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  <b>
  
  <p align="justify">Honouring of obligations and commitments by Bosnia and 
  Herzegovina</p>
  <p align="justify">Doc. 10200</b><br>
  4 June 2004</p>
  
  <b>
  
  <p align="justify">Report<br>
  </b>
  
  <font SIZE="2" face="Verdana">
  Committee on the Honouring of Obligations and Commitments by member States of 
  the Council of Europe (Monitoring Committee)<br>
  Co-rapporteurs:&nbsp; Mrs Naira Shakhtakhtinskaya, Azerbaijan, European 
  Democratic Group and <br>
  Mr Laszlo Surjan, Hungary, European People&#146;s Party</p>
  </font>
  </font>
  </span>
  <font SIZE="2">
<hr size="1">
  
  <font SIZE="2" face="Verdana">
  <p align="justify"><i>Summary</i></p>
  <p align="justify">The report welcomes the progress towards a functioning 
  pluralist democracy and a state governed by the rule of law and respect for 
  human rights, which was made by the authorities of Bosnia and Herzegovina in 
  its first two years of membership in the Council of Europe. The Parliamentary 
  Assembly notes that there have been improvements in the functioning of state 
  level institutions but that the process of transferring a number of 
  competencies from Entity to State level to create a modern functional state 
  remains slow and painful.</p>
  <p align="justify">Bosnia and Herzegovina fulfilled almost all major formal 
  commitments due within a year of the accession, including the accession to key 
  human rights treaties, the implementation of constitutional amendments and 
  adoption of several laws in the field of justice and education. This must now 
  be followedup with a concrete implementation of the adopted legislation and 
  compliance with Council of Europe standards, notably in the field of education. 
  Co-operation with the International Criminal Tribunal for the former 
  Yugoslavia (ICTY) also needs to be improved.</p>
  <p align="justify">The Assembly regrets that much of the progress achieved in 
  the last two years was a result of the constant pressure by the international 
  community, and in particular the High Representative. It recalls that a key 
  objective of Bosnia and Herzegovina&#146;s membership in the Council of Europe was 
  to promote domestic ownership and responsibility for reform. Before the 
  responsibilities for running the state are completely transferred to the 
  domestic authorities, the country&#146;s leadership will however have to 
  demonstrate a higher degree of political maturity and improve mutual readiness 
  for dialogue and consensus.</p>
  <p align="justify">The monitoring procedure should continue until the Bosnian 
  authorities achieve further progress in the compliance with general 
  obligations and specific commitments resulting from Council of Europe 
  membership.</p>
  <p align="justify"><b><span lang="EN-GB">I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Draft resolution <i>[<a href="../../AdoptedText/TA04/ERES1383.htm">Link to the 
  adopted text</a>]</i></span></b></p>
  <p align="justify"><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Bosnia and Herzegovina joined the Council of Europe on 24 April 2002. On its 
  accession, it accepted the obligations incumbent on all member states under 
  Article 3 of the Statute: compliance with the principles of pluralist 
  democracy and the rule of law and respect of human rights and fundamental 
  freedoms.&nbsp; At the same time, it entered into a number of specific 
  commitments which it agreed to honour within set deadlines and which are 
  listed in <a href="../../AdoptedText/TA02/EOPI234.htm">Opinion No. 234 (2002)</a> 
  on Bosnia and Herzegovina&#146;s application for membership of the Council of 
  Europe.</span></p>
  <p align="justify"><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Parliamentary Assembly welcomes the slow but steady progress towards a 
  functioning pluralist democracy and a state governed by the rule of law and 
  respect for human rights which has been made by the Bosnian authorities in the 
  first two years of membership of the Council of Europe. </span></p>
  <p align="justify"><span lang="EN-GB">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  For the first time since the end of the war, the October 2002 general 
  elections were administered by the domestic authorities themselves and not by 
  the OSCE. Given the country&#146;s unique constitutional framework, they were 
  largely in line with international standards for democratic elections. The 
  Assembly regrets, however, the lack of progress in the review of the electoral 
  legislation which should, in line with Council of Europe principles, end the 
  constitutional discrimination of all those not belonging to one of the three 
  constituent people. The Assembly welcomes the recent constitutional changes 
  allowing for direct election of municipal mayors and expects that the local 
  elections scheduled for October 2004 will be free and fair.&nbsp; </span></p>
  <p align="justify"><span lang="EN-GB">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Bosnia and Herzegovina fulfilled almost all major formal commitments due 
  within a year of accession, including the accession to key human rights 
  treaties, the implementation of constitutional amendments and the adoption of 
  several laws in the field of justice and education. This must now be followed 
  up with a concrete implementation of the adopted legislation and compliance 
  with Council of Europe standards. </span></p>
  <p align="justify"><span lang="EN-GB">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  As regards the commitments due within two years of the accession, the Assembly 
  calls for speedy ratification of a number of conventions which were signed on 
  30 April 2004 and 11 May 2004 but have not yet been ratified. It also urges 
  Bosnia and Herzegovina to sign and ratify without further delay the European 
  Charter for regional or minority languages. </span></p>
  <p align="justify"><span lang="EN-GB">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In the past eighteen months there has been a surge in legislative activity 
  which produced new laws in key areas of reform and notably the adoption of a 
  new criminal code and a code of criminal procedure. In addition, a new state 
  level High Judicial and Prosecutorial Council will soon be set up, the process 
  of reappointment of judges and prosecutors is about to be completed and the 
  court restructuring is underway. In the field of education, state level 
  framework laws on primary, secondary and higher education were prepared. A 
  major defence reform was carried out, laws on merging the Entities&#146; 
  intelligence and security agencies or customs administrations were adopted and 
  the Chamber within the state court dealing with serious economic crimes, 
  corruption and trafficking has started to operate. Reform of the public 
  broadcasting services is also underway.</span></p>
  <p align="justify"><span lang="EN-GB">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Although Bosnia and Herzegovina may now have a number of laws that meet 
  European standards, the Assembly is concerned by the undue delay in setting up 
  the implementing bodies, caused also by the shortage of domestic professionals 
  capable of administering the reforms.</span></p>
  <p align="justify"><span lang="EN-GB">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The functioning of state level institutions has improved. The chairmanship of 
  the Council of Ministers no longer rotates and new State level ministries, 
  including a Ministry of Defence in December 2003, have been created. The 
  Assembly stresses that the slow and undoubtedly painful process of 
  transferring competencies from entity to state level to create a modern and 
  functional state will in the long term serve the interests of all citizens of 
  Bosnia and Herzegovina.</span></p>
  <p align="justify"><span lang="EN-GB">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The last period has also seen an unprecedented attempt at inter-party dialogue 
  and co-operation between the constituent people which &#150; in spite of being 
  fragile - demonstrates that there is an alternative to perpetual confrontation 
  and obstructionism which has so far dominated Bosnian politics. However, the 
  country&#146;s capacity to reform is impeded by the lack of human and other 
  resources at state level and the overstaffing at entity and cantonal level. 
  Furthermore, there is a lack of proper training and merit-based recruitment. 
  The co-operation and co-ordination between the different - and far too 
  numerous - levels of authority is generally too low. </span></p>
  <p align="justify"><span lang="EN-GB">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly regrets that much of the progress achieved in the last two years 
  was a result of the constant pressure by the international community, and in 
  particular the High Representative. It recalls that a key objective of Bosnia 
  and Herzegovina&#146;s membership of the Council of Europe was to promote domestic 
  ownership and responsibility for reform. The Assembly notes that during the 
  last year the number of laws imposed and the number of domestic officials 
  dismissed by the High Representative has decreased. The Assembly urges the 
  High Representative to continue with this trend and in particular to stop the 
  practice of removing officials, including judges and elected representatives, 
  from office. The Parliamentary Assembly expects the Council of Europe to stand 
  ready to assist BH in all its efforts to build a peaceful, democratic, viable 
  and sustainable state but before the responsibilities for running the state 
  are completely transferred to the domestic authorities, the country&#146;s 
  leadership will have to demonstrate a higher degree of political maturity.</span></p>
  <p align="justify"><span lang="EN-GB">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly stresses that the functioning of the complex political and 
  institutional system set up by the Dayton agreements requires a higher degree 
  of mutual readiness for dialogue and consensus and, most importantly, a sense 
  of common interest. While it appears that the time is not yet ripe for 
  changing the existing constitutional set up &#150; widely acknowledged as 
  excessively complicated - the Assembly nevertheless calls on the domestic 
  authorities and the political forces in the country to engage in a 
  constructive dialogue on this issue.</span></p>
  <p align="justify"><span lang="EN-GB">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly therefore calls on all political parties in the country to go 
  beyond the sectarian political divides and to put the interests of citizens 
  first. It deeply regrets the obstruction of certain cantons in the Federation 
  which, more than a year after the passing of the Framework law on primary and 
  secondary education, have so far refused to comply with the requirement of at 
  least administrative reunification of schools. The Assembly also deeply 
  regrets the Bosnian Croat parties&#146; opposition to the adoption of a state level 
  legislation on higher education. The Assembly also calls on the domestic 
  authorities to actively co-operate in order to achieve complete reunification 
  of Mostar, following imposition of its new Statute by the High Representative.</span></p>
  <p align="justify"><span lang="EN-GB">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  As regards refugees and internally displaced persons, the Assembly notes with 
  satisfaction that, almost nine years after the war, around one million people 
  have returned to their pre-war homes or elsewhere in Bosnia and Herzegovina 
  and that implementation of property laws reached 93% throughout the country. 
  It calls on the domestic authorities and international donors to pursue their 
  efforts in order to achieve sustainable return. It hopes that Bosnia and 
  Herzegovina&#146;s accession to the Council of Europe Development Bank will further 
  enhance this effort. The Assembly is, however, preoccupied by the fact that 
  there are still one million persons that have not returned and are unlikely to 
  do so now.</span></p>
  <p align="justify"><span lang="EN-GB">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly regrets that the fate of thousands of people who disappeared 
  during the war is still unknown. It calls on the authorities to do their 
  utmost to alleviate the families&#146; grief and to co-operate fully with the 
  Srebrenica Commission that was set up in December 2003. </span></p>
  <p align="justify"><span lang="EN-GB">15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly urges the authorities, especially in the Republika Srpska, to 
  fully co-operate with the International Criminal Tribunal for the former 
  Yugoslavia (ICTY) and to take concrete action to arrest and transfer to The 
  Hague both MM. Karadzic and Mladic, as well as other persons indicted and not 
  yet in the custody of the ICTY. The support apparently enjoyed by these war 
  criminals in certain parts of the country is an insult to the memory of the 
  victims and a major obstacle to reconciliation. </span></p>
  <p align="justify"><span lang="EN-GB">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly also urges the domestic authorities to continue to develop 
  respect for and protection of individual human rights throughout the country, 
  to provide the necessary support and finances to state level institutions such 
  as the Constitutional Court and the state court, to ensure full compliance 
  with all judicial decisions and to speed up the merger of the three existing 
  Ombudsman institutions into one single state level institution with branch 
  offices in the Entities and in Brcko district.</span></p>
  <p align="justify"><span lang="EN-GB">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly decides to continue the monitoring procedure until the 
  authorities of Bosnia and Herzegovina achieve further progress in the 
  compliance with general obligations and specific commitments resulting from 
  Council of Europe membership. </span></p>
  <p align="justify"><b><span lang="EN-GB">II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Draft recommendation</span></b><font SIZE="2" face="Verdana"><b><span lang="EN-GB">
  <i>[<a href="../../AdoptedText/TA04/EREC1664.htm">Link to the adopted text</a>]</i></span></b></font></p>
  <p align="justify"><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Referring to Resolution &#133; (2004) on honouring of obligations and commitments 
  by Bosnia and Herzegovina, the Assembly considers that Bosnia and Herzegovina 
  must continue to benefit from the Council of Europe&#146;s assistance and 
  co-operation programmes in order to undertake and implement the reforms 
  necessary to strengthen pluralist democracy, the rule of law and&nbsp; respect 
  for human rights.</span></p>
  <p align="justify"><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Assembly therefore recommends that the Committee of Ministers:</span></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">i.</span><font SIZE="2" face="Verdana"><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </span>
  </font>
    <span lang="EN-GB">pursue its assistance and co-operation programmes in 
    order to assist the authorities of Bosnia and Herzegovina in their efforts 
    to ensure compliance with European principles and standards, in particular 
    in the fields of human rights, the rule of law, pluralist democracy and 
    education ; </span></p>
    <p align="justify"><span lang="EN-GB">ii.</span><font SIZE="2" face="Verdana"><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </span>
  </font>
    <span lang="EN-GB">continue its assistance in view of the merger of the 
    existing Ombusdman institutions;</span></p>
    <p align="justify"><span lang="EN-GB">iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    continue its co-operation with the European Commission in the framework of 
    the Joint Programmes for Bosnia and Herzegovina; </span></p>
    <p align="justify"><span lang="EN-GB">iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    maintain Council of Europe field presence in Sarajevo and possibly envisage 
    the opening of a branch office in Banja Luka;</span></p>
    <p align="justify"><span lang="EN-GB">v.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    invite the authorities of Bosnia and Herzegovina to make best use of Council 
    of Europe membership, in particular in forwarding&nbsp; its future draft 
    legislation for&nbsp; Council of Europe expertise;&nbsp; </span></p>
    <p align="justify"><span lang="EN-GB">vi.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    invite the&nbsp; authorities of Bosnia and Herzegovina to take full 
    advantage of its accession to the Council of Europe Development Bank,</span></p>
    <p align="justify"><span lang="EN-GB">vii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    ask its member states to consider assistance by way of human, material and 
    financial ressources to support the Bosnia and Herzegovina Constitutional 
    Court in particular its human rights commission, as well as the future War 
    Crimes Chamber within the State Court.</span></p>
  </blockquote>
  <p align="justify"><b>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Explanatory memorandum by the co-rapporteurs</b></p>
  <p align="justify"><b><span lang="EN-GB"><a name="1" href="#1t">I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  INTRODUCTION</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The monitoring procedure</span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The consequences of the 1992-1995 war</span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="2" href="#2t">II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE TOP PRIORITY: OVERCOMING THE PAST</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Missing persons, refugees and IDP&#146;s</span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    War crimes </span></p>
    <p align="justify"><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Reunification of Mostar</span></p>
    <p align="justify"><span lang="EN-GB">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The District of Brcko: a third entity?</span></p>
    <p align="justify"><span lang="EN-GB">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    From reconstruction to market economy</span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="3" href="#3t">III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BUILDING A COMMON FUTURE WITHIN THE DAYTON FRAMEWORK</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Institutional complexity of the Dayton peace agreement </span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Constitutional dogma of equality between &#147;constituent&#148; peoples</span></p>
    <p align="justify"><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Is there a need for constitutional change?</span></p>
    <p align="justify"><span lang="EN-GB">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Assuming ownership for the election process: the October 2002 elections</span></p>
    <p align="justify"><span lang="EN-GB">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Undemocratic reforms of democratic institutions: the role of the High 
    Representative</span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="4" href="#4t">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  TAKING OVER OWNERSHIP OF THE STATE BUILDING PROCESS</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Defence reform</span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Reform of the intelligence and security services</span></p>
    <p align="justify"><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The education reforms</span></p>
    <p align="justify"><span lang="EN-GB">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Bulldozer committees</span></p>
    <p align="justify"><span lang="EN-GB">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The indirect taxation system </span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="5" href="#5t">V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  REESTABLISHING THE RULE OF LAW</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    State border service</span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Building a multiethnic police force</span></p>
    <p align="justify"><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Functioning of the judiciary</span></p>
    <p align="justify"><span lang="EN-GB">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Combating corruption and trafficking </span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="6" href="#6t">VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  MECHANISMS TO ENSURE RESPECT FOR HUMAN RIGHTS</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The Dayton Commission for Human Rights </span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The Constitutional Court</span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="7" href="#7t">VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BH ON THE ROAD TO EUROPEAN INTEGRATION</a></span></b></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    What has changed since accession to the Council of Europe?</span></p>
    <p align="justify"><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Accession to the European Union: a dream or a concrete perspective?</span></p>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB"><a name="1t" href="#1">I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  INTRODUCTION</a></span></b></p>
  <p align="justify"><b><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE MONITORING PROCEDURE </span></b></p>
  <p align="justify"><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In becoming a member of the Council of Europe on 24 April 2002, 
  Bosnia-Herzegovina consented to honour the obligations placed on all member 
  states under Article 3 of the Organisation&#146;s Statute, together with a number 
  of specific undertakings set out in
  <a href="../../AdoptedText/TA02/EOPI234.htm">Opinion 234 (2002)</a> on 
  Bosnia-Herzegovina&#146;s application for membership of the Council of Europe. With 
  a view to ensuring compliance with these commitments, the Assembly decided, 
  pursuant to <a href="../../AdoptedText/TA97/ERES1115.HTM">Resolution 1115 
  (1997)</a>, to closely monitor the situation in Bosnia and Herzegovina as from 
  its accession. It is to be noted that the Committee of Ministers of the 
  Council of Europe, with a view to continuously adapting the co-operation and 
  assistance programmes for Bosnia-Herzegovina, also decided to monitor the 
  situation closely, on the basis of a quarterly report by the Secretary 
  General.</span></p>
  <p align="justify"><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In accordance with Resolution 1115 (1997) Mr Surjan (Hungary, EPP) and Mrs 
  Akg�nen� (Turkey, EDG) were appointed co-rapporteurs for Bosnia-Herzegovina. 
  Mrs Akg�nen� was replaced in January 2003 by Mrs Shakhtakhtinskaya 
  (Azerbaijan, EDG). Mr Surjan was a member of the <i>ad hoc</i> delegation of 
  the Assembly that observed the elections in October 2002 and undertook the 
  first monitoring visit alone in December 2002.&nbsp; Both co-rapporteurs 
  visited BH in May 2003 and had meetings with the various authorities in 
  Sarajevo, Mostar, Banja Luka and Brcko.</span></p>
  <p align="justify"><span lang="EN-GB">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  This is the first report to be presented by the Monitoring Committee to the 
  Parliamentary Assembly to take stock on the progress achieved by 
  Bosnia-Herzegovina in honouring the obligations and commitments accepted 
  during its first two years of membership of the Council of Europe.</span></p>
  <p align="justify"><span lang="EN-GB">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  This report is largely based on the interviews and the information obtained 
  during our visits to Bosnia-Herzegovina from 1 to 4 December 2002 and from 19 
  to 24 May 2003. It also takes account of subsequent developments.</span></p>
  <p align="justify"><span lang="EN-GB">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We extend grateful thanks to the Bosnia-Herzegovina parliamentary delegation 
  for the excellent organisation of our visits and their hospitality. We were 
  able to hold extremely frank discussions at all levels. Our thanks are also 
  due to Dr. Sonja Moser-Starrach, Special Representative of the Secretary 
  General of the Council of Europe in Bosnia-Herzegovina and her staff for their 
  active assistance. We also benefited from the exchange of views held by the 
  Monitoring Committee in January 2003 with the High Representarive, Lord Paddy 
  Ashdown. </span></p>
  <p align="justify"><b><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE CONSEQUENCES OF THE 1992-1995 WAR</span></b></p>
  <p align="justify"><span lang="EN-GB">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In the region, Bosnia-Herzegovina (BH)<a href="#_ftn1" name="_ftnref1" title>[1]</a> 
  is the country that paid the heaviest price in the violent disintegration 
  process of the former Yugoslavia. Out of a pre-war population estimated at 
  around 4.4 million people, the 1992-1995 war killed more than 230 000 people 
  (of which 20 000 children) and displaced a total of 2.2 million people.&nbsp; 
  800 000 were internally displaced and 1.1 million fled the country. Around 30 
  000 people went missing. The country is still infested with 1.2 million 
  unexploded mines that kill or maim around 200 people a year. More than a third 
  of the housing was completely destroyed as well as major parts of the 
  infrastructure. Sarajevo was under siege, shelled and bombed for 44 months, 
  its population victim of sniper shootings, and some of the worst massacres 
  committed in Europe since the Second World War happened in BH.</span></p>
  <p align="justify"><span lang="EN-GB">7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BH faces numerous challenges: it has not only, as was the case in other 
  post-communist countries, to undergo a double transition, from communism to 
  democracy and from a planified economy to a market economy. In addition, in a 
  country where the three main ethnic communities were at war against each 
  other, the mere creation of a desire to build a common future presents a 
  difficult task after all the grief and suffering, and after all the atrocities 
  that were committed. We think that this should be borne in mind when assessing 
  the progress achieved since the end of the war in 1995. Reconciliation and 
  trust cannot be imposed: the healing of minds and hearts will take time.&nbsp;&nbsp;
  </span></p>
  <p align="justify"><span lang="EN-GB">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The present report will concentrate to a large extent on the functioning of 
  institutions in BH because of the very special situation created by the Dayton 
  Peace Agreements (DPA) signed in Paris on 14 December 1995, which set out the 
  conditions for peace. Annex 4 to these agreements, dealing with the 
  Constitution of Bosnia and Herzegovina, recognizes its existence as a state 
  under international law, composed of two Entities: the Federation of Bosnia 
  and Herzegovina and the Republika Srpska.Annex 10 to the DPAcreatesthe Office 
  of the High Representative (OHR), who is the chief civilian peace 
  implementation agency in Bosnia and Herzegovina and declares him the final 
  authority in theatre to interpret the agreement on the civilian implementation 
  of the peace settlement. Although BH is recognised as a sovereign state, with 
  democratically elected institutions, it is undisputed that the international 
  community, and especially the High Representative (HR), continues to exercise 
  significant executive, legislative and judicial powers within the country.
  </span></p>
  <p align="justify"><b><span lang="EN-GB"><a name="2t" href="#2">II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE TOP PRIORITY:&nbsp; OVERCOMING THE PAST</a></span></b></p>
  <p align="justify"><b><span lang="EN-GB">A.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <b>MISSING PERSONS, REFUGEES AND INTERNALLY DISPLACED PERSONS (IDPs)</b></span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Missing persons</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Around 30&nbsp;000 persons went missing during the conflict. The International Red 
  Cross and the International Commission for Missing persons (ICMP) have done an 
  unprecedented job in trying to locate, exhume and identify missing persons and 
  to alleviate their families&#146; grief. To date mortal remains of around 17&nbsp;000 
  people<a href="#_ftn2" name="_ftnref2" title>[2]</a> have been identified, 
  through an exacting process, made possible only by advances in DNA technology 
  and a massive database of 100&nbsp;000 blood samples provided by relatives. The 
  identification process has also been hampered by the existence of so-called 
  secondary mass graves: in an attempt to destroy evidence, bodies had been 
  moved by construction machines to new mass graves, damaging the remains by 
  dismembering and mixing them. This was the case for example in the biggest 
  mass grave ever investigated in BH, near Zvornik, where exhumations conducted 
  in 2003 allowed for recovery of 481 complete or relatively complete bodies.</span></p>
  <p align="justify"><span lang="EN-GB">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  However to date the process of recovery and identification of mortal remains 
  is still administered by entity-level commissions on missing persons and is 
  coordinated by the ICMP, in a procedure known as the Joint Exhumation Process 
  (JEP). The practice in BH of segregating the search for the missing by ethnic, 
  religious or national group, whereby, for example, the Federation commission 
  could only conduct an exhumation in RS on condition of reciprocity, has been 
  replaced by a somewhat more cooperative approach and both entity level 
  commissions now receive funding from the Entities. </span></p>
  <p align="justify"><span lang="EN-GB">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We believe there is clearly a need to provide BH with a durable mechanism at 
  State level to address this issue and to depoliticize it. The ICMP as early as 
  August 2000 proposed the creation of a Missing Persons Institute (MPI) with a 
  view to merging the existing two entity level commissions. Only on 4 June 
  2003, however, did the members of the Presidency recognize the need for a 
  State-level institution and agree unanimously on a decision for BH to become a 
  co-founder of the MPI, along with ICMP. This requires the passing at state 
  level of a law on missing persons. We have heard with satisfaction that such a 
  law has been prepared (it was presented by Human Rights and Refugees Minister 
  Kebo at a public debate on 12 December 2003) and should go into parliamentary 
  procedure soon. This law for BH acknowledges that families of the missing have 
  the right to know the fate of a loved one and the right to demand answers from 
  their own government, regardless of the ethnic, religious or national origin 
  of the person missing; it will bring more rights to family members of the 
  missing, and the government will need to establish funds for them. These 
  persons are often women who have lost their husbands or fathers, and still 
  find themselves, as single heads of households, unable to sign legal 
  documents, transfer property or claim benefits and inheritances.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Return of refugees and internally displaced persons (IDPs)</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The overall population of BH was 4.4 million before the war, based on the 1991 
  census. It is estimated today at around 3.8 million.</span></p>
  <p align="justify"><span lang="EN-GB">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  More than eight years after the signing of the Dayton Peace Agreement (DPA), 
  it is uncontested that enormous progress in the return of BH refugees and IDPs 
  has been achieved, with close to one million refugees and IDPs having returned 
  to BH or to their pre-war homes in BH as at the end of March 2004, out of an 
  estimated 2.2 million persons forcibly displaced during the war. 
  Significantly, these returns include some 437,000 so-called minority returns 
  as opposed to the so-called majority returns who returned to municipalities 
  where their own constituent people of BH are in a numeric majority. One should 
  note however that there are significant differences in return figures between 
  the Entities or within particular areas of BH and that, according to the 
  authorities, funds for reconstruction are not always evenly distributed to 
  returnees throughout BH</span></p>
  <p align="justify"><span lang="EN-GB">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  These return figures provide the clearest indication to date that the 
  demography of the region and BH specifically has been altered again in line 
  with Annex VII of the DPA, which underlined the &#145;right to return&#146; for all 
  those displaced in the war who wish to do so. It is not exaggeration to state 
  that the implementation of the right to return is the most remarkable 
  achievement of the DPA, even if it is still a success story in the making.</span></p>
  <p align="justify"><span lang="EN-GB">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  There was a significant drop in the number of returns in 2003: only around 
  54,000 people returned, down from a peak of around 107,000 people in 2002. 
  This may indicate that, some eight years after the end of the war, the bulk of 
  people who wanted to return have now done so<a href="#_ftn3" name="_ftnref3" title>[3]</a>, 
  with the remainder having received foreign passports and created their homes 
  elsewhere. But there is also the very major issue of sustainable return, of 
  rebuilding houses<a href="#_ftn4" name="_ftnref4" title>[4]</a> and schools, 
  of access to health care, jobs and education. Funds earmarked for refugee 
  return amounted to around 90 to 95 million USD in 2003 (one third of this 
  amount coming from the BH Government) but foreign aid is drying up and the 
  UNHCR operation will scale down considerably as of 2004.</span></p>
  <p align="justify"><span lang="EN-GB">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Moreover, we were informed by UNHCR that a large number of persons still 
  remain displaced in the region as of today, including some 105,000 refugees 
  from BH still residing in neighbouring Serbia and Montenegro (101,350 at end 
  July 2003) and Croatia (4,068 at end July 2003), and some 337,000 IDPs still 
  registered as displaced within BH, many of whom are still in need of a durable 
  solution. These figures include some 5,000 BH refugees still living in 
  deplorable conditions in Collective Centres (CCs) throughout the region as 
  well as some 800 IDPs still in CCs in BH, for whom individual tailor-made 
  durable solutions will have to be found before these centres can be closed.</span></p>
  <p align="justify"><span lang="EN-GB">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Although the overall security situation in BH is vey good,&nbsp; it is to be 
  noted that at least three return related homicides were reported in 2003 in 
  Bugojno, Mostar, and Srpsko Gorazde as well as other violent attacks against 
  returnees and their property. The number of serious mine accidents in return 
  areas has also increased during the first months in 2003 with 37 mine victims 
  already recorded by July 2003 (as compared to 72 in 2002). </span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Property repossession</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  A crucial element underpinning the return of BH refugees and internally 
  displaced, especially over the past years, has been the successful 
  implementation of the property laws in BH, thereby enabling an increasing 
  number of refugees and IDPs to return home and repossess their property. By 
  July 2003, the International Commission for Real Property Claims (CRPC), a 
  body created under Annex 7 of the DPA<a href="#_ftn5" name="_ftnref5" title>[5]</a>, 
  had issued 302,109 property decisions. These decisions provide 
  incontrovertible proof of rights to property and legally require that domestic 
  authorities free up occupied houses so that decision-holders can return. The 
  CRPC, which closed down at the end of 2003, bequeathed a number of outstanding 
  claims to the BH authorities. This will of course add to the burden on the 
  municipalities that will thus still have to enforce property decisions for 
  some 30,000 families/claimants during 2004 and beyond. We call on the domestic 
  authorities to&nbsp; ensure the full implementation of the property laws and 
  to fully abide by the decisions of the former CRPC.</span></p>
  <p align="justify"><span lang="EN-GB">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We were told that Property Law Implementation had reached 93 per cent 
  throughout BH as of the end of February 2004, and that the local housing 
  authorities in BH had solved 201,902 of the total of 220,225 property claims 
  recorded and had issued almost 99 per cent of first instance decisions. The 
  implementation ratio in Brcko District remained at 96 per cent. Full 
  implementation of the property laws was an accession commitment and we 
  congratulate the BH authorities and the CRPC on this so far remarkable 
  achievement.</span></p>
  <p align="justify"><span lang="EN-GB">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  While the significance of the achievement to date cannot be overemphasized, it 
  represents only the beginning in the return process for those refugees and 
  IDPs fortunate enough to have habitable property restored to them. The 
  outstanding claims may also provide at least in part an explanation for the 
  slowdown in recorded returns in 2003, as compared with 2002, coupled with the 
  lack of adequate reconstruction assistance for destroyed properties. In 
  addition, we have heard from reliable sources that the successful 
  implementation of the property law is not necessarily proof of refugees&#146; 
  return to their pre-war homes: in many instances property is being repossessed 
  by their rightful owners only to be sold or exchanged. </span></p>
  <p align="justify"><span lang="EN-GB">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The BH Council of Ministers&#146; and the international donor community&#146;s support 
  for reconstruction activities have not kept pace with the recorded return 
  trends. At the beginning of 2003, the overall housing shortage in support of 
  refugee and DP returns was estimated by the BH authorities to be in the order 
  of some 50,000 housing units while the resources for 2002 fell far short of 
  the 160m &#128; required for building 16,000 housing units for persons who had 
  already returned. </span></p>
  <p align="justify"><span lang="EN-GB">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  At the beginning of June 2003, the State Commission for Refugees and Displaced 
  Persons established the Joint Project Fund for 2003 with commitments from both 
  Entities and the State of some KM 14 Million, to which Brcko District might 
  add a contribution of KM one million, supplemented by a first contribution of 
  the European Commission of KM 4 Million, subject to the satisfactory 
  disbursements of these funds in 2003. To meet the demand of the displaced 
  population for housing, it is vital that new and additional sources of funding 
  are vigorously pursued. While the accession in December 2003 of BH to the 
  Council of Europe development Bank (CEB) represents such an opportunity, it is 
  important that BH rapidly proposes some projects. None have been submitted to 
  the Bank to date (May 2004). We therefore urge the authorities to prepare 
  project proposals as soon as possible, </span></p>
  <p align="justify"><span lang="EN-GB">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The BH authorities also have to address the problem of refugees within BH: 
  some 19,477 Serb refugees formerly resident in Croatia still remain registered 
  as refugees in BH, predominantly in the Northwest of the RS. Their situation 
  will remain precarious for some time to come, chiefly due to their uncertain 
  legal status in BH and obstacles remaining to their eventual return to Croatia 
  and the return of their property there. While some progress has been 
  registered in Croatia over the past year or so, during which some 3,500 Serbs 
  from Croatia have returned to Croatia from BH, much more needs to be done to 
  enable this population to return home and repossess their properties in 
  Croatia. Of the 3,045 refugees from Serbia and Montenegro (SCG) re-registered 
  by the authorities with UNHCR&#146;s assistance in mid-2002 - almost all of whom 
  reside in the Federation of BH - 75 per cent continue to reside in Sarajevo 
  Canton. The majority of this population are Roma from Kosovo, for whom no 
  immediate solution appears to be in sight. We hope that the agreement on 
  refugee return signed on 6 October 2003 between BH and Serbia-Montenegro will 
  provide practical solutions in the near future. </span></p>
  <p align="justify"><span lang="EN-GB">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Finally, notwithstanding the adoption of a new Law on the Movement and Stay of 
  Aliens and Asylum in July 2003 (also an accession commitment), we regret the 
  continued lack of national capacity providing for a functioning asylum system 
  in BH: no bylaws have been passed and UNHCR is continuing to conduct refugee 
  status determination under its mandate.&nbsp; At the end of May 2003, some 750 
  persons had pending requests for asylum in BH, the majority coming from Serbia 
  and Montenegro and &#147;the former Yugoslav Republic of Macedonia&#148;.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Mines and operation harvest</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We were told that there are an estimated 1.2 to 3 million unexploded mines in 
  BH. Many mine fields are not indicated on any map. By December 2003, mines had 
  killed a total of 1,454 people since 1996. The BH Mine Action Centre, created 
  following adoption of the de-mining law at State level in February 2002, 
  depends largely on foreign donations and it will take another 70 years at the 
  present rate to clear all the mine infested territory. There are plans for 
  local authorities to take over from the Mine Action Centre in 2006 but, again, 
  lack of domestic funding and a drop in foreign donations<a href="#_ftn6" name="_ftnref6" title>[6]</a> 
  will inevitably slow down the process. One of the solutions envisaged is 
  sending BH soldiers, by now well trained and experienced, to other countries 
  in need of de-mining during the winter months when nothing can be done in BH. 
  Mines are not only an obstacle to return, they also impede agriculture and the 
  development of tourism. In respect of weapons and ammunition, so-called 
  &#148;harvest operations&#148; still have to be carried out by SFOR on a routine basis 
  in order to collect weapons and ammunition from the population and destroy 
  outdated and dangerous equipment.</span></p>
  <p align="justify"><b><span lang="EN-GB">B.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <b>WAR CRIMES</b></span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Co-operation with the International Criminal Tribunal for the former 
    Yusovlavia (ICTY)</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  All states of former Yugoslavia are required<a href="#_ftn7" name="_ftnref7" title>[7]</a>, 
  by vrtue of Article 29 of the ICTY statute, which was enacted by the UN 
  Security Council under Chapter VII of the UN Charter, to cooperate with the 
  Tribunal in both the investigation and the prosecution of persons accused of 
  committing serious violations of international humanitarian law lying within 
  the Tribunal&#146;s jurisdiction. Full and active co-operation with ICTY in handing 
  over persons accused of war crimes, crimes against humanity and genocide was 
  therefore also an accession commitment of the Council of Europe. We have to 
  report that no substantial progress has been made, at least in one of the 
  Entities: not one single suspect of war crimes was handed over to the ICTY by 
  the Republika Srpska. Furthermore, there is extremely poor co-operation 
  between the Entity police forces in facilitating the arrest of war crimes 
  suspects.&nbsp; As regards the responsiveness of the RS in relation to 
  Federation Ministry of Internal Affairs&#146; requests for the issuance of arrest 
  warrants for war crimes suspects believed to be residing in the RS, it is to 
  be noted that only seven such requests have been made to the RS Ministry since 
  1999, with one response.&nbsp; While Interpol arrest warrants initiated by 
  either the RS Ministry or Federation Ministry are sent out to every country in 
  the world, they are not exchanged between the Entity police forces.</span></p>
  <p align="justify"><span lang="EN-GB">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Since 1996, SFOR has arrested 25 people, which is not so many. Searches were 
  conducted in both the Federation Intelligence and Security Service (FOSS) on 
  14 October 2003 and RS Intelligence and Security Service (OBS) on 15 October 
  2003 for different reasons.&nbsp; However, the common element relates to 
  obstructing the implementation of the DPA.&nbsp; While SFOR inspected the FOSS 
  premises, for information on sources and collection of information, ICTY 
  investigators conducted the OBS searches with the assistance of SFOR.&nbsp; 
  The operation was carried out in 11 different locations throughout Republika 
  Srpska in order to locate and seize documents which the RS authorities had 
  consistently failed to provide to ICTY despite their legally binding 
  obligation to co-operate with the Tribunal.&nbsp; In his annual report for 
  2003 to the Security Council, the President of the ICTY noted that there was 
  still much room for improvement at all levels of co-operation with the 
  Republika Srpska generally but that co-operation had improved to some extent 
  with regard to access to documents (archives) and witnesses, namely former 
  military and police personnel. He considered that the co-operation of the 
  Federation of Bosnia and Herzegovina remained satisfactory. </span></p>
  <p align="justify"><span lang="EN-GB">28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 18 April 2004, the RS police carried out on its own an operation in 
  Visegrad with a view to arresting two war criminals indicted by the ICTY. 
  During this operation, the brother of one of the indictees was killed in 
  circumstances that will require investigation. Three police officers were 
  immediately suspended.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Arrest of Karadzic and Mladic</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  More than 8 years after the end of the war, the most wanted suspected war 
  criminals remain at large. Carla Del Ponte, the ICTY Chief Prosecutor, has 
  repeatedly stated that the ICTY will not close<a href="#_ftn8" name="_ftnref8" title>[8]</a> 
  down unless Karadzic and Mladic are arrested and brought to trial. While 
  Karadzic is believed to be hiding in eastern RS, Mladic is allegedly living in 
  Belgrade. On 6 October 2003, Pierre Prosper, US Ambassador-at-Large for War 
  Crimes Issues, again stated that outstanding war crime indictees, particularly 
  Radovan Karad&#158;ic, must be extradited to the ICTY in order to achieve progress 
  in BH and full integration into the European Union. Referring to BH&#146;s 
  candidacy in the NATO Partnership for Peace, the former NATO Secretary 
  General, George Robertson, has also repeated this on a number of occasions.
  </span></p>
  <p align="justify"><span lang="EN-GB">30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 7 October 2003, Republika Srpska (RS) President, Dragan Cavic and 
  Ambassador Prosper signed a joint statement calling on all indicted war 
  criminals to surrender immediately or to risk arrest by the RS Police or SFOR.&nbsp; 
  Cavic and Prosper stated that &#147;by working together and bringing all suspected 
  war criminals to justice, we shall help the establishment of a lasting peace 
  in BH, prosperity and a better life for all citizens in BH&#148;. A similar 
  statement was issued on 14 April 2004 jointly by officials of the State and 
  both Entities. This appears to date to be nothing more than lip-service paid 
  to legitimate international pressure. When we met with President Cavic in May 
  2003, we also tried to convince him that the lack of progress on this issue 
  was a major obstacle on the road to European integration but we were again 
  given the official answer, i.e. that the RS authorities don&#146;t know where 
  either Karadzic or Mladic are and that it was up to SFOR to find and arrest 
  them. SFOR has conducted five raids during the last two years in an attempt to 
  arrest Karadzic. The most recent ones were carried out in Pale, a small town 
  16 km from Sarajevo, in January 2004 and on 1 April 2004. The first one led to 
  the arrest of two of Karadzic&#146;s former bodyguards and was considered a success 
  with regard to collection of information. During the second one, however, an 
  orthodox priest and his son suffered serious blast related injuries while SFOR 
  raided their home. We hope that the circumstances of this operation will be 
  seriously investigated and the results made public.</span></p>
  <p align="justify"><span lang="EN-GB">31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Karadzic is still considered by some people in the RS as a national hero and 
  allegedly benefits from support, including from the financial point of view. 
  Both the EU and the US have taken measures to fight those who are believed to 
  aid and abet war criminals in the Balkans: President Bush has issued an 
  executive order blacklisting around 150 individuals and banning them from 
  entering the US or conducting financial transactions there. The EU also banned 
  12 persons. In BH, since March 2003, the HR froze 26 individuals&#146; or 
  companies&#146; bank accounts<a href="#_ftn9" name="_ftnref9" title>[9]</a> and 
  dismissed six people. Two of his decisions caused uproar in the SDS: on 10 
  February 2004, he decided to remove <i>inter alia</i> Mirko Sarovic, one of 
  the former members of the Presidency, who had had to resign from this post in 
  April 2003, from his position as vice-president of the SDS and to freeze all 
  his bank accounts. This led the next day to the collective resignation of the 
  SDS governing board. On 2 April 2004, the HR further decided to freeze all 
  payments to the SDS from State to municipal level due to failure to cooperate 
  fully with the ICTY. Moreover, because of suspicions that the SDS has not 
  ceased its financial support to war criminals and crime syndicates, it was 
  given until 19 April to present the HR with a financial report. On 7 May 2004, 
  the HR stated that the report he had received was inadequate, incomplete and 
  at times deceitful but that he would pass a final decision only after auditing 
  all the SDS financial activities, including at local level.</span></p>
  <p align="justify"><span lang="EN-GB">32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We strongly urge the authorities in the RS to fully and effectively cooperate 
  in the search and arrest of Karadzic and Mladic. Whether they like it or not, 
  a large number of the atrocities committed in BH during the war are to be 
  attributed to the Serb forces and the time has come to acknowledge this. 
  Before being able to forgive, justice must be done.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">3.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <b>The</b> <b>Srebrenica massacre</b></span></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Srebrenica massacre, which took place in July 1995 in a UN safe haven in 
  and around the town of Srebrenica, is one of the worst atrocities committed 
  since the Second World War: around 7,000 Bosniak boys and men were executed by 
  the Serbian forces &nbsp;and their bodies thrown into mass graves. Although the 
  ICTY already sentenced three individuals<a href="#_ftn10" name="_ftnref10" title>[10]</a> 
  for their role in the Srebrenica massacre, there was generally a low degree of 
  acceptance of their responsibility by the RS authorities. The RS has 
  consistently &nbsp;tried to minimize the number of victims, dispute the fact that 
  they were civilians or even cast doubt on the reality of the event. This has 
  changed, in particular since the Human Rights Chamber (HRC) issued its 
  decision on the Srebrenica case on 7 March 2003. The Chamber expressly 
  recognized the continuing pain and suffering of the relatives, concluding that 
  the Republika Srpska had done &quot;almost nothing to clarify the fate and 
  whereabouts of the presumed victims of the Srebrenica events, or to take other 
  action to relieve the suffering of their surviving family members, or to 
  contribute to the process of reconciliation in Bosnia and Herzegovina.&quot;&nbsp; 
  It further noted that the violations of articles 3 and 8 of the ECHR &quot;reflect 
  a total indifference by the authorities of the Republika Srpska to the 
  suffering of the Bosniak community&quot;.</span></p>
  <p align="justify"><span lang="EN-GB">34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In this case, brought by 49 immediate relatives of the &quot;disappeared&quot;, the 
  Chamber ordered the Republika Srpska to disclose immediately all information 
  relevant to establishing the fate and whereabouts of their relatives and on 
  the location of mass graves containing the bodies of Srebrenica victims. 
  Furthermore, the Republika Srpska was ordered to conduct an investigation into 
  the events at Srebrenica and to publish its findings by the beginning of 
  September 2003.</span></p>
  <p align="justify"><span lang="EN-GB">35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Republika Srpska was also ordered to pay compensation for the collective 
  benefit of all applicants and families of Srebrenica victims, in the form of a 
  lump sum of 2 million Konvertible Marks (approximately 1million Euros) to the 
  Foundation of the Srebrenica-Potocari Memorial and Cemetery (where the first 
  burials of 600 Srebrenica victims took place on 31 March 2003). They must then 
  make four additional payments of 500,000 KM each in the next four years to the 
  same Foundation.</span></p>
  <p align="justify"><span lang="EN-GB">36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 15 October 2003, the Human Rights Chamber (HRC) publicly welcomed the steps 
  undertaken by RS authorities to investigate the events in Srebrenica of 10 to 
  19 July 1995. In their report, the RS authorities publicly conceded for the 
  first time that most of the Bosniak men and boys arrested by Serb forces after 
  the fall of Srebrenica were later executed in the region of Zvornik. The HRC 
  positively assessed the plan for establishing and financing an independent 
  commission consisting of experts who would be tasked with forwarding a 
  comprehensive report on Srebrenica to the RS government. However, the HRC 
  remained critical of the steps undertaken by the RS government to fulfil the 
  Chamber&#146;s decision,&nbsp; stating that there was continued obstruction in 
  handing over the necessary information from the military, police and 
  intelligence services. </span></p>
  <p align="justify"><span lang="EN-GB">37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The independent Commission was established by the RS Government in December 
  2003, with international participation and its first interim report was 
  presented on 14 April 2004. This report again illustrated systematic 
  obstruction and inaction by the RS authorities. &nbsp;This was acknowledged by the 
  RS Government who requested an extension of the deadline to mid-October. The 
  HR however lost patience and chose forcible action: on 20 April he issued a 
  decision dismissing the RS General Chief of staff and the Head of the RS 
  Secretariat responsible for liaising with the ICTY. He also invited&nbsp; the 
  RS to dismiss the Commission&#146;s chairman and announced that the jobs of the RS 
  interior and Defence ministers would likewise be forfeited if their ministries 
  did not start cooperating wholeheartedly with the Commission, which was given 
  another two weeks to produce a report. The HR also decided that the 
  Commission&#146;s final report must be completed by 11 June 2004, before the NATO 
  Istanbul summit.</span></p>
  <p align="justify"><span lang="EN-GB">38.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 30 April 2004, the newly appointed head of the Commission announced that 
  Republika Srpska institutions appeared finally to be ready to co-operate with 
  the Commission and that they had submitted information relating to six 
  heretofore unknown mass graves. It was confirmed that the information had been 
  submitted to the commission by the RS army and interior ministry within the 
  past fortnight. The commission was thus able to include this evidence in its 
  second preliminary report dated 30 April 2004. Lord Ashdown's office reported 
  that, on first reading, the Srebrenica Commission&#146;s second report did suggest 
  that it had received important new information.</span></p>
  <p align="justify"><span lang="EN-GB">39.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We strongly hope that the work of the Srebrenica Commission will be conducive 
  to establishing the truth and to fostering reconciliation and we urge the 
  competent authorities to fully cooperate with it.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">4.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <b>Lawsuit before the ICJ</b></span></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">40.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In 1992, the then existing State of Bosnia-Herzegovina<a href="#_ftn11" name="_ftnref11" title>[11]</a> 
  started a lawsuit for&nbsp; genocide against the Federal Republic of 
  Yugoslavia before the International Court of Justice in The Hague. The issue 
  of who should finance this lawsuit was among the first disagreements expressed 
  by the three member Presidency following the October 2002 elections: the Serb 
  member simply opposed any funding by the State budget<a href="#_ftn12" name="_ftnref12" title>[12]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">41.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Even the legality of the BH lawsuit against what is now Serbia and Montenegro 
  (SaM) continues to be questioned.&nbsp; Borislav Paravac, member of the BH 
  Presidency, contends that the charge is not legal or grounded since it was 
  voted for despite Serb opposition.&nbsp; Therefore, he has announced renewed 
  discussions into the matter.&nbsp; Foreign Minister Mladen Ivanic also 
  contends that BH&#146;s lawsuit against SaM for genocide was not a lawsuit filed by 
  BH institutions but by the Federation of BH. Nikola &#138;piric, Speaker of the BH 
  House of Representatives, has called for the lawsuit to be debated in the BH 
  Parliamentary Assembly.&nbsp; On 1 October 2003, the Republika Srpska National 
  Assembly formally adopted a declaration against the lawsuit, which has been 
  viewed by the Bosniak deputies of the RS parliament as undermining their vital 
  national interests.&nbsp; </span></p>
  <p align="justify"><span lang="EN-GB">42.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We mention this only as an illustration of how much still needs to be done to 
  bring about reconciliation and mutual trust in this country. More than eight 
  years after the war, it still seems difficult to set up, on the basis of the 
  South African model, a Commission for Justice, Truth and Reconciliation, as 
  has been suggested on a number of occasions by Carla Del Ponte and also by 
  Jakob Finci, the present head of the Civil service agency and a respected 
  Jewish leader in BH.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">5.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <b>Prospects for establishing a</b> <b>domestic war crimes court</b></span></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">43.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  There are quite a number of domestic war crime trials going on in 
  Bosnia-Herzegovina, on the basis of the Rules of the Road agreed upon with 
  ICTY on 18 February 1996, according to which any domestic order, warrant or 
  indictment for war crimes must first be reviewed by the ICTY Prosecutor. 
  During 2002, the ICTY Prosecutor&#146;s office reviewed 192 such files involving 
  some 1,134 suspects. There are a dozen domestic war crime trials pending in 
  the Federation and only one in Republika Srpska.</span></p>
  <p align="justify"><span lang="EN-GB">44.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In the spring of 2003, the ICTY put in place a major element in the external 
  component of its completion strategy by reaching an agreement with the Office 
  of the High Representative for Bosnia and Herzegovina concerning the 
  establishment of a special chamber for war crimes prosecutions in the State 
  Court of Bosnia and Herzegovina. The establishment of that chamber, endorsed 
  by the steering board of the Peace Implementation Council on 12 June 2003, 
  should enable the Tribunal to begin transferring some cases of mid- and 
  lower-level accused by the end of 2004 or early 2005. The Prosecutor remains 
  committed to ceasing investigations by the end of 2004. As the U.N. tribunal 
  struggles to handle dozens of cases in just three courtrooms, the special 
  court in Bosnia will help meet deadlines for wrapping up all trials by 2008 
  and appeals by 2010. ICTY president Theodor Meron has already warned that this 
  deadline is overly optimistic with 17 suspects still at large and more 
  indictments expected.</span></p>
  <p align="justify"><span lang="EN-GB">45.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  This is a very welcome development but extensive funding will be required in 
  order to make this special chamber operational. The court will need its own 
  security staff, detention facility, witness protection program and 
  investigators. A number of laws need to be passed, in particular on witness 
  protection, and a State prison will have to be built. On 30 October 2003, the 
  United States and 29 other countries pledged 18.4 million USD to create this 
  war crimes court. It is to be noted, however, that the money promised so far 
  meets the requirement for the first two years only: around 44.5 million USD 
  will be needed in the first five years. The new tribunal - scheduled to open 
  in 2004 - will have a staff of around 100, with seven prosecutors and 11 
  judges. It will initially be run by international employees, but power will 
  gradually be handed over to Bosnian officials and the court will become fully 
  national after five years. </span></p>
  <p align="justify"><b><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  REUNIFICATION OF MOSTAR</span></b></p>
  <p align="justify"><span lang="EN-GB">46.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The city of Mostar is famous for its OldBridge, a marvel of medieval ottoman 
  craftsmanship. This bridge was destroyed during the war and was reconstructed 
  with the help of UNESCO and donations from various governments. Rebuilding the 
  bridge is also seen as a symbol for the reunification of the city, which has 
  remained divided since the war. The city itself has also been seriously 
  damaged and we were struck by the number of buildings still bearing the marks 
  of the war. </span></p>
  <p align="justify"><span lang="EN-GB">47.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Interim Statute of the City of Mostar, issued on 7 February 1996, was a 
  direct result of the Washington Agreement (confirmed by the Dayton Peace 
  Agreement) and of its basic purpose of ending the bloodshed in Bosnia and 
  Herzegovina. Unfortunately, virtually all of the provisions of the Interim 
  Statute have remained dead letters, and none have been implemented in 
  accordance with its original intentions. Mostar has in the past 10 years 
  become emblematic of the political divisions and structural inefficiencies 
  that have often prevented reform and progress in Bosnia and Herzegovina.
  </span></p>
  <p align="justify"><span lang="EN-GB">48.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Today, eight years after 7 February 1996, instead of a normal or close to 
  normal situation, the City of Mostar is still physically divided into two 
  parts, so called &#147;east&#148; and &#147;west,&#148; with six City-Municipalities (3 Croat and 
  3 Bosniak) established and organized according to the warring demarcation 
  lines, exclusively on national grounds. The City-Municipalities have become 
  virtual fiefdoms, which, without any common standards and criteria, administer 
  natural, economic, social and other resources.</span></p>
  <p align="justify"><span lang="EN-GB">49.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The central City Administration consists of a City Council with 29 
  councillors, employs 124 officials and employees and spends significant budget 
  resources, yet in reality performs virtually no tasks useful to the citizens 
  or for the functioning of the City. At the same time, virtually identical 
  municipal administrations have been established within the six 
  City-Municipalities, who employ over 550 people. As a result, Mostar today has 
  divided institutions and functions in health and child care and in elementary, 
  secondary and higher education; two universities; two financial, fee and tax 
  policies; two spatial, urban and regulatory planning agencies overseeing the 
  use and exploitation of natural resources; and a divided communal 
  infrastructure (including public city transportation, water supply, sewage 
  systems, fire protection systems, city waste facilities, environmental 
  protection measures, etc.) </span></p>
  <p align="justify"><span lang="EN-GB">50.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 17 September 2003, the HR decided to set up a Commission for Reforming the 
  city of Mostar, chaired by an international, Norbert Winterstein, to actively 
  engage local authorities in determining the future structure, administration 
  and functioning of Mostar, and to develop by December 2003 a long-term legal 
  framework capable of ensuring that Mostar can develop as a normal, unified 
  city in line with European norms and standards.</span></p>
  <p align="justify"><span lang="EN-GB">51.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 15 December 2003, the Chairman of the Commission presented a proposal for a 
  new statute, which envisages Mostar as one unit of local self government 
  without the current municipalities. The proposal envisages a single city 
  municipality, while the current municipalities would become administrative and 
  electoral districts. The Commission reached a consensus on several important 
  issues, including the need for a single budget, a single law regulating the 
  City and the importance of mechanisms to protect vital national interests. The 
  Commission was unable to reach consensus on the status or structure of the 
  City as a unit of local self-government, or on the design of the electoral 
  system, but did propose several alternatives for consideration. None of them 
  were considered to be acceptable by either the SDA or the HDZ. After last 
  minute negotiations, the HR finally imposed the new Statute by decision dated 
  28 January 2004. It came into force on 15 March 2004.</span></p>
  <p align="justify"><span lang="EN-GB">52.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  We regret the fact that the decision on the organization of Mostar is again 
  one that had to be imposed by the HR because of the lack of trust between the 
  Bosniak and the Croat communities. We strongly urge both of them to cooperate 
  in good faith as regards the implementation of this new Statute, which has 
  become a matter of urgency in view of the municipal elections to be held in 
  October 2004. According to the new Statute, a total of 35 councillors will be 
  elected to the City Council, in which at least four representatives of each 
  constituent people will be represented, as well as one of the group of 
  &#147;Others&#148;, but no constituent people will have more than fifteen councillors. 
  The mayor will not be directly elected. The solution imposed by the HR aims at 
  ensuring that none of the constituent people has a majority in the city 
  Council. Whether this solution will be accepted in the long term as coherent 
  with the democratic, direct and free will of the electorate remains to be 
  seen.</span></p>
  <p align="justify"><b><span lang="EN-GB">D.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <b>THE BRCKO DISTRICT: A THIRD ENTITY?</b></span></p>
  <p align="justify"><span lang="EN-GB">53.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The pre-war municipality of Brcko, located in the Posavina region of northeast 
  Bosnia, owed its relative affluence in particular to its status as a 
  commercial and transport hub providing links to the&nbsp; republics of Croatia 
  and Serbia. Brcko&#146;s Sava river port, which served the Tuzla industrial and 
  mining basin to the south, is BH&#146;s most important<a href="#_ftn13" name="_ftnref13" title>[13]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">54.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Ownership of the divided and strategically vital<a href="#_ftn14" name="_ftnref14" title>[14]</a> 
  Brcko municipality in north-east BH proved too contentious to settle at Dayton 
  in 1995. The question was left for binding, post-war arbitration. The result, 
  in a series of three arbitral awards between 1997 and 1999, was to establish a 
  fully-fledged international administration separate from and more 
  all-embracing than that of the High Representative in Sarajevo. The Final 
  Award of March 1999 decreed that the three wartime municipalities should be 
  unified as a neutral and de-militarized district under the direct sovereignty 
  of the state. </span></p>
  <p align="justify"><span lang="EN-GB">55.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 8 March 2000, the first Supervisor, Robert W. Farrand, proclaimed the 
  creation of the district and promulgated its statute. He proceeded to appoint 
  an interim government and a 29-member assembly. These interim authorities are 
  still in place. The Arbitral Tribunal left it to the Supervisor to decide when 
  to call elections, but the Final Award does nonetheless require that they be 
  held before the Supervisor can assure either the Peace Implementation Council 
  (PIC) or the Tribunal that implementation is complete and secure. For the time 
  being BH citizens from Brcko are the citizens of one of the Entities and are 
  eligible to vote in that entity's elections. </span></p>
  <p align="justify"><span lang="EN-GB">56.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Final Award of the Brcko Tribunal established Brcko District as a 
  self-governing territory in Bosnia and Herzegovina, with administrative, 
  legislative and judicial powers. The Award requires the Brcko Supervisor to 
  create a body of laws that will be applicable throughout the District, 
  replacing the existing Entity legislation which applies on one side or the 
  other of the former inter-entity boundary line. Former Brcko Supervisor Henry 
  Clarke issued on 16 July 2003 a new Supervisory Order advancing the process of 
  harmonizing and replacing Entity legislation in Brcko District.</span></p>
  <p align="justify"><span lang="EN-GB">57.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Once seen as the most likely flashpoint for any renewed warfare in BH, Brcko 
  has since prospered to such an extent that it is regularly and rightly invoked 
  both as the shining example of international stewardship in BH and as a model 
  for emulation by the rest of the country<a href="#_ftn15" name="_ftnref15" title>[15]</a>. 
  Brcko&#146;s reforms of the civil and criminal justice systems, of education and of 
  municipal government have led the way in BH.&nbsp; There is allegedly a truly 
  multi-ethnic police force in Brcko as well as a multi-ethnic school system. 
  The establishments of fiscal discipline, a sensible and effective tax regime, 
  and a business-friendly environment have resulted in significant foreign 
  investment, a promising privatization program, and the highest average wages 
  in the country. Unemployment is at 25 per cent as compared to 40 percent in 
  the rest of BH. These reforms were perhaps easier to introduce in Brcko than 
  in the rest of the country, because of its small size (the District has a 
  population of only around 45&nbsp;000 people) but it has also been argued that the 
  international Supervisor has been able to be more effective, because he did 
  not have to bother with elections and was given more extensive powers than the 
  High Representative. Finally, and this seems to be much resented by the two 
  Entities, Brcko directly benefits from the customs and excise duties levied on 
  imports from Croatia.</span></p>
  <p align="justify"><span lang="EN-GB">58.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Be that as it may, we have been very much impressed by what we saw and heard 
  in Brcko during our visit<a href="#_ftn16" name="_ftnref16" title>[16]</a> in 
  May 2003, when we met the local authorities, including Mayor Kisic<a href="#_ftn17" name="_ftnref17" title>[17]</a> 
  and some of his deputies, and the speaker of the Brcko Assembly. We were shown 
  the draft budget and informed of the future development projects. There 
  clearly was optimism and the willingness to cooperate and we did not sense the 
  guarded atmosphere that often still prevails in meetings with representatives 
  of all three constituent people. Co-operation with former Supervisor Clarke 
  was not always easy but was said to be very constructive, which he confirmed 
  when we met him. Supervisor Clarke also told us that the main item on his 
  agenda before leaving his post in November 2003<a href="#_ftn18" name="_ftnref18" title>[18]</a> 
  was the drafting on an electoral code for Brcko, with a view to - finally &#150; 
  organize elections in the District, to be held at the same time as the 
  municipal elections throughout the country in October 2004. </span></p>
  <p align="justify"><span lang="EN-GB">59.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  A draft of the Brcko District Election Law was presented to the Assembly on 5 
  June 2003, and adopted on 19 September, with one important amendment.&nbsp; 
  The law is fully compatible with the Election Law of Bosnia and Herzegovina. 
  All permanent residents of the District will be able to vote, whether they are 
  currently living in the District or not.&nbsp; The District was not subject to 
  the Constitutional Court decision requiring minimum representation of national 
  groups in Entity parliaments &#150; Brcko&#146;s three major groups are large enough to 
  be represented without it.&nbsp; Nevertheless, in a gesture of their desire to 
  include the smallest group, the Croats, the Brcko Assembly amended the draft 
  law to include a provision for a minimum representation of three seats (out of 
  29) for each of the three national groups. This compares, for example, to the 
  minimum representation of four seats in the much larger assemblies of 
  Republika Srpska or the Federation.</span></p>
  <p align="justify"><span lang="EN-GB">60.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Whether Brcko District is considered ready to take over its own fate is a 
  matter for the Arbitral Tribunal to decide. How to fully integrate the 
  District into the State of BH is one of the challenges facing the domestic 
  authorities in the not too distant future.&nbsp; </span></p>
  <p align="justify"><b><span lang="EN-GB">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  FROM RECONSTRUCTION TO MARKET ECONOMY</span></b></p>
  <p align="justify"><span lang="EN-GB">61.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Bosnia and Herzegovina&#146;s transition to a market economy has been undertaken in 
  peculiar circumstances: the years immediately after Dayton were dominated by 
  issues of security, reconstruction, refugee returns and primary peace-keeping, 
  into which the International community has invested<a href="#_ftn19" name="_ftnref19" title>[19]</a> 
  around 5.1 billion USD.&nbsp; Peace and stability have now been 
  re-established, and the country participates in the most important regional 
  initiatives, including the Stability Pact and South East European Cooperative 
  Initiative. </span></p>
  <p align="justify"><span lang="EN-GB">62.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  However, the extremely decentralized governing structure, in particular in the 
  Federation of BH, with its intrusive party influence, bequeathed by Dayton, 
  has produced an exceptionally unwieldy decision-making process, resulting in 
  urgent economic reforms being put off. Against a backdrop of declining aid 
  flows and a need to find solutions to bread-and-butter issues such as 
  unemployment, low pensions and wages, political priorities have had to change. 
  The economic and social situation in BH is still perceived by many as being 
  disastrous: 2003 has been a year of considerable social unrest, with many 
  strikes and demonstrations as people not only complain of low salaries and 
  pensions but also demand the payment of arrears.</span></p>
  <p align="justify"><span lang="EN-GB">63.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On the monetary side, BH has been successful. The currency board system that 
  has been operational since 1997 has resulted in a trusted and stable currency. 
  Thus, the Central Bank of BH, one of the few State-level institutions created 
  by Dayton</span><a href="#_ftn20" name="_ftnref20" title><span lang="EN-GB">[20]</span></a><span lang="EN-GB">, 
  is currently enjoying substantial foreign currency reserves, which could 
  provide about three months of import cover. The KM has enjoyed remarkable 
  stability against the Deutsche Mark and now the Euro, having remained fully 
  convertible since its introduction, and the inflation rate in BH is low and 
  stable, hovering in the 0.7 to 0.9 percent range since 2001. </span></p>
  <p align="justify"><span lang="EN-GB">64.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Gross Domestic Product (GDP) has risen consistently since 1997 and official 
  per capita GDP is now estimated at around 1,800 USD. At the same time, the 
  data suggest that annual real GDP growth is around 5%. Economic growth, 
  however, has slowed down to 3.3% in 2002, which is lower than in most other 
  countries in the region, and well below the 6% necessary to return to the 1991 
  GDP level&#133; by 2010.</span></p>
  <p align="justify"><span lang="EN-GB">65.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  As far as public finances are concerned, a positive trend has been recorded in 
  all three levels of government in BH. While the State budgets have almost 
  always been balanced, the Entity deficits of the 1990s have been all but 
  eliminated. However, the various external obligations of BH amount to some 50 
  percent of GDP.&nbsp; More worrying is the growing current-account deficit 
  that BH has been recording on a consistent basis since the end of the war. 
  This deficit totalled more than 2,000 million USD in 2002 alone &#150; an 
  equivalent of some 40 percent of GDP. The deficit is indicative of the ailing 
  domestic industrial base and its lack of competitiveness both at home and 
  abroad. </span></p>
  <p align="justify"><span lang="EN-GB">66.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Although international aid is diminishing, it still makes up around 9% of GDP, 
  so any further reduction of foreign aid would cause serious problems. The 
  country also relies to a great extent on frequent money transfers from 
  citizens living abroad, which reach the aggregate amount of around 7% of GDP. 
  Public expenditures are excessive (56% of GDP), while the allocations for 
  salaries of the administration make up its largest part. More than half the 
  companies are still state-owned and privatization has not been a success so 
  far. Furthermore, audits carried out at the request of the HR have highlighted 
  considerable mismanagement<a href="#_ftn21" name="_ftnref21" title>[21]</a> of 
  public utilities in both Entities, if not downright siphoning of their 
  resources by political parties<a href="#_ftn22" name="_ftnref22" title>[22]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">67.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Unemployment, according to the official data, is around 41 %. The trade 
  deficit is high, which threatens the macro-economic stability of the country: 
  BH is importing four times more than it exports. The investment climate is 
  still not good enough to attract more significant foreign investments.</span></p>
  <p align="justify"><span lang="EN-GB">68.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  There are also wide variations in the development level between the Entities, 
  cantons and municipalities. This obstructs development and presents a threat 
  to the political stability of the country. Spending on defence and security is 
  still high (around 10.5% of GDP). Public services are inefficient, 
  characterized by high level of corruption. The social protection system is 
  inadequate and ineffective and soldiers and other war victims have priority 
  over the general population<a href="#_ftn23" name="_ftnref23" title>[23]</a>. 
  We were also told that the country suffers worryingly from a brain drain: many 
  of those who emigrated to foreign countries were educated people and a large 
  part of the youth<a href="#_ftn24" name="_ftnref24" title>[24]</a> sees no 
  future in BH. We have seen long queues in front <i>inter alia</i> of the 
  Austrian embassy in Sarajevo and we were told that around 100,000 requests for 
  visas are submitted every year. Finally, for those that study abroad and would 
  like to come back, the procedure to obtain recognition of their diplomas and 
  qualifications is long, complicated and costly.</span></p>
  <p align="justify"><span lang="EN-GB">69.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Eight years after the end of the war, BH is&nbsp; far from having a functional 
  market economy: to date the country still has three separate customs 
  administrations<a href="#_ftn25" name="_ftnref25" title>[25]</a> and VAT will 
  only be introduced in 2006. Exports, in particular of agricultural products, 
  are hampered by the fact that there are no credible state level agencies for 
  quality supervision and certification<a href="#_ftn26" name="_ftnref26" title>[26]</a>. 
  International transport of goods is difficult<a href="#_ftn27" name="_ftnref27" title>[27]</a> 
  and free trade agreements concluded with neighbouring countries make it 
  cheaper to import goods than to produce them locally.&nbsp; The industrial 
  capacity is outdated and not competitive.</span></p>
  <p align="justify"><span lang="EN-GB">70.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The transition to a market economy is to a great extent slowed down by the 
  institutional complexity in BH (see below). We believe however that creating a 
  single economic space throughout BH is a necessity and should be a top 
  priority for the domestic authorities.&nbsp; </span></p>
  <p align="justify"><b><span lang="EN-GB"><a name="3t" href="#3">III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BUILDING A COMMON FUTURE WITHIN THE DAYTON FRAMEWORK</a></span></b></p>
  <p align="justify"><b><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  INSTITUTIONAL COMPLEXITY OF THE DAYTON PEACE AGREEMENT</span></b></p>
  <p align="justify"><span lang="EN-GB">71.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BH declared its independence from FRY in 1992, the Federation of BH was 
  created following the Washington agreement in 1994 and the present state of BH 
  is a result of the 1995 Dayton peace agreement The DPA comprises 11 Annexes, 
  including the State Constitution (Annex 4) and other provisions designed to 
  build a peaceful, stable country.</span></p>
  <p align="justify"><span lang="EN-GB">72.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Peace Agreement established Bosnia and Herzegovina as a state comprising 
  two Entities, each with a high degree of autonomy: the Republika Srpska (RS) 
  and the Federation of BH. It has often been said that the DPA ended the war 
  but froze the conflict, that it acknowledged the forceful division of the 
  country, by referring to the three constituent people, and that the 
  institutions it provides for are totally unsuited to the development of a 
  functioning democracy based on the rule of law. This is probably unfair but it 
  is true that the institutional framework foreseen in the DPA is extremely 
  complex. </span></p>
  <p align="justify"><span lang="EN-GB">73.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  In short, BH can be defined as an international <i>de facto</i> 
  semi-protectorate in which the international authorities intervene when 
  necessary. It is one of the most decentralised states in Europe. The following 
  formula is sometimes used to sum it up: OneState, 2 Entities, 3 constituent 
  people, around 4 million inhabitants, 5 levels of authority<a href="#_ftn28" name="_ftnref28" title>[28]</a> 
  and at least 6 international organisations taking care of everything.</span></p>
  <p align="justify"><span lang="EN-GB">74.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The State of BH is composed of two Entities and one District: </span></p>
  <ul type="disc">
    <li>
    <p align="justify"><span lang="EN-GB">the Republika Srpska (RS), whose 
    territory is located in the north-western part and in the eastern part of BH;</span></li>
    <li>
    <p align="justify"><span lang="EN-GB">a Federation of 10 cantons, grouping 
    mainly Croats and Bosniaks. This entity is called the Federation of BH (FBH);</span></li>
    <li>
    <p align="justify"><span lang="EN-GB">the District of Brcko, which has a 
    special statute since the 8 March 1999 arbitration award (see above). </span>
    </li>
  </ul>
  <p align="justify"><span lang="EN-GB">75.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The quasi-independence of the Entities, the weakness of the State and the 
  constitutional necessity to ensure full equality at every level between the 3 
  constituent people have led to a situation where around 60 percent of the GDP 
  is spent on maintaining state and entity apparatus: there are 14 
  prime-ministers,&nbsp; over 180 ministers, 760 members of various legislative 
  bodies, 148 municipalities, 2 to 3 armies and 3 official languages with two 
  alphabets. </span></p>
  <p align="justify"><span lang="EN-GB">76.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Each Entity has its own Constitution, Government and bi-cameral Parliament, 
  its own army, its own judiciary (including supreme and constitutional courts) 
  and legal system as well as its own education system and tax and customs 
  system. In the Federation the situation is even more complicated: each canton 
  also has its own constitution, government and cantonal assembly and exclusive 
  competences, for example in the field of education of or internal affairs.</span></p>
  <p align="justify"><b><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE CONSTITUTIONAL DOGMA OF EQUALITY BETWEEN CONSTITUENT PEOPLE</span></b></p>
  <p align="justify"><span lang="EN-GB">77.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 19 April 2002 a constitutional reform was enacted in both Entities on the 
  basis of the Mrakovica-Sarajevo Agreement concluded under the auspices of the 
  High Representative, by the main political parties in the country. The crux of 
  the reform was to revise the constitutions of the Federation and the Republika 
  Srpska (RS) in accordance with the landmark decision issued in 2000 by the BH 
  Constitutional Court in the constituent peoples&#146; case. </span></p>
  <p align="justify"><span lang="EN-GB">78.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The constitutional amendments aimed at giving equal status to the Bosniaks, 
  Croats and Serbs in both Entities. In other words, as of the date of this 
  reform, the RS is not exclusively a Serb entity anymore, the same applying to 
  the Federation in the sense that it is not solely Bosniak and Croat.&nbsp; 
  This reform aimed at ensuring a fairer distribution of posts among the 
  constituent peoples in the Entities&#146; governments, the administration and the 
  judiciary. At the same time it also provided for a complex mechanism to allow 
  representatives of one constituent people to invoke the vital interests&#146; 
  clause, under a procedure involving the Parliament&#146;s House of Peoples in each 
  entity. </span></p>
  <p align="justify"><span lang="EN-GB">79.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  According to the corresponding accession commitment, this decision has been 
  partly implemented: the House of Peoples in the Federation for example still 
  lacks seven Serb delegates. &nbsp;Equality before the law of each constituent 
  people has however led to collective rights being put before every 
  individual&#146;s right in the country. We consider the constitutional 
  discrimination of so-called &#147;Others&#148; as being very questionable: all other 
  people other than Bosniak, Croat or Serb are simply called &#147;Others&#148; in the 
  Constitution. They include not only minorities such as Jews or Roma but also 
  everybody who does not wish to define him or herself as belonging to one of 
  the three so-called &#147;constituent&#148; people. &nbsp;</span></p>
  <p align="justify"><span lang="EN-GB">80.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Given the high number of mixed marriages before the war, a high number of 
  people in BH have had to choose to define themselves as Bosniak, Croat or 
  Serb. &#147;Others&#148; cannot stand for election to, for example, the State Presidency<a href="#_ftn29" name="_ftnref29" title>[29]</a>. 
  Reviewing the electoral legislation within one year of accession in the light 
  of Council of Europe standards was an accession commitment. It has not been 
  fulfilled. We note with satisfaction, however, that in view of the October 
  2004 local elections, the Federation Constitution was amended on 14 April 2004 
  to allow for direct election of municipal mayors for a four year term<a href="#_ftn30" name="_ftnref30" title>[30]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">81.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Apart from electoral discrimination we also regret that &#147;Others&#148; have access 
  to jobs in the public service only if a member of one of the constituent 
  people steps down in their favour or if no suitable candidate is found. Since 
  the affiliation to any of the three constituent people is based solely on 
  self-declaration, one could very well apply to one position claiming to be a 
  Serb and to another claiming to be a Croat or a Bosniak. It is to be noted in 
  this connection that the legislation does not give any definition of 
  ethnicity, maybe because, apart from religion, there is no fundamental 
  difference between a Croat, a Serb or a Bosniak.</span></p>
  <p align="justify"><span lang="EN-GB">82.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  This has led to posts being distributed on a purely party affiliation basis, 
  either on a total equality basis<a href="#_ftn31" name="_ftnref31" title>[31]</a> 
  or based on the ethnic proportional key as defined by the 1991 census. The 
  constant fighting for posts and the squabbles about fair distribution and 
  respect for each constituent people&#146;s rights have led to a complete 
  sterilization of political debate and to complete disregard of the notion of 
  the common interest of the country as a whole. The general attitude of most 
  political parties is: each constituent people&#146;s interests<a href="#_ftn32" name="_ftnref32" title>[32]</a> 
  whenever possible, State building when unavoidable and power at all times. We 
  strongly believe this attitude has to change, for the benefit of all the 
  people living in this country.</span></p>
  <p align="justify"><b><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  SHOULD THE DAYTON CONSTITUTION BE CHANGED?</span></b></p>
  <p align="justify"><span lang="EN-GB">83.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Until recently, it would have been impossible to even mention the possibility 
  of changing the Dayton constitution. Both Entities, for different reasons, 
  were adamantly claiming that Dayton and only Dayton should regulate their 
  relations with the very weak state level institutions. Both wanted to keep all 
  the sovereign parallel structures that had been created during the war or 
  immediately afterwards. This has changed: when we met in May 2003 with RS 
  President Cavic for example, he was ready to discuss defence reform and the 
  possibility of placing the RS army under state level command. This is a very 
  welcome development. </span></p>
  <p align="justify"><span lang="EN-GB">84.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  There is now an ongoing debate among political circles<a href="#_ftn33" name="_ftnref33" title>[33]</a> 
  and intellectuals in the country and it seems widely acknowledged that there 
  are too many levels of authority, that the institutional set-up is far too 
  complicated and that something needs to be done. How to proceed and what model 
  to choose for the future are still big questions. The debate has also been 
  fuelled by a reflection on the role of the HR: some western think tanks 
  produced very critical reports during 2003 on his exercise of his powers and 
  on the absence of a clear exit strategy of the international community<a href="#_ftn34" name="_ftnref34" title>[34]</a>.&nbsp;
  </span></p>
  <p align="justify"><span lang="EN-GB">85.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Structural complexity and numerous levels of authority exist in other European 
  states. Such systems can work as long as there is a clear agreement on who 
  does what, when and how. Without a minimum amount of trust, a willingness to 
  achieve consensus and, most importantly, a sense of common interest, any 
  complex system such as the one existing in BH is bound to fail. For our part, 
  we think that it is up to the people of BH (all the people, not just the three 
  constituent peoples) to decide how best to organize the country. Any proposal 
  for change should come from within, not from outside. The time is probably not 
  yet ripe: all political forces agree on the common goal of European 
  integration but there is still not enough trust and confidence and the 
  compromise making process remains slow and painful.</span></p>
  <p align="justify"><b><span lang="EN-GB">D.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <b>TAKING OVER OWNERSHIP OF THE ELECTION PROCESS: THE OCTOBER 2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  ELECTIONS</b></span></p>
  <p align="justify"><span lang="EN-GB">86.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  According to Articles II and III of Annex 3 to the DPA, the OSCE was given the 
  primary responsibility for organizing and supervising elections. Six rounds of 
  elections were thus organized between 1996 and 2002: general elections on 
  September 1996, 12-13 September 1998 and 11 November 2000, municipal elections 
  on 13-14 September 1997 and 8 April 2000, as well as special election for the 
  RS national assembly in November 1997.</span></p>
  <p align="justify"><span lang="EN-GB">87.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The 2002 general elections were the first to be organized mainly by the 
  Bosnians themselves and not directly by OSCE. This was a major development in 
  the so-called ownership process. They were also the first to provide for a 4 
  year term of office at every level. General elections took place on 5 October 
  2002.&nbsp; Elections were conducted for the BH Presidency, BH House of 
  Representatives, Republika Srpska (RS) Presidency, RS National Assembly, 
  Federation House of Representatives, the 10 Cantonal Assemblies, and &#142;epce 
  Municipal Assembly.&nbsp; </span></p>
  <p align="justify"><span lang="EN-GB">88.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  A total of 57 political parties, nine coalitions and three independent 
  candidates presented themselves.&nbsp; Some 514 international monitors, 
  including a delegation of the Parliamentary Assembly<a href="#_ftn35" name="_ftnref35" title>[35]</a>, 
  and 6,909 local monitors observed the elections. According to the ODIHR 
  International Election Observation Mission, elections &#147;were largely in line 
  with international standards considering the country&#146;s unique constitutional 
  framework.&#148;&nbsp; Despite substantial efforts to encourage voting, however, 
  the voter turnout was low at 53.94% (turnout in the 2000 elections was around 
  65%).&nbsp; </span></p>
  <p align="justify"><span lang="EN-GB">89.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Representatives of the SDA, SDS, and the HDZ, won the Bosniak, Serb, and Croat 
  seats in the three-member BH Presidency. At the State level, and in the 
  elections for the Entity parliaments, the HDZ and SDS saw their vote drop 
  slightly, while the SDA increased its vote by five percentage points. Zlatko 
  Lagumdzija&#146;s Social Democratic Party (SDP), the leading party of the ruling 
  moderate coalition (Alliance for Change) at the State and Federation level 
  that had been in power since 2000 lost the biggest share of votes when it 
  dropped from 27.3% to 16.2%.</span></p>
  <p align="justify"><span lang="EN-GB">90.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The low turnout represented no doubt a protest at the slow pace of reform in 
  BH, directed above all at punishing the parties that had been in government 
  for the last two years. A degree of election fatigue was undoubtedly at play 
  as well, as BH voters were called to the polls for the sixth major election in 
  only six years. In an encouraging development, the main campaign issue in this 
  election, for all parties including the three nationalist ones, was reform, 
  not nationalism. </span></p>
  <p align="justify"><span lang="EN-GB">91.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  During the lengthy process of government formation<a href="#_ftn36" name="_ftnref36" title>[36]</a>, 
  the High Representative made it clear that the International Community (IC) 
  would judge the new governments by their commitment to genuine reform, which 
  should be demonstrated by a focus on programs and actions, rather than 
  personalities and individuals. He has been harshly criticized on occasions for 
  &#147;collaborating&#148; with those same parties that were in power during the war, but 
  his answer has always been that in a genuine democracy, respect has to be paid 
  to the free will of the people and that the three parties in question (SDA for 
  the Bosniaks, HDZ for the Croats and SDS for the Serbs) now had a chance to 
  prove they had changed<a href="#_ftn37" name="_ftnref37" title>[37]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">92.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  On 10 October 2002, the High Representative set out a &#147;Jobs and Justice&#148; 
  agenda of six reforms to be undertaken during the first six months of the 
  newly elected governments<a href="#_ftn38" name="_ftnref38" title>[38]</a>. He 
  has also published a Mission Implementation Plan which sets out in detail his 
  agenda for reform and at what stage of implementation the national authorities 
  could be considered as being able to assume full responsibility.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">1.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <b>The problem of dual citizenship</b></span></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">93.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Article 1.7(d) of the Constitution of Bosnia and Herzegovina provides, <i>
  inter alia</i>, that &quot;Citizens of Bosnia and Herzegovina may hold the 
  citizenship of another state, provided that there is a bilateral agreement 
  between Bosnia and Herzegovina and that state governing this matter&#148;. Article 
  39 (1) of the Law on Citizenship of Bosnia and Herzegovina of 1999 provided,
  <i>inter alia</i>, that &#147;All persons who before the entry into force of this 
  law voluntarily acquired another citizenship lose the citizenship of BiH, if 
  they do not, within 5 years from the date this law enters into force, renounce 
  the other citizenship, unless a bilateral agreement provides otherwise.&#148;</span></p>
  <p align="justify"><span lang="EN-GB">94.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Notwithstanding efforts made by the Ministry for Civil Affairs and 
  Communications on approaching various countries regarding the conclusion of 
  dual citizenship agreements, only one such agreement has been signed to date, 
  with Serbia-Montenegro, and there was consequently a high risk of a number of 
  people losing their BH citizenship by January 2003. On 31 December 2002, the 
  HR therefore enacted the law on amendments to the law on citizenship, which 
  had been passed only by the House of Representatives, to extend the deadline 
  for concluding bilateral agreements on dual citizenship to 2013. This law was 
  later passed by the State parliament on 13 February 2003. We regret this very 
  long extension of the deadline as this enables citizens from BH to also vote 
  at elections held in Croatia and Serbia-Montenegro. We find it strange that 
  the three people who have the status of &#147;constituent&#148; people in 
  Bosnia-Herzegovina and the citizenship of that country can vote in the 
  neighbouring countries for so-called diaspora seats.</span></p>
  <p align="justify"><b><span lang="EN-GB">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  UNDEMOCRATIC REFORMS OF DEMOCRATIC INSTITUTIONS: THE ROLE OF THE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  HIGH REPRESENTATIVE</span></b></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Function and role of the HR</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">95.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  There are numerous international organizations present in Bosnia-Herzegovina. 
  To mention but a few, all of whom have offices or delegations in the country: 
  IMF, World Bank, OSCE<a href="#_ftn39" name="_ftnref39" title>[39]</a>, UNHCR, 
  UNDP, European Union, Council of Europe, plus a large number of NGO&#146;s. The 
  Office of the High Representative (OHR) is, however, the chief civilian peace 
  implementation agency in Bosnia and Herzegovina. The mandate of the High 
  Representative is set out in Annex 10 of the DPA. It declares him the final 
  authority in theatre to interpret the agreement on the civilian implementation 
  of the peace settlement. The High Representative has no authority over the 
  NATO-led military Stabilization Force (SFOR).</span></p>
  <p align="justify"><span lang="EN-GB">96.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  The Steering Board of the Peace Implementation Council (PIC), a group of 55 
  countries and international organizations that sponsor and direct the peace 
  implementation process, nominates the High Representative<a href="#_ftn40" name="_ftnref40" title>[40]</a> 
  and has subsequently elaborated on his mandate. The United Nations Security 
  Council, which approved the Dayton Peace Agreement and the deployment of 
  international troops in Bosnia and Herzegovina, then endorses him. The OHR is 
  funded by the PIC<a href="#_ftn41" name="_ftnref41" title>[41]</a>.&nbsp;
  </span></p>
  <p align="justify"><span lang="EN-GB">97.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Under Annex 10, the OHR has the same status as a diplomatic mission to Bosnia 
  and Herzegovina. It is made up of diplomats seconded by the governments of the 
  PIC countries, international experts hired directly, and national staff from 
  Bosnia and Herzegovina. In January 2004, the OHR employed 108 internationals 
  and 467 national contractors.</span></p>
  <p align="justify"><span lang="EN-GB">98.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Among the most important milestones in the peace implementation process was 
  the PIC Conference in Bonn in December 1997. Elaborating on Annex 10 of the 
  Dayton Peace Agreement, the PIC requested the High Representative to remove 
  from office public officials who violate legal commitments and the Dayton 
  Peace Agreement, and to impose laws as he sees fit if Bosnia and Herzegovina&#146;s 
  legislative bodies fail to do so. These are called the&#148; Bonn&#148; powers.</span></p>
  <p align="justify"><span lang="EN-GB">99.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  So far, removals or suspensions from office have concerned (at 15 May 2004), 
  since 1998, a total of 139 individuals including judges, civil servants and 
  elected officials both at entity or State level (members of the Presidency, 
  ministers, parliamentarians or mayors ), accompanied by decisions to freeze 
  individual bank accounts. These individual decisions are taken without the 
  person concerning being previously heard and, in some cases, the banning on 
  holding office is imposed for life. Furthermore the decisions taken by the 
  High Representative are final and cannot be appealed before any court in BH or 
  elsewhere. Following the October 2002 general elections, the High 
  Representative also decided to submit all candidates proposed by the political 
  parties for major ministerial positions, both at Entity and State level, to a 
  vetting procedure. The HR also nominates post holders to major judicial 
  functions such as the State level prosecutor&#146;s office. We note however a 
  welcome trend to diminish this practice, which is very questionable from the 
  point of view of due process: 21 individuals were dismissed in 2002 and &#147;only&#148; 
  seven in 2003.</span></p>
  <p align="justify"><span lang="EN-GB">100.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Since 
  1997, to take the example of laws imposed in the field of State symbols, State 
  level matters and constitutional issues, the High representative has imposed a 
  total of 67 laws, amending <i>inter alia</i> the State&#146;s and Entities&#146; 
  Constitutions on a number of occasions or imposing the Law on the composition 
  and functioning of the Council of Ministers, following the October 2002 
  elections. Here again, the HR has become less intrusive: 28 laws were imposed 
  in 2002 and only half that number in 2003. Although this seems to indicate a 
  welcome increase in the process of ownership, it remains to be seen whether 
  the national authorities are willing and able to take over legislative and 
  constitutional activities. Today the High Representative is still resorting to 
  threats rather too often to get things done.</span></p>
  <p align="justify"><span lang="EN-GB">101.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To 
  quote Lord Paddy Ashdown, the powers afforded to the HR by the DPA would make 
  any liberal blush. We believe that in any democracy, the exercise of such 
  extensive legislative, executive and even judicial powers by one single person 
  would be unheard of. Granting such powers was justified by emergency but they 
  lose legitimacy with the passing of time.</span></p>
  <p align="justify"><span lang="EN-GB">102.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We 
  consider that, more than two years after accession to the Council of Europe, 
  the time has come to define a clear strategy for transferring responsibilities 
  from the High Representative to domestic authorities. The question indeed 
  arises as to the extent to which the current role of the HR is compatible with 
  membership of BH in the Council of Europe. Full ownership is crucial for the 
  country becoming a credible candidate for further integration into European 
  structures. For the political parties to rely on the High Representative to 
  impose unpopular reforms instead of doing things themselves will not improve 
  their credibility with voters.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Imposing reforms of state institutions</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">103.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 3 
  December 2002, the day of the inaugural session of the State Parliament, which 
  we attended<a href="#_ftn42" name="_ftnref42" title>[42]</a>, the HR imposed a 
  Law on the Council of Ministers. The law established a permanent Chair of the 
  Council of Ministers (CoM) and 8 Ministries, compared with the 6 existing 
  before.&nbsp; Two of the Ministers are nominated as Deputy Chairs of CoM. 
  There is no longer a rotation of the Chair Further there will be only one 
  Deputy Minister and not two. At State level, BH now has a Minister of Foreign 
  Affairs, a Minister of Foreign Trade and Economic Relations, a Minister of 
  Finance and Treasury, a Minister of Communications and Transport (splitting of 
  the former Ministry for Civil Affairs and Communications, MCAC), a Minister of 
  Civil Affairs (also split, formerly MCAC), and a Minister of Human Rights and 
  Refugees. Two new ministerial posts were created: a Minister of Justice and a 
  Minister of Security. The Ministry of European Integration became a 
  Directorate under the authority of the Chair of the CoM. A Defense Ministry 
  was created in December 2003 (see below, defence reform).</span></p>
  <p align="justify"><span lang="EN-GB">104.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  tri-partite Presidency<a href="#_ftn43" name="_ftnref43" title><sup><sup>[43]</sup></sup></a>, 
  composed of a representative, directly elected by the people, of each of the 
  three constituent peoples, still functions in accordance with the rotation 
  principle: every eight months, the Chairmanship of the Presidency changes. 
  Following the 2002 elections, the first disagreements between the members of 
  the Presidency concerned the question of who should finance the lawsuit BH is 
  filing against Yugoslavia before the International Court of Justice in the 
  Hague (i.e. whether or not this should be financed via the Presidency&#146;s 5.7 
  million KM budget for 2003), the pending discussions with Croatia concerning 
  dual citizenship and the celebration of the National day on 25th November, 
  which the Serb member refused to attend.</span></p>
  <p align="justify"><span lang="EN-GB">105.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  Parliamentary Assembly (Parliament) comprises a House of Peoples, made up of 
  15 delegates, and a House of Representatives, with 42 members. Its powers 
  relate mainly to the State budget, ratification of treaties and all other 
  matters that the Entities assign to it (Article IV, paragraph 4 of the 
  Constitution)<a href="#_ftn44" name="_ftnref44" title>[44]</a>. The HR had 
  imposed a law on conflict of interest on 23 May 2002, ahead of the elections. 
  We are pleased to note that this law, which regulates the responsibilities of 
  elected and appointed officials and defines incompatible positions at all 
  levels of power in the BiH institutions, has been fully implemented by the BH 
  Election Commission: in 96% of the cases where the BiH EC has established 
  incompatibility of office, the officials decided to resign from their elected 
  positions. The HR also imposed on 7 October 2002 three decisions at all levels 
  enacting the laws on immunity. This should contribute to stopping the often 
  unhealthy mingling of business and politics. </span></p>
  <p align="justify"><span lang="EN-GB">106.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Both 
  Parliament and the Council of Ministers have been criticized because of their 
  relatively poor performance, compared with other countries in transition: in 
  2003, the BH Parliament adopted a total of only 55 laws, of which 20 had been 
  previously imposed by the HR. Although some progress has been noted, the same 
  applies to the Council of Ministers, which does not meet often enough. It is 
  to be noted however that according to the DPA, State level institutions have 
  very limited powers and attributions, are funded by entity contributions only 
  and have limited administrative capacity. </span></p>
  <p align="justify"><b><span lang="EN-GB"><a name="4t" href="#4">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  TAKING OVER OWNERSHIP OF THE STATE BUILDING PROCESS</a></span></b></p>
  <p align="justify"><span lang="EN-GB">107.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Laws 
  imposed by the HR are usually imposed on a provisional basis: they enter into 
  force immediately but have to be formally passed by both houses of 
  parliaments, be it at state or entity level, without any possibility of 
  amending them, to become part of domestic law. It is only natural that this 
  creates considerable frustration in the parliaments, who are basically just 
  rubber-stamping legislation they have not elaborated themselves. In 2003, 
  instead of imposing laws from above as before, the HR, in agreement with the 
  main political forces in the country, completely changed the decision making 
  process. A number of very important reforms were thus carried out in 2003 in 
  very sensitive fields such as defence reform, intelligence service, education 
  system, or in the economic field. These reforms would have been unimaginable a 
  few years ago and represent remarkable progress.</span></p>
  <p align="justify"><span lang="EN-GB">108.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  the course of 2003, the HR decided to create joint commissions, chaired by an 
  international expert and composed of national and international experts as 
  well as members of all main political forces at state and entity level. These 
  Commissions have drafted legislation for adoption by the State parliament, 
  following which the Entities agreed to make amendments to their legislation, 
  including constitutional changes, so as to transfer a number of their 
  competences to the State level. With the exception of the Commission for the 
  reforming of Mostar, this has worked and seems to indicate a new willingness 
  to reach consensus and compromise on issues vital for the future of the 
  country. Other initiatives have concerned the drafting of Framework laws at 
  state level, which was a novelty, or the direct involvement of civil society 
  in the decision making process. This process has enabled parliaments at all 
  three levels to participate to some extent in the drafting process, since 
  amendments could (at least theoretically) be tabled to the various laws put 
  before them.</span></p>
  <p align="justify"><b><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  DEFENCE REFORM</span></b></p>
  <p align="justify"><span lang="EN-GB">109.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  According to the DPA and the BH Constitution contained therein, defence and 
  military questions were within the jurisdiction of the two Entities and not of 
  the State. The armed forces consist of the Army of the Federation of BH and 
  the Army of the Republika Srpska. The Federation army consists of two 
  components, a Bosniak one and a Croat one. Ensuring the forces are 
  (theoretically) under civilian control, each entity has a Ministry of Defence. 
  Also, the three members of BH Presidency serve as the Supreme Commanders of 
  the armed forces in BH. </span></p>
  <p align="justify"><span lang="EN-GB">110.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Although steady personnel reductions over the past years helped to bring the 
  number of troops down &#150; especially from a 1995 end-of-war estimate of 430,000 
  &#150; in a country of 4 million people, supporting 20,000 troops (estimate for the 
  end of 2003) is a great economic burden when levels of unemployment reach 
  (officially) 40 percent in BH and when the BH defence budget is approximately 
  10 percent of the country's Gross Domestic Product (GDP). Severance pay which 
  will have to be given to demobilized soldiers (between 6&nbsp;000 and 10&nbsp;000 KM 
  each) will be a further burden on the Entities&#146; budgets.</span></p>
  <p align="justify"><span lang="EN-GB">111.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To 
  restructure the armed forces in BH aiming at compatibility with international 
  standards and procedures, in particular with regard to the principles of 
  democratic control of defence forces and transparency in defence planning and 
  budgeting was an accession commitment. A series of events in 2002 enabled this 
  process to be accelerated. </span></p>
  <p align="justify"><span lang="EN-GB">112.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  mid-October 2002, SFOR obtained documents showing that the state-owned ORAO 
  aviation institute in RS had sold arms to Iraq in violation of the UN embargo, 
  in co-operation with Yugo-import in FRY. The RS Defence Minister and the army 
  chief of staff resigned, 3 ORAO managers were prosecuted. The recently elected 
  Bosnian Serb Member of the BH Presidency Mirko &#138;arovic also resigned on 2 
  April 2003 following discussions with the High Representative, who had 
  repeatedly called on him, as President of the RS (his previous function), to 
  bear political responsibility for the fact that the ORAO military institute 
  had signed arms contracts with Iraq, thus contravening UN Security Council 
  resolutions. It also turned out around the same time that the RS Army had been 
  spying on BH institutions and the international community.</span></p>
  <p align="justify"><span lang="EN-GB">113.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One 
  of the first consequences of the ORAO affair was the decision that by 15 
  November 2002 only the State Ministry for Foreign Trade and Economic Relations 
  would be competent to issue permits for import and export of arms and military 
  equipment. On 13 February 2003, the BH Parliament then passed a law on the 
  control of imports and exports of weapons.</span></p>
  <p align="justify"><span lang="EN-GB">114.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 2 
  April 2003, in the wake of &#138;arovic&#146;s resignation, the HR introduced a package 
  of military reform measures.&nbsp; These measures addressed the systemic 
  weaknesses in civilian control over the entity armed forces, and were designed 
  to strengthen state-level command and control, as had been requested by the 
  Assembly in 2002. In particular, the HR abolished the Supreme Defence Council 
  of Republika Srpska for failing to prevent the violation of UN resolutions and 
  passed decisions amending certain provisions of the Entity constitutions, the 
  RS Laws on Defence and the Army and the Federation Law on Defence, removing 
  references that either declare or infer that the Entities are sovereign states 
  in their own right.&nbsp; These decisions were aimed at strengthening 
  state-level command and control of BH&#146;s armed forces and at harmonizing the 
  entity constitutions with the BH constitution in military matters.</span></p>
  <p align="justify"><span lang="EN-GB">115.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Although most RS political parties strongly opposed the creation of a state 
  level defence responsibility and the unification of the entity armies, in May 
  2003 Paddy Ashdown issued a decision establishing a Defence Reform Commission 
  (DRC). The Commission's mandate was to reach an agreement on the legal 
  requirements to reform the defence structures in BH and propose legislation 
  and other legal instruments in accordance with basic principles and in line 
  with modern European practice. </span></p>
  <p align="justify"><span lang="EN-GB">116.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 25 
  September, the Defence Reform Commission agreed on its Final Report, which 
  established the way forward to codifying the respective armed forces in BH 
  under the administrative and operational command of a State level defence 
  structure.&nbsp; The Defence Ministries of both Entities agreed that their 
  respective armies will work under the BH flag and wear the same uniform.&nbsp; 
  They have also set about reducing the number of military personnel from 19,000 
  to 12,000 and the reserves from 240,000 to 60,000, (downsizing of both the 
  military personnel and reserves would be divided between the FBH and RS in 
  accordance with the 2:1 ratio set out in the Defence Policy), the training for 
  recruits is reduced from six to four months and the number of people working 
  for the entity defence ministries is reduced by 25 per cent.&nbsp; The reform 
  will also introduce a joint system of ranks and salaries, ethical standards 
  and rules of service. </span></p>
  <p align="justify"><span lang="EN-GB">117.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  draft legislation on defence reform was then submitted for parliamentary 
  procedure and its adoption in December 2003 represents a crucial step for BH 
  towards membership in the NATO Partnership for Peace (PfP) program.&nbsp;
  </span></p>
  <p align="justify"><span lang="EN-GB">118.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  benefits of Partnership for Peace membership are many. NATO has assisted 
  Partner countries in improving their defence and security capacities in 
  numerous areas. Beyond such tangible benefits, an invitation to Partnership 
  for Peace signals an acceptance by NATO and member nations that a country has 
  been accepted into an association of like-minded democratic nations. An 
  invitation also reflects a strengthened political legitimacy, with favourable 
  implications for the political and economic viability of an emerging 
  democracy. </span></p>
  <p align="justify"><span lang="EN-GB">119.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Both 
  Entities applied as early as 1997 for membership in NATO&#146;s Partnership for 
  Peace but former NATO Secretary General George Robertson has repeated on a 
  number of occasions (in particular at the NATO summit in Prague on 20-21 
  November 2002) that it would be impossible for NATO to accept a country that 
  still has two, if not three, different armies: accession to the Partnership 
  for Peace is out of the question until a common military structure is created 
  at State level, with a state ministry responsible for defence. He has also 
  stated that full co-operation with the ICTY is a prerequisite for joining.
  </span></p>
  <p align="justify"><span lang="EN-GB">120.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We 
  have also learned that in the near future (end of 2004) the European Union 
  might take over from the NATO led SFOR. From 60,000 troops in 1995, the IFOR 
  and then SFOR have been downsized to around 12,000 soldiers. Most local 
  politicians we met want the US to stay on and do not trust the EU&#146;s capacity 
  to maintain security in BH.</span></p>
  <p align="justify"><span lang="EN-GB">121.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Although the overall security situation is very good, it is generally accepted 
  that an international military presence is still necessary a) because there 
  are still many &#147;harvest&#148; operations to be conducted to collect and destroy the 
  weapons in possession of the population, b) because of attacks on returnees 
  and c) because Ashdown&#146;s authority depends to a large extent on SFOR. In 
  particular it is SFOR which carries out searches and seizures in private as 
  well as public companies or buildings and which arrests people suspected of 
  terrorism<a href="#_ftn45" name="_ftnref45" title>[45]</a> or war crimes.
  </span></p>
  <p align="justify"><span lang="EN-GB">122.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  Defence law entered into force on 5 January 2004. This is a major success but 
  needs to be implemented quickly. Again, setting up the necessary structures 
  and institutions at state level has taken an inordinate amount of time: it 
  took the main political parties (SDA, HDZ and SDS) about a month to agree to 
  the fact that the first Defence Minister should be a Serb and another two 
  months to find a suitable candidate that would be a credible partner for the 
  IC. Finally, after two candidatures were rejected by the IC, the new 
  state-level Defence Minister, Nikola Radovanovic was appointed on 15 March 
  2004: he is a Serb but not a member of any Serb political party, has no 
  wartime past, studied abroad, and has professional experience in the field.
  </span></p>
  <p align="justify"><span lang="EN-GB">123.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SFOR 
  also took over responsibility for vetting the fifteen future generals to be 
  appointed at state level. This proved problematic and was a source of 
  considerable argument between the IC and the domestic authorities: while the 
  five Serb candidates were approved of without any problem, six Bosniaks and 
  four Croats did not pass the test, it seems without any reasons given by the 
  IC to the authorities. At the time of writing this report (15 May 2004), this 
  appointment process is still not terminated. In any event, this law has to be 
  implemented also at Entity level and this is not done yet<a href="#_ftn46" name="_ftnref46" title>[46]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">124.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On a 
  more positive note however, we welcome the fact that, on 21 April 2004, in 
  response to a common request made by BiH Prime Minister Adnan Terzic, RS Prime 
  Minister Dragan Mikerevic and FBiH Prime Minster Ahmet Hadzipasic the High 
  Representative Paddy Ashdown amended the Entities&#146; and BH&#146;s Civil Service Laws 
  allowing Civil Servants to move from Entity to State Ministries. This is an 
  essential part of the process of giving the new state institutions the 
  resources they need.&nbsp; It is particularly important for the process of 
  defence reform, as it will free up defence officials at the entity level to 
  move to positions at the State level.</span></p>
  <p align="justify"><span lang="EN-GB">125.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We 
  urge the BH authorities to take without delay the measures that are necessary 
  to implement the recent defence reform, because, again, the window of 
  opportunity might close fast: everything that needs to be done must be done by 
  June 2004, in time for the next Istanbul NATO summit. </span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Conscientious objection</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">126.&nbsp;&nbsp; Before the 1992-1995 
  conflict in BH, conscientious objection was virtually unknown. In accordance 
  with the list of commitments to be fulfilled by Bosnia and Herzegovina after 
  its accession to the Council of Europe, BH is required to &#147;adopt, within 3 
  years after its accession, laws on conscientious objection and alternative 
  service&#148;.&nbsp; In this sense, the most relevant standards for BH are set out 
  in the Council of Europe Council of Ministers&#146; Recommendation No. R (87) 8, 
  which sets out standards for both determination proceedings and alternative 
  service. </span></p>
  <p align="justify"><span lang="EN-GB">127.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BH&#146;s 
  human rights obligations in the area of conscientious objection should not be 
  confused with blanket exemptions from military service for returning refugees 
  and displaced persons called for in Chapter 1, Article II (2) of Annex 7 
  (&#147;Refugees and Displaced Persons&#148;) of the DPA and other return-related 
  documents. </span></p>
  <p align="justify"><span lang="EN-GB">128.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  Law on Defence of Bosnia and Herzegovina of 29 December 2003, states under 
  Article 51: &#148;The right to conscientious objection shall be secured to all 
  persons who are subject to the common conscription policy. The process of 
  confirming conscientious objector status and the administration of alternative 
  service shall be regulated by a separate law in accordance with Article II - 
  Humans Rights and Fundamental Freedoms, of the Constitution of Bosnia and 
  Herzegovina&#148;. Further, Article 79 under the &#147;Transitional Provision&#148; provides 
  for a six month period for all laws and bye-laws to be adopted. A working 
  group should be set up soon under the Ministry of Human Rights and Refugees to 
  elaborate a draft law.</span></p>
  <p align="justify"><span lang="EN-GB">129.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is 
  to be noted that according to Article 14 of the Statute of the Brcko District 
  of BH, Brcko District residents are not subject to Entity military service and 
  may only be required to perform alternative service in accordance with Brcko 
  District Law.&nbsp; To date, no regulations on alternative service have been 
  adopted in the Brcko District.</span></p>
  <p align="justify"><span lang="EN-GB">130.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under 
  the constitutional arrangement in BH, the Entities each have their own armies 
  for the time being.&nbsp; The right to conscientious objection in BH is 
  therefore regulated by provisions of entity law. Both Entities of BH require 
  all males at the age of 18 (FBH) or 19 (RS) years to perform a six-month stint 
  of military service and remain available afterwards for reserve service. The 
  Entities will have to revise their legislation after the passing of the state 
  level defence law. To date no concrete implementation of the alternative civil 
  service has taken place, except in the Federation where, after the competent 
  Ministry, signed contracts on 14 April 2004 with legal entities, it will now 
  be possible to do six months of civil service as of 10 May.</span></p>
  <p align="justify"><b><span lang="EN-GB">B&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  REFORM OF THE INTELLIGENCE AND SECURITY FORCES</span></b></p>
  <p align="justify"><span lang="EN-GB">131.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  May 2003, following a number of spying scandals in 2002 and 2003, involving 
  illegal wire tapping or information leaks to political parties or the press, 
  the HR established an expert Commission on Intelligence Reform, charged with 
  drafting a State-level law to form a single, modern, democratically 
  accountable intelligence-security agency in BH. This will entail merging the 
  existing Entity intelligence agencies (FOSS in the Federation and OBS in the 
  Republika Srpska). The expert Commission completed its work already in 
  September but, since there were serious disagreements on the draft in the 
  Council of Ministers, the HR decided on 18 December 2003 to put the law into 
  parliamentary procedure himself. It was finally adopted by both houses of the 
  state parliament on 22 March 2004. The law set a deadline for 11 May 2004 for 
  establishing the new State level Security Agency. On 4 May, 2004, this 
  deadline was extended by the HR to 1 June 2004, in order to allow for the 
  appointment process of the necessary officials to be completed.</span></p>
  <p align="justify"><b><span lang="EN-GB">C.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <b>THE EDUCATION REFORMS</b></span></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The Framework law on primary and secondary education</b></span></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">132.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After 
  intensive cajoling and pressure by the IC, the State level Framework Law on 
  Primary and Secondary Education was adopted by Parliament on 30 June 2003.&nbsp; 
  To adopt and implement the Law on Schools in conformity with Council of Europe 
  standards within two years after becoming member of the Council of Europe was 
  an accession commitment.</span></p>
  <p align="justify"><span lang="EN-GB">133.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  However several key aspects of the law have not yet been implemented: the 
  shift from eight-year compulsory education to nine-year compulsory education 
  was introduced in Republika Srpska already for the 2003-2004 school year but 
  will be piloted in the Federation only from the beginning of the school year 
  2004-2005, with full compliance the following academic year. Delay is due to 
  financial and organizational reasons. Catchment areas are not yet fully 
  implemented.&nbsp; Some parents still insist on sending their children to the 
  school of their ethnicity, rather than to the local school in their catchment 
  area. The various Ministers of Education adopted the Common Core Curriculum (CCC) 
  in August 2003 and its Implementation Plan was introduced in schools at the 
  beginning of the school year 2003-2004, but the national group of subjects 
  still exists: efforts are being made to ensure that as many subjects as 
  possible are common for the whole of BH, especially in the areas of history 
  and geography.</span></p>
  <p align="justify"><span lang="EN-GB">134.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As 
  regards the Curriculum Agency: in December 2003 the CoE produced and 
  distributed to all Ministries of Education a feasibility study on the setting 
  up of the CA; the EU has launched a new project which will provide technical 
  assistance to the Agency.&nbsp; Political negotiations must now take place in 
  order to establish the Agency.</span></p>
  <p align="justify"><span lang="EN-GB">135.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  order to facilitate the implementation at entity/cantonal level of the 
  Frame-work State law, the CoE finalized a prototype law with a group of BH 
  experts in October 2003; the intention of this law was to provide the ten 
  Cantons in the Federation and the RS with a model, based upon best European 
  practice and standards, which would comply with the newly-adopted state-level 
  Framework Law on Primary and Secondary Education.&nbsp; According to the 
  Framework Law, harmonized lower level legislation should have been adopted by 
  31 December 2003.</span></p>
  <p align="justify"><span lang="EN-GB">136.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Only 
  the District of Brcko adopted in due course new legislation based upon the 
  prototype law.&nbsp; The RS attempted to introduce harmonised legislation 
  twice; on both occasions, it was blocked by the IC because of non-conformity. 
  It was finally passed on 21 April 2004. In the Federation, harmonisation of 
  lower level legislation with the State Framework law met with very strong 
  resistance in a number of predominantly Croat cantons (see below).</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Segregation and bussing continues</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">137.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To 
  maintain and continue reform in the field of education and to eliminate all 
  aspects of segregation and discrimination based upon ethnic origins was also 
  an accession commitment. It has not been fulfilled.</span></p>
  <p align="justify"><span lang="EN-GB">138.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  During the summer of 2003, the IC exerted enormous pressure on the authorities 
  in Cantons 6 and 7 where 52 &#147;two schools under one roof&#148; exist (one school 
  where one part is reserved for Croat children and the other for Bosniak 
  children).&nbsp; Instructions were issued for the administrative and legal 
  unification of the schools at the cantonal level, but in 5 out of 10 cantons 
  in the Federation the municipalities have failed to implement the new 
  instructions.&nbsp; </span></p>
  <p align="justify"><span lang="EN-GB">139.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 30 
  March 2004, the HR issued a directive freezing until 23 April 2004 all party 
  funding for the HDZ at state and entity level and in five cantons for non 
  compliance with the instructions on adlministrative integration of schools. On 
  27 April, he issued another directive reducing the HDZ party funding by 5 % 
  for non compliance in the Central-Bosnia canton. Beyong 30 April 2004, an 
  additional 5 % will be deducted on a weekly basis. Beginning of May, the 
  Una-Sana and Tuzla Cantons adopted fully harmonised legislation. The Posavina, 
  Herzegovina-Neretva and West Herzegovina Cantons adopted legislation that is 
  not in accordance with the Framework Law. Central BosniaCanton and Canton 10 
  have thus far failed to adopt any legislation as required under the Framework 
  Law.</span></p>
  <p align="justify"><span lang="EN-GB">140.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One 
  exception is the Mostar gymnasium, which we visited in May 2003: under IC 
  pressure, the municipality is now completing the required legal measures to 
  unify the school; this procedure is also linked with the overall process of 
  unifying the city of Mostar. On the ground, however, it seems that 
  reunification only implies, for the time being, that children come together 
  for extra-curricular activities but that they still don&#146;t share the same 
  classrooms.</span></p>
  <p align="justify"><span lang="EN-GB">141.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  its Opinion 234(2002), the Assembly insisted that it was essential to refrain 
  from any remark in children&#146;s education, especially in schoolbooks, which 
  reinforces hatred or mistrust. Some slight progress can be recorded in this 
  field: in June 2003, the Inter-Entity Textbook Review Commission finalized its 
  work to remove inappropriate terminology from current textbooks, supplementary 
  textbooks and workbooks on the national group of subjects (language and 
  literature, history, geography, religion, knowing nature/society) that were 
  currently in use in all Primary and Secondary Schools in Bosnia and 
  Herzegovina.</span></p>
  <p align="justify"><span lang="EN-GB">142.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; While 
  positive progress was made in the subjects of geography, religious instruction 
  and nature and society, the issue of one-sided, biased representation of other 
  constituent peoples continues to be problematic in history and language and 
  literature textbooks. In order to deal with this issue systematically, a 
  separate body, the Independent Textbook Commission will be established in June 
  2004 to resolve these issues by developing guidelines for authors of history 
  textbooks.</span></p>
  <blockquote>
    <p align="justify"><span lang="EN-GB"><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    Higher Education Legislation</b></span></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">143.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  state-level Framework Law for Higher Education<a href="#_ftn47" name="_ftnref47" title>[47]</a> 
  was developed over a period of one year by BH and CoE experts.&nbsp; Besides 
  major policy changes in line with BH&#146;s international commitments and European 
  standards (Bologna Process, Lisbon Recognition Convention, etc), the law also 
  foresees a major structural and constitutional change: the deferral of power 
  in Higher Education from cantonal to entity level in the Federation.&nbsp; 
  Many competences will be assigned to the State-level, especially those 
  involving international co-operation and co-ordination.</span></p>
  <p align="justify"><span lang="EN-GB">144.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Within two years of accession BH ratified the Lisbon Recognition Convention on 
  9 January 2004 and the Convention entered into force with respect to Bosnia 
  and Herzegovina on 1 March 2004.&nbsp; Regarding its implementation, under the 
  terms of the Lisbon Recognition Convention, BH must establish a National 
  Information Centre and become part of the European Network of Information 
  Centres (ENICs).&nbsp; The state-level Framework Law for Higher Education 
  foresees the establishment of not only an Information Centre, but also a more 
  comprehensive state-level body called the Centre for Information, Recognition 
  and Quality Assessment (CIRQA). Establishment of the Information Centre is 
  therefore contingent upon the adoption of the draft law.</span></p>
  <p align="justify"><span lang="EN-GB">145.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  Ministry of Civil Affairs submitted the draft law to the Council of Ministers 
  on 29 January 2004 but following disagreement within the Council of Ministers, 
  it was forwarded to parliament only on 22 March 2004. Major resistance to 
  these amendments was to be expected, especially from the Croat community which 
  prefers competencies in Higher Education to be transferred from cantonal or 
  entity level to State level, whereas the RS advocates maintaining exclusive 
  competencies of the Entities. The International Community warned on a number 
  of occasions that if this law is not adopted soon, BH risks losing a 42 
  million USD grant by the World Bank. Although the deadline was extended from 
  March to May 2004, this is precisely what happened: on 7 May 2004, the caucus 
  of Croatian delegates in the House of Peoples invoked the vital national 
  interest clause and therefore blocked the adoption of the Framework law. The 
  World Bank immediately withdrew a credit of 12 million USD. </span></p>
  <p align="justify"><b><span lang="EN-GB">D.</span></b><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <b>BULLDOZER COMMITTEES</b></span></p>
  <p align="justify"><span lang="EN-GB">146.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  late 2002, the High Representative noted that BH needed a bulldozer to push 
  aside the huge amount of pointless bureaucracy and job-destroying regulations 
  that make it harder rather than easier to do business. This led to a Bulldozer 
  Initiative, through which businesspeople were invited to recommend changes to 
  laws and regulations. The success of the scheme surprised even hardened 
  sceptics. A total of 50 reforms were enacted in a period of 180 days. </span>
  </p>
  <p align="justify"><span lang="EN-GB">147.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  Phase I, the Committee received input from more than 500 firms. Reform 
  proposals covered issues such as double taxation, cumbersome administrative 
  procedures, and bureaucratic requirements that actually make it harder to run 
  successful businesses and therefore to create and sustain jobs. During three 
  Plenary Sessions, the Committee voted on the best 50 proposals. These were 
  presented to the governments in the spring of 2003. Certain reforms were 
  adopted by means of a government decision; others (amendments to existing 
  laws) were sent to the parliaments. The parliaments passed all the Bulldozer 
  amendments, just 30 days beyond the original 150-day deadline. On average, the 
  Bulldozer Initiative produced one economic reform every four days. </span></p>
  <p align="justify"><span lang="EN-GB">148.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Bulldozer Phase II was launched on 4 June 2003. In view of the lessons learned 
  during Phase I, six regional Bulldozer Committees were established by 
  organizations representing local businesses in their areas. In addition, a 
  specialized Bulldozer Committee on Agriculture, Agribusiness and Natural 
  Resources was set up. The Committees&#146; focus has been to identify new reforms 
  at the municipal/cantonal/regional level and to oversee the implementation of 
  Phase I reforms at the local level. In the summer of 2003, the three Prime 
  Ministers, the six Heads/Speakers of Parliaments, the Mayor of Brcko, and 
  seven Bulldozer local representatives signed an agreement called &#147;The Protocol 
  for Prosperity&#148;, which commits them to continuing and deepening their support 
  for the Bulldozer reform process. Phase II has produced another set of 50 
  reforms that are currently being reviewed by the governments. Adoption of 
  these reforms, through parliamentary procedure or by government decision, is 
  expected in the course of spring 2004. In Phase III, due to start in early 
  2004, the International Community will assume a completely subsidiary role, 
  supporting the Bulldozer process only when invited to do so. </span></p>
  <p align="justify"><b><span lang="EN-GB">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE INDIRECT TAXATION SYSTEM (ITA)</span></b></p>
  <p align="justify"><span lang="EN-GB">149.<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </b>On 12 February 2003, the High Representative issued a Decision on the 
  establishment of an Indirect Tax Policy Commission. The main tasks of the 
  Commission were to define the legal requirements for the formation of a single 
  Customs Administration and the introduction of VAT at the State level by 2006. 
  The Commission comprised seven members with two members coming from each of 
  the Federation of BH, Republika Srpska and State Institutions, while the chair 
  of the Commission was a representative of the International Community. The 
  draft Law drafted by this Commission enables the Indirect Taxation Authority (ITA) 
  to administer customs and, ultimately, value added tax, in a single, efficient 
  operation, in accordance with European requirements.</span></p>
  <p align="justify"><span lang="EN-GB">150.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  Headquarters of the Indirect Taxation Authority will be in Banja Luka. The 
  existing 19 customs branches will be reduced to four branch offices organized 
  on the basis of the need for a single economic space and economic efficiency.&nbsp; 
  These will be centred in Sarajevo, Mostar, Banja Luka and Brcko. </span></p>
  <p align="justify"><span lang="EN-GB">151.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 29 
  December 2003, the BH Parliament adopted the ITA Law. This law has now come 
  into effect, meaning that legally the Entity Customs Administrations have 
  ceased to exist and there is one countrywide Indirect Taxation Authority. 
  During the last quarter of 2003, the Entity Governments signed an agreement 
  that allowed for the transfer of competence in the field of Indirect Taxation 
  from the Entity level to the State Level. This agreement was made under 
  Article III 5 (a) of the BH Constitution and was the first time that such an 
  agreement had been reached under this provision. Additionally, the new 
  Director of the Indirect Taxation Authority, Kemal Cau&#154;evic, was selected and 
  subsequently appointed by the Council of Ministers on 8 December 2003. Mr. 
  Cau&#154;evic confirmed that his first priority would be to merge the three 
  existing customs administrations in BiH. Such merging is expected to be 
  completed in the second half of 2004.&nbsp; Subsequently, the introduction of 
  a Value-Added Tax is expected to take place on 1 January 2006.&nbsp; These 
  measures are designed to contribute significantly to increased tax and customs 
  revenue. </span></p>
  <p align="justify"><span lang="EN-GB">152.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We 
  have also learned with satisfaction that on 29 April 2004, at a meeting in 
  Mrakovica, near Prijedor, the Prime Ministers at state and entity level signed 
  an agreement to eliminate double taxation and tasked the respective finance 
  ministers to prepare legislation within 60 days. These news laws will include 
  full harmonisation of indirect taxes, deposit of excise duties and other 
  indirect taxes in a single account, and payment of excise duties by domestic 
  producers only once, at the place pf production. If implemented, this 
  agreement would represent an important step towards the creation of a single 
  economic space in BH.</span></p>
  <p align="justify"><b><span lang="EN-GB"><a name="5t" href="#5">V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  REESTABLISHING THE RULE OF LAW</a></span></b></p>
  <p align="justify"><b><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE STATE BORDER SERVICE</span></b></p>
  <p align="justify"><span lang="EN-GB">153.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Control of a State&#146;s border is a fundamental element of State sovereignty and 
  State identity. Effective border institutions are also essential in the fight 
  against organized crime, smuggling and trafficking.</span></p>
  <p align="justify"><span lang="EN-GB">154.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  January 2000, the High Representative imposed the Law on Border Service which 
  was finally adopted by the BH Parliament in June 2001. In September 2002, 
  according to Mr Jacques Klein, Special Representative of the UN Secretary 
  General, there had been progress made from virtually no State border control 
  to a situation where 1200 officers cover 62% of the border in addition to 
  Sarajevo airport. The State Border Service, which is multi-ethnic, is now 
  fully deployed and operational: by December 2002, the State Border Service had 
  achieved 100 % control of the land borders together with 3 international 
  airports (Sarajevo, Banja Luka and Mostar) and the number of suspected illegal 
  migrants has been reduced from nearly 25 000 in the year 2000 to a few hundred 
  in 2002. This does not mean that the borders are tight: BH is considered as 
  one of the main transit routes for various trafficking.</span></p>
  <p align="justify"><b><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BUILDING A MULTIETHNIC POLICE FORCE</span></b></p>
  <p align="justify"><span lang="EN-GB">155.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  UN Mission in BH and the International Police Task Force (IPTF) were 
  responsible under Annex 11 of the Dayton Agreements for the restructuring, 
  monitoring and training of the local police forces. Police academies are now 
  operating in both Entities. With regard to police reform, the IPTF 
  Commissioner and UNMIBH had by November 2002 almost completed the process of 
  final certification of the 16,832 local police officers who in 1999 were only 
  provisionally allowed to work in BH. Establishing multi-ethnic police forces 
  was an accession commitment: we consider it has been achieved, although there 
  continue to be concrete problems of implementation in some areas.</span></p>
  <p align="justify"><span lang="EN-GB">156.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Every 
  police officer in the country had to pass seven different checks including: 
  wartime background, professional performance, lawfulness of housing, 
  verification of education credentials, completion of compulsory training, 
  proof of citizenship and a clear criminal record. In addition to the 234 
  officers already dismissed for misconduct or wartime background, around 500 to 
  600 officers were refused certification and 274 have lodged an appeal before 
  an independent review panel outside the command structure of the IPTF 
  Commissioner. This review panel cannot overrule the Commissioner, but if there 
  is new information or evidence that was not available at the time of the 
  Commissioner&#146;s original decision, the panel will refer cases back to the 
  Commissioner for reconsideration of his decision. </span></p>
  <p align="justify"><span lang="EN-GB">157.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  press and political parties (especially SDP) violently criticized the absence 
  of certification for 19 police officers in Sarajevo canton and also in the RS 
  (in Bjelnina). Zlatko Lagumdzija, leader of the SDP, even went as far as 
  stating this was the most serious incident in the relations with the IC in the 
  past two years. IPTF and UNMBH moved out of BH on 31 December 2003 and were 
  replaced by the EU Police Mission (EUPM). EUPM was given the possibility of 
  recommending dismissal of any police officer.</span></p>
  <p align="justify"><b><span lang="EN-GB">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  FUNCTIONING OF THE JUDICIARY</span></b></p>
  <p align="justify"><span lang="EN-GB">158.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In BH, 
  the judicial system had operated according to the principle of parallelism 
  since the war. Both Entities developed their own judiciary, with courts at 
  different levels<a href="#_ftn48" name="_ftnref48" title>[48]</a>, applying 
  different laws, either inherited from former Yugoslavia or newly adopted by 
  the respective parliaments. The judiciary was generally deemed to be 
  inefficient, costly, corrupt and ethnically biased and the HR dismissed a 
  number of judges for that reason<a href="#_ftn49" name="_ftnref49" title>[49]</a>.
  </span></p>
  <p align="justify"><span lang="EN-GB">159.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Already in 2000 the HR imposed measures meant to help root out corrupt or 
  partial judges and prosecutors and restore public confidence in the courts. 
  Existing judicial appointments were to be subjected to an internationally 
  supervised review process, and there were rigorous procedures for dismissing 
  judges and prosecutors found to be corrupt or biased. A new international 
  organization, the Independent Judicial Commission (IJC), with a staff of 64 
  and a monthly budget equivalent to more than 200,000 USD in 2002, was 
  established in order to oversee things.</span></p>
  <p align="justify"><span lang="EN-GB">160.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By 
  2002, however, it had become clear that this reform - which relied on 
  complaints from citizens using the court system - was not yielding 
  satisfactory results. In November 2002, the OHR therefore decreed that all 
  judges and prosecutors would have to reapply for their positions. This decree 
  made no exception for those judges who had been promised life tenure after 
  passing an earlier comprehensive review in 2000. The High Judicial and 
  Prosecutorial Councils (HJPCs), transitional bodies existing at State and 
  entity level with international staffing, were entrusted with this countrywide 
  reappointment process for all posts in the first- and second-instance courts<a href="#_ftn50" name="_ftnref50" title>[50]</a> 
  in the Entities and also at state level. By mid February,2004 98% of the 260 
  prosecutors at every level of the judiciary and 87% of all 646 judges had been 
  selected, interviewed and appointed. The process should be completed by 31 May 
  2004.</span></p>
  <p align="justify"><span lang="EN-GB">161.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 1 
  November 2002, the HR also imposed a complete restructuring of the court 
  system within Bosnia and Herzegovina, closing and consolidating courts 
  throughout both Entities in order to achieve a more efficient and more 
  accountable judicial system. The number of first-instance courts was reduced 
  from 78 to 47, subject matter jurisdiction was harmonized and commercial 
  departments are to be created in 15 first-instance courts. </span></p>
  <p align="justify"><span lang="EN-GB">162.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 1 
  November 2002, the HR imposed amendments to the laws establishing Judicial 
  Training Centres in order to make them operational and begin to provide 
  much-needed training to judges and prosecutors throughout Bosnia and 
  Herzegovina. In December 2002 the HJPCs adopted two training programmes on 
  Criminal Procedure for judges and prosecutors. </span></p>
  <p align="justify"><span lang="EN-GB">163.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This 
  combined process of court restructuring and reappointment of judges and 
  prosecutors is certainly the most ambitious and radical overhaul carried out 
  so far in any post-communist judiciary. In the case of BH, this lustration 
  process was made more complicated and emotional by the fact that judges were 
  not screened as in other countries because of their participation in a 
  communist regime but also as regards their war-time past. We regret that all 
  reforms aiming at establishing an independent, qualified and professional 
  judiciary have been carried out by the HR. We have heard a number of 
  complaints regarding the reappointment process, in particular arbitrariness, 
  lack of explanation of the decisions and absence of any appeal procedure.</span></p>
  <p align="justify"><span lang="EN-GB">164.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  &#147;continuation of the reforms aimed at the establishment of a professional and 
  independent judicial and prosecutorial system&#148; was an accession commitment (para. 
  15.v.g of Opinion 234). The establishment of a single State High Judicial and 
  Prosecutorial Council - necessitating a transfer of competencies from the 
  Entities to the State - will be an important benchmark. It remains to be 
  fulfilled.</span></p>
  <p align="justify"><span lang="EN-GB">165.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  transitional period (including transitional HJPCs) was supposed to end in 
  September 2003. It was extended to 31 March 2004 and again to 31 May 2004. The 
  single State level HJPC should have started functioning on that date. On 11 
  June 2003, the HR issued a Directive directing the Entities to begin 
  negotiations for the creation of a single HJPC at the end of the transitional 
  period. Progress has been recorded: the Inter Entity Draft Agreement - to 
  transfer certain responsibilities for the affairs of the judiciary to a 
  BH-HJPC - was submitted to the Entities on 15 August 2003. On 29 January 2004 
  the FBH Government adopted and forwarded to the Parliament a draft Amendment 
  to the Federation Constitution replacing the Federation HJPC with the State 
  HJPC. At the end of February 2004 the RS National Assembly gave the green 
  light for the RS Government to sign the transfer of powers Agreement but 
  stipulated three conditions, one of which being that the seat of the State 
  level HJPC be in Srpsko<a href="#_ftn51" name="_ftnref51" title>[51]</a> 
  Sarajevo. On 13 May the law on the single state-level HJPC was adopted by the 
  BH House of representatives and will be examined by the House of Peoples on 21 
  May. If adopted, this body will be ultimately responsible for hearing 
  disciplinary procedures against judges and prosecutors and for making any 
  appointments as judicial vacancies arise.</span></p>
  <blockquote>
    <p align="justify"><b><span lang="EN-GB">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
    The State court</span></b></p>
  </blockquote>
  <p align="justify"><span lang="EN-GB">166.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  Court of BH is a State-level institution that was not provided for in the 
  Dayton Peace Agreement. On 12 November 2000, the HR enacted the Law on the 
  Court of Bosnia and Herzegovina to deal with criminal offences perpetrated by 
  public officials of Bosnia and Herzegovina in the course of their duties, and 
  with administrative and electoral matters. However it was only following 
  adoption in 2001 of the BH election law, which gave the State court competence 
  to hear appeals from Decisions of the Election Commission of Bosnia and 
  Herzegovina and of the Election Complaints and Appeal Council, and in view of 
  the elections scheduled for October 2002, that the HR, by decision of 9 May 
  2002, established the Court and nominated its seven judges. </span></p>
  <p align="justify"><span lang="EN-GB">167.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  setting up of the State court chamber that deals with serious economic crime, 
  trafficking or corruption was delayed until the adoption of the State level 
  criminal code and code of criminal procedure. Both were imposed by the HR on 
  24 January 2003 and entered into force on 1 March 2003. This represents a 
  radical leap in the process of reforming the criminal justice system of Bosnia 
  and Herzegovina.</span></p>
  <p align="justify"><span lang="EN-GB">168.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  HR also imposed the law on protection of witnesses, on the State Prosecutor&#146;s 
  office and on judicial police. He also appointed a number of international 
  prosecutors,and judges. The new Chamber has already delivered its first 
  judgment in a serious trafficking case in January 2004. We consider this to be 
  a commendable improvement of the rule of law in BH, although the 
  implementation of the new criminal codes at entity level seems to be 
  problematic in a number of cases.</span></p>
  <p align="justify"><span lang="EN-GB">169.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  proposal to set up yet another Chamber of the State court to deal with war 
  crimes is also a very welcome development, although there is a risk that BH 
  will be burdened with high profile cases that the Hague court was unable to 
  deal with in due time.</span></p>
  <p align="justify"><b><span lang="EN-GB">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  COMBATTING CORRUPTION AND TRAFFICKING</span></b></p>
  <p align="justify"><span lang="EN-GB">170.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  latest report issued by the US State Department on &#145;Trafficking in Persons&#146; 
  upgraded BH to a Tier 2 country.&nbsp; In June 2003, BH had been ranked as a 
  Tier 3 country (&#145;country whose government does not fully comply with the 
  minimum standards and is not making significant efforts to do so&#146;). The 
  developments in BH that prompted the State Department to upgrade BH were the 
  appointment of a national co-ordinator for anti-trafficking in human beings 
  and the outline of a national co-ordination mechanism on anti-trafficking. The 
  essential requirement of establishing effective victim identification and 
  witness protection systems in order to respect the rights of victims and 
  ensure successful prosecutions of trafficking cases, however, has not yet been 
  met.&nbsp; </span>As regards corruption<a href="#_ftn52" name="_ftnref52" title>[52]</a>, 
  high hopes are invested in the new State level chamber for serious economic 
  crimes, corruption and trafficking which has become operational recently. The 
  fight against corruption must absolutely be continued in the following years 
  because corruption, by money or by favors rendered, is an evil deeply rooted 
  in society</p>
  <p align="justify"><b><a name="6t" href="#6">VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  MECHANISMS TO ENSURE RESPECT FOR HUMAN RIGHTS</a></b></p>
  <p align="justify"><b><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE COMMISSION FOR HUMAN RIGHTS</span></b></p>
  <p align="justify">171.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In a country where 
  collective rights of groups prevail, it is very difficult to protect 
  individual rights, which by definition, are afforded to everyone, 
  independently of their ethnicity. <span lang="EN-GB">The</span>DPA tried to 
  solve this paradox a) by incorporating into domestic law, in Article 2, 
  paragraph 2, of the constitution, the European Convention on Human Rights (ECHR) 
  and its protocols, which is therefore directly applicable in Bosnia and 
  Herzegovina, together with a number of other international Human rights 
  conventions and b) by setting up a new type of body to examine individual 
  complaints: the Commission for Human rights. This body comprised a
  <span lang="EN-GB">State</span>level Human Rights <span lang="EN-GB">Ombudsman
  </span>institution and a Chamber of Human Rights, with judicial powers. Both 
  these institutions, at least partly staffed with internationals, were supposed 
  to cease operations in 2000. Both were then extended until December 2003.</p>
  <blockquote>
    <p align="justify"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
    <span lang="EN-GB">Human Rights</span> Ombudsman <span lang="EN-GB">of</span> 
    BH</b></p>
  </blockquote>
  <p align="justify">172.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Human Rights 
  Ombudsman of BH was established through the BH Constitution as outlined in 
  Annex 4 to the General Framework Agreement on Peace in Bosnia and Herzegovina 
  of 14 December 1995, and further regulated through Annex 6 to that Agreement. 
  On this legal basis the Institution began in 1996<a href="#_ftn53" name="_ftnref53" title>[53]</a> 
  to operate two offices, a head office in Sarajevo and a main office in Banja 
  Luka, and at the end of 2000 a branch office in the District of Brcko. The 
  Institution was established with the purpose to protect Human Rights and to 
  promote good governance and the rule of law in BH. To this aim the Institution 
  considers individual complaints, undertakes investigation and initiates 
  various proactive measures. It could also refer cases to the Human Rights 
  Chamber.</p>
  <p align="justify">173.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 3 January 2001 the 
  Law on the<span lang="EN-GB">Human Rights</span>Ombudsman of BH entered into 
  force, following a decision of the High Representative. On 25 June and 3 July 
  2002 this Law was endorsed by both Houses of the BH Parliament, paving way for 
  an Ombudsman Institution under complete domestic liability. This new domestic 
  institution was however still partially funded by the IC and the law provided 
  that, for a transitional period ending on 31 December 2003, the Ombudsman 
  would not be a citizen of BH. </p>
  <p align="justify">174.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This transitional 
  Ombudsman, Frank Orton, a Swedish judge and former Swedish Ombudsman for 
  ethnic discrimination, took up duties in May 2000 and has since then tried to 
  promote good governance and the rule of law, notably by launching public 
  awareness campaigns (including a telephone hotline for citizens) and carrying 
  out ad hoc inspections of prisons or psychiatric hospitals. He also held a 
  number of thematic seminars and organized training sessions for judges, in 
  particular to promote&nbsp; court mediation of civil law suits. According to 
  his annual reports, compliance by the authorities with his recommendations in 
  individual cases or general recommendations has reached a quite satisfactory 
  level.</p>
  <p align="justify">175.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; He was replaced as of 1 
  January 2004, by three nationals of BH, in accordance with the relevant 
  provisions of the Law. These three Ombudsmen were elected<a href="#_ftn54" name="_ftnref54" title>[54]</a> 
  by the BH House of Representatives on 27 November, and by the BH House of 
  Peoples on 28 November 2003, following nomination proposals by the BH 
  Presidency. The commitment to work &#147;towards establishing multi-ethnic 
  ombudsmen&#148; at State level has therefore been fulfilled.</p>
  <p align="justify">176.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ombudsman institutions 
  however also exist at the level of the Entities<a href="#_ftn55" name="_ftnref55" title>[55]</a>. 
  Each of them is composed of three Ombudsmen, one from each constituent people. 
  This means that there are at present 9 Ombudsmen in BH and three different and 
  from each other independent institutions, with at least partly overlapping 
  competences, and different levels of remuneration<a href="#_ftn56" name="_ftnref56" title>[56]</a>. 
  This is unsustainable in a country already plagued with too many competing 
  parallel institutions and low resources. To consider establishing, in the long 
  term, a single, unified human rights ombudsman&#146;s Office at state level, which 
  would include the present ombudsman institutions at entity level, is another 
  accession commitment: little has been done so far either by the domestic 
  authorities or the international community to try and come forward with 
  concrete proposals on this issue. The former state ombudsman is the only one 
  who prepared before his departure a draft on merger for consideration by the 
  domestic authorities. A working group wihin the state level ministry for human 
  rights has been established recently to put forward concrete proposals to this 
  end.</p>
  <blockquote>
    <p align="justify"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
    Human Rights Chamber</b></p>
  </blockquote>
  <p align="justify">177.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span lang="EN-GB">
  Article 2, paragraph 2, of the constitution incorporates the European 
  Convention on Human Rights (ECHR) and its protocols, which are directly 
  applicable in Bosnia and Herzegovina.</span> The Human Rights Chamber was 
  created under the Dayton Peace Agreement (DPA) to address cases of violations 
  of the European Convention on Human Rights and Fundamental Freedoms and 
  violations of a range of other human rights treaties.&nbsp; The HRC was given 
  a competence <i>ratione materiae</i> which goes well beyond the one exercised 
  by the European court of Human Rights under the ECHR: it can deal also with 
  violations of social and economic rights and its competence to deal with 
  alleged discrimination is not limited, as in article 14 of the ECHR, to the 
  substantial provisions of the ECHR. Furthermore it can apply provisions of 
  other international treaties than the ECHR and the provisional measures it can 
  impose are binding on the authorities. The HRC may also prescribe detailed 
  measures to be taken by the authorities with a view to implementing its 
  decisions, which go well beyond the power of the ECHR Court to award 
  compensation. The work of the HRC has been much praised over the years and it 
  has delivered a number of landmark decisions for the country.<a href="#_ftn57" name="_ftnref57" title>[57]</a></p>
  <p align="justify">178.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The DPA provided that, 
  five years after the signing of the Agreement in 1995, responsibility for the 
  continued operation of the HRC would transfer from the Agreement&#146;s parties to 
  BH institutions (Annex 6, Article XIV).&nbsp; The mandate of the HRC was 
  however extended until the end of 2003 by agreement of the parties to Annex 6 
  of the DPA, in particular because BH had not yet become a member of the 
  Council of Europe and could therefore not ratify the European Convention of 
  Human Rights. &nbsp;</p>
  <p align="justify">179.<span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </span>However, by the end of 2002, the HRC had accumulated a backlog of 
  around 10&nbsp;000 cases, due to the fact it was meeting only a week per month to 
  accommodate the 8 part-time international judges, its liberal approach to the 
  requirement of prior exhaustion of local remedies and a great number of cases 
  concerning the same issues, such as property repossession, delays in court 
  proceedings, frozen bank accounts or the Srebrenica cases. Merging the HRC 
  with the Constitutional court, as was required by Opinion 234, therefore 
  presented a serious challenge, aggravated by the fact that the HRC did not 
  stop registering new cases as of 12 July 2002, date of ratification of the 
  ECHR by BH and continued to do business as usual.</p>
  <p align="justify">180.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 25 September 2003, 
  after lengthy discussions between the HRC, the Constitutional court and the 
  International community, the &#147;Agreement pursuant to Article XIV of Annex 6 to 
  the General Framework Agreement for Peace in BH&#148;, signed to this effect by the 
  Entities and the State of BH, entered into force.&nbsp; According to this 
  Agreement, the mandate of the HRC ended on 31 December 2003 and a Human Rights 
  Commission within the BH Constitutional Court started to operate.&nbsp; The 
  Human Rights Commission will comprise five judges from the HRC, and will work 
  from 1 January to 31 December 2004 at the latest.&nbsp; It has competence to 
  decide those cases registered at the HRC before 1 October 2003, and those 
  provisionally registered between 1 October and 31 December 2003.&nbsp; </p>
  <p align="justify">181.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There have been quite 
  serious disagreements between the Constitutional court and the HRC as to 
  whether it would legally<a href="#_ftn58" name="_ftnref58" title>[58]</a> be 
  possible for the Constitutional court to examine allegations of violations of 
  human rights in the same way the HRC did. This will probably require a 
  revision of the Constitution, i.e. of Annex 4 to the DPA.</p>
  <p align="justify">182.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We ask the domestic 
  authorities, who still haven&#146;t adopted (at 1 March 2004) the State budget to 
  provide the necessary appropriations for the Constitutional court to be able 
  to function and the international community to continue funding the Special 
  human rights commission within the constitutional court in 2004 and beyond if 
  necessary.</p>
  <p align="justify"><b><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  THE CONSTITUTIONAL COURT</span></b></p>
  <p align="justify">183.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annex 4, Article VI, of 
  the Dayton Peace Agreement (the Constitution of Bosnia and Herzegovina) also 
  provides for a Constitutional Court. It is composed of nine members, four 
  members from the FBH, two from the RS and three non-citizens of Bosnia and 
  Herzegovina or of neighbouring States selected by the President of the 
  European Court of Human Rights. The Constitutional Court has jurisdiction to 
  decide any dispute that arises under the Constitution between the Entities and 
  the central Government and between the Entities themselves or between 
  institutions of Bosnia and Herzegovina, including the question of 
  compatibility of an Entity's Constitution with the Constitution of Bosnia and 
  Herzegovina. (Article VI, para. 3 (a)). The Court has jurisdiction over issues 
  referred by any court in the country, on whether a law on whose validity its 
  decision depends is compatible with the Constitution, with the European 
  Convention for Human Rights and Fundamental Freedoms and its Protocols or with 
  rules of public international law pertinent to a court's decision (Article VI 
  para 3 (c)). It shall also have appellate jurisdiction over constitutionality 
  issues arising out of a judgement of any other court in Bosnia and Herzegovina 
  (Article VI para 3 (b). The Constitutional Court gives final and binding 
  judgements.</p>
  <p align="justify">184.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span lang="EN-GB">In 
  the course of 2002 and 2003, the Constitutional court was confronted with 
  quite serious difficulties: the appointment of two of its judges from the RS 
  was cancelled by the High Representative for procedural reasons on 16 
  September 2002 and the Court could not hold any sessions because of a lack of 
  quorum. The RS National Assembly delayed the election procedures and, as a 
  result, the Constitutional Court only resumed its plenary meetings in May 
  2003. It is also to be noted that the Court meets only once a month for 
  plenary sessions lasting two days. It has held 9 sessions since May 2003 at 
  which around 40 cases are examined. This is clearly not enough. We note 
  however with satisfaction that in January 2004, the Court changed its Rules of 
  procedure which now allow most admissibility decisions and a good number of 
  decisions on the merits to be taken by panels, or chambers, consisting of the 
  national judges without international involvement.</span></p>
  <p align="justify"><span lang="EN-GB">185.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Funding and staff<a href="#_ftn59" name="_ftnref59" title>[59]</a> are also a 
  problem that needs to be addressed in the near future, especially now that the 
  Constitutional court has taken over jurisdiction as from 1 January 2004 for 
  all new human rights cases that could previously be addressed to the HRC.</span></p>
  <p align="justify"><b><span lang="EN-GB"><a name="7t" href="#7">VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  BH ON THE ROAD TO EUROPEAN INTEGRATION</a></span></b></p>
  <p align="justify"><b><span lang="EN-GB">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  WHAT HAS CHANGED SINCE ACCESSION TO THE COUNCIL OF EUROPE?</span></b></p>
  <p align="justify"><span lang="EN-GB">186.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Bosnia-Herzegovina became a member of the Council of Europe in April 2002. 
  This was the first step undertaken on the long road to European integration. 
  Upon accession, it was given a long list of commitments to be fulfilled within 
  specific deadlines. We are pleased to report that BH has honoured most of its 
  formal commitments within the first two years of membership. We have to stress 
  however that ratifying conventions and adopting laws is easy, but that 
  implementing them is even more important.&nbsp; We have serious doubts as to 
  the present capacity of the BH authorities to implement the necessary reforms 
  on their own, without constant cajoling or pressure by the International 
  Community, in particular the High Representative. </span></p>
  <p align="justify"><span lang="EN-GB">187.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 
  the field of Council of Europe Conventions, the European Convention for the 
  protection of Human Rights, together with its Protocols 1 to 11, has been 
  ratified on 12 July 2002<a href="#_ftn60" name="_ftnref60" title>[60]</a> 
  without any reservations, but so far without any compatibility exercise having 
  been carried out, without creation of the Office of the government Agent 
  responsible for proceedings before the Court
  <a href="#_ftn61" name="_ftnref61" title>[61]</a>and with delay in presenting 
  the list of candidates for the position of judge in the Court<a href="#_ftn62" name="_ftnref62" title>[62]</a>. 
  The European Convention on the Prevention of Torture and the European Charter 
  of Local Self-Government were also ratified on 12 July 2002. No concrete 
  progress has been made in implementing the principles of the local government 
  Charter, but legislative work is in progress in both Entities. The General 
  agreement on Privileges and Immunities and its Protocol were ratified on 3 
  October 2003, together with the European Convention on the Suppression of 
  Terrorism. All the other Conventions listed in Opinion 234 have not been 
  ratified (at 15 May 2004) and time is running out<a href="#_ftn63" name="_ftnref63" title>[63]</a>. 
  We therefore urge the BH authorities to honour all outstanding commitments as 
  regards ratification of Council of Europe instruments as soon as possible.
  </span></p>
  <p align="justify"><span lang="EN-GB">188.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We 
  must also mention the Framework Convention on the Protection of National 
  Minorities<a href="#_ftn64" name="_ftnref64" title>[64]</a>, which was 
  ratified before accession on 24 February 2000. BH failed to present its first 
  report to the Advisory Committee within the 12 month time limit provided for 
  in Article 25 � 1 of the Framework convention, and on 3 September 2003 the 
  Committee of Ministers took the unprecedented decision of allowing 
  commencement of monitoring without a state report. When we raised this issue 
  in Sarajevo, we were told that the competent Ministry simply lacked the 
  qualified staff and administrative capacity to draft such a report<a href="#_ftn65" name="_ftnref65" title>[65]</a> 
  and that they were behind schedule also as regards reports due for the United 
  Nations. </span></p>
  <p align="justify"><span lang="EN-GB">189.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This 
  is unacceptable but appears to be a common feature of the concrete 
  implementation of many reforms, both at state and entity level. Understaffing 
  of state level ministries, which until recently were but empty shells, 
  overstaffing at entity and cantonal level, lack of proper training and 
  merit-based recruitment and the generally low level of co-operation and 
  harmonization between the different levels of authority are clearly impeding 
  the country&#146;s capacity to carry out reforms in any meaningful way. We hope 
  that the establishment at State level of the Civil Service Agency, imposed by 
  the HR on 23 May 2002, and enacted by Parliament in July 2002, will increase 
  the professionalism of the civil service<a href="#_ftn66" name="_ftnref66" title>[66]</a>.</span></p>
  <p align="justify"><span lang="EN-GB">190.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Trying to assess progress made in the last two years in Bosnia-Herzegovina is 
  like watching grass grow: one has to come back at regular intervals to notice 
  any change. Building a functional State in a country whose three main 
  communities have been at war is a long and undoubtedly painful process. What 
  causes concern, however, is the slow pace of the process of assuming 
  ownership. On the other hand, we had heard a number of complaints at all 
  levels of domestic authorities relating to the fact that the different 
  international organisations present in BH also slow down the reforms because 
  they interfere in all stages of law making and sometimes provide conflicting 
  advice. There appears to be a need also for the international community to 
  streamline its operations and to clearly define who does what, when and how. 
  To date however, it is clear that without the International community, nothing 
  much would have achieved: we have indeed wondered on occasions whether the 
  credit for fulfilling Council of Europe commitments should not be given to the 
  international community instead of the BH authorities. </span></p>
  <p align="justify"><span lang="EN-GB">191.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This 
  is true for accession commitments in the field of domestic legislation such 
  as, for example, the law on citizenship, the criminal code and criminal code 
  of procedure, the law on the civil service, the constitutional and legislative 
  amendments necessary to comply with the decision on constituent peoples, the 
  cantonal laws on internal affairs, all of which were imposed by the High 
  Representative in 2002 and 2003. Extensive assistance, if not direct bullying, 
  by the International Community was also very much needed for the adoption of 
  the law on asylum or the framework laws on primary and secondary education. If 
  BH wants to move away from the status of a semi-protectorate, its political 
  parties will have to change radically. Fighting for posts and wasting energy 
  mainly if not exclusively on power sharing issues will not take the country 
  forward.</span></p>
  <p align="justify"><b><span lang="EN-GB">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  ACCESSION TO THE EUROPEAN UNION: A DREAM OR A CONCRETE PERSPECTIVE?</span></b></p>
  <p align="justify"><span lang="EN-GB">192.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BH&#146;s 
  first step in this process came in early 2000 when work began on a &#147;Road Map&#148; 
  of 18 priority reform steps.&nbsp; The Road Map was substantially completed in 
  September 2002, and at that stage the EU Commission initiated work on the 
  Feasibility Study.&nbsp; In March 2003 a questionnaire covering all sectors 
  relevant to a future Stabilization and Association Agreement (SAA) was given 
  to the BH Directorate for European Integration. BH&#146;s answers were discussed 
  with the Commission in a series of working groups between May and September 
  2003. The Feasibility Study is the latest stage of the EU&#146;s Stabilisation and 
  Association Process (SAP), designed to integrate BH gradually into EU 
  structures.&nbsp; </span></p>
  <p align="justify"><span lang="EN-GB">193.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Success in the reforms outlined in the Feasibility Study would open the way to 
  SAA negotiations. An SAA helps to prepare the countries of the Western Balkans 
  in the same way as the Europe Agreements helped prepare the countries of 
  Central and Eastern Europe for accession.</span></p>
  <p align="justify"><span lang="EN-GB">194.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 18 
  November 2003, the European Commission approved a Feasibility Study assessing 
  the readiness of Bosnia and Herzegovina (BH) to take its next steps towards 
  European integration, by opening negotiations for a Stabilization and 
  Association Agreement (SAA). The Commission concluded that it hopes to be able 
  to recommend the opening of SAA negotiations in 2005 - on the condition that 
  BH makes significant progress by June 2004 in 16 areas identified as 
  priorities for action: the first of the 16&nbsp; pre-conditions includes the &#147; 
  implementation of the Council of Europe&#146;s post-accession commitments, 
  especially in areas of democracy and human rights, compliance with existing 
  conditionality and international obligations; more effective governance; more 
  effective public administration; European integration; effective human rights 
  provisions; effective judiciary; tackling crime, especially organized crime; 
  managing asylum and migration; customs and taxation reform; budget 
  legislation; budget practice; reliable statistics; consistent trade policy; 
  integrated energy market; BH single economic space and public broadcasting. 
  This is obviously an extensive agenda.</span></p>
  <p align="justify"><span lang="EN-GB">195.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 
  High Representative has been insisting since November 2003 that the window of 
  opportunity would be closing fast if the BH Authorities do not accelerate the 
  pace of reform: at least 48 news laws need to be passed and 25 new 
  institutions created by June 2004. </span></p>
  <p align="justify"><span lang="EN-GB">196.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Both 
  the Prime Minister and the Director for European Integration, whom we saw in 
  May 2003 in Sarajevo, were overly optimistic and considered that accession 
  could already be envisaged for 2009. We have warned against disappointing the 
  public with unfeasible promises and it seems we were right. Visa free travel, 
  better job opportunities and prospects for a better future is what the 
  population wants, but the specific problems of BH will not be diluted with 
  accession to a greater ensemble such as the Union and much more needs to be 
  done to transform BH into a credible, sustainable and functioning partner. 
  Today BH is still unable to agree what sort of a State it is and even whether 
  it is a State at all. BH leaders still lack the most basic poltical consensus 
  about where its future lays. The only thing that unites all the citizens of BH, 
  whatever their nationality, is a yearning for the prosperity and security 
  summed up by the word &#147;Europe&#148;. This is not enough and will not solve the 
  problems faced by BH today.</span></p>
  <p align="center"><b><span lang="EN-GB">Appendix 1</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Programme of visit to Bosnia and 
  Herzegovina</span></b></p>
  <p align="justify"><b><span lang="EN-GB">1-4 December 2002</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Mr Laszlo SURJAN</span></b><span lang="EN-GB">,
  </span><b><span lang="EN-GB">MP</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Mrs Caroline RAVAUD</span></b><span lang="EN-GB">, 
  Head of Monitoring Committee Secretariat, PACE </span></p>
  <p align="justify"><b><span lang="SV">Dr Sonja MOSER-STARRACH</span></b><span lang="SV">, 
  SRSG CoE in BiH </span></p>
  <p align="justify"><b><span lang="EN-GB">Sunday, 01 December </span></b></p>
  <p align="justify"><span lang="EN-GB">14:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Arrival</span></p>
  <p align="justify"><span lang="EN-GB">15:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Accommodation </span></p>
  <p align="justify"><span lang="EN-GB">Hotel &#147;</span><b><span lang="EN-GB">ASTRA</span></b><span lang="EN-GB">&#148;<br>
  </span><i>Zelenih Beretki 9, 71000 Sarajevo <br>
  Tel/Fax:&nbsp; ++ 387 33 252&nbsp;100<br>
  E-mail: <a href="/cdn-cgi/l/email-protection#f199df9082858390b1939899df9f9485df9390"><span class="__cf_email__" data-cfemail="365e18574542445776545f5e18585342185457">[email&#160;protected]</span></a><br>
  <span lang="EN-GB">www.hotel-astra.com.ba </span></i></p>
  <p align="justify"><span lang="EN-GB">18:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with </span><b><span lang="EN-GB">Dr Sonja Moser-Starrach,&nbsp;
  </span></b><span lang="EN-GB">SRSG in BiH</span></p>
  <p align="justify"><span lang="EN-GB">19:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Dinner, &#147;Rule of Law Pillar&#148;</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs Michele Picard</span></b><span lang="EN-GB">, 
      President of Human Rights Chamber</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs&nbsp; Rakel Surlien</span></b><span lang="EN-GB">, 
      Head of the Independent Judicial Commission</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Frank Orton</span></b><span lang="EN-GB">, 
      BiH Ombudsman</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Zoran Pajic, </span></b>
      <span lang="EN-GB">Head of Legal Reforms, OHR&nbsp; </span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Hugh Chetwynd, </span></b>
      <span lang="EN-GB">Deputy of the SRSG</span></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Monday, 02 December</span></b></p>
  <p align="justify"><span lang="EN-GB">09:30-10:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of the BiH Parliamentary Assembly</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Sejfudin Tokic</span></b></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Nikola Spiric</span></b></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mariofil Ljubic</span></b></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Ilija Simic</span></b></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">10:30-11:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of the BiH Constitutional Court</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Dusan Kalember</span></b><span lang="EN-GB">, 
      Secretary General</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">11:30-12:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representative of UNHCR</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Udo Janz, </span></b>
      <span lang="EN-GB">Acting Head of Mission</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">12:30-13:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representative of BiH Ministry of Human Rights </span>and 
  Refugees </p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Kresimir Zubak</span></b><span lang="FR">, 
      Minister</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Slobodan Nagradic, </span></b>
      <span lang="FR">Assistant</span></li>
    </ul>
  </blockquote>
  <p align="justify">13:30-15:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Lunch, hosted by <b>BiH PA</b></p>
  <p align="justify"><span lang="EN-GB">15:00-16:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of the NGO-s</span></p>
  <ul>
    <li>
    <p align="justify"><b><span lang="EN-GB">Mr Srdan Dizdarevic</span></b><span lang="EN-GB">, 
    Helsinki Committee for Human Rights</span></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Mr Milan Mrda</span></b><span lang="EN-GB">, 
    Center for Promotion of Civil Society</span></li>
  </ul>
  <p align="justify"><span lang="EN-GB">16:30-18:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representative of the BiH Council of Ministers</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Dragan Mikerevic</span></b><span lang="FR">, 
      Chairman</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mrs Amela Alihodzic, </span></b>
      <span lang="FR">Assistant Minister MEI</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Srdjan Badnjar</span></b><span lang="FR">, 
      Assistant</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">19:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Opening ceremony, room to display the restored Sarajevo&nbsp; Haggadah<i><br>
  (</i></span><i><span lang="EN-GB">NationalMuseum</span></i><span lang="EN-GB">Sarajevo</span><i><span lang="EN-GB">)</span></i></p>
  <p align="justify"><span lang="EN-GB">20:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Dinner with Ambassadors (in alphabetical order)</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Rob Bosscher</span></b><span lang="EN-GB">, 
      Ambassador of the Netherlands</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Urs Breiter</span></b><span lang="EN-GB">, 
      Ambassador of Switzerland</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Jose R. Garagorri, </span>
      </b><span lang="EN-GB">Ambassdor of Spain</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Michael Humphreys, </span>
      </b><span lang="EN-GB">Head of Mission, Delegation of the European 
      Commission to BiH</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Mihail Koukakis</span></b><span lang="EN-GB">, 
      Ambassador of Greece</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Anders M�llander, </span>
      </b><span lang="EN-GB">Ambassador of Sweden</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Istvan Varga</span></b><span lang="EN-GB">, 
      Ambassador of Hungary</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Josip Vrobsic</span></b><span lang="EN-GB">, 
      Ambassador of Croatia</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">H.E. Mr Stanimir Vukicevic,
      </span></b><span lang="EN-GB">Ambassador of Yugoslavia</span></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Tuesday, 03 December</span></b></p>
  <p align="justify"><span lang="EN-GB">09:00-10:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with members of the BiH Presidency</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify">Mr&nbsp; Mirko Sarovic, Chairman</li>
      <li>
      <p align="justify">Mr&nbsp; Dragan Covic</li>
      <li>
      <p align="justify">Mr Sulejman Tihic</li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">10:00-11:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with SRSG UN in BiH:</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify">Ambassador Jacques Paul KLEIN ( UN hq, Nedzarici)</li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">11:15-12:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Inaugural Session of the BiH Parliament </span></p>
  <p align="justify"><span lang="EN-GB">12:00-12:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Press conference</span></p>
  <p align="justify"><span lang="EN-GB">12:15-13:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with Head of the OSCE mission to BiH</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b>Ambassador Robert Beecroft</b></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">13:00-18:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Field visit organised by the OHR to a collective centre for refugees near Foca</span></p>
  <p align="justify"><span lang="EN-GB">18:00- 19:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of Media&nbsp; </span></p>
  <p align="justify"><i><span lang="EN-GB">&nbsp; (CoE office Sarajevo)</span></i></p>
  <p align="justify"><span lang="EN-GB">19:30&nbsp;&nbsp;&nbsp; Working dinner 
  with representatives of the </span><b><span lang="EN-GB">BiH PA Delegation
  </span></b>at the Council of Europe</p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Sejfudin Tokic</span></b></li>
      <li>
      <p align="justify"><b><span lang="FR">Emina Zaciragic-Keco</span></b></li>
      <li>
      <p align="justify"><b><span lang="FR">Ivo Lozancic</span></b></li>
      <li>
      <p align="justify"><b><span lang="FR">Vedran Hadzovic</span></b></li>
      <li>
      <p align="justify"><b><span lang="FR">Samir Corovic</span></b></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Wednesday, 04 December</span></b></p>
  <p align="justify"><span lang="EN-GB">09:30-11:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of Political parties</span></p>
  <ul>
    <li>
    <p align="justify"><b><span lang="EN-GB">Vasilije Lukovic, DNZBiH 
    (Democratic People's Union)-</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Husein Vojnikovic, DSPBiH 
    (Democratic Party of Pensioners)</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Martin Ragu&#158;, Coalition HDZBiH 
    (Croat Democratic Union)&nbsp;and Croat Christian Democrats</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Azra Had&#158;iahmetovic, SBiH (Party 
    for BiH)</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">&#138;efik D&#158;aferovic, SDABiH (Party of 
    Democratic Action)</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Momcilo Novakovic, SDS (Serb 
    Democratic Party)</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Borislav Paravac, SDS</span></b></li>
    <li>
    <p align="justify"><b><span lang="EN-GB">Jozo Kri&#158;anovic, SDPBiH (Social 
    Democratic Party)</span></b></li>
  </ul>
  <p align="justify"><span lang="EN-GB">11:30 &#150; 12:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with Senior Deputy High Representative</span></p>
  <p align="justify"><span lang="EN-GB">-&nbsp;&nbsp; <b>Ambassador Gerhard 
  SCHR�MBGENS</b></span></p>
  <p align="justify"><span lang="EN-GB">14:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Departure to SarajevoAirport</span></p>
  <p align="center"><b><span lang="EN-GB">APPENDIX 2</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Programme of visit to Bosnia and 
  Herzegovina</span></b></p>
  <p align="justify"><b><span lang="EN-GB">19-24 May 2003</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Mr Laszlo SURJAN</span></b><span lang="EN-GB">,
  </span><b><span lang="EN-GB">MP</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Mrs Naira SHAKHTAKHTINSKAYA, MP</span></b></p>
  <p align="justify"><b><span lang="EN-GB">Ms Caroline RAVAUD</span></b><span lang="EN-GB">, 
  Head of Secretariat Monitoring Committee, PACE </span></p>
  <p align="justify"><b><span lang="EN-GB">Sunday, 18 May </span></b></p>
  <p align="justify"><span lang="EN-GB">18:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Reception</span></p>
  <p align="justify"><i><span lang="EN-GB">(Bosniak Institute) </span></i></p>
  <p align="justify"><span lang="EN-GB">20:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Dinner with representatives of the International Community</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><span lang="EN-GB"><b>Mr Robert BEECROFT</b>, Head of 
      the OSCE mission</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Ambassador Gerhard SCHR�MBGENS,
      </span></b><span lang="EN-GB">Senior Deputy High Representative</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Dr Christian SCHWARZ-SCHILLING</span></b><span lang="EN-GB">, 
      Mediator for BiH</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Dr Sonja MOSER-STARRACH</span></b><span lang="EN-GB">, 
      Special Representative of the Secretary General of the Council of Europe</span></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Monday, 19 May</span></b></p>
  <p align="justify"><span lang="EN-GB">09:00-18:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </span><b><span lang="EN-GB">COLLOQUY</span></b><span lang="EN-GB"> &#147;BiH on 
  the road to European integration&#148;, co-organised by the&nbsp;Political Affairs 
  Committee of the Parliamentary Assembly and the BiH Parliament </span></p>
  <p align="justify"><span lang="EN-GB">19:00&nbsp;&nbsp;&nbsp; Reception</span></p>
  <p align="justify"><b><span lang="EN-GB">Tuesday, 20 May</span></b></p>
  <p align="justify"><span lang="EN-GB">09:30-10:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with the members of the BiH Presidency</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Borisav Paravac</span></b><span lang="FR">, 
      Chairman</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Dragan Covic</span></b></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Sulejman Tihic</span></b></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">10:15-11:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of the BiH Council of Ministers</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Adnan Terzic</span></b><span lang="EN-GB">, 
      Prime Minister</span></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Mr Osman Topcagic</span></b><span lang="EN-GB">, 
  Director of directorate for European Integration</span></p>
  <p align="justify"><span lang="EN-GB">11:15-12:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of Collegiums of HR and HP&nbsp; BIH PA</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Sefik Dzaferovic,</span></b><span lang="EN-GB"> 
      Speaker of the House of Representatives </span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Nikola Spiric, </span></b>
      <span lang="FR">Deputy</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Velimir Jukic</span></b><span lang="EN-GB">, 
      Speaker of the House of Peoples </span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Mustafa Pamuk, </span></b>
      <span lang="FR">Deputy</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Goran Milojevic, </span></b>
      <span lang="FR">Deputy&nbsp; </span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs Azra Hadziahmetovic, </span>
      </b><span lang="EN-GB">BiH&nbsp; PA delegation to CoE&nbsp;&nbsp;&nbsp;&nbsp;
      </span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">12:15-13:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of the&nbsp; BiH Parliamentary Committees:&nbsp;
  </span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Elmir Jahic</span></b><span lang="EN-GB">, 
      Committee for Immigration, Human Rights, Refugees and Asylum </span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Tihomir Gligoric</span></b></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Mirsad Ceman</span></b><span lang="EN-GB">, 
      Chairman of the Constitutional and Legal Committee, House of 
      Representatives</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Petar Kunic</span></b></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Ilija Filipovic,</span></b><span lang="EN-GB"> 
      Constitutional and Legal Committee House of peoples</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Nade Radovic</span></b></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Hilmo Neimarlija</span></b></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs Azra Hadziahmetovic, </span>
      </b><span lang="EN-GB">BiH&nbsp; PA delegation to CoE </span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">13:30-15:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Lunch, hosted by BiH PA delegation to CoE</span></p>
  <p align="justify"><span lang="EN-GB">16:00-16:45&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meetings with representatives BiH Ministry of Justice</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Slobodan Kovac</span></b><span lang="EN-GB">, 
      Minister</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">16:45-17:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representative of BiH Ministry of Security</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b>Mr Barisa Colak</b>, Minister</li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">17:15-18:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representative of BiH Ministry of Human Rights and Refugees</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b>Mr Mirsad Kebo</b>, Minister</li>
    </ul>
  </blockquote>
  <p align="justify"><b>Wednesday, 21 May</b></p>
  <p align="justify"><span lang="EN-GB">08:00-09:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Working breakfast with representative of MFA:</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Mladen Ivanic</span></b><span lang="EN-GB">, 
      Minister of Foreign Affairs </span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">09:00-10:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meetings with representatives of Federation BiH</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr. Ahmed Hadzipasic, </span></b>
      <span lang="EN-GB">Prime Minister </span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Edin Music, </span></b>
      <span lang="EN-GB">Minister of Refugees and Displaced Persons</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Zijad Pasic,</span></b><span lang="EN-GB"> 
      Minister of Education</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">10:00-10:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with the President of the Federation BiH </span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Niko Lozancic</span></b><span lang="FR">, 
      President</span></li>
    </ul>
  </blockquote>
  <p align="justify">10:30-11:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with</p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Jakob Finci</span></b><span lang="EN-GB">, 
      President of the Civil service Agency </span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">11:00-11:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with member of the BiH House of Representatives</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b>Mr I<span lang="FR">vo Miro Jovic</span></b></li>
    </ul>
  </blockquote>
  <p align="justify">11:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Departure to <b>Mostar</b></p>
  <p align="justify">13:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Arrival in <b>Mostar </b></p>
  <p align="justify">13:30-14:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Lunch, Old bridge&nbsp;&nbsp;&nbsp;&nbsp; </p>
  <p align="justify"><span lang="EN-GB">14:15-15:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of Mostar city:</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b>Mr Hamdija Jahic</b>, Mayor</li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Ljubo Beslic</span></b><span lang="EN-GB">, 
      Deputy Mayor</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">15:00-15:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representative of OHR</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Eric Andersen</span></b><span lang="EN-GB">, 
      Head of Independent Judicial Commission &#150; Office of the High 
      Representative (OHR), Mostar </span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">15:45-16:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Visit to secondary school, &#147;2 in 1&#148;, meeting with:</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs Dujmovic Mirjana</span></b><span lang="EN-GB">, 
      Cantonal Minister of Education</span></li>
      <li>
      <p align="justify"><b><span lang="FR">Mr Halil Spago</span></b><span lang="FR">, 
      Deputy</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr. Thomas Young, </span></b>
      <span lang="EN-GB">OSCE Mostar, Director</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">Visit to secondary school on east part 
  of Mostar</span></p>
  <p align="justify"><span lang="EN-GB">16:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Departure to </span><b><span lang="EN-GB">Banja Luka</span></b></p>
  <p align="justify"><span lang="EN-GB">21:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Arrival in Banja Luka</span></p>
  <p align="justify"><b><span lang="EN-GB">Thursday, 22 May</span></b></p>
  <p align="justify"><span lang="EN-GB">10:00-10:50&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of Republika Srpska (RS) Government</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Dragan Mikerevic</span></b><span lang="EN-GB">, 
      Prime Minister</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Srdja Vranic</span></b><span lang="EN-GB">, 
      Chief of Cabinet</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">11:00-11:45&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with President of Republika Srpska</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Dragan Cavic </span></b></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">12:00-13:15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of&nbsp; the National Assembly of RS</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b>Mr Dragan Kalinic, </b>Speaker</li>
      <li>
      <p align="justify"><b>Mr Tomislav Tomljenovic, </b>Deputy</li>
      <li>
      <p align="justify"><b>Mr Sefik Hafizovic,</b> Deputy</li>
    </ul>
  </blockquote>
  <p align="justify">13:30-15:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with:</p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Gojko Savanovic</span></b><span lang="EN-GB">, 
      Minister of Education of RS</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Jasmin Samardzic</span></b><span lang="EN-GB">, 
      Minister of Refugees and Displaced Person of RS </span></li>
    </ul>
  </blockquote>
  <p align="justify">15:00-16:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with:</p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Radomir Njegus</span></b><span lang="EN-GB">, 
      Police Director of RS</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">17:00-18:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of <b>NGO&nbsp; </b></span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Branko TODOROVIC, </span></b>
      <span lang="EN-GB">Chairman of the RS Helsinki Committee for Human Rights</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Goran BUBIC, </span></b>
      <span lang="EN-GB">International Lex</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs Aleksandra Petric, </span>
      </b><span lang="EN-GB">United Women Association Banja Luka</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Aleksandar Zivanovic,</span></b><span lang="EN-GB">Helsinki 
      Citizens Assembly</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">20:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Dinner with Head of OHR Banja Luka</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Graham D. Day</span></b></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Friday, 23 May</span></b></p>
  <p align="justify"><span lang="EN-GB">09:30-11:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of daily newspaper &#147;Nezavisne Novine&#148;</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Zeljko Kopanja, </span></b>
      <span lang="FR">Director</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">11:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Departure to </span><b><span lang="EN-GB">Brcko</span></b></p>
  <p align="justify"><span lang="EN-GB">14:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Arrival at Brcko</span></p>
  <p align="justify"><span lang="EN-GB">14:00-15:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of OHR Brcko Legal Section</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Ilias Chatzis</span></b><span lang="EN-GB">, 
      Head of section</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mrs Catharina de Lange</span></b><span lang="EN-GB">, 
      Community Development Officer</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">15:00-16:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of the Brcko District </span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="FR">Mr Sinisa Kisic</span></b><span lang="FR">, 
      Mayor</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Mirsad Djapo</span></b><span lang="EN-GB">, 
      Speaker of the Brcko District Parliament</span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">16:30-18:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Visit to </span><b><span lang="EN-GB">Prutace</span></b><span lang="EN-GB">, 
  meeting with representatives of the </span><b><span lang="EN-GB">Roma</span></b><span lang="EN-GB"> 
  minorities</span></p>
  <p align="justify"><span lang="EN-GB">19:30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Dinner with Senior Deputy High Representative and Supervisor for Brcko 
  District </span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Ambassador Henry L. Clarke</span></b></li>
    </ul>
  </blockquote>
  <p align="justify"><b><span lang="EN-GB">Saturday, 24 May</span></b></p>
  <p align="justify"><span lang="EN-GB">08:30-10:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Meeting with representatives of Association of Cities and Municipalities of RS</span></p>
  <blockquote>
    <ul>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Dragomir Ljubojevic</span></b><span lang="EN-GB">, 
      President of association and major of Bijeljina</span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Brano Jovicic</span></b><span lang="EN-GB">, 
      Secretary General </span></li>
      <li>
      <p align="justify"><b><span lang="EN-GB">Mr Dragan Peric, </span></b>
      <span lang="EN-GB">Bijeljina Municipal Assembly&nbsp;&nbsp; </span></li>
    </ul>
  </blockquote>
  <p align="justify"><span lang="EN-GB">10:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Departure to </span><b><span lang="EN-GB">Sarajevo</span></b></p>
  <p align="justify"><span lang="EN-GB">14:00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Arrival</span></p>
  <p align="justify"><span lang="EN-GB">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  (SarajevoAirport)</span></p>
  <p align="center"><b><span lang="EN-GB">APPENDIX 3</span></b></p>
  <p align="justify"><b><span lang="EN-GB">PARLIAMENTARY ASSEMBLY</span></b></p>
  <p align="justify"><b><span lang="EN-GB">OF THE COUNCIL OF EUROPE</span></b></p>
  <p align="justify"><b><a href="../../AdoptedText/TA02/EOPI234.htm">Opinion No. 
  234 (2002)1</a></b></p>
  <p align="justify"><b><span lang="EN-GB">Bosnia and Herzegovina&#146;s application 
  for membership of the Council of Europe</span></b></p>
  <hr color="#000000" size="1" width="50%">
  <p align="justify"><i>Reporting committee: </i>Committee on the Honouring of 
  Obligations and Commitments by Member States of the Council of Europe 
  (Monitoring Committee)</p>
  <p align="justify"><i>Reference to Committee: </i>
  <a href="../../AdoptedText/TA97/ERES1115.HTM">Resolution 1115 (1997) </a>from 
  29 January 1997</p>
  <p align="justify"><i>Draft resolution and draft recommendation</i> 
  unanimously adopted by the Committee on 26 May 2004</p>
  <p align="justify"><i>Members of the committee: </i><b>Mrs Durrieu (Chairperson)</b>,
  <b>Mr Frunda, Mrs Tevdoradze, Mrs Severinsen (Vice-Chairpersons)</b>, Mr 
  Agramunt Font De Mora, Mrs Aguiar, <b>Mr Ak�am</b>, Mr Akhvlediani, <b>Mr B. 
  Aliyev</b>, Mr Andr�, Mr Arzilli, <b>Mr Atkinson</b>, Mr Ba&#154;ka, Mrs Bauer, Mr 
  Bernik, Mrs Bilgehan, Mr Bindig, Mrs Bousakla, Mr van den Brande, Mr Budin, <b>
  Mrs Burbiene</b>, Mr Cabrnoch, <b>Mr M. Cavusoglu</b>, Mr Cekuolis, <b>Mr 
  Christodoulides</b>, Mr Cilevics, Mr Colombier, Mr Debono Grech, Mrs 
  Delvaux-Stehres, Mr Einarsson, Mr Elo, <b>Mr E�rsi</b>, Mr Glesener, Mr Gross, 
  Mr Gusenbauer, Mr Hancock, Mr Hedrich, Mr Hegyi, <b>Mr Herkel, Mr Holovaty</b>, 
  Mrs J��tteenm�ki, Mr Jakic, Mr Jaskiernia, Mr Jurgens, <b>Lord Kilclooney</b>, 
  Mr Kirilov, Mrs Konglevoll, Mr Kosachev, <b>Mr Kristovkis</b>, <b>Mr 
  Kvakkestad</b>, Mrs Leutheusser-Schnarrenberger, Mr van der Linden, Mr Lintner, 
  Mr Mart�nez Casa�, Mr Marty, Mr Medeiros Ferreira, <b>Mr Melc�k</b>, Mr 
  Mikkelsen, <b>Mr Mollazade</b>, Mr O&#146;Keeffe, Mr Olteanu, <b>Mr Pangalos</b>, 
  Mrs Petrova-Mitevska, Mrs Petursdottir, Mr Prijmireanu, <b>Mr</b> <b>Rakhansky</b>, 
  Mrs Ringstad, Mr Rivolta, <b>Mr Rustamyan</b>, <b>Mr Sasi</b>, <b>Mrs 
  Shakhtakhtinskaya</b>, Mr Shybko, <b>Mr Slutsky</b>,<b> Mr Smorawinski</b>, Mr 
  Soendergaard, Mr Spindelegger, Mrs Stoyanova, <b>Mr Surjan</b>, Mr Tepshi, <b>
  Mr Tk�c</b>, Mr Vis, <b>Mrs Wohlwend</b>, Mr Y��ez Barnuevo, <b>Mr Zacchera</b>.
  </p>
  <p align="justify"><i>N.B. The names of the members who took part in the 
  meeting appear in bold.</i></p>
  <p align="justify"><i>Head of the secretariat:</i>Mrs Ravaud</p>
  <p align="justify"><i>Secretaries to the committee:</i> Mr Gruden, Mrs Odrats, 
  Mr Cupina</p>
  <hr color="#000000" size="1">
  <p align="justify"><a href="#_ftnref1" name="_ftn1" title><span lang="EN-GB">
  [1]</span></a> Its population was always mixed: based on the pre-war census of 
  1991, there were 43, 7 % Muslims, 31, 3 % Serbs and 17, 3 % Croats, plus a 
  number of other groups such as Roma or Jews.</p>
  <p align="justify"><a href="#_ftnref2" name="_ftn2" title><span lang="EN-GB">
  [2]</span></a> Including 2&nbsp;541 bodies exhumed from mass graves in the area of 
  Srebrenica.</p>
  <p align="justify"><a href="#_ftnref3" name="_ftn3" title><span lang="EN-GB">
  [3]</span></a><span lang="EN-GB"> The total number of returnees in the first 
  three months of 2004 is 1&nbsp;367 (including 1&nbsp;032 so-called minority returns). 
  This represents a 75 % decrease as compared to the first three months of 2003.</span></p>
  <p align="justify"><a href="#_ftnref4" name="_ftn4" title><span lang="EN-GB">
  [4]</span></a><span lang="EN-GB"> Around 40&nbsp;000 houses were damaged during the 
  war.</span></p>
  <p align="justify"><a href="#_ftnref5" name="_ftn5" title><span lang="EN-GB">
  [5]</span></a><span lang="EN-GB"> The CRPC, established in March 1996, is 
  composed of 3 international members, appointed by the President of the 
  European Court of Human Rights, and of 6 national members.</span></p>
  <p align="justify"><a href="#_ftnref6" name="_ftn6" title><span lang="EN-GB">
  [6]</span></a><span lang="EN-GB"> Since 1998 Canada, for example,&nbsp; has 
  donated more than 8,2 millions USD and announced on 12 May 2004 another 
  donation of 3,3 million USD. A total of round 6, 5&nbsp; million &#128;&nbsp; is to 
  be spent on de-mining in 2004, of which 1,7 million &#128; will be financed from 
  the State budget.</span></p>
  <p align="justify"><a href="#_ftnref7" name="_ftn7" title><span lang="EN-GB">
  [7]</span></a><span lang="EN-GB"> The Security Council has recently reiterated 
  this requirement in its resolution 1534, adopted on 26 March 2004.</span></p>
  <p align="justify"><a href="#_ftnref8" name="_ftn8" title><span lang="EN-GB">
  [8]</span></a><span lang="EN-GB"> All further indictments should be notified 
  by the end of 2004, all 40 pending trials should be concluded by 2008 and all 
  appeals by 2010.</span></p>
  <p align="justify"><a href="#_ftnref9" name="_ftn9" title><span lang="EN-GB">
  [9]</span></a><span lang="EN-GB"> Two individual and one company bank account 
  were frozen on 7 March 2003, 13 on 13 July 2003 and 10 on 10 February 2004.</span></p>
  <p align="justify"><a href="#_ftnref10" name="_ftn10" title>
  <span lang="EN-GB">[10]</span></a><span lang="EN-GB"> In 2001, General 
  Radislav Krstic was sentenced in first instance to 47 years. On 19 April 2004, 
  the ICTY appeal chamber confirmed its verdict of genocide for the Srebrenica 
  massacre but reduced General Krstic&#146;s sentence to 37 years of prison, 
  considering that, as a commanding officer, he had aided and abetted genocide 
  but not committed it. In 2003; Momir Nikolic was given 27 years and Dragan 
  Obrenovic 17 years.</span></p>
  <p align="justify"><a href="#_ftnref11" name="_ftn11" title>
  <span lang="EN-GB">[11]</span></a><span lang="EN-GB"> Following a referendum 
  that was boycotted by the Serbs, BH declared its independence from the former 
  Yugoslavia on 1 March 1992. On 22 May 1992, it was admitted to the United 
  Nations, after having been recognised both by the EU and the USA</span></p>
  <p align="justify"><a href="#_ftnref12" name="_ftn12" title>
  <span lang="EN-GB">[12]</span></a><span lang="EN-GB"> At present, the lawsuit 
  before the ICJ is financed by the Foundation Justice for BH, composed of the 
  Bosniak intellectual Congress, the Croat&#146;s People Council, the Mothers of 
  Srebrenica and Podrinje and the Society for endangered people. The Federation 
  Government also contributed with a sum of around 500&nbsp;000 KM.</span></p>
  <p align="justify"><a href="#_ftnref13" name="_ftn13" title>
  <span lang="EN-GB">[13]</span></a><span lang="EN-GB"> One of the few 
  successful international agreements concluded since the end of the war 
  concerns the establishment of the Sava river basin management agency.</span></p>
  <p align="justify"><a href="#_ftnref14" name="_ftn14" title>
  <span lang="EN-GB">[14]</span></a><span lang="EN-GB"> Vital in particular for 
  the RS, as there would be no territorial continuity between Western and Easter 
  RS save for a five km wide corridor passing through Brcko district.</span></p>
  <p align="justify"><a href="#_ftnref15" name="_ftn15" title>
  <span lang="EN-GB">[15]</span></a><span lang="EN-GB"> For more information on 
  the Brcko district, see the Report by the International Crisis Group &#147;Bosnia&#146;s 
  Brcko: getting in, getting on and getting out&#148;.</span></p>
  <p align="justify"><a href="#_ftnref16" name="_ftn16" title>
  <span lang="EN-GB">[16]</span></a><span lang="EN-GB"> Everything is of course 
  not perfect in the Brcko district:&nbsp; there was in particular a lot of 
  resentment over the way the Supervisor handled the issue of Arizona Market, a 
  tax free area.</span></p>
  <p align="justify"><a href="#_ftnref17" name="_ftn17" title><span lang="FR">
  [17]</span></a><b><span lang="FR"> </span></b>On 11 November 2003, the Acting 
  Supervisor of Brcko, Gerhard Sontheim, revoked the appointments of Mr. Sinisa 
  Kisic to the position of the Mayor of Brcko and of Mr. Ismet Dedeic to the 
  position of Head of Department for Urbanism, Real Estate and Economic 
  Development. The Supervisor&#146;s action followed the confirmation of an 
  indictment against them and 5 public employees.</p>
  <p align="justify"><a href="#_ftnref18" name="_ftn18" title>
  <span lang="EN-GB">[18]</span></a><span lang="EN-GB"> Supervisor Clarke has 
  been replaced by Susan Johnson, another American diplomat, who was appointed 
  to this post by the High Representative on 1 January 2004.</span></p>
  <p align="justify"><a href="#_ftnref19" name="_ftn19" title>
  <span lang="EN-GB">[19]</span></a><span lang="EN-GB"> As was pointed out by 
  the authorities, this sum also includes the overhead expenses of the 
  International Community, although the real figure has never been determined.</span></p>
  <p align="justify"><a href="#_ftnref20" name="_ftn20" title>
  <span lang="EN-GB">[20]</span></a><span lang="EN-GB"> The Central Bank (CBBH) 
  is one of the few institutions headed by an international (presently, until 
  the end of 2004, Peter Nicholl, from New Zealand) against which we never heard 
  a single word of criticism: it seems to enjoy everybody&#146;s trust and 
  confidence.</span></p>
  <p align="justify"><a href="#_ftnref21" name="_ftn21" title>
  <span lang="EN-GB">[21]</span></a><span lang="EN-GB"> The State Auditor 
  General also audited State institutions in 2003: the only ones that got a 
  clear bill of health were the Central Bank and the Office of the State 
  Ombudsman. The Presidency, for example, had already spent its yearly budget by 
  July 2003.</span></p>
  <p align="justify"><span lang="EN-GB">
  <a href="#_ftnref22" name="_ftn22" title>[22]</a> </span>On 29 September 2003, 
  the results of the special audit of BH Telecom and Croat Posts and 
  Telecommunications (HPT) Mostar revealed chaotic management, incorrect tender 
  practices and evidence of large expenditures of public funds by senior 
  officials with little or no checks and balances, causing millions of KM in 
  losses every year (losses of approximately 60 million KM and 18 million KM per 
  annum in BH Telecom and in HPT Mostar, respectively).&nbsp; On 1 October 2003, 
  the results of special audit on Telekom Srpske revealed annual losses of 38 
  million KM due to poor management and violations of law.&nbsp; The findings, 
  which indicate that Telekom Srpske has written off debts for telephone bills 
  of some political parties in the amount of 300,000 KM, are being referred to 
  the BH Election Commission for further consideration.</p>
  <p align="justify"><a href="#_ftnref23" name="_ftn23" title>
  <span lang="EN-GB">[23]</span></a> The Living Standard Measurement Survey 
  (LSMS) of 2002 determined that 19.5% of BH population may be classified as 
  poor. According to international standards, the level of inequalities in BH is 
  relatively low: as a result, the percentage of the poor is relatively small, 
  but there are a large number of people (additional 30%) who are just above the 
  poverty line, with very limited revenues, who are sensitive to shocks such as 
  employment insecurity or poor health condition. The poverty level is higher in 
  the RS (25%) than in the FBH (16%), which is caused by lower income levels in 
  the RS. As a result of extensive relocations of the population during the war, 
  around 80 percents of the population now lives in urban areas.</p>
  <p align="justify"><a href="#_ftnref24" name="_ftn24" title>
  <span lang="EN-GB">[24]</span></a><span lang="EN-GB"> According to a recent 
  UNDP study (May 2004), around 96&nbsp;000 young people left BH in the period 1996 
  to 2001; 60% of the young are unemployed and 77,7 % of young people would like 
  to leave the country, of which only 40% would consider returning if the 
  situation improves.</span></p>
  <p align="justify"><a href="#_ftnref25" name="_ftn25" title>
  <span lang="EN-GB">[25]</span></a><span lang="EN-GB"> The entity customs 
  administrations will finally be merged, after much pressure from the 
  International Community: see below, Chapter IV.</span></p>
  <p align="justify"><a href="#_ftnref26" name="_ftn26" title>
  <span lang="EN-GB">[26]</span></a><span lang="EN-GB"> A State level phyto-sanitary 
  law was adopted in August 2003 but the relevant state level body has not yet 
  been set up.</span></p>
  <p align="justify"><a href="#_ftnref27" name="_ftn27" title>
  <span lang="EN-GB">[27]</span></a><span lang="EN-GB">The BH Association of 
  International Road Transport Operators became a full member of the 
  International Road Transport Union (IRU) only in February 2004 and will be 
  able to issue TIR carnets only by the end of 2004.</span></p>
  <p align="justify"><a href="#_ftnref28" name="_ftn28" title>
  <span lang="EN-GB">[28]</span></a> Municipal level in RS and Federation, 
  cantonal level in the Federation, entity level, State level and the Brcko 
  district, plus.the Office of the High Representative.</p>
  <p align="justify"><a href="#_ftnref29" name="_ftn29" title>
  <span lang="EN-GB">[29]</span></a><span lang="EN-GB"> According to Article 5 
  of the State Constitution, the tripartite Presidency consists of one Bosniak, 
  one Croat and one Serb. The same applies to the House of Peoples, which 
  according to Article 4 of the Constitution, comprises 15 Delegates, 5 Serbs, 5 
  Bosniaks and 5 Croats. Only Serbs, Croats or Bosniaks can serve as chair or 
  vice chair of both Houses of Parliament. </span>For the 2002 elections to the 
  State Presidency there were 2 separate lists. Voters registered to vote in the 
  RS could only vote for the Serb Member. Voters registered to vote in the 
  Federation received the Bosniak and Croat list and could choose only one 
  candidate. This is a clear discrimination against &#147;Others&#148;.</p>
  <p align="justify"><a href="#_ftnref30" name="_ftn30" title>
  <span lang="EN-GB">[30]</span></a><span lang="EN-GB"> The Republika Srpska had 
  already amended its Constitution to provide for direct election of mayors in 
  February 2004.</span></p>
  <p align="justify"><a href="#_ftnref31" name="_ftn31" title>
  <span lang="EN-GB">[31]</span></a><span lang="EN-GB"> For example, in the 
  respective Parliaments of the Entities, the Speaker must have two 
  vice-presidents of the two other ethnicities. The same applies to the 
  Presidency of the Entities.&nbsp; Both the Croat and Bosniak vice-presidents 
  of the RS National Assembly, for example, have complained on a number of 
  occasions that they were just &#147;Ikebana&#148;, i.e. flower decoration, and were not 
  given any duties.</span></p>
  <p align="justify"><a href="#_ftnref32" name="_ftn32" title>
  <span lang="EN-GB">[32]</span></a><span lang="EN-GB"> According to the latest 
  polls, 70% of the population in the RS feels &#147;Serbian&#148; rather than Bosnian; 
  the Croats still fight for total control of &#147;their&#148; cantons in the Federation 
  and consider themselves to be discriminated as a constituent people and the 
  Bosniaks consider themselves to be under-represented in particular in the 
  judiciary.</span></p>
  <p align="justify"><a href="#_ftnref33" name="_ftn33" title>
  <span lang="EN-GB">[33]</span></a><span lang="EN-GB"> On the initiative of the 
  HDZ caucus in the BH Parliament, the Constitutional and legal affairs 
  committee initiated on 5 May 2004 a procedure for holding a public debate on 
  possible constitutional changes. President Tihic has also stated on a number 
  of occasions that the Dayton constitution needs to be amended.</span></p>
  <p align="justify"><a href="#_ftnref34" name="_ftn34" title>
  <span lang="EN-GB">[34]</span></a><span lang="EN-GB"> See, in particular, the 
  ESI article &#147;Travails of the European Raj&#148;, published in the Journal of 
  Democracy in July 2003 and the ICG report of July 2003 &#147;Paddy Ashdown and the 
  paradoxes of state building&#148;.</span></p>
  <p align="justify"><a href="#_ftnref35" name="_ftn35" title>
  <span lang="EN-GB">[35]</span></a><span lang="EN-GB"> See Doc. 9621, Addendum 
  II, 8 November 2002, Addendum II to the Progress report of the Bureau of the 
  Assembly and of the Standing Committee, Report of the Ad Hoc Committee for the 
  Observation of the Parliamentary Elections in Bosnia and Herzegovina (5 
  October 2002).</span></p>
  <p align="justify"><a href="#_ftnref36" name="_ftn36" title>
  <span lang="EN-GB">[36]</span></a><span lang="EN-GB"> This process took about 
  4 months at all levels, except for the Herzegovina-Neretva canton, where, by 
  June 2003, the parties had still not agreed on the repartition of posts.</span></p>
  <p align="justify"><a href="#_ftnref37" name="_ftn37" title>
  <span lang="EN-GB">[37]</span></a><span lang="EN-GB"> See the International 
  Crisis Group report of 22 July 2003 : &#147;Bosnia&#146;s nationalist governments : 
  Paddy Ashdown and the paradoxes of state building&#148;.</span></p>
  <p align="justify"><a href="#_ftnref38" name="_ftn38" title>
  <span lang="EN-GB">[38]</span></a><span lang="EN-GB"> For details, see the 
  OHR&#146;s website at <a href="http://www.ohr.int/">www.ohr.int</a></span></p>
  <p align="justify"><a href="#_ftnref39" name="_ftn39" title>
  <span lang="EN-GB">[39]</span></a><span lang="EN-GB"> The OSCE mission in BH 
  is one of the largest in the Balkans: it currently employs around 800 people, 
  of which 500 are nationals of BH. No data is available as to its budget.</span></p>
  <p align="justify"><a href="#_ftnref40" name="_ftn40" title>
  <span lang="EN-GB">[40]</span></a> The first High Representative in Bosnia and 
  Herzegovina was Carl Bildt (December 1995 - June 1997). He was succeeded by 
  Carlos Westendorp (June 1997 - July 1999). Carlos Westendorp was succeeded by 
  Wolfgang Petritsch (August 1999 - 27 May 2002). The current High 
  Representative, since May 2002, is Lord Paddy Ashdown. He has also been 
  appointed Special Representative of the European Union. His mandate has been 
  recently extended to May 2005.</p>
  <p align="justify"><a href="#_ftnref41" name="_ftn41" title>
  <span lang="EN-GB">[41]</span></a> Its budget for 2004 is 21, 1 million Euros. 
  Contributions to the OHR budget break down as follows: EU 53 %, USA 22%, Japan 
  10%, Russia 4%, Canada 3.03 %, OIC 2.5%, others: 5.47%.</p>
  <p align="justify"><a href="#_ftnref42" name="_ftn42" title>
  <span lang="EN-GB">[42]</span></a><span lang="EN-GB"> This inaugural session 
  lasted exactly five minutes: all Serb delegates walked out in protest against 
  the imposition of the Law on the Council of Ministers.</span></p>
  <p align="justify"><a href="#_ftnref43" name="_ftn43" title>
  <span lang="EN-GB">[43]</span></a><span lang="EN-GB"> At present the members 
  of the Presidency are: </span>a Serb (Mirko Sarovic, SDS, former president of 
  RS, who resigned in April 2003 and was replaced by B. Paravac), a Croat (presently 
  Dragan Covic, HDZ) and a Bosniak (presently Sulejman Tihic, president of SDA).</p>
  <p align="justify"><a href="#_ftnref44" name="_ftn44" title>
  <span lang="EN-GB">[44]</span></a>The members of the House of Representatives 
  are elected through direct universal suffrage by the electorate of the 
  Federation and RS. The delegates to the House of Peoples are appointed by the 
  Parliaments of the Entities.</p>
  <p align="justify"><a href="#_ftnref45" name="_ftn45" title>
  <span lang="EN-GB">[45]</span></a> The arrest of Fiuljanin, on suspicion of 
  having spied on SFOR Eagle base, was severely criticised because he was kept 
  incommunicado in SFOR detention facilities for over 3 months; he has now been 
  released and was sentenced with 5 months of prison for illegal possession of 
  weapons.</p>
  <p align="justify"><a href="#_ftnref46" name="_ftn46" title>
  <span lang="EN-GB">[46]</span></a><span lang="EN-GB"> This implementation will 
  undoubtedly be complicated by the fact that in the Federation, 13&nbsp;000 Croat 
  and 24&nbsp;000 Bosniak soldiers have sued the Federation for unpaid salaries and 
  allowances between 1999 and 2002.</span></p>
  <p align="justify"><a href="#_ftnref47" name="_ftn47" title>
  <span lang="EN-GB">[47]</span></a><span lang="EN-GB"> Today BH has seven 
  universities, as compared with four universities before the war.</span></p>
  <p align="justify"><a href="#_ftnref48" name="_ftn48" title>
  <span lang="EN-GB">[48]</span></a><span lang="EN-GB"> &#147;Municipal&#148; courts in 
  the Federation and &#147;basic&#148; courts in RS are first instance courts. &#147;Cantonal&#148; 
  courts in the Federation and &#147;district&#148; courts in RS have appellate 
  jurisdiction plus first jurisdiction for a reduced number of cases. Supreme 
  Courts deal with an assortment of criminal, civil and administrative matters 
  in the first and second instances, as well as extraordinary legal remedies.&nbsp; 
  Both Entities also have constitutional courts.</span></p>
  <p align="justify"><a href="#_ftnref49" name="_ftn49" title>
  <span lang="EN-GB">[49]</span></a><span lang="EN-GB"> 10 judges, one minister 
  of justice and one prosecutor were dismissed or suspended on 24 May 2002.</span></p>
  <p align="justify"><a href="#_ftnref50" name="_ftn50" title>
  <span lang="EN-GB">[50]</span></a><span lang="EN-GB"> Judges in the supreme 
  and constitutional courts are elected, not appointed.</span></p>
  <p align="justify"><a href="#_ftnref51" name="_ftn51" title>
  <span lang="EN-GB">[51]</span></a><span lang="EN-GB"> The state level 
  Constitutional Court unanimously ruled on 26 March 2004 that the prefix �&nbsp;srpsko&nbsp;� 
  or &#147;srpski&#148; before the names of 13 towns was unconstitutional.</span></p>
  <p align="justify"><a href="#_ftnref52" name="_ftn52" title>
  <span lang="EN-GB">[52]</span></a><span lang="EN-GB"> See the first evaluation 
  report concerning Bosnia-Herzegovina adopted by GRECO (Group of States against 
  Corruption) in July 2003 (Greco Eval I (2002) 10).</span></p>
  <p align="justify"><a href="#_ftnref53" name="_ftn53" title>
  <span lang="EN-GB">[53]</span></a><span lang="EN-GB"> The first Human Rights 
  Ombudsperson was Gret Haller, a former Swiss parliamentarian.&nbsp;</span></p>
  <p align="justify"><a href="#_ftnref54" name="_ftn54" title>
  <span lang="EN-GB">[54]</span></a><span lang="EN-GB"> One of the three 
  ombudspersons resigned on 19 January 2004, barely 2 weeks after having taken 
  up her duties. The new Serb member, Vitomir Popovic, was appointed at the end 
  of February 2004.</span></p>
  <p align="justify"><a href="#_ftnref55" name="_ftn55" title>
  <span lang="EN-GB">[55]</span></a><span lang="EN-GB"> The Federation Ombudsmen 
  have been operating since January 1995. The Republika Srpska Ombudsmen started 
  functioning in 2000. One of the three RS Ombudsmen resigned in 2003 and has 
  not been replaced.</span></p>
  <p align="justify"><a href="#_ftnref56" name="_ftn56" title><span lang="FR">
  [56]</span></a><span lang="EN-GB"> The status and rank of the Ombudsmen of the 
  Federation of BH is assimilated to that of the President of the Supreme Court 
  of the Federation whereas in Republika Srpska, their rank and salary are 
  assimilated to that of a judge of the Supreme Court. The State Ombudsmen&#146;s 
  rank and salary are equated with that of members of the Presidency of the 
  Council of Ministers of BH. This being considerably lower than the rank and 
  status afforded to the Entity Ombudsmen, the first action taken upon their 
  nomination by the State Ombudsmen on 14 January 2004 was to ask the Venice 
  Commission for an opinion on this subject.</span></p>
  <p align="justify"><a href="#_ftnref57" name="_ftn57" title>
  <span lang="EN-GB">[57]</span></a><span lang="EN-GB"> See the Srebrenica case 
  mentioned in Chapter II.</span></p>
  <p align="justify"><span lang="EN-GB">
  <a href="#_ftnref58" name="_ftn58" title>[58]</a> </span>In its opinion on the 
  Constitutional situation in Bosnia and Herzegovina with particular regard to 
  human rights protection instruments (seeVenice Commission, Annual Report of 
  Activities for 1996, pp. 44-60; CDL-INF (98) 15) the Venice Commission found 
  that the fields of respective competences of the Constitutional Court and the 
  Human Rights Chamber were partially overlapping.</p>
  <p align="justify"><a href="#_ftnref59" name="_ftn59" title>
  <span lang="EN-GB">[59]</span></a><span lang="EN-GB"> We were informed by the 
  Secretary General of the Constitutional court, whom we met during our December 
  2002 visit that the amount of appropriations for the Court in the State budget 
  for 2003 was 1 951 056 KM. 38 people were on the payroll, including 9 judges. 
  Among them there are only 6 lawyers who are working on cases.</span></p>
  <p align="justify"><a href="#_ftnref60" name="_ftn60" title>
  <span lang="EN-GB">[60]</span></a><span lang="EN-GB"> Protocols 12 and 13 were 
  ratified on 29 July 2003.</span></p>
  <p align="justify"><a href="#_ftnref61" name="_ftn61" title>
  <span lang="EN-GB">[61]</span></a><span lang="EN-GB"> Although &#147;preparations&#148;&nbsp; 
  have started, according to the authorities.</span></p>
  <p align="justify"><a href="#_ftnref62" name="_ftn62" title>
  <span lang="EN-GB">[62]</span></a><span lang="EN-GB"> The BH judge was finally 
  elected by the Assembly in January 2004, after the second round had to be 
  postponed in September 2003.</span></p>
  <p align="justify"><a href="#_ftnref63" name="_ftn63" title>
  <span lang="EN-GB">[63]</span></a><span lang="EN-GB"> On 30 April 2004, BH 
  signed the European Convention on extradion and its two Protocols, the 
  European Convention on mutual assistance in criminal matters, the Convention 
  on transfer of sentenced persons, the Convention on compensation of victims of 
  violent crimes, the Convention on the transfer of proceedings in criminal 
  matters and the outline Convention on transfrontier co-operation between 
  territorial communities or authorities and its two Protocols. On 11 May 2004 
  it signed the revised European social charter.</span></p>
  <p align="justify"><a href="#_ftnref64" name="_ftn64" title>
  <span lang="EN-GB">[64]</span></a><span lang="EN-GB"> A framework convention 
  for the protection of minorities was also adopted at State level, without 
  intervention by the High Representative, in April 2003. It has however 
  remained a paper tiger, since the Entities did not transpose it into their 
  legislation within the required six months time limit.</span></p>
  <p align="justify"><a href="#_ftnref65" name="_ftn65" title>
  <span lang="EN-GB">[65]</span></a><span lang="EN-GB"> The report was 
  eventually submitted on 20 February 2004, i.e. more than two and a half years 
  later than the fixed date (1 June 2001).</span></p>
  <p align="justify"><a href="#_ftnref66" name="_ftn66" title>
  <span lang="EN-GB">[66]</span></a><span lang="EN-GB"> It is to be noted 
  however that the corresponding law on civil service was enacted in the 
  Federation only in June 2003.</span></p>
  <p align="justify">&nbsp;</p>
  </font>
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