III. COORDINATION OF CIVILIAN IMPLEMENTATION
Overall coordination
- I have continued extensive consultations with representatives of
Governments and organizations at different levels. On 11 November, I met
with the Secretary-General in New York and on the same day reported to
the members of the Security Council on the progress in the peace
implementation. I also had several meetings with the Secretary-General
of the North Atlantic Treaty Organization (NATO) and the
Chairman-in-Office of the Organization for Security and Cooperation in
Europe (OSCE).
- Regular discussions have been maintained with the principals in
Sarajevo in which the Special Representative of the Secretary-General,
the Commissioner of the International Police Task Force (IPTF), the
Special Envoy of the Office of the United Nations High Commissioner for
Refugees (UNHCR), the Commander of the Stabilization Force (SFOR) and
the OSCE Head of Mission participated. I shall continue these
consultations.
- The Economic Task Force, which meets under my chairmanship in
Saravejo, continues to be the key instrument for coordinating economic
reform policies and priorities of international reconstruction
assistance. A working group of the Economic Task Force has prepared an
anti-corruption strategy, which was endorsed by the Bonn Conference. The
Economic Task Force is being strengthened by the setting up of a
secretariat, which will allow improved coordination of donor activities.
- At the end of the reporting period the Reconstruction and Return
Task Force was restructured to achieve greater strategic clarity and
effectiveness. In the recommendations of the Reconstruction and Return
Task Force to the Bonn Conference emphasis is placed on minority
returns, both from aboard and within Bosnia and Herzegovina, and on
achieving the repatriation targets set by host countries for 1998. The
Governments of the United States of America and Germany joined the
Reconstruction and Return Task Force as full institutional members.
- The Bonn Conference supported the establishment of a Reconstruction
and Return Task Force secretariat, encouraged its members and donors to
provide reserves in their 1998 programmes, and urged all concerned
Governments to second appropriate staff to the regional offices of the
High Representative as well as other Reconstruction and Return Task
Force members, thereby reinforcing its capacity in the field. I
appointed an expert with extensive experience as my Deputy for
Reconstruction and Return Task Force matters.
- The Human Rights Task Force met in December and established a
concrete set of priorities and objectives for 1998 based on the
recommendations of the Human Rights Coordination Centre Steering Board
and the findings of the Human Rights Strategy Workshop held on 24
November 1997. The Human Rights Coordination Centre and its Steering
Board continue to work to address these priorities and to provide
effective coordination of human rights programmes and policies. My
office is committed to the process currently under way to reform the
legal framework applicable to non-governmental organizations to
establish a proper legal and security environment which supports the
development of civil society organizations.
- The Freedom of Movement Task Force has continued to be a valuable
forum for exploring various ways to promote freedom of movement for
people, goods and services.
Common institutions of Bosnia and Herzegovina
- The Presidency, the Council of Ministers and the Parliamentary
Assembly met regularly; however, the efficiency of their work continued
to be hampered by the lack of administrative structures and permanent
locations.
- The Presidency held only two working sessions, but met frequently
with high-ranking international visitors and delegations during the
reporting period. After having agreed on the distribution of
ambassadorial posts in August, only 28 out of 33 ambassadors have been
nominated and none of them have taken up their positions.
- The Council of Ministers on several occasions referred issues to the
Presidency on which it could not agree. This practice weakened the
political position of the Council, which should serve as the major
policy- and decision-making organ. The Council nonetheless stood out as
the most active of the common institutions, meeting on average once
weekly. During the period under review, the Council finalized and
forwarded to the Parliament of Bosnia and Herzegovina the draft laws on
travel documents and the Council of Ministers. it failed to reach
consensus on the draft law on citizenship. Because of this failure I
have taken action to bring this law into force as of 1 January 1998. The
priority is now on implementing these three laws. Progress on other
issues has been slow.
- My office will continue to work intensively with Council members and
staff to maintain what positive momentum exists for the Council to move
forward on meeting its constitutional obligations. This is particularly
necessary when one notes the failure of the Council to meet important
Sintra deadlines. Commitments undertaken in Bonn must be fully respected
by the Council in order to avoid negative consequences for the
implementation process.
- During the reporting period, both houses of the Parliamentary
Assembly showed a marked increase in activity by holding their fourth,
fifth and sixth sessions. For the first time, these sessions featured
political debates of a controversial, yet constructive, nature. After
numerous interventions by my office, the law on the Council of Ministers
and the law on travel documents were adopted on 16 December.
- A notable achievement during the reporting period is the efficient
work of the Constitutional Court. At its fifth session, in December
1997, the Court decided on a number of cases. I am, however, concerned
that no resources have been put at the Court's disposal; nor does the
1997 budget of Bosnia and Herzegovina provide for the necessary amount.
Consequently, the administrative structure cannot be established. The
authorities in Bosnia and Herzegovina must provide full funding for the
Constitutional Court.
- There have been monthly meetings of the Standing Committee for
Military Matters, with its functioning secretariat chaired, for the time
being, by my Military Adviser. Decisions are now beginning to be taken,
and regular reports by the Ministers of Defence and their respective
Chiefs of the Armies can be considered first steps on the road to more
confidence-building between the defence establishments in Bosnia and
Herzegovina. At its December session, the Committee instructed the
Ministries of Defence to formulate a plan for the implementation of the
1997 Ottawa Treaty. This concerns the banning of anti-personnel mines
for which they are responsible. It has also debated matters such as
appointment of military attachés, though a final decision still eludes
the members.
Essential legislation
- I am most concerned that the authorities of Bosnia and Herzegovina
have not made better progress in implementing key aspects of the
Constitution of Bosnia and Herzegovina and in passing important
legislation. Since the Council of Ministers failed to submit to the
Parliament the customs tariffs schedule before 24 December, I have
decided to enact this schedule as annex 1 to the law on the customs
policy effective on 10 January.
- To establish new multi-ethnic parties and to strengthen the existing
ones, the authorities of Bosnia and Herzegovina must rapidly adopt an
election law under which the forthcoming elections will be conducted. As
an integral part of the law, a Permanent Election Commission must be
established. My office, together with OSCE and the Council of Europe, is
elaborating a draft of such a law.
- Consistency and cooperation between the entities in the area of
legal reform is essential. I have called for the establishment of a
Commission for Inter-Entity Judicial Cooperation, to be operational no
later than 31 January. There is a need to harmonize Federation and
cantonal laws. I have taken steps to coordinate the various judicial and
legal reform programmes within a coherent and focused programme,
including the harmonization of the criminal codes and procedures of both
entities with the Constitution of Bosnia and Herzegovina, and have
requested the United Nations to set up a task force to focus on the
assessment and monitoring of the court systems in the entities, and on
the restructuring of appropriate institutions within the judicial
system.
Special parallel relationships and succession issues
- Existing agreements between the Federal Republic of Yugoslavia and
the Republika Srpska and between the Republic of Croatia and the
Republic of the Federation of Bosnia and Herzegovina establishing
special parallel relationships between the Entities of Bosnia and
Herzegovina and the neighbouring States, suffered from constitutional
shortcomings.
- Croatia and the Federation of Bosnia and Herzegovina have engaged
positively in a process to align the Agreement on the Establishment of
the Joint Cooperation Council with the Constitution of Bosnia and
Herzegovina. However, Croatia has presented a proposal for a special
parallel relationship with the Federation which is inconsistent with the
Peace Agreement. The Federal Republic of Yugoslavia has not yet aligned
the Agreement on Special Parallel Relationship with the Republika Srpska
with the Peace Agreement.
- The working groups composed of representatives of the interested
parties and my office, which are intended to bring the texts of the
agreements concerned into line with the Constitution of Bosnia and
Herzegovina, need to accomplish their tasks as soon as possible.
- A revised version of the draft Framework Memorandum on Succession
Issues was prepared by the Special Negotiator on succession issues. The
new text, the draft Framework Agreement on Succession Issues, was
discussed with all five States of the former Yugoslavia at the meeting
in Brussels from 9 to 11 December. Negotiations will continue on the
basis of that revised text and in the light of the Bonn conclusions.
Joint commissions
- Activities of the Provisional Election Commission (annex 3), chaired
by OSCE, are referred to in the elections sections of the present
report.
- The Human Rights Chamber, the Ombudsperson and the Commission for
Real Property Claims have not yet secured stable and adequate funding
for 1998. The commitment by the Government of Bosnia and Herzegovina to
contribute DM 200,000 to each institution from its 1997 budget has not
been met. This failure is all the more troubling given the need for the
contribution of the Government of Bosnia and Herzegovina to increase
incrementally, with a view to assuming full responsibility by the end of
the five-year transition period, as underscored at the Bonn Conference.
- Despite financial pressures, the work of all three institutions has
expanded considerably. As of 30 November, the Human Rights Ombudsperson
(both Sarajevo and Banja Luka offices) had opened 2,726 provisional
files, registered 1,338 cases and issued 53 final reports in individual
cases, as well as 11 special reports. Thirty-three cases were referred
by the Ombudsperson to the Human Rights Chamber. By the end of November,
the Human Rights Chamber had registered 75 cases and made 12 decisions
on admissibility of applications. Seven public hearings have been held
and final decisions on the merits have been rendered in five cases.
During the same period, the Commission for Real Property Claims received
over 50,000 claims for property. The Federation Ombudsmen have
established six regional offices in addition to their Sarajevo office.
They currently have more than 1,200 open cases.
- There is still a serious lack of cooperation on the part of the
authorities in ensuring that the decisions and recommendations of those
institutions are effectively implemented. Mechanisms to ensure respect
for the final and binding decisions of the Human Rights Chamber and the
Commission for Real Property Claims, as well as implementation of
recommendations by the Bosnia and Herzegovina Ombudsperson and the
Federation Ombudsmen should be strengthened. My office is actively
involved in monitoring the responses of authorities and coordinating
intervention in cases in which the authorities have failed to meet their
obligations. The drafting of implementing legislation for the
institutions is also under way. Coordination among the institutions has
improved and measurable progress has been made in terms of the
institutions' effectiveness in specific cases.
- At its sixth regular session, on 17 December, the Commission to
Preserve National Monuments (annex 8), extended the selection of
monuments and sites of cultural heritage. It also addressed the question
of legislation regarding the protection of heritage, and requested the
assistance of the United Nations Educational, Scientific and Cultural
Organization (UNESCO) in gathering legislation from other countries and
giving technical advice on the appropriate draft law.
- The Bonn Conference noted that, despite the efforts of the
Commission on Public Corporations (annex 9), the establishment of the
Transportation Corporation in Bosnia and Herzegovina had remained a dead
paper. It called upon the authorities of Bosnia and Herzegovina to
implement the recommendation on railway traffic by 31 March, and urged
the entities to establish their joint corporations. I believe that a
framework agreement on the organization of the electric sector in the
railway will be reached soon. My office has substantially increased its
involvement in this field and is supporting the Commission so that
concrete results may finally be achieved.
Elections
- Since my last report, the voters in the Republika Srpska cast
ballots in a calm and secure environment in the extraordinary elections
for the Republika Srpska National Assembly on 22 and 23 November, which
were conducted in accordance with the rules and regulations of the
Provisional Election Commission and with full OSCE supervision. The
Provisional Election Commission certified the election results on 12
December 1997 and reported a voter turnout of 79 per cent.
- The elections did not produce a clear majority for any party or
party coalition. We interpret this as a sign of increasing political
pluralism and democratization of the political landscape in the
Republika Srpska and Bosnia and Herzegovina as a whole. I believe that
the election results demonstrate that the people of the Republika Srpska
desire change in their political leadership. The first meeting of the
National Assembly took place on 27 December 1997. Although it failed to
elect a speaker, consultations are ongoing. I expect the formation of a
new Republika Srpska Government in January 1998.
- I am, however, concerned with the pace of implementation of the
municipal election results. By 10 October, the Permanent Election
Commission had technically certified all 136 municipalities, and nearly
all municipalities had held their first session. Yet by 31 December,
only 10 municipalities had achieved final certification by the Permanent
Election Commission. The Bonn Conference agreed that municipalities in
which the requirements had not been fulfilled would be submitted to the
OSCE Head of Mission and my office for final and binding arbitration
before 28 February 1998.
- The establishment of a Permanent Election Commission is a priority
task for my office. The Bonn Conference endorsed my view that until a
Permanent Election Commission has been established by an act of
Parliament and an election law has been adopted and has entered into
effect, elections should be conducted under OSCE supervision, and the
authority of the Provisional Election Commission and its rules and
regulations.
Federation issues
- My office continued to focus its attention on Federation issues. Two
high-level meetings, on 14 October and 2 December, on the Central Bosnia
Canton and two Federation forum meetings, on 30 October and 12 November,
achieved considerable results in the areas of police restructuring and
refugee return. The political and security situation in the Federation
continued to improve overall, despite some security incidents with
possible terrorist background. The successful establishment of a joint
police force and recent progress in reforming the judicial systems in
the two cantons with a special regime have contributed to this improved
atmosphere.
- Upon the failure of the competent Federation authorities to find a
solution to the long-standing dispute on the boundaries of the Usora
municipality, my office, with the full support of the Federation
leadership, submitted its final and binding arbitration on 19 December.
Now that this outstanding issue has been resolved, I anticipate that the
law on split and new municipalities will be adopted by the Federation
Assembly in January 1998.
- However, it is clear that the implementation process in the
Federation needs further international attention and assistance, in
particular regarding reconstruction and return of refugees and displaced
persons. There are still signs of old structures being kept alive
despite the fact that they should have been disbanded as the structures
of the Federation and the new common institutions of Bosnia and
Herzegovina are established and functioning. This should not be
tolerated any longer.
Republika Srpska issues
- The political crisis in the Republika Srpska continues. The National
Assembly, which was dissolved by the President of Republika Srpska in
July 1997, has continued to meet and pass laws that cannot be recognized
as legally valid. Furthermore, the caretaker Government continues to
take decisions inconsistent with its competency. For example, on 10
November it began to implement the law on privatization, despite my
insistence that any decision should wait until after the 22-23 November
Assembly elections. This crisis can only be resolved by the agreement of
Republika Srpska leaders to overcome their internal differences and turn
their attention instead to addressing numerous problems facing the
entity.
- Owing to persistent pressure by my office, the first session of the
National Assembly met on 27 December within the time-frame set out in
the Constitution of the Republika Srpska. Deputies representing
Federation-based parties have been installed in office with full voting
rights and without taking a sectarian oath of office. At that session,
the President of the Republika Srpska proposed a non-party candidate for
Prime Minister, a vote on which is expected in the near future. My
office handed over to the deputies a list of priority tasks for the
Republika Srpska National Assembly and new Government. As noted earlier,
the Serb Democratic Party (SDS) no longer holds a majority in the
Assembly. However, it remains the party with the greatest number of
seats, and it has entered into a coalition with the Serb Radical Party
(SRS). The SDS and the SRS maintain that their party members should hold
the top positions in the Assembly and that the Prime Minister should
come from the SDS.
- My office continues to provide strong support for free and
pluralistic media throughout the Republika Srpska with the aim of
ensuring that Serb Radio and Television (SRT) is reformed through the
reunification of the network in the Republika Srpska, improved
coordination between the Pale and Banja Luka studios and a monitoring
mechanism that meets internationally recognized standards of journalism.
- The process of restructuring the Republika Srpska police has moved
forward, in particular in Banja Luka and Brko, where IPTF has begun
certification of prospective police officers. However, the overall
security environment in Republika Srpska remains tense at times. On 13
November, a terrorist attack took place against the Serb National Union
regional office in Bijeljina.
- Arrest warrants by the International Tribunal for the Former
Yugoslavia for persons under Republika Srpska jurisdiction have not been
complied with. Until these persons are brought to The Hague, the
prerequisites for reconciliation and the rule of law in the Republika
Srpska remain seriously impaired. In this regard, the continuing
influence of Radovan Karadzic on the political life of Republika Srpska
is unacceptable. My office remains committed to applying economic
leverage and other measures to ensure full cooperation of the Republika
Srpska authorities with the Tribunal.
- The economic situation in the Republika Srpska remains grim, with
high levels of unemployment and low wages and pensions. There was no
sizable foreign investment in the Republika Srpska in 1997.
International aid is limited and linked to cooperation with the peace
process. On 18 November, the Banja Luka airport was reopened for
commercial flights.
Media
- During the reporting period, the media situation in Bosnia and
Herzegovina continued to be a high priority for my office.
- My office has now nominated an international supervisor of SRT who
will oversee the restructuring of the SRT network in line with
international principles. Accepting the restructuring of SRT in
principle, the Pale leadership has to date failed to ensure the return
of the Veliki Zep transmitter equipment or adopt restructuring
requirements. Failure to address these issues positively will prohibit
the return of Pale studio programming to the SRT network.
- My office has developed a strategy to deal with the monolithic
control of the media throughout Bosnia and Herzegovina and to create the
necessary conditions for the electorate to make informed judgements free
from political bias before the elections in September. This plan was
presented to the Bonn Conference, which reiterated its firm commitment
to establish free and pluralistic media throughout the country and
supported our media strategy.
- The strategy of the Office of the High Representative envisages
three main pillars of approach. The first is editorial intervention,
media restructuring and regulation. This we have already embarked upon
with SRT, with the aim of restructuring the whole media landscape in
Bosnia and Herzegovina in accordance with internationally recognized
democratic standards. We intend to establish an intermediate media
standards licensing commission, which will regulate the media in the
interim period before the enactment of the laws on the media and
telecommunications. The second foresees the encouragement of independent
media and the provision of alternative sources of information. The Open
Broadcast Network (OBN) still remains the main project in this arena,
and our commitment to the process is now beginning to bear fruit; OBN
has now firmly established itself as a serious contender in the Bosnian
media scene. Another key issue is in encouraging the expansion of
independent print, in particular, the distribution of independent
newspapers to those areas of the country that they do not currently
reach. The third pillar of the strategy provides for an internationally
sponsored public information campaign, which is scheduled to last six
months and will combine targeted short (30-60 second) commercial public
information slots together with four 10-15 minute programming slots per
week.
Return of refugees and displaced persons
- My office has continued its interventions in support of return to
the Central Bosnian Canton. The third and fourth Federation meetings, on
16 October and 2 December, attended by the highest officials from the
Federation and the Canton Government, have advanced the establishment of
the joint police in the Canton, as well as the identification of
priority return villages. The Central Bosnia Return Programme was
presented by the Canton to the Governments and donor organizations on 5
December at a meeting chaired by the Office of the High Representative.
My staff has worked with UNHCR as well to extend the Central Bosnia
return initiative to the Neretva-Herzegovina Canton.
- Under the auspices of my Deputy, the Brko Supervisor, returns of
original inhabitants to Brko continued throughout the period under
review. The establishment of a multi-ethnic administration, police and
judiciary at the end of the year would facilitate further returns.
- In the north-western region of Bosnia and Herzegovina, my Deputy was
intensely engaged in spearheading minority returns and
cross-inter-entity boundary line contacts between displaced persons and
their home communities. A concerted effort by key members of the
Reconstruction and Return Task Force resulted in the successful return
of several hundred Serb displaced persons to Drvar. My office also
helped to arrange the first official visits of Serb refugees in Bosnia
and Herzegovina to their homes in the Pakrac area in Croatia.
Freedom of movement
- Numerous visits across the IEBL, both organized and spontaneous, are
ample evidence of increased freedom of movement. At a trade fair in
Banja Luka in November, approximately 60 Federation companies
participated and more than 100 vehicles with Sarajevo licence plates
moved freely through the city. My office, in cooperation with other
agencies, developed a plan for a uniform licence plate system in Bosnia
and Herzegovina, to be implemented after 31 January.
- On 2 December, the first commercial bus line started to run between
Sarajevo and Banja Luka through cooperation between one Federation- and
one Republika Srpska-based bus company. On 17 December, the Republika
Srpska Minister of Traffic and Communication decided to stop the line
and had one bus confiscated. I am following this matter closely and have
decided to take action in order to ensure the unhindered running of
buses.
- On 16 October, the Joint Border Commission established between
Bosnia and Herzegovina and Croatia met for the first time in Sarajevo
under the chairmanship of my office, followed by a meeting in Zagreb on
17 December. Considerable progress has been achieved at those meetings
to allow the free movement of people and goods across the northern
border between Croatia and the Republika Srpska territory of Bosnia and
Herzegovina.
- Regarding police, additional Federation cantons have finished their
restructuring programmes, in particular the Herzegovina Neretva and the
Central Bosnia cantons. After long negotiations and planning, the
Federal Police Academy started to function on 15 December. Police
restructuring in the Republika Srpska started in Banja Luka, followed at
the end of the year by Brko.
Missing persons, mass graves
- The international community has continued to work with the
authorities of Bosnia and Herzegovina to determine the fate of the
missing. The total number is still uncertain but the International
Committee of the Red Cross (ICRC) has received tracing requests for more
than 19,500 persons. The Working Group on Missing Persons, chaired by
ICRC, has made it possible for representatives of family associations to
have direct contact with the responsible authorities and relevant
members of the international community.
- Cross-IEBL exhumations were blocked during most of 1997 owing to
disagreement between the parties and the political situation in the
Republika Srpska. In October, my office introduced a new strategy asking
the parties to name one site each that they wanted to exhume without
opening up negotiations regarding number of bodies, number of working
days or size of the sites. This resulted in three weeks of exhumations
in two locations. The Bosniak team collected surface remains in the
Kravice area in the Republika Srpska, and the Republika Srpska team
exhumed two graves and collected surface remains in Ozren in the
Federation. The total number of collected bodies during the reporting
period is 97. The Croat side did not participate.
- I consider that unresolved issues relating to the missing are a
serious impediment to reconciliation. Therefore, my office has already
started the planning for 1998, together with the parties, in order to
speed up the process.
Human rights
- Despite gradual improvement in freedom of movement, fewer arbitrary
arrests and a more responsible attitude on the part of authorities,
systemic human rights violations continue to occur in both entities. Few
steps have been taken by Federation or Republika Srpska authorities to
ensure that the rights and freedoms set forth in the European Convention
on Human Rights are effectively protected. Harassment, violence and
destruction of property on the basis of ethnicity remain substantial
problems, and discrimination on ethnic or political grounds is endemic,
particularly in the Republika Srpska areas. The role of police in
addressing these violations itself continues to present significant
concerns, particularly as police response is influenced by political and
ethnic criteria, and reports of abuse in police custody remain frequent.
In these respects, the situation during the reporting period remained
fundamentally unchanged.
- Property and housing laws which block the return of hundreds of
thousands are still in force, making full implementation of annex 7 of
the Peace Agreement impossible. Both entities must take urgent steps to
amend these laws. As reiterated at the Bonn Conference, the Federation
will be held to its commitment, made at the Federation Forum on 12
November 1997, to adopt the three draft laws submitted by my office. The
Republika Srpska has been urgently asked to amend its property and
housing legislation within 60 days of the new Government taking office.
Should they fail to do so, I will recommend additional measures as
sanctions. Establishing the conditions for safe return, including
functioning human rights protection mechanisms, is also an essential
component of the implementation of annex 7, as are efforts to address
current discrimination and difficulties associated with both civil
registration and acquiring access to personal documents throughout
Bosnia and Herzegovina.
- At the same time, the process of rebuilding a multi-ethnic Bosnia
and Herzegovina is encumbered by several basic problems. The
Constitutions of the entities themselves embody insupportable
distinctions between ethnic groups in their designation of "constituent
peoples". These provisions should be amended to accord equal status to
Bosniaks, Croats and Serbs, along with members of other groups, in order
to foster multi-ethnicity and ensure that the fundamental principle of
equal rights for all people is fully respected. In addition, the current
education policy and programmes of both entities do not promote
understanding and reconciliation. It is essential that the responsible
authorities move expeditiously to develop an education programme
consistent with those principles and with the right of parents to choose
the nature of the education their children receive.
Cooperation with the ICTY and strengthening of the rule of law
- The Human Rights Task Force has emphasized the urgent need for
criminal justice reform in both entities. In particular, criminal law
and procedure codes must be harmonized with the European Convention on
Human Rights. As noted in Bonn, the Federation should implement the
recommendations of the expert team regarding the criminal procedure code
by 31 January. While the Republika Srpska has requested that the Council
of Europe assist in the harmonization of its criminal code and criminal
procedure code with European standards, the expert team set up in the
Republika Srpska should also include representatives of my office, the
United Nations Mission in Bosnia and Herzegovina (UNMIBH) and other
relevant institutions. These steps are essential to address ongoing
human rights abuses, including violations of fair trial standards in
such highly publicized cases as the prosecution of I. Djedovic in
Sarajevo and the conviction of three Bosniak men in Zvornik on murder
charges.
- The independence and effectiveness of the judiciary remains
compromised by flaws in the judicial appointment process and the absence
of a mechanism for inter-entity cooperation in this field. The
appointment process must be reformed so that selection is based on merit
rather than political or ethnic criteria, and training programmes for
legal professionals, including the initiative to establish a judicial
training institute for Bosnia and Herzegovina, should be supported.
- Rule of law and reconciliation in Bosnia and Herzegovina will remain
seriously impaired until competent authorities fulfil their legal
obligation to hand over indicted war criminals to the ICTY. Two
additional arrests of persons indicted for war crimes occurred in
December. Following those arrests, two persons subject to publicly
disclosed indictments (both Croats) remain at large in the Federation,
while only three of 54 Serbs publicly indicted by the Tribunal are in
custody.
- No arrests in violation of the Rome Agreement (rules of the road)
occurred during the past three months, but activities which are
incompatible with the rules continue. In both entities, reliance by
authorities on local "war crimes lists", including publication and
broadcasting of these lists, poses serious obstacles to the return of
refugees and displaced persons, the ability of elected councillors to
assume office and freedom of movement.
Economic reform and reconstruction
- Despite the shortcomings of the authorities of Bosnia and
Herzegovina in addressing economic management, the international
reconstruction aid has continued to fuel economy recovery. An estimated
total of US$ 1.5 billion has been implemented so far in the country,
approximately 95 per cent being in the Federation, including Sarajevo.
The proportion of financial help for the Republika Srpska is now
increasing. In the fourth quarter of 1997, eight grant agreements were
signed with the authorities in Bosnia and Herzegovina. The World Bank
approved credits in the total amount of $27 million for the financing of
two projects with a total cost of $123 million. This includes the
reconstruction assistance project ($82 million), which is dedicated to
the Republika Srpska. During the reporting period, some 150 new
contracts were signed. In the same period, the European Commission has
contracted grants for a total amount of $125 million.
- The Bonn Conference confirmed my priorities regarding economic
management and transition. To speed up the process, the Conference
issued a schedule for key steps regarding the common currency, the State
budget and its financing from the entity budgets, and entity-level
legislation on pension reform and basic commercial legislation. I am
confident that the various deadlines in the first quarter of 1998 will
be met. The crucial economic policy framework for a growing and unified
economy will then be in place. Under such conditions, the much-needed
support through an International Monetary Fund (IMF) standby agreement
and two proposed World Bank adjustment credits can go ahead. In
addition, the Paris Club debt resolution can follow the successful
London Club debt agreement, which was consummated in December.
- The Bonn Conference expressed deep concern about corruption and
diversion of funds and endorsed my anti-fraud strategy based on the
following elements:
- improvement of prosecution capacities by creating an anti-fraud unit to assist the authorities in Bosnia and Herzegovina to identify illegal activities,
- better control of international assistance,
- increased transparency in public finance through an extended mandate of the European Commission Customs and Fiscal Assistance Office and establishment of external auditing institutions and
- dissolution on non-constitutional bodies.
- Together with the Commission on Public Corporations, my office has
held negotiations to establish a Railway Corporation in Bosnia and
Herzegovina. A framework agreement is to be signed in January by which
the parties would resume traffic immediately, and final negotiations on
the organization of the sector is to be completed by March. Preliminary
discussions have also started on postal services.
- Over 600 households have returned in the Brko area. Return
applications of an additional 2,270 households (representing more than
9,000 persons) have been approved. Though the arbitral award stated the
significance of economic revitalization of the Brko area, only slow
progress has been made by international donors and development agencies
in this regard. Following a donors' conference held in Brko on 4 and 5
November, several donors demonstrated interest in funding specific
projects.
Civil aviation
- A lack of response from the international community in funding of
the Department of Civil Aviation as a joint institution has slowed
further progress. This will hinder economic recovery in the aviation
sector. International efforts centred on the physical development of
Sarajevo airfield, minor passenger terminal improvements in Mostar and
limited Sarajevo terminal air traffic systems, but have largely ignored
safety and support activities that are central to operating the aviation
system to International Civil Aviation Organization (ICAO) standards. In
addition, the Department's field staff requirement of approximately 160
persons has yet to be implemented.
- Significant inroads have been made in airfield planning, and in
securing a bilateral charging agreement for overflight fees throughout
Eurocontrol. The organizational framework for the Department of Civil
Aviation has been developed, and nominations from the three parties to
the integrated staff have started work on air procedures, air
navigation, infrastructure and policy development. An international
secretariat of the Department has been established and funded to give
the technical expertise to continue system development and provide
mediation.
Mine clearance
- The Bonn Conference expected the new civilian demining structure to
be established by 1 January 1998 at the Bosnia and Herzegovina level and
by 31 March 1998 at the entity level. The first deadline has been met
owing to the efforts of the Board of Donors, co-chaired by the United
Nations/Office of the High Representative working in consultation with
the Bosnia and Herzegovina Commission for Demining.
- A memorandum of understanding and agreed principles on the new
structure were signed by the Council of Minsters of Bosnia and
Herzegovina on 20 October. This structure aims to ensure efficiency and
transparency so that the donor confidence is maintained. It is also
designed to welcome donors who wish to follow their own projects outside
of the structure, while leaving them with the option to join at a later
date. The Board of Donors will remain an advisory body to the Bosnia and
Herzegovina Demining Commission, which oversees the whole structure on
behalf of the Council of Ministers.
- The agreed principles have been applied to various decisions,
agreements and decrees which formally establish the organizations within
the new structure. A consensus on several important documents was
reached in December, and the United Nations, the Office of the High
Representative and the Bosnia and Herzegovina Commission for Demining
were able to co-present them to the Council of Ministers and respective
Governments. The documents are as follows:
- a decision on the establishment of the Bosnia and Herzegovina Commission for Demining,
- a decision on the establishment of the Bosnia and Herzegovina Mine Action Centre,
- an agreement between the Federation of Bosnia and Herzegovina and the Republika Srpska on cooperation in the field of mine action.
- The next agreements to be finalized are those establishing the
entity mine action centres. These are the decree on the establishment of
the Republika Srpska mine action centre and the decree on the
establishment of the Federation of Bosnia and Herzegovina mine action
centre. I am reasonably confident that the Bonn deadline of 31 March for
these bodies to be established can be met.
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