FENA 08/09/2004 ITA insists on uniform VAT

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FSA6451: 08.09.2004 03:14

BiH-PRESIDENCY

BiH PRESIDENCY MEETS TODAY

SARAJEVO, September 8 (FENA) – The BiH Presidency will hold a session in Sarajevo today.

The proposal for appointing BiH representatives to the International Civil Aviation Organisation (ICAO) and the proposal for giving approval for the appointment of British and Israeli Ambassadors will be on the agenda.

The BiH Presidency will also discuss the report on the implementation of the BiH Budget in 2003, the report on BiH internal debt and the request of the BiH National Monuments Commission.

The Presidency is also expected to adopt the framework agreement between BiH and the EU on general principles for the participation of BiH in the Community Program, as well as the program of cooperation in the field of education, science and culture between the Russian Government and the BiH Council of Ministers.

(Fena) jc

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FSA6449: 08.09.2004 03:09

BIHAMK - ROADS

ROAD REPORT

SARAJEVO, September 8 (FENA) – Most roads in BiH are open for traffic today and there are no major restrictions.

Work on disassembling a bridge along the M-4 Doboj-Tuzla road is underway causing brief interruptions. During these interruptions traffic is redirected to detour roads.

Repair work is also underway along Doljani-Mostar-Jablanica, Lasva-Zenica, Modrica-Bosanski Samac, Izacic-Bihac, Kljuc-Jajce-Donji Vakuf, Banja Luka-Klasnice, Derventa-Seslije and Dobro Polje-Miljevina roads.

There are no major delays at any of the border crossings.

In Sarajevo due to work on laying and repairing tram tracks the Obala Kulina Bana street will be closed for traffic for several days. During this period the Obala Kulina Bana street will be closed for traffic between 18 and 0:6 hrs.

(Fena) jc

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FSA6454: 08.09.2004 03:24

FOCA-SNSD

DODIK: RS ENDANGERED BY BAD POLICY AND CRIME

FOCA, September 8 (FENA) – RS Alliance of Independent Social-Democrats (SNSD) President Milorad Dodik thinks that the RS is endangered by bad policy and criminal activities conducted under the protection of current authorities.

At an election rally held in Foca last night Dodik spoke about the RS Auditor’s report on various abuses and crime and stressed that the RS Elektroprivreda embezzled 167 million KM.

“The Buk Bijela hydropower plant could have been built three times by now, but those from Telekom Srpske stole 63 million KM from us. We have learned from Auditor Bosko Ceko several days ago that 18 million KM have also gone missing in the RS Ministry of Interior and we are only about to hear what was stolen in Srpske Sume”, Dodik said.

He expressed confidence that changes would come about at the next elections.

Dodik stressed that not much attention should be given BiH Presidency Chair Sulejman Tihic’s attacks on the RS and added that he poses no real threat to the RS.

(Fena) jc

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FSA6459: 08.09.2004 03:33

PARLIAMENT BiH-HOUSE OF REPRESENTATIVES

BiH HOUSE OF REPRESENTATIVES RECEIVES LETTER FROM INDIRECT TAXATION ADMINISTRATION

SARAJEVO, September 8 (FENA) – Representatives in the BiH House of Representatives received a letter from the Indirect Taxation Administration Steering Board this morning explicitly recommending them to adopt the original draft of the VAT Law sent by the Steering Board to the BiH Council of Ministers and which proposes a uniform VAT rate of 17 percent.

Indirect Taxation Administration Steering Board stated in the letter that the VAT adopted by the House of Representatives’ Finance and Budget Commission, which introduces the combination of a higher rate of 18 percent and a lower rate of 8 percent for certain products, as well as the broad use of a 0 rate, would reduce revenue and cause damage to social programs.

“The only project that can efficiently remove tax fraud and evasion in BiH is the introduction of VAT. However, advantages of VAT reform will be undermined if more that one rate is introduced because management will be made more difficult and chances for fraud and tax evasion increased”, was stated in the letter.

(Fena) jc

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FSA6462: 08.09.2004 03:49

FBiH MINISTRY OF FINANCE - VAT

VRANKIC: VAT CANNOT RESOLVE SOCIAL PROBLEMS

SARAJEVO, September 8 (FENA) – FBiH Finance Minister Dragan Vrankic supports the introduction of a uniform VAT rate in BiH.

Following debates and initiatives for introducing several VAT rates, which are increasingly getting a political dimension and becoming a cheap method in the election campaign, Vrankic explained in a statement to FENA why he supports a uniform VAT rate.

Vrankic said that as a member of the Indirect Taxation Administration Steering Board, which proposed the legislation for a uniform VAT rate, he continues to strongly support this initiative.

He thinks that tax policy should not be expected to resolve social problems because “a reduced rate does not represent an efficient method for helping individuals and families with low income, while on the other hand the introduction of several reduced rates only makes the entire process more complicated and increases the cost of implementing and regularly paying taxes”.

Vrankic warns that the use of reduced rates also causes difficulties in definition and correct classification, which represents a problem both for taxpayers and tax collectors.

- If 80 percent of EU member states decided to introduce a uniform rate, and these are all countries with highly developed tax administrations, then I think that BiH does not have much of an alternative to introducing a uniform VAT rate. Considering all the complexity of the system in the country and the fact that the process of establishing the Indirect Taxation Administration at the BiH level has only begun we need a functional tax system, which will ensure an efficient collection of taxes, while citizens in the most difficult situation will be taken care of through social programs, Minister Vrankic said.

(Fena) jc

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FSA6465: 08.09.2004 03:53

FBiH GOVERNMENT - SESSION

FBiH GOVERNMENT MEETS TOMORROW

SARAJEVO, September 8 (FENA) – The FBiH Government should discuss in Sarajevo tomorrow proposals and initiatives for changing several laws, including the law on the privatisation of companies and the law on taxes on goods and services.

The FBiH Government is also planned to discuss the five-year plan of the “FBiH Railways” and the program of activities of the FBiH Commission on Missing Persons.

The decision on internal redistribution of budget funds to certain ministries and institutions is also on the agenda.

(Fena) jc

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FSA6467: 08.09.2004 04:03

BiH PARLIAMENT - VAT

BiH HOUSE OF REPRESENTATIVES ADOPTS THREE VAT RATES

SARAJEVO, September 8 (FENA) – The BiH House of Representatives adopted today the principles of the draft VAT Law tabled by the House of Representatives’ Finance and Budget Commission proposing differentiated tax rates.

This means that instead of a uniform tax rate of 17 percent three rates will be introduced – a standard, reduced and a 0 rate.

The Commission proposed that the standard rate be set at 18 percent, while the reduced rate of 8 percent and the 0 rate be used for food products, medicine and books. However, the height of the rates has not been finally defined. 15 days have been given for proposing new amendments after which the final rates will be set.

In the meantime the Finance and Budget Commission should meet representatives of the BiH Council of Ministers, Indirect Taxation Administration Steering Board and interested association.

The Indirect Taxation Administration Steering Board sent a letter to the BiH House of Representatives today urging representatives to adopt a uniform VAT rate of 17 percent.

(Fena) jc

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FSA6468: 08.09.2004 04:09

METEOBiH-WEATHER

WEATHER FORECAST

SARAJEVO, September 8 (FENA) – BiH was sunny and warm today.

It will remain sunny tomorrow as well. Morning temperatures are expected between 6 and 18 and between 17 and 26 during the day.

After a cool morning Sarajevo will be sunny and warm during the day. Morning temperature is expected at around 9 and up to 18 during the day.

(Fena) jc

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FENA 14/09/2004 - The BiH Prosecutor’s Office Special Department for Crime, Economic Crime and Corruption filed charges in the “Maktouf” case on Monday, the first war crimes case before the BiH Court.

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FSA7379: 13.09.2004 10:01

MORNING SERVICE

BiH DELEGATION TAKES PART IN CETINJE PARLIAMENTARY FORUM

SARAJEVO/CETINJE, September 13 (FENA) – Speaking at the Cetinje Parliamentary Forum Deputy Chair of the BiH House of Peoples’ Commission for Foreign and Trade Policy Vinko Radovanovic said that the strategic objective of BiH is to first join the Partnership for Peace and NATO and then the EU.

Radovanovic thinks that this task will be much easier if BiH establishes better bilateral relations with countries from the region and becomes a part of integration processes.

Participants in this large gathering agreed on Monday that regional activities need to be coordinated in order to rationalise and fulfil objectives of all regional initiatives in the best possible way.

In doing this the role of parliaments in foreign affairs activities needs to be strengthened.

Participants agreed that Southeast European countries that have joined the EU and NATO should in the spirit of good neighbourly relations help the strengthening of stability in the region and ensure that the problem of Kosovo is resolved entirely in accordance with the UN Security Council Resolution 1244.

The Cetinje Parliamentary Forum continues on Tuesday with a meeting of delegations of Adriatic-Ionic Initiative member states.

(Fena) jc

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FSA7380: 13.09.2004 10:03

MORNING SERVICE

SPIRIC: CAVIC HAS A TASK TO "SUBDUE" BANJA LUKA

BANJA LUKA, September 13 (FENA) - Alliance of Independent Social-Democrats (SNSD) Main and Executive Board member Nikola Spiric accused the Serb Democratic Party (SDS) Monday of trying to radicalise the situation in Banja Luka.

Spiric told a press conference that SDS Acting President Dragan Cavic was tasked by the “renegade wing of the SDS and criminals” to “subdue” Banja Luka if he wished to become the SDS President.

He said that Ljubisa Kragulj, a candidate for the Banja Luka Mayor, supported by SDS and seven other parties, was deliberately used because everyone knows that he cannot win, but SDS and other parties will get votes for councillors in the Banja Luka City Council.

Spiric accused Cavic of using the office of the RS President for running the election campaign and failing to explain to RS citizens why they live so bad and why they have no salaries and pensions.

He said that Cavic should also explain how is it possible that five post offices are robbed in a single day and are these funds now being used to finance the SDS after it lost its funding.

(Fena) jc

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FSA7381: 13.09.2004 10:04

MORNING SERVICE

CAVIC PROTECTS PERSONAL AND INSTITUTIONAL INTEGRITY

BANJA LUKA, September 13 (FENA) – RS President and SDS Acting President Dragan Cavic has the responsibility to lead the election campaign of his party and in that capacity he will respond to all “lies and insults” by SNSD President Milorad Dodik, the RS President’s Cabinet stated on Monday.

Following a series of allegations made by Dodik at a press conference on September 11 and several statements at pre-election debates on September 12 Cavic has responded with arguments to these allegations protecting his personal and institutional integrity.

“The RS President cannot and does not wish to remove anyone from the political scene and has not been calling for the opposition to be lynched. If Dodik or anyone else thinks that they will be able to throw dirt at the RS President and expect him not to defend himself because of the office he holds they should think again because the RS President is determined to protect his integrity”, the RS President’s Cabinet stated.

(Fena) jc

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FSA7382: 13.09.2004 10:05

MORNING SERVICE

FIRST WAR CRIMES CASE BEFORE BiH COURT

SARAJEVO, September 12 (FENA) – The BiH Prosecutor’s Office Special Department for Crime, Economic Crime and Corruption filed charges in the “Maktouf” case on Monday, the first war crimes case before the BiH Court.

Abdullahim Maktouf is charged with war crimes against civilians for participation in the illegal kidnap and detention of five civilian hostages by mudjahadeens in Central Bosnia in October 1993.

According to the indictment Maktouf took part in the kidnap and transfer of the prisoners to the mudjahadeen military camp where the hostages were beaten and one of the later beheaded.

This is the first war crimes trial concerning mudjahadeens in BiH.

BiH Deputy Chief Prosecutor and Head of the Special Department John McNair thinks that this is an important turning point in the work of the BiH Prosecutor’s Office. The “Maktouf case” is the first from a series of criminal prosecutions in cases of war crimes that will be conducted as the Special Department expands and receives cases from the ICTY.

The ICTY provided permission for prosecuting Maktouf pursuant to requirements from the “Rome Rules of the Road”

Prosecutor Jonathan Schmidt is responsible for the “Maktouf” case.

(Fena) jc

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FSA7383: 13.09.2004 10:07

MORNING SERVICE

IVANIC: MANY REASONS TO BE GRATEFUL TO NORWAY

SARAJEVO 13 (FENA) – We have many reasons to express gratitude to Norway for its role in what BiH has achieved so far, which is a significant level of peace, stability and the start of economic development, BiH Foreign Affairs Minister Mladen Ivanic said after meeting his Norwegian counterpart Jan Petersen in Sarajevo on Monday.

Ivanic said that Norway continues to financially support BiH and is one of the countries that have not significantly reduced the level of their assistance to BiH, especially as assistance is provided directly to the people, refugees and for reconstruction projects.

Ivanic and Petersen also discussed the situation in BiH and efforts of our country to move closer to the EU and join the Partnership for Peace as soon as possible.

They also discussed the Council of Europe because of the role that Norway currently plays in this institution, as well as readiness of BiH to implement a large number of conventions it joined as soon as possible.

The two ministers also discussed bilateral cooperation and agreed that activities on signing agreements on readmission need to be accelerated.

The Norwegian Foreign Minister, who also chairs the Council of Europe’s Committee of Ministers, said that he wishes BiH and Norway to cooperate closely.

“I support your wish to join Euro-Atlantic” structures”, Petersen said.

(Fena) jc

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FENA 08/09/2004 - FORMER MILOSEVIC'S ADVISOR TESTIFIES; WORLD BANK DIRECTOR PLEDGES SUPPORT FOR DEVELOPMENT PROJECTS IN BiH

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FSA6332: 07.09.2004 09:36

MORNING SERVICE

FORMER MILOSEVIC'S ADVISOR TESTIFIES

THE HAGUE, September 7 (FENA) – Former Slobodan Milosevic’s legal advisor Smilja Avramov appeared before the ICTY on Tuesday as a witness for the defence in the trial of the former Yugoslav President.

While Milosevic was in university Smilja Avramov was his professor and afterwards an advisor in the Yugoslav Ministry of Foreign Affairs and a participant in negotiations between Croats and Serbs in 1990.

Milosevic was forced to allow one of his two attorneys assigned to him last week to question the first defence witness.

Milosevic, after refusing to meet the two attorneys assigned to him against his will, again tried to oppose the decision of the judges. “You have taken my rights to defence, Mr Kay does not represent me, he represents you”, Milosevic told Judge Patrick Robinson.

The Judge turned off his microphone saying that he does not wish to listen to the “same old refrain”.

He reminded the audience that he would not allow the accused to question witnesses because that would be against the decisions that were made to protect Milosevic’s health.

Milosevic will be allowed to ask questions only after the witness is questioned by one of the attorneys.

(Fena) jc

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FSA6333: 07.09.2004 09:37

MORNING SERVICE

IVANIC: RETURN OF OCCUPANCY RIGHTS TO SERBS IN CROATIA BY THE END OF THE YEAR

BANJA LUKA, September 7 (FENA) – BiH Foreign Affairs Minister Mladen Ivanic said at a press conference in Banja Luka on Tuesday that a solution concerning the issue of returning occupancy rights to Serb refugees from Croatia should be found by the end of the year.

He described as positive the fact that Croatia has finally recognised this problem and stressed that it should be resolved at the level of BiH and Croatian Ministries of Justice.

He reminded that during the past six months he insisted three times on the resolution of this issue during his visit to Croatia and the visits of Croatian officials to our country.

Ivanic said that based on his initiative BiH and Croatian Ministers of Justice, Slobodan Kovac and Vesna Skare-Ozbolt, met one month ago and that a working group should propose a solution to this issue in the coming days.

“There is a problem concerning occupancy rights. The Croatian side recognised that there is a problem and agreed to try and solve it by the end of the year”, Ivanic said and added that he insists on this, but that the decision depends not only on BiH institutions, but Croatian as well.

He said that unlike BiH, Croatia does not have a High Representative “who forces us in BiH to return occupancy rights to people who lived before the war”.

This is a typical example of unequal treatment, Ivanic said.

(Fena) jc

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FSA6334: 07.09.2004 09:38

MORNING SERVICE

BiH DELEGATION LEAVES FOR RUSSIA

SARAJEVO, September 7 (FENA) – A BiH delegation, led by BiH Council of Ministers Chair Adnan Terzic, left for a two-day visit to Russia on Tuesday, the BiH Council of Ministers stated.

Terzic is planned to meet Russian Prime Minister Mihail Fradkov on Wednesday and signed an agreement between the BiH Council of Ministers and the Russian Government on trade and economic cooperation, as well as the agreement on establishing an intergovernmental BiH-Russian commission for trade and economic cooperation.

He is also planned to meet Russian Foreign Affairs Minister Sergej Lavrov.

BiH Finance and Treasury Minister Ljerka Maric, BiH Deputy Foreign Affairs Minister Lidija Topic, Deputy Security Minister Dragan Mektic, FBiH Prime Minister Ahmet Hadzipasic and RS Prime Minister Dragan Mikerevic are in the BiH delegation. They will present projects at the state and entity level open for possible Russian investment in the Russian Foreign Trade Chamber on Thursday.

(Fena) jc

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FSA6335: 07.09.2004 09:38

MORNING SERVICE

WORLD BANK DIRECTOR PLEDGES SUPPORT FOR DEVELOPMENT PROJECTS IN BiH

SARAJEVO, September 7 (FENA) – World Bank Director James D. Wolfensohn said in Sarajevo on Tuesday that BiH would continue to have the full support of this international financial institution.

Speaking to BiH parliamentarians and representatives of executive authority in BiH Wolfenshon highlighted great successes achieved by BiH in the transition period and underlined the importance of creating an environment that would allow its further progress on the road towards European integrations, including achieving competitiveness at the global market.

It is imperative for BiH, Wolfenshon said, that by initiating development projects it becomes a useful member of the global community and that after the phase of reconstructing infrastructure it starts creating an environment that will ensure a better future for the generations to come.

He urged representatives of BiH authorities to also review global development aspects, including the development of partnerships and added that the vicinity of the EU market could prove a benefit in that context.

- You can rely on our full support on the road towards developing a modern, economically sustainable and stabile BiH, Wolfenshon siad.

BiH House of Representatives Speaker Martin Raguz greeted Wolfenshon on behalf of BiH officials and reminded of the importance of the WB in the reconstruction of BiH.

- The WB, which is present in BiH since 1996, financially supported 50 different projects in the total value of approximately 1 billion USD, Raguz said and stressed its contribution to the transformation of the BiH society and the post-war reconstruction.

(Fena) jc

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FSA6336: 07.09.2004 09:39

MORNING SERVICE

COVIC MEETS SWISS AMBASSADOR

SARAJEVO, September 7 (FENA) – BiH Presidency member Dragan Covic met Swiss Ambassador to BiH Urs Breiter in Sarajevo on Tuesday. They discussed the upcoming visit of the BiH Presidency to Switzerland scheduled for October 5 at the invitation of the Swiss President, the BiH Presidency stated.

The visit will be used as an opportunity to improve bilateral relations between the two countries, especially in the field of economy.

A presentation of BiH economic potentials will also be organised for Swiss businespersons.

Covic and Breiter also discussed the need for signing agreements that would intensify activities at the bilateral level.

(Fena) jc

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MARKETING - tel/fax: 033 445 346; mob: 061 200 527; e-mail: marketing@fena.ba IT FENA - e-mail: otprema@fena.ba; fena-info@fena.ba

FENA 15/09/2004: ASHDOWN: BiH PRESIDENCY FAILS TO SUPPORT FURTHER DEVELOPMENT OF THE STATE COURT; SFOR CAMP McGOVERN HANDED OVER TO LOCAL AUTHORITIES

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FSA7904: 15.09.2004 10:32

MORNING SERVICE

ASHDOWN: BiH PRESIDENCY FAILS TO SUPPORT FURTHER DEVELOPMENT OF THE STATE COURT

SARAJEVO, September 15 (FENA) – The failure of the BiH Presidency to ratify the decision establishing the War Crimes Chamber in the State Court is a serious threat to the development of BiH potentials to efficiently organise trials for committed war crimes in accordance with the set deadlines – January next year, High Representative Paddy Ashdown said on Wednesday.

He said that the establishment of the War Crimes Chamber in the State Court is a precondition for that Court to start working on cases of war crimes next year, as was planned by the plan for the transfer of cases developed by the Hague Tribunal.

“This failure is a serious blow to our efforts to deal with BiH corruption at a senior level, and in that a serious blow to the strengthening the rule of law because it weakens the long term ability of the State Court’s special department for organised crime, serious economic violations and corruption to prosecute cases in a transparent and reliable manner”, Ashdown said.

He warned that this is the worst possible message that BiH could have sent in this moment and that it has again shown that short-term election political interests have caused serious damage to the long term European future of BiH.

Ashdown thinks that the failure to start prosecuting war crimes in January 2005 as promised shows that BiH is not serious about resolving the issue of war crimes, joining NATO and the EU.

“I have to conclude with regret that the future of BiH is again a hostage of those who intend to obstruct trials for committed war crimes, as well as cases of corruption at the senior level. Furthermore, that decision puts at risk approximately 39 million EU in international assistance for improving the judicial system in BiH provided by this agreement”, the High Representative said.

(Fena) jc

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FSA7905: 15.09.2004 10:33

MORNING SERVICE

TIHIC: BiH FIRMLY SUPPORTS INVIOLABILITY OF AVNOJ BORDERS

SARAJEVO, September 15 (FENA) – BiH Presidency Chair Sulejman Tihic did not say that BiH would request the return of a part of the territory of a neighbouring country, i.e. a part of Boka Kotorska, and this is a complete misinterpretation of his statement, Tihic’s Cabinet stated on Wednesday.

In a statement issued following such media reports Tihic’s Cabinet stressed that our country never had pretensions towards territories of neighbouring countries, including Boka Kotorska.

Quite the opposite, BiH firmly supports the inviolability of AVNOJ borders of states created in the area of former Yugoslavia, Tihic’s Cabinet stated.

(Fena) jc

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FSA7906: 15.09.2004 10:34

MORNING SERVICE

DOKIC REQUESTS HUNGARIAN MINISTRY OF TRANSPORT TO PROVIDE AN IMMEDIATE RESPONSE

SARAJEVO, September 15 (FENA) – BiH Communications and Transport Minister Branko Dokic requested Hungarian Ambassador to BiH Istvan Varga on Wednesday to provide a clear response and position of the Hungarian Ministry of Economy and Transport concerning the request of the BiH Ministry of Communications and Transport for urgently issuing additional bilateral licences for the transport of products and the exemption of oil, oil derivates and wheat from the licences regime.

 “Minister Dokic informed Ambassador Varga about all activities that the BiH Ministry of Communications and Transport has taken so far on overcoming this problem and requested a clear response from the Hungarian Ministry of Economy and Transport, which has so far avoided to provide a clear response despite three request for an urgent response by Minister Dokic”, the BiH Ministry stated.

Ambassador Varga expressed readiness to work towards an urgent resolution of this issue, which is of key importance for businesspersons from both countries. He also confirmed that Hungary wishes to improve economic relations with BiH.

(Fena) jc

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FSA7907: 15.09.2004 10:35

MORNING SERVICE

BRCKO: SFOR CAMP McGOVERN HANDED OVER TO LOCAL AUTHORITIES

BRCKO, September 15 (FENA) – The handover of the SFOR Camp McGovern near Brcko to Brcko District BiH civil authorities was marked on Wednesday with a symbolic taking down of the US flag and the erection of the BiH flag on the central mast in this complex.

“The news today is good. Together, we have reached a point in the stabilisation process where we welcome the transition of the Camp McGovern to the Brcko District civil authorities”, SFOR Operation Group North Timothy Wright said at the ceremony.

“Nine years ago this was a divided city with many destroyed houses and apartments, destroyed infrastructure, and its citizens exhausted and full of fear and hatred. Step by step we have created preconditions for the return of the city population. We have returned all property, ensured the return of citizens, repair and reconstruction of most of the structures and infrastructure. We have asphalted more than 200 km of roads, reconstructed the power grid, built 20 schools, five new gyms, a large number of city and village sport fields and playgrounds, as well as other structures significantly influencing the life of our citizens”, Brcko Mayor Branko Damjanac said.

“This is an end of one mission, a peacekeeping mission, and the start of another mission, a mission of peace”, High Representative Paddy Ashdown said.

Ashdown urged Brcko District politicians and citizens to use progress achieved during the nine years of peace and to continue building a better future after the upcoming elections. He added that the international community is not leaving BiH.

“There are people who think that if they wait long enough we will leave and they will be able to return to their past. That is a wrong assessment. SFOR succeeded IFOR, and EUFOR will come after SFOR. OHR still remains here”, Ashdown said.

(Fena) jc

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FSA7908: 15.09.2004 10:36

MORNING SERVICE

CAVIC AND LOCHER DISCUSS DEFENCE REFORM

BANJA LUKA, September 15 (FENA) – RS President Dragan Cavic and Defence Reform Commission Chair James Locher discussed ongoing reforms in this field in Banja Luka on Wednesday.

“We have concluded that a compromise has been reached and that defence reform is the largest post-Dayton step forward, which has recognised the specific nature of international relations in BiH, and especially the role and position of entities and constitutive people”, Cavic said after the meeting.

Cavic also stressed the determination of the RS to work towards membership in the Partnership for Peace.

(Fena) jc

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