Yugoslavia welcomes US aid breakthrough

Mr Milosevic's wife and daughter-in-law on a prison visit

The Yugoslav Government has welcomed the United States's decision to attend an international aid donors conference in Brussels on Friday.

Deputy Prime Minister Zarko Korac called the decision a very encouraging sign, and said it showed that the Americans were sending a signal of political and economic support for reform in Yugoslavia.

We believe it's in our interests to see Yugoslavia continue on a path toward democracy and economic reform

US State Department

The US had threatened to boycott the conference until the Yugoslav Government passed a decree paving the way for former president Milosevic's handover to the International War Crimes Tribunal.

Even after the decree was adopted, Washington said it required more information before it would agree to attend the conference.

On Wednesday, a State Department official told the Reuters news agency the US had taken the decision to attend "based on the steps that they have taken and assurances they have made to us" over co-operation.

'Significant pledges'

"In Brussels, we expect to make significant pledges because we believe it's in our interests to see Yugoslavia continue on a path toward democracy and economic reform," he said.

President Kostunica initially ruled out Mr Milosevic's extradition

"But the signature on the cheque won't happen until Belgrade has followed through on its pledges to us," he added.

A potential package of $1bn worth of aid is believed to be on the table.

The head of the Yugoslav delegation to the meeting, Miroljub Labus, said the US decision guaranteed the success of the conference, and would boost Yugoslavia's reformists.

Yugoslav President Vojislav Kostunica has said Mr Milosevic cannot be extradited before the conference as the former leader has not exhausted the appeal process.

But the Tanjug news agency has reported that Yugoslavia's constitutional court will rule on Thursday whether or not the decree is constitutional.

'Immediate extradition'

If the decision goes against Mr Milosevic, his lawyers say it could mean his immediate extradition.

Supporters of the former president have branded the decree illegal

Serbian Prime Minister Zoran Djindjic has also said the former president could be transferred to The Hague before the conference on Friday.

Mr Kostunica, who rejected the idea of co-operating with The Hague when he first took office, acknowledged that US pressure had contributed to his change of heart.

Mr Milosevic has been held in jail since 1 April on charges of corruption and abuse of power. He faces more serious charges of crimes against humanity at the tribunal in The Hague.

He is accused of planning and ordering a campaign of terror, persecution and violence against the Kosovo Albanians at the end of the 1990s.