I would like to thank both General Jean and Ambassador Jacolin for their comprehensive reports on the implementation of Articles II and IV, and the status of the Article V negotiations.

General Jean and his staff deserve our thanks for their efforts to hold the Parties to both agreements to their commitments and obligations. We would like to particularly thank Brigadier General Diamantidis, the departing Verification Coordinator, for his tireless efforts and co-operation, and wish him all the best in his new position in New York. We also welcome Brigadier General Aussedat as the new Verification Coordinator and look forward to working with him.

We note with particular interest the information General Jean provided on defense budget transparency. His efforts, and those of the Department for Regional Stabilization, have led the Article II Parties to make strides forward in openness and transparency regarding their budget authorizations, outlays, and foreign military assistance. We would like to recognize the assistance that experts from the United Kingdom provided in carrying this out. While the Article II Parties have shown movement on defense budget transparency, they have a long way to go. We are willing to support General Jean and encourage him to continue pressing the Parties to achieve even more in this area.

We regret the limitations that have been placed on the implementation of Article IV as a result of the FRY’s extra-legal withdrawal from participation and the subsequent decision of the Republika Srpska not to participate in meetings of the Sub-regional Consultative Commission. We believe Article IV is an integral part of Dayton-Paris, and the FRY and the Republika Srpska are obliged to continue with Article IV implementation.

We support the course of action that General Jean advocated, and the remaining Parties to the Article IV agreement adopted, to continue with the implementation of the provisions of the agreement, including continuing informal sessions of the SRCC. We also view as a very positive—and necessary—step the decision of Bosnia and Herzegovina, Croatia, and the Federation of Bosnia and Herzegovina to proceed with planning to hold a Review Conference later this year, as required by the Article IV agreement.

We firmly support the statement made by Ambassador Barry, also on behalf of General Jean, at the meeting of the Standing Committee on Military Matters on June 29, in which he deplored the decision by the Republika Srpska to suspend its participation in the SRCC and the withdrawal of the Bosnian Serb member from the Bosnia and Herzegovina delegation. We similarly deplore this action by the Republika Srpska, and have communicated this concern to senior Bosnian officials. We echo Ambassador Barry’s call upon the Bosnian Joint Presidency to require that the Parties implement the decision on the composition of the Bosnia and Herzegovina delegation, and his call for the resumption of Republika Srpska participation in the SRCC, as required by Dayton-Paris. We expect the Republika Srpska to participate in the next informal meeting scheduled for July 21, and that Bosnia and Herzegovina will seat a full delegation—to include a Bosnian Serb member—at that meeting.

It is sad to see that elements in the Republika Srpska—in this case, the Defense Ministry—appear to be following Belgrade’s orders. If the Republika Srpska wants a future that brings greater prosperity and hope to its people, it must realize that its future does not lie with Belgrade.

Turning to Article V, we believe that Ambassador Jacolin and his team have done much to lend order and even acceleration to negotiations among twenty different states with various interests and equities, while keeping us all focused on the mandate that we agreed to.

Like him, we believe the negotiations are making progress. As he pointed out, the states participating in the negotiations have tabled 12 proposals for measures that could contribute to security in the region in and around the former Yugoslavia. We believe that discussions of the proposals have been useful and have demonstrated that there are legitimate differences of view among participants and that much additional debate will be necessary. We would urge Ambassador Jacolin to keep to his work schedule to ensure a "first reading" of all measures which would be potentially useful for enhancing stability in the region.

Finally, in the Article V negotiations, we look to the regional states to suggest what measures would be useful from their point of view, and would ask Ambassador Jacolin through you, Madame Chairperson, to comment on the views of the regional states regarding measures to be included in a potential Article V agreement.