NIS and EPS face major financial problems and redundancies.

The total debt of Serbia's four largest socially-owned companies is in excess of €2.3 billion, with EPS owing foreign creditors €791 million, NIS €772 million, Belgrade Railway and Transportation €484 million, and JAT Airways €312 million. The domestic debt of these firms amounts to €418 million.

A total of 1,500 companies were privatised in accordance with now defunct privatisation legislation through the free distribution of shares. This method attracted buyers for all of Serbia's breweries, almost all of her mineral-water plants, Sintelon, Hemofarm and Soyaprotein, to name but a few. These were amongst the most profitable and economically-viable of Serbia's companies, and many financial experts have described the sales as the disposal of "family heirlooms".

Following distribution, shares were sold at the exchange to the new owners. Currently, Interbrew - that will have to pay €326.9 million, almost 50 per cent more than projected state income for the sales of all banks and companies this year, in order to completely take over Apatinska Brewery; Carlsberg, will pay €110 million for the Celarevo Brewery, of which €53 million will be spent on purchasing

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CorD | May 2004

shares distributed freely; Efes Pilsen, new owner of the Pancevacka Brewery, and Tarket Somer, which has bought Sintelon.

As well as a genuine lack of attractive "merchandise" to offer interested investors, the privatisation process will also be slow to pick up pace for other reasons. Firstly, the Ministry of Economy has begun preparations to amend the relatively new Privatisation Law. According to deputy minister Zora

The League for the Protection of Private Property is becoming increasingly vocal and has interrupted several auctions with their protests.

Simovic, the proposed amendments will be presented to the Serbian Parliament this summer and no later.

Simovic said that the basic privatisation model - the sale of majority capital shares to strategic partners will not be changed, but that there will be certain, significant alterations to the existing legislation.

Secondly, the League for the Protection of Private Property is becoming increasingly vocal and has interrupted several auctions with their protests. They are demanding that de-nationalisation legislation be implemented as soon as possible and that, in the meantime, sales of nationalised property be halted.

The Privatisation Agency's director, Mirko Cvetkovic, was removed in early April and replaced by Branko Pavlovic. Immediately prior to his dismissal, Cvetkovic warned that the expected budget income from privatisation would be seriously imperilled if the pace of the process did not markedly increase.

Speaking shortly after his appointment, Pavlovic said, as his first task, he was planning to organise all activities of the agency within his first 30 days in office. He insisted that the Agency would honour the results of any agreement reached between representatives of the League for the Protection of Private Property and Minister Dragan Marsicanin. However, he warned that he would not accept any disturbances at auctions.•

Interview

Time to Act

By Tanja Vujic , Photo Danka Ninkovic

Mr. Kalman Mizsei, UNDP Regional Director for Europe and CIS Countries and Assistant Secretary General to the UN (within the UNDP), visited Southern Serbia in early April 2004.

H

aving spent three years at the helm of the UNDP Regional Bureau for Europe and CIS, Mr. Mizsei likes to see himself as an "advocate for reforms in eastern Europe and the Balkans, as well as in the former Soviet Union.

Helping them to overcome their historical challenges, no catch up with the developed countries of western Europe, in order to fully integrate with them".

Following his one-day trip to southern Serbia, Mr. Mizsei kindly accepted CorD magazine's exclusive interview invitation.

What was the aim of your visit to southern Serbia, and what are your impressions of the region?

The United Nations Development Programme (UNDP) is working worldwide on a whole range of issues, which deal with the mechanisms for enhancing peaceful and constructive coexistence of populations that otherwise risk being in a con-

An obvious challenge is the issue of whether Serbia and Montenegro are going to remain together in a state union. That is, unfortunately, yet another uncertainty that you have to go through. flict situation. In southern Serbia, UNDP has, for the past three years, been working on making this happen among the local Serb and Albanian population. I have been thinking about visiting this region for quite some time.

It was a very opportune moment to come right after the tragic events of 17th March to underline our commitment to core UN values: those that incorporate the peaceful and constructive coexistence of different populations and assist marginalised and potentially disadvantaged populations.

I must add that in Kosovo we support the return of the Serb and Roma populations. UNDP is very busy in southern Serbia and Kosovo helping minorities, but also the majority population, for this is the only way to create a win-win situation.

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CorD | May 2004

What is your opinion of the situation in Kosovo and Metohija after 17th March?

Obviously, a series of events has occurred that quite a number of people should not be proud of.

Overall, the international community, including the UN and KFOR, has a lesson to learn, since the reality is that we have not protected the people that we were responsible for protecting. I hope that those who administer the peace in Kosovo are drawing their own lessons from this as well.

It is very early to say what the post-17th March Kosovo will look like. There is definitely a rein-

forcement of KFOR forces taking place and UNMIK is also busy drawing its own conclusions.

I understand the Contact Group, as well as the European Commission, are very busy deciding on the steps to be taken.

What are the economic and strategic challenges that Serbia faces?

The key challenge for the new government and their success in serving the best interests of the Serbian people is to really re-energize economic reforms. The economic growth that the country

For you to attract foreign investment you have to have open borders and free trade regimes, and also a credible long-term commitment to unimpeded trade. showed last year is not something that the outgoing government should be proud of. Obviously, the assassination of late Prime Minister Djindjic was a major factor that contributed to this, but in general the economy has stalled.

I think that people in Serbia have not yet reached sufficiently radical conclusions regarding the consequences of the structural and systematic

Interview

I understand that for quite some time the situation in southern Serbia has signified a great success for the Coordination Body that has, for years, been driven by former Deputy Prime Minister Nebojsa Covic and donors. I also understand that UNDP played a prominent role there. The fact that nothing shook the stability of southern Serbia during the very heated period of ethnic violence in Kosovo gives hope that this joint effort has resulted in people learning how to live in peaceful coexistence.

This is the model for the Balkans in general.

Unfortunately, I spent only one day in this beautiful area where people are so hospitable, but I promised to return.

Interview credible long-term commitment to unimpeded trade. There are other compelling reasons for an evercloser cooperation in the subregion, which may pose a difficulty for your country, since it has just emerged from a devastating series of civil wars. It will take time to overcome the mutual suspicion of different people here, but the road to prosperity undoubtedly requires renewed cooperation on an equal basis. It is of vital importance to improve both economic and political cross border cooperation.

There are positive signs of this, but the need strengthening.

Interview

What is the European integration prospect for Serbia and UNDAF signature ceremony, 31 March 2004, Belgrade Montenegro?

An obvious challenge is the (right to left: H.E. Goran Svilanovic, Minister of Foreign Affairs of SCG, H.E. Kalman Mizsei and H.E. Francis O'Donnell, United Nations Resident Coordinator issue of whether Serbia and in SCG and the members of the UN Country Team in Serbia and Montenegro) Montenegro are going to remain together in a state union. That is, unfortunately, yet another uncertainty that you failure of the economic system of the former have to remedy.

Only then you will be able to conYugoslavia, and you are still not distancing yourcentrate on this vitally important question. The selves from it strongly and radically enough. There positive example that I would like to draw the is still no clarity when it comes to the future of attention of both the public and the policy makers socially owned companies, still no clarity on propto is that of Slovakia.

In 1999 Slovakia got a new erty rights, bankruptcy regulations, etc. There is reform-oriented government that placed the no strong awareness of the need to privatise the European integration issue to the right, left and economy in a bold manner, and there are not centre of its agenda.

Under the leadership of the enough incentives and support for the establishPrime Minister and a couple of ministers, and in ment and expansion of small enterprises. an extraordinary short period of time just two Obviously, political stability is of utmost imporyears - they were able to orchestrate very energetic moves towards integration.

Serbia has enormous human potential and Here in SCG there is an additional challenge, that capacity. Its public administration capacities of compliance with the expectations of the internaare not much below those of some of the tional community in regard to cooperation with the accession countries. On the other hand, ICTY1, which is in the best interest of Serbian people, and which should be realized fully and unwaI also see certain obstacles. veringly. It is also important for European integration to be placed, in a very, very clear and energetic tance, and only a stable situation can attract more manner, at the absolute centre of the government's direct foreign investment. I am very pleased to say agenda. I believe that three to four years would be that, at the level of Prime Minister and Deputy Prime enough to catch up with Croatia, for example.

Minister, there is a very strong determination to boldly move forSerbia has enormous human potential and ward with reforms. This, hopefully, is going to happen after the capacity.

Its public administration capacities are presidential elections, and I am very eager to offer a helping hand. not much below those of some of the accession countries. On the other hand, I also see certain What is your impression of the sub-regional issues present obstacles, e.g. a radical far-right party in a strong in the western Balkans? position in the parliament, national difficulties When one speaks to investors - even in terms of Romania, with the ICTY, and the problems that have to be which is a fairly large country, let alone in the successor states resolved regarding the future of the Serbia and of former Yugoslavia - for example, Procter and Gamble or Montenegro state union.

Johnson and Johnson do not want to invest. This is simply And yet, I think that these difficulties can, and because they only have access to the customers of one small must be overcome, so that you can concentrate on country, and they wish to access the entire market without any things that matter to your children and the future obstacles. Therefore, for you to attract foreign investment you generations of this wonderful nation.• have to have open borders and free trade regimes, and also a International Criminal Tribunal for Former Yugoslavia

1

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CorD | May 2004

Interview Mrs. Milka Forcan, Vice-president of public relations Delta Holding

Serbia’s success story

"Our plans are ambitious, but realistic. Delta Bank has a solid reputation amongst international bankers and does not need additional capitalisation. However, we are willing to talk to a serious strategic partner belonging to the elite circle of the top ten world banks". Milka Forcan, vice-president of public relations, Delta Holding.

D

elta Holding is a Serbian-based company that has far exceeded national boundaries in terms of business plans and activities. Delta is one of Serbia-Montenegro's largest companies and the income leader among private enterprises. Nevertheless, Delta's management are not content to stop at that.

Interview

Your company was founded in 1990, and started developing, despite this not being a good time for business in Serbia-Montenegro?

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CorD | May 2004

such, the world market is by no means an unknown entity to Delta. Today, our group comprises five welldeveloped subsidiaries: Delta M, Delta Bank, Delta Insurance, Delta Sport and Delta MC. "Under the common trademark of Delta Holding, our group provides a wide range of services and is involved in various activities. We are involved in retail and sell under our own “Maxi” brand. We are also involved in the import-export sector and act as representatives of foreign companies. We also pro-

Mrs. Milka Forcan - Delta has become majority shareholder in 12 companies in Serbia "Delta Holding was founded in Belgrade in 1991; the company may be based in Serbia, but its standards are international, and we have implemented world business and organisational standards. By drawing on the experience of the world's most successful companies, we have built an efficient and adaptable workforce.

"Our employees have been trained abroad and worked in the international business environment. As

duce chemical goods, in addition to providing banking services and insurance."

As a whole, Delta Holding turned over €650 million last year and is projecting a total of €800 million for 2004. On what have you based these ambitious plans?

"Our plans are ambitious, but they are also realistic. Delta Holding has a total of 12,300 employees,

3,000 of which were added to our workforce last year. This is something that no other company in Serbia-Montenegro has managed to achieve.

"Our ambitious investment plans are viable, thanks to the sound reputation we enjoy with the international banking community, as has been clearly demonstrated by the recent signing of a long-term credit arrangement with Hypo Alpe Adria Bank, to develop our Maxi chain of supermarkets.

This credit of â‚Ź 25 million is the largest loan a foreign bank has issued to a company based in SerbiaMontenegro in the past 15 years.

"The European Bank for development and Reconstruction gave a very positive evaluation of our business plan and has also agreed to extend credit for the expansion of Maxi. We are close to signing a deal worth â‚Ź 45 million. By the end of 2005, Maxi will boast 100 supermarkets nationwide.

Once this has been achieved, our strategic goal is to expand our retail business abroad."

Does Delta Bank work with national and foreign banks in a competitive environment?

"Competition is good for everyone and all indicators show that Delta Bank is at the very top, whether you're looking at the balance structure or private savings. We have proved particularly successful in the field of modernising the national banking environment. We were the first to issue MasterCard's credit cards in Serbia-Montenegro and the first bank in the Balkans to introduce Visa Chip technology. Delta Bank is always a step ahead in developing online banking services and developing the POS network.

"Our bank also has plans to cooperate with foreign partners; although we do not need additional capital because we have enough of our own. However, we are aware of the fact that leading world banks will come to SCG sooner or later, which is why we must find a strategic partner. We are only willing to talk to potential partners from the circle of the world's topten banks. Delta Bank deserves a strong, strategic

The European Bank for development and Reconstruction gave a very positive evaluation of our business plan and has also agreed to extend credit for the expansion of Maxi. partner and it meets all requirements in terms of capital stock, number of depositors, and its share of the gross volume of national transactions. More than 20 per cent of national payment transactions go through Delta Bank. We have more than 550,000 clients, last year alone we boosted the economy by 35 billion dinars and the citizenship with 3.5 billion dinars."

Up until now Delta Bank has only issued short-term credit. What kind of loan policy do you envisage for the future?

"That policy was designed to avoid jeopardizing the harmony between source and placement. We are currently negotiating with several foreign banks and investment funds in order to secure long-term

Miroslav Miskovic, Delta Holding President

DEFINING NATIONAL INTEREST "Miroslav Miskovic, founder and president of Delta Holding, insists that the country needs to define its economic interests and pay more attention to what is said by profitable companies paying the highest levies and boasting the largest employment registers.

We expect the new administration to define national interests in the economic sector. For example, it has to be determined whether or not Serbia should have a national banking system. A variety of alternative solutions have been implemented across the region: Croatia's national banking system has been significantly reduced; Slovenia and Greece have strong national banking systems, while Bulgaria doesn't have one at all.

If the government wants a national banking system, the finance minister and other state officials have to put more emphasis on the development of domestic banks. As yet, no such officials have paid official visits to these banks or praised their progress; nobody has discussed strategies to attract investment of the $3.5 billion that sits in Serbian homes as idle capital.

Also, the administration's authorities should decide whether it wants a national chain of retail commerce, of which there are excellent examples in neighbouring Croatia and Slovenia. For instance, Croatia's Konzum trading centre and Slovenia's Mercator have been crucial to their domestic economic development. There is even space for two competing chains, but the issue is whether such an enterprise is desired.

Clearly, I am opposed to a regulated economy, but every country has its national interests at heart. It seems that only here in Serbia we are not aware of that".•

sources of finance. Once a deal has been struck, we will be in a position to offer long-term loans with better rates of interests to clients and, in particular, small and medium-sized enterprises."

Has Delta Holding already gained experience of the international market?

"Yes. Our company has been doing business beyond the borders of the nation for over a decade. In 1993 we founded Delta International in Moscow. The company's principal activity is in the trade of cellulose [plant matter used in the production of paper, artificial fibres and plastics]. In 1996 we became majority shareholders of the Baikol Cellulose Factory and exported most of the annual production of 180,000 tonnes to China. The factory was later sold and the capital invested into production capacities at home. In 2000 we bought a majority stake in another cellulose factory, this time in Pitkjaranta on the European side of the former Soviet Union. The factory has an annual turnover of $150-200 million, depending on the price of cellulose on the world market. We sell around 300,000 tonnes of cellulose every year".

"Delta Sport has been a fixture of the demanding Russian market for over a decade and has an annual turnover of $100 million in the countries of the community of independent states. We have been Nike official distributor to the former Soviet Union since 1994, and later gained that status in other countries of South-East Europe. There are currently 71 Delta Sport outlets in Russia and the Ukraine. We are also manufacturers of a section of Nike products, and produce 30 % of the two million units sold in Russia every year. Nike has entrusted its brand to us and that is great CorD | May 2004

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Interview Has Delta dropped plans to open a supermarket in Slovenia - an idea that caused a lot of commotion in the Serbian media and the among general public?

"Delta was interested and we were prepared to enter the Slovenian market a year ago. However, a lot of time was lost during the search for an appropriate location and, in the end, no suitable site was found. The reluctance of the Slovenian authorities to accommodate our plans was probably one of the reasons the project failed. After that we directed our attention towards expanding our commercial network in SCG. Our development policy has been somewhat amended and Maxi will focus on strengthening its position on the domestic market until the end of next year. After that we will spread to neighbouring markets."

Delta Headquarter recognition for any company. It is also a huge responsibility; because we must adhere to their high international standards, while remaining successful and profitable.

"Delta Sport has also signed an agreement with Intersport CIS the largest multi-brand chain in Europe. We are expecting a lot from this partnership. Delta Sport invests more in marketing than is the norm in Europe. We are sponsors of Russia's national football and ice hockey teams, reigning Russian football champions Locomotive Moscow, basketball club CSKA and a number of individual athletes."

Will Delta Bank be able to satisfy the National Bank of Serbia's request that a full list of shareholders be submitted by a specified deadline?

"As far as Delta Bank is concerned, that data is already in the hands of the National Bank of Serbia they have this information. However, we will respond to the request and re-send the data before expiry of the deadline set by the National Bank."

How does Delta Holding plan to maintain its position in the market and move forward, despite the nation's economic situation not being too rosy and foreign competition growing?

"Efficiency, high-quality human resources and continued innovation gives us a competitive edge.

Our bank, supermarket chain and PR activities clearly show that we are implementing the very best of what international expeYou agreed to open a chain of Delta was interested and we were prepared to rience has to offer. The hypermarkets in Serbia with Cora. same applies to insurenter the Slovenian market a year ago.

Why did that business agreement fail? ance, where we have However, a lot of time was lost during the "That arrangement failed because assumed a pioneering search for an appropriate location and, in the of differing approaches to the implerole in educating the citiend, no suitable site was found mentation of our business dealings, zens of SCG with regard principally the pace of implementato life asurance and other tion. We wanted to open the first hypermarket in Serbia with this forms of insurance; as well as later-life insurance, partner and we even bought the construction site in New within which Delta's pension fund is an exclusive Belgrade. However, we hit an impasse when it came to agreeing novelty on the domestic market". on the speed of commencing the project."

"Pundits have hailed our human resource development and customer service departments as the Rumours abound that you will strike a deal with Croatia's model for how these sectors should be run.

Agrokor. Is that true, and, if so, what kind of agreement are we Therefore, we do not fear future domestic or foreign looking at? competition. We are ready to compete with leading "The information that surfaced in the press raised a lot of public international companies, with our activities based interest, but also some inaccurate interpretations. A meeting with on these developed business models and principles.

Agrokor representatives did indeed take place, but encounters such The company is confident of further business sucas this are common amongst representatives of large commercial cess in 2004 - a year that Delta Holding has dubbed chains. Suffice, to say there was talk, but no concrete agreement."

"The Year of Intense Investment".• To date, how many companies has Delta bought in the process of privatisation, and which sectors of industry do they come from?

"Delta has become majority shareholder of 12 companies in Serbia. Some of them deal in commerce and some are manufacturers and retailers. Among these are Pekabeta (Belgrade), Namateks (Subotica), Podunavlje (Apatin) and Bazar (Novi Sad) ."

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CorD | May 2004

Interview Mr. Sinisa Nikolic, Director of the Belgrade Agency for Management Land

Expensive Skyline

Interview

Belgrade lacks an adequate green field site for a hotel and we have encountered problems with previous owners of sites. At Slavija we have the Mitic site. Belgrade City has invested around â‚Ź7.5 million for development of the site. We were close to finding an investor for it two years ago, but we were forced to suspend negotiations because of objections raised by previous owners.

By Biljana Stepanovic, Photo Dragan Milosevic

T

he recent increase in demand, signifying that Belgrade is worth investing in because of cheap building sites and profitable sales, compelled the government to declare a decrease in the price of land unnecessary because they received responses to all advertisements.

According to Sinisa Nikolic, director of the Belgrade Agency for Land Management, this is not an ideal situation and a review of prices is essential in the coming period.

The budget projection for Belgrade this year was 33.5 billion dinars, but this was reduced by 2 billion dinars in the national budget. You maintain that this will significantly decrease the city's investment in infrastructure, even though it is not a substantial portion of the city budget.

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CorD | May 2004

It represents more of a moral than a financial blow. The city has undergone continual development in the past three years, with projects undertaken that have been overdue for decades. Hence, we expected more favourable circumstances than last year, or at least no worse. In a sense the city is being penalised, even if the decrease amounts to no more than a dinar. This suggests that the Republic is indifferent to the development of its capital city. The development of the capital influences the country's development, as all major building investments have been undertaken here.

The first major foreign investor was Mercator from Slovenia, followed by the Greek Veropulos.

Interview Over 15 foreign companies are investing in Belgrade, more than in any other part of Serbia. On the other hand, over half the construction projects in Belgrade have been assigned to companies from other cities, so the funds will flow into those cities.

As we are about to begin three major long-term projects, we anticipated that the Republic would accept Belgrade as a partner with which it could promote investments of national benefit.

As we are about to begin three long-term major projects, we anticipated that the Republic would accept Belgrade as a partner with which it could promote investments of national benefit. large number of the sites have already been assigned and we are now struggling in our attempt to re-claim them. Appeals are being lodged and legal proceedings taken against the city, as individuals refuse to give up the land.

Another problem is that our predecessors emptied the re-location fund, so we were not able to relocate people and market the properties. Under these conditions, the Agency can only assign sites that do not have previous owners who could reclaim the land. We are now practically restricted to New Belgrade and several locations the city purchased in the past after re-locations were carried out. A semi-open land market is currently in operation and I am hopeful the new government will finally define land ownership, which would make matters easier for us.

Land ownership was one of the major difficulties mentioned by foreign investors, as they didn't want to build on land that wasn't theirs.

What is the current situation with the introduction of the possibility of a 99-year lease?

While the "regime of use" was in force it was more difficult for investors to grasp this concept.

The new law that was introduced to offer a 99-year lease is something they can, of course, under-

Denationalisation is taking on the aspect of a Pandora's box we have no choice but to open stand. This is because long-term leases are common throughout Europe. The question then arises whether foreigners should be allowed to purchase land. If Serbia should again encounter hyperinflation, as in 1993, it is evident that land could be bought very cheaply. Reciprocal agreements are taken into consideration all over the world. If we are not able to buy land in Rome or Paris, I don't see why we should allow it here.

You stated that the 'Limes' Hall will be ready for normal use, even if not completely finished before the 'Diamond Ring' tournament. What is the reason for this delay and who is to blame?

The delay was a result of the procedure adopted to select a contractor. The law pertaining to public purchases allows those whose bid is not successful to file complaints against the decision. There were also mistakes in conducting the process to collect tenders. Things could have been sped up if invitations to tender had been published earlier. It is an enormous task. There are all kinds of construction specialists working at the same time. And, though we wanted to make sure the works would be finished before the tournament, the delays caused by the tender procedure made this impossible.

Interview

Yet, this year you anticipate receiving an income comparable to last year's. Opinions are divided and some say that, as Belgrade is the capital, any fees have to be high. In contrast, others state that not all investors can be compared to Mercator and Veropulos in their ability to meet the high prices, so you are eliminating the smaller investors.

The city authorities were led by supply and demand principles and even though they have something approaching a monopoly in land ownership, they have endeavoured to implement policies to reflect the existing market situation. These are as follows: last year we had over 550 applications from investors for various land sites.

However, we were only able to find 150 appropriate locations, not because we didn't want to market more, but because of inherited problems. A

Did the city authorities intervene and allow those whose tender was successful to begin work regardless of the appeals filed and, if so, could it have been done sooner?

The city intervened at its own risk. It is not easy to have your integrity questioned and face the possibility of being accused of breaking the law in order to satisfy public demand.

CorD | May 2004

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Interview Politics should not be an issue and political intolerance should not interfere with the work.

Interview

Partially through loans, as Belgrade has been loan-free since last year and is ready for new commitments The city of Belgrade has three major investments planned - the metro, ring road and waterworks. Discussions over the metro in the past have not been fruitful. What are the realistic plans and deadlines for these projects?

For the metro, 150 million Deutschmarks was spent on the city's only station at Vuk monument. If part of the money had been spent on a modest station and the rest for a further kilometre of track to the city centre instead, we would have had an easier job now.

Also, ten years have also been spent deciding whether to build a 'light' or 'heavy' metro.

Yes, time completely wasted. The crux of the matter is an ongoing disagreement with a lobby group, behind which lies large financial interests, each claiming the advantages of one or the other system. It is up to the authorities to speed up decision making and not wait another ten years. We are on the verge of signing an agreement with Spanish company "Ineko" for the design of the metro and we expect them to complete it by the end of the summer. This will mean that by autumn we will be able to collect bids for planning the project, and by spring of next year, issue construction tenders. Provided all that happens according to schedule we will be able to commence work next autumn.

How do you plan to raise the money, as it is apparent that the city cannot finance this project on its own?

Partially through loans, as Belgrade has been loan-free since last year and is ready for new commitments. We expect a large proportion from the major world and European banks and a loan from EBRD, which approves loans with a 10-year period of grace and favourable repayment conditions. This project is due to continue for a minimum of 15 years and we are hoping it will be seen as a national one, with the Republic participating actively.

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CorD | May 2004

A frequent comment of foreigners visiting Belgrade is that the city does not have a hotel of international standard, except for the Hyatt. Are there any indications that Belgrade will get any such hotels?

Denationalisation is taking on the aspect of a Pandora's Box that we have no choice but to open.

This was the problem with hotels - on the one hand, Belgrade lacks an adequate green field site for a hotel. On the other hand, we have encountered problems with previous owners of sites. At Slavija, for instance, we have the 'brown field' Mitic site. Belgrade City has invested around 7.5 million for development of the site. We were close to finding an investor for it two years ago, but we were forced to suspend negotiations because of objections raised by previous owners. The site is still bare and the previous owners now have an opportunity to find investors. This is being stalled not for the reasons we had assumed, but due to the fact that there is more than one inheritor and they cannot reach an agreement. In the public interest, the city finds it difficult to allow this site to remain unused for years, even if it is privately owned. The

The question of whether foreigners should be allowed to purchase land has arisen.

If Serbia should again encounter hyperinflation, as in 1993, it is evident that land could be bought very cheaply. city is losing income from not collecting the taxes it could recoup if there was a hotel there.

Decisions will have to be reached about the actions that should be taken.

What is the situation with the sale of existing hotels?

There is a good chance of two hotels getting new owners - hotel Jugoslavija in new Belgrade and Metropol in the city centre. They are both owned by Dunav Insurance, who wants to sell them. We expected this to happen a few months ago, but the governmental elections took place and the agency for privatisation didn't invite tenders. I have spoken to a number of companies including the Hilton and Meridian and expect tenders to be invited soon.

There is the possibility of a good hotel being built in Rajiceva Street, the turning point of the trolley buses. However, it has not been possible to convince residents there to sell their flats. We suggested that the "Expensive Skyline" principle that exists in New York be introduced. A person owning a small house of 40 square metres in the city centre would have to pay tax for a 20-storey building, i.e. what could be built on the site. This suggestion was not approved, probably due to social reasons.•

Interview

Mr. Hartmut Mayer, Daimler Chrysler representative for Serbia and Montenegro

Interview

Using opportunities

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CorD | May 2004

As Daimler-Chrysler auto company, we don't have certain possibilities that private companies might have. We play by the rules and that's it. And if the rules don't allow us to work, then we go. However, we are still here, so that's a sign that the rules were such that it was possible to work.

M

ercedes Benz - along with Daimler Chrysler - needs no special introduction. As one of the most respected and famous automobile brands in the world it has a unique position in any present or future car market around the globe. For that reason, we asked its representative in Serbia and Montenegro, Mr. Hartmut Mayer, how, despite all the political and economic turbulence in the country, they have maintained its impeccable status; and where they see possibilities for improving the local automobile industry.

When your company first came here, considering Serbia and Montenegro is known for it's troubled political and economic situation, what were your real expectations of how Mercedes would be positioned as a leading brand?

By Nina Nicovic, Photo Danka Ninkovic

When we first came here, we were Mercedes Benz and today, we are Daimler Chrysler. So let's talk about Mercedes. It has been a well-established brand in the country for many years, both on the commercial vehicle and the passenger car side - and with a very good market share. We had very good

We play by the rules and that's it. And if the rules don't allow us to work then we go. However, we are still here so that's a sign that the rules were such that it was possible to work. connections with individual customers, public customers, and the establishment - as we even have you saw downstairs, limousines that came from Tito's

garage. We went under the assumption that we had been well established for 40 years and that we were going to repeat what we did. There are troubles, and ok, it will take time - five, or six years, but the company, Mercedes Benz, has existed for a hundred years, so we have time to take one step at a time.

What do you think is the real buying power and purchasing capacity of citizens here?

We only see a small part of the overall car purchasing power of the public. If you were talking about the Mercedes Benz passenger car sector, or if you try to give an exact figure, it's impossible. If you try to relate to other markets that also would be very difficult, but it will give us some sort of idea. Last year, we sold two hundred and fifty Mercedes Benz passenger cars in the country, whereas in the European Union, a local dealership is supposed to

Maybe there is a lot of money there, but people are saying "Ok, maybe I will not buy a Mercedes Benz passenger car, I will buy something that I need more now", or, "I will save my money and wait for better times".

When your kind of company sense an underlying crisis within a country, what is the first thing you notice?

I think we should differentiate between a longterm crisis situation, like the embargo, from 19972000. Of course, we feel that we are politically, commercially, and directly affected by something like that because we can't operate like we want to. On top of that, our customers can not work as they would like, and consequently they don't have money. During these times we were legally and commercially hit directly, because we couldn't freely import things that were connected with the US. We couldn't sell the M class here, because there is more that 25% of US content, and so prohibited from the US side. There again, we had other problems that arose from the Serbian side, with everything to do with currency export and customs clearance.

How did you cope with it?

You use the possibilities you have, but there was a time when you had little possibility, for instance, when it was the white list. We would have been

We are in the 'cooperation' business everyday forced to close the company after two or three further months of that embargo, since it was from both sides - a partial embargo from the Serbian side and the complete one from the western side. So, in this situation you can't cope, you have to close. This isbecause, as Daimler-Chrysler auto company, we don't have certain possibilities that private companies might have. We play by the rules and that's it. And if the rules don't allow us to work then we go. However, we are still here, so that's a sign that the rules were such that it was possible to work.

Considering other activities - like sponsorship in various fields, what sort of projects can we except your company to engage in next?

As a matter of fact, there are so many possibilities that it is very difficult to say two years in advance what we want to do. So, yes, we want to do it. We have a certain budget, but decisions are more on a case by case basis. The Impressionist exhibition was a big success; it is a very good example of what can be done with a restricted budget, because obviously we can't put millions into events. With this in mind, we are on the look out for another opportunity like this.

Interview

sell one thousand units in order to be viable. That means, for instance, a city with fifty thousand or eighty thousand people will have a sales minimum of three to four hundred Mercedes Benz passenger cars.

If you look at European Union countries like Germany, Austria, and France, then you see what stage we are at in Serbia. Now, this is the active purchasing power that we see. Maybe there is lots of money out there, but people are saying "Ok, maybe I won't buy a Mercedes Benz passenger car, I will buy something now that I need more", or, "I will save my money and wait for better times". It is a very difficult question, but there is a long way to go.

What sort of cooperation could happen in the future with your company and the local automobile industry?

We have a good relationship with our customers, we give them a car for a very adequate price, and afterwards we help them to keep it on the road, and they transport people or their goods, and CorD | May 2004

45

Interview

Interview

Last year, we sold two hundred and fifty Mercedes Benz passenger cars in the country

that helps a lot - for both sides. So, from that point of view, we are in the 'cooperation' business everyday.

If you talk about taking over, we just 'took over'. This was a joint venture with INEX - a state company, when we started in 1996, and today it's a 100 % auto company. They had a minority share of 49%, so we bought that out, and this means we already have a share in that business, and, at the moment, I believe this is as far as we want to go with takeovers. So we are in the market to 'overtake' rathe than take over business. At the moment, we do not have an industrialisation project here; it's not the time for it, and there's not the market for it either.

There are possibilities to develop into certain segments, for example, specialized vehicles for specific customers and that can be produced in small volumes - a small series, but this is a strategy I don't see at the moment. Therefore, it is for us today a cooperation whereby we support old friends and cooperate with partners from old times, but also await a strategy from their side that makes it possible for us to do more, and we haven’t see that so far.

How would you rate the process of privatisation in the Serbia and Montenegro automobile industry? What do you think? Could it have been handled better?

I can only give a very independent theoretical answer, and say if private business and private investment has any chance in the automobile field it is in the area of supplies ….electronic units... any type of supplies to car manufactures internationally. Daimler Chrysler is buying components at auctions internationally - saying, ok, we want to build that car, so we need a supplier for the different components of the car, a dashboard or wheels, for instance.

And then international companies supply that. They make their suggestions, they show what they can do, and if they obtain such a contract they sell hundreds of thousands of that component for as

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CorD | May 2004

long as the car is being built. I think there is a possibility to build up a supplies industry, because this industry is needed in any case. Also, if organisations want to continue on and build a complete car they need the supplies industry to give them the necessary components. Why not start from there? This depends on political and economic stability, because

I think there is a possibility to build up a supplies industry, because this industry is needed in any case. Also if organisations want to continue on and build a complete car they need the supplies industry to give them the necessary components. Why not start from there? This depends on political and economic stability. a car manufacturer who is choosing a supplier for a certain item has to be sure that this supplier can then also deliver that item. Otherwise, they have a big problem, because if one small part is missing the whole car can't be delivered. To show the relationship - this can be an item with a value of 15 euros keeping a car worth 100, 000 euros back. If a supplier comes and says "I can build that for you", "I can supply that for you", then certain questions are asked - "Who are you?… Are you technologically competent? … Are you commercially stable? … Will you not go bankrupt tomorrow? …. Next is …. Are you, unfortunately, in a country that will come under embargo tomorrow and then you can't deliver? … Or …There is an embargo, and we are not allowed to receive anything from you. This is the perspective.•

600 years as the nation’s capital

Belgrade celebrates...

Belgrade's opulent history was presented over the course of four days. The City Council of Belgrade organised 30 events at various points in the town in co-operation with a number of cultural institutions.

B

elgrade has celebrated six centuries of its state capital status with a four-day festival entitled "Days of Belgrade" from April 16th - 19th, and under the slogan "Centuries to remember - visions to create". Belgrade also celebrated the first mentioning of its name in Slavic documents and the transfer of the keys to the city to Knez Mihailo.

By Maja Vukadinovic

with various interesting snippets of the city's distant and more recent past. Events included exhibitions, concerts, roundtables, book promotions, artistic events and the award-giving ceremony for the Belgrade City Award in 2003.

The exhibition entitled "Views of Belgrade Fortress from the Roman Empire to Baroque" put a spotlight on important historical moments related to Kalemegdan Fortress. Visitors could also take a look at the maps of the fortress, a fitting introduction into the story of the capital's 600 years of history.

The Historical Archive of Belgrade treated an inquisitive audience to a unique exhibition entitled "Virtual Belgrade in the XIX and XX Century", giving a retrospective of all the important events of the city's recent past. The exhibition at the Historical Archive Gallery was meant to display the evolution of Belgrade's urban structure, as well as blueprints that were never put into life owing to circumstances.

A new presentation of Medieval Belgrade aroused much interest.

The project named "Interactive Belgrade of the 15th Century" by Vitomir Jevremovic gave a vivid layout of the capital during the rule of Despot Stefan Lazarevic.

The 3D animation of Belgrade Fortress gathered a large number of citizens at Barutana (Gunpowder House) who had the opportunity to actively participate in the life of Belgrade six centuries ago, with a special projection technology viewed through 3D glasses. The spectators could see the tiniest details, ambience and atmosphere of Medieval Belgrade, thanks to the archeological excavation projects at

The spirit of Belgrade and its history was presented to the audience through various forms of art and a "multimedia mosaic" focused around the history of music in Belgrade.

The four-day festival was a perfect occasion to present Belgrade's opulent history. The City Council of Belgrade organized 30 events at various points in the town in co-operation with a number of cultural institutions. Several thousand Belgraders of all ages enjoyed the happenings, acquainting themselves

Kalemegdan co-ordinated by Dr. Marko Popovic. The idea is to make the project a permanent exhibition at one of Belgrade's museums.

More than 70 boats were part of a regatta that departed from Ada Ciganlija and ended at the point where Hotel Jugoslavija backs onto the Danube River. The glowing procession was lit with torches and other light effects that culminated in a display of fireworks. The program in this part of town closed with a rock concert featuring Bajaga i instruktori, Negativ, Darkwood Dub and the Partybreakers.

The entire celebration of Belgrade's jubilee ended with a musical and theatrical performance at the Jugoslav Drama Theatre entitled "Despot Stefan's Time Machine", directed by Boris Miljkovic. The spirit of the old city and its history was presented to the audience through various forms of art and a multimedia mosaic focused around the history of music in Belgrade.• CorD | May 2004

47

Interview

H.E. Mr. Carlos Rodriguez y Quezada, Ambassador of Mexico

Making the Grade

By Nebojsa Kotlajic, Photo Danka Ninkovic

Interview

W

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CorD | May 2004

According to the ambassador, every country is unique and he treasures wonderful memories of each post.

However, no city has proved quite as unique as Belgrade for the Mexican diplomat who makes no effort to hide his enthusiasm for his post in the capital of Serbia-Montenegro

hen the Conquistadors landed on these distant shores they found towering edifices of curious architecture, a precise calendar system, agricultural crops of corn, tomato and potato and many wonders. Such was the legacy of the ancient Mexican civilisations of the Olmeca, Zapotec, Tolteca, Mayans and Aztecs.

Today Mexico embraces its rich history, while enhancing its global identity. The Central American country boasts an abundance of sights preserved for posterity, vast golden beaches studded with stylish hotels to cater for the country's booming tourist industry, world famous cuisine and an equally famous spirit: tequila. Mexico City is both the highest capital city in the world and one of the biggest cities

abroad. Prior to his arrival in Belgrade to head Mexico's mission to the state union, Ambassador Quezada gained invaluable experience in Mexico's embassies in Havana, Cuba; the U.S. cities of San Diego, Washington and New York; Latin America's

on the planet, with a population of some 25 million.

Mexico celebrates 193 years of independence this year and the 250th anniversary of the birth of Miguel Hidalgo, who declared that independence.

This month CorD interviews Mexico's chief diplomat to the state union, his Excellency Ambassador Carlos Rodriguez y Quezada.

The Mexican diplomat has enjoyed a long and distinguished career representing his country

El Salvador and Columbia; Italy, Lebanon and, most recently, Madrid.

According to the ambassador, every country is unique and he treasures wonderful memories of each post. However, no city has proved quite as unique as Belgrade for the Mexican diplomat.

Describing the city as completely different to anywhere else, he makes no effort to hide his enthusiasm for his post in the capital of Serbia-Montenegro.

Mexico and the state union currently have excellent relations, particularly in the field of culture.

Over the course of the past four years, thanks largely to the Embassy of Mexico, more than 100 promotions, exhibitions and film projects have been organised on Serbo-Montenegrin soil, mainly in Belgrade.

The Embassy of Mexico recently relocated from Cara Dusana Street to the central pedestrianised Knez Mihajlova Street and the embassy's library fund was significantly increased.

Ambassador Quezada said: "When I arrived the Benito Juarez Library, which was founded in 1992, had just 5,000 books. I made an effort and some 3,000 more books written by Mexican authors were shipped from Mexico. Those books are predominantly about my country, its history, culture, geography and politics.

"I am also very proud of the music library that we have named Augustin Lara in honour of a renowned composer. It consists of around 400 CDs".

Our relations are fantastic in many fields, but economy is not one of them. The state union of Serbia-Montenegro must promote its economy in Mexico. work to our fashion emissaries. The embassy chose them and they were guests of Mexico for ten days.

Several fashion shows and exhibitions were organised in the largest and most famous galleries. In return, Klik invited two Mexican designers to present their work during Belgrade Fashion Week".

Last year the Government of Mexico granted several scholarships to students from SerbiaMontenegro.

"There are quite a few programmes and mutual agreements. Six scholarships have been granted, but I have noticed that interest is much higher. There are

Interview

What does the embassy's music library mean for the citizens of Serbia-Montenegro?

"The music library is accessible to all. It is located in the embassy and the usage or, to be precise,

"Last year the Atelje 212 Theatre participated in the prestigious theatre festival in Mexico City. In addition, the music band Balkanika appeared at the Servantino Music Festival - one of the most important festivals in the world. Fashion designer Dragana Ognjenovic and fashion studio Klik presented their

the listening of music is free of charge. If a person brings along a blank tape we will record their favourite music. The collection has not been created for commercial purposes, but rather for home use with the goal of promoting our music".

We hear that a number of our artists - actors, painters, musicians and fashion designers - have visited Mexico recently?

many who are interested and we will work on increasing the number of scholarships to at least nine or ten".

Do Mexican students come here for advanced training?

"Yes, but only briefly. These are mainly those interested in computers, electrical engineering and design. They usually spend a month or two here, sometimes a little more. They normally work in one of the Belgrade-based companies. I am trying to make it possible for them to spend a year or two here".

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Interview

Interview

tain community. The sweaters are proudly worn by the wives of many ambassadors and the money raised by the show went to children, clinics, hospitals and schools".

A long time from now, when you finally retire and return home, what will be the first thing you associate with this country when someone asks you about SerbiaMontenegro?

"The first thing I will associate with this country is kindness, the candour and adroitness of the people and, of course, the history. For me, the most interesting thing about Serbia is all that this country has endured. How its people have fought and what they have gone through to achieve their goals.

"There are also plenty of beautiful cities to remember. Belgrade is remarkable. I often walk the grounds of Kalemegdan Fortress and downtown Belgrade. The city also has a lot of nice restaurants. I have visited other towns and cities too: Topola, for example, and, in particular, Oplenac, which is filled His Excellency Carlos Rodriguez y Quezada with history; I like Novi Sad and Nis is also very interesting.

"In Montenegro I have visited Herceg Novi Is it correct that commercial ties between our and Budva, and Kotor is an exceptionally beautiful two countries are not as well developed as culturcoastal town, as is St. Stefan. Bar is a wonderful al ones? town and a Mexican Primary School has been "Yes. That is the weakest aspect of our collaboopened there. That is the only school on the Balkan ration. Our relations are fantastic in many fields, Peninsula where Spanish is taught from the first but economy is not one of them. That is something grade. It was established thanks to a donation from that both our countries need to work on. The state the President of Mexico Adolfo López Mateos". union of Serbia-Montenegro must promote its economy in Mexico. We are selling our products here: How would you explain the extremely high tequila, beer, wine, et cetera, and I am pleased with interest in the Spanish language among senior school pupils?

"It is a rich language and, above all, it is the lanThe music library is accessible to all. It is guage of romance and love. I am very happy about located in the embassy and the usage or, the interest because it is the best way to promote the to be precise, the listening of music is free of Spanish language".

charge. If a person brings along a blank tape we will record their favourite music.

the fact that people from this country are going on holiday in Cancún, Acapulco, Mexico City and other fascinating places. On average, 2000 people from this country visit Mexico every year. The most popular destination is Cancún, because of the prices, but I would like to recommend Guadalajara - the land of mariachi and tequila".

Until last year you held the Chairmanship of the Diplomatic Club. What does the club do?

"All accredited diplomats in Serbia-Montenegro are members of that club. We have organised a number of events and humanitarian actions. In cooperation with the Lions Club, fashion designer, poet and sociologist Verica Planic organised a humanitarian fashion show. Ms. Planic designed special sweaters carrying the motif of Zlatibor Mountain - she wanted to use this motif of her native Sirogojno village as a lasting reminder of the moun-

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In November it will be four years since your arrival in Belgrade. Have you learnt Serbian, or at least some words?

"Immediately upon my arrival I began taking private lessons and made a genuine effort to learn the language. After two months I gave up. Let's just say that I didn't have enough time".

Those who know you well say that you're quite an athlete. What's your favourite sport?

"I love sports and I do a lot for sports. My favourite sport is American football. When I'm here I like to play tennis, ride a bicycle and walk. I spend a lot of time walking along the riverbank. When I was in Montenegro I saw some beautiful canyons. As I am also the ambassador for Macedonia and BosniaHerzegovina I have had the opportunity to visit rivers and beauty spots there too to do some walking".•

Fund for the Reconstruction & Development of the Faculty of Political Sciences in Belgrade

ACADEMIC Awakening The necessity for the urgent reconstruction and reorganisation of the Faculty of Political Sciences, which "shared the tragic fall of the University", has spurred its management to seek partners in the economic and business community. This is why the Foreign Investors' Council's support serves as a mainstay for networking with potential fund members, and all parties interested in long-term reconstruction.

By Jelena Grujic, Photo Danka Ninkovic

T

Education

his new and interesting situation, which marks a cross-over between economy and sciences, moreover, business and politics, will open a new chapter in the public domain.

This fact is even more impressive , since the longterm investments are not related to turnover projections, but to knowledge and education, and represents a cause supported by the Foreign Investors Council (FIC), which gathers the domestic and foreign business elite of Serbia. A fund has been formed

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to attract investment for the reconstruction and development of the Faculty of Political Sciences (FPS), the educational institution which 'produces' politicans, diplomats, and journalists, and has a very important role in the development of this country.

Recently, on 25th March, the Fund for Reconstruction and Development of the Faculty of Political Sciences was set up. The fund will serve as a managing body for a complex project to modernise FPS. We asked Mr Mijat Damjanovic, Dean of FPS, what had motivated this cooperation between FIC and FPS. "We were drawn by the unique idea of reviving a struggling and ill society, and opening closed society", says Prof. Dr. Mijat Damjanovic, Dean of FPS. The necessity for the urgent reconstruction and

We were drawn by a unique idea to revive a struggling and ill society, and to open a closed society", says Prof. Dr. Mijat Damjanovic, Dean of FPS.

Mr. Mijat Damjanovic, Dean of FPS

reorganisation of the Faculty of Political Sciences, which "shared the tragic fall of the University", has spurred its management to seek partners in the economic and business community. This is why the Foreign Investors' Council's support serves as a mainstay for networking with potential fund members and all parties interested in long-term reconstruction.

"We have understood the message and expectations of the modern business world for the creation of a valid and respected business climate, reliable norms & standards, high quality leaders and public managers, and teams of competent experts with exemplary ethical values. The vision, mission and strategy of a faculty of political sciences in devel-

oped countries corresponds to the country's economic climate, politics, and policy making. It is clear that in Serbia and Montenegro there is a necessity to form a new managerial & governmental elite, creators of public policies and makers of important social, economic and state decisions", explains Mr. Damjanovic As Mr. Christoph Greussing, the President of the Foreign Investors' Council and CEO and Chairman of HVB Bank, stated in his letter of support read at the inauguration, FIC gives full support to the fund, since education is a key success factor for the future of Serbia & Montenegro. At the same time, "The Faculty of Political Sciences has accepted the European higher education challenge and is working towards restoring and further achieving high educational standards", he said.

As the Dean of the Faculty explained to us, the fund will be governed by a steering committee that will manage the content, form and dynamic for realisation of the project. Contracts will be made with the interested members and the fund will be monitored by an outside international auditing agency.

The idea is to have a fund that will provide for the on-going FPS facility repairs and re-building of premises, as well as for the development of new educational programmes and for the amelioration and modernisation of study facilities and teaching equipment.

Domestic and foreign businesses alike will realise the immense long-term value of investing into the fund, and thereby investing into the valuable resources of our country in the future; its future politicians, government officials, civil servants, diplomats, and journalists.

As stated by the OECD, "In the global information societies of today education and human resource development are vital for economic reform, social and regional development and generating new investment. OECD countries consider education a key factor

The Faculty of Political Sciences has accepted the European higher education challenge and is working towards restoring and further achieving high educational standards. of sustainable economic development and within the framework of the Stability Pact/Investment Compact for South East this issue has been highlighted as an important challenge for Southeast Europe."

Thus FIC is signaling to business parties in this country to take an active role in shaping the future of Serbia and Montenegro, and to invest in education, since education is a real and practical investment and forms a growing part of corporate citizenship worldwide.

As to which organisations had so far pledged their support to the fund, we asked Mr. Jerome Bayle, Managing Director of Tetra Pak to explain this.

He thought that the motivation for this support came from diverse domestic and foreign business who were realising the importance of investing into education, and were expressing interest to learn more,

and eventually become members of the fund. Tetra Pak has agreed to support the Fund of FPS. "One of the core values of our organisation is to be a good corporate citizen in our active markets. This means that Tetra Pak's support to the Fund of the Faculty of Political Sciences is an example of our long-term partnership in this country. Thus Tetra Pak 's support of the FPS Fund provides a match with Tetra Pak's core values, whereby Tetra Pak is making a commitment that will provide a benefit to the Faculty, to its programs, and finally make a difference in the educational experience and expertise of students. To contribute to education is to contribute to the future performance of business operations. This is long-term perspective and shows no immediate return, but a clear pledge on Tetra Pak's part to play an

Mr. Jerome Bayle, Managing Director of Tetra Pak active role as a partner and good corporate citizen", said Mr Bayle.

As the Dean of FPS states, the support will be regulated by contract with fund members, and the resources will be used for building a new environment for modern education & teaching, a foreign languages centre, updating electronic equipment, a modern library, a new media centre (TV and radio station), and the faculty's student services.

As the first fund of its kind, and promoted in the presence of Deputy Prime minister Dr. Miroljub Labus, representatives of embassies, leading representatives from international organisations, representatives of FIC, both foreign and domestic businesses, and prominent people from the academic and cultural life of Serbia & Montenegro, it it can be said that support for this project will be versatile and comprehensive.

We can only wait and see whether Belgrade University will initiate similar projects that may bring many other faculties of vital importance back to life. For now, that outcome depends exclusively on individual vision and entrepreneurship. Dean Mijat Damjanovic offers a product that is worth investing in, since this investment will pay off in creating the new business partners of tomorrow which are being educated at FPS today. This proposal was well received. Dean points out that this fund not only opens the doors to business people, but invites them to participate in developing the faculty and raising key institutional capacities.

"I am sure that other academic and educational institutions will attract people who are experienced in recognising right ideas, public interest and public good", adds Damjanovic.

This cooperation may stand as an example of how education and economic interest can mutually benefit.• CorD | May 2004

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Interview

BANKING ON SUCCESS V Mr. Dragisa Lekic, Director of Volksbank Belgrade

By Ana Filipovic, Photo Dragan Milosevic

The presence of some international banks in Serbia at this time is a means of positioning for the future. The sooner one gets here the better the position, meaning that the investment benefits are greater 54

CorD | May 2004

olksbank, whose headquarters are in Vienna, is the fourth largest bank in Austria and its network spreads across central and eastern Europe, including the former Yugoslavia. The bank has subsidiaries in nine countries of the region Slovenia, Croatia, Bosnia-Herzegovina, The Czech Republic, Slovakia, Romania, Hungary, Italy and Malta, as well as Serbia as of last year.

We were the last foreign bank to come to Serbia and we secured our position by buying off the local Trust Bank in May 2003. Many prerequisites had to be met by the bank in terms of economic issues in order to match Volksbank standards. The European Bank for Reconstruction and Development (EBRD) has 14.2 % of the bank's capital while the Viennabased Volksbank owns the rest.

Our intention is to grant loans to small and medium sized Serbian companies, in order to secure their stability in respect of long-term business. These loans will be allowed with the specific purpose of ensuring the financial stability of companies.

How favourable are the conditions for banks in Serbia?

The total balance of payments of Serbia's entire banking sector is lower than that of a single major bank in the region. Any banker will tell you that there are too many banks in Serbia at the moment.

However, we may come to a point where the current banking sector - not related to the number of banks itself - will be inadequate if economic growth takes place. The banking sector's contribution is very limited as far as changing the economic conditions for doing business are concerned, as banks are there to support a progressive economic initiative rather than act as leaders of economic reform.

However, the entire banking business, that means financing production, the population and local selfmanagement, hangs in the balance without economic development. There can be neither econom-

The total balance sheet of Serbia's entire banking sector is lower than that of a single major bank in the region. Any banker will tell you that there are too many banks in Serbia at the moment. ic growth nor a greater working capacity without an efficient economy, in which case, there is no demand for loans either. Volksbank wants to make a contribution, albeit a small one, to keep the resilient components of the market going.

How attractive is Serbia for foreign investors at the moment?

Serbia is the only country in the region still struggling to complete the privatisation process.

Although the potential for enterprise and doing business is substantial, the conditions fall short of the required standards. Coca-Cola and McDonalds come first, banks second, and private entrepreneurs third in a country going through transition.

The first two are already here, but foreign investors are yet to flock to Serbia in their numbers and help revive its economy. On the other hand, Serbia could be an attractive market, with its population of six million, especially in the next five or ten years as economic development is the only option.

How does the current political situation affect banks and foreign investments?

The present political situation is far from encouraging for potential investors and it is

unfavourable for the inflow of foreign capital, a crucial economic factor for a country like Serbia. The banking sector is an important part of all this, because we don't know if we'll have someone to do business with if the political signals are not positive.

What can the country do to improve this climate?

A minimum of common sense and a serious attitude implies being realistic about Serbia's international position and creating a favourable climate that would entice foreign investors. Politicians willing to follow this course must come up with a programme offering long-term stability and pursuing national rather than local interests as a primary objective. Any foreign investor with a brain will read these signals voiced by a serious government, as no one expects us to achieve economic stability in such a short time. There is plenty of money in the world today, but not enough room to invest it.

Hence Serbia is interesting, but it needs to secure economic growth to attract foreign investments.

Interview

Covering the demand for capital, skills and technology with foreign investments would be ideal, but - on the other hand - small and medium sized companies have to emerge and develop, in order to take over the activities of loss-making companies with no future. We also want to offer quality services to our clients in Serbia through our global technology, too, says Mr. Dragisa Lekic.

There are too many banks in Serbia at the moment

Interview mortgage, protecting creditors, founding companies and encouraging exports. It also needs to work on creating a favourable and secure economic atmosphere. Banks are here because no one in their right mind supports Serbia sinking further, as that would contravene common sense.

Serbia could be an attractive market, with its population of six million There were many stories to the effect that foreign banks have come to Serbia to amass money and take it out of the country.

The truth is exactly the opposite, as foreign banks that came here brought long-term financial resources from their headquarters, larger than those secured by Serbian banks as deposits.

These resources are vital for economic recovery and development. I think we have dealt with this negative prejudice about foreign banks and I sincerely believe that foreign banks can help Serbia's economy. That, however, depends on the economic atmosphere in Serbia as much as it does on the banks.

The state can do a lot to improve this atmosphere. It needs to adopt a number of laws, namely those concerning

ABOUT THE VOLKS GROUP Osterreichische Volksbanken AG (OVAG) was founded in 1922 by commercial lending Co-operatives. The bank is the central institute of the Austrian Volksbanken and consists of more than 600 branches. It has more than 5,500 employees and total balance sheet assets of over 30.5 billion euros.

More than 10 years ago, OVAG started to establish subsidiaries in central and eastern Europe. Today, the regional Volksbank network includes more than 80 branches in 9 countries: Slovenia, Croatia, Bosnia-Herzegovina, the Czech Republic, Slovakia, Rumania, Hungary, Italy and Malta.•

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What is Volksbank’s business strategy?

Volksbank's general strategy is to finance small and medium-sized companies, the population and local governance. As far as doing business with corporative clients is concerned, we can say that the bank is focused on both small and medium companies, as well as large ones. The bank has an international desk assigned to multinational corporations. The loan structure is such that one portion is allocated for small and medium-sized companies, and the other for prominent international companies here.

We offer a complete package of products required for doing business in Serbia. We offer loans for current assets and investments with a 10year repayment period. Volksbank Austria gave us a long-term investment of 50 million euros for these activities this year. We grant consumer loans to the population for various purposes, including the purchase of cars, and the repayment period is 36 months for a maximum sum of 20,000 euros, with an annual interest rate of about 10 %. We are not granting loans for buying apartments yet, but could start doing so before the end of the year. We offer loans for refurnishing and expanding flats for a

Serbia is the only country in the region still struggling to complete the privatisation process.

Although the potential for enterprise and doing business is substantial, the conditions fall short of the required standards. period of five to 10 years at a 10 % interest rate.

Volksbank is particularly interested in cooperation with local self-governing bodies, but a number of prerequisites need to be met for this to happen. Local selfgoverning institutions need to come up with clearly defined financial sources for repayment of loans, as well as with projects the creditors will understand.

What is Volksbank’s financial record in Serbia?

We have increased the balance sheet from 1.2 billion dinars to 1.8 billion in six months. Economic deposits have soared from 50 million dinars to 90 million. Local and international payment operations in that period have doubled. The bank has granted loans worth 15 million euros and we have recently opened three subsidiaries to service the population in Belgrade. We are now operating at a loss, which is normal when a bank starts doing business, but we expect to start making profit by the end of the year.

It's a very ambitious plan in the first year of doing business, but it's not unfeasible.•

Bulletin Barrett calls for European commitment from SCG Jeffrey Barrett, head of the European Commission's mission to SerbiaMontenegro, has called on leaders of both Serbia and Montenegro to commit the state to European integration.

Speaking in Podgorica on 1st April, Barrett said that speculations about the date of a potential referendum regarding the future of the state union should be sidelined in favour of a concerted effort to further progress towards accession to the European Union.

Barrett was in the Montenegrin capital to present a report on the stabilisation and association process of West Balkan countries to officials of the republic.

ly responsible for delays in the state union's approach towards the European Union.

"I am convinced it is possible to reach agreement on customs taxes and existing problems do not mean something is wrong with the Belgrade Agreement," stated Mr. Gowan in one of the interviews given to local media.

Svilanovic bows out Goran Svilanovic has resigned from the post of SCG Foreign Minister.

Addressing media after confirming his resignation on 15th April, the

Kostunica Meets Walter Schwimmer On 1st April, Serbian Prime Minister Vojislav Kostunica held talks with Council of Europe Secretary General Mr. Walter Schwimmer on the Kosovo situation and cooperation with The Hague War Tribunal.

Civil-Alliance of Serbia (GSS) leader said: "A few months ago I promised to resign as soon as I was informed that agreement had been reached regarding my successor".

Vuk Draskovic, leader of the Serbian Renewal Movement (SPO), has since been confirmed as Svilanovic's replacement.

Pope condemns Kosovo Albanian violence

A government statement said Mr. Schwimmer expressed concern over violence against Kosovo Serbs, and stressed the Council of Europe's insistence on implementation of the European Human Rights Convention, decentralisation, and the rebuilding of destroyed Serbian and world cultural heritage sites in Kosovo.

Ambassador Gowan in Podgorica On 31st March, the Ambassador of Great Britain to Serbia and Montenegro, David Gowan, denied official Podgorica statements that Brussels was also part-

The head of the Roman Catholic Church, Pope John-Paul II, has condemned the March attacks against Serbs in the breakaway southern province of Kosovo.

Monsignor Eugenio Sbarbaro, Vatican representative in Belgrade, told agency Tanjug that he visited Serbian Orthodox Patriarch Pavle on the Pope's orders to deliver a message expressing the Holy Father's condemnation of the destructions of Orthodox monasteries and the killing of innocents in Kosovo and Metohija.

The senior cleric told Tanjug: "The Holy father said that he deeply regretted the violence and strongly condemned the destroying of temples and churches, but most of all the destructions of "temples of life", as in the killings of innocent people".

Biography

Vuk Draskovic SCG Foreign Minister

Newly appointed Serbia-Montenegro Foreign Minister Vuk Draskovic was born on 29th November, 1946 in the Vojvodina village of Medja.

Draskovic's family had previously migrated to the Vojvodina district of Banat from their Herzegovina homeland.

However, the early death of Draskovic's mother compelled the family to return to Bosnia, where Draskovic completed senior school before returning to Serbia to complete a Law degree at Belgrade University. He graduated in 1968 and participated in student demonstrations opposing Tito's regime.

Between 1969 and 1978 Draskovic was employed as a reporter of news agency Tanjug, most notably as Zambia correspondent. After a brief spell as press advisor to the Yugoslav Trade Unions Association, Draskovic was appointed editor of the Rad Syndicate newspaper, where he quickly gained a reputation as a dissident advocate of human rights, by organising various petitions.

Draskovic published his first novel in 1985 and has authored such books as The Judge, The Knife, Prayer I and II and The Russian Consul. He has also penned several literary compilations, including Answers, Recollections and a collection of interviews compiled under the title Any Which Way You Go Serbia. The prolific writer has also written a novel dedicated to royalist leader Draza Mihajlovic "The Night of the Generals".

Draskovic became politically active as part of the Sava Association along with Vojislav Seselj and Mirko Jovic. Together they formed the Serbian Popular Renewal Party in 1990, before Seselj split to form his own movement and Draskovic followed suit.

In 1990 they joined forces to create the Serbian Renewal Movement (SPO), of which Draskovic became leader in March of that year following a dramatic split with Seselj - now leader of the Serbian Radical Party. Draskovic was arrested and held twice by the Milosevic regime in the early 90s. He has also survived two assassination attempts, in 1999 and 2000.

Draskovic, who speaks both English and Russian, has taken part in four presidential elections and been elected a parliamentary deputy on four separate occasions between 1990 and 2000. The SPO leader was deputy federal PM for a short period in 1999, before being sacked for allegedly addressing the public with "opinions contravening the government's policy".• CorD | May 2004

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Comment

TRADING on time The key reason for deciding to invest was the fact that major international companies had already put money into Serbia. The amount of money these major players invest is not so important. Their very presence is what really matters, acting as a positive signal to other investors.

S

Comment

everal years ago our American partners organized meetings with around fifteen investment fund managers who were looking to invest in emerging markets. Since they lacked any information about the Belgrade Stock Exchange and Serbian companies, we prepared a comprehensive fact file. However, at the very first meeting we were swamped with questions that had very little to do with our stock market regulations or Senzal's credentials. At first, they were more interested in what everyday life in Serbia was like, they proceeded to ask questions about politics, the macro and microeconomic environment, the bombing in 1999, hyperinflation, relations with neighbouring Croatia and Bosnia, Milosevic's rule, the current power relations between political parties and the situation in Kosovo. Thay also enquired about monetary policy, tax regulations, relations between the National Bank Governor and the Minister of Finance, the IMF's position, our foreign debt and detailed inquiries into the budget deficit, inflation, fluctuations on the currency exchange list. One of our interlocutors even stood up from the table and returned 30 seconds later with a spoon saying: "You were using spoons and forks before the English, weren't you?" We spent only ten minutes telling them about our stock exchange, trading regulations and listed companies.

I have to say that I was taken aback, especially with the realization that we were actually "selling" Serbia, as a place, while the quality of our broker services and the companies that were listed on the stock exchange were less important. The arrival of brokers from a country that had been famous for all the wrong reasons in recent years was something quite exotic for the investors. We simply had to persuade these people, whose investment budgets in some cases exceeded our national GDP, why they should buy Serbian bonds and not Turkish, Argentinean or Philippine; why they should acquire the shares of the brewery in Apatin rather than one in Namibia or India for example.

Comparisons with our geographical neighbours were not kind to

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us either and we were behind in most cases. There was not much we could boast and, basically, our only advantage was that we could not sink any lower. This led to the logical assumption that investing in Serbian companies and , Serbia, could pay off.

When we returned to the United States a few months ago, the meetings took a different course.

We highlighted the names of multinational companies that have already invested in Serbia: Phillip Morris, Lukoil, Interbrew, Lafarge, BAT, Henkel, ten foreign banks lead by Societe General and

The arrival of brokers from a country that in recent years had been famous for all the wrong reasons was something quite exotic for the investors. We simply had to persuade these people, whose investment budgets in some cases exceeded our national GDP, why they should buy Serbian bonds and not Turkish, Argentinean or Philippine.

HVB, plus the fact that a number of European investment funds had already paid considerable sums of money for shares in Serbian companies.

Our presentation supported by charts showing almost vertical growth trends. Although there were further questions related to politics and monetary issues, we also discussed the details of investment in securities at the Belgrade Stock Exchange. And these discussions resulted in concrete investments in 2004.

I think the experience with the US investors is a good example of how attitudes towards Serbia and the global image it has, have changed in the last few years. These fund managers accept risk, they look for it, because they know that the rewards can be considerable. But, of course, such risks are calculated rather than impulsive, since they are ultimately accountable to there own inue stors. The key reason for deciding to invest was the fact that major international companies had already put money into Serbia. The amount of money these major players

€ 470 million, € 300 million coming directly from

million was paid to minor shareholders. Since major domestic investors committed much of their capital in the first few years of the transition, we can expect an even more dominant role by international investors in 2004 and, to be somewhat colloquial, this means more money from abroad in the pockets of Serbian citizens.

Every new investor attracted by our stock exchange builds another brick into a positive image of Serbia and their impact is just as important as our political and diplomatic activities, or sports achievements. The first step is always crucial and it has already been made. So don't ask for whom the bell tolls, just go to the market.•

strategic and financial investors from abroad. The Serbian Share Fund has received around € 45 million from foreign investors, while a total off € 250

Rade Rakocevic, Director of Brockers House “Senzal”

invest is not so important. Their very presence is what really matters, acting as a positive signal to other potential investors.

Since major domestic investors committed much of their capital in the first few years of the transition, we can expect an even more dominant role by international investors in 2004 and, to be somewhat colloquial, this means more money from abroad in the pockets of Serbian citizens.

The turnover at the stock exchange last year was

dental care for handicapped children

“Offer your Hand” B

etween the 8th and 9th May a humanitarian basketball tournament will be held at Little Kalemegdan to raise the 3.5 million Dinars needed to provide equipment for the Centre for Severely Handicapped Children at Belgrade University's Faculty of Dental Medicine.

The action, entitled "Offer your hand", is an appeal by a group of professors from the Faculty of Dental Medicine for all people of good will in Serbia-Montenegro or abroad to support the founding of the first specialised centre for severely handicapped children in the state union.

Eighteen-thousand children and young people desperately need this help. And, in order to realise this goal, the following equipment is needed: a general-anaesthetic machine with full vital-sign monitoring equipment, a surgical table, three hospital beds, a gurney and polymerization apparatus.

The basketball tournament, to take place on the outdoor courts of the Red Star basketball club, is scheduled to involve representatives of international embassies, private companies and the media; as well as friends of the clinic.

Following the tournament, a donors' evening will take place in Belgrade's Lava Club. Jerseys of famous athletes

will be auctioned to raise money for this cause and the tournament's best players will receive awards for their basketballing prowess. All participants and sponsors of the event will receive a letter of thanks, before commencement of the part of the evening dedicated to donations. Organisers of the event are inviting caring private citizens, domestic and for-

eign companies and embassies to support this much-needed initiative by sending donations to giro account number 840-1122666-67, detailing the beneficiary as - Centre for work with handicapped children. The Centre would also welcome direct aid - the supply of the required equipment - if donors perceive this to be a better solution.•

CorD | May 2004

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The Belgrade Stock Exchange

Economy

Steep Decline in Trade

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T

he amount of trade at the Belgrade Stock Exchange was promising at the end of 2003, in with 415 companies tradeing stocks at more than 3,000 auctions. The pace has slowed down considerably in the first few months of 2004.

The main reason for this slump was a 41-day break in tradeing, which has since been pick up pace. At present, the stocks of some 15 to 20 companies are being traded every week, which was the daily output of the Belgrade Stock Exchange in November and December 2003!

The first quarter has, therefore, been time lost in terms of privatisation and capital enlargement, said Belgrade Stock Exchange Director,Gordana Dostanic. At the same time, the slowdown in BSE's activities has let down the expectations of around

Declining trade on the Belgrade Stock Exchange is slowing down privatisation. While 415 companies traded assets on the Stock Exchange at the end of last year, the figure has since slumped ten-fold. Trade and takeover increasingly takes place outside the stock exchange at non-market prices.

By Vesna Musulin, Photo Dragan Milosevic

20 elite companies that have met strict criteria for a place on the exchange list. Consequently, these companies have missed a chance to attract potential investors, as a quotation on the exchange list is the "golden reference" that legitimises the issuer for the investor community.

The slowdown in activities was reportedly caused by transfer and data processing from the Temporary to the Central Stock Register and the inapplicability of a number of regulations from the Law on Securities. The whole situation has brought rainy days to many stock brokers, portfolio investors and investment advisors, who have been deprived of work.

The Belgrade Stock Exchange The Central Register has created a big problem by slowing down the return of companies to the stock exchange after taking over data on subscribed capital and the shareholders of 1,743 firms on 31st December 2003. The Register also has to validate the data it receives.

Most stock market experts say the Law on Securities is applicable to developed markets, but not really suitable for the Serbian transitional economy. The law is therefore responsible for the reduction in activities of the stock exchange. It came into effect on 1st October 2003 - causing much confusion, since only around half of the Members of Parliament were present when the law was adopted without amendments, while the public focused on the elections. Most experts agree that amendments were not useful, recommending the drafting of a new law. Some provi-

“The first quarter has, therefore, been time lost in terms of privatisation and capital enlargement�, said Belgrade Stock Exchange Director,Gordana Dostanic. sions of the law contradict other statutes, including sections of the Law on Enterprises and the Law on Privatisation. Articles 59 and 73 of the latter clearly state that all shares generated in the process of privatisation can be traded freely on the financial market. The aim is to secure a transparent environment for price formation by adhering to the principle of competitiveness in line with the volume of supply and demand.

The Law on Securities has introduced the concept of "Offers for share acquisition" that is supposed to protect the interests of minority shareholders. When acquiring at least 25% voting stocks, the buyer is obliged to make a public declaration of the transaction. The law, however, says nothing about the owners of more than a quarter of voting stocks who want to purchase more. The issue is even more interesting when we bear in mind that the current model of privatisation allows one investor to acquire 70% of company shares.

The vague corporate legislation and the fact that companies are slow to return to the stock exchange,

The law responsible for the reduction in activities of the stock exchange

The stock exchange provides a transparent environment for trade

Economy

means that instead of being protected, small shareholders have no other choice but to sell their shares cheaply outside the organised market at a price set by the buyer, which they have no means of comparing to the official stock market price.

Maintaining this kind of practice could lead to non-transparent and non-competitive trading. In the long run, the development of a healthy capital market is at risk, from a loss of the integrity it has just started to build.

Although the law stipulates that all securities have to be traded through the stock exchange, due to the vagueness of certain regulations, especially

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This means the seller is unable to choose whether to receive payment in local currency, at the official stock market rate, or in foreign currency.

Total transparency is especially important when government securities, such as foreign savings bonds, are traded, since, in the event of a scandal, all responsibility would fall upon their issuer and guarantor (the Republic of Serbia) which is already struggling to repair its citizens' trust in the banking and financial system.

The law, however, says nothing about the owners of more than a quarter of voting stocks who want to purchase more. those pertaining to control and sanctions for the violation of these rules, around two thirds of 'old foreign currency savings bonds' are traded outside the official market.

The fact that the owners of these bonds are often ill-informed, old or poor, is exploited by the buyer, who pays for the bonds in local currency at much lower prices than would have been quoted on the Belgrade Stock Exchange, where the seller can retain the services of a stock broker and open a foreign currency bank account. Sellers are thus able to protect their savings from inflation.

The stock exchange provides a transparent environment for trade and provides the daily exchange rate after every transaction. The same cannot be said for banks, and the seller often does not have access to the bank's price list and, hence, cannot compare it to official stock market rates.

Judging by the rising number of adverts on behalf of law offices, companies and individuals, banks are increasingly bypassed as mediators in the trade of bonds and prices are set through direct negotiations between the buyer and the seller.

The vague corporate legislation and the fact that companies are slow to return to the stock exchange, means that instead of being protected, small shareholders have no other choice but to sell their shares cheaply outside the organised market at a price set by the buyer, which they have no means of comparing to the official stock market price.•

Bulletin Marovic honours Montgomery SCG President Svetozar Marovic has awarded outgoing U.S. Ambassador William Montgomery a medal Star of the First Degree for his efforts to improve relations between SerbiaMontenegro and the USA. Speaking at the 14th April ceremony, Marovic praised Montgomery for his "constructive role in the last three years as U.S. Ambassador to the state

union, during which time relations between the USA and SCG have visibly improved".

Ambassador Montgomery expressed his gratitude and said he was confident that relations between the USA and SCG would continue to strengthen. He added that he was optimistic regarding SCG's achievement of European goals.

Serbia and Montenegro, Leonberger stressed that initiatives calling for Montenegro to unilaterally sign the EU's Stabilisation and Association agreement are in breach of the Belgrade Agreement.

European Agency secure almost a billion Euros for Serbia Adriano Martins, director of The European Agency for Reconstruction (EAR), has confirmed that almost a billion Euros of non-refundable aid has so far been secured for Serbia.

Speaking on 14th April at the seminar "Dialogue about Europe", organised by the Belgrade Faculty of Political Science, Martins explained that the agency secured â‚Ź 777 million of aid for projects in Serbia between 1998 and 2003 and that a further â‚Ź 202 million has been earmarked for 2004.

Martins noted that 90 per cent of help promised for projects has already been agreed and that 66 per cent of those funds have already been paid.

Kostunica with German and Italian Diplomats on Kosovo Serbian Prime Minister Vojislav Kostunica and foreign ministry political directors of Germany and Italy confirmed it was necessary to consider the issue of Kosovo’s decentralisation, in

German ambassador questions PM's nerve Kurt Leonberger, German Ambassador to SCG, has said that he doesn't believe "Montenegrin PM Milo Djukanovic will have the courage to organise a referendum on Montenegrin independence".

Speaking to German radio station Dolce Vele on 13th April, Leonberger said: "Djukanovic is a very intelligent politician, but I think that referendum will never take place. Djukanovic will hold the threat of a referendum forever, like Damocle's sword.

"The Montenegrin Government is leading intelligent politics and considers that there is no better solution for Montenegro than the current executive".

Repeating the European insistence that the quickest route to the EU is a strong, functional state union of

Djukanovic criticises German ambassador Montenegrin Prime Minister Milo Djukanovic has reacted strongly to the insistence of German Ambassador Kurt Leonberger that the Montenegrin PM won't have the courage to organise a referendum on Montenegrin independence.

Speaking to Podgorica television station "Montena" on 14th April, Djukanovic said that Leonberger's statement was "inappropriate from the standpoint of elementary diplomacy".

He added that the German diplomat's statement had alluded to claims that the state union is a "country of wonders".

The pro-independence Djukanovic used the opportunity to criticise the union, saying: "if this country was the way it should be then, without any doubt, the state union's ministry of foreign affairs would formally react and warn that ambassador about making inappropriate comments".

Schwimmer Meets Djukanovic On 1st April, Montenegrin Prime Minister Milo Djukanovic insisted that Montenegro was absolutely dedicated to meeting all obligations of Council of Europe membership.

During talks with Council of Europe Secretary General Mr. Walter Schwimmer, Djukanovic emphasized that the measures taken by his government were in line with strengthening its position with regard to joining European and EuroAtlantic structures.

The following day, Council of Europe Secretary General Mr. Walter Schwimmer met with Montenegrin President Mr. Filip Vujanovic and Montenegrin Parliament Chairman Mr. Ranko Krivokapic.

Svilanovic and Foreign Diplomats on Kosovo order to ensure basic rights for Kosovo Serbs, stated the Serbian government on 29th March .

Mr. Kostunica met with Foreign Ministry Political Director Mr. Michael Scheffer of Germany and his Italian counterpart Mr. Gianpiero Massola.

The Serbian Prime Minister and diplomats from Germany and Italy further discussed the return of displaced Serbs and other non-Albanians, and concluded that decentralisation would encourage their return.

On 29th March, in Belgrade, outgoing SCG Foreign Minister Goran Svilanovic and the political directors of the German and Italian foreign affairs ministries confirmed that the multi-ethnic concept of Kosovo should be preserved, and that it was necessary to find an adequate decentralised model for the province, announced the Serbia and Montenegro Foreign Ministry. Mr. Svilanovic held talks on current issues regarding Serbia and Montenegro's foreign policy position and the situation in Kosovo.

CorD | May 2004

63

Basketball venue will be ready to host American Dream Team

Better late than never

You host a U.S. dream team once every 20 or 30 years if you are lucky. This is more than just a sporting event; it will mark the country's return to the global scene with our best product - basketball. It is only fair that we, as world champions, should have the opportunity to send a clear message to the world that we are back.

By Milan Culibrk , Photo Dragan Milosevic

I

t was a balmy late-summer evening in September of 2002. For once, the almost ever-present buzz of Belgrade activity had been replaced by an unnervingly muted stillness. Not a soul walked the streets, not a horn beeped, not a bird tweeted. The minutes ticked slowly by and the silence seemed to congeal, thickened by the nervous tension of a nation. Then suddenly and without warning, the final hooter blew far off beyond the ocean and Belgrade erupted in a crescendo of unadulterated joy.

Bullets and fireworks filled the sky as apartment buildings emptied en masse and the people took the party to the streets.

Yugoslavia, with her two remaining republics of Serbia and Montenegro, had won the Basketball World Championship on American soil. Not only had they won the title for the fifth time, to add to their trophy haul of seven European titles, but the now legendary national team had also managed to knock the fabled American Dream Team out of the championships at the quarterfinal stage with an 81-78 victory. Belgraders, used to gathering en masse for less joyous occasions, did not miss this opportunity to party the night away and shake the grand old city to her bones.

Two years on, memories of the tournament and, in particular, the victory over the Dream Team, are beginning to fade. The time is ripe for a rematch. The Americans have licked their

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wounds long enough and its time for them to face Serbia-Montenegro's Balkan dream destroyers once again. In August this year, the long-awaited rematch will become a reality, provided contractors can finish the stadium on time.

The new Belgrade Arena, scheduled to stage the Diamond Ball basketball tournament between 31st July and 3rd August, the historic meeting of the American Dream Team and the Serbia-Montenegro national team on 6th August and the 2005 European Basketball Championships, has technically taken 12 years to construct; and has yet to be completed.

Originally intended to stage the 1994 World Basketball Championships, plans for the sports complex - the biggest of its kind on the Balkan Peninsula - were shelved shortly after ground had been broken because international sanctions, imposed during the wars, meant Belgrade would not host the championships after all. Lack of funds and the agonising break-up of Yugoslavia saw plans neglected and forgotten, as the skeleton arena gathered dust.

Finally, after years of neglect, the 21,000-capacity Belgrade Arena project was brought down from

Sport Predrag Stojakovic (Sacremento Kings) the shelf in February last year, just a few months after SCG got the nod to host the 2005 European Basketball Championships.

City authorities and the SCG Basketball Association (KSSCG) began a frantic effort to resurrect the stalled plans and complete the complex in time for this year's Diamond Ball tournament.

Speaking exclusively to CorD, KSSCG president Miodrag Babic insisted that completion of the complex in time for the summer deadline was all but a foregone conclusion:

Finally, after years of neglect, the 21,000capacity Belgrade Arena project was brought down from the shelf in February last year, just a few months after SCG got the nod to host the 2005 European Basketball Championships.

"As long as there are no further delays the Belgrade Arena will be completed on time. We have stretched ourselves to the limit to get the job done in time for this event, which is of utmost importance for the country. Unlike many projects here, we don't have any financial problems with the project and we're determined to show the world we're capable of hosting an event of this magnitude".

Rubbishing recent media claims that the facility would not be completed on time and will fall short of international standards, Mr. Babic said: "Those claims are devoid of all truth. I did say that we were behind at one point and I would like to show my

gratitude to the press for pointing this out with the good intention of speeding up the process. The truth is that completing a complex of this kind takes time and money. We were short of finance for many years and, consequently, we are now pressed for time. However, we will come out on top and give Belgrade an event to remember."

The KSSCG president explained that the International Basketball Association (FIBA) has been so impressed by Belgrade's efforts to complete the arena that it has asked the SCG capital to announce its candidacy to host the 2010 World Championships. "That shows how serious and committed we are to this task. FIBA obviously has a lot of faith in us and that is very encouraging. Both the Diamond Ball Tournament [set to involve SCG, China, Angola, Argentina, Australia and European champions Lithuania] and the match against the U.S. Dream Team will be perfect dress rehearsals for next year's championships, and the many events that will undoubtedly follow".

KSSCG are well aware of the significance of all the events scheduled to take place at the new arena, but Babic is particularly anxious to see the Athens Olympics' American Dream Team face SCG in the stadium: "You host a U.S. dream team once every 20 or 30 years if you are lucky. This is more than just a sporting event; it will mark the country's return to the global scene with our best product - basketball. It is only fair that we, as world champions, should have the opportunity to send a clear message to the world that we are back."

The Dream Team fixture is considered the icing on the cake for this basketball-worshipping nation, and the preceding Diamond Ball will also prove a sell-out for the new stadium.

"Ticket demand for both the tournament and the match with the U.S. team is quite simply incredible", said Babic. "I think we'd need several more new arenas to accommodate all those hoping to see the events".• CorD | May 2004

65

Faces & Places THE NATIONAL DAY OF GREECE

H.E. Mr. Mihalis Spinelis laid a wreath at the “Riga od Fere� monument

TUNISIAN NATIONAL DAY

On 15th March, 1821, Greece took up arms to fight their country's occupation by the Ottoman Empire. Each year this date is commemorated as the national day of Greece.

This year a doxology was served in the presence of Serbian Orthodox Patriarch Pavle and Greek Ambassador H.E. Mihalis Spinelis at the Saint Simeon Chapel in the Serbian Patriarchate. After the sermon, Ambassador Spinelis laid a wreath at the base of Kalimegdan Fortress's 'Riga od Fere' monument, in the presence of representatives of Belgrade City, Serbia and the State Union.

Several hundred distinguished political, cultural, clerical, diplomatic figures and the press attended the traditional evening reception at the Greek Ambassador's residence.

On 22nd March Ambassador of Tunisia, H.E. Mr. Radhouane Larif, held a reception to celebrate the 48th Anniversary of Tunisian Independence.

The reception was held at the Ambassadorial Residence and was attended by representatives of the Government of Serbia-Montenegro, members of Government agencies, a large number of members of the Diplomatic Corps, many figures of Belgrade's cultural life, media and friends of the Embassy.

FRANCOPHONE On 23rd March the Embassy of France organised a reception to celebrate the "month of Francophone". Around 300 French-speaking guests attended, including diplomats, journalists, professors of French and ministerial representatives.

Mr. Dimitri Verdet and Mr. Pietrick Lazaroo at the reception

H.E. Mr. And Mrs. Radhouane Larif, Ambassador of Tunisia, welcoming H.E. Mr. Dusan Simeonovic, Director of Africa and Middle East relations at the Serbia-Montenegro Ministry of Foreign Affairs

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Faces & Places NATIONAL DAY OF PAKISTAN Ambassador of Pakistan, H.E. Mr. Saud Khosa, has hosted a reception at Belgrade's Diplomatic Club to mark Pakistan's National Day. Among the many guests at the 23rd March event, were H.E. Dr. Fara Millimono, H.E. Ms. Anna-Marija Korpi, H.E. Mr. Hans Ola Urstad, H.E. Mrs. Lavanya Prasad, Ms. Zorica Jekic, Mr. Slobodan Perunovic and many others.

H.E. Mr. Saud Khosa with his wife greeting H.E. Mr. Oktem Ambassador of the Republic Turkey

COOPERATION AGREEMENT On 25th March, 2004 representatives from The Institute of Political Studies and the Faculty of Political Sciences in Belgrade, Professor Franรงois Bafoil and Dean Mijat Damjanovic, signed a cooperation agreement at the French Embassy.

This agreement takes the form of new postgraduate course, European Studies. The course has been organised at the Faculty of Political Sciences under the guidance of Professor Slobodan Samardzic.

The agreement will provide the opportunity for students of the Faculty of Political Sciences in Belgrade to enrol on this course. Lectures on basic issues concerning the European Union will be given

by French professors.

H.E. Mr. Huges Pernet, Dean Mr. Mijat Damjanovic and Mr. Francois Bafoil at French Embassy

An exhibition of the masterpieces of European painters from the 19th and early 20th century was opened on 27th March. The exhibition was staged in the hall of the National Museum and was sponsored by DaimlerChrysler.

Visitors had the opportunity to enjoy works by Camille Corot, Claude Monet, Camille Pisaro, Pierre Auguste Renoir, Alfred Sisley, Edgar Degas, Toulouse Lautrec, Vincent Van Gogh, Pal Gaugin, Henry Matisse and Pablo Picasso. The exhibits were selected from the National Museum's art collection.

Thanks to Daimler-Chrysler, exhibition visitors also had the opportunity to see the first automobile ever constructed, patented by Karl Benz.

Mr. Hartmut Mayer with Mr. Kojadinovic, Minister of Culture and Mrs.Tatjana Cvijeticanin, Acting Director of National Museum at the exhibition

IMPRESSIVE

Faces & Places A DREAM FOR EUROPE IN BELGRADE A new book by Council of Europe Secretary General Walter Schwimmer was presented in Belgrade on 1st April 2004.

Schwimmer met a number of state officials during his two-day visit to SerbiaMontenegro. After talking to members of the Serbian Parliament, Schwimmer presented the Serbian edition of his book "A Dream for Europe". A signed first copy was presented to Serbian Parliament Speaker Zoran Sami.

The book was published by BMG as part of a series of titles by authors such as Romano Prodi, Vladimir Putin, Colin Powell, Simon Peres, Boris Yeltsin and Henry Kissinger.

MINISTERS OF TOURISM MEET IN BELGRADE

BELGRADE CITY AWARD

Ministers and Deputy Ministers of Tourism from eight South-East European countries met in Belgrade on 16th April to mark the opening of the International Tourism Fair. The governmental group discussed a joint strategy for boosting tourism. The first such meeting was held last year in Athens; the next meeting will take place in Zagreb. The ministries are formulating a brand concept for South-East Europe as a tourist destination.

CANADIAN EMBASSY SUPPORT H.E Mr. Donald McLennan, Canadian Ambassador to Serbia-Montenegro, was at the head of a Canadian Embassy delegation that presented a four-oared boat to the Children and Youth Special Needs Society for Sports and Recreation in Pancevo. The $5,000 boat was generously donated by the Canadian Fund.

The project was brought to life with the help of the Rotaract Club and the newly-founded Pancevo Rotary Club.

H.E. Mr. Donald McLennan, Canadian Ambassador, with children in Pancevo

Mrs. Radmila Hrustanovic with awarded

Mayor of Belgrade, Mrs. Radmila Hrustanovic, has presented awards for the most valuable accomplishments in 2003.

She did so at an event commemorating 600 years of Belgrade City's status as a capital city.

Awards were given to actor Miki Manojlovic, B92 General Manager Veran Matic, musical conductor Bojan Sudjic, film director Goran Markovic, amongst many others.

Correction In the previous issue of CorD, in the article under the headline 'Beset by Restrictions', because of a technical error, the name of the Minister of Foreign Affairs for Montenegro Mr. Dragisa Burzan was published as Danilo Burzan. We deeply regret the mistake and apologise to both parties.

Faces & Places BONSAI ROOTS IN DIPLOMACY Ambassador of the Republic of Germany, H.E. Mr. Leonberger, invited representatives of the Womens International Club and other guests to see his collection of Bonsai trees on 19th of April at his residency. Mr. Leonberger performed a speech, entitled 'The art of growing bonsai trees', alngside fellow speaker Professor Novica Blazic, president of the Serbian Bonzai Club. The German diplomat spoke of the historical roots and culture of Bonsai growing, while visitors had the chance to view 40 different types of Bonsai tree, as well as Leonberger's private collection.

A theory of Bonsai cultivation is that the practice originally sprung from the diplomacy of the Mandarin people's social elite during the Han dynasty. The theory is that the diplomats of the day wanted to recreate their gardens in miniature, whilst travelling the world, as a reminder of home.

H.E Mr. Leonberger showing his bonsai collection

RECEPTION AT EMBASSY OF TUNISIA

H.E. Mr. Radhouanne Larif greeting H.E. Mr. Yani Milcakov

H.E. Mr. Radhouanne Larif, the Ambassador of Tunisia, hosted a reception in his residence on 30th March to mark his accreditation.

Many respected guests from the diplomatic world attended.

PRESENTATION IN BITEF ART CAFFE On 2nd April, the Embassy of the Republic of Hungary to Belgrade staged an event commemorating Hungary's 1st May accession to the European Union.

The event, which included a presentation and press conference, was held at Belgrade's Bitef Art Cafe. It was organised by the Hungarian embassy, MALÉV, Hungarian Airline Company, the Serbian Ministry of Trade, Tourism and Services and the ?Halo Tours" Travel Agency.

Speaking at the event, H.E. Jozsef Pandur, Ambassador of the Republic of Hungary, told guests that the current visa regulations would not be changed after accession. Mr. Pandur also awarded prizes for the best photographs of Hungarian heritage sites and rewarded pupils of the "Dusan Radovic" Primary School, who embroidered pictures displaying the motives of Hungarian folk art during the party.

IN HONOUR OF ALEKSANDAR ZEMLINSKY On 22nd April H.E. Mr. Hannes Porias opened the exhibition "Aleksandar Zemlinsky - His Life and Work". Aleksandar Zemlinsky belongs to the type of composers who, although not 'well known', still express their period. His work didn't change the course of musical history, yet it presents an authentic testimony of its boisterous development between 1890 and 1940. The Belgrade Faculty of Music’s choir performed examples of Aleksandar Zemlinsky's works, to the obvious enjoyment of the many invited guests.

H.E. Mr. Hannes Porias addresing guests at the opening of the exhibition CorD | May 2004

69

How to join Europe

Crucial Questions Will the EU Commission as the government of the Union have a member from each member state, or, as the bigger countries prefer, will it become more efficient and streamlined?

By Dragan Novakovic

n May 1st 2004 the 'Big Bang' is really going to take place, with ten new countries becoming fully-fledged members of the European Union increasing the community to twenty-five countries.

This will create a common market of more than 400 million people, and a Europe divided in the second half of the twentieth century by the Cold War and the Iron Curtain will start to look at least partially whole. But how effective, how functional and how strong can a union of 25 states, and ultimately 30 or 35, actually be?

The latest enlargement by ten states took place against a backdrop of serious political crisis and stalemate that impeded the fifteen member states' ability to agree on a new constitution for the Union. The European Council meeting in Rome in December 2003 dismally failed to reach consensus on a new constitution. This was a result of Spain and Poland's refusal to

technological know-how; and above all political stability. The effort to join Europe is so strong that they are prepared to accept, to a certain extent, second class EU membership. It is a paradox that countries that the EU would most easily absorb, such as Norway and Switzerland, are so far resisting the lure of Brussels' bureaucratic power. It is also indicative of the current situation that the popularity of the EU in the original six and later nine member countries is declining, enlargement is unpopular, and that there is increasing resistance to the power Brussels exerts.

France, Belgium the Netherlands and Germany have tended to be the Federalists, while the UK has traditionally led the latter group that were against too much devolution of power to Brussels.

Seven states - Poland, Czech Republic, Hungary, Slovakia, Latvia, Lithuania and Estonia - former members of the Warsaw Pact will join the EU, and with the accession of all ten new states into US Defence

give up the advantage they had gained at Nice in 2000, and resistance to adopting the double majority voting system that would give countries with big populations like Germany a greater amount of votes.

Then in Spain the tragic terrorist attack in Madrid when nearly 200 people were killed turned the political scales and resulted in a new Socialist government there. At the European Council meeting in Brussels in late March it seemed that the constitutional crisis had been resolved, as the need for European unity and cohesion prevailed, and it now seems that a new constitution will be adopted by the middle of 2004. In the end it appeared that Al-Qaeda had saved European unity, enabling the crisis to be overcome, but it is evident that divisions and differences of interest within the enlarged Union remain to be tackled over the coming months and years.

There is no doubt that all the countries of Central and Eastern Europe desperately want to join the club of Europe's rich. It is not only the countries of the Western and Eastern Balkans who are keen to accede to Europe, but Ukraine, Moldova and even Georgia are exclaiming their Euro-Atlantic ambitions. By joining the European Union these countries are counting on a transfer of funds from the rich members to the poor; access to markets; investments; increased

Secretary Rummsfeld's "New Europe", the balance of power will change. The UK will gain allies in its more pro- American position i.e. resisting any independent EU military role. A role that was espoused by Germany, France, Belgium and Luxembourg in the aftermath of the attack on Iraq, named after a Brussels' suburb, advocating a European Defence Headquarters in Terveuren.

With ten new members the Common Foreign and Security Policy, designed to enable the EU to speak with one loud voice in world affairs, might also be more difficult to forge. The Iraq conflict split the EU down the middle and it was impossible for the EU to speak with one voice as the UK, Italy and Spain were leading the group of countries who were pro US intervention, with France Germany and Belgium strongly resisting action. With twenty-five member states, and then thirty in the future, it is going to be even more difficult to reach a consensus on key foreign policy issues.

Such a situation will inevitably make the task of any future EU Foreign Minister, a position envisaged under

Opinions

O

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the new draft constitution, highly delicate. Of course the EU at all meetings of its foreign ministers, the socalled General Affairs Council, regularly reach consensus on a myriad of foreign policy issues. Currently, candidate countries and potential candidate countries adhere to these positions, but there are often cases when it is impossible for a compromise to be reached, and with increasing membership the task will be even more difficult. One of the ways of overcoming this barrier is the provision of reaching decisions by a qualified majority, but the UK, for example, is very keen to retain its veto in regard to foreign policy as well as tax and other issues, as, indeed, are some other counties.

In a complex and enlarged Europe there are of course efforts by some of the major countries to take on the role of leader and pioneer. On several occasions recently France the UK and Germany have taken independent initiatives (on Iranian arms control, for example), and have organized mini summits that have been looked on warily by other members not invited to the show. These countries of course publicly deny that they are trying to impose themselves as leaders within the EU, but the evidence is there.

In its fifty-year history the European Union, started in 1952 as the European Coal and Steel Community, has undergone enormous changes and transformations and has managed to survive many crises. In the Sixties, the French decided not to participate in the workings of the EEC until the Luxembourg Accord was struck giving a veto power to each member state if it felt that vital interests were being impaired. In the

Eighties, Margaret Thatcher was screaming for "her money to be given back", as she felt that the UK was giving an unfair amount of cash to the common budget. In the Nineties, the whole European Commission had to resign because of rumours of corruption. The EU has survived these crises. The integration process has deepened, monetary union was forged, and even EU foreign policy designed. It would be folly to believe that the European integration process has encountered

It is a paradox that countries that the EU would most easily absorb, such as Norway and Switzerland, are so far resisting the lure of Brussels' bureaucratic power.

Opinions

How to join Europe

barriers that it cannot overcome with the newest enlargement. It is evident, however, that many challenges will have to be tackled.

Will the EU Commission have from each member state, or, as the bigger countries prefer, will it become more efficient and streamlined? Will a two-speed Europe based on enhanced cooperation between at least eight member states develop, or will a nucleus group emerge as natural leaders, with others tagging behind? In the end, will the EU develop an common defence force and a defence policy, or will it remain committed to partnership with NATO? Indeed, will some of the eight member states that will stage a referendum on the constitution of the EU adopt it, or will referenda have to be endlessly repeated, like the referendum on the Nice Accord was repeated in Ireland? All these questions remain to be answered, and it is clear that the task for Europe is a huge one.•

The Italian Cultural Institute

Fraternal Art Culture

By Maja Vukadinovic, Photo Danka Ninkovic

A

group of young people are in the middle of a lively debate as they walk into an early 20th century building in Njegoseva 47, Belgrade's Vracar district...They're off to yet another Italian class. Young men and women, who learned about Italy and its cultural heritage from magazines available in the Italian Culture Institute in Belgrade, walk by. "I am impressed with the great desire of people here to learn about Italy and its culture", says Rossino Rissi, who has been the head of the Italian Culture Institute for the past two and a half years.

Rissi believes that historic and geographic ties between the two countries have generated the interest shown by Serbia's audience in the Italian

Rossino Rissi, Director of the Italian Culture Institute, says he is especially pleased that Belgrade's youthful audience has had the opportunity to see the classic works of Italian greats such as Pazzolini and Felini, adding that the Antonioni cycle will be shown next year.

Rossino Rissi, director of the Italian Cultural Institute

The Italian Cultural Institute it is easier to present various cultural events to people through language. The Institute has run courses in Italian since last year, with 160 students attending already. As of this year, students of Belgrade's Diplomatic Academy can attend Italian classes, organised by the Italian Culture Institute, as part of their course. Italian professors attend a language proficiency programme twice a year.

Some elementary and secondary schools in our

The institute introduced Italian language courses last year and 160 students have enrolled in the course to date. In addition, students of Belgrade's Academy of Diplomacy will this year be able to attend the institute's language classes as part of their university course. country have recently included Italian in their curriculum. The Italian embassy offers scholarships to the most outstanding student and post-graduates, so that they can attend language courses in Italy. Over 12000 books and magazines provide an additional incentive to learn Italian, as do audio and video materials available in the Institute's library. In addition to all that, the Institute has a separate reading room.

Apart from programmes in the Institute itself (exhibitions by Italian artists twice a month and screening Italian films), Italy's creativeness is on the agenda of many institutions the Italian Culture

Culture

Culture Institute's variety of programmes. There is an equivalent amount of interest in Italy's past, its cultural heritage and contemporary scene. Close ties with Italy are personified by middle-aged people who fell in love with Italy in the 1960s and still have living memories of that era. "This is a cornerstone for building cooperation and close ties," Rissi says, adding that during his 25 years in charge of Italian Culture Institutes in Sweden, France and most recently Serbia, he always had in mind that his mission was to make possible the free flow of ideas and cultural heritage between different nations. "I am really sorry that we are unable to fully meet the outstanding demand for Italian culture here," he says.

The Institute has its own budget and two of its employees (including Mr. Rissi) are Italian foreign ministry clerks. "Some programmes are implemented in cooperation with the Italian embassy, as cultural policy is an integral part of a country's foreign policy," Rissi underscores.

There are 89 Italian cultural centres worldwide, promoting the Italian language and culture is a common goal. Policies however depend on the local environment that varies from one country to another. Apart from Belgrade, the Italian Culture Institute here has several programmes in a number of major cities throughout Serbia Montenegro.

Language is the best way to establish close ties between nations. As a professor of Italian and Latin literature and language, Mr. Rissi knows that

The institute offers a range of programmes in Belgrade, as well as several programmes

Culture

Institute cooperates with. "All forms of art are represented in our monthly programme and we try to offer a wide variety of things. We want to be part of every segment in order to establish the strongest possible bond between the two cultures.

We come through with approximately 90 programmes per year," Rissi says.

The Italian Culture Institute director says he is especially pleased that Belgrade's youthful audience has had the opportunity to see the work of Italian classics such as Pazzolini and Felini, adding that the Antonioni cycle will be shown next year. A festival of contemporary Italian film is also expected

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The personification of close ties with Italy are today's middle-aged, who fell in love with Italy in the 1960s and retain fond memories of that era. This is a cornerstone upon which to build cooperation and closer ties. next autumn. It goes without saying that Italian art is a part of all major festivals and cultural manifestations here, a trend Mr. Rissi strongly welcomes. "It is very important for artists to establish ties, cooperate and exchange their experiences," he says.

Communication is very important for cooperation with other foreign cultural centres in Belgrade.

Mr. Rissi has launched an initiative resulting in joint projects and there are more to come. The Limes plus magazine, a Serbian version of the Limes geopolitical magazine, will be yet another thread bonding Italian and Serbian culture together. The

We manage to develop around 90 programmes a year inaugural issue is to be published early in May and to be printed by the Clio publishing company. Apart from the Italian Culture Institute in Belgrade, the project was backed by the Italian embassy, the OSCE and Regione Emilia Romagna.

Asked what the essence of cultural diplomacy was, Mr Rissi said he was happier with the term "cultural strategy" which means interaction and meeting popular cultural demands in certain environments. "That applies not only to our cultural centre. Creating possibilities for exchange should be a priority of every cultural centre in a foreign country," Rossino Rissi said in conclusion. •

RECOVERY CONTINUES IN FIRST QUARTER Lufthansa has further improved its traffic performance with a successful start to 2004: In the first quarter, the Group carried more passengers, transported more freight and returned better load factors in all traffic regions. In the first three months of 2004,

about 11.4 million passengers flew with the Group's airlines, an increase of 7.5 on the first quarter of last year. Available capacity rose by 7.7 per cent. A two-digit increased pushed sales up by 10.8 per cent. Capacity utilisation rose accordingly by two percentage points to 72.6 per cent.

Overall utilisation of passenger and cargo aircraft in the Lufthansa Group improved by 2.6 percentage points to 71.1 per cent.

RENAULT IN SUCCESSFUL ECOLOGY DRIVE The end of April saw the completion of the "Green Heart" drive, organised by the SCG representative office of the Renault automobile company. During this campaign the renowned automobile house offered the owners of very old cars the opportunity to sell them in part exchange for a brand new Renault on more favourable terms.

In cooperation with the Scholz firm, Renault will destroy the old cars, and, at the same time, together with the Srbija Sume public company, arrange for one new tree to be planted to represent each old car destroyed. As Ms. Dejana Komadina, the spokeswoman of Renault, informed us, the "Green Heart" activity has achieved excellent results. She added that the old cars would be destroyed and the trees planted during May. AFRICA AND THE STATE UNION OF SERBIA-MONTENEGRO TODAY On 25th May this year, the African community in Belgrade will celebrate the anniversary of the African Union, the successor of the Organisation of African Unity, founded in 1963 in the Ethiopian capital, Addis Ababa.

Commemoration of the event will offer the chance for relations between Africa and its foreign partners to be assessed. And, in fact, leaders of African countries have decided to provide a solid economic platform to boost the political unity that has been achieved. This goal is to be reached through a series of actions outlined by a programme of new initiatives for economic development-NEPAD.

CorD Club

The plan shows that African countries are united in their bid to co-solve economic problems with a global plan that can be realised through a common global strategy.

The friendship between Africa and SCG is rooted in the Cold War, the Federal Republic of Yugoslavia and many African nations were members of the Non-Aligned Movement. Fellow members cultivated good relationships that have proven invaluable to cooperation.

Africa's countries have vast resources and great potential, which need local and foreign investment. Members of the African Union are implementing measures aimed at attracting such investors and developing a large, consumer market.

Thus, NEPAD's realisation has the potential to bring local and regional infractutures together in a large and efficient network ( roads, bridges, telecommunications, energy systems, dams and other ) able to serve and connect all areas of the continent.

HEMOFARM - ONE OF SERBIA'S BIGGEST EXPORTERS In 2003, Serbia's foreign trade deficit amounted to five billion US dollars. That would not have been alarming, say economists, had exports and re-exports been increasing. An exception was the export of medicines.

Last year Hemofarm exported drugs and infusion products worth 43.6 million US dollars to 22 countries, which represents 70 percent of the country's total export in pharmaceutical products. The majority of these were to the Russian Federation, North Africa and the Middle East, to which the company's principal export products for cardiovascular treatment, hydrocortisones, lemodes in lyophilized form and infusion solutions. Fifty percent of Hemofarm's foreign income comes from Russia, where the company is the 22nd largest foreign supplier to the Russian health care service.

AUSTRIAN AIRLINES Excellent results have also been We are proud to announce that as of 29th March 2004 AUSTRIAN AIRLINES to achieved in the German market, to which choose between daily morning, afternoon Hemofarm has been exporting its range of non-prescription medicines, so-called OTC medicines, for two years.

and evening flights from Belgrade, enabling you to board connecting flights from our Vienna hub to numerous destinations worldwide and also allowing you to have day trips.

NEXT - OFFICIAL DRINK OF THE SERBIA-MONTENEGRO OLYMPIC TEAM With a focus on top quality fruit and 100 % natural fruit juices, Fresh & Co. Company has shown its determination to promote healthy living.

By investing in sport and the prosperity of active pursuits, Fresh & Co. has worked to create and enhance its image as a cooperative company.

For several years, Fresh & Co. has been the major sponsor of Serbia-Montenegro's national Water-polo team - bronze medallists at the 10th World Championships held in Barcelona in 2003 and current European Champions. This season will see up-andcoming tennis player Jelena Jankovic and athlete Elvira Pancic both compete under the colours of NEXT. NEXT juices will appear at this summer's Olympic Games, as the official drink of the Serbia-Montenegro Olympic Committee; and the region's leading fruit juice manufacturer will also provide financial support to assist in the preparation and accommodation of our Olympians at the 28th Olympic Games in Athens.

EXHIBITION ORGANISED

BY DAIMLER-CHRYSLER The biggest cultural event of the month was undoubtedly the National Museum exhibition, entitled 'The Impressive', realised thanks to the Daimler-Chrysler Company.

The event was extended as a result of popularity and Daimler-Chrysler generously organised continuation of the exhibition in their company premises from 13th to

17th April. Exhibits at the event included the works of local 19th century artists, including Paja Jovanovic and Djordje Krstic. Additionally, the "old-timers" exhibition, staged by Daimler-Chrysler, boasted two Mercedes classics - the S600 Pullman and the S Cabrio convertible - owned by the Yugoslav Peoples Army and made famous by their most famous regular passenger, Josip Broz 'Tito'. The exhibition was a raving success, attracting an extremely large numbers of visitors.

A comic Serbian story of sorrow

Kangaroo dreams In a normal, functioning country, the notion of an extended or eternal adolescence could be interpreted as the choice of the individual or the isolated group, not as an unavoidable norm of the wider social sphere. In Serbia, the opposite is the case.

By Nebojsa Grabez

will make much sense, is worth striving for, or can offer a level of human fulfilment.

However, Andric insists his film is not dismal: "Luckily, it is not because, even in reality, our situation is not a dismal one. My film is about young people who have not come to terms with reality; who stayed here, but are trying to find a way out.

The biggest problem is that many people think everything is hopeless and, worst of all, they are coming to terms with their reality while clinging to this sense of hopelessness".

Andric does not belong to the section of the country who succumbed to euphoric expectations fuelled by the changes of 5th October and, accord-

Film

However, things are moving forward. A lot has happened to indicate that we are on the right path. Still, a better future is achieved in a million tiny steps, not a single stride.

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T

he latest domestic production to hit Serbian cinemas is a black comedy set against the backdrop of the break-up of the former Yugoslavia, which addresses this very issue.

The basic premise of the film, entitled "When I grow up I'll be a Kangaroo", is an elaboration of the widely accepted notion that the Serbian youth of today were raised in an environment of isolation and xenophobia. Consumed by society's newfound aggressive nationalism, the whole generation was forced into a bogus acceptance of religion and adherence to a warped value system of mutated traditional music, and military and mystic fraudsters.

According to Radivoje 'Rasa' Andric's film, Serbia's young adults harbour little hope that lives

ingly, does not share the massive disappointment felt by those dreamers today. He explained: "I was fully aware that there was no way anyone on this planet could instantaneously remedy the myriad stupidities of our recent past. If we spent the last fifteen years tearing down our country, society and value system, then it stands to reason that we need at least twice as long to rebuild them. I didn't expect miracles and so my expectations have not been shattered.

"However, things are moving forward. A lot has happened to indicate that we are on the right path.

Still, a better future is achieved in a million tiny steps, not a single stride."

When I grow up I'll be a Kangaroo is a frank exploration of urban life in Serbia, which cuts through the fog of the time unveiling the fates of several generations lost in the labyrinth of perpetual adolescence, hopelessness and disbelief - states that have been accepted as the norm in Serbia today.

The film's principal characters are aged between 26 and 28: not young enough to make a clean break, but not yet old enough to abandon hope. They fight their shock and dismay with love and gambling, or simply succumb to the crumbling world around them.

Despite the undeniably depressing period the story covers, Andric has managed to make a comical, colourful film that addresses a state of mind inspired

The Belgrade Stock Exchange

by Yugoslavia's collapse and still evident today.

The vision of Serbia projected by Slobodan Milosevic's 11-year reign of oppression not only affected the youth of the day, it also dragged older generations into its spiral of dismay and despair and, even today, the ramifications are affecting the life expectations of the next generation.

According to Professor Jelena Vlajkovic of Belgrade University's Faculty of Philosophy, this generation are "Sloba's Babes".

impacting on youth, the family unit, schools and other pillars of society affecting today's adolescents, demonstrates that Milosevic's era was characterised by a specific value system.

Rather than being a regime of one man and his family, it was a system of values that promoted isolation, inadaptability and fear of the new or the unknown".

Rather than being confined to the politics of the pre-5th October uprising, Vlajkovic insists this value system continues to be reflected by the current democracy-orientated government.

The effects of these policies on young people, she said, are obvi-

"They are young people who grew up in a specific milieu that has been nurtured over the past fifteen years," she explained. "This milieu is characterised by isolation, xenophobia, an aggressive assertion of nationalist sentiment, a false acceptance of religion and a value system based on turbofolk, kitsch, army charlatans, fortune-tellers, astrol-

ous: "We only have to recall events on the streets of Belgrade and other towns after the recent tragic attacks against Serbs in Kosovo, and used by the Ministry of Education to instil a sense of anger and rebellion amongst young people.

"The ministry dispatched a request for all schools in Serbia to stage public lectures dedicated to the events in Kosovo. However, many schools did not understand what had been asked of them, so simply let the children out onto the streets. The proposed public lectures soon degenerated into slogan-yelling bonanzas of mobs of intoxicated senior-school pupils, whose chants were laced with rage and seeking retribution. This is the milieu we have experienced - a situation in which young people are emotionally manipulated and deprived of the slightest ounce of hope that a better and more joyous life may be possible."

This highly recognisable, but greatly overlooked dimension is the best reason to watch 'When I grow up I'll be a Kangaroo'.

Despite the despair, Andric manages to add an element of muchneeded hope, which manifests in the metaphor that ends the film - a UFO passing over the city before disappearing over the horizon.

As Andric explained, "Nobody will grant us salvation on a platter; it will not fall into our laps and no one above - including the government - will provide it. Politicians can only do their jobs, if they're capable, and leave. However, each of us has to make an individual effort to find the right direction in life".•

We only have to recall events on the streets of Belgrade and other towns after the recent tragic attacks against Serbs in Kosovo, and used by the Ministry of Education to instil a sense of anger and rebellion amongst young people. ogists, etc. This does nothing to aid the maturing of young people and contains none of the vital requisites for growing up: hope and belief that life makes sense, is worth living and offers fulfilment worthy of a human being."

Professor Vlajkovic said this milieu began to dissipate after 5th October 2000; although, she worriedly noted, recent events have caused it to resurface: "I think everything happening today, which is

Belgrade Directory MEMORIAL MUSEUMS: • MEMORIAL MUSEUM JOVAN CVIJIC, Jelene Cvetkovic 5, tel. 3223-126 • NIKOLA TESLA MUSEUM, Krunska 51, tel. 2433-886 • MEMORIAL MUSEUM TOMA ROSANDIC, Vasilija Gacese 3, tel. 651-434 • IVO ANDRIC MUSEUM, Andricev Venac 12, tel. 323-8397 CITY MUSEUMS: • BELGRADE CITY MUSEUM, Zmaj Jovina 1, tel. 630-825 • ZEMUN CITY MUSEUM, Glavna 9, tel. 617-752

Museums CULTURAL & HISTORICAL MUSEUMS: • VUK AND DOSITEJ MUSEUM, Gospodar Jevremova 21, tel. 625-161 • ETNOGRAPHIC MUSEUM - Studentski trg 13, tel. 328-1888 • SERBIAN ORTHODOX CHURCH, Kralja Petra 5, tel. 3282-595 • NATIONAL MUSEUM, Trg Republike 1a, tel. 624-322, 438-886 • MUSEUM OF PEDAGOGY, Uzun Mirkova 14, tel. 627-538 • THE MANSION OF DUCHESS LJUBICA, Kneza Sime Markovica 8, tel. 638-264 • THE MANSION OF DUKE MILOSH, Rakovicki put 2, tel. 660-422 • DJURA JAKSIC HOUSE, Skadarska 34, tel. 324-7334 • MANAK'S HOUSE, Gavrila Principa 5, tel. 633-335 HISTORICAL MUSEUMS: • MILITARY MUSEUM, Kalemegdan, tel. 3344-408 • BELGRADE FORTRESS MUSEUM, Kalemegdan bb, 631-766 • YUGOSLAV HISTORICAL MUSEUM, Trg Nikole Pasica 11, • MUSEUM OF BANJICA'S CAMP, Veljka Lukica-Kurjaka 33, tel. 669-690 • JEWISH HISTORICAL MUSEUM, Kralja Petra 71, tel. 2622-634 • SERBIAN HISTORICAL MUSEUM, Nemanjina 24/VII, tel. 3674-057

TEHNICAL MUSEUMS: • YUGOSLAV AERONAUTICS MUSEUM, Belgrade Airport, tel. 670-992 • RAILWAY MUSEUM, Nemanjina 6, tel. 361-0334 • MOTORCARS MUSEUM, Majke Jevrosime 30, tel. 3241-566 • SCIENCE & TECHNOLOGY MUSEUM, Djure Jaksica 9, tel. 187-360, 3281-479 • ELECTRICAL INDUSTRY MUSEUM, Skenderbegova 51, tel. 630-285 • POST MUSEUM, Majke Jevrosime 13, tel. 3210-325 • ARCHITECTURE MUSEUM, Djure Jaksica 9, tel. 187-360, 3281-479 NATURAL HISTORY MUSEUMS: • MUSEUM OF NATURAL HISTORY, Njegoseva 51, tel. 344-2149, 344-2568 • MUSEUM OF SERBIAN MEDICINE, Dzordza Vasingtona 19, tel. 3245-149 ART MUSEUMS • AFRICAN ART MUSEUM, Andre Nikolica 14, tel. 651-654 • THEATRE MUSEUM, Gospdar Jevremova 19, tel. 626-630 • CONTEMPORARY ART MUSEUM, Usce, tel. 311-5713 • DESIGN MUSEUM, Vuka Karadzica 18, tel. 626-494 • CINEMA MUSEUM, Kosovska 11, tel. 324-8250

Temples ADVENTIST CHURCHES Bozidara Adzije 4, tel. 453-842 Kumodraska 85a, tel. 493-235

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BAPTIST CHURCH Slobodanke Danke Savic 33, tel. 410-964

Sv. Car Konstantin i carica Jelena, Jove Ilica 123, tel. 472-295 Sv. Georgije, Zrmanjska 1, tel. 555-942 Sv. Marka, Bulevar kralja Aleksandra 17, tel. 323-1940 Sveta Trojica, Zemun, Cara Dusana 83, tel. 100-301 Vaznesenjska crkva, Admirala Geprata 19, tel. 643-533

MOSQUE Bajrakli Mosque, Gospodar Jevremova 11, tel. 622-428

REFORMIST CHURCH Dobracina 33, tel. 631-398

ORTHODOX CHURCHES Crkva Ruzica i kapela Svete Petke, Kalemegdan 6, tel. 630-400 Hram Svetog Save, Krusedolska 2, tel. 432-585 Pokrov Presvete Bogorodice, Kajmakcalanska 55, tel. 424-431 Saborna crkva Sv. Arhangela Mihaila, Sime Markovica 3, tel. 635-832 Sv.Aleksandar Nevski, Cara Dusana 63, tel. 629-274 Sv. Apostoli Petar i Pavle, Bulevar vojvode Putnika 11, tel. 663-120

ROMAN CATHOLIC CHURCHES Crkva Krista Kralja, Krunska 23, tel. 323-2308 Svetog Petra, Makedonska 23, tel. 322-6919 Crkva sv.Ante, Zemun, Strosmajerova 6 Blazena Devica Marija, Hadzi Mlentijeva 75, tel. 435-712

CorD | May 2004

RUSSIAN ORTHODOX CHURCH Crkva Svete Trojice, Takovska 4, tel. 334-1894 SYNAGOGUE Synagogue, Marsala Birjuzova 19, tel. 622-634

CULTURAL CENTRES • BRITISH COUNCIL, Terazije 8, tel. 3023-800 • CENTRE FOR CULTURAL DECONTAMINATION, Bircaninova 21, tel. 681-422 • STUDENTSKI GRAD CULTURAL CENTRE, Bulevar AVNOJ-a 179, tel. 2691-422 • BELGRADE YOUTH CENTRE, Makedonska 22, tel. 3220-127 • DOM VOJSKE JUGOSLAVIJE, Brace Jugovica 19, tel. 323-99-71 • FRENCH CULTURAL CENTRE, Zmaj Jovina 11, tel. 3023-600 • GERMAN CULTURAL CENTRE, Knez Mihailova 50, tel. 2622-823 • ITALIAN CULTURAL CENTRE, Njegoseva 47/III, tel. 244-23-12, 444-72-17 • KULTURNI CENTAR BEOGRADA, Knez Mihailova 6/1, tel. 621-469 • INTERNATIONAL CULTURAL CENTRE, Terazije 26, tel. 688-840, fax. 687-760 • RUSSIAN CULTURAL CENTRE, Narodnog fronta 33, tel. 642-178, 688-300

• REX, Jevrejska 16, tel. 3284-534 • STUDENTS CULTURAL CENTRE, Kralja Milana 48, tel. 659-277 • FOUNDATION OF ILIJA M. KOLARAC, Studentski trg 5, tel. 630-550 • GUARNERIUS, Dzordza Vasingtona 12, tel. 33-46-807 • INSTITUTO CERVANTES - SPANISH CULTURAL CENTRE, Knez Mihajlova/Cika Ljubina 19, tel. 632-573, 631-535 CONCERT HALLS • ATRIJUM OF THE NATIONAL MUSEUM, Trg republike 1a, tel. 624-322 • BELGRADE PHILHARMONIC HALL, Studentski trg 11, tel. 635-518 • DVORANA DOMA SINDIKATA, Trg Nikole Pasica 5, tel. 323-4849 • SAVA CENTRE, Milentija Popovica 9, tel. 311-4322, 139-840 • KONAK KNJEGINJE LJUBICE, Kneza Sime Milosevica 8, tel. 638-264

Newly Accredited Republic of Tunisia (30th March 2004) H.E. Mr. Radhouane Larif Ambassador Extraordinary and Plenipotentiary Born in 1950, Mr. Larif has obtained a Master's Degree in Law from the Public Law Section.

Prior to taking up his latest post, Mr. Larif had held prestigious positions of the Chief of Division at the Direction of Political Affairs for Europe and America, Deputy General Consul of Tunisia in Paris, Minister Plenipotentiary at the Embassy of Tunisia in the Federal Republic of Germany and Director for Relations with Non-Community Europe at the Ministry of Foreign Affairs.

Mr. Larif speaks English and German. He is married with three children.

Republic of Italy (30th March 2004.)

H.E. Mr. Antonio Zanardi Landi Ambassador Extraordinary and Plenipotentiary Born in 1950 in Udine, H.E. Mr. Landi acquired a Law Degree from the University of Padova. He previously served as Counsellor at the Italian Embassy in London, Private Secretary to the Minister of Foreign Affairs, Secretary General of the European University Institute, Private Secretary to the Minister of Foreign Affairs in charge of Parliamentary Relations and Head of the Secretary-General's office within the Ministry of Foreign Affairs.

H.E. Mr. Landi is married with three children.

Malaysia (30th March 2004) H.E. Mr. Dato' Saw Ching Hong Ambassador Extraordinary and Plenipotentiary H.E. Mr. Dato' Saw Ching Hong (54) has served in his country's diplomatic representative offices in Nigeria, China, Cambodia and the U.S.A; as well as holding key positions in the Cambodian Ministry of Foreign Affairs.

Prior to his appointment as Ambassador Extraordinary and Plenipotentiary in Belgrade, the married father of two was Malaysian Ambassador to Guinea.

Republic of Estonia (8th April 2004) H.E. Mr. William Mart Laanemae Ambassador Extraordinary and Plenipotentiary H.E. Mr. Laanemae was born in 1959 in Vancouver, Canada. He obtained a Masters Degree in Materials Science at the University of Toronto and later a Doctorate Degree in Chemistry from Stuttgart University. He has previously worked as an engineer at the MTU München GmbH in Germany, Senior Editor and Acting Director of Radio Free Europe, Commercial Director of Estonia-based Silmet, Deputy Undersecretary for Policy, Press and Information at the Estonian Ministry of Foreign Affairs and Ambassador of the Republic of Estonia to the Republic of Austria.

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A testament to the richness of Serbian history

Serbian art in Metropolitan Museum

Historical works of art from Belgrade's National Museum and Serbian Orthodox Church Museum, as well as a selection of Serbian monastic treasures and pieces contributed by the Serbian Academy of Art and Sciences, have been gathered under one roof for the first time. However, this unique collection of medieval Serbian artwork is not being displayed in the Balkans, but rather far away across the ocean in the American art-loving city of New York. until its seizure by the Ottoman Empire.

The exhibition, the third in a series of Byzantine art exhibitions staged by the New York Met, is seen as an opportunity for those only familiar with medieval Christian works of Western European Catholicism to learn about the diverse artistic history of European Christendom's Orthodox nations.

Serbia has contributed with some of the events most prominent and eye-catching exhibits, which include King Milutin's plastanica (1300), Jefimija's vez - an embroidered work (1402), a mitre made by Serb ruler Djuradj Brankovic's daughter Katarina (15th century), a 15th century Evangelist manuscript, gold-plated in 1556 by prominent goldsmith Vuk Kondo; the Banja Monastery's mounted icons (1559-60) and a 14th century kivota of Holy King Stefan Decanski, and many others. Belgrade's artlovers will have the chance of seeing these priceless historical works when the exhibits go on display in Belgrade, after the New York exhibition ends in July.

Double sided icon of Virgin Hodegetria and Annunciation

By Slobodan Kostic

T

he 23 Serbian exhibits - works produced between the 13th and 16th centuries - form part of New York Metropolitan Museum's latest monumental exhibition ‘Byzantine: faith and power (1261-1557)’, which features a total of 350 exhibits from 30 countries and 130 museums.

The exhibition covers art from the period when the city of (Constantinople -Istanbul) was rebuilt as the imperial capital of the eastern Roman Empire

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Monumental Metropolitan mistake The first exhibition in the series, ‘The Time of Spiritualism’, did not incorporate Serbian art for the simple reason that the state of Serbia did not exist in the early Byzantine period. Serbian art did appear at the second exhibition ,’Byzantine Glory: IX-XIII centuries‘- due to the Yugoslavian wars of the time and the resultant cultural sanctions.However, the New York museum mistakenly placed Serbia within the borders of Bulgaria, and accredited monastic Serbian work to its historical neighbour.

Slobodan Mileusnic, curator of the Serbian Orthodox Church Museum, assured CorD that such a monumental error will not happen again, saying

"that injustice has now been rectified".

Mileusnic, also a member of the team responsible for selecting exhibits to be displayed in New York, explained: "…it was a dilemma deciding whether we should show up at this global event at all because our cultural treasures had been exhibited as Bulgarian heritage at the previous event, and registered as such in the catalogue. However, it was my opinion that we must take the opportunity to show who our ancestors were and present our historical, cultural and spiritual foundations’’.

"Serbia's affirmation at this year's event was extremely positive and important for our country's status, as it is a kind of cultural diplomacy. Hence, the Serbian Orthodox Church selected the most significant exhibits from its collection for the New York exhibition".

Championing Kosovo issues According to the Serbian Ministry of Culture, the exhibiting of these works is also a chance to draw public attention to the destruction of medieval monuments in Kosovo.

Speaking to CorD, assistant Serbian Culture minister Jovan Despotovic said: "Serbia's participation … at the New York event is an appearance of utmost importance for our art and culture. It is also an opportunity to raise the issue of reconstructing and protecting the cultural history of Kosovo with the international community, the Council of Europe and the European Union, as this heritage is integral to the cultural heritage of Europe and the wider world."

The exhibition incorporates works from across Orthodox Christendom, with special retrospectives of works from Constantinople, Russia, Serbia, Bulgaria, Greece and Armenia. Exhibits include an icon of the Odigitria Mother of God, with a silver fetter and

It has taken centuries for this treasure, these priceless works of art, to be gathered in one place- the New York Metropolitan Museum. Art is proof that Serbia shared the values upon which modern Europe was built.

Blagovesti inscribed on the reverse, two icons by Monk Longin of the 16th century, Rodop's bell, a Milentije Monastery rosette and Queen Theodora's ring. Manuscripts from the Serbian Academy of Art and Sciences are also being exhibited in the Metropolitan's gallery.

The pieces contributed by Serbia were selected on the basis of historical and monetary value, with special attention paid to significant Serbian pieces from Serbia's 13th - 16th century .

According to Branka Ivanic, manager of the National Museum's medieval art department, an early 13th century fragment of an apostle's figure, from the Gradac monastery's fresco, was selected because it dates back to the reign of King Uros I, whose rule marked the beginning of Serbia's expansion.

The inclusion of King Milutin's gold-threaded

St. Sava and Simeon plastanica from 1300 and a marble bust of the Mother of God and Christ from the Sokolica monastery's church portal were selected because Milutin introduced Byzantine customs, clothing and dining habits to the Serbian royalty.

Byzantine spirit alive and well These many works are not only testament to the artistic prowess of the artists of the time, but also to the Byzantine spirit and the notion that Byzantine was as much an idea as it was an empire.

Indeed, the Byzantine idea greatly outlived the empire itself and its culture is imbedded in the cultures of other nations, particularly neighbouring Christian Orthodox countries, where the Byzantine influence can be seen in both architecture and applied art.

It is crucial that works of the Byzantine period be included in major European collections, and the inclusion of Serbian pieces have shown the generosity of historical Serb rulers, who gifted precious works of art to the church and prominent figures of the era. Two such tokens are the twin icons of Holy Apostles Peter and Paul, which were gifted to Pope Paul IV by Serbian Queen Jelena, mother of Serbian kings Milutin and Dragutin, and have since resided in the Vatican Museum. A relic of Toma Preljubovic is kept in a Spanish cathedral, while Radoslav's Evangelist manuscript made the trip to New York from St. Petersburg's National Library.

It has taken centuries for this priceless collection to be gathered in one place, and it is a credit to the New York Metropolitan that they have managed to do it. Art is a cohesive force and this collection has proved the preservation of the Byzantine spirit long after the empire itself was reduced to rubble. Serbia's contribution is proof that the old kingdom once shared the values imbedded in the foundations of modern Europe, and acts as a reminder of Serbia's rich history and its historical ties to its region, at a time when the country is desperately trying to find the place in today's Europe.• CorD | May 2004

81

Rafting

White-water rafting

By Sonja Rados

You would be forgiven for thinking that the adventures of rafting are fraught with danger. However, this is not the case with the guidance of experienced rafters, attuned to shifts in water currents and the particular whims of the waterways.

CorD's Sonja Rados braves the waves and investigates the lure of leisure rafting in the state union.

W

hether you are a tourist looking for fun, a sporty person seeking an exciting alternative to the gym or simply an adventurous spirit looking to broaden horizons, the rafting experience should prove an irresistible challenge. Whether you choose traditional or modern methods, a rafting holiday will provide unforgettable moments of thrills and spills, romantic evenings around the campfire and many more tales to tell. As well as being exciting and intriguing, rafting is also a safe pastime.

The internationally accepted term 'rafting' or 'white-water rafting' is used to refer to a freeflowing descent down a rapidly flowing mountain river in a specially designed rubber craft.

No age limits apply to rafting, but those choosing to have a go are not advised to bring small children along. Upper age limits are only in the mind of the applicant: anyone feeling young or fit enough is welcome to participate in the adrenaline generating adventure of rafting.

However, the local term 'splavarenje' is more commonly used here; although traditional 'splavarenje' rafting involves a more dangerous journey on a traditional wooden raft.

It is undeniable that the rubber-rafting alternative is a much safer and pleasurable experience; although some argue that the traditional method - which not only carries risk and a higher price tag, but also doesn't allow for inexperienced rafters to be involved in navigation - is

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Rafting

stooped in the romance and spirit of yesteryear.

Hurtling down wild rivers with just a flimsy rubber raft and a piece of wood for guidance may sound like a risky business, but with experienced professional rafters familiar with every twist and turn of the tide to guide you it is an extremely safe adventure.

Rafting is possible year-round, provided conditions are right. But if the rivers are bloated by seasonal storms or felled trees race down the torrent it can

The Lim is a beautiful, picturesque river, weaving its way through canyons under green-topped cliffs. The Lim is a rollercoaster mix of adrenaline-pumping rapid river sections, followed by relaxing serene stretches through landscape that pleases the eye. prove simply too dangerous to raft. Summer is the ideal time for rafting, with the official safe season running from May to October.

No age limits apply to rafting, but those choosing to have a go are not advised to bring small children along. Upper age limits are only in the mind of the applicant: anyone feeling young or fit enough is welcome to participate in the adrenaline adventure of rafting.

For a unique and exciting experience on the foaming flows of the rivers Ibar and Lim, join the MRI rafting club for a holiday with a splash, and to find out why tourists from across the globe are choosing to sign up for rafting in Serbia-Montenegro.

Rafting on the Ibar River Rafting trips vary between one-day excursions and one-week voyages. The course of the trip is an 83-kilometre stretch of the Ibar between the towns of Raska and Kraljevo. The journey takes four days by raft, but an extension of your visit is recommended to

allow for essential sightseeing and river swimming.

The trip begins at the confluence of the Rivers Raska and Ibar, close to Ras - a central town of the medieval Serbian kingdom. Historical monasteries Sopocani and Djurdjevi Stupovi are among must-see historical and cultural sights in the area.

The first day's journey covers an 18-kilometre stretch to Biljanovci, passing the ancient town of Brvenik and providing the opportunity to tour the nearby Stara Pavlica and Nova Pavlica monasteries.

The second day involves a short dash down the river to Usce, taking in Buka (noise/cascade) Grmcic, so called because of the din caused by the tumultuous waterfall in this most rapid section of the Ibar. It is here at Sava's Pots - fabled as a location where Saint Sava fished - that the river shows its true wild nature: frothing and foaming loudly as the water rushes toward the valleys below. Rafters can enjoy a swim in this scenic stretch of the Ibar.

The journey from Usce to Maglic begins the next morning. This 21-kilometre stretch along the Lilac Valley is considered the most picturesque section of the trip. The Lilac Valley is awash with blue and purple lilac, forming the biggest mass of lilac in the Balkans. The lilac shrubs were planted along the entire stretch of the valley by Serbian King Uros I in the 14th century as a gesture of love for French Princess Helen d'Anjou,

Rafting

Lim provides the complete rafting experience and the chance to enjoy the sights and visit historic riverside monasteries Kumanica, Davidovica and Mileseva

Rafting Club "MRI"

The arrangement includes: organising the rafting trip, overnight accommodation in tents and optional half-board or fullboard meals. The arrangement does not include transportation to and from the point of departure of the rafting trip.

The trips usually start every Thursday and end on Sunday. The price of the arrangement depends on the chosen section of the river and ranges from 10 to 70 Euros per person. Contact address: Rankovic Mileta, 14224 Lajkovac.

Phone: 063/704-73-73; 063/331-72-72 CorD | May 2004

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Rafting who later became his queen.

This romantic setting provides the perfect campsite for today's rafters, with a beautiful sand beach on the Ibar and the medieval town and fortress at Maglic towering in the distance.

The final day's rafting is a leisurely 42-kilometre journey down the now wide and tranquil river to Kraljevo, via the spa towns of Bogutovacka banja and mataruska banja and the Zica monastery.

Upon arrival in Kraljevo, your belongings will be loaded into vehicles and you will be returned to the point of departure, where you could be tempted to begin the trip all over again.

Rafting

Rafting on the River Lim

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Deep in mountainous Montenegro at the town of Plav, the River Lim begins its 140-kilometre course.

The entire stretch is navigable, until it finally merges with the River Drina close to the town of Visegrad immortalised by Ivo Andric's Nobel Prize winning

Rafting trips vary between one-day excursions and one-week voyages. The journey takes four days by raft, but an extension of your visit is recommended to allow for essential sightseeing and river swimming. book The Bridge on the Drina.

A rafting trip from Plav to the Drina takes fourfive days, but shorter trips down Lim's most attractive sections are available.

Cutting through mountain canyons beneath green-topped cliffs, the Lim is one of Europe's most picturesque rivers and a veritable sightseeing bonanza. A rollercoaster mix of adrenaline-pumping rapid

river sections, followed by relaxing serene stretches, a trip along the Lim provides the complete rafting experience and the chance to enjoy the sights and visit historic riverside monasteries Kumanica, Davidovica and Mileseva.

The first day, from the river source at Plav to Andrijevica - 29-kilometres away, is the steepest and most exhilarating stretch of the river. After a night's rest, it's on towards Pod through the fastest section of the river. The current is swift, but the course is clear and the river offers spectacular views of the Komovi mountain range and snow-capped Mokra Planina (Moist Mountain). After your senses are sufficiently relaxed by the views, it is time to navigate Lim's longest stretch of rapids in the canyon, which leave nobody feeling indifferent.

After that battering of the senses, the next day involves a leisurely trip through a more tranquil web of river channels to the town of Bistrica. The fourth day will see rafters journey through the most attractive section of the river - a canyonous watercourse rippled with rapids and cascades.

Lim is not considered a dangerous river and it is perfectly okay to abandon the raft for a swim at almost any time. The Lim provides the ideal opportunity for novices to have a first rafting experience with enough excitement and relaxation for a complete adventure.

These are the trips recommended by the MRI rafting club. The Lim and the Ibar are just two of Serbia-Montenegro's many rivers worthy of rafting holidays. You can never tire of rafting down a wild river and the experience will always leave you hungry for more.

The club offers the chance for those interested to modify arrangements in terms of content and duration to suit your rafting needs.•

Classified

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Fashion

Belgrade Fashion Nights Fashion Agency FABRIKA (Factory) was the organiser of Belgrade Fashion Nights on April 3rd and 4th at the Colonial Sun sports club in Senjak (district of Belgrade) and provided a great opportunity to see the latest trends in fashion clothing.

The idea behind Belgrade Fashion Nights was to present this season's collections of leading international fashion companies only 20 days after Milan Fashion Week.

The first night featured collections by EXTE, GF FERRE and JUST CAVALLI, while the second night was reserved for DOLCE&GABANA (D&G) and VERSACE JEANS COUTURE. Belgrade had the honour to be the first city outside the world's official fashion centres to see these collections The collections were displayed by models from Fashion Agency FABRIKA, renowned for bringing the world's leading fashion designers to Belgrade.

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Fashion

GF Ferre

D&G

Versace Jeans Couture

D&G

Fashion Just Cavalli

D&G

EXTE

Versace Jeans Couture 88

CorD | May 2004

Fashion

Versace Jeans Couture

Versace Jeans Couture Versace Jeans Couture

GF Ferre

CorD | May 2004

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Techno Talk name:

url: description:

name:

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BenQ DC S30

price:

www.benq.co.uk The multi-faceted camera is back in town in the shape of BenQ's delightful little S30. For your € 300.00 outlay you get three megapixels, 3x optical zoom and the sort of multifunctionality we thought had gone the way of the Betamax tape. BenQ calls it a 'Personal Digital Entertainment Center.' We call it a digital camera with cool bells and whistles tacked on for your pleasure. An integrated voice recorder, an FM tuner and an MP3 player cater for your muttering-toyourself and entertainment needs in between snaps. Mind you, don't go giving away that iPod just yet, since the 256 MB SD card shares image and music storage duties.

A few tracks, yes; several albums' worth, no.•

Acer C302Xmi

www.acer.co.uk.

The concept of a tablet PC is simple- it's a notebook with a touch-sensitive screen that allows you to control the mouse with a pen.

Unfortunately, the first generation of machines was savaged for being underspecced and overpriced. Acer seems to have taken such criticism rather personally and, like the 97lb weakling who had sand kicked in his face, it has sent its tablets to the gym.

Fortunately, the Anti-Doping Agency didn't notice. The result is a beefed-up muscleman of a notebook, with 12.1 in screen, 1.6 GHz processor, 512 RAM and a 60 GB hard drive.

A powerful beast, it's true - but you'll need to be Charles Atlas to Carry it any significant distance.• : cca € 2300.00

Thomson Lyra PDP2810

: cca € 300.00

www.thomson-europe.com Like passing trains in the night, increasing capacity and decreasing device size have somehow shot right past each other. Some disturbance in the time / space continuum has allowed this to happen, resulting in a new wave of MP3 players that defy common physical law. This Thomson, a convenient example, can hold up to 1.5 GB of meaningless pop despite weighing barely enough to flex a tendon. A descent 12 hours of battery life is claimed, after you have charged it via the USB 2.0 connection to your PC. As universal anomalies go, this Thomson is a beauty, but goverment scientists might not release it until April.• Retail price : cca € 300.00

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Techno Talk name:

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Nokia 5140 Fitness monitor

www.nokia.co.uk You have to feel sorry for the 5140: the latest in a distinguished line of Nokia mobiles for outdoors types. It is doomed to the same dreary existence as a normal mobile save for the occasional comic dunk in a pint of lager.

The camera will get used, of course, but probably not for pictures of the view from the top of Ben Nevis. As for the integrated digital compass, Fitness Coach application and compatibilitty with two new Polar heart monitors - well, they're all there in case the user changes his lifestyle. He's unlikely to buy the Fitness Monitor, a digital pedometer that synchronises with the Fitness Coach Software via infrared, nor the Xpress-On cover that adds GPS functionality ( pictured).• : tbc

name:

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Philips Pronto

www.philips.com Philips' Wi-Fi- enabled universal remote control costs more than some whole home entertainment systems, and has enough computing power on board to control a spacecraft. Wi-Fi hooks you into your home network and the device replicates button layout on its touchscreen. It allows you to create bespoke control methods to your heart's content, including insanity-inducing macro commands hundreds of button-pushes in length.• : cca € 2100.00

Canon EOS-1D Mark II

www.canon.co.uk Still clinging to your 35mm snappers, luddites? The time has come to move on.

Canon's latest professional beast makes a mockery of your fiddly film and watching-paint-dry development times with its awesome 8.2-megapixel CMOS sensors and penchant for firing off 8.5 frames per second. As used by serious photographers such as staffers at Reuters and Getty Images, the latest incarnation of the EOS-1D improves on what was already close to digital camera perfection, with a new flash algorithm to optimise exposure and a brand-new CMOS sensor with twice the resolution of the old one. And think how good it'll look hung around your neck. You'll have celebs quaking on their Prada heels as you waft by.• Retail price : cca € 6065.00

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Techno Talk name:

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Netgear DG 34G

GBA Movie & MP3 Adaptor

www.a1goods.co.uk If the idea of a Game Boy add-on that plays movies and MP3s seems a little weird, consider for a moment that, in Japan, peripherals include a TV tuner, a videoconferencing suite and a sonar fish detector. Unfortunately, few of these gadgets gems make it across the Japan Sea, let alone halfway around the world- but the Movie & MP3 Adaptor has travelled the distance.

Why? Because it works remarkably well. PC software converts MP3 music and WMV video to GBA - compatible files, which you can then record to Compact Flash card and enjoy from the comfort of your bus-seat. You'll need to buy a headphone adaptor if you don't want to be killed by fellow commuters, though.• : cca € 68.00

Wireless Router

www.netgear.co.uk A wireless router sends Wi-Fi throughout the house from your broadband net connection, linking all your gadgets to each other and the whole domestic network to the internet. It's the heart of any wired home..so don't go spilling coffee on it. The DG 834G is capable of working with both 802.11 b, Britain's current most common Wi-Fi variant, and 802.11 g, five times faster and far better for heavier data use, as with video.• Retail price : cca € 212.00

Mini convertible www.mini.co.uk Kindly, father BMW can barely make enough to keep the waving Burberry wallets at bay. One problem, though: the high shoulders and low roofline give the car a sporty, modern stance which doesn't spoil the classic lines but which does shield the occupants. In short, the Mini is too much 'Look at my Mini', and not enough 'Look at me !'. the simple solution was to take the roof off- but that's a little too easy for BMW. So instead it retracts electrically either halfway or fully, and can also open from the rear to allow large luggage items to be stowed. The convertible will be available in June. Admit it : you're already thinking what hat to wear.• Retail price : cca €19,700.00

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Techno Talk name: url: description:

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BT25 Bluetooth Necklet www.pcnextday.co.uk Wearable technology is a lovely idea, but when it comes to Bluetooth headsets it can be, quite leterally, a pain. After all, supporting a microphone , battery and wireless technology on your ear requires lugs of steel. So this novel handsfree set, compatibile with most Bluetooth mobiles, is a relief. The weighty tech sits around your neck with nothing more than a (horror of horrors) wire running to ear. Of course, you'll have to live with what appears to be a robotic snake protruding from your colar, but that's a small price to pay for comfort.• : cca € 75.00

Smart display (2003-4) www.viewsonic.com New from View Sonic! Not content with developing the tablet PC, Microsoft decided the world was also ready for LCD monitors doubled as wireless remotes for your desktop computer. After a year of total disinterest, Smart Displays were shelved.• : tbc

Nokia 3660 www.nokia.co.uk The Nokia 3650 was a great phone, albeit with one major flaw: that circular keypad, which was impossible to use let alone get used to. Thankfully the Finns have got it right this time round; they've kept the user-friendly and powerful Series 60 platform, but replaced that crazy keypad with a more familiar layout. Not content with that, Nokia has also upped the colour resolution to 65.000 colours making use of the 640x480 pixels, this makes the camera all the more enjoyable. Video capture and playback are still encouraged, as well as MIDI and WAV ring tones, and a battery with 200 hours standby time. Blimey!• Retail price : cca € 106.00 w/contract

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Bon Apetit

L

ebanese cuisine is one of the great cuisines of the Middle East. Encompassing a wide array of dishes and cooking styles, the Lebanese kitchen uses only the freshest and most flavourful ingredients and aromatic spices.

The Lebanese have combined the best aspects of traditional Turkish and Arabic cuisine and given them a French twist to create this unique flavour.

Lebanese meals vary greatly from European styles, with appetisers generally comprising nuts, sunflower seeds, pine kernels and sticks of carrot marinated in lemon juice.

The tables of traditional Lebanese restaurants will often be adorned with a centre-spread of fresh salad vegetables, before the traditional mezze of tasty hot and cold meat and vegetable starters are served.

Lebanese cuisine has a wide range of vegetarian dishes, usually containing aubergines, cheese, pulses or beans.

Traditional meat dishes of chicken, lamb or grilled fish are accompanied by rice and salad and served with Lebanese pita bread.

The Lebanese national dish - Kibbeh - is a tasty blend of finely minced lamb and cracked bulgur wheat and, if you still have room for more after all that, you can end your meal with fresh fruit, traditional pastries, sweets or puddings.

LEBANESE CUISINE Belgrade's very own Lebanese restaurant, Byblos, is celebrating its first anniversary. Byblos offers a menu of over 70 Lebanese dishes and a wide selection of world wines.

Byblos' head chef, Said Elsayed Saleh, has vast experience as a chef for the Sheraton Hotel chain and has cooked in Lebanese restaurants from Kuwait to Saudi Arabia.

Byblos is open every day from noon to midnight. And every Thursday evening Byblos stages belly-dancing performances and offers traditional Arabic aromatic pipe-smoking.

HUMUS BIL TAHINA (chickpea puree with tahina sauce) 250gr. chickpeas 50gr. tahina sauce 50gr. olive oil Lemon juice Salt Soak the chickpeas in water for 12-15 hours, before cooking on a medium heat for half an hour.

Allow the chickpeas to cool before blending with tahina and olive oil. Add salt and lemon juice to taste.

Blend the mixture until smooth and creamy.

Serve cold with pita bread.

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Bon Apetit TABULEH - Queen's salad 5 stalks of parsley, finely chopped 1 medium-sized tomato, diced 10 small onions or shallots, finely chopped 25gr. cracked wheat or couscous 1 clove of garlic, finely chopped Olive oil, salt, lemon juice Mix together and serve as a simple starter with pita bread.

MUTABAL (aubergine dip) 500gr. tahina sauce 300ml. boiled water 25gr. grounded garlic, pinch of salt 20ml. malt vinegar 200gr. cooked aubergine, finely 1 onion chopped, baked in the oven and finely chopped Mix tahina, water and garlic, adding salt to taste.

Add aubergine and onion. Mix well. If preferred, add sour cream for extra flavour.

Serve as a cold starter with pita bread

SHOLKAF (beef kebabs) 500gr. diced beef, Marinade: 50gr. olive oil, 25gr. pressed garlic, 25gr. malt vinegar, salt and pepper 1 skinned, mashed tomato Marinade the meat in a sealed container in the refrigerator for 24 hours. Skewer the meat and sear on the grill or barbecue. Serve as a main course accompanied with either rice, chips, roast potatoes and/or boiled vegetables

KIBBEH SANIYA 500gr. lean minced beef 100gr. cracked bulgur wheat or couscous 1 medium-sized onion, 3 cloves of garlic salt and pepper, 20gr. choppedalmond, 20gr. pine kernels Soak the bulgur wheat in cold water for 30 min.

Slowly fry 100gr. of the mince, adding half the onion and one clove of garlic (finely chopped).

Blend the remainder of the meat, onion and garlic. Add the bulgur wheat.

Grease a baking tray and cover with pastry (eight mm thick). Place half of the uncooked mixture on the pastry and add a layer of the fried mixture, and chopped almonds and pine kernels. Add a final layer of the uncooked mixture.

Contact Byblos: Tel - (011) 244 1938, address - Knjegnije Zorke, 30.

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The vintage cigar

Passion and Perfection

By Lou Chantal Ruda

A

Tabacco

fter ten years with much enthusiasm and a burning passion, he succeeded in creating out of his vision, a unique hand rolled world-class premium cigar which is listed alongside the great names from Cuba and the Dominican Republic. In 1992 Helmut Bührle founded the company Laura Chavin Cigars and, from the start, was convinced that it takes time to produce a great cigar. From the seeds of hope to the birth of a dream, the process of planting, mixing and maturing took place without any hint of wanting to speed things up. Two years go by before he buys his first tobacco crop, in 1994, amongst which were two tons of the rare Corona leaf. Further years of of patient waiting followed, however his passion, together with his continuing drive for perfection, urges him on and drives him forward. “A cigars speaks truthfully of the conscientiousness of all those whom it encounters.” In the production of a great cigars there is just one single significant criteria: the reliability of ist quality. This is comparable with the sporting world in which a golfer is jugded by his exactness and reliability.

Time and time again, an unchanging performance remains the hallmark of quality.

Through his strict choice of tobacco and the consistent buildup of his stocks, Helmut Bührle has developed a method based on the principle that this result will be achieved.

In 1998, his “Laura Chavin” appears for the first time and meanwhile has its place in that premium sector of the brown gold, together with the best of the

HUMID’OR, a piece of art manufactured completely by hand and it is a new gerneration of the regular humidors, only available at selected exclusive cigar stores 96

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“Tobacco is the plant which transforms our thoughts into dreams.” Once wrote the French Romantic and cigar enthusiast, Victor Hugo. Helmut Bührle is also a self-confessed “bon viveur” and recognises, in a good cigar, the gift of nature, the art of the craftsman and the creative spirit. For these reasons, he went one step further than the writer. The 55-year-old Swabian transformed his dreams into reality: Laura Chavin - the success story is as extraordinary as the name. world: Partagas, Cohiba, Montecristo and Dunhill. The cigar is named after his daughter, Laura Chavin; Chavin was also his mother’s second christian name, a respected and international tobacco merchant who, very early on, made him familiar with the blue aroma and the great names of the tobacco world. However, Helmut Bührle was

As with a top-class wine, the tobacco aromas need a number of years to reach their maximum level of enjoyment at first more enthusiastic about marketing and design and worked as an international designer for makers of luxury brands such as Hermés, Ferré, Enrico Coveri and Davidoff, before reconsidering again his fascination for the brown gold.

Today, Laura Chavin encompasses three different cigar lines made only from tobacco types which have been stored for several years. Along with “cigar” and “pur sang”, the tobacco mixture of which contains, among others, the Corona leaf which even dedicated Cuba-smokers find exciting, Helmut Bührle offers a rarity: “concours des meilleurs connaisseurs” tobacco mixture is kept secret.

Limited to 500 boxes per year, it now has a waiting-list which contains names from far and wide.

These Caribbean gems are stored in a perfect air-conditioned environment in the more than 300-year-old cellar vaults of the

Classified

LAURA CHAVIN, encompasses three different cigar lines made only from tobacco types which have been stored for several years company’s headquarters, Schloss Hochdorf, near Stuttgart, and are delivered to selected licensees at home and abroad only after a further five months of quiet and additional fermentation have passed.

However, enthusiasts often allow the cigars they have ordered several more years of storage in order to bask in that rare achievement of the vintage cigar.

As with a top-class wine, the tobacco aromas need a number of years to reach their maximum level of enjoyment. For this reason, too, Helmut Bührle and his team developed the HUMID’OR which redefines the demands on optimal storage. Equiped ith a patented micro control, steered by sensors, which ensures a constant humidity level in the cigars of 13%, it enables the connoisseur to create his personal vintage cigars at home. Despite the innovative electronics, the HUMID’OR is by no means a hightech gadget, rather an individually produced and quite unique item. Similar to a sculpture or a work of art, shaped out of solid Spanish cedar, acrylic glas, polished stainless steel and and twelfe-layered polyester varnish or exquisite veneer. As a continuation of the perfect storage of cigars, Helmut Bührle also developed the “maison des cigars”, a pocket humidor for the connoisseur whilst travelling. The case, made of stainless steel and bound in finest calf leather, keeps the cigars up to a fortnight under optimal conditions and, like the HUMID’OR, is made by hand according to all the rules of the craftsman’s art. After all, true to his vision of the best cigar in the world, Helmut Bührle strives, with all his knowledge and experience, to achive a consistent quality product, and this also applies to accessories. In the end, it is a question of dedication to a single obsession: passinate enjoyment, which again and again turns our thoughts into dreams. •

Belgrade Directory Belgrade Directory: How to... > enroll children in school? > obtain translation and interpreting expertise? > get to know Belgrade and its surroundings? > learn Serbian? > to look at the stars through a telescope? > travel by train?

How to...

CorD's editorial staff will attempt to find and give answers to questions of current interest to our readers, so please send in your questions for future editions. In this issue, we reply to the most fre quently asked questions amongst newcomers to Belgrade.

... enroll children in school?

• For parents who are temporarily resident in our country and wish to enroll their children into primary and secondary schools it is possible to obtain official information directly from the Ministry of Education and Sports of the Republic of Serbia. The ministry's officials will advise you on the enrollment possibilities for foreign citizens and provide you with all the necessary details. For further information - Tel: 363 10 18 or 363 10 32.

> find out about philately - numismatics? > tango to live music?

surroundings daily through panoramic telescopes (30 x 80). Night observation is also possible through astronomical telescopes that enable you to see the Moon, Mercury, Venus, Mars, Jupiter (and satellites), Saturn and its rings, stars clusters and constellations. The observatory is open for visitors on Tuesdays, Wednesdays and Thursdays from 9 a.m. to 4 p.m., and on Fridays and Saturdays from 3 p.m. 10 p.m. Information Tel: 30 32 133.

… travel by train? … obtain translation and interpreting expertise?

• If you need an expert translation or an interpreter for business purposes you may contact a selection of institutions providing high quality services, with expert speakers in a number of languages. We recommend: - Serbia Translators Association 9, Kicevska St., tel: 444 29 97 - Foreign Languages Institute 35, Gospodar Jovanova St., Tel: 262 30 22 - Foreign Languages Centre "International" 2, Zetska St., Tel : 324 40 39.

… get to know Belgrade and its surroundings?

• The best way to get to know Belgrade and its surroundings is to take an organised excursion and sightseeing tour operated by the capital's Tourist Organisation. Starting from May 15th, tourists in Belgrade will also have the opportunity to see the city by boat. Further information on organised excursions and sightseeing can be obtained from web site: www.tob.co.yu or Tourist Information Centres located in the city centre - Terazije St., Palace Albania underground passage, Tel: 635 622 - 18, Knez Mihailova St., Tel: 698 031.

• At the beginning of the travel season you should consider making your journey by train. All information regarding passenger travel as well as transporting your car by train can be obtained from the Railway Transport Company. Information for foreign citizents - Tel: 36 84 87.

… find out about philately numismatics?

• Every month there is a fair for those interested in philately, numismatics and other hobbies. The next gathering will be held in the Jugoslavija Hotel on May 8th and 9th. In addition to this, philatelists gather every Sunday and display their collections in the Slavija Theatre, 16, Svetog Save St. More details can be obtained from the Serbia Philatelists Association - Tel: 638 751.

… tango to live music ? … learn Serbian?

• If you want to learn Serbian it is best to contact the experts.

"Bella Lingua" is operating its next course from April 15th to June 11th. Further information on courses and enrollment is available - Tel: 244 90 90 or e-mail: bellalingua@eunet.yu

… to look at the stars through a telescope?

• At the "Rudjer Boskovic" Astronomical Society, located at 16, Upper Town, Kalemegdan Park, you can observe the city and its

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• The "Guarnerius" Fine Arts Centre is the only place in Belgrade where you can tango to live music and listen to the bandoneon - a special kind of accordion designed for the Argentine music played by the "Beltango" ensemble.

These evenings are organised on Fridays from 9 p.m., at the "Guarnerius", 12, Dzordza Vasingtona St. For further information - Tel: 33 46 807.

F oreword

A

ustria has had traditionally close relations with Serbia-Montenegro. After the year 2000, these relations were intensified in many ways: Political visits at the highest state level, as well as by ministers; and experts from line ministries became routine visitors to the stare union. In substance, cooperation, exchange of information and support in relation to EU integration has become the focus of our bilateral relations.

In the economic and commercial fields very dynamic developments have taken place: Austrian companies started to enter the SerbiaMontenegro market providing services, in particular in the banking, legal advice and insurance sectors. Production facilities have been established to offer mostly qualified jobs for high quality products. Yet, the economic potential has still not been exhausted. Further adaptation of the legislative basis to international standards, as well as political stability, will pave the way for continuation and expected intensification of Austrian investments.

In the framework of the Austrian bilateral development of co-operation with Southeast Europe, various projects have been implemented in Serbia and Montenegro, particularly in the areas of environment, education, social affairs and employment. A special focus was the transfer of technical and organisational know-how in view of Austrian experiences as a EU member country.

The events of October 2000 led to a very dynamic revival of the traditionally close relationship of both countries in the fields of culture and science. Many joint projects have brought together especially young artists from both countries.

As a consequence of this intensification, the Austrian Cultural Forum in Belgrade was established in December 2001 to support close cooperation in the cultural and scientific fields.

Finally, the tens of thousands of Serbs and Montenegrins who have been living in Austria for decades have been playing an important role in shaping our relationship. They essentially contribute to the mutual understanding of our people.•

H.E. Mr. Hannes Porias Ambassador of the Republic of Austria

CorD SPECIAL - Austria

CorD SPECIAL | May 2004

3

I nterview

ISSUES NEED RESOLVING

Dr. Herbert Preclik

Interview

representative of the Austrian Chamber of Commerce

4

"I hope economic development will not come to an end here. The previous government did extremely well in just three years and its results are self-evident. However, things slowed down markedly after the assassination of Prime Minister Djindjic, and we have to wait and see what the new government will do, as they haven't done a thing yet". So said Dr. Herbert Pretzlik, representative of the Austrian Chamber of Commerce, speaking exclusively to CorD's Jelena Grujic about Austrian investment and the many problems confronting those bringing their business to the state union.

CorD SPECIAL | May 2004

By Jelena Grujic, Photo Djordje Popovic

A

delegation of the Austrian Chamber of Commerce was perhaps the first to meet Serbia's new democratic authorities following 5th October, 2000. Austria has been among the most optimistic countries with regard to the development of Serbia's market since the country began the process of privatisation and opened up to foreign investors.

This encouraging Austrian support will only come as a surprise to those who know little about the long tradition of good relations between Serbia and Austria, and the mutual interests the two Central European states have shared for many generations.

Dr. Pretzlik, a Belgrade resident for the last four years, explained: "Around 300,000 Serbs live in Vienna, some of whom are third generation. The first foreign restaurant in Vienna was not Italian or Japanese, but Serbian. Those two facts help to explain why we are so familiar with this kind of atmosphere.

CorD SPECIAL - Austria

"The following example may provide a glimpse of the potential: back in 1990, our exports to the former Yugoslavia far exceeded our current exports to Hungary of €3.5 billion. Today, exports to Serbia amount to a mere €400 million."

So why does Belgrade need a representative of the Austrian Chamber of Commerce?

"Austrian companies leapt at the chance to come

here once things had changed as a result of the events of 5th October, 2000. At the time, there were 40 Austrian companies here. Today there are almost 140. It is crucial that we be able to offer them full support and we have developed a very successful structure to achieve that. We have our own banks, lawyers, insurance companies, foreign agencies and consultancy firms. We have plenty of organisations that can support every requirement of our companies. Thus, if they are confronted by financial problems all I have to do is ask one of our five banks for help. There are also two Austrian agencies to handle transport requirements."

Your system has been highly praised for its efficiency. It appears to be the perfect example of a state offering maximum support to its export trade sector. The body is financed by Austrian companies and, in return, they receive protection of their interests at home and abroad, where branch offices have been opened. In addition, no relevant legisla-

CorD SPECIAL - Austria

tion may be passed without the Chamber's consent. How does all that work in practice?

"The Austrian Federal Chamber of Commerce has a special status defined by law, which makes it quite different to otherwise similar organisations in the export-promotion sector. In other countries, ministries of trade or foreign affairs usually assume this role, but in Austria the chamber of commerce has been assigned the task.

"We have around 70 branch offices worldwide, which we open and close as required. Chairmen of these branch offices double as economic advisors to the embassies, and, therefore have diplomatic status. Moreover, this status gives them a say in the embassy's activities, which provides a lot of options and greater authority.

"The WKO strategy is to be proactive in new markets, rather than waiting for local economies to make the first step towards enticing our companies. We follow trends and assess which products are, or could be, interesting to Austrian companies. Only then do we take our companies to the country in question."

Interview

I nterview

What is the total investment of Austrian companies in SerbiaMontenegro so far?

"Over €200 million. However, this figure differs from the Serbian total, because Serbian sources only count direct foreign investment. For example, OMV Serbia d.o.o invested €40 million to develop a network of petrol stations across Serbia. The Serbian side doesn't see that as foreign investment, but we do, because the money came from Austrian headquarters."

Is there evidence that the enthusiasm generated by the events of October 2000 has dwindled?

"Austrian companies differ from other foreign investors because they know exactly what they are interested in; they don't need a whole list of local firms to pick and choose what they want to buy. Subotica-based company Sever is a good example. Our ATB company is in the same business of produc-

Austrian companies differ from other foreign investors because they know exactly what they are interested in; they don't need a whole list of local firms to pick and choose what they want to buy. ing electric generators and they showed interest in purchasing the Serbian firm. We put them together and the respective managements met. They are now in the final stages of talks on a potential deal. I hope they will be able to do a deal and agree on a price that will satisfy both sides. So far, only one company that we encouraged to invest in Serbia has chosen not to.

CorD SPECIAL | May 2004

5

I nterview "In contrast, German companies are far more cautious and suspicious of political changes. I think they are more frightened really. Austrian companies show no such restraint regarding investment, or business in general in your country. That is because we think long-term and deal far more easily with local methods of doing business, as they are similar to ours in many respects. We consider that a solution is always there, which makes us a lot like Serbs."

Which sector has proved the most successful for Austria's businesses here?

"I would say banking and finance. The local population's trust in banks is very low, for reasons that are common knowledge. You probably know better than I that people have lost a lot of money from numerous bankruptcies. Nowadays, they have more trust in larger, stable, more serious banks. The same applies to insurance. That particular market isn't too highly

Interview

German companies are far more cautious and suspicious of political changes. I think they are more frightened really. Austrian companies show no such restraint regarding investment, or business in general in your country. developed, but we believe it will become profitable.

"People have pensions on their minds and, at the moment. it's highly likely that they could end up receiving a pension equivalent to as little as â‚Ź100 per month, even if they earn a decent salary. That does not bode well for a high standard of living. However, they can enjoy a comfortable retirement if they invest in life insurance. The Reifeissen Bank, which opened its first branch here around three years ago, is far and away our most successful company operating in Serbia and now operates some 20 branch offices across the country."

We know that Reifeissen was declared the most successful bank in Serbia-Montenegro last year, but what problems have your companies faced in Serbia? For instance, Knauff had major problems regarding land ownership, which, as far as we know, have yet to be resolved?

"Yes, that is a key issue. All other issues can be resolved, but land ownership is a serious problem that investors have no clue how to deal with. It would be far more convenient for us if land could be bought from authorised state agencies who would take responsibility if something went wrong.

"Austrian companies do not like the local system of renting land for a period of 99 years and, as far as we know, nor do companies from elsewhere. Companies want genuine land ownership and proper receipts, which would provide total legal security.

"Major companies are reluctant to invest here because of this very problem. The system should be amended in order for companies to feel legally secure. For example, we strongly encouraged investors to build hotels because you don't

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We follow trends and assess which porducts are, or could be, interesting to Austrian companies need a market expert to see that Belgrade needs more than two good hotels. The city lacks good hotels with quality ranges of three to five stars, such as the popular Holiday Inn chain or those famous hotels where you can count on a clean bed and good service for â‚Ź70 per night. This is essential here but, as you can see, there are no such hotels in the Serbian capital. It was suggested that a hotel be constructed near the city's main bus and railway station and some foreign parties showed an interest.

However, the land ownership problem still looms over the proposals. Yet we do have companies that take no notice of this predicament."

Considering you have lived here for some time, have you found yourself in a situation where you are more optimistic about investing in Serbia than potential investors who have just began enquiry about local terms? Surely, your advice prevails in the end.

"There is a well-known Arabic saying - seeing is believing. You cannot say to anyone in Austria "investing in Serbia is a great idea. It's a wonderful country, and so on". Every seat in the house has been filled on the Western European market, while there's really plenty of room here. However, telling investors to come here is simply not enough. That is why we first organise a promotion in Austria before bringing them here to have a good look around. We advise them to pay attention to the conditions, the atmosphere and

CorD SPECIAL - Austria

I nterview

Interview

doesn't produce anything. Naturally, we strongly support those wishing to invest, purchase an existing company or set up a green field and we have outstanding cooperation with the Serbian Agency for promotion of exports and the Privatisation Agency.

"It is much more difficult, however, to entice an investor, who must lock his money into the country, than it is to tempt a company interested only in export-import collaboration with Serbian companies and individuals.

"It may be worth noting that most of our companies here are managed by Serbian nationals who have some close relation to Austria - having either lived, studies or worked there. These people have excellent knowledge of both sides, speak fluent German and have good local connections. All our major banks have double management structures Serbian and Austrian, which has proved a very sound method with a number of benefits."

You cannot say to anyone in Austria “investing in Serbia is a great idea”

the people, then they can judge for themselves whether or not they can do business here.

"No other country has organised as many toplevel visits as we have. Our president and chancellor have both been here and our foreign minister has been to Serbia on countless occasions. They came with economic delegations and representatives of major companies. During such visits we provide a network of organisations and all the necessary information, but, in the end, the decision to invest, or not, is always theirs.

"As I said, only one company has gone away and, so far, not one of our companies has had a serious problem upon arrival in Serbia. We have always been able to help them overcome the difficulties they have faced."

Which part of the region has seen the most investment

by Austrian companies?

"Hungary is definitely top of the list, with €3.5 billion.

However, one mustn't forget that reforms in Hungary started 15 years before they did in Serbia. That said, reforms in Hungary are going very well. They applied an excellent privatisation model and, of course, they are very close to us.

"Next in line is Slovenia, where we top the list of investments and exports. The former Yugoslavia used to be our second biggest partner in Eastern Europe, after the USSR." Trade is still far ahead of direct investment in Serbia.

"Yes, unfortunately. Of the 140 or so Austrian companies here, around 70 import goods to your country and have developed a distribution network. But, of course, this sector

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What are your future expectations for foreign investment here?

"I hope economic development will not grind to a halt here. The previous government did an excellent job and its results are clearly visible. Of course, the final year saw things slow down markedly and development dwindled and all but stopped after the assassination of Prime Minister Zoran Djindjic. We will see how the new government does.

"I've already met several ministers of the new coalition government and, so far, our relations are in perfect order. We have yet to see how they will do because they haven't done anything yet. Everyone is saying the country needs foreign investment, but creating conditions to facilitate their arrival is what really needs to be done.

All other issues can be resolved, but land ownership is a serious problem that investors have no clue how to deal with. Austrian companies do not like the local system of renting land for a period of 99 years and, as far as we know, nor do companies from elsewhere.

"Unlike many others, I don't want to tell the government what to do. They know only too well what is needed. However, one thing is for sure, legal security and legislation has to improve. There are brilliant experts here who know this and there are a number of great managers too, but the legal system also has to start functioning properly.

"The fact that the government comprises a contrast of parties, ranging politically from left to right, really doesn't help. And things will surely become difficult when the wishes of these parties have to be granted. This said, I hope everything will be alright because I am very happy in this country; I love my job and I know that there are many companies who would like to be here."•

CorD SPECIAL - Austria

Austria - an Economic Partner

YEARS OF ASCENDANCY According to data presented by the Austrian Ministry of Economy, SCG received 184 million euros of foreign investment in 2001, 7 times more than the year before, and made Austria the fourth largest investor in Serbia.

By Dragan Bisenic

A

Partnership

ustria is a relatively small European country with a correspondingly small market.

However, this market is very selective and competition has created high standards in terms of the quality of goods demanded by its consumers. It is a member of the EU, has a highly developed market; leading technology; a strong agriculture base and a developed tourism industry, and, as such, meets criterion to be Belgrade's "second neighbour".

Austrian companies and banks were in the Serbian market as soon as sanctions against FRY were lifted, and, consequently, had a leading role among the community of foreign investors that came to Serbia-Montenegro at that time.

The Austrian market is open to products from SCG, and there are no significant limits on the importation of goods, as the EU has granted unilateral trade benefits to SCG for over 95% of its export products. Historically, Austria has always been a very important economic partner for Serbia and Montenegro, with co-operation flourishing in almost every sector of the economy - trade, traffic, finance, industry - with Yugoslav seasonal workers in Austria being responsible for a special bond between the two

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countries - some 130,000 SCG citizens in 1990.

Trade was the most important segment in this bilateral economic co-operation. In 1990, Austria was the fifth-largest trading partner ($503 million), behind Germany, the Soviet Union, Italy and the USA. However, in terms of total revenue and the structure of bilateral trade, a negative balance existed, since only 30% of Austrian imports were made up of exported goods, and most export revenue came from products for reproduction, and frozen fruit and vegetables.

Subsequently, trade fell to 20% of its former volume during the sanctions imposed by the UN Security

The structure of Serbian and Montenegrin exports is dominated by fruit and vegetables, oil and oil derivatives, sugar, non-ferrous metals and clothing.

The largest amount of spending on imports from Austria goes on specialised machines used in certain branches of industry, general purpose industrial machines, meat and meat products and metal products.

Council, then improved somewhat in 1996. By 1999, the total volume of trade was $145.1 million (export $31.6 million; import $113.5 million). In 2000, the figure was $156 million (export $42 million; import $114. million) and has kept rising ever since.

After the change of government in Serbia in 2000, Austrian banks and companies were among the first investors in a country that had been isolated and closed for almost a decade. In 2001, total exchange was $181 million (export $34 million; import $147 million) a 16% increase on 2000.

CorD SPECIAL - Austria

Austria - an Economic Partner

Partnership

with the Austrian government approving However, export fell by 19%, while import went up €1,000,000 for this purpose. by 28.8%. In 2002, the volume of trade was $258.67 A visit by the President of the Austrian Chamber million (export 64.8 million USD; import $193.9 million). of Commerce, Christof Leitl, and a large accompaThe structure of SCG exports is dominated by fruit nying delegation in January 2001 indicated and vegetables ($20.73 million), oil and oil derivaAustria's huge interest in intensifying economic tives ($9.04 million), sugar ($7.8 million), non-fercooperation and development. Soon after (14 - 16 rous metals ($5.4 million ) and clothing ($3.4 milFebruary 2001), another delegation of Austrian lion). The largest amount of spending on imports bankers and investors came to Belgrade and Nis from Austria goes on specialised machines used in with concrete proposals and initiatives for co-opercertain branches of industry ($15.7 million), generation. A delegation of bankers and business people al purpose industrial machines ($14.8 million), also accompanied Austrian Chancellor Wolfgang meat and meat products ($13.57 million) and metal Schuessel on his visit to Belgrade on 12th October products ($12.77 million). The volume of trade 2001, and the Belgrade office of Raiffeisen Bank beetwen SCG and Autria further increased in 2003 was officially opened on that occasion. by 25.1% compared to 2002.

The result of bilteral discussions led to the conAustria is also a significant partner in the field of clusion that intensifying cooperation in trade needindustrial cooperation (joint investments, longed a lot more financial engagement by Austrian term contracts), but there are only a few deals on banks, bearing in mind the limited production activities. In 2001, capabilities of the local economy.

Austrian investors ranked fourth A visit by a delegation from in total investment in the econoKontrollbank, headed by General my of SCG with 12.1 million Manager Rudolf Scholten, was an DEM, behind Germany (33 milimportant move in that direction, lion DEM), USA (19 million DEM) since their aim was to facilitate and Cyprus (15 million DEM). the engagement of potential Austria showed a lot of interest Austrian investors in SCG. in resuming trade with SCG after In December 2001, the Austrian the lifting of UN Security Council Kontrollbank started insuring sanctions in 1997. The Austrian exports to SCG for up to € 500,000 Chamber of Commerce was quick with a 12-month return period. to visit their counterpart in SCG, Simultaneously, Austrian comand a delegation of leading mercial banks started to support Austrian bankers and business represenbilateral economic relations and tatives came in late 1997. A follow-up building their presence in SCG. meeting took place during the Danube The first foreign bank to recieve a Conference of early 1998. The Austrians permit from the Central Bank in stressed the importance of bilateral coSCG was Reifeissen Bank, while operation in the domains of agriculture Bank Stiria also opened their office and the food industry, production of elecin Belgrade. tricty, oil, gas and environmental equipBank Austria, the largest bank ment, and Austrian economic policy has in this country, received a permit more or less kept this orientaion to date. and began operating in SCG in late After the democratic changes in 2001. Volksbank International AG, Serbia, Belgrade was visited by most one of the larger banks in Austria, leading Austrian politicians, including also recently branched out into President Thomas Klestil, Chancellor SCG. According to data presented Wolfgang Schuessel and, on several by the Austrian Ministry of occasions, Foreign Minister Benita Economy, there was €184 million Ferrero-Waldner. Austria was also a big Value in thousands of USD of foreign investment into SCG in humanitarian aid donor. In November Value in thousands of USD 2001, which was 7 times more 2001, the Austrian Minister for Economic Affairs and Labour Martin Total exchange in 2003 - 322.356 than the year before. This made Bartenstein visited Belgrade, promising Total exchange in 2002 - 258.684 Austria the fourth largest investor Export in 2003 - 88.283 in Serbia. The largest investments help to overcome humanitarian probExport in 2002 - 64.806 were Bank Austria-HVB and lems during the winter and assist with Import in 2003 - 234.073 Raiffeisenbank.• the democratic development of SCG, Import in 2002 - 193.878 Balance in 2003: - 145.790 12 CorD SPECIAL | May 2004 CorD SPECIAL - Austria Balance in 2002: - 129.072

FACTS & FILES Stability & Security

Productivity & Quality

Austria is one of the most secure nations in the world. Not only when it comes to the business climate, but also the low crime rate and the stable legal system - all coming together to create a stable foundation your business can build on. And of course, in addition to its economic security Austria offers a unbroken record of political stability.

The level of industrial productivity in Austria has historically been high, and is now on a par with that of Germany. Austrian industry has succeeded in posting higher productivity gains than Germany in recent decades. Between 1992 and 2002 output per manhour increased by almost 61 in total, placing Austria above all other countries in this comparison.

Leads the World in Quality of Life

V

ienna lands in a three-way tie with Melbourne and Vancouver for the title of the world's most livable city, according to the British research group Economist Intelligence Unit (EIU). Perth and Geneva took fourth and fifth place in the study of living conditions for expatriate executives of international firms in 130 cities. The findings not only help companies set compensation for these executives but also determine where foreign operations will be located. Factors reviewed in the study include health care, personal safety, culture, environmental conditions and infrastructure. A second study by the management consulting firm Mercer ranked Vienna in a tie for third in quality of life with Vancouver behind Zurich and Geneva. That still leaves Vienna as the most livable city in the EU. Austria's capital raised its ranking thanks to perceived improvements in ethical conduct.

Falling ratings on corruption, on the other hand, led to slight drops in the rankings of German cities, according to the study. Budapest (55) und Prague (60) were the only other cities in Europe that ranked relatively high in living conditions, while Belgrade (105) continued to rank at the bottom in the category in Europe.

High level of employment

Secure Persons and Property

Austria ´s economic stability is one reason for the high employment rate. Not only within the EU - but worldwide, Austria has gained a top position when unemployment rates are concerned.

When it comes to security of persons and property, the World Competitiveness Yearbook 2002 Austria ranks as the World leader.

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CorD SPECIAL - Austria

Facts & Files

Education

Infrastructure

Austria's educational system is numbered among the best in the world - and it is largely oriented toward the needs of the business world. Serving this end are a practice-oriented educational system for skilled workers, a diversity of vocational schools and a close cooperation between institutes of higher education and the business community - all unique in the world. In raising these standards even further, Austria's investments reached almost 6% of GDP in 2001.

Austria is not just the geographical heart of the New Europe - it's also assuming a central position in the eyes of many international concerns as a distribution center and logistical hub between East and West.

The requirements for efficient and cost-effective shipping of goods are a high-performance infrastructure, reliable transportation services and strategic location. Austria offers precisely these advantages - and more. In international comparisons, the Alpine Republic receives top marks across the board as a logistical base.

Apart from the buildout of the nation's infrastructure, Austrian firms can also benefit from broad access to the international data highway.

Compared to other EU member states, Austria has invested by far the most in expanding its telecommunications infrastructure. Companies in Austria can take advantage of state-of-the-art, high-capacity networks.

C ulture

Culture

CULTURAL KALEIDOSCOPE

Text & Photo Austrian National Tourist Office

When talk turns to Austrian culture, one instantly thinks of the music of Mozart, Beethoven, Strauss or the world famous Vienna Boys Choir. Images are conjured of the spectacular architecture of such grand edifices as Schรถnbrunn Palace, Vienna's St. Stephen's Episcopal Cathedral and the myriad medieval fortresses of the country, appropriately known as the Land of Castles. Yet this is but a small fragment of the cultural achievements that Austria has given to the world.

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M

usic is perhaps the richest child of Austria; although literature and painted art are not far behind. Undoubtedly, Austria is considered the birthplace of classical music, with such celebrated sons as Wolfgang Amadeus Mozart, Ludwig Van Beethoven and Joseph Haydn, who dominated European music and pioneered Austrian musical genius. Indeed, would modern music exist with such rich diversity without their collective influence?

The Biedermeier period reinforced Austrian musical achievement, with Franz Schubert's works of chamber music deservedly representing the peak of the period. In the 19th century, great Austrian maestros Johannes Brahms, Hugo Wolff and Anton Bruckner enriched the world of great music, before they were succeeded by Gustav Mahler, recognised as one of the great composers.

CorD SPECIAL - Austria

C ulture

Still, most remembered of Austria's great musicians will perhaps be the Strauss family, celebrated to this day for giving the Waltz to the world and conducting unforgettable love operettas.

The Second Vienna School, whose graduates included Arnold Schonberg, Alban Berg and Anton Webern even influenced the Twist music of the modern era, up to and including the fusion of the musical styles of Josef Zawinul and Franz Koglmann's Third Stream.

We must also make mention of the development of operatic art in Austria, with the Vienna state opera (Staatsoper) and the Austrian National Opera

Music is perhaps the richest child of Austria; although literature and painted art are not far behind. Undoubtedly, Austria is considered the birthplace of classical music, with such celebrated sons as Wolfgang Amadeus Mozart, Ludwig Van Beethoven and Joseph Haydn.

(Volksoper) recognised as being among the best operas in the world. Serbia's own Biserka Cvijetic has even graced their stages.

Following the end of the Second World War, Austria's dramatic arts culture quickly regained its place on the international theatrical scene. Vienna's National Theatre (Burgtheater) continues to stage the

Culture

C ulture

world's best known plays, which are directed and performed by world renowned artists.

In addition to the world famous Salzburg Festival, founded in 1920, which stages both classical and avantgarde pieces, Austria also boasts the 'Theater an der Wien ' - a theatre rich in tradition, which has staged musicals since 1965 and regularly hosts theatre festivals during the summer months.

Austrian literature dates back to the 12th century; although the Austrian literary scene peaked during the period of the Minnesingers, wandering minstrels of love.

Following the end of the Second World War, Austria's dramatic arts culture quickly regained its place on the international theatrical scene.

Nineteenth Century authors, whose works are still heralded today, include such greats as Franz Grillparzer, Ferdinand Raimund, playwright Johan Nestroy and Adalbert Stifter..

Austria's contribution to the world literature is best illustrated by the works of Stefan Zweig, Joseph Roth, Ingeborg Bachmann, Thomas Bernhard and Peter Handke.

Austria has also added to the world of art, with Gustav Klimt's Jugendstil becoming legendary. In the modern art world, Austrian greats include such names as Egon Schiele, Oscar Kokoschka, Anton Lehmden, Ernst Fuchs, Friedensreich Hundertwasser ,Hermann Nitsch, GĂźnther Brus and Arnulf Rainer.

At the beginning of the last century, Austrian architecture was led by Otto Wagner, Joseph Hoffmann and Adolf Loos. With his designs of the Church in Steinhof and the Postal banking building, Wagner was responsible for the most significant buildings of "Viennese Jugendstil".

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The Austrian film industry is only responsible for six per cent of films screened in Austrian cinemas. However, despite the dominance of the American movie machine, Austrian filmmakers have managed to achieve limited success in recent years with such hits as Paul Harather's 1993 film "Indien", Harald Sicheritz's 1995 film "Freispiel" and 1997 production "Hinterholz" and Wolfgang Murnberg's "Komm, susser Todd", released in 2000. The Austrian filmmaker Goran Rebic, who originally comes from the Serbian Town of Vrsac, gained international recognition with his films "Jugofilm" and "Dunav".

Austria is also home country of film industry stars like Oskar Werner, Romy Schneider, Helmut Berger, Klaus Maria Brandauer and, perhaps most famously, Hollywood movie legend and current Governor of California Arnold Schwarzenegger.

Millions of tourists visit Austria every year.

They do not go just for the skiing, sailing or mountain climbing, but also to catch at least a glimpse of the country's rich culture.•

Austrian Tourism

Travel treats Austria is a country renowned worldwide for the excellent all year round tourist attractions it has to offer. The number of international tourists visiting Austria is on the rise each year, and the fact that they are almost evenly distributed in both main holiday seasons-winter and summer, bears out the diversity of the Austrian landscape.

50th jubilee of Emperor Franz Joseph I and was completed in 1897. The views of the city it offers are simply stunning! The wheel can be rented for small celebrations, press conferences with a difference, or a romantic dinner for two in one of the two deluxe cabins.

By Nina Nicovic, Photo Austrian National Tourist Office

A

Tourism

ustria offers a great number of cultural attractions and buildings that are architecturally impressive and historically significant. They range from sacred churches and monasteries to castles and palaces through to secular and functional buildings, such as museums, administration buildings and much more. Architectural developments and Austria's varied history have brought forth buildings of various styles and functional purposes. The fact that Austrian contemporary architecture is well known far beyond the country's borders is also an indication of its attractivenes and vitality. Austrian cities offer a number of cultural attractions from opera, musicals and even New Year concerts, to advent markets.

Vienna Vienna's Giant Ferris Wheel is one of the city's prominent landmarks, with a height of 64.75m and a diameter of 60.96m. The wheel was constructed to celebrate the

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The Spanish Riding School of Vienna Founded as a Spanish riding hall in 1572 and located close to Vienna's Imperial Palace (Homburg), it proudly, but quietly, celebrated its 425th anniversary in 1997.

It is the only riding academy in the world which has been cultivating the equestrian art in its purest form for over 400 years, and trains both horses and riders according to methods used for centuries and mostly passed on by word of mouth alone. It is known for the breeding and training of Lippizzaners, the most famous horses in the world.

2006 - Mozart Year The year that is surely going to give a lot of pleasure to everybody is 2006, when the 250th anniversary celebration of the most famous Austrian of all time -Wolfgang Amadeus Mozart will take place.

Museums &Art Galleries The Art History Museum, housed in a Renaissance-style building, located in Ringerstrasse, on Maria-Theresien Platz, is one of the finest museums in the world. It exhibits historical Habsburg collections of Italian and Flemish masterpieces, including Pieter Bruegel the Elder, Tintoretto and some superb views of 18th century Vienna by Bernardo Belotto.

CorD SPECIAL - Austria

Albertina Named after and founded by Albrecht, Duke of Saxony-Teschen, the Albertina houses the world's greatest collection of drawings, sketches, watercolours and engravings, totaling over 50,000 pieces. Works include Durer, Rembrandt, Raphael, Corregio, Klimt and Schiele.

The Freud Museum The site of the Freud Museum at Berggasse 19 was Sigmund Freud's home and consulting rooms for almost 50 years, until his departure for London in 1938. It has been preserved intact and includes a replica of his famous couch along with a library complete with journals and signed first editions of his works.

Danube The Danube is one of Europe's most celebrated rivers. It is much loved by the Viennese and famous composers like Johann Strauss, who dedicated one of his most popular compositions to it. You can take sightseeing cruises on the Danube ranging from short tours to day trips, to luxury cruises between Germany and the Black Sea. Other attractions along the Danube include the Danube Tower - with its 150 m observation deck and the surrounding Donaupark - next to the United Nations UNOCity complex. The city's giant ferris wheel is also visible from the Danube because of its location between Donaukanal and the main river.

Hasenauer between 1882 to 1886. Franz Matsch and the brothers Gustav and Ernst Klimt jointly painted the ceiling in its salon.

Hellbrunn Palace in Salzburg, dating from the Renaissance period, is built in the manneristic architectural style, and has world famous fountains, mysterious grottoes, beautiful wells, and its exhibitions include valuable sculptures.

The Eiegersburg Castle in Styria is a monumental fortress atop a volcanic rock. The oldest castle complex was built there around 1100 AD. Today, it houses two exhibitions: one of Riegersburg's legendary woman and the other entitled "Witches and Wizards".

Bruck Castle in East Tyrol was built by the Counts of Gorz during the years 1252-1277. The castle complex is impressive due especially to its collection of art and cultural history.

Esterhazy Palace in Burgenland was acquired

by Nikolas Esterhazy in 1648, and was a centre of courtly life. Its magnificent ceiling frescoes and the Leopoldine Temple - a landscape garden from the 19th century, situated in the palace's park offer visitors a rare treat.

Wolfsberg Palace in Carinthia with its magnificent structure and well maintained neo-Gothic Tudor style, has magnificent views of the Lavant Valley. It offers a special culinary experience with nostalgic flair and professional service. Rooms are ideal for conferences, seminars and weddings.

Tourism

Austrian Tourism

Winter in Austria The Alps account for two thirds of Austria's surface area, and provide ideal conditions for relaxation, winter sports and winter fun. 71 winter centres, with over 800 winter-sport locations, offer pure enjoyment to their guests. 22,000 km of excellently prepared pistes fulfill every skier and snowboarder's wishes - from gentle family runs to high alpine tours, from easy to challenging slopes - it's all there! For those who enjoy the more peaceful winter activities, 14,000 km of snow-cleared win-

Castles The Hermes Villa is located in Vienna, in the midst of the nature reserve around Lainz Zoo. It was built from the plans of architect Carl von

CorD SPECIAL - Austria

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Austrian Tourism

Tourism

ter hiking trails, romantic horse-drawn sleigh rides, tradition and folklore awaits.

Just 100 km from either Vienna or Graz, this resort has two children's adventure theme areas, horse-drawn carriage rides and snows hoeing.

Hirschenkogel-Zauberberg: Modern ski lifts mean waiting lines are virtually unknown here! Among other things, the resort offers exhilarating night skiing and night sledding.

Pyhrn-Priel Skiing Region (Upper Austria) spreads over two separate skiing areas. The undisputed highlight in January is the International Husky Cup at the Innerrosenau Biathlon Centre. Mural Holiday Region - host to the FISH Snowboarding World Cup in 2003. The on-mountain butler service, snow tubing, snow soccer, snow volleyball, on-mountain beach, and terrain parks for snowboarders in this region's 5 ski areas make this a special ski resort for anyone, and kids especially can enjoy the snowman villages. Salzburg Sports World Amadé (Salzburger Land)- just 60 km from the Mozart and festival town of Salzburg and easily accessible via the Tauern A 10 motorway, this is a resort with dependable snow conditions up until April. Ski Welt Wilder Kaiser - Brixental (Tirol) The 9 regions are directly located in the heart of the Kitzbühel Alps. 93 state-of-the-art lifts and 73 traditional huts with traditional music and culinary treats, as well as indoor swimming pools, tennis courts, riding halls and squash courts, make every holiday perfect. Stubaital Skiing Region (Tirol) Imperial skiing joy! The resort offers absolutely dependable snow conditions on four mighty glaciers in Austria's largest glacial skiing area.

The child-friendly hotels and inns offer a number of great surprises for children up to 12 years. Serfaus-Fiss-Ladis Skiing Region (Tirol) Old farmhouses, a great number of fountains, the church, the local heritage museum, and a fantastic ski area satisfy even the most discerning skier.

Silvretta Ski and Fun Sports Arena, Ischgl (Tirol) A Mecca

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for skiers and snowboarders alike. Incredible concerts on the Idalpe, 2,300 meters above sea level, have starred performers like Tina Turner, Rod Stewart, Jon Bon Jovi and Enrique Iglesias, Udo Jürgens, Brosis, Sugababes, Atomic Kitten and more.

THERMAL BATH & SPA CENTERS Bad Kleinkirchheim Nock Mountains (Carinthia) This centre has the longest and sun-kissed skiing runs in Carinthia.

This ski resort is unique because after skiing you can go and relax directly in its two thermal bath centres.

Gasteinertal-Großarltal Skiing Region (Salzburger Land) The Spa and Vitality centre in Bad Hofgastein or the Felsenbad in Bad Gastein are ideal places to relax in 33-degree thermal water. It also has the right piste for every proficiency level, ski-disco and a casino in Bad Gastein.

This traditional spa resort combines hospitality and good service to give it a special flair.•

Facts & Files Against the backdrop of a declining tourism sector worldwide, Austria attracted a record 19.1 million foreign visitors last year, a 2.5 percent increase that underscored the nation's improving competitiveness. A 4 percent increase in tourism exports allowed Austria to maintain its share of the European tourism market at 4.8 percent despite decreasing lengths of stays. Austria's market-share growth ranks alongside that of Belgium, Luxembourg, Ireland and Spain as the fastestgrowing in Europe.

See more on: Austrian National Tourist Office www.austria-tourism.at

CorD SPECIAL - Austria

A ustria

WINE COUNTRY

By Mirjana Peric, Photo Austrian National Tourist Office

Austria is a wine country of moderate size. Some 48,000 hectares ofvines are cultivated by approximately 32,000 wine producers, of which 6,500 bottle their own wines. Other producers deliver the grapes to cooperatives or to the cellars of larger producers.

The Regions: Wine growing is concentrated in the eastern regions of Austria, namely Niederösterreich, Burgenland, Styria, and Vienna. However, Austrian wine law defines four wine producing areas of different sizes: Weinbauregion Weinland Österreich - 44570 ha, Weinbauregion Steiermark - 3290 ha (Styria), Weinbauregion Wien - 680 ha, Weinbauregion Bergland Österreich - 20 ha.

The origin for Qualitäts and Prädikat wines are the 18 official wine growing areas within the wine regions of Weinland Österreich, Steiermark, and Wien.

The Soil: Austrian wines grow on very different soil types.

The Weinviertel and the Danube valley, for instance, are dominated by loess. By contrast, the region around Krems and Langenlois and the Wachau has mainly primary rock soils, while the Thermenregion has more loamy, chalky soils.

Around Vienna, in Carnuntum and in the Burgenland, the soils vary markedly: slate and loam, marl and loess, as well as pure sand. Brown earth, conglomerates and volcanic soils predominate in Styria.

The Climate: The Austrian wine growing regions are situated in moderate climate zones, between 47 and 48 degrees of latitude, comparable to the situation of Burgundy in France. Warm, sunny summers and long, mild autumn days with cool nights are characteristic of most of these areas.

The annual precipitation in these eastern areas is around 400 millimetres, while 800 mm or more is not unheard of in Styria. Important factors influencing the microclimates of different areas are: the Danube, which reflects sunlight and balances out

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CorD SPECIAL - Austria

A ustria

large variations in temperature, and Lake Neusiedl, home to the famous nobly sweet Trockenbeerenauslesen.

Most of the vineyards are at around 200 m above sea level, while in Lower Austria vineyards up to heights of 400 m are also cultivated. The highest wine growing villages are in Styria, at 560 m.

Legally Yours Austrian wine law is based on European wine legislation. Austria, however, has maintained its individuality. Controlled origin, capped yields, quality designations and official quality controls are the pillars of Austrian wine law. Three general quality designations are recognized: Tafelwein (table wine), Qualit채tswein (wine of quality), and Pr채dikatswein ("certified" wine). The categories are determined by the sugar content of the grape must, expressed according to the Klosterneuburger Mostwaage (KMW) system.

Important elements of the label are origin, variety, vintage, quality designation, alcohol content, residual sugar, official control number, producer, and bottler.

Controlled origin and capped yields: the highest allowed yield per hectare for Landwein,

with great sophistication.

Traminer (Gewürztraminer, Roter Traminer): expressive, flowery bouquet, good extract, soft and subtle.

Sauvignon Blanc (Muskat-Sylvaner): fragrance of elderberry, grassy fruit, with unmistakable character.

In keeping with the wide variety of wine styles in Austria, the following white grape varieties are also of importance: Bouvier o Frühroter Veltliner o Muskat Ottonel o Roter Veltliner o Grauburgunder (Ruländer, Pinot Gris) o Traminer o Zierfandler o Rotgipfler o Gelber Muskateller Red Wine (25%) Blauer Zweigelt (Rotburger): velvety and full bodied with delicate spice, characteristic cherry note and soft tannin. Blaufränkisch: fresh and with vibrant fruit, fine acidity, powerful and discreetly tannic, with tones of liquorice and dark

Master of Wine Education now available at the Austrian Wine Academy Qualitätswein, and Prädikatswein is 9,000 kg of grapes, or 6,750 kg of wine. If more is produced the entire yield must be classed as the lowest quality designation, Tafelwein. Tafelwein can be sold without exact reference to origin, variety, and vintage.

Austrian Qualitätswein and Austrian Prädikatswein are controlled twice by state laboratories: a chemical analysis is followed by a tasting commission. The official control number and the red-white-red band document this extensive process of control and quality assurance.

Geographic Origin and Quality Tafelwein (table wine) is designated with "Austria" as its origin. Landwein comes from one of the four official wine growing areas: Weinland Österreich (Niederösterreich und Burgenland), Steiermark, Wien, or Bergland Österreich. Qualitäts and Prädikat wine are designated with the exact wine growing region.

The Grape Varieties White Wine (65%) Grüner Veltliner: expressive, fruity, often with a typical pepper and grapefruit note. Welschriesling: delicate and fragrant with apple aromas, mostly slender with racy acidity. Müller-Thurgau (Riesling x Sylvaner): discreet Muscat on the nose, with flowery fruit. Weißer Burgunder (Pinot Blanc): compact, often nutty aroma, usually vinified as a powerful but harmonious wine.

Riesling (Rheinriesling, Weißer Riesling): elegant, multilayered on the nose, aromas of stone fruit, racy and delicate with classical structure. Neuburger: harmonious, discreet nut aromas, soft and full bodied. Chardonnay (Morillon, Feinburgunder): racy fruit reminiscent of green apples, or, if vinified differently, rich and buttery 26

CorD SPECIAL | May 2004

The Master of Wine qualification is internationally recognised as the highest level of educational achievement for the wine industry. Austria is now the fourth country after Great Britain, USA, and Australia to offer this prestigious education programme, thus confirming the Austrian Wine Academy's (AWA) role as continental Europe's leader in wine education. The Austrian Wine Marketing Board (AWMB) expects this to enhance domestic brand competence and image.

Since its establishment in 1953, The Institute of Masters of Wine has awarded 236 wine professionals with the highest international qualification, the prestigious MW title. berries. Blauer Portugieser: fruity and mild, low acidity, low alcohol. St. Laurent: after the necessary maturation velvety and dry, full and pleasantly tannic. Blauer Burgunder (Pinot Noir): light in colour, harmonious and velvety, often with smoky cherry character. Cabernet Sauvignon: cassis notes, tannic, often grassy on the nose when young, cedar and tobacco tones with maturation.

Other varieties deserving a mention are Merlot (officially recognized since 1986 and a good cuvée partner) and Blauer Wildbacher, a Styrian specialty.•

Facts & Files Culture, environmental quality, high living standards, security, classic dwellings and shopping Austria has it all and more, when it comes to everyday quality of life. No wonder that the World Competitiveness Yearbook 2003 ranks Austria number 2 in quality of life.

A-Z

PS ConFidas Bulevar kralja Aleksandra 86-90 SCG -11000 Beograd Tel.: 011/3020-512 Fax: 011/3020-533 e-mail: confidas@privsav.co.yu Director: Alexander SAMONIG

•AC Associated Consultants •Unternehmensberatung GmbH Bulevar kralja Aleksandra 86-90 Tel.: 011/3020-527, Fax: 011/3020-533 e-mail: legroup@privsav.co.yu Director: Alexander SAMONIG

•AKZENT MEDIA Consulting •Unternehmens-beratungs•und WerbeplanungsgesmbH •AKZENT MEDIA d.o.o.

Jevrejska 2, 4SCG -11000 Beograd T./F. 011/637-835,3285-024, 3285-078 e-mail: akzentyu@eunet.yu Director: Predrag RESANOVIC

•ALPINE-MAYREDER •Bau GesmbH •ALPINE d.o.o.

Vidska 24, SCG -11000 Beograd T. 011/244-9269, F. 011/459-148 Mob. 063/261-622, E-Mail: alpine@verat.net

•ALUPLAST AUSTRIA GmbH •Aluplast Beograd d.o.o.

Batajnicki put 23, SCG - 11080 Zemun T./F.: 011/3070-328, Mobil: 063/322-838 E-Mail:a.plast@eunet.yu Director: Alma KAPETANOVIC

•ANDRITZ AG VOITH PAPER •ANDRITZ-VOITH PAPER Dr. Ribara 154/16, SCG -11000 Beograd T. 011/318-3937, T./F.011/155-548 Prof. DI Milorad KRGOVIC

•ARDEX Baustoff GesmbH •ARDEX d.o.o.

Rudo 1, SCG -11000 Beograd T./F.: 011/4889-263, Mobil: 063/330-332 E-Mail: batalo@ardex.co.yu Direktor Dusan BATALO

•ASSMANN Ladenbau •Leibnitz GesmbH •ASSMANN Shop Design d.o.o.

Cika Ljubina 6/3/26, SCG-11000 Beograd T.: 00381-11/328-3396, F.: 00381-11/633-354 Director: Marjan PUSIC

CorD SPECIAL - Austria

•AST Eis u. Solartechnik • GmbH & Co KG •Yugoslav Olympic Committee

•BANK AUSTRIA •CREDITANSTALT LEASING GmbH •BANK AUSTRIA

Generala Vasica 5, SCG - 11040 Beograd T.011/3671574, F.011/3671887 E-Mail: office@jok.org.yu Director: Predrag MANOJLOVIC

CREDITANSTALT LEASING Rajiceva 27-29, SCG-11000 Beograd T .011/320-4513, F.011/334-2200 E-Mail: zoran.pavlovic@yu.hvb-cee.com Director Zoran PAVLOVIC

•AUSTRIA TABAK GmbH & Co KG •AUSTRIA TABAK d.o.o.

Proleterske solidarnosti 12, Novi Beograd T. 011/311-3117, 3114241, F.011/311-2192 E-Mail: Ralf.Dellbruegge@austriatabak.com Director: Ralf DELLBRUEGGE, Hr. Stanko BABURSKI, Verkaufsleiter

•AUSTRIAN AIRLINES •ÖsterreichischeLuftverkehrs AG •AUSTRIAN AIRLINES Terazije 3, SCG -11000 Beograd T.011/3248-077, 322-6812, F. 011/3248-783 Director Ana ILIJIC

YU Rohé d.o.o.

Bulevar Franse D´Eperea b.b.

SCG - 11000 Beograd Tel. 011/2062-800 Fax. 011/2062-830 E-Mail: yurohe@rohe.co.yu Director: Vladimir ANTIC

•AUSTROTHERM GmbH •AUSTROTHERM d.o.o.

Mirka Obradovica, SCG- 1400 Valjevo T .014/ 291-310, 291-310, F. 014/291-313 E-Mail: austrotherm@ptt.yu Director Dragomir ILIC

•BAUMIT Baustoffe GesmbH •BAUMIT d.o.o.

Bulevar Mihaila Pupina 10 D/III SCG-11000 Beograd T. 011/311-6699, T./F. 011/311-6656 Mobil: 063/269-875, E-Mail: baumit@eunet.yu Director: Vladimir KOVACEVIC

•BECHER Consulting GesmbH •Niederlassung in Gründung •BEIERSDORF GesmbH •BEIERSDORF Narodnih heroja 43, SCG -11000 Beograd T. 011/699-986, F. 011/603-821 E-Mail: peter.koys@beiersdorf.com Director: Peter KOYS

•BLAST Handels GesmbH •FERIT Oblakovska 8SCG -11000 Beogad T./F. 011/651-888, F.011/623-750 DI Dragos KUKOLJAC

•ROBERT BOSCH AG GesmbH •ROBERT BOSCH AG Svetozara Corovica 15, SCG -11116 Beograd T/F. 011/322-0737, T/F. 011/322-8944 Director: Gerald ROSIN

•AVUS GesmbH & Co KG •AVUS Internacional d.o.o.

29. novembra 83, SCG - 11000 Beograd T .011/2080-108, F. 011/2080-109 E-Mail: avus@eunet.yu Dr. Nebojsa BOGDANOVIC

•AWT Internationale •Handels & Finanzierungs- AG •AWT International Kneza Milosa 58, SCG - 11000 Beograd T. 011/2768-364, F. 011/645-690 E-Mail: awtbgd@awtbgd.co.yu Director Svetislav PETROVIC

•BANK AUSTRIA (HVB) •BANK AUSTRIA Rajiceva 27-29 , SCG-11000 Beograd T. 011/3204-500, F.011/3344-543, 3342-200 Mag. Cristoph GREUSSING

Brigl & Bergmeister •PAPIERFABRIK GmbH Proleber Strasse 10, Niklasdorf, A-8712 Belgrade Representative Office 29. Novembra 25 Tel/Fax: +381 11 3235-966 Mob. +381 63 245-017 E-mail: ivanb-b@yubc.net Director: Ivan Jamnisek

•AC Dachsysteme •International GesmbH •Bramac krovni sistemi d.o.o.

Kumodraska 176, SCG -11000 Beograd Mob. 063/8329418 E-Mail: sdmarin@eunet.yu Hr. Dejan MARIN

CorD SPECIAL | May 2004

27

A-Z •BRÜDER HENN •Graphische und Papierverarbeiten •-de Maschinen und Geräte •BRÜDER HENN HOLDING Sime Lukina Lazica 8, SCG -11000 Beograd T. 011/.367-2652,367-0829, F.011/367-2652 E-Mail:bruder@eunet.yu Director Veljko KALINOVIC

•CA IB Investbank AG •CA IB Investbank AG Knez Mihailova 7, SCG -11000 Beograd T. 011/623-684, F.011/632-359 E-Mail: johannes.solich@ca-ib.com Mag. JohannesSOLICH

•CHEMTRANS GesmbH •CHEMTRANS BEOGRAD Paunova 40, SCG -11000 Beograd T. 011/367-1197, F. 011/367-1153 Hr. Josef STEINDL, Hr. Sasa MANCIC

•CMS Strommer Reich Rohrwig •Karasek HainzRechtsanwälte •CMS Strommer Hasche Sigle d.o.o.

Knez Mihailova 33, SCG -11000 Beograd T./F. 011/630 235, 303 0136 Dr. Radivoje PETRIKIC, Natasa ZAVISIN, Mag. Ljubica TOMIC

•DM DROGERIE MARKT RGmbH •DM DROGERIE MARKT d.o.o.

Dzordza Vasingtona 12, SCG-11000 Beograd T./F.011/ 3615-700, 3615701, 3610-233 Mob. 063/240-453, Director Dragan VRANES

•DTSG Donau-TankschiffahrtsgmbH •DTSG-Referat Beograd

Dositejeva 41, T. 011/632-722, F. 011/181-875 E-Mail: epicyu@eunet.yu Director Bobo RISTIC

•EUROPLAKAT International •WerbegesmbH •EUROPLAKAT YU d.o.o.

Dr. Ivana Ribara 107/32, SCG -11070 Beograd T./F. 011/2150-679, ,Mobil: 063-247-031 Hr. Mirko TERMACIC

Knez Mihailova 7, SCG-11000 Beograd Tel./Fax: 011/3281-949, 3281-890, 3283-764 Director Goran CVETKOVIC e-mail: office@europlakat.co.yu

•ELI LILLY GesmbH •ELI LILLY Predstavnistvo Beograd

•FESTO GesmbH •FESTO BEOGRAD

Bulevar Mihaila Pupina 10z/I, SCG - Beograd T.011/311-6578, F.011/1015-197 E-Mail: milutinovic_olivera@lilly.com Director OliveraMILUTINOVIC

•EMTEC Magnetics ECE •EMTEC Magnetics ECE Prilucka 1, SCG -11000 Beograd T. 011/318116, F. 011/318116 E-Mail: emtecyu@ptt.yu Director Mirjana ADULOVIC

•EPIC European •European Privatisation •& Investment Corporation •EPIC d.o.o.

Bul. Kralja Aleksandra 154/II, SCG -Beograd T. 011/344-2081, F. 011/2457-129 Dr Ljubomir MILADINOVIC E-Mail: info@festo.co.yu

•FUNDER Industrie GesmbH •DIPO d.o.o.

Agostina Neta bb, SCG -11070 N. Beograd T./F. 011/318-2983, E-Mail: dipo@ybc.net Director Dragan RADOSAVLJEVIC

•GEA Klimatechnik GesmbH •GEA Klimatechnik-YU Bulevar AVNOJ-a 80, SCG -11070 N.Beograd T/F. 011/3193955, Mobil: 063/221118 Director Djurica BAJKOVIC

A-Z •GU-BAUBESCHLÄGE AUSTRIA •GesmbH •GU okovi d.o.o.

Surcinska 9n, SCG -11070 N. Beograd T./F. 011/318-6968, Mobil: 063/207-506 Director LjubanBASKAR

•HAFI Engineering & Consulting •GesmbH •HAFI Subotica

•GfK Center GesmbH •GfK BelgradMarketing •Research Company Takovska 42, SCG -11000 Beograd T. 011/3290-777, F. 011/750-296 Mobil: 063/308-120, E-Mail: gfk@gfk.co.yu Director Marijana AGIC

•GRIMEX Handels GmbH •YUGRIMEX d.o.o.

Sonje Marinkovic 21/1, SCG-21000 Novi Sad T.021/420-224,420-614, F.021/622-173 E-Mail: yugrimex@eunet.yu Director Zdravko MEDIC

•GRAZER •Wechselseitige Versicherung AG •GRAWE osiguranje a.d.

•GRUNDFOS Pumpen Vertrieb •GesmbH •GRUNDFOS Pumpen Vertrieb •Representative Office

Bul. M. Pupina 10a, SCG-11070 N. Beograd T/F. 011/311-7701, E-Mail: ranko.kovacevic@grawe.at Interimistischer Director Marko MIKIC

Dr. Milutina Ivkovica 2a, SCG-11000 Beograd T.011/647-877, F.011/647-496 E-Mail: silic@grundfos.com Director Sasa ILIC

Adolfa Singera 12/IV-246, 24000 Subotica T. 024/230-50, F. 024/230-50 Hr. Drago DjURANOVIC

Digicard Co 14. decembra 59, SCG -11000 Beograd Tel. 011/3220-161, Fax .011/444-89-28, Mob. 063/809-98-39 Director: Prof. Dr.Pavle BOGETIC A company specialising in safes, vaults, plastic card production, sales and services.

The Company specialises in the production and sale of every type of plastic cards (chip, magnetic, non-contact and the like). Plus POS bank systems, with all the accompanying equipment.

A-Z EUROPAPIER YUGOSLAVIA D.O.O. Adresa: Treci bulevar 23, Novi Beograd Telefon: 011/311 02 80 Web site: www.europapier.com E-mail: office@europapier.co.yu

Futura Center Nemanjina 40/III/8, SCG-11000 Beograd, T./F.:011/3232217 e-mail: m.patocka@irm-kotax.com Director: Michael PATOCKA

•JAROLIM SINGER SPECHT •Specht Dr. Leopold Rechtsanwaltsbüro •JAROLIM SINGER SPECHT d.o.o.

TC “Futura”, Nemanjina 40/III, Beograd T. 011/621-275, T./F.011/3343-158 E-Mail: tbdlaw@yubc.net RA Aleksandar M. DJELIC

•JCB International GmbH •TERRA KOEVI d.o.o.

Partizanske avijacije 8, SCG-11077 Beograd T. 011/1775198, 163432, F. 011/1775198 E-Mail: office@jcb.co.yu Director Stefan BAUER

•JENBACHER Energiesysteme AG •MPD TRADE Nemanjina 36, SCG-11000 Beograd T.011/361-73-81, F.011/643-286, Mob. 063/361-912 Director Mirko NIKOLIC

•JLC CHEMIE HandelsgesmbH •JLC-CHEMIE •Hagleitner Hygiene International •KARTEL GRAF d.o.o.

•HILFSWERK AUSTRIA •HILFSWERK AUSTRIA

Kraljevackih zrtava 5, SCG -11147 Beograd T./F. 011/512-327, Mobil: 064/111-7765 E-Mail: kartel-graf@mail.com Director BrankoMILOJEVIC

Balkanska 12/I, SCG -11000 Beograd T.011/688-091, F.011/656-105 Mobil: 063/286-557 E-mail:hwabg@eunet.yu Fr. Jelena VASILJEVIC-PETROVIC

•HEIDELBERG Druckmaschinen •Osteuropa-vertriebsgesmbH •HEIDELBERG JUGOSLAVIJA d.o.o

•HÖDLMAYR INTERNATIONAL AG •HÖDLMAYR -ZASTAVA d.o.o.

Pljevljanska 2b, SCG-11000 Beograd T. 011/3045-460, F.011/3820308, E-Mail: Randjelovic@heidelberg.co.yu Hr. Alexander HUFNAGEL

Trg Topolivaca 4, SCG-34000 Kragujevac T. 014/323-239, F.014/335-916 E-Mail: markus.waeger@hoedlmayr.com Director Markus WAEGER

•HENKEL AUSTRIA GesmbH •MD International

•HYPO ALPE-ADRIA-Bank AG •HYPO ALPE-ADRIA-Bank Belgrade

Internacionalnih brigada 9, SCG-Beograd T./F.: 011/444-95-43, 452-347, 459-482 E-Mail: mdmicic@sezampro.yu Director Dragoslav MICIC

•HENKEL-ECOLAB GesmbH •Ecolab Hygiene d.o.o.

Cvijiceva 115, T./F. 011/3292-400, E-Mail: vukovic@eunet.yu Dr. Marianne VUKOVIC-PAL

•HIGHSPEED CABLING •HANDELS- u. VERTRIEBS GmbH •HIGHSPEED CABLING -Belgrad Maksima Gorkog 153, SCG-11000 Beograd T.011/ 3443754, 3443820, 3443769 Director Dejan JELIC

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Franse Deperea 88, SCG-11000 Beograd T.011/3026500, F.011/648-845 Mobil: 063/302-699 E-Mail: office@hypo-alpe-adria.co.yu Mag. Markus FERSTL

•HYPO ALPE-ADRIA-Bank Leasing AG •HYPO-Leasing d.o.o. Beograd Studentski trg 4, SCG-11000 Beograd T.011/3283780,181574, T./F. 011/3283098 E-Mail: Hypo.leasing@sezampro.co.yu Director Christian MESSNER Dr: Miodrag VUJOVIC

•IRM KOTAX •International risk management •IRM-KOTAX

Vatroslava Lisinskog 6/II, SCG-Beograd T. 011/759-884, F. 011/759-776 Director Franz-Josef FAMLER

•JOLI & CO GesmbH •JOLI & CO Gospodara Vucica 54, SCG-11000 Beograd T./F: 011/3440-689, E-Mail: jolico@yubc.net Director S. MILOSEVIC

•JOSEF LEX & CO •Internationale Speditions •und Lagerhausges.m.b.H •JOSEF LEX & CO Sindjeliceva 61, SCG-26000 Pancevo T.013/341-652, F.013/43-178 Fr. Nada RUNJAJIC

•JUMO •MESS- UND REGELGERÄTE GmbH •JUMO Merni i regulacioni uredaji.

Cirila i Metodija 26, SCG-18000 Nis T. 063/425-281, F.018/547-223 Director Milan SIPLJANOVIC

•KELLNER & KUNZ AG •RECA d.o.o.

Bul. Mihaila Pupina 10 z Office Nr. 15 SCG-11070 N.Beograd T. 011/311-4426, F. 011/134-140 E-Mail:reca@reca.co.yu Director Vladan ILIC

CorD SPECIAL - Austria

A-Z •Paul KLACSKA •GesmbHMineralöltransporte •KLACSKA Jugoslavija d.o.o.

Niski put 4, SCG-11050 Beograd T. 011/489-4354, F.011/489-0656 E-Mail: stevanjevtic@hotmail.com Director Stevan JEVTIC

•KNAUF GesmbH •KNAUF d.o.o.

Dalmatinska 65a, SCG-11000 Beograd T. 011/3290962, 291038 F. 011/3290963 E-Mail: info@knauf.co.yu Dipl.Ing. Milutin IVANOVIC

•KOSCHE HOLZPROGRAMM •GmbH •KOSCHE HOLZPROGRAMM Janka 11, SCG-11000 Beograd Mobil: 063/7702325 E-Mail: srdan@panet.co.yu Director Srdjan SIKIRICA

•KOTANYI JOHANN GmbH •KOTANYI d.o.o.

Kumanovska 14-16, SCG-11000 Beograd T. 011/322-4256, F. 011/430-490 E-Mail: kotanyi@eunet.yu Director Zoran STANOJKOVIC

•KSB Österreich GesmbH •KSB

•LINDE FÖRDERTECHNIK GesmbH •Linde viljuskari d.o.o.

Prodaja pumpi i armatura.

Zagorska 10/49, SCG-11080 Zemun T./F. 011/106-779, E-Mail:coracp@sezampro.yu Director Predrag CORAC

Vojislava Ilica 145, SCG-11050 Beograd T/F. 4882 500, E-Mail: linde@eunet.yu Fr. Vesna JOVANOVIC

•LAFARGE BFC •Investment GmbH •LAFARGE BEOCINSKA FABRIKA CEMENTA a.d.

Trg BFC 1, SCG-21300 Beocin T. 021/874-190, 874-191, F.021/29-737 E-Mail: klaus.foedinger@bfc.lafarge.com Mob. 063/522-264 Mag. Klaus FÖDINGER

•LeMis HandelsgesmbH •Terranova d.o.o.

Koste Abrasevica 17, SCG-11000 Beograd T.011/419-434 011/3406-049 F.011/3407-574, E-Mail: teranova@Eunet.yu Dipl.Ing. Milan SPASIC

•LENEX HandelsgmbH •Lenex Group Franse d'Eperea 88, SCG -11000 Beograd T./F.011/ 369-1861 Director Dalibor SEMENOVIC

•MAN-Nutzfahrzeuge AG •MAN-Nutzfahrzeuge Radomira Vujovica 3/I, SCG-11000 Beograd T. 011/3672-126, F. 011/3672-127 Mira Popare 19, 11000 Beograd T. 011/559-506, F. 011/3544978 Fr. Isolde KAMM-SANKOVIC

•May M Industrievertretungen •GesmbH •Maytech d.o.o. Beograd Citacka II deo br. 6, SCG-11253 Beograd T. 011/444 68 78, F. 011/444 64 98 E-Mail: maytech@eunet.yu Fr. DI Željka TODIC

•McDONALD´S Central Europe •GesmbH •McDONALD´S Restorani d.o.o Bul. Mihaila Pupina 85a, 11070 N. Beograd T. 011/311-9588, F. 011/311-9609 Director Sasa TRISIC

A-Z Neumann International AG

www.neumann-inter.com beograd@neumann-inter.com

Colak Antina 15, SCG-11000 Beograd T. 011/369-0924, F. 011/369-2890 E-Mail: zoranro@eunet.yu Director Zoran ROKSANDIC

•NECKERMANN •VERSAND ÖSTERREICH AG •NECKERMANN d.o.o.

Ugrinovacka 206, SCG-11080 Zemun T. 011/3109-200, F.011/3161-356 E-Mail: info@neckermann.co.yu Director Dragica STANKOVIC

•VOLKSBANKEN AG •VOLKSBANK a.d.

Bulevar umetnosti 16a, 11070 Novi Beograd T. 011/311-1917, F. 011/311-6376, 130-159 E-Mail: klausm@trustbank.co. yuklaus.schuster@oevag.volksbank.at Hr. Klaus SCHUSTER, Hr. Klaus MÜLLER

Kneza Sime Markovica 7 +381 11 182588

•MULTICHEM HandelsgesmbH •Purpektin VertriebsgesmbH •MULTICHEM-PURPEKTIN d.o.o.

T. 011/3602-471, T./F. 011/3345-493 Mag. Ferdinand Ch. WEHRSCHÜTZ

•PALMERS TEXTIL AG •MEDIA FILM •OMEGA food technology GmbH •OMEGA food technology GmbH Resavska 26/6, SCG-11000 Beograd T. 011/3342-450, F. 011/3239-853 E-Mail: m.maestro@omega-belgrade.co.yu Fr. Maja KNEZEVIC

•OMV AG •OMV d.o.o.

Takovska 45/IV, T. 011/3292254, F. 011/752-281 Director Vlad SEITAN, Hr. Zoltan GARAI

•ORF Österreichischer Rundfunk •ORF Srpskih vladara 15/1, SCG-11000 Beograd

3. bulevar 174, SCG-11070 Novi Beograd T. 011/2139-760, F. 011/311-7720 E-Mail: mediafilm@yubc.net Director Dragan GRUJICIC

•Dr. PENDL & Dr. PISWANGER •GmbH •Dr. Pendl & Dr. Piswanger d.o.o.

Skadarska 4, T. 011/322-5961, F. 011/322-5938 E-Mail: v.krulj@pendlpiswanger.co.yu Director Vladimir KRULJ

•PIONEER SAATEN GesmbH •PIONEER Laze Teleckog 10, SCG-21000 Novi Sad T. 021/219-34, F.021/219-34 Hr. Goran AVRAMOV

A-Z •PMC INTERNATIONAL •Personal-und Management •Beratung GesmbH •PMC International

Luka Beograd, Francuska 81, objekat Metalci, lamela 5, SCG-11000 Beograd , T./F. 011/3290-795 Hr. Florin POPA

Majke Jevrosime 50/I, T. 0113248-683 E-Mail:pmc@pmc-international.co.yu Direktor Edvard TONCEV

•RAIFFEISEN ZENTRALBANK •ÖSTERREICH AG •RAIFFEISENBANK •Jugoslavija a.d.

•PORR TECHNOBAU UND UMWELT AG •PORR TECHNOBAU UND UMWELT AG Svetog Nauma 1, T. 011/2651-035 E-Mail: manfred.feischl@porr.at Director Manfred FEISCHL

•PORSCHE AUSTRIA •GesmbH & Co •PORSCHE SCG d.o.o.

Ozrenska 97, T./F. 011/347-2677, 347-2688 Direktor Max WINTERFELDT

•DIE PRESSE •DIE PRESSE Nusiceva 6/6, T.011/3343252 E-Mail:g-illmeier@yahoo.com Mag. Gertraud ILLMEIER

•PROCTER & GAMBLE •Austria GesmbH •PROCTER & GAMBLE

Resavska 22SCG -11000 Beograd Director Budimir KOSTIC Mag. Oliver RÖGL, Mag. Harald LORENZ Tel-Zentrale: 011/3202-100

•RAIFFEISEN-LEASING GmbH •RAIFFEISEN LEASING d.o.o.

Bul. AVNOJ-a 45a, T. 011/3016580 Director Galina KOSTYLEVA

•RAUCH Fruchtsäfte GesmbH & Co •Rauch d.o.o.

Admirala Geprata 15, T. 646-169, F. 43-949 E-Mail: aleksandar.raskovic@rauch.cc Director Aleksandar RASKOVIC

•REHAU POLYMER INDUSTRIE •Rehau Beograd Batajnicki put 283e, T. 011/8488-335, F. 011/375-7715, E-Mail: rehau@net.yu Director Predrag DJAJIC

•RIGIPS AUSTRIA GesmbH •BPB RIGIPS AUSTRIA Bul. Vojvode Misica 43, SCG-11000 Beograd T.011/3690633, E-Mail: office.yu@rigips.com Dipl.-Ing. Aleksandar GRUJIC

•RÖFIX AG •RÖFIX d.o.o.

Skadarska 20, SCG-11000 Beograd T./F. 011/3231-906, E-Mail: roefix@eunet.yu Director Vojislav POPOVIC

•SAFE INVEST HOLDING AG •SAFE INVEST d.o.o.

Marsala Birjuzova 1/II/7, T. 011/636-286 E-mail:sinvest@eunet.yu Director Darko BOBESIC

•SAINT-GOBAIN ISOVER AUSTRIA AG •SAINT-GOBAIN ISOVER JUGOSLAVIJA d.o.o.

Dr. Dragosava Popovica 5, T. 011/3247-883, E-Mail: d.ilic@isover.co.yu Director Dragan ILIC

•SIEMENS AG Österreich •SIEMENS d.o.o.

Knez Mihailova 30/IV, SCG-11000 Beograd T. 011/30-31-746 630-489, F.011/630-050 Mag. Kurt SCHWARZLMÜLLER

A-Z •SUN CHEMICAL AG •SUN CHEMICAL d.o.o.

Teodora Mirijevskog 64, SCG-11160 Beograd T. 011/444-7834, T./F. 011/444-2578 E-Mail: sunbmil@EUnet.yu Director Novica MILIC

•S & T Holding GesmbH •S & T Yugoslavia Narodnih heroja 43, T. 011/311 6221, 311 6222, E-Mail: info@snt.co.yuwww.snt.co.yu Hr. Predrag VRANES

•SWIETELSKY Bau GesmbH •SWIETELSKY Ljutice Bogdana 1A/215, T. 011/322-1246 E-Mail: mcs@eunet.yu DI DjordjeZVERZHANOVSKI

Kumodraska 260, SCG-11000 Beograd T. 011/3092610, F. 011/3090620 E-Mail: n.rebic@schrack.co.yu Hr. Nenad REBIC

•STEIERMÄRKISCHE BANK •UND SPARKASSEN AG •BANK STYRIA

•SCHIEDEL KAMINWERKE •GesmbH •Schiedel dimnjacki sistemi

Vladimira Popovica 8/VI, T.: 011/311-6872 drzivota@eunet.yu Prof. Dr. Života RISTIC

Kumodraska 176/8, SCG -11000 Beograd T./F: 011/397-3070 Director Zdenko PATAFTA

•STEIERMÄRKISCHE BANK •UND IMMORENT •S-LEASING d.o.o.

Vladimira Popovica 8/IV, T./F.: 011/311-4755 E-Mail: office@s-leasing.co.yu Mag. Johann HÖFLER

•STRABAG AG •STRABAG d.o.o.

Bul. Mihaila Pupina 10 z, T./F. 011/311-5776 E-Mail: zenja@eunet.yu Director Dragan PAVELIC

•SCHENKER & Co AG •SCHENKER d.o.o.

Gavrila Principa 46/1, SCG -11000 Beograd T./F. 011/3612-981, 3613-902, 3614-695 E-Mail: office@schenker.co.yu Director Damir KLASNJA

•SCHILLER Handels GesmbH •SCHILLER Yugoslavia Djure Djakovica 80, T./F. 011/761-905 E-Mail: schiller@eunet.yu Director Milan KRKOVIC

•SCHÖNHERR BARFUSS •TORGGLER & PARTNER •Rechtsanwälte •Schoenherr.d.o.o Studentski trg 19, T. 011/626-155 E-Mail: office@schoenherr.co.yu RA Mag. Markus PIUK

•SCHRACK •Energietechnik GesmbH •SCHRAKOM d.o.o.

34

CorD SPECIAL | May 2004

•Dr. Janko TISCHLER •T&V Interconsulting d.o.o.

Sarajevska 39/IS, SCG-11000 Beograd T. 011/3611-046, F. 011/641-510 RA Mladen R. VUJIC

•TONDACH Gleinstätten AG •POTISJE KANJIŽA Suboticki put 57, SCG-24420 Kanjiza T. 024/873303, F. 024/873473 Director Istvan JENEI

•TRANS CARGO LOGISTIC •GmbH •TCL Trans Cargo Logistic Knez Mihailova 11-15, SCG-11000 Beograd T. 011/ 328-3736, F. 011/ 627-000 Dr. Mihajlo VUKICEVIC

•VA TECH HYDRO GmbH & Co •Veris & S Milentija Popovica 12/1/3, SCG-Beograd T./F 011/2142-899 E-Mail: verisyu@eunet.yu Director Velimir RISTIC

•VOEST ALPINE EUROPASTAHL •GesmbH •Voestalpine Jugoslavija d.o.o.

Bulevar proleterske solidarnosti 18/3 SCG -11070 Novi Beograd, T. 011/311 87 54 Fr. Suzana Konsulovski:

•VOEST ALPINE Intertrading AG •VOEST-ALPINE Intertrading Bul. oslobodjenja 135,T. 021/459450, 459916 E-Mail: vaits@nscable.net Direktor Dusan ERDELJAN

•WERTHEIM •Sicherheits-systeme GesmbH •DIGICARD d.o.o.

14.decembar 59, SCG -11000 Beograd T./F.011/444-8928, E-Mail: psb@eunet.yu Dr. Pavle BOGETIC

•WESTFALIA LANDTECHNIK •Austria GmbH •Westfalia Landtechnik Yugoslavia d.o.o.

Budimska 4, T./F.011/3340-828, E-Mail: boris.perovic@westfalia.co.yu DI Boris PEROVIC

•WIENER STÄDTISCHE •ALLGEMEINE VERSICHERUNG AG •WIENER STÄDTISCHE Osiguranje Mihaila Pupina 10a, T. 011/135-760 E-Mail:office@ wiener.co.yu Verkaufsabteilung: Bul. umetnosti 2 T. 011/3013-300, F. 011/3012-323 Mag. Patrick SKYBA

•WOLF, THEISS & PARTNER •WOLF, THEISS & PARTNER d.o.o.

Cika Ljubina 12, T. 011/330-2900, E-Mail: beograd@wolftheiss.com Mag. Miroslav STOJANOVIC

•WOMA Hochdruckstrahl-wassersy •steme GesmbH •WOMA BEOGRAD Spasoja Stejica 18, T./F. 011/3422-204, E-Mail: velicko@eunet.yu Hr. Aleksandar VELICKOVIC

•YOKOGAWA AUSTRIA •COMPACT MM TRADE Milana Rakica 35, T. 011/413-222, Dipl.-Ing. Mirko JOVANOVIC

•YORK International GesmbH •YORK International Beograd YBC Bulevar Mihajla Pupina 10/D/1/127 T. 011/311-4143, F. 011/137-694 E-Mail: julija.ilic@at.york.com Director Ljubomir BOROVCANIN

CorD SPECIAL - Austria