PROGESS IN DANUBE REGION BUT KEY ISSUES UNRESOLVED - ANNAN

( Editorial: --> 1407 ) WASHINGTON, June 15 (Hina) - Since the conclusion of the UNTAES mandate on January 15 progress has been made in eastern Croatia on a number of issues, but key issues still remain unresolved, the UN Secretary-General Kofi Annan said in a report submitted to the Security Council Monday. The report concentrated on the performance of the UN Civil Police Support Group in eastern Croatia. According to Annan, the unresolved key issues include "the abolishment of discriminatory property laws and the establishment of effective mechanisms which would allow the owners to recover their property". "The (Croatian) Government has also still to adopt a nation-wide comprehensive programme for returns and to develop a balanced reconstruction plan", says the report. Continued ethnically-related incidents, a difficult economic situation and unresolved key issues have prompted many local Croatian citizens of Serb nationality to leave the area, Annan assessed, adding the gap between commitments reconfirmed at the highest level and implementation at lower levels still exists. "These factors combine to produce a perception among the local Serb population that they have no future in Croatia", said the report. Annan assessed it has been possible to maintain a stable security situation in the area due to large Croatian police presence. Despite improvements in police performance "much work remains to be done before the police enjoys local confidence and proves itself to be capable of effectively and impartially policing a multi-ethnic community". Even though the police are professional in their performance, the UN believes its response to ethnically-motivated incidents is not always satisfactory. Annan ascribes the generally satisfactory police performance largely to monitoring by the UN and the special attention paid to the situation in the area by the Croatian Interior Ministry. "In the absence of international monitoring, police performance would be likely to deteriorate", the Secretary-General assessed. "A continuation of international police monitoring would, therefore, seem to be essential both for local confidence and to ensure that acceptable standards of policing are maintained", Annan reported. He emphasised that an improved Croatian police performance is not sufficient by itself to eliminate the many unresolved issues which create a climate fostering ethnic hatred, intolerance and intimidation. "Without strong Government preventive action to discourage intimidation by publicly stressing the equality of all citizens before the law, addressing the outstanding roots causes of these incidents, especially property-related issues, as well as prompt, effective and publicised court action to punish offenders, it will not be possible to bring these incidents under control, irrespective of police efficiency", Annan assessed. He said that small media coverage of police response to ethnic incidents and small fines for offenders create the impression that abuse goes unpunished. The report emphasises that economic development is crucial in building a multi-ethnic society and that it is unlikely that local residents will stay in and Croatian displaced persons return to the Danube river region without employment opportunities. Annan estimates that with the expected return of a large number of Croatian displaced persons this summer incidents might increase unless there is full implementation of the reconciliation programme at all levels throughout Croatia, as well as introduction of effective mechanisms to enable two-way returns and property restitution. In such conditions Serbs will continue to leave the area, Annan assessed, emphasising that since his last report to the UN Security Council earlier this year almost no progress has been made as concerns reconciliation because work at the national level is not reflected on the local one. In his recommendations to the Security Council, Annan said that the number of UN police monitors could gradually decrease starting this August, on condition that the Croatian government greatly accelerates the resolving of the mentioned problems, the return of displaced Croats does not bring to an escalation in the number of incidents, and if police continues improving its performance. In mid-August Annan should submit a new report with recommendations detailing arrangements for the termination of the Support Group mandate by October 15, when the Organisation for Security and Cooperation should take over. A UN Security Council presidential statement on Annan's report could be issued later this week. (hina) ha 152052 MET jun 98