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Adoption of Quick Start Package
The Quick Start Package (QSP) of Laws (Law on Central Bank, Law on
Foreign Debt, Law on Foreign Trade, Law on Customs Policy, Law on
Customs Tariffs, Law on Immunity, Law on Budget/Budget Execution) were
adopted on 20 June by the BiH Parliament, representing the first
substantial act to be accomplished by the common institutions.
Importantly, adoption of these Laws, which contain the minimum
legislation necessary to establish a stable macro-economic environment
and develop a market economy, fulfils a number of the necessary
prerequisites for an IMF Agreement and clears the way for the holding of
the Donors Conference. "The Parliament of BiH has set up a framework of
very important laws which are applicable for the whole of BiH, (Ö) this
is the first legislative act in BiH after the elections, and I am very
happy that this has happened", said Principal Deputy High Representative
Steiner following the sessions
BiH Parliamentary Assembly
The BiH House of Representatives and House of Peoples (BiH
Parliamentary Assembly) held separate sessions at the Sarajevo National
Museum on 20 June. Principal Deputy High Representative, Ambassador
Michael Steiner, attended both sessions.
House of Representatives (HoR)
The first agenda item for the 3rd session of the HoR was the adoption,
as a package and under urgent procedure, of the QSP Laws. Vice Chair of
the CoM, Neven Tomic, gave a short introduction to the QSP Laws, in
which he outlined the origin of the QSP in the conclusions of the London
Conference, the difficulties in reaching a consensus, the help of the
OHR - in particular Ambassador Steiner and Mr. Bildt, and the importance
of the adoption of these Laws. The HoR then adopted the package. The HoR
also passed a decision calling on the CoM to
form a Tariffs Commission, and approved an Agreement with the European
Bank for Reconstruction and Development (EBRD).
Other issues dealt with at the session included a request by Social
Democratic Party (SDP) President, Zlatko Lagumdzija that the CoM provide
further information on: the realisation of the Sintra Declaration; work
of the CoM on passports/citizenship, ambassadors and flags and symbols;
and the CoM platform for the Donors Conference. Mr. Lagumdzija further
requested from the OHR information on activities carried out to date, as
well as plans of the future work of that Office. Two draft laws were
also presented by Mr. Lagumdzija to the HoR: one on the status of
Delegates, with an emphasis on empowering Delegates to perform their
duties across the whole territory of BiH (i.e. in both Entities); and
the other one on the issue of war criminals and the responsibility of
authorities to arrest those indicted and cooperate with the Hague
Tribunal.
House of Peoples (HoP)
CoM Vice Chair Tomic repeated his introduction to the QSP to the
Delegates of the 3rd session of the HoP. The package of seven Laws was
subsequently adopted in full, as were the decisions of the Parliamentary
Assembly on the Tariffs Commission and the Agreement between BiH and the
EBRD.
Council of Ministers
At their session on 19 June the BiH Council of Ministers (CoM)
discussed preparations for the Donors Conference. Co-chair Haris
Silajdzic commented after the session that the CoM had done its best to
prepare for the Conference. However, he forecast that the conference
would be postponed and criticised "obstruction of the Pale (Bosnian
Serb) leadership regarding the Quick Start Package, and customs tariff
laws in particular."
Other issues reviewed by CoM members included financial arrangements
with the International Monetary Fund (IMF). The CoM also appointed a
delegation to take part in the work of the London Club.
The Council of Ministers (CoM) met again on 20 June behind closed
doors. The CoM took a decision requesting the Presidency to appoint an
Expert Commission tasked with making proposals concerning Article 4.3 of
the Law on the Execution of the Budget within one month. Other issues
discussed were the Donors Conference, the arrival of NATO
Secretary General Javier Solana and the opening of airports in Banja
Luka, Mostar and Tuzla.
Presidency
The BiH Presidency held its 20th session on 23 June in the National
Museum, Sarajevo. Discussions focused on the organisation and
distribution of the Ministry of Foreign Affairs and the Diplomatic
Consular Network. Minister of Foreign Affairs, Jadranko Prlic, and his
Deputies, Husein Zivalj and Dragan Bozanic, also participated in the
session. The session ended with no conclusive result, and it was decided
that discussion on this item would continue at the next Presidency
session, scheduled for 27 June.
Economic Issues
On 20 June the World Bank and European Commission released a joint
statement stating that on 19 June, Ms. Catherine Day, Director at the
European Commission, and Ms. Christine Wallich, Country Director for
Bosnia and Herzegovina at the World Bank had written to Donor Conference
participants, informing them of the postponement of the Third Donor
Conference for Bosnia and Herzegovina: "This is to inform you that the
donor conference has been cancelled because, in the eyes of the donor
community, there has not yet been sufficient progress towards an IMF
agreement to meet the conditions of the ministerial Steering Board in
Sintra", the letter said.
The statement said that following intense negotiations over recent
weeks, much progress had been achieved in setting the conditions for a
successful donor meeting: the issue of BiH's arrears to the World Bank
had been successfully resolved and key components of the Quick Start
Package had been approved by the Council of Ministers and by the State
Parliament.
"We remain hopeful that the grace period extended to the authorities of
BiH will allow them to make the key progress required on the IMF
programme", said Rory O'Sullivan, Director of the World Bank Resident
Mission in Bosnia & Herzegovina. The programme is essential to boost
donors' confidence in the economic future of the country and a
prerequisite to successful negotiations with the Paris and London Clubs
of official and commercial creditors on debt reduction and rescheduling.
"As of this date, the donors conference has not been rescheduled but,
should the recent rapid progress continue, it is expected that it could
take place in Brussels before mid-July," Ambassador Donato Chiarini,
Head of the Representation Office of the European Commission, added.
Mr. Scott Brown, IMF Mission Chief for Bosnia & Herzegovina, provided
additional clarifications on the status of the proposed IMF Program,
currently under discussion with the authorities of BiH, at a press
conference on 23 June. He said that the IMF has been seeking late last
year to reach understandings with the BiH authorities on an economic
programme that could be supported by an IMF stand-by arrangement. Recent
developments had given IMF confidence that it would be possible to
finish the task in the coming weeks. He said the proposed economic
programme had four basic elements:
- a currency board arrangement
under which the Central Bank would maintain a fixed exchange for the new
domestic currency and would not create money in an inflationary way by
extending credit;
- budgets that would be financed only from real
domestic revenues and external assistance, with no government borrowing
from domestic banks, enterprises or citizens;
- large scale external
assistance on concessional terms, in support of reconstruction and
humanitarian needs; and
- structural and legal reforms designed for
rapid transition to a market economy.
Preconditions for finalising the programme were the passage of laws
establishing basic economic institutions of the State; adoption of
Entity budgets that provided as well as possible for the needs of the
people while also honouring obligations to the State and avoiding any
domestic borrowing; and certain initial steps in implementing the State
Budget and Central Bank Law, including agreement on the design of the
new currency. Agreement would also need to be reached on priorities and
timetables for structural reforms during the coming year. The first
requirement, the passage of the State economic laws - had now been met,
and discussions would continue on the remaining issues in the next two
weeks.
On 19 June the Government of Japan decided to extend a financial
contribution of US$ 1.5 million for the purchase of ballot papers,
production of voter education materials and similar items, to the OSCE,
with a view to assisting with the preparations for the forthcoming
municipal elections.
Brcko
The High Representative, Carlos Westendorp, visited Brcko on 21 June.
Addressing the media at a press conference he said that he intended to
carry on the work of his predecessor, Mr. Carl Bildt - "but we are in a
new phase, with new emphasis, new solutions - and we are working on
them", he said, adding that he had put Brcko at the top of his itinerary
in BiH. "Brcko will signal to the rest of the world the extent to which
progress is being made in the implementation of the Dayton [Peace]
Accords". Mr. Westendorp added that the strong mandate which had emerged
from the Peace Implementation Council's Steering Board meeting in Sintra
had given new impetus to Dayton, which demanded new commitment. "It
insists that the authorities of BiH stop blaming each other, or the
international community, for the problems they encounter, and work
together constructively and in a spirit of reconciliation for their
common good (Ö) I add my voice to theirs - the responsibility for
reconciliation lies with the authorities and the people of BiH."
Emphasising that the issues of primary importance were the right to
return, freedom of movement and economic revitalisation, Mr. Westendorp
urged the authorities to move rapidly on these matters in the months
ahead. He reminded that the eyes of the world were on Brcko at this
time, and attention would be focused on how the authorities, local and
Entity, performed. "You are well aware that when the presiding
Arbitrator reviews the case of Brcko between now and March 1998,
non-compliance under Dayton will weigh heavily in his final decision",
cautioned Mr. Westendorp. "Help us to help you. Help the Supervisor,
[Ambassador Farrand] and me to help you. The success of Dayton depends
on the success of our efforts in Brcko. The Supervisor and I are
determined to be successful here. Brcko is Dayton."
Banja Luka
On 24 June the Human Rights Working Group (HRWG) based in Banja Luka -
comprising OHR, OSCE, UNHCR, UNMIBH (including representatives from UN
IPTF and UN Civil Affairs), SFOR and the representative of the UN High
Commissioner for Human Rights - issued a statement expressing their
"deep concern" over the failure of Republika Srpska police authorities
to enforce the law by reinstating 38 families to their legally owned
homes. Each of the families had sought and won decisions from the Banja
Luka courts which provided court orders for their legal reinstatements.
In April, the Ombudsperson for BiH, in a special report to the RS
Interior Minister and Minster of Justice, concluded that RS authorities
had clear responsibility to enforce the court orders and to begin
action in this regard by 7 June. The statement pointed out that the
fact that these people had not yet been reinstated raised "grave doubts
concerning prospects for a wider return to the city". The decision by
the Banja Luka police authorities to "disregard not only the provisions
of the Peace Agreement and the finding of the Ombudsperson's report,
but also the laws and the court of RS itself" was viewed by the HRWG as
"deplorable". The HRWG insisted that the inactivity of the RS police
"must not go unchallenged" and called upon the relevant authorities to
respect the court's decisions.
This issue was also raised on 24 June by Principal Deputy High
Representative, Ambassador Michael Steiner, at his farewell meeting with
RS President Biljana Plavsic in Banja Luka.
OSCE
On 25 June the Election Appeals Sub-Commission (EASC) issued a judgement
in the matter of alleged registration irregularities in the Zepce and
Capljina municipalities. In Zepce, municipal authorities under the
control of the Croatian Democratic Union (HDZ) attempted to manipulate
the voter registration process. False residency documents had been
issued to persons living outside the municipality. The EASC struck the
first two names from the HDZ list of Candidates for the municipality of
Zepce, and also removed from the Zepce Local Election Commission (LEC)
two individuals who were implicated in the attempts to impede the
registration process. In Capljina, municipal authorities under the
control of HDZ brought improper pressure to bear on the DPs to register
in Capljina, in particular by refusing to renew DP Cards. The EASC
struck the second and fourth names from the HDZ party list for Capljina
and instructed the municipal authorities to renew, within 14 days, the
DP cards of all persons affected by the manipulation. The authorities
were also instructed to issue a statement of apology (to be broadcast on
local radio and published in local print media) for their conduct, and
to advise all those concerned of the way in which they could renew their
cards. In the event of failure to comply with the decision, the EASC
would consider further penalties.
NATO
Secretary-General of NATO, Javier Solana visited BiH on 23 June. He
held meetings with the Joint Presidency, as well as the Co-Chairs and
Vice-Chair of the Council of Ministers. He also had his first meeting in
Sarajevo with the new High Representative, Mr. Carlos Westendorp. Mr.
Solana said that he had recently had the opportunity of talking with Mr.
Westendorp in Brussels and to review with him the evolution in the
theatre in Bosnia. "But today I wanted to come here and meet with the
new High Representative and tell him very clearly from Sarajevo that he
will have all the support that SFOR and NATO, in particular, can give
him", said Mr. Solana.
Mr. Solana also met with political leaders from opposition parties for
the first time, saying that he wanted to "underline, NATO's support for
democratic principles and political pluralism in Bosnia". Speaking at a
press conference before his departure, Mr. Solana outlined what he
considered to be some of the most urgent challenges to be faced in the
months ahead: the enforcement of IPTF's checkpoint policy; the opening
of additional airports in BiH; and the successful establishment of the
Standing Committee on Military Matters.
ICTY
The trial of Bosnian Croat General Tihomir Blaskic began on 24 June at
the International Criminal Tribunal for the Former Yugoslavia (ICTY) in
the Hague. The indictment includes charges on 20 counts that "Blaskic,
together with members of the HVO planned, instigated, ordered or
otherwise aided and abetted in the planning, preparation or execution",
of persecution, unlawful attacks on civilians and civilian objects,
willful killing and causing of serious injury, destruction and
plundering of property, inhumane treatment, the taking of hostages and
the use of human shields, as well as grave breaches of the Geneva
Conventions and violations of the laws or customs of war and crimes
against humanity. All of the charges relate to his role as Commander of
the HVO (Croatian Defence Council) forces from May 1992 - June 1994. The
indictment further charges that Blaskic's "subordinates were about to do
the same, or had done so and [that Blaskic had] failed to take the
necessary and reasonable measures to prevent such acts or to punish the
perpetrators thereof". The HVO has been blamed for a series of
particularly brutal massacres in the valleys of central Bosnia, noteably
in the village of Ahmici, and around the towns of Vitez and Zenica.
Blaskic, who denies all charges, is the first high ranking official to
stand trial and answer for crimes committed during the war in former
Yugoslavia. Blaskic surrendered to ICTY in April 1996, but not before
being awarded an honour by Croatian President Franjo Tudjman for his
role in the "Operation Storm" offensive of August 1995, a move which was
strongly criticised by the international community.
BiH Federation
On 20 June the fifth continuation of the 4th session of the Federation
House of Peoples (HoP) was held. The major item discussed was once again
the controversial Law on Split and New Municipalities. The previous HoP
session had been adjourned on 17 June in order to enable a working
group of Bosniak and Croat representatives to harmonise Article 10 on
changing inter-entity and inter-cantonal boundary lines and the
establishment of new municipalities. However an agreement was not
reached, and the Law proposal was not passed due to ongoing disagreement
on the borders of the Usora municipality: Bosniac representatives favour
the Law amendments proposed by Federation Prime Minister Bicakcic,
whilst the Croat delegates endorse Federation Government proposal.
Right to Return
On 19 June, UNHCR's Special Envoy, Carrol Faubert, announced a new
strategy for return of minorities called "Open Cities," a program that
provides rapid reconstruction aid to those cities that encourage, accept
and fully integrate minority returnees. UNHCR is co-operating with
other international organisations which have human rights monitors in
the field to ensure that "Open Cities" live up to their commitments to
uphold the human rights of minority returnees. Thus far, UNHCR has
received propositions from 25 municipalities prepared to participate.
Mostar
UN IPTF is looking into reports that the former west Mostar Police
Chief Marko Radic, who had been removed from his post for his
involvement the 10 February shooting incident, is now working as an
advisor to the Cantonal Interior Ministry. Several days ago Radic
reportedly made inflammatory statements in the local media that appeared
to be aimed at provoking ethnic tensions. International organisations,
including the OHR, OSCE and UN IPTF, condemned the statements and the
Mostar Media Experts Sub-commission is looking into the matter.
The OHR has requested an update from the Federation authorities on its
call for a new criminal investigation and correct legal proceedings
based on new indictments to be undertaken in the cases of three west
Mostar policemen who were photographed firing into a crowd of marchers
on 10 February. In March, the three policemen were given suspended
sentences in legal proceedings which the OHR characterised as having
"nothing in common with justice". The OHR also raised its concerns with
the Federation authorities about reports that the three policemen may
still be working on the force and that some may have even been promoted.
The OHR also asked for an update on actions that had been taken in the
cases of two other west Mostar policemen who were photographed with
their weapons drawn during the shooting incident and who were to be
suspended from duty, investigated and prosecuted.
Cooperation and Reconciliation
On 9 June, the leaders of the Islamic, Catholic, Orthodox and Jewish
communities: Dr. Mustafa Ceric, Reis-ul-Ulema (Supreme Head) of the
Islamic Community of BiH, Metropolit dabrobosanski Nikolaj of the
Serbian Orthodox Church (in the name of and with authorisation of His
Holiness Serbian Patriarch Pavle), Vinko Cardinal Puljic, Archbishop of
Sarajevo and President of the Bishop's Conference of BiH, and Mr. Jakob
Finci, President of the Jewish Community of BiH), issued a joint
statement of "shared moral commitment" in which they stated that their
faiths held many common values, including recognition of the fundamental
human rights of all people.
In their statement the four leaders condemned all acts of hatred based
on ethnicity or religious differences, including obstruction of the free
right of return, the destruction of houses and religious property, acts
of revenge, and the abuse of the media with the aim of spreading hatred.
They also called for freedom for all religious leaders to fulfil their
missions, for children to have the opportunity to be instructed in their
own faith, and for guarantees that no citizen would be compelled to
attend instruction in a faith other than their own. The signing ceremony
was attended by significant public figures from BiH, together with
senior members of the diplomatic corps and the international community,
including the Principal Deputy High Representative, Ambassador Michael
Steiner, representatives of OSCE, and of major international,
religiously-affiliated aid agencies.
Open Broadcast Network
The OBN Steering Committee met in Brussels on 26 June to follow through
on a number of decisions taken at the meeting of the Governing Council
on 12 June. These included the agreement in principle on the identity of
the new Chief Executive Officer for the network; the placing of the
large 10 kilowatt transmitter on Mount Vlasic, which is being discussed
with RTV BiH; and longer-term plans to further extend the network under
Stage 3 of the Business Plan.
Looking Ahead
- 27 June:
- 21st BiH Presidency Session
- 30 June:
- Council of Cooperation Between Croatia, BiH and the BiH
Federation meet in Split, Croatia
See our Chronology for a full list of activities
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OHR Bulletin nr. 52, issued 27 June 1997.
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