"I am outraged and disgusted by this vicious attack on an elderly and innocent Serb man and his wife, who were assaulted and dragged from their home last night," Dr. Bernard Kouchner said in a statement released in Paris.

Dragan Rapaic and his wife, Vukosava Rapaic, were assaulted in Obilic by several unidentified men at around 9 p.m. on Thursday, according to the United Nations Interim Administration Mission in Kosovo (UNMIK).

The couple was found lying in the street, with Mr. Rapaic dead and his throat slashed. Mrs. Rapaic, whose throat was also cut, was taken to the British contingent hospital and then to Mitrovica hospital where she was being treated for injuries which police have termed severe, but not life-threatening.

Dr. Kouchner, who pledged that the perpetrators would be brought to justice as soon as possible, also warned of the wider implications of continued violence. "Attacks on Serbs and other minorities cannot continue if the people of Kosovo ever hope to count on the support of the international community," he said.

Speaking at the bi-weekly meeting of UNMIK's Joint Interim Administrative Structure (JIAS), Dr. Bernard Kouchner called attention to the continuing unrest in the Presevo Valley, and urged Kosovo Albanians to help stop the violence there. "This is so stupid," said Dr. Kouchner. "There is no military solution for the Presevo Valley; there is no police solution, only a political solution. What is certainly necessary is that social dialogue be set up with the Albanian community there."

Dr. Kouchner warned that, internationally, the positive attitude towards Kosovo was slowly being replaced by a very negative image because of the high number of violent acts committed in the province. "It is a political necessity that you change that," he told the members of the JIAS. "You are the best body to understand that and to convince people that democracy, which is on its way, is the only solution."

The administrative body also discussed Kosovo's currency shift from the Deutsche Mark to the Euro, which will take place gradually over the next 18 months. "We must emphasize the role of education in this," Dr. Kouchner said. "In my country [France] it is the young people who are training their parents on the change in currency, from what they have learned at school."

The report by Secretary-General Kofi Annan on the UN Interim Administration Mission in Kosovo (UNMIK), which was introduced by UN Assistant Secretary-General for Peacekeeping Operations, Hédi Annabi, highlights the significant progress in establishing provisional assemblies after the successful municipal elections of 28 October, but emphasizes the need for Kosovar society to become more involved at the municipal level.

Regarding the upsurge of violence that followed the elections, the Secretary-General cautions that "extremists cannot be allowed to undermine the achievements made so far" and calls on the province's leaders and communities to take concrete action to show their intolerance towards violent acts.

On another key issue, the report urges Kosovo Serbs to strengthen their participation in Kosovo's Joint Interim Administration, including the provisional municipal assemblies, and welcomes the increasing dialogue between key elements of the Kosovo Serb community and the new Government in Belgrade.

The report also states that the continuing conflict in southern Serbia's Presevo Valley is destabilizing the region, undermining relations between Kosovo and federal authorities and posing a serious threat to both the general populace and to community relations inside Kosovo. The Secretary-General calls on local leaders and the people of Kosovo to cooperate with the efforts of the international community to prevent the export of violence from the province.

After hearing a briefing by Mr. Annabi, the Council held a wide and intensive discussion, in which all of its 15 member took part. The Council also heard a statement by the Federal Minister for Foreign Affairs of the Federal Republic of Yugoslavia, Goran Svilanovic, who, in part, drew the Council's attention to the serious situation in southern Serbia, particularly the Ground Safety Zone.

"Again, Mitrovica Region has been the scene of sad and tragic activities," Dr. Bernard Kouchner said in a statement issued in Pristina.

According to the UN mission, the violence in the town of Leposavic was sparked by an incident earlier in the day involving a Kosovo Serb who was stopped by a police patrol for driving his car recklessly. The man was arrested by UNMIK after he accelerated his car towards one of the police officers. A 200-strong crowd later formed at the local police station to demand the release of the detainee.

Over the course of the evening, the crowd became increasing violent, throwing stones at local police vehicles and taking hostage seven Belgian soldiers, who were later released following negotiations by the Belgian Commander. Around midnight, the mob broke through the gates into the police compound, where international forces responded by firing tear gas and warning shots into the air. The situation was stabilized by the early hours of Sunday morning, UNMIK said.

As a result of the violence, two Kosovo Serbs died - one from a gunshot wound and the other from an apparent heart failure - and a third person was injured. UNMIK Police and the international forces are currently investigating the incident. In an unrelated attack, a Kosovo Albanian male was found shot dead in his apartment in North Mitrovica.

Today, Tony Welch, UNMIK's Regional Administrator, and the Regional Commander of the KFOR international force Brigadier, Christian Falzone, met with three Kosovo Serb leaders from Leposavic, urging them to calm down the town residents so that peace could be restored.

Dr. Kouchner at inaugural ceremony of Kosovo Supreme Court

Speaking to journalists after the inauguration, Dr. Bernard Kouchner said Kosovo had come a long way in the judicial sphere since UNMIK first arrived in the province. "When we came, there were no courts, no judges and no prosecutors," he said. "Never before in any peacekeeping operation has a judicial system been set up so fast."

The UNMIK chief cautioned, however, that the justice system was not perfect. There were complaints about it, and everyone had to work to improve it, he said.

The Supreme Court is the court of last appeals and consists of 14 Kosovar judges and two international judges. All judges were appointed by Dr. Kouchner.

Expressing happiness that the court had returned to the building where it was located about 10 years ago, the Court's President, Rexhep Haxhimusa, pledged to abide by the principles laid down in international human rights declarations and conventions.

Briefing the press at UNMIK Headquarters in Pristina, police spokesman Derek Chappell said two murders had occurred in Prizren on 10 December. In both cases, the victims - both males, one aged 14 - had been shot by close family members as a result of disputes. One suspect, aged 17, is now being detained on a murder charge.

"These two incidents tragically illustrate the problems of an armed society that displays a willingness to use casual violence," Mr. Chappell said. "It is especially sad that these incidents took place after a week that had been free from murders throughout Kosovo."

The spokesman said UNMIK police see evidence of extreme violence - beatings, stabbings and shootings - on a daily basis, occurring from relatively trivial incidents such as traffic accidents and family squabbles.

"As we are achieving increasing success against serious crime throughout the province, and as we see steady improvement in the acceptance of the International and Kosovo Police, it seems that the real fight against fear, violence and intimidation must be fought in the hearts and minds of the people of Kosovo, who must confront this casual acceptance of violence," Mr. Chappell said.

Last week, 420 criminal acts were reported to UNMIK Police. In that same period, there were 87 arrests, including 7 for outstanding major crimes.

Mr. Haekkerup will replace Dr. Bernard Kouchner, who has headed the United Nations Mission in Kosovo (UNMIK) since July 1999. The changeover is expected to take place in January.

In a statement announcing the appointment, Mr. Annan paid tribute to Dr. Kouchner for "the inspirational leadership and dynamism with which he led this extremely difficult and challenging mission and for the remarkable success he has achieved there in its first year and a half."

According to Mr. Annan's spokesman, following the successful completion of the recent elections in Kosovo, Dr. Kouchner indicated to the Secretary-General that he wished to relinquish his responsibilities as head of UNMIK.

The Secretary-General said he was very pleased to have recruited a man of Mr. Haekkerup's stature and ability to take over from Dr. Kouchner.

Born in Copenhagen in 1945, Mr. Haekkerup has had an extensive political career, occupying such positions as Member of Parliament, member of the Danish delegation to the North Atlantic Assembly and rapporteur of the Danish Defence Commission. From 1987 to 1993, he was also a Board member of the Danish Centre of Human Rights.

In Pristina, Dr. Kouchner warmly welcomed the announcement and conveyed his "very best wishes" to Mr. Haekkerup.

"He will have many challenges ahead of him as head of UNMIK," Dr. Kouchner said in a statement. "I hope it will be a fulfilling experience for him, here in Kosovo, as it remains for me."

Addressing the first meeting of Kosovo's Council of Joint Interim Administrative Structure Co-heads, UNMIK Chief Dr. Bernard Kouchner said the violence was meant to send a clear message to the international community and the moderate Kosovar leadership. "Those orchestrating this violence were fighting winds of change and they don't understand that it will hurt Kosovo and the growth of democracy here," he said.

Dr. Kouchner said the upsurge of violence in Serbia's Presevo Valley had the international community very worried, especially now that President Vojislav Kostunica was in power in the Federal Republic of Yugoslavia and democracy was burgeoning there.

"If someone's calculation is that by escalating violence in Presevo, they can involve NATO in a confrontation with Serbia, they are wrong," Dr. Kouchner warned. The international community would not tolerate a revival of Kosovo Liberation Army-type activity, he said, calling for a political solution to the problems faced by Albanians in the region.

The Council, which UNMIK said will "act somewhat like a council of ministers," is mandated to propose, direct and harmonize policies of Kosovo's interim administration. Its three standing committees will deal with economic, general and social issues, while other committees will be formed when needed in response to emerging concerns.

According to the refugee agency, nearly 5,000 people have fled from southern Serbia to Kosovo since November 20 due to fears of a possible Serbian military crackdown on Albanian rebels in the region. An estimated 4,300 of that group still remain in Kosovo.

Returnees interviewed by UNHCR cite concern about their homes in Presevo and the generally calmer situation in the area as the reasons for going back. Restrictions of movement across the line dividing Kosovo and southern Serbia have been relaxed and there is traffic in both directions, the agency said.

The new regulation signed by UNMIK chief Bernard Kouchner, bolsters a similar one passed last year,which allowed for the temporary removal of persons from an area if they were perceived as threats to other people's human rights, public or private property, the rule of law or the functioning of public institutions.

According to UNMIK, the new law has "more teeth" than the previous version because it foresees a penalty - if people violate their orders, they may face a prison term.

"The previous regulation had no judicial backing in it," UNMIK spokesperson Claire Trevena told the press in Pristina today. "Now, if somebody does break the exclusion order, they can end up going to court and facing 30 days in prison."

The exclusion orders are valid for a maximum period of 30 days and can be appealed. They are imposed on people who are suspected of participating in violent acts. Violators may face up to two months in prison.