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Ban may cripple Y'slavia in long run
BELGRADE. Yugoslav, June 1: Tough' U.N sanctions slapped on Serb-led Yugoslavia may not produce immediate effects, but could devastate the country's war burdened economy in the long run, experts said Sunday, reports AP.
Belgrade residents, whose living standards have plummeted in recent months be cause of the costs of financing the military, appeared resigned to continued hardship and questioned whether sane tions would change the Yu goslav leadership's policies.
"My budget has been embargoed for months. So this new embargo will not make much differences," said Slavica Perle, a housewife.
The U.N Security Council voted Saturday for sweeping economic and political sanctions against Serbia and Montenegro. the two republics constituting what remains of Yugoslavia.
The sanctions were im-
posed to force Yugoslavia, held largely accountable for the escalation of ethnic warfare In Bosnia-Herzegovina, to hall its involvement there. The con Diet pits Serbs against Slavic Muslims and Croats.
Yugoslavia’s Foreign Trade and Economics Minister. Bozo Jovanovic, predicted a "general (economic) standstill, and enormous shortage " in the long run because the economy largely depends on industrial imports.
But others concurred with Mrs. Perle that effects of the sanctions — including an oil embargo, a trade ban except for food and medicine, suspension of air links and a freeze on foreign assets — would not be immediate.
The new Yugoslavia is self-sufficient in food and electricity production. It also produces about a quarter of its 400.000-ton monthly oil needs.
"Yugoslavia's oil production Is enough for the Yugoslav army to continue the war." one
Western diplomat said
Media reported that Yu goslavta, anticipating an -.m bar go. had since the begin nlng of the year Imported twice Its gasoline needs, and stocked several months re serves.
The Yugoslav economy is burdened by an 81 per cent monthly inflation rate, 20 per cent unemployment and a foreign debt of about 12.5 billion dollars.
Meanwhile, Britain on Monday joined the United States in freezing Yugoslav assets in response to sanctions intended to end the civil war in Bosnia-Herzegovina.
The Treasury made the announcement shortly after midnight. and said it would affect Serbian and Montenegrin assets starting Monday.
Prime Minister John Major said Saturday that sanctions must be used to Impress upon the Serbs "that their current behaviour is unacceptable.
Another despatch from
I okyo adds: Japan said Monday It would halt trade with Yugoslavia and stop movement of Its assets in and out of Japan as part of U N Security Council sanctions against the rump state, reports Reuter
'Japan is ready to take action in line with the U.N deci Sion," a foreign ministry spokesman said. A formal an-n9uncement would be made within a few days.
A Reuter copy from Beijing adds: China said Monday it would abide by UN sanctions against Serb-led Yugoslavia, despite having abstained on the Security Council vote imposing the measure.
'China will carry out the relevant decisions made by the (United Nations) Security Council, the Foreign Ministry said in.an answer to a question.
China and Zimbabwe were the only two countries to abstain on the motion In the 15 member Council. The other 13 all voted in favour.
China sells oil to Yugoslavia.