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Joint Message
Meeting of the Steering Board with the Presidency and the COM Chairs
Sarajevo, 6 November 1997
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- We continue to be concerned about the slow pace of implementation of
your obligations under the Peace Agreement. Legislation, essential for
the future of this country and the benefit of its citizens, is not being
adopted or implemented. The common institutions of Bosnia and
Herzegovina make no progress in getting established and more efficient
in dealing with the increasing workload. Also the entity governments do
not live up to their obligations regarding a number of compliance
issues.
- The High Representative has presented you last week with an 18 point
list of items. These issues should be resolved in time for the Peace
Implementation Council in Bonn in December. To mention just some of them
which are of particular importance:
- adoption of the Draft Laws on Citizenship and Passports,
- introduction of a uniform license plate system,
- adoption of property legislation in accordance with Annex 7,
- solution to the Usora question,
- establishment of the multi-ethnic administration in Brcko.
The High Representative has also raised as a matter of priority the need
to restructure the public media and has put forward concrete proposals
to this effect for media throughout Bosnia and Herzegovina. These items
are a minimum requirement to signal to the international community in
Bonn that the leadership of this country is taking its obligations
seriously and is willing to cooperate with the international community
in good faith.
- We are aware that you are not equally responsible for
non-implementation of some issues. Regarding citizenship and passports,
the Steering Board recommended to governments to deny visa only to Serb
members of the Presidency and the Council. Also in the future, we will
apply sanctioning and conditionality in a selective way which ensures
that only those bear the consequences who are not cooperative. Those in
the common institutions who constantly block progress should be
replaced.
- That applies also to the entity governments. One drastic example of
non-compliance is the property legislation which is still not in
accordance with Annex 7 and blocks effectively the return of refugees
and displaced persons. The Federation Government adopted a Law on the
Amendment of the Law on Housing Relations just two days ago, even though
the government was perfectly aware of the OHR assessment that some of
its provisions are in blatant contravention of the Peace Agreement. If
this issue is not resolved in time for Bonn, we will recommend
sanctioning to the PIC.
- Of particular concern is the threat of an upcoming economic crisis of
your country, due to inertia of the common institutions. With the
adoption of the QSP and its six economic laws in June of this year, the
basis was laid for a reasonable economic policy and a sound and stable
economic reconstruction. These laws have only been partially
implemented. Notably lacking are
- the common currency,
- Central Bank supervision over the payment system,
- establishment of an external debt servicing mechanism,
- application of the common customs tariff, and
- an orderly arrangement for the financing and execution of the state
budget.
Despite of IMF, WB and US Treasury efforts, progress has been
insufficient to enable the IMF to finalize the Letter of Intent through
which a stand-by arrangement would be requested. A crisis scenario is
beginning to unfold that may bring the economic reconstruction to a halt
by January 1998.
- You must now use the coming weeks to achieve substantial progress and
results. Time is running short.
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