U.S. pledges aid to Yugoslavia

A supporter embraces a poster of Slobodan Milosevic at a rally in Belgrade

By CNN State Department Producer Elise Labott

WASHINGTON (CNN) -- The U.S. has announced it will pledge "substantial support" to help rebuild Yugoslavia at a donors' conference in Brussels.

But the State Department said disbursement of any U.S. funds would be conditional upon Belgrade's full co-operation with the U.N. War Crimes Tribunal at The Hague.

Deputy State Department Spokesman Philip Reeker said that U.S. participation in the conference had been made possible by the recent steps taken by Yugoslavia to co-operate with the tribunal.

He said: "In attending the conference, the United States is expressing strong support for building a democratic and progressive society in the Federal Republic of Yugoslavia, and overcoming the legacy of (former Yugoslav President) Slobodan Milosevic."

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Ambassador Larry Napper will lead the U.S. delegation at the conference in Brussels this Friday, which is jointly sponsored by the European Commission and the World Bank.

Napper is the co-ordinator for US assistance toward democracy in Eastern Europe.

Reeker declined to comment on the actual amount the U.S. expects to pledge, but a senior State Department official said it would be a "significant" amount. Belgrade hopes to raise $1.3 billion to rebuild its war-torn country.

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This week Belgrade initiated legal proceedings for Milosevic's transfer to the war crimes tribunal in the Hague.

Yugoslav officials call it the official start of his extradition to the Hague.

Yugoslav President Vojislav Kostunica said that it was unlikely Milosevic could be extradited before Friday's conference, but that Belgrade was committed to his transfer.

State Department Richard Boucher said on Tuesday the "positive steps" taken by Belgrade would be an "important factor" in the administration's decision on whether to attend the conference.

"I would point to these developments as being very positive indicators of their intention to cooperate, and they will be considered carefully as we decide," he said.

After U.S. threats to hold back aid to Belgrade for failing to co-operate with the Hague, Yugoslav authorities arrested Milosevic on April 1 of this year on abuse of power allegations.

The next day Secretary of State Colin Powell certified that Yugoslavia met the conditions for U.S. assistance.

But he said the United States would not make a decision on further aid or support for the conference until Belgrade took more steps to co-operate.

On Monday, U.S. Ambassador William Montgomery met Serbian Prime Minister Zoran Djindjic in Belgrade to discuss the government's efforts.

A senior State Department official said the discussion showed that Belgrade is working "swiftly and with determination" to fully co-operate with the Hague.

European diplomats tell CNN that the EU has been pushing United States to support the conference, in the wake of moves by Belgrade to extradite Milosevic. One diplomat said it was important to "encourage" Belgrade's efforts.

"It was not an easy political decision at home for Kostunica," he said. "It is fairly obvious the Yugoslav government seems to be pushing on and we hope the U.S. will be on board."