TEXT OF DRAFT AGREEMENT ON SPECIAL RELATIONS ( Editorial: --> 8373 )

( Editorial: --> 8373 ) ZAGREB, 4 Nov (Hina) - The following is the full text of the Draft Agreement on Special Relations between the Republic of Croatia and the Federation of Bosnia and Herzegovina, which Croatia on Wednesday presented to top officials of Bosnia-Herzegovina and the Federation of Bosnia-Herzegovina, ambassadors of the Contact- Group member-countries, the EU chairman and to ambassadors of the permanent member-countries of the UN Security Council: DRAFT AGREEMENT ON SPECIAL RELATIONS BETWEEN THE REPUBLIC OF CROATIA AND THE FEDERATION OF BOSNIA AND HERZEGOVINA Convinced that the consistent, integral and speedy implementation of the Washington and Dayton Agreements provides the basis for establishing the conditions for lasting coexistence of the Croat and Muslim-Bosniac peoples in the Federation of Bosnia and Herzegovina, and for the establishment of relations and development of cooperation between the Republic of Croatia and the Federation of Bosnia and Herzegovina in the interest of lasting peace and stability of the international order in the region; Reaffirming the readiness to arrange relations between the Republic of Croatia and the Federation of Bosnia and Herzegovina through special institutional forms of cooperation in accordance with the responsibilities of the signatories of the aforementioned agreements, with the objective of gradual establishment of special mutual relations at an ever higher level; Convinced that equitable cooperation, and the mutual respect of national, cultural, religious and other characteristics of identity and values based on the respect of human rights and democratic freedoms promote the mutual confidence of peoples and individuals in the Federation of Bosnia and Herzegovina; Convinced that the strengthening of cooperation and of ties of the Republic of Croatia with the Federation contribute to lasting general social, democratic and economic development of the Croat and Bosniac peoples, and their integration into European and Euroatlantic integrations; Agreed that the development of ties institutionalised in such a way, and the establishment of special relations between the Republic of Croatia and the Federation of Bosnia and Herzegovina will not be extended to other entities or neighbouring States; In order to achieve these principles and objectives under the Washington Agreements of March 18, 1994, and the Dayton Agreements signed in Paris on December 14, 1995, and in accordance with the Joint Statement issued after the meeting of the President of the Republic of Croatia Dr. Franjo Tudjman and the President of the Presidency of Bosnia and Herzegovina Alija Izetbegovic, and the highest officials of the Federation of Bosnia and Herzegovina, held in Split on August 6, 1997, the Republic of Croatia and the Federation of Bosnia and Herzegovina have agreed as follows; Article 1 The Republic of Croatia and the Federation and Bosnia and Herzegovina will establish special relations with the objective of the gradual establishment of the following: a) free trade zone; b) customs union; c) common market; d) monetary union; depending on general and economic conditions, and respecting the special interests of the Federation and Croatia. Article 2 In order to facilitate the establishment of the integrations listed under Article 1 above, all outstanding matters in the functioning of the Federation of Bosnia and Herzegovina, such as traffic connection, the structure and boundaries of municipalities, and other questions of interest to the fruitful coexistence of the two peoples, will be resolved with. The parties also undertake to resolve through competent inter- state institutions all outstanding questions related to the border between the Republic of Croatia and Bosnia-Herzegovina, thus also providing the indispensable prerequisites for the establishment of special relations. In order to respect the fundamental civil and political rights of all citizens, the federal bodies in all cantons undertake to ensure the right of activity and performance of political and public office to all lawfully elected representatives. Article 3 The special relations under Article 1 above refer to the stimulation of cooperation and coordinated activity of executive, legislative and other institutions of the Republic of Croatia and of the Federation of Bosnia and Herzegovina in the following general and specific fields. 1. Economic cooperation and trade, promotion of joint investments, construction and cooperation in the use of manufacturing, power, agricultural and other potentials and facilities, the development of the transport infrastructure and communications (roads, railways, air and river traffic) and telecommunications, transfer of technology, cooperation between chambers of commerce. 2. Coordination of plans and cooperation in development and reconstruction, harmonisation of legislation, cooperation in the implementation of privatisation and denationalisation, and cooperation in the management of economic policies. 3. Political cooperation in matters of importance for relations with international institutions and factors, including consultations on joint policies with respect to European integrations. 4. Cooperation in security-defence matters, including the coordination of defence policies and the establishment of joint commands in the case of war or immediate danger to any of the parties, and in the struggle against terrorism and prevention of smuggling, drug trafficking and organised crime. 5. Cooperation in the field of education, culture, development of science and technology, mass media, social policies and health care, tourism, protection of the environment and use of natural resources, sports, and activity of nongovernmental organisations. 6. Cooperation in the development of regional and local government and self-government, resolution of property-right issues, and general harmonisation of legislation. 7. In accordance with the provisions of the Washington and Dayton Agreements, and in line with current European experience, the parties will conclude an agreement on access to the Adriatic Sea and the use of the port of Ploce, and on passage across Neum, to be covered by a separate annex to this Agreement. 8. In accordance with the provisions of the Washington and Dayton Agreements, and of the Memorandum of Understanding between the Government of the United States of America, the Government of the Republic of Bosnia and Herzegovina and the Government of the Republic of Croatia, related to the economic reconstruction and development of infrastructure in Bosnia and Herzegovina and the Republic of Croatia, concluded in Dubrovnik on July 11, 1996, the Parties will take steps to establish the traffic corridor from the port of Ploce to the northern border of Bosnia and Herzegovina, and across Neum with a need to construct road communication Dubrovnik- Neum-Bihac-Zagreb across the territory of the Federation of Bosnia and Herzegovina. 9. In order to strengthen their special relations, the Parties will form a Joint Committee or Consortium for the coordination of infrastructural project construction, and for the coordination of overland ad air traffic connecting the Republic of Croatia and the Federation of Bosnia and Herzegovina. 10. The Parties may also agree on other annexes to the Agreement for the purpose of efficient achievement of cooperation in the fields listed above. Article 4 The Council for Cooperation between the Republic of Croatia and the Federation of Bosnia and Herzegovina will be established for the purpose of implementation of special relations between the Republic of Croatia and the Federation of Bosnia and Herzegovina. The Council will prepare and adopt proposals and recommendations for the competent executive and legislative, and scientific, cultural and other institutions of the Republic of Croatia and the Federation of Bosnia and Herzegovina. The Council may also form special ministerial committees. Article 5 The Council will have eight members, four from the Republic of Croatia and four from the Federation of Bosnia and Herzegovina. The President of the Council is the President of the Republic of Croatia and the vice-presidents will be the president and the vice- president of the Federation of Bosnia and Herzegovina. The Council adopts decisions and recommendations through agreement of the Council members from the Republic of Croatia and Council members from the Federation of Bosnia and Herzegovina. At its first session the Council will adopt its Rules of Procedure. Article 6 The Council's Joint Secretariat, with the seat in Zagreb, will be instituted in order to provide for coordination and efficiency of operations. The Joint Secretariat will be headed by the Secretary General and two deputies appointed by the Council. The organisation of the Joint Secretariat, its composition, funding and operation, will be decided by the Council. The Joint Secretariat will report to the Council. It will coordinate the preparations for Council meetings, and provide for efficient implementations of Council proposals and decisions in cooperation with the competent bodies of the Republic of Croatia and the Federation of Bosnia and Herzegovina. Article 7 As a rule, the meetings of the Council will be held every three months alternately in the Republic of Croatia and the Federation of Bosnia and Herzegovina. Article 8 The Council will regularly inform the public, though communications and statements, about its positions and decisions reached at its sessions. Article 9 An Advisory Council will be formed, consisting of forty (40) members appointed from among the members of the Parliament of the Republic of Croatia and the Parliament of the Federation of Bosnia and Herzegovina in order to consider essential matters in mutual relations, submit motions in the parliaments of the two parties, and provide specific initiatives for the successful development of special relations between the Republic of Croatia and the Federation of Bosnia and Herzegovina. Article 10 This Agreement will enter into force after the reciprocal notice of the Parties hereto that all requirements have been met for the entry of agreements into force as provided for by the internal legal system of each of the Parties hereto. The Parties undertake to complete the procedure of entry into force of this Agreement within the period of six (6) months from the day of signing of this Agreement. Article 11 Made on........., 1997, in two original copies. for the Republic of Croatia for the Federation of Bosnia and Herzegovina (hina) mš rm 051756 MET nov 97