SIGNIFICANT PROGRESS ACHIEVED IN BOSNIA-HERZEGOVINA - GELBARD

( Editorial: --> 2539 ) WASHINGTON/ZAGREB, May 8 (Hina) - Significant progress has been achieved in the implementation of the Dayton Agreement in Bosnia- Herzegovina during the past year, special US envoy Robert Gelbard said in Washington on Friday in his report before the US Senate's Foreign Policy Sub-Committee. Adding to the achievements are the increased freedom of movement between the Croat-Muslim Federation and the Serb republic in Bosnia-Herzegovina, and the recently signed agreement between Federation Premier Edhem Bicakcic and his Bosnian Serb counterpart Milorad Dodik on the reintegration of the country's railway system. The agreement will greatly contribute to the process of revitalising the economy, Gelbard said. Both entities and the central government have fulfilled all obligations for receiving standby credit from the International Monetary Fund (IMF) and the World Bank. This would bring more than US$100 million of aid to Bosnia- Herzegovina, which should accelerate economic reforms and growth, he said. Gelbard hailed the progress achieved in the process of deferral of war crimes suspects to the International Criminal Tribunal for the former Yugoslavia (ICTY). During the past several months the international community has been increasing its attention on the Bosnian Federation and supports the resolute actions of the international High representative for Bosnia-Herzegovina against those who obstruct reintegration. At a recent meeting of the Federation Forum (presided over by the United States and the High Representative's Office), a process for annulling the remainder of illegal institutions from the war period and for strengthening reintegration of Mostar had been reached, Gelbard said. Submitting his report before the upcoming donors' conference for Bosnia-Herzegovina, Gelbard said US$1.1 billion was expected to be gathered for further restructuring of the economy in Bosnia- Herzegovina and the US had promised an additional US$250 million. An accelerated return of refugees is expected, Gelbard stressed. Elections scheduled for September 12 and 13 will provide the best opportunity for promoting pluralism in Bosnia-Herzegovina and will help new leaders come to power, Gelbard said. We are actively working towards that - helping with independent media, opposition parties and non-government organisations, he said. A large number of current leaders are not effectively working in the interests of the people of Bosnia-Herzegovina - they are turned too much towards the past and personal power for them to make the compromise necessary for achieving permanent peace, Gelbard concluded. (hina) lm /mb 081959 MET may 98