BRIEF NEWS BULLETIN IN ENGLISH NO. 2976

HINA Zagreb - Wednesday, July 22, 1998 GRANIC: GOVT TO RELEASE RECONSTRUCTION PLAN DRAFT THIS WEEK WASHINGTON, July 22 (Hina) - Foreign Minister Mate Granic has announced that the Croatian Government this week will release the first draft of its reconstruction plan, which the international community has placed as a condition for its participation in a donors conference for reconstruction and development set down for October. "The United States of America has promised its attendance and support and we, that means the Republic of Croatia's Ministry for Reconstruction, will this week give our first proposed plan for reconstruction," Granic said in Washington on Wednesday, following talks with US Secretary of State Madeleine Albright and American special envoy Robert Gelbard. "We will, together with UNIDO (United Nations Industrial Development Organisation) and openness towards the OSCE (Organisation for Security and Cooperation in Europe) and other international organisations, work on this plan until the beginning of the conference in the second half of the 10th month this year." Granic assessed that his meetings with US administration representatives showed that relations between the two countries were improving. "Relations between the United States of America and the Republic of Croatia are on the rise," the Croatian Foreign Minister said. "This was one of the better meetings up to now without any pressures (being applied). They were friendly discussions on all issues of relations. "I would additionally say that the Secretary of State made very favourable expressions on the current level of relations between Croatia and the USA and generally on the progress achieved in recent times." Granic added that the talks mostly focused on issues related to Bosnia-Herzegovina, followed by the Croatian Government's refugee return programme, furthering democracy in Croatia and the country's entry into NATO's Partnership for Peace programme. The trial of World War II Jasenovac concentration camp commander Dinko Sakic was also mentioned during the meeting, and Granic said the American side had presented documents from the US National Archives. He also raised the issue of fast-tracking the trial of Croat indictees in The Hague, as well as the failure to bring before justice those responsible for committing crimes against Croats in Bosnia-Herzegovina. Asked if there was mention of changes to the Croatian electoral law, Granic confirmed it was discussed "without going into details". "There was only word that the Republic of Croatia (and) its government does not intend calling elections, no early elections, and, according to that, this question is not very current for us," he said. "We are investigating the electoral laws of other European democratic states and I informed the Secretary of State about this." MADELEINE ALBRIGHT & MATE GRANIC RELEASE JOINT STATEMENT WASHINGTON, July 22 (Hina) - American Secretary of State Madeleine Albright and Croatian Foreign Minister Mate Granic released a joint statement on Wednesday following their meeting in Washington. Hina will release the entire text of the statement, which reads as follows: "Secretary of State Albright and Minister of Foreign Affairs Granic discussed a broad range of bilateral issues and expressed satisfaction with recent developments on issues of importance to the international community and to the bilateral relations of the two countries. They reaffirmed Croatia's commitment to facilitate the return of refugees to Croatia, to fully implement the Dayton Accords and to build a democratic and civil society in Croatia. They reiterated the joint statement by Deputy Secretary (Strobe) Talbott and former (Croatian) Defence Minister (Gojko) Susak made on January 30, 1998 and committed to the rapid implementation of its provisions. Secretary Albright comprehensively discussed with Minister Granic the steps Croatia needs to take to fully implement the Dayton Accords. She also delivered to Minister Granic a list of areas where Croatia is expected to improve its Dayton compliance. "A major topic of the meeting was eventual Croatian membership in (NATO's) Partnership for Peace (programme) (PfP) as the next significant step towards Croatia's full integration into Euro- Atlantic organisations. Minister Granic emphasised on behalf of the Government of Croatia that Croatia will take all necessary steps to meet the requirements stated in the PfP road map in the forthcoming months. Secretary Albright emphasised that complete fulfilment of these commitments, especially in the areas of Dayton implementation, return and confidence building among ethnic groups, and democratisation will lead to full US support for Croatia's membership in PfP. Both sides expressed hope that this would be accomplished by the end of the calendar year. "Both sides agreed on the fundamental right of return for all refugees and displaced persons in Croatia and the region as expressed in both the Dayton and Erdut Agreements, and reiterated their firm commitment toward this end. The Secretary congratulated Minister Granic on the successful development of Croatia's plans and procedures for the return of refugees and displaced persons. Minister Granic pledged that Croatia will take immediate steps to resolve any problems in the implementation of the Government's return procedures. Minister Granic and Secretary Albright agreed to continue working intensively to ensure that the programme on returns is fully implemented and that the rate of actual returns is accelerated. Foreign Minister Granic reaffirmed his government's commitment to establish the security conditions and economic development necessary to allow all citizens of Croatia, including those in Eastern Slavonia, to remain in their homeland. "The Secretary reviewed US Government concerns on the need to continue the ongoing process of building democracy and civil society in Croatia. In particular, Secretary Albright noted the need for a completely free and independent media, especially in electronic media. She also stressed that the election laws need to be substantially changed. She emphasised that these improvements are necessary to ensure beyond doubt that the next Croatian elections are both free and fair. "Both Secretary Albright and Minister Granic reiterated their commitment to all aspects of the Dayton Agreement and rejected any suggestion that the agreement be changed or modified. Foreign Minister Granic assured Secretary Albright that the Government of Croatia would continue to play a positive role in facilitating progress on police integration and the complete dismantling of remaining parallel institutions in the (Croat-Muslim) Federation (of Bosnia-Herzegovina). Secretary Albright assured Minister Granic that the US Government is insisting that all parties dismantle those pre-Dayton institutions which violate the Accords. The Government of Croatia expressed full support for the current election process underway in Bosnia-Herzegovina, and pledged to do everything possible to ensure that free and fair elections are successfully carried out and the results implemented fully. Minister Granic and the Secretary expressed their full support for the return of all displaced persons throughout Bosnia-Herzegovina, including to the (Bosnian Serb entity) Republika Srpska. Both condemned the recent acts of violence against returnees in Bosnia- Herzegovina. "The Secretary welcomed the Croatian Government's commitment to create and enforce a uniform border regime with Bosnia-Herzegovina and to resolve all outstanding territorial issues on the basis of mutual respect for the sovereignty and territorial integrity of each country. Minister Granic noted the importance of completing negotiations regarding the port of Ploce to enhance its commercial use for the benefit of the region and said the Government of Croatia will move quickly to sign an agreement with the Government of Bosnia-Herzegovina. "In light of the recent extension of the UN Mission on (the) Prevlaka (peninsula), Secretary Albright reiterated US support for Croatia's territorial integrity within its internationally recognised borders and the US view that all of the parties must work to bring the mission to a satisfactory conclusion in a reasonable time. "Minister Granic expressed Croatia's support for the Hague Tribunal, and reiterated former Defence Minister Susak's pledge to Deputy Secretary Talbott to cooperate fully on all investigations and prosecutions. "The Secretary commended the Government of Croatia on its decision to request the extradition of and to try World War II Jasenovac concentration camp commander Dinko Sakic. Minister Granic assured her that the Government is fully committed to seeing that justice is done and that the trial will be fair, thorough, transparent, and take advantage of all possible witnesses. "Secretary Albright reiterated to Minister Granic that progress in these areas remains essential to meeting the requirements for US support for Croatian membership in PfP. Secretary Albright also made clear that the US government looks forward to rapid implementation of the refugee return plan and the development of a reconstruction plan so that the US can actively support a donor's conference, and develop broader economic and political relations with Croatia," the joint statement ended. INT REPS EXPRESS SATISFACTION WITH RETURN PLAN PROGRESS ZAGREB, July 22 (Hina) - The United States is very impressed with the implementation of the Croatian Government's refugee return plan, American Ambassador in Zagreb William Montgomery said on Wednesday. US Secretary of State Madeleine Albright will give full support and expressed great appreciation for the brave steps the Croatian Government has taken regarding the return plan over the last few weeks, Montgomery said in his press release following the informative meeting on implementation of the return plan, organised by the Croatian Government for international community representatives. We are very much impressed because these steps are exactly the ones that should be taken and we are really satisfied with what has been done, Montgomery said. Stressing that the United Nations High Commission for Refugees (UNHCR) has been closely co-operating with the Croatian Government for years, UNHCR mission chief in Croatia Robert Robinson also expressed great satisfaction with what the Government has done regarding the return plan. It seems that a new era of co-operation has dawned and we are very pleased with the degree of progress achieved, Robinson said. The UNHCR is aware that the return of the refugees and successful reintegration is a lasting process during which a number of problems could arise, Robinson said. However, if we manage to maintain an air of co-operation and goodwill between our office and the international community and the Croatian Government, there will be nothing that would impede resolving these problems, he said. The European Union is closely monitoring the implementation of the return plan, Andreas Stadler, an advisor to the embassy of Austria (presiding country of the European Union), said on behalf of the EU. The Croatian Government has shown a clear determination to implement this plan over the last two or three weeks, which we sincerely support, Stadler added, expressing his hope that this high degree of co-operation would be maintained in the future. European Commission special envoy Per Vinther confirmed Stadler's statement and emphasised that he hoped that the housing commissions would be established soon, in order to start a full-scale return in summer and early autumn. "The Croatian Government is determined to fulfil its obligations to the international community, in accordance with the state policy of return and reconstruction. Therefore, the statements of the international community representatives made us very happy," prime ministerial advisor and Office for Co-operation with the OSCE chief Tomislav Vidosevic said. Vidosevic announced that the next press conference would take place on August 18. "The representatives of the housing commissions, which are to be established by the end of July, will participate in the next press conference, and I think that this will make a great progress in our mutual efforts to resolve this very difficult humanitarian issues," Vidosevic said. INTERNATIONAL ORGS WELCOME GOVT INSTRUCTIONS FOR RETURN ZAGREB, July 22 (Hina) - International organisations have welcomed instructions for the establishment of housing commissions as another concrete step in implementing the Croatian Government's refugee return programme. Government instructions to local authorities in areas of return regarding the establishment and activities of housing commissions are of great importance, because it sets a deadline for their formation by the end of July, said the Organisation for Security and Cooperation in Europe (OSCE) spokesman in Zagreb, Mark Thompson, on Wednesday. Thompson was speaking at the regular weekly press conference in Zagreb held jointly by the OSCE, the United Nations High Commissioner for Refugees (UNHCR) and the United Nations. All decisions which were delivered by housing commissions prior to the release of the instructions on July 20 are considered illegal and will be re-examined, which does not necessarily mean they will be changed, Thompson said. The OSCE spokesman emphasised that it would be impossible to begin implementing the programme if all areas of return in the country were not totally covered by the competencies of the housing commissions. Coordinated action by housing commissions across the country therefore will be decisive for a successful beginning to the implementation of the return programme, he said. The OSCE and the UNHCR from next week or a week later will begin releasing regular weekly reports on the implementing of the return programme with the aim of enabling journalists and the public to see the progress made, Thompson said. He announced that OSCE mission to Croatia head Tim Guldimann, who was injured in a traffic accident in Zagreb last week, would be released from a hospital in Zurich today and would continue his recuperation next week. He will return to Zagreb at the beginning of August. Mr. Guldimann thanks all those who sent him wishes for a speedy recovery and praises the high quality medical care offered to him in Zagreb, Thompson said. United Nations Liaison Office (UNLO) in Zagreb spokeswoman Kirsten Haupt said the number of incidents in the eastern Danube River region during the past seven days had been reduced considerably in relation to the previous week. She also turned to comments on by Croatian Parliament Vice- President Vladimir Seks, reported in the Croatian media, that representatives of the international community in the Osijek- Baranja and Vukovar-Srijem Counties had not participated in mine clearing programmes. We seriously regret such incorrect comments by Mr Seks, she said, emphasising that the international community had in large measures participated in de-mining projects in the Danube region since January this year, of which some have been completed and others are continuing. These projects mostly involved the de-mining of the agricultural areas. She said that before the adoption of the amendment to the Law on Mine Clearing in June this year, it had been difficult for foreign humanitarian agencies to be included in de-mining projects in Croatia. But the amendments have resolved this problem. We regret Mr Seks is not aware of these particulars, Haupt concluded. UNHCR mission to Croatia chief Robert Robinson and the Croatian Government's Office for Refugees and Displaced Persons head Lovre Begovic on Monday met in Belgrade with high-ranking officials from the Yugoslav Foreign Ministry and the Serbian Refugees Commission, UNHCR spokesman Andrej Mahecic said. Robinson said the meeting concentrated on confirming the procedure registering return, and it was constructive. The next such meeting will be held in the second week in August in Montenegro, the UNHCR spokesman said. Mahecic said the return programme had to be carried out in accordance with established rules and government instructions. There were cases in Baranja where assembly centres had been offered as alternative accommodation, which was not in accordance with the government's return programme, Robinson said. GOVT PROVIDES EXTRA FUNDS TO STIMULATE OSIJEK-BARANJA ECONOMY ZAGREB, 22 July (Hina) - Croatian Prime Minister Zlatko Matesa on Wednesday received Osijek-Baranja Prefect Srecko Lovrincevic to discuss the economic situation in the eastern Croatian county. Eastern and northern parts of the county had been under Serbian occupation from 1991, and were under UN protection until January 15 this year. Matesa and Lovrincevic considered the county's economic problems and potentials and stated that all the indicators provide a basis for moderate optimism regarding the recovery of economy, the Government Public Relations Office announced. The Government gave support to the county administration's and prefect's efforts to encourage the development of small and medium- scale enterprises and entrepreneurial activities, as well as the restructuring and rehabilitation of existing local enterprises. The Croatian Government will provide additional funds for this purpose. VUKOVAR DISPLACED CONSIDER RETURN PRECONDITIONS NOT FULFILLED VUKOVAR, July 22 (Hina) - Displaced Vukovar citizens say they are torn between their hosts' requests for their return to Vukovar and the actual situation in the eastern Croatian city which, according to them, is not ready for their massive return. On Wednesday the leaders of displaced Vukovar citizens' associations from about 20 Croatian towns talked with representatives of the Vukovar authorities about the return process. They conveyed the views of displaced people opinion that the Croatian public mistakenly believes that the reconstruction of Vukovar is well under way and that the displaced will be able to leave current accommodation and return to their homes. We want to return, but mere reconstruction of our homes does not guarantee a dignified existence. There are many problems and unemployment is the greatest, the displaced persons' representatives said. Some spoke in favour of modifying the Reconstruction Act, because the current one did not guarantee that houses would be reconstructed in accordance with their original appearance. They invited the hosts to come to Vukovar and see the situation for themselves. "For seven years, we have been asked to be patient. Now we are asking you for a little patience, so that we can live decently after we return home," one Vukovar citizen said. HEP SPENDS $8 MIL IN RECONSTRUCTING DANUBE REGION POWER SYSTEM VUKOVAR, July 22 (Hina) - About US$8 million has been invested into the reconstruction of the Danube River region's power supply system since it was reintegrated back into the Croatian Electric Utility Co. (HEP) a year ago, HEP officials said on Wednesday. The power supply has been maintained at a satisfactory level for the whole time. Reconstruction is still in progress and Vukovar will be a priority for HEP's reconstruction programmes, HEP representatives said. Since July 22, 1997, when HEP general director Damir Begovic and United Nations representatives signed an agreement on reintegration, 25 new transformer stations as well as about 100km of various electrical networks have been built, and the town of Ilok was included in the HEP system through a transmission line. This autumn, the electric network in four Danube region villages and parts of Vukovar where reconstruction is in progress will be reconstructed, HEP representatives said at the press conference held in Vukovar. During the last few weeks, HEP has begun disconnecting defaulters in the Danube region. The outstanding electricity debts are much greater in this region than in other parts of Croatia, the HEP representatives said. Households in the region owe more than US$2 million to HEP and companies owe about US$2.3 million. HEP denies claims made by international community representatives that the defaulters are mostly welfare cases. There are welfare services which are in charge of such cases, but here we have defaulters who spend up to five times more power than the average and therefore can hardly classify as welfare cases, said Vladimir Vulic, HEP's sales and public relations service chief in Vinkovci. HEP officials thanked the European Union which gave about DM1 million in aid to the power supply system in Danube Region this year. HEBRANG & ISRAELI AMBASSADOR SUPPORT EXTENDING MILITARY TIES ZAGREB, July 22 (Hina) - Military co-operation between Israel and Croatia would imply a further improvement of already very good relations between the two countries, it was emphasised at Wednesday's meeting of Croatian Defence Minister Andrija Hebrang and Israeli Ambassador Nathan Meron. Hebrang and Meron expressed their willingness for cooperation and started the talks on cooperation in the training of officers and non-commissioned officers. During talks, the issue of signing a bilateral military cooperation agreement between Israel and Croatia was discussed. SFOR ANNOUNCES REPLACEMENT OF AMERICAN UNITS IN BOSNIA ZAGREB, July 22 (Hina) - The United States First Cavalry Division will during August replace the US First Armoured Division which is acting as part of the NATO-led Stabilisation Force (SFOR) in Bosnia. The equipment and soldiers will arrive from Fort Hood, Texas, to the Croatian port of Rijeka, SFOR's Information Centre in Zagreb said in a statement on Wednesday. As host, Croatia will cooperate with SFOR in this operation, the statement said. SFOR soldiers will be present to coordinate transport in Rijeka, but the operation will not cause any traffic problems for the northern Adriatic city's residents, it added. Most equipment will be transported by rail to Tuzla, north-eastern Bosnia, while only a small portion will be transported by road. Late in August, the First Infantry Division's helicopters will also reach Rijeka, where they will be assembled and then be directed to the city's airport on the nearby island of Krk. After technical check-ups, the helicopters will fly to Tuzla. Meanwhile, the United States Information Service (USIS) based at the American Embassy in Zagreb released a statement which said that contrary to some press reports, there were absolutely no plans for the establishment of a US or NATO military base in Rijeka. The First Cavalry Division's transit through Rijeka to replace the First Armoured Division was a normal rotation of military units into SFOR, the statement said. "The US Embassy is pleased with the level of support extended by the Croatian Government and local officials," the statement said. OSCE TOLD MINES ARE BIGGEST OBSTACLE TO RETURN IN KARLOVAC KARLOVAC, July 22 (Hina) - A leading local Organisation for Security and Cooperation in Europe (OSCE) official held talks on Wednesday with Karlovac County Prefect Vlado Jelkovac on the return of refugees and displaced people and reconstruction in the Karlovac area. The basis for cooperation between the OSCE and the Croatian Government and local authorities in the forthcoming period will be the government's return programme which is positive, said the head of the OSCE co-ordination centre for central Croatia and western Slavonia, Carlo Ungaro. Jelkovac informed Ungaro of the consequences of Serbian aggression on the Karlovac area, where more than 14,000 homes and commercial buildings had been destroyed, and on efforts in reconstruction and the return of displaced people and refugees. They also discussed the difficult position of about 5,000 Bosnian Croat displaced people who had found refuge in the area. The Karlovac Prefect told OSCE representatives that 5,400 Serbs had returned to the county up to now. Return is burdened especially in areas where Bosnian Croats have emerged, but the biggest obstacle is mines, from which about 30 or so Croat returnees have been killed or injured since the area was liberated in the summer of 1995, Jelkovac said. Both sides agreed that vital for the return process was the economic revival of the town of Karlovac and Karlovac County, because the pace of return would depend on this. AGREEMENT REACHED ON PROCESS OF SERB RETURNS TO KNIN KNIN, July 22 (Hina) - Knin Mayor Josip Odak held a working meeting on Wednesday with Knin OSCE Coordination Centre chief Andreas Kohlschuter. Following the meeting, Kohlschuter emphasised that an agreement on the process of return of Croatian citizens of Serb ethnicity to the Knin area was reached. Taking historical events and the emotional issues that have arisen into account, the international community should not pressure the return, Kohlschuter said, adding that the return should be a step- by-step process. Mayor Odak judged today's meeting as useful because the accord with the OSCE representatives on the implementation of the Government's Return Programme was reached, and the details regarding the Sunshine programme of the Swiss government which will help the reconstruction of the part of Knin municipality were agreed upon. Odak responded to Kohlschuter's statement that the moving of Bosnian Croats currently living in Knin to third countries with the intermediation of various international organisations was a natural process. He said that the Croatian authorities did not intend stopping citizens from going to other countries, but that they would not allow international representatives to talk them into leaving Croatia. FORMER JASENOVAC CAMP INMATE TESTIFIES IN SAKIC TRIAL ZAGREB, July 22 (Hina) - The investigating judge at the Zagreb County Court on Wednesday examined Vladimir Cvija, a witness in a trail against Dinko Sakic. Sakic was the commander of a Croatian World War Two concentration camp in Jasenovac. Cvija, born 1919, was arrested as a communist in Zagreb in May 1942 and was sent to Jasenovac. In spring 1943 he was transferred to a concentration camp in Stara Gradiska, then returned to Jasenovac in mid 1944, where he remained until January 15, 1941, when he was exchanged in Pisarovina. The witness said he had seen the accused twice at the Jasenovac camp. Sakic was "dressed up" and was said to be "youthfully ambitious and cruel", the witness said, but could not testify that Sakic had committed or been present at a crime. Cvija assessed the time at the Jasenovac camp while Sakic was commander as a "golden age" for the inmates, as no mass killings took place, the food was better, hygiene had improved, packages could be received, even a camp orchestra was put up in which the witness himself played. Cvija spoke about mass killings of Jasenovac inmates in the autumn of 1942, at the Granik location. He said he heard the people's cries as he lived in the attic of a building for carpentry which had no roof insulation. The witness said he could not remember many things because he had tried to forget a lot. CEI SUPPORTS AN INTERNATIONAL PRESENCE IN KOSOVO ZAGREB, July 22 (Hina) - A meeting of national coordinators of the Central European Initiative (CEI) - a regional inter-state organisation presided by Croatia this year - ended on Wednesday in Trieste. The Croatian Foreign Ministry says that during the two-day meeting, the National Coordinators Committee accepted the CEI fact-finding mission report. The mission visited the border area between Albania and the Federal Republic of Yugoslavia. This is the first such mission organised by the CEI and it was lead by Vladimir Drobnjak, an assistant to Croatian Foreign Minister Mate Granic. The CEI will submit its report to the Contact Group and European Union members, as well as the Organisation for Security and Cooperation in Europe. The National Coordinators Committee expressed special gratitude to Croatia for its successful organising of the mission. The Committee recommended CEI members make further efforts in order to provide the presence of international community representatives in Kosovo, with the purpose of stopping the battles. It deems that the southern Yugoslav province needs a long-term OSCE mission. The Committee also delivered a recommendation to the governments of CEI member-countries to investigate the possibilities of sending humanitarian aid to Albania's northern region. It was also decided that the CEI should send a new fact-finding mission in cooperation with the Albanian Government in mid- November. The Croatian embassy made an announcement on preparations for the First CEI Economic Forum to be held in Zagreb from November 19 to 21. The Forum should be organised within the framework of prime ministers' meetings. In the same period, a conference of foreign investment agencies and the CEI members' chambers of commerce will be organised. AT LEAST 52 ALBANIANS KILLED IN ORAHOVAC - KOSOVO INFO CENTRE PRISTINA, July 22 (Hina) - Fifty-two Kosovo Albanians have been killed in battles between Serbian forces and the Kosovo Liberation Army in Orahovac which indicates the incomplete tragic balance of power, the Kosovo Information Centre (KIC) said on Wednesday. The Albanian-run KIC released a list of 16 new names of killed Kosovo Albanians, of which nine were killed, then covered with straw and their bodies burnt. The number is not final and it is feared that more than 100 Albanians have been killed in the Orahovac clashes. Several hundred Albanian civilians from Orahovac and surrounding villages have been arrested and carried away, the KIC said. The pro-Serbian government Media Centre in Pristina on Wednesday organised the arrival of a group of domestic and foreign journalists to Orahovac in order to show Serbian police had complete control over the town. Police representatives told reporters that during the clashes in Orahovac two Serbian police officers had been killed, while nine policemen and four Serb civilians had been injured. They also said dozens of armed Albanians had died. Sources in the Albanian capital Tirana, however, report that the situation in the country's northern regions near the border with Yugoslavia are becoming more strained, and that Serbian forces had fired at Albanian territory with sniper-fire. There were no victims but a residential building had been hit, the same sources said. Radio Tirana announced on Wednesday that Serbian forces were increasing their concentration on the border. Official sources in Tirana said Serbian forces had placed mines in the border zone in an attempt to prevent illegal crossings by Kosovo Albanians. OMBUDSMEN ACCUSE FBH OF NOT IMPLEMENTING PROPERTY LAWS SARAJEVO, July 22 (Hina) - Federation of Bosnia-Herzegovina (FBH) ombudsmen on Wednesday warned that property laws necessary for the return of refugees were not being implemented in the Croat-Muslim entity in a satisfactory way. The ombudsmen announced they would be seeking an extension of the deadline for applying the laws to March 1999. In April this year the FBH Parliament passed laws which guaranteed refugees the right of return to their private property and gave holders of tenancy rights an opportunity to return to the flats they fled from during the war. A small number of people have sought the return of their property, which is the result of the poor security situation, the non- existence of freedom of movement, insufficient economic revival and the poor state of the school system. Only a small number of those who sought their property received it back, ombudsman Esad Muhibic said at today's press conference in which the Federation ombudsmen presented their report on the implementation of property laws. In their report the ombudsmen point out how the bodies of authority which were supposed to implement the laws were incompetent and disorganised, but in many cases the problem was that municipal authorities were not functioning because the results of last year's elections had not been implemented. "In Drvar people do not have anyone to give their request to, let alone expect someone to resolve such a request," ombudsman Branka Raguz warned. Ombudsman Vera Jovanovic said for the entire past two years federal authorities had been against delivering a law on returning property, in fact rejecting implementing Annexe VII of the Dayton accord on the return of all refugees. "Their attitude has not changed even after the laws were passed," she said. The best example of this was the non-implementation of the Sarajevo Declaration on the return of 20,000 non-Muslims to the Bosnian capital by the end of the year, Jovanovic said. According to data gathered by the ombudsmen, some 7,500 people requested the return of their flats in Sarajevo while only about 600 received a positive response. The ombudsmen's office has data which shows that only 1,300 flats in Sarajevo house refugees from other parts of Bosnia, while another 5,000 flats house people who had flats in Sarajevo before the war. Muhibic warned that local authorities were refusing to hand over data on flats allocated to local and state officials. From the standpoint of a refugee, there is no difference between violence and state inefficiency, because both mean total lawlessness, Raguz said. 40 000 REFUGEES RETURN TO CROAT-MUSLIM FEDERATION THIS YEAR SARAJEVO, July 22 (Hina) - Forty thousand refugees from western countries have returned to the territory of the Croat-Muslim Federation of Bosnia-Herzegovina in the first six months of this year, the federal Refugees and Social Policy Minister Rasim Kadic said in Sarajevo on Wednesday. That number could however be much higher, he emphasised. According to German Government data, 40,000 people returned to Federation territory from Germany alone, he told reporters. Kadic said that 54 per cent of the refugees who arrived in the Federation did not live in the territory of this Bosnian entity before the war. Most are Muslims exiled from the Bosnian Serb entity in eastern Bosnia. "Their arrival in the Federation makes the social situation increasingly dangerous and tense because federal authorities cannot provide for them," the Minister said. The majority of these returnees spent the war in the Berlin area in Germany. The area's authorities have lately been stimulating them even financially to decide to make a voluntary return to Bosnia. A lasting solution concerning the returnees' accommodation will not be found as long as they are not able to return to their homes in the Bosnian Serb entity, Kadic said. This entity should pass appropriate property laws by late August. The federal minister emphasised that both of Bosnia's entities should jointly work on the return of minority ethnic groups. The Croat-Muslim Federation has made the first steps, he said, and mentioned the return of Serbs to Mostar in southern Bosnia. Sixty Serbs have already returned to the Mostar district of Ortijes, Kadic said, and announced another 100 would return by week's end. According to data of the federal Ministry for Refugees, the international community continues to reduce humanitarian aid. In the first half of this year it amounted to only 13.2 million German marks, mainly in construction material. "Kosovo has become an international community priority, while Bosnia is now secondary," Kadic said. He also warned that because of the Kosovo crisis the number of Kosovo refugees arriving on federal territory had increased. "We estimate there are currently some 5,000 Kosovo refugees in the Federation, accommodated mostly with relatives and friends," Kadic said. Most of these refugees are not registered, 450 requested and 145 were granted refugee status with all the rights this entails. Federal authorities have no other choice but to accept refugees from Kosovo to which they are obliged by international conventions, the minister said. INT COMMUNITY TO ASSIST BOSNIAN TOWNS WHICH STIMULATE RETURN MOSTAR, July 22 (Hina) - The international community has so far invested US$70 million for the return of minority peoples to 14 open cities throughout Bosnia, the spokeswoman of the United Nations High Commissioner for Refugees in Bosnia Ariane Quentier said on Wednesday. Speaking to reporters in Mostar, Quentier said that representatives of local authorities from Zavidovici, central Bosnia, would visit Drvar in western Bosnia on Thursday to call on displaced Zavidovici Croats, currently accommodated in Drvar, to return home. In this way the houses of displaced Drvar Serbs will be vacated enabling the return of the owners, she explained. Tomorrow municipal officials of Konjic in central Bosnia will visit Trebinje in south-eastern Bosnia to call on displaced Serbs from Konjic, currently accommodated in Trebinje, to return home, Quentier said. The UNHCR will offer huge assistance to those authorities willing to agree to the return of minority peoples, she emphasised. UN spokeswoman in Mostar Kelly Moore today condemned the biased and unfair reporting by local media and journalists. The head of the Organisation for Security and Cooperation in Europe (OSCE) office in Mostar David Foley said that OSCE's electoral sub- commission for appeals replaced two municipal councillors in Gornji Vakuf. Zdravko Maric Batinic of the Croatian Democratic Union of Bosnia- Herzegovina and Abdulah Topcic of the Party of Democratic Action's Coalition for an Integral and Democratic BH obstructed the implementation of the results of last year's local election, Foley said. They are banned from taking any administrative duty or attending any meetings of the Gornji Vakuf Municipal Council. WESTENDORP DECLARES PRIVATISATION LAW FOR BOSNIA-HERZEGOVINA SARAJEVO, July 22 (Hina) - International High Representative for the implementation of Dayton accord, Carlos Westendorp, on Wednesday declared the enforcement of the Banks and Enterprises Privatisation Act which will be valid on the whole of Bosnian territory. The decision was made after the Bosnian Parliament's House of the People rejected the act proposal at its Wednesday session in Sarajevo even though it had earlier been accepted by the Council of Ministers and the House of Representatives. Serbian Democratic Party (SDS) representatives voted against the state privatisation act, with the explanation that its enforcement would "threaten privatisation" in the Bosnian Serb entity. A statement released by Westendorp's office on Wednesday emphasised that the rejection of this act on the grounds of such distorted interpretation was totally unacceptable and contrary to earlier agreements. Such an obstruction could only be interpreted as an attempt to threaten the economic recovery process, the privatisation act being a crucial part of it. This was also an attempt to allow discrimination to dominate the process. Westendorp's office demands Bosnian authorities implement the privatisation act immediately, following the principle of non- discrimination and public scrutiny. THIS BULLETIN INCLUDES ITEMS RELEASED BY 22.00 HOURS WEDNESDAY 230018 MET jul 98