Belgrade says China not pressing debt repayment

December 4, 2000
Web posted at: 7:26 AM HKT (2326 GMT)

BELGRADE, Yugoslavia (Reuters) -- Yugoslavia's Deputy Premier Miroljub Labus said on Sunday China had agreed not to press Belgrade to repay millions of dollars in debt and added that the two countries would look to boost cooperation.

Speaking after talks with China's Foreign Minister Tang Jiaxuan, the first senior Beijing official to visit Belgrade since President Vojislav Kostunica came to power two months ago, Labus said China remained a strategic partner for Belgrade.

"Yugoslavia owes China millions of dollars," said Labus, who is also in charge of foreign economic relations.

"But China promised they would not press demands for repayment," he said.

Tang had shown full understanding for Belgrade's current capacity to service the debt, he added.

China and Russia were close allies of former President Slobodan Milosevic, who had turned to them for support and help in rebuilding Yugoslavia's shattered economy during almost a decade of international isolation.

Diplomatic analysts saw Tang's visit to Yugoslavia as indicating support for changes in the Balkan federation and for Kostunica, whom Beijing recognised only two days after a popular uprising forced Milosevic to concede an election defeat.

Labus said China was interested in completing a $200 million trade agreement sealed with Milosevic's government, of which $77 million has not been used.

The deputy premier also mentioned without elaborating another $200 million made available to Belgrade to be used to boost Belgrade's foreign currency reserves.

Tang also visited the damaged Chinese embassy in Belgrade which was hit in an American strike during last year's NATO bombing campaign to drive Yugoslav forces out of Kosovo.

He laid a wreath at the gate to commemorate the three people killed when the embassy was hit.

After going round the deserted building, which seemed untouched since the bomb hit it on May 7 last year, Tang described the attack as a show of power.

"If anyone wants to know what the policy of a big power is, then this is the best proof of that," Tang said.

Chinese people would never forget what had happened that day, he said, adding: "This is the territory of the People's Republic of China. This was bombed and attacked by the big power from the West."

Tang also signed a communique with Yugoslav Foreign Minister Goran Svilanovic in which the two nations agreed to respect all agreements reached so far and opened the doors for further cooperation.

Tang was due to leave Belgrade on Monday for visits to Albania, Hungary and Poland.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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