Authorities rejected opposition party appeal for release on bail of dozens of detainees arrested during demonstrations following fraudulent 15 October presidential election. Baku courts ruled 4 opposition leaders and editor of opposition daily must remain in pretrial detention for further 3 months. Council of Europe and Human Rights Watch condemned government’s post-election crackdown.

Failed attempts by NATO's Stabilisation Force (SFOR) to locate former Bosnian Serb president Radovan Karadzic and military leader Ratko Mladic caused Hague War Crimes Tribunal to question Bosnian and Western political will. Posters in support of Karadzic appeared in his wartime base, Pale, after 4-day NATO-led operation failed. Police arrested former president Jelavic on organised crime charges. High Rep. Paddy Ashdown launched attempt to unite city of Mostar institutions presently divided between Bosnian Muslims and Croats.

Conflicting versions of end to last month’s incursion by Chechen rebels into neighbouring Dagestan. Russian officials say troops killed all but 3 rebels; latter say most made it back to Chechnya. Meanwhile, fighting continues with no end in sight. Official Russian statistics showed sharp rise in number of rebel attacks in 2003.

Explosion 11 January destroyed buildings; no one claimed responsibility. Truce between nationalists and French government has lasted 2 months.

Prospects for reunification improved as new coalition government formed in Turkish Cyprus. Pro- reunification Republican party leader and new prime minister Mehmet Ali Talat joined by Democrat Party’s Serdar Denktash, son of President Rauf Denktash. 1 May set by new government as date to find solution based on previously rejected UN plan. EU leaders pushed Turkey to encourage resolution of Cyprus issue in light of its bid for EU membership. Turkish PM Erdogan met UN Secretary General Kofi Annan 24 January and asked for renewed efforts by UN to find solution. Annan conditioned talks on both sides agreeing to UN blueprint as basis for negotiations and referendum on results. Sec. State Powell indicated willingness of U.S. to help sides reach Agreement.

Mikheil Saakashvili received over 96% of vote in 4 January presidential election, reported by international and local observers to have been significantly fairer than 2 November parliamentary vote: inaugurated 25 January amid festive atmosphere in Tbilisi. New parliamentary election set for 28 March. Following Saakashvili victory, Aslan Abashidze, authoritarian leader of Ajara region, reimposed state of emergency and arrested members of pro-Saakashvili youth organisation, Kmara. Indications Abashidze’s regime weakening vis à vis Tbilisi; following conciliatory gestures from both sides, tensions high in anticipation of move by Abashidze’s opponents, backed by Tbilisi, to oust him. U.S. said would help pay for closure of Russian military bases in Georgia, including one in Ajara, after Russia claimed withdrawal would take 11 years. Following meeting with UN special envoy Heidi Tagliavini, Abkhaz foreign minister said ready to resume peace talks with Tbilisi. Turkey seeking mediation role.

President Nursultan Nazarbayev warned international organisations to stop interfering in Kazakhstan’s internal affairs following widespread criticism of restrictive draft media law, approved by parliament in December. Law still to be considered by senate.

Head of UN Mission in Kosovo (UNMIK) Harri Holkeri warned Kosovo’s parliament it had no authority to debate changes to Constitutional Framework. Urged Serb leaders to participate in working groups on plan for implementation of UN’s standards (to be met before discussion of final status) after they refused to participate following UNMIK’s rejection of their objections to the Kosovo standards document. UNMIK called on Belgrade to return more than 200 exhumed bodies to Albanian Kosovar relatives. Hague tribunal allowed 3 indicted war criminals to be tried in Serbia. Kosovo PM Rexhepi replaced senior official responsible for liaison with UNMIK at behest of UNMIK, who accused official of undermining public opinion on cooperation between government and UN mission.

Discovery of listening devices in offices of several opposition MPs provoked political storm. MPs blame National Security Service (NSS), while government says opposition trying to generate controversy ahead of 2005 elections. Seven opposition parties joined to form united bloc; say they will back 1 candidate to run against President Akayev.

Talks held in Brussels 16 January between officials from EU, Moldova and Ukraine regarding possible joint border monitoring regime to stem smuggling across Transdniestrian portion of Moldova-Ukraine frontier. In Tiraspol, Transdniestrian officials again rejected idea of placing OSCE peacekeepers in region between breakaway republic and Moldova.