Europe and the Mediterranean

Europe and the Mediterranean 389 Chapter V Europe and the Mediterranean Political and security questions In 2004, progress towards the restoration of peace and stability and the settlement of several long-standing disputes in Europe and the Mediterranean suffered serious setbacks, as renewed violence risked derailing the stabilization and normalization process in the Serbia and Montenegro province of Kosovo, and almost brought the Georgian/Abkhaz peace process to a standstill, while efforts to reunite Cyprus in a bizonal, bicommunal federation ended in a stalemate with no immediate prospects of a way forward. Only in Bosnia and Herzegovina was there any significant progress to report regarding United Nations efforts to restore stability. Bosnia and Herzegovina made steps towards restoring normality to its institutions and promoting further Euro-Atlantic integration by adopting requisite legislation and establishing new State-level institutions, although the continued lack of cooperation, especially by its constituent Republic, Republika Srpska, with the International Tribunal for the Former Yugoslavia resulted in the country being denied membership in the North Atlantic Treaty Organization (NATO) Partnership for Peace programme. Because of the positive security situation in the country, NATO announced in June that it was ending its multinational Stabilization Force there in December. The European Union (EU) indicated its intention to fill the resulting gap by installing an EU force as the successor to the NATO Force, which the Security Council authorized in December. In the Serbia and Montenegro province of Kosovo, an eruption of violence in March caused a serious setback to the stabilization and normalization processes aimed at assisting the authorities and people of Kosovo to build a modern, multi-ethnic society. Despite the outbreak, the United Nations Interim Administration Mission in Kosovo and the Special Representative of the Secretary-General launched the Kosovo Standards Implementation Plan, which included priority actions in response to the March violence. Also arising out of the March events, the Secretary-General appointed a team to conduct a comprehensive review of the policies and practices of all actors. The team, among its recommendations, suggested that a comprehensive and integrated strategy be elaborated and that the standards before status policy, which established in 2002 benchmarks for Kosovo to attain before talks on its status could begin, be replaced by a priority-based policy to facilitate future status discussions. General elections, organized for the first time by Kosovo authorities, were held on 23 October leading to the formation of a coalition Government. The Georgian/Abkhaz peace process came perilously close to a standstill. While the parties came together during the course of the year on some substantive issues, efforts to advance a dialogue on the 2001 Basic Principles for the Distribution of Competences between Tbilisi (Georgia s Government) and Sukhumi (the Abkhaz leadership) encountered serious challenges. The Principles, which were intended to serve as a basis for negotiations on the status of Abkhazia as a sovereign entity within the State of Georgia, encountered serious challenges. Renewed violence in March led to a chain of events that brought all contacts between the sides to a halt. The Georgian side announced a proposal for settling the conflict, which included substantial autonomy for a reintegrated Abkhazia into the State of Georgia and power sharing at the national level, but there was no movement in the position of the Abkhaz side. No progress was made towards a settlement of the conflict between Armenia and Azerbaijan over the Nagorny Karabakh region in Azerbaijan. In the Mediterranean, after a 40-year effort by the United Nations, the Cyprus problem remained unresolved at the end of 2004 with no obvious avenue to achieve successful negotiations. The Secretary-General reconvened talks in February in Cyprus, which were resumed in Bürgenstock, Switzerland, on 24 March. As no agreement was achievable during those negotiations between the two sides the Greek Cypriots and the Turkish Cypriots the Secretary- General, in accordance with prior agreements, finalized a text on the basis of his proposed settlement plan. The Comprehensive Settlement of the Cyprus Problem, which comprised, among other documents, a Foundation Agreement and constituent State constitutions, was submitted for approval by each side in simultaneous referenda on 24 April. The Greek Cypriot electorate, by a

390 Political and security questions margin of three to one, rejected the settlement proposal; the Turkish Cypriot side approved it by a margin of two to one. The Foundation Agreement could not therefore enter into force and all the agreements of the Comprehensive Settlement became null and void. The Republic of Cyprus acceded to EU membership on 1 May, putting into question the future status of the northern part of the island. In those circumstances, the Secretary-General reviewed the mandate and concept of operations of the United Nations Peacekeeping Force in Cyprus and recommended a reduction in the mission s military component. He undertook to maintain continuous contact at the highest level with the parties and promised to designate on an ad hoc basis senior Secretariat officials to deal with any particular aspect of his mission of good offices that might require attention. The former Yugoslavia UN operations In 2004, the United Nations maintained only one peacekeeping mission in the territories of the former Yugoslavia. Through the United Nations Interim Administration Mission in Kosovo (UNMIK), it continued efforts to restore peace and stability to the province of Kosovo in Serbia and Montenegro. Peace activities in Bosnia and Herzegovina were conducted by the European Union Police Mission. Financing and liquidation of closed peacekeeping operations The Secretary-General s April report on the updated financial position of closed peacekeeping missions as at 30 June 2003 [A/58/778] (see p. 95), included information on the financing of the United Nations Preventive Deployment Force (UNPREDEP), which ended in 1999; the United Nations Protection Force (UNPROFOR), which ended in 1999; the United Nations Confidence Restoration Operation in Croatia (UNCRO), which ended in 1996; and UNPREDEP known collectively as the United Nations Peace Forces (UNPF) and the UNPF Headquarters (UNPF-HQ); and the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES). UNMIBH In January [A/58/632], the Secretary-General submitted the performance report on the budget of the United Nations Mission in Bosnia and Herzegovina (UNMIBH), which ended on 31 December 2002, for the period from 1 July 2002 to 30 June 2003, in which he recommended that the General Assembly decide on the treatment of the unencumbered balance of $8,236,800 and other income/adjustments amounting to $8,603,000. In February [A/58/720], he reported on the final disposition of UNMIBH assets, which had an inventory value of $59,564,700 as at 31 December 2002. In its April financial performance report on UNMIBH [A/58/759/Add.11], the Advisory Committee on Administrative and Budgetary Questions (ACABQ) recommended that the unencumbered balance and the amount resulting from other income and adjustments for that period be credited to Member States in a manner to be determined by the Assembly. GENERAL ASSEMBLY ACTION On 18 June [meeting 91], the General Assembly, on the recommendation of the Fifth (Administrative and Budgetary) Committee [A/58/822], adopted resolution 58/300 without vote [agenda item 136]. Financing of the United Nations Mission in Bosnia and Herzegovina The General Assembly, Having considered the reports of the Secretary- General on the financing of the United Nations Mission in Bosnia and Herzegovina and the related reports of the Advisory Committee on Administrative and Budgetary Questions, Recalling Security Council resolution 1035(1995) of 21 December 1995 regarding the establishment of the United Nations Mission in Bosnia and Herzegovina and the subsequent resolutions by which the Council extended the mandate of the Mission, the latest of which was resolution 1423(2002) of 12 July 2002, by which the Council extended the mandate of the Mission until 31 December 2002, Recalling also Security Council resolution 1437(2002) of 11 October 2002, in which the Council authorized the United Nations military observers to continue to monitor the demilitarization of the Prevlaka peninsula until 15 December 2002, Recalling further its decision 50/481 of 11 April 1996 on the financing of the Mission and its subsequent resolutions and decisions thereon, the latest of which was resolution 57/334 of 18 June 2003, Reaffirming the general principles underlying the financing of United Nations peacekeeping operations, as stated in General Assembly resolutions 1874(S-IV) of 27 June 1963, 3101(XXVIII) of 11 December 1973 and 55/235 of 23 December 2000, Noting with appreciation that voluntary contributions have been made to the Mission, Mindful of the fact that it is essential to provide the Mission with the necessary financial resources to enable it to meet its outstanding liabilities, 1. Takes note of the status of contributions to the United Nations Mission in Bosnia and Herzegovina as

Europe and the Mediterranean 391 at 15 April 2004, including the contributions outstanding in the amount of 38 million United States dollars, representing some 4 per cent of the total assessed contributions, notes with concern that only ninety-seven Member States have paid their assessed contributions in full, and urges all other Member States, in particular those in arrears, to ensure payment of their outstanding assessed contributions; 2. Expresses its appreciation to those Member States which have paid their assessed contributions in full, and urges all other Member States to make every possible effort to ensure payment of their assessed contributions to the Mission in full; 3. Expresses concern at the delay experienced by the Secretary-General in deploying and providing adequate resources to some recent peacekeeping missions, in particular those in Africa; 4. Emphasizes that all future and existing peacekeeping missions shall be given equal and nondiscriminatory treatment in respect of financial and administrative arrangements; 5. Also emphasizes that all peacekeeping missions shall be provided with adequate resources for the effective and efficient discharge of their respective mandates; 6. Endorses the conclusions and recommendations contained in the report of the Advisory Committee on Administrative and Budgetary Questions, and requests the Secretary-General to ensure their full implementation; Final disposition of assets 7. Takes note of the report of the Secretary-General on the final disposition of the assets of the Mission; Financial performance report for the period from 1 July 2002 to 30 June 2003 8. Also takes note of the report of the Secretary- General on the financial performance of the Mission for the period from 1 July 2002 to 30 June 2003; 9. Decides that Member States that have fulfilled their financial obligations to the Mission shall be credited their respective share of the unencumbered balance and other income in the total amount of 16,839,800 dollars in respect of the financial period ended 30 June 2003, in accordance with the levels set out in General Assembly resolution 55/235, as adjusted by the Assembly in its resolutions 55/236 of 23 December 2000 and 57/290 A of 20 December 2002, and taking into account the scale of assessments for 2003, as set out in its resolutions 55/5 B of 23 December 2000 and 57/4 B of 20 December 2002; 10. Decides also that, for Member States that have not fulfilled their financial obligations to the Mission, their respective share of the unencumbered balance and other income in the total amount of 16,839,800 dollars in respect of the financial period ended 30 June 2003 shall be set off against their outstanding obligations, in accordance with the scheme set out in paragraph 9 above; 11. Decides further that the increase of 342,600 dollars in the estimated staff assessment income in respect of the financial period ended 30 June 2003 shall be added to the credits from the amount referred to in paragraphs 9 and 10 above, and that the respective shares of Member States therein shall be applied in accordance with the provisions of those paragraphs, as appropriate; 12. Emphasizes that no peacekeeping mission shall be financed by borrowing funds from other active peacekeeping missions; 13. Decides to include in the provisional agenda of its fifty-ninth session the item entitled Financing of the United Nations Mission in Bosnia and Herzegovina. On 23 December, the Assembly decided that the item on the financing of UNMIBH would remain for consideration during its resumed fiftyninth (2005) session (decision 59/552). Bosnia and Herzegovina In 2004, efforts to assist the two entities comprising the Republic of Bosnia and Herzegovina the Federation of Bosnia and Herzegovina (where mainly Bosnian Muslims (Bosniacs) and Bosnian Croats resided) and Republika Srpska (where mostly Bosnian Serbs resided) in implementing the 1995 General Framework Agreement for Peace in Bosnia and Herzegovina and the annexes thereto (the Peace Agreement) [YUN 1995, p. 544] were directed by the European Union (EU). Those efforts were accomplished through the activities of the Office of the High Representative for the Implementation of the Peace Agreement on Bosnia and Herzegovina, responsible for the Agreement s civilian aspects [YUN 1996, p. 293], and the European Union Police Mission in Bosnia and Herzegovina (EUPM). The North Atlantic Treaty Organization (NATO) continued to execute its responsibilities for the Agreement s military aspects, which were transferred to the EU Force (EUFOR) mission in December. NATO maintained a headquarters in Sarajevo, following the transfer of responsibilities. The Peace Implementation Council (PIC) and its Steering Board continued to oversee and facilitate the Agreement s implementation. The High Representative reported on the progress made in the implementation process and related political developments in the country during the year in the context of his mission implementation plan, which set out a number of core tasks to be accomplished [YUN 2003, p. 401]. Bosnia and Herzegovina undertook a number of reforms, particularly in the areas of the rule of law, refugee return and economic development, in accordance with European standards, as it continued work towards full integration into Europe through the EU Stabilization and Association Pro-

392 Political and security questions cess and NATO s Partnership for Peace requirements. Implementation of Peace Agreement Civilian aspects The civilian aspects of the 1995 Peace Agreement entailed a wide range of activities, including humanitarian aid, infrastructure rehabilitation, establishment of political and constitutional institutions, promoting respect for human rights and the holding of free and fair elections. The High Representative for the Implementation of the Peace Agreement, who chaired the PIC Steering Board and other key implementation bodies, was the final authority with regard to implementing the civilian aspects of the Peace Agreement [YUN 1995, p. 547]. The reports on the activities of EUPM were submitted by the EU Secretary- General and High Representative for the Common Foreign and Security Policy, Javier Solana, to the Security Council President through the UN Secretary-General. Office of High Representative Reports of High Representative. The High Representative, Lord Paddy Ashdown (United Kingdom), reported to the Council through the Secretary-General on the peace implementation process for the periods from 1 January to 30 June [S/2004/807] and from 1 July to 31 December [S/2005/156], describing progress in the implementation of the Peace Agreement s civilian aspects, which the High Representative had been mandated to monitor, mobilize and coordinate. (For details on the reports specific topics, see below.) The Security Council, on 3 March, considered the High Representative s report covering late 2003 [YUN 2003, p. 402]. On 11 November, it considered the report covering the first half of 2004. SECURITY COUNCIL ACTION On 3 March [meeting 4920], the Security Council considered the High Representative s report for the period from 1 September to 31 December 2003 [YUN 2003, p. 402]. On 9 July [meeting 5001], it unanimously adopted resolution 1551(2004). The draft [S/2004/545] was submitted by France, Germany, Italy, Romania, the Russian Federation, Spain, the United Kingdom and the United States. The Security Council, Recalling all its relevant resolutions concerning the conflicts in the former Yugoslavia and the relevant statements by its President, including resolutions 1031(1995) of 15 December 1995, 1088(1996) of 12 December 1996, 1423(2002) of 12 July 2002 and 1491 (2003) of 11 July 2003, Reaffirming its commitment to the political settlement of the conflicts in the former Yugoslavia, preserving the sovereignty and territorial integrity of all States there within their internationally recognized borders, Emphasizing its full support for the continued role in Bosnia and Herzegovina of the High Representative for the Implementation of the Peace Agreement on Bosnia and Herzegovina, Underlining its commitment to support the implementation of the General Framework Agreement for Peace in Bosnia and Herzegovina and the annexes thereto (collectively the Peace Agreement ), as well as the relevant decisions of the Peace Implementation Council, Emphasizing its appreciation to the High Representative, the Commander and personnel of the multinational Stabilization Force, the Organization for Security and Cooperation in Europe, the European Union, and the personnel of other international organizations and agencies in Bosnia and Herzegovina for their contributions to the implementation of the Peace Agreement, Emphasizing that a comprehensive and coordinated return of refugees and displaced persons throughout the region continues to be crucial to lasting peace, Recalling the declarations of the ministerial meetings of the Peace Implementation Council, Taking note of the reports of the High Representative, including his latest report, of 18 February 2004, Determining that the situation in the region continues to constitute a threat to international peace and security, Determined to promote the peaceful resolution of the conflicts in accordance with the purposes and principles of the Charter of the United Nations, Recalling the relevant principles contained in the Convention on the Safety of United Nations and Associated Personnel of 9 December 1994 and the statement by its President of 9 February 2000, Welcoming and encouraging efforts by the United Nations to sensitize peacekeeping personnel in the prevention and control of HIV/AIDS and other communicable diseases in all its peacekeeping operations, Taking note of the decisions set out in paragraph 8 of the communiqué of the summit of the North Atlantic Treaty Organization held in Istanbul, Turkey, on 28 June 2004, which refers to the intention of that organization to conclude its Stabilization Force operation in Bosnia and Herzegovina by the end of 2004, Taking note also of the intention of the European Union to launch a European Union mission to Bosnia and Herzegovina, including a military component, from December 2004, under the terms set out in the letter dated 29 June 2004 from the Minister for Foreign Affairs of Ireland and President of the Council of the European Union addressed to the President of the Security Council, Acting under Chapter VII of the Charter, I 1. Reaffirms once again its support for the General Framework Agreement for Peace in Bosnia and Herzegovina and the annexes thereto (collectively the Peace Agreement ), as well as for the Dayton Agreement on Implementing the Federation of Bosnia and Herze-

Europe and the Mediterranean 393 govina of 10 November 1995, calls upon the parties to comply strictly with their obligations under those Agreements, and expresses its intention to keep the implementation of the Peace Agreement, and the situation in Bosnia and Herzegovina, under review; 2. Reiterates that the primary responsibility for the further successful implementation of the Peace Agreement lies with the authorities in Bosnia and Herzegovina themselves and that the continued willingness of the international community and major donors to assume the political, military and economic burden of implementation and reconstruction efforts will be determined by the compliance and active participation by all the authorities in Bosnia and Herzegovina in implementing the Peace Agreement and rebuilding a civil society, in particular in full cooperation with the International Tribunal for the Prosecution of Persons Responsible for Serious Violations of International Humanitarian Law Committed in the Territory of the Former Yugoslavia since 1991, in strengthening joint institutions, which foster the building of a fully functioning self-sustaining State able to integrate itself into the European structures, and in facilitating returns of refugees and displaced persons; 3. Reminds the parties once again that, in accordance with the Peace Agreement, they have committed themselves to cooperate fully with all entities involved in the implementation of this peace settlement, as described in the Peace Agreement, or which are otherwise authorized by the Security Council, including the International Tribunal for the Former Yugoslavia, as it carries out its responsibilities for dispensing justice impartially, and underlines that full cooperation by States and entities with the Tribunal includes, inter alia, the surrender for trial of all persons indicted by the Tribunal and the provision of information to assist in Tribunal investigations; 4. Emphasizes its full support for the continued role of the High Representative for the Implementation of the Peace Agreement on Bosnia and Herzegovina in monitoring the implementation of the Peace Agreement and giving guidance to and coordinating the activities of the civilian organizations and agencies involved in assisting the parties to implement the Peace Agreement, and reaffirms that, under annex 10 of the Peace Agreement, the High Representative is the final authority in theatre regarding the interpretation of civilian implementation of the Peace Agreement and that, in case of dispute, he may give his interpretation and make recommendations, and make binding decisions as he judges necessary on issues as elaborated by the Peace Implementation Council in Bonn, Germany, on 9 and 10 December 1997; 5. Expresses its support for the declarations of the ministerial meetings of the Peace Implementation Council; 6. Recognizes that the parties have authorized the multinational force referred to in paragraph 11 below to take such actions as required, including the use of necessary force, to ensure compliance with annex 1-A of the Peace Agreement; 7. Reaffirms its intention to keep the situation in Bosnia and Herzegovina under close review, taking into account the reports submitted pursuant to paragraphs 19 and 23 below, and any recommendations those reports might include, and its readiness to consider the imposition of measures if any party fails significantly to meet its obligations under the Peace Agreement; II 8. Pays tribute to those Member States which participated in the multinational Stabilization Force established in accordance with its resolution 1088(1996), and welcomes their willingness to assist the parties to the Peace Agreement by continuing to deploy a multinational stabilization force; 9. Notes the support of the parties to the Peace Agreement for the continuation of the multinational Stabilization Force, set out in the declaration of the ministerial meeting of the Peace Implementation Council in Madrid on 16 December 1998; 10. Welcomes the decision of the North Atlantic Treaty Organization to conclude its current Stabilization Force operation in Bosnia and Herzegovina by the end of 2004, and further welcomes the intention of the European Union to launch a European Union mission to Bosnia and Herzegovina, including a military component, from December 2004; 11. Authorizes the Member States acting through or in cooperation with the organization referred to in annex 1-A of the Peace Agreement to continue for a further planned period of six months the multinational Stabilization Force as established in accordance with its resolution 1088(1996) under unified command and control in order to fulfil the role specified in annexes 1-A and 2 of the Peace Agreement; 12. Expresses its intention to consider the terms of further authorization as necessary, in the light of developments in the implementation of the Peace Agreement and the situation in Bosnia and Herzegovina; 13. Authorizes the Member States acting under paragraph 11 above to take all necessary measures to effect the implementation of and to ensure compliance with annex 1-A of the Peace Agreement, stresses that the parties shall continue to be held equally responsible for compliance with that annex and shall be equally subject to such enforcement action by the Force as may be necessary to ensure implementation of that annex and the protection of the Force, and takes note that the parties have consented to the Force taking such measures; 14. Authorizes Member States to take all necessary measures, at the request of the Force, either in defence of the Force or to assist the Force in carrying out its mission, and recognizes the right of the Force to take all necessary measures to defend itself from attack or threat of attack; 15. Authorizes the Member States acting under paragraph 11 above, in accordance with annex 1-A of the Peace Agreement, to take all necessary measures to ensure compliance with the rules and procedures established by the Commander of the Force, governing command and control of airspace over Bosnia and Herzegovina with respect to all civilian and military air traffic; 16. Requests the authorities in Bosnia and Herzegovina to cooperate with the Commander of the Force to ensure the effective management of the airports of Bosnia and Herzegovina, in the light of the responsibilities conferred on the Force by annex 1-A of the Peace Agreement with regard to the airspace of Bosnia and Herzegovina;

394 Political and security questions 17. Demands that the parties respect the security and freedom of movement of the Force and other international personnel; 18. Recalls all the agreements concerning the status of forces as referred to in appendix B to annex 1-A of the Peace Agreement, and reminds the parties of their obligation to continue to comply therewith; 19. Requests the Member States acting through or in cooperation with the organization referred to in annex 1-A of the Peace Agreement to continue to report to the Security Council, through the appropriate channels and at least at monthly intervals; 20. Decides that the status-of-forces agreements currently contained in appendix B to annex 1-A of the Peace Agreement shall apply provisionally in respect of the proposed European Union mission and its forces, including from the point of their build-up in Bosnia and Herzegovina, in anticipation of the concurrence of the parties to those agreements to that effect; 21. Invites all States, in particular those in the region, to continue to provide appropriate support and facilities, including transit facilities, for the Member States acting under paragraphs 11 and 20 above; * * * 22. Welcomes the deployment by the European Union of its Police Mission to Bosnia and Herzegovina since 1 January 2003; 23. Requests the Secretary-General to continue to submit to the Council reports from the High Representative, in accordance with annex 10 of the Peace Agreement and the conclusions of the Peace Implementation Conference held in London on 4 and 5 December 1996, and later Peace Implementation Conferences, on the implementation of the Peace Agreement and in particular on compliance by the parties with their commitments under that Agreement; 24. Decides to remain seized of the matter. Mission implementation plan The High Representative presented to the PIC Steering Board, in June, an update of the mission implementation plan of his Office, drawn up in 2002 [YUN 2002, p. 359] and introduced in 2003 [YUN 2003, p. 401]. Reporting in October [S/2004/ 807], he said that there had been notable advances in executing all four core tasks: rule of law; reforming the economy; strengthening the capacity of Bosnia and Herzegovina institutions; and defence reform. Notably, the Independent Judicial Commission completed its operations with the establishment of a single Bosnia and Herzegovina High Judicial and Prosecutorial Council in June. The package of laws for the State Investigation and Protection Agency was enacted, representing a critical step in re-shaping criminal enforcement, and progress was made towards the adoption of several key economicrelated laws. In March, the intelligence law was adopted, leading to the establishment of the State Intelligence and Security Agency. The appointment in March of a Minister of Defence was followed by other appointments to key State-level military posts and the establishment of the defence institutions. The identity-card management programme gave the State the means to manage and vouch for the integrity of identity documents, despite politically motivated attempts to undermine it. In a later report [S/2005/156], the High Representative stated that progress in the 2004 mission implementation plan, made up of 26 programmes, included the establishment of the Indirect Tax Authority Governing Board, the State Ministry of Defence and the State Intelligence and Security Agency, the unification of the city of Mostar (see p. 395) and progress in regulating the entities internal debts. Four of the 26 programmes were completed by the end of the year, including the State Management of Identity Documents, the Parliamentary Oversight over the Armed Forces and the Security Policy. Of the 230 programme items, 116 had been completed by the end of the year. Civil affairs The High Representative, in his reports covering 1 January to 30 June [S/2004/807] and 1 July to 31 December [S/2005/156], stated that Bosnia and Herzegovina was concentrating on meeting the conditions contained in the EU Commission s feasibility study for negotiating a stabilization and association agreement and the requirements for meeting NATO s benchmarks for the country s entry into the Partnership for Peace programme [YUN 2003, p. 403]. The Bosnia and Herzegovina authorities succeeded in fulfilling some of the key conditions set by the EU and NATO, notably by adopting most of the requisite legislation and establishing new State-level institutions. A total of 18 laws were enacted, many of them introducing significant structural changes in crime prevention, the judiciary, the development of a single economic space and the functioning of the energy market. An additional 21 laws adopted by the Council of Ministers were awaiting enactment by the Bosnia and Herzegovina Parliamentary Assembly. However, the continued failure of the Republika Srpska authorities to cooperate fully with the International Tribunal for the Former Yugoslavia (ICTY) caused NATO to deny Bosnia and Herzegovina entry into the Partnership for Peace programme at its June summit (Istanbul, Turkey, 28-29 June), and forced the High Representative to introduce punitive measures against those individuals and organizations identified as supporting suspected war criminals. Fifty-nine individuals were removed from party and other public positions, including the Republika Srpska

Europe and the Mediterranean 395 Interior Minister and the President of the Serbian Democratic Party (SDS). Despite the adoption by the Republika Srpska government of the final report of the Srebrenica Commission (see below), which it established in 2003 [YUN 2003, p. 404] to investigate missing persons, among other duties, and the arrest by Republika Srpska Special Police of eight Bosnian Serbs on suspicion of war crimes on warrants issued by the Sarajevo Cantonal Court, the North Atlantic Council, at its ministerial meeting (Brussels, Belgium, 9 December), considered that Bosnia and Herzegovina was still not cooperating with ICTY, making it ineligible for the second time in a year for membership in NATO s Partnership for Peace programme. Subsequently, the Office of the High Representative, with EUFOR and the United States, announced further punitive sanctions, including removal of nine officials, the blocking of the bank accounts of others suspected of abetting Tribunal fugitives, requiring the Republika Srpska government to verify if those persons mentioned in the Commission s report were still in government service, and requesting acceleration of defence reforms through the early closure of the entities ministries of defence. In the wake of those measures, ministers of the Party of Democratic Progress at both the Republika Srpska and State level resigned, prompting President Dragan Cavic to convene talks with the Serbdominated parties on the way forward. In late December, the six Serb-based parties signed an agreement confirming, among other things, Republika Srpska s commitment to dealing with the ICTY issue. In the area of defence reform, the State-level Ministry of Defence became functional, with the filling of all top military posts and the approval by the Council of Ministers, on 20 May, of the Book of Rules on Internal Organization for the Ministry of Defence, the Joint Staff and the Operational Command. Both entity armies downsized by at least 25 per cent. The Presidency s decision in March on the size and structure of the Armed Forces of Bosnia and Herzegovina envisaged a much-reduced force of 12,000 full-time military professionals and 60,000 reserves, and the restructuring and downsizing of the Republika Srpska Army General Staff and the Federation Army Joint Command. The intake of conscripts and the duration of military service were also being cut. The Intelligence and Security Agency became operational on 1 June. The High Representative established the post of supervisor for intelligence reform to ensure the Agency s development. The first municipal elections administrated wholly by local institutions were held in October, but the turnout was very low, particularly among the Bosniak community. The elections were conducted peaceably in Republika Srpska, with further gains for the Independent Social Democratic Party (SNSD) and erosion of SDS s preeminence. Concerning the city of Mostar, the United Nations sought to produce a permanent statute for the city, based on compromises that would eliminate the ethnic and political divisions sustained by the existence of the six so-called citymunicipalities and central zone. As agreed in 2003 [YUN 2003, p. 403], the High Representative, in view of the need to provide solutions to the stillcontentious issues of the system of elections and the status of the existing municipalities [ibid.],imposed on 28 January a statute for Mostar. Under the statute, the city-municipalities were abolished and transformed into city areas, making them, in effect, branch offices of the unified administration as well as electoral districts. The statute also guaranteed power-sharing through national quotas and safeguards for vital national interests in the composition and rules of the city council, thereby preventing domination by a single nationality, while ensuring broad national balance in the future city government. Along with the statute, a decision was issued on the steps and timetable for the city s unification. A Mostar Implementation Unit to assist in carrying out the reform measures and a Committee on Confidence- Building Measures to win popular support for the unification process were established. Implementation of the statute proceeded relatively well. A compromise city budget was adopted by the City Council in mid-year and some success was achieved in joining divided institutions. The opening of the rebuilt Old Bridge on 23 July helped to normalize the atmosphere in the city, and post-war internal ethnic boundaries were gradually losing their significance. Since the October elections (see p. 416) produced no clear majority in the Council, a Croat mayor was elected with cross-party and cross-ethnic support after extensive power-sharing negotiations. However, the political situation remained fragile and potentially volatile and much of the technical process of unification was still to be completed. Srebrenica The Srebrenica Commission, appointed by Republika Srpska in December 2003 [YUN 2003, p. 404] to investigate and report on persons missing as a result of the 1995 Srebrenica massacre [YUN 1995, p. 529], was established in January 2004. The High Representative, although not having any formal role in the Commission, monitored the Commission s activity.

396 Political and security questions The Commission s report, issued in June, indicated that Republika Srpska had recognized, for the first time, the origins, nature and extent of the atrocities committed in and around Srebrenica and disclosed the location of previously unknown primary and secondary mass graves, documents and other evidence that might serve as bases for further prosecution of war crimes. The report established that, between 10 and 19 July 1995, some 8,000 Bosniaks were liquidated and that the perpetrators took elaborate measures to conceal those crimes by relocating the bodies. It identified, in particular, 32 locations of mass graves, 11 of them previously unknown, and elaborated on the participation of particular Republika Srpska military and police units in the 1995 events and aftermath. The report cited documents making clear that those events had three planned phases: the attack on Srebrenica, the separation of women and children, and the execution of males. The Commission promised to produce a consolidated list of all the persons still unaccounted for, but wanted better access to relevant documentation of competent Republika Srpska institutions and Federation records. On 11 June, the High Representative forwarded to the EU and NATO copies of the report and his assessment of it. Judicial reform The High Representative, reporting in October [S/2004/807] on steps taken to establish the rule of law in Bosnia and Herzegovina, said that the financial help pledged during the 2003 donors conference [YUN 2003, p. 408] to defray the costs of trying war crime cases transferred by ICTY to local Bosnia and Herzegovina courts enabled the project to proceed. The plan called for the creation of a special chamber within the State Court to try such cases, and for a registrar s office within the court to provide logistical and administrative support (see p. 1293). The development of an anti-moneylaundering programme progressed. As part of the package of laws expanding the role of the State Investigation and Protection Agency, a new law was enacted in June, making the Agency primarily responsible for compiling and analysing information from financial transactions in order to initiate appropriate criminal investigations. A draft law for seizing assets acquired through or used in criminal activities was submitted to the Council of Ministers for consideration and adoption. Regarding the process of reappointing judges and prosecutors at all levels in Bosnia and Herzegovina, out of some 1,000 vacancies advertised, 877 judges and prosecutors were appointed or reappointed. Establishing adequate budgets for courts was hindered by the need to pay compensation paid to judges who were not reappointed, and judicial salaries and fees for attorneys representing criminal defendants. The Disciplinary Prosecutor received cases against 142 judges and prosecutors. Sanctions were imposed in 14 cases of established judicial misconduct. The Office of the High Representative worked on building the capacities of the State Court. The new, single High Judicial and Prosecutorial Council was established as a State-level institution on 1 May, thus terminating the mandate of the Independent Judicial Commission. The Rule of Law Pillar was dissolved in October and replaced by a substantially reduced Rule of Law Department. The Office of the High Representative would continue to work closely with the Rule of Law and Legal Departments on issues of common interest, and supported the Council in dealing with the unresolved issues of judicial, prosecutorial and defence counsel compensation, court budgets and minor offence courts. Economic reform and reconstruction The High Representative reported that, although notable progress was made in economic reform, the economy of Bosnia and Herzegovina had yet to register concrete benefits from the legal, fiscal and structural changes. However, domestic authorities had asserted greater ownership over some important economic issues, particularly in regard to fiscal and customs reforms. The Indirect Taxation Authority, which commenced operation in January, would operate an integrated and indirect tax-collection service and a State-level customs service, implementing a single set of rules, applicable throughout the country, which should make it possible to launch the collection of value added tax by the end of 2005. In December, State-level laws on sales and excise taxation were passed and the double taxation within the territory of Bosnia and Herzegovina was abolished. The Office of the High Representative was instrumental in efforts to resolve the long-standing problem of the entities internal indebtedness, a major obstacle to investment and job creation. An enabling law was passed in Republika Srpska, but enactment of similar legislation in the Federation was proving contentious on both political and fiscal grounds. Advances were made to restructure the public utilities sector. The Law on Civil Aviation was successfully implemented during the year, and the drafting of the railway law was under way. The laws establishing the Electricity Transmission Company and the Independent System Op-

Europe and the Mediterranean 397 erator were passed, enabling the proper functioning of the electricity transmission system and preparing it for reconnection to the European electricity grid on 10 October. Given the ongoing need to improve the business environment and standards of corporate governance in Bosnia and Herzegovina, the Office of the High Representative supported the drafting of laws on public enterprises, investment of public funds and public procurement. The Bulldozer Initiative, coordinated by the Office, had some success in cutting bureaucracy and removing regulations inimical to investment. The Framework Law on Business Registration was adopted, and the authorities were creating a single business registration system to reduce registration time and cost. The State-level Law on Public Procurement was enacted, and the new Law on Accounting and Auditing was aimed at putting in place a uniform set of international accounting and auditing standards. The Office of the High Representative continued to centralize the process of privatizing enterprises across Bosnia and Herzegovina. A single information point for privatization opportunities was established in March, with a website offering information for potential investors. The Office was also successful in assisting the State Veterinary Institute in becoming operational. In the light of mismanagement, incompetence and political manipulation within publicly owned companies in Republika Srpska, the Office amended, in December, relevant legislation, thus requiring special audits of such companies by the Republika Srpska Auditor General. In response, the entity governments committed themselves to implementing reforms to improve management practices and eliminate endemic corruption in the public sector. Public administration reform The Office of the High Representative developed a State Government Strengthening Plan, focusing on staffing and premises, to help the Chairman of the Council of Ministers make State ministries and the Council fully operational. It commissioned a review of the application of the State Civil Service Law by the State Civil Service Agency. The Agency s March report recommended a number of managerial and legal changes, which were incorporated in an action plan. The Agency initiated changes in its personnel structure and was drafting by-laws and amendments to the Civil Service Law. The High Representative established the Police Restructuring Commission on 2 July, with a mandate to restructure Bosnia and Herzegovina s police forces and to propose a single police structure. Reviews of the public sector, funded by the European Commission, were in progress. When completed, a comprehensive strategy for improving Bosnia and Herzegovina s public administration would follow. Refugees In 2004, the number of refugees returning to Bosnia and Herzegovina since the signing of the Peace Agreement reached 1 million. The Bosnia and Herzegovina authorities assumed responsibility for implementation of annex VII of the Peace Agreement at the beginning of 2004 and, in November, the Office of the High Representative closed its unit that monitored returns. Implementation of property law, a precondition for returns, increased and the process was expected to end by April 2005. The transfer of responsibilities from the Commission for Real Property Claims to the Bosnia and Herzegovina authorities was completed. A body charged with reviewing Commission decisions was established and commissioners appointed. The Bosnia and Herzegovina State Commission for Refugees and Displaced Persons continued to act as the coordinating body between the State, the entities and Brcko District. A return fund was established, to which the State, Brcko and Republika Srpska had transferred their financial commitments, but the Federation was tardy in doing so. However, with loans secured for 2005, the State ministry and the State Commission for Refugees and Displaced Persons would have sufficient means to implement their returns policy. Media development Reform of the public broadcasting system encountered serious obstacles during 2004. In April, the Council of Ministers endorsed public broadcasting draft legislation, aimed at bringing Bosnia and Herzegovina into compliance with the EU feasibility study requirements to create a single, self-sustainable public broadcasting system within a common infrastructure. However, the Bosnia and Herzegovina Parliament failed to adopt the legislation, due to the opposition by Republika Srpska delegates to amendments that would have allowed for the creation of a sound common resource corporation. In addition, Croatian Democratic Union members pushed for the establishment of three separate national channels, in addition to the two existing entity broadcasters. With the help of the Office of the High Representative and the European Commission, the outstanding issues were renegotiated and resolved, and the draft legislation was awaiting adoption by the Council of Ministers.

398 Political and security questions The State-wide television service, launched in August, was well accepted in both entities and was addressing the challenges of the broadcasting market. Relations with other countries Bosnia and Herzegovina, during its presidency of the South-East European Cooperation Process, including the first meeting of defence ministers from the region, demonstrated its capacity to play a valuable political role at the regional level. The first International Investment Conference organized by the Government of Bosnia and Herzegovina was held in Mostar on 26 and 27 February. Although overshadowed by the tragic deaths of President Boris Trajkovski of The Former Yugoslav Republic of Macedonia and his delegation when their aircraft crashed while approaching Mostar, the Conference facilitated business contacts and investment opportunities. In addition to the 12 concrete investment projects that were presented to potential investors, the Conference sent out positive political and economic signals to the international business community. The wave of intercommunal violence that roiled the Serbia and Montenegro province of Kosovo in mid-march (see p. 405) did not spill over into Bosnia and Herzegovina. Bosnia and Herzegovina s relations with Serbia and Montenegro improved, assisted by the election of Boris Tadic as President of Serbia. Mr. Tadic paid a visit to Bosnia and Herzegovina, during which he apologized for those who committed crimes in the name of the Serb people during the war. Bilateral forums functioned on a regular basis, including efforts to delimit the exact border on the lower Drina River near Zvornik. Bosnia and Herzegovina and Croatia made progress towards normalizing their relations. Meetings at the presidential level between the two countries were held twice annually. Croatian Prime Minister Ivo Sanader had taken a constructive approach to Bosnia and Herzegovina and the position of Croats in the country. Border issues were almost entirely resolved, with the notable exception of Croatia s failure to ratify the treaty granting Bosnia and Herzegovina free-port rights at Ploce. European Union Police Mission in Bosnia and Herzegovina Reports of EU Secretary-General. As invited by the Security Council in presidential statement S/PRST/2002/33 [YUN 2002, p. 363], the EU Secretary-General and High Representative for the Common Foreign and Security Policy reported on the activities of the EU Police Mission (EUPM) covering the periods 1 January to 30 June [S/2004/709] and 1 July to 31 December [S/2005/66]. As at 31 December, the Mission numbered 862 personnel, of whom 472 were seconded civilian police officers, 61 international civilians and 329 national staff from Bosnia and Herzegovina. All but 1 of the 25 EU member States participated in the Mission (420 police officers) and 9 non-eu contributing States (52 police officers). The Mission was headed by Kevin Carty (Ireland) from 1 March, following the death of Sven Frederiksen (Denmark) on 26 January. In the first report, the EU Secretary-General highlighted the achievements made in the programmes administered by EUPM [YUN 2003, p. 409]. Under the crime police programme, EUPM introduced an intelligence-led approach to policing that was helping Bosnia and Herzegovina fight major and organized crime more effectively. Crucial to that, a national intelligence model was introduced countrywide. The criminal justice programme was aimed at establishing the State judicial police and the two court police forces at entity level. A new programme focusing on a police education and training system was launched. Under the internal affairs programme, seven professional standards units and nine public complaints bureaux were established. Guidelines for preventing serious crowd disturbances during major public events were being implemented. The State Border Service (SBS) strengthened its cooperation with the multinational Stabilization Force (SFOR) and other entity-based police forces, including through regular joint border operations. The Council of Ministers, in March, expanded the powers of the State Investigation and Protection Agency (SIPA), enhancing its responsibility in the fight against organized crime. The related laws were before the Parliamentary Assembly of Bosnia and Herzegovina for approval. Technical amendments to the Bosnia and Herzegovina Criminal Procedure Code and Law on Civil Service were also necessary to harmonize those laws with other SIPA laws. Implementation of EUPM s programmes was hampered by legal challenges to the UNMIBH/ International Police Task Force (IPTF) police certification process, by which law enforcement officers were vetted before receiving final certification [YUN 2001, p. 332] (see p. 399). A review commissioned by the European Commission on police structures concluded that Bosnia and Herzegovina had too many levels of policing and identified options for restructuring. A Police Restructuring Commission was launched in July to make recommendations for a single police structure for the whole country.