A reform-minded new leader was being sworn in Montenegro yesterday after the US criticised Yugoslavia's Federal President, Mr Slobodan Milosevic, over the worst violence in decades in the tiny mountain republic.
Some 45 people were injured when supporters of outgoing hardline president, Mr Momir Bulatovic, an ally of Mr Milosevic, clashed with police on Wednesday in an attempt to block the transfer of power to Mr Milo Djukanovic.
In Belgrade, the US envoy to the Balkans, Mr Robert Gelbard, said his country held Mr Milosevic responsible for the violent demonstrations in Podgorica, Montenegro's main city.
In Brussels, a NATO official said the alliance would take a "very dire view of any action from Belgrade that seeks to undermine" Mr Milo Djukanovic. Provided it is clear that he is fulfilling his potential as a reformer and a democrat, he "can count on the support of the allies", the official said.
France urged all parties to abide by the result of Montenegro's elections.
In another part of the Balkans, the UN handed over the former Serb enclave of Eastern Slavonia to Croatian control after helping to convince ethnic Serbs they could have a future in Croatia.
But in the Serbian province of Kosovo, which has an ethnic Albanian majority, a wave of violence over the past year has prompted fears among Western governments that it could become the next powder keg to explode in the Balkans.
Mr Gelbard is due to visit Kosovo today as part of his Balkan tour to try to restore a SerbAlbanian dialogue.
In Montenegro, Wednesday's confrontation threatened to create a new Balkan flashpoint.
The young reformist could be a rival to Mr Milosevic's hold on power in a Yugoslav federation that now comprises only Serbia and its sister Montenegrin republic.
Mr Bulatovic was narrowly beaten by Mr Djukanovic in presidential elections in October but claimed fraud and demanded fresh elections.
The West supported Mr Djukanovic's victory and has warned Mr Milosevic, who supported Mr Bulatovic in the polls, not to disrupt the handover of power.
Political sources said Mr Djukanovic's supporters expected his inauguration, due to start at 4 p.m. in Montenegro's ancient capital, Cetinje, to pass quietly.
Ambassadors from some 50 countries were in Montenegro for yesterday's ceremony.
Workers cleared debris yesterday and towed away wrecked cars. Reporters said the north of the republic, a stronghold of Bulatovic hardliners, was also quiet.
"I . . . have to hold President Milosevic responsible for supporting these demonstrations," Mr Gelbard told reporters in Belgrade.
Remaining sanctions on Yugoslavia would not be lifted "until and unless the government of this country and its political leaders come to accept that international standards of behaviour and democratic processes, and recognition and acceptance of democratic processes are what the world expects to happen," he said.
He said the US government and the international community was deeply concerned and offended "by the absolutely outrageous behaviour by outgoing President Bulatovic in inciting these illegal riots . . . completely in contravention with international law and all accepted standards".
Mr Bulatovic had given Mr Gelbard his word in person on Monday that he would hand over power peacefully to his rival. He backtracked on that pledge, inciting the crowd on Wednesday.
Mr Gelbard said he was "personally offended" Mr Bulatovic had gone back on his word.
"His subsequent behaviour makes it very clear that he is not a person who lives by international standards or accepts democracy. I hold him responsible along with his collaborators for this outrageous illegal behaviour," Mr Gelbard said.