PRESIDENT TUDJMAN ADDRESSES PARLIAMENT ON STATE OF THE NATION PT.1

( Editorial: --> 7528 ) ZAGREB, Jan 27 (Hina) - Croatian President Franjo Tudjman Tuesday addressed a joint session of both houses of the Croatian National Parliament on the state of the nation in 1997. Following is the full text of the address: "Mr. Speaker of the Croatian National Parliament, Madam Speaker of the Chamber of Counties, Ladies and Gentlemen, members of both Chambers of the Croatian National Parliament, Honoured members of the Croatian Government, and all representatives of executive and judiciary authorities, Honoured guests, and all present! I. INTRODUCTION Last year, 1997, and the very beginning of 1998 have been distinguished by the full achievement of the fundamental goal of Croatian national and State policy - full sovereignty throughout the territory of the State. This goal has been accomplished by the restoration, in a peaceful way and without new casualties, of the last occupied area - the Croatian Danubian Region, with Vukovar, the symbol of Croatian resistance and of the unity of the Croatian people - to our Homeland. The centuries-old dream of the Croatian people has thereby been completely fulfilled. The free, independent and democratic Croatian State has attained sovereignty within its internationally recognised borders. After the major, historic military victories won in the liberation of the central parts of the country in 1995, we have achieved - through political wisdom, but also owing to our determination - as well as maintained and reinforced peace, and thus showed, here and world-wide, that we are victors capable of, and willing to grant forgiveness. We have also thereby reinforced Croatia’s foreign policy position in the face of many unjustified pressures by certain unfavourably disposed international factors. By the stability of its democratic and economic system, and by its judicial system focused on safeguarding the freedoms and rights of man and citizen, Croatia has demonstrated that it meets the requirements for joining European economic and political integrations. The democratic order and Croatia’s international renown have further been enhanced by last year’s elections for the Chamber of Counties of the Croatian National Parliament, for local - municipal, city and county - representative bodies, and, especially, the elections for the President of the Republic. The constitutional amendments enacted by the Croatian National Parliament on December 18, 1997 were of particular importance. With these amendments the Croatian Constitution has substantially and in terms of all its legal dictums become what it ought to be - the Constitution of a fully sovereign, independent, democratic and social State such as the Republic of Croatia is and strives to be. Thus, the successful end of the past seven-year period, an assuredly historic period marked by the establishment, defence and international consolidation of the independent Croatian State has also been defined at the highest state-law and political-symbolic level. Last year, 1997, was actually the first peace-time year. However, the above notwithstanding, let us not forget that Croatia’s overall reality still feels the strain, as it did last year, of the difficult, especially war-time legacy, and that we are also facing new challenges and tasks in very complex international political circumstances. II. FOREIGN POLICY AND CROATIA’S INTERNATIONAL POSITION In 1997, remarkable results have been achieved in the implementation of the basic guidelines of Croatia’s foreign policy to which I referred in my State of the Nation Address last year. Foreign policy events were conditioned by the involvement of major global and European factors in problems of internal realignment and in the expansion of Euro-Atlantic and European integrations. For these factors the state of the crisis in the former Yugoslavia continued to be an issue of the highest strategic importance for peace and security on the European continent, and for the role of the United States as the only global superpower. With its responsible relation towards the solution of the crisis in the former Yugoslavia, and especially in Bosnia-Herzegovina, as well as with the peaceful reintegration of the Croatian Danubian Region, Croatia has additionally reaffirmed its role of serious interlocutor and irreplaceable factor. The world should now be convinced that Croatia is a key country in the assurance of peace and security of the international order in this part of Europe. In the implementation of its consistent policy focused on the protection of essential and long-term national-State interests, Croatia has met with misunderstanding, and even occasional pressure expressing the political intentions of certain international circles to influence internal changes. Exactly on the seventh anniversary of the diplomatic recognition of the sovereign Republic of Croatia, on January 15, 1998, the mandate of UNTAES in the Croatian Danubian Region was terminated. This marked the achievement of the supreme goal - the assurance of Croatian sovereignty throughout the internationally recognised territory of the State. The region was reintegrated in a peaceful way with no new losses of life and destruction of property, in a way through which the authorities of our State demonstrated their commitment to peace, democracy, coexistence and forgiveness. At the celebrations in Vukovar and Zagreb, Croatia was given due credit by the Envoy of the Secretary General, Under-Secretary B. Miyet, by transitional administrators Klein and Walker, and others. On this occasion let me affirm again that the authorities of the Republic of Croatia will continue to pursue the same policy in order to implement the Government’s National Programme for restoration of trust, accelerated return and normalisation of overall life in the war-affected regions of the Republic of Croatia. The normalisation of relations with Serbia, that is, the Federal Republic of Yugoslavia, based on mutual recognition and respect of territorial integrity, has been of broader and key importance for Croatia as well, for without it there would have been no peaceful reintegration of the Croatian Danubian Region, and for the international community it is also a precondition for the stability of peace in the region. If the relations are to be normalised consistently and fully, the Federal Republic of Yugoslavia ought to accept a bilateral agreement regarding Prevlaka as a security and not territorial issue. Croatia cannot agree to an extension of the monitoring mission, and if no agreement is reached within the next few months, Croatia will terminate the monitoring mission and request international arbitration. Similarly, Croatia will more energetically request both the FRY and international factors to finally resolve the issue of succession following the disintegration of the former Socialist Federal Republic of Yugoslavia. In relation to the resolution of the exceptionally complex crisis in Bosnia-Herzegovina, our policy continues to be conditioned by the need to assure the existence of the Croatian people in Bosnia- Herzegovina, but also the protection of State-national interests with respect to Croatian borders. The Croatian people could agree to the Croat-Muslim Federation on condition that the Federation be linked with Croatia, as provided for by the Washington as well as the Dayton Agreements. Croatian policy is firmly committed to the implementation of the Federation, but also to the defence of the threatened Croatian people in Bosnia and, thereby, of the strategic interests of the Croatian State. Croatian policy has provided for the highest degree of cooperation with the International Tribunal in the Hague, but it requests, with every right, impartiality and reasonableness of all international factors in the judiciary and political resolution of the intricate Bosnian crisis. It is quite clear that the peace process, all positive accomplishments notwithstanding, is still far from a clear-cut outcome, and the reasons for that are least to be sought on the Croatian side which has demonstrated the most constructive spirit in every regard. In order to step up the solution of the Bosnian crisis and the implementation of the agreements, Croatia has proposed the establishment of special relations between Croatia and the Federation, as well as provided the initiative for the establishment of the Inter-State Council for Cooperation with Bosnia-Herzegovina. We have thereby reminded both the Muslim side and the international factors of the Washington and Dayton Agreements, and of the conditions under which the Muslim-Croat conflict was ended and the Federation created. As far as the substance of the special relations is concerned, we have pointed out that they ought to be developed gradually and with due recognition of concrete circumstances and overall interests. The solution with regard to the use of the Port of Ploce, traffic facilities, etc., will be possible only within such a context, and not by singling out specific problems and interests. The arrangement agreed with representatives of Bosnia-Herzegovina regarding the construction of the Zagreb-Bihac-Drvar-Dubrovnik highway, with branch-offs to Split, Ploce and Sarajevo, can be considered to constitute a major positive step in that respect. In the first half of 1997 Croatia was subject to pressures going as far as requests to dispute Croatia’s membership in the Council of Europe. After the county and presidential elections, and especially now, after the successful termination of the UNTAES mission, the international position of Croatia has been reinforced considerably. Croatia is at an ever increasing rate becoming an equal partner in international organisations, and at an ever decreasing rate the object of comments. The importance and the contribution of Croatian policy to the building of peace and security in Europe is being increasingly appreciated by the international public. The world is showing increasing appreciation and interest in our geopolitical position and economic potential. Political and economic relations have been expanded with a range of countries, and cooperation with some countries is developing along lines of lasting partnership. Among many bilateral meetings, due mention ought to be made of encounters with Italian, Hungarian and Turkish statesmen. The establishment of diplomatic relations with Israel has rounded-off the process of establishment of diplomatic links with States on all continents. Croatia is a member of almost every major international organisation. It should also be remembered that - on the first anniversary of Croatia’s full membership in the Council of Europe - I took part, as the Head of State, for the first time since the establishment of the Croatian State, in the Summit of this Organisation - the framework of Europe’s democratic and security order. By complying with all the commitments assumed, and thereby gaining undivided recognition, we have provided our own contribution to the foundations of the Council of Europe. In my address to the Council, and during many meetings with leading officials of the Council of Europe and the Parliamentary Assembly, and particularly with the Presidents of France, Austria and Finland, and the Prime Ministers of Spain and Denmark, I presented our resolute position regarding Croatia's belonging to the Central European and Mediterranean geopolitical and cultural sphere, and our refusal to accept any Balkan regional association. If I may rightfully claim that such a position on our part is generally being accepted with understanding, I should also recall that opposite regional views have not disappeared either, as witnessed most recently by Croatia’s inclusion into "western Balkans" by some Western sources; it also ought to be recalled that the programme of the British Presidency of the EU includes the task of relations with countries emerged from the former Yugoslavia - Croatia, Bosnia-Herzegovina, the Federal Republic of Yugoslavia and Macedonia together with Albania - as we already had the opportunity to hear from Mr. Bildt on behalf of Europe. As the initial period of independent and sovereign Croatia came to an end last year, or, to be more precise, on January 15, 1998, one also ought to remember certain essential features of international circumstances. Throughout the period since its establishment, Croatia has faced predominantly biased misconceptions and misunderstandings. To all the creators and guardians of the Versailles order it was almost the chief culprit for the disintegration of the former Yugoslavia, and it even achieved its State and its independence against their will. Subsequently, contrary to many predictions, it did not yield to aggression, but it emerged victorious from many political- diplomatic and military battles, liberating its formerly occupied areas, and proving to be one of the key factors in the solution of the Bosnian crisis. Based on the stability of its socio-political and economic order, and on the maturity of its policy, Croatia has clearly defined its identity and Euro-Atlantic vocation as a Central European and Mediterranean country, while opposing each and every Balkan regionalism. It is only by virtue of its successes and constructive readiness to cooperate with international factors in the resolution of the war crisis in the former Yugoslavia, and currently in Bosnia, that Croatia has gradually overcome all vicissitudes and misunderstandings - until the world grasped and accepted its key role in the creation of peace and a new international order in this seismic region. With our firm democratic order and stable economic system, and strengthened international position, we now look to a new period of internal development and gradual integration into the Western economic and security system. Many challenges await us on that road, and continued obstacles, stemming not only from old understandings and from the above mentioned frustrated views, but also from special interests. Therefore, we can certainly expect that we shall continue to be faced with political and economic efforts of a shorter and longer duration, detrimental to our country. In relation to current integration trends in Europe, and to decisions regarding the expansion of Euro-Atlantic institutions, Croatia should put every possible effort into becoming an integral part of such developments as soon and as extensively as possible. We should stimulate the conclusion of the agreement on cooperation with the European Union, or, even better, of the agreement on associated relations. Many international representatives have reiterated their position that Croatia meets all the requirements for admission to the Partnership for Peace, and to the Euro-Atlantic Cooperation Council. One should intensify negotiations regarding the admission to the World Trade Organisation and the OECD, and negotiations with all CEFTA countries, with respect to the conclusion of bilateral agreements on free trade zones, such as the one already signed with Slovenia and arranged with Slovakia, and with respect to membership in CEFTA. An analogous agreement has also been signed with Macedonia. Croatia’s chairmanship in the Central European Initiative is an outstanding occasion for expanding the country’s relations and approaching European integration trends. In order to be as efficient as possible in this regard, I would consider it appropriate to have a special Government member in charge of speeding up this process and coordination with European integrations. We must continue to develop the closest relations with all our neighbours, based on the principles of good-neighbourliness, mutual respect and reciprocal benefit. We ought to strive to resolve as soon as possible all open issues with Slovenia, in the interest of both countries, and long-standing discussions on the matter have been under way. If no bilateral agreement is reached with regard to unresolved matters, we may request international arbitration. In Bosnia-Herzegovina, where international forces continue to be present, we should sustain our active support to the peace process, while safeguarding our State-national interests, on the basis of the Washington and Dayton Agreements intended to assure a truly constituent and equal position to the Croatian people. The negotiations regarding the establishment of special relations with the Federation of Bosnia-Herzegovina and the Inter-State Council for Cooperation with Bosnia and Herzegovina ought to be completed as soon as possible. We will continue to develop and expand mutually beneficial relations with all countries, friendly countries and major international factors in particular. We shall appreciate the role and the responsibility of the United States and the European Union, generally, and specifically with regard to the resolution of the complex crisis in Bosnia-Herzegovina. For obvious political and economic reasons we ought to develop the most comprehensive relations with the great China and the Russian Federation, both with regard to our national interests and with respect to global relations. At the beginning of a new period, the State and political leadership of independent and democratic Croatia is aware of its responsibility to its people and to the international community in assuring the development of the country, and in contributing to the strengthening of peace and the international order in this part of the world. III. INTERNAL, DEMOCRATIC AND JUDICIAL ORDER 1. Realisation of the Democratic System of State Authority In 1997, all bodies of Croatian state authority continued to operate regularly in the exercise of their constitutional and statutory powers. The Croatian State Parliament has fully accomplished its constitutional task, that of the legislative and representative body, in operating as a modern, democratic and multi-party bicameral parliament. As in previous years, the Croatian State Parliament enacted a number of laws in 1997. This has finally adjusted the conformity of Croatia’s overall legislation and judicial system to the Constitution and, concurrently, to the Convention on the Protection of the Rights of Man and Fundamental Freedoms, and other Council of Europe conventions ratified by the Croatian State Parliament in 1997. Among the many laws, particular mention ought to be made of the Criminal Law and the Law of Criminal Procedure, the enactment of which brings Croatian criminal law on a par with the highest European standards. The Government has systematically exercised its constitutional and statutory executive duties, and responsibility to the President of the Republic and the Croatian State Parliament. In exercising my constitutional duties I have in 1997 as well taken account of the fact that, pursuant to Article 94 of the Constitution, the President of the Republic is not only the bearer of executive power but that, having been elected directly as the representative of people's sovereignty, he is also responsible for assuring the continuance and unity of the Republic of Croatia, the respect of the constitutional order, and the regular operation of state authority as a whole. In other words, it is the constitutional duty of the President of the Republic to see that all bodies of Croatia’s state authority operate in the general national interest and to the benefit of all Croatian citizens; that all bodies of state authority at all levels respect the rights of man and citizen, and provide for the efficiency of the judicial order and the development of Croatian democracy. In the new, peace-time period of economic, social and political development, it is these constitutional tasks of the President of the Republic that acquire particular importance for the further overall development of the Croatian State and Croatia’s society. This point had to be made, because certain people in public life have mistakenly interpreted that role, out of ignorance of our constitutional order or for demagogic reasons. I do not intend to repeat my words, pronounced last month in this august House, on Croatian democracy and its legal accomplishments, as well as its real limitations and obstacles affecting further development; on this occasion I shall only emphasise the points of particular importance, in my view, in the coming years. All factors involved in the Croatian political system should be aware of the fact that democracy is not a mere political and electoral struggle for power among parties and individuals. It is more than that, because it implies the acceptance of general and common principles and rules for the design and achievement of the life of the State in the interest of the whole people. The rule of law, that is, a balanced constitutional-legal order within which everybody is subject to the same principle of lawfulness, is not only an institutionally legal framework of the democratic order, but also an essential part of its substance. All of us, representatives elected by the people, must do everything in our power to build such a true Croatian democracy as soon and as fully as possible. This is, namely, one of the essential conditions to be met if we truly want Croatia to be what we want it to be - a State for the people and a social State. The extensive scope of further development of democracy, and of a society distinguished by social justice, provides opportunities to all, and particularly to political parties, various interest groups and associations - while general national-State interests require, in spite of political differences and confrontations, that we rise above individual, party and other specific interests, in order to achieve Croatian national concord for the sake of the implementation of that programme. This is what Croatian citizens today request from all of us - State officials and party representatives. 2. Administration of Justice As a whole, the Croatian legal system, in terms of structure and legislative solutions, conforms to the Constitution and Croatian traditions, and to the highest European and global standards. Over the past seven years, in spite of exceptional circumstances, the Croatian Government has allocated substantial budgetary funds to improve the working and living conditions of judges and other judiciary officers. Along this line, the State budget for 1998 envisages for the administration of justice an amount which is 20 per cent higher than in 1997. Unfortunately, on this occasion I again have to state that, in spite of positive shifts, the state of affairs in the administration of justice, and in the judiciary in particular, still falls short of being satisfactory. The large number of pending cases, and the backlog of cases in the courts cause growing dissatisfaction among citizens and businessmen alike. Indeed, the judiciary arrears jeopardise the very legal security of citizens and all legal entities, and discredit not only the judicial but also the political system of the Croatian State, in which the rule of law must be one of the supreme constitutional values. The total number of pending cases continues to be markedly high. In 1996, without magistrates' courts, it amounted to 793,436, and it has been reduced only slightly in 1997 (it still exceeds 700,000). Most pending cases await procedure in the courts of Zagreb, Split and Rijeka - cities which are otherwise affected by major problems of all sorts. Therefore, I consider it my constitutional duty to request all judiciary bodies and officers, and the Government within the scope of its powers, to take firm steps in order to deal with all pending cases within a period of no more than two years, and to assure timely rulings by all judiciary bodies. The number of vacant positions in the courts should be identified as soon as possible, while lack of space can be dealt with by introducing shifts wherever this is required in order to ensure normal operation of the judiciary. 3. Physical Security of Citizens and the Security of Their Property The overall condition of public law and order in 1997 can be rated as favourable, indeed improved, as compared with previous years. The trend of the continuous decline of the crime rate recorded over the past several years is being sustained, with a concurrent increase of detection efficiency. Thus, the number of criminal offences recorded last year was 6.9 per cent lower than in 1996. However, in 1997 the number of detected organised crimes increased by 9 per cent, that of white-collar crime by 1.8 per cent, and drug abuse by 51 per cent. This indicates their enhanced presence, as well as the continuously improving efficiency in their detection and in the adjustment of preventive measures to the degree of threat to the economic and security system of the State. Improved road traffic safety has also contributed to the generally favourable situation. In spite of the 3.5 per cent increase in the number of traffic accidents, the number of fatal casualties in traffic has dropped by 3.7 per cent. These figures assume even greater importance if one bears in mind a considerably heavier traffic, especially during the 1997 tourist season. Activities focused on improving the organisation of the Ministry of the Interior should be continued in 1998, in keeping with peace- time conditions, with a concurrent staff reduction and age structure improvement, and the enhancement of professional capability and equipment. 4. Government Administration and Local Self-Government As the Head of State, I have to agree with the comments of many citizens who daily apply to me and point out the inefficiency and red tape in the work of government administration. Citizens waste hours on end in trying to exercise their rights and fulfil their duties, they are forced to collect even superfluous receipts, certificates, permits and the like. Thus, dozens of permits and approvals are required for a building licence. Therefore, they are rightfully dissatisfied with such government administration. Croatia needs an efficient, trained, well-paid and incorruptible government administration, reduced in terms of staffing as much as feasible, equipped with modern equipment, computer and communications facilities in particular. Only such a government administration can operate both as a competent administration and as a technical service of citizens and the economy. This will require meaningful and resolute changes in order to assure proper capability of government administration at all its levels. One should employ younger government administration staff and educate them. I request the Croatian Government, and bring a motion to the honourable members of the Croatian State Parliament, to provide for a meaningful design and implementation of these demanding changes by all responsible factors, in line with their powers and duties, within the shortest time possible, not exceeding two years. In this regard it might by appropriate to establish a state commission, involving members of Parliament and Government, in order to consider the functioning of government administration and local self-government. Moreover, I do not believe it indispensable to have all central state institutions in Zagreb. The Croatian system of local government and self-government has certainly been affected from its very beginning by the negative legacy of the past, but it has also continuously and increasingly incorporated Croatian traditions, as well as the essential principles and provisions of the European Convention on Local Self- Government ratified by the Croatian State Parliament in 1997. Along this line, the required changes of territorial organisation, as well as elections for municipal and city councils, and county assemblies, were also carried out last year. This year one should consider and effect changes in the system and funding of local self-government and government, including the concurrent transfer of responsibilities to the counties within their sphere of competence, and the reinforcement of such responsibilities. Along this line, I reiterate my request made in last year's address, that is, the necessity to decentralise certain state powers in the field of public services, and particularly in health care, social welfare, education and ecology. In this, of course, everyone should be fully aware that Croatia's bodies of local government and self-government must implement the decisions of state authorities and carry out local activities, and take due care of local requirements and interests, as in all other modern democracies. According to the Constitution, the Republic of Croatia is a unitary State, and all aspirations and attempts by some local self-government and government units to take over the powers of state authority, which would mean a vertical division of unitary, central state authority, are unconstitutional and unacceptable. In this regard, the demand for a special autonomous position of individual counties is contrary to our constitutional and judicial order." (hina) ha jn 271623 MET jan 98