By Matthew Price BBC correspondent in Belgrade

The president of Montenegro has said he is "ready to do everything to establish the truth" over allegations that he has been involved in cigarette smuggling.

In an interview, Milo Djukanovic stated that he did not know why an investigation has been launched against him.

The anti-Mafia directorate in southern Italy recently put the president under investigation on charges of alleged Mafia conspiracy aimed at international cigarette smuggling.

This affair, if it continues to grow, threatens to destabilise Montenegro's already fragile political system and to damage the difficult relationship between the republic and its Adriatic neighbour, Italy.

Mr Djukanovic, speaking to an Italian news agency, says he wishes to clear up the matter to protect the dignity of Montenegro, that of the position of president and of himself.

He adds that Montenegro does an "exceptional amount" to prevent smuggling, and says he is ready to do everything to establish the truth.

The allegations are not new. There has been talk for more than 10 years of a link between Montenegro and smuggling.

In the 1990s, smuggling was seen as a way of helping the republic survive the effects of war and sanctions levelled against the regime of the former Yugoslav President, Slobodan Milosevic.

The charges against Mr Djukanovic and his former staff relate to events alleged to have taken place during the late 1990s and the year 2000.

Political opponents

So far the Italian authorities have not formerly notified the Montenegrin state prosecutor of the investigation. It is thought that could happen during this week.

Public opinion in Montenegro appears itself to have changed little in the wake of this latest news, perhaps because of the fact that such allegations are not new.

But political opponents of Mr Djukanovic have been keen to voice their thoughts on the affair.

The leader of the main opposition party, Predrag Bulatovic, said it could only be bad for Montenegro if the names of its officials were linked to the Mafia and the smuggling of cigarettes.

He said the story threatened to blow up into an international scandal.