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Sunday Morning News

U.S. to Decide on Status of $50 Million in Proposed Aid to Yugoslavia

Aired April 1, 2001 - 7:03 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: President Bush is spending this weekend at Camp David, but his aides are also keeping a close eye on developments in Belgrade, and are the State Department and Congress.

We have more on that now with Kelly Wallace, who's live at the White House. Hi, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hi, Kyra. Well, still no formal reaction from the White House. Late last night, after the arrest of Slobodan Milosevic, an administration official would only say that the White House is still closely monitoring the situation. We would expect to get, though, some additional comments this morning.

Clearly, the administration, which has been calling for Mr. Milosevic to be brought to justice, will welcome this development. Senior administration officials have been saying over the past few days, an arrest of Mr. Milosevic would be viewed as an important step forward for the rule of law.

These officials saying that the White House believes that Mr. Milosevic should be held accountable for the crimes he's accused of committing against his own people. The administration, though, also hoping that the arrest of Mr. Milosevic would lead to cooperation with the International War Crimes Tribunal, because now the arrest of Mr. Milosevic came just as a congressionally imposed deadline passed.

The Bush White House must determine if the new Yugoslav government has been taking a number of steps towards democratic reform, including cooperating with the War Crimes Tribunal. And before the Bush White House makes its decision, it has been hearing from both sides.

Some believe that unless and until Mr. Milosevic is turned over to the Hague to face war crimes charges stemming from the Kosovo conflict, absolutely no additional U.S. money should go forward. At stake right now for Yugoslavia is about $50 million in U.S. assistance as well as American support of loans going to Yugoslavia from the World Bank and the International Monetary Fund. But others believe the arrest of the former Yugoslav president signals the new government's commitment to the rule of law and to democracy, and that that commitment should be rewarded. The State Department has said that a decision would not come until Monday at the earliest. As for Mr. Bush, Kyra, as you mentioned, aides saying he has been kept up-to-date about the developments from Belgrade. He is due back at the White House from Camp David later this afternoon -- Kyra.

PHILLIPS: Kelly Wallace, thanks so much.

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