Brcko Arbitral Tribunal for Dispute Over the Inter-Entity Boundary in Brcko Area AWARD Rome, 14 February 1997 VII. AWARD 104. For the foregoing reasons the Tribunal adopts the following orders and provisions, which shall be final and binding upon all Parties to GFAP Annex 2, and with which all Parties shall comply and cooperate in full. Interim International Supervision of Dayton Implementation in the Brcko Area. Given ongoing failures to comply with the Dayton Accords in the RS area of the Brcko Opstina (particularly in terms of freedom of movement and the return of former Brcko residents to their Brcko homes), and the high levels of tension resulting therefrom, there is a clear need to establish a program for implementation of the Dayton Accords in the area, as hereinafter provided. Since it is essential that the international community undertake a role in devising a detailed implementation strategy, the Office of the High Representative ("OHR") is expected, as soon as feasible, to establish an office and staff in Brcko under the leadership of a Deputy High Representative for Brcko (hereinafter "the Brcko Supervisor" or "Supervisor") whose functions will be: (a) to supervise Dayton implementation throughout the Brcko area for a period of not less than one year, and (b) to strengthen local democratic institutions in the same area. Given the sensitivity of the issue, it is essential that implementation begin only after the Brcko Supervisor, in consultation with the High Representative, the PIC Steering Board, and SFOR, determines that key elements of an integrated implementation strategy are in place. The work of the Supervisor is expected to include the following elements: The Supervisor will have authority to promulgate binding regulations and orders in aid of the implementation program and local democratization. Such regulations and orders shall prevail as against any conflicting law. All relevant authorities, including courts and police personnel, shall obey and enforce all Supervisory regulations and orders. The parties shall take all actions required to cooperate fully with the Supervisor in the implementation of this provision and the measures hereinafter described. The Supervisor should consider assembling an Advisory Council and include within its membership representatives of OSCE, UNHCR, SFOR, IBRD, IMF, the Institutions of Bosnia and Herzegovina, local ethnic groups, and such other official and unofficial groups as the Supervisor may deem appropriate co provide advice and liaison in implementation of this Award. The Supervisor in close liaison with SFOR should coordinate with IPTF and such other international police mechanisms as may be established in the Brcko area to provide services with two principal objectives in mind: To ensure freedom of movement, through highway patrols and otherwise, for all vehicles and pedestrians on all significant roads, bridges and port facilities in the relevant-area from (and including) the Donja Mahala-Orasje Road (the so-called "Arizona Road") on the west to the eastern boundary of the Brcko Opstina. To ensure that the relevant authorities will undertake normal democratic policing functions and services for the protection of all citizens of Bosnia and Herzegovina within the relevant area. The Supervisor should establish, with advice and assistance from UNHCR, the Commission for Displaced Persons and Refugees, and other appropriate agencies, a program (which may incorporate previously established procedures) to govern the phased and orderly return of former residents of the relevant area to their homes of origin and for the restoration, construction, and allocation of housing as necessary to accommodate old and new residents. The Supervisor should (a) work with OSCE and other concerned international organizations to ensure that free and fair local elections are conducted under international supervision in the relevant area before the end of the international supervision; and (b) following such elections, issue such regulations and orders as may be appropriate to enhance democratic government and a multi-ethnic administration in the Town of Brcko. The parties will fully implement the results of the municipal elections according to the rules and regulations of the PEC. Given the significance of economic revitalization (particularly in terms of easing ethnic and other tensions in the area), a concerted effort at economic reconstruction is considered essential to the reduction of such tensions, The Supervisor therefore should assist the various international development agencies to develop and implement a targeted economic revitalization program for the Brcko area. Since revitalization of the Sava River port in Brcko is of paramount interest to both parties, all land now publicly or socially owned within the port area shall be placed under the exclusive control of the Bosnia and Herzegovina Transportation Corporation (an entity established under GFAP Annex 9, Article II(1)). Both parties are directed to use their best efforts -- and the Supervisor is invited and encouraged to guide such efforts -- to attract public and private investment (e.g., through leasing space) to revive the port through physical reconstruction, river dredging, and other appropriate measures. The Supervisor should, in the interests of fostering commerce and international economic development, assemble a group of international customs monitors to work with appropriate authorities of the parties (including Bosnia and Herzegovina) toward the establishment of efficient customs procedures and controls in the relevant area. In the interests of maximizing economic growth in the area, the State of Bosnia and Herzegovina, acting through its Foreign Ministry, is directed as soon as possible to open negotiations with the Republic of Croatia to arrive at mutually agreeable arrangements for customs procedures and border crossings between Bosnia and Herzegovina and Croatia in the Brcko area. Subsequent Proceedings Although the Tribunal anticipates, pursuant to Annex 2, Article V(5), that the parties will implement without delay the foregoing provisions, thereby lowering existing tensions in the area, nevertheless, the Tribunal has concluded that it would be inappropriate to make a judgment at this time as to what final allocation of political responsibilities as among the parties following the period of interim international supervision will best achieve implementation of the Dayton Accords and develop representative democratic local government in the relevant area. Absent further action by the Tribunal, the IEBL in the region will remain unchanged, and the Tribunal shall continue to monitor the situation in the area during the period of interim international supervision. Pursuant to its powers under Article 15 of the UNCITRAL Rules, the Tribunal will entertain from either party requests for further action affecting the Award with respect to the allocation of political responsibilities in the area, provided that any such requests must be received between 1 December 1997 and 15 January 1998. The Tribunal shall render any further decision by 15 March 1998, and any such further decision shall form a part of this Award. The Tribunal hereby gives notice (1) of its concern that matters in the relevant area may be so controlled as to prevent satisfactory compliance with the Dayton Accords and the development of representative democratic local government, and (2) that in the event of a request for modification of this Award, the Tribunal may at that point conclude, in light of the then-current situation, that to correct the situation the Town of Brcko must become a special district of Bosnia and Herzegovina in which district the laws of Bosnia and Herzegovina and those promulgated by local authorities will be exclusively applicable. To assist its inquiry into the foregoing matters the Tribunal requests, and expects to receive, the following: Regular reports from the Supervisor, submitted through the Office of the High Representative, appraising current conditions in the relevant area as they may bear on the need (or not) for further actions from the Tribunal, through the "special district" approach or otherwise; and Such written requests and submissions as the parties may choose to present on the same issues. VIII. AUTHENTICITY 105. The English language text of this Award shall be the authentic text for all purposes. The Tribunal shall issue at the earliest possible time authorized translations of the authentic text into the Bosnian and Serbian languages. Roberts B. Owen (signed) Presiding Arbitrator Cazim Sadikovic Arbitrator Vitomir Popovic Arbitrator Rome, 14 February 1997 Reasons for the Absence of Signatures Pursuant to Article 32(4) of the UNCITRAL Rules, the Tribunal notes that, for the reasons stated in Paragraph 27 of this Award, the party-appointed arbitrators have failed to sign the Award.

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