[Federal Register Volume 64, Number 75 (Tuesday, April 20, 1999)]
[Notices]
[Pages 19398-19399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9894]
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DEPARTMENT OF STATE
[Public Notice 3030]
Bureau of European Affairs; U.S. Bilateral Assistance to Bosnia
and Serbia
The Acting Secretary of State issued on April 12, 1999, a waiver
under Section 570 of the Foreign Operations, Export Financing and
Related Programs Appropriations Act, 1999, authorizing a U.S. vote in
favor of a World Bank credit to Bosnia, including the Republika Srpska
(RS). Presented hereunder are the Determination and accompanying
Memorandum of Justification.
FOR FURTHER INFORMATION CONTACT: Office of the SEED Coordinator, Larry
C. Napper, Department of State, 2101 C St NW, Washington, DC 20521
(202-647-0853).
Determination on U.S. Position on Proposed World Bank Program for
Bosnia and Herzegovina
Pursuant to the authority vested in me by section 570 of the
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1999, as enacted in P.L. 105-277 (``FOAA''), I
hereby waive the application of Section 570 of the FOAA with regard to
the U.S. position on the proposed program of the World Bank to
establish a Local Development Fund (LDF) in Bosnia and Herzegovina.
The U.S. representative may vote in favor of the proposed LDF
program.
I hereby determine that this program would directly support the
implementation of the Dayton Agreement and its Annexes.
This Determination shall be published in the Federal Register.
Dated: April 12, 1999.
Strobe Talbot,
Acting Secretary of State.
Memorandum of Justification Under Section 570 of the Foreign
Operations, Export Financing, and Related Programs Appropriations
Act, 1999, to Approve Local Development Fund Program in the
Republika Srpska
Beginning with the formation in January 1998 of the Milorad Dodik
government, the international community has continued efforts to
strengthen moderate forces in the Republika Srpska (RS). The effort to
[[Page 19399]]
steer RS politics into a moderate course is now at a critical phase.
Hardliners are using recent events--the Brcko arbitral award, the
dismissal of hardline nationalist RS President Poplasen, and the NATO
action against the Federal Republic of Yugoslavia--to try to derail the
Dodik government and whip up public feeling against the international
community.
The United States has made clear repeatedly at RS and municipality
levels that all assistance is contingent on continued progress in
implementing the Dayton accords and announced its readiness to
terminate any projects if the situation warrants. The U.S. has also
encouraged other donors to deliver the same message. Progress toward
full implementation of the Dayton accords includes progress on
arresting indicted war criminals, formation of a broad-based moderate
government in the RS, and other key Dayton goals.
Section 570 of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1999, imposes restrictions on
assistance to states or entities that fail to ``take necessary and
significant steps to apprehend and transfer'' to the International
Criminal Tribunal for the Former Yugoslavia all persons who have been
publicly indicted by the Tribunal. The Secretary of State determined in
November 1998 that Serbia and the Republika Srpska were subject to this
restriction. However, Section 570 also provides for a selective use of
the waiver authority.
An upcoming decision by the World Bank to establish a Local
Development Fund (LDF), to lend to municipalities for infrastructure
reconstruction, fits the criteria for a waiver. The LDF, which would
commit a total of $15 million, is a longer-term (four years) effort to
upgrade lending expertise of local banks and debt management
capabilities of municipal governments.
The U.S. has made clear to the World Bank that it expects strict
controls to ensure that no persons publicly indicted of war crimes
should benefit from the program, and that no municipalities openly
harboring such persons should benefit. The World Bank will institute
strong control and audit mechanisms. International banks and
consultants responsible to the World Bank will be involved in the
selection of participating banks and eligible municipalities. The World
Bank is fully aware of the need to avoid a situation where its funds
could benefit persons publicly indicted for war crimes, or
municipalities responsible for harboring such persons. It will consult
regularly with the Office of the High Representative in Sarajevo on the
administration of this program.
Our record on war criminals remains strong and unequivocal. U.S.
encouragement of moderate elements in the RS has helped improve the
climate for bringing indicted war criminals to justice. To date, there
have been ten forcible detentions and six voluntary surrenders in the
RS. Of these, there were seven forcible detentions by SFOR and five
voluntary surrenders during 1998. Since April of 1997, the number of
war criminals brought before the Tribunal has increased from 7 to 35,
due in large measure to the persistent pressure applied by the U.S.
Government.
The fact that the detentions occurred without major incident, and
that there is a relatively high proportion of voluntary surrenders,
reflects directly on the climate created by the cooperative
relationship with the international community of the Dodik government.
We believe that by strengthening moderate and democratic forces in the
Republika Srpska, we have strengthened institutions, capabilities, and
resolve that will lead to the fulfillment of the Dayton objective of
seeing those war criminals who remain at large detained and brought to
justice.
The international community has repeatedly warned that
obstructionism will lead to serious repercussions, including the
curtailment of economic assistance. However, positive signals are also
needed. The currently volatile climate in the RS should not sway the
international community from a long-term policy that strengthens
moderates and rewards those who cooperate with Dayton implementation.
[FR Doc. 99-9894 Filed 4-19-99; 8:45 am]
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