Serbia cautions Balkans over Kosovo independence

ZAGREB, June 24 (Reuters) Serbia cautioned its Balkan neighbours today that independence for the breakaway Kosovo province would destabilise the entire region and seriously undermine its potential for economic growth.

President Boris Tadic issued the warning at an energy summit of Balkan presidents in Croatia, attended also by Russian President Vladimir Putin, Serbia's chief ally in its bid to keep hold of the breakaway province.

''Kosovo independence would set a dangerous precedent, which would destabilise not just Serbia, but the entire Balkan region, as well as other regions,'' Tadic told the summit.

''Such a political and legal precedent would undermine the ability of southeastern Europe to exploit its potential for geo-political development.'' Serbia is reaching out for regional allies to halt a Western push at the UN Security Council to give Kosovo's 2 million Albanians independence, eight years after NATO bombs drove out Serb forces and the United Nations took control.

UN veto holder Russia is blocking the adoption of a Security Council resolution that would set the NATO-patrolled territory on the path to statehood, rattling nerves in Kosovo and raising fears of unrest.

Tadic was due to hold bilateral talks with Putin late today, a week ahead of the Russian leader's meeting in Maine with US President George W. Bush, an encouter some diplomats see as the last chance for a deal on Kosovo.

Russia last week rejected a third draft resolution, which called for another 120 days of Serb-Albanian talks on top of 13 months of dialogue that ended in predictable stalemate in March.

A plan by UN envoy Martti Ahtisaari to give Kosovo independence under the supervision of the European Union would take effect if the talks failed to produce agreement.

The resolution's rejection increased public pressure on leaders of the 90-per cent Albanian majority to declare independence unilaterally, a step diplomats say would shatter the 27-member EU's fragile unity on Kosovo.

''We can wait another two to three months at the most,'' a senior ethnic Albanian leader said late yesterday.

''And then, if as expected Russia vetoes the Ahtisaari plan at the UN Security Council, the Kosovo parliament will declare independence,'' former Kosovo prime minister Bajram Rexhepi was quoted as saying by the Beta news agency.

Kosovo Albanians reject anything less than independence for land cherished by Serbia as its spiritual heartland.

Almost one million Albanians were temporarily driven out during Serbia's 1998-99 war against separatist guerrillas.

Independent estimates put the civilian death toll at between 7,500 and 12,000, mostly Albanians.

REUTERS JT RN2142