Yugoslav army generals pledge support to Kostunica

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BELGRADE, Yugoslavia -- Yugoslavia's new President Vojislav Kostunica met members of the army's general staff on his first full day in office, an army statement carried by state agency Tanjug said.

It was Kostunica's only publicised event on Sunday, a day after he was sworn in as Yugoslavia's new leader, bringing an end to Slobodan Milosevic's 13 tumultuous years in power.

"The place and role of the Yugoslav Army was reviewed," said the statement released after Sunday's meeting, brief excerpts of which were televised.

"It was found that the situation in the Yugoslav Army guarantees the efficient carrying out of all tasks given by the Yugoslav President," it added.

But the statement went on: "Concern was expressed over certain events in the country, in the post-election period, that are not in accordance with the Constitution and the laws." It was not clear to what this referred.

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The army's decision to switch its loyalty to Kostunica, elected in a disputed vote two weeks ago, appears to have been key to the success of Thursday's popular revolt that forced Milosevic to concede defeat and agree to give up power.

Soldiers did not intervene to stop a crowd attacking the Federal Parliament and the state television station controlled by Milosevic.

Local newspapers feted the swearing-in of Kostunica, 56, who took the oath of office on Saturday, saying the country isolated by years of international sanctions had entered the "ranks of democratic peoples."

The exchange rate of the beleaguered dinar currency soared against the German mark, reflecting people's belief that the hardships of the Milosevic era were at an end and the economy would start to recover with the lifting of sanctions and infusions of Western aid and investment.

The West has promised to help the new president and the European Union is likely to announce on Monday that it will lift some of the sanctions that have throttled Yugoslavia's economy.

There is no word yet as to whether Kostunica will take up an invitation to attend a European summit next week at which the European Union is expected to grant Belgrade emergency aid to rebuild its infrastructure.

CNN correspondent Nic Robertson, reporting from Belgrade, said a feeling of normality was returning after the tumultuous events of the last few days -- but he said as the euphoria wears off it is up to Kostunica to transform the country politically and economically.

In an attempt to tackle both problems, Robertson said Kostunica may seek to build a government of technocrats with economic and business skills, lessening the role of political players.

Under the constitution, the president appoints a prime minister, a post now held by long-time Milosevic loyalist Momir Bulatovi, but Kostunica has delayed his decision until at least Tuesday.

Calls for personnel change are coming from both the top and bottom with miners in Serbia demanding that 17 managers, who they accuse of calling police during the strike aimed at bringing down Milosevic, be removed.

The miners are allowing vital coal supplies to move again after seven days of strikes but say it will be kept at a minimum and they have set a deadline of October 12 for the managers' removal.

Joy and suspicion on the streets

CNN.com correspondent Steve Nettleton spoke to people on the streets of Belgrade on Sunday. He said although people were pleased and excited about events of the last week, some were suspicious that Milosevic's downfall had been "all too easy " and "over too soon."

Borivoje Filipovic said: "With Milosevic still in the country we wonder if some sort of deal has been made."

Retired lawyer Siban Stojanovic, 72, said: "Milosevic stole everything. He didn't care about the people and the country. I was afraid I would die before this kind of change."

Many families strolled outside the ransacked parliament building on Sunday. Lolic Milica told CNN.com's Nettleton: "I'm not sad when I see it because the building represents the lies and suffering of the past 10 years."

She also said the West should not expect to buy good relations and respect with Serbia by investing money. "Serbia will forgive, but not forget," she said.

Saturday's simple swearing-in ceremony ended two weeks of high drama, which saw Milosevic thrown out of office by a wave of public protests after he had desperately tried to cling to power despite losing last month's presidential elections.

"Everything is peaceful and Yugoslavia and Serbia have joined the community of democratic nations," an exhausted but elated Kostunica, told assembled lawmakers and dignitaries as he was sworn-in during a joint session of parliament.

In his first decision after swearing his oath of office, Kostunica lifted a Serbian economic blockade on Montenegro.

He stated that his first priority would be improving relations with the tiny republic, Serbia's only remaining partner in Yugoslavia, which have been pushed to breaking point by Milosevic's hardline, nationalist rule.

Kostunica also said Yugoslavia needed to strengthen its sovereignty over Kosovo, a message bound to infuriate the province's majority ethnic Albanians, who are pushing for independence and fear that with Milosevic's downfall their demands will no longer garner international attention.

A big question mark remains over the future of Milosevic himself.

The former Yugoslav strongman has said he wants to carry on in politics, while the West wants him extradited to face charges rising out of the Kosovo conflict.

Kostunica has said he will not hand Milosevic over to the U.N. war crimes tribunal in The Hague and on Saturday said he had other things to worry about than his predecessor's fate.

Reuters contributed to this report.

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