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Sent: Friday, June 09, 2000 4:48 AM
Subject: [STOPNATO] Annan: Despite unfortunate genocide Kosovo economy "remarkably
vibrant"


STOP NATO: NO PASARAN! - HTTP://WWW.STOPNATO.COM

By Anthony Goodman

UNITED NATIONS, June 8 (Reuters) - The security situation in
U.N.-administered Kosovo, Serbia's mainly ethnic Albanian province, has
deteriorated in recent weeks, with an apparently orchestrated campaign of
anti-Serb attacks, Secretary-General Kofi Annan said on Thursday.

``Local leaders and the people of Kosovo have made some encouraging efforts
to create a society in which all people can live without fear,'' he said in a
report to the Security Council. ``But understanding and tolerance in Kosovo
remain scarce and reconciliation is far from a reality.''

``An upsurge of vicious attacks on Kosovo Serbs in several areas has
undermined Kosovo Serb confidence in the future.

``These attacks appears to be part of an orchestrated campaign,'' he said,
adding that ``the international  community did not intervene in Kosovo to
make it a haven for revenge and crime.''

Annan was reporting on developments over the past three months in Kosovo,
which the United Nations has been administering for the past year, backed by
the NATO-led Kosovo Force (KFOR).

The Security Council authorised the U.N. Interim Administration Mission in
Kosovo (UNMIK) and KFOR to enter the province last June. That followed an
11-week NATO air campaign to force Belgrade to stop repressing the ethnic
Albanians, to withdraw its troops and permit the return of hundreds of
thousands of refugees who had fled.

The secretary-general's special representative for Kosovo and head of UNMIK,
former French health minister Bernard Kouchner, was to give the council an
oral briefing on Friday.

Annan said that ``while much has been done, much remains to be done.''

``Regrettably, some aspects of Kosovo society have not changed. Kosovo Serbs
and other minority communities continue to be murdered, attacked and
threatened. UNMIK staff members have also been murdered by extremists
motivated by ethnic hatred,'' he wrote.

Annan said the leaders and residents of Kosovo ``must play their part in
meeting their obligations and responsibilities'' to make the province an area
where all may live in security.

He called Kosovo's economy ``remarkably vibrant,'' with 70 per cent of
private enterprises now restarted, and producing and employing more than in
1998.

Winter wheat planting was at 80 per cent of the historical average and the
construction sector was booming, he added.

``However, unemployment remains at around 50 per cent,'' and much remained to
be done to establish the institutional and legal framework to encourage
enterprise development.

Thanks to substantial help from donors, especially from the European Union,
essential services such as electricity and water had been maintained, despite
very difficult circumstances.

Annan said an essential element in creating long-term stability in Kosovo was
the increasing inclusion of its people in the administration of the province.
He cited UNMIK's formation of the Kosovo Police Service and the establishment
of various advisory and administrative bodies.

Municipal elections, scheduled for October, were the next step, he said, with
an estimated 1.2 million potential applicants for the first phase of civil
and voter registration.

``Democracy in Kosovo must begin to take root, but given Kosovo's troubled
history, institutionalizing the sharing of administrative and political
responsibility between the ethnic communities concerned will not be quick or
easy,'' he said.

20:36 06-08-00


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