U.S. closely monitors events in Yugoslavia

The arrest of Milosevic is considered an important step by U.S. officials to qualify the Yugoslav government for aid

WASHINGTON (CNN) -- White House officials said Saturday they were watching the situation in Belgrade "closely," holding back from further comment until the standoff between former Yugoslav President Slobodan Milosevic and Serbian police was resolved.

Earlier Saturday, a senior administration official told CNN the United States hoped the situation was resolved peacefully and with Milosevic's arrest.

The U.S. State Department said it was withholding any decision on the certification of Yugoslavia until Monday at the earliest.

Under a law passed by the U.S. Congress, the Bush administration must determine whether Yugoslav President Vojislav Kostunica and his government are working to implement democratic reforms, including cooperating with the International War Crimes Tribunal.

Kostunica's government is under U.S. scrutiny

Under the law, the deadline for certification for aid is midnight ET Saturday. However, U.S. aid could be given to the Balkan nation at some point in the future by congressional legislation.

At stake for Yugoslavia is $50 million in U.S. assistance, as well as U.S. support loans from the World Bank and the International Monetary Fund for Yugoslavia.

While the arrest of Milosevic is not a requirement for U.S. aid, a senior administration official said, an arrest would be an "important step forward."

One factor that could complicate U.S. President George W. Bush's decision on giving the aid is if Milosevic is arrested for domestic crimes, such as corruption, but not for war crimes.

Sen. Patrick Leahy, D-Vermont, co-sponsor of the law that enacted guidelines for the Yugoslavia aid package, said no aid should go forward unless Milosevic is sent to The Hague to face trial for alleged war crimes. Milosevic's indictment stems from the treatment of ethnic Albanians by Serb troops during the Kosovo conflict two years ago.

"This man is a war criminal," Leahy told CNN on Friday. "He is an international war criminal. He's violated virtually every norm of international law and, if we are going to make international law have an effect, if we are going to have the international war crime tribunals have an effect, then somebody like him has to be turned over."

Leahy: Milosevic must be tried for alleged war crimes

Others have said they believe if Milosevic is prosecuted only through the Yugoslav justice system, that would signal Kostunica's commitment to upholding the rule of law and to democracy. Such commitment, they say, should be rewarded with U.S. assistance.

Bush was spending the weekend at the presidential retreat at Camp David, Maryland. National Security Adviser Condoleezza Rice was also there, keeping the president up to date on the situation in Yugoslavia.

On Friday, Bush said he believed that Milosevic should be "brought to justice," but the president did not specify where the former Yugoslav president should be tried, and on what charges.

CNN White House Correspondent Kelly Wallace contributed to this report.

Official: Milosevic arrested
March 30, 2001
Police surround Milosevic home
March 30, 2001
Police arrest Milosevic aides
March 27, 2001
Del Ponte welcomes Belgrade move
March 26, 2001
Kostunica criticises warcrimes process
March 25, 2001
Milosevic greets anti-NATO protesters
March 24, 2001
Serbs hand over war crimes suspect
March 23, 2001
Milosevic net tightens, U.N. told
March 20, 2001

International Criminal Tribunal for the former Yugoslavia
Federal Republic of Yugoslavia

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