Yugoslav President Vojislav Kostunica says his military secret service has "firm evidence" a senior Serbian official passed secret documents to a U.S. diplomat before both were detained last week. 

Yugoslav military police picked up the U.S. diplomat and Serbia's Deputy Prime Minister Momcilo Perisic at a Belgrade restaurant on Thursday. The incident angered the United States and caused a political uproar in Belgrade. 

The diplomat, identified as First Secretary John David Neighbor, was roughed-up and held for 15 hours before being released Friday. Mr. Perisic, a former top general, was released Saturday. 

On Monday, the United States accepted a formal apology from Yugoslavia's foreign minister for the detention and reported mishandling of the diplomat. 

The U.S. State Department denies that any spying took place and says Washington considers the case closed. 

President Kostunica said he regretted Mr. Neighbor was detained so long and identified by name and nationality. Mr. Kostunica said Belgrade wants to maintain solid ties with Washington. But he also said the incident was a "spy affair of huge proportions." 

Media reports in Yugoslavia have speculated that Mr. Perisic may have passed documents on former Yugoslav President Slobodan Milosevic to the U.S. diplomat. 

In related developments Monday, U.S. Secretary of State Colin Powell criticized the Yugoslav government for not cooperating with the United Nations war crimes tribunal. Mr. Powell warned that U.S. reconstruction aid to Belgrade may be in jeopardy. The Bush administration has to rule by March 31 whether Belgrade has met conditions set by Congress for more economic aid. 

Some information for this report provided by AP and AFP.

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