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Sent: Saturday, July 21, 2001 7:18 PM
Subject: After the Bombs... [WWW.STOPNATO.ORG.UK]


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

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Deal lets U.S. investors back into Yugoslavia

BELGRADE, July 21 (Reuters) - The U.S. government's Overseas Private
Investment Corporation signed a deal on Saturday to boost private U.S.
investment in Yugoslavia and support its economic reforms.

The OPIC agreement also allows a $150 million Southeast Europe Equity Fund,
managed by Soros Private Funds Management, to start doing business in
Yugoslavia.

"Today's agreement not only signals the green light for the U.S. investors
but indeed is a signal to the entire international investment community that
Yugoslavia is open for business," Peter Watson, OPIC president and CEO, told
reporters.

The pact replaces a previous one signed in 1973 with the former six-member
communist federation. OPIC, a U.S. government agency facilitating private
investment, has not been active in Yugoslavia since the break up of the old
state in 1991.

The deal comes as discontent with reforms grows and people fear massive job
cuts as the federation of Serbia and Montenegro struggles to reshape the
economy and woo investors after a decade of sanctions, isolation and
mismanagement under the rule of ousted leader Slobodan Milosevic.

Dragisa Pesic, Yugoslav outgoing finance minister and prime minister
designate, welcomed the OPIC deal.

"I am happy to have signed the agreement and opened space for more intensive
economic ties between our two countries. I believe the investment support
will help Yugoslavia's economic development," said Pesic, who will assume the
post next week.

Pesic is a member of Montenegro's opposition Socialist People's Party (SNP),
which quit the last government in protest at Serbian reformers' decision to
hand former Yugoslav president Slobodan Milosevic over to the U.N. war crimes
tribunal.

But the SNP agreed to form a new cabinet with Serbia's reformers in return
for a new government structure, with an equal number of ministers from Serbia
and Montenegro so neither side can outvote the other.

"This is a very good time to commit the confidence of the United States in
the reform process that you are undertaking," Watson said after the signing
ceremony.

"This is the beginning and we look very much forward to working with you and
making your reform process a success," he said.

13:04 07-21-01


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