On behalf of the United States of America, I would like to thank the European Commission and the World Bank for hosting this conference to organize a concerted response by the international community to the extraordinary events that have taken place in the Federal Republic of Yugoslavia since September 24. On that date, the people of Yugoslavia went to the polls and exercised their right to vote. In the face of concerted efforts by the Milosevic regime to steal the election, the Yugoslav people refused to allow their democratic choice to be subverted. Their courage and conviction compelled Milosevic to acknowledge the election results and bow to the clearly expressed will of the voters. As a result, the Federal Republic of Yugoslavia for the first time has a government chosen by the people with a mandate to build democracy, a prosperous market economy, and the rule of law. We are pleased that the FRY has begun the process of rejoining international institutions such as the United Nations and the Organization for Security and Cooperation in Europe, with the full rights and responsibilities of membership. The December 23 elections in the Serbian Republic offer a critical opportunity to further strengthen and consolidate democracy in the FRY. The United States looks forward to a decisive victory by democratic forces in the Serbian Republic elections.

We are ready to work with the new authorities in the FRY as they struggle to overcome the pernicious legacy of the Milosevic regime. This will require a firm commitment to democracy, market reforms, and the rule of law. It will also require redoubled efforts to promote regional stability through consistent implementation by all parties of key international commitments, such as the Dayton Agreement and UN Security Council Resolution 1244. Cooperation by all the countries of the region, including the FRY, with the International Criminal Tribunal for the Former Yugoslavia plays a preeminent and essential role and is part of a process of genuine reconciliation.

The United States welcomes the opportunity at this conference to reaffirm our support for the peoples of Serbia and Montenegro. Serbia and Montenegro share the same economic space and many common interests and challenges. We welcome the commitment of representatives of Montenegro, Serbia and the FRY to a process for discussing relations between its two republics in a transparent and democratic manner. We join the international community in welcoming the presence of representatives of the governments of the FRY, Serbia and Montenegro at this conference. They are our full partners in the proceedings today and in the work to come.

The peoples of Serbia and Montenegro deserve the strong support of the international community as they look to the future, even as they struggle to cope with the emergency needs of the winter of 2000. We appreciate the efforts of the European Commission, the World Bank and the United Nations in preparing this conference and the needs assessments that form the basis of our work. The Clinton Administration and the United States Congress have worked together to provide substantial resources for both Serbia and Montenegro in 2001. Today, the United States is prepared to announce a total of $158 million in new pledges of assistance for the period encompassing the winter of 2000-2001.

For Serbia, the United States pledges today a total of $87.6 million in rapid disbursing assistance allocated as follows:

• Emergency Food Assistance - $45 million. Through the U.S. Agency for International Development (USAID) Food For Peace Program, the United States will contribute $23.5 million to provide food for 240,000 refugees, social cases and pensioners through the World Food Program (WFP). In addition, the U.S. Department of Agriculture (USDA) will work with WFP to provide $10 million in food assistance for the neediest and most vulnerable individuals in Serbia’s population. USDA will also coordinate with the FRY on a government-to-government donation of approximately $11.5 million of animal feed to support the Yugoslav livestock sector. This contribution will be monetized to provide additional local currency for mutually agreed humanitarian purposes.

• Emergency Energy Assistance - $15 million. Through USAID, the United States will purchase $10 million in electricity to help alleviate human suffering from widespread energy shortages in Serbia this winter. In addition, the United States will provide $5 million for urgently needed spare parts for power and heat production and improved energy efficiency and to operate heating systems.

• Community Development and Humanitarian Needs - $14.1 million. The United States will provide $8 million for technical and material assistance to municipalities and $6.1 million in NGO grants to meet the most basic human needs in communities throughout Serbia and to facilitate efforts to account for missing persons from the conflicts in the Balkan region.

• Democracy and Civil Society - $12 million. The United States will continue and intensify our support for the democratic process, development of independent media, strengthening of NGOs, and building the rule of law.

• Technical Assistance to the Banking Sector - $1.5 million. The goal of this emergency technical assistance to the National Bank of Yugoslavia is to strengthen the FRY banking system.

For Montenegro, the United States pledges today a total of $70.4 million in rapid disbursing assistance, allocated as follows.

• Emergency Food Assistance - $12.9 million. USAID's Food For Peace Program plans to make a $3 million direct food donation and the U.S. Department of Agriculture will provide $9.9 million in commodities to be monetized through PVO programs.

• Emergency Assistance for Payment of Pensions and Energy Costs - $31.5 million. The United States will provide $31.5 million in funding to assist the Government of Montenegro in meeting requirements for pension payments and energy costs.

• Economic Reform and Implementation Technical Assistance - $9 million. The United States will provide technical assistance to help ensure macro-economic stability and accelerate market economic reform.

• Private Sector Development - $3 million. The United States will work to strengthen Montenegrin private enterprises to enable them to respond to the requirements of a market economy.

• Democracy and Civil Society - $14 million. The United States will support Montenegro’s efforts in democratic reform, NGO development, strengthening of civil society and development of independent media.

The United States looks forward to working with our partners in Yugoslavia to implement the decisions taken by the international community today. Together, we owe the brave peoples of the FRY our best efforts to support them as they work to realize the promise of a democratic future and their rightful place among the nations of a Europe whole and free.