DONORS MEET TO RAISE USD 1.2 BILLION IN AID FOR BOSNIA

ZAGREB, April 12 (Hina) - The purpose of a two-day donors' conference which opened in Brussels on Friday is to raise USD 1.2 billion in aid for rebuilding Bosnia-Herzegovina, the head of the US delegation, Finance Undersecretary Lawrence Summers, told reporters before the meeting. Summers recalled that the World Bank had drawn up a USD 5.1 billion plan for reconstruction of Bosnia-Herzegovina over a period of the next three years. The funds should be spent on the building of infrastructure and the stimulation of agricultural production. The European Commission and the World Bank had organized the first donors conference in December last year where participating countries pledged about USD 600 million in aid. The United States then pledged to ensure USD 62.5 million, Summers said. On March 29, the US Congress approved an additional USD 198 million in aid for Bosnia-Herzegovina and President Clinton announced that US reconstruction aid to that country would amount to USD 600 million over a three-year period. A lasting peace in Bosnia-Herzegovina would be possible only if the arms fell silent forever and the people of that country felt the benefits of peace, Summers said. Summers said that about 35 percent of the country's roads, 40 percent of the bridges and half the schools had been destroyed. About 75 percent of the Federation population was unemployed and about 80 percent of people received humanitarian aid. Per capita income of Bosnia-Herzegovina's Moslem population had dropped from prewar USD 1,900 to about USD 500 last year while industrial output hardly reached 10 percent of prewar levels. Summers said that there should be no delay in implementing economic measures and that Federation officials had to establish as soon as possible effective institutions and government structures, particularly customs and tax services and a unified monetary system. The Bosnin Croat-Moslem Federation and the Bosnian Serb entity must fulfil all their commitments from the US-sponsored Dayton peace agreement or the international community would withhold its assistance, Summers said. (hina) vm 121331 MET apr 96