However, Yugoslav Secretary of Defense and JNA chief of staff, general Veljko Kadijević reneged on the earlier promise, saying that JNA needs its frequencies for flight path control and doesn't have sufficient funds in its budget to service a television network thereby effectively killing Yutel's plans of broadcasting independently of the local constituent republic TV centers.
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It also got its management with Nebojša "Bato" Tomašević, longtime editor-in-chief of Jugoslovenska revija getting named as Yutel's CEO, Goran Milić, well-known TV Belgrade personality, became the head of Yutel's news division while the station headquarters were selected to be in Motovun, a town in Istria.
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Ante Marković, an ethnic Croat from Bosnia presiding over the Federal Executive Council (SIV), formed his own party Union of Reform Forces (SRSJ) in July 1990 with economic reform and EEC ascension central to its program.