Matthew Price BBC correspondent in Belgrade

Citizens of the Yugoslav capital are sceptical about US concessions on aid. The announcement that US aid to Yugoslavia was being unblocked came and went with scarcely a mutter in Belgrade's cafes and restaurants.

Of more importance was the fact that the sun started shining again after a couple of days of rain.

They always promise money, but we never see it. What we need is not one donation, but something to revive the economy

Belgrade resident Ana

People are generally fed up with America and what many see as its bullying tactics.

Back in March, the US announced that it would withhold aid until it was sure the authorities in Belgrade were cooperating with the War Crimes Tribunal in the Hague.

On Tuesday, the US reactivated the $40m package, saying it was satisfied Belgrade is now working with the Hague.

In the past few weeks a number of war crimes suspects have handed themselves in.

'Little practical help'

Some think the aid tranche is small compared to the cost of damage inflicted by Nato

Serbian Prime Minister Zoran Djindjic - in Washington meeting Mr Powell on Tuesday - is certainly pleased.

He said the announcement was very important in terms of setting up normal trade relations with the USA.

However many of his citizens are less sure.

"To be honest I think this is rubbish." That was the verdict of Ana, a 29-year-old living in Belgrade.

"They always promise money, but we never see it. What we need is not one donation, but something to revive the economy."

This is extremely important

Zoran, aged 36

Ana's words will strike a chord with many here. Much money has been pledged by the international community over the last few years, but people have seen little change in their living circumstances.

Another Belgrade resident, 42-year-old Dragan, summed it up nicely: "How do we ordinary people profit from it? It's not that I'm blaming the government, but little has changed. Who else should I blame?"

Most agree that the $40m itself is of little practical help.

Suggest that it is a nice little boost to the economy, and they throw back the billions of dollars of damage they estimate was inflicted on Yugoslavia as a result of NATO bombing during the Kosovo conflict in 1999.

Green light for investment

There is, of course, a wider significance to the US announcement.

Washington has sent a clear signal to other potential investors that it will not stand in their way.

In a country where unemployment is high and investment low, that is likely to be welcomed.

"This is extremely important", 36-year-old Zoran told me shortly after the news broke. Then he, too, voiced the feelings of many in this proud city.

"There are so many conditions imposed on us by the States I just fear this will be a case of 'do one more thing for us, and then we'll give you the money'."